AAM FY24 Sustainability Update by aaminvestmentgroup

FY24

Disclaimer

This report contains general information only and is based on information from reliable sources; though no representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented. The report is provided solely for information purposes and relates to AAM’s sustainability initiatives and activities generally and is not specific to any particular AAM business or fund. This report is not a recommendation or offer to invest in any fund managed or operated by AAM, is not provided in connection with any investment offer in any AAM managed or operated fund and is not intended to be utilised or relied upon in making a decision to invest in any AAM managed or operated fund.

About this report

Forward-looking statements

This report may contain forward-looking statements that express our intentions and expectations for the future. These statements are not guarantees of future performance, and actual results may differ from what is expressed or implied in these statements. We base our forward-looking statements on current knowledge and information available at the time of reporting, and we are not liable for future events or outcomes that do not align with these statements. We caution against relying solely on these futureoriented statements when making decisions or drawing conclusions.

Report boundary

Throughout this report, the terms 'AAM', 'our business', 'organisation', 'we', 'us', 'our', and 'ourselves' refer to AAM Investment Group Pty Ltd and all subsidiaries and managed investment entities of AAM. This report encompasses information pertaining to all assets owned, managed, and operated by the AAM group of companies, and does not relate to any specific fund or asset managed or operated by AAM.

‘AAM’ in this document refers to AAM Investment Group Pty Ltd ABN 28 612 701 274 or its subsidiaries or associated entities (as the context requires).

‘AAM Board’ is the AAM Investment Group Pty Ltd board of directors.

Report scope

This Sustainability Report has been collaboratively prepared by the AAM Sustainability team, in partnership with various entities within AAM and various entities within our portfolio. This report represents the activities conducted by AAM during the financial year 2024, spanning from July 1 2023 to June 30 2024, across AAM-owned, managed, and operated assets unless otherwise specified. The report is tailored to address topics identified as material to AAM.

Feedback

We welcome feedback on this Sustainability Report. For enquiries or comments, please reach out to us at: sustainability@aamig.com.au

Message from our Managing Director

It is once again my pleasure to share with you the initiatives we have undertaken over the past year to manage the environmental, economic and social aspects of our operations.

Globally, the attention on agriculture has never been greater, with investment, resources and policy aiming to generate more sustainable food systems.

As managers of more than 1.7 million hectares of land in regional Australia and large scale producers of natural food and fibre products, this brings with it an incredible responsibility to manage our environmental resources, while contributing more than ever to the enormous task of supporting the food security of a growing global population.

The United Nations Food and Agriculture Organisation projects a 20% increase in demand for animal-sourced foods by 2050, driven by a growing global population. Our efforts to address this challenge are not just about increasing production, but also ensuring we do this efficiently with the resources and assets we manage.

Nature-based solutions are central to addressing this challenge and we are deepening our understanding of the ways we can support this solution. This year, we

partnered with FarmLab to better understand our soil carbon levels across our assets and began a trial with organic fertiliser at Bective Station, as our soil is key to not only food production but the long-term beneficial storage of carbon.

The Australian Government's review of carbon project methods presents new opportunities, as we expect the proposed Integrated Farm and Land Management method to accelerate our ability to register sustainable carbon projects in the future and open up the potential for new diversified revenue streams in natural capital.

We continue to monitor updates on the Australian Government's Nature Repair Market scheme, an initiative that aims to incentivise land management practices which seek to deliver improved biodiversity outcomes.

With rising input costs impacting businesses globally, we seek opportunities to deliver sustainable agricultural developments that provide options to diversify our production systems.

Development opportunities are executed in accordance with State, Territory and National development guidelines, best practice, legislation and

standards that reflect the need for consideration of nature in sustainable development pathways.

We are realistic, and know that nature-based solutions are only part of the answer, and that we need to utilise every tool available as part of an integrated approach to environmental and production outcomes. Over the past six years, AAM has invested in solar infrastructure and battery technology across our assets to reduce our reliance on fossil fuels. This investment continues as we expand solar infrastructure across our northern assets.

The growing attention on agriculture means leadership is more important than ever. We see it as a responsibility to lead by example and contribute to this conversation through collaboration that supports stakeholder education and informed agricultural policy development. We are proud to actively participate on industry boards, committees and working groups that ensure agricultural interests are at the table.

As a group, we directly support more than 500 families, with 79% of our staff living in and supporting regional communities. We take this responsibility seriously and are proud of our growing team.

Implementing initiatives requires a team of talented

and dedicated individuals, supported by workplaces that value their skills and a company committed to their safety and wellbeing. AAM's investment in workplace safety, professional development, and improved working environments is central to our efforts in building stronger rural communities. This commitment has led to a 21% improvement in our Lost Time Injury Frequency Rate, reinforcing our dedication to creating safer workplaces.

With this in mind, it gives me great pleasure to present AAM's latest Sustainability Report and to share with you some of our ongoing contribution to a positive future for agriculture, and our rural and regional communities.

Yours sincerely,

Garry Edwards Managing Director

16 December 2024

FY24 Progress

asset value

$938m litres of diesel projected to be saved annually as a result of new solar infrastructure1

75,000 improvement in lost time injury frequency rate2 21%

2nd emissions assessment across our assets Completed in estimated economic impact nationally3

$542k

$207m in community partnerships and donations

1Based on a projected annual diesel saving at Maryfield Station and Limbunya Station, based on FY23 consumption

2 LTIFR is the number of lost-time injuries within the year, relative to the total number of hours worked in that year

3Based on REMPLAN, a software tool used in Australia for regional economic analysis and planning, estimating economic impact nationally, as a result of AAM managed and owned businesses, incorporating actual revenue received and capital investment

View our 2023 Report

Our inaugural report detailed our Sustainability Framework and its three core pillars – planet, people and prosperity – which guide our focus for continuous improvement.

