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With 19% net sales growth in thesecond half of FY20 (compared toH2 FY19), the business has goodmomentum entering FY21.St David Dairy ’s sales increasedby 13% year on year, despiteCOVID- 19 impactsSt David Dairy was impacted byCOVID-19 restrictions placed onthe hospitality and food servicebusinesses. However, consumerloyalty to its brand, together with itsability to contract its cost base andexpand into the retail and homedelivery market, St David Dairyremained cashflow positive andstill achieve a double-digit EBITDAmargin as well as considerable salesgrowth for FY20.The business also took theopportunity to review its cost baseduring March and April and putin place further manufacturingefficiencies, which coupled with theenhanced diversified sales model,will set the business up for a strongFY21.Company name change to MaggieBeer Holdings reinforced brandequityLooking to the future and withdiscerning consumers increasinglylooking for premium Australian foodand beverage products and brands,the Board took the opportunity tochange the name of the Groupto Maggie Beer Holdings. In July2020, shareholders overwhelminglyapproved the name change, makingthe Group easily recognisable asa premium Australian food andbeverage company.Positioned for growthAfter a year of cost-out, restructuringand consolidation, Maggie BeerHoldings Group is now positionedfor growth. All three brands willbenefit from increased ranging,brand awareness, and new productdevelopment, supported by a wellfunded marketing strategy.The past twelve months highlightedthe incredible work and dedicationof the teams across our threebrands, and I would like to take thisopportunity to thank all our amazingpeople. I would also like to thankour shareholders for their continuedbelief and support of the MaggieBeer Holdings Group.Maggie Beer Holdings is proudto make premium Australian foodand beverage products, using localproduce that supports local dairyfarmers, fruit and vegetable growersand their local communities. This isour very essence and the ethos ofour three businesses.“The Company iswell positioned forsustained growthwith a streamlinedcost base, astrong pipelineof innovativeproducts andrenewed focus onthe core strengthsof the individualbusinessesand brands”Maggie Beer Products, Paris CreekFarms and St David Dairy resonatestrongly with Australian consumerswho are increasingly looking forhigh-quality food and beveragesbrands using locally sourcedingredients. We are excited aboutthe future of the Maggie BeerHoldings Group and what it meansfor our shareholders, customers, staff,suppliers and the communities inwhich we operate.Chantale MillardCEOM AGGI E B E E R HOL DI N GS L I M I T E D A N N UA L R EP ORT 2020 PA G E 9

OPERATIONSREPORTFinancial Performance“After muchchange the Boardis pleased withthe businessturnaroundin FY20.”In FY20, and in particular the secondhalf of the year, the Group facedexceptionally adverse economicconditions stemming from the summerbushfires affecting NSW, VIC andSA up to the end of February 2020,and the global COVID-19 pandemicimpacting Australia from the middleof March 2020. Despite this, theGroup’s FY20 statutory financialresults, particularly in the second half,reflect the benefits now flowing fromthe successful changes implementedover the past 18 months.The Group achieved FY20 revenue of 45.6 million, incorporating a full yearof St David Dairy and Maggie BeerProducts. FY19 included 11 months ofactivities for St David Dairy (acquiredon 1 August 2018) and 2.5 monthsof 100% activities of Maggie BeerProducts, together with 9.5 monthsof 48% of Maggie Beer Products netprofit as an associate (acquisition ofthe remaining 52% was completed on15 April 2019).The Group incurred a loss after tax of 14.8 million (FY19: loss of 21.7million) reflecting: Maggie Beer Products: Continued toperform well with improved EBITDA(on a full ownership basis) even withthe impact of the 2020 summerbushfires and COVID-19 pandemic. Paris Creek Farms: A non-cash,non-operating goodwill impairmentexpense of 12.1 million reducedgoodwill to nil for this asset, whilea sales turnaround and reducedoperating costs returned the businessto positive trading EBITDA run-ratelate FY20.10 S t David Dairy: Resilient salesgrowth and double-digit % EBITDAmargin despite the impact ofCOVID-19 restrictions on thehospitality sector. H ead Office: Reduced corporatecosts.All trading EBITDA numbers excludethe positive impact from the adoptionof AASB16 on 1 July 2019 to makethem comparable to FY19 EBITDAnumbers.Maggie Beer ProductsDespite the impact of the summerbushfires and COVID-19 pandemic,Maggie Beer Products continued todeliver strong results with EBITDA up35%, on a comparable FY19 basis, to 2.7 million (comparable FY19: 2.0million). With a continued focus onoperational efficiencies the businesswas able to increase its EBITDA marginby 3.4 points to 12.9% (comparableFY19: 9.5%).Net sales of 20.8 million werealmost flat against the prior year(comparable FY19: 20.9 million),a direct impact of the bushfires andCOVID-19 pandemic. However,sales performed strongly in May andJune 2020, up 25% on May andJune FY19, as consumers turned toAustralian brands that they know andtrust. The business also saw growthfrom its e-commerce sales, with moreconsumers looking for home deliveryoptions. Maggie Beer cheese wasthe number one selling line for the yearwith fruit paste, stocks and pate allcontributing strongly.Continuing from the successful Q4FY18 restructure and cost out initiativesreducing labour, selling, marketing and

