Phibro Animal Health Corporation Financial Results Fiscal Year 2022 Second Quarter Ended December 31, 2021 Webcast and Conference Call February 10, 2022 U.S. toll-free +1-888-330-2022 International toll +1-365-977-0051 Conference ID: 3927884 February 10, 2022 Important Information Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements that are subject to risks and uncertainties, including with respect to future debt and leverage levels. All statement ...

Financial Performance and Key Metrics - The company reported net sales of $233 million for Q2 2022, marking an 8% increase from the previous quarter and a 13% increase year-over-year, achieving the highest single quarter of sales in its history [6][12] - Adjusted EBITDA for the quarter was $29.1 million, reflecting a 2% improvement year-over-year, with an adjusted EBITDA margin of 12.5%, a 200 basis point increase from the previous quarter [8][12] - GAAP net income increased by 36% and diluted earnings per share rose by 34% compared to the same quarter last year, driven by stronger volumes and selling prices [12] Business Segment Performance - The Animal Health segment generated net sales of $150.9 million, an 11% increase year-over-year, with significant growth in vaccines and MFAs [14][16] - Mineral Nutrition segment net sales were $66.7 million, a 23% increase year-over-year, attributed to higher average selling prices [17] - Performance Products segment saw a decline in net sales to $15.1 million, a 4% decrease from the prior year, due to lower average selling prices and shipping delays [18] Market Data and Key Indicators - Strong demand was noted across major markets including North America and South America, with recovery from pandemic effects contributing to sales growth [7][33] - The company experienced a $3.5 million increase in sales from processing aids used in ethanol production, indicating ongoing strength in this area [15][35] Company Strategy and Industry Competition - The company has taken steps to raise prices to offset rising costs, with expectations of continued strong demand for its products [7][31] - Management indicated that inflationary pressures are leading to less pushback on price increases from customers, as the entire industry faces similar challenges [31] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about navigating COVID-19 challenges, despite the risks posed by variants like Omicron [9] - The company raised its full-year net sales guidance to a range of $890 million to $920 million, reflecting confidence in continued strong performance [27] Other Important Information - Free cash flow for the 12-month period ending December 31, 2021, was $14 million, with a gross leverage ratio of 3.8x [19] - The company maintained a quarterly dividend of $0.12 per share, totaling $4.9 million [20] Q&A Session Summary Question: Can you speak to the magnitude of the price increases you were able to take in the quarter? - Management noted that inflation has made it easier to implement price increases, and further increases may be necessary if costs continue to rise [31] Question: How are demand trends progressing across species groups globally? - Strong demand is being observed across most species groups, particularly in major markets [33] Question: What is the risk associated with the recent avian flu outbreaks? - Management acknowledged avian influenza as a significant risk but noted that the U.S. is well-prepared to handle outbreaks [39] Question: Can you discuss the recent dialogue with the FDA regarding Mecadox? - Management expressed confidence in the safety of Mecadox and its importance in reducing human antibiotic use in animal production [40][41] Question: Will price increases be rolled back if inflation normalizes? - Management indicated that while freight surcharges may be temporary, other cost increases are likely to remain, suggesting that some price increases will not be rolled back [43]

