A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — H1 2025 Earnings Presentation
37 slides from A2 Milk's earnings presentation, Feb 17, 2025
Slide 1: 2025 Interim Results
For personal use only The a2 Milk Company Limited 2025 INTERIM RESULTS We pioneer the future of Dairy for good 17 February 2025
Slide 2: Disclaimer
Disclaimer 2 R E S U L T S This presentation dated 17 February 2025 provides additional While all reasonable care has been taken in relation to the commentary on the financial results for the 6 months ended preparation of this presentation, none of the Company, its For personal use only I N T E R I
Slide 3: Agenda
Agenda For personal use only Results summary 4 Financial overview 15 Regional and 21 product performance Appendix 34
Slide 4: Strong 1H25 operating and financial performance
Strong 1H25 operating and financial performance 4 R E S U L T S I N T E R I M For personal use only Achieved Group double-digit revenue growth with full year revenue and 1 earnings guidance upgraded 2 0 2 5 Delivered English label IMF double-digit revenue growth driven 2 by CBEC and O2O channels sup
Slide 5: Continued growth in revenue, earnings and cash flow
Continued growth in revenue, earnings and cash flow 5 R E S U L T S Group performance Key financials Revenue; $ millions For personal use only I N T E R I M • Revenue up 10.1% to $893.8 million • EBITDA up 5.0% to $118.9 million − Including ~$8 million of incremental airfreight costs to address 2 0
Slide 6: Growth driven by English label IMF, Liquid Milk and Other Nutritionals
Growth driven by English label IMF, Liquid Milk and Other Nutritionals 6 R E S U L T S Segment performance Segment and product sales Segment sales; $ millions • China & Other Asia segment sales up 11.8%, led by English label IMF For personal use only I N T E R I M CBEC and O2O channel growth (up 22.
Slide 7: Results supported by key operational achievements
Results supported by key operational achievements 7 R E S U L T S • Brand health: China IMF brand health improved supported by a2® brand superiority campaign • Infant Milk Formula (IMF) For personal use only I N T E R I M − China label: Achieved record market share and minimised temporary impact of
Slide 8: Some improvement in China IMF market conditions
Some improvement in China IMF market conditions 8 R E S U L T S Total China IMF market value vs pcp1 China IMF market conditions • China IMF market decline improved to -6.1%1 supported by growth in Stage 1 For personal use only I N T E R I M (0-6 months) driven by an increase in China newborns. Stag
Slide 9: Maintained top-5 market share position and a top-3 share gainer
Maintained top-5 market share position and a top-3 share gainer 9 R E S U L T S Total China IMF market share Value % share by brand1; MAT Dec-24 For personal use only I N T E R I M 2 0 2 5 2 Market share movements by IMF brand Change in IMF value share (% pts)3; MAT Dec-24 vs MAT Jun-24 2 Mead Johns
Slide 10: FY25 outlook upgraded
FY25 outlook upgraded 10 R E S U L T S Revenue and earnings guidance has improved from the Company’s prior outlook statement 1 mainly due to: • Stronger than expected demand for English label IMF in CBEC and O2O channels For personal use only I N T E R I M • Increased Liquid Milk sales, particularly
Slide 11: Continued execution of growth strategy with supply chain transformation a key focus
Continued execution of growth strategy with supply chain transformation 11 R E S U L T S a key focus For personal use only I N T E R I M 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 5 PEOPLE PLANET CONSUMERS SHAREHOLDER
Slide 12: Progress towards achieving medium-term goals reflected in measures of success
Progress towards achieving medium-term goals reflected in 12 R E S U L T S measures of success For personal use only I N T E R I M PEOPLE PLANET CONSUMERS SHAREHOLDERS BRAND MARKET INNOVATION SUPPLY HEALTH SHARE CHAIN 2 0 2 5 1 2 3 4 5 6 7 Safety GHG emissions China brand MBS share China other Acces
Slide 13: Continued progress made against supply chain transformation priority
Continued progress made against supply chain transformation priority 13 R E S U L T S • Advanced EL IMF partnership with Yashili NZ with the For personal use only I N T E R I M development and manufacture of a new HMO formulation product, a2 Genesis • Commenced China based production of seniors fort
Slide 14: Significant progress against medium term growth ambition
Significant progress against medium term growth ambition 14 R E S U L T S Medium-term revenue and EBITDA margin ambition Areas of planned revenue growth Commentary For personal use only I N T E R I M Revenue, NZ$ billions EBITDA margin EBITDA margin target in the teens • Strong 1H25 result and upgra
Slide 15: Financial overview
For personal use only Financial overview
Slide 16: Revenue and earnings growth with margins impacted by one-off items
Revenue and earnings growth with margins impacted by one-off items 16 R E S U L T S $ million1 1H25 1H24 % change • Net sales revenue growth of 10.1% reflects strong EL IMF CBEC and O2O channel performance, double-digit liquid milk sales growth in ANZ Net Sales Revenue 892.8 811.1 10.1% For personal
Slide 17: Double-digit China growth driven by strategic market focus
Double-digit China growth driven by strategic market focus 17 R E S U L T S China & Total For personal use only I N T E R I M $ million Other Asia ANZ USA MVM1 Corporate Group Revenue 614.2 157.7 64.5 57.4 - 893.8 2 0 2 5 1H25 EBITDA 148.0 29.5 (4.9) (11.9) (41.8) 118.9 EBITDA % 24.1% 18.7% (7.5%) (
Slide 18: Strong growth across all product categories
Strong growth across all product categories 18 R E S U L T S Net sales revenue China & Total 1 $ million Other Asia ANZ USA MVM Group For personal use only I N T E R I M IMF 563.4 40.5 0.8 - 604.7 Liquid milk2 - 103.8 63.4 - 167.3 1H25 Other nutritionals3 50.8 12.6 - - 63.4 2 0 2 5 Ingredients - - -
