FY21 Results and Annual Report

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer The a2 Milk Company Limited
Reporting Period 12 months to 30 June 2021
Previous Reporting Period 12 months to 30 June 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,206,734 (30.3%)
Total Revenue $1,206,734 (30.3%)
Net profit/(loss) from
continuing operations
$80,658 (79.2%)
Total net profit/(loss) $80,658 (79.1%)
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the year
ended 30 June 2021
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date No applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.37 $1.48
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
Annual Report for the year ended 30 June 2021
Full Year Results Commentary
Full Year Results Presentation

Authority for this announcement
Name of person

authorised
to make this announcement
Jaron McVicar
Contact person for this
announcement
Jaron McVicar
Contact phone number +61 2 9697 7000
Contact email address Jaron.McVicar@a2milk.com
Date of release through MAP

26/08/2021

Audited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M

The a2 Milk Company Limited
www.thea2milkcompany.com

26 August 2021
NZX/ASX Market Release
Challenging year impacted by COVID-19
Channel inventory dynamics improving and growth strategy review underway

The a2 Milk Company experienced a very challenging year in FY21 impacted by unprecedented levels of uncertainty and
volatility due to the prolonged impact of COVID-19 and a rapidly changing China infant nutrition market. Over the past year
China market growth has reduced significantly from globally high rates to be flat, and cross-border trade has been disrupted
significantly which has had a profound impact on the Company’s results.
While certain areas of the business performed well, with market share gains in China label infant nutrition and Australian fresh
milk, the Company was impacted by a significant decline in cross-border English label infant nutrition and other nutritional
sales through daigou/reseller and e-commerce channels. This created substantial demand and supply volatility, which caused
material excess inventory issues that exacerbated the impact.
In response to the dramatic change in circumstances, the Company took significant action, particularly from 4Q21, to address
excess inventory issues, rebuild the management team, increase brand investment to drive demand, commence a review of its
growth strategy and review options to deploy available capital. These actions have put the Company in a far better position
now than it would have been otherwise to navigate the challenges ahead and enable it to return to growth in the medium-
term.
The Board and management are confident in the underlying fundamentals of the business and that the growth opportunity in
core markets remains strong. Coupled with opportunities for product innovation, category expansion and new markets, and
supported by a healthy brand and strong balance sheet, the long-term outlook is positive. However, the outlook for FY22
remains challenging and uncertain and it will take time to recover.
Key points in relation to the Company’s full year results are summarised below with more detailed analysis and commentary
following in the release.
Key points
1

• Revenue and EBITDA
2
margin was within the guidance range provided in May
- Revenue down 30.3% to $1.21 billion
- Earnings before interest tax depreciation and amortisation (EBITDA) down 77.6% to $123 million inclusive of $109
million in stock write-downs and $10 million in Mataura Valley Milk (MVM) acquisition costs
- EBITDA to sales margin of 10.2% or 11.1% excluding MVM acquisition costs
• Net profit after tax down 79.1% to $80.7 million (including discontinued operations)
• Actions taken from 4Q21 to address excess inventory are proving effective with channel inventory levels reducing,
product freshness improving and market pricing increasing – rebalancing of channel inventory is expected to continue
through 1Q22
• Executive Leadership Team appointments and Asia Pacific division reorganisation to build capability and provide more
dedicated management focus completed
• Brand health metrics remain strong overall with some improvements in recent tracking research following a significant
4Q21 marketing campaign in China
• MVM acquisition and strategic partnership with China Animal Husbandry Group completed in July

1
All figures are in New Zealand Dollars (NZ$) and based on continuing operations of the Group, unless otherwise stated.
2
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure. However, the Company believes that it assists in providing
investors with a comprehensive understanding of the underlying performance of the business. A reconciliation of EBITDA to net profit after tax is shown at
the end of this document.

2
• Growth strategy review underway to respond to rapidly changing China market dynamics – update to be provided at the
investor strategy day in October
• The Board has carefully considered capital management initiatives and has decided not to return capital to shareholders
at this point in time, preferring instead to preserve balance sheet strength having regard to market volatility and
potential opportunities to reinvest in growth and supply chain
Group financial performance
3,4,5

The a2 Milk Company experienced a challenging year with revenue for the Group declining 30.3% to $1.21 billion which was
within the guidance range provided in May. As stated in the Company’s announcement on 10 May 2021, a2MC’s performance
was impacted by unprecedented levels of uncertainty and volatility due to COVID-19, challenges experienced in the English
label infant nutrition channels, and the actions then required in the second half to rebalance channel inventory.
Gross margin percentage
6
decreased to 42.3%. This was significantly lower than the prior year primarily due to recognising
stock write-downs of $108.6 million. Gross margin was also impacted by higher cost of goods sold driven by an increase in raw
milk prices, lower volumes and adverse mix driven by a higher proportion of liquid milk to infant nutrition sales and a relative
increase in China label sales as a proportion of overall infant nutrition sales. Foreign currency movements also negatively
impacted gross margin, particularly in 2H21. Excluding the stock write-downs, the full year gross margin was 51.3%.
EBITDA decreased by 77.6% during the period to $123.4 million ($133.8 million excluding MVM acquisition costs). This
reflected lower revenue and gross margins, one-off costs of $9.7 million associated with the implementation of a new cloud-
based enterprise resource planning (ERP) system, and $10.4 million of MVM acquisition costs. This was partially offset by lower
employee incentive payments, lower consulting costs and a reduction in discretionary costs, whilst continuing to invest in
brand marketing and internal capability building.
This resulted in an EBITDA to sales margin of 10.2%. Excluding MVM acquisition costs, EBITDA to sales margin was within the
guidance range provided in May at 11.1%.
The effective tax rate of 32.4% was marginally higher than the prior year due to the proportional increase in USA losses (which
are not tax effected) to the overall Group profit and the MVM acquisition costs being non-deductible for tax purposes, partly
offset by a prior period adjustment. Net profit after tax was $80.7 million, a decrease of 79.1% on the prior year including
discontinued operations.
The balance sheet remains in a strong position with closing net cash of $875.2 million. Operating cash flow of $89.4 million
was significantly lower than the prior year primarily due to lower earnings combined with a marginal reduction in net working
capital. The Company also invested in the Kyvalley Dairy Group (Kyvalley) acquisition and lease-back, the Synlait capital raising
and the ERP implementation. Post year end, the Company completed the acquisition of MVM for $268.5 million.
Inventory at the end of the period was $112.2 million, reflecting the impact of the $108.6 million stock write-down which
includes associated disposal costs. As stated in the Company’s announcement on 10 May 2021, this write-down was a result of
the Board-initiated inventory review undertaken by management in 2H21, which indicated that the level of channel inventory
was higher than anticipated. The elevated inventory was a consequence of managing the uncertainties and complexities of
COVID-19 impacting supply chains, compounded by lower sales, particularly in English label infant nutrition. Actions were
taken in 4Q21 to address excess inventory which included a reduction in planned sell-in across the daigou/reseller, CBEC and
China label channels, as well as working with customers and distributors to improve the dating of inventory to improve
freshness across all labels and channels. These actions are proving to be effective with early signs of price stabilisation in the
CBEC channel and some recovery in the daigou/reseller channel. Channel inventory in CBEC and daigou/reseller channels are
now at target levels, with China label expected to reach target levels by the end of 1Q22.

China infant nutrition market dynamics
As noted in the Company’s announcement on 10 May 2021, the China infant nutrition market structure is changing rapidly. In
volume terms, the overall infant nutrition market in China decreased
7
in FY21 in volume driven by a significant reduction in the
birth rate impacting early-stage products, partially offset by increased product penetration.
Although market performance varied by channel and segment, overall, value growth was flat
8
as the impact of premiumisation
(driven primarily through consumers trading-up and new product innovation) was partially offset by increased promotional
activity resulting from heightened competitive intensity. Local players continue to gain share against the traditional
multinational brands, driven both by the strength of local brands in domestic channels, as well as an overall mix shift from
cross-border to domestic channels.

3
All figures are in New Zealand Dollars (NZ$) unless otherwise stated.
4
All comparisons are with the 12 months ended 30 June 2020 (FY20), unless otherwise stated.
5
All figures are quoted based on continuing operations of the Group, unless otherwise stated.
6
Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.
7
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities) for the 52 weeks ending 18 June 2021.
8
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities) for the 52 weeks ending 18 June 2021.

3
The increasingly competitive environment compounded by macro factors and evolving market dynamics reiterates the
importance of the Company’s current growth strategy review.

Regional performance
1. China & Other Asia
China & Other Asia revenue of $583.4 million was down 16.6%, with EBITDA of $75.6 million, down 66.4%. Lower revenue was
primarily due to challenges experienced in the CBEC channel and a rebalancing of inventory with distributors.
The reduction in EBITDA margin was due to the higher proportion of China label sales relative to CBEC sales with the former
being a higher cost to serve channel, resulting in a lower gross margin. It also reflected the continued investment in brand and
capability. The proportion of the inventory write-down allocated to the China & Other Asia segment was $50.3 million.
Despite the disruption and challenges experienced during the year, the Company continued to record strong brand health
metrics in China overall – China label metrics improved consistently while English label metrics weakened somewhat but
improved partially in 4Q21 following the marketing campaign and other initiatives.
Infant nutrition – China label channels
Sales in a2 至初® China label infant nutrition of $389.9 million were achieved, an increase of 15.4% which was an encouraging
result in a challenging market. The growth rate relative to FY20 was reflective of the substantial uplift in the prior period due to
COVID-19 related pantry stocking, a reduction in the birth rate, and the increasing competition from domestic brands. Foreign
currency movements (stronger NZD relative to USD/RMB) also created headwinds, particularly in 2H21. The 2H21 decrease in
sales of 7.4% was also impacted by the actions taken in 4Q21 to reduce channel inventory.
As measured by Nielsen, retail sales for mother and baby stores (ie sales from stores to consumers by value) for the overall
market were up 9% for the year and up 13% for 2H21
9
. a2MC’s 12-month rolling market value share in MBS was 2.5% at the
end of June 2021, versus 2.4% at the end of December 2020 and 2.0% at the end of June 2020
8
. Distribution increased to 22.8k
stores, from 21.8k at the end of December 2020 and 18.2k stores at the end of June 2020
10
. Importantly, a2 至初® was one of
a few international brands that gained share in the year, providing a solid base to build on in the future.
As measured by Smart Path, retail sales for domestic online (“DOL”) platforms (by value) for the overall market were up 19%
for the year and up 11% for 2H21
11
. The Company’s 12-month rolling market value share in DOL was 2.0% at the end of June
2021, versus 2.0% at the end of December 2020 and 1.9% at the end of June 2020
10
.
Channel inventory was slightly higher than target levels at the end of the period and will be further reduced in 1Q22 by careful
on-going stock management. The actions taken to replace distributor inventory with fresher stock is well progressed with the
impact in store starting to be seen. It is expected that inventory freshness will improve significantly in FY22 compared to FY21.
The Company continued to invest behind the brand to drive consumer demand. For FY21, this was weighted to the second half,
including a significant marketing campaign in China in 4Q21.
The strategic importance and size of the channel, and the strong resonance the brand has with consumers, means the mother
and baby store channel remains the Company’s biggest opportunity to gain market share. A key element of the growth
strategy review is focussing on maximising this opportunity as well as gaining share in domestic online channels.
Infant nutrition – Cross-border e-commerce (CBEC)
a2 Platinum® English and other label infant nutrition revenue of $166.9 million was down 51.1%. First half sales were impacted
by pantry destocking from 2H20. In the second half, sales of $63.4 million were down 64.9% on 2H20 primarily as a result of
cycling a high comparative period and as a result of the actions taken in 2H21 to rebalance inventory within the channel.
Foreign currency movements also created headwinds for CBEC sales, which are denominated in US dollars. The second half
result also reflected limited price discounting during the “618” sales promotion event and no sales of Hong Kong label, which
has ceased due to COVID-19 restrictions.
As measured by Smart Path, retail sales (by value) for the overall CBEC market were up 3% for the year and down 5% for
2H21
12
. The Company’s 12-month rolling market value share in CBEC was marginally down at 21.1% at the end of June, versus
22.2% at the end of December 2020 and 21.7% at the end of June 2020
11
. This performance reflected actions taken in 2H21 as
referenced above, as well as a significant amount of cross selling and reselling from the daigou/reseller and retail channels.
These dynamics may continue to put pressure on a2MC’s short-term CBEC market share, as measured by Smart Path.

