Full Year FY2022 Financial Results

(Year ended 28 February 2022)

STRENGTHEN, STRATEGY & EXECUTION

26 April 2022

Disclaimer

Forward looking statements

This presentation has been prepared by and concerns Namoi Cotton Limited (Namoi) and consists of these slides and any accompanying commentary. By reviewing/attending this presentation, you acknowledge the following statements / information in this disclaimer.

The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Namoi, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.

Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

Non-International Financial Reporting Standards (Non-IFRS) information

This presentation may make reference to certain non-IFRS financial information. This information is used by management to measure the operating performance of the business and has been presented as this may be useful for investors. This information has not been reviewed by the Group's auditor.

Notes

Numbers in this document are subject to rounding and stated in Australian dollars unless otherwise noted.

References to "Namoi" or the "Company", are references to Namoi Cotton Limited ABN 76 010 485 588, or its subsidiaries.

Namoi Cotton is more than a ginner

Namoi's cotton business spans fibre, feed, supply chain and marketing with ginning being at its core

QLD

Toowoomba

Ginning & Feed Cotton Ginning

(HO)

Supply Chain & Marketing

MacIntyre (1 & 2)

Mungindi

NSWVIC

(1) Based on 10 year moving average of total ginning volume

  • (2) NCA JV with Louis Dreyfus Company (LDC) - Namoi has 51% interest

  • (3) NCMA JV with LDC - Namoi has 15% interest

Network of gins at 9 sites serving >200 growers

Average 830,000 bales(1)

Capacity 1.5m bales

Co-products

Network of 9 sheds marketing cottonseed to 30+ feed buyers

Marketing cotton waste

Cotton gin Cottonseed shed

NCA Warehouse & IMEX Terminal NCA grain storage

Australian Classing Services & Engineering Services

Supply Chain

3 warehouses and 2 grain storages with 3 terminals

Packing export containers

(managed by NCA(2))

Cotton Marketing

Cotton classing

Lint origination and trading

Exporting to 8+ countries (managed by NCMA(3))

Business highlights

Positive EBITDA in FY2022 with increased volume and preparing for anticipated above average FY2023 volume

  • • Above average cotton production of 5 million bales for 2022 season(3)

  • • Forecast ginning volume

    - 1.1-1.2m bales

    - Expect similar volume in 2023 given current water availability

  • • Gin-ready preparation in FY2022 - $8.5m additional expenditure - Staff to operate 24 hours/day

(1) Include 100% of bales at joint venture gin ('mb' is million bales)

  • (2) Average of 830,000 bales based on 10 year moving average of total ginning volume

  • (3) ABARES forecast for cotton production in QLD and NSW (March 2022)

  • (4) EBITDA is a non-IFRS and unaudited measure defined as earnings before interest, tax, depreciation and amortisation including share of profit from joint ventures and associates excluding impairments and decrements

  • (5) Gross EBITDA is EBITDA plus add back share of NCA depreciation and interest (i.e. share of NCA EBITDA) less Jobkeeper payment

  • (6) Net Profit after Tax

  • (7) Core debt is total interest-bearing liabilities less cash and cash equivalents and less cottonseed inventory

  • (8) Lost Time Injury Frequency Rate

FY2022 vs FY2021 HighlightsPositive EBITDA

Ginned Bales(1)

NPAT(6)

EBITDA(4)

Core Debt(7)

LTIFR(8)

0.49mb 0.12mb

$(4.4)m $(14.4)m

$1.6m $(12.7)m

$45.1m $49.9m

15 9

Executing 4PP Strategy

Positive outlook for FY2023

Volume

  • • 0.49 million bales ginned(1) - 40% below average(2)

Earnings

  • • $1.6m EBITDA(4)

  • • $2.8m Gross EBITDA(5)

Debt

  • • $4.7m reduction in core debt(7)

Strategic initiatives

  • • Strengthen ginning network

    - Increase productivity

    - New sources of revenue

  • • Innovative solutions for growers

Northern Australia

  • • Kimberley gin discussions

  • • North QLD gin opportunities

Safety and Values

Namoi is committed to a safe workplace and engaged culture for all employees, visitors and contractors

Safety

Safety Lag Indicators

Safety

27

We place safety and health first Teamwork

18

We build strong partnerships with our customers and each other

9

Integrity

0

FY17

FY18

FY19 FY20

FY21

FY22

We keep our promises Excellence

LTIFRSeverity (Lost Shifts/LTI)

  • (1) LTIFR - Number of lost time injuries in the financial year / total hours worked in the financial year × 1,000,000

    We are efficient and effective and get the job done

  • (2) Average number of lost shifts from a Lost Time Injury (LTI) (Total lost shifts / Total LTIs)

  • • FY2022 safety metrics

    - LTIFR(1) of 15 (vs target <10)

    - 7 LTIs with reduced severity of 2 shifts per LTI(2)

  • • Investing in safety systems and capability

    - New safety management system (DoneSafe)

    - Strengthened safety team

Staff Engagement

  • • Employer of choice in the cotton industry

  • • Target staff engagement >65%

    - 2021 score of 53% with 97% participation

    - Significant improvement vs 2020

Common Purpose and Values

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Namoi Cotton Ltd. published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 06:59:20 UTC.