MGP Overview and Strategic Focus Areas slide image

MGP Overview and Strategic Focus Areas

MGP IMPACT OF PLANNED CLOSURE OF THE ATCHISON DISTILLERY PRO-FORMA RESULTS - INGREDIENT SOLUTIONS I . -% Change (Year Ended 12/31/2022) As Reported(1) Pro-Forma(3) $ (5) % Specialty Wheat Starches $62,567 $62,567 $- -% Specialty Wheat Proteins 39,313 39,313 Commodity Wheat Starches 14,023 14,023 Commodity Wheat Proteins 38 38 Sales $115,941 $115,941 $- Gross Profit Gross Margin % $31,503 27.2% $26,017 $(5,486) 22.4% (17)% (4.8) pp(4) Change (Year to Date Ended 9/30/2023) Specialty Wheat Starches As Reported (2) Pro-Forma(3) $ (5) % $48,977 $48,977 $- Specialty Wheat Proteins 35,918 35,918 Commodity Wheat Starches 12,870 12,870 Commodity Wheat Proteins 611 611 Sales $98,376 $98,376 Gross Profit $34,945 Gross Margin % 35.5% $29,812 30.3% $(5,133) (5.2) pp (4) 1 1 $- -% 1 . . -% (15)% (1) (2) (4) (5) Represents actual results of the Company for the year ended December 31, 2022, as reported in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Represents actual results of the Company for the year to date ended September 30, 2023, as reported in the Company's Quarterly Report on Form 10-Q for the quarter and year to date ended September 30, 2023. Represents the Company's results for the year ended December 31, 2022 or year to date ended September 30, 2023 excluding results associated with the Company's Atchison, Kansas distillery. These are pro-forma unaudited financial results and are preliminary. In some circumstances, white goods, industrial alcohol, fuel grade alcohol, and at times certain co-products are produced at the Company's Lawrenceburg, Indiana distillery. The pro-forma financial results assume the loss of the waste starch slurry credit and no gain or loss on the disposal. The results of the Branded Spirits segment for the year ended December 31, 2022 and the year to date ended September 30, 2023 would not have been impacted by a closure of the Atchison, Kansas distillery. Percentage points ("pp"). The reduction in gross profit for the Ingredient Solutions segment is the result of increased cost of goods sold from no longer receiving an intercompany credit for the waste starch slurry by-product purchased by the adjoined Atchison, Kansas distillery. The value of the intercompany credit is derived from the value of corn which has fluctuated over time. Source: Company filings; unaudited
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