9
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY21 versus FY20 and 2H21 versus 2H20.
10
a2MC internal data tracking of stores with active sales in the past 6 months. Restated store numbers for December 2020 and June 2020 reflecting enhanced
data capture and updated internal tracking methodology.
11
Smart Path China IMF online market tracking: domestic online platform sales (by value). FY21 versus FY20 and 2H21 versus 2H20.
12
Smart Path China IMF online market tracking: for CBEC only retail sales (by value). FY21 versus FY20 and 2H21 versus 2H20. (Prior periods restated for
updated data.)

4



2. ANZ
Revenue in the ANZ segment was impacted by the infant and other nutrition challenges experienced in the daigou/reseller and
retail channels but was partly offset by strong performance in liquid milk in Australia. ANZ segment revenue of $559.7 million
was down 42.0%, with EBITDA of $148.8 million, down 68.0%. ANZ segment revenue of $242.5 million for 2H21 was down
52.0%, with EBITDA of $31.4 million for 2H21, down 86.8% primarily due to the actions taken in 4Q21 to rebalance the
daigou/reseller channel partly offset by growth in Australian fresh milk.
Infant nutrition – daigou/resellers and retail
Infant nutrition revenue in ANZ decreased by 52.1% to $357.0 million for the year. This significant decrease was due mainly to
prolonged impacts emanating from COVID-19 volatility.
In July and August 2020, the business was impacted by the unwinding of pantry loading that had occurred in early 2020 due to
COVID-19, initially impacting retail daigou sales. At the end of September, it was evident that daigou/reseller customers were
also being impacted by COVID-19 related restrictions. Measures were taken to address the prevailing situation and there were
initial signs of improvement. However, there was further impact to CBEC sales later in 2Q21 which had a flow on impact on
demand, reflecting the interrelationship between the daigou/reseller and CBEC channels. Actions taken in 3Q21 and in April to
address the challenges in the daigou/reseller and CBEC channels had limited impact. Following a Board-initiated
comprehensive review by management of inventory in the trade in 2H21, it was clear that the level of channel inventory was
higher than had been anticipated and there were difficulties with channel inventory visibility and demand and supply planning.
A number of initiatives were put in place to address this decline in performance and, importantly to put the business on a
firmer footing. These included:
• Incurring a significant stock write-down to reduce excess and ageing inventory
• Swapping out older distributor inventory with more recent stock to improve on-shelf product freshness
• Reducing channel inventory levels by restricting sales in 4Q21 to stabilise pricing and improve inventory flow
• Increasing wholesale prices to rebalance pricing across channels and mitigate margin loss due to higher cost of goods
sold pressures
The initial results of these actions have been encouraging with product freshness and market pricing starting to improve.
English label product freshness is expected to improve significantly in FY22 compared with FY21. Although market pricing is
improving, CY21 English label inventory remaining in the market and being sold by certain wholesale traders and online players
is depressing visible pricing in the market. The amount of this inventory remaining in the market is difficult to quantify, but it is
expected that it will have largely cleared by the end of the “11/11” peak trading period.
Notwithstanding these actions, the Company estimates it lost market share in the daigou channel during the year, particularly
in Stage 1 infant nutrition. Kantar data has recently been expanded and a more representative consumer age range now being
captured
13
. Whilst there are still some inherent limitations for measuring the Company’s performance using Kantar data, it
remains the only single source for tracking daigou consumer sales. Kantar data suggests daigou consumer sales in the market
were down 42% for FY21 and down 35% for 2H21
14
and that a2MC’s daigou share declined but less dramatically to 22% at the
end of June 2021 compared to 24% at the end of June 2020
12
.
Given the role of the daigou/reseller channel, including in new user recruitment in an increasingly competitive market, some
continued pressure on consumer demand is expected. A key focus is working with distribution partners to increase distribution
and new user activation, as well as optimising CBEC execution. In addition, a key element of the Company’s growth strategy
review is considering the route-to-market and management model of English label infant nutrition.
Liquid milk
Australian fresh milk revenue increased by 10.8% to $169.0 million. The business also achieved a record market value share of
12.2% at the end of June 2021
15
, primarily driven by increased levels of in-home consumption during 1H21 lockdowns
associated with COVID-19. Growth moderated in 2H21 to 5.5% as restrictions eased and a greater amount of out-of-home
consumption was experienced prior to recent lockdowns in Australia. During the year the Company acquired the
manufacturing facilities of Kyvalley. The purchase and upgrade of Kyvalley is a strategic investment to ensure quality of
products and processing capacity.
Other nutritional products

13
Kantar data based on a panel of 9,000 consumers covering 0-6 year olds and only seeks to project ~40% of the population.
14
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities) for the 52 weeks ending 18 June 2021.
15
IRI Australian Grocery Weighted Scan 12-months ending 30 June 2021.

5
The disruption experienced in the daigou/reseller channel also impacted all products in this segment with revenue decreasing
50.5% to $33.7 million. As with infant nutrition products, the Company is examining the product and channel approach as part
of the growth strategy review to drive demand and ensure other opportunities are explored to maximise the full potential of
the segment.
3. North America

USA revenue decreased 3.7% to $63.6 million. An improved EBITDA result was delivered, with a significantly reduced loss of
$33.5 million, representing a $17.0 million improvement on FY20. USA segment revenue of $29.4 million for 2H21 was down
22.8%, with an EBITDA loss of $21.9 million for 2H21 representing a $1.4 million improvement compared to 2H20.
FY21 represented a shift in execution approach for the USA business with lower marketing investment and increased price
investment to improve conversion and household penetration. The business leveraged trade investment to bring price to an
affordable premium as well as increasing range, facings and improving overall shelf positioning. This resulted in a significant
percentage of key accounts increasing product facings and improving shelf position which is expected to benefit the business
over time.
The decline in FY21 revenue reflects higher planned trade spend in line with the businesses revised pricing strategy, the loss of
certain regions of a major club channel customer, and unfavourable foreign exchange, with each of these factors more heavily
weighted to 2H21. Additionally, the US business benefited from a lift in in-home consumption related to COVID-19 lockdowns
during 2H20, presenting a more challenging 2H21 comparative. On a constant currency basis, net revenue increased 5.5% to
$69.7 million during the year. Underlying volume growth for the year was 13%, or 26% excluding the major club channel
customer. The improved EBITDA loss in FY21 reflected a substantial reduction in marketing investment associated with the
above noted shift in execution, along with the positive benefits of currency exchange on business expenditure.
Average velocities grew within key accounts and distribution grew to 26.8k stores, from 24.0k stores at the end of June 2020
16
.
In 2H21
17
, a2 Milk™ grew ahead of the premium liquid milk category and was the strongest performing premium brand over
the period.
While marketing investment in FY21 was lower than the prior year, key marketing and public relations activities continued
which resulted in driving improvements in brand health metrics, with prompted awareness demonstrating a significant
increase. Additionally, the a2 Milk™ brand was one of the top two leading brands in the category for brand loyalty.
The USA is an important market, and the Company continues to evaluate product, distribution and supply chain opportunities
to increase the scale and profitability of the business.
In Canada, products were first launched in July 2020, initially focusing on Western Canada with subsequent distribution
expansion. The Company continues to work closely with Agrifoods, leveraging the Company’s intellectual property and
marketing assets as well as proprietary systems and know-how relating to local milk sourcing and processing.

Completion of acquisition of Mataura Valley Milk
On 30 July 2021, the Company completed the acquisition of a 75% interest in Mataura Valley Milk (MVM), a dairy nutrition
business located in Southland, New Zealand, in partnership with China Animal Husbandry Group.
The strategic intent of the acquisition remains intact. The acquisition provides the opportunity to participate in nutritional
products manufacturing and the potential to pursue additional China label registrations and product innovation opportunities
in the future. It strengthens relationships with key strategic partners in China, achieves supplier and geographic diversification,
and over time will offer access to insourced manufacturing margins.
It had previously been expected that post acquisition, MVM would process additional third-party volumes which is now
uncertain in terms of execution and timing. In addition, a2MC has now revised down its volume assumptions for product to be
transferred to MVM during the transitional period (FY22-24). Consequently, MVM is exploring further business development
opportunities and will seek to work with additional third parties to improve the financial performance of MVM during the
transitional period. The Company still expects MVM will return a positive EBITDA during FY25. Additional financial details for
FY22 are provided in the outlook section.


16
Updated prior year comparison due to expanded data set now being supplied.
17
Based on data available to 15 May 2021.

6
Growth strategy review
Whilst the actions taken have undoubtedly given the business a stronger platform going forward, the dynamic and challenging
market conditions over the past year have highlighted the need to review and adapt elements of the Company’s long-term
strategy and execution going forward.
The Company recognises that the China infant nutrition market structure is changing rapidly. While consumers still have a
strong preference for premium infant nutrition, market growth is being impacted by a more pronounced reduction in the birth
rate. In addition, the shift towards China label infant nutrition continues, the rate of new product innovation has ramped up,
channels to market are changing and competitive intensity is increasing, with domestic players continuing to gain market
share.
It is also clear that the daigou/reseller channel has been impacted by COVID-19, regulatory and other structural factors. Whilst
the daigou/reseller channel will continue to play an important role, the Company needs to further evolve its routes to market
and brand marketing programmes in parallel in order to adjust to the changing environment in which it operates.
Accordingly, the Company recognises the need to change its approach in light of the significant market changes and a
comprehensive process to review its growth strategy is underway. The scope of this review includes the Company’s approach
to driving infant nutrition growth in both China label and English label channels; its infant nutrition product portfolio and
innovation strategy; adjacent growth opportunities; and its brand positioning to ensure continued resonance and
distinctiveness amongst an evolving consumer base.
An update on this review will be provided at an investor strategy day currently scheduled for late October.

Capital management
The Company’s balance sheet remains strong. Despite the current challenges being faced, the Board is confident in the
strength of the brand, the underlying fundamentals of the business, and the Company’s long-term growth potential.
Capital planning is an ongoing activity of the Board, guided by the Company’s strategy and capital allocation framework. This
framework prioritises investment in growth initiatives ahead of returning capital to shareholders.
The current capital planning process is considering how to maximise the value of the Company’s strong capital position in line
with its growth strategy. This includes further investment to strengthen the business as well as potential acquisitions to
complement existing operations. The Board also considers it prudent to maintain a conservative cash reserve in uncertain
times. This is particularly relevant in the context of volatile consumer markets, which continue to be impacted by COVID-19.
Several mechanisms are available to the Company when considering the return of excess capital to shareholders. The
effectiveness of these options is impacted by the Group’s ownership structure and taxation profile, which are relevant factors
when considering how best to utilise the Group’s capital. For any potential on-market share buyback, consideration would
need to be given to the Company’s available subscribed capital, which at end of FY21 was in the order of NZ$175 million.
Notwithstanding the above considerations, the Board is currently of the view that there is greater opportunity to create value
by investing in the business and through potential acquisition than by returning capital to shareholders either via a buyback or
by introducing a dividend at this stage in the Company’s development. Capital management options will continue to be an
important consideration in the broader capital planning process and will continue to be reviewed by the Board on an ongoing
basis.

7
Significant progress in sustainability
In FY20, the Company identified a number of focus areas to enhance its efforts to become a more sustainable business for the
future. In FY21, significant progress was made in several focus areas including enhancing its approach to animal welfare and its
farm environmental plans; continuing to invest, engage and support local communities; as well as advancing several initiatives
under its people strategy, responsible sourcing and ethical supply chain.
The Company is committed to investing in tangible climate-related programmes that will create a positive impact on the
planet. In FY21 funding was redeployed to advance and support critical research and projects in the supply chain as follows:
• Progressed a research project to assess the potential of asparagopsis in reducing methane produced by A2/A2 cows
• Contributed to Synlait’s conversion of its current coal boiler to biomass fuel
• Committed to converting or replacing MVM’s coal boiler in the future
• Installed solar panels at the Smeaton Grange milk processing plant and commenced an energy audit of the site
Further information on the Company’s sustainability goals and strategy will be provided at the upcoming investor strategy day
in late October.

