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Annual General Meeting Bega Cheese Limited Barry Irvin – Executive Chairman Pete Findlay – CEO 27 October 2025 For personal use only
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Barry Irvin Executive Chairman For personal use only
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3 Agenda • FY2025 Annual Report • Chairman’s Report 5 • Chief Executive Officer’s Report 9 • Questions 26 • Adoption of Remuneration Report 30 • Election of Directors 31 For personal use only
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4 Welcome • Shareholders • Suppliers • PricewaterhouseCoopers • MUFG Corporate Markets • Bega Group staff • Apologies For personal use only
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5 2025 Annual General Meeting | 5 Our transformation We have built the capability and focus to grow as a leading branded food business. BUILD 1899-2000 • Dairy co-operative based in Bega Valley • Primarily cheese production EXPAND 2001-2016 • Acquisition of Tatura Milk Industries • Investment in scale and capacity • Successful ASX listing • Product expansion into nutritionals, cream cheese, cheese cut and wrap BALANCE 2017-2020 • New platform with acquisition of grocery brand portfolio including Vegemite • Grow Branded business while diversifying milk sourcing • Product expansion into spreads and other non-dairy STRENGTH 2021-2025 • Increased brand portfolio with iconic dairy brands • Extensive distribution network with an expanded customer base • Accelerated investments in innovation and branded growth • Product expansion into beverages, yoghurts and more FUTURE 2026-2030 • Product innovation that responds to the functional health benefits of dairy • Productivity through technology and scale • Grow international branded presence • Expand global sourcing For personal use only
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6 2025 Annual General Meeting | 6 Key messages • Strong FY2025 Group results with continued successful implementation of the Strategic Plan • Transformational initiatives building for the future • Branded performance driven by a focus on key categories and innovation • Volume growth in white milk, yoghurt and spreads • Launch of high protein and ‘better for you’ products • Channel growth in line with strategic plan • Successful implementation of efficiency programs and site rationalisation • Bulk business recovery • Continued improvement in staff engagement and safety results • Improved operating cashflow and strong balance sheet with leverage ratio of 0.8 times. For personal use only
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7 2025 Annual General Meeting | 7 Performance highlights Strong progress on most normalised financial metrics in FY2025 when compared to FY2024. Leverage ratio 0.8x 0.5x ROFE 8.4% 2.8 ppts EBITDA Margin* 5.7% 1.0 ppts Group 6.7% 0.1 ppts Branded Profit after tax $50.8m 74% Normalised $(8.5)m (128)% Statutory EBITDA $202.0m 23% Normalised $165.5m 0.2% Statutory Net revenue $3.5bn 0.5% Net debt $126.1m 22% Basic EPS 16.6c 73% Normalised (2.8)c (128)% Statutory Dividend (fully franked) 12.0cps 50% * Normalised For personal use only
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Pete Findlay CEO For personal use only
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9 2025 Annual General Meeting | 9 Strategy 2028 priorities For personal use only
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10 2025 Annual General Meeting | 10 FY2025 operational highlights New product launches in FY2025 • Dare Protein, now the number 1 protein iced coffee • Dairy Farmer’s Protein smoothies • Dare Charged line-up of high energy, low calorie long-life products • Whipped Bega Peanut Butter • Farmers Union Greek Yoghurt Protein 500g • Dairy Farmers Mars flavoured milk and Big M Maltesers flavoured milk • Farmers Union Gut Good yoghurt Increased investment behind power brands • Increased marketing investment by $8 million to support above innovation Bulk segment recovery • Bulk segment returning to profitability with farm gate milk prices more aligned with global dairy commodity pricing • Ongoing focus on cost, selling higher value dairy proteins, and supporting Branded expansion For personal use only
