A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — FY2025 Earnings Presentation
62 slides from A2 Milk's earnings presentation, Aug 18, 2025
Slide 1: 2025 Annual results and Supply Chain Transformation update
For personal use only The a2 Milk Company Limited 2025 Annual results and Supply Chain Transformation update We pioneer the future of Dairy for good 18 August 2025
Slide 2: Disclaimer
Disclaimer This presentation dated 18 August 2025 provides additional While all reasonable care has been taken in relation to the commentary on the financial results for the 12 months ended preparation of this presentation, none of the Company, its For personal use only 30 June 2025 of The a2 Milk C
Slide 3: Agenda
Agenda For personal use only FY25 Results summary 4 Supply Chain transformation update 33 FY26 outlook and capital management 54 Appendix 59
Slide 4: Strong FY25 operating and financial performance
Strong FY25 operating and financial performance For personal use only Delivered record sales of $1.9 billion with double-digit growth in revenue, EBITDA 1 and EPS driven by execution of growth strategy Reached top-4 brand position in China IMF market, a major milestone in brand 2 health and market p
Slide 5: Record sales of $1.9 billion in 25th year since a2MC was formed
Record sales of $1.9 billion in 25th year since a2MC was formed Domestic, branded fresh Product and geographic IP Creators China IMF focused growth strategy milk focus expansion For personal use only Historical revenue; $ millions 2022 MVM Acquisition 2025 2023 Top-4 a2 IMF China 2012 2015 2018 entr
Slide 6: Double-digit revenue growth with improved EBITDA margin in FY25
Double-digit revenue growth with improved EBITDA margin in FY25 Group performance (FY25 versus FY24, unless otherwise noted) Key financials Revenue; $ millions For personal use only • Revenue up 13.5% to $1,902.0 million (2H25: up 16.8% versus pcp) 1,902 1,593 1,675 • EBITDA up 17.1% to $274.3 milli
Slide 7: English label IMF, Liquid Milk and Other Nutritionals key growth drivers
English label IMF, Liquid Milk and Other Nutritionals key growth drivers Segment performance Segment and product sales • China & Other Asia segment sales up 13.9%, led by EL IMF CBEC Segment sales; $ millions For personal use only & O2O channel growth (up 24.9%) and Other Nutritionals (up 33.1%) • A
Slide 8: Results supported by key operational achievements
Results supported by key operational achievements • Brand health: Continued growth in China IMF brand health supported by successful marketing campaigns focused on a2 Milk superiority • Infant Milk Formula For personal use only − China label: Achieved record market share despite market decline and t
Slide 9: Continued investment in making planet positive progress
Continued investment in making planet positive progress1 • Developed a detailed emissions reduction roadmap and climate transition plan to track progress against net zero GHG targets to 2040 For personal use only • Reduced Scope 1 emissions by 97% in FY25, led by MVM boiler conversion completed in F
Slide 10: China IMF market conditions stabilising with English label gaining share
China IMF market conditions stabilising with English label gaining share • China IMF market decline improved to -3.2%1 supported by early stage Total China IMF market value vs pcp1 growth (Stages 1 and 2) due to increased newborns during Year of the Dragon (up 5.8%2 in CY24) and increased adoption o
Slide 11: a2MC rises to top-4 brand in total China IMF market
a2MC rises to top-4 brand in total China IMF market Total China IMF market share Value % share by brand1; MAT June 2025 International For personal use only Domestic 2 China label IMF market value share English label IMF market value share Value % share by brand1; MAT June 2025 Value % share by brand
Slide 12: a2MC remains focused on its growth strategy
a2MC remains focused on its growth strategy, with supply chain transformation a key focus For personal use only Purpose We pioneer the future of Dairy for good Vision An A1-free world where Dairy nourishes all people and our planet PEOPLE PLANET CONSUMERS SHAREHOLDERS Create a safe, diverse, inclusi
Slide 13: Tracking well towards medium-term goals reflected in measures of success
Tracking well towards medium-term goals reflected in measures of success For personal use only PEOPLE PLANET CONSUMERS SHAREHOLDERS BRAND HEALTH MARKET SHARE INNOVATION SUPPLY CHAIN 1 2 3 4 5 6 7 Safety GHG emissions China brand MBS share IMF sales from Access to ≥3 Sales ambition of reduction healt
Slide 14: Strong FY25 performance closer to medium-term revenue ambition of $2 billion
Strong FY25 performance has moved the Company closer to its medium-term revenue ambition of $2 billion Medium-term revenue and EBITDA margin ambition Areas of planned revenue growth Commentary For personal use only Revenue, NZ$ billions EBITDA margin EBITDA margin target in the teens • Delivered rec
Slide 15: Financial overview
For personal use only Financial overview
Slide 16: Strong revenue growth with modest improvement in margins
Strong revenue growth with modest improvement in margins $ million1 FY25 FY24 % change • Net sales revenue growth of 13.5% reflects strong EL IMF CBEC and O2O channel performance, liquid milk growth in ANZ and USA, Net Sales Revenue 1,899.3 1,673.3 13.5% continued double-digit Other Nutritionals gro
Slide 17: Double-digit China growth driven by strategic market focus
Double-digit China growth driven by strategic market focus China & Total For personal use only $ million Other Asia ANZ USA MVM1 Corporate Group Revenue 1,302.0 316.0 139.3 144.7 - 1,902.0 FY25 EBITDA 332.4 57.5 (9.3) (15.0) (88.9) 274.32 EBITDA % 25.5% 18.2% nm nm - 14.4% Revenue 1,143.1 317.3 113.