Executive leadership team and reorganisation
In July 2021 the Company announced it would reorganise its Asia Pacific division. The objectives of this reorganisation are to
provide greater leadership and focus on key components of the business, enable holistic management of the English label
business, and improve execution going forward.
This reorganisation resulted in two of the Company’s existing leaders, Xiao Li, Chief Executive – Greater China, and Kevin Bush,
Executive General Manager – ANZ, being promoted to be direct reports to the CEO, demonstrating the depth of talent within
the Company, and are both now on the Executive Leadership Team.
Yohan Senaratne was appointed Executive General Manager – International and commenced with the Company in July. Yohan
is responsible for leading the Company’s cross-border export business, primarily focused on English label infant nutrition
products.
The Company also recently appointed Edith Bailey as its new Chief Marketing Officer. Edith will be responsible for managing
the strategic and creative direction of the a2™ brand and driving product innovation going forward. Edith will commence in
December 2021.
Amanda Hart was also recently appointed as Chief People & Culture Officer in July and will commence her role in September
2021. Amanda will be responsible for driving the people strategy and executing integrated programmes to develop internal
capability and evolve the Company’s culture.
Following the completion of the MVM acquisition, Bernard May has joined a2MC’s Executive Leadership Team as Chief
Executive Officer – MVM.
During the year Eleanor Khor was promoted to the role of Chief Strategy Officer, and Jaron McVicar’s role was expanded to
Chief Legal & Sustainability Officer and Company Secretary.

8
Outlook
The Company is confident in the underlying fundamentals of the business and that the growth opportunity in core markets
remains significant. Coupled with opportunities for product innovation, category expansion and new markets, and supported
by a healthy brand and strong balance sheet, the long-term outlook is positive.
However, given the continuing uncertainty and volatility in a2MC’s consumer markets resulting from issues related to COVID-
19 and other rapidly changing market dynamics, particularly in China, the Company has determined not to provide specific
guidance regarding anticipated Group revenue or EBITDA margin at this time. Rather, it is providing current observations on
key drivers and important issues that may impact its FY22 results.
These observations are based on what the Company is currently aware of, and facts and circumstances may change materially
in the future. Accordingly, actual results may vary materially from that indicated by the qualitative outlook provided below.
The outlook also assumes no material changes in macro factors such as cross border trade, changes in the regulatory
environment and foreign exchange, and that COVID-19 related impacts continue at broadly current levels.
China infant nutrition market
China’s infant nutrition market is being materially impacted by a lower birth rate, especially recently due to COVID-19 and
related vaccination programmes causing many people to delay pregnancy. While it is expected that this short-term impact will
be cyclical in nature, at this stage it is not possible to accurately predict the extent or timing of the impact or recovery over the
medium-term. In the longer-term, it is expected that Government initiatives to address the declining birth rate will have a
positive and stabilising impact. The prospect of other potential regulatory impacts on the category, whether they be positive or
negative in nature, is unknown and inherently difficult to predict.
In FY22, the Company expects the value of the overall infant nutrition market to decrease due to the lower number of births
(during the year, and also as a result of the year prior), an increase in competitive intensity and promotional activity impacting
average pricing, partially offset by a continuation of the usage penetration and premiumisation trend.
Based on current market trends, the ultra-premium segment (where the Company’s China label product competes) is expected
to perform at or above market, and the premium segment is expected to perform at or below market.
The impact of these market dynamics is expected to be felt most in early-stage products, and in Key and A cities where the
birth rate reduction is higher than in BCD cities. Market share gains by domestic brands compared to international brands are
expected to continue.
Category and business divisions
In China label infant nutrition, the Company is expecting to grow sales in FY22, as well as gain moderate share, albeit in a
weaker market overall. The focus is on acquiring new users and expanding distribution. Inventory levels are reducing, and
product freshness is improving. In 1Q22, the Company is continuing to reduce distributor inventory levels which will impact
sales. This is expected to result in a stronger 2H22 compared to 1H22.
In English label infant nutrition, with the category under pressure and the challenges experienced by a2MC in FY21, the
Company is targeting sales stabilisation in FY22 but a wide range of outcomes is possible. The COVID-19 impacts on the
daigou/reseller channel and associated impact on CBEC for English label products are expected to be prolonged. The Company
is adapting its strategy and execution to stabilise its English label business and return to growth over time.
Further incremental sales growth is expected in Australian liquid milk in FY22. In 1H22, the current COVID-19 restrictions in
Australia are likely to support volumes. However, these restrictions are expected to ease in 2H22, with potential volume
declines as more out-of-home consumption resumes. Input costs are also higher compared to FY21 partially offset by pricing.
Strong underlying growth in key accounts is expected in USA liquid milk in FY22. In-home consumption is expected to remain
at similar levels. However, with the loss of certain regions of a major club channel customer due to private label substitution,
modest sales growth overall is expected. The higher trade spend in FY21 to reduce retail price points and improve distribution
will be rolled back during the year in line with plan with some volume risk. Overall, a marginal improvement in USD losses is
expected.
FY22 will be the first time MVM is included in a2MC’s financial reporting. As such, the following information regarding MVM is
provided to assist the market with revenue and earnings expectations. Based on revised volume assumptions, it is now
expected that in FY22 MVM will deliver approximately $80 million in revenue (excluding intercompany revenue) and an EBITDA
loss of approximately $20 million for the 11 months post-completion. On an annualised basis the EBITDA loss would be
approximately $4 million greater due to July being a seasonally low period. Prior to any further investment in a blending and
canning facility and associated infrastructure, it is expected that depreciation and amortisation during the transitional period
will be approximately $14 million, subject to finalisation of acquisition accounting. MVM will be fully consolidated into a2MCs
accounts going forward on a 100% basis with the non-controlling interest deducted from the Group’s net profit after tax. The

9
consolidation of MVM will affect the reported gross margin of the Group. This includes the allocation of direct overheads,
including a portion of manufacturing depreciation, to gross margin.
Marketing and capability investment
Based on the continuing strong brand fundamentals, the Company is planning for a significant increase in brand investment,
content generation and activation in FY22 to drive awareness and trial in China and to compensate for continued subdued
daigou activity which has been effective in the past in building the brand. Overall marketing investment in FY22 is anticipated
to return to approximately FY20 levels which is expected to continue to drive improved brand health metrics and future
demand. Phasing of marketing investment may be influenced by the growth strategy review underway.
The Company will also continue to invest in capability building in China and in corporate functions to support future growth. It
is also expecting a return of short-term and long-term employee incentive programmes in order to retain and attract talent.
These investments will offset the reversal of FY21 one-off costs associated with the MVM acquisition and ERP implementation.
Accordingly, together with the addition of FY22 operating costs for the MVM business, the Company is anticipating an uplift in
employee and administration costs in FY22.
Key financials
The Company is expecting 1H22 revenue (including MVM) to be marginally lower than 1H21 due mainly to lower English label
infant nutrition sales offset by the addition of MVM revenue. 2H22 revenue (including MVM) is expected to be significantly
higher than 2H21 due mainly to actions taken in 2H21 to rebalance channel inventory, increased marketing investment and the
inclusion of MVM revenue.
FY22 gross margin is expected to be broadly similar to FY21 (excluding FY21 stock write-downs and before consolidating the
MVM business in FY22). This reflects the annualisation benefit of FY21 infant nutrition price increases and the product mix
benefit from an overall growth in infant nutrition volume. These benefits will be largely offset by COGS headwinds related to
increasing milk, ingredient and packaging costs. The Company is also expecting continued adverse infant nutrition mix in FY22
with China label growing ahead of English label.
Given the uncertainty and potential volatility in infant nutrition sales, particularly English label, it is difficult to predict with any
precision the wide range of potential EBITDA outcomes in FY22 relative to FY21 excluding stock write-downs.
Additionally, with the inclusion of MVM in FY22, depreciation and amortisation for the Group is expected to increase to
approximately $20 million and, as the MVM losses will not be taken as a deduction for tax purposes, a higher effective tax
rate, in the order of 37-39%, is anticipated.
Overall, although a2MC believes the business will continue to make significant progress on many fronts, FY22 is expected to
continue to be a challenging and volatile year. Due to the actions taken in 4Q21 to address channel inventory and improve
product freshness, coupled with strong brand health, the business is well-placed to adapt its strategy and execution to drive
growth in the longer term. However, recovery in English label channels is expected to be slow and market growth in China will
be subdued for some time.

10
Quotes for media
The a2 Milk Company’s Managing Director and CEO, David Bortolussi said:
• “It was a challenging year for The a2 Milk Company but we remain confident in the long-term opportunity that the
infant nutrition market in China represents.
• “The actions taken from the fourth quarter to address excess inventory are proving effective with channel inventory
levels reducing, product freshness improving and pricing increasing.
• “Our brand health metrics remain strong overall with some improvements in our most recent tracking research
following a significant marketing campaign in China in the fourth quarter.
• “We recognise that the China market and channel structure is changing rapidly and we are undertaking a
comprehensive process to review our growth strategy and executional plans to respond to this new environment.
• “Our acquisition of a 75% interest in Mataura Valley Milk further strengthens our New Zealand presence and our
relationships with China though another important strategic partner in China Animal Husbandry Group.
• “The appointments we have made to bolster our Executive Leadership Team, alongside a reorganisation of our Asia
Pacific division, provide more dedicated management focus going forward.



Reconciliation of EBITDA to net profit after tax



Year Ended Year Ended

30-Jun-21 30-Jun-20

NZ$ 000's NZ$ 000's


Group EBITDA 123,428 549,719
Depreciation and amortisation (7,453) (4,393)
Group EBIT 115,975 545,326
Interest income
3,989
6,135
Interest expense
(699)
(389)
Income tax expense
(38,607)
(165,235)
Net profit after tax 80,658 385,837





Authorised for release by the Board of Directors

David Bortolussi
Managing Director and Chief Executive Officer
The a2 Milk Company Limited

11
For further information, please contact:

Investors / Analysts
David Akers
Group Head of Investor Relations and Sustainability
M +61 412 944 577
david.akers@a2milk.com



Rebecca Culbertson
Senior Analyst Investor Relations
M +61 400 955 295
rebecca.culbertson@a2milk.com
Media
Rick Willis
M +61 411 839 344
rick@networkfour.com.au
Media – New Zealand
Barry Akers
M +64 21 571 234
akers@senescallakers.co.nz

---

THE a2 MILK COMPANY LIMITED
21
20
ANNUAL REPORT
ARBN: 158 331 965

THE a
2 MILK COMPANY ANNUAL REPORT 2021
01
FY21 highlights 2
Our Chair 5
CEO’s year in review 8
Approach to sustainability 19
Corporate governance 38
Directors 40
Executive Leadership Team 42
Governance 44
Remuneration 48
Financial statements 54
Other information 106
CONTENTS

2
Growth has been impacted
but we are in a strong
position for recovery. We are
moving forward, focusing
on long-term goals and
striving to be better.
PRODUCT
S E G M E N T
REVENUE*
$240.5m
Liquid milk 8.3%
$913.8m
Infant nutrition
35.8%
$52.4m
Other nutrition
38.5%
REGIONAL
PERFORMANCE*
ASIA PACIFIC
15.4%
China label
infant nutrition
51.8%
English label
1
infant nutrition
10.8%
Australian milk sales
3.7%
Revenue
22.8k
Store distribution
26.8k
Store distribution
USA
G R O U P
PERFORMANCE*
$1.21bn
Revenue 30.3%
$80.7m
NPAT 79.2%
$123.4m
EBITDA 7 7. 6%
10.86c
Earnings per share
79.3%
$89.4m
Operating cash flow
$875.2m
Cash on hand
* From continuing operations
1
Includes Hong Kong and Korea label

