Annual General Meeting Managing Directors Presentation 26 October 2012 Confidential Rory Macleod

For

per

sona

l use

onl

y

An Australian Publicly Listed Group

Providing for Specialised Needs in the Food Industry

For

per

sona

l use

onl

y

Operational Highlights FY 2012

• Sales growth in Freedom Foods Cereals of 19% and Dairy Alternative beverages of 35%

• Seafood maintained share of Salmon and Sardine categories

• Pactum Australia contributed a strong sales and business contribution – Completion of acquisition of 50% of the shares in Pactum for $6m – Nearing completion of an approx. $7m capital program to expand into portion

pack UHT capabilities

• A2 Corporation (25.8% Holding) reported strong growth in Australian fresh milk business

For

per

sona

l use

onl

y

Financial Highlights – FY 2012

• Group Operating EBDITA of $5.4 million, + 35%.

• Operating Pre-tax Profit was $3.5 million for the 12 months ended 30th June 2012, reflecting a 36% increase.

• Equity Associates contributions of $1.2m reflected profitability from the Pactum Australia (JV basis) for 9 months and increased share of estimated year end profits from A2 Corporation.

• Net assets impacted at 30 June 2012 by impact of accounting for Pactum acquisition under common control accounting principles.

For

per

sona

l use

onl

y

Financial Highlights – FY 2012

• Net Debt / Equity at year end, 82% from 36%, reflecting: – Financing of A2C share option subscription $2.0m – Acquisition of 50% of Pactum Australia $6.0m

• Net Debt / Equity at year end, assuming exercise of share options by Perich Group ($6.3m) would have seen ratio at 60% – Perich Group exercised options on 24th October 2012

• Net Assets at $0.49 cents per share, with A2C investment recorded at

book value of $12.3m

• Final Dividend payment of $0.01 cents per shares, fully franked, a CRPS dividend for 6 months

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Freedom Foods Business Unit

• Strong sales growth of 21%

• Significant investment in Unique Leeton Allergen Free Manufacturing Facility a key contributor to recent growth

• Investment in promotions, new product innovation and marketing campaign through radio and TV

• Resulting Cereals volume growth of 22%

• Dairy Alternative beverages continued positive trend from prior year with volume growth of 27%, reflecting increased share of Australia Own brand

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Freedom Foods Business Unit

• Driving branded growth in Cereals, Snacks and Dairy Alternative Beverages

• Maximising our unique Allergen Free capabilities through supply in international markets and contract packaging opportunities

• Focussed investment in Leeton to further improve cost and productivity

• Focus on operational returns to deliver improving business contribution to meet our benchmark 15% return on funds employed in the medium term

FY 13 and Medium Term

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Specialty Seafood Business Unit

• Business performed in line with prior year period

• Paramount Salmon increased its share to No 1 branded position in Pink Salmon

• Brunswick Sardines maintained its No 1 brand leadership position in Australia and New Zealand

• Exchange rate assisted in managing cost increases in Salmon and Sardine procurement

• Bumble Bee Foods of North America continued to secure our inventory requirements

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Specialty Seafood Business Unit

• Maintain and develop share of Salmon and Sardine categories

• Manage impact of short Pink Salmon supply in 2013

• Drive category leadership in Speciality Seafood through – new product opportunities to meet changing demographic and

consumer needs – Supporting private label supply

FY 13 and Medium Term FY 13 and Medium Term FY 13 and Medium Term

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Pactum Australia Business Unit

• Independent Contract Manufacturer of UHT (Long Life) Products

• Increased sales and business contribution

• Supplying Proprietary Brands and Private Label Customers – Dairy, Cooking, Nutrition, Dairy Alternatives Products

• Expansion of Packaging Capabilities

– Portion Pack (200-330ml Capabilities) online from December 12 – Significantly increase depth and breadth of customers and sales

• Consolidation into FFG in April 12 through acquisition of 50%

interest from Perich Group for $6.0million. Total investment in Pactum at less than 3.8x FY12 EBDITA

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

Pactum Australia Business Unit

• Improving mix and returns in 1 Litre UHT business

• New Portion Pack Capability on Line from early 2013 – Strong customer demand – Scoping out further capacity expansion including integrated warehouse

capability

• Well advanced on plans for new UHT capacity in SE Australia for dairy milk – High quality UHT dairy for proprietary and private label customers in SE

Asia, including China

FY 13 and Medium Term

For

per

sona

l use

onl

y

For

per

sona

l use

onl

y

A2 Corporation (Strategic Investment)

• Unique point of difference in Dairy Markets

• Positioned on a broad health platform focussed on digestive wellbeing – (significant barriers via patents, trade marks, process, know how)

• Fastest growing milk brand in Australia + 6.0% value share of

grocery channel – 45% premium – Launch in UK with major dairy player (October 2012) – Announced plans for Infant Formula launch in China in 2013

F

or p

erso

nal u

se o

nly

UK Launch

Product Range

Source: A2 Corporation Web Site

For

per

sona

l use

onl

y

A2 Corporation (Strategic Investment)

• Both equity accounted profits from A2C and the value of FFG investment has continued to grow

• FFG investment in A2C of A$12.3m compares favourably to average market value of investment (July to Sept) at A$60m.

• FFG will support the development of the A2C strategy by:

• remaining a supportive substantial shareholder in the listed Company; and

• assisting supply of UHT A2 milk into Australia and Export markets.

FY 13 and Medium Term

For

per

sona

l use

onl

y

Freedom Foods Group

• Company is well positioned in Specialised Areas of the Food Market

• Platform for Growth Established in Freedom Foods and Pactum

• Consolidation of Pactum assists in building critical mass in earnings and cashflow

• Strategic investment in A2 provides a potential significant value creation opportunity

• Overall the Company anticipates improved sales, operating

profitability and return on funds employed in the FY 13 financial year.

FY 13 and Medium Term FY 13 and Medium Term

For

per

sona

l use

onl

y

QUESTIONS

For

per

sona

l use

onl

y