A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — Shareholder Meeting (November 2024)
38 slides from A2 Milk's shareholder meeting presentation, Nov 22, 2024
Slide 1: 2024 Annual Meeting
For personal use only The a2 Milk Company Limited 2024 ANNUAL MEETING We pioneer the future of Dairy for good 22 November 2024
Slide 2: Disclaimer
Disclaimer 2 M E E T I N G This presentation dated 22 November 2024 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 For personal use only A N N U A
Slide 3: Welcome
For personal use only Welcome Pip Greenwood
Slide 4: Directors and management attending Annual Meeting
Directors and management attending Annual Meeting 4 M E E T I N G For personal use only A N N U A L 2 0 2 4 Pip Greenwood Warwick Every-Burns Kate Mitchell Antonio (Tonet) Rivera Sandra Yu Chair Director Director Director Director Chair of People & Chair of Audit & Risk Remuneration Committee Manage
Slide 5: Agenda
Agenda For personal use only Welcome 3 Chair speech 6 Managing Director & CEO address 8 Formal business 28 Questions 36 Close 37
Slide 6: Chair speech
For personal use only Chair speech Pip Greenwood
Slide 7: Chair speech and key messages
Chair speech and key messages 7 M E E T I N G Strategy For personal use only 1 A N N U A L Growth strategy remains relevant and unchanged 2 0 2 4 2 Execution Strong execution driving share gains and delivering on ambition 3 Synlait resolution Arbitration disputes resolved and recapitalisation comple
Slide 8: MD & CEO address
For personal use only MD & CEO address David Bortolussi
Slide 9: Strong execution delivered positive FY24 result
Strong execution delivered positive FY24 result 9 M E E T I N G Delivered a positive full year result with revenue, EBITDA1 For personal use only A N N U A L 1 and EPS growth Became a top-5 China IMF brand growing total IMF sales 2 0 2 4 2 despite a double-digit decline in China market value Achieve
Slide 10: Continued growth in revenue, earnings and cash flow
Continued growth in revenue, earnings and cash flow 10 M E E T I N G Full year result versus FY23 Key financials Revenue; $ millions For personal use only A N N U A L • Revenue growth of 5.2% to $1,675.5 million • EBITDA up 6.9% to $234.3 million 2 0 2 4 • EBITDA margin of 14.0%, up 20 basis points
Slide 11: Growth driven by strong China segment performance
Growth driven by strong China segment performance 11 M E E T I N G Segment performance Revenue mix For personal use only A N N U A L Segment sales mix: Percent of total revenue • China & Other Asia segment sales up 14.1% due to China label IMF, English label CBEC & O2O channels and Other Nutrtionals
Slide 12: Result underpinned by important operational achievements
Result underpinned by important operational achievements 12 M E E T I N G • Infant milk formula (IMF) For personal use only A N N U A L − Achieved top-5 brand position and record levels of brand awareness − China Label: launched and successfully transitioned upgraded product 2 0 2 4 − English Label:
Slide 13: Some improvement in challenging China IMF market conditions
Some improvement in challenging China IMF market conditions 13 M E E T I N G China IMF market conditions Total China IMF market value vs pcp2 For personal use only A N N U A L • China newborns down 6% in CY231 reflects improved trajectory. Positive outlook for CY24, but long-term modest decline expe
Slide 14: China label IMF achieved record market share and sales growth
China label IMF achieved record market share and sales growth during 14 M E E T I N G year of major product transition China label upgrade and transition a2MC China label IMF market share For personal use only A N N U A L Share of total China IMF market value %1 ✓ Shipping commenced: Upgraded China
Slide 15: English label IMF performance improved as market returned to growth
English label IMF performance improved as market returned to growth 15 M E E T I N G English label improvement a2MC English label IMF market share For personal use only A N N U A L Share of total China IMF market value %1 • English label market grew 3.8% in FY24, the first time in many years, increa
Slide 16: a2MC achieved top-5 brand position in China IMF market
a2MC achieved top-5 brand position in China IMF market 16 M E E T I N G Total China IMF market share For personal use only A N N U A L Value % share by brand of total China IMF market (FY24)1 2 0 2 4 2 2 Var PCP +0.6ppts +0.1ppts +1.5ppts +1.3ppts +1.4ppts -0.2ppts -0.2ppts -0.5ppts +0.6ppts -1.0ppt
Slide 17: Successful Double-11 across China label and English label IMF
Successful Double-11 across China label and English label IMF 17 M E E T I N G Double-11 activation overview Double-11 performance (14-Oct to 13-Nov sales period)1 For personal use only A N N U A L +16% Growth in English Label tins sold (vs Double-11 2023) 2 0 2 4 +9% Growth in China Label tins sold
Slide 18: Other nutritionals and liquid milk growth driven by innovation