overhead expenses, total expensesas a percentage of net sales reducedby a further 3 points to 35% in FY20(comparable FY19: 38%).While focusing on the businesscost base, management is alsoconcentrating on launching newproducts to address changingconsumer tastes, with five new cheeselines launched nationally in June2020 and its plant-based ready-mademeals launching nationally in Colesin October 2020, and further newproduct launches planned for FY21.Paris Creek FarmsParis Creek Farms’ performancein FY20 reflected the anticipatedturnaround in sales and benefits fromoperational changes that started tobe implemented in Q4 FY19 andcontinued into FY20. The business’reduced cost base and recovery insales, underpinned a very strongimprovement in EBITDA. A positivemonthly trading EBITDA run-rate wasachieved by the end of FY20, withH2 FY20 trading EBITDA close tobreak-even.Net sales for FY20 grew by 7% to 16.0 million (FY19: 15.0 million).The second half of the year sawstronger revenue growth with salesfor H2 FY20 up 19% to 8.2 million(H2 FY19: 6.9 million). Growthreturned in branded dairy productsin supermarkets in the core SouthAustralia market. In supermarkets inSouth Australia, private label volumesalso increased with strengthenedrelationships with key customers inmajor and independent markets,amongst other initiatives implementedsince H2 FY19.FY20 gross profit was up 25% to 6.9 million (FY19: 5.6 million),with gross margin percentageimproving by 6.0 points to 43.3%,with H2 FY20 reaching 46.3%,its highest level since acquisition.This improvement is the result of thebusiness’ focus on increasing sales ofits more profitable and higher volumelines, reduced overhead costs, lesswastage and better utilisation of thebusiness’ manufacturing assets andmilk pool.Paris Creek Farms’ farmers continueto deliver milk in accordance withits supply growth trajectory, with anyexcess milk over the spring monthsbeing on-sold to third parties.Significant savings resulted fromsuccessful cost reduction initiativesimplemented since Q4 FY19, withtotal expenses reduced by 1.6million over FY20 (equivalent to 2.2million at FY19 sales levels). Labourcosts reduced significantly, being10 points lower than FY19 as apercentage of sales.Overall, excluding non-recurringsignificant items, Paris Creek FarmsFY20 EBITDA was 3.0 million higherthan a comparable FY19. Furtherrefinements to its cost base andimproving sales and products mix, areexpected to underpin further growth inFY21.St David DairySt David Dairy has proven to betremendously resilient in the face ofCOVID-19 related restrictions imposedon the hospitality and foodservicesector across Australia from mid-March2020, with the business still managingto grow sales in Q4 FY20. Sales forthe month of June 2020 prior to stage4 restrictions, were back to the growthrate enjoyed in H1 FY20.The business experienced a shortbut sharp drop in sales in the last2 weeks of March 2020 when alarge number of hospitality businessesscrambled to adapt to the newCOVID-19 restrictions imposed by theState Governments. St David Dairyresponded to the sudden change bycontracting its cost base, channellingany excess milk in March to otherprocessors and expanding its footprintinto grocers and independent retailers.Despite the exceptionally adverseconditions, St David Dairy continuedto deliver revenue growth andincreased customer numbers. Saleswere up 13% to 8.2 million(comparable FY19: 7.2 million),with the number of ordering customers(stores/cafes) up 20% (up 18% fromH2 FY19).Although milk sales slowed in lateMarch and early April 2020, salesregained momentum in May and June2020, and continue to be the largestproduct category at 67% of total netsales (FY19: 73%). FY20 milk saleswere up 4% compared to FY19, andthe introduction of plant-based milk hasseen some diversification with its sharenow 4% of total sales (FY19: Nil).The sales increase to retailers in Q4FY20 resulted in a 59% increase inyoghurt sales (compared to FY19 on afull ownership basis). The continuinggrowth in demand by our Sydneybased distributor, coupled with anincreased demand by bakeries andrestaurants, underpinned growth inbutter and cream sales (up 17% and39% respectively compared to FY19M AGGI E B E E R HOL DI N GS L I M I T E D A N N UA L R EP ORT 2020 PA G E 11

