A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — Shareholder Meeting (November 2021)
31 slides from A2 Milk's shareholder meeting presentation, Nov 17, 2021
Slide 1: Annual Meeting 2021
M E E T I N G For personal use only A N N U A L 2 0 2 1 ANNUAL MEETING 17 NOVEMBER 2021 THE a2 MILK COMPANY LIMITED
Slide 2: Disclaimer
M E E T I N G Disclaimer For personal use only A N N U A L This presentation dated 17 November 2021 should be read in While all reasonable care has been taken in relation to the conjunction with, and subject to, the explanations and views in preparation of this presentation, none of the Company, its
Slide 3: Welcome
For personal use only WELCOME D AV I D H E A R N 2 0 2 1 A N N U A L M E E T I N G
Slide 4: Agenda
M E E T I N G For personal use only A N N U A L 2 0 2 1 Welcome 3 Chair speech 5 • AGENDA MD & CEO address 6 Formal business 23 Questions 30 Close 31 4
Slide 5: Chair Speech
For personal use only 5 D AV I D H E A R N CHAIR SPEECH 2 0 2 1 A N N U A L M E E T I N G
Slide 6: MD & CEO Address
For personal use only 6 ADDRESS MD & CEO D AV I D B O R T O L U S S I 2 0 2 1 A N N U A L M E E T I N G
Slide 7: a2MC's extraordinary journey was disrupted in FY21
M E E T I N G a2MC’s extraordinary journey was disrupted in FY21 For personal use only Adapting A N N U A L IP Creators Australian branded fresh milk focus China IMF and US liquid milk expansion for growth Shift from licensing to operational; a2 Milk® Company 2 0 2 1 a2 Milk™ listing launched in the
Slide 8: Clearly FY21 was a disappointing result
M E E T I N G Clearly FY21 was a disappointing result1 For personal use only A N N U A L Group performance • Revenue and EBITDA2 margin was within the guidance range provided in May 2021 2 0 2 1 ‒ Revenue down 30.3% to $1.21b ‒ EBITDA down 77.6% to $123m including stock write-down and MVM acquisitio
Slide 9: A range of actions have been taken to address the disruption caused by COVID-19
M E E T I N G A range of actions have been taken to address the disruption caused by COVID-19 For personal use only A N N U A L Issues disrupting a2MC in FY21 Key actions we have taken • Recognised stock write-downs and deliberately 2 0 2 1 Cross-border trade was disrupted by COVID-19, creating subs
Slide 10: Significant steps taken to reduce inventory build-up
M E E T I N G We have taken significant steps to reduce inventory build-up which has improved freshness and EL market pricing For personal use only A N N U A L EL inventory written down to reduce stock in supply chains Freshness has improved EL prices have also improved 2 0 2 1 Distributor inventory
Slide 11: We have increased investment to support our strong brand
M E E T I N G We have increased investment to continue to support our strong brand For personal use only A N N U A L Marketing investment increased in 4Q21 with a significant integrated brand campaign 2 0 2 1 Our a2 brand health metrics are strong and have improved recently Importantly, awareness-to
Slide 12: We have bolstered our leadership team and reorganised the business
M E E T I N G We have bolstered our leadership team and reorganised the business For personal use only Business leadership Functional leadership A N N U A L 2 0 2 1 David Bortolussi Kevin Bush Xiao Li Amanda Hart Shareef Khan Eleanor Khor Managing Director Executive General Chief Executive – Chief P
Slide 13: We have undertaken a holistic review of our growth opportunities
M E E T I N G We have undertaken a holistic review of our growth opportunities For personal use only A N N U A L Market • Continuing the journey to focus on our China market opportunity in particular 2 0 2 1 • Reviewing our brand positioning to create continued distinctiveness amongst an evolving Br
Slide 14: We have adapted our a2MC growth strategy
M E E T I N G We have adapted our a2MC growth strategy For personal use only A N N U A L Purpose To enrich lives by harnessing the nutritional wonders of nature Ambition Rebuild a2MC into an exciting, innovative and sustainable growth company 2 0 2 1 People Sustainability Consumers Shareholders Crea
Slide 15: Ambition to be a top-5 CL IMF brand and no.1 EL product range in China
M E E T I N G Our ambition is to be a top-5 CL IMF brand and the no.1 EL product range in China For personal use only A N N U A L 2 0 2 1 Ambition To be a top-5 CL IMF brand in China To be the no.1 EL product range in China Achieve top Expand quartile Outperform in Premiumisation Measures footprint
Slide 16: Our strategic partners are key to enabling execution of our China strategy
