A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — Select Equities Conference 2019
17 slides from A2 Milk's conference presentation, Oct 31, 2019
Slide 1: Stepping it up
For personal use only Stepping it up. The a2 Milk Company Limited Select Equities Conference | Sydney | 31 October 2019
Slide 2: Stepping it up
For personal use only STEPPING IT UP The a2 Milk Company at a glance Key ingredients for the ongoing success of our business Accelerating focus and investment in Greater China
Slide 3: The a2 Milk Company at a glance
The a2 Milk Company at a glance For personal use only (all figures NZ$) • Premium branded dairy nutritional company $1.3b FY19 Revenue ↑ $381.8M vs FY18 • Uniquely focused on products containing the A2 beta casein protein type 39.3cps FY19 EPS1 ↑ 12.3cps vs FY18 • Our strong, modern brand is buildin
Slide 4: FY19 key financial charts
FY19 key financial charts1 For personal use only Group revenue (NZ$ million) Group EBITDA2 (NZ$ million) Basic earnings per share (cents) 1,304.5 413.6 39.3 922.7 691.4 27.0 283.0 195.2 549.5 488.0 140.0 352.8 12.7 293.4 141.2 613.1 218.4 213.6 54.6 77.1 4.4 434.7 143.0 256.1 139.2 64.1 FY16 FY17 FY
Slide 5: Macro factors shaping consumer demand and creating opportunity
Macro factors shaping consumer demand and creating opportunity For personal use only Growing consumer Growing focus on Rise of the demand for food safety, Rapid pace of middle class health and naturalness digitalisation in Asia wellness products and provenance Select Equities Conference| 5
Slide 6: Key ingredients for the ongoing success of our business
Key ingredients for the ongoing success of our business For personal use only 1 Focus – core markets and existing products first, new products second, new markets third 2 Accelerating investment to increase and deepen consumer understanding and engagement: − Significant increase in brand awareness l
Slide 7: Accelerating focus and investment in Greater China
For personal use only G R E AT E R C H I N A Accelerating focus and investment in Greater China.
Slide 8: Infant formula category dynamics are attractive
Infant formula category dynamics are attractive For personal use only There are several factors impacting infant formula category dynamics: • Population demographics: structurally challenge the market as there are fewer women of childbearing age and as is the case elsewhere, women are having childre
Slide 9: Consumers engage with multiple and diverse information sources and channels
Consumers engage with multiple and diverse information sources and channels For personal use only Sources of information Purchase channels Examples Online Word of mouth JD Domestic e-commerce platforms Tmall Babytree Key opinion leader/key opinion consumer JD Global Cross-border e-commerce (CBEC) Tm
Slide 10: Pace of retail innovation in China is unprecedented globally
Pace of retail innovation in China is unprecedented globally For personal use only The China retail landscape has evolved rapidly since the 1990s 1990s 1996 2006 2011-2016 2017- now… Simple structure Modern trade booming Diversified channel Integrated online & offline Department stores Hypermarkets
Slide 11: Our marketing investment is focused on building awareness and conversion
Our marketing investment is focused on building awareness and conversion For personal use only • Different marketing approaches are tailored to distinct steps in the consumer’s path to Direct or indirect purchase • Primary focus is driving growth in brand awareness – given our relatively high loyalt
Slide 12: Examples of marketing investment over FY19
Examples of marketing investment over FY19 For personal use only Broadcast media to In-store education and Trade and retail build awareness activation to drive trial awareness building Cumulative focus on building awareness and driving conversion with activations targeting consumers, influencers and
Slide 13: While growing across all channels, revenue mix is changing and evolving
While growing across all channels, revenue mix is changing and evolving For personal use only We are growing revenue across all our channels… …changing the shape of our business a2MC IMF revenue (NZ$m) a2MC IMF % revenue by channel 2% 6% 1,063.8 12% 16% 20% 167.8 18% 22% 23% 724.4 243.1 83.9 158.0 3
Slide 14: Our broader portfolio of products in China play in very big categories
Our broader portfolio of products in China play in very big categories For personal use only Pre-birth Infants and toddlers Young school children Families Select Equities Conference| 14
Slide 15: Questions
For personal use only QUESTIONS
Slide 16: Disclaimer
Disclaimer For personal use only This presentation dated 31 October 2019 should be read in conjunction with, and subject to, the explanations and views in documents previously released to the market by The a2 Milk Company Limited (the “Company”), including the Company’s Annual Report for the 12 mont
Slide 17: For personal use only
For personal use only t h e a 2 m i l kc o m p a n y. c o m
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