Slide 18: Growth across all product categories well above market
Growth across all product categories well above market Net sales revenue China & Total 1 $ million Other Asia ANZ USA MVM Group For personal use only IMF 1,191.7 80.6 1.6 - 1,273.9 Liquid Milk2 - 209.0 137.3 - 346.3 FY25 Other Nutritionals3 110.3 24.8 - - 135.1 Ingredients - - - 143.9 143.9 TOTAL 1,
Slide 19: Cash conversion remains strong and in line with expectations
Cash conversion remains strong and in line with expectations • Cash flows from operating activities: $201.5 million $ million FY25 FY24 % change For personal use only ‒ Operating cash conversion of 95%1, lower than FY24 (126%) Cash flows from operating activities mainly due to the following one-off
Slide 20: Strong balance sheet with lower inventory levels
Strong balance sheet with lower inventory levels • Cash and term deposits balance and consolidated net $ million FY25 FY24 % change cash position of $1,061.2 million1 with operating cash For personal use only Cash and term deposits 1,100.2 968.9 13.6% conversion at 95%2 Trade and other receivables 9
Slide 21: Regional and product performance
For personal use only Regional and product performance
Slide 22: China label: sustained growth despite market and supply challenges
China label Sustained China label growth despite market and supply challenges Growth driven by strong consumer demand for early stage products China label net sales revenue For personal use only • a2MC CL IMF sales grew by 3.3% to $632.5 million in a declining market $ million2 612 633 and achieved
Slide 23: China label: record high share across MBS and DOL
China label Achieved record high share across MBS (offline) and DOL (online) Signs of stabilisation in a consolidating market China label performance driven by DOL and BCD city expansion For personal use only • China label market decline of 5.6% has improved 50% • Significant share gains in early st
Slide 24: China label: growth in early stages laying foundation
China label Growth in China label early stages laying foundation for future stage performance Positive MBS channel market growth in early stage products Commentary For personal use only Nielsen MBS channel quarterly market value growth by stage1 • China label markets experienced strong growth in ear
Slide 25: China label: new seniors and kids milk powder products
China label New seniors and kids milk powder products showing positive early signs post launch Expanding nutritional range to cater for ageing society Unlocking kids potential beyond IMF For personal use only • Seniors product range introduced before Chinese • Recently launched new CL kids fortified
Slide 26: English label continues to grow with innovation and market expansion
English label English label continues to grow, with innovation and market expansion supporting future potential Stand out performance in English label CBEC (including O2O) English label IMF revenue For personal use only $ million by half1,3 559 • English label revenue growth1 of 17.1% to $639.8 mill
Slide 27: English label IMF momentum continued throughout second half
English label English label IMF momentum continued throughout second half Favourable English label market dynamics Strong a2 English label performance For personal use only • English label market grew by 11.9% in FY25 driven by higher • Offline and online retail POS data and a2MC reported sales volu
Slide 28: Marketing investment focused on driving a2 Genesis talkability
English label Marketing investment focused on driving a2 Genesis talkability Launched a2 Genesis Marketing campaign Performance For personal use only Gross market value of recent EL IMF HMO New product launches in CBEC channel1 a2 Genesis RMB Competitors Online social Offline marketing seeding activ
Slide 29: IMF range launch in Vietnam showing positive early momentum
English label IMF range launch in Vietnam showing positive early momentum Launched a2 Platinum Marketing activations Performance For personal use only and a2 Gentle Gold a2MC sales growth in Vietnam1 • a2 Platinum launched in • Extensive online campaign through • Marketing and in-store activity Sept
Slide 30: ANZ liquid milk sales continue strong momentum
ANZ liquid milk ANZ liquid milk sales continue strong momentum in core and lactose free markets a2MC liquid milk performing well in a challenging market Australia liquid milk net sales revenue For personal use only • Net sales revenue up 9.9% to $209 million, with growth across a2 Milk $ million 209
Slide 31: USA improvement in profitability with IMF approval under FDA review
