Slides
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Generations Strong: Focusing on what matters LIC Annual Meeting 17th September 2025
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Haere mai Corrigan Sowman Board Chair
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03 | LIC AGM 2025 Using the online platform
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Meeting Agenda 1. Financial Overview 2. Creating Value on Farm 3. Our Generational Co-operative 4. Strategy Refocus 5. Honoraria Report 6. Meeting Resolutions 7. General Business 04 | LIC AGM 2025
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Financial overview Brent Mealings Chief Financial Officer
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Financial Highlights 06 | LIC AGM 2025
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Last years’ underlying earnings included two significant one-off events totalling just over $5m 07 | LIC AGM 2025 $21.7m Underlying Earnings Up from $13.9m last year Excluding the one-off events from last year, the 10% increase in revenue was converted into a 15% improvement in underlying earnings Continued investment into R&D, representing 8% of revenue and a 6% increase on last financial year A solid financial result for the co-operative
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08 | LIC AGM 2025 Underlying Earnings** ($m) Operating Cashflow* ($m) Total Dividends*** per share (cents)R&D Expense* ($m) * Excludes discontinued operations - the Automation business was divested in June 2021. ** Non-GAAP financial information: excludes bull team and nil paid share revaluations and discontinued operations. *** The full year dividend declared is paid in the subsequent year, while special dividends are paid within the year. Full year dividend declared Special dividend paid Focus on delivering consistent results
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Outlook Underlying earnings for 2025/26 expected to be in the range of $18-22 million. Multiyear investment into customer facing systems and process improvements. 09 | LIC AGM 2025 Improvements planned for LIC share trading with Sharesies.
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Creating value on farm David Chin Chief Executive
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Detecting the diseases that matter Johne’s Testing 166,787 antibody positive animals identified. The prevalence of Johne’s within herds is falling. Number of herds tested with JD milk ELISA and within- herd prevalence, 2015/16 to 2024/25 BVD The number of herds with persistently infected animals are decreasing. Number and percentage of BVDV+ herds from 2013/14 to 2024/25 11 | LIC AGM 2025
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12 | LIC AGM 2025 More Days in Milk from Short Gestation Length 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.0 500,000.0 1,000,000.0 1,500,000.0 2,000,000.0 2,500,000.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.0 2,000,000.0 4,000,000.0 6,000,000.0 8,000,000.0 10,000,000.0 12,000,000.0 14,000,000.0 16,000,000.0 Short gestation semen delivered (2018–2024): • Over 1m additional days in milk each year • 10.7m additional days combined At 1.2KgMS/day: • 12.8m additional milk solids combined At $10.00 payout: • $128.6m in additional revenue Additional Days in Milk generated from Short Gestation Length Semen (Beef and Dairy) Cumulative Days in Milk generated from Short Gestation Length Semen (Beef and Dairy)
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13 | LIC AGM 2025 Increasing genetic gain 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Total genotypes Genotypes with phenotypes Forecast total genotypes Forecast genotypes with phenotypes 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150 200 Year Source: Sample size of 4,700 herds: >80% of progent sired by LIC bulls (8 years). Herd recording in MINDA with Herd Test … gBW Genetic merit of animals born (average) • Successful first year of GeneMark® Genomics • Added a further 520,000 genotypes • Reference population approaching 1.5m genotypes • The calves born are getting better each year Genotype reference population Genetic gain in LIC herds Genetic merit of animals born (average)
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-80 -60 -40 -20 0 20 40 60 80 -60 -40 -20 0 20 40 60 Fat Kg Protein Kg Changes in Fat kg BV and Protein kg BV in NZ Friesian Bulls Source:NZAEL BW Bull File 20 June 2025 1990-1994 2000-2024 In 30 years we have: Added 52kg Fat (moved the Fat BV from -26kg to +26Kg) Added 39kg of Protein (moved the Protein BV from -18.5kg to +21Kg) 14 | LIC AGM 2025 The compounding effect of incremental genetic gain
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2 2.5 3 3.5 4 4.5 5 5.5 6 2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9 4.1 4.3 4.5 Fat % Protein % Changes in Fat% and Protein % in NZ Friesian Bulls Source: NZAEL BW Bull File 20 June 2025 1990-1994 2000-2024 In 30 years we have: Increased Fat % from 4.1% to 4.8% Increased Protein % from 3.3% to 3.8% Our elite Holstein Friesian bulls now have milksolid BVs totalling more than 9.5% 15 | LIC AGM 2025 The compounding effect of incremental genetic gain
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16 | LIC AGM 2025 ↑ Increases value left on farm ↓ Decreases value left on farm • The total estimated value on farm delivered by measured LIC products and services increased from $391m in 2020 up to $655m in 2025. • Genetic Gain contributed 78% of the value left on farm in 2025. Value on Farm Summary: Genetic Gain: $523m +$231m Dairy Beef: $10.2m - Short Gestation Length Dairy & Beef: $20.5m +$9.1m Johne’s Disease Testing: $27.6m +$10.1m Efficient Culling on Production Worth: $68.6m +$22.3m BVD testing: $4.6m -$19.5m Value (vs. 2020) Up to: $655m p.a. +$264m 10% 5-Year CAGR excl. Dairy-Beef Product/Service
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17 | LIC AGM 2025 Heat alerts received from Wearables • Farmer demand to connect MINDA with 3rd parties continues to increase • Our investment into data sharing over a modern API platform is benefiting the wider industry • 13 business partners connected into our ecosystem with 7 more in the pipeline Value of collaboration
