Annual report
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2025 ANNUAL Report
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01 Who We Are 02 Where We Operate 04 Our Integrated Operating Model 05 2025 Key Financial Results 06 Our Strategy 08 Chair’s Report 10 Chief Executive Officer and Managing Director’s Report 14 Operational H ighlights 20 Sustainability H ighlights 28 Board of Directors 30 Senior M anagement 33 Directors’ Report 74 Consolidated Entity Disclosure Statement 75 Lead A uditor’s I ndependence De claration 76 Consolidated Income Statement 77 Consolidated S tatement of Comprehensive I ncome 78 Consolidated S tatement of Financial Position 79 Consolidated S tatement of Changes in Equity 80 Consolidated Statement of Cash Flows 81 Notes to the Consolidated Financial Statements 124 Directors’ D eclaration 125 Independent Auditor’s Report 131 Shareholder I nformation 133 Corporate D irectory ABOUT THIS REPORT Notes t o f inancials All financials are in Australian dollars, unless otherwise stated. The financial figures provided in the front section of the Annual Report, pages 1 to 31, have been rounded, and therefore some totals and percentages may not add up exactly. The Underlying results exclude the profit or loss on sale of assets and any related legal settlements, impairment, business transformation and restructuring charges. Further, these exclusions have been tax effected to determine an Underlying Net Profit after Tax (NPAT). Our reporting suite This report can be viewed online at www.inghams.com.au . Help us to reduce our impact on the environment and email web.queries@computershare.com.au to request an electronic copy of the Annual Report in future. The Sustainability Report tracks our progress on sustainability targets, supported by a sustainability reporting suite on our website at inghams.com.au/our-purpose/sustainability , which includes: • Our FY25 Sustainability Reporting approach, including a Global Reporting Initiative (GRI) Index; • FY25 Sustainability Data Book; • Sustainability Governance and Management Approach; • Case studies of key achievements; and • Modern Slavery Statement identifying risks, management and mitigation of modern slavery in our business and supply chain. Contacts Annual Report and investor relations: investorrelations@inghams.com.au Sustainability Report: sustainability@inghams.com.au
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WHO WE ARE Our products include chicken, turkey and plant‑based protein products, and we’re one of the largest producers of stockfeed in Australia. We have approximately 8,000 people who work together to deliver the best quality food and service to our customers across retail, quick service restaurants, foodservice distributors, wholesale and export channels. Our commitment to being Always Good is backed by our sustainability and animal health and welfare leadership, demonstrated by being the first poultry producer across Australia and New Zealand to have 100% of our free range and barn raised broiler farms RSPCA Approved in Australia and SPCA Certified in New Zealand. AS A LARGE INTEGRATED POULTRY PRODUCER ACROSS AUSTRALIA AND NEW ZEALAND, WE’RE COMMITTED TO OUR PURPOSE OF PROVIDING DELICIOUSLY GOOD FOOD IN THE BEST WAY AND OUR AMBITION TO BE OUR CUSTOMERS’ FIRST CHOICE FOR POULTRY. Acknowledgement of Country Inghams acknowledges the Traditional Owners of Country on the lands on which we work, and we pay our respects to Elders past and present. Inghams also acknowledges and respects ngā iwi Māori as the tangata whenua of Aotearoa New Zealand and is committed to upholding the principles of Te Tiriti o Waitangi. Who We Are 01
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Facilities/farms Farms Hatcheries Feedmill Primary Further processing Warehouse Protein conversion plant processing and distribution Facilities/farms Operated by a third party Farms Hatcheries Feedmills Primary Further processing Warehouse Protein conversion plantprocessing and distribution Warehouse and distribution Feedmill AUSTRALIA WHERE WE OPERATE OUR GEOGRAPHICALLY DIVERSIFIED NETWORK ACROSS AUSTRALIA AND NEW ZEALAND ENABLES US TO OPTIMISE RELIABLE SUPPLY TO OUR CUSTOMERS, AND MINIMISE AGRICULTURAL AND BIOSECURITY RISKS. 02 Inghams Group Limited Annual Report 2025
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Facilities/farms Farms Hatcheries Feedmill Primary Further processing Warehouse Protein conversion plant processing and distribution NEW ZEALAND OUR PROUD HISTORY Inghams was founded as a family business in 1918 by Walter Ingham in Liverpool, New South Wales. In 1953, Walter’s sons, Bob and Jack Ingham, expanded the business across Australia, and started supplying products to major retail customers and quick service restaurants in the 1960s, followed by expansion into turkey, stockfeed and value enhanced products. In 1990, we started operating in New Zealand. The Company was acquired by TPG Capital in 2013 and listed on the Australian Securities Exchange in 2016. TPG Capital sold their last remaining shareholding on 26 August 2020. During the past decade, we have invested in capital expenditure to support our state-o f -t he -a rt facilities and to meet future growth, to firmly establish Inghams as an industry leader in Australia and New Zealand poultry. Primary processing operations, Sorell, Tasmania Where We Operate 03
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Hatcheries ~3 weeks Total approximately 70-78 weeks Rearing ~22 weeks Retail Quick Service Restaurants Foodservice Wholesale Export Production ~38-45 weeks 5-7 weeks Feedmills Genetics Primary Processing CustomersWarehousing and Distribution Consumers Further Processing Byproducts Broiler Farms External Owned or controlled Breeders OUR INTEGRATED OPERATING MODEL The investment in the continued growth of our network includes: • Entering into a long-t erm agreement with Lodestone Energy to provide renewable electricity across our New Zealand operations; • Constructing a new Live Bird Holding Shed at Osborne Park to support production, and investing in new equipment to further enhance our capacity to deliver more product to our customers; • Installing a new bird transfer system at Te Aroha – a MEYN Drawer system – that supports reliable production and higher animal health and welfare; • Investing in new equipment in our further processing facilities at Ingleburn and Lisarow, New South Wales and Auckland, New Zealand to meet the growing category demand of consumer convenience; and • Launching Tasmania’s Marion Bay chicken – certified carbon neutral from paddock to shelf by Climate Active and continuing to position Inghams as a leader in sustainable poultry. Our national network and vertically integrated operating model reduce Inghams’ biosecurity risks and ensure we can meet our customers’ needs for our deliciousl y good products. 04 Inghams Group Limited Annual Report 2025
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FURTHER PROCESSING OPERATIONS, INGLEBURN, NSW 2025 KEY FINANCIAL RESULTS ‑1.4% $ 392.2M GROUP CORE POULTRY VOLUME GROWTH UNDERLYING EBITDA 19.0CPS DIVIDENDS PER SHARE (FULLY FRANKED) 1.8X LEVERAGE RATIO (UNDERLYING PRE AASB 16) $ 89.8M NET PROFIT AFTER TAX 16.1% RETURN ON INVESTED CAPITAL (UNDERLYING PRE AASB 16) 2025 Key Financial Results 05
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OUR STRATEGY We will achieve our Purpose by running a sustainable, high performing business, with an emphasis on care for our animals and people. Our strategy is focused on growth and value creation by: • Leveraging consumer insights and established trends to improve the value of our product mix over time, concentrating on what consumers value and would pay more for; • Cultivating strong supply partnerships with customers, through which we bring desirable propositions to market, and grow the value of the category together; • Maintaining a diversified and balanced portfolio across all major channels and market segments; and • Continuously improving and enhancing our operations to improve capability and efficiency. This is enabled by: 1 A f ully integrated and geographically diverse operational network across Australia and New Zealand; 2 P roduction and supply chain capabilities that enable us to produce and distribute a wide variety of products, and improve the value of our mix; 3 I nsight and innovation capabilities that enable us to identify and execute against long-t erm market growth trends; 4 Deep customer relationships; 5 World-c lass technical expertise and know -h ow at all stages of the value chain; and 6 A s ecure and safe food supply, backed by rigorous animal health and welfare standards and a long -t erm commitment to improving the sustainability of our operations. OUR AMBITION IS TO BE OUR CUSTOMERS’ AND CONSUMERS’ FIRST CHOICE FOR POULTRY ACROSS AUSTRALIA AND NEW ZEALAND. Our Purpose is to provide deliciously good food in the best way. This is defined both by the products that we produce, and by the great outcomes we strive to create for our customers, consumers and other stakeholders. 06 Inghams Group Limited Annual Report 2025
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Underpinned by running a sustainable, high‑performing business enabled by great partnerships with our people, our customers and our suppliers to deliver consistent and reliable returns to our stakeholders STRATEGIC CAPABILITIES A FULLY INTEGRATED OPERATIONAL NETWORK THAT SUPPLIES AT SCALE AND WITH AGILITY TO LONG‑STANDING AND NEW CUSTOMERS LEADERS IN SUSTAINABILITY AND SETTING HIGHER STANDARDS IN SAFETY, ANIMAL HEALTH AND WELFARE, AND INCLUSIVE AND CONSTRUCTIVE CULTURE, QUALITY AND SUSTAINABILITY OPERATIONAL EXCELLENCE, CONTINUOUS IMPROVEMENT AND INNOVATION IN PRODUCTS THAT POSITION US TO RETURN SUPERIOR MARGINS, PROMOTED THROUGH OUR TRUSTED BRAND AMBITION TO BE AUSTRALIA AND NEW ZEALAND’S FIRST CHOICE FOR POULTRY OUR STRATEGY FRAMEWORK DELICIOUSLY GOOD FOOD IN THE BEST WAY PURPOSE DEEP TECHNICAL EXPERIENCE ACROSS OUR SUPPLY CHAIN THAT ENABLES US TO UNLOCK EFFICIENCIES AND CREATE COMPETITIVE ADVANTAGE TO DELIVER WHAT CUSTOMERS WANT, AND ADD VALUE TO SHAREHOLDERS Our Strategy 07
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CHAIR’S REPORT Welcome to the Inghams Annual Report for the 2025 Financial Year. DELIVERING SOLID FINANCIAL RESULTS IN A YEAR OF CHANGE I am pleased to report that FY25 saw the Company achieve Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of $392.2 million, while Underlying EBITDA (pre AASB 16) of $236.4 million was on par with last year’s strong results, demonstrating the strength and resilience of our diversified business model and the dedication of our people. These results were achieved through successful customer diversification, strong performance in New Zealand, and disciplined cost management across the group. FY25 was a year of change for Inghams. The Company successfully navigated the renewal of our Woolworths supply agreement, making strong progress on diversifying and significantly expanding our customer portfolio, while also maintaining stable underlying financial performance in challenging market conditions. The safety of our people is a core priority, and I am pleased to report that the Company achieved continued improvement in its safety performance during FY25. The Total Recordable Injury Frequency Rate decreased to 4.25, representing a 3.6% reduction from the prior year and exceeding our target of a 3% reduction. This achievement reflects the Company’s comprehensive approach to workplace health and safety, creating a safer environment for all our people. STRATEGIC PROGRESS PROVIDING FOUNDATIONS FOR FUTURE GROWTH Our FY25 results reflect both the challenges and opportunities of change. The successful renewal of our multi -y ear supply agreement with Woolworths, while resulting in some volume adjustments, has been a catalyst for accelerating our customer diversification strategy, positioning us well for sustainable long-t erm growth. This has been made possible by our people responding with professionalism and energy, securing new business wins across multiple channels while maintaining our commitment to operational excellence. The investments we have made in our business continue to deliver value. The completion of the Bostock Brothers acquisition in July 2024 strengthens our position in the organic segment, while our operational investments in automation and infrastructure enhance our competitive position. OUR FY25 RESULTS REFLECT BOTH THE CHALLENGES AND OPPORTUNITIES OF CHANGE. 08 Inghams Group Limited Annual Report 2025
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Our business model and capabilities position us to navigate current market conditions and emerge stronger, and include: • A fully integrated operational network providing resilience and flexibility to meet changing customer needs; • Deep technical expertise driving operational excellence and cost efficiency; • Strong partnerships with a diversified customer base across multiple channels; • Industry leadership in sustainability and animal health and welfare, with 100% of our broiler farms maintaining RSPCA Approved and SPCA Certified status; and • A clear cost reduction program delivering $60 -8 0 million in annualised savings. These strategic foundations, combined with our strong market position, enable us to pursue our Purpose of providing deliciously good food in the best way, and our Ambition to be Australia and New Zealand’s first choice for poultry. OUR PEOPLE ARE THE FOUNDATION OF OUR SUCCESS Throughout the year, our 8,000-plus employees demonstrated exceptional resilience and adaptability. We have continued building a constructive culture that enables our people to thrive, with 85% of our sites now having trained Mental Health First Aiders supporting psychological safety alongside our physical safety achievements. The improvement in our key safety measure, being the Total Recordable Injury Frequency Rate, reflects not just a strong compliance outcome but also a genuine care for each other that permeates our organisation. This culture of care extends to how we manage change, ensuring our people feel supported through uncertainty while maintaining focus on delivering for our customers every day. The implementation of our Reflect Reconciliation Action Plan, including diversity surveys and cultural awareness training, demonstrates our commitment to creating an inclusive workplace where all perspectives are valued and contribute to our success. FY25 highlights include: • Achieving 100% renewable electricity for our New Zealand operations through our partnership with Lodestone Energy; • Launching Marion Bay as Tasmania’s first carbon -n eutral certified chicken brand; • Releasing our Deforestation-Free Soymeal Statement, with 100% of Australian soy certified sustainable; • Reducing water intensity by 3.0% and maintaining our trajectory toward our 2030 targets; and • Achieving an average AA BRCGS rating across all sites, exceeding our target. BOARD AND MANAGEMENT EVOLUTION At the end of FY25, Andrew Reeves retired as Chief Executive Officer and Managing Director after more than four years leading the Company through a significant period in its history. Andrew made a tremendous contribution to the Inghams business during his tenure, moving from his position as a Non-Executive Director on the Inghams Board into the Chief Executive Officer and Managing Director role when Inghams needed him most. Andrew led the business through the unprecedented challenges posed by the global COVID-19 pandemic, successfully stabilising operations and returning the Company to profitability. Andrew was an exceptional developer of executive talent and was instrumental in building organisational capability and capacity during his time leading the business. On behalf of the Board, I thank Andrew for his significant contribution to Inghams’ success and wish him well in his future endeavours. The Board was delighted to appoint Ed Alexander as our new Chief Executive Officer and Managing Director, effective 29 June 2025. Ed’s appointment, which followed an extensive global search, exemplifies Andrew’s successful focus on nurturing internal leadership talent. Ed brings deep knowledge of our business from his decade with Inghams, most recently as Chief Executive New Zealand, where he delivered outstanding results; doubling EBITDA between FY22 and FY24, achieving significant gains in customer partnerships, and reducing employee turnover through a systematic focus on people, partnerships and innovation. Rob Gordon has returned to full Board duties following his leave of absence for health reasons. LOOKING AHEAD WITH CONFIDENCE While near-term market conditions remain challenging, the Board has confidence in our strategy and the management team’s ability to deliver strong outcomes through the second half of FY26 and beyond. To our dedicated teams who have shown remarkable adaptability, our loyal customers and suppliers who partner with us daily, and our shareholders who continue to support our journey – thank you. Together, we are building a stronger, more sustainable Inghams positioned to deliver consistent value for all stakeholders. Helen Nash Chair Chair’s Report 09
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CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR’S REPORT I am honoured to lead Inghams as we navigate an important period of transformation and set the foundations for sustainable growth. ACKNOWLEDGING ANDREW REEVES In December 2024, Andrew Reeves announced his intention to retire effective at the end of FY25. I would like to recognise and thank Andrew for his exceptional contribution during his four years leading Inghams, particularly through COVID-19’s unprecedented challenges, returning the Company to strong profitability while reshaping our culture with his commitment to doing things in the best way. Andrew leaves a legacy of principled leadership and operational excellence. On behalf of the Board and all stakeholders, we extend our gratitude and wish him every future success. FY25: A YEAR OF CHANGE AND TRANSFORMATION FY25 was characterised by significant change as we successfully completed the Woolworths contract renewal, accelerated customer diversification, and responded to challenging Australian market conditions. Despite the headwinds the business faced during the year, we delivered Underlying EBITDA pre AASB 16 of $236.4 million broadly in line with prior year, demonstrating the resilience of our integrated business model. Core poultry volumes declined modestly by 1.4%, with Australian volumes down 2.5% partially offset by strong New Zealand growth of 5.2%. The completion of the Bostock Brothers acquisition further strengthened our New Zealand position and expanded our market presence as the only supplier of premium organic poultry. While we successfully replaced the majority of transitioned Woolworths volumes through new customer wins, the shift in channel mix and lower Wholesale channel pricing, particularly in the fourth quarter of the financial year, impacted margins and earnings. We are responding decisively with comprehensive cost reduction initiatives that are expected to deliver $60-80 million in annualised savings. CONSUMER DYNAMICS AND MARKET RESPONSE The broad themes across our customer channels reflected the ongoing impact of cost -o f-l iving pressures on consumer behaviour. In Australia, Retail demand softened during the final quarter of FY25, while out-o f-h ome demand remained subdued, as budget-c onscious consumers adjusted their purchasing patterns. The fourth quarter saw a meaningful deterioration in trading conditions, with softer demand coinciding with elevated production settings as the Company sought to replace the volume lost as part of the Woolworths contract renewal. Wholesale pricing declined significantly, down 9.2% for the year, as the market adjusted to Retail channel changes and higher industry supply levels. This pricing pressure was particularly acute in the second half, with Wholesale prices declining 10.0% versus the first half of FY25. In contrast, New Zealand demonstrated the strength of our strategic positioning. Favourable market dynamics, including higher red meat prices, improved poultry’s relative value proposition, combined with our brand investments that are driving both volume growth and margin expansion. OUR COMMITMENT TO OPERATIONAL EXCELLENCE CONTINUES TO DELIVER SIGNIFICANT BENEFITS ACROSS OUR NETWORK. 10 Inghams Group Limited Annual Report 2025
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STRENGTHENING CUSTOMER PARTNERSHIPS The renewal of our multi-year supply agreement with Woolworths represents a significant milestone in our long-standing business relationship. While the volume of chicken sold to Woolworths under the new agreement is lower than the level under the previous contract, we remain their primary poultry supply partner. As we transitioned to the new Woolworths contract, we accelerated our customer diversification plans, successfully securing significant new business across the Retail and Quick Service Restaurant (QSR) channels. Our diversified customer base across the Retail, QSR, Food Service and Wholesale channels also provides multiple avenues for further growth. The integration of Bostock Brothers in New Zealand exemplifies our commitment to meeting evolving consumer preferences and establishing clear competitive points of difference across the Company. As the only certified organic poultry producer in New Zealand, Bostock Brothers strengthens our premium offering and provides growth opportunities in value-added categories and Export markets. OPERATIONAL EXCELLENCE DRIVING PERFORMANCE Our commitment to operational excellence continues to deliver significant benefits across our network. In Australia, we completed construction of a new Live Bird Holding Shed at Osborne Park (WA), aligned with our commitment to the highest operational and animal health and welfare standards. We progressed automation investments across the network, with works at Ingleburn and Lisarow positioning us well to meet growing demand for value-enhanced and fully cooked products, and to capture higher-margin product opportunities. The launch of Marion Bay as Tasmania’s first carbon-neutral certified chicken demonstrates our innovation capability and sustainability leadership. New Zealand’s outstanding performance reflects the successful execution of our strategy. The business delivered strong volume growth of 5.2%, expanded market share, and successfully integrated the acquisition of Bostock Brothers in July 2024. Our agreement with Lodestone Energy to power our New Zealand processing operations with 100% renewable electricity reaffirms our sustainability leadership position. Our network investment blueprint outlines a comprehensive multi-year program across our primary processing facilities, with approximately $120 million allocated over the next three years. These investments focus on automation in areas with the highest labour demand, targeting significant efficiency improvements, yield enhancements, and capacity expansion to support margin recovery. Key projects include the Osborne Park ‘One Touch’ automation project, expected to deliver returns exceeding 25% through elimination of manual double handling and work-in-progress bottlenecks, and the Murarrie Productivity Enhancement Project, our largest single investment at $40 million, will transform our processing capabilities through automated cut-up lines with in-line deboning technology. Chief Executive Officer and Managing Director’s Report 11
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Chief Executive Officer and Managing Director’s Report (continued) SUSTAINABILITY LEADERSHIP Safety is a core priority at Inghams. Our strong safety performance continued in FY25, with our Total Recordable Injury Frequency Rate (TRIFR) improving to 4.25, reflecting our ongoing commitment to our peoples’ wellbeing. We maintained 100% RSPCA Approved (Australia) and SPCA Certified (New Zealand) certifications across all broiler farming facilities, demonstrating our industry-leading animal health and welfare standards. Environmental achievements included exceeding our 50% recycled content packaging target, achieving a 34% reduction in waste intensity from a FY20 baseline, and transitioning our New Zealand operations to 100% renewable electricity. The certification of Marion Bay as Australia’s first carbon-neutral chicken brand showcases our ability to deliver sustainable products that meet evolving consumer expectations. We also advanced our diversity agenda, launching our Infinity women’s development program, increasing parental leave provisions, and implementing our Reflect Reconciliation Action Plan to support Aboriginal and Torres Strait Islander peoples in our business and community. SOLID FINANCIAL POSITION Following a period of increased capital investment, including the Bostock Brothers acquisition, we maintain a solid balance sheet with leverage at 1.8 times, within our target range of 1.0 to 2.0 times. Our successful refinancing during the period, increasing total facilities by $200 million and extending weighted maturity by approximately 2.4 years, provides funding flexibility for our automation programs and strategic opportunities that may arise. Cash conversion remained strong at 96.9%, and the Company announced and paid fully franked dividends totalling 19.0 cents per share, representing a payout ratio of 72.7% of Underlying NPAT. I WANT TO THANK OUR PEOPLE FOR THEIR COMMITMENT DURING THIS PERIOD OF CHANGE. THEIR DEDICATION TO DELIVERING FOR OUR CUSTOMERS WHILE IMPLEMENTING SIGNIFICANT OPERATIONAL IMPROVEMENTS HAS BEEN EXCEPTIONAL. 12 Inghams Group Limited Annual Report 2025
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FY26 OUTLOOK We expect FY26 Underlying EBITDA to be between $215-230 million, with earnings significantly weighted to the second half. The operational improvements and cost reductions initiatives we are implementing will establish a stronger platform for FY27 and beyond. Our decisive actions to address current challenges include adjusting production to match demand, reducing excess inventory, delivering brilliant customer service and implementing structural cost reductions. These initiatives, while impacting first half earnings, are essential to rebuilding margins and positioning the business for sustainable growth. Core poultry volumes are expected to be slightly higher in FY26, with growth in non-Woolworths Retail and QSR partially offset by lower Wholesale volume in line with demand. New Zealand is expected to continue its solid performance, supported by brand strength and favourable market dynamics. The full benefits of our transformation program will be realised in FY27, alongside the potential for volume growth from expanded customer relationships and improved product mix. Our network investments in automation across Murarrie, Osborne Park and other facilities will drive significant labour efficiency, yield improvements, and capacity expansion to support long-term margin recovery. POSITIONED FOR FUTURE GROWTH Despite near-term challenges, Inghams’ fundamentals remain strong. We operate at scale in growing protein markets, have deep customer relationships, industry-leading sustainability credentials, and a clear pathway to recovery. Our strategic priorities are clear and focused: delivering customer excellence through superior service, innovation and reliability; implementing cost optimisation to enhance competitiveness; accelerating growth in higher-margin value-enhanced products; and maintaining our position as the industry leader in animal health and welfare and environmental performance. I want to thank our people for their commitment during this period of change. Their dedication to delivering for our customers while implementing significant operational improvements has been exceptional. To our shareholders, acknowledging the challenges we faced in FY25 and those encompassed in our FY26 outlook, we have taken decisive action to address market conditions while strengthening our customer relationships and operational capabilities. We are focused on demonstrating disciplined execution of our strategic priorities, positioning Inghams for sustainable, profitable growth and enhanced shareholder returns over the medium term. Ed Alexander Chief Executive Officer and Managing Director Chief Executive Officer and Managing Director’s Report 13
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OPERATIONAL HIGHLIGHTS NEW ZEALAND’S OPERATIONS POWERED BY RENEWABLE ENERGY Inghams has entered into a long -t erm agreement with Lodestone Energy, New Zealand’s leading utility -s cale solar generation company, to provide renewable electricity across its New Zealand operations. From April 2025, the agreement saw Lodestone Energy generate electricity from its solar farm to meet 100% of Inghams’ electricity requirements across its New Zealand network, ensuring its operations become more sustainable. The long-t erm agreement with Lodestone allows us to reduce our carbon footprint and secure a stable and cost-c ompetitive renewable electricity source for the future. As part of this agreement, Lodestone supplies Inghams with Renewable Energy Certificates (RECs). By matching 100% of our consumption with renewable electricity, Inghams can play their part in a lower carbon future. This also reduces the number of carbon credits purchased annually from the voluntary market for Inghams’ two Toitū Net Carbonzero Certified brands (Waitoa Free Range Chicken and Let’s Eat plant-b ased). This agreement aligns with our ongoing commitment to be a leader in sustainability, supported by initiatives in New Zealand spanning Inghams’ SPCA Certification, Waitoa Net Carbonzero certification and the acquisition of Bostock Organic. Lodestone Energy – Waiotahe Te Herenga o Te Ra 14 Inghams Group Limited Annual Report 2025
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STRENGTHENING SUPPLY ON THE WEST COAST Inghams has been investing for growth in the west over the years to meet increasing demand for chicken as a high -q uality, value protein choice and to make our West Australian supply chain self-s ufficient. This growth investment has included constructing the Muckenburra Hatchery, which opened in November 2021, opening a larger Distribution Centre at Hazelmere in January 2024, and commissioning a water treatment plant at Osborne Park in April 2025. We also supported the construction of a state-o f -t he -a rt feedmill in Hope Valley by GWF, with Inghams as the anchor tenant. In FY25, we commenced construction of a new Live Bird Holding Shed at Osborne Park. This state -o f-t he-a rt facility will control temperature, humidity and airflow while containing odour to support environmental compliance. This project is the largest of several compliance initiatives including noise suppression walls, chemical storage and an on -s ite dry goods store, to minimise impact on neighbours and the surrounding environment. The site will serve as a ‘best practice’ example of a poultry processing plant in an urban environment in Western Australia. Our western investment continues with approval to proceed with another Osborne Park site upgrade. This upgrade involves installing new equipment to support additional cut -u p and deboning lines, enhancing our capacity to deliver more product while generating growth opportunities with customers. Early works began in March 2025, with the facility expected to be operational in the second half of 2026. These capital works projects have been essential for supporting Western Australia’s future growth capacity. BOOSTING OUR SUPPLY RESILIENCE AT TE AROHA INGHAMS ALSO UPGRADED ITS SMALL BIRD TRANSFER SYSTEM AT TE AROHA, NEW ZEALAND IN APRIL 2025 TO STRENGTHEN SUPPLY. THE NEW EQUIPMENT FEATURES A MEYN DRAWER SYSTEM, WHICH ALLOWS THE TRANSFER OF BOTH SMALL AND LARGE BIRDS TO SUPPORT CONTINUITY OF PRODUCTION IF THE OTHER LINE IS DOWN DUE TO MAINTENANCE REQUIREMENTS. THE SYSTEM SUPPORTS HIGHER ANIMAL HEALTH AND WELFARE AND REDUCES MANUAL HANDLING. Operational Highlights 15
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NEW BREADER, AUCKLAND MARION BAY, TASMANIAOperational Highlights (continued) INVESTING TO MEET OUR GROWING CUSTOMER’S NEEDS During FY25, Inghams continued to invest in our further processing facilities to meet the growing category demand for consumer convenience. At Ingleburn in New South Wales, we installed flexible equipment lines to produce value -e nhanced products, including kebabs, split and boneless birds. Ingleburn was strategically selected as our Value Enhanced Centre of Excellence due to its ability to efficiently manage multiple product and flavour changes. More importantly, it has been set up to meet our customers’ requirements to grow the poultry convenience segment, producing exceptional products to make life easier for families without compromising on choice. Works began in June 2024, with split and boneless bird production starting in October 2024. The project is on track to be completed in the first half of FY26. Also underway in August 2024 was the strategic transformation of Inghams’ Lisarow facility in New South Wales to deliver fully cooked products for our quick -s ervice restaurant and retail customers. The investment establishes comprehensive dual -s ite fully cooked production capacity between Lisarow and Edinburgh Parks in South Australia, improving operational flexibility for future growth, enhancing quality and environmental performance, and delivering superior customer service. The project will be completed by the end of 2025. At our further processing facility in Auckland, New Zealand, we have installed a new drum breader for applying the first bread coating, which also reduces manual loading of product. The performance of the new machine reduces manual labour, improves safety and boosts production by 40%. This will support future new product development and productivity on whole muscle products. This has already resulted in the successful launch of several new products that compete on their superior crunch, texture and taste. CARBON NEUTRAL FROM PADDOCK TO SHELF In a first for the Tasmanian poultry industry, Inghams’ Marion Bay chicken products have been certified carbon neutral from paddock to shelf by Climate Active, positioning Inghams as a leader in sustainable poultry. Carbon neutral certification was achieved by reducing emissions across the production process – from the raw materials produced for feed, to transporting and processing the chickens – and investing in certified carbon credits to offset the remaining footprint. This effort supports Marion Bay chicken as a responsible choice for Tasmanians. Inghams’ products are already recognised for high animal health and welfare, with all meat chicken growing farms in Australia certified by the RSPCA Approved Farming Scheme. This certification of our Marion Bay chicken products continues Inghams’ poultry sustainability leadership. This work was made possible with the support of an Australian Government grant of $11 million, which was used to invest in sustainability upgrades at our facilities. In other Tasmanian developments, investment in a new distribution centre in Hobart represents a significant step for Inghams’ Tasmanian operations, positioning us for future growth in the state. The purpose -b uilt greenfield development is in a freight and logistics precinct adjacent to Hobart Airport, and just 10km from Inghams’ facility in Sorell. It will deliver long-t erm value for Inghams in Tasmania once completed in October 2026. The new Hobart Distribution Centre will prioritise safety, operational efficiency, and future growth potential while maintaining cost discipline in our development approach. 16 Inghams Group Limited Annual Report 2025
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ADVERTISING CAMPAIGN IN NEW ZEALAND INNOVATIVE CHICKEN PRODUCTS IN AUSTRALIA INNOVATION ACROSS OUR PRODUCT RANGE As a leading poultry producer, Inghams continues to develop innovative chicken, turkey and plant-b ased products that both taste great and are of the highest quality. During FY25, we’ve continued to expand our range of consumer-r eady products across fresh, value-e nhanced, and further processed products with our retail customers. In QSR, we continue to closely partner with our customers to deliver products that meet global standards and improve the quality of core range products that our consumers know and love. In the foodservice sector, we maintain the same high-q uality standards while offering competitive pricing to help foodservice distributors drive sales with their end -u ser customers. Inghams has received strong early acceptance and uptake from customers across multiple channels in this sector, including petrol and convenience, education, hospitality, pubs, clubs and healthcare. Our products are increasingly in demand, driven by our commitment to high -q uality product and sustainability. In Australia, Inghams recently launched its third carbon neutral certified brand, Marion Bay from Tasmania, following the earlier launches of Waitoa Free Range and Let’s Eat plant‑based as Toitu Net Carbonzero certified in New Zealand. In New Zealand, a research -d riven marketing strategy leveraged extensive consumer insights to develop bold new creative campaigns that centered on warm family moments and shared meal experiences, successfully driving growth by engaging shoppers and expanding our market -le ading product portfolio. Our Wooleys family has delighted New Zealand audiences. IN NEW ZEALAND OUR DINO NUGGETS WERE PROMOTED THROUGH CREATIVE SOCIAL MEDIA CAMPAIGNS. Operational Highlights 17
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Operational Highlights (continued) FY25 NEW PRODUCTS INGHAM’S Australia Buttermilk burgers and tenders – offered in original and spicy and meeting growing consumer demand for a takeaway-t aste at home. 1.5kg value range – expanded to include Sweet Chilli Tenders, Original Nuggets, Original Tenders and new DINO Nuggets to provide a value offer to consumers on our everyday lines. Hot Honey and Smokey Chipotle Wing Dings – provided a point of difference in the freezer aisle and meeting demand for a takeaway-t aste at home. Boneless butterflied chicken – ranged in mango and spice and Greek-s tyle garlic, lemon and herb flavours, it’s designed for easy cooking in the oven or on the barbecue. Peri Peri hot roast chicken – launched as part of a seasonal rotation to cater for consumers who like a zesty and spicy flavour punch. New Zealand Crunchy Fixx Buttermilk, Spicy Buttermilk Burgers and Tenders – levelling up Ingham’s enjoyment factor with a range of at home takeaway style options. Dino nuggets – launching New Zealand’s very first Dino Nuggets, driving maximum play value for families at mealtimes. MARION BAY Relaunched the Marion Bay products with the additional certification of being ‘Carbon Neutral’. Refer Operational Highlights for details. BOSTOCKS Kiwi Onion Nibbles – launched pre-p acked nibbles in the popular New Zealand flavour ‘Kiwi Onion’. WAITOA Flavour kits – introduced two convenient meal kits flavours, Thai Green Curry and Pepper Chicken. The Four Saucemen BBQ collab – collaborating with award winning BBQ rub brand to provide summer seasonal flavours on fresh drumsticks, wings and butterfly bird. Lite and crispy – launched NZ’s first low carbohydrate and high protein crumbed chicken product into the freezer section. Awards During the 2025 financial year, Inghams received a number of awards including: Supplier of the Year in the deli category by Metcash Supplier of the Year 2024 in the Food: Good Food Fast category by New Sunrise Food For Now Supplier of the Year 2024 by SPAR Australia Fresh Food Supplier of the Year 2024 by Karellas New Zealand Award for Food Safety and Quality by McDonald’s New Zealand Poultry Award 2024 for Muhannad Juma who was recognised for his contributions to the poultry industry Favourite supermarket chicken nuggets (Inghams Chicken Breast Nuggets Original) as voted by kids and overseen by CHOICE magazine 18 Inghams Group Limited Annual Report 2025
