Investor Presentaiton
General Bega Investment Risks
Litigation
Legal proceedings and claims may raise from time to time in the ordinary course of Bega's business and may result in high legal costs, adverse monetary judgements and/or damage to Bega's reputation which could
have an adverse impact on Bega's financial position, performance and share price.
Interest Rate and Foreign Currency Risk
Where dairy and other products are sold into export markets the predominant currency is the US dollar. Fluctuations in the Australian dollar compared with foreign currencies have the potential to impact the
revenue and returns of Bega. Bega will be subject to the risk of rising interest rates associated with borrowing on a floating rate basis and risk of foreign currency exposure from its export operations. Bega seeks to
manage all or part of its exposure to adverse fluctuations in floating interest rates and/or foreign currency receivable through hedging arrangements, including derivative financial instruments. Such arrangements
involve risk, such as the risk that counterparties may fail to honour their obligations under these arrangements, and such arrangements may not be effective in reducing exposure. To the extent that Bega does not
hedge effectively (or at all) against these movements, such movements may adversely affect Bega's results.
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