Fonterra Co-operative Group Limited · NZX:FCG
Fonterra Co-operative — Fonterra Shareholders' Fund — Shareholder Meeting (December 2021)
32 slides from Fonterra Co-operative's shareholder meeting presentation, Dec 13, 2021
Slide 1: Fonterra Shareholders' Fund 2021 Annual Meeting
Fonterra Shareholders’ Fund 2021 Annual Meeting 13 December 2021
Slide 2: Chair, FSF Management Company
Chair FSF Management Company
Slide 3: Shareholder & Proxyholder Q&A Participation
Shareholder & Proxyholder Q&A Participation Written Questions: • Questions may be submitted ahead of the meeting • If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime • Type your question into the field and press submit • Yo
Slide 4: Shareholder & Proxyholder Voting
Shareholder & Proxyholder Voting • Once the voting has been opened, the resolutions and voting options will allow voting • To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen • You can vote for all resolutions at once or by each resolution • Y
Slide 5: John Shewan, Peter McBride, Miles Hurrell, Mary-Jane Daly
John Shewan John Shewan Peter McBride Miles Hurrell Mary-Jane Daly John Shewan John Shewan
Slide 6: FSF Management Company Board
John Shewan Kim Ellis Mary-Jane Daly Donna Smit Andy MacFarlane Chair Peter McBride Miles Hurrell Marc Rivers
Slide 7: Fonterra FY21 highlights
• Fonterra continued to demonstrate resilience during COVID-19 ¹ • Fonterra delivered a strong financial result, driven by its diversified portfolio across channels and regions ¹ • Fonterra continued to significantly reduce its debt ² • Increased distributions to the Fonterra Shareholders’ Fund Note
Slide 8: Fund unit price performance
Interim FY21 $6.00 Results Results Balance • $5.00 Date Up 33%, from $3.82 to $5.08 (1 August 2020 – 17 March 2021) $4.00 • $3.00 Down 2%, from $3.82 to $3.74 Capping (1 August 2020 – 31 July 2021) of Fund $2.00 • Up 5.5%, from $3.82 to $4.00 $1.00 (1 August 2020 – 23 September 2021) Aug 20 Nov 20 F
Slide 9: Register composition
• Small increase in retail, institution and private wealth management holdings • Majority of register held in New Zealand, with further reduction in offshore holdings 2021 2020 2021 2020 71% 88% Retail New Zealand 70% 86% 14% 8% Institution Australia 13% 9% Farmer 9% 2% United States Shareholder 12%
Slide 10: Fund key statistics
Units on Issue¹: 1m Fund Market Capitalisation¹: 75m Fonterra Market Capitalisation¹: 2.1b Fund Size¹,²: 0.1% Unit Price 12-month High/Low³: (5 Mar 21) / (29 Nov 21) 1. At 30 November 2021, relative to 30 November 2020. 2. Fonterra Shareholders’ Fund units on issue as a percentage of Fonterra Co-ope
Slide 11: Chair, Fonterra Co-operative Group
Chair Fonterra Co-operative Group
Slide 12: Chief Executive Officer, Fonterra Co-operative Group
Chief Executive Officer Fonterra Co-operative Group
Slide 13: Group financial results and debt
¹ ² 1. Attributable to equity holders of the Co-operative, excludes non-controlling interest 2. Economic net interest-bearing debt (ENIBD) gearing ratio, refer to Glossary for definition 12
Slide 14: Five-year metrics
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Note: Metrics are for the year ended 31 July 13
Slide 15: Results by channel and region
Greater Asia Pacific AMENA Total China Volume (‘000 MT)¹ EBIT contribution¹,² Ingredients Foodservice Consumer Total Note: Figures are for the year ended 31 July 2021. Comparative information has been restated for consistency with the current period 1. Prepared on a normalised Continuing Operations
Slide 16: Our robust supply chain provides value
Our robust supply chain provides value to customers, farmers and New Zealand
Slide 17: Global demand for nutrition and dairy
By retail value RSP (US$b) NEXT 5 YEARS 250 200 150 NEXT 10 YEARS 100 50 0 NEXT 15 YEARS 2020 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2000 2010 2020 2030 Milk Alternatives There will be more people The world wants sustainably Global demand for dairy is needing nutr
Slide 18: Three strategic choices to differentiate New Zealand milk
To differentiate New Zealand milk, we have made three strategic choices
Slide 19: Targets to 2030
Increase in operating Group Return on Capital, Average Farmgate profit from FY21 up from 6.6% in FY21 Milk Price range for the decade Invested in Invested in moving milk Intended to be distributed Available for sustainability to higher value products to shareholders by investment in a mix of FY24 af
Slide 20: Make the shift from a reset to value growth
Make the shift from Progress the work Narrow down and Keep hitting our a reset to value to divest our prioritise the areas environment, growth. integrated Chilean within Nutrition people and business and Science Solutions business prepare the process where we can build performance of deciding the a
Slide 21: Recent progress and guidance
KowbuchaTM Vitakey collaboration moves to on farm trials to unlock the benefits of after showing a probiotics methane reduction of up to 50% in the lab Making good progress EBIT of $190 million with the divestment of delivered in Q1, Chilean business and despite a significantly ownership review of t
Slide 22: Questions
Slide 23: Shareholder & Proxyholder Q&A Participation
Shareholder & Proxyholder Q&A Participation Written Questions: • Questions may be submitted ahead of the meeting • If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime • Type your question into the field and press submit • Yo
Slide 24: Re-election of John Shewan
Re-election of John Shewan
Slide 25: Resolution: re-elect John Shewan as director
To re-elect John Shewan, who retires by rotation and stands for re-election, as a director of the Manager of the Fund
Slide 26: Director Nominee, FSF Management Company
Director Nominee FSF Management Company
Slide 27: Resolution: re-elect John Shewan as director
To re-elect John Shewan, who retires by rotation and stands for re-election, as a director of the Manager of the Fund
Slide 28: Proxy vote results
FOR AGAINST DISCRETIONARY As at 10am Saturday 11 December 2021
Slide 29: Shareholder & Proxyholder Voting
Shareholder & Proxyholder Voting • Once the voting has been opened, the resolutions and voting options will allow voting • To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen • You can vote for all resolutions at once or by each resolution • Y
Slide 30: Fonterra Shareholders' Fund 2021 Annual Meeting
Fonterra Shareholders’ Fund 2021 Annual Meeting 13 December 2021
Slide 31: General Business
Slide 32: Thank you, meeting closed
Fonterra Shareholders' Fund — Shareholder Meeting (December 2021) on 6ix