Fonterra Co-operative Group Limited · NZX:FCG
Fonterra Co-operative — FY2024 Earnings Presentation
80 slides from Fonterra Co-operative's earnings presentation, Sep 25, 2024
Slide 1: Fonterra 2024 Annual Results
Fonterra Co-operative Group Fonterra) 2024 Annual Results Ls eptember 2024 Dairy for life
Slide 2: Results overview, performance drivers, financial outcomes, outlook, appendix
Results overview 3-9 Drivers of operating performance 10-16 Financial outcomes 17-26 Outlook 27-31 Appendix 32-68 Flexible Shareholding metrics 69-72 Additional Information 73-80
Slide 3: Results overview
from 1,755m from 1,577m from 75c from $8.22 from 28.8% from 95c from 50c from 12.4%
Slide 4: Return on capital, dividend and operating profit
Dividends (cents) • 11.3% return on capital 12.4% Return on capital 11.3% – Significantly above 5-year average and above FY24 target range 6.6% 6.6% 6.8% 55 50 • 55 cents per share – Full year dividend of 40c made up of 15c interim dividend and 25c final dividend 5 20 20 – Special dividend of 15c re
Slide 5: Innovation, divestment and sustainability highlights
• Developed and implemented an AI based fault detection system that improved butter and powder packaging efficiency, reducing plant downtime • Manufacturing innovation using steam infusion technology to increase run time and yields for UHT cream • Collaborated with QSR customers to develop a soft st
Slide 6: Outlook for dairy trade is positive
• Outlook for dairy trade is positive – Continued strong demand from key import 1.0% 1.1% 14.7% regions, particularly Southeast Asia, and Middle East and Africa 0.5% 0.2% 12.0% – China import demand impacted by prioritisation of domestic milk supply – EU production recovered due to stabl
Slide 7: Reference and Non-Reference product shipment prices
(USD/MT) 6,500 5,500 4,500 3,500 2,500 FY22 FY23 FY24 Non-Reference Product shipment price • The average price for the Reference portfolio declined USD 450 per MT or 12%, compared with the Non-Reference portfolio which Reference Product shipment price declined by USD 764 per MT or 15% year-on-year,
Slide 8: Farmgate Milk Price movement
($ per kgMS) ($ per kgMS) $10 2022/23 season monthly milk prices average to $8.22, the 0.01 Farmgate Milk Price 0.39 (0.65) $9 8.22 (0.14) 7.83 $8 $7 2023/24 season monthly milk prices average to $7.83, the Farmgate Milk Price $6 22/23 season Volume Prices Foreign Net costs 23/24 season Jun Jul Aug
Slide 9: Farmgate milk price and dividends
1 $0.20 $0.50 $0.50 $0.55 $0.20 $0.05 • Higher FY24 dividend reflects higher earnings over the last two years and a robust balance sheet • Strong balance sheet enabled further improvement in advance rate payments $9.30 – In 2023/24, early season payments increased to 75% of the $8.22 total forecaste
Slide 10: Drivers of operating performance
Slide 11: Milk collection and supplying farms
80.0% 79.0% 79.1% 79.0% 78.1% 155 • Higher average production per farm mainly due to improved production 246 222 per cow and an increase in average farm size 159 110 • Focus on quality over quantity resulted in greater solid availability in milk • Milk collected from 8,141 shareholding and 110 non-s
Slide 12: Milk collection costs and CIFOT
• Cost of collecting milk increased due to rising Road User Charges after the temporary reduction ended 16,876 17,121 16,404 16,317 3.2 in June 2023, partially offset by favourable 16,001 3.1 2.8 diesel prices 2.4 2.4 • Inflation impacted staff and vehicle maintenance costs • Use of data and analyti