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11 2025 Annual General Meeting | 11 FY2025 operational highlights Continued refinement of Branded assets and footprint • Future consolidation of Strathmerton cheese site into Bega Valley announced. • Peanut Company of Australia (PCA) strategic review finalised; exit of Kingaroy and Tolga sites in 12-18 months. • Leeton site sale and long-term supply agreement. Optimisation of chilled distribution network • Laverton warehouse automation progressing: completion expected 2H FY2026 • ‘Cost to Serve’ initiatives success in reviewing minimum order values, route density improvements and optimal range reviews. • “MyBega” business-to-business portal now fully operational and rolled out to over 20,000 customers. Domestic Food Service • Above market growth in food service with a high single digit volume increase despite soft out-of-home consumption. International profit growth • Increased ‘on the ground’ presence in Singapore, Thailand and Dubai For personal use only
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12 2025 Annual General Meeting | 12 Consumer trends Changing consumer trends continue to shape portfolio and activation priorities Gut health Weight wellness Healthy mind Everyday performance Treat & reward I want strength and vitality I want better overall wellness I want help to manage weight. I want clearer thinking I want to treat myself For personal use only
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13 2025 Annual General Meeting | 13 Market leading brands in growth categories Category Category size $m Category annual growth Bega’s share Market position Bega Brands Fresh white milk 2,145 -1% 12% 3 Yoghurt 2,114 10% 24% 2 Milk based beverages 1,142 9% 46% 1 Spreads 776 4% 28% 1 Chilled juice 729 8% 18% 2 Creams and custards 665 1% 8% 4 Water ice 67 -1% 89% 1 Data (retail sales value) sourced from Circana Market Edge 12 months to 29 June 2025 based on data definitions provided by Bega. (Market: AU Grocery Unweighted and Structured Convenience). Excludes Costco, Aldi, local trade and unstructured convenience. • Our eight ‘power brands’ contribute majority of Branded revenue • Iconic Australian brands with enduring appeal • Strong market positions • Covering essential consumer items to discretionary purchases • Widely available and accessible for most Australians For personal use only
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14 2025 Annual General Meeting | 14 Gut health Everyday performance Treat & reward Portfolio growth through trend framework Expanded portfolio in core categories Evolving the portfolio to deliver to consumer needs • Reshaped milk-based beverages to meet demand for protein accelerating Dare Protein to #1 protein iced coffee and launched Dairy Farmers Protein Smoothies. • Launched Dare Charged into the energy segment. • Expanded lactose free white milk distribution and accelerated share. • Expanded Farmers Union into high protein yoghurt and gut health yoghurt with Gut Good. • Innovated in new taste and texture experiences with Whipped Bega Peanut Butter & Mars/Maltesers milk. For personal use only
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15 2025 Annual General Meeting | 15 Manufacturing network Continuous focus on streamlining and simplifying Key FY2025 Initiatives: • Consolidation of Strathmerton cheese site into Ridge Street in Bega Valley announced and expected to be completed in late FY2026. • Strategic review of Peanut Company of Australia (PCA) completed; announced exit of Kingaroy and Tolga sites in 12-18 months. • Sale of Leeton juice primary processing facility in October 2024 further simplified our supply network. • Reduced over 25% of coolrooms and warehouses over the past 4 years. • Completed consolidation of Tasmanian footprint. For personal use only
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16 2025 Annual General Meeting | 16 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Farm gate milk price and commodity returns Key themes: • Bulk business returned to profit in FY2025 as dairy commodities and farm gate milk prices better aligned • In response to increased commodity prices, Bega Group increased its Victorian milk price twice in FY2025. • FY2026 opening Victoria milk prices higher reflecting annualised improvement in commodity prices. • Slight decline in national milk pool, -0.7% in FY2025 versus prior year. 1 Source: Ever.Ag Insights Victorian Milk Price and Commodity Value Average Victorian milk price Aust CMV 1 Source: Dairy Australia For personal use only
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17 2025 Annual General Meeting | 17 CIRCULARITY Leading in circularity through our practices, industry partnerships and effective use, reuse and recycling of our resources. COMMUNITY Making a positive and lasting impact by supporting our people, their families and our communities. COLLABORATION Working together with our producers and communities to enable sustainable practices, grow domestic economies and deliver great Australian products that people love and trust. Sustainability: Great food for a better future The sustainability strategy focuses on three pillars • Informed by our most material sustainability impacts. • Aligns with our vision of an enduring legacy of our business • Demonstrates our commitment to the United Nations Sustainable Development Goals. For personal use only