Scan the QR code to explore the inaugural 2023 report.

Our business

AAM is a large-scale, wholly Australian-owned operator and provider of strategic investment, asset management and operational management services to Australia’s agricultural industry. At the heart of the AAM business is a belief in the strength and long-term performance of Australian agriculture.

This vision is supported by AAM’s foundational philosophy to diversify investments across supply chains and geographical production areas, and actively manage them by focussing on creating operational efficiencies through scale and developing their potential for capital growth.

A snapshot1

million hectares under management 1.7 asset value under management $938m States and Territories where AAM assets are located 5 people (FTE), 79% live in regional areas 511 Year AAM established 2007

Our national team spans five States and Territories and includes more than 500 employees across 32 assets. We manage $938 million of assets in multiple agricultural sectors including beef, sheep, poultry and softwood timber processing.

Our vision

To promote investment that leads change in the agricultural industry to create a positive and sustainable legacy.

Lead the way

Value our people

Intergenerational thinking

An update on our journey

The AAM Investment Group 2024 Sustainability Report outlines key activity undertaken in the 2024 financial year and builds on our first Sustainability Report published in 2023. These activities are not new to us, we have been investing in initiatives that showcase our commitment for years. Here are just a few examples from our history:

2018

We acquired our first asset, Riverlands Free Range, as part of our managed investment portfolio. Since the acquisition, we have integrated solar with 200 kW solar PV systems installed at each of the 7 farms, resulting in a total aggregated capacity of 1.4 MW. Since this first acquisition, we have grown the poultry business by approximately 150%, with Murray Bridge, Rathdowney and Karinyah.

2024

Continued to explore carbon opportunities across the portfolio and collaborated with the University of Queensland and FarmLab on a remote sensing project aimed at improving soil carbon stock estimates. Additionally, we have expanded solar infrastructure across our Northern Territory assets, projected to save 75,000 litres of diesel annually.

We are proud of the role we play in Australian agriculture, providing essential food and fibre to both domestic and international markets. While agriculture is critical in feeding, clothing and housing consumers, we recognise the important part we also play in supporting ecosystem services and supporting emissions reduction pathways.

As a business, we are cognisant of the mounting regulatory, environmental and social pressure Australian

agriculture is facing, and we are taking steps to build our capacity to navigate these expectations and demonstrate our impact, while producing essential Australian food and fibre that is so important to the wellbeing of local and global communities.

Over the past year, we have engaged with both internal and external stakeholders to understand what is materially important to them and to further identify key sustainability opportunities and risks for AAM.

2019

We expanded operations into softwood timber manufacturing, producing plantation softwood products aligned with The Ultimate Renewable™, an Australian radiata pine timber product. Timber products continue to store carbon throughout their lifespan, with about half the wood's dry weight being carbon absorbed from the atmosphere by growing trees.

2023

We baselined our carbon emissions footprint, registered (conditional) our first carbon projects and published our inaugural sustainability report.

This feedback has allowed us to build on the foundations of the AAM Sustainability Framework and focus our investment on what we consider to be important from an environmental, social and economic perspective.

This year's report enables us to communicate our actions to key stakeholders. It details the initiatives implemented over the past 12 months, highlighting

2022

Developed an efficient waste management solution at Riverlands Free Range, by integrating vermiculture and composting techniques into its poultry manure management system. This initiative supports a circular economy by transforming waste into valuable, nutrient-rich compost.

the impacts that we as a team have made across the portfolio. We continue to enhance our approach to sustainability in our operating businesses as we look to the years ahead.

We are always humbled by the opportunities to learn, grow and adapt our business, while continuing to improve our assets for the long-term and drive performance outcomes for our investors.

What we produced1

15,810

tonnes of red meat, equivalent to 79 million serves of red meat

267,486

m3 of softwood timber produced, the equivalent amount of timber to build 18,000 homes2

tonnes of chicken meat,

Darwin Office NT

Manbulloo Station, Scott Creek, Sturt Downs NT*

Legune Station, Spirit Hills* Sweetwater* NT

Maryfield Station NT

Limbunya Station NT

1as at 30 June 2024

2 based on a weighted average of one and two storey detached homes using 14.58m3 of timber

3based on a 25kg bag of fertiliser

4based on 5,000kWh per house per year

Our asset portfolio

AAM Poultry - Riverlands SA

AAM Poultry - Murray Bridge SA

AAM Timber – Suttontown SA

AAM Timber – Compton SA

VIC

Western Queensland Livestock Exchange (WQLX) QLD

Terrick Terrick, Thornleigh, Moorlands, Wooroolah, Mount Harden QLD

South Burnett Livestock Exchange (SBLX) QLD

Brisbane Office QLD

Bective Station NSW

Burrawang Dorper and White Dorper Stud NSW

AAM Timber –Narangba QLD

AAM Timber – Bathurst NSW

AAM Timber (3 plantations)

AAM Poultry - Karinyah NSW

AAM PoultryRathdowney QLD

AAM Timber – Yahl SA

StockLive Online Auction

Stakeholder engagement and materiality

AAM works closely with various industry partners to create opportunities and help shape positioning and direction in relevant sectors. This engagement includes presenting at and attending industry conferences, participating in roundtable discussions and representation on the Cattle Australia Board and Regional Consultative Committees, Australian Beef Sustainability Framework, South Australia Forest Products Association working groups and Queensland Livestock Exporters Association Board.

