A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — Select Equities 5th Annual China Conference 2021
13 slides from A2 Milk's conference presentation, Oct 28, 2021
Slide 1: Select Equities Conference Presentation
NZX Code: ATM For personal use only ASX Code: A2M 28 October 2021 NZX/ASX Market Release Select Equities Conference Presentation The a2 Milk Company is today presenting the attached at the Select Equities – 5th Annual China Conference. Authorised for release by: David Bortolussi Managing Director an
Slide 2: Doing Business in China
For personal use only DOING BUSINESS IN CHINA 28 October 2021 The a2 Milk Company
Slide 3: Disclaimer
Disclaimer For personal use only This presentation dated 28 October 2021 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 documents previously relea
Slide 4: The a2 Milk Company overview
D A Y The a2 Milk Company overview I N V E S T O R For personal use only We enrich lives by harnessing the nutritional wonders of nature – through the naturally occurring a2 MilkTM difference 2 0 2 1 Portfolio of a2 MilkTM based products including fresh milk, UHT, ESL, IMF, milk powder and other nut
Slide 5: We have taken action to address the disruption experienced in FY21
D A Y We have taken action to address the disruption experienced in FY21 I N V E S T O R For personal use only Issues disrupting a2MC in FY21 Key actions we have taken 2 0 2 1 Cross-border trade was disrupted by COVID-19, • Recognised stock write-downs and deliberately creating substantial demand/su
Slide 6: We have undertaken a holistic review of our growth opportunities
We have undertaken a holistic review of our growth opportunities For personal use only Market • Continuing the journey to focus on our China market opportunity in particular • Reviewing our brand positioning to create continued distinctiveness amongst an Brand evolving consumer base and new entrants
Slide 7: We have adapted our a2MC growth strategy
We have adapted our a2MC growth strategy For personal use only Purpose To enrich lives by harnessing the nutritional wonders of nature Ambition Rebuild a2MC into an exciting, innovative and sustainable growth company People Sustainability Consumers Shareholders Create the safest and most diverse, Su
Slide 8: Our strategy is designed to drive growth across multiple horizons
Our strategy is designed to drive growth across multiple horizons For personal use only FY25-26 FY23-24 Deliver “next wave” growth FY22 Full scale roll-out of from innovation and supply Stabilise and reset strategy growth & other initiatives chain transformation • Restore demand & supply balance • L
Slide 9: We are focused on five key non-financial measures of success over time
We are focused on five key non-financial measures of success over time For personal use only People Sustainability Brand health Market share Innovation 1 2 3 4 5 Safety TRIFR <10 GHG emissions China unprompted Top-5 CL IMF player Access to ≥3 CL with continuous reduction awareness >25% with share >5
Slide 10: Defining a specific timeline to achieve our financial goals is challenging
Defining a specific timeline to achieve our financial goals is challenging For personal use only • The pace and degree of change in the China IMF market over the past 12 months is truly unprecedented – including from the prolonged COVID-19 impact and the reduction in the number of Chinese newborns •
Slide 11: We have an ambition to grow sales to over NZD$2 billion
Notwithstanding, we have an ambition to grow sales to over NZD$2 billion For personal use only Medium-term indicative sales ambition (≥ 5 years) EBITDA margin dynamics • Indicative range ‒ IMF sales, particularly EL, key driver of upside/downside risk ‒ Target margins probably in the “teens” in the
Slide 12: Key messages
D A Y Key messages I N V E S T O R For personal use only • The market landscape has experienced unprecedented 2 0 2 1 change over the past 12 months, requiring us to adapt • As a result, we have adapted our growth strategy to achieve the full potential of our business • Importantly, our brand is str
Slide 13: Questions?
For personal use only 12 QUESTIONS?
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