USA USA improvement in profitability with IMF long term approval currently subject to FDA review Double-digit revenue growth Revenue For personal use only • Revenue increased 22.5% to $139.3 million $ million2 139 • Sales growth driven by continued strength in a2 Milk performance, 114 105 plus incre
Slide 32: MVM higher internal sales and product mix reducing operating losses
Mataura Valley Milk MVM higher internal sales and product mix reducing operating losses Significant uplift in revenue and EBITDA performance Revenue For personal use only • Revenue of $144.7 million, up $43.3 million driven by favourable $ million GDT pricing, increased milk volumes processed and hi
Slide 33: Supply Chain transformation update
For personal use only Supply Chain transformation update
Slide 34: Supply chain transformation update
Supply chain transformation update Transactions a2MC announced the following transactions today as part of its supply chain transformation strategy: announced • Nutritional manufacturing facility acquisition: The acquisition of an integrated nutritional manufacturing facility with two CL IMF product
Slide 35: Clear strategic rationale for combined transactions
Clear strategic rationale for combined transactions 1. Secures greater market access and strategic control High confidence in • Secures greater access to attractive China label (CL) registered IMF market valued at ~$231 billion ability to execute: For personal use only • Provides strategic and opera
Slide 36: Supports delivery of a2MC's growth strategy
Supports delivery of a2MC’s growth strategy The transactions transform a2MC’s supply chain, address MVM profitability and enable the Company to ramp up CL product innovation and capture the full potential of its China IMF opportunity Transaction positive impact For personal use only Purpose We pione
Slide 37: Transactions deliver attractive financial returns
Transactions deliver attractive financial returns Three key drivers of financial benefit Generating attractive financial returns For personal use only 1. Vertical manufacturing margin capture (refer page 51) EBITDA benefits • a2MC will capture vertical profit margins on IMF production • FY26 negativ
Slide 38: a2MC Pokeno manufacturing facility acquisition
For personal use only a2MC Pokeno manufacturing facility acquisition
Slide 39: a2MC Pokeno facility acquisition
a2MC Pokeno facility acquisition Overview • a2MC has entered into an agreement to acquire 100% of the shares in YNZ, the owner of an integrated nutritional manufacturing facility located in Pokeno, New Zealand, from Yashili International • Purchase price of $282 million on a debt and cash free basis
Slide 40: Pokeno facility is ideally positioned to meet a2MC's needs
Pokeno facility is ideally positioned to meet a2MC’s needs a2MC Pokeno manufacturing facility Site highlights For personal use only New a2MC facility Port of Tauranga • Location: Pokeno is located in the highly Pokeno, NZ • NZ’s largest productive and fertile Waikato region, in New container port Ze
Slide 41: Unlocks growth opportunities in segments where a2MC under indexes
Unlocks growth opportunities in segments where a2MC under indexes China IMF market vs a2MC business mix Commentary For personal use only a2MC value • The a2MC Pokeno acquisition secures opportunity for greater a2MC value share: 5.5% share: 19.2% market access to the ~$23 billion2 CL IMF registered m
Slide 42: Portfolio expansion will enable a2MC to compete more effectively
Portfolio expansion will enable a2MC to compete more effectively Total China IMF brand ranking1 #2 #4 #7 #9 For personal use only #1 #3 #5 #6 #8 #10 Feihe Aptamil Yili a2MC Friso Nestle Junlebao Wyeth Mead Johnson Biostime Number of CL registered products Estimated % of CL sales from top 3 ranges2 O
Slide 43: Targeting an expanded IMF product portfolio over time
Targeting an expanded IMF product portfolio over time CONCEPTUAL a2MC IMF portfolio segmentation For personal use only Ultra Premium Super Premium Potential to 2 existing registrations at a2MC Pokeno and Premium access 2nd potential to access 3rd registration registration subject to regulatory appro
Slide 44: a2MC will seek approval to use existing CL IMF products and 3rd slot
a2MC will seek approval to use existing CL IMF products and 3rd slot Two existing China label registrations Current unregistered 3rd slot For personal use only • a2MC to change milk base to A1 protein free and apply for regulatory approval to amend 2 • Targeting registration in medium term existing
Slide 45: Indicative product transition, development and launch timeline