To continue to focus on the most material sustainability topics for our business and our stakeholders, this year, we conducted a Materiality Assessment to determine and prioritise these topics. As part of the assessment process, we:

• Analysed the themes within the Australian Agricultural Sustainability Framework (AASF), selected by AAM for its approach to multiple agricultural commodities and its focus on agriculture in an Australian context

• Reviewed international frameworks, such as the Sustainability Accounting Standards Board (SASB) standards for meat, poultry and dairy production

• Gathered feedback from both internal and external stakeholders (investors, employees, supply chain partners, communities, government and industry associations) to help identify the topics that represent the most significant risks or opportunities for AAM, and to understand their decision-making priorities

This feedback was analysed and reviewed by the AAM Sustainability Steering Group and Senior Leadership Team, and adopted by the AAM Board.

From the Materiality Assessment, we identified the following critical areas of focus:

• Animal health and welfare

• Climate

• Environment

• Supporting our people, community and First Nations engagement

This assessment lays the groundwork for future efforts to quantify and refine our understanding and

implementation of these priorities in the context of managing risks and opportunities for the business.

Our Sustainability Framework

Planet

Animal Welfare

Provide an environment where our livestock can thrive

Climate

Understand climate impact and develop management strategies

Environment

Manage natural resources while producing food and fibre

People

People and Workplace

Keep our people safe and continue to make AAM a great place to work

Community

Create a long-term positive legacy in the communities where we operate

Prosperity

Economic Resilience and Productivity

Drive economic resilience through governance, active management and innovation

Product Quality

Produce quality food and fibre

Strong foundations

Intergenerational thinking

Work together

Value our people Safety Act with integrity

Future focused Lead the way

Changes made to the AAM Sustainability Framework following the 2024 Sustainability Materiality Assessment include the refinement of the following pillars:

• Planet: Focus on animal welfare, climate and environmental stewardship. Water and waste are reported under the environmental stewardship section. Energy and Greenhouse Gas (GHG) emissions are reported under the climate section

• People: Focus on people and workplace, and community to simplify the categories

• Prosperity: Focus on governance, economic resilience, innovation and product quality

Further information on our approach to establishing our Sustainability Framework can be found in the 2023 Sustainability Report.

Our progress

In the 2023 Sustainability Report, we demonstrated alignment with 11 of the United Nations Sustainable Development Goals (SDGs). This year, we have highlighted our progress towards several of these goals.

SDG

AAM contribution

Good health and well-being

• Supported Foodbank by contributing to Mount Gambier's School Program, helping to provide up to 20,000 meals for children in need across the Limestone Coast, South Australia

• Invested in mental health services for both our employees and the community through our Employee Assistance Program. This initiative offers 24/7 access to professional support for our employees and their immediate family

• Sponsored This Is A Conversation Starter (TIACS) as a Diamond Partner, with our contribution equating to 1,300 professional counselling sessions per year

• Raised awareness of blood and stem cell donations by initiating AAM’s Lifeblood team, resulting in staff who have subsequently donated

• Gold sponsor of Ride West, a charity supporting the Royal Flying Doctors Services' Queensland mental health program in regional and rural Australia, which raised more than $650,000 during the year

Affordable and clean energy

• Increased solar infrastructure on several assets in the Northern Territory, to reduce reliance on diesel generators

• Produced 1,553,174kWh of solar energy produced across our poultry and northern assets, with excess generated energy returned to the grid

Decent work and economic growth

• AAM helped establish a cultural tourism enterprise, in partnership with the Djarrany-Djarrany Native Title holders at Legune Station and a commercial tourism partner

• Investing in the Indonesian beef supply chain has resulted in the creation of new jobs, the development of feedlot infrastructure, and the enhancement of skills. This initiative supports over 100 families working directly within the feedlot and thousands of families supplying to this enterprise

• Continued our early career graduate management program, now in its third intake, with graduates successfully progressing into full-time roles within the business and adding a new timber-specific graduate opportunity

• Developed and implemented AAM’s Parental Leave Program

• Increased internal awareness of modern slavery through online training

Responsible consumption and production

• Promoted responsible forest management with 67% of AAM finished timber eligible to be certified to Forest Stewardship Council Chain of Custody (FSC) by actively exploring opportunities to expand third-party certification across our timber mills. AAM Timber manufactures Australian radiata pine timber products aligned with the Ultimate Renewable™, and is focused on improving recovery of building products from these logs as they sequester carbon for the lifetime of the wood product

Climate action

• We are invested in the processing of renewable building materials using softwood timber, which sequesters and stores carbon in timber products

• Continued to assess and scope sequestration and emissions avoidance project opportunities aligned to the established Australian Carbon Credit Unit (ACCU) scheme

• Registered (conditionally) Human Induced Regeneration carbon projects with the Clean Energy Regulator

Animal welfare

Climate

Environment

As at 30 June 2024

1Feed yards refer to Bundaberg Yard, Maryfield Yard and Bective Feedlot

Provide an environment where our livestock can thrive

As a business, we have continued to invest in infrastructure, training and governance structures that promote continuous improvement in animal welfare outcomes.

To support our teams we updated our Livestock Guidance Manual and incorporated updates to our Pain Relief Policy for practical implementation. Our teams continue using the safety reporting system to identify and mitigate welfare risks for both our people and livestock.

At our northern assets, we have developed a program specific to using horses to enhance both rider safety and animal welfare, which encompasses horse selection, rider education and training. Our livestock team at Terrick Terrick participated in a livestock handling school, with further clinics scheduled for our Northern Territory assets during the 2025 financial year.

In all our poultry operations, third-party animal welfare audits continue to measure and assess our compliance with Australian standards, beyond minimum regulatory requirements. This year, we have created a new poultry welfare position across AAM Poultry, to support ongoing improvement.