THE a
2 MILK COMPANY ANNUAL REPORT 2021
3

4
Conventional cows’ milk
contains two main types of beta
casein protein, A2 protein and
A1 protein – our branded milk
is different from conventional
cows’ milk because it comes
from cows selected to naturally
produce only the A2 protein type
and no A1.
Our milk is comparable to conventional
cows’ milk in other respects.
Our branded milk is naturally occurring and
not a product of genetic engineering or
technological processes.
Many consumers and healthcare
professionals report that some people
who experience digestive issues drinking
conventional cows’ milk may experience
benefits when they switch to a2 Milk
TM
.
a2 Milk™ brand is much more than just
a difference between A1 and A2 protein
types. Our brand stands for a series of
wonderful qualities from where we source
our milk, the extra special care we take from
cow to consumer, and how we educate and
engage with our consumers.
Our a2 Milk
TM

difference
That’s why there is only
one a2 Milk™ from
The a2 Milk Company.
Typical cow herds produce
conventional milk
containing a mix of A1 and
A2 protein types
Our branded milk is sourced
from herds producing milk
naturally containing only the
A2 protein type and no A1
Genetic variation has resulted in mixed
herds over time
Originally all cows
produced milk
containing only the
A2 protein type

THE a
2 MILK COMPANY ANNUAL REPORT 2021
5
Dear Shareholder
There is no hiding from the fact that it has been a very
challenging year for The a2 Milk Company. We also know
that it was a challenging year for you, our shareholders, in
many ways. We have been particularly disappointed, in that
context, with our Company’s performance and the pressure
this has put on our share price over the past year.
I don’t need to explain to you that we as a Company, along
with all of us individually, have experienced an extended
period of great uncertainty and volatility, including as a
result of the COVID-19 pandemic. During this period of
volatility, the normal behaviours of both our consumers and
our trade customers changed, in some cases radically, by
their reaction to the crisis, and this has had a profound and
very challenging effect on many aspects of our business.
Across the early phase of the pandemic, and particularly
in our infant nutrition business, there were highly unusual
swings in demand as consumers tended to panic buy and
pantry load, creating a large spike in sales, followed several
months later by a gradual unwinding of these pantry stocks
as things settled down. These dramatic swings in consumer
behaviour subsequently drove equally significant changes in
the behaviour of many of our trade customers as they tried
to meet demand and also balance off their own challenges.
These swings in consumer demand were exacerbated by
real concerns over the future availability of certain key infant
nutrition ingredients, which are sourced from all over the
world. In order to make sure that we were able to meet any
further spikes in demand, in the early period of COVID-19
we chose to build our own inventory levels to ensure we
were able to meet potential demand patterns without facing
supply chain disruption. Whilst this was a rational decision to
make at the time given the prevailing uncertainty, especially
bearing in mind that we commit to production three months
in advance, the anticipated demand for these increased
orders didn’t materialise and as a result this led to increases
in our own inventory.
FROM THE CHAIR
OUR
CHAIR
“ Our Company remains at its
heart a very robust,
differentiated branded
business with exceptionally
strong financials.”
As a result of these challenges, excess inventories built
up right across our business both internally and externally
throughout our distribution channels. To address the excess
inventory levels, aggressive measures were put into place in
the fourth quarter of the fiscal year.
These challenges impacted our English label infant nutrition
business. In the first quarter of the fiscal year we were
impacted by the flow-on effect of pantry destocking
following the strong sales uplift in 3Q20 and lower than
anticipated sales to retail daigous in Australia, due to
multiple reasons including reduced tourism from China and
international student numbers. By the end of the first quarter,
we were experiencing increasing disruption to corporate
daigou/reseller customers. With the effect of the disruption
in the daigou channel, we shifted our focus to activating
the CBEC channel in a manner which complemented our
daigou business. By the end of the second quarter, it became
clear that the disruption we were experiencing in the daigou
channel was also impacting our CBEC business. Following a
Board-initiated comprehensive inventory review undertaken
by management in the second half, it became clear that the
challenges in the daigou/reseller and CBEC channels were
being exacerbated by a level of channel inventory which was
higher than anticipated. This was primarily due to difficulties
with the visibility that arises as a result of the highly complex
and multi-layered Chinese distribution systems.
David Hearn

6
In the third quarter of the fiscal year, we announced a
number of initiatives, particularly in these heavily affected
channels, to address the issues. Specifically, we deliberately
slowed down our own sales into the CBEC channel to reduce
the inventory levels; we reduced our forward orders from our
infant nutrition supplier Synlait to reduce our own internal
stock levels; and we embarked on a series of promotional
programmes designed to move product through these
channels more quickly. Whilst these initiatives had some
positive effect, we ultimately needed to take more aggressive
action to address these issues fully.
As disclosed in our 10 May 2021 update, the Board made
the difficult decision to address the inventory issues head-on
and aggressively deal with the situation in a substantive way.
This decision required significant inventory write-downs but
we believe that those decisions are in the Company’s best
interests in order to put the business on the right course
going forward.
I, along with the Board and the executive management team
are confident that the approach we have taken, while painful
in the short-term, will place the Company in a much better
position to begin to return to a growth trajectory, primarily by
continuing to build our strong brand from the solid base that
we have created over the past several years.
There is no doubt that the whole world is changing as a
result of the global pandemic and China’s infant nutrition
market is no exception. We will need to continue to develop
new and appropriate strategies to succeed in the future,
not by discarding the foundations on which we have built
past success, but by building on them and developing them
further to remain fit for purpose in this new world. It is for
this reason, and because of our confidence in the underlying
strength of the a2™ brand, that we will be continuing to
invest behind the brand through this period of rebalancing
and into the future.
We recognise that growth in the China infant nutrition
market is slowing significantly, certainly in the short-term
primarily as a result of government guidance around the risks
associated with the COVID-19 vaccine in pregnancy, and that
channel structures are evolving rapidly and a comprehensive
review of our growth strategy and executional plans to
respond to this new environment is underway. We will
provide an update to the market on the strategic review prior
to our Annual Meeting. You can be assured that your Board
and the management team are focused single-mindedly on
returning a2MC to growth and improving shareholder value.
In addition, as stated in the Company’s announcement
on 10 May 2021, the Board is actively reviewing capital
management initiatives. That review is ongoing. While the
business remains in a strong capital position, given the
continued uncertainty and volatility in the markets which we
operate, as well as opportunities to invest for growth which
we continue to investigate, the Board has decided that, at
least in the short-term, now would not be the right time to
return capital or introduce a dividend.
There are other events and developments that we are
pleased to update you on. Post year-end, we completed the
acquisition of a 75% interest in Mataura Valley Milk. There
is further work to be done to integrate this world-class
manufacturing asset into our business, and we are excited
about the opportunities it opens up for us. We are also very
excited about partnering with China Animal Husbandry
Group. This partnership deepens our relationship with, and
highlights our commitment to, China.
There has also been some change to the Board this year.
In February 2021 we announced that Jesse Wu had retired
from the Board. Jesse was an outstanding director from May
2017 and made a significant contribution to the Company’s
development not only in China but across the entire business.
We are pleased to have retained Jesse in the ongoing role of
special advisor to the Chair.
6

THE a
2 MILK COMPANY ANNUAL REPORT 2021
7
At the same time as announcing Jesse’s retirement, we
announced the appointment of Bessie Lee as an independent
non-executive director of the Company. Bessie is a leader
in the field of media and technology start-ups in China
and brings a deep understanding of the Chinese culture,
consumer behaviour and commercial environment. Bessie is
already making a valuable contribution to the Board.
From a management perspective, there have been a number
of changes to the Executive Leadership Team in the past year.
On behalf of the Board, I would like to thank Geoff Babidge
for returning to the Company in 2019 and for his leadership
during a tumultuous year. In the second half of the fiscal year,
we bid farewell to Lisa Burquest, Susan Massasso and Peter
Nathan. We wish all of them every success in the future.
Given the unprecedented levels of uncertainty and volatility
due to COVID-19 and the changes that our business has had
to make in response, this year is a particularly opportune
time to usher in a new management team and so we were
pleased in February 2021 to welcome David Bortolussi as
our new Managing Director and Chief Executive Officer.
David’s leadership and contribution has already been
immense. Alongside a complete review of all aspects of
the business, one of the many tasks David has needed to
undertake has been a rebuild of the Executive Leadership
Team. Consequently there have been a number of changes,
promotions and new appointments which the Board is
confident will set the business up strongly for the future.
David and the Executive Leadership Team are continuing
to focus on driving improved performance in the new
financial year, while also developing and progressing the
implementation of a revised longer-term growth strategy.
Finally, I want to leave you with two important thoughts.
Firstly, whilst the issues that arose in FY21 were undoubtedly
a challenge, the business remains at its heart a very robust,
differentiated branded business with exceptionally strong
financials – which is indeed why we have weathered this
period of volatility. We have built a solid foundation which
has not been jeopardised by the short-term supply/demand
imbalances and the future continues to offer many attractive
opportunities for growth and expansion.
Secondly, I recognise the serious challenges created by the
market conditions in the last year to you, our shareholders.
I understand your pain and your concerns. I regret that, after
an extended period of stellar performance, factors such as
the global pandemic impacted our performance in FY21, but
that only makes the Board and the management team all the
more determined to make back the lost ground.
I look forward to updating you at our annual shareholders’
meeting in November.
In the meantime, may I take this opportunity to wish you and
your family the best of health as the world hopefully begins
to navigate its way out of this tragic COVID-19 crisis.
Yours faithfully,

David Hearn
Chair
25 August 2021
We are confident in the
underlying strength of
the a2
™
brand, and will
continue to invest in the
brand through this period
of rebalancing.

8
CEO‘S YEAR IN REVIEW
“ I am delighted to have joined
The a2 Milk Company and am
excited about the strength of
the brand and our future.“
DAVID BORTOLUSSI
MANAGING DIRECTOR AND CEO
BEYOND
THINKING

THE a
2 MILK COMPANY ANNUAL REPORT 2021
9
BEYOND
CEO‘S YEAR
IN REVIEW
David Bortolussi
Challenging year impacted by COVID-19
Channel inventory dynamics improving
and growth strategy review underway
The a2 Milk Company experienced a very challenging year in
FY21 impacted by unprecedented levels of uncertainty and
volatility due to the prolonged impact of COVID-19 and a
rapidly changing China infant nutrition market. Over the past
year China market growth has reduced significantly from
globally high rates to be flat, and cross-border trade has been
disrupted significantly which has had a profound impact on
the Company’s results.
While certain areas of the business performed well, with
market share gains in China label infant nutrition and
Australian fresh milk, the Company was impacted by a
significant decline in cross-border English label infant nutrition
and other nutritional sales through daigou/reseller and
e-commerce channels. This created substantial demand and
supply volatility, which caused material excess inventory issues
that exacerbated the impact.
In response to the dramatic change in circumstances, the
Company took significant action, particularly from 4Q21, to
address excess inventory issues, rebuild the management
team, increase brand investment to drive demand, commence
a review of its growth strategy and review options to deploy
available capital. These actions have put the Company in a
far better position now than it would have been otherwise
to navigate the challenges ahead and enable it to return to
growth in the medium-term.
The Board and management are confident in the underlying
fundamentals of the business and that the growth
opportunity in core markets remains strong. Coupled with
opportunities for product innovation, category expansion and
new markets, and supported by a healthy brand and strong
balance sheet, the long-term outlook is positive. However, the
outlook for FY22 remains challenging and uncertain and it
will take time to recover.