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QUICK SERVICE RESTAURANT Australia Southern‑style wings – a fully cooked, crunchy wing that delivers a bold savoury flavour hit perfect for on the go snacking. Breast fillet – a juicy and tender chicken breast fillet cut to the perfect size for a grilled burger concept. Marinated drumstick fillets – juicy boneless drumstick fillets with a perfectly smokey marinade perfect for burger concepts and snacking options. New Zealand Crispy breast fillet – a whole muscle breast fillet, marinated in a lemon and pepper marinade and coated with a light crispy coating applied by drum breader to provide a homestyle product. Fully cooked chicken road map – conversion of four chicken products to fully cooked chicken to improve food safety in the customer’s restaurants. Hot and spicy fries – redevelopment of fries to a fully cooked product. Korean‑style bites – development of a plain bite with a crunchy texture with a Korean-s tyle sauce. Marinated products – development of a fresh cut donor product marinated in the mild seasoning to be coated in the ‘back of house’ at the restaurant. FOODSERVICE Buttermilk chicken breast burger – whole muscle chicken breast fillet marinated creamy buttermilk, coated in a golden, crunchy crumb. 100‑gram chicken breast burger – made with succulent breast fillet with a delicious coating, this burger is fully cooked which is great for school lunches. 1.6kg seasoned and marinated frozen whole chicken – this frozen wholebird is seasoned and marinated with a stuffing core, and great for remote supermarkets, mine sites and general catering. RETAIL Australia Garlic butter Kyiv balls – introduced in the freezer aisle as part of a customer’s ‘limited time only’ value -o ffering, and extended due to demand. Home burgers – provided an out-o f -h ome burger experience in introductory flavours of peri peri breast fillet and classic crumbed. Kebabs – repackaged formats to even-n umbered kebabs to better suit family meal planning. Hot roast chicken garlic bread – launched as part of seasonal rotation to cater for this highly popular consumer flavour profile. Christmas range – supporting our customers with a range of turkey roasts, turduckens, and whole bird options. Fresh cuts range – offering larger pack formats in a range of different cuts and portions whilst supporting distribution across Australia. New Zealand Orange and five‑spice whole chicken – the development of a unique proposition for the customer as a ‘limited time only over the 24/25 Summer in NZ. A marinade and a glaze. Smokey BBQ deli and butchery product – the continued development of a ‘limited time only’ product for the Winter 25 period in NZ, both a marinade and glaze. Festive Christmas bird – the development of a spiced cranberry with gingerbread stuffed whole chicken for the Christmas period. Sundried tomato butterflied bird – a ‘limited time only’ flavour in the fresh chicken category. Further processed range – reformulated to continually improve quality, with five products completed; nuggets crumbed/tempura, bites, burgers, tenders. Operational Highlights 19
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SUSTAINABILITY HIGHLIGHTS AS AUSTRALIA AND NEW ZEALAND’S LARGEST INTEGRATED POULTRY PRODUCER WITH OVER 100 YEARS OF HERITAGE, WE ARE A LEADER IN SUSTAINABILITY THROUGH BEST PRACTICES THAT ARE ALWAYS GOOD FOR OUR ANIMALS, THE ENVIRONMENT AND THE COMMUNITIES. Our 20301 Sustainability Roadmap guides our responsible business practices, aligns with our strategic direction, and creates long-t erm value for shareholders, customers, and communities. This year’s report highlights our progress towards our sustainability targets, supported by a sustainability reporting suite on our website at inghams.com.au/ our-purpose/sustainability . 1. T he timeline in the 2030 Sustainability Roadmap refers to FY30. OUR COMMITMENT In FY25, we refined our materiality assessment based on reviewing existing surveys and feedback from our people, investors and customers. Based on these insights, we refined our focus in the 2030 Sustainability Leadership Roadmap from 14 to nine material topics to focus efforts on stakeholders’ key priorities together with clear metrics and targets. This year’s sustainability reporting reflects these refined material topics, with the full updated 2030 Sustainability Leadership Roadmap to be released during FY26. Lodestone Energy – WaiotaheTe Herenga o Te Ra 20 Inghams Group Limited Annual Report 2025
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BEST FOR BIRDANIMAL HEALTH AND WELFARE In FY25, we continued to embed the refined Best for Bird Animal Health and Welfare Strategy. Through linking our initiatives to our strategic imperatives, we prioritised our activities to optimise the positive impact on our animals, and the people that care for them. This included developing a pilot of bird care basics training modules that were delivered throughout our breeder farms, which will be rolled out further in FY26. We have increased engagement across the business through company-w ide activities such as celebrating World Veterinary Day on our internal communications platform and including an Animal Health and Welfare Award in our Good Egg Awards. Incorporating Qualitative Behavioural Analysis into our on-f arm research in FY25 has enabled us to focus on environments that promote positive bird behaviours, with learnings informing our FY26 phase two trials. During the year, 100% of our meat chicken farms and primary processing sites have maintained certification from RSPCA Approved in Australia and SPCA Certified in New Zealand. We also formalised our internal CARE audit program to gain greater transparency and accountability across our chicken breeder farms and hatcheries. AND PRODUCTS PRODUCT SAFETY In FY25, there were 98 audits by Brand Reputation through Compliance Global Standards (BRCGS), regulators, industry and customers, conducted by external auditors across Inghams’ primary processing, further processing and distribution sites. We achieved: • Average AA BRCGS rating across all sites, above the targeted average A rating; and • 99% completion of the Product Pride Program across all sites, above the FY25 target of 90%. Product Pride includes a range of policy, training and engagement activities. In FY25, this included: • Sharing the Quality team’s function and highlights internally during Quality Month in July; • Educating on pre-r equisite programs and conducting HACCP review at selected sites, including cleaning and sanitation, traceability and identity preservation, and calibration; • Implementing foreign material awareness and reduction initiatives; • Focusing on labelling compliance; and • Conducting allergen awareness and control activities to coincide with World Food Safety Day. Maintained 100% certification with RSPCA Approved and SPCA Certified for our chicken broiler farming facilities in line with our target to maintain 100% certification. We engaged with our learning team to develop a pilot of ‘Bird Care Basics’ training modules throughout our breeder farms, which will be rolled out further in FY26. Maintained an average AA rating under BRCGS across all sites, surpassing Inghams’ targeted average A rating. Highlights Our Animals Sustainability Highlights 21
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Sustainability Highlights (continued) CLIMATE ACTION In FY25, Inghams reduced absolute scope 1 and 2 Greenhouse gas (GHG) emissions by 4.1% vs FY24, and by 17.4% from the FY19 baseline, progressing towards our 2030 target of a 46.2% reduction1. We achieved a 31.0% reduction in emissions intensity from a FY19 baseline, highlighting our progress in energy efficiency. The rate of reduction is on track to meet our FY30 target, taking into account Inghams’ emissions reduction plans and projected grid decarbonisation. Key initiatives and progress include: • Sourcing 100% renewable electricity in New Zealand through a new agreement with Lodestone Energy. • Achieving carbon -n eutral certifications: Marion Bay became Tasmania’s first carbon -n eutral certified chicken brand, verified by Climate Active, while Waitoa Free Range and Let’s Eat plant-b ased brands in New Zealand maintained Toitū net carbonzero certification for the fourth consecutive year. • Delivering energy efficiency projects: – Installing a heat recovery system at our Tasmanian hatchery with Federal Government grant support, which recycles incubation heat to support healthier day-o ld chicks. – Securing government funding for the high -t emperature heat pump project at the Te Aroha primary processing plant and delivering LED upgrades, compressor optimisation, freezer heat integration, and improved metering across various sites. • Supporting GHG reduction in our supply chain by launching a Carbon Neutral Agriculture Training Program for contract growers in Queensland and South Australia, partnering with Rabobank and the University of Melbourne. • Implementing online training to help sites understand their energy, water and waste use. 1. S cope 1 methane emissions from industrial wastewater handling, while included in our annual National Greenhouse and Energy Reporting Scheme (NGERS) reports, are not currently captured in our annual GHG reporting. From FY26, we will incorporate this additional scope 1 source into our annual GHG reporting, with data re-baselined to our FY19 baseline year and target updated to reflect this expanded reporting scope. Our Environment Inghams Deforestation Free Soymeal Statement was released. This outlines our commitment to maintaining purchase of soymeal from supply chains certified as deforestation free. 17.4% reduction in absolute scope 1 and 2 greenhouse gas emissions and 31.0% reduction in emissions intensity from a FY19 baseline. Switched to 100% renewable electricity in NZ operations. Marion Bay chicken certified carbon neutral by Climate Active. Continued to improve packaging performance, surpassing our target of 50% recycled content in packaging and increasing the percentage of our packaging that is recyclable from 86% to 89% towards our target of 100%. Reduced total water use by 3% vs FY24, meeting our FY25 target, and reduced the water withdrawal intensity by 5.5% vs FY25. Highlights 22 Inghams Group Limited Annual Report 2025
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HEALTHY DAY‑O LD CHICKS MARION BAY TREE PLANTING • Identifying technically feasible onsite solar projects and continuing to investigate financial mechanisms to implement these projects with landlords and energy partners. In FY25, Inghams completed a comprehensive scope 3 footprint using FY24 data. We will continue to develop our scope 3 reporting capability in FY26 in preparation for public reporting of scope 3 in FY27. No Climate-r elated Financial Disclosures updates were issued in FY25. We are preparing for the new mandatory requirements in FY26. Current relevant disclosures remain available in our FY24 Annual Report (pages 32–35). To reflect the commencement of purchasing 100% renewable electricity in New Zealand, Inghams has reported Scope 2 emissions as both market-b ased and location -b ased emissions in the Sustainability Data Book on our website for the first time. SUSTAINABLE AGRICULTURE AND BIODIVERSITY At Inghams, we recognise the role of our operations and supply chains in protecting biodiversity and preventing deforestation. Sustainable f eed In March 2025, we released our Deforestation -F ree Soymeal Statement, committing to sourcing soymeal exclusively from certified deforestation -f ree supply chains. In FY25, 100% of soy used by Inghams in Australia was certified deforestation free, and 97.4% of soy used by Inghams in New Zealand was certified deforestation free. The small volume of uncertified soy used in New Zealand was procured by a recently acquired New Zealand brand operating independently. We are engaging with this business to align with our sustainable sourcing policies, including certified soy. In New Zealand, we continue to partner with government, industry and universities on a project to develop alternative protein sources for poultry feed. While an Australian trial did not proceed in FY25 due to feasibility constraints, we remain focused on future innovations. Sustainable s ourcing • All cardboard packaging is sourced from Forest Stewardship Council (FSC) certified suppliers. We will transition our bamboo skewer supplier to FSC-c ertified from FY26. • Palm oil is not used in feed. Minor ingredients containing palm oil (e.g. crumb), use only certified sources. Protecting and enhancing biodiversity around our sites In FY25, operational sites at Sorell, Bolivar, Murarrie and Te Aroha engaged with community groups to protect and enhance local biodiversity. For example, staff from Murrarie primary processing in Queensland volunteered at a planting with Landcare on a nearby waterway as part of the Urban Rivers Planting Initiative. Sustainability Highlights 23
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IMPROVING WATER PERFORMANCE Sustainability Highlights (continued) WATER STEWARDSHIP To support our target to reduce total water intensity by 20% by 2030 compared to FY19, in FY25 we: • Reduced total water intensity by 3.0% vs FY24 and 13.1% vs FY19, on track towards our 2030 target; • Recycled 17.4% of total water through onsite treatment and recirculation; • Decreased the water withdrawn from the environment intensity by 5.5% in FY25 vs FY24 from 2.55 to 2.41 kL/Tonne; • Improved water efficiency, expanded reuse, and ensured the quality of discharged water through initiatives including: – Finalising commissioning of the Wastewater Treatment Plant (WWTP) at Osborne Park in Western Australia, enabling the reuse of recycled water onsite for in FY25; – Improving the performance of the Advanced Water Treatment Plant (AWTP) at Murarrie in Queensland, where up to 550,000 kilolitres of poultry processing wastewater is recycled for reuse; – Partnering with Ecolab to identify additional recycled water applications at Murarrie, which included exploring opportunities for reducing water use in site cleaning; – Progressing work started in FY24 to upgrade the Wastewater Treatment Plant at Sorell in Tasmania to improve discharge quality and unlock future reuse potential, with works on track to be completed in FY26; – Implementing water reduction initiatives at all sites to reach water efficiency targets as outlined in Environmental Management Plans and continuous improvement projects; and – Scoping a project to implement online water metering across all sites to be implemented over future years. Essington Distribution Centre, South Australia 24 Inghams Group Limited Annual Report 2025
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WASTE AND SUSTAINABLE PACKAGING In FY25, Inghams achieved a 33.9% reduction in waste to landfill intensity from our FY20 baseline, exceeding our target of 20% waste reduction by 2030. We achieved 89% reusable or recyclable packaging towards our target of 100% reusable, recyclable or compostable packaging as defined by Australian Packaging Covenant Organisation (APCO). We exceeded the target of 50% of packaging comprised of recycled content by FY25, with 58% recycled content on average across all our packaging 1. Sustainable packaging projects in FY25 included: • Increasing recycled cardboard material used in transportation cartons and boxes to 50 -6 0%; and • Displaying Australasian Recycling Label (ARL) logos on 100% of Inghams products by the end of 2025, helping consumers dispose of packaging responsibly and reduce recycling contamination. To reduce waste to landfill, sites undertook several initiatives: • Establishing recycling streams, including glove recycling through TerraCycle at Prestons; plastic containers and crates at Sorell; community -b ased pallet recycling at Mt Maunganui Feedmill; and soft plastic recycling at Lisarow; • Conducting waste mapping at Osborne Park to identify waste sources and opportunities for reuse, recycling and disposal; and • Piloting a dehydrator at Charlton Breeder Farm that converts organic waste into pathogen -f ree, nutrient-r ich fertiliser material, with applications of use still being explored. 1. D ata from Inghams 2025 APCO report, which reports on FY24 data. Data is for Australia only. New Zealand data will be included from FY26 annual reporting. THE TARGET TO HAVE 50% OF PACKAGING COMPRISED OF RECYCLED CONTENT BY FY25. We exceeded Sustainability Highlights 25
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Sustainability Highlights (continued) IMPLEMENTED REFLECT RECONCILIATION ACTION PLAN Including actions such as a diversity survey, and cultural awareness training CONTINUED SAFETY IMPROVEMENTS across the business, with our Total Recordable Injury Frequency Rate (TRIFR) declining by 3.6% 1,137 TONNES OF CHICKEN DONATED Equivalent to more than 2 MILLION MEALS KEEPING OUR PEOPLE SAFE In FY25, we maintained our unwavering dedication to care for our people and everyone visiting our facilities by completing the first year of the two-year FY24 to FY26 Safety for Life program across all sites, surpassing our 95% compliance target company-wide. We began rolling out SEEN Safety technology across our forklift fleet to enhance traffic management. This innovative technology converts reflective tape on high-visibility workwear into live pedestrian detection for forklifts. A range of capital investment projects across the group also improved safety, including manual handling and traffic management. Our psychological safety and wellbeing initiatives continue to improve teams’ mental health and work-life balance, including the ongoing rollout of the Mental Health First Aid and Training program. We exceeded our commitment to reduce Total Recordable Injury Frequency Rate (TRIFR) by 3% from FY24, achieving a 3.6% decline from 4.41 to 4.25. Our FY26 TRIFR reduction target has been set at 2%, reflecting our best -p ractice safety performance and the incremental nature of further improvements at industry -le ading levels. GROWING OUR PEOPLE In FY25, we maintained our commitment to diversity through our Inclusion, Equity and Diversity, and Wellbeing calendar, with 70% of sites recognising diversity days. We updated our Parental Leave Policy, increasing primary carer leave from eight to 12 weeks, available after six months' employment, and expanding coverage to include surrogacy, guardianship and First Nations care such as Kinship Care in Australia and Whāngai in New Zealand. We advanced our Reflect Reconciliation Action Plan (RAP) by developing business cases for First Nations inclusion in recruitment and learning programs, benchmarking First Nations employment, and requesting diversity details in our new supplier system. Building on these insights, we will develop the next RAP phase in FY26. Key celebrations included National Reconciliation and NAIDOC Weeks in Australia, and Matariki in New Zealand with cultural activities and native plantings. Highlights AND COMMUNITIES Our People 26 Inghams Group Limited Annual Report 2025
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ENHANCED FORKLIFT FLEET SAFETY ACKNOWLEDGING NAIDOC WEEK Inghams submitted its Workplace Gender Equality Report (WGEA) in FY25 and, while we acknowledge a better outcome is desired and required, Inghams' gender pay gap increased 0.5% from 9.6% to 10.1% in FY25, remaining below the WGEA benchmark of 21.8%. This reflects gender imbalance in senior leadership, where women comprise 43% of our Board, 25% of the Executive Leadership Team, and 33% of the Organisational Leadership Team (59 senior leaders). We launched Infinity, a women's development group to support our target of 40% women in leadership. The program includes mentoring and Chief Executive Women participation and supporting our succession planning where 47% of candidates are women. Leveraging our ACON (the AIDS Council of NSW) membership, we established confidential contacts, updated our parental leave policy, and promoted monthly online training annual events to support inclusivity. We also participated as a panellist in the Western Sydney Summit, chaired by Pride in Diversity, to share our initiatives promoting LGBTQ+ awareness. All People and Performance policies are available in the top 10 languages spoken across our business, with multilingual video tutorials for some Finance and Technology policies. We’ve also transitioned to a new internal communications platform with built-in translation functionality. SUPPORTING OUR LOCAL COMMUNITIES We continued our support in FY25 to communities across Australia and New Zealand through strategic partnerships addressing food security, health, education, and environmental sustainability. Our Foodbank partnership delivered significant impact, donating 1,123 tonnes of product in Australia—equivalent to more than 2 million meals—plus 14.87 tonnes in New Zealand, demonstrating our commitment to addressing food insecurity. Health and community initiatives included Emerald sponsorship of the Woolies Wheels and Walks Tour de Cure for the sixth consecutive year, with our team raising over $6,000, and sponsoring Matamata's $11 million Indoor Sports and Recreation Hub in New Zealand's Waikato region, scheduled for completion in February 2026. Our $50,000 contribution to Ronald McDonald House Charities funded 125 nights of accommodation for families with sick children, while employees participated in the Meals from the Heart cooking program. Education and career development remained priorities through two CareerTrackers internships, and two NIDA First Nations scholarships for Master of Fine Arts students, advancing reconciliation through increased representation in the arts. Environmental stewardship initiatives supported local river bank planting along the Piako River through our Environmental Enhancement Funding, with school children participating in annual native tree planting. Our people volunteered in restoration efforts, planting 827 native trees adjacent to the protected Kahikatea forest near the Kopuatai Peat Dome. These partnerships reflect Inghams' integrated approach to community support, combining direct assistance and food donation with long-term capacity building across health, education, recreation, and environmental restoration. Sustainability Highlights 27
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BOARD OF DIRECTORS HELEN NASH Chair Bachelor of Arts (Honours), Graduate of the Australian Institute of Company Directors Chair of the Board of Directors, Chair of the Nomination Committee, Member of the Risk and Sustainability Committee Helen started her career in finance with the Certified Institute of Management Accountancy. On completion of these professional exams, she transitioned to a marketing career spanning more than 20 years and three industries: consumer packaged goods, publishing and media, and quick service restaurants. Helen was Senior Vice President and Chief Marketing Officer for McDonald’s Australia and New Zealand, before taking on strategic, commercial and operational responsibility for the business as Chief Operating Officer for McDonald’s Australia. Helen is currently an independent Non -E xecutive Director of Metcash Limited and Ampol Limited. She was formerly a Non-E xecutive Director of Blackmores Limited, Pacific Brands Limited and Southern Cross Media Group Limited. EDWARD ALEXANDER Chief Executive Officer and Managing Director Bachelor of Commerce (Economics, Finance), Advanced Management Program (Wharton) Ed joined Inghams in 2015 and has held several key leadership roles across operations, sales, corporate development, strategy, integrated business planning and commercial finance. In 2020, he was appointed Chief Strategy Officer, with responsibility for group strategy and integrated business planning. In 2022, he was appointed Chief Executive, New Zealand. He brings more than 15 years of experience in risk management, corporate strategy, change management, and sales and operations planning, including from his previous roles at Aon Risk Solutions and Ernst & Young. ANDREW REEVES Former Chief Executive Officer and Managing Director * Retired from role effective 28 June 2025. Bachelor of Arts (Economics), Advanced Management Program at Harvard Business School Andrew was appointed Chief Executive Officer and Managing Director of Inghams Group Limited on 29 March 2021. He has more than 40 years’ experience in leadership and governance roles across the food and beverage, and agribusiness industries in Australia and internationally. From 2019 to 2021, Andrew was a Non-E xecutive Director of Inghams Group Limited, and a member of the Finance and Audit Committee, and Risk and Sustainability Committee. He was previously the Chief Executive Officer of George Weston Foods Limited, Managing Director and Executive Director of Lion Nathan Limited, Managing Director Australia of Coca Cola Amatil Limited, Managing Director of The Smith’s Snackfood Company and a Non-E xecutive Director of Halo Food Co. Limited. LINDA BARDO NICHOLLS AO Non‑Executive Director Bachelor of Arts (Economics), Master of Business Administration, Life Fellow of the Australian Institute of Company Directors Member of the Finance and Audit Committee, Member of the Risk and Sustainability Committee, Member of the People and Remuneration Committee, Member of the Nomination Committee Linda has more than 25 years’ experience as a non-e xecutive director and chair of large ASX -l isted companies, government business enterprises, private firms and not-f or-p rofit organisations. Her executive career was in banking, insurance and funds management in Australia, New Zealand and the United States. Linda is currently Chair of Melbourne Health (operating as Royal Melbourne Hospital), and a Non -E xecutive Director of Medibank Private Limited and Museums Board of Victoria. Previously, Linda was Chair of Japara Healthcare Limited and Keolis Downer, and a Director of Fairfax Media Limited. 28 Inghams Group Limited Annual Report 2025
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ROB GORDON Non‑Executive Director Bachelor of Science (Honours), Chartered Engineer, Member of the Australian Institute of Company Directors Member of the Finance and Audit Committee, Member of the Nomination Committee Rob has 40 years’ experience in the FMCG and agribusiness sectors. This includes more than 25 years in chief executive officer and managing director roles for companies including Dairy Farmers Pty Limited, Goodman Fielder Limited (Meadow Lea and consumer goods divisions), Viterra Inc and Ricegrowers Limited. Rob is currently a member of the Rabobank Agribusiness Advisory Board and a Board member of the AgriFood Innovation Institute of ANU. He has also served as Non-E xecutive Deputy Chair of the Australian Food and Grocery Council and as a Member of Gresham Private Equity Advisory Board. MARGARET HASELTINE Non‑Executive Director Bachelor of Arts, Secondary Teachers Diploma, Fellow of the Australian Institute of Company Directors Chair of the Risk and Sustainability Committee, Member of the Nomination Committee Margie has more than 30 years of business experience across manufacturing, end -t o-e nd supply chains and logistics, and is experienced in product, brand, strategy, risk, change management and governance. Her career includes 20 years with Mars Inc, with five years as Chief Executive Officer of Mars Food Australia (formerly Masterfoods Australia New Zealand). Margie currently serves as Non -E xecutive Director of Metcash Limited, Kennards Hire Pty Limited, The Real Pet Food Company and Active Tree Services. Her experience includes various board roles, across business, government and not -f or-p rofit, including National Food Precinct, Agrifood Skills and BagTrans. Margie recently retired from the Boards of Bapcor Limited and Tye Soon Limited (Singapore). MICHAEL IHLEIN Non‑Executive Director Bachelor of Business (Accounting), Fellow of the Australian Institute of Company Directors, Fellow of Certified Practising Accountants, Fellow of the Financial Services Institute of Australasia, Member of the Financial Executives Institute of Australia Chair of the Finance and Audit Committee, Member of the People and Remuneration Committee, Member of the Nomination Committee Mike has significant experience across FMCG, supply chain and logistics companies. He has held senior roles at Coca-C ola Amatil Limited, including Executive Director and Chief Financial Officer and Managing Director of Coca-C ola Amatil Poland. He was also Executive Director and Chief Financial Officer of Brambles Limited prior to becoming Chief Executive Officer until his retirement from this role in 2009. Mike also serves on the Boards of Ampol Limited, Scentre Group Limited and the not -f or-p rofit mentoring organisation Kilfinan Australia, and was formerly a Non -E xecutive Director of CSR Limited. TIMOTHY LONGSTAFF Non‑Executive Director Bachelor of Economics, Fellow of the Institute of Chartered Accountants in Australia and New Zealand, Senior Fellow of the Financial Services Institute of Australia, and Fellow of the Australian Institute of Company Directors Chair of the People and Remuneration Committee, Member of the Finance and Audit Committee, Member of the Nomination Committee A chartered accountant, Tim had a 25 -y ear career in investment banking, with many years in managing director and senior executive roles at top tier global investment banking firms, where he advised the boards and chief executive officers of leading Australian and international companies on transformational strategic mergers and acquisitions, and capital markets transactions. More recently, Tim served as Senior Advisor to a Federal Cabinet Minister in the trade & investment, and finance portfolios. Tim is also a Non-E xecutive Director of Perenti Global Limited, The George Institute for Global Health, Aurizon Holdings Limited, Aurizon Network Pty Ltd and Nine Entertainment Co Holdings Limited. Tim is a Member of Australian Government’s Takeovers Panel. He has recently retired as a Non-E xecutive Director of Snowy Hydro Limited. Board of Directors 29
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SENIOR MANAGEMENT GARY MALLETT Chief Financial and Commercial Officer Chartered Accountant, Bachelor of Business (Accounting). Gary joined Inghams in 2019. He is responsible for the Company’s financial management and reporting, treasury, investor relations, company secretarial and legal, risk management, procurement, property management, mergers and acquisitions, and integrated business planning. Gary has more than 30 years’ experience in various senior finance roles with ASX -l isted companies, including Brambles Limited and Origin Energy Limited. Before joining Inghams, he was Chief Financial Officer at Senex Energy Limited. He also serves as Secretary and Director of several Inghams Group Limited subsidiary companies. ANNE‑MARIE MOONEY Chief Operations Officer Bachelor of Commerce, Graduate of the Australian Institute of Company Directors Anne-M arie joined Inghams in 2018 and was appointed Chief Operations Officer in March 2022. She is responsible for Inghams’ Australian chicken and turkey operations, including farming, feedmills, processing and distribution. She also leads Inghams’ sustainability, animal health and welfare and veterinary services. Anne-Ma rie’s experience in the Company includes executive responsibility for agricultural operations and commodity procurement for Australia and New Zealand. She has more than 25 years’ experience across the energy and agricultural sectors in roles spanning risk, strategy, transformation, commercial sales and operations. She is also an experienced senior executive who held positions at Eraring Energy and Ridley Corporation Limited. MATTHEW EASTON Chief Executive, New Zealand Master of Business Administration, Bachelor of Commerce and Bachelor of Science Matt was appointed Chief Executive, New Zealand in March 2025. He is responsible for leading the New Zealand business across all operations, sales and customer, commercial and support services. Matt joined the Company in 2015 initially working in the strategy team. In 2019, he was appointed General Manager, Sales and Marketing, New Zealand and in 2022 he was appointed General Manager, Operations and Planning with responsibility for farming, primary processing, capital, sustainability and external relations in New Zealand. Prior to joining Inghams, Matt worked in strategic roles at Accenture and Woolworths Group. 30 Inghams Group Limited Annual Report 2025
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CAROLINE HAYES Chief Growth Officer Master of Science (Biotechnology), Bachelor of Science (Biochemistry) Caroline was appointed Chief Growth Officer of Inghams, effective 30 June 2025. She leads Inghams’ enterprise-w ide growth agenda, driving innovation, strengthening brand equity and consumer connection, and identifying new market opportunities to enable sustainable business expansion. Bringing more than 20 years of experience across sales, marketing, strategy, commercial and operations, Caroline joined Inghams in 2020 as General Manager, Procurement before being appointed General Manager, Strategy, Sales and Marketing, and Bostocks in New Zealand. Prior to Inghams, Caroline held leadership positions at Kinrise, Blackmores, and Mars. GRANT KERSWELL Chief People Officer Bachelor of Business (Human Resource Management), Master of Business Administration Grant joined Inghams in 2019. He provides strategic advice in critical areas such as capability, culture, communications, safety and wellbeing, payroll and remuneration, and workplace relations. Grant has more than 30 years’ leadership experience in human resources from previous senior roles at organisations including The Arnott’s Group, Broadspectrum, Coca -C ola Amatil and the Seven Network. This experience underpins his delivery of robust and innovative human resources solutions that align with strategy and business objectives. ANDREW LOCK Chief Technology Officer Master of Business and Technology Andrew joined Inghams in 2025. He is responsible for managing our technology solutions to meet long -t erm business goals, drive innovation, lift capability and enable growth. Andrew has more than 25 years of experience leading technology transformation and innovation across the agriculture and FMCG industries. Before joining Inghams, he was the Global Chief Information Officer at Associated British Foods, a diversified international food, ingredients and retail group operating across Europe, Southern Africa, the America, Asia and Australia. His earlier career included senior positions leading technology at George Weston Foods and Unilever. MARK POWELL Chief Customer Officer Bachelor of Commerce, Master of Business Administration, Chartered Accountant, Graduate of the Australian Institute of Company Directors Mark joined Inghams in 2021. He is responsible for managing our customer relationships, strategic marketing and new product execution. Mark has more than 25 years’ experience in the FMCG industry. In previous roles, he led cultural change to build high performing teams, achieve consistent sales, market share and profit growth, and develop and execute strategic plans. Before joining Inghams, Mark held senior leadership roles with Coca -C ola Amatil, Lion Nathan and PwC Australia. Senior Management 31
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CONTENTS 33 D irectors’ Report 74 C onsolidated Entity Disclosure Statement 75 L ead Auditor’s Independence Declaration 76 C onsolidated Income Statement 77 C onsolidated Statement of Comprehensive Income 78 C onsolidated Statement of Financial Position 79 C onsolidated Statement of Changes in Equity 80 C onsolidated Statement of Cash Flows 81 N otes to the Consolidated Financial Statements 124 Di rectors’ Declaration 125 I ndependent Auditor’s Report 131 S hareholder Information 133 C orporate Directory 2025 Financial Report Inghams Group Limited Annual Report 202532
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Directors’ Report This audited general purpose financial report for the 52 weeks ended 28 June 2025 covers the consolidated entity comprising Inghams Group Limited (the Company) (ACN 162 709 506) and its controlled entities (‘The Group’, ‘Inghams’). The FY24 results included a 53rd trading week. Comparisons with FY24 in the operating and financial review section within the Directors’ Report are based on a 52‑week basis (using 26/27 week calculation method for H2, i.e. normalised basis). The Group’s functional and presentation currency is Australian dollars ($), rounded to the nearest hundred thousand, except where stated otherwise. Directors The following persons were Directors of Inghams Group Limited during the year and until the date of this report unless otherwise noted: Name Role Date of appointment Date of resignation Helen Nash Chair 16 May 20171 Rob Gordon Non‑Executive Director 11 April 20192 Margaret Haseltine Non‑Executive Director 1 September 2023 Michael Ihlein Non‑Executive Director 16 April 2020 Timothy Longstaff Non‑Executive Director 20 January 2022 Linda Bardo Nicholls AO Non‑Executive Director 7 October 2016 Andrew Reeves4 CEO & Managing Director 14 January 20193 28 June 2025 Edward Alexander5 CEO & Managing Director 29 June 2025 1. H elen Nash served as a Non‑Executive Director from 16 May 2017 until her appointment as Chair on 20 August 2022. 2. R ob Gordon was on a Board approved leave of absence from 23 January 2024 to 31 July 2024. 3. A ndrew Reeves served as a Non‑Executive Director from 14 January 2019 until his appointment as CEO & Managing Director on 29 March 2021. 4. A ndrew Reeves retired from the role of Chief Executive Officer and Managing Director with effect from 28 June 2025. Andrew will remain with the Company as an employee until the end of August 2025. 5. E dward Alexander commenced as both Chief Executive Officer and Managing Director with effect from 29 June 2025. Directors’ meetings The number of meetings of directors (including meetings of Board Committees) held during the year and the number of meetings attended by each director, during their time in office, were as follows: Director meetings held Director meetings attended F&AC meetings held F&AC meetings attended P&RC meetings held P&RC meetings attended R&SC meetings held R&SC meetings attended Nom Co meetings held Nom Co meetings attended H Nash 7(c) 7 – – – – 4 4 6(c) 6 R Gordon 7 6 4 3 – – – – 6 5 M Haseltine 7 7 – – – – 4(c) 4 6 6 M Ihlein 7 7 4(c) 4 5 5 – – 6 6 T Longstaff 7 7 4 4 5(c) 5 – – 6 6 L Bardo Nicholls AO 7 7 4 4 5 5 4 4 6 6 A Reeves 7 7 – – – – – – – – F&AC = Finance and Audit Committee P&RC = People and Remuneration Committee R&SC = Risk and Sustainability Committee Nom C = Nomination Committee (c) D enotes Chair of the Board or Committee as at the end of the reporting period. M eetings held applies to the number of meetings held while a Director was on the Board or a member of the relevant Committee. M eetings attended applies to Committee members only. However, Directors regularly attend Committee meetings though not a member of the Committee. In addition to these formal meetings of the Board and its Committees, Directors attended six Board calls and an annual strategic review. Members of the Board also conducted an in‑person visits to Company operations at various sites and met with operational management during the year. Directors’ Report 33