AAM continues to manage biosecurity risk by engaging with State and Territory Governments, conducting biosecurity training as part of our northern Induction Training Program and implementing additional biosecurity measures at AAM Poultry sites to reduce the risk of exposure to Avian Influenza.

Key highlights

Investing in shade infrastructure

This year, we expanded pen shade systems at the Legune Station and Maryfield Station feed yards to provide increased shading to reduce temperature and create areas of rest to deliver a more comfortable environment for our livestock. This initiative enhances

animal welfare outcomes and has resulted in improved productivity and weight gains at the Legune Station facility.

Animal welfare in Indonesia

Our operations are focused on unlocking opportunities in downstream supply chains, specifically through the retained ownership and management of cattle feeding in Indonesia. For more details, see page 37.

Prioritising animal welfare is crucial to our business success and this work is led by experienced teams in Indonesia and Australia. All facilities within the supply chain are approved and third-party audited under the Australian Government's Exporter Supply Chain Assurance System (ESCAS). AAM has appointed a dedicated team, including animal welfare officers based in Indonesia, to assist in education and support positive animal welfare outcomes throughout our Indonesian supply chain.

Animal welfare certification for northern cattle

AAM has partnered with pastoral producers in Northern Australia to explore options to develop a certification solution for northern rangelands beef production. This collaborative project is supported by the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia’s national science agency, which has carried out extensive research in animal welfare.

RSPCA Approved Farming Scheme

We’re proud that 100% of our properties (Murray Bridge Poultry, Riverlands Free Range, Rathdowney and Karinyah) raise their meat chickens to a higher welfare standard and are regularly assessed by the RSPCA Approved Farming Scheme.

Understand climate impact and develop mitigation strategies

In our second year of measuring emissions across the portfolio, we have focused on building internal capacity and upskilling to streamline data collection and measurement. We continue to monitor updates to the Australian Sustainability Reporting Standards (ASRS) on mandatory climate-risk reporting. We are working to grow capability within our teams to meet these new reporting requirements and look forward to providing updates in future sustainability reports.

Key highlights

Solar infrastructure

Solar PV and battery storage was upgraded at Limbunya Station and Maryfield Station during the year to reduce reliance on diesel generators. This initiative is projected to save up to 50-60% or an estimated 75,000 litres of diesel usage every year at these assets, and decrease dependence on fossil fuels. Additional installation of solar is underway at Legune Station, which is expected to reduce annual diesel consumption by an estimated 84,000 litres.

Timber industry decarbonisation plan

AAM Timber has been supporting Forest and Wood Products Australia’s project to establish the Australian Forest and Wood Product industry’s current emissions and sequestration profile, and assist in the development of an industry-wide decarbonisation plan. The project aims to highlight the contribution of Australia's forestry and wood processing sector to the Australian Government's emissions reduction targets.

Weather stations

This year, we have commenced installation of remotely monitored, solar-powered, weather stations across our northern and pastoral assets to access reliable, high quality climate data, and to enhance on-farm decision making.

Carbon markets

As reported last year, AAM continues to assess assets for carbon sequestration and emissions avoidance opportunities, while balancing potential risk to the portfolio.

AAM has conditionally registered carbon sequestration projects to enhance nature-based carbon outcomes, diversify income, and improve land management, both of which are being evaluated against ongoing regulatory changes. The carbon markets are currently fast-moving with some element of uncertainty given future methods are not yet released, however it is anticipated these will generate greater opportunities for engagement in this space once finalised.

Soil carbon measurement

To better understand soil organic carbon, AAM has supported the University of Queensland and FarmLab project, which focuses on the remote sensing of soil carbon stock estimations. This project aims to enhance the stratification of carbon estimation areas and reduce the number of sampling points needed to create highresolution soil organic carbon maps. Results will be used to explore AAM’s carbon project opportunities.

Methane emissions

As a business, we are aware of the increasing focus on reducing emissions, particularly in livestock production. As managers of an integrated cattle enterprise across diverse locations, we acknowledge the importance of operating our herd efficiently for the long term, to reduce the emissions intensity of the beef we produce where possible. We continue to focus our efforts on increasing herd productivity, through improved genetics, pasture utilisation, and getting cattle to market faster. This approach seeks to ensure we produce more kilograms of beef off the same land area and in less time thus reducing the emissions impact of food produced.

In our 2023 Sustainability Report, we illustrated the biogenic carbon cycle of grazing ruminants, which visualises the cyclical nature of biogenic methane emissions from cattle. The Intergovernmental Panel on Climate Change (IPCC) has acknowledged that using current, widely adopted GHG methodologies overestimates the warming impact of short-lived climate gases like methane from a relatively stable source such as the Australian cattle herd1

We believe greater effort is needed to effectively communicate this information, ensuring the public has a more accurate understanding of the environmental impact of livestock production. Grazing ruminants play

GHG emissions assessment

For the second year, we have conducted an estimate of the direct emissions (Scope 1 and 2) from our managed assets. This assessment included all major sources of GHG emissions associated with the operation of our:

• Farms (including beef, cattle, poultry)

• Saleyards

• Timber processing, and

• Corporate offices

Indirect or third-party emissions (Scope 3) derived from third-party operations, purchased livestock and feed, as well as supply chain inputs, were excluded from this initial assessment. Emissions from newly acquired poultry asset, Karinyah, were also excluded due to emissions not being material in this financial year's assessment.

This year, we transitioned to using the SB-GAF Accounting Tool for beef, sheep and poultry production by the Primary Industries Climate Challenges Centre

a vital role in our food production system. They can convert grasses, which are digestible forms of carbon, into food that humans can consume. This is particularly important because most marginal grasslands are unsuitable for growing crops and have no other foodproducing use.

