content_image/239934.jpg content_image/239935.jpg
## OPERATING AND FINANCIAL REVIEW (CONTINUED) 

## 1. Review (continued) 

<img src='content_image/239934.jpg'>

(1)  Biological transformation in accordance with Australian Accounting Standard AASB 141 Agriculture, includes reclassification of an animal as it moves from being a branded calf and progresses through the various stages to become either a trading animal (grass and then feedlot in some cases) and then as it ages. All these changes occur and are measured before the ultimate sale (cash realisation). 

## The table below shows the underlying performance measures of the Group based on EBITDA. The table reports: 

1. EBITDA per the statutory accounts (refer page 11 for definition). 

2. EBITDA per the statutory accounts adjusted for the market value changes from the table above. 

3. A measure called Cash EBITDA. This is a measure of the cashflow from operations that AACo’s businesses create by removing the impact of the Cattle Fair Value Adjustments which are non-cash items. This measure is intended to demonstrate underlying cash performance from operations. 

<img src='content_image/239935.jpg'>