Indicative product transition, development and launch timeline High level transition plan subject to regulatory approvals – timing reflects expected financial year of occurrence For personal use only FY25 FY26 FY27 FY28 FY29/30 a2 Genesis NPD Launch Continued sales (potential upgrade during period)
Slide 46: Significant investment planned to increase capacity and enhance capability
Significant investment planned to increase capacity and enhance capability A multi-year ~$100 million capital investment programme is planned to increase capacity, enhance capability and address potential future regulatory changes to align more closely to China domestic regulatory requirements For p
Slide 47: Supported by long term milk supply arrangements with Fonterra
Supported by long term milk supply arrangements with Fonterra Overview of milk supply agreement For personal use only • a2MC and Fonterra have entered into a long-term agreement for A1 protein free raw milk supply from the North Island in New Zealand, conditional on completion of the a2MC Pokeno tra
Slide 48: Mataura Valley Milk divestment
For personal use only Mataura Valley Milk divestment
Slide 49: MVM divestment transaction summary
MVM divestment transaction summary For personal use only • As part of a2MC’s supply transformation, the Company has also announced the divestment of MVM in order to optimise its asset footprint, capacity utilisation and financial performance • The divestment will see all of a2MC’s and CAHG’s ownersh
Slide 50: Financial benefits
For personal use only Financial benefits
Slide 51: Significant vertical margin capture driven by IMF production volumes
Significant vertical margin capture driven by IMF production volumes Vertical margin capture Indicative IMF production timeline • a2MC to capture vertical manufacturing profit margins on For personal use only Product FY26 FY27 FY28 FY29/30 IMF production a2 Genesis • The amount of margin capture dep
Slide 52: Meaningful China label IMF brand contribution
Meaningful China label IMF brand contribution Increased China label portfolio brand contribution Indicative China label IMF in market timeline For personal use only • Acquisition provides up to 3 new China label products, expanding Product FY26 FY27 FY28 FY29/30 a2MC’s reach to a wider consumer base
Slide 53: MVM losses avoided on divestment
MVM losses avoided on divestment 1H25 proforma financials excluding MVM (unaudited) FY25 proforma financials excluding MVM (unaudited) For personal use only 1H25 FY25 1H25 Less FY25 Less $ million Continuing $ million Continuing Reported MVM Reported MVM Operations Operations Net Sales Revenue 892.8
Slide 54: FY26 outlook and capital management
For personal use only FY26 outlook and capital management
Slide 55: FY26 outlook
FY26 outlook a2MC will continue executing its growth strategy in FY26, with an emphasis on capturing its full potential in the China market whilst expanding into adjacent categories and new markets. With respect to the transactions announced today, the Company will be mainly focused on securing regu
Slide 56: Breakdown of FY26 continuing operations outlook
Breakdown of FY26 continuing operations outlook The following sets out the Company’s FY26 outlook in more detail to illustrate the impact of the MVM’s reclassification to discontinued operations on FY25 proforma results, and the impact of the a2MC Pokeno acquisition on the Company’s FY26 continuing
Slide 57: Transactions enable intent to declare a $300 million special dividend
Transactions enable intent to declare a $300 million special dividend Special dividend For personal use only • The combined transactions announced today help to clarify the Company’s future capital needs Capital allocation framework • As a result, the Board intends to declare a $300 million special
Slide 58: Questions
For personal use only Questions
Slide 59: Appendix
For personal use only Appendix
Slide 60: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures $ million FY25 FY24 For personal use only Australia & New Zealand segment EBITDA 57.5 63.0 China & Other Asia segment EBITDA 332.4 290.1 USA segment EBITDA (9.3) (15.5) MVM segment EBITDA (15.0) (20.5) Eliminations EBITDA (2.3) (0.5) Corporate EBITDA (88.9) (82.4)
Slide 61: a2MC glossary of terms
a2MC glossary of terms Acronym Meaning Acronym Meaning Acronym Meaning A1PF A1 protein free FX Foreign exchange NZ New Zealand For personal use only a2MC The a2 Milk Company Limited FY Financial year OIO New Zealand Overseas Investment Office ANZ Australia and New Zealand GAAP Generally accepted acc
Slide 62: www.thea2milkcompany.com
For personal use only www.thea2milkcompany.com