Slide 19: Cash conversion supported by working capital timing benefit
Cash conversion supported by working capital timing benefit 19 R E S U L T S • Cash flows from operating activities: $78.8 million $ million 1H25 1H24 % change For personal use only I N T E R I M ‒ Operating cash conversion of 106%1 (1H24: 87%) Cash flows from operating activities ‒ Positive outcome
Slide 20: Strong balance sheet underpinned by high cash conversion
Strong balance sheet underpinned by high cash conversion 20 R E S U L T S • Cash and term deposits balance and consolidated For personal use only $ million 1H25 2H24 % change net cash position of $1,014.0 million1 with operating cash I N T E R I M Cash and term deposits 1,042.0 968.9 7.5% conversion
Slide 21: Regional and product performance
For personal use only Regional and product performance
Slide 22: Sustained China label growth despite market and supply challenges
China label Sustained China label growth despite market and supply challenges 22 R E S U L T S Growth driven by online channel, with supply constraints resolved China label net sales revenue For personal use only I N T E R I M $ million4 • CL IMF sales up 2.0% in a declining market (down 8.0% on 1H2
Slide 23: Maintained MBS share with DOL share reaching new highs
China label Maintained MBS (offline) share with DOL (online) share reaching new highs 23 R E S U L T S China label market dynamics improving Strong a2 China label performance driven by DOL For personal use only I N T E R I M • China label market declined by 8.0% in 1H25 1 due to • Share gains in ear
Slide 24: Record marketing investment focused on a2 brand superiority
China label Record marketing investment focused on a2® brand superiority 24 R E S U L T S a2® Superiority campaign For personal use only A1 Protein Free campaign Daddy Lab endorsement I N T E R I M 2 0 2 5 • Campaign focused on leveraging • Daddy Lab: Leading independent • Campaign focused on maximi
Slide 25: Expanding a2 Milk powder range across key seniors and kids segments
China label Expanding a2 Milk® powder range across key seniors and kids segments 25 R E S U L T S New fortified seniors powder range launched late in 1H25 New fortified kids powder to launch in 3Q25 For personal use only I N T E R I M • China seniors milk powder market is worth >$1.5 billion • China
Slide 26: Significant increase in English label sales in CBEC and O2O channels
English label Significant increase in English label sales in CBEC and O2O channels 26 R E S U L T S English label continues to grow supported by strong market CBEC (including O2O) EL IMF revenue For personal use only I N T E R I M $ million by half2 • EL revenue growth1 of 13.0% to $298.9 million wi
Slide 27: Positive EL market trends and step up in a2MC demand post Double-11
English label Positive EL market trends and step up in a2MC demand post Double-11 27 R E S U L T S Favourable English label market dynamics Strong a2 English label performance For personal use only I N T E R I M • EL increasing share of total IMF, recovering from a low of 14% • a2MC’s demand signifi
Slide 28: Marketing investment focused on building a2 Platinum talkability
English label Marketing investment focused on building a2 Platinum® talkability 28 R E S U L T S Refreshed a2 Platinum® TVC For personal use only Social Media engagement Consumer testimonials I N T E R I M 2 0 2 5 • Campaign messaging focused on • Social campaign across LRB and • Encourage consumers
Slide 29: Introducing a2 Genesis targeting growing HMO market segment
English label Introducing a2 GenesisTM targeting growing HMO market segment 29 R E S U L T S For personal use only I N T E R I M • Innovative HMO formulation containing 3 HMOs, probiotics and prebiotics • Formulated with premium Algal DHA 2 0 2 5 • Launched in Hong Kong CBEC channel in January 2025
Slide 30: ANZ liquid milk sales supported by growth from a2 Milk Lactose Free
ANZ liquid milk ANZ liquid milk sales supported by continued strong growth from 30 a2 Milk® Lactose Free R E S U L T S a2MC liquid milk performing well in a challenging market Australia liquid milk net sales revenue For personal use only I N T E R I M $ million by half • Net sales revenue up 11.2% t
Slide 31: USA double-digit sales growth with continued profitability improvement
USA USA double-digit sales growth with continued profitability improvement 31 R E S U L T S Strong sales growth supported by ongoing profitability focus Revenue For personal use only I N T E R I M • Revenue increased 13.2% to $64.5 million $ million2 • Sales growth driven by resilient and growing a2
Slide 32: MVM remains focused on building capability and reducing losses
Mataura Valley Milk MVM remains focused on building capability and reducing losses 32 R E S U L T S Continued focus on site optimisation Revenue and EBITDA For personal use only I N T E R I M $ million • Net sales revenue of $57.4 million, up $13.9 million, reflecting higher GDT pricing and higher m
Slide 33: Questions
For personal use only Questions
Slide 34: Appendix
For personal use only Appendix
Slide 35: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures 35 R E S U L T S $ million 1H25 1H24 For personal use only I N T E R I M Australia & New Zealand segment EBITDA 29.5 34.8 China & Other Asia segment EBITDA 148.0 135.9 2 0 2 5 USA segment EBITDA (4.9) (8.3) MVM segment EBITDA (11.9) (15.3) Eliminations EBITDA (0.1
Slide 36: a2MC glossary of terms
a2MC glossary of terms 36 R E S U L T S Acronym Meaning Acronym Meaning Acronym Meaning a2MC The a2 Milk Company Limited GHG Greenhouse gas OOH Out of home advertising For personal use only I N T E R I M AMP Adult milk powder GM Gross margin O2O Offline to online ANZ Australia and New Zealand HMO Hu
Slide 37: www.thea2milkcompany.com
For personal use only www.thea2milkcompany.com