Slide 13: Milk solids allocation by channel
(kgMS millions) Ingredients Foodservice Consumer 80.9% 80.4% 79.5% 79.2% 78.3% 1,168 1,177 1,196 1,160 1,105 14.2% 13.1% 13.1% 12.1% 8.4% 8.4% 7.7% 7.5% 10.7% 6.5% 180 183 195 210 154 121 124 107 97 111 Ingredients Foodservice Consumer FY20 FY21 FY22 FY23 FY24 % milk solids sold • Higher propo
Slide 14: Milk utilisation and unplanned downtime
• Milk utilisation (the proportion of milk solids made into products) improved due to favourable product mix and improved operational performance 96.4% 96.4% 96.5% 96.3% 96.7% 6.9% 6.5% 6.4% − Favourable product mix due to increased production of skim 5.8% 5.0% and cream products that have lower pro
Slide 15: Manufacturing cost per kgMS
($/kgMS) ($ million) 3,883 28 3,789 $2.63 (221) 48 51 $2.53 $2.51 $2.58 $2.49 $2.62 $2.58 $2.30 $2.06 $2.11 2.62 0.14 0.04 0.04 0.02 2.58 $ / kgMS 2020 2021 2022 2023 2024 FY23 Materials Labour Energy & Other FY24 Inflation adjusted Actual packaging • Achieved a 2% reduction in FY24 in line
Slide 16: Cash operating expenses per kgMS
($/kgMS) (m kgMS) $1.32 $1.35 $1.36 $1.29 $1.28 $1.36 35 kgMS $7m $0.02 /kgMS $1.30 $1.17 $1.09 $1.10 13 kgMS $62m $0.17 /kgMS 2020 2021 2022 2023 2024 14 kgMS $25m $0.25 /kgMS Inflation adjusted Actual ($m) Operational expenses 1,763 1,810 1,858 2,046 2,067 • Cash opex savings ach
Slide 17: Financial Outcomes
Slide 18: Five-year volumes, revenue and earnings by channel
(million MT) ($ billion) ($ billion) ($ billion) 1.73 1.76 1.68 1.74 1.63 14.96 2.64 2.39 13.98 14.11 1.83 1.78 1.99 12.16 12.00 11.99 12.32 11.72 10.32 10.22 4.6 26.0 4.1 4.1 3.9 4.0 23.4 23.0 3.9 3.5 21.0 21.1 20.1 21.4 3.3 18.0 19.1 3.2 3.1 17.8 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2
Slide 19: EBIT bridge: FY23 to FY24
Improvement in ($ million) Consumer channel, including lower FY23 includes impairments¹ in FY24 the gain on sale FY23 benefitted from Soprole Improvement in significantly from Reflects the loss Foodservice with very favourable on sale of DPA higher volumes price relativities Brazil in October 2,218
Slide 20: Shift in operating earnings between channels
($ million) Ingredients Foodservice Consumer $657 $138 $324 1,755 (97) (585) 192 1,560 83 166 (53) 49 25 25 FY23 Volume Margin Operating Volume Margin Operating Volume Margin Operating FY24 Continuing expenses expenses expenses Continuing operations EBIT and other and other and other operations E
Slide 21: Quarterly EBIT by channel
10 00 90 0 80 0 70 0 60 0 552 497 50 0 40 0 283 223 251 216 274 30 0 157 1020000 10 0 90 0 0 80 0 70 0 60 0 50 0 40 0 208 30 0 95 107 82 134 109 20 0 41 12 10 0 60 0 0 50 0 40 0 30 0 116 72 61 20 0 10 0 29 58 0 -1 00 -2 00 (76) (50) (136) Note: For the year ended
Slide 22: EBIT per kgMS by channel
$ per kgMS sold FY20 FY21 FY22 FY23 FY24 0.81 1.23 Revenue 10.82 10.72 13.11 13.77 12.36 1.08 0.69 0.74 0.27 0.97 Gross profit 1.18 0.90 1.42 2.10 1.61 1,555 0.76 Opex 1,026 347 0.74 0.70 0.85 0.90 0.93 0.61 813 898 4 0.50 EBIT 0.81 0.27 0.69 1.23 0.74 1,755 2020 2021 2022 2023 2024 1,560 kgMS sold
Slide 23: Profit after tax bridge
($ million) Operating earnings down $387m Continuing operations after adjusting for $192m less $73 Lower debt and impairments in FY24 cost of funding (336) Decrease in tax due to lower earnings and 1,577 higher dividend payment (195) 68 (40) 54 1,241 1,168 1,128 95c EPS 75c EPS 70c EPS 67c EPS FY23
Slide 24: Debt, gearing and credit ratings