To fully understand the overall warming impact of biogenic methane emissions from livestock, additional research and knowledge is required. We are actively collaborating with relevant industry bodies and stakeholders to gather information and better understand the net impact of grazing ruminants on the land we manage.

Crops for Cattle Project

Legune Station and Maryfield Station are collaborating with the Crops for Cattle research project supported by the Cooperative Research Centre for Northern Australia (CRCNA), aimed at integrating northern cropping and cattle production systems to increase weight gain in the dry season. The project will assess the liveweight gain improvements and profitability of various feeding strategies and model the impact of more efficient production systems on lifetime methane production.

1 IPCC 6th Assessment Report, 2021 Chapter 7

and the University of Melbourne, together with the National Greenhouse and Energy Reporting Determination, to support the modelling of timber processing and office emissions. However, like others in the agricultural sector, we have faced challenges with different tools and updates as they can yield varying outcomes in emissions calculations.

Our team continues to provide feedback on emissions calculators to enhance their accuracy.

As we expand our portfolio, our overall emissions naturally rise due to new asset acquisitions, higher production volumes and an increase in the number of livestock managed. As mentioned, short-lived climate gases like methane (CH4) from a relatively stable source such as the Australian cattle herd are overestimated under current GHG methodologies5. In FY24 our scope 1 and 2 emissions were estimated to be 282,124 tonnes CO2-eq, which is an increase on last year's emissions.

This increase is attributable to the expansion and scaling of operations, with additional assets acquired over the financial year and increases in overall livestock numbers compared to the previous year.

Of the total emissions, 89.0% was attributable to methane from enteric fermentation, which is

the natural digestive process in ruminant animals, commonly known as "cow burps" and animal waste, 5.5% to carbon dioxide mainly driven by fossil fuel and electricity usage, and 5.5% to nitrous oxide attributable primarily to animal waste.

1FY23 total GHG emissions and FY23 timber emissions intensity have been revised based on the most up to date information and data available during the FY24 reporting period.

2FY23 sheep and beef emissions intensity has been revised following a data revision to reflect a weighted average value.

3With the long-term operational strategy in place to reduce emissions intensity in livestock, the increase in beef emissions intensity is a

seasonal outcome that is largely attributed to extreme and prolonged rainfall during the 2023/24 Northern Territory wet season which led to slower growth rates over this annualised period.

4Timber emissions intensity increased in FY23 due to reduced log throughput and higher diesel usage.

5IPCC 6th Assessment Report, 2021 Chapter 7

Manage natural resources while producing food and fibre

Access to, and use of, the natural resources across our portfolio is essential to support the production of food and fibre within our operations. As custodians of more than 1.7 million hectares of land in Australia, effectively managing our natural resources is central to ensuring the long-term productivity of our assets. Over the past twelve months, our operational teams have continued to implement initiatives to manage weeds and erosion. We are monitoring emerging nature-related project opportunities and although still in the early stages, we have commenced desktop assessments of biodiversity projects where market opportunities exist.

Environmental compliance

We continue to review and update asset environmental management plans to ensure environmental compliance is maintained in accordance with stateissued environmental licences. AAM manages nine assets with associated environmental licences, including timber manufacturing facilities, poultry farms and a compost site.

This year, we expanded our EHS (Environmental, Health and Safety) online software solution to streamline environmental compliance and hazard reporting. During the reporting period, all external monitoring and reporting requirements were completed to the satisfaction of the environmental regulators.

Deforestation

Deforestation is a key global issue, with land management practices facing increased scrutiny. Challenges in developing a single global definition of deforestation continue, with regional context and land management practices differing around the world.

International frameworks over the years have set targets on deforestation, like the Food and Agriculture Organisation of the United Nations (FAO) and the Accountability Framework Initiative (AFI). More recently, the European Union Deforestation Regulation (EUDR) was developed, setting a market access requirement for imports into the EU, which is yet to be implemented.

We are closely monitoring the progress of the EUDR. This regulation proposes to mandate that businesses selling into the EU must declare the deforestation-free status of imported goods. Although our softwood timber and beef exposure are considered minimal, we recognise the complexity involved in these sectors within the Australian context. Factors such as diverse regional practices, varying definitions of deforestation, and the unique environmental conditions in Australia add layers of complexity. We are actively engaging with industry bodies in these sectors to support policy development that will enable continued access for Australian products into the EU market.

Key highlights

Organic waste

Following a long-term collaboration with Australian Vermiculture, to combine poultry compost with new worm genetics, we have commenced commercial distribution of the finished organic products. The business is collaborating with several partners to support distribution of our organic fertiliser produced at our Riverlands poultry asset, with potential expansion through our supply chain partners. As we strive to promote a circular economy, AAM’s Bective Station is an end user of this product, trialling its use and impact on soil and plant growth.

Poultry water upgrades

Riverlands Free Range and Murray Bridge Poultry implemented a new water filtration system to enhance water quality and efficiency. Key impacts include improved water consistency, reduced dam usage with lower evaporative losses, and decreased chemical treatment of water for animal consumption.

World Environment Day

This year’s World Environment Day campaign focused on land restoration, combatting desertification and drought resilience. AAM celebrated World Environment Day with the Brisbanebased team participating in tree planting and team-building exercises to support education and promote collaboration.

Sheep integration at Terrick Terrick

Last year, we announced the reintroduction of sheep at Terrick Terrick Station, which has a strong history of sheep operations. Since their return, we have visually observed a reduction in invasive weeds on the property, which we conclude is the result of Dorper sheep's grazing patterns differing from those of cattle.