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company reported increased net sales for both the quarter and six-month period, with quarterly net income up significantly, while total assets and operating cash flow saw modest changes Consolidated Statements of Operations Net sales increased for both the three and six-month periods, with quarterly net income growing significantly, while six-month net income experienced a slight decrease Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | For the Periods Ended December 31 | Three Months 2021 | Three Months 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $232,712 | $206,149 | $447,377 | $401,343 | | **Gross profit** | $70,672 | $68,265 | $135,350 | $132,384 | | **Operating income** | $22,294 | $19,890 | $36,906 | $35,578 | | **Net income** | $17,465 | $12,801 | $23,999 | $25,103 | | **Diluted EPS** | $0.43 | $0.32 | $0.59 | $0.62 | Consolidated Balance Sheets Total assets and liabilities increased slightly as of December 31, 2021, driven by higher inventories and increased borrowings under the revolving credit facility Consolidated Balance Sheet Highlights (in thousands) | As of | December 31, 2021 | June 30, 2021 | | :--- | :--- | :--- | | **Total current assets** | $508,610 | $498,909 | | **Total assets** | $848,958 | $841,325 | | **Total current liabilities** | $166,628 | $164,116 | | **Total liabilities** | $609,664 | $602,796 | | **Total stockholders' equity** | $239,294 | $238,529 | Consolidated Statements of Cash Flows Net cash provided by operating activities decreased due to higher inventories, while investing and financing activities resulted in net cash outflows, including dividend payments Six Months Ended Dec 31 - Cash Flow Summary (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $23,943 | $28,611 | | **Net cash used by investing activities** | ($3,098) | ($21,259) | | **Net cash used by financing activities** | ($6,311) | ($10,084) | | **Net increase (decrease) in cash** | $13,173 | ($1,809) | Notes to Consolidated Financial Statements Notes provide details on business segments, revenue, debt, and contingencies, highlighting strong sales growth in Animal Health and Mineral Nutrition, alongside ongoing environmental and product safety issues Net Sales by Product Type (Six Months Ended Dec 31, in thousands) | Product Category | 2021 | 2020 | | :--- | :--- | :--- | | **Animal Health** | | | | MFAs and other | $175,482 | $160,280 | | Nutritional specialties | $73,327 | $68,994 | | Vaccines | $43,122 | $35,333 | | **Total Animal Health** | **$291,931** | **$264,607** | | **Mineral Nutrition** | $121,087 | $105,597 | | **Performance Products** | $34,359 | $31,139 | | **Total** | **$447,377** | **$401,343** | Net Sales by Region (Six Months Ended Dec 31, in thousands) | Region | 2021 | 2020 | | :--- | :--- | :--- | | United States | $265,464 | $241,077 | | Latin America and Canada | $90,674 | $78,421 | | Europe, Middle East and Africa | $60,961 | $57,157 | | Asia Pacific | $30,278 | $24,688 | | **Total** | **$447,377** | **$401,343** | - The company entered into an amended credit agreement in April 2021, which includes a **$300 million Term A Loan** and a **$250 million revolving credit facility**. As of December 31, 2021, the company was in compliance with all financial covenants[51](index=51&type=chunk)[52](index=52&type=chunk) - The company is named as a potentially responsible party (PRP) by the EPA for groundwater contamination at the Omega Chemical Superfund Site. The ultimate liability cannot be predicted with certainty at this time[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes sales growth to Animal Health and Mineral Nutrition, despite gross margin pressure from rising costs, while actively managing COVID-19 impacts and FDA discussions on carbadox, maintaining strong liquidity Results of Operations Net sales increased for both the three and six-month periods, driven by Animal Health and Mineral Nutrition, though gross margin declined due to cost pressures, and six-month Adjusted EBITDA decreased Segment Net Sales (Three Months Ended Dec 31, in thousands) | Segment | 2021 | 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Animal Health | $150,927 | $136,238 | $14,689 | 11% | | Mineral Nutrition | $66,655 | $54,157 | $12,498 | 23% | | Performance Products | $15,130 | $15,754 | ($624) | (4)% | Segment Adjusted EBITDA (Three Months Ended Dec 31, in thousands) | Segment | 2021 | 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Animal Health | $33,696 | $33,349 | $347 | 1% | | Mineral Nutrition | $5,525 | $4,185 | $1,340 | 32% | | Performance Products | $1,324 | $2,266 | ($942) | (42)% | - Gross margin for Q2 FY22 decreased by **270 basis points** to **30.4%** compared to **33.1%** in the prior year, primarily due to increased raw material and logistics costs, and unfavorable product mix[100](index=100&type=chunk)[101](index=101&type=chunk) - The FDA is reviewing the safety of carbadox (Mecadox), which had sales of **$22 million** for the twelve months ended December 31, 2021. A potential withdrawal of approval would adversely affect financial results[90](index=90&type=chunk) Liquidity and Capital Resources The company maintains strong liquidity with substantial cash and available credit, sufficient to fund operations for the next twelve months, and declared a quarterly dividend Liquidity Measures (in thousands, except ratios) | As of | December 31, 2021 | June 30, 2021 | | :--- | :--- | :--- | | Cash, cash equivalents & short-term investments | $95,485 | $93,212 | | Working capital | $259,622 | $250,956 | | Ratio of current assets to current liabilities | 2.69:1 | 2.62:1 | - As of December 31, 2021, the company had **$107.0 million** in outstanding borrowings under its 2021 Revolver, with **$140.3 million** available for further borrowings[131](index=131&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.12 per share**, payable on March 23, 2022[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and commodity prices using non-speculative derivative instruments, with no material changes since the last Annual Report - The company uses interest rate swaps to hedge exposure to fluctuating interest rates and foreign currency contracts to manage foreign currency risks[151](index=151&type=chunk) - There were no material changes in the company's financial market risks from those disclosed in the Annual Report on Form 10-K[152](index=152&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[153](index=153&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[154](index=154&type=chunk) [PART II—OTHER INFORMATION](index=45&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims and lawsuits, not expected to have a material adverse effect, with environmental contingencies detailed in the financial statement notes - Information regarding legal proceedings is incorporated by reference from Note 7, "Commitments and Contingencies," in the financial statements[155](index=155&type=chunk)[65](index=65&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K, advising investors to consider previously disclosed risks - There were no material changes in the Company's risk factors from the risks disclosed in the Annual Report[157](index=157&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) The company entered a severance agreement with CFO Damian Finio, providing a lump-sum payment and pro-rata bonus upon specific involuntary or voluntary termination conditions - The company entered into a severance protection letter agreement with CFO Damian Finio on February 7, 2022[161](index=161&type=chunk) - The agreement provides for a severance payment of **100% of base salary** plus a pro-rata bonus upon involuntary termination without 'Cause' or resignation for 'Good Reason'[161](index=161&type=chunk)