($ billion) 3.3 3.2 2.7 6.5 1.3 1.2 5.7 5.7 5.3 50.2 5.2 5.1 45.7 44.8 42.4 4.3 44.2 3.9 38.5 39.4 3.2 28.8 32.7 2.6 24.0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Average debt Year-end debt Gearing ratio (%) – Average Gearing ratio (%) – Year-end Year-end Debt to EBITDA (x) 98 92 91 89 85 S
Slide 25: Return on capital
¹ ($ million) 12.4% 11.3% ² Average capital employed 7,527 7,990 7,480 6.6% 6.6% 6.8% Net operating profit after tax 676 1,302 765 12,313 12,281 12,356 12,774 11,904 Return on Capital (%) 9.0% 16.3% 10.2% from 16.3% Average capital employed 1,649 1,774 1,984 1,586 1,348 811 805 837 Net operating p
Slide 26: Exploring divestment options for Consumer and associated businesses
We are exploring divestment options for Consumer and associated businesses In preparing the In Scope and Out of Scope breakdowns, we have applied the same principles and assumptions used in our extern ally published channel and segment reporting. They reflect existing transfer pricing arrangements a
Slide 27: Outlook
Slide 28: 2024/25 Farmgate Milk Price forecast range
2022/23 Season 2023/24 Season 6,000 5,000 4,000 $8.22 $7.83 USD/MT 3,000 per kgMS 2,000 1,000 - May-22 May-23 May-24 Fonterra Reference Product shipment price Average Reference Product shipment price for the season The range reflects: • recent strengthening in GDT prices and constrained milk supply
Slide 29: FY25 earnings per share outlook
FY23 FY24 6,000 5,000 4,000 USD/MT 3,000 per share 2,000 1,000 , - , Jul-22 Jan-23 , Jul-23 Jan-24 Jul-24 Fonterra Non-Reference shipment price Fonterra Reference shipment price The range reflects: • an expectation that underlying performance will be similar to last year. Consumer operating profit f
Slide 30: Change in tax treatment and imputation credits
• In FY24, Fonterra exhausted its New Zealand tax losses that have been used to offset its tax payable to date • From FY25, Fonterra expects to be paying tax in New Zealand and as a result generating imputation credits • To enable all shareholders to receive imputation credits, Fonterra is changing
Slide 31: Illustrative example of tax and imputation credits
• This example makes simplifying assumptions to Co-operative illustrate the impact of paying more tax at the Co- No change in operating op and generating imputation credits Profit before tax 1,000 1,000 performance • The example assumes: Tax (28%) - (280) - there are 1,000 shares Profit after tax 1,
Slide 32: Appendix
Slide 33: Five-year milk, price and volume summary
$9.50 $8.72 $8.38 $7.74 $0.20 4,069 4,102 3,924 3,973 1,517 1,539 1,478 1,480 1,471 $7.19 $0.50 3,529 $0.55 $0.20 $0.05 $7.14 $7.54 $9.30 $8.22 $7.83 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Million kgMS Milk Price Dividend ('000 MT) 26.0 4,599 2,799 23.4 23.0 3,888
Slide 34: Five-year earnings, cash and leverage summary
2,218 1,881 1,527 1,593 1,577 1,147 1,128 959 976 879 952 991 659 599 583 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 ($ million) ($ million) ($ million) 3.3x 3.2x 747 720 2.7x 608 617 525 79 1.3x 1.2x 1,329 106 1,194 106 63 30 44% 42% 39% 545 587 668 614 29% 398 588 5
Slide 35: Five-year cash flow, dividend and return on capital
98 95 3,650 92 91 67 1,828 89 1,417 1,583 85 43 36 36 (324) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (Days) (cents) ($ million) 12.4 80 11.3 71 6.6 6.6 6.8 34 35 24 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (cents) (%) Note: Figures are for the year ended 31
Slide 36: Group income statement