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Directors’ Report (continued) Group Legal Counsel and Company Secretary Marta Kielich, Bachelor of Laws (Honours), Bachelor of Commerce Marta joined Inghams on 24 July 2023. Marta has more than 15 years’ listed company experience providing legal counsel, company secretarial and governance support at companies including City Chic Collective, 3P Learning, Origin Energy and the Australian Securities Exchange. She is a Fellow of the Governance Institute of Australia, a Member of the Australian Institute of Company Directors and a Member of the Law Society of NSW. Chief Financial and Commercial Officer and Company Secretary Gary Mallett, Chartered Accountant, Bachelor of Business (Accounting) Gary joined Inghams in 2019. He is responsible for the Company’s financial management and reporting, treasury, investor relations, company secretarial and legal, risk management, procurement, property management, mergers and acquisition, and integrated business planning. Gary has more than 30 years’ experience in various senior finance roles with ASX‑listed companies, including Brambles Limited and Origin Energy Limited. Before joining Inghams, he was Chief Financial Officer at Senex Energy Limited. He also serves as Secretary and Director of several Inghams Group Limited subsidiary companies. Principal activities The principal activities of the Group during the year consisted of the production and sale of chicken and turkey products across its vertically integrated free‑range, value enhanced, primary processed, further processed and by‑product categories. Additionally, stockfeed was produced primarily for internal use but also for the poultry and pig industries. Corporate Structure Inghams is a company limited by shares that is incorporated and domiciled in Australia. Details of all companies in the Group are outlined in note 23 to the Financial Statements. Significant changes in the state of affairs There were no significant changes in the nature of the Group’s activities during the year. Dividends An interim fully franked dividend of 11.0 cents per share totalling $40.9 million was paid on 4 April 2025 (FY24: 12.0 cents per share totalling $44.6 million). Subsequent to the year end, a final fully franked dividend of 8.0 cents per share has been declared totalling $29.7 million (FY24: 8.0 cents per share totalling $29.7 million) to be paid on 1 October 2025. The financial effect of this dividend has not been brought to account in these consolidated financial statements and will be recognised in the subsequent financial report. The full year fully franked dividend of 19.0 cents per share (FY24: 20.0 cents per share), represents a payout ratio of 72.7%, at the mid range of the 60‑80% payout range of Underlying Net Profit After Tax (NPAT). Significant events after the balance date Subsequent to year end, on 4 July 2025, the Ovoid Insurance Limited entity in Bermuda was wound up. Other than the dividend declaration and the matter noted above, the Directors of the Company are not aware of any other matter or circumstance not otherwise dealt with in the financial report that significantly affected or may significantly affect the operations or financial results of the Group subsequent to year end. 34 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Environmental regulation The Group is subject to particular and significant environmental regulations. Inghams seeks to be compliant with all applicable environmental laws and regulations relevant to its operations in Australia and New Zealand. We monitor operations’ environmental controls on a regular basis, to minimise the risk of non‑compliance. We engage regularly with all relevant authorities. The Group takes its environmental obligations seriously and has had an environmental policy in place for more than 30 years. The policy provides the framework for a comprehensive management strategy that is integrated with overall business strategy and ensures individual sites are managed in a consistent way to a high standard. The policy contains a commitment to protecting the environment including: • Development of an environmental management system integral to overall management; • Prevention of pollution and carbon management; • Water, energy and material conservation; • Continuous environmental improvement; and • Working towards sustainability internally and with the supply chain. It includes requirements for each site to develop and implement a site‑specific environmental management plan (EMP), aligned to ISO14001:2015 standard requirements, with the following objectives: • Compliance with applicable legal and other requirements; • Identification of environmental impacts of our activities, products and services; • Procedures for managing activities with a potential to impact the environment; • Continuous environmental improvement through setting and reviewing specific objectives and targets; and • Clear responsibilities and accountability. It also outlines the annual self‑assessment and the periodic environmental review processes. The Group is subject to legislation including but not limited to: • Planning and Environmental Protection legislation and policies relevant to each state of Australia and New Zealand. • Each site has the required environmental protection licence or resource consent. • The EMP contains a list of the applicable legislation for each site. Directors’ interests The relevant interest of each director in the shares and rights over such instruments issued by the companies within the Group, as notified by the Directors to the Australian Securities Exchange (ASX) in accordance with s205G(1) of the Corporations Act 2001, at the date of this report is as follows: Ordinary shares Performance rights Helen Nash 112,830 – Rob Gordon 45,772 – Margaret Haseltine 12,730 – Michael Ihlein 60,455 – Timothy Longstaff 29,850 – Linda Bardo Nicholls AO 70,766 – Andrew Reeves1 338,871 2,404,507 Edward Alexander2 41,174 243,331 1. A ndrew Reeves resigned as director with effect from 28 June 2025. 2. E dward Alexander was appointed as director with effect from 29 June 2025. Directors’ Report 35
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Directors’ Report (continued) Performance rights Performance rights Executive Key Management Personnel (KMP) and senior executives are invited annually to participate in a three‑year Long‑Term Incentive Plan (LTIP), awarded in share rights with these share rights being performance based and only vesting if minimum performance hurdles are met. The share rights do not attract voting rights or entitle the holder to receive dividends. In addition, Executive KMP and certain senior executives have a portion of any actual Short‑Term Incentive Plan (STIP) award deferred into share rights, that are required to be held for a period of 12 months before vesting into shares. No performance conditions exist for these share rights to vest and they are time‑based vesting on the completion of the service period. Performance rights outstanding at the end of the year have the following expiry dates and exercise prices (where relevant): 2025 2024 Grant Date Expiry Date Exercise price Number of rights Exercise price Number of rights 15 November 2024 01 July 2027 – 2,176,233 – – 15 September 2024 15 September 2025 – 429,866 – – 21 February 2024 01 July 2026 – 1,736,553 – 1,927, 8 49 15 September 2023 15 September 2024 – – – 295,525 21 June 2023 01 July 2025 – 2,023,413 – 2,144,169 17 November 2022 22 August 2025 – 367,015 – 367,015 27 September 2022 22 August 2025 – 193,830 – 193,830 05 November 2021 01 July 2024 – – – 1,220,769 Total Rights Outstanding 6,926,910 6,149,157 Included in the below table are rights outstanding to the following directors and officers of the Company and the Group as at the date of the report. Name of officer Date granted Number of rights Andrew Reeves 15 November 2024 608,390 Andrew Reeves 15 September 2024 194,685 Andrew Reeves 21 February 2024 546,265 Andrew Reeves 8 November 2023 688,152 Andrew Reeves 17 November 2022 367,015 Gary Mallett 15 November 2024 154,595 Gary Mallett 15 September 2024 31,684 Gary Mallett 21 February 2024 138,292 Gary Mallett 8 November 2023 180,907 Gary Mallett 27 September 2022 193,830 At the date of the report, since becoming the Chief Executive Officer and Managing Director (CEO/MD) of Inghams Group Limited, Edward Alexander had not been issued any performance rights in his current capacity. Edward does have performance rights that he was entitled to in his previous capacity as Chief Executive of Inghams Enterprises (NZ) Pty Ltd as represented in the Directors’ Interests table. 36 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Indemnities and insurance of officers and auditors Indemnities Inghams’ constitution indemnifies each officer of Inghams and its controlled entities against a liability incurred by that person as an officer unless that liability arises out of conduct involving a lack of good faith. The constitution also provides that Inghams may make a payment to an officer or employee (by way of advance, loan or otherwise) for legal costs incurred by them in defending legal proceedings in their capacity as an officer or employee. Inghams has entered into a Deed of Access, Indemnity and Insurance with each director which applies during their term in office and after their resignation (except where a director engages in conduct involving a lack of good faith). Inghams’ constitution provides that it may indemnify its auditor against liability incurred in its capacity as the auditor of Inghams and its controlled entities. Inghams has not provided such an indemnity. Indemnification and insurance of officers During the reporting period and since the end of the reporting period, the consolidated entity has paid premiums in respect of a contract insuring directors and officers of the consolidated entity in relation to certain liabilities. The insurance policy prohibits disclosure of the nature of the liabilities insured and the premium paid. Lead auditor’s independence declaration The lead auditor’s independence declaration required under section 307C of the Corporation Act 2001 is included on page 75 . Non‑audit services The following non‑audit services were provided by the entity’s auditor, KPMG. The Directors are satisfied that the provision of non‑audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The nature and scope of each type of non‑audit service provided means that auditor independence was not compromised. This assessment has been confirmed to the Board by the Finance and Audit Committee. KPMG received or are due to receive the following amounts for the provision of non‑audit services: 2025 $000 2024 $000 *Other assurance services 11 4 Total non‑audit services 11 4 * O ther assurance services provided for FY25 relate to agreed upon procedures for the compliance of bank covenants and STIP measures. Rounding of amounts The Company is of a kind referred to in Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Instrument to the nearest hundred thousand dollars, except where stated otherwise. Directors’ Report 37
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Directors’ Report (continued) Operating and financial review Non‑IFRS measures This Report contains both IFRS and non‑IFRS information. Inghams believes that the presentation of certain non‑IFRS measures, including 52‑week normalised results for FY24, EBITDA and EBIT provides useful information to recipients for assessing the underlying operating performance of the Company. Purpose The purpose of the Operating and Financial Review (OFR) is to provide shareholders with information regarding the Group’s performance, financial position and prospects. The OFR should be read in conjunction with the Financial Report on pages 76 to 123. Reconciliation of FY25 result A reconciliation of the FY25 result, between the As Reported results and the Underlying Pre AASB 16 result is set out in table 5 on page 42 of this Report. 2025 Financial Year 52‑week period The 2025 financial year (FY25) represents a 52‑week trading period. The financial results for the previous 2024 financial year (FY24) included a 53rd trading week, however comparisons with FY24 in this section are based on a 52‑week period (using 26/27 week calculation method for 2H24, i.e. normalised basis) for comparability. Table 1: Results for FY25 actual compared to FY24 Consolidated income statement Result FY25 (52 weeks) Actual $000 Result FY24 (52 weeks) Normalised $000 Change $000 Revenue 3,152,400 3,202,000 (49,600) Cost of sales (2,408,300) (2,373,700) (34,600) Gross profit 744,100 828,300 (84,200) Other income 100 300 (200) Distribution expense (192,600) (191,700) (900) Administration and selling expense (160,100) (174,800) 14,700 Share of net profit of joint venture 700 900 (200) EBITDA 392,200 463,000 (70,800) Depreciation and amortisation (182,900) (239,700) 56,800 EBIT 209,300 223,300 (14,000) Net interest expense (81,500) (82,300) 800 FX (loss)/gain (900) 100 (1,000) Net profit before tax 126,900 141,100 (14,200) Income tax expense (37,10 0) (41,100) 4,000 Net profit after tax 89,800 100,000 (10,200) Inghams delivered FY25 earnings before interest, tax, depreciation and amortisation (EBITDA) of $392.2 million, a decline of 15.3% versus the normalised prior corresponding period (PCP). AASB 16 Leases costs declined $60.8 million versus the PCP to $166.0 million due to the conversion of contract growers to variable performance‑based contracts over the past two years, and the acquisition of the Bolivar primary processing facility in FY24. Underlying EBITDA pre AASB 16 was $236.4 million, stable on PCP. Net profit after tax (NPAT) declined 10.2% on the PCP to $89.8 million. Core poultry volume declined 1.4% versus PCP, with Australian volume down 2.5% due mainly to the decline in both Retail volume following the transition to the new Woolworths supply agreement. The decline in Australian volume was partially offset by strong New Zealand volume growth of 5.3% versus the prior corresponding period, driven largely by strong growth in the Retail channel. 38 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) The acquisition of Bostock Brothers Limited (BBL) in New Zealand contributed approximately 40 basis points to Group volume growth. Total Poultry volume growth was 0.4%, due to strong growth in by‑products volume following the transition of some third‑party Wholesale sales to in‑house processing, which was supported by our investments in automation and efficiency initiatives and the temporary closure of Export markets during the period. Revenue declined 1.5% on the PCP to $3.15 billion, driven by the modest decline in core poultry volume which was partially offset by growth in core poultry Net Selling Price (NSP; $/kg) of 0.5% on the PCP, and a decline in external feed revenue due to a reduction in external feed volumes and lower feed prices as a result of lower key feed input pricing during the period. Total costs increased 0.8% versus the PCP. A higher operating cost impact (+$60.8 million), due to the conversion of 121 contract growers to variable performance‑based contracts over the past two years and the acquisition of the Bolivar primary processing facility in FY24 (previously treated as AASB 16 Leases ), was largely offset by lower AASB 16 depreciation and interest charges. Internal feed costs declined $57.2 million, reflecting the improvement in market pricing of key feed inputs over the past 12 months. Other costs (excluding AASB 16 items) increased by $7.2 million, reflecting BBL costs of $19.8 million following completion of the acquisition in July 2024, and the impact of general inflation more than offset by cost management initiatives and operational efficiencies, including a reduction in SG&A of $26.2 million. Segment results Australia Table 2a: Selected financial information for the Australia segment Consolidated income statement Actual FY25 $000 Normalised FY24 $000 Change $000 Poultry Revenue 2,512,000 2,567,70 0 (55,700) External Feed Revenue 128,100 141,600 (13,500) Revenue 2,640,100 2,709,300 (69,200) EBITDA Segment 328,200 371,500 (43,300) EBITDA AASB 16 (148,100) (179,200) 31,100 EBITDA Significant items 3,600 (2,100) 5,700 EBITDA Pre AASB 16 183,700 190,200 (6,500) In Australia, core poultry volume declined 2.5%, reflecting lower volume outcomes across the Retail, Quick Service Restaurant (QSR), Wholesale and Export channels. The decline in Retail volume was due to both the transition to the new Woolworths supply agreement and slightly softer trading conditions, while the performance in the QSR channel reflects ongoing cost‑of‑living pressures. The Export channel was impacted during the period due to the temporary closure of markets following earlier Avian Influenza outbreaks at non‑Inghams farms. Australian revenue declined 2.6% on the PCP, with the decline in core poultry volume partially offset by an increase in core poultry NSP of 0.5%. Within core poultry NSP, Wholesale NSP recorded a significant decline of 10.0% on the PCP. External feed revenue declined 9.5% on the PCP due to a decline in pricing reflecting the reduction in key feed input costs. Total costs (excluding AASB 16 and items excluded from Underlying) declined 2.4%, attributable to a combination of lower core poultry volume produced, a reduction in internal feed cost of $49.8 million, and effective cost management resulting in a decline in SG&A costs, partially offset by modest growth in salaries and wages and utilities costs. Operating and financial review (continued) 2025 Financial Year 52‑week period (continued) Directors’ Report 39
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Directors’ Report (continued) New Zealand Table 2b: Selected financial information for the New Zealand segment Consolidated income statement Actual FY25 $000 Normalised FY24 $000 Change $000 Poultry Revenue 458,500 431,500 27 ,000 External Feed Revenue 53,800 61,200 ( 7,4 0 0) Revenue 512,300 492,700 19,600 EBITDA Segment 64,000 91,500 (27,500) EBITDA AASB 16 (17,90 0) (47,60 0) 29,700 EBITDA Significant items 6,600 2,200 4,400 EBITDA Pre AASB 16 52,700 46,100 6,600 New Zealand core poultry volume grew by 5.3% versus the PCP, with strong growth in Retail channel volume of 11.1% in part reflecting the acquisition of BBL which contributed 3.0 percentage points to total New Zealand core poultry volume growth. New Zealand revenue increased 4.0% on the PCP, driven by core poultry volume growth and an increase of 2.9% in core poultry net selling prices (NZD). Total costs (excluding AASB 16 and items excluded from Underlying) increased 2.7% versus the PCP. The acquisition of BBL, combined with incremental promotion and branding expenditure, distribution, labour, repairs and maintenance, and packaging contributed to growth in operating costs during the period. Internal feed costs declined $7.4 million in the period due to lower international feed pricing offset by volume growth. Total costs (excluding AASB 16 and items excluded from Underlying) increased 2.7% on the PCP. Internal feed costs declined by $7.4 million during the period. Other costs (excluding feed costs) increased $19.0 million, with the inclusion of a full year of operating costs from BBL (+$19.8 million), and expenditure on promotion and branding, and increases in labour, packaging and freight costs. These increases were partially offset by reductions in ingredients, utilities and insurance costs. Balance Sheet Table 3: Selected consolidated statement of financial position for the year ended 28 June 2025 Consolidated statement of financial position FY25 $000 FY24 $000 Change $000 Current assets 819,200 747,50 0 71,700 Non‑current assets 1,545,100 1,652,500 (107,4 0 0) Total assets 2,364,300 2,400,000 (35,700) Current liabilities 682,500 693,300 (10,800) Non‑current liabilities 1,404,800 1,4 87,10 0 (82,300) Total liabilities 2,087,300 2,180,400 (93,100) Net assets 277,000 219,600 57,400 Net Assets Current assets increased $71.7 million, with growth in Trade and Other Receivables of $53.5 million (note 8) as a result of a small increase in Days Sales Outstanding. Inventories increased by $14.4 million on the PCP. Processed poultry inventory increased $22.2 million, with an increase in Turkey inventory due to lower than expected sales volumes, and Chicken inventory increased due predominantly to growth in primary production stock as a result of slower trading conditions in the final quarter of FY25. Non‑current asset values decreased $107.4 million due to the reduction in Right‑of‑use assets (note 13) of $222.7 million which relates to the conversion of grower contracts from fixed to performance‑based variable contracts over the past two years. Operating and financial review (continued) Segment results (continued) 40 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Total capital expenditure and acquisitions during the period was $135.4 million and includes the completion of the acquisition of BBL in New Zealand for $31.3 million ($30.5 million in Property, Plant and Equipment) on 1 July 2024 (Note 29), Sustaining investment ($61.6 million; 99.5% of depreciation pre AASB 16), and Core and High growth projects of $42.5 million including the Amarina Breeder Triangle (NSW) ($3.8 million), various automation projects ($26.1 million), Ingleburn Value‑Enhanced decoupling ($5.0 million) and the Lisarow fully cooked line upgrade ($7.6 million). As a result, Property, Plant and Equipment increased by $132.6 million. Current Liabilities decreased $10.8 million, with an increase in trade payables of $53.8 million more than offset by a reduction in current tax liabilities ($13.6 million) and a reduction in lease liabilities of $52.8 million due to the conversion of contract growers to variable performance‑based contracts during the previous two years. There was a small increase in working capital (+$15.5 million) due to higher processed poultry inventory. Non‑current liabilities decreased $82.3 million, with a reduction in lease liabilities of $171.4 million due to the conversion of contract growers to variable performance‑based contracts partially offset by an increase in borrowings of $78.2 million due to the additional debt capacity obtained as part of the refinancing of the existing syndicated finance agreement in November 2024 (Note 15). Table 4: Consolidated net debt Net debt FY25 $000 FY24 $000 Bank loans (540,000) (460,000) Capitalised loan establishment fees included in borrowings 3,200 1,400 Total borrowings (536,800) (458,600) Less: Cash and cash equivalents 106,400 110,700 Net debt (430,400) (347,900) Net debt Net debt increased $82.5 million to $430.4 million, due to the previously outlined capital investment, business and property acquisition activities completed during the period. Interest paid increased $15.8 million due mainly to the higher average debt balance during the period. Leverage increased to 1.8 times versus 1.5 times in the PCP and remains within our target range of 1.0 to 2.0 times Underlying EBITDA pre AASB 16. In November 2024, the Company concluded the refinancing of its syndicated finance agreement, which continues to be classified as a Sustainability Linked Loan Facility. An increase in the total size of the combined facilities of $200 million, together with an increase in the weighted maturity by approximately 2.4 years at the time of refinancing, provides Inghams with the funding flexibility to progress its various operational and automation investment programs and to take advantage of other opportunities that may arise. Cash flow from operating activities was $319.3 million for FY25, a decrease of $99.2 million versus the prior corresponding period, impacted by the reduction in EBITDA due mainly to the conversion of contract growers to performance‑based variable contracts. This also led the cash conversion to decline 80 basis points to 96.9%. AASB 16 Interest and Principal amounts declined by a combined 33.7% on the PCP due to the conversion of contract growers to performance‑based variable contracts over the past two years, and the acquisition of the previously leased Bolivar Primary Processing plant in FY24. Tax paid increased $15.5 million due to higher New Zealand earnings, and adjustments relating to FY24 Australian tax amounts. Operating and financial review (continued) Balance Sheet (continued) Directors’ Report 41
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Directors’ Report (continued) Reconciliation of results as reported to Underlying (Pre AASB 16) Table 5: Results for FY25 Consolidated income statement Actual $000 Excluded from Underlying $000 Underlying Actual $000 AASB 16 Impact $000 Underlying (Pre AASB 16) $000 Revenue 3,152,400 – 3,152,400 – 3,152,400 Cost of sales (2,408,300) – (2,408,300) (144,900) (2,553,200) Gross profit 744,100 – 744,100 (144,900) 599,200 Other income 100 – 100 – 100 Distribution expense (192,600) – (192,600) (17,70 0) (210,300) Administration and selling expense (160,100) 10,200 (149,900) (3,400) (153,300) Share of net profit of joint venture 700 – 700 – 700 EBITDA 392,200 10,200 402,400 (166,000) 236,400 Depreciation and amortisation (182,900) – (182,900) 121,000 (61,900) EBIT 209,300 10,200 219,500 (45,000) 174,500 Net interest expense (81,500) – (81,500) 42,000 (39,500) FX loss (900) – (900) – (900) Net profit before tax 126,900 10,200 137,100 (3,000) 134,100 Income tax expense (37,10 0) (2,800) (39,900) 1,000 (38,900) Net profit after tax 89,800 7,400 97,200 (2,000) 95,200 Table 6: Normalised Results for FY24 (52‑weeks) Consolidated income statement Normalised $000 Excluded from Underlying $000 Underlying Actual $000 AASB 16 Impact $000 Underlying (Pre AASB 16) $000 Revenue 3,202,000 – 3,202,000 – 3,202,000 Cost of sales (2,373,700) – (2,373,700) (204,500) (2,578,200) Gross profit 828,300 – 828,300 (204,500) 623,800 Other income 300 – 300 – 300 Distribution expense (191,700) – (191,700) (17, 30 0) (209,000) Administration and selling expense (174,800) 100 (174,700) (5,000) (179,700) Share of net profit of joint venture 900 – 900 – 900 EBITDA 463,000 100 463,100 (226,800) 236,300 Depreciation and amortisation (239,700) – (239,700) 183,400 (56,300) EBIT 223,300 100 223,400 (43,400) 180,000 Net interest expense (82,300) – (82,300) 54,200 (28,100) FX gain 100 – 100 – 100 Net profit before tax 141,100 100 141,200 10,800 152,000 Income tax expense (41,100) – (41,100) (3,200) (44,300) Net profit after tax 100,000 100 100,100 7,600 107,700 The reduction in FY25 AASB 16 EBITDA of $60.8 million versus FY24 is due both to the disposal of the Bolivar lease following the acquisition of the property, and the conversion of contract growers from fixed to performance‑based variable contracts. Operating and financial review (continued) 42 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Net interest on an Underlying pre AASB 16 basis increased $11.4 million due to higher net debt arising from various property, business and equipment investments, while AASB 16 net interest declined due to the previously outlined purchase of the Bolivar primary processing facility and the conversion of contract growers to performance‑based variable leases. The decline in the AASB 16 impact on NPAT versus the PCP is predominantly due to contract growers transitioning to performance‑based variable contracts and the associated amounts no longer recognised in Right‑of‑use Asset and Lease Liability. Reconciliations – as reported to Underlying The items outlined below have been tax effected to determine an Underlying Net Profit After Tax (NPAT) to allow shareholders to make a meaningful comparison of the Group’s Underlying NPAT performance against prior year. Comparisons with FY24 in this section are based on a 52‑week period (using 26/27 week calculation method for 2H24, i.e. normalised basis). Table 7: Reconciliation of EBITDA to Underlying EBITDA Consolidated EBITDA ($000) Note FY25 Actual FY24 Normalised Revenue 3,152,400 3,202,000 EBITDA 392,200 463,000 Business acquisition and integration costs* 1,100 1,800 Legal settlement* 2,800 – Restructuring* 6,300 (1,700) Underlying EBITDA 402,400 463,100 AASB 16 impact on EBITDA (166,000) (226,800) Underlying EBITDA pre AASB 16 236,400 236,300 * I n FY25, AU relates to redundancy costs and NZ relates to legal settlement costs and Bostock Acquisition costs. In FY24, AU relates to the net lease liability release and fair value gain from the Bolivar acquisition and NZ relates to Bromley Park and Bostock Acquisition related costs. Table 8: Segment split of items excluded from Underlying EBITDA EBITDA impact ($000) Note FY25 Actual FY24 Normalised Australia 3,600 (2,100) New Zealand 6,600 2,200 EBITDA impact 10,200 100 Material business risks Inghams is exposed to a range of strategic and operational risks associated with operating a vertically integrated poultry company. Robust governance and risk management processes are in place to support the effective management of these risks. Inghams has an enterprise risk management framework which, together with governing the most material risks, provides a sound basis for managing enterprise‑wide risks. Risk appetite statements are regularly updated and approved by the Board, and are challenged and monitored during the year. In addition, strategic and emerging risk reports and material operational risk ‘deep dive’ reports are regularly tabled to Inghams’ Risk and Sustainability Committee. Operating and financial review (continued) Reconciliation of results as reported to Underlying (Pre AASB 16) (continued) Directors’ Report 43
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Directors’ Report (continued) Material business risks faced by the Group that may have a significant effect on the financial prospects of the Group include: Strategic Risks Risk Implication Mitigating Actions Changes in poultry demand and supply impacting poultry pricing due to regulation or social change Any material increase in the supply of chicken in the Australian and New Zealand markets that exceeds the increase in demand could lead to an oversupply of chicken, which may result in reduced prices, negatively affecting Inghams’ financial performance. • We participate in a competitive market involving a number of suppliers of chicken products in Australia and New Zealand. • We carefully plan and manage our poultry flock numbers, and network capacity to match expected demand over the short‑term and long‑term. • We maintain access to domestic wholesale and export markets to help manage supply excesses. • We monitor local and global consumption macro‑economic trends. • We actively monitor market supply indicators, regulatory developments, and consumer preference trends to anticipate and respond to market changes. Import restrictions Changes to import or quarantine conditions in Australia and/or New Zealand that would allow additional forms of poultry to be imported could result in changes to the poultry market that would adversely impact Inghams’ financial performance. New Zealand currently relies on imported feed. If imports were restricted, this would raise grain commodities/feed costs in New Zealand and potentially make farming unviable. • We contribute or respond to research on the topic of poultry food safety and disease. • Close monitoring of trade policy and advocacy via industry bodies. • For New Zealand feed dependencies, we maintain diversified supplier relationships and monitor alternative feed sourcing options. Customer concentration, volumes or mix A change in the volume or mix of Inghams’ business could negatively impact its operational or commercial performance. A change in the volume or mix of Inghams’ business, including loss of key customers or reduction in contracted volumes, could negatively impact operational or commercial performance. Loss of major customers or significant volume reductions could result in underutilised production capacity, reduced profitability, stranded assets, and the need to restructure operations to match reduced demand levels. • We have embedded a commercial strategy that is focused on strengthening core customer relationships, and sustainably building new business in order to strengthen and diversify revenue streams, and improve product mix over time. • We extend supply agreements to key customers where appropriate to provide mutual certainty and enable effective long‑term network planning. Operating and financial review (continued) Material business risks (continued) 44 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Risk Implication Mitigating Actions Assets stranded geographically or due to new business models/technology Inghams may be locked into long‑dated leases that do not align with future operating requirements and/or the economic life of the assets. • Inghams’ base network plan has been developed in light of long‑term forecast demand (at least 5 years), to make the best use of existing assets, and to provide substantial lead time to plan and manage our network footprint. • We monitor emerging food technologies and changing consumer preferences to anticipate potential market disruptions and adapt our business model accordingly. Operational Risks Risk Implication Mitigating Actions Food safety and quality Poor product quality or unsafe products and processes may potentially result in injury, harm or illness to consumers, claims, regulatory impacts and significant reputational damage. If products of Inghams or a competitor became unsafe or were perceived as being unsafe, reduced demand for poultry products could follow. • We have a food safety and quality governance framework and dedicated quality and food safety staff across the business to meet both mandatory and internal food safety requirements. • Inghams is certified to British Retail Consortium (BRC) Food Safety Issue 9 for the processing sites and BRC Storage and Distribution Issue 4 for the Distribution Centres with an overall rating of AA across all Australia and New Zealand sites. This is a Global Food Safety Initiative (GFSI) world class standard. • Inghams is also certified to Customer Owned Standards for both Retail outlets and Quick Service Restaurants. • Procedures are in place as to how we effectively manage, handle, store, recall and withdraw products. • Our competitive landscape is monitored in Australia and New Zealand for immediate impacts to our poultry demand and the global context continues to be monitored. • Our Product Pride program involves quality assurance, internal and external audits, training and awareness across the whole supply chain. Operating and financial review (continued) Material business risks (continued) Directors’ Report 45
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Directors’ Report (continued) Risk Implication Mitigating Actions Animal disease and biosecurity Outbreak of an avian disease in Inghams flocks or within the same geographic regions may affect the use and transportation of the affected stock and disrupt supply/access to export markets causing financial loss. • Comprehensive biosecurity measures and veterinary oversight programs are in place to prevent infections across all farming operations. • We maintain detailed disease response procedures and contingency plans that are regularly tested and updated based on industry experience. Animal welfare and bird supply failure Poor animal welfare practices or industry activism could result in significant reputational damage for Inghams and the poultry industry more broadly. As a vertically integrated company, our farming supply chain can be impacted by availability of great grandparent stock and breeder or broiler performance issues. • Our commitment to high animal welfare standards is underpinned by comprehensive programs developed in collaboration with international animal welfare experts, customers and regulatory authorities. • We hold accreditations with the Royal Society for the Prevention of Cruelty to Animals. In Australia this is the Approved Farming Scheme (RSPCA Approved), and the Animal Welfare Certified Scheme (SPCA Certified) for all of our New Zealand farms. • We maintain close relationships with breeding stock suppliers and monitor availability and performance trends to ensure supply chain resilience. • Comprehensive farm management protocols and regular oversight ensure all operations meet our animal welfare standards and performance requirements. • We maintain breeding stock buffers and contingency plans to respond to supply chain or performance issues. Climate change and feed Input costs If feed ingredients supply is reduced following a prolonged period of drought, higher feed prices may arise from lower production levels resulting in higher input costs for Inghams. Feed prices can also be impacted by events outside of drought, such as floods and fires as well as international supply shortages, creating challenges to the business to pass through rising costs. Climate change presents both physical risks (extreme weather, changing growing conditions) and transition risks (carbon pricing, regulatory changes) that could affect our operations and supply costs. • Inghams’ national production footprint mitigates the risk of concentrated production in one region. In addition, the diversity of grain suppliers across the regions provides access to multiple grain supply chains, further mitigating the risk of grain shortages. • Input costs, including grain prices and pricing of other commodities, are managed through customer pricing negotiations as well as forward contracts. • Our 2030 Sustainability Roadmap sets specific environmental targets and climate adaptation strategies, supported by robust governance frameworks and regular progress monitoring. Operating and financial review (continued) Material business risks (continued) 46 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Risk Implication Mitigating Actions Plant failure and infrastructure A range of events, including natural disaster, fire, explosion and other force majeure related events, may result in the failure of one of our plants. Critical infrastructure reaching end‑o f ‑l ife may require significant capital investment or create operational vulnerabilities if replacement is delayed. Our operations include farms, feed mills, hatcheries, distribution centres, primary processing, further processing and rendering plants. • We maintain comprehensive preventive maintenance programs including regular inspection of pressure vessels, boilers, gas supply systems, and fire detection equipment across all sites. • Inghams would address any loss of plant using its business continuity plans, disaster recovery and network planning. This would mean that spare or contingent capacity is identified at a group level to accommodate a loss of the largest site. There may be instances where our spare or contingent capacity is insufficient to cover the loss of plant. • Inghams continues to focus on contingency planning for all of its farms, production and distribution sites. This includes site and network business level continuity plans. • Site security and access controls protect critical infrastructure from unauthorised access, while emergency response procedures address various operational disruption scenarios. • Critical infrastructure replacement programs and capital planning address end-of-life assets to maintain operational continuity. Information asset failure and cyber As a vertically integrated business, Inghams relies on complex technology systems across our operations including business systems, data management, cybersecurity, and supply chain technologies. Our technology infrastructure faces risks from system failures, cyber attacks, data governance challenges, supply chain vulnerabilities, and the emergence of new technologies including artificial intelligence. Technology failures, cyber incidents, or inadequate governance could result in operational disruption, data breaches, financial losses and reputational damage. • We continue to invest in our cyber security capability and controls, including comprehensive business continuity plans. Processes are in place to continuously improve continuity plans and embed lessons learned as the threat landscape evolves. • We continue to enhance our IT and IT security controls within an overarching IT risk management framework. We regularly test our disaster recovery plans. • Technology supply chain risks are managed through vendor assessments, contract management and diversification of critical suppliers where possible. • We maintain and continue to improve data governance frameworks to ensure appropriate collection, storage and protection of data across our operations. • Inghams continues to invest in infrastructure upgrades and technology that support future ways of working, including artificial intelligence and automation capabilities. Operating and financial review (continued) Material business risks (continued) Directors’ Report 47