CEO‘S YEAR IN REVIEW
10
Group financial performance
3,4,5
The a2 Milk Company experienced a challenging year with
revenue for the Group declining 30.3% to $1.21 billion
which was within the guidance range provided in May. As
stated in the Company’s announcement on 10 May 2021,
a2MC’s performance was impacted by unprecedented levels
of uncertainty and volatility due to COVID-19, challenges
experienced in the English label infant nutrition channels,
and the actions then required in the second half to rebalance
channel inventory.
Gross margin percentage
6
decreased to 42.3%. This
was significantly lower than the prior year primarily due
to recognising stock write-downs of $10 8.6 million. Gross
margin was also impacted by higher cost of goods sold
driven by an increase in raw milk prices, lower volumes and
adverse mix driven by a higher proportion of liquid milk to
infant nutrition sales and a relative increase in China label
sales as a proportion of overall infant nutrition sales. Foreign
currency movements also negatively impacted gross margin,
particularly in 2H21. Excluding the stock write-downs, the
full year gross margin was 51.3%.
3 All figures are in New Zealand Dollars (NZ$) unless otherwise stated.
4 All comparisons are with the 12 months ended 30 June 2020 (FY20),
unless otherwise stated.
5 All figures are quoted based on continuing operations of the Group,
unless otherwise stated.
6 Gross margin percentage is calculated as sales less cost of goods sold,
divided by sales.
Key points
1
—Revenue and EBITDA
2
margin was within the
guidance range provided in May
—Revenue down 30.3% to $1.21 billion
—Earnings before interest tax depreciation
and amortisation (EBITDA) down 77.6% to
$123 million inclusive of $109 million in stock
write-downs and $10 million in Mataura Valley
Milk (MVM) acquisition costs
—EBITDA to sales margin of 10.2% or 11.1%
excluding MVM acquisition costs
—Net profit after tax down 79.1% to $80.7 million
(including discontinued operations)
—Actions taken from 4Q21 to address excess inventory
are proving effective with channel inventory levels
reducing, product freshness improving and market
pricing increasing – rebalancing of channel inventory
is expected to continue through 1Q22
—Executive Leadership Team appointments and Asia
Pacific division reorganisation to build capability
and provide more dedicated management focus
completed
—Brand health metrics remain strong overall with
some improvements in recent tracking research
following a significant 4Q21 marketing campaign in
China
—MVM acquisition and strategic partnership with
China Animal Husbandry Group completed in July
—Growth strategy review underway to respond to
rapidly changing China market dynamics – update to
be provided at the investor strategy day in October
—The Board has carefully considered capital
management initiatives and has decided not to
return capital to shareholders at this point in time,
preferring instead to preserve balance sheet strength
having regard to market volatility and potential
opportunities to reinvest in growth and supply chain
1 All figures are in New Zealand Dollars (NZ$) and based on
continuing operations of the Group, unless otherwise stated.
2 Earnings before interest, tax, depreciation and amortisation
(EBITDA) is a non-GAAP measure. However, the Company
believes that it assists in providing investors with a
comprehensive understanding of the underlying performance of
the business. A reconciliation of EBITDA to net profit after tax is
shown at the end of this document.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
11
“ Our consumers as well as our
employees have been impacted
by the pandemic and our
biggest concern has been the
safety and well being of both
ensuring our consumers are
able to access the freshest,
premium products and our
employees are supported
during this crisis.”
EBITDA decreased by 77.6% during the period to
$123.4 million ($133.8 million excluding MVM acquisition
costs). This reflected lower revenue and gross margins, one-
off costs of $9.7 million associated with the implementation
of a new cloud-based enterprise resource planning (ERP)
system, and $10.4 million of MVM acquisition costs. This
was partially offset by lower employee incentive payments,
lower consulting costs and a reduction in discretionary costs,
whilst continuing to invest in brand marketing and internal
capability building.
This resulted in an EBITDA to sales margin of 10.2%.
Excluding MVM acquisition costs, EBITDA to sales margin was
within the guidance range provided in May at 11.1%.
The effective tax rate of 32.4% was marginally higher than
the prior year due to the proportional increase in USA losses
(which are not tax effected) to the overall Group profit and
the MVM acquisition costs being non-deductible for tax
purposes, partly offset by a prior period adjustment. Net
profit after tax was $80.7 million, a decrease of 79.1%
on the prior year including discontinued operations.
The balance sheet remains in a strong position with
closing net cash of $875.2 million. Operating cash flow
of $89.4 million was significantly lower than the prior year
primarily due to lower earnings combined with a marginal
reduction in net working capital. The Company also invested
in the Kyvalley Dairy Group (Kyvalley) acquisition and lease-
back, the Synlait capital raising and the ERP implementation.
Post year end, the Company completed the acquisition of
MVM for $268.5 million.
Inventory at the end of the period was $112.2 million,
reflecting the impact of the $108.6 million stock write-down
which includes associated disposal costs. As stated in the
Company’s announcement on 10 May 2021, this write-
down was a result of the Board-initiated inventory review
undertaken by management in 2H21, which indicated that
the level of channel inventory was higher than anticipated.
The elevated inventory was a consequence of managing the
uncertainties and complexities of COVID-19 impacting supply
chains, compounded by lower sales, particularly in English
label infant nutrition. Actions were taken in 4Q21 to address
excess inventory which included a reduction in planned sell-in
across the daigou/reseller, CBEC and China label channels, as
well as working with customers and distributors to improve
the dating of inventory to improve freshness across all labels
and channels. These actions are proving to be effective
with early signs of price stabilisation in the CBEC channel
and some recovery in the daigou/reseller channel. Channel
inventory in CBEC and daigou/reseller channels are now at
target levels, with China label expected to reach target levels
by the end of 1Q22.

CEO‘S YEAR IN REVIEW
12
China infant nutrition market dynamics
As noted in the Company’s announcement on 10 May 2021,
the China infant nutrition market structure is changing rapidly.
In volume terms, the overall infant nutrition market in China
decreased
7
in FY21 in volume driven by a significant reduction
in the birth rate impacting early-stage products, partially offset
by increased product penetration.
Although market performance varied by channel and
segment, overall, value growth was flat
8
as the impact of
premiumisation (driven primarily through consumers trading-
up and new product innovation) was partially offset by
increased promotional activity resulting from heightened
competitive intensity. Local players continue to gain share
against the traditional multinational brands, driven both by the
strength of local brands in domestic channels, as well as an
overall mix shift from cross-border to domestic channels.
The increasingly competitive environment compounded by
macro factors and evolving market dynamics reiterates the
importance of the Company’s current growth strategy review.
Regional performance
1. China & Other Asia
China & Other Asia revenue of $583.4 million was down
16.6%, with EBITDA of $75.6 million, down 66.4%. Lower
revenue was primarily due to challenges experienced in the
CBEC channel and a rebalancing of inventory with distributors.
The reduction in EBITDA margin was due to the higher
proportion of China label sales relative to CBEC sales with
the former being a higher cost to serve channel, resulting in a
lower gross margin. It also reflected the continued investment
in brand and capability. The proportion of the inventory
write-down allocated to the China & Other Asia segment was
$50.3 million.
Despite the disruption and challenges experienced during
the year, the Company continued to record strong brand
health metrics in China overall – China label metrics improved
consistently while English label metrics weakened somewhat
but improved partially in 4Q21 following the marketing
campaign and other initiatives.
Infant nutrition – China label channels
Sales in a2
至初
®
China label infant nutrition of $389.9 million
were achieved, an increase of 15.4% which was an
encouraging result in a challenging market. The growth rate
relative to FY20 was reflective of the substantial uplift in
the prior period due to COVID-19 related pantry stocking, a
reduction in the birth rate, and the increasing competition
from domestic brands. Foreign currency movements
(stronger NZD relative to USD/RMB) also created headwinds,
particularly in 2H21. The 2H21 decrease in sales of 7.4%
was also impacted by the actions taken in 4Q21 to reduce
channel inventory.
7 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market
tracking (Key&A + BCD cities) for the 52 weeks ending 18 June 2021.
8 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market
tracking (Key&A + BCD cities) for the 52 weeks ending 18 June 2021.
As measured by Nielsen, retail sales for mother and baby
stores (ie sales from stores to consumers by value) for the
overall market were up 9% for the year and up 13% for
2H21
9
. a2MC’s 12-month rolling market value share in MBS
was 2.5% at the end of June 2021, versus 2.4% at the end
of December 2020 and 2.0% at the end of June 2020
8
.
Distribution increased to 22.8k stores, from 21.8k at the
end of December 2020 and 18.2k stores at the end of June
2020
10
. Importantly, a2 至初
®
was one of a few international
brands that gained share in the year, providing a solid base to
build on in the future.
As measured by Smart Path, retail sales for domestic online
(“DOL”) platforms (by value) for the overall market were up
19% for the year and up 11% for 2H21
11
. The Company’s
12-month rolling market value share in DOL was 2.0% at the
end of June 2021, versus 2.0% at the end of December 2020
and 1.9% at the end of June 2020
10
.
Channel inventory was slightly higher than target levels at
the end of the period and will be further reduced in 1Q22
by careful on-going stock management. The actions taken
to replace distributor inventory with fresher stock is well
progressed with the impact in store starting to be seen. It is
expected that inventory freshness will improve significantly in
FY22 compared to FY21.
The Company continued to invest behind the brand to drive
consumer demand. For FY21, this was weighted to the
second half, including a significant marketing campaign in
China in 4Q21.
The strategic importance and size of the channel, and the
strong resonance the brand has with consumers, means
the mother and baby store channel remains the Company’s
biggest opportunity to gain market share. A key element
of the growth strategy review is focussing on maximising
this opportunity as well as gaining share in domestic
online channels.
9 Nielsen MBS retail measurement service: mother and baby stores only
retail sales (by value). FY21 versus FY20 and 2H21 versus 2H20.
10 a2MC internal data tracking of stores with active sales in the past 6
months. Restated store numbers for December 2020 and June 2020
reflecting enhanced data capture and updated internal tracking
methodology.
11 Smart Path China IMF online market tracking: domestic online platform
sales (by value). FY21 versus FY20 and 2H21 versus 2H20.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
13
Infant nutrition – Cross-border e-commerce (CBEC)
a2 Platinum
®
English and other label infant nutrition revenue
of $166.9 million was down 51.1%. First half sales were
impacted by pantry destocking from 2H20. In the second half,
sales of $63.4 million were down 64.9% on 2H20 primarily as
a result of cycling a high comparative period and as a result of
the actions taken in 2H21 to rebalance inventory within the
channel. Foreign currency movements also created headwinds
for CBEC sales, which are denominated in US dollars. The
second half result also reflected limited price discounting
during the “618” sales promotion event and no sales of Hong
Kong label, which has ceased due to COVID-19 restrictions.
As measured by Smart Path, retail sales (by value) for the
overall CBEC market were up 3% for the year and down 5%
for 2H21
12
. The Company’s 12-month rolling market value
share in CBEC was marginally down at 21.1% at the end of
June, versus 22.2% at the end of December 2020 and 21.7%
at the end of June 2020
11
. This performance reflected actions
taken in 2H21 as referenced above, as well as a significant
amount of cross selling and reselling from the daigou/
reseller and retail channels. These dynamics may continue to
put pressure on a2MC’s short-term CBEC market share, as
measured by Smart Path.
2. ANZ
Revenue in the ANZ segment was impacted by the infant
and other nutrition challenges experienced in the daigou/
reseller and retail channels but was partly offset by strong
performance in liquid milk in Australia. ANZ segment
revenue of $559.7 million was down 42.0%, with EBITDA
of $148.8 million, down 68.0%. ANZ segment revenue of
$242.5 million for 2H21 was down 52.0%, with EBITDA
of $31.4 million for 2H21, down 86.8% primarily due to
the actions taken in 4Q21 to rebalance the daigou/reseller
channel partly offset by growth in Australian fresh milk.
Infant nutrition – daigou/resellers and retail
Infant nutrition revenue in ANZ decreased by 52.1%
to $357.0 million for the year. This significant decrease
was due mainly to prolonged impacts emanating from
COVID-19 volatility.
12 Smart Path China IMF online market tracking: for CBEC only retail sales
(by value). FY21 versus FY20 and 2H21 versus 2H20. (Prior periods
restated for updated data.)
In July and August 2020, the business was impacted by the
unwinding of pantry loading that had occurred in early 2020
due to COVID-19, initially impacting retail daigou sales. At
the end of September, it was evident that daigou/reseller
customers were also being impacted by COVID-19 related
restrictions. Measures were taken to address the prevailing
situation and there were initial signs of improvement. However,
there was further impact to CBEC sales later in 2Q21 which had
a flow on impact on demand, reflecting the interrelationship
between the daigou/reseller and CBEC channels. Actions taken
in 3Q21 and in April to address the challenges in the daigou/
reseller and CBEC channels had limited impact. Following
a Board-initiated comprehensive review by management of
inventory in the trade in 2H21, it was clear that the level of
channel inventory was higher than had been anticipated and
there were difficulties with channel inventory visibility and
demand and supply planning.
A number of initiatives were put in place to address this decline
in performance and, importantly to put the business on a
firmer footing. These included:
—Incurring a significant stock write-down to reduce excess
and ageing inventory
—Swapping out older distributor inventory with more recent
stock to improve on-shelf product freshness
—Reducing channel inventory levels by restricting sales in
4Q21 to stabilise pricing and improve inventory flow
—Increasing wholesale prices to rebalance pricing across
channels and mitigate margin loss due to higher cost of
goods sold pressures
The initial results of these actions have been encouraging with
product freshness and market pricing starting to improve.
English label product freshness is expected to improve
significantly in FY22 compared with FY21. Although market
pricing is improving, CY21 English label inventory remaining
in the market and being sold by certain wholesale traders and
online players is depressing visible pricing in the market. The
amount of this inventory remaining in the market is difficult to
quantify, but it is expected that it will have largely cleared by
the end of the “11/11” peak trading period.