∆ ∆ ∆ Sales volume ('000 MT) 3,973 3,529 (11)% 3,497 3,470 (1)% 476 59 (88)% Sales volume (million kgMS) 1,631 1,613 (1)% 1,631 1,613 (1)% - - - Revenue 26,046 22,994 (12)% 24,580 22,822 (7)% 1,466 172 (88)% Cost of goods sold (21,447) (19,106) 11% (20,399) (19,000) 7% (1,048) (106) 90% Gross profit
Slide 37: Continuing operations income statement
∆ Sales volume ('000 MT) 3,497 3,470 (1)% 3,071 3,028 426 442 Sales volume (million kgMS) 1,631 1,613 (1)% 1,488 1,481 143 132 Revenue 24,580 22,822 (7)% 21,791 20,222 2,789 2,600 Cost of goods sold (20,399) (19,000) 7% (17,941) (16,664) (2,458) (2,336) Gross profit 4,181 3,822 (9)% 3,850 3,558 331
Slide 38: Operating expenses
∆1 • Operating expenses from continuing operations decreased $127m • Two significant changes in FY24 relative to FY23 were the lower level of Staff expenses² 962 985 2% impairments and the increased investment in IT and Digital transformation: Storage and distribution 263 268 2% - impairments were $
Slide 39: Staff expenses
Staff expenses in cost of goods sold 1,062 1,117 1,174 1,267 1,350 Staff expenses in operating expenses 901 880 860 963 995 Total 1,963 1,997 2,034 2,230 2,345 Global milk solids collected (million kgMS) 1,624 1,645 1,584 1,586 1,578 9,713 9,810 9,877 10,027 9,958 $1.47 $1.43 $1.41 $1.45 $1.49 $1.41
Slide 40: Normalised profit after tax
EBIT1 2,218 1,527 Net finance costs (261) (164) Tax expense (380) (235) Reported profit after tax 1,577 1,128 Normalisation adjustments2 (337) 66 Tax on normalisation adjustments 89 - Normalised profit after tax 1,329 1,194 Less: Profit attributable to non-controlling interests (40) (54) Normalisati
Slide 41: Normalisation adjustments
Other operating income - 349 349 - - Other operating expenses (12) - (12) (66) (66) Profit before net finance costs and tax (12) 349 337 (66) (66) Net finance costs and tax - (89) (89) - - Profit after tax (12) 260 248 (66) (66) Profit attributable to non-controlling interests - - - (3) (3) Profit a
Slide 42: Reported and normalised earnings per share
Reported profit after tax 1,577 1,128 Less: Profit attributable to non-controlling interests (40) (54) Reported profit after tax attributable to equity holders of the Co-operative 1,537 1,074 Reported earnings per share (cents) 95 67 Normalised profit after tax 1,329 1,194 Less: Profit attributable
Slide 43: Dividend history and payout
Reported earnings¹ 95 67 • Total dividend of 55 cents per share: Less: abnormal gains (16) - – Interim dividend of 15 cents, Net earnings for dividend payment² 79 67 – Final dividend of 25 cents Dividend payment percentage (%) for Interim and Final 63% 60% – Special dividend 15 cents Total dividend
Slide 44: Return on capital calculation
Total Group normalised EBIT 1,881 1,593 • FY24 return on capital of 11.3% significantly above the 5- year average and above FY24 target range of 8-9% Finance income on long-term advances 11 14 • The change relative to FY23 reflects: Notional tax charge (305) (259) − lower after-tax earnings with the
Slide 45: Cash flow and net debt
• Decrease in net debt of $0.6b reflects continued strong operating earnings, Cash generated from operations 2,744 2,201 disciplined capital expenditure and lower working capital Net change in working capital 774 112 • Free cash flow of $1.6b was $2.1b lower than A. Net cash flows from operat
Slide 46: Free cash flow and working capital
($ million) ($ billion) 3,650 (543) 4.5 (0.2) 0.1 (0.3) (253) 4.1 (409) (862) 1,583 FY23 Earnings Suppliers Trade and Capex and FY24 FY23 Receivables Inventory Payables FY24 free cash flow payable other working other free cash flow capital investing • The lower free cash flow in FY24 relative to FY2