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Directors’ Report (continued) Risk Implication Mitigating Actions Legal, regulatory and governance Our operations are subject to a range of legal and regulatory matters including work health and safety, food safety, consumer protection, competition and the environment. Regulatory landscapes continue to evolve, requiring ongoing attention to compliance and risk management. • We have a range of policies, procedures and plans to help us manage our legal and regulatory compliance. • Our Code of Conduct sets out the guiding principles for ‘doing the right thing’ and living up to our Purpose and Principles. • We evaluate and respond to legal proceedings and claims, with our response correlated to the potential risk exposure. • We monitor and engage with government and regulatory bodies on policy, regulatory compliance and impacts to the regulatory environment. • We maintain dedicated compliance resources and regular training programs. Business interruption, e.g. natural disaster, industrial action, labour resourcing and pandemic Interruption to our operations can be caused by a range of issues including, but not limited to, natural disaster, supply chain disruptions, industrial action, regulatory incidents, and pandemic/epidemic. Business interruptions could impact our operations, our partners and our employees and may cause business and reputational damage as well as significant financial impacts. • We monitor and respond to threats in the continuity of our operations. • We undertake a range of business continuity exercises to test the ability of our business to respond effectively. • We regularly review sourcing strategies to minimise supply chain disruptions and reduce single‑point‑of‑failure risks. • We have embedded robust short and long‑term planning processes to monitor, scenario plan and manage our business. • We manage the effects of potential labour absenteeism or the challenges in retaining or sourcing staff for our business through workforce planning. Operating and financial review (continued) Material business risks (continued) 48 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Strategy and future prospects Our ambition is to be Australia and New Zealand’s ‘first choice for Poultry’. Our purpose and why we exist is to produce ‘Deliciously good food, in the best way’. This purpose underpins our strategic objectives, and our commitment to making a positive difference. Our strategy is focussed on growing returns over time, and we have continued to progress our framework in FY25 for achieving this across all critical aspects of our business: Our marketplace • Products: We made further progress on creating a brand and product portfolio that meets the changing needs of consumers, and creates more value for our shareholders, customers, and employees. More valuable products segments like Free Range and Value‑Enhanced continue to be a strong focus, and contribute disproportionately to portfolio growth. Our acquisition and continued growth of the “Bostock Brothers” organic poultry business in New Zealand is an example of how we are positioning to meet the evolving demands of consumers, and add value to our portfolio over time. • Customers: In FY25 we put substantial focus on diversifying our customer base, and grew and strengthened relationships with a broad range of customers across all key channels. We continue to elevate our customer relationships to be less transactional and more strategic, through a balanced focus on delivering “brilliant basics” every day, while partnering to elevate the category over the medium and long‑term. We use best in class category management, deep consumer and shopper insights, data and analytics to ensure ongoing poultry category growth with and for our customers. Our workplace • Sustainability: We continue to develop industry leadership in sustainable processes and practices, with clear progress outlined in our ESG report. • People: We have continued our journey to create a constructive culture; inspiring people to develop themselves and give their best everyday. • Efficiency: We made significant progress in continuous improvement across all parts of our business, delivering savings while embedding the right behaviours. • Capability: Investing behind critical manufacturing capabilities continued to support areas of growth for the business, efficiency improvement, and meet evolving marketplace needs. Our strategy will continue through the ongoing development of systems, processes and people. This includes systems that embed continuous improvement capability, integrated business planning, and that evolve and integrate key technology systems and processes. Operating and financial review (continued) Directors’ Report 49
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Fellow Shareholders On behalf of the Board of Directors, I am pleased to present our Remuneration Report for the 2025 financial year (FY25). The Report summarises Inghams Group Limited’s (Inghams) remuneration strategy and outcomes for Executive Key Management Personnel (Executive KMP) and Non‑Executive Directors. The Board continues to govern Inghams’ remuneration strategy and structure to support our purpose, ambition, values and behaviours. Incentives are designed to create value for our shareholders, customers and the community over the short, medium, and long‑term. This structure includes an equity component that fosters a business‑ownership approach for our senior leaders. It is underpinned by good governance, consultation with key stakeholders and alignment with the Company’s business strategy. Our year FY25 represented a year of substantial operational transformation for Inghams Group. Inghams’ key statutory financial results in FY25 (versus a 2024 pro‑forma assuming a 52‑week year) were: • Decline in Revenue of 1.6% to $3.15 billion; • Decline in Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA) of 15.3% to $392.2 million; • Decline in Earnings Per Share (EPS) of 11.5% to 24.2 cents; • Leverage of 1.8x, within our target range of 1x to 2x EBITDA pre AASB 16, an increase of 0.3x; and • Dividends paid or declared of 19.0 cents per share fully franked (FY24 20.0 cents per share fully franked). FY25 saw the Company navigate the complexities of the transition to the new Woolworths’ supply agreement (Agreement), replacing a significant proportion of the volume reduction under the new Agreement, whilst contending with challenging Australian market conditions particularly during the fourth quarter. The financial results reflect this period of transition. Revenue declined 1.5% to $3.15 billion, while statutory EBITDA decreased 15.3% to $392.2 million, which was largely attributable to accounting adjustments related to the conversion of contract growers to variable performance‑based arrangements and the Bolivar facility acquisition, rather than underlying operational performance. Underlying EBITDA pre AASB 16 (the basis for incentive calculations) remained relatively stable at $236.4 million. The increase in our leverage ratio in FY25 was due to the capital expenditure and acquisitions we undertook during the period, which included the settlement of the acquisition of Bostock Brothers Limited in New Zealand, and significant progress on our various automation investment initiatives. FY25 dividends of 19.0 cents per share fully franked reflects the lower financial performance during the year, and represents a payout ratio of 72.7% of Underlying Net Profit after Tax. I would like to thank our people in particular, and our leadership team for maintaining performance and leading with care. We continue to keep our people safe while being agile in operations to deliver quality products to our customers. FY25 remuneration outcomes – total fixed remuneration (TFR), short‑term incentive plan (STIP) and long‑term incentive plan (LTIP) In FY25, The Board determined there would be no increase to TFR for the CEO/MD, effective 1 September 2024. For the CFO, effective 1 July 2024, an adjustment for minimum superannuation guarantee contributions was made (an increase of 0.37%). For further information on TFR see page 60 . The FY25 STIP Balanced Scorecard outcome was 69.5% out of a maximum possible 120%. As a result, the individual final STIP outcome for Executive KMP for the CEO/MD was 46.3% of the maximum outcome (69.5% of target), before application of Board downwards discretion, and for the CFO was 41.7% of the maximum outcome (62.6% of target) after application of the individual multiplier, with the balance for each participant forfeited, in line with our remuneration framework and policies. For further information on the STIP outcomes see page 65. During 2025, volume reduction from a new Woolworths supply agreement came into effect and the Board was able to assess the direct and indirect impact of the reduction on Inghams’ profitability for FY25, Inghams’ outlook for FY26, and Inghams’ strategic positioning. While broad‑based mitigations were implemented during FY25 which helped to largely offset the volume reduction and create a more balanced customer portfolio, the reduction impacted margins in FY25 and will carry through into FY26. Accordingly, the Board determined that it was appropriate to apply discretion to reduce the FY25 STIP outcome for the former CEO/MD, Mr Reeves, by 35%. Before the downwards adjustment Mr Reeves’ FY25 STIP outcome would have been $868,750 (69.5% of target and 46.3% of maximum). After the adjustment Mr Reeves’ FY25 STIP outcome is $564,688 (45.2% of target and 30.1% of maximum). Mr Reeves will receive the FY25 STIP outcome as 50% paid in cash $282,344 and 50% as deferred rights $282,344 that vest 15 September 2026. Downwards adjustments were also made to several other executives’ remuneration. Chair of the People and Remuneration Committee 50 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) For the FY23‑FY25 LTIP, there was 91.05% vesting at the conclusion of this Plan. The performance of the Company on the relative Total Shareholder Return (TSR) measure was at the 72nd percentile, which resulted in 93.4% TSR‑based rights vesting for 50.0% of the LTIP scorecard, the Return on Invested Capital (ROIC) measure that is the other 50.0% of the LTIP scorecard was at 19.6%, which resulted in 88.71% ROIC‑based rights vesting. For further information on individual Executive KMP see page 68 to 70. The fee structure for the Board was not changed in FY25. For further information on Board fees see page 70 . Forward view on remuneration In FY26 Inghams plans to retain the STIP structure and measures. People Safety and Food Safety remain. We will however alter the water usage measure from water consumption to water withdrawn within the ESG STIP measures. This switch provides a better measure of our environmental impact by capturing the total water demand we place on local sources, recognises capex spent on water treatments and reclaim, and aligns to our sustainability linked loan measure. The former CEO/MD Mr Reeves stepped down from the role on 28 June 2025 and retires from Inghams on 29 August 2025. No additional or discretionary remuneration was provided as a result of stepping down as CEO/MD or retiring. On retirement Mr Reeves will receive the accrued statutory leave entitlements, STIP deferred payments already earned for the FY24 year (subject to malus and clawback until paid), and STIP for the FY25 year, with no accelerated vesting for FY25 STIP. As per the LTIP and deferred STIP rules the Board has designated Mr Reeves as a ‘good leaver’ (bona fide executive retirement), whereby rights will not automatically lapse so will be pro‑rated (based on the proportion of the performance period that has elapsed) and remain on foot and subject to the original performance conditions. Mr Reeves will not be eligible to participate in any remuneration plans in respect of the FY26 year. The current CEO/MD Mr Alexander commenced 29 June 2025. The remuneration arrangements disclosed to the ASX 4 December 2024 are TFR $950,000, STIP maximum 125% and LTIP maximum 125%. These arrangements are lower than the former CEO/MD Mr Reeves. The FY26‑FY28 LTIP for Mr Alexander expects to be put to the Inghams AGM for shareholder approval in November 2025. The Board is committed to ensuring the remuneration strategy reflects good governance and is transparent in its design to support the business strategy and drive sustainable out performance for shareholders over the short, medium and long‑term. On behalf of the Board, we invite you to read our report and recommend that shareholders vote in favour of the adoption of the Remuneration Report. We look forward to receiving your feedback at the Annual General Meeting (AGM). Yours faithfully, Timothy Longstaff Chair, People and Remuneration Committee WE CONTINUE TO KEEP OUR PEOPLE SAFE WHILE BEING AGILE IN OPERATIONS TO DELIVER QUALITY PRODUCTS TO OUR CUSTOMERS. Directors’ Report 51
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Directors’ Report (continued) Remuneration report – audited Contents 1 R emuneration report overview 5 3 2 H ow remuneration is governed 5 3 3 O verview of company performance 5 5 4 O verview of executive remuneration 5 7 5 E xecutive remuneration framework and outcomes 6 0 6 O ther Key Information 7 0 7 O verview of non‑executive director remuneration 7 0 8 S tatutory and share‑based reporting 7 1 52 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) 1 Remuneration report overview The Remuneration Report has been audited as required by section 308 (3C) of the Corporations Act 2001. This Report covers Non‑Executive Directors and Executive Key Management Personnel (Executive KMP) of Inghams who have the authority and responsibility for planning and controlling the activities of Inghams. The Executive KMP comprises the Chief Executive Officer and Managing Director (CEO/MD), and the Chief Financial Officer (CFO). The table below outlines the Non‑Executive Directors of Inghams and any movement during FY25. Name Position Term Non‑Executive Directors Helen Nash Non‑Executive Chair Full financial year Linda Bardo Nicholls AO Non‑Executive Director Full financial year Rob Gordon Non‑Executive Director Full financial year1 Margaret Haseltine Non‑Executive Director Full financial year Michael Ihlein Non‑Executive Director Full financial year Timothy Longstaff Non‑Executive Director Full financial year 1. R ob Gordon was on a Board approved leave of absence from 23 January 2024 to 31 July 2024. The table below outlines the Executive KMP of Inghams and any movement during FY25. Current Executive KMP Position Term as Executive KMP Executive Director Andrew Reeves 1 CEO/MD Full financial year Senior executives Gary Mallett CFO Full financial year 1. A ndrew Reeves retired from the role of Chief Executive Officer and Managing Director with effect from 28 June 2025 and ceased as an Executive KMP. Andrew will remain with the Company until 29 August 2025. Edward Alexander commenced as both Chief Executive Officer and Managing Director with effect from 29 June 2025 and is now Executive KMP. Details of his remuneration as Executive KMP will be included in the FY26 remuneration report. 2 How remuneration is governed Remuneration decision making The Board, People and Remuneration Committee, Executive KMP and Management work together to apply Inghams’ Remuneration Governance Framework (see below) and ensure our strategy supports sustainable shareholder value. Our Framework is designed to support our purpose, ambition, values and behaviours that underpin our strategy and long‑term approach to creating value for our shareholders, customers and the community. Inghams has several policies that govern the framework and promote responsible management and conduct. These policies include an Inclusion, Equity and Diversity Policy, Code of Conduct, Continuous Disclosure Policy and Securities Dealing Policy. Further information is available at: http://investors.Inghams.com.au . Membership of the People and Remuneration Committee during the period 30 June 2024 to 28 June 2025 included the following three independent Non‑Executive Directors and chaired by an independent Non‑Executive Director: • Timothy Longstaff I ndependent Non‑Executive Committee Chair (full financial year); • Linda Bardo Nicholls AO I ndependent Non‑Executive Committee Member (full financial year); and • Michael Ihlein I ndependent Non‑Executive Committee Member (full financial year). The Committee’s Charter allows the Committee access to specialist external advice about remuneration structure and levels and is utilised to support the remuneration decision making process. Remuneration report – audited (continued) Directors’ Report 53
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Directors’ Report (continued) Remuneration Governance Framework Independent External Consultants • Provide external independent advice, information and support relevant to remuneration decisions where required. • Provide benchmarking data on executive remuneration to the People and Remuneration Committee. • Advisors did not provide a remuneration recommendation during FY25 as defined in Section 9B of the Corporations Act 2001. CEO/MD and Chief People Officer Provide information to the PRC who will in turn recommend to the Board: 01. I ncentive targets and outcomes. 02. Remuneration Policy. 03. Short and long‑term incentive participation eligibility. 04. Individual remuneration and contractual arrangements for executives. • Non‑Executive members, all of whom are independent, including the Chair of the Committee, make recommendations to the Board on remuneration strategy, governance and policy for executives and Non‑Executive Directors. • Key responsibilities of the PRC are: 01. A pprove major changes and developments in the remuneration policies and superannuation arrangements for the Group. 02. A pprove the appointment of remuneration consultants for the purposes of the Corporations Act 2001 . 03. T ake appropriate action to ensure the Committee, Board and management have available to them sufficient information and external advice to ensure informed decision‑making regarding remuneration. 04. O versee the process of setting Group salary policies and regularly reviewing overall remuneration levels against relevant benchmarks. 05. R eview annually and recommend to the Board the remuneration arrangements for the Board Chair and the non‑executive directors of the Board, including fees, travel and other benefits. 06. R eview and recommend to the Board the Remuneration Report prepared in accordance with the Corporations Act 2001 for inclusion in the annual Directors’ Report. 07. O versee and recommend to the Board an equitable, consistent and responsible reward approach – including incentive targets for achieving remuneration outcomes – having regard to the performance of Inghams, the performance of the executives and the general remuneration environment. People and Remuneration Committee (PRC) • Develop and update Board skills matrix. • Review and recommend Board size and composition. • Plan succession for Chair and CEO/MD. • Recommend new directors or re‑election of directors. • Evaluate performance of Board and Committees. • Induct and oversee continuous professional development of directors. Nomination Committee • Responsible for the remuneration strategy and outcomes for executives and Non‑Executive Directors. • Reviews and approves recommendations from the People and Remuneration Committee. • Approves the appointment of Non‑Executive Directors. Inghams Board Remuneration report – audited (continued) 2 How remuneration is governed (continued) 54 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) 3 Overview of company performance Overview of company performance $236.4M IN FY25 UNDERLYING EBITDA PRE AASB 16 $95.2M IN FY25 UNDERLYING NPAT PRE AASB 16 TSR +59.7% FROM FY23 TO FY25 FY25 Reported FY25 Underlying1 FY24 Reported FY24 Underlying1 FY23 Reported FY23 Underlying1 FY22 Reported FY22 Underlying1 FY21 Reported FY21 Underlying1 Revenue ($’000) 3,152,400 3,152,400 3,262,000 3,262,000 3,044,000 3,044,000 2,713,100 2,713,100 2,668,800 2,668,800 EBITDA ($’000) 392,200 236,400 471,100 240,100 418,500 183,600 370,400 135,200 443,900 209,600 Profit after tax ($’000) 89,800 95,200 101,500 109,200 60,400 83,200 35,100 5 7,100 83,300 101,200 Dividends per year (cents per share) 19.0 19.0 20.0 20.0 14.5 14.5 7.0 7.0 16.5 16.5 Movement in share price (dollars per share) 2 (0.07) – 0.97 – 0.03 – (1.37) – 0.79 – 1. U nderlying pre AASB 16 excludes AASB 16 impact, the profit or loss on sale of assets and any related legal settlements, impairment, business transformation and restructuring charges. These items have been tax effected to determine an Underlying Net Profit after Tax (NPAT) to allow shareholders to make a meaningful comparison of the Group’s Underlying NPAT performance against prior year. Underlying results are not calculated in accordance with accounting standards. The FY24 figures represent the 53‑week results. 2. M ovement in share price is calculated by taking the last price of the financial year compared to the previous last day of the financial year. Non‑financial company performance People Safety: Year‑on‑year TRIFR (unaudited) Water Consumption: Year‑on‑year kL/T (unaudited) TRIFR is the combined number of accepted lost time, and all medically treated injury claims per million hours worked. Water Consumption measured in kilolitres per tonne of production (kL/T). 0 5 10 15 20 25 30 35 40 45 50 FY25FY24FY23FY22FY21FY20FY19FY18FY17FY16 TRIFR Linear (TRIFR) 49 22 17 10 8 6 5.1 4.75 4.41 4.25 0 1 2 3 4 5 6 FY25FY24FY23FY22FY21FY20FY19 kL/T Linear (kL/T) 3.35 3.36 3.19 3.03 3.01 3.00 2.91 Remuneration report – audited (continued) Directors’ Report 55
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Directors’ Report (continued) Food Safety: Product Pride (unaudited) Food Safety: BRC Rating (unaudited) Completion of the Product Pride Program. British Retail Consortium (BRC) global standards in food safety and food quality audit score average across our sites. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY25FY24FY23 Product Pride Linear (Product Pride) 90% 98% 99% 0% 20% 40% 60% 80% 100% FY25FY24FY23 BRC Rating A BRC Rating AA 30% 35% 22% 70% 65% 78% Three‑year Total Shareholder Return (TSR) Performance (unaudited) 70 80 90 100 110 120 130 140 150 160 170 180 30-Jun-25 31-May-25 30-Apr-25 31-Mar-25 28-Feb-25 31-Jan-25 31-Dec-24 30-Nov-24 31-Oct-24 30-Sep-24 31-Aug-24 31-Jul-24 30-Jun-24 31-May-24 30-Apr-24 31-Mar-24 29-Feb-24 31-Jan-24 31-Dec-23 30-Nov-23 31-Oct-23 30-Sep-23 31-Aug-23 31-Jul-23 30-Jun-23 31-May-23 30-Apr-23 31-Mar-23 28-Feb-23 31-Jan-23 31-Dec-22 30-Nov-22 31-Oct-22 30-Sep-22 31-Aug-22 31-Jul-22 30-Jun-22 Remuneration report – audited (continued) 3 Overview of company performance (continued) 56 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) 3.1 Actual Remuneration Table (non‑statutory) The remuneration earned by each Executive KMP in FY25 and FY24 is set out below. This information is relevant as it provides shareholders with a view of the remuneration ‘paid or vested’ to executives in FY25 for performance. This information has not been prepared in accordance with the accounting standards and differs from the statutory tables presented on 72 . Year Fixed remuneration1 $000 STIP paid2 $000 Total cash $000 Other short‑term benefits 3 $000 STIP vested4 $000 LTIP vested5 $000 Total actual remuneration $000 CEO/MD Andrew Reeves 2025 1,288 600 1,888 32 467 419 2,806 2024 1,242 544 1,786 40 – – 1,826 Other Executive KMP Gary Mallett 2025 702 228 930 – 79 116 1125 2024 708 214 922 – – – 922 1. F ixed remuneration entitlements include salary, superannuation, annual leave and sick leave entitlements. 2025 includes a $37,500 a one‑off lump sum in lieu of a salary increase paid to the CEO/MD that is not included in the total fixed remuneration (TFR). 2. S TIP paid during the financial year. The amount disclosed for FY24 reflects the STIP paid in FY24 for FY23 performance. The amount disclosed for FY25 reflects the STIP paid in FY25 for FY24 performance. 3. O ther short‑term benefits include a company provided motor vehicle for the CEO/MD currently valued at $31,616 per annum. 4. S TIP vested represents the total value of deferred STIP rights in FY25 vested for FY23 performance. 5. L TIP vested represents the portion of the grant date fair value of share rights vested. 2025 includes the fair value of the rights vested from the FY22‑FY24 LTIP, there was 33.29% vesting at the conclusion of this plan. The amount recognised is adjusted to reflect the expected number of instruments that will vest for non‑ market‑based performance conditions. No adjustment for non‑vesting is made for failure to achieve the relative TSR performance hurdle, as this is taken into account in the fair value at grant date. 4 Overview of executive remuneration (a) How we determine executive remuneration policies and structures The Remuneration Governance Framework is designed to attract, motivate and retain high‑performing executives as well as to align executive remuneration with our purpose, ambition, values and behaviours so as to create value over the short, medium and long‑term for our shareholders and other stakeholders. The remuneration of the Executive KMP and Executive Leadership Team (direct reports to the CEO/MD), is set on appointment to the role and reviewed annually. The People and Remuneration Committee oversees both fixed and total remuneration by considering a range of factors including experience, capabilities and performance in the role, relevant market data, talent availability and the role’s impact. The variable components of executive remuneration are closely linked to successful execution of strategic objectives, balancing delivery in both the short and long‑term and aligning pay primarily to shareholder interests. The below table highlights the key principles supporting Inghams’ remuneration framework. Principle Objective Application Competitive Remuneration Reward Executives competitively for their contributions to Inghams success, ensuring consistency with shareholder, community and consumer expectations. • Total remuneration is based on the Executive’s capabilities and experience. • Remuneration is benchmarked against appropriate peer companies and independent remuneration data. • The Board approves recommendations on total remuneration packages for the Executive Leadership Team. Remuneration report – audited (continued) 3 Overview of company performance (continued) Directors’ Report 57
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Directors’ Report (continued) Principle Objective Application Performance Driven Reward Executives for achieving business outcomes that support sustainable growth in shareholder value only when this is achieved through the expected behaviours. • Variable rewards are intended to provide a robust link between remuneration outcomes and key drivers of long‑term shareholder value. • Variable rewards are designed to motivate strong performance against short and long‑term performance objectives. Behaviour Driven Reward Executives for Inghams’ performance when the way this performance is achieved is aligned with Inghams purpose, values and expected behaviours. Only when we achieve our results through these expected behaviours will Inghams fully realise its strategic objectives. • An Individual Multiplier has been applied to the STIP award to ensure the behaviours of each Executive are driven to create strong, sustainable performance for both the Company and shareholders. Our four values and 12 behaviours also help us to make better decisions, to achieve stronger outcomes and achieve our strategy. • All incentive awards are subject to malus and claw‑back provisions to ensure that no rewards are received by Executives where the outcomes are materially misaligned with our values, code of conduct or other circumstances detailed on page 68 . (b) Our executive remuneration principles, policies and structures Remuneration principles • Contribute to Inghams’ key strategic business objectives and desired business outcomes. • Align the interest of employees with those of shareholders. • Assist in attracting and retaining employees required to execute the business strategy by providing competitive remuneration and benefits. • Manage risks in rewarding desired behaviours and balance of short and long‑term focus. • Deliver equal average pay for men and women within each job grade. • Support Inghams’ high‑performance culture driven by desired leadership behaviours. • Develop an ownership mindset. • Be simple, clear and easily understood. Inghams’ Executive remuneration consists of Total Fixed Remuneration (TFR), short‑term incentives (with a deferral to rights component (called STIP)) and long‑term incentives as performance rights (called LTIP). Non‑Executive Directors do not have a variable performance related component to their remuneration, hence none of their remuneration is at risk. Remuneration report – audited (continued) 4 Overview of executive remuneration (continued) 58 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Inghams’ FY25 remuneration strategy and framework PURPOSE DELICIOUSLY GOOD FOOD IN THE BEST WAY AMBITION TO BE ANZ’S FIRST CHOICE FOR POULTRY OBJECTIVES CONSUMER AND CUSTOMER NETWORK AND COST PROCESSES AND SYSTEMS PEOPLE AND CULTURE Our objectives are reflected in performance measures across our incentive plans With outcomes directly driving Executive remuneration EBITDA WATER CONSUMPTION PEOPLE SAFETY FOOD SAFETY RELATIVE TOTAL SHAREHOLDER RETURN (TSR) AND RETURN ON INVESTED CAPITAL (ROIC) GROWTH ACHIEVEMENTS OF GROWTH INITIATIVES AND BUSINESS PRIORITIES FIXED REMUNERATION Short‑term INCENTIVE Long‑term INCENTIVE TOTAL REMUNERATION+ + = WE SEEK FEEDBACK AND ACTIVELY LISTEN WE KEEP IT SIMPLE WE COLLABORATE TO ACHIEVE WE DO WHAT WE SAY WE LEARN AND GROW TOGETHER WE ENCOURAGE CREATIVITY AND SHARE IDEAS WE DO THE RIGHT THING WE EVALUATE OPTIONS AND DECIDE WE DELIVER GREAT EXPERIENCES FOR CUSTOMERS AND CONSUMERS WE CELEBRATE SUCCESS WE TRUST AND SUPPORT EACH OTHER WE LOOK OUT FOR EACH OTHER CARE COURAGE CURIOSITY COMMITMENT BEHAVIOURS VALUES Remuneration report – audited (continued) 4 Overview of executive remuneration (continued) Directors’ Report 59
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Directors’ Report (continued) FY25 Short‑Term Incentive Plan INDIVIDUAL MULTIPLIER FINANCIAL MEASURES (70%) STIP POOL MODIFIER TOTAL STIP (CASH + DEFERRED RIGHTS) + SAFETY AND animal welfare modifier ESG NON‑ FINANCIAL MEASURES (30%) > > > > BALANCED SCORECARD FY25 – FY27 Long‑Term Incentive Plan FY25‑FY27 LTIP PERFORMANCE RIGHTS GRANT TOTAL LTIP (Inghams ORDINARY SHARES) ROIC (50%) RELATIVE TSR (50%)> + > Both STIP and LTIP remain subject to Board discretion. Fixed to variable remuneration mix The graphs below set out the remuneration mix for the CEO/MD and the other Executive KMPs at Inghams in FY25, illustrating the fixed and variable proportions of remuneration at target and maximum levels. Executive KMP Remuneration Mix at Target Executive KMP Remuneration Mix at Maximum TFR 36.4% STIP 36.4% LTIP 27.2% 50% Cash 50% Deferred rights Performance rights CEO/ MD TFR 54.1% STIP 27.0% LTIP 18.9% 70% Cash 30% Deferred rights Performance rights CFO TFR 25.0% STIP 37.5% LTIP 37.5% 50% Cash 50% Deferred rights Performance rights CEO/ MD TFR 40.8% STIP 30.6% LTIP 28.6% 70% Cash 30% Deferred rights Performance rights CFO 5 Executive remuneration framework and outcomes Total Fixed remuneration (TFR) TFR is comprised of base salary, salary sacrificed items and employer superannuation contributions, in line with statutory obligations. TFR is reviewed annually taking into consideration: performance and experience in role; organisational level; role and responsibilities; impact on the business; commercial outputs; market benchmarking; recognition of desired behaviours; and risk management. In FY25, there was a benchmarking process undertaken to assess Executive KMP remuneration. The Board determined there would be no increase to TFR for the CEO/MD, effective 1 September 2024. The CEO/MD received a one‑off lump of $37,500 in lieu of a salary increase which is not included in TFR. For the CFO, effective 1 July 2024, an adjustment for minimum superannuation guarantee contributions was made (an increase of 0.37%). Incumbent Position FY25 TFR FY24 TFR % Change from FY24 to FY25 Andrew Reeves CEO/MD $1,250,000 $1,250,000 0.00% Gary Mallett CFO $680,640 $678,106 0.37% Remuneration report – audited (continued) 4 Overview of executive remuneration (continued) 60 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Short‑Term Incentive Plan (STIP) The STIP provides the Executive KMP and other senior members of the management team a cash or cash/equity incentive where specific outcomes have been achieved in the financial year. STIP payments are calculated as a percentage of total TFR and are conditional on achieving performance objectives against a key financial measure (Underlying pre AASB 16 EBITDA), three non‑financial ESG measures (Water Consumption, People Safety and Food Safety), and the individuals’ overall contribution to the achievement of group strategic objectives. Key features of the FY25 STIP Term Description Objective To reward participants for achieving strategic business objectives in a manner consistent with our purpose, ambition, values and behaviours. Participants Executive KMP and invited senior management. Performance Period Financial year ended 28 June 2025 Opportunity Executive KMP On Target Maximum CEO/MD 100% of TFR 150% of TFR CFO 50% of TFR 75% of TFR Safety and Animal Welfare Modifiers In the event of a significant people or food safety or animal health and welfare incident, (e.g. death, major injury, major loss of plant, consumer recall, etc.) the STIP payout on the non‑financial metrics may be reduced to nil for all participants (30% of total balanced scorecard payout reduced to nil). Board retains discretion to make further adjustments to STIP payout including based on individual accountability. To ensure any payout remains fully funded, the STIP pool modifier allows STIP payouts to be adjusted to remain within the available pool. Financial Measures (70% of balanced scorecard) Inghams financial performance is measured by the Group’s Underlying EBITDA pre AASB 16. Our Underlying pre AASB 16 EBITDA (70% weighting) performance is measured at four levels. Achievement between Threshold and Target is measured using straight line pro rata and likewise between Target and Maximum measured using straight line pro rata. Full Year Target % of Target STIP Below Threshold <$232.8M 0% Threshold <$232.8M 30% Target $245.0M 100% Maximum $275.6M 120% In the context of a Woolworths contract reduction, the Board deliberately structured the financial target on an asymmetric basis, with a 5.0% reduction between target and threshold, but a 12.5% increase between target and stretch. The practical effect was to balance a realistic target, with a stretch that reflected more the expected position had the Woolworths customer contact volumes not been reduced. Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) Directors’ Report 61