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18 | LIC AGM 2025 Future investments Breeding for lower methane • There is variation in the sires • Variation is transmitted to their daughters • Variation is still present in the daughters during lactation
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Our Generational Co-operative Corrigan Sowman Board Chair
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Protect the core Stay awake to the present 20 | LIC AGM 2025 Breeding better cows faster Generational Co-op Focused on future opportunities • Sexed semen • GeneMark® • SGL • Increasing competition • Farmer succession • Global genetic consolidation • AI & digital transformation
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• Improving productivity for everyone, faster and together • Making the experience of using our tools and genetics as rewarding and easy as possible • Aligning our energy and resources to the things that truly matter for our farmers • Reinvesting in R&D so we can continue to improve for this generation and the next The value of a generational co-op 21 | LIC AGM 2025
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Strategy Refocus David Chin Chief Executive
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Increase food supply for a growing population Increasing food supply, farm productivity and farmer profits Balancing Productivity and Social License Reduce emissions intensity and nutrient loading to protect ecosystems 23 | LIC AGM 2025 The strategic challenge facing global agriculture
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24 | LIC AGM 2025
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25 | LIC AGM 2025
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26 | LIC AGM 2025
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27 | LIC AGM 2025
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28 | LIC AGM 2025
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29 | LIC AGM 2025
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30 | LIC AGM 2025
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31 | LIC AGM 2025
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32 | LIC AGM 2025
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What does it all mean 33 | LIC AGM 2025 Reworked MINDA video to go here – from conference
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Honoraria Report Shirley Trumper Honoraria Committee
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Meeting Resolutions Corrigan Sowman Board Chair
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Item 2: Resolution to approve LIC Directors’ remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Directors’ remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all nine Directors to be a maximum of $812,000 per annum” 37 | LIC AGM 2025
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38 | LIC AGM 2025 LIC Directors’ remuneration Current Recommended $ Increase Chair $145,000 $150,000 $5,000 Director $71,000 $74,000 $3,000 Discretionary Pool* $70,000 $70,000 $0 Total $783,000 $812,000 $29,000 *Maximum pool available for additional duties and specialist skills, including roles as Committee Chairs.
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Item 3: Resolution to approve LIC Shareholder Reference Group remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Shareholder Reference Group’s remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all Shareholder Reference Group members being increased to $232,500 and the daily allowance being increased to $500 per day.” 39 | LIC AGM 2025
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40 | LIC AGM 2025 LIC Shareholder Reference Group remuneration Current Recommended $ Increase SRG Chair $42,000 $44,500 $2,500 SRG Deputy Chair $21,000 $23,000 $2,000 SRG Member $15,000 $16,500 $1,500 Total $213,000 $232,500 $19,500 Daily Allowance* $400 $500 $100 *Daily Allowance paid for time spent on extraordinary duties.
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Item 4: Resolution to re-appoint KPMG as external auditor To consider, and if thought fit, to resolve by way of ordinary resolution to: “Re-appoint the chartered accountancy partnership KPMG as the auditor until the conclusion of the Company’s next Annual Meeting, and that the Directors be authorised to fix its remuneration.” 41 | LIC AGM 2025
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Item 5: Resolution to ratify the appointment of Hamish Rumbold to the Board of Directors To consider, and if thought fit, to resolve by way of ordinary resolution to: “Ratify the appointment of Hamish Rumbold as an Appointed Director to the Board of Directors for a term of two years from the conclusion of this Annual Meeting.” 42 | LIC AGM 2025
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Item 6: Resolution to ratify the appointment of Blair O’Keeffe to the Board of Directors To consider, and if thought fit, to resolve by way of ordinary resolution to: “Ratify the appointment of Blair O’Keeffe as an Appointed Director to the Board of Directors for a term of three years from the conclusion of this Annual Meeting.” 43 | LIC AGM 2025
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Item 7: Election of one Elected Director for the North Island region To consider, and if thought fit: “Elect ONE (1) candidate representing the North Island, as an Elected Director to the Board of Directors for a term of three years from the conclusion of this Annual Meeting.” 44 | LIC AGM 2025 Note that only shareholders in the North Island are eligible to vote on this matter. This matter is determined using First Past the Post, as described at (c) of the Procedural Notes.
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General Business Corrigan Sowman Board Chair
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Q&A
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Ngā mihi