Slide 47: Debt funding mix and maturity profile
¹ ² Maturity Profile Maturity Profile USD DCM 18% Drawn Facilities $0.08bn FY25 Bank Facilities 2% FY25 60% NZD DCM 3% FY26 FY26 FY27 FY27 FY28 FY28 FY29 FY29 FY30 FY30 CNY DCM FY31 FY31 3% Undrawn Facilities 0.0 1.0 2.0 3.0 AUD DCM 8% $4.0bn 0.0 1.0 2.0 3.0 98% $ billion $ billion EUR DCM 8% 3 WATM
Slide 48: Capital invested
($ million) 747 ($ million) 720 621 79 558 608 617 106 534 47 152 30 56 466 525 63 53 121 173 79 382 85 106 119 78 51 40 37 104 26 36 54 54 621 15 558 14 534 466 382 333 285 281 291 249 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Essential capital for other operations Decarbonisation Other cap
Slide 49: Capital expenditure projects and site investments
• Milk tanker replacements annual Waitoa Hautapu program • Investment in biomass boiler to replace coal • Upgraded infrastructure to better manage • Farm vats replacements annual wastewater program • Change from R22 based refrigeration to a Tirau • National distribution centers sustainable alternati
Slide 50: Reference and Non-Reference milk allocation
(kgMS millions) % milk solids manufactured FY20 FY21 FY22 FY23 FY24 71.7% 69.7% 70.1% 68.6% 69.3% 1,041 1,026 994 973 977 28.3% 30.3% 29.9% 31.4% 30.7% 411 445 425 446 433 Reference Products Non-Reference Products • Materially less milk was allocated to Reference portfolio in 2023 due to high whole
Slide 51: Milk solids allocation by product
(kgMS millions) • FY23 and FY24 production significantly lower than prior years due to a conscious product mix decision to % milk solids manufactured allocate away from WMP into product streams with higher value and more stable demand FY20 FY21 FY22 FY23 FY24 • Overall, WMP demand growth has remaine
Slide 52: Segment and Channel Performance
Slide 53: Ingredients performance
∆ Sales volume ('000 MT) 2,319 2,234 (4)% 2,191 2,119 1,732 1,690 632 579 (2,236) (2,154) Sales volume (million kgMS) 1,265 1,221 (3)% 1,260 1,217 943 927 332 298 (1,270) (1,221) Revenue 17,416 15,087 (13)% 15,692 13,355 13,516 11,648 4,460 3,598 (16,252) (13,514) Cost of goods sold (14,765) (13,118
Slide 54: Ingredients EBIT
EBIT ($ million) FY24 13.9% 16.4% 17.6% 16.2% 13.7% Within the regions 10 00 12.5% 11.9% 11.3% 20 .0% 90 0 10 .0% 1,555 (658) 80 0 0.0 % 70 0 -1 0.0 % 552 60 0 497 -2 0.0 % (43) 54 (10) 898 50 0 -3 0.0 % 283 274 40 0 -4 0.0 % 30 0 223 251 216 -5 0.0 % 20 0 157 -6 0.0 % 10 0 -7 0.0 % 0 -8 0.0 % FY23
Slide 55: Ingredients Reference and Non-Reference products
(‘000 MT) • Sales volume 30,000 MT lower due to: Reference Products 1,782 1,744 (2)% – 38,000 MT less of Reference products due to lower milk Non-Reference Products 883 891 1% collections and less inventory sell down relative to prior year – 8,000 MT increase in higher value Non-Reference due to (NZ
Slide 56: Foodservice performance
∆ Sales volume ('000 MT) 546 564 3% 334 354 280 281 274 292 (342) (363) Sales volume (million kgMS) 219 230 5% 156 174 98 96 124 137 (159) (177) Revenue 3,865 4,057 5% 1,994 2,213 1,845 1,805 2,236 2,377 (2,210) (2,338) Cost of goods sold (3,116) (3,117) - (1,908) (2,148) (1,582) (1,463) (1,836) (1,
Slide 57: Foodservice EBIT
EBIT ($ million) FY24 29.4% Within the regions 23.3% 23.5% 10 00 40 .0% 19.3% 21.7% 22.0% 90 0 14.4% 16.0% 20 .0% 80 0 70 0 185 (55) 0.0 % 463 60 0 50 0 -2 0.0 % 325 (19) 27 40 0 -4 0.0 % 30 0 208 95 107 134 109 82 20 0 -6 0.0 % 10 0 41 12 0 -8 0.0 % FY23 EBIT Core Volume Margin Operating FY24 EBIT