OPERATIONS REPORT (Continued)on a full ownership basis).Gross Profit (GP) reflected the positivesales performance for the period.However, gross margin percentagewas adversely impacted by industrywide increasing milk (up 10% on acomparable FY19) and cream costs(up 5% on a comparable FY19)resulting in a 2.6 point decrease ingross margin percentage to 52.0%(comparable FY19: 54.6%).FY20 EBITDA of 1.0 million wasdirectly impacted by raw materialcost increases, while the renewal ofthe ageing truck fleet at the start ofH2 FY20 mitigated some of the extrafreight costs incurred in H1 FY20and will contribute positively to futureEBITDA margin. Labour costs stabilisedin FY20 and finished in line with FY19as a percentage of sales, despite somereduced activity in parts of March andApril 2020.St David Dairy has proven particularlyagile and resilient in responding toCOVID-19 challenges and with milkand cream input prices softening inFY21 and its new diversified businessmodel, the business is expected tocontinue to grow in FY21, undercurrent trading conditions.CorporateShared services and corporate officecosts of 2.5 million (excluding oneoff items) were 2.0 million lower(comparable FY19: 4.5 million), withemployee costs the most significantcomponent. FY20 included net one offcosts of 0.5 million (H1 FY19: 0.1million) related to the corporate office12restructure, offset by a claim settlementand COVID-19 government grants.The corporate office was realigned tomeet current Group requirements.Balance SheetThe Group is supported by a strongbalance sheet with net assets of 50.6million (30 June 2019: 65.5 million),including a cash balance of 7.2million at 30 June 2020 (30 June2019: 9.8 million) and an undrawninvoice finance facility of 3 million.The decrease in net assets is mainlya result of the 12.1 million non-cashfull impairment of Paris Creek Farms’goodwill at 31 December 2019.With a reduced cost base acrossthe Group, a turnaround in sales inParis Creek Farms, and collectionsfrom Maggie Beer Products’ seasonalsales, positive operating cashflow of 3.1 million was generated in H2FY20. The lower cash balance overthe course of FY20 was mainly due tocorporate office restructure costs andcash funding to Paris Creek Farms inH1 FY20.Inventory at 30 June 2020 was 3.5million (30 June 2019: 3.6 million)or 7.9% of annualised sales (FY19:8.5%), with Maggie Beer Productsholding 2.5 million of stock (30June 2019: 2.7 million) and ParisCreek Farms 0.8 million (30 June2019: 0.8 million). Overall workingcapital for the company is at circa10% of sales (excl. AASB16 impacts),a decrease of 4 points compared to31 December 2019 as a result of thecollection in H2 FY20 of the strongerH1 FY20 Maggie Beer Products sales.The adoption of AASB16 Leases from1 July 2019 has had a negligibleimpact on the Group’s net assets( 0.0 million).A disciplined approach to workingcapital and the Group’s cashmanagement will continue.OutlookDespite the significant challengesduring the year, the Board is pleasedwith the business turnaround in FY20and anticipates that the Group is nowin a strong position to capitalise on thegrowth opportunities for its premiumbranded food and beverage portfolio.With a continued focus on workingcapital initiatives, a strong innovationpipeline and increasing consumerdemand, the business should deliverlong term sustainable growth for theGroup, and shareholder value.

WE BELIEVE INSUSTAINABLEFARMING ANDCREATINGPRODUCTS ASNATURALLY ASTHEY CAN BEM AGGI E B E E R HOL DI N GS L I M I T E D A N N UA L R EP ORT 2020 PA G E 13