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Directors’ Report (continued) Term Description ESG Non‑Financial Measures (30% of balanced scorecard) The Board reviews the performance objectives against non‑financial measures as these are key contributors to short, medium and long‑term sustainable value creation for the Company, shareholders and other stakeholders. The non‑financial measures ensure the business prioritises community and consumer expectations for ensuring the environmental impact and safety of our employees and our products and to maintain our reputation as a high‑quality food producer. Water Consumption The environmental impact of our operations has on the environment that we operate in plays an important part of how we operate. Our Water Consumption (kilolitres of water consumed per tonne of production, kL/T) year‑on‑year reduction (10% weighting) performance is measured at two levels. Achievement between Target and Maximum is measured using straight line pro rata. Full Year Target % of Target STIP Target 1.0% reduction on FY24A (2.97kL/T) 100% Maximum 3.7% reduction vs FY24A (2.89 kL/T) 120% People Safety The safety of our people across the business, be it Inghams employees or contractors, is paramount to ensure we are conducting our business in the most ethical community‑focused way. A safe and healthy workplace not only protects workers from injury and illness, it can also lower injury/illness costs, reduce absenteeism and turnover, increase productivity and quality, improve retention and raise employee morale. Our Group TRIFR (the combined number of accepted lost time, and all medically treated injury claims per million hours worked) Year‑On‑Year (YOY) Reduction (10% weighting) performance is measured at two levels. Achievement between Target and Maximum is measured using straight line pro rata. Full Year Target % of Target STIP Target 3% reduction on FY24A (TRIFR of 4.27) 100% Maximum 5% reduction on FY24A (TRIFR of 4.19) 120% Food Safety A new approach to Food Safety measurement was adopted in FY25 as a combination of the completion of the Inghams Product Pride Program and the British Retail Consortium (BRC) global standards in food safety and food quality audit score average across our sites. These measures are important as the legal, reputational and financial implications of food safety have a direct impact on the Company’s performance, and therefore we ensure all facets of the business contribute to and are invested in a successful outcome. Our Product Pride and BRC (10% weighting) performance is measured at two levels. Achievement between Target and Maximum is measured using straight line pro rata. Full Year Target % of Target STIP Target 90% Product Pride program completion and BRC audit score average A rating 100% Maximum 98% Product Pride program completion and BRC audit score average AA rating 120% Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) 62 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Term Description Individual Multiplier The Individual Multiplier is determined through the consideration of bespoke individual performance and behavioural factors. This multiplier serves to link an individual’s overall performance to the achievement of our group strategic objectives (Balanced Scorecard) by an executive achieving specific individual objectives and behaving in line with our purpose, ambition, values and behaviours. Leading the business as a senior executive at Inghams is about both an individual’s contribution to business performance and leading through the right behaviours. Our leaders’ behaviour drives our culture and the right behaviours drive enhanced business performance. Multiplier Rating: % Applied to Balance Scorecard Outcome Straight‑line vesting from threshold performance to significant outperformance 0% – 125% The Individual Multiplier enables an Executive KMP to achieve the maximum opportunity of the award, as without this, the maximum award an executive can receive is 120% of the target. The multiplier acts in a way that can both increase or decrease the total final award. Any Individual Multiplier below 100% of target will decrease the total award, while the inverse is also true. Three examples of how the multiplier works are provided below: 1. 1 00/120 scorecard outcome is multiplied by a 125/125 Individual Multiplier outcome = final outcome of 83% of maximum. 2. 1 00/120 scorecard outcome is multiplied by a 75/125 Individual Multiplier outcome = final outcome of 50% of maximum. 3. 4 0/120 scorecard outcome is multiplied by a 75/125 Individual Multiplier outcome = final outcome of 20% of maximum. In the first two circumstances, the scorecard outcome remains the same, however, the Individual Multiplier determines the final quantum of the STIP award. Any final STIP award is subject to the balanced scorecard outcome and modifiers before taking these calculations into consideration. Deferral 50% of CEO/MD and 30% of other Executive KMP STIP payouts will be deferred into Inghams equity rights (Rights) for 12 months subject to a 12‑month service condition. The deferred component supports increased share ownership and is a risk management lever to facilitate Malus policy application during the deferral period. An amount of 35% of any vested equity award will need to be held for any relevant Executive KMP until the minimum shareholding requirement is met. Minimum shareholder requirements are detailed on page 73 . STIP Payment Method CEO/MD = 50% is paid as cash and the other 50% is awarded as Rights. Other KMP = 70% is paid as cash and the other 30% is awarded as Rights. Rights are deferred for a period of 12 months from the STIP payment date, around 15 September 2025. Following the deferral period, the Rights are converted into Inghams ordinary shares. Deferred Rights are equity grants which are not subject to any further performance conditions except continuous employment. The Rights will vest on 15 September 2026 and the fair value on the deferred Rights is calculated as the market price of Inghams shares traded on the ASX on grant date of the deferred Rights. The Rights carry no voting or dividend rights. Shares once allocated carry the same voting and dividend rights as all other Inghams ordinary shares. Quantum of Rights The final number of Rights awarded to each participant is calculated by dividing the face value of the deferred portion of their STIP award by the volume weighted average price (VWAP) of Inghams shares traded on the ASX in the 10 days after 22 August 2025 (the announcement date of Inghams FY25 annual results). Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) Directors’ Report 63
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Directors’ Report (continued) Term Description Discretion At all times, the Board may exercise discretion on STIP payments. Discretion will only be applied in a manner that aligns the experience of both the Company and shareholders. Any discretion applied will be disclosed and explained in the Remuneration Report. Discretion was applied to the former CEO/MD STIP in FY25, and is discussed in the letter from the Chair of the Committee. Change of Control Under the Plan rules and the terms of the STIP awards, the Board may determine in its absolute discretion that some or all of the Executive KMP Deferred Rights will vest on a likely change of control. In the event of an actual change in the control of the Company then, unless the Board determines otherwise, all unvested Deferred Rights will immediately vest or cease to be subject to restrictions (as applicable). Cessation of employment The following are circumstances where the Rights will lapse or be forfeited, unless the Board determines otherwise: • where an employee resigns or is dismissed for cause before the completion of the deferral period, or • where a notice of resignation is given before the completion of the deferral period, even where employment will end after the completion of the deferral period, or • if while during employment it is found that an employee has engaged in any misconduct, or serious breach of policy, or conduct that brings Inghams into disrepute, including where such conduct is discovered post the ending of employment and prior to the date the shares are awarded, or • any other circumstance which in the Board’s judgement warrants the Rights to be lapsed or forfeited. Where an Executive KMP’s exit is related to any other reason (e.g. retrenchment, bona fide executive retirement, or illness/death), the Executive usually remains eligible on a pro‑rata basis where applicable (unless the Board determines otherwise) to be considered for a STIP award with regard to actual performance against performance measures (as determined by the Board in the ordinary course following the end of the performance period). Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) 64 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) STIP outcomes for FY25 In determining the Executive KMP remuneration outcomes this year and how these outcomes will be delivered, the Board has considered the needs and expectations of various stakeholders, the business performance and the efforts undertaken by management. The Board has not exercised discretion on the STIP outcomes for FY25. FY25 Balanced Scorecard Outcome Type of performance measure and weighting at target Executive KMP Performance measure Targets FY25 Actual Performance Scorecard Outcome as % of Target Group Financial 70% of balanced scorecard Group Underlying EBITDA (pre AASB 16) (70%) Threshold = $232.8M Target = $245.0M Maximum = $275.6M Group Underlying EBITDA (pre AASB 16) = $236.4M 51% outcome achieved ESG Non‑Financial Strategic Goals include 30% of balanced scorecard Environment Water Consumption (kL/T) (10%) Target = kL/T of 2.97 Maximum = kL/T of 2.89 kL/T of 2.91 115% outcome achieved Social People Safety (TRIFR) (10%) Target = TRIFR of 4.27 Maximum = TRIFR of 4.19 TRIFR of 4.25 105% outcome achieved Food Safety (Product Pride and BRC) (10%) Target = 90% Product Pride program completion and BRC audit score average A rating Maximum = 98% Product Pride program completion and BRC audit score average AA rating 99% Product Pride program completion and BRC audit score average AA rating 120% outcome achieved Average non‑financial measures 113% achieved Total STIP scorecard (before consideration of individual multiplier) 69.5% of Target 57.9% of Maximum Overall FY25 STIP Outcome Calculation For the Executive KMP detailed below, the Board assessed that the results for both individual contribution to business performance and leading through the right behaviours for Andrew Reeves which resulted in a 100% out of a maximum of 125% outcome for the Individual Multiplier and for Gary Mallett resulted in a 90% out of a maximum of 125% outcome for the Individual Multiplier. As discussed in the Chair’s letter, the Board also determined a downwards discretion in respect of Mr Reeves. Executive KMP Scorecard Outcome (% of the maximum score) Individual Multiplier (% of the maximum score) Overall Individual STIP Outcome (applied against maximum STIP) Overall Individual STIP Outcome as a % of TFR Andrew Reeves 69.5/120 = 57.9% 100/125 = 80.0% 57.9% multiplied by 80.0% = 46.3% 69.5% of TFR awarded out of a maximum of 150% of TFR Board downward discretion ‑35% 1 45.2% of TFR awarded out of a maximum of 150% of TFR Gary Mallett 69.5/120 = 57.9% 90 2/125 = 72.0% 57.9% multiplied by 72.0% = 41.7% 31.3% of TFR awarded out of a maximum of 75% of TFR 1. S ee Chair’s letter for discussion of rationale. 2. I ndividual multiplier adjusted to reflect the impact of same volume loss from the Woolworths contract. Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) Directors’ Report 65
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Directors’ Report (continued) FY25 STIP Awarded Executive KMP STIP target – $ STIP maximum – $ Total STIP awarded – $1 STIP Cash awarded – $ STIP Rights awarded – $2 Forfeit against STIP maximum – $ Forfeited % against STIP maximum Andrew Reeves (pre‑Board discretion) 1,250,000 1,875,000 868,750 434,375 434,375 1,006,250 53.7% Andrew Reeves (post‑Board discretion) 564,688 282,344 282,344 1,310,312 69.9% Gary Mallett 340,320 510,480 212,870 149,009 63,861 297,610 58.3% 1. T otal STIP awarded at 30.1% of maximum for Andrew Reeves and 41.7% for Gary Mallett. 2. T he estimated number of rights is calculated by dividing the face value of their award by the volume weighted average price (VWAP) of Inghams shares traded on the ASX in the 10 days after grant date. Long‑Term Incentive Plans FY25‑FY27 LTIP Offer The FY25‑FY27 LTIP Offer has been made to the following FY25 Executive KMP, receiving shareholder approval of 96.33% at the 2024 AGM. The below table outlines the key terms of the Offer: Eligibility to participate in LTIP Offer Offers may be made at the Board’s discretion to employees of Inghams. The FY25‑FY27 LTIP Offer has been made to the following FY25 Executive KMP: • Andrew Reeves (CEO/MD), (75% of TFR at Target and 150% of TFR at Maximum); and • Gary Mallett (CFO), (35% of TFR at Target and 70% of TFR at Maximum). The Threshold performance conditions are used to calculate the Target LTIP value, this is used to determine the Target Total Remuneration. Grant of Rights The LTIP Offer is a grant of performance rights. A Right entitles the participant to acquire an Inghams share for nil consideration at the end of the performance period, subject to meeting specific performance conditions. The Board retains the discretion to make a cash payment to participants on vesting of the Rights in lieu of an allocation of shares. Currently there is no expectation to settle as a cash payment. Quantum of Rights The aggregate face value at Maximum of the LTIP Offer to all participants (Executive KMP and Senior Management) is $7.4 million. The final number of Rights awarded to each participant was calculated by dividing the face value of their maximum LTIP award by $3.0819, being the volume weighted average price (VWAP) of Inghams shares traded on the ASX in the 10 days after 23 August 2024 (the announcement date of Inghams FY24 annual results). Performance Period Three years, commencing on 30 June 2024 and ending on or about 1 July 2027. Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) 66 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) Performance conditions Relative TSR (50% of Award) For this component, the Company’s relative TSR will be compared to a comparator group comprising the ASX Small Ordinaries and vest according to the following schedule: Company’s relative TSR rank in the comparator group over performance period % of Rights that Vest Less than 50th percentile Nil At 50th percentile (threshold) 50% Between 50th and 75th percentile Straight line pro rata Vesting between 50% and 100% At 75th percentile or above 100% Return on Invested Capital (50% of award) For this component, the Company’s Underlying pre AASB 16 Return on Invested Capital (“ROIC”) will be calculated as the equivalent of Net Operating Profit after Tax (“NOPAT”) divided by average Invested Capital (two‑point average), where: • NOPAT = Underlying NPAT pre AASB 16, plus interest (net of tax); and • Average Invested Capital = the two‑point average calculated over two financial year end periods. The interest component of NOPAT will include an adjustment to exclude the amount related to the inventory trade payable facility. The Company’s ROIC for each of the three years forming the performance period will be averaged to provide an overall outcome, with ROIC performance targets set out below. The inventory trade payable facility is used for feed purchased across Australia and New Zealand within the business. It is utilised for all feed purchases and only used for feed, not only because of management policy, which is overseen by the Board, but also because of the terms of the facility. This policy ensures that changes in facility utilisation cannot be used to vary the ROIC outcome. When testing performance conditions, the Board has discretion to include or exclude any items from its calculations. For example, the Board reserves discretion to make adjustments to ROIC in exceptional circumstances, such as to take account of corporate actions undertaken by the Company. The Board has approved a change in the ROIC calculation methodology for LTIP to exclude Asset Revaluation impacts (upwards or downwards) from ROIC calculations. FY23‑FY25 ROIC for LTIP was not adjusted for any asset revaluations which would have been a small upwards adjustment. The level of vesting of this component will be determined according to the following schedule: Company’s ROIC Outcome % of Rights that Vest Less than Threshold Nil At Threshold of 15.7% p.a. 50% Between Threshold and Target Straight line pro rata Vesting between 50% and 75% At Target 75% Between Target and Maximum Straight line pro rata Vesting between 75% and 100% At Maximum of 20.0% p.a. or more 100% Voting and dividend entitlements Performance rights granted under the LTIP do not carry dividend or voting rights prior to vesting. Shares allocated upon vesting of performance rights carry the same dividend and voting rights as other Inghams shares. Re‑testing Performance will not be re -t ested if the performance conditions are not satisfied at the end of the performance period. Any Rights that remain unvested at the end of the performance period will lapse immediately. Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) Directors’ Report 67
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Directors’ Report (continued) Restrictions on dealing The Executive KMP must not sell, transfer, encumber, hedge or otherwise deal with performance rights. The Executive KMP will be free to deal with the shares allocated on vesting of the performance rights, subject to the requirements of Inghams Securities Dealing Policy at that time. A minimum amount of 35% of any vested equity award will need to be held for any relevant Executive KMP until the minimum shareholding requirement is met. Minimum shareholder requirements are detailed on page 73. Change of control Under the Plan rules and the terms of the LTIP awards, the Board may determine in its absolute discretion that some or all of the Executive KMP performance rights will vest on a likely change of control. In the event of an actual change in the control of the Company then, unless the Board determines otherwise, all unvested performance rights will immediately vest or cease to be subject to restrictions (as applicable) on a pro rata basis based on the portion of the vesting period that has elapsed. Claw‑back Under the Plan rules and the terms of the LTIP awards, the Board has claw‑back powers which it may exercise if, among other things: • the Executive KMP has acted fraudulently or dishonestly, has engaged in gross misconduct, brought Inghams, the Inghams Group or any Inghams Group company into disrepute or breached their obligations to the Inghams Group, or Inghams is required by or entitled under law or Inghams’ policy to reclaim remuneration from the participant; • there is a material misstatement or omission in the accounts of an Inghams Group company; or • the Executive KMP entitlements vest or may vest as a result of the fraud, dishonesty or breach of obligations of any other person and the Board is of the opinion that the performance rights would not have otherwise vested. Cessation of employment If the participant ceases employment for cause or due to their resignation, unless the Board determines otherwise, any unvested Rights will automatically lapse. The Board has the discretion to designate a ‘good leaver’ (e.g. retrenchment, bona fide executive retirement or death), whereby Rights will not automatically lapse. In these circumstances, the Rights will generally be pro‑rated (based on the proportion of the performance period that has elapsed) and remain on foot and subject to the original performance conditions, unless the Board exercises a discretion to treat them otherwise. Fair Value The fair value of the LTIP offer at grant date was determined using an adjusted form of Black Scholes model for the TSR component. The ROIC component is valued using a discounted cashflow technique. The weighted average grant date fair value of rights granted in the year was $2.02 (2024: $2.86, 2023: $1.98). The model inputs for performance rights granted during the year ended included: (a) E xercise price $Nil (2024: $Nil, 2023: $Nil); (b) S hare price at grant date $3.09 (2024: $3.53, 2023: $2.69); (c) E xpected price volatility 32% (2024: 30%,2023: 29%); (d) E xpected dividend yield 5.63% (2024: 5.0%, 2023: 4.0%); and (e) R isk‑free interest rate 4.16% (2024: 3.76%, 2023: 4.07%). LTIP Outcomes during FY25 Performance against LTIP measures FY23‑FY25 LTIP vesting outcomes The FY23‑FY25 LTIP scheme was tested for eligibility on 1 July 2025. The ROIC performance was between Threshold and Maximum and resulted in 88.71% ROIC‑based rights vesting. The TSR performance was at the 71.7th percentile, which resulted in 93.4% TSR‑ based rights vesting. The total amount that vested is 91.05% of total rights granted. With these vesting in the FY26 financial year they will be included in the statutory disclosures in next year’s Remuneration Report. Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) 68 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) The details of the outcomes against the relative TSR hurdles are set out below. Relative TSR Hurdle: Company’s TSR rank in the relevant comparator group % of rights that vest Less than 50th percentile Nil At 50th percentile 50% Between 50th and 75th percentile Straight line pro‑rata vesting between 50% and 100% At 75th percentile 100% Outcome: TSR percentile rank at the 71.7th percentile 93.4% vesting ROIC Hurdle: Company’s Underlying pre AASB 16 ROIC % of rights that vest Less than Threshold 16.1% p.a. Nil At Threshold 16.1% p.a. 50% Between Threshold and Target Straight line pro rata Vesting between 50% and 75% At Target 75% Between Target and Maximum Straight line pro rata Vesting between 75% and 100% At Maximum 21.0% p.a. 100% Outcome: Underlying pre AASB 16 ROIC is between Threshold and Maximum at 19.6% 88.71% vesting ROIC Outcomes: The Board uses its discretion to adjust ROIC for material accounting policy changes on items which were not forecast when the initial targets were set especially those driven by a change in Board policy. The ‘inventory trade payable’ and ‘Bolivar’; adjustments were set out in the 2024 AGM notice of meeting. The Charlton lease adjustment is of a similar character to Bolivar, but downwards. A reconciliation of Reported ROIC to adjusted ROIC for remuneration purposes is below. Impact of Reported Inventory Trade Payable1 Bolivar Acquisition 2 Charlton Lease3 Adjusted ROIC FY23 19.0% – – – 19.0% FY24 21.3% – 1.1% – 22.4% FY25 16.1% 0.5% 1.3% ‑0 .5% 17.4% Average 19.0% – – – 19.6% 1. I nventory procurement trade payable interest of FY25: $5.4 million (FY24: n/a) is included in FY25 Reported NOPAT and ROIC. In FY23 and FY24 Reported, Inventory procurement trade payable interest was excluded from NOPAT. FY23‑25 LTIP target was determined under prior methodology and the FY25 adjustment noted is required for consistency. 2. A cquisition of Bolivar site was Leased at the time of target setting and was subsequently purchased. Adjustments to NOPAT, FY25: $2.2 million (FY24: $1.2 million) and Average Invested Capital, FY25: ‑$68.1 million (FY24: ‑$34.5 million). 3. L ease of Charlton, Victoria Breeder site that was planned to be acquired rather than leased at the time of target setting. Adjustments to Average Invested Capital, FY25: $25 million (FY24: n/a). Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) Directors’ Report 69
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Directors’ Report (continued) The following outcome of the FY23‑FY25 LTIP applies: Executive KMP LTIP Rights Granted LTIP Rights Vested LTIP Rights Forfeited Andrew Reeves1 688,152 626,562 61,590 Gary Mallett1 180,907 164,716 16,191 1. A ndrew Reeves and Gary Mallett granted FY23‑FY25 LTIP on 8 November 2023 and the rights vest on 1 July 2025. 6 Other Key Information Executive Employment Agreements Key terms of the Executive Service Agreements for the CEO/MD and other Executive KMP members are presented in the table below: Executive KMP Position Contract duration Notice Period Termination payments applicable Andrew Reeves CEO/MD Unlimited 12 months Up to 12 months fully paid Gary Mallett CFO Unlimited 6 months Up to 6 months fully paid Former CEO/MD arrangements The former CEO/MD Mr Reeves stepped down from the role on 28 June 2025 and retires from Inghams 29 August 2025. No additional or discretionary remuneration was provided as a result of stepping down as CEO/MD or retiring. On retirement Mr Reeves will receive the accrued statutory leave entitlements, STIP deferred payments already earned for the FY24 year (subject to malus and clawback until paid), and STIP for the FY25 year, with no accelerated vesting for FY25 STIP. As per the LTIP and the deferred STIP rules the Board has designated Mr Reeves as a ‘good leaver’ (e.g. bona fide executive retirement), whereby rights will not automatically lapse, so will be pro‑rated (based on the proportion of the performance period that has elapsed) and remain on foot and subject to the original performance conditions. Mr Reeves will not be eligible to participate in any remuneration plans in respect of the FY26 year. 7 Overview of non‑executive director remuneration The details of fees paid to Non‑Executive Directors in FY25 are outlined in section 8 of this Remuneration Report. Non‑Executive Directors’ fees were fixed, and they did not receive any performance‑based remuneration. The table below outlines the fee structure for Non‑Executive Directors in FY25 (inclusive of superannuation as applicable). In FY25, there was a benchmarking process undertaken to assess the fee structure. The Board determined there would no increases to the Non‑Executive Director Board fees. The annual aggregate fee pool for Non‑Executive Directors is capped at $2.0 million. Board and Committee fees inclusive of statutory superannuation contributions are included in this aggregate fee pool. Board fees FY25 FY24 Chair $350,000 (no additional Committee fees) $350,000 (no additional Committee fees) Non‑Executive Director $150,000 $150,000 Committee fees Finance and Audit Chair $25,000 $25,000 People and Remuneration Chair $25,000 $25,000 Risk and Sustainability Chair $25,000 $25,000 Nomination Chair/Member – – Committee Fees Membership per committee $12,500 $12,500 Remuneration report – audited (continued) 5 Executive remuneration framework and outcomes (continued) 70 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) 8 Statutory and share‑based reporting (a) Director and Executive KMP remuneration for the year ended 28 June 2025 The following tables of Director and Executive KMP remuneration has been prepared in accordance with accounting standards and the Corporations Act 2001 requirements, for the period from 30 June 2024 to 28 June 2025. Share‑based payments are calculated as deferred STIP and LTIP awards. SHORT‑TERM BENEFITS LONG‑TERM/ POST‑EMPLOYMENT BENEFITS SHARE‑BASED PAYMENTS Year Salary and fees1 $000 STIP bonus $000 Monetary Benefits 2 $000 Superan‑ nuation $000 Long service leave3 $000 Perform‑ ance Rights4 $000 Deferred benefits 5 $000 Total remun‑ eration $000 Perform‑ ance related $000 Non‑Executive Directors Helen Nash 2025 320 – – 30 – – – 350 – 2024 323 – – 27 – – – 350 – Rob Gordon 2025 144 – – 17 – – – 161 – 2024 141 – – 15 – – – 156 – Michael Ihlein 2025 187 – – – – – – 187 – 2024 179 – – – – – – 179 – Timothy Longstaff 2025 178 – – 10 – – – 188 – 2024 179 – – – – – – 179 – Linda Bardo Nicholls AO 2025 173 – – 14 – – – 187 – 2024 166 – – 13 – – – 179 – Margaret Haseltine 2025 175 – – – – – – 175 – 2024 137 – – – – – – 137 – Sub‑total Non‑Executive Directors’ Remuneration 2025 1,177 – – 71 – – – 1,248 – 2024 1,125 – – 55 – – – 1,180 – CEO/MD Andrew Reeves 2025 1,258 282 32 30 (61) 875 526 2,942 1,683 2024 1,214 600 40 27 20 1,253 463 3,617 2,316 Sub‑total Directors’ Remuneration 2025 1,258 282 32 30 (61) 875 526 2,942 1,683 2024 1,214 600 40 27 20 1,253 463 3,617 2,316 Other Executive KMP Gary Mallett 2025 672 149 – 30 10 248 73 1,182 470 2024 681 228 – 27 10 362 77 1,385 667 Total Other Executive KMP Remuneration 6 2025 672 149 – 30 10 248 73 1,182 470 2024 681 228 – 27 10 362 77 1,385 667 Total Directors’ and Executive KMP Remuneration 6 2025 3,107 431 32 131 (51) 1,123 599 5,372 2,153 2024 3,020 828 40 109 30 1,615 540 6,182 2,983 1. S alary and fees are inclusive of salary, annual leave entitlements and one‑off lump sum of $37,500. 2. M onetary benefits represent a company provided motor vehicle for the CEO/MD valued at $31,616 per annum. 3. I n FY25, long service leave for Andrew Reeves was reversed as he had not reached his entitlement period for this benefit. 4. T he LTIP award is subject to 50% Relative TSR and 50% ROIC performance hurdles. For further details of performance hurdles and conditions refer to section 5. 5. D eferred benefits include deferred equity incentives. 6. F Y25 reporting period had 52 weeks and FY24 had 53 weeks. Remuneration report – audited (continued) Directors’ Report 71
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Directors’ Report (continued) (b) Rights awarded, vested and lapsed during the year The table below discloses the number of rights granted, vested or lapsed during the year. Rights do not carry any voting or dividend rights and can only be exercised once the vesting conditions have been met, until their expiry date. No. of rights awarded during the year3 Award date Fair value per right at grant date ($) Vesting date Value of rights granted during the year ($000) No. of rights vested during the year No. of rights lapsed/ forfeited during the year Andrew Reeves FY25‑FY27 LTIP 2,5 608,390 15 Nov 2024 2.020 1 Jul 2027 1,229 – (372,133) FY24 STIP1 194,685 15 Sep 2024 3.082 15 Sep 2025 600 – – FY22‑FY24 LTIP 2 – 4 Nov 2021 2.580 12 Sep 2024 – 135,935 (272,400) FY24‑FY26 LTIP 2,5 – 21 Feb 2024 2.860 1 Jul 2026 – – (151,548) FY23 STIP – 15 Sep 2023 3.432 15 Sep 2024 – 158,373 – FY23‑FY25 LTIP 2,4 – 21 Jun 2023 1.980 1 Jul 2025 – 626,562 (61,590) Total 803,075 1,829 920,870 (857,671) Gary Mallett FY25‑FY27 LTIP 2 154,595 15 Nov 2024 2.020 1 Jul 2027 312 – – FY24 STIP1 31,684 15 Sep 2024 3.082 15 Sep 2025 98 – – FY22‑FY24 LTIP 2 – 4 Nov 2021 2.580 12 Sep 2024 – 37,4 85 (75,116) FY24‑FY26 LTIP 2 – 21 Feb 2024 2.860 1 Jul 2026 – – – FY23 STIP – 15 Sep 2023 3.432 15 Sep 2024 – 26,765 – FY23‑FY25 LTIP 2,4 – 21 Jun 2023 1.980 1 Jul 2025 – 164,716 (16,191) Total 186,279 410 228,966 (91,307) 1 D eferred rights were granted on 15 September 2024 subsequent to the calculation of the volume weighted average price of Inghams shares traded on the ASX, 10 days after 23 August 2024. The fair value of the deferred rights is calculated as the market price of Inghams shares traded on the ASX on grant date of the deferred rights. 2. T he fair value of the LTIP offer at grant date was determined using an adjusted form of the Black Scholes Model. Fair value on performance rights is a weighted average of rights values under the ROIC and TSR portion of the awards. All the terms and conditions remain consistent year on year. 3. T hese are reported as maximum. 4. F Y23‑FY25 LTIP vests on 1 July 2025 after year end of 28 June 2025. 5. T he FY24‑FY26 and FY25‑FY27 LTIP for Andrew Reeves will be pro‑rated and remain on foot as a good leaver and subject to performance conditions. The number of rights that will lapse as result of the pro‑rated balance, will lapse on 29 June 2025. (c) Performance rights holdings of Directors and Executive KMP Balance 29 June 2024 Granted as remuneration 2 Rights vested Rights lapsed/ forfeited Balance 28 June 2025 Andrew Reeves1 2,168,140 803,075 (294,308) (272,400) 2,404,507 Gary Mallett1 652,395 186,279 (64,250) (75,116) 699,308 Total 2,820,535 989,354 (358,558) (347,516) 3,103,815 1. T he FY22‑FY24 LTIP scheme was tested for eligibility on 1 July 2024 and the TSR based rights achieved 66.58% of the TSR performance outcome and the ROIC rights did not meet the performance threshold, and hereby a total of 33.29% of total rights granted vested and the remaining balance lapsed. 135,935 rights vested and 272,400 rights lapsed for Andrew Reeves on 1 July 2024. 37,485 rights vested and 75,116 rights lapsed for Gary Mallett on 1 July 2024. 2. F Y24 STIP deferred rights and FY25‑FY27 LTIP rights granted as remuneration during FY25. 3. T able excludes FY23‑FY25 LTIP which vests on 1 July 2025 after year end of 28 June 2025. As a result this table excludes the amounts referenced in footnote 5 above. Remuneration report – audited (continued) 8 Statutory and share‑based reporting (continued) 72 Inghams Group Limited Annual Report 2025
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Directors’ Report (continued) (d) Minimum Shareholding Requirements The shareholding requirement of Non‑Executive Directors is a minimum shareholding of 100% of their base Board fees and for the CEO/MD a minimum of 100% of TFR and other KMP 50% of TFR. The minimum shareholding will need to be achieved after 5 years of their appointment or 5 years after the minimum shareholding requirements were implemented in FY22. To assist with achieving the minimum shareholding requirement an amount of 35% of any vested equity award will need to be held for any relevant Executive KMP until the minimum shareholding requirement is met. Both Executive KMP, Mr Reeves and Mr Mallett, and Non‑Executive Directors meet or are on track to meet their respective minimum shareholding requirements. (e) Shareholdings of Directors and KMP Balance 29 June 2024 Granted as remuneration Net change other Balance 28 June 2025 Non‑Executive Directors Helen Nash 91,953 – 20,877 112,830 Rob Gordon 45,772 – – 45,772 Margaret Haseltine – – 12,730 12,730 Michael Ihlein 45,455 – 15,000 60,455 Timothy Longstaff 29,850 – – 29,850 Linda Bardo Nicholls, AO 55,846 – 14,920 70,766 CEO Andrew Reeves 44,563 294,308 – 338,871 Other Executive KMP Gary Mallett 30,567 64,250 – 94,817 Total 344,006 358,558 63,527 766,091 Signed in accordance with a resolution of the Directors made pursuant to s298(2) of the Corporations Act 2001 . Helen Nash M ichael Ihlein Chair N on‑Executive Director Sydney 22 August 2025 Remuneration report – audited (continued) 8 Statutory and share‑based reporting (continued) Directors’ Report 73
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Consolidated Entity Disclosure Statement Local Tax Residency Disclosure Name of entity Country of incorporation Entity structure % of share capital held directly or indirectly by IGL Tax residency Inghams Group Limited Australia Corporate N/A Australian Inghams Holding II Pty Limited Australia Corporate 100 Australian Inghams Holding III Pty Limited Australia Corporate 100 Australian Adams Bidco Pty Limited Australia Corporate 100 Australian Inghams Enterprises Pty Limited Australia Corporate 100 Australian Ingham Enterprises Pty Limited Australia Corporate 100 Australian The Free Ranger Pty Limited Australia Corporate 100 Australian Ingham 2 Pty Limited Australia Corporate 100 Australian Aleko Pty Limited Australia Corporate 100 Australian Agnidla Pty Limited Australia Corporate 100 Australian Inadnam Pty Limited Australia Corporate 100 Australian Ovoid Insurance Pty Limited Australia Corporate 100 Australian Inghams Property Management Pty Limited Australia Corporate 100 Australian Inghams Enterprises (NZ) Pty Limited (a) Australia Corporate 100 Australian Inghams Group Limited Employee Share Trust Australia Trust N/A Australian Inghams (NZ) No 2 Limited (b) New Zealand Corporate 100 Foreign Bostock Brothers Limited (b) New Zealand Corporate 100 Foreign Ovoid Insurance Limited (c)(d) Bermuda Corporate 100 Foreign AFB International Pty Limited Australia Partnership 50 Australian Inghams Property Hold Co Pty Limited Australia Corporate 100 Australian Inghams Property Co Pty Limited Australia Corporate 100 Australian Inghams Burton Property Trust Australia Trust N/A Australian IGL = Inghams Group Limited (a) O perates a permanent establishment in New Zealand. (b) F oreign tax jurisdiction is New Zealand. (c) F oreign tax jurisdiction is Bermuda. (d) S ubsequent to year end, on 4 July 2025, the Ovoid Insurance Limited entity in Bermuda was wound up. Determination of Tax Residency Section 295 (3A) of the Corporation Acts 2001 requires that the tax residency of each entity which is included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian resident, “Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as the determination of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: • For Australian tax residency, the consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5; and • For foreign tax residency, the consolidated entity has applied current legislation and where available judicial precedent in the determination of foreign tax residency. 74 Inghams Group Limited Annual Report 2025
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Lead Auditor's Independence Declaration under section 307C of the corporations Act 2001 To the Directors of lnghams Group Limited I declare that, to the best of my knowledge and belief, in relation to the audit of lnghams Group Limited for the financial year ended 28 June 2025 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and 11. no contraventions of any applicable code of professional conduct in relation to the audit. KPMG Trent Duvall Partner Sydney 22 August 2025 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used· under license by the independent member firms of the KPMG global organis ation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration To the Directors of Inghams Group Limited Lead Auditor’s Independence Declaration 75
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Financial Statements Consolidated Income Statement For the year ended 28 June 2025 Notes 52 weeks ended 28 June 2025 $000 53 weeks ended 29 June 2024 $000 Revenue 4 3,152,400 3,262,000 Other income 5(a) 100 300 Expenses Cost of sales (2,570,700) (2,641,100) Distribution (206,700) (210,000) Administration and selling (166,500) (185,300) Operating profit 208,600 225,900 Finance income and costs Finance income 3,000 3,000 Finance costs (85,400) (86,600) Net finance costs 5(c) (82,400) (83,600) Share of net profit of joint venture 25 700 900 Profit before income tax 126,900 143,200 Income tax expense 6(a) (37,10 0) (41,700) Profit for the year attributable to: Owners of Inghams Group Limited 89,800 101,500 Basic EPS (cents per share) 28 24.2 27.3 Diluted EPS (cents per share) 28 24.0 27.2 The above consolidated income statement should be read in conjunction with the accompanying notes. 76 Inghams Group Limited Annual Report 2025
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Financial Statements Consolidated Statement of Comprehensive Income For the year ended 28 June 2025 Notes 52 weeks ended 28 June 2025 $000 53 weeks ended 29 June 2024 $000 Profit for the year 89,800 101,500 Other comprehensive income Items that have been reclassified to profit or loss Changes in the fair value of cash flow hedges 20(a) (4,000) (8,800) Total items that have subsequently been reclassified to profit or loss (4,000) (8,800) Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 20(a) 2,800 (1,400) Changes in the fair value of cash flow hedges 20(a) (6,100) 3,900 Total items that may subsequently be reclassified to profit or loss (3,300) 2,500 Items that will not be reclassified to profit or loss Revaluation of land and buildings 20(a) 60,200 – Tax on revaluation of land and buildings 20(a) (17,90 0) – Total items that will not be reclassified to profit or loss 42,300 – Total comprehensive income for the year, attributable to: Owners of Inghams Group Limited 124,800 95,200 The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. 77 Consolidated Statement of Comprehensive Income
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Financial Statements Consolidated Statement of Financial Position As at 28 June 2025 Notes 28 June 2025 $000 29 June 2024 $000 ASSETS Current assets Cash and cash equivalents 7 106,400 110,700 Trade and other receivables 8 287,60 0 234,100 Biological assets 9 166,900 163,500 Inventories 10 251,900 237,50 0 Derivative financial instruments 17 – 1,700 Assets held for sale 11 1,300 – Current tax receivable 5,100 – Total current assets 819,200 747,500 Non‑current assets Property, plant and equipment 12 726,900 594,300 Intangible Assets 4,000 – Investments accounted for using the equity method 25 3,000 3,000 Right‑of‑use assets 13 809,000 1,031,700 Derivative financial instruments 17 – 600 Deferred tax asset 6(c) 2,200 22,900 Total non‑current assets 1,545,100 1,652,500 Total assets 2,364,300 2,400,000 LIABILITIES Current liabilities Trade and other payables 14 479,900 426,100 Current tax liability 2,200 15,800 Provisions 16 103,300 104,100 Derivative financial instruments 17 2,600 – Lease liabilities 94,500 147, 30 0 Total current liabilities 682,500 693,300 Non‑current liabilities Trade and other payables 14 – 200 Borrowings 15 536,800 458,600 Provisions 16 38,900 37,20 0 Derivative financial instruments 17 3,700 – Deferred tax liabilities 6(c) 5,700 – Lease liabilities 819,700 991,100 Total non‑current liabilities 1,404,800 1,487,100 Total liabilities 2,087,300 2,180,400 Net assets 277,000 219,600 Equity Contributed equity 18(a) 109,300 109,300 Reserves 20(a) 83,700 45,500 Retained earnings 84,000 64,800 Total equity 277,000 219,600 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 78 Inghams Group Limited Annual Report 2025