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18 2025 Annual General Meeting | 18 Financial key messages Group normalised EBITDA $202.0 million, higher by $37.9 million (+23%) compared to FY2024. • Branded EBITDA $205.2 million, higher $5.3 million (+3%) • Strong volume growth in yoghurt, spreads, white milk and foodservice. Cheese and white milk categories impacted by price deflation. • Growth in grocery and foodservice offset reduced foot traffic in impulse & convenience and QSR. • Significant manufacturing rationalisation and overhead savings mitigating cost inflation. • Increased investment in marketing to support key categories and NPD. Bulk segment EBITDA returns to profitability with FY2025 EBITDA $38.7 million, compared to a loss in FY2024 of $18.2 million. • Farm gate milk prices in FY2025 better reflected global commodity markets. • Modest increase in milk supply with focus on high value bulk products. Manufacturing rationalisation • Sale of Leeton primary juice processing site • Impairment and provisioning following announcement of Strathmerton closure to be completed in late FY2026 • Impairment of selective equipment associated with manufacturing footprint and portfolio rationalisation. Net debt at $126.1 million and leverage ratio of 0.8x, well below FY2024 levels. For personal use only
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19 2025 Annual General Meeting | 19 Profit and loss Key points • FY2025 net revenue +0.5% despite price deflation in some cheese and fresh milk categories and challenging consumer sentiment. • Normalised Profit After Tax (PAT) +74%; Statutory loss after tax of $(8.5)m reflects impairment and one-time costs associated with significant manufacturing footprint rationalisation. • Relatively stable interest rate environment leading to marginally lower financing costs. • Normalised EPS higher 73% to 16.6 cents per share. Normalised Statutory $ millions $ millions Net revenue 3,539.0 3,521.6 0.5% Net revenue 3,539.0 3,521.6 0.5% EBITDA 202.0 164.1 23.1% EBITDA 165.5 165.1 0.2% D&A (91.2) (88.0) 3.6% D&A* (138.4) (90.8) 52.4% EBIT 110.8 76.1 45.6% EBIT 27.1 74.3 (63.5)% Net finance costs (33.8) (34.5) (2.0)% Net finance costs (33.8) (34.5) (2.0)% Profit before tax 77.0 41.6 85.1% Profit/(Loss) before tax (6.7) 39.8 (116.8)% Tax (26.2) (12.4) 111.3% Tax (1.8) (9.3) (80.6)% Profit after tax 50.8 29.2 74.0% Profit/(Loss) after tax (8.5) 30.5 (127.9)% Basic EPS (cents per share) 16.6 9.6 72.9% Basic EPS (cents per share) (2.8) 10.0 (128.0)% * includes impairment +/- %FY2025 FY2024 +/- % FY2025 FY2024 For personal use only
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20 2025 Annual General Meeting | 20 Key performance measures Key points • Revenue growth of 0.5% with price deflation in some dairy categories. • Gross margin expansion to 21.5% predominantly in the Bulk segment. • Net debt and leverage ratio improvement from increased earnings and working capital reduction. • Improvement in ROFE by +2.8 percentage points to 8.4%. • 50% increase in FY2025 fully franked dividends declared to 12.0 cents. $ millions unless otherwise stated (Normalised) Net revenue growth vs prior year 0.5% 4.3% (3.8) ppts Gross margin (% of net revenue) 21.5% 19.8% 1.7 ppts EBITDA 202.0 164.1 23% Depreciation and amortisation (91.2) (88.0) 4% Net finance costs (33.8) (34.5) (2)% Profit after tax 50.8 29.2 74% Basic EPS (cents per share) 16.6 9.6 73% Dividends per share (cents per share) 12.0 8.0 50% Net debt 126.1 162.4 (22)% Leverage ratio (times) 0.8 1.3 (0.5) times Return on funds employed (%)* 8.4% 5.6% 2.8 ppts0 056 * calculated on 12 month rolling basis FY2025 FY2024 Change For personal use only
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21 2025 Annual General Meeting | 21 Reconciliation of normalised result Consolidated period ended 30 June 2025 ($ million) Revenue 3,539.0 - 3,539.0 Cost of sales (2,808.8) 29.6 (2,779.2) Gross profit 730.2 29.6 759.8 EBITDA 165.5 36.5 202.0 Depreciation, amortisation and impairment (138.4) 47.2 (91.2) EBIT 27.1 83.7 110.8 Net finance costs (33.8) - (33.8) Profit/(loss) before income tax (6.7) 83.7 77.0 Income tax (expense)/benefit (1.8) (24.4) (26.2) Profit/(loss) for the period (8.5) 59.3 50.8 Basic earnings per share - cents (2.8) 16.6 Normalised outcome Per Financial Statements Manufacturing footprint rationalisation* * includes planned closure and relocation of Strathmerton to Ridge St. Bega, planned wind down of peanut processing operations at Kingaroy and Tolga, completed sale and exit of juice primary processing at Leeton and other production equipment associated with footprint & portfolio rationalisation. For personal use only