CORPORATE RISKMANAGEMENTThe Company is committed to the effective management of risk to reduce uncertainty in the Group’sbusiness outcomes and to protect and enhance shareholder value. There are various risks that couldhave a material impact on the achievement of the Group’s strategic objectives and future prospects.Key risks and mitigation activities associated with the Company’s objectives are set out below:RiskMitigation actionDairy Prices Delivery of the Company’s strategic initiatives focused on shifting the product mix to valueadded products to reduce the exposure to price movements. Fixed in prices within farmer supplier contracts.Milk supply C ontracts with all farmer suppliers to capture available supply. Provide farmer suppliers incentives to grow their milk pool. Provide incentives to attract new farmer suppliers to convert from conventional farming tobiodynamic organic farming.Profitable Growth stablishing prices to reflect the premium nature of the product range.E Targeted sales channels to maximise distribution. Focused allocation of milk supply to maximise the profitability of the product portfolio. Optimisation of the existing product portfolio complemented with new product development. Target investment in delivering growth strategies into new markets.COVID-19 All production facilities of the Group have enacted a COVID-19 response plan, whichincludes following Government recommendations and imposed restrictions, physicaldistancing measures, increased sanitisation and cleaning procedures, a higher level ofpersonal protective clothing, temperature checks and contactless delivery. Full business segregation measures have been put in place within all three manufacturingsites, to ensure isolated shutdowns and continuing operations should a staff member becomeinfected with COVID-19. Alternative production sites were identified wherever possible, in case a site was shut downdue to COVID-19. Where possible, staff have been directed to work from home. Employee safety and wellbeing is paramount with strict COVID-19 testing regimes andsupport in place for employees who feel unwell.People safety F ocus on safety through active identification and management of safety hazards andoperational risks. Continued capital investment to mitigate safety hazards.Product qualityand safety Continue to deliver food quality and safety disciplines with absolute commitment to meetingor exceeding all food safety requirements. Continued capital investment to support the production of qualityprodcts.Environmentally Mechanisms in place to identify, manage and monitor compliance with key environmentalsustainablerequirements.business practices Focus on reducing environmental footprint through effective management of emissions. Continued investments to increase operational effectiveness and efficiency of productiveassets. The Group employs suitable people to monitor and manage compliance.Change inregulationsAttraction,retention of keyroles14 The Group employs suitable people to monitor and manage compliance. Experienced leadership team to deliver key strategic initiatives and execution of businessplans. Further investment in talent to continue to align with the Group’s organic growth plans.

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DIRECTORS’REPORT“With MaggieBeer Productsdirect toconsumer salesgrowing by220% in Q4 ofFY20, we havethe opportunityto capitaliseon its growingFood Clubmembership andon-line socialmedia presenceto grow revenue”The directors present their report,together with the financial statements,on the consolidated entity (referred tohereafter as the ‘consolidated entity’)consisting of Maggie Beer HoldingsLimited (referred to hereafter as the‘company’ or ‘parent entity’) and theentities it controlled at the end of, orduring, the year ended 30 June 2020.DirectorsThe following persons were directorsof Maggie Beer Holdings Limitedduring the whole of the financialyear and up to the date of thisreport, unless otherwise stated:Reg Weine (Non-executive Chairman)(appointed 13 March 2020)Tom Kiing (Non-executive Director)Hugh Robertson (Non-executive Director)Maggie Beer AM (Non-executive Director)Tony Robinson (Non-executiveChairman) (retired 29 November 2019)Laura McBain (Managing Director)(resigned 27 November 2019)Principal activitiesDuring FY20, the principal continuingactivities of the consolidatedentity was the sale of brandedpremium food and beverage inAustralia and overseas markets.DividendsThere were no dividends paid,recommended or declared during thecurrent or previous financial year.Review of operationsThe loss for the consolidated entityafter providing for income tax16amounted to 14.8 million (30June 2019: 21.7 million).Financial PositionThe net assets of the consolidatedentity decreased by 14.9 millionto 50.6 million (30 June 2019: 65.5 million). This decrease wasmainly due to the non-cash impairmentcharge to goodwill relating to ParisCreek Farms of 12.1 million.Operating results for the yearThe consolidated entity reported anet loss after tax of 14.8 millionfor the financial year (FY19: lossof 21.7 million). The reduced netloss achieved reflected a resilientperformance from all operatingbusinesses in the face of exceptionallyadverse economic conditions due tothe summer bushfires and COVID-19pandemic. The net loss after tax of 14.8m, included the 12.1 millionnon-cash goodwill impairment of ParisCreek Farms at 31 December 2019.Significant changes in the state of affairsOn 30 October 2019 the Companyannounced the resignation of LauraMcBain as Managing Director andChief Executive Officer, and theappointment of Chantale Millard as theacting Chie

Maggie Beer AM (Non-executive Director) Company Secretary Clinton Orr Chief Executive Officer Chantale Millard Registered office 2 Keith Street, Tanunda, SA 5352 . MAGGIE BEER HOLDINGS LIMITED ANNUAL REPORT 2020 With 19% net sales growth in the second half of FY20 (compared to H2 FY19), the business has good