A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — CLSA Investor Roadshow, Singapore and Hong Kong, May 2018
37 slides from A2 Milk's conference presentation, May 16, 2018
Slide 1: Investor Roadshow
Investor Roadshow CLSA| Singapore, Hong Kong| 16 -18 May 2018 a2 Milk™, a2 Platinum™ and The a2 Milk Company™ are trade marks of The a2 Milk Company Limited
Slide 2: Disclaimer
Disclaimer This presentation dated 16 May 2018 provides additional comment on the Interim Report for the six months ended 31 December 2017 of The a2 Milk Company Limited (the “Company” or “a2MC") and accompanying information released to the market on the same date. As such, it should be read in conj
Slide 3: CEO quote on continued growth
“The Company’s continued growth reflects increasing consumer acceptance of our brand and the | benefits of dairy-based products free \\ from the A1 beta casein protein type” Geoffrey Babidge Managing Director & CEO a
Slide 4: Contents
Contents * Company overview * Group strategy update ¢ 1H18 results & regional highlights ¢ FY18 Q3 update & full year outlook ¢ Appendix
Slide 5: For personal use only
For personal use only
Slide 6: The a2 Milk Company at a glance
The a2 Milk Company at a glance * The a2 Milk Company (“a2MC") is in the business of producing, marketing and selling premium branded dairy nutritional products in targeted global markets ¢ All a2MC branded products contain only A2 beta casein protein type rather than both A1 and A2 types found in c
Slide 7: The a2 Milk Company proposition
The a2 Milk Company proposition a2 Milk™ Single-minded company focus on A1 protein-free products (pioneers and experts) Unique and effective marketing approach = Compelling and growing scientific evidence Clean and green Australia and NZ sourcing profile (strength in Asia) vl, Integrated IP portfoli
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Slide 10: Group strategy update
Group strategy update J
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Slide 12: Dairy nutrition innovation continuum
Dairy nutrition innovation continuum g i Powde,,, y, Eng een ition Further scope for y . % innovation in 3 existing & adjacent Ss — product segments Fy 2 ) g level of product customisation Milk drinks and — Protein powders < Ps 2 2 5 & = Ye "%, & cS Mique oi nutritios 08 12
Slide 13: New unifying brand identity rolling out across regions and innovation
New unifying brand identity rolling out across regions and innovation CHOCOLATE! REDUCED FAT MILK 2H18 launch Pregnancy, infant and toddler nutrition _—— 2H18 launch 13
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Slide 17: 1H18 results & regional highlights
1H18 results & v= regional highlights ==
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Slide 19: Key financial charts
Key financial charts’ Group Revenue (NZ$ million) Group EBITDA2 (NZ$ million) Basic Earnings Per Share (Cents) 549.5 141.2 143.0 FY1S FY16 FYI7 1H18 FY15 FY16 FY17 1H18 FY15 FY16 FY17 1H18 @1H @2H miH m2H Full Year mHalf Year "The Company's financial year ends 30 June; 1H refers to the first half pe
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Slide 21: Segment financial performance
Segment financial performance an Australia & New | China & other 2 Total NZS million Zealand ‘Asia Corporate UK & USA’ Group Infant Formula tute Revenue 304.2 114.4 - 16.1 434.7 341.0 EBITDA! 116.4 48.3 (13.3) (8.4) 143.0 4417 Revenue 206.6 37.7 - 11.8 256.1 184.5 EBITDA 70.4 13.7 (12.3) (7.7) 64.1
Slide 22: 1H18 regional performance overview
1H18 regional performance overview' ANZ Revenue (NZ$ million) China & other Asia Revenue (NZ$ million) IK & USA Revenue (NZ$ mi 439.6 21.0 FY15 FY16 FY17 1H18 FY1S FY16 FYI7 1H18 FY1S FY16 FY17 1H18 m1H =2H m1Hm@2H m1H @2H * Revenue: $304.3 + Revenue: $114.4 + Revenue: $16.1 * EBITDA: $116.4 * EBITD
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Slide 25: FY18 Q3 update & full year outlook
FY18 Q3 update & full year outlook 25
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Slide 28: Quarter update and FY18 outlook
Quarter 3 update and FY18 outlook Q318 trading performance (9 months to 31 March 2018) ~900- * Group revenue of NZ$660 million, up ~70% on pcp 920 —— — Reflects continued sales growth in both nutritional products and liquid milk — Includes impact of seasonal sales from key China selling events weigh
Slide 29: thea2milkcompany.com
thea2milkcompany.com
Slide 30: For personal use only
For personal use only
Slide 31: What is the a2 Milk brand difference?
What is the a2 Milk™ brand difference? * The a2 Milk™ brand is a naturally occurring cows’ milk and not a product of a technological process or genetic engineering * a2MC have accumulated significant proprietary know-how and quality processes to ensure a2MC products are A1 protein-free Al and A2 pro
Slide 32: Fundamentally the product works
Fundamentally the product works Siobhan (Australia) “I wish this had been around with my first born. Ithas been amazing for my son who had an upset tummy on 3 other brands we tried first then within 5 days on a2 he was the happiest baby. no constipation, no wind, a different kid. Hands down the best
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Slide 34: USA: advertising and media exposure increasing brand awareness
USA: advertising and media exposure increasing brand awareness - .»** The TT “*=* 7 — 7 ¥ | ) { AN UDDER OPTION [A MILK EARNS ENDORSEMENTS & DAIRY INDUSTRY SKEPTICISM NY ENDORSEMENTS & DARY NDUSTRY XEPTICSM View advertising clip here: View news clip here: (https:/a2milk.com/love-milk-again-tvo/) (at
Slide 35: Cash position
Cash position Group Cash Movement: 1H18 (NZ$ million) 423 43.2 ss 052) es “ Cash on hand Group NPAT Inventory build Other working capital__ Investments in Depreciation, FX and other Cash on hand (un-17) PPE & intangibles amortisation & other (Dec-17) non-cash * Inventory build reflects increase in i
Slide 36: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures NZ$ million 1H18 FY17 1H17 Australia & New Zealand Segment EBITDA 116.4 155.3 70.4 China & other Asia Segment EBITDA 48.3 32.8 13.7 UK & USA Segment EBITDA (8.4) (22.5) (7.7) Corporate EBITDA (13.4) (24.4) (12.3) EBITDA' 143.0 141.2 64.1 Depreciation/Amortisation
Slide 37: thea2milkcompany.com
thea2milkcompany.com
The a2 Milk Company — CLSA Investor Roadshow, Singapore and Hong Kong, May 2018 on 6ix