M E E T I N G Our strategic partners are key to enabling execution of our China strategy For personal use only A N N U A L 2 0 2 1 • Strong partnership formed • China State Farm has • Recent MVM acquisition • a2MC has a 19.8% share in in China with CNADC and been our strategic has initiated a relati
Slide 17: Outside our core, we are pursuing other opportunities for growth in Asia
M E E T I N G Outside our core, we are pursuing other opportunities for growth in Asia For personal use only A N N U A L In China, we are expanding our portfolio into Several emerging markets have dairy-based nutrition for the whole family been prioritised for further evaluation 2 0 2 1 Malaysia & V
Slide 18: Plans to grow ANZ and achieve profitability in the USA
M E E T I N G We have plans to grow ANZ and are focused on achieving profitability in the USA For personal use only A N N U A L 2 0 2 1 ANZ: Maintain the no.1 position in fresh milk USA: To be a top-5 premium milk brand Ambition with expansion into new categories with >10% EBITDA margin Measures Gro
Slide 19: Five key non-financial measures of success over time
M E E T I N G We are focused on five key non-financial measures of success over time For personal use only A N N U A L People Sustainability Brand health Market share Innovation 2 0 2 1 1 2 3 4 5 Safety TRIFR <10 GHG emissions China unprompted Top-5 CL IMF player Access to ≥3 CL with continuous redu
Slide 20: Ambition to grow sales to over NZD$2 billion and improve margins
M E E T I N G We have an ambition to grow sales to over NZD$2 billion and improve margins For personal use only A N N U A L Medium-term indicative sales ambition (≥ 5 years) EBITDA margin dynamics • Indicative range ‒ IMF sales, particularly EL, key driver of upside/downside risk 2 0 2 1 ‒ Target ma
Slide 21: FY22 trading update
M E E T I N G FY22 trading update as provided at investor day on 27 October 2021 For personal use only A N N U A L • There is no material change to the FY22 position as outlined at the FY21 August results announcement – however, we are seeing a different mix of our business, favouring English label
Slide 22: Key messages to takeaway
M E E T I N G Key messages to takeaway For personal use only A N N U A L • The market landscape has experienced unprecedented change over the past 12 months, requiring us to adapt 2 0 2 1 • As a result, we have adapted our growth strategy to achieve the full potential of our business • Importantly,
Slide 23: Formal Business
For personal use only 23 FORMAL D AV I D H E A R N BUSINESS 2 0 2 1 A N N U A L M E E T I N G
Slide 24: Notice of Annual Meeting and voting instructions
24 For personal use only Notice of Annual Meeting and voting instructions 2 0 2 1 A N N U A L M E E T I N G
Slide 25: Item 1: Financial statements and reports
Item 1: Financial statements and reports M E E T I N G To receive and consider the Company’s financial statements for the year ended 30 June 2021, together with the Directors’ and Auditor’s reports. For personal use only A N N U A L 2 0 2 1 25
Slide 26: Item 2: Auditor's Fees and Expenses (Resolution 1)
Item 2: Auditor’s Fees and Expenses (Resolution 1) M E E T I N G To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: For personal use only “That the Directors of the Company be authorised to fix the fees and expenses of the Company’s auditor, E
Slide 27: Item 3: Election of Managing Director – David Bortolussi
Item 3: Election of Managing Director – David Bortolussi (Resolution 2) M E E T I N G To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: For personal use only “That David Bortolussi, who was appointed Managing Director of the Company by the Bo
Slide 28: Item 4: Election of Director – Bessie Lee
Item 4: Election of Director – Bessie Lee (Resolution 3) M E E T I N G To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: For personal use only “That Bessie Lee, who was appointed a Director of the Company by the Board during the year, and who
Slide 29: Item 5: Re-election of Director – Warwick Every-Burns
Item 5: Re-election of Director – Warwick Every-Burns (Resolution 4) M E E T I N G To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: For personal use only “That Warwick Every-Burns, who will retire at the meeting by rotation in accordance wit
Slide 30: Questions
For personal use only 30 QUESTIONS 2 0 2 1 A N N U A L M E E T I N G
Slide 31: Close
For personal use only 31 CLOSE D AV I D H E A R N 2 0 2 1 A N N U A L M E E T I N G
The a2 Milk Company — Shareholder Meeting (November 2021) on 6ix