CEO‘S YEAR IN REVIEW
14
Notwithstanding these actions, the Company estimates it
lost market share in the daigou channel during the year,
particularly in Stage 1 infant nutrition. Kantar data has
recently been expanded and a more representative consumer
age range now being captured
13
. Whilst there are still
some inherent limitations for measuring the Company’s
performance using Kantar data, it remains the only single
source for tracking daigou consumer sales. Kantar data
suggests daigou consumer sales in the market were down
42% for FY21 and down 35% for 2H21
14
and that a2MC’s
daigou share declined but less dramatically to 22% at the end
of June 2021 compared to 24% at the end of June 2020
12
.
Given the role of the daigou/reseller channel, including in
new user recruitment in an increasingly competitive market,
some continued pressure on consumer demand is expected.
A key focus is working with distribution partners to increase
distribution and new user activation, as well as optimising
CBEC execution. In addition, a key element of the Company’s
growth strategy review is considering the route-to-market
and management model of English label infant nutrition.
Liquid milk
Australian fresh milk revenue increased by 10.8% to
$169.0 million. The business also achieved a record market
value share of 12.2% at the end of June 2021
15
, primarily
driven by increased levels of in-home consumption during
1H21 lockdowns associated with COVID-19. Growth
moderated in 2H21 to 5.5% as restrictions eased and
a greater amount of out-of-home consumption was
experienced prior to recent lockdowns in Australia. During
the year the Company acquired the manufacturing facilities of
Kyvalley. The purchase and upgrade of Kyvalley is a strategic
investment to ensure quality of products and processing
capacity.
Other nutritional products
The disruption experienced in the daigou/reseller channel
also impacted all products in this segment with revenue
decreasing 50.5% to $33.7 million. As with infant nutrition
products, the Company is examining the product and channel
approach as part of the growth strategy review to drive
demand and ensure other opportunities are explored to
maximise the full potential of the segment.
3. North America
USA revenue decreased 3.7% to $63.6 million. An improved
EBITDA result was delivered, with a significantly reduced loss
of $33.5 million, representing a $17.0 million improvement on
FY20. USA segment revenue of $29.4 million for 2H21 was
down 22.8%, with an EBITDA loss of $21.9 million for 2H21
representing a $1.4 million improvement compared to 2H20.
13 Kantar data based on a panel of 9,000 consumers covering 0-6 year
olds and only seeks to project ~40% of the population.
14 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market
tracking (Key&A + BCD cities) for the 52 weeks ending 18 June 2021.
15 IRI Australian Grocery Weighted Scan 12-months ending 30 June 2021.
FY21 represented a shift in execution approach for the USA
business with lower marketing investment and increased
price investment to improve conversion and household
penetration. The business leveraged trade investment to bring
price to an affordable premium as well as increasing range,
facings and improving overall shelf positioning. This resulted
in a significant percentage of key accounts increasing product
facings and improving shelf position which is expected to
benefit the business over time.
The decline in FY21 revenue reflects higher planned trade
spend in line with the businesses revised pricing strategy,
the loss of certain regions of a major club channel customer,
and unfavourable foreign exchange, with each of these
factors more heavily weighted to 2H21. Additionally, the US
business benefited from a lift in in-home consumption related
to COVID-19 lockdowns during 2H20, presenting a more
challenging 2H21 comparative. On a constant currency basis,
net revenue increased 5.5% to $69.7 million during the year.
Underlying volume growth for the year was 13%, or 26%
excluding the major club channel customer. The improved
EBITDA loss in FY21 reflected a substantial reduction in
marketing investment associated with the above noted shift
in execution, along with the positive benefits of currency
exchange on business expenditure.
Average velocities grew within key accounts and distribution
grew to 26.8k stores, from 24.0k stores at the end of June
2020
16
. In 2H21
17
, a2 Milk™ grew ahead of the premium
liquid milk category and was the strongest performing
premium brand over the period.
While marketing investment in FY21 was lower than the
prior year, key marketing and public relations activities
continued which resulted in driving improvements in brand
health metrics, with prompted awareness demonstrating
a significant increase. Additionally, the a2 Milk™ brand
was one of the top two leading brands in the category for
brand loyalty.
16 Updated prior year comparison due to expanded data set now being
supplied.
17 Based on data available to 15 May 2021.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
15
The USA is an important market, and the Company
continues to evaluate product, distribution and supply
chain opportunities to increase the scale and profitability
of the business.
In Canada, products were first launched in July 2020, initially
focusing on Western Canada with subsequent distribution
expansion. The Company continues to work closely with
Agrifoods, leveraging the Company’s intellectual property
and marketing assets as well as proprietary systems and
know-how relating to local milk sourcing and processing.
Completion of acquisition of MVM
On 30 July 2021, the Company completed the acquisition
of a 75% interest in Mataura Valley Milk (MVM), a dairy
nutrition business located in Southland, New Zealand, in
partnership with China Animal Husbandry Group.
The strategic intent of the acquisition remains intact.
The acquisition provides the opportunity to participate in
nutritional products manufacturing and the potential to
pursue additional China label registrations and product
innovation opportunities in the future. It strengthens
relationships with key strategic partners in China, achieves
supplier and geographic diversification, and over time will
offer access to insourced manufacturing margins.
It had previously been expected that post acquisition, MVM
would process additional third-party volumes which is now
uncertain in terms of execution and timing. In addition, a2MC
has now revised down its volume assumptions for product
to be transferred to MVM during the transitional period
(FY22-24). Consequently, MVM is exploring further business
development opportunities and will seek to work with
additional third parties to improve the financial performance
of MVM during the transitional period. The Company still
expects MVM will return a positive EBITDA during FY25.
Additional financial details for FY22 are provided in the
outlook section.
Growth strategy review
Whilst the actions taken have undoubtedly given the
business a stronger platform going forward, the dynamic
and challenging market conditions over the past year have
highlighted the need to review and adapt elements of the
Company’s long-term strategy and execution going forward.
The Company recognises that the China infant nutrition
market structure is changing rapidly. While consumers still
have a strong preference for premium infant nutrition, market
growth is being impacted by a more pronounced reduction in
the birth rate. In addition, the shift towards China label infant
nutrition continues, the rate of new product innovation has
ramped up, channels to market are changing and competitive
intensity is increasing, with domestic players continuing to
gain market share.
It is also clear that the daigou/reseller channel has been
impacted by COVID-19, regulatory and other structural
factors. Whilst the daigou/reseller channel will continue to
play an important role, the Company needs to further evolve
its routes to market and brand marketing programmes in
parallel in order to adjust to the changing environment in
which it operates.
Accordingly, the Company recognises the need to change
its approach in light of the significant market changes and
a comprehensive process to review its growth strategy is
underway. The scope of this review includes the Company’s
approach to driving infant nutrition growth in both
China label and English label channels; its infant nutrition
product portfolio and innovation strategy; adjacent growth
opportunities; and its brand positioning to ensure continued
resonance and distinctiveness amongst an evolving
consumer base.
An update on this review will be provided at an investor
strategy day currently scheduled for late October.