Slide 58: Consumer performance
∆ Sales volume ('000 MT) 632 672 6% 259 268 563 606 72 73 (262) (275) Sales volume (million kgMS) 148 161 9% 108 113 135 149 13 14 (108) (115) Revenue 3,299 3,678 11% 1,456 1,409 3,040 3,365 376 394 (1,573) (1,490) Cost of goods sold (2,518) (2,765) (10)% (1,398) (1,363) (2,399) (2,604) (294) (288)
Slide 59: Consumer EBIT
EBIT ($ million) FY24 60 0 25.8% 28.8% 25.2% 26.5% Within the regions 23.8% 21.2% 24.0% 50 0 18.5% 30 .0% 40 0 10 .0% 194 199 30 0 -1 0.0 % 94 116 20 0 58 61 72 (50) 10 0 29 (136) (76) -3 0.0 % 0 (125) (14) 50 -1 00 -5 0.0 % FY23 EBIT Core Volume Margin Operating FY24 EBIT -2 00 -7 0.0 % Operations
Slide 60: Core Operations performance
∆ Sales volume ('000 MT) 2,784 2,741 (2)% 2,191 2,119 334 354 259 268 Sales volume (million kgMS) 1,524 1,504 (1)% 1,260 1,217 156 174 108 113 Revenue 19,142 16,977 (11)% 15,692 13,355 1,994 2,213 1,456 1,409 Cost of goods sold (17,513) (16,074) 8% (14,207) (12,563) (1,908) (2,148) (1,398) (1,363) G
Slide 61: Core Operations gross profit per kgMS
• The gross profit from Core Operations per kgMS is calculated by dividing the gross profit from Core Operations (excluding Farm $/kgMS Source and cost of milk) by kgMS of Core Operations’ sales • This measure of ‘gross profit’ is effectively equivalent to revenue less the manufacturing and other co
Slide 62: Fonterra Australia performance
• Gross profit was down reflecting the higher milk price and particularly its impact ∆¹ on Ingredients, partially offset by the continued strong performance in Consumer Sales volume (‘000 MT) 379 384 1% and Foodservice Sales volume (million kgMS) 139 135 (3)% • Revenue was down 3% due to channel mix
Slide 63: Fonterra Australia milk collection and market share
15.8% 15.9% 16.7% 16.2% • Stable Australian milk collection market share and milk collection volume 15.4% throughout the year 1,389 1,366 1,360 1,365 1,359 • Optimised volumes of milk collected to meet the accurate level of demand, while managing the volatility in the global commodity prices • Conti
Slide 64: Global Markets performance
∆ Sales volume ('000 MT) 2,575 2,577 - 1,732 1,690 280 281 563 606 Sales volume (million kgMS) 1,176 1,172 - 943 927 98 96 135 149 Revenue 18,401 16,818 (9)% 13,516 11,648 1,845 1,805 3,040 3,365 Cost of goods sold (16,565) (14,775) 11% (12,584) (10,708) (1,582) (1,463) (2,399) (2,604) Gross profit
Slide 65: Greater China performance
∆ Sales volume ('000 MT) 978 944 (3)% 632 579 274 292 72 73 Sales volume (million kgMS) 469 449 (4)% 332 298 124 137 13 14 Revenue 7,072 6,369 (10)% 4,460 3,598 2,236 2,377 376 394 Cost of goods sold (6,356) (5,493) 14% (4,226) (3,361) (1,836) (1,844) (294) (288) Gross profit 716 876 22% 234 237 400
Slide 66: Global Markets performance (comparative)
∆ Sales volume ('000 MT) 2,517 2,526 - 1,686 1,655 272 272 559 599 Sales volume (million kgMS) 1,162 1,164 - 933 923 95 93 134 148 Revenue 17,926 16,665 (7)% 13,218 11,628 1,758 1,737 2,950 3,300 Cost of goods sold (14,911) (13,978) 6% (11,176) (10,142) (1,486) (1,353) (2,249) (2,483) Gross profit 3
Slide 67: Greater China performance (comparative)
∆ Sales volume ('000 MT) 980 944 (4)% 633 579 274 292 73 73 Sales volume (million kgMS) 469 449 (4)% 332 298 124 137 13 14 Revenue 6,654 6,157 (7)% 4,198 3,459 2,107 2,320 349 378 Cost of goods sold (5,488) (5,022) 8% (3,589) (2,976) (1,630) (1,764) (269) (282) Gross profit 1,166 1,135 (3)% 609 483
Slide 68: Discontinued operations performance