Waterbirds of Legune Station

Legune Station’s coastal plain wetlands support over 76 species of waterbirds, representing more than 80% of Australia’s freshwater waterbird species. Our cattle operations coexist with these natural ecosystems, demonstrating how agricultural activities can thrive alongside important biodiversity.

People

People and workplace Community

Keep our people safe and continue to make AAM a great place to work

Over the past twelve months, we have continued to invest in our safety strategy and the wellbeing of our people, including developing systems, promoting wellness and relaunching our safety golden rules. Further investment has been made in the upgrades to staff facilities and accommodation, including AAM investment in recreational facilities. Our early career graduate management program is in its third intake, successfully progressing graduates into full-time roles within the business, while we have also added a new graduate opportunity dedicated to AAM Timber.

This year there were 37 internal appointments across AAM, with professional development and training opportunities provided to further develop careers within the business.

Key highlights

Learning and development

Established a new approach to learning and development, with a dedicated resource implementing opportunities for staff to upskill and develop in their roles. This year we developed and implemented many online training resources, including increasing awareness of the Modern Slavery Act among our employees. We also held various development forums to train and upskill our people, including the annual AAM Managers’ Conference.

Priority health care

Engaged priority health care services to implement an early intervention program for workplace injuries.

Employees can seek 24/7 timely and efficient triage and medical advice following an injury to allow for a quick return to the workplace where medically possible. This service provides early medical support and advice on how to best manage an injury, thereby promoting health and wellbeing while lessening the mental, physical and financial impacts of being away from work.

New parental leave program

Developed AAM’s Parental Leave Program, which includes a paid parental leave scheme to support an accommodating and inclusive workplace.

Safety culture

We have maintained a robust safety culture throughout the organisation by implementing several new initiatives. One of these is the Digital Safety Hub, which launched a centralised safety tool and online safety management system for all assets, enhancing contractor management and site inductions. Additionally, we have enhanced our monthly safety reports, with the AAM Board now receiving updates on both lead and lag safety indicators, such as hazards, near misses, S.A.S, and Lost Time Injury Frequency Rate (LTIFR).

Our approach to safety is celebrated through a formal recognition program. We also reinforced our dedication to safety with the relaunch of the Golden Rules and the employee risk management tool—Stop, Action, Start (S.A.S). This strong emphasis on safety culture has led to six of our assets operating for over 12 months without a Lost Time Injury (LTI).

The ongoing commitment to safety improvements in AAM Timber has resulted in the LTIFR falling 60% below the industry average of 27.8

Create

a long-term positive legacy in the communities where we operate employees working in regional Australia 79% spent with regional suppliers1 $15m+ community-based initiatives supported 60+ in community partnerships and donations $524k

AAM is a proud contributor to the communities in which we work, live and invest. We prioritise supporting our local communities, broader national initiatives and opportunities that contribute to the enhancement of regional and rural Australia, the agricultural industry and its people.

1Regional suppliers include suppliers in close proximity to our assets, suppliers with a national footprint are excluded from this classification, other exclusions include suppliers of livestock and timber purchases.

Supporting local communities

Building community spirit and engagement across rural and regional communities where we operate is important to us. Investing in communities is also key to retaining staff and their families in regional and remote Australia. Throughout the year we have supported local agricultural shows, various community and school sporting events and clubs, and food-based charities.

Highlights include

'Border Bash' Cricket Day

Legune Station hosted its second 'Border Bash' cricket day, drawing participants from various northern AAM stations, neighbouring properties, and rural contracting crews. Ten teams competed in roundrobin matches on the day.

Blanchetown Community Space

Riverlands Free Range supported the installation of new playground equipment in the Blanchetown community. To encourage active and healthy communities, the business also sponsored the Murray Bridge Little Athletics Club and local football club for the year.

Foodbank

AAM Timber - Suttontown has directly supported Foodbank's Mount Gambier School Program, helping to provide up to 20,000 meals for children in need on the Limestone Coast region of South Australia.

Community sporting events and clubs

AAM proudly supports a diverse range of sporting events and clubs across its portfolio, from junior football and netball to charity carnivals and campdrafts. We understand the vital role these events play in fostering community spirit and the positive impact they have on both local communities and the people involved.

Agricultural-related initiatives

Supporting agricultural initiatives is crucial to strengthening and building the industry. This year, we proudly supported several programs that fostered learning and opportunities for the next generation in agriculture.

Highlights include

NTCA NTI360 Program

The NTI360 Program is designed to provide practical, hands-on learning, relationship development and cultural exchange between the Indonesian and North Australian beef cattle industries. This year Legune Station hosted two students as part of the program.

Beef Australia 2024

AAM was a proud sponsor of Beef Australia, the largest beef event in the Southern Hemisphere. The event provided opportunities to engage, learn, network and inform, with the AAM team getting involved in all aspects of the week-long program. During the event, our Live Export Manager Dr Charles Vaughan was named 2024 Rabobank Young Beef Ambassador.

Zanda McDonald Award

AAM is a proud ongoing sponsor of the Zanda McDonald Award, which is focused on providing incredible opportunities for future leaders in agriculture through education, connection and collaboration.

Charity Auctions

In the past year, StockLive partnered with 14 charity auctions as the official streaming partner, including the AACo Dolly’s Dream Charity Auction, Rural Aid’s Long Lunch Charity Auction, and the National All Breeds Junior Heifer Show Charity Auction. StockLive Sales Manager NT/QLD, Tammie Robinson, supported six youth camps involving around 480 students, fostering confidence in the next generation.

Health and wellbeing

Donating to major charity groups and local and national causes is key to supporting people and communities in regional Australia. Some of the charities we supported this year included Dolly’s Dream, RideWest, TIACS & Trademutt, Rural Aid, Foodbank, Outback Futures, Australian Red Cross Lifeblood and Men’s Shed.