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22 2025 Annual General Meeting | 22 Balance sheet Key points • Net debt of $126m, a reduction of $36m. • Leverage ratio of 0.8x is lower when compared to 1.3x in FY2024 from both increase in earnings and reduction in net debt. • Receivables lower $154m with timing of TRF cashflow of $99m and timing of sales in Q4. • Payables lower $103m with timing of TRF cashflow $105m. Net TRF impact on net working capital of $6m. • PP&E reduction to $658m reflects Strathmerton impairment, depreciation, partially offset by increase in capex. • Increase in provisions of $28m mostly to support redundancies associated with the closure of Strathmerton. FY2025 FY2024 $m $m Cash 120.9 65.6 Trade and other receivables 196.8 350.9 Inventories 366.3 358.1 Property, plant and equipment 657.8 673.4 Right-of-use assets 148.5 150.8 Intangible assets 472.4 476.6 Total Assets 2,040.7 2,138.8 Trade and other payables 455.0 558.4 Borrowing (net of costs) 246.0 226.7 Lease liabilities 193.6 192.2 Provisions 148.1 120.6 Total Liabilities 1,060.5 1,124.0 Net Assets 980.2 1,014.8 Net Debt (126.1) (162.4) * Key balances represented only Balance Sheet* For personal use only
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23 2025 Annual General Meeting | 23 Cash flow Key points • Operating cashflow $165m, +$36m excluding the reduction in the use of TRF facility by $6m. • Increase in capital & intangible expenditure to $94m and includes warehouse automation, manufacturing consolidation and yoghurt capacity as lead initiatives. • Partial funding of investment in new PP&E through sale of Leeton primary processing site which occurred in FY2025. Sale of Canberra site occurred in FY2024. • Dividends paid increased to 10 cps (+43% on FY2024). Receipts from customers 3,839.5 3,725.2 Payments to suppliers and employees (3,613.8) (3,537.8) Net proceeds from Trade Receivables Facility (5.7) 7.2 Net interest and other costs of financing paid (33.8) (34.5) Income tax paid (21.2) (25.8) Operating activities 165.0 134.3 Investments in new PP&E and intangibles (94.4) (74.6) Net proceeds from sale of PP&E and intangibles 21.3 34.7 Investments in joint ventures and acquisitions (3.2) (12.4) Investing activities (76.3) (52.3) Net proceeds/(repayments) of borrowings 19.0 (42.0) Principal elements of lease payments (24.0) (21.4) Dividends paid to shareholders (28.4) (19.4) Financing activities (33.4) (82.8) Net increase/(decrease) in cash and cash equivalents 55.3 (0.8) Cashflow FY2025 $m FY2024 $m For personal use only
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24 2025 Annual General Meeting | 24 Outlook • Improving consumer sentiment. • Strong branded new product development pipeline satisfying consumer trends. • Focus on high value categories and cost management programs underpin continued Branded margin growth. • Accelerated international presence and growth. • Planned closures of Strathmerton, Kingaroy and Tolga supporting growth and efficiency when complete in FY2027. • Successful milk recruitment with growth in supply for FY2026. • On track to exceed EBITDA target of $250 million by FY2028. • The Group provides guidance of a normalised EBITDA in the range of $215m to $220m in FY2026. For personal use only
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THANK YOU & QUESTIONS For personal use only
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Annual General Meeting For personal use only
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27 2025 Annual General Meeting | 27 Voting procedure • A poll is being held for all resolutions • Share registrar Ms Julie Stokes of MUFG Corporate Markets (AU) Limited will act as Returning Officer in relation to the polls • Results available on ASX after the meeting For personal use only
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28 2025 Annual General Meeting | 28 Resolutions • Adopt remuneration report for the year ended 30 June 2025 • Election of Directors • Patria Mann • Janette Kendall For personal use only