∆ ¹ Sales volume ('000 MT) 476 59 (88)% 1 - 224 59 251 - Sales volume (million kgMS) - - - - - - - - - Revenue 1466 172 (88)% 15 - 599 172 852 - Cost of goods sold (1,048) (106) 90% (27) - (405) (106) (616) - Gross profit 418 66 (84)% (12) - 194 66 236 - Operating expenses (303) (99) 67% (12) - (137
Slide 69: Flexible Shareholding Metrics
Slide 70: Flexible Shareholding metrics within thresholds
As at 31 July 2024, the Co-operative was within the specified thresholds for all three Flexible Shareholding metrics from 12.22% from 9.23% No change • The percentage of Co-operative Shares on issue • The percentage of shares held by shareholders • The size of the Fonterra Shareholders’ Fund has
Slide 71: Shareholder categories and shares on issue
Supplying Shareholders 1,329,997,797 82.65% Secondary Shareholders 3,196,485 0.20% Associated Shareholders 1,514,150 0.09% Ceased Shareholders 144,441,902 8.98% Permitted Transferees 19,609,511 1.22% Custodian shares, on behalf of the Fund 107,410,984 6.67% Custodian shares, on behalf of the Market
Slide 72: Number of shareholding farms and milk supply
# of shareholding farms 562 1,033 5,137 1,426 8,158 Milk Supply1 (kgMS) 101,180,361 201,632,511 949,852,792 171,735,512 1,424,401,176 Shareholding farms holding 33% of the 45 Milk supply at 33% of the Number of Shareholding Farms Share Standard Milk Supply1 (million kgMS) 250 Share Standard Sharehol
Slide 73: Additional Information
Slide 74: FY24 scorecard: targets and measures
Serious harm 8 5 3 4 Gender diversity (Band 12+) 37.6% 39.5% 40.1% 40.0% Culture Measure – 79 79 –¹ GHG emissions (Scope 1,2)² (11.2)% (14.1)% (18.5)% (15.6)% FEP adoption (New Zealand) 71% 85% 93% 92% Water Improvement Plans in place – 44.0% 100% 100.0% Share of New Zealand milk collected for the s
Slide 75: FY25 scorecard targets
Serious harm¹ 18 16 12 Percentage of Health, Safety and Wellbeing priority actions fully completed by due date 76% 77% 95% Culture Measure 79 79 81 GHG emissions (Scope 1,2)² (14.1)% (18.5)% (21.1)% Absolute water reduction across manufacturing sites (15% by FY30)² (6.7)% (12.4)% (13.1)% Share of Ne
Slide 76: Data sources and date ranges
• Dairy Production and Imports – 12-month production ▪ NZ, US (Aug 2023 to Aug 2024) DCANZ, USDA ▪ EU, Aus (Jun 2023 to Jun 2024) Eurostat, Dairy Australia ─ 3-month production ▪ NZ, US (Jun 2023 – Aug 2023 to Jun 2024 – Aug 2024) DCANZ, USDA ▪ EU, Aus (Apr 2023 – Jun 2023 to Apr 2024 – Jun 2024) Eu
Slide 77: Glossary
Is a Shareholder that is a Farm Lessor, Sharemilker or Contract Milker is the cost of sales, variable and fixed costs of the COO business unit less represents the channel selling to businesses that cater for out-of-home non-cash costs (depreciation, amortisation and impairment) shown by consumption;
Slide 78: Glossary (continued)
is a third party appointed by the Co-op who is active in making bids and is a person who has been approved by the Co-op and who is (and remains) is a shareholder supplying milk to the Co-op offers on a minimum number of Fonterra Co-operative Group Shares related to or associated with a Ceased Shareh
Slide 79: Forward-looking statements disclaimer
This presentation may contain forward-looking statements, financial targets and ambitions (“Forward Statements”), each of which is based on a range of assumptions, including (in the case of our 2030 strategy) the assumptions noted in the Appendix of the booklet titled Our Path to 2030 which is avail
Slide 80: Dairy for life
Dairy for life fonterra.com
Fonterra Co-operative Group — FY2024 Earnings Presentation on 6ix