Other nutritionals and liquid milk growth driven by innovation and 18 M E E T I N G improved execution • Other nutritionals growth increased to 36.7% in FY24 Other nutritionals For personal use only A N N U A L Revenue by product type ($ million) • Includes plain & fortified milk powders, UHT and li
Slide 19: Innovation continues to ramp up with key new product launches
Innovation continues to ramp up with key new product launches 19 M E E T I N G For personal use only A N N U A L a2 至初® a2 Gentle GoldTM New China Label IMF New English Label IMF product formulation and packaging 2 0 2 4 Launched in 2H24 Launched in 1H24 in Australia and select in China market China
Slide 20: Expanding reach and product portfolio in emerging markets
Expanding reach and product portfolio in emerging markets is a priority 20 M E E T I N G Korea Singapore Vietnam Expanding retail distribution Fresh milk launched in major retailers Launched IMF and macro milk portfolio For personal use only A N N U A L 2 0 2 4 UHT sales growth +147.7% Ranged in Col
Slide 21: Meaningful progress towards achieving our Planet related goals
Meaningful progress towards achieving our Planet related goals 21 M E E T I N G First Climate Statement released which was prepared in accordance with the Aotearoa New Zealand Climate Standards (NZCS) issued by the External Reporting Board (XRB) For personal use only A N N U A L GHG emissions reduct
Slide 22: Growth strategy focused on capturing full potential of China market
Growth strategy focused on capturing full potential of China market 22 M E E T I N G with supply chain transformation a key priority For personal use only A N N U A L Purpose We pioneer the future of Dairy for good Vision An A1-free world where Dairy nourishes all people and our planet 2 0 2 4 PEOPL
Slide 23: Continued to make progress towards achieving medium-term goals
Continued to make progress towards achieving medium-term goals 23 M E E T I N G reflected in measures of success For personal use only A N N U A L PEOPLE PLANET CONSUMERS SHAREHOLDERS BRAND MARKET INNOVATION SUPPLY HEALTH SHARE CHAIN 2 0 2 4 1 2 3 4 5 6 7 Safety GHG emissions China brand MBS share C
Slide 24: Delivered significant revenue growth and EBITDA margin improvement since FY21
Delivered significant revenue growth and EBITDA margin improvement 24 M E E T I N G since FY21 Medium-term revenue and EBITDA margin ambition For personal use only A N N U A L Revenue, NZ$ billions EBITDA margin EBITDA margin target in the teens targeting year-on-year improvement 2 0 2 4 ~ Actual re
Slide 25: IMF portfolio expansion important to achieving growth ambitions
IMF portfolio expansion important to achieving growth ambitions 25 M E E T I N G a2MC IMF portfolio segmentation Market price segments based on Stage 1 average selling price (RMB/KG)1 CONCEPTUAL For personal use only A N N U A L Ultra TBA Premium TBA 2 0 2 4 42% volume share Super TBA Premium 26% vo
Slide 26: New dividend policy introduced for first time in company history
New dividend policy introduced for first time in company history 26 M E E T I N G • Dividend policy established, effective immediately For personal use only A N N U A L • Target payout ratio range of between 60% to 80% of normalised net profit after tax • Intent to declare a dividend in February 202
Slide 27: FY25 trading update and outlook
FY25 trading update and outlook 27 M E E T I N G The following is with reference to the Company’s full year guidance on 19 August 2024 • Year to date trading is ahead of plan and guidance, more specifically: For personal use only − China label IMF sales are broadly in line with plan taking into acco
Slide 28: Formal business
For personal use only Formal business Pip Greenwood
Slide 29: Notice of Meeting and voting instructions
For personal use only Notice of Meeting and voting instructions 2 0 2 4 A N N U A L M E E T I N G 29
Slide 30: Financial statements and reports
For personal use only Financial statements and reports 2 0 2 4 A N N U A L M E E T I N G 30
Slide 31: Resolution: Auditor's Fees and Expenses
For personal use only Resolution 1 and Expenses Auditor’s Fees 2 0 2 4 A N N U A L M E E T I N G 31
Slide 32: Resolution: Re-election of Director David Bortolussi
32 M E E T I N G For personal use only A N N U A L Resolution 2 2 0 2 4 Re-election of Director David Bortolussi
Slide 33: Resolution: Election of Director Antonio Rivera
For personal use only Resolution 3 Antonio Rivera Election of Director 2 0 2 4 A N N U A L M E E T I N G 33
Slide 34: Resolution: Grant of performance rights to David Bortolussi
34 M E E T I N G For personal use only A N N U A L Resolution 4 2 0 2 4 Grant of performance rights to David Bortolussi, Managing Director & CEO
Slide 35: Polls
For personal use only Polls 2 0 2 4 A N N U A L M E E T I N G 35
Slide 36: Questions
For personal use only Questions
Slide 37: Close
For personal use only Close Pip Greenwood
Slide 38: For personal use only
For personal use only www.thea2milkcompany.com
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