CEO‘S YEAR IN REVIEW
16
“ Acknowledging that 2021
has been a very difficult year
for the business, I am
confident that these
challenges can be addressed
with the benefit of a strong
brand and new leadership
team to capture the full
potential of our business.”
Capital management
The Company’s balance sheet remains strong. Despite the
current challenges being faced, the Board is confident in the
strength of the brand, the underlying fundamentals of the
business, and the Company’s long-term growth potential.
Capital planning is an ongoing activity of the Board, guided
by the Company’s strategy and capital allocation framework.
This framework prioritises investment in growth initiatives
ahead of returning capital to shareholders.
The current capital planning process is considering how
to maximise the value of the Company’s strong capital
position in line with its growth strategy. This includes further
investment to strengthen the business as well as potential
acquisitions to complement existing operations. The Board
also considers it prudent to maintain a conservative cash
reserve in uncertain times. This is particularly relevant in the
context of volatile consumer markets, which continue to be
impacted by COVID-19.
Several mechanisms are available to the Company when
considering the return of excess capital to shareholders.
The effectiveness of these options is impacted by the
Group’s ownership structure and taxation profile, which are
relevant factors when considering how best to utilise the
Group’s capital. For any potential on-market share buyback,
consideration would need to be given to the Company’s
available subscribed capital, which at end of FY21 was in the
order of NZ$175 million.
Notwithstanding the above considerations, the Board
is currently of the view that there is greater opportunity
to create value by investing in the business and through
potential acquisition than by returning capital to shareholders
either via a buyback or by introducing a dividend at this stage
in the Company’s development. Capital management options
will continue to be an important consideration in the broader
capital planning process and will continue to be reviewed by
the Board on an ongoing basis.
Significant progress in sustainability
In FY20, the Company identified a number of focus areas to
enhance its efforts to become a more sustainable business
for the future. In FY21, significant progress was made in
several focus areas including enhancing its approach to
animal welfare and its farm environmental plans; continuing
to invest, engage and support local communities; as well
as advancing several initiatives under its people strategy,
responsible sourcing and ethical supply chain.
The Company is committed to investing in tangible climate-
related programmes that will create a positive impact on
the planet. In FY21 funding was redeployed to advance and
support critical research and projects in the supply chain as
follows:
—Progressed a research project to assess the potential of
asparagopsis in reducing methane produced by
A2/A2 cows
—Contributed to Synlait’s conversion of its current coal boiler
to biomass fuel
—Committed to converting or replacing MVM’s coal boiler in
the future
—Installed solar panels at the Smeaton Grange milk
processing plant and commenced an energy audit of
the site
Further information on the Company’s sustainability goals
and strategy will be provided at the upcoming investor
strategy day in late October.
Executive leadership team and
reorganisation
In July 2021 the Company announced it would reorganise its
Asia Pacific division. The objectives of this reorganisation are
to provide greater leadership and focus on key components
of the business, enable holistic management of the English
label business, and improve execution going forward.
This reorganisation resulted in two of the Company’s existing
leaders, Xiao Li, Chief Executive – Greater China, and Kevin
Bush, Executive General Manager – ANZ, being promoted
to be direct reports to the CEO, demonstrating the depth
of talent within the Company, and are both now on the
Executive Leadership Team.
Yohan Senaratne was appointed Executive General Manager
– International and commenced with the Company in July.
Yohan is responsible for leading the Company’s cross-border
export business, primarily focused on English label infant
nutrition products.
The Company also recently appointed Edith Bailey as its
new Chief Marketing Officer. Edith will be responsible for
managing the strategic and creative direction of the a2™
brand and driving product innovation going forward. Edith
will commence in December 2021.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
17
Amanda Hart was also recently appointed as Chief People
& Culture Officer in July and will commence her role in
September 2021. Amanda will be responsible for driving the
people strategy and executing integrated programmes to
develop internal capability and evolve the Company’s culture.
Following the completion of the MVM acquisition, Bernard
May has joined a2MC’s Executive Leadership Team as Chief
Executive Officer – MVM.
During the year Eleanor Khor was promoted to the role
of Chief Strategy Officer, and Jaron McVicar’s role was
expanded to Chief Legal & Sustainability Officer and
Company Secretary.
Outlook
The Company is confident in the underlying fundamentals of
the business and that the growth opportunity in core markets
remains significant. Coupled with opportunities for product
innovation, category expansion and new markets, and
supported by a healthy brand and strong balance sheet, the
long-term outlook is positive.
However, given the continuing uncertainty and volatility in
a2MC’s consumer markets resulting from issues related to
COVID-19 and other rapidly changing market dynamics,
particularly in China, the Company has determined not
to provide specific guidance regarding anticipated Group
revenue or EBITDA margin at this time. Rather, it is providing
current observations on key drivers and important issues that
may impact its FY22 results.
These observations are based on what the Company is
currently aware of, and facts and circumstances may change
materially in the future. Accordingly, actual results may vary
materially from that indicated by the qualitative outlook
provided below.
The outlook also assumes no material changes in macro
factors such as cross border trade, changes in the regulatory
environment and foreign exchange, and that COVID-19
related impacts continue at broadly current levels.
China infant nutrition market
China’s infant nutrition market is being materially impacted
by a lower birth rate, especially recently due to COVID-19
and related vaccination programmes causing many people
to delay pregnancy. While it is expected that this short-
term impact will be cyclical in nature, at this stage it is not
possible to accurately predict the extent or timing of the
impact or recovery over the medium-term. In the longer-
term, it is expected that Government initiatives to address the
declining birth rate will have a positive and stabilising impact.
The prospect of other potential regulatory impacts on the
category, whether they be positive or negative in nature, is
unknown and inherently difficult to predict.
In FY22, the Company expects the value of the overall infant
nutrition market to decrease due to the lower number of
births (during the year, and also as a result of the year prior),
an increase in competitive intensity and promotional activity
impacting average pricing, partially offset by a continuation
of the usage penetration and premiumisation trend.
Based on current market trends, the ultra-premium segment
(where the Company’s China label product competes) is
expected to perform at or above market, and the premium
segment is expected to perform at or below market.
The impact of these market dynamics is expected to be felt
most in early-stage products, and in Key and A cities where
the birth rate reduction is higher than in BCD cities. Market
share gains by domestic brands compared to international
brands are expected to continue.
Category and business divisions
In China label infant nutrition, the Company is expecting
to grow sales in FY22, as well as gain moderate share,
albeit in a weaker market overall. The focus is on acquiring
new users and expanding distribution. Inventory levels are
reducing, and product freshness is improving. In 1Q22, the
Company is continuing to reduce distributor inventory levels
which will impact sales. This is expected to result in a stronger
2H22 compared to 1H22.
In English label infant nutrition, with the category
under pressure and the challenges experienced by a2MC in
FY21, the Company is targeting sales stabilisation in FY22
but a wide range of outcomes is possible. The COVID-19
impacts on the daigou/reseller channel and associated
impact on CBEC for English label products are expected to
be prolonged. The Company is adapting its strategy and
execution to stabilise its English label business and return
to growth over time.
Further incremental sales growth is expected in Australian
liquid milk in FY22. In 1H22, the current COVID-19
restrictions in Australia are likely to support volumes.
However, these restrictions are expected to ease in 2H22,
with potential volume declines as more out-of-home
consumption resumes. Input costs are also higher compared
to FY21 partially offset by pricing.
Strong underlying growth in key accounts is expected in
USA liquid milk in FY22. In-home consumption is expected
to remain at similar levels. However, with the loss of certain
regions of a major club channel customer due to private
label substitution, modest sales growth overall is expected.
The higher trade spend in FY21 to reduce retail price points
and improve distribution will be rolled back during the year
in line with plan with some volume risk. Overall, a marginal
improvement in USD losses is expected.

CEO‘S YEAR IN REVIEW
18
FY22 will be the first time MVM is included in a2MC’s
financial reporting. As such, the following information
regarding MVM is provided to assist the market with
revenue and earnings expectations. Based on revised volume
assumptions, it is now expected that in FY22 MVM will
deliver approximately $80 million in revenue (excluding
intercompany revenue) and an EBITDA loss of approximately
$20 million for the 11 months post-completion. On an
annualised basis the EBITDA loss would be approximately
$4 million greater due to July being a seasonally low period.
Prior to any further investment in a blending and canning
facility and associated infrastructure, it is expected that
depreciation and amortisation during the transitional period
will be approximately $14 million, subject to finalisation of
acquisition accounting. MVM will be fully consolidated into
a2MCs accounts going forward on a 100% basis with the
non-controlling interest deducted from the Group’s net profit
after tax. The consolidation of MVM will affect the reported
gross margin of the Group. This includes the allocation of
direct overheads, including a portion of manufacturing
depreciation, to gross margin.
Marketing and capability investment
Based on the continuing strong brand fundamentals, the
Company is planning for a significant increase in brand
investment, content generation and activation in FY22
to drive awareness and trial in China and to compensate
for continued subdued daigou activity which has been
effective in the past in building the brand. Overall marketing
investment in FY22 is anticipated to return to approximately
FY20 levels which is expected to continue to drive improved
brand health metrics and future demand. Phasing of
marketing investment may be influenced by the growth
strategy review underway.
The Company will also continue to invest in capability building
in China and in corporate functions to support future growth.
It is also expecting a return of short-term and long-term
employee incentive programmes in order to retain and attract
talent. These investments will offset the reversal of FY21
one-off costs associated with the MVM acquisition and ERP
implementation. Accordingly, together with the addition of
FY22 operating costs for the MVM business, the Company
is anticipating an uplift in employee and administration costs
in FY22.
Key financials
The Company is expecting 1H22 revenue (including MVM)
to be marginally lower than 1H21 due mainly to lower English
label infant nutrition sales offset by the addition of MVM
revenue. 2H22 revenue (including MVM) is expected to be
significantly higher than 2H21 due mainly to actions taken
in 2H21 to rebalance channel inventory, increased marketing
investment and the inclusion of MVM revenue.
FY22 gross margin is expected to be broadly similar
to FY21 (excluding FY21 stock write-downs and before
consolidating the MVM business in FY22). This reflects the
annualisation benefit of FY21 infant nutrition price increases
and the product mix benefit from an overall growth in infant
nutrition volume. These benefits will be largely offset by
COGS headwinds related to increasing milk, ingredient and
packaging costs. The Company is also expecting continued
adverse infant nutrition mix in FY22 with China label growing
ahead of English label.
Given the uncertainty and potential volatility in infant
nutrition sales, particularly English label, it is difficult to
predict with any precision the wide range of potential
EBITDA outcomes in FY22 relative to FY21 excluding stock
write-downs.
Additionally, with the inclusion of MVM in FY22,
depreciation and amortisation for the Group is expected
to increase to approximately $20 million and, as the MVM
losses will not be taken as a deduction for tax purposes,
a higher effective tax rate, in the order of 37-39%,
is anticipated.
Overall, although a2MC believes the business will continue to
make significant progress on many fronts, FY22 is expected
to continue to be a challenging and volatile year. Due to
the actions taken in 4Q21 to address channel inventory and
improve product freshness, coupled with strong brand health,
the business is well-placed to adapt its strategy and execution
to drive growth in the longer term. However, recovery in
English label channels is expected to be slow and market
growth in China will be subdued for some time.
David Bortolussi
Managing Director and Chief Executive Officer
25 August 2021

APPROACH
TO SUSTAINABILITY
AHEAD
MOVING
The a2 Milk Company purpose is ‘to enrich lives by
harnessing the nutritional wonders of nature’ and it
is committed to high standards of responsible conduct,
social responsibility and environmental sustainability.
The Company’s drive to build a sustainable business
for the future, considers its social licence to operate
and recognises the needs and expectations of its
people, consumers, farmers, communities, customers,
suppliers, strategic partners and investors.
Solid progress was made towards building a
sustainable business for the future in FY21 and the
Company is excited about progress that can be
made in the coming year and beyond.
THE a
2 MILK COMPANY ANNUAL REPORT 2021
19

20
SUSTAINABILITY
Capital smart approach
Our business model is built on deep and long-term strategic partnerships both
commercially and operationally. Our farms and processing partners are some of our
longest-standing relationships. Together we have built a very successful community of
businesses – big and small. This ecosystem underpins our ‘capital smart’ business model
and has given us the ability to grow rapidly, while also building a strong balance sheet
for continued growth.
HOW WE CREATE VALUE
Unique, premium brand and IP
Our trusted brand, our proprietary know-how and A2 protein expertise are our
most valuable assets. We are committed to maintaining and growing these assets
with ongoing investment. Through ongoing science and research and development
programmes, we are deepening our expertise and advancing global understanding
of the potential health benefits of a2 Milk™.
Responsible use of natural resources
Access to natural resources and a thriving agricultural sector is fundamental to our
business. We recognise that climate change and pressures on agricultural and food
systems present a systemic challenge for our world – and we are committed to finding
unique and high impact solutions across our value chain to help address these
challenges. Appropriately meeting this challenge will enable us to continue providing
premium a2 Milk™ based products to our consumers and long-term value to
our shareholders.
Passionate and thriving team
Through a purpose driven culture underpinned by our values, we aim to create an
environment that provides our people with opportunities to thrive. Our success is
the result of our diverse, skilled and engaged workforce, aligned and focused to
deliver on our purpose and strategy. We are committed to the wellbeing and safety
of our people and have established systems and processes to identify, control,
report, investigate and monitor health and safety risks across the business.
HUMAN
NATURAL
FINANCIAL
OUR PURPOSE
Enrich lives by harnessing
the nutritional wonders
of nature.
WHAT WE DO
Pure and natural a2 Milk
TM
,
infant, children and adult
nutritional products produced
from cows specially selected
to be A1 protein-free.
HOW WE DO IT
Our company stands for
a series of wonderful qualities,
from where we source our
milk, the extra special care we
take from cow to consumer,
and how we educate and
engage with our consumers.
BOLD PASSION
Driven to realise our amazing
potential as a company and
individuals.
PIONEERING SPIRIT
Unconventional open-minded
thinking that re-imagines the
possibilities; outcome driven.
HUMILITY
We're never done growing,
discovering; and we have a
willingness to continually
iterate and learn.
RESPECT
Seek to understand and
appreciate difference in
all its forms.
INTEGRITY
We do the right thing for our
consumers, partners, people...
and our cows.
There are six sources of
capital, embedded in our
value creation model.
The a2 Milk Company has an integrated approach to reporting through
the ‘Six Capitals’ framework, seeking to codify elements which will
contribute to the Company’s ability to create long term value.
1. Maximise sustainable growth
from existing products in
core markets
2. Broaden product portfolio
in core markets
3. Expand in other target markets
UNDERPINNED BY:
– Building sustainable brand
leadership
– Secure supply chain
– Right capabilities
– Right infrastructure and tools
BUSINESS ACTIVITIES
VALUES
INTELLECTUAL
50%
Female Board members
25%
1

Female Executive
Leadership Team
43%
Female Senior
Leadership Group
81%
of farms with a farm
environment plan in place
Extensions developed into
animal welfare programme
Committed to a number of
projects to reduce GHG
emissions in our supply
chain over time
INPUTSOUR BUSINESSOUTCOMESIMPACTS
$178m (14.8% revenue)
invested in marketing,
research & development and
intellectual property
Enriching community wellbeing
The a2 Milk Company supports communities in our key regions of New Zealand,
Australia, China and the US. With a focus on proactive wellness to nourish the lives
of children and families and help them to thrive.
SOCIAL
$2.3m
in cash and product
donations to help children
and families thrive
Innovative and ethical supply chain
Complementing our own fresh milk production capability, we work closely with our
suppliers to develop a reliable and responsible sourcing and manufacturing supply
chain over time. We believe this is critical to our long-term success.
MANUFACTURING
97.3%
of fully recyclable packaging
(+1.4p.points)
Submission of Modern
Slavery Statement
$1.21bn
revenue
10.3%
return on capital employed
$89.4m
operating cash flow