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Financial Statements Consolidated Statement of Changes in Equity For the year ended 28 June 2025 ATTRIBUTABLE TO OWNERS OF INGHAMS GROUP LIMITED Notes Contributed Equity $000 Retained Earnings $000 Asset revaluation reserve $000 Other reserves $000 Total Equity $000 Balance at 25 June 2023 109,300 45,100 17,700 29,700 201,800 Profit for the year – 101,500 – – 101,500 Other comprehensive income 20(a) – – – (6,300) (6,300) Total comprehensive income – 101,500 – (6,300) 95,200 Transactions with owners of the Company Dividends provided for or paid 19 – (81,800) – – (81,800) Share‑based payment expense – – – 4,800 4,800 Transfer of shares for settlement of share plan 20(a) – – – (400) (400) – (81,800) – 4,400 ( 7 7,4 0 0) Balance at 29 June 2024 109,300 64,800 17,700 27,800 219,600 Balance at 30 June 2024 109,300 64,800 17,700 27,800 219,600 Profit for the year – 89,800 – – 89,800 Other comprehensive income – – – (7 ,300) (7 ,300) Revaluation of land and buildings – – 60,200 – 60,200 Tax impact – – (17,90 0) – (17,90 0) Total comprehensive income – 89,800 42,300 (7,300) 124,800 Transactions with owners of the Company Dividends provided for or paid 19 – (70,600) – – (70,600) Share‑based payment expense 20(a) – – – 5,200 5,200 Transfer of shares for settlement of share plan 20(a) – – – (2,000) (2,000) – (70,600) – 3,200 (67,4 0 0) Balance at 28 June 2025 109,300 84,000 60,000 23,700 277,000 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Consolidated Statement of Changes in Equity 79
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Financial Statements Consolidated Statement of Cash Flows For the year ended 28 June 2025 Notes 52 weeks ended 28 June 2025 $000 53 weeks ended 29 June 2024 $000 Cash flows from operating activities Receipts from customers (inclusive of GST) 3,223,600 3,391,200 Payments to suppliers and employees (inclusive of GST) (2,853,700) (2,938,100) Payment for settlement of profit hedge (20,400) – Proceeds from settlement of profit hedge 19,900 – 369,400 453,100 Interest received 3,000 3,000 Income taxes paid (53,100) (37,60 0) Net cash provided by operating activities 22 319,300 418,500 Cash flows from investing activities Capital expenditure (104,100) (85,700) Property purchases – (76,000) Dividends received from investments 700 300 Government grant received – 3,900 Acquisition of a business and assets* 29 (31,300) (6,600) Net cash used in investing activities (134,700) (164,100) Cash flows from financing activities Settlement of share plan (2,000) (400) Proceeds from borrowings 215,000 60,000 Repayment of borrowings (135,000) – Dividends paid (70,600) (81,800) Lease payments – principal (109,200) (172,900) Lease payments – interest (42,000) (55,300) Interest and finance charges paid (45,700) (29,900) Proceeds from settlement of derivatives – 600 Net cash used in financing activities (189,500) (279,700) Net decrease in cash and cash equivalents (4,900) (25,300) Cash and cash equivalents at the beginning of the financial year 110,700 136,300 Effects of exchange rate changes on cash and cash equivalents 600 (300) Cash and cash equivalents at end of year 7 106,400 110,700 * F or the period ended 28 June 2025, included in ‘Acquisition of business and assets’ is $3.2 million for the purchase of the processing factory and $1.6 million for the land purchased in relation to the Bostock Brothers acquisition. These transactions are not part of the business combination. The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 80 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial S tatements 1 C orporate information The financial statements of Inghams Group Limited and its subsidiaries (collectively, the Group) for the 52 weeks ended 28 June 2025 (comparative period was 53 weeks ended 29 June 2024) were authorised for issue in accordance with a resolution of the Directors on 22 August 2025. Inghams Group Limited (the Company) is a for‑profit company limited by shares incorporated in Australia. The registered office and principal place of business of Inghams Group Limited are: Level 4 1 Julius Avenue North Ryde NSW 2113 Australia The principal activities of the Group during the year consisted of the production and sale of chicken and turkey products across its vertically integrated free‑range, value enhanced, primary processed, further processed and by‑product categories. Additionally, stockfeed is produced primarily for internal use but also for the poultry and pig industries. 2 C hanges in accounting policies (a) Impact on the financial statements The Group adopted Classification of Liabilities as Current or Non‑Current (Amendments to AASB 101) and Non‑Current Liabilities with Covenants (Amendments to AASB 101) from 30 June 2024. Presentation of certain liabilities as current and non‑current was assessed. The amendments apply retrospectively. Following the amendments, additional disclosures in the financial statements for the year‑ending 28 June 2025 were required for our borrowing covenants and if these were not met these would change the classification of borrowings from non‑current to current. These additional disclosures are detailed in note 15 Borrowings on page 101. There is no retrospective impact on the financial statements for the year 28 June 2025 as no covenant breaches occurred and no waivers were required during the period. The Group adopted Disclosure of Financial Instruments (AASB 7 and AASB 107) from 30 June 2024. Although the arrangements do not apply to financing arrangements for receivables or inventory, it does however apply to trade payables. Following the amendments, additional disclosures were required that included disclosing comparable supplier terms that are not part of the arrangement as well as the balance of suppliers making up trade payables that have received payment from the finance provider. These additional disclosures are detailed in note 14 Trade and Other Payables on page 100 . The Group is within the scope of the Pillar Two tax that has been substantively enacted in Australia. The current financial year is the first period for which a Pillar Two return is required. The Group has no exposure to Pillar Two taxes in respect of the current year. The Group has also applied the mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. At 28 June 2025, certain accounting standards and interpretations have been published or amended which will become mandatory in future reporting periods. These new or amended accounting standards and interpretations are either not material or not applicable to Inghams. AASB 18 was issued in June 2024 and replaces AASB 101 Presentation of Financial Statements . The standard introduces new requirements for the Statement of Profit or Loss, including: • new categories for the classification of income and expenses into operating, investing and financing categories; and • presentation of subtotals for “operating profit” and “profit before financing and income taxes”. Additional disclosure requirements are introduced for management‑defined performance measures and new principles for aggregation and disaggregation of information in the notes and the primary financial statements and the presentation of interest and dividends in the statement of cash flows. The standard is effective for annual periods beginning on or after 1 January 2027 and will first apply to the Group for the financial year ending 24 June 2028. This standard is not expected to have an impact on the recognition and measurement of assets, liabilities, income and expenses. However, there will be changes in how the Statement of Profit or Loss and Statement of Financial Position line items are presented as well as some additional disclosures in the notes to the financial statements. The Group is in the process of assessing the impact of the standard. Notes to the Consolidated Financial Statements 81
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Notes to the Consolidated Financial Statements (continued) 3 S ummary of material accounting policies The material accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied from the first annual period following the effective date of the new standard, unless otherwise stated. (a) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB). (i) Historical cost convention The financial statements have been prepared on a historical cost basis, except for the following: • Financial assets and liabilities (including derivative instruments) and certain classes of plant and equipment measured at fair value. • Assets held for sale – measured at the lower of cost (including revaluation adjustments where applicable), or fair value less cost of disposal. (ii) Critical accounting estimates and judgements The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below. • Fair value determination of freehold land and buildings – note 12; and • Fair value of rights granted under the long‑term incentive scheme, as determined at grant date – note 21. Further details of the nature of these assumptions and conditions may be found in the relevant notes to these financial statements. (b) Principles of consolidation (i) Subsidiaries The consolidated financial statements incorporate the financial statements of the Group and its subsidiaries and the results of all subsidiaries for the year ended 28 June 2025. Subsidiaries are all entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related non‑controlling interest and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. The acquisition method of accounting is used to account for business combinations by the Group (see note 29). Acquisitions are accounted for in accordance with AASB 3 Business Combinations . Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. (ii) Joint Ventures The Group’s interests in equity‑accounted investees comprise interests in a joint venture. Interests in the joint venture are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and Other Comprehensive Income of equity‑accounted investees, until the date on which significant influence or joint control ceases. 82 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (c) Foreign currency translation (i) Functional and presentation currency Items included in the consolidated financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which it operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is Inghams Group Limited’s functional and presentation currency. (ii) Transaction and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation, at period end exchange rates, of monetary assets and liabilities denominated in foreign currencies, are recognised in consolidated income statement, except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. (iii) Group companies The results and financial position of foreign operations of the Group (none of which have the currency of a hyperinflationary economy), that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • Assets and liabilities for the statement of financial position are translated at the closing rate at balance date; • Income and expenses for each income statement and statement of comprehensive income are translated at average exchange rates; and • All resulting exchange differences are recognised in other comprehensive income. (d) Revenue recognition Revenue is recognised at a point in time when the customer obtains control of the goods (usually on delivery receipt) in accordance with the five‑step model under AASB 15: 1. C ontract can be identified; 2. P erformance obligations can be identified; 3. T he transaction price can be determined; 4. T he transaction price can be allocated; and 5. R ecognise revenue when the performance obligation is satisfied. Revenue is measured at the fair value of consideration received or receivable net of trade allowances and rebates. These adjustments are treated as variable consideration using the contractual terms, and are net settled against outstanding receivables. (e) Income tax (i) Income tax treatment The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company’s subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give risk to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. 3 S ummary of material accounting policies (continued) Notes to the Consolidated Financial Statements 83
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Notes to the Consolidated Financial Statements (continued) Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in the consolidated income statement, except to the extent that it relates to items recognised in other comprehensive income. In this case, the tax is also recognised in other comprehensive income. Where there are transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain, the Group recognises liabilities for uncertain tax positions in accordance with IFRS interpretation IFRIC 23. Each uncertain tax treatment is considered separately unless consideration together with one or more other uncertain tax treatments gives rise to a better prediction of the resolution of the uncertain treatments on examination by the relevant taxation authority. Where the final tax outcome of these matters is different from the amounts provided, such differences will impact the current and deferred tax provisions in the period in which such an outcome is obtained. (ii) Tax consolidation legislation Inghams Group Limited, the ultimate Australian controlling entity, and its subsidiaries, have implemented the tax consolidation legislation. Inghams Group Limited and its subsidiaries in the tax consolidated Group account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Group continues to be a stand‑alone taxpayer in its own right. In addition to its own current and deferred tax amounts, Inghams Group Limited, the ultimate Australian controlling entity, also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from subsidiaries in the tax consolidated Group. Assets or liabilities arising under tax funding arrangements within the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the Group. Under the tax funding arrangement the members of the tax consolidated Group compensate Inghams Group Limited for any current tax payable assumed, and are compensated by Inghams Group Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Inghams Group Limited. (f) Impairment of assets Assets are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non‑financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. (g) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short‑term and highly liquid investments with maturities of three months or less from inception date, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 3 S ummary of material accounting policies (continued) (e) Income tax (continued) 84 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (h) Trade receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment. Trade receivables are generally collected within 30 days of invoice date. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is calculated using an expected credit losses provision matrix. The provision matrix is based on the Group’s historical observed default rates, adjusted for forward looking estimates. The historical observed default rates are updated to reflect current and forecast credit conditions on each reporting date. Provisions for specific receivables are recognised in addition to the general provision originating from the expected credit losses matrix. The amount of the provision is recognised in the consolidated income statement within Administration and selling expenses. (i) Biological assets Biological assets are recognised at cost less accumulated depreciation. The fair value of biological assets cannot be reliably measured, as quoted market prices are not available and it is difficult to estimate the fair value based on the eventual sales price. Depreciation of breeder chickens occurs on an egg‑laying basis with the depreciation representing a portion of the egg cost and subsequently the day‑old broiler cost in the capitalised cost of broilers. Biological Assets approximately have up to a 70‑78 week age that changes on a daily basis. Biological assets are reclassified as inventory once processed. (j) Inventories Poultry, feed and other classes of inventories are stated at the lower of cost and net realisable value. Cost comprises all overheads except selling, distribution, general administration and interest. Net realisable value is the estimated selling price in the ordinary course of business less the estimate costs of completion and the costs necessary to make the sale. (k) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (i) Financial assets Initial recognition and measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus or minus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. Classification and subsequent measurement On initial recognition, a financial asset is classified as measured at: • Amortised cost; • Fair value through other comprehensive income (FVOCI) – debt investment; • Fair value through other comprehensive income (FVOCI) – equity investment; and • Fair value through profit or loss (FVTPL). Financial assets at fair value through profit or loss All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This category generally applies to all derivative financial assets. For more information on derivative financial instruments, refer to note 17. 3 S ummary of material accounting policies (continued) Notes to the Consolidated Financial Statements 85
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Notes to the Consolidated Financial Statements (continued) Loans and receivables A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: • It is held within a business model whose objective is to hold assets to collect contractual cashflows; and • Its contractual terms give rise on specified dates to cashflows that are solely payments of principal and interest on the principal amount outstanding. This category generally applies to trade and other receivables. For more information on receivables, refer to note 8. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Group’s consolidated statement of financial position) when: • The rights to receive cash flows from the asset have expired; or • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass‑through’ arrangement; and either: (a) t he Group has transferred substantially all the risks and rewards of the asset; or (b) t he Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. (ii) Financial liabilities Initial recognition and measurement Financial liabilities are classified as measured at amortised cost, FVTPL or as derivatives designated as hedging instruments in an effective hedge, as appropriate. A financial liability is classified as at FVTPL if it is classified as held for trading, it is a derivative or it is designated as such as initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. The Group’s financial liabilities include trade and other payables, borrowings and derivative financial instruments. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss. (iii) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. 3 S ummary of material accounting policies (continued) (k) Financial instruments (continued) 86 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (l) Derivatives and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as either: • Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges); or • Hedges of a particular risk associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions (cash flow hedges). The Group documents at the inception of the hedging transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. The fair values of various derivative financial instruments used for hedging purposes are disclosed in note 17. Movements in the hedging reserve in shareholders’ equity are shown in note 20(a). The full fair value of a hedging derivative is classified as a non‑current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. (i) Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in reserves in equity. Amounts accumulated in equity are reclassified to the comprehensive income statement in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognised in profit or loss within ‘finance costs’. The gain or loss relating to the effective portion of forward foreign exchange contracts hedging export sales is recognised in profit or loss within ‘sales’. However, when the forecast transaction that is hedged results in the recognition of a non‑financial asset, the gains and losses previously deferred in equity are reclassified from equity and included in the initial measurement of the cost of the asset. The deferred amounts are ultimately recognised in profit or loss as cost of goods sold in the case of inventory, or as depreciation or impairment in the case of fixed assets. When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss. The Group may also enter into derivative contracts in order to hedge the translation of results of its New Zealand business. As this result is an uncertain amount at the date the derivative is entered into, it is not eligible for designation as a hedging instrument under Australian Accounting Standards, and as such any applicable contracts are measured at fair value through profit or loss, with gains or losses being recognised in profit or loss in the period incurred. (m) Property, plant and equipment Freehold land and buildings are shown at fair value based on formal periodic valuations (with sufficient regularity to ensure materially accurate valuations reflected) by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. 3 S ummary of material accounting policies (continued) Notes to the Consolidated Financial Statements 87
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Notes to the Consolidated Financial Statements (continued) Land is not depreciated. Depreciation on other assets is calculated using the straight‑line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows: Freehold land and buildings and leasehold buildings 3 – 5 0 years Plant and equipment 1 – 2 0 years Leased plant and equipment 5 – 1 5 years The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. As asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss. When revalued assets are sold, it is Group policy to transfer any amounts included in other reserves in respect of those assets to retained earnings. (n) Leases Leases are recognised as a right‑of‑use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right‑of‑use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight‑line basis. (i) Lease Liability Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • fixed payments (including in‑substance fixed payments), less any lease incentives receivable; • amounts expected to be payable by the lessee under residual value guarantees; • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. (ii) Right‑of‑use assets Right‑of‑use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability; • any lease payments made at or before the commencement date less any lease incentives received; • any initial direct costs; and • restoration costs. (iii) Depreciation expense Depreciation is calculated on a straight‑line basis on the right‑of‑use asset over the term of each lease. In line with Group’s policy of classifying expenses by function, depreciation is included within the elements of Operating Profit as appropriate. 3 S ummary of material accounting policies (continued) (m) Property, plant and equipment (continued) 88 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (iv) Extension and termination options Land and building lease agreements are typically entered for fixed periods of 5 to 20 years, with some leases for periods of 30 years. Extension and termination options are included in a number of these leases across the Group. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Management’s assessment is that lease options cannot be reasonably certain and are therefore excluded in the calculation of the lease liability. Contract Growers have a set expiry date after which the lease continues indefinitely until either party gives 12 months’ notice to terminate. As Inghams continues to review the company’s strategic objectives, a number of Chicken Contract Growers have already moved to performance‑based agreements. More are expected in the future. Turkey Contract Growers have had a notice of termination provided on the existing contract. A new agreement is in discussion with the growers. The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the Group. (v) Practical expedients applied The Group has used the following practical expedients permitted by the standard: • the use of a single discount rate to a portfolio of leases with reasonably similar characteristics; • the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease; • payments associated with short‑term leases and leases of low‑value assets are recognised on a straight‑line basis as an expense in the income statement. Short‑term leases are leases with a lease term of 12 months or less. (vi) Short‑term leases exempt from recognition under AASB 16 Leases All short‑term leases (less than 12 months), low value or performance based leases are recognised under AASB 16 Leases but not disclosed on balance sheet. These leases continue to be recognised in the Profit and Loss as an operating lease expense. (o) Investments Investments in subsidiaries and joint venture entities are accounted for at cost. Dividends received from subsidiaries and joint venture entities are recognised in the parent entity’s profit, rather than being deducted from the carrying amount of these investments. (p) Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of financial period which are unpaid. The amounts are unsecured and are usually paid within 45 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. Supplier finance arrangements are used to facilitate early payment to suppliers via third‑party financial institutions. These arrangements do not alter the original contractual terms with suppliers and are presented within trade and other payables in the statement of financial position. The Group monitors the impact of these arrangements on liquidity and funding concentration risk. (q) Interest bearing liabilities Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. 3 S ummary of material accounting policies (continued) (n) Leases (continued) Notes to the Consolidated Financial Statements 89
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Notes to the Consolidated Financial Statements (continued) Borrowings are removed from the consolidated statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non‑cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs. Borrowings are classified as current liabilities unless the Group has the right to defer settlement of the liability for at least 12 months after the end of the reporting period and the right has substance. This classification is assessed in accordance with AASB 101 Presentation of Financial Statements , including consideration of covenant compliance and the timing of covenant testing. Where the Group is in compliance with covenants and retains the right to defer repayment, borrowings are classified as non‑current. Borrowing costs incurred for the construction of any qualifying assets are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed as incurred. (r) Provisions Provisions for make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of each reporting period. The discount rate used to determine the present value is a pre‑tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Workers compensation provisions are determined by actuarial assessment every financial period. The provision represents the expected liability of the entity in relation to each state’s self‑insurance licence. (s) Employee benefits (i) Short‑term obligations Liabilities for wages and salaries, including non monetary benefits and annual leave expected to be settled wholly within 12 months after the end of the reporting period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave is presented as provision for employee benefits. All other short‑term employee benefit obligations are presented as payables. (ii) Other long‑term employee benefit obligations The liabilities for long service leave which are not expected to be settled wholly within 12 months after the end of the reporting period in which the employees render the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. The obligations are presented as current liabilities in the consolidated statement of financial position if the entity does not have the right to defer settlement for at least 12 months after the end of the reporting period and the right has substance, regardless of when the actual settlement is expected to occur. (iii) Share‑based payments Share‑based compensation benefits are provided to executives and select key management under Long‑Term Incentive Plans. The fair value of shares granted under Long‑Term Incentive Plans are recognised as an employee benefits expense with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the shares. The total amount to be expensed is determined by reference to the fair value of the shares granted, which includes any market performance conditions and the impact of any non‑vesting conditions but excludes the impact of any service and non‑market performance vesting condition. 3 S ummary of material accounting policies (continued) (q) Interest bearing liabilities (continued) 90 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) Non‑market vesting conditions are included in assumptions about the number of shares that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares that are expected to vest based on the non‑market vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. Where such adjustments results in a reversal of previous expenses these are recognised as a credit to profit and loss in the period that it is assessed that certain vesting conditions will not be met. (iv) Short‑term incentive scheme The Group recognises a certain liability and expense for bonuses based on a formula that takes into consideration financial and non‑financial outcomes of the Group. (t) Contributed equity Ordinary shares are classified as equity. (u) Dividends Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period. (v) Government grants The Group initially recognises government grants related to assets as deferred income at fair value if there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant. Grants related to the acquisition of assets are recognised as a reduction upfront in the fair value of the fixed asset to which they relate and a reduction in depreciation expense over the useful life of the asset. (w) Goods and services tax (GST) Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position. Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. (x) Rounding of amounts The Company is of a kind referred to in Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with that Instrument to the nearest hundred thousand dollars except where otherwise stated. (y) Parent entity The financial information for the parent entity, Inghams Group Limited, has been prepared on the same basis as the consolidated financial statements. 3 S ummary of material accounting policies (continued) (s) Employee benefits (continued) Notes to the Consolidated Financial Statements 91
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Notes to the Consolidated Financial Statements (continued) 4 S egment information Description of segments Inghams operations are all conducted in the feed and poultry industry in Australia and New Zealand. The Group has identified its operating segments based on the internal reports that are reviewed and used by the CEO (the chief operating decision maker) in assessing performance and in determining the allocation of resources. The Group’s operations in Australia and New Zealand are each treated as individual operating segments. The CEO monitors the operating results of business units separately, for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation (EBITDA). Inter‑segment pricing and inter segment revenue is generated from a royalty charge for the services provided by the Australian operation. Two customers generated revenue in excess of 10% of Group revenue (2024: Two). Allocations of assets and liabilities are not separately identified in internal reporting so are not disclosed in this note. Australia 2025 $000 New Zealand 2025 $000 Consolidated 2025 $000 Poultry 2,512,000 458,500 2,970,500 Feed 128,100 53,800 181,900 Total revenue from contracts with customers 2,640,100 512,300 3,152,400 Other income – 100 100 Inter segment revenue/(expense) 14,000 (14,000) – 2,654,100 498,400 3,152,500 Cost of sales (2,035,200) (373,100) (2,408,300) Distribution (15 7, 30 0) (35,300) (192,600) Administration and selling (134,100) (26,000) (160,100) Share of net profit of joint venture 700 – 700 EBITDA 328,200 64,000 392,200 Depreciation and amortisation (182,900) EBIT 209,300 Net finance costs (82,400) Profit before tax 126,900 Excluded from Underlying Significant items 3,600 6,600 10,200 Underlying EBITDA 331,800 70,600 402,400 EBITDA AASB 16 (148,100) (17,900) (166,000) EBITDA Pre AASB 16 183,700 52,700 236,400 Australia 2025 $000 New Zealand 2025 $000 Consolidated 2025 $000 Total capital expenditure and acquisitions* 71,100 64,300 135,400 Total property, plant and equipment 581,000 145,900 726,900 Total impairment losses (trade receivables) (1,200) – (1,200) Total impairment losses (inventory) 18,000 1,700 19,700 * T otal includes assets and working capital acquired as part of the Bostock acquisition ($31.3 million). 92 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) Australia 2024 $000 New Zealand 2024 $000 Consolidated 2024 $000 Poultry 2,615,700 439,600 3,055,300 Feed 144,400 62,300 206,700 Total revenue from contracts with customers 2,760,100 501,900 3,262,000 Other income 100 200 300 Inter segment revenue/(expense) 13,000 (13,000) – 2,773,200 489,100 3,262,300 Cost of sales (2,081,800) (336,800) (2,418,600) Distribution (156,300) (39,100) (195,400) Administration and selling (158,100) (20,000) (178,100) Share of net profit of associate 900 – 900 EBITDA 377,900 93,200 471,100 Depreciation and amortisation (244,300) EBIT 226,800 Net finance costs (83,600) Profit before tax 143,200 Excluded from Underlying Significant items (2,100) 2,200 100 Underlying EBITDA 375,800 95,400 471,200 EBITDA AASB 16 (182,500) (48,600) (231,100) EBITDA Pre AASB 16 193,300 46,800 240,100 Australia 2024 $000 New Zealand 2024 $000 Consolidated 2024 $000 Total capital expenditure and acquisitions* 142,500 23,200 165,700 Total property, plant and equipment 507,90 0 86,400 594,300 Total impairment losses (trade receivables) 1,500 – 1,500 Total impairment losses (inventory) 17,4 0 0 2,600 20,000 * T otal Capital expenditure includes assets acquired as part of the Bolivar acquisition ($76.0 million) and Bromley Park acquisition ($4.5 million) 4 S egment information (continued) Description of segments (continued) Notes to the Consolidated Financial Statements 93
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Notes to the Consolidated Financial Statements (continued) 5 O ther income and expenses (a) Other income and expenses 2025 $000 2024 $000 Rent and other income 100 300 Other items 100 300 (b) Expenses Depreciation and amortisation Depreciation 182,600 244,300 Amortisation 300 – Depreciation and amortisation 182,900 244,300 Employee benefits expense Employee benefits expense 697, 80 0 676,100 Defined super contributions 59,300 54,000 Share‑based payment expense 5,200 4,900 Employee benefits expense 762,300 735,000 Impairment (reversals)/losses Trade receivables (1,200) 1,500 Inventories 19,700 20,000 Impairment losses 18,500 21,500 Impairment losses/(reversals) on trade receivables, including amounts written off and amounts provided for, are recognised within administration and selling expenses. Impairment losses on inventories, including amounts written off and amounts provided for, are recognised within cost of sales. In FY25, the reversal relates to a debtor provided for in the prior year that was partially received with the balance written off. (c) Finance income and costs Lease financing interest expense 42,000 55,300 Interest and borrowing costs 41,200 30,200 Unwind of discount 1,000 300 Amortisation of borrowing costs 1,200 800 Interest income (3,000) (3,000) Finance income and costs 82,400 83,600 Included within interest and borrowing costs is interest related to the inventory procurement trade payable of $5.4 million (FY24: $6.8 million). 94 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 6 I ncome tax expense (a) Income tax expense 2025 $000 2024 $000 Current tax 36,800 53,200 Deferred tax 3,000 (8,600) Adjustments for current tax of prior periods (2,700) (2,900) Income tax expense 37,100 41,700 (b) Numerical reconciliation of income tax expense to prima facie tax payable Profit from continuing operations before income tax expense 126,900 143,200 Tax at the Australian tax rate of 30% (2024 – 30%) 38,100 43,000 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Non‑deductible expenses (100) (500) Prior period adjustments (300) – Revaluation of inventory tax base in associate (200) (200) 37,500 42,300 Difference in overseas tax rates (400) (600) Income tax expense 37,100 41,700 (c) Deferred taxes The movements in deferred tax balances for the Group are shown in the tables below: Opening balance $000 Charged to income $000 Charged to equity $000 Acquired in business combinations $000 Closing balance $000 2025 Doubtful debts 1,000 (700) – – 300 Employee benefits 28,000 600 – 100 28,700 Inventories (34,900) 1,000 – – (33,900) Accruals 6,000 (3,500) – 200 2,700 Property, plant and equipment (20,800) 1,800 (17,90 0) (4,600) (41,500) AASB 16 – Right‑of‑use assets (306,600) 66,900 – (600) (240,300) AASB 16 – Lease liabilities 342,400 (68,700) – 600 274,300 Intangible assets – – – (1,200) (1,200) Provisions 4,100 1,400 – – 5,500 Make good 900 (200) – – 700 Cash flow hedges – 800 – – 800 Business related costs amortised over 5 years 500 (100) – – 400 Deferred income 2,300 (2,300) – – – Net deferred tax assets/(liabilities) 22,900 (3,000) (17,900) (5,500) (3,500) Notes to the Consolidated Financial Statements 95
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Notes to the Consolidated Financial Statements (continued) Opening balance $000 Charged to income $000 Charged to equity $000 Acquired in business combinations $000 Closing balance $000 2024 Doubtful debts 700 300 – – 1,000 Employee benefits 26,500 1,500 – – 28,000 Inventories (34,700) (200) – – (34,900) Accruals 4,700 1,300 – – 6,000 Property, plant and equipment (22,000) 1,200 – – (20,800) AASB 16 – Right‑o f‑u se assets (37 7,60 0) 71,000 – – (306,600) AASB 16 – Lease liabilities 411,700 (69,300) – – 342,400 Provisions 3,200 900 – – 4,100 Make good 800 100 – – 900 Cash flow hedges (100) 100 – – – Business related costs amortised over 5 years 100 400 – – 500 Deferred income 1,000 1,300 – – 2,300 Net deferred tax assets/(liabilities) 14,300 8,600 – – 22,900 7 C ash and cash equivalents 2025 $000 2024 $000 Cash at bank and on hand 106,100 110,400 Short‑term deposits 300 300 Cash and cash equivalents 106,400 110,700 Short‑term deposits are presented as cash equivalents as they have a maturity of less than three months. 8 T rade and other receivables 2025 $000 2024 $000 Trade receivables 259,200 221,000 Provision for doubtful debts (1,200) (3,600) Net trade receivables 258,000 217,400 Other receivables 8,300 10,800 Prepayments 21,300 5,900 Trade and other receivables 287,600 234,100 Movement in the provision for doubtful debts: At start of period (3,600) (2,100) Impairment expense reversed/(recognised) during the year 1,200 (1,500) Receivables written off during the year as uncollectable 1,200 – Balance at end of period (1,200) (3,600) 6 I ncome tax expense (continued) (c) Deferred taxes (continued) 96 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) Due to the short‑term nature of current receivables, their carrying amount is assumed to approximate their fair value. The Group has considered the collectability and recoverability of trade receivables. A provision for doubtful debts is calculated using an expected credit losses provision matrix. The provision matrix is based on the Group’s historical observed default rates, adjusted for forward looking estimates. The historical observed default rates are updated to reflect current and forecast credit conditions on each reporting date. Provisions for specific receivables are recognised in addition to the general provision originating from the expected credit losses matrix. Inghams continues to execute a variety of different credit management strategies to mitigate credit risk and collect cash. 2025 $000 2024 $000 Current 246,300 214,100 1 to 30 days 7,70 0 2,500 31 to 60 days 1,500 700 61 to 90 days 900 – 90+ days 1,600 100 Impaired (provision for doubtful debts) 1,200 3,600 Trade receivables 259,200 221,000 9 B iological assets 2025 $000 2024 $000 Breeder 56,600 54,900 Broiler 93,800 92,800 Eggs 16,500 15,800 Biological assets 166,900 163,500 All movements in the value of biological asset classes are due to purchases and consumption in the ordinary course of business. The Group is exposed to a number of risks relating to its biological assets: (i) Regulatory and environmental risk The Group is subject to laws and regulations in the countries in which it operates. The Group has established environmental policies and procedures aimed at compliance with local environmental and other laws. (ii) Climate and other risks The Group’s biological assets are exposed to the risk of damage from climatic changes, diseases and other natural forces. The Group has extensive processes in place aimed at monitoring and mitigating those risks, including regular health inspections. The Group is also insured against natural disasters. 8 T rade and other receivables (continued) Notes to the Consolidated Financial Statements 97