Highlights include

This Is A Conversation Starter (TIACS)

We are incredibly proud to be a diamond contributor, and to witness the launch of campaigns like 'Don't Keep It Under Your Hat.' Our contribution supported the equivalent of 1,300 professional counselling sessions, helping to break down the physical, financial and social barriers for blue collar communities and more specifically people in farming and agricultural industries.

Men’s Walk and Talk

AAM Timber - Bathurst continued its sponsorship of Bathurst Men’s Walk and Talk. A place to chat and walk aimed at improving all areas of health – mental, physical and social.

Outback Futures

Outback Futures offers school students access to extra support including speech pathology and occupational therapy. Our contribution supported allied health clinicians to deliver 245 telehealth and face-toface appointments to students at Blackall State School and St Joseph's School in central Queensland.

RideWest

AAM is a Gold Sponsor of RideWest, a charity that supports the Royal Flying Doctors Services' Queensland mental health program 'Wellbeing out West'. RideWest raised more than $650,000 during the year.

First Nations Engagement

We recognise and acknowledge the long connection First Nations Peoples have to the land on which we operate and manage. As a business, we have continued to engage with, learn and build on our relationships with those within our local communities. This year, we focused on growing internal cultural capability and commenced the development of a community engagement strategy. We look forward to supporting our local communities as this strategy evolves.

Marralam Cultural Tour

Last year, AAM supported the Northern Territory Cattlemen’s Association (NTCA) Real Jobs Program, which provided employment pathways and mentoring for young First Nations Peoples. This support included hosting a participant at Legune Station in the Northern Territory. The Real Jobs program ran successfully for 13 years, but ceased due to the removal of external funding. The NTCA is currently seeking a new funding partner to reestablish the program. We continue to seek opportunities to provide First Nations employment pathways within the business.

This year, AAM helped establish a cultural tourism enterprise, in partnership with the DjarranyDjarrany Native Title holders at Legune Station and a commercial tourism partner. The aim of the enterprise and partnership is to promote tourism that creates jobs, builds capability and promotes local culture.

Prosperity

Economic resilience and productivity

Product quality

As at 30 June 2024 asset value under management $938m

Produce quality food and fibre

Poultry

We are proud that 100% of our properties (Murray Bridge Poultry, Riverlands Free Range, and Rathdowney and Karinyah) raise their meat chickens to a higher welfare standard and are regularly assessed by the RSPCA Approved Farming Scheme.

Timber Processing

67% of AAM finished timber is eligible to be certified to Forest Stewardship Council Chain of Custody (FSC). We are seeking opportunities to expand this certification across other AAM Timber sites.

Research in Meat Quality

This year, AAM has partnered with the University of New England to investigate the meat eating quality characteristics of our Dorper genetics, along with influencing factors. This research supports our efforts to provide detailed performance feedback for Burrawang Dorper progeny.

Sheep Performance Research

AAM is supporting a five-year research project led by the University of Adelaide, and funded by Meat and Livestock Australia, to quantify the reproductive performance of Australia’s shedding sheep flock. This project aims to understand the causes of reproductive wastage, identify opportunities for improvement, and support producers to maximise reproductive performance, by developing benchmarks and resources.

Beef and Sheep

Our beef and sheep properties hold Livestock Production Assurance (LPA), the on-farm assurance program that underpins market access for Australian red meat to major domestic and international markets. 33% of our beef and sheep production properties are Australia Certified Organic and hold Global Animal Partnership Animal Welfare certification.

Vermiculture Products

100% of the vermiculture products produced at Riverlands Free Range are NASAA Certified.

Fund Manager Awards

AAM received a Highly Commended award in the 2023 SQM Newswire Fund Manager of the Year awards.

Sydney Design Awards

AAM’s new company branding won Silver in the Graphic Design – Identity and Branding – Finance section in the Sydney Design Awards for AAM’s revised branding launched in 2023.

Drive economic resilience through active management and innovation

Developing our supply chains

AAM is actively investing in and seeking opportunities in downstream supply chains to enhance efficiency and market reach, and using scale to create impact.

Beef

Our beef operations are prioritising leveraging downstream opportunities by establishing strategic relationships across domestic and international markets. A key component of our northern assets strategy is establishing a presence in Indonesia. Here, we have developed an integrated in-country joint venture that includes retained ownership and lot feeding. This has improved supply chain control, enhanced market transparency, and created new marketing possibilities. This approach allows us to manage the process from production to market more efficiently.

We continue to focus on certified organic supply chains through our Australian Livestock Company (ALC), providing diversity to the markets we supply. At Bective Station, we have successfully produced our next generation of Wagyu genetics, strengthening our breeding operations. This breeding success has supported sending bulls to our northern assets, ensuring a consistent supply of Wagyu genetics throughout our operations.

Sheep

As part of our lamb supply chain strategy, we expanded the LAAM branded lamb products, providing consumers with access to prime Dorper lamb, produced at Blackall in Central Queensland.

For the first time, LAAM products were sold to the public at the 2024 Ekka in Brisbane, with support from the Queensland Rural and Industry Development Authority and the Queensland Government.

In another first, Terrick Terrick lambs have been lot fed, enabling them to be turned off earlier due to improved feed efficiency and accelerated liveweight gain. This approach results in heavier lambs in a shorter time frame and also serves as a drought mitigation strategy and optimises pasture use.

Poultry

This year, AAM expanded its poultry operations by acquiring two new assets - Rathdowney and Karinyahdeveloping new supply chain partner relationships.

We also consolidated the poultry operations under a unique brand ‘AAM Poultry’, streamlining operations and enhancing our market presence.