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29 2025 Annual General Meeting | 29 Remuneration report • Pages 35 to 55 of the 2025 Annual Report • Board, Executive Chairman, CEO and other key management personnel • Market data and external advisors Proxy Votes • Total Votes 189,192,016 (61.95%) • For 172,034,177 (90.93%) • Open 674,341 (0.36%) • Against 16,483,498 (8.71%) For personal use only
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30 2025 Annual General Meeting | 30 Election of Directors Patria Mann Proxy votes • Total Votes 189,344,559 (62.00%) • For 184,984,564 (97.70%) • Open 682,029 (0.36%) • Against 3,677,966 (1.94%) For personal use only
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31 2025 Annual General Meeting | 31 Election of Directors Janette Kendall Proxy votes • Total Votes 189,338,260 (62.00%) • For 188,478,861 (99.55%) • Open 694,387 (0.37%) • Against 165,012 (0.09%) For personal use only
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begagroup.com.au For personal use only
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33 33 Appendix - glossary Term Definition Basic EPS Basic earnings per share calculated by dividing net profit (or loss) after tax by the weighted average number of ordinary shares outstanding during the period CMV Commodity Milk Value, an indicator that is based on a weighted basket of spot prices of major commodities such as cheese, butter, skim milk powder and whole milk powder converted to an Australian dollar-denominated value of milk D&A Depreciation and amortisation (including impairment) Dairy solids Dairy solids are the non-water portion of a dairy product and is a term commonly used to describe dairy ingredient inputs in manufacturing. These solids include components such as proteins, fat, lactose and minerals EBIT Earnings before interest and tax EBITDA Earnings before interest, tax, depreciation and amortization (including impairment) EBITDA margin EBITDA divided by net revenue Funds employed Sum of net assets and net debt 1H, 2H 1H refers to the first half of the Australian financial year – July to December, 2H refers to the second half of the Australian financial year - January to June Leverage ratio Net debt divided by EBITDA after adjusting for leases in both the numerator and the denominator Material items Items of income or expense which have been determined as being sufficiently significant by their size, nature or incidence and are disclosed separately to assist in understanding the Group’s financial performance MBB Milk based beverages Net debt Net debt is calculated by subtracting total cash and cash equivalents from total short-term and long-term debt Normalised Result excluding one-off material items that do not reflect the underlying performance P&C Petrol and convenience stores Return on funds employed (ROFE) EBIT as a percentage of average funds employed YOY Year on year For personal use only
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This presentation contains a summary of information about Bega Cheese Limited ACN 008 358 503 (BGA) and its subsidiaries (Bega Group). The information does not purport to be complete and should be read in conjunction with other BGA ASX announcements. The presentation may contain statements relating to future events or circumstances, including future performance, earnings, costs, returns, prices, potential business growth, industry growth or other trend projections. Such forward looking statements are based on assumptions and involve risks and uncertainties that are outside the control of or unknown to Bega Group, its officers or employees. Actual results, performance or achievement may vary materially from that anticipated in forward looking statements. Aspects of the presentation may also assume the success of Bega Group’s business strategies. The success of the strategies is subject to uncertainties and contingencies beyond Bega Group’s control, and no assurance can be given that the anticipated benefits from the strategies will be realised. Bega Group undertakes no obligation to update any forward looking statements included in this presentation, whether as a result of new information, future events or otherwise, except as required by applicable law or any relevant regulatory authority. The release, publication or distribution of the Information in jurisdictions outside of Australia may be restricted by law and any such restrictions should be observed. The Information does not constitute investment, legal, accounting regulatory, taxation or other advice and does not take account of individual circumstances or investment objectives. Individuals a should form their own opinions and conclusions on such matters and seek their own investment, legal and taxation advice. Disclaimer 34 For personal use only