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Notes to the Consolidated Financial Statements (continued) 10 In ventories 2025 $000 2024 $000 Processed Poultry 162,800 140,600 Feed 46,300 55,100 Other 53,200 52,000 Inventories (gross) 262,300 247,700 Inventory obsolescence provision (10,400) (10,200) Inventories 251,900 237,500 Inventory is assessed for excess or slow moving stock, stock sold below cost and other indicators of obsolescence in calculating inventory obsolescence provision. Other inventories include medication, packaging and consumables. Movement in the provision for inventory obsolescence provision At start of period (10,200) ( 7,70 0) Inventory written‑off during the year 19,700 20,000 Impairment expense recognised during the year (19,900) (22,500) Balance at end of period (10,400) (10,200) (i) Measurement Basis Inventories are measured at the lower of cost and net realisable value. The cost of inventories is determined using the weighted average method and includes all costs of purchase, conversion, and other costs incurred in bringing the inventories to their present location and condition. (ii) Expense Recognition The amount of inventories recognised as an expense during the period was $1,143,600,000 which is included in cost of sales. 11 A ssets Held for Sale 2025 $000 2024 $000 Assets held for sale 1,300 – During the year ended 28 June 2025, the Group classified a parcel of land as held for sale. The asset is available for immediate sale in its present condition and management is committed to a plan to sell the asset within the next 12 months. The asset was revalued as part of the revaluation of Land and Buildings as detailed in note 12 Property, Plant and Equipment. Upon designation as held for sale an estimation was made for selling costs, and the land has been presented at fair value less costs to sell being $1.3 million. The asset is presented within current assets in the statement of financial position under “Assets held for sale.” The sale is expected to be completed in FY26. 98 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 12 P roperty, plant and equipment Freehold land $000 Freehold buildings $000 Leasehold improvements $000 Plant and equipment $000 Capital work in progress $000 Total $000 2025 Cost Opening balance 70,400 150,500 14,800 778,300 58,400 1,072,400 Additions* 5,800 21,700 – 5,200 101,900 134,600 Transfers (5,400) 10,600 200 73,600 (79,000) – Assets held for sale (1,300) – – – – (1,300) Revaluations 7,50 0 38,900 – – – 46,400 Disposals – – – (200) – (200) Exchange differences 100 200 100 1,800 100 2,300 Closing balance 77,100 221,900 15,100 858,700 81,400 1,254,200 Accumulated Depreciation Opening balance – (10,100) ( 7,4 0 0) (460,600) – (478,100) Depreciation charge – ( 7,4 0 0) (900) (53,300) – (61,600) Revaluations – 13,600 – – – 13,600 Disposals – – – 100 – 100 Exchange differences – – – (1,300) – (1,300) Closing balance – (3,900) (8,300) (515,100) – (527,300) Net book value 77,100 218,000 6,800 343,600 81,400 726,900 2024 Cost Opening balance 47,50 0 96,100 14,000 694,100 62,800 914,500 Additions 22,800 52,400 800 1,200 76,300 153,500 Business acquisition – – – 4,500 – 4,500 Transfers 100 2,000 – 78,600 (80,700) – Impairment – – – (100) – (100) Closing balance 70,400 150,500 14,800 778,300 58,400 1,072,400 Accumulated Depreciation Opening balance – (5,700) (6,400) (408,600) – (420,700) Depreciation charge – (4,400) (1,000) (52,100) – (57,500) Disposals – – – 100 – 100 Closing balance – (10,100) (7,400) (460,600) – (478,100) Net book value 70,400 140,400 7,400 317,700 58,400 594,300 * I ncluded within additions is the Bostock acquisition ($31.3 million) of which $30.5 million relates to Property, Plant and Equipment. The valuation basis of freehold land and buildings is fair value being the amounts for which the assets could be exchanged between willing parties in an arm’s length transaction, based on current prices in an active market for similar properties in the same location and condition. Independent valuations are performed every three years and during the financial year ended 28 June 2025, the Group revalued its land and buildings portfolio in June 2025. The valuations were based on fair value, determined using market‑based evidence and relevant valuation techniques. The revaluation resulted in an increase in the carrying amount of land and buildings by $60.2 million effective 28 June 2025. The corresponding increase in equity was recognised in the Asset Revaluation Reserve (ARR) within other comprehensive income. Notes to the Consolidated Financial Statements 99
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Notes to the Consolidated Financial Statements (continued) 13 R ight‑of‑use assets Land and Buildings $000 Contract Growers $000 Equipment and Motor Vehicle $000 Total $000 2025 Balance at 30 June 2024 776,400 240,200 15,100 1,031,700 Additions 22,300 15,700 10,500 48,500 Disposals – (152,400) – (152,400) Depreciation (62,300) (51,500) ( 7,20 0) (121,000) Net foreign currency movement 1,800 100 300 2,200 Balance at 28 June 2025 738,200 52,100 18,700 809,000 Land and Buildings $000 Contract Growers $000 Equipment and Motor Vehicle $000 Total $000 2024 Balance at 26 June 2023 811,500 446,000 18,100 1,275,600 Additions 65,500 73,700 3,200 142,400 Disposals (37,4 0 0) (159,600) – (197 ,000) Depreciation (62,700) (121,000) (6,200) (189,900) Net foreign currency movement (500) 1,100 – 600 Balance at 29 June 2024 776,400 240,200 15,100 1,031,700 Extension options are included in the measurement of the right‑of‑use assets and lease liabilities once the Group is reasonably certain to exercise those options. 2025 $000 2024 $000 Variable lease payments not included in the measurement of lease liabilities 226,400 151,400 Expenses relating to low value leases 6,600 6,500 Total 233,000 157,900 The total cashflow payments related to leases in FY25 was $384,200,000 (FY24: $386,100,000). 14 T rade and other payables 2025 2024 Current $000 Non‑Current $000 Total $000 Current $000 Non‑Current $000 Total $000 Trade payables 341,200 – 341,200 259,400 200 259,600 Inventory procurement trade payable 103,600 – 103,600 128,500 – 128,500 Other payables 35,100 – 35,100 38,200 – 38,200 Trade and other payables 479,900 – 479,900 426,100 200 426,300 The Group has an inventory procurement trade payable with a third party financial institution, which is interest bearing. Trade bills of exchange are paid by the financial institution direct to the supplier on a weekly basis and the Group settles the payable on extended payment terms of 63 days. The financial institution will pay suppliers within their terms and the Group has extended payment terms in which we pay with the third party. The amount utilised and recorded within trade and other payables at 28 June 2025 was $103.6 million (29 June 2024: $128.5 million). This entire amount has been paid by the financial institution and received by our suppliers. Cash flows related to supplier finance arrangements are classified as operating activities in the statement of cash flows. There have been no changes in classification due to these arrangements. The Group does not have any comparable commodity suppliers that are not paid through this method. 100 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 15 B orrowings (a) Interest bearing loans CARRYING AMOUNT PRINCIPAL AMOUNT DRAWN 2025 $000 2024 $000 2025 $000 2024 $000 Interest rate Maturity Unsecured liabilities Tranche A(b) 238,300 198,700 240,000 200,000 Floating rate(a) November 2029 Tranche B(b) 199,300 199,900 200,000 200,000 Floating rate(a) November 2027 Tranche C(b) – 60,000 – 60,000 Floating rate(a) November 2029 Tranche D(b) 99,200 – 100,000 – Floating rate(a) November 2027 Borrowings 536,800 458,600 540,000 460,000 (a) F loating rates are at Bank Bill Swap Rate plus a predetermined margin. The Group has entered into hedging of the floating interest rate, as further described in note 24. Tranche A, Tranche B and Tranche D are fully drawn as at 28 June 2025 and Tranche C is not drawn. (b) C urrency is in AUD. (b) Fair value For external borrowings, the fair values are not materially different to their carrying amounts, since the interest payable on the borrowings is either close to current market rates or the borrowings are of a short‑term nature. The Group has entered into interest rate swaps in relation to the interest payable. (c) Refinance During the year ended 28 June 2025, the Group refinanced its existing syndicated finance agreement. The refinanced facility remains classified as a Sustainability Linked Loan Facility. The facility comprises four tranches as detailed in table (a) above. (d) Classification and Covenant Compliance The Group’s unsecured bank loans for Tranches A, B, C and D are all subject to various covenants that need to be complied with within 12 months of the reporting date. The Group’s covenant measurements are interest cover ratio, gearing ratio, guarantee Group gross asset ratio and guarantee Group EBITDA ratio. The entities in the guarantee group are shown as (c) in note 23. The covenants are tested semi‑annually at half‑year and year end. Financial statements supporting covenant compliance are due to the bank within 90 days after half‑year and 120 days after year end. The most recent covenant test was performed as at 28 June 2025. The Group was in full compliance with all covenants at that date. The Group continues to monitor covenant compliance and expects to remain in compliance within 12 months after the reporting date. Notes to the Consolidated Financial Statements 101
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Notes to the Consolidated Financial Statements (continued) 16 P rovisions 2025 2024 Current $000 Non‑Current $000 Total $000 Current $000 Non‑Current $000 Total $000 Workers compensation 10,500 23,600 34,100 11,800 21,800 33,600 Employee benefits 89,300 6,900 96,200 87 ,000 6,500 93,500 Make good 400 2,000 2,400 200 2,100 2,300 Onerous contracts 600 6,400 7 ,000 500 6,800 7, 30 0 Restructuring 1,400 – 1,400 – – – Other provisions 1,100 – 1,100 4,600 – 4,600 Provisions 103,300 38,900 142,200 104,100 37,200 141,300 (a) Workers compensation Workers compensation provisions are determined by actuarial assessment by Mr William Szuch Bsc, BA, MBA, FIA, FIAA Principal of WSA Financial Consulting Pty Limited and Mr Bruce Harris, BEng(Hons) FIAA Consultant of AM actuaries, considering the liability for reported claims still outstanding, settled claims that may be reopened in the future, claims incurred but not reported as at balance date and a provision for future expenses, adjustments for claims cost escalation and investment earnings on the claims provision. (b) Employee benefits The provisions for employee benefits comprises of annual leave, long service leave and sick leave entitlements. (c) Make good provision The Group is required to restore certain leased premises to their original condition at the end of the respective lease terms. A provision has been recognised for the present value of the estimated expenditure required to remove leasehold improvements. (d) Onerous contracts The onerous provision relates to the remaining obligations for the Cleveland lease that have been reassigned to a new tenant for the remainder of the lease term. (e) Restructuring provision Provisions for restructuring are recognised when a detailed formal plan has been approved and either commenced or a valid expectation has been raised to those persons affected. The provision is based on expenditure to be incurred which is directly caused by the restructuring and does not include costs associated with ongoing activities. The adequacy of the provision is reviewed regularly and adjusted if required. Revisions in the estimated amount of a restructuring provision are reported in the period in which the revision in the estimate occurs. 102 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (f) Movements Movements in each class of provision during the financial year, are set out below: Workers Compensation $000 Employee Benefits $000 Make good $000 Onerous Contracts $000 Restructuring $000 Other $000 Total $000 Balance at 25 June 2023 32,200 88,500 2,800 7,900 200 4,200 135,800 Charged to profit or loss 24,400 106,400 800 300 – 400 132,300 Amounts used during the period (23,000) (101,400) (1,300) (1,200) (200) – (127,10 0) Unwind of discount – – – 300 – – 300 Balance at 29 June 2024 33,600 93,500 2,300 7,300 – 4,600 141,300 Balance at 30 June 2024 33,600 93,500 2,300 7,300 – 4,600 141,300 Charged to profit or loss 17, 30 0 70,900 500 200 1,900 4,500 95,300 Amounts used during the period (17,70 0) (68,200) (400) (600) (500) (8,000) (95,400) Unwind of discount 900 – – 100 – – 1,000 Balance at 28 June 2025 34,100 96,200 2,400 7,000 1,400 1,100 142,200 17 D erivative financial instruments The Group has the following derivative financial instruments: 2025 2024 Current $000 Non‑Current $000 Total $000 Current $000 Non‑Current $000 Total $000 Interest rate swap contracts – Cash flow hedges (asset) – – – 1,200 600 1,800 – Cash flow hedges (liability) (1,500) (3,700) (5,200) – – – Forward foreign exchange contracts – Cash flow hedges (asset) – – – 500 – 500 – Cash flow hedges (liability) (1,100) – (1,100) – – – Derivative financial instruments (2,600) (3,700) (6,300) 1,700 600 2,300 Classification of derivatives Derivatives are classified as held for trading and accounted for at fair value through profit or loss unless they are designated as hedges. They are presented as current assets or liabilities if they are expected to be settled within 12 months after the end of the reporting period. The Group’s accounting policy for its cash flow hedges is set out in note 3(l). For hedged forecast transactions that result in the recognition of a non‑financial asset, the Group has elected to include related hedging gains and losses in the initial measurement of the cost of the asset. 16 P rovisions (continued) Notes to the Consolidated Financial Statements 103
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Notes to the Consolidated Financial Statements (continued) 18 E quity Contributed equity (a) Share capital 2025 Shares 2024 Shares 2025 $000 2024 $000 Ordinary shares issued 371,679,601 371,679,601 109,300 109,300 (b) Movements in ordinary shares Shares $000 Balance at 25 June 2023 371,679,601 109,300 Balance at 29 June 2024 371,679,601 109,300 Balance at 30 June 2024 371,679,601 109,300 Balance at 28 June 2025 371,679,601 109,300 (c) Ordinary shares Ordinary shares entitle the holder to participate in dividends and to share the proceeds on winding up of the company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. Ordinary shares have no par value and the company does not have a limited amount of authorised capital. 19 Di vidends (a) Ordinary shares 2025 $000 2024 $000 Dividends paid 70,600 81,800 The Directors declared a final dividend of 8.0 cents per ordinary share on 22 August 2025 payable on 1 October 2025. The FY25 final dividend will be fully franked for Australian tax purposes. The financial effect of this dividend has not been brought to account in these consolidated financial statements and will be recognised in subsequent financial reports. (b) Franking credits 2025 $000 2024 $000 Amount of Australian franking credits available for subsequent periods to the shareholders of Inghams Group Limited 18,100 4,500 The ability to utilise the franking credits is dependent upon the ability to declare dividends in the future. Franking credits of $16.4 million (2024: $16.4 million), not included above, are only available to be used under very limited and specific circumstances. These credits relate to the period when the former shareholder TPG was treated as an exempting entity with greater than 95% foreign ownership and can only be used by TPG and member holding eligible employee shares. 104 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 20 R eserves (a) Other reserves 2025 $000 2024 $000 Asset revaluation reserve 60,000 17,70 0 Foreign currency translation reserve 9,800 7 ,000 Cash flow hedge reserve (5,900) 4,200 Share‑based payments reserve 19,800 16,600 Other reserves 83,700 45,500 Movements: Asset revaluation reserve Balance at beginning of financial year 17,70 0 17,70 0 Revaluation of land and buildings 60,200 – Deferred tax (17,90 0) – Balance at end of the financial year 60,000 17,700 Foreign currency translation reserve Balance at beginning of financial year 7 ,000 8,400 Currency translation differences arising during the year 2,800 (1,400) Balance at end of the financial year 9,800 7,000 Cash flow hedge reserve Balance at beginning of financial year 4,200 9,100 Balance reclassified to profit and loss in year (4,000) (8,800) Revaluation – gross (6,100) 3,900 Balance at end of the financial year (5,900) 4,200 Share‑based payments reserve Balance at beginning of financial year 16,600 12,200 Share‑based payment expense 5,200 4,800 Settlement of share plan (2,000) (400) Balance at end of the financial year 19,800 16,600 (b) Nature and purpose of other reserves (i) Asset revaluation reserve The asset revaluation reserve is used to record increments and decrements on the revaluation of non‑current assets, as described in note 12. The balance of the reserve may be used to satisfy the distribution of bonus shares to shareholders and is only available for the payment of cash dividends in limited circumstances as permitted by law. Upon sale of the asset, the balance relating to that asset is transferred to retained earnings. (ii) Foreign currency translation Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described in note 3(c) and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of. (iii) Cash flow hedges The hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that are recognised in other comprehensive income, as described in note 3(l). Amounts are reclassified to profit or loss when the associated hedged transaction affects profit or loss. (iv) Share‑based payments The share‑based payments reserve is used to recognise the grant date fair value of shares issued to employees but not vested. Notes to the Consolidated Financial Statements 105
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Notes to the Consolidated Financial Statements (continued) 21 S hare‑based payments Inghams Employees Share Plan Executive KMP and senior management are invited annually to participate in a three‑year Long‑Term Incentive Plan (LTIP), awarded in share rights with these share rights being performance based and only vesting if minimum performance hurdles are met. The share rights do not attract voting rights or entitle the holder to receive dividends. In addition, Executive KMP and certain senior executives have a portion of any actual Short‑Term Incentive Plan (STIP) award deferred into share rights, that are required to be held for a period of 12 months before vesting into shares. No performance conditions exist for these share rights to vest as they are time‑based vesting on the completion of the service period. The terms and conditions for the rights are the same for all participants and consistent year‑on‑year. Share rights outstanding at the end of the year have the following expiry dates: Grant Date Expiry Date 2025 Number of rights 2024 Number of rights 15 November 2024 01 July 2027 2,176,233 – 15 September 2024 15 September 2025 429,866 – 21 February 2024 1 July 2026 1,736,553 1,927, 8 49 15 September 2023 15 September 2024 – 295,525 21 June 2023 1 July 2025 2,023,413 2,144,169 17 November 2022 22 August 2025 367,015 367,015 27 September 2022 22 August 2025 193,830 193,830 05 November 2021 1 July 2024 – 1,220,769 6,926,910 6,149,157 STIP Offer The STIP provides the Executive KMP and other senior members of the management team a cash or cash/equity incentive where specific outcomes have been achieved in the financial year. STIP payments are calculated as a percentage of Total Fixed Remuneration, as per contractual arrangements and conditional on achieving performance objectives against key financial measures (Underlying pre AASB 16 EBITDA), three non‑financial measures (People Safety, Food Safety and Water Consumption), and the individual’s overall performance to the achievement of the Group’s strategic objectives. 106 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) Long‑Term Incentive Plans FY25‑FY27 LTIP Offer The FY25‑FY27 LTIP Offer has been made to the following FY25 Executive KMP, receiving shareholder approval of 96.33% at the 2024 AGM. The below table outlines the key terms of the Offer: Eligibility to participate in LTIP Offer Offers may be made at the Board’s discretion to employees of Inghams. The FY25‑FY27 LTIP Offer has been made to the following FY25 Executive KMP: • Andrew Reeves (CEO/MD), (75% of TFR at Target and 150% of TFR at Maximum); and • Gary Mallett (CFO), (35% of TFR at Target and 70% of TFR at Maximum). The Threshold performance conditions are used to calculate the Target LTIP value, this is used to determine the Target Total Remuneration. Grant of Rights The LTIP Offer is a grant of performance rights. A Right entitles the participant to acquire an Inghams share for nil consideration at the end of the performance period, subject to meeting specific performance conditions. The Board retains the discretion to make a cash payment to participants on vesting of the Rights in lieu of an allocation of shares. Currently there is no expectation to settle as a cash payment. Quantum of Rights The aggregate face value at Maximum of the LTIP Offer to all participants (Executive KMP and Senior Management) is $7.4 million. The final number of Rights awarded to each participant was calculated by dividing the face value of their maximum LTIP award by $3.0819, being the volume weighted average price (VWAP) of Inghams shares traded on the ASX in the 10 days after 23 August 2024 (the announcement date of Inghams FY24 annual results). Performance Period Three years, commencing on 30 June 2024 and ending on or about 1 July 2027. Performance conditions Relative TSR (50% of Award) For this component, the Company’s relative TSR will be compared to a comparator group comprising the ASX Small Ordinaries and vest according to the following schedule: Company’s relative TSR rank in the comparator group over performance period % of Rights that Vest Less than 50th percentile Nil At 50th percentile (threshold) 50% Between 50th and 75th percentile Straight line pro rata Vesting between 50% and 100% At 75th percentile or above 100% Return on Invested Capital (50% of award) For this component, the Company’s Underlying pre AASB 16 Return on Invested Capital (“ROIC”) will be calculated as the equivalent of Net Operating Profit after Tax (“NOPAT”) divided by average Invested Capital (two‑point average), where: • NOPAT = Underlying NPAT pre AASB 16, plus interest (net of tax); and • Average Invested Capital = the two‑point average calculated over two financial year end periods. 21 S hare‑based payments (continued) Notes to the Consolidated Financial Statements 107
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Notes to the Consolidated Financial Statements (continued) Performance conditions (continued) The interest component of NOPAT will include an adjustment to exclude the amount related to the inventory trade payable facility. The Company’s ROIC for each of the three years forming the performance period will be averaged to provide an overall outcome, with ROIC performance targets set out below. The inventory trade payable facility is used for feed purchased across Australia and New Zealand within the business. It is utilised for all feed purchases and only used for feed, not only because of management policy, which is overseen by the Board, but also because of the terms of the facility. This policy ensures that changes in facility utilisation cannot be used to vary the ROIC outcome. When testing performance conditions, the Board has discretion to include or exclude any items from its calculations. For example, the Board reserves discretion to make adjustments to ROIC in exceptional circumstances, such as to take account of corporate actions undertaken by the Company. The Board has approved a change in the ROIC calculation methodology for LTIP to exclude Asset Revaluation impacts (upwards or downwards) from ROIC calculations. FY23‑FY25 ROIC for LTIP was not adjusted for any asset revaluations which would have been a small upwards adjustment. The level of vesting of this component will be determined according to the following schedule: Company’s ROIC Outcome % of Rights that Vest Less than Threshold Nil At Threshold of 15.7% p.a. 50% Between Threshold and Target Straight line pro rata Vesting between 50% and 75% At Target 75% Between Target and Maximum Straight line pro rata Vesting between 75% and 100% At Maximum of 20.0% p.a. or more 100% Voting and dividend entitlements Performance rights granted under the LTIP do not carry dividend or voting rights prior to vesting. Shares allocated upon vesting of performance rights carry the same dividend and voting rights as other Inghams shares. Re‑testing Performance will not be re -t ested if the performance conditions are not satisfied at the end of the performance period. Any Rights that remain unvested at the end of the performance period will lapse immediately. Restrictions on dealing The Executive KMP must not sell, transfer, encumber, hedge or otherwise deal with performance rights. The Executive KMP will be free to deal with the shares allocated on vesting of the performance rights, subject to the requirements of Inghams Securities Dealing Policy at that time. A minimum amount of 35% of any vested equity award will need to be held for any relevant Executive KMP until the minimum shareholding requirement is met. Minimum shareholder requirements are detailed on page 73. Change of control Under the Plan rules and the terms of the LTIP awards, the Board may determine in its absolute discretion that some or all of the Executive KMP performance rights will vest on a likely change of control. In the event of an actual change in the control of the Company then, unless the Board determines otherwise, all unvested performance rights will immediately vest or cease to be subject to restrictions (as applicable) on a pro rata basis based on the portion of the vesting period that has elapsed. Claw‑back Under the Plan rules and the terms of the LTIP awards, the Board has claw‑back powers which it may exercise if, among other things: • the Executive KMP has acted fraudulently or dishonestly, has engaged in gross misconduct, brought Inghams, the Inghams Group or any Inghams Group company into disrepute or breached their obligations to the Inghams Group, or Inghams is required by or entitled under law or Inghams’ policy to reclaim remuneration from the participant; • there is a material misstatement or omission in the accounts of an Inghams Group company; or • the Executive KMP entitlements vest or may vest as a result of the fraud, dishonesty or breach of obligations of any other person and the Board is of the opinion that the performance rights would not have otherwise vested. 21 S hare‑based payments (continued) Long‑Term Incentive Plans (continued) 108 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) Cessation of employment If the participant ceases employment for cause or due to their resignation, unless the Board determines otherwise, any unvested Rights will automatically lapse. The Board has the discretion to designate a ‘good leaver’ (e.g. retrenchment, bona fide executive retirement or death), whereby Rights will not automatically lapse. In these circumstances, the Rights will generally be pro‑rated (based on the proportion of the performance period that has elapsed) and remain on foot and subject to the original performance conditions, unless the Board exercises a discretion to treat them otherwise. Fair Value The fair value of the LTIP offer at grant date was determined using an adjusted form of Black Scholes model for the TSR component. The ROIC component is valued using a discounted cashflow technique. The weighted average grant date fair value of rights granted in the year was $2.02 (2024: $2.86, 2023: $1.98). The model inputs for performance rights granted during the year ended included: (a) E xercise price $Nil (2024: $Nil, 2023: $Nil); (b) S hare price at grant date $3.09 (2024: $3.53, 2023: $2.69); (c) E xpected price volatility 32% (2024: 30%,2023: 29%); (d) E xpected dividend yield 5.63% (2024: 5.0%, 2023: 4.0%); and (e) R isk‑free interest rate 4.16% (2024: 3.76%, 2023: 4.07%). 22 C ash flow information 2025 $000 2024 $000 Reconciliation of profit after income tax Profit after tax for the period 89,800 101,500 Depreciation and amortisation 182,900 244,300 Finance costs 85,400 86,500 Share‑based payment expense 5,200 4,800 Share of Profit – joint venture (700) (900) Fair value gain on acquisition of leased asset – (2,100) Net (gain)/loss on leases disposal (15,800) (9,600) Property revaluation 200 – Change in operating assets and liabilities (Increase)/decrease in trade and other receivables (51,100) 34,000 (Increase)/decrease in biological assets (2,600) (3,700) (Increase)/decrease in inventories (12,700) (16,800) (Increase)/decrease in deferred tax asset 3,000 (8,600) Increase/(decrease) in trade and other payables 51,500 (32,600) Increase/(decrease) in income tax payable (18,700) 12,800 Increase/(decrease) in other provisions 2,900 8,900 Net cash provided by operating activities 319,300 418,500 21 S hare‑based payments (continued) Long‑Term Incentive Plans (continued) Notes to the Consolidated Financial Statements 109
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Notes to the Consolidated Financial Statements (continued) 23 R elated party disclosures Group Structure (a) Parent entity The ultimate parent entity of the group is Inghams Group Limited. (b) Subsidiaries The consolidated financial statements include the financial statements of Inghams Group Limited and its subsidiaries as follows: EQUITY HOLDING Name of entity Country of incorporation 2025 % 2024 % Ingham Holdings II Pty Limited (a),(c) Australia 100 100 Ingham Holdings III Pty Limited (a),(c) Australia 100 100 Adams Bidco Pty Limited (a),(c) Australia 100 100 Ingham Enterprises Pty Limited (a),(c) Australia 100 100 Inghams Enterprises Pty Limited (a),(c) Australia 100 100 The Free Ranger Pty Limited (formerly Ingham Finco Pty Limited) (b),(c) Australia 100 100 Ingham 2 Pty Limited (b),(c) Australia 100 100 Agnidla Pty Limited (b),(c) Australia 100 100 Aleko Pty Limited (b),(c) Australia 100 100 Inghams Enterprises (NZ) Pty Limited (a),(c) Australia 100 100 Inghams Property Management Pty Limited (b),(c) Australia 100 100 Inghams Property Hold Co Pty Limited (c) Australia 100 100 Inghams Burton Property Trust Australia 100 100 Inghams Property Co Pty Limited (c) Australia 100 100 Ovoid Insurance Limited (d) Bermuda 100 100 Ovoid Insurance Pty Limited (b) Australia 100 100 Inadnam Pty Limited (b),(c) Australia 100 100 Inghams (NZ) No 2 Limited New Zealand 100 100 Bostock Brothers Limited New Zealand 100 – (a) T hese subsidiaries have been granted relief from the necessity to prepare financial reports under the option available to the Company under ASIC Corporations (Wholly Owned Companies) Instrument 2016/785 . (b) T hese subsidiaries are not audited as they are small proprietary companies which are not required to prepare audited financial statements under ASIC Corporations (Audit Relief) Instrument 2016/784 . (c) T hese subsidiaries, along with Inghams Group Limited, form the Deed of Cross Guarantee Group described further from note 32. (d) S ubsequent to year‑end, on 4 July 2025, the Ovoid Insurance Limited entity in Bermuda was wound up. (c) Key management personnel compensation 2025 $000 2024 $000 Short‑term employee benefits 3,570 3,941 Other long‑term benefits 80 30 Share‑based payments 1,722 2,154 Post employment benefits – 117 Key management personnel compensation 5,372 6,242 Information regarding individual directors’ and executives’ compensation and some equity instruments disclosures as permitted by Corporations Regulations 2M.3.03 and 2M.6.04 is provided in the Remuneration Report section of the Directors’ Report. No director has entered into a material contract with the Group since the end of the previous financial year and there were no material contracts involving directors’ interests existing at year end. 110 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (d) Transaction with other related parties There are no loans to KMP and the Directors do not intend to offer any loans in the future. 24 F inancial risk management The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and commodity price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. Risk management is carried out by a central treasury department. Treasury identifies, evaluates and hedges financial risks in close co‑operation with the Group’s operating units. Treasury provides overall risk management, covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non‑derivative financial instruments in accordance with the Group’s facilities agreement and company policies. The Group uses derivative financial instruments such as foreign exchange contracts and interest rate swaps to hedge certain risk exposures. Derivatives are exclusively used for economic hedging purposes and not as trading or speculative instruments. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, and aging analysis for credit risk. Fair value hierarchy The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. Fair value inputs are summarised as follows: Level 1: T he fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available‑for‑sale securities) is based on quoted market prices at the end of the reporting period. Level 2: T he fair value of financial instruments that are not traded in an active market (for example, over‑the‑counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: I f one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Fair value inputs are summarised as follows: Fair value hierarchy Note Valuation technique Derivatives Level 2 17 Interest rate swaps are calculated as the present value of estimated future cash flows using a market based yield curve sourced from available market data quoted for all major interest rates. Forward contract fair values are based on mark‑to‑market valuations provided by counterparty financial institutions. Freehold land Level 2 12 Freehold land is valued based on prices for similar transactions of similar assets that have occurred recently in the market. Prices are adjusted to reflect differing terms of the actual transactions as well as differences in legal, economic and physical characteristics. Freehold buildings Level 3 12 Buildings based on the amount required to replace the service capacity of the asset considering the physical deterioration, function or economic obsolescence. Intangibles Level 3 Intangible assets are valued using multi period excess earnings method, and trademarks and customer relationships from the relief from royalty method. Assets held for sale Level 2 11 Asset held for sale based on prices for similar transactions of similar assets that have occurred recently in the market less cost of disposal. Prices are adjusted to reflect differing terms of the actual transactions as well as differences in legal, economic and physical characteristics. 23 R elated party disclosures (continued) Group Structure (continued) Notes to the Consolidated Financial Statements 111
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Notes to the Consolidated Financial Statements (continued) At 28 June 2025 Level 1 Level 2 Level 3 Total Derivatives – (6,300) – (6,300) Freehold land – 7 7,10 0 – 7 7,10 0 Freehold building – – 218,000 218,000 Intangibles – – 4,000 4,000 Assets held for sale – 1,300 – 1,300 Total – 72,100 222,000 294,100 At 29 June 2024 Level 1 Level 2 Level 3 Total Derivatives – 2,300 – 2,300 Freehold land – 70,400 – 70,400 Freehold building – – 140,400 140,400 Intangibles – – – – Assets held for sale – – – – Total – 72,700 140,400 213,100 Freehold land and buildings are valued using independent valuers who use recent land and property sales adjusted for characteristics of the asset(s) being valued such as location and use. Fair value hierarchy is re‑assessed annually for any change in circumstance that may suggest a revised level be assigned to a type of balance measured at fair value. Fair value measurements using significant unobservable inputs (level 3) The following table presents the changes in level 3 Freehold Building and Intangibles for year ended 28 June 2025 and 29 June 2024 for recurring fair value measurements: 2025 Freehold Building Opening balance 140,400 Acquisitions, additions and transfers 32,500 Gains recognised in other comprehensive income from revaluations 52,500 Depreciation and amortisation ( 7,4 0 0) Closing balance 218,000 2024 Freehold Building Opening balance 90,400 Acquisitions, additions and transfers 54,400 Gains recognised in other comprehensive income from revaluations – Depreciation and amortisation (4,400) Closing balance 140,400 Significant unobservable inputs Relationship between key unobservable inputs and fair value measurement Freehold Buildings Costs of construction (forecasted costs ranging between a 4% to 6% increase). The estimated fair value would increase/(decrease) if the depreciated replacement costs were higher/(lower). A replacement cost increase/ (decrease) of 5% would increase/(decrease) the fair value of the asset by +–5% or +–$10.9 million. 24 F inancial risk management (continued) Fair value hierarchy (continued) 112 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (a) Market risk (i) Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. Management has a policy requiring Group companies to manage their foreign exchange risk against their functional currency. The Group companies are required to hedge their foreign exchange risk exposure arising from future commercial transactions and recognised assets and liabilities using forward contracts. Additionally, the Group will look to manage the translation exposure to foreign denominated profits through the use of derivatives such as forward contracts. (ii) Foreign exchange sensitivity The Group has some exposure to exchange rate risk as it purchases some of the supplies in foreign currencies and has subsidiaries with a New Zealand dollar (NZD) functional currency. The exposure to other currencies is collectively immaterial and as such the Group’s foreign currency exposure is material in respect of NZD. IMPACT ON POST TAX PROFITS IMPACT ON OTHER COMPONENTS OF EQUITY 2025 $000 2024 $000 2025 $000 2024 $000 +100 bp variability in exchange rate 300 – 1,100 900 –100 bp variability in exchange rate (300) – (1,100) (900) (iii) Cash flow and fair value interest rate risk The Group’s main interest rate risk arises from long‑term borrowings. Borrowings issued at variable rates, expose the Group to cash flow interest rate risk. Group policy is to maintain at least 50% of its term borrowings at fixed rate using interest rate swaps to achieve this. During the year ended 28 June 2025, the Group’s borrowings at variable rate were denominated in Australian Dollars. The Group manages its cash flow interest rate risk by using interest rate swaps. Under these swaps, the Group agrees with other parties to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal amounts. As at the end of the reporting period, the Group had the following interest rate swap contracts outstanding: NOTIONAL PRINCIPAL AMOUNT INTEREST RATE 2025 $000 2024 $000 2025 $000 2024 $000 Interest rate swap 270,000 200,000 nil–0.81% nil–0.51% The contracts require settlement of net interest receivable or payable every month. The settlement dates align with the dates on which interest is payable on the Underlying debt. Sensitivity Profit or loss is sensitive to higher/lower interest income from cash and cash equivalents as a result of change in interest rates. Other components of equity change as a result of an increase/decrease in the fair value of the cash flow hedges of borrowings. IMPACT ON POST TAX PROFITS IMPACT ON OTHER COMPONENTS OF EQUITY 2025 $000 2024 $000 2025 $000 2024 $000 +100 bp variability in interest rate (2,300) (2,100) 7, 80 0 4,100 –100 bp variability in interest rate 2,300 2,100 (8,100) (4,200) 24 F inancial risk management (continued) Notes to the Consolidated Financial Statements 113
