Investor Presentaiton

Specific Bega Investment Risks Fonterra legal proceedings In 2001, Bega granted Fonterra Brands (Australia) Pty Ltd (Fonterra) an exclusive licence to use the Bega trademarks in Australia on natural cheddar cheese, processed cheddar cheese, string cheese and butter (Licensed Products). Fonterra commenced legal proceedings in the Supreme Court of Victoria seeking orders including declarations that Bega cannot use the Bega trademarks in Australia on products outside of the Licensed Products without Fonterra's consent, as well as damages. Bega, as owner of the trademarks, has vigorously opposed Fonterra's position and asserted its rights to use its trademarks in Australia. Bega has also made various counter claims in respect of alleged breaches of the licence by Fonterra. The hearing by the Supreme Court of Victoria has concluded and the parties are awaiting the decision of the Court. If Fonterra is successful in its claim, Bega may need to seek Fonterra's consent to its continued use of the Bega brand in Australia on peanut butter products or change the branding of those products. A change to the branding of may adversely affect sales of the products. International dairy commodity prices Dairy commodity prices fluctuate in accordance with global supply and demand. The market prices of core products of Bega such as cheddar cheese, milk powders and butter are all affected by the global commodities market. To some extent, even those products not exported but traded within the domestic market are similarly affected. There is risk that a decline in commodity prices may reduce the prices at which Bega is able to sell its products, thereby adversely impacting Bega's earnings unless input prices for raw materials, including milk, can be adjusted to reflect this change. Changing consumer trends Sales of Bega's products are affected by consumer trends. Failure to ensure that its product portfolio and manufacturing capability remains relevant to changing consumer trends could have an adverse impact on Bega. Failure to maintain key customer relationships Bega's business relies on key customer relationships and a failure to maintain those relationships could adversely impact Bega's operating and financial performance, which may in turn impact Bega's share price. Page 40 Bega

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