We are advancing our composting and vermiculture business by introducing a new range of products tailored for golf courses, parks, and gardens, now available in smaller, more manageable packaging. We are exploring new markets and, through a strategic partnership in the energy sector, we can now share excess energy produced across our portfolio.

Timber

AAM Timber manufactures The Ultimate Renewable™, an Australian radiata pine timber product. These finished timber products continue to store carbon throughout their lifespan, with about half the wood's dry weight being carbon absorbed from the atmosphere by growing trees.

Our softwood manufacturing businesses in Mt Gambier SA, Narangba QLD and Bathurst NSW, focus on landscaping, outdoor, packaging and structural products.

This year, AAM has consolidated its timber operations under one unique brand ‘AAM Timber’, streamlining operations and enhancing market presence.

$207 million1

is the estimated economic impact nationally, as a result of AAM managed and owned businesses, incorporating actual revenue received and capital investment.

1Based on REMPLAN, a software tool used in Australia for regional economic analysis and planning.

Governance

The AAM Board is responsible for the overall governance of AAM, providing strategic direction and oversight of business risks and opportunities including those related to sustainability, with managerial oversight from the Director of Timber and Sustainability.

AAM enforces policies and procedures to ensure compliance with its Australian Financial Services Licence (held by AAM Licensees Pty Ltd) for its managed funds and maintains robust governance structures for decision-making activities. Further details on AAM's governance structure are available in our 2023 Sustainability Report.

In the 2024 financial year, AAM implemented several additional governance measures:

• Redefined our organisational structure to streamline our executive leadership team

• Developed new internal committees, including the AAM Sustainability Steering Group. The AAM Sustainability Steering Group serves to build awareness of sustainability initiatives within the business and gather valuable feedback and insights on new and established projects to implement identified opportunities

• Developed quarterly sustainability and environmental reporting to the AAM Board to demonstrate transparency and accountability, and report progress

• Increased awareness of modern slavery supply chain risks by developing and implementing training for internal staff

• Increased the independence of the operating boards within AAM’s managed investments to support greater objectivity and impartiality in decision-making

The Board places great importance on safety and environmental outcomes as critical factors for business success. As a result, under AAM’s remuneration plan, the management team has key performance indicators for safety and environmental outcomes as listed below:

• Safety: Total Recordable Injury Frequency Rate (TRIFR)

• Environment: Environmental compliance (measured by enforceable actions)

In FY24 AAM allocated $20 million towards capital development projects across our assets.

Key highlights

Beef genetics

We are advancing our beef herd by incorporating Wagyu genetics into our northern and pastoral operations to increase fertility and market access opportunities. The foundation seedstock herd has been established with the arrival of fullblood Wagyu cows at Bective Station this year. Our focus is on improving key genetic performance traits including growth rates and meat quality attributes such as marbling without compromising fertility and structural soundness in a moderate-framed animal.

Leveraging data

AAM is leveraging data analytics across its timber and livestock operations to drive performance improvements. In timber, analysis through digital dashboards optimises processes and efficiency. In livestock, crush-side data capture enhances decisionmaking in areas like health, genetics, reproduction, and productivity, allowing for individualised animal management.

In our seedstock operations, breeding values guide management decisions. At Bective Station, Estimated Breeding Values (EBVs) are crucial for the fullblood Wagyu herd, while Burrawang Dorper and White Dorper Stud increasingly use Australian Sheep Breeding Values (ASBVs) for classing decisions. These tools help predict genetic merit and production gain, advancing AAM's genetic goals through data-driven decisions.

Integrated fodder production

To complement our northern beef operations, AAM has integrated farming activities that focus on sowing crops suited to the region’s climate and that can thrive in dryland production systems.

At Legune Station, AAM has cultivated approximately 380 hectares to produce forage sorghum for silage. This crop provides a level of self-sufficiency by supplying 100% of the annual silage requirements to our on-site feedyard. This development in our feeding system also acts as a drought management tool and increases feeding efficiency within the business. Maryfield Station has 800ha of raingrown forage sorghum, to support the on-site feed yard at this asset.

AAM Timber Innovation

Innovation is a key driver at our timber mills, allowing us to maximise available timber supplies, boost production efficiency, add value to existing products, and create new products through diversified production capabilities.

Log sorting automation project: AAM Timber – Bathurst is in the final stages of installing a new automated log sorting system, to automate the sorting and grading of logs while enhancing efficiency and eliminating manual handling tasks which reduces safety related risk.

Diversifying timber products: AAM Timber – Bathurst completed a project that allows the application of a Light Organic Solvent Preservative (LOSP) treatment to outdoor products. This new infrastructure enables the Bathurst business to offer a diverse range of treatment options and allows the business to broaden its offering of treated products to include decking, pergolas and playgrounds.

Closing remarks and looking ahead

Over the past 12 months, AAM has made significant progress in our ongoing commitment to continuous improvement, addressing the dual challenges of enhancing global food security while minimising our environmental footprint.

As managers of a diverse portfolio of agricultural assets—including intensive poultry operations, extensive beef and sheep stations, and timber processing facilities—we recognise that each sector presents its own set of challenges and opportunities for improvement.

When we make changes to these assets, our focus extends beyond production and environmental outcomes; we also prioritise the well-being of our people, our livestock, and the rural and regional communities these businesses support. We aim to strike the right balance of environmental, economic, and social factors.

Technology plays a crucial role in meeting these challenges, but it is our people who are at the heart of our efforts. We continue to invest in upskilling our staff so they can adopt and implement the latest research and innovations our business supports. This powerful combination forms the foundation of AAM’s approach to ensuring consideration of environmental, social and economic factors in agriculture, now and into the future.