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Notes to the Consolidated Financial Statements (continued) (iv) Commodity Price The Group’s exposure to commodity price risk arises from the requirement to purchase grain commodities to support the operations of the business. To manage the commodity price risk, the Group enters into forward contracts to purchase grain to provide forward coverage on price and volume. This is performed through monitoring market movements in commodity prices. As these are forward contracts for items to be used in the ordinary course of business, no derivative asset or liability is recognised at year end. (b) Credit risk Credit risk arises from cash and cash equivalents, in the money derivative financial instruments, deposits with banks and financial institutions and the risk of a financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group has a credit policy which provides guidelines for the management of credit risk. The guideline provides for the manner in which the credit risk of customers is assessed and the use of credit ratings and other information in order to set appropriate account limits. Customers that do not meet minimum credit criteria are required to pay up front. Customers who fail to meet their account terms are reviewed for continuing credit worthiness. The maximum exposure to credit risk at the reporting date is the carrying amount of the accounts receivable. For some trade receivables the Group may obtain security in the form of credit insurance. Revenues from two key customers accounted for 50% of revenue for the year ended 28 June 2025 (2024: 55% to 65%) relating to both operating segments. Individual receivables which are known to be uncollectable are written off by reducing the carrying amount directly. The Group considers receivables to be in default when the following indicators are present: • significant financial difficulties of the debtor; and • probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments. Receivables for which an impairment provision was recognised are written off against the provision when there is no reasonable expectation of recovering additional cash. Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts previously written off are credited against other expenses. 24 F inancial risk management (continued) (a) Market risk (continued) 114 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (c) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the Group’s liquidity reserve (comprising the Group’s undrawn re‑drawable term cash advance facility below) and cash and cash equivalents on the basis of expected cash flows. In addition, the Group’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios. The Group had access to the following undrawn borrowing facilities at the end of the reporting period: 2025 2024 $000 Drawn $000 Available $000 Drawn $000 Available Floating rate Expiring beyond one year 540,000 205,000 460,000 85,000 The following liquidity risk disclosures reflect all contractually fixed repayments and interest resulting from recognised financial liabilities and derivatives as of 28 June 2025. The timing of cash flows for liabilities is based on the contractual terms of the Underlying contract. Carrying value $000 Contractual cash flows $000 Less than 1 year $000 1 year to 5 years $000 More than 5 years $000 2025 Trade payables 341,200 341,200 341,200 – – Inventory procurement trade payables 103,600 103,600 103,600 – – Other payables 35,100 35,100 35,100 – – Derivative financial liabilities 6,300 6,300 2,600 3,700 – Interest bearing liabilities 536,800 540,000 – 540,000 – Lease liabilities 914,200 1,223,100 125,100 455,700 642,300 1,937,200 2,249,300 607,600 999,400 642,300 2024 Trade payables 259,600 259,600 259,400 200 – Inventory procurement trade payables 128,500 128,500 128,500 – – Other payables 38,200 38,200 38,200 – – Interest bearing liabilities 458,600 460,000 – 460,000 – Lease liabilities 1,138,400 1,417,90 0 154,700 453,500 809,700 2,023,300 2,304,200 580,800 913,700 809,700 The Group has an inventory procurement trade payable with a third party financial institution, which is interest bearing with the principal purpose of facilitating efficient payment processing of supplier invoices. Trade bills of exchange are paid by the financial institution direct to the supplier and the Group settles the payable on extended payment terms. The programme assists in making cash outflows more predictable. The amount utilised and recorded within trade and other payables at 28 June 2025 was $103.6 million (29 June 2024: $128.5 million). 24 F inancial risk management (continued) Notes to the Consolidated Financial Statements 115
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Notes to the Consolidated Financial Statements (continued) 25 I nterest in joint arrangements A subsidiary has a 50% interest in the joint venture entity, AFB International Pty Limited, the principal activity of which is the supply of high quality and performance palatability products under Bioproducts BioFlavor brand name to the pet food industry in Australia, New Zealand and the Pacific Rim. Information relating to the joint venture entity, presented in accordance with the accounting policy described in note 3(b), is set out below. OWNERSHIP INTEREST CARRYING VALUE OF INVESTMENT 2025 % 2024 % 2025 $000 2024 $000 AFB International Pty Limited Pet food manufacturer 50 50 3,000 3,000 Movement in investment in joint arrangements: Opening balance 3,000 2,300 Add: share of net profit of joint venture 700 900 Less: dividend received from joint venture (700) (200) Closing balance 3,000 3,000 During the year the Group sold goods and services to AFB International Pty Limited to the value of $5,764,652 (2024: $7,321,969). At balance date the amount owed from AFB International Pty Limited to the Group is $518,583 (2024: $604,997). 26 C ontingent liabilities Workers’ Compensation State WorkCover authorities require guarantees against workers’ compensation self‑insurance liabilities. The guarantee is based on independent actuarial advice of the outstanding liability. Workers’ compensation guarantees held at each reporting date do not equal the liability at these dates due to the timing of issuing the guarantees. The probability of having to make a payment under these guarantees is considered remote. No provision has been made in the consolidated financial statements in respect of these contingencies, however provisions for self‑ insured risks, which includes liabilities relating to workers’ compensation claims, have been recognised in the Consolidated Statement of Financial Position at the reporting date. Claims Inghams is subject to some lawsuits, claims and audits or reviews by regulatory bodies. As at reporting date, it is not possible to reasonably estimate the outcome of these matters or the outflow of resources (if any) that will be required to close the matter. Where outcomes can be reasonably predicted, provisions are recorded. Inghams has been undergoing an audit by the Australian Taxation Office (‘ATO’). The ATO has asserted that Inghams’ R&D tax offset claims require adjustment under the Income Tax Assessment Act 1997 for each of the income years 2019, 2020 and 2021 (the adjustment is approximately equal to the offset claimed of $8.5 million in each year). The R&D expenditure claimed would remain subject to the normal tax deductibility rules already applied. R&D claims for income years 2022, 2023, 2024 and 2025 have not yet been submitted in Inghams’ tax returns as there are further substantive steps including registrations and certifications required to complete the scope and measurement process. These matters are unrelated to the ATO position with respect to the 2019, 2020 and 2021 tax returns. The accounting position involves significant judgement in the interpretation and application of the R&D offset provisions in the income tax laws and estimation uncertainty, however, is supported by advice obtained from the Company’s tax advisors. Inghams intends to vigorously defend its position and contest the matter through litigation proceedings, if required. Based on information available there is no change to the position from 2024 and Inghams does not consider it probable that the Company’s income tax assessment will be amended in relation to this matter and no uncertain tax provision was recognised as at 28 June 2025. 116 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 27 C ommitments Capital commitments Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: 2025 $000 2024 $000 Property, plant and equipment 26,900 19,900 28 E arnings per share Basic EPS is calculated by dividing profit for the year attributable to ordinary equity holders of the Parent by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the Parent (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The following table reflects the income and share data used in the basic and diluted EPS computations: 2025 $000 2024 $000 Earnings Profit attributable to ordinary equity holders for calculating basic and diluted EPS calculations 89,800 101,500 NUMBER OF SHARES ‘000 ‘000 Number of ordinary shares Weighted average number of ordinary shares used in the calculation of basic EPS 371,700 371,700 Dilutive effect of share rights 3,200 2,100 Weighted average number of ordinary shares for diluted EPS 374,900 373,800 Basic EPS (cents per share) 24.2 27.3 Diluted EPS (cents per share) 24.0 27.2 Notes to the Consolidated Financial Statements 117
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Notes to the Consolidated Financial Statements (continued) 29 A cquisition of a business (a) Acquisition of Bostock Brothers On 1 July 2024, Inghams Enterprises (NZ) Limited, a wholly owned subsidiary, acquired Bostock Brothers, an organic chicken business and assets in New Zealand for NZD $34.4 million (AUD $31.3 million). The acquisition is made up of: • NZD $30.0 million (AUD $27.3 million) paid for 100% of the shares of Bostock Brothers Limited. • NZD $1.8 million (AUD $1.6 million) paid for farming land, accounted for as an asset acquisition. • NZD $3.5 million (AUD $3.2 million) paid for the land and building, accounted for as an asset acquisition. • NZD ($0.9 million) (AUD ($0.8 million)) received in relation to settlement adjustments primarily for working capital. This acquisition aligns with the Inghams strategy to establish the Company as the leading premium operator in New Zealand market via exclusive market positioning and brand equity, vertically integrated supply chain with capacity for future growth and access to new markets. The identifiable tangible assets and liabilities acquired as part of the Bostock Brothers Limited acquisition include biological assets, inventory and property plant and equipment, production processes and organised workforce, all of which contribute to the ability to generate revenue. On this basis, the purchase of the shares in Bostock Brothers Limited meets the definition of a business combination in accordance with AASB 3 and has been consolidated into Inghams Group Limited from 1 July 2024, noting Inghams new financial year commenced on 30 June 2024 and the revenue and profit from Bostock Brothers Limited over the two day period between the start of Inghams’ financial year and the acquisition of Bostock Brothers Limited is considered immaterial. Since acquisition of Bostock Brothers Limited, revenue of NZD $24.9 million (AUD $22.8 million) and profit of NZD $1.0 million (AUD $0.9 million) has been included in the consolidated Group results. (i) Finalised identifiable assets acquired and liabilities assumed NZD $000 AUD $000 Trade and other receivables 2,700 2,400 Biological assets 900 800 Inventories 1,900 1,700 Property, plant and equipment 27,90 0 25,700 Intangible assets (Trademark) 4,600 4,300 Right‑of‑use assets 3,600 3,300 Trade and other payables (2,200) (2,100) Provisions (800) (800) Lease liabilities (3,600) (3,300) Deferred tax liability (5,900) (5,500) Total net assets acquired 29,100 26,500 In addition to the purchase of shares, the Bostock farming land was purchased for an additional NZD $1.8 million (AUD $1.6 million) in July and the land and building was leased from acquisition date until 7 November 2024 when it was acquired by Inghams Enterprises (NZ) Limited for an additional NZD $3.5 million (AUD $3.2 million). For accounting purposes, the purchase of the farming land and acquisition of the land and building are not considered a part of the business combination and are instead recognised as asset acquisitions of property, plant and equipment. 118 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) (ii) Measurement at fair values The valuation techniques used for measuring the fair value of material assets acquired were as follows: Assets acquired Valuation technique Property, Plant and Equipment Market comparison technique and cost technique: The valuation model considers market prices for similar agricultural and processing equipment when available, and depreciated replacement cost when appropriate. External valuation reports were obtained from professional valuers (Bayleys and Marsh) for land, buildings, and equipment. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence in the industry. Intangible Assets Relief‑from‑royalty method and multi‑period excess earnings method: For trade names and trademarks, the relief‑from‑royalty method considers the discounted estimated royalty payments that are expected to be avoided as a result of owning the Bostock brand. The multi‑period excess earnings method was used for customer relationships, considering the present value of net cash flows expected to be generated by the customer relationships, by excluding any cash flows related to contributory assets. Inventories Market comparison technique: The fair value is determined based on the estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories. (iii) Acquisition‑related costs The Group incurred acquisition costs of NZD $1.2 million (2024: NZD $1.9 million) on legal fees and due diligence costs in FY25. These costs have been included in ‘administration and selling’. 30 R emuneration of auditors During the period the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and non‑related audit firm. 2025 $000 2024 $000 Amounts received or due and receivable by KPMG for: Audit and review services 980 894 Other assurance services* 11 4 Total amount paid or payable to auditors 991 898 * O ther assurance services provided for FY25 relate to agreed upon procedures for the compliance of bank covenants and assurance for STIP measures. 29 A cquisition of a business (continued) (a) Acquisition of Bostock Brothers (continued) Notes to the Consolidated Financial Statements 119
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Notes to the Consolidated Financial Statements (continued) 31 P arent entity financial information Summary financial information 2025 $000 2024 $000 Current assets 7,4 0 0 1,200 Non‑current assets 690,700 596,200 Total assets 698,100 597,400 Current liabilities 4,300 15,500 Non‑current liabilities 540,600 458,200 Total liabilities 544,900 473,700 Net assets/(liabilities) 153,200 123,700 Equity Contributed equity 109,300 107,20 0 Accumulated profit/(losses) Accumulated losses (92,300) (92,300) Profit reserve* 122,500 91,600 Cash flow hedge reserve (5,300) 3,400 Share‑based payments reserve 19,000 13,800 153,200 123,700 Profit for the year 101,500 83,400 Total comprehensive income 101,500 83,400 The parent entity does not have any commitments, contingent liabilities or guarantees as at 28 June 2025. * 2 024 Profit reserve was changed from $91,100 to $91,600 to correct a typographical inaccuracy. 120 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 32 D eed of cross guarantee Inghams Group Limited and all of the subsidiaries shown as (c) in note 23 are parties to a deed of cross guarantee dated 22 May 2017, under which each company guarantees the debts of the others. By entering into the deed, the wholly‑owned entities have been relieved from the requirement to prepare a financial report and directors’ report under ASIC Corporations (Wholly Owned Companies) Instrument 2016/785 issued by the Australian Securities and Investments Commission. The effect of the Deed is that the Company guarantees to each creditor payment in full of any debt in the event of winding up of any of the subsidiaries under certain provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the Act, the Company will only be liable in the event that after six months any creditor has not been paid in full. The subsidiaries have also given similar guarantees in the event that the Company is wound up. (a) C onsolidated income statement, statement of comprehensive income and summary of movements in retained earnings The companies shown as (c) in note 23 represent a ‘closed group’ for the purposes of the Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by Inghams Group Limited, they also represent the ‘extended closed group’. Set out below is a condensed consolidated income statement, consolidated statement of comprehensive income and a summary of movements in consolidated retained earnings for the period ended 28 June 2025 of the closed group. 2025 $000 2024 $000 Consolidated income statement Revenue from continuing operations Revenue 3,129,600 3,262,000 Other income Other (expense)/income 8,300 500 Expenses Cost of sales (2,551,900) (2,641,300) Distribution (204,500) (210,000) Administration and selling (167 ,000) (185,100) Net finance costs (82,600) (83,600) Share of net profit of associate 700 900 Profit before income tax 132,600 143,400 Income tax expense (36,900) (41,700) Profit for the year 95,700 101,700 Consolidated statement of comprehensive income Profit for the year 95,700 101,700 Other comprehensive income 35,000 (6,300) Total comprehensive income for the year 130,700 95,400 Notes to the Consolidated Financial Statements 121
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Notes to the Consolidated Financial Statements (continued) (b) Consolidated balance sheet Set out below is a consolidated balance sheet of the closed group. 2025 $000 2024 $000 Cash and cash equivalents 106,000 107 ,000 Trade and other receivables 285,400 234,100 Biological assets 166,300 163,500 Inventories 249,300 237,50 0 Assets classified as held for sale 1,300 – Derivative Financial Instruments – 1,700 Current tax receivable 5,100 – Related party receivables 7, 30 0 – Total current assets 820,700 743,800 Property, plant and equipment 686,700 602,000 Equity accounted investments 3,000 3,000 Investment in subsidiary 26,700 – Right‑of‑use assets 809,000 1,011,700 Derivative Financial Instruments – 600 Deferred tax assets 4,200 22,900 Total non‑current assets 1,529,600 1,640,200 Total assets 2,350,300 2,384,000 Trade and other payables 476,800 425,300 Current tax payable 2,500 15,800 Provisions 103,000 104,100 Derivative financial instruments 2,600 – Lease liabilities 94,500 127,4 0 0 Related party payables – 9,500 Total current liabilities 679,400 682,100 Trade and other payables – 7,70 0 Borrowings 536,800 458,600 Provisions 38,900 37,20 0 Derivative financial instruments 3,700 – Lease liabilities 819,700 991,000 Total non‑current liabilities 1,399,100 1,494,500 Total liabilities 2,078,500 2,176,600 Net assets 271,800 207,400 Equity Contributed equity 109,300 104,600 Other reserves 79,300 44,700 Retained earnings 83,200 58,100 Total equity 271,800 207,400 32 D eed of cross guarantee (continued) 122 Inghams Group Limited Annual Report 2025
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Notes to the Consolidated Financial Statements (continued) 33 E vents after the reporting period Subsequent to the year end a dividend of 8.0 cents per share has been declared on 22 August 2025 totalling $29.7 million, payable on 1 October 2025. The financial effect of this dividend has not been brought to account in these consolidated financial statements and will be recognised in subsequent financial reports. Also subsequent to year end, on 4 July 2025, the Ovoid Insurance Limited entity in Bermuda was wound up. Other than the dividend declaration and matter noted above, the Directors of the Company are not aware of any other matter or circumstance not otherwise dealt with in the financial report that significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs in the period subsequent to the year ended 28 June 2025. Notes to the Consolidated Financial Statements 123
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Directors’ Declaration 1. I n the opinion of the Directors: (a) t he consolidated financial statements and notes set out on pages 76 to 123 are in accordance with the Corporations Act 2001, including: (i) g iving a true and fair view of the Group’s financial position as at 28 June 2025 and of its performance for the financial year ended on that date, and (ii) c omplying with Australian Accounting Standards and the Corporations Regulations 2001. (b) t he financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 3(a); and (c) t he Consolidated entity disclosure statement as at 28 June 2025 set out on page 74 is true and correct; and (d) t here are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. 2. T here are reasonable grounds to believe the Company and the Group entities identified in note 32 will be able to meet any obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the Company and those Group entities pursuant to ASIC Corporations (Wholly Owned Companies) Instrument 2016/785. 3. T he Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief executive officer and chief financial officer, for the financial year ended 28 June 2025. 4. T he Directors draw attention to note 3(a) to consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards. This declaration is made in accordance with a resolution of the Directors. Helen Nash M ichael Ihlein Chair N on‑Executive Director Sydney 22 August 2025 124 Inghams Group Limited Annual Report 2025
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� lndeoendent Auditor's Reoort To the shareholders of lnghams Group Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of lnghams Group Limited (the Company). In our opinion, the accompanying Financial Report of the Company gives a true and fair view, including of the Group's financial position as at 28 June 2025 and of its financial performance for the year then ended, in accordance with the Corporations Act 2001, in compliance with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion The Financial Report comprises: • Consolidated statement of financial position as at 28 June 2025 • Consolidated income statement, Consolidated statement of comprehensive income, Consolidated statement of changes in equity, and Consolidated· statement of cash flows for the year then ended • Consolidated entity disclosure statement and accompanying basis of preparation as at 28 June 2025 • Notes, including material accounting policies • Directors' Declaration. The Group consists of the Company and the entities it controlled at the year end or from time to time during the financial year. The year is the 52-week period ended on 28 June 2025. We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Inghams Group Limited Independent Auditor’s Report 125
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Independent Auditor’s Report continued Key Audit Matters The Key Audit Matters we identified are: • Accounting for revenue • Accounting for Leases AASB 16 Accounting for revenue ($3,152.4 million) Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. - Refer to Notes 3 (d) and 4 to the Financial Report The key audit matter How the matter was addressed in our audit The Group's policy is to recognise revenue at Our procedures included: the fair value of the consideration received or We considered the appropriateness of • receivable and is net of returns, trade allowances, rebates and amounts collected the Group's accounting policies regarding on behalf of third parties. Performance revenue recognition, trade allowances obligations are satisfied when goods have and rebates against the requirement of been delivered to a customer pursuant to a the Australian Accounting Standards; sales order and control of the goods has • We obtained an understanding of passed to a carrier or customer. contractual terms for key customers; The accounting for revenue is a key audit • We obtained an understanding of the matter due to the: revenue recognition process, including • Quantum of revenue, trade allowances trade allowances and rebates. We tested and rebates to the financial report; key revenue process controls such as system configuration to allocate c_ash • Variety of customer-specific contractual receipted to debtors and authorisation of arrangements for trade allowances and price changes; rebates, increasing the audit effort to address these specific conditions; • We utilised data analysis to identify gross revenue transactions with specific • The Group has predominantly manual characteristics to focus our further processes and controls which may testing. We selected a sample for further increase the risk of potential error in the testing to underlying documentation; recognition of product revenue, in For each sample selected, we:particular in the last three days before • and three days after the reporting period - Checked the amount of revenue end. This increased our audit effort to recorded by the Group to the amount test higher samples of revenue of the sales invoice; and transactions in the l ast week of the reporting period. - Checked the date the revenue was recognised by the Group to proof of In assessing this key audit matter, we delivery documents and/or customer involved senior audit team members who 126 Inghams Group Limited Annual Report 2025
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Independent Auditor’s Report continued understand the Group's business, industry and the economic environment it operates in. • correspondence, assessing the date the customer obtained control, and products were delivered and accepted by the customer. We selected a sample of revenue transactions, for the period of three days before and three days after year end due to the increased risk of potential error. For each sample selected we: Checked the amount of revenue recorded by the Group to the amount of the sales invoiced to the customer; and Checked the date the revenue was recognised to proof of delivery documents and/or customer correspondence, assessing the date the customer obtained control, and products were delivered and accepted by customers. • We assessed trade allowances and rebate accruals recognised at balance date for a sample of significant customers by: Comparing to trade allowances and rebate payments claimed by customers subsequent to balance date; and Comparing to customer confirmations and/or contracts where allowances and rebates had not yet been claimed. For key customers checking a sample of rebates and trade allowances to underlying documentation. • We tested a sample of trade allowance and rebate claim payments claimed by customers during the year. We then developed an expectation of trade allowances and rebate expenses for the year considering the opening accrual, trade allowance and rebate claim payments claimed by customers during the year, and the ending accrual balance. We compared our expectation of trade allowances and rebate expenses to the amount recorded by the Group. • We assessed the disclosures in the financial report using our understanding Independent Auditor’s Report 127
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Independent Auditor’s Report continued obtained from our testing and against the requirements of the accounting standard. Accounting for AASB 16 Leases (right-of-use assets and lease liabilities amounting to $809 million and $914.2 million respectively) Refer to Notes 3 (n), 13 and 24 to the Financial Report The key audit matter How the matter was addressed in our audit AASB 16 Leases ("AASB 16") is complex Our procedures included: with specific lease-features driving • We considered the appropriateness of the different accounting outcomes, increasing the need for interpretation and Group's accounting policies against the judgement. requirements of the accounting standard and our understanding of the business and AASB 16 Leases is a key audit matter due to industry practice; the: We obtained an understanding of the• • Quantum of the right-of-use assets and Group's processes used to calculate the lease liabilities to the financial report. lease liability, right-of-use asset, • Number of leases in the Group, including depreciation, and interest expense; the individual nature of the lease • We read a sample of contracts, including agreements used to estimate the lease the grower contracts. We compared the liability and right-of-use asset. A focus relevant features of the underlying for us was the accuracy of multiple and contracts to the definition of a lease in the varied inputs which may drive different accounting standards to assess the accounting outcomes, including key accounting treatment recognised by the dates, fixed and variable payments, Group; renewal options and incentives. We compared the following inputs in the• The key areas of judgement we focused on Group's AASB 16 model for consistency to was in assessing the Group's: the relevant terms for a sample of • Renewal options contained within underlying signed lease agreements: leases. Assessing the Group's - key dates; determination of whether it is fixed rent payments; and - reasonably certain renewal options will be exercised impacts the - renewal options and incentives. measurement of the lease, therefore • We assessed the Group's determination of is critical to the accuracy of the exercising lease renewal options for accounting. consistency to the Group's strategies, • Grower contractual arrangements and evidence underlying the Group's economic the features of the underlying grower incentive assessment and past practices. contracts against the definition of a • We challenged the Group's assumptions,lease under the accounting standards. such as the Group's assessment of each • Incremental borr·owing rates lease's incremental borrowing rate by: determined by the Group. These are - Using our understanding of the meant to reflect the Group's entity Group's business; specific credit risk and vary based on Independently developing an each lease term. - 128 Inghams Group Limited Annual Report 2025
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Independent Auditor’s Report continued We involved our senior audit team members in assessing these areas. Other Information incremental borrowing rate by considering the: • • Group's external credit rating; Each lease's remaining tenor . • We independently developed an expected lease liability range and compared it to the lease liability value recorded by the Group. • We assessed the disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard. Other Information is financial and non-financial information in lnghams Group Limited's annual report which is provided in addition to the Financial Report and the Auditor's Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor's Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, and in compliance with Australian Accounting Standards and the Corporations Regulations 2001 • implementing necessary internal control to enable the preparation of a Financial Report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group, and that is free from material misstatement, whether due to fraud or error • assessing the Group and Company's ability to continue as a going concern and whether the use of the going concern basis of accounting, is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no r ealistic alternative but to do so. Independent Auditor’s Report 129
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Independent Auditor’s Report continued I Auditor's responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are c·onsidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at https://www.auasb.qov.au/media/bwvjcqre/ar1 2024.pdf This description forms part of our Auditor's Report. Report on the Remuneration Report I Opinion In our opinion, the Remuneration Report of lnghams Group Limited for the 52 weeks ended 28 June 2025, complies with Section 300A of the Corporations Act 2001. KPMG Directors' responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 52 to 73 of the Directors' report for the year ended 28 June 2025. Our responsibility is to express an opinion as to whether the Remuneration Report complies in all material respects with Section 300A of the Corporations Act 2001, based on our audit conducted in accordance with Australian Auditing Standards. Trent Duvall Partner Sydney 22 August 2025 130 Inghams Group Limited Annual Report 2025
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Shareholder Information TWENTY LARGEST REGISTERED SHAREHOLDERS (AS AT 3 September 2025) RANK NAME UNITS % OF ISSUED CAPITAL 1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 117215806 31.54 2 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 54297653 14.61 3 CITICORP NOMINEES PTY LIMITED 47,161, 819 12.69 4 BNP PARIBAS NOMS PTY LTD 4,578,998 1.23 5 BNP PARIBAS NOMINEES PTY LTD <AGENCY LENDING A/C> 3,216,445 0.87 6 NATIONAL NOMINEES LIMITED 2,851,016 0.77 7 FIRST SAMUEL LTD ACN 086243567 <ANF ITS MDA CLIENTS A/C> 2,638,778 0.71 8 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 2,545,651 0.68 9 CPU SHARE PLANS PTY LTD <ING EST UNALLOCATED A/C> 2,308,692 0.62 10 MASFEN SECURITIES LIMITED 1,500,000 0.40 11 BNP PARIBAS NOMINEES PTY LTD <HUB24 CUSTODIAL SERV LTD> 1,336,513 0.36 12 NETWEALTH INVESTMENTS LIMITED <WRAP SERVICES A/C> 1,222,109 0.33 13 MS ROBYN LEE HIND + MR ROBERT EDWARD HIND + MRS RUTH ETHEL HIND 1,035,552 0.28 14 BNP PARIBAS NOMS PTY LTD <GLOBAL MARKETS> 936,957 0.25 15 BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT> 790,496 0.21 16 MR ANTHONY CYRIL PATRICK + MS CAROL IRENE HOGAN <PATRICK HOGAN SUPER FUND A/C> 670,343 0.18 17 WARBONT NOMINEES PTY LTD <UNPAID ENTREPOT A/C> 625,381 0.17 18 SARGENTS CHARITY LIMITED 600,000 0.16 19 NCH PTY LTD 571,457 0.15 20 ANCHORFIELD PTY LTD <BRAZIL FAMILY FNDN A/C> 550,000 0.15 Top 20 holders of FULLY PAID ORDINARY SHARES (Total) 246,653,666 66.36 Total Remaining Holders Balance 125,025,935 33.64 DISTRIBUTION OF HOLDINGS (AS AT 3 SEPTEMBER 2025) RANGE NUMBER OF HOLDERS NUMBER OF SHARES % OF ISSUED CAPITAL 100,001 and over 94 262,419,993 70.6 10,001 – 100,000 2719 66,735,594 17.96 5,001 – 10,000 2927 22,569,121 6.07 1,001 – 5,000 6336 17 ,385,370 4.68 1 – 1,000 5014 2,569,523 0.69 Total 100.001 1. M inor difference in total due to rounding. There are 825 shareholders holding less than a marketable parcel of shares (as at 3 September 2025). Shareholder Information 131
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Shareholder Information (continued) SUBSTANTIAL SHAREHOLDERS (AS DISCLOSED IN SUBSTANTIAL HOLDER NOTICES GIVEN TO THE COMPANY AS AT 3 SEPTEMBER 2025) SHAREHOLDER NUMBER OF SHARES % OF ISSUED CAPITAL Vanguard Group 23,769,456 6.395 State Street Corporation 23,508,373 6.32 Australian Retirement Trust 18,655,287 5.019 ESCROW SECURITIES As at 3 September 2025, there were no shares subject to escrow agreements. UNQUOTED EQUITY SECURITIES As at 3 September 2025, the total number of performance rights on issue equalled 6,766,168 held by 30 individual participants. The number of deferred share rights on issue equalled 431,028 held by 12 individual participants. Both performance rights and deferred share rights are securities issued under an employee incentive scheme. SHARES AND VOTING RIGHTS All 371,679,601 issued shares in the Company are ordinary shares, held by 17,090 shareholders. Voting rights for ordinary shares are: • on a show of hands, one vote for each shareholder; and • on a poll, one vote for each fully paid ordinary share. There is no current on ‑m arket buy‑b ack. SECURITIES PURCHASED ON‑M ARKET During the reporting period, 701,821 fully paid ordinary shares were purchased on ‑m arket, at an average price of $3.03 per share for the purposes of satisfying rights that vested under the Company’s employee incentive schemes. 132 Inghams Group Limited Annual Report 2025
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Directors Helen Nash Rob Gordon Michael Ihlein Margaret Haseltine Timothy Longstaff Linda Bardo Nicholls AO Andrew Reeves (retired 28 June 2025) Edward Alexander (appointed 29 June 2025) Company Secretaries Marta Kielich Gary Mallett Registered Office Level 4 1 Julius Avenue North Ryde NSW 2113 Australia Tel: 02 9826 4444 Website www.inghams.com.au Auditors KPMG Level 38, Tower Three International Towers Sydney 300 Barangaroo Avenue Sydney NSW 2000 Australia Share Registry Computershare Investor Services Pty Ltd GPO Box 2975 Melbourne VIC 3001 Australia Tel: 1300 850 505 +61 3 9415 4000 Email Web.Queries@computershare.com.au Website www.computershare.com.au Australian Securities Exchange ASX code: ING Corporate Directory www.colliercreative.com.au #INH0050 Corporate Directory 133
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