A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — Fourteenth Annual Australia and New Zealand Investment Forum 2018
41 slides from A2 Milk's conference presentation, Mar 8, 2018
Slide 1: Fourteenth Annual Australia and New Zealand Investment Forum
Fourteenth Annual Australia and New Zealand Investment Forum Goldman Sachs| New York| 8-9 March 2018 a2 Milk™, a2 Platinum™ and The a2 Milk Company™ are trade marks of The a2 Milk Company Limited
Slide 2: Disclaimer
Disclaimer This presentation dated March 8, 2018 provides additional comment on the Interim Report of The a2 Milk Company Limited, a company incorporated in New Zealand (a2MC), and its subsidiaries, for the six months ended 31 December 2017 and the accompanying information released to the market on
Slide 3: CEO quote on continued growth
“The Company’s continued growth reflects increasing consumer acceptance of our brand and the | benefits of dairy-based products free \\ from the A1 beta casein protein type” Geoffrey Babidge Managing Director & CEO a
Slide 4: Contents
Contents * Company overview * Group strategy update ¢ 1H18 results & regional highlights ¢ FY18 outlook ¢ Appendix
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Slide 6: The a2 Milk Company at a glance
The a2 Milk Company at a glance ¢ The a2 Milk Company (“a2MC") is in the business of producing, Key metrics FY17 marketing and selling premium branded dairy nutritional products in ae one targeted global markets USD million’ NZD million res . 7 ¢ All a2MC branded products contain only A2 beta casein
Slide 7: The a2 Milk Company proposition
The a2 Milk Company proposition a2 Milk™ Single-minded company focus on A1 protein-free products (pioneers and experts) Unique and effective marketing approach = Compelling and growing scientific evidence Clean and green Australia and NZ sourcing profile (strength in Asia) vl, Integrated IP portfoli
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Slide 10: Group strategy update
Group strategy update J
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Slide 12: Dairy nutrition innovation continuum
Dairy nutrition innovation continuum Pree an wun Further scope for Ym * innovation in g existing & adjacent =, product segments 2) g level of product customisation Milk drinks and — Protein powders j 3 5 4 O Gq ; rw 5 “Co % ey, B® vs Agua 8 uritiows
Slide 13: New unifying brand identity rolling out across regions and innovation
New unifying brand identity rolling out across regions and innovation CHOCOLATE! REDUCED FAT MILK Pregnancy, infant and toddler nutrition _—— 2H18 launch
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Slide 17: 1H18 results & regional highlights
1H18 results & v= regional highlights ==
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Slide 19: Key financial charts
Key financial charts’ Group Revenue (NZ$ million) Group EBITDA2 (NZ$ million) Basic Earnings Per Share (Cents) 549.5 1412 143.0 FY15 FY16 FYI7 1H18 FY15 FY16 FYI7 1H18 FY15 FY16 FYI7 1H18 @1H @2H miH m2H Full Year mHalf Year 1 The Company‘s financial year ends 30 June; 1H refers to the first half pe
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Slide 21: Segment financial performance
Segment financial performance an Australia & New | China & other 2 Total NZS million Zealand ‘Asia Corporate UK & USA’ Group Infant Formula tute Revenue 304.2 114.4 - 16.1 434.7 341.0 EBITDA! 116.4 48.3 (13.3) (8.4) 143.0 417 Revenue 206.6 37.7 - 11.8 256.1 184.5 EBITDA 70.4 13.7 (12.3) (7.7) 64.1 R
Slide 22: 1H18 regional performance overview
1H18 regional performance overview' ANZ Revenue (NZ$ million) China & other Asia Revenue (NZ$ million) IK & USA Revenue (NZ$ mi 439.6 21.0 FY15 FY16 FY17 1H18 FY1S FY16 FYI7 1H18 FY1S FY16 FY17 1H18 m1H =2H m1Hm@2H m1H @2H * Revenue: $304.3 + Revenue: $114.4 * Revenue: $16.1 * EBITDA: $116.4 * EBITD
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Slide 27: Momentum has continued to build in the US since launch
Momentum has continued to build in the US since launch a2 Milk™ brand Launch into King Dairy supply Significant PR hits Distribution Distribution launches in the US, Soopers (Denver), agreement with (LA Times, KTLA begins in Whole through Harris initially Southern Fred Meyer, Meijer second contract
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Slide 29: Advertising and media exposure increasing brand awareness
Advertising and media exposure increasing brand awareness - .»** The TT “*=* 7 — 7 ¥ | ) { AN UDDER OPTION [A MILK EARNS ENDORSEMENTS & DAIRY INDUSTRY SKEPTICISM NY ENDORSEMENTS & DARY NDUSTRY XEPTICSM View advertising clip here: View news clip here: (https:/a2milk.com/love-milk-again-tvo/) (att 1s/
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thea2milkcompany.com
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Slide 35: 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 All conventio
Slide 36: Fundamentally the product works
Fundamentally the product works Siobhan (Australia) “I wish this had been around with my first born. Ithas been amazing for my son who had an upset tummy on 3 other brands we tried first then within 5 days on a2 he was the happiest baby. no constipation, no wind, a different kid. Hands down the best
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For personal use only • • • 安吉 胡可
Slide 38: Hong Kong: new video billboards in high traffic zones
Hong Kong: new video billboards in high traffic zones' View billboard video here ’ Advertisement runs January 2018 through February 2018, and continues post Chinese New Year 38
Slide 39: Cash position
Cash position Group Cash Movement: 1H18 (NZ$ million) 423 43.2 ss 052) es “ Cash on hand Group NPAT Inventory build Other working capital__ Investments in Depreciation, FX and other Cash on hand Qun-17) PPE & intangibles amortisation & other (Dec-17) non-cash * Inventory build reflects increase in i
Slide 40: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures NZ$ million 1H18 FY17 1H17 Australia & New Zealand Segment EBITDA 116.4 155.3 70.4 China & other Asia Segment EBITDA 48.3 32.8 13.7 UK & USA Segment EBITDA (8.4) (22.5) (7.7) Corporate EBITDA (13.4) (24.4) (12.3) EBITDA' 143.0 141.2 64.1 Depreciation/Amortisation
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thea2milkcompany.com
The a2 Milk Company — Fourteenth Annual Australia and New Zealand Investment Forum 2018 on 6ix