A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — Macquarie Australia Conference 2017
27 slides from A2 Milk's conference presentation, May 3, 2017
Slide 1: NZX/ASX Market Release: Investor Presentation
NZX Code: ATM ASX Code: A2M 3 May 2017 For personal use only NZX/ASX Market Release Investor Presentation Please find attached a presentation to be given today by The a2 Milk Company Limited at Macquarie’s annual Australia Conference in Sydney. For further information contact: Geoffrey Babidge Manag
Slide 2: The a2 Milk Company, 3 May 2017
a For personal use only i ”~ The 2 Milk | Company . 3 MAY 2017 a2 Milk™ a2 Platinum™ and The
Slide 3: Agenda
Agenda • Company overview For personal use only • 1H17 results summary • Q317 update • Summary & outlook • Appendix 2
Slide 4: Company Overview
For personal use only COMPANY OVERVIEW
Slide 5: The a2 Milk Company at a glance
The a2 Milk Company at a glance • The a2 Milk Company (“a2MC”) is in the business of Key metrics 1H171 producing, marketing and selling premium branded For personal use only AUD million2 NZD million dairy nutritional products in targeted global markets Market Capitalisation3 ~2,260 ~2,490 • All a2MC
Slide 6: The a2 Milk Company proposition
The a2 Milk Company proposition For personal use only 1 Single-minded company focus 2 Compelling and growing 34. Integrated IP portfolio and on A1 protein-free products scientific evidence proprietary know-how (pioneers and experts) 46. Unique and effective 55. Clean and green Australia 63. Capital-
Slide 7: Company strategic agenda
Company strategic agenda For personal use only + Continue to Further build a Establish a broader build a substantial global infant nutrition nutritional business premium milk business business • Strategic cornerstone of a2MC • Leverage a2 Milk™ proposition • Leverage a2 Milk™ proposition into
Slide 8: We're on an extraordinary growth and transformational journey
We’re on an extraordinary growth and transformational journey For personal use only View company film here: https://thea2milkcompany.com/ 7
Slide 9: 1H17 Result Summary
For personal use only THI? RESULT SUMMARY
Slide 10: Financial summary
Financial summary NZ$ million 1H17 1H16 % change For personal use only Revenue 256.1 139.2 +84% Gross margin 119.0 57.0 +109% • Gross margin reflects increased contribution from infant formula sales Sales & Distribution (11.2) (7.2) +56% Marketing (16.0) (10.0) +60% • Continued investment in marketi
Slide 11: Financial overview
Financial overview NZ$ million 1H17 1H16 Movement % For personal use only Segment Operating Segment Operating Segment Operating Operating Segment Revenue EBITDA1 Revenue EBITDA Revenue EBITDA ANZ 206.6 70.4 127.9 34.5 +62% +104% China and other Asia 37.7 13.7 8.4 1.2 +348% +1,021% Corporate and othe
Slide 12: Segment 1H17 performance
Segment 1H17 performance ANZ CHINA • a2 Platinum® fastest growing infant formula brand1 • Brand awareness and infant formula market share For personal use only • Flexible strategy to meet changing distribution trends growing rapidly incl. effective management of the “Daigou” channel • Online strateg
Slide 13: Key financial charts
Key financial charts Group Revenue Group EBITDA1 Portfolio Composition For personal use only (NZ$ million) (NZ$ million) (% Group Revenue) 352.8 64.1 256.1 54.6 213.6 155.1 27% 35.9 64.1 61% 256.1 72% 80.3 139.2 70% 4.8 18.7 74.8 34% 22% FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 1H17 1H 2H 1H 2H Liqui
Slide 14: FY17 Update
For personal use only Q FY17 03 UPDATE
Slide 15: FY17 Q3 update: months to March
FY17 Q3 update: 9 months to March Group For personal use only • Group revenue for 9 months ended 31 March 2017 of NZ$388.5 million Cumulative Group Revenue (NZ$ million) • Strong demand for a2 Platinum® infant formula in Q317 exceeded expectations in Australia and China ~ 525.0 • Working closely wit
Slide 16: FY17 Q3 update: ANZ and China
FY17 Q3 update: 9 months to March ANZ • Continued significant growth in a2 Platinum® market share to ~33% in latest quarter1 For personal use only • Responding to increasing demand through changes to production plan • Recent Australian advertising campaign supporting growth in fresh milk volume • Co
Slide 17: China infant formula regulatory environment
China infant formula regulatory environment • Monitoring of the regulatory environment in China for further changes and clarification remains an ongoing focus for the Company For personal use only • CFDA1 registration required for products imported from 1 January 2018 • Inventory received in China p
Slide 18: FY17 Q3 update: UK and USA
FY17 Q3 update: 9 months to March UK For personal use only • Continued strong growth in UK fresh milk, now exceeding plan by 60% • Improved rate of sale across key accounts • Additional ranging in J Sainsbury for semi-skimmed and listing of whole milk USA • Continued focus to build rate of sale in e
Slide 19: New USA marketing campaign: Love milk again
New USA marketing campaign: “Love milk again” For personal use only View advertising here: https://a2milk.com/love-milk-again-tvc/ 18
Slide 20: Summary & Outlook
For personal use only SUMMARY & OUTLOOK
Slide 21: Summary and outlook
Summary and outlook • Strong sales momentum has continued into Q317 with Group revenue of NZ$388.5 million for 9 months ending March 2017 For personal use only • Demand for a2 Platinum® in Q317 exceeded expectations, in Australia and through the CBEC channel into China • Seeking to address out of st
Slide 22: Disclaimer
Disclaimer This presentation dated 3 May 2017 has been prepared by The a2 Milk Company Limited (the Company) to provide a general overview of the Company. The information contained in this presentation should be read in conjunction with, and subject to, the Company’s FY17 Half Year Interim For perso
Slide 23: www.thea2milkcompany.com
www.thea2milkcompany.com
Slide 24: Appendix
un) APPENDIX Ajuo osn feuosied 105
Slide 25: What is the a2 Milk brand difference?
What is the a2 Milk™ brand difference? • The a2 Milk™ brand is a naturally occurring cows’ milk and not a product of a technological process or genetic engineering • a2MC have accumulated significant proprietary know-how and quality processes to ensure a2MC products are A1 protein-free For personal
Slide 26: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures For personal use only NZ$ million 1H17 1H16 Australia & New Zealand Segment EBITDA 70.4 34.5 China & other Asia Segment EBITDA 13.7 1.2 UK & USA Segment EBITDA (7.7) (8.1) Corporate & other Segment EBITDA (12.3) (8.9) EBITDA1 64.1 18.7 Depreciation/Amortisation (1
Slide 27: www.thea2milkcompany.com
www.thea2milkcompany.com
The a2 Milk Company — Macquarie Australia Conference 2017 on 6ix