Phibro Animal Health Corporation (NASDAQ:PAHC) Q3 2022 Earnings Conference Call November 3, 2021 9:00 AM ET Company Participants Damian Finio - CFO Jack Bendheim - Chairman, President and CEO Daniel Bendheim - Director and EVP, Corporate Strategy Conference Call Participants Erin Wright - Morgan Stanley Michael Ryskin - Bank of America David Westenberg - Guggenheim Securities Operator Good morning. My name is Shantel, and I will be your conference operator today. At this time, I would like to welcome everyo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36410 Phibro Animal Health Corporation (Exact name of registrant as specified in its charter) Delaware 13 ...

Phibro Animal Health Corporation (NASDAQ:PAHC) Q4 2021 Earnings Conference Call August 26, 2021 9:00 AM ET Company Participants Damian Finio - CFO Jack Bendheim - Chairman, President and CEO Donny Bendheim - Director and EVP, Corporate Strategy Conference Call Participants Katie Tryhane - Credit Suisse Michael Ryskin - Bank of America Operator Thank you for standing by and welcome to the Phibro Animal Health Corporation Q4 2020 (sic) [2021] Conference Call. At this time, all participants are in a listen-onl ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36410 | Class A Common Stock, $0.0001 | | | | --- | --- | --- | | Title of each class par value per share | Trading Sy ...

Phibro Animal Health Corporation (NASDAQ:PAHC) Q3 2021 Earnings Conference Call May 7, 2021 9:00 AM ET Company Participants Damian Finio - Chief Financial Officer Jack Bendheim - Chairman, President & Chief Executive Officer Donny Bendheim - Director & Executive Vice President of Corporate Strategy Conference Call Participants David Westenberg - Guggenheim Securities Erin Wright - Credit Suisse Michael Ryskin - Bank of America Kevin Kedra - G. Research Operator Good day and thank you for standing by. Welco ...

Phibro Animal Health Corporation Financial Results Third Quarter - ended March 31, 2021 Fiscal Year 2021 Webcast and Conference Call May 7, 2021 U.S. toll-free +1-833-968-1955 International toll +1-647-689-6656 Conference ID: 2181337 Important Information Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements that are subject to risks and uncertainties, including with respect to future debt and leverage levels. All statements other than statements of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to______ Commission File Number: 001-36410 Phibro Animal Health Corporation incorporation or organization) Identification No.) Glenp ...