THE a
2 MILK COMPANY ANNUAL REPORT 2021
21
Capital smart approach
Our business model is built on deep and long-term strategic partnerships both
commercially and operationally. Our farms and processing partners are some of our
longest-standing relationships. Together we have built a very successful community of
businesses – big and small. This ecosystem underpins our ‘capital smart’ business model
and has given us the ability to grow rapidly, while also building a strong balance sheet
for continued growth.
HOW WE CREATE VALUE
Unique, premium brand and IP
Our trusted brand, our proprietary know-how and A2 protein expertise are our
most valuable assets. We are committed to maintaining and growing these assets
with ongoing investment. Through ongoing science and research and development
programmes, we are deepening our expertise and advancing global understanding
of the potential health benefits of a2 Milk™.
Responsible use of natural resources
Access to natural resources and a thriving agricultural sector is fundamental to our
business. We recognise that climate change and pressures on agricultural and food
systems present a systemic challenge for our world – and we are committed to finding
unique and high impact solutions across our value chain to help address these
challenges. Appropriately meeting this challenge will enable us to continue providing
premium a2 Milk™ based products to our consumers and long-term value to
our shareholders.
Passionate and thriving team
Through a purpose driven culture underpinned by our values, we aim to create an
environment that provides our people with opportunities to thrive. Our success is
the result of our diverse, skilled and engaged workforce, aligned and focused to
deliver on our purpose and strategy. We are committed to the wellbeing and safety
of our people and have established systems and processes to identify, control,
report, investigate and monitor health and safety risks across the business.
HUMAN
NATURAL
FINANCIAL
OUR PURPOSE
Enrich lives by harnessing
the nutritional wonders
of nature.
WHAT WE DO
Pure and natural a2 Milk
TM
,
infant, children and adult
nutritional products produced
from cows specially selected
to be A1 protein-free.
HOW WE DO IT
Our company stands for
a series of wonderful qualities,
from where we source our
milk, the extra special care we
take from cow to consumer,
and how we educate and
engage with our consumers.
BOLD PASSION
Driven to realise our amazing
potential as a company and
individuals.
PIONEERING SPIRIT
Unconventional open-minded
thinking that re-imagines the
possibilities; outcome driven.
HUMILITY
We're never done growing,
discovering; and we have a
willingness to continually
iterate and learn.
RESPECT
Seek to understand and
appreciate difference in
all its forms.
INTEGRITY
We do the right thing for our
consumers, partners, people...
and our cows.
There are six sources of
capital, embedded in our
value creation model.
The a2 Milk Company has an integrated approach to reporting through
the ‘Six Capitals’ framework, seeking to codify elements which will
contribute to the Company’s ability to create long term value.
1. Maximise sustainable growth
from existing products in
core markets
2. Broaden product portfolio
in core markets
3. Expand in other target markets
UNDERPINNED BY:
– Building sustainable brand
leadership
– Secure supply chain
– Right capabilities
– Right infrastructure and tools
BUSINESS ACTIVITIES
VALUES
INTELLECTUAL
50%
Female Board members
25%
1

Female Executive
Leadership Team
43%
Female Senior
Leadership Group
81%
of farms with a farm
environment plan in place
Extensions developed into
animal welfare programme
Committed to a number of
projects to reduce GHG
emissions in our supply
chain over time
INPUTSOUR BUSINESSOUTCOMESIMPACTS
$178m (14.8% revenue)
invested in marketing,
research & development and
intellectual property
Enriching community wellbeing
The a2 Milk Company supports communities in our key regions of New Zealand,
Australia, China and the US. With a focus on proactive wellness to nourish the lives
of children and families and help them to thrive.
SOCIAL
$2.3m
in cash and product
donations to help children
and families thrive
Innovative and ethical supply chain
Complementing our own fresh milk production capability, we work closely with our
suppliers to develop a reliable and responsible sourcing and manufacturing supply
chain over time. We believe this is critical to our long-term success.
MANUFACTURING
97.3%
of fully recyclable packaging
(+1.4p.points)
Submission of Modern
Slavery Statement
$1.21bn
revenue
10.3%
return on capital employed
$89.4m
operating cash flow
1 Since 30 June 2021, a number of ELT appointments have been announced. Adjusting for these appointments, there will be 12 members of the ELT comprising
9 males (75%) and 3 females (25%). David Bortolussi has been included in both the Director and ELT calculations.

22
SUSTAINABILITY
Investing in people and systems
The Company is committed to building capability and capacity
across the organisation. Key focus areas in FY21 to deliver this
objective have included training, updating and introducing
relevant policies and investing in a new enterprise resource
planning (ERP) system to build capability and support the team.
In FY21, the Company expanded the integrated people
experience programme, a2 For You™. Key activities
undertaken through the programme during the year included:
—Mental wellbeing: The expansion of the Company’s
Employee Assistance Programme to include a series of
webinars focused on mental health and wellbeing, including
providing resources and support during COVID-19.
—Financial wellbeing: Series of financial wellbeing
webinars and information sessions focused on
superannuation, banking and financial fitness.
—Physical health: A series of nutritional wellbeing
webinars with an accredited dietician.
—Growth and learning: The launch of a bespoke
virtual training course: Shaping my Leadership Journey
made available to the broader Senior Leadership Group
(i.e. the group of 47 leaders reporting to the Executive
Leadership Team).
OUR
PEOPLE
HUMAN
CAPITAL
During FY21, the Company invested in a new ERP system
which went live in April 2021. The purpose of this leading-
edge ERP system is to consistently manage key business
activities across the regions and house some of the
Company’s most important business data and intelligence.
It also enables the team to focus on value-add activities,
such as more sophisticated analysis, planning, forecasting
and budgeting.
Keeping people healthy and safe
The Company’s vision for the safety and wellbeing of its
people is that, wherever they are and whatever they are
doing, everyone is safe at work.
The Company is committed to the wellbeing and safety of the
team and have established systems and processes to identify,
control, report, investigate and monitor health and safety risks
across the business.
a2MC empowers all employees to speak up and show the
courage to stop the job, whenever it is not safe, so that
workplace health and safety is not compromised. This enables
and supports employees to take accountability for their safety,
health, wellbeing, and fitness for work.
By embedding safety, ethics, and compliance systems across
the supply chain, the Company aims to operate safely and
ethically, including with respect for human rights and in
compliance with all local requirements, including anti-bribery
and anti-corruption laws.
This includes:
—Preventing injury and illness at the Company’s workplaces
and during work activities
—Understanding and complying with Work Health and
Safety (WHS) legal and other requirements
—Eliminating hazards and reducing WHS risks associated
with operations
—Consulting with employees and external stakeholders to
identify and learn from emerging workplace health and
safety developments
—Continually improving workplace health and safety
management systems, processes and controls
The a2 Milk Company’s values – bold passion, pioneering spirit, humility,
integrity and respect – guide how the Company seeks to achieve its purpose
to ‘enrich lives by harnessing the nutritional wonders of nature’. The Company
is committed to investing in its people and systems, keeping its people healthy
and safe, and building a diverse culture of inclusion and connection.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
23
In FY20 the Company commenced the implementation of
a new global safety management system to support the
education, leadership and governance of WHS across all
sites and operations.
In FY21 the Company continued to focus on developing its
WHS management system and risk management principles
and to embed them into planning and decision making.
There has been an increased focus on incident, hazard, and
risk management across each of the workplaces.
The team at the Smeaton Grange processing facility is
committed to safe processes and a safe site, and the
excellent safety record that has been cultivated at the
facility is testament to this. As at 30 June 2021, the site
recorded over 500 consecutive days without a medically
treated incident.
The Company has undertaken an assessment of human
rights and other ethical risks in its supply chain to ensure
alignment with fundamental values of respect and integrity.
A modern slavery statement has also been developed and
published. This has formed the basis of an online training
programme which will be rolled out in FY22.
The Company continues to invest in people and systems to
build capability to meet its strict product quality and food
safety standards. It has also embedded monitoring and
compliance systems specific to the regulatory environments
in each market in which it operates.
Building a diverse culture of inclusion
and connection
Creating a positive workplace environment is vital to the
success of the business and the Company is focused on
creating a culture of inclusion and connection.
The Company’s Diversity Policy empowers and equips its
people leaders to foster a diverse and competent workplace.
The Company is particularly focused on enhancing gender
balance in the workforce, having set a target of a minimum
of 40% women and 40% men in leadership positions. At the
Board level, the Company has met this target with a 50%
split. The recent Executive Leadership Team appointments
have been more balanced, with the appointment of three
women. While this is behind target it is pleasing that at the
Senior Leadership Group level, female representation is at
43%. The Company acknowledges there is more to be done
in this area.
Gender is not the only form of diversity and many other
aspects including culture, heritage, ethnicity are vital to
driving diversity of experience and diversity of thought.
In FY22 the Company will focus on measuring and tracking
diversity beyond gender.
25%
1
Female Executive
Leadership leaders
50%
Female Board
members
43%
Female Senior
Leadership Group
Gender equality
1 Since 30 June 2021, a number of Executive Leadership Team
appointments have been announced. Adjusting for these
appointments, there will be 12 members of the Executive Leadership
Team comprising 9 males (75%) and 3 females (25%).

24
SUSTAINABILITY
Policy update
In FY21, the Company’s Diversity Policy was reviewed to
broaden its scope to incorporate inclusion. While the current
policy focuses on difference, the intent of the broader policy
is to foster an environment in which differences – whatever
they may be − are genuinely accepted and leveraged.
The updated policy will be implemented globally in FY22,
and accompanied with training to reinforce the importance
of understanding, accepting, and appreciating the value of
difference in all its forms.
Inclusion and connection
“Global Town Hall Meetings” are held in person and
virtually across all regions on a monthly basis and are an
important way to share information and connect across the
different offices. These “global” meetings are led by the
Chief Executive Officer and other members of the Executive
Leadership Team and provide a forum for other managers
and staff to present to the business. This initiative helps build
an environment of transparency and authenticity, where
information from across the business is shared and all team
members are encouraged to ask questions.
Training
Everyone has a right to a work environment free from
discrimination, harassment and bullying. In FY21, the
Company commenced “Positive Workplace Behaviours”
training with this to continue in FY22. The training is designed
to emphasise how all team members can individually focus on
respecting others and contributing to a positive workplace.
Executive Leadership Team appointments
and business reorganisation
In FY21, there were a number of changes to the Executive
Leadership Team (ELT). In February, David Bortolussi joined the
Company as Managing Director and Chief Executive Officer.
Eleanor Khor was promoted to the new role of Chief Strategy
Officer and Jaron McVicar’s role expanded to Chief Legal and
Sustainability Officer & Company Secretary.
In July the Company announced the reorganisation of its
Asia Pacific division. This restructure resulted in two of the
Company’s senior leaders, Xiao Li and Kevin Bush, being
promoted to be direct reports to the CEO and join the ELT,
demonstrating the depth of talent within the Company.
Yohan Senaratne joined the business in the role of Executive
General Manager – International.
In July, the Company also announced the appointment of
Edith Bailey as Chief Marketing Officer. Edith will join the
Company later in 2021 with Janelle Tong joining the ELT as
Chief Marketing Officer (Interim) until Edith commences.
Amanda Hart has been appointed Chief People & Culture
Officer and will commence in September.
Following the completion of the acquisition of 75% of
Mataura Valley Milk, Bernard May has also joined the ELT.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
25
“ Creating a positive workplace
environment is vital to the
success of the business and
the Company is focused on
creating a culture of inclusion
and connection.”
As at 30 June 2021NumberMale%Female%
Variance to LY

% females
Directors6350%350%10%
Executive Leadership Team
1
7686%114%(8%)
Senior Leadership Group472757%2043%7%
Managers885057%3843%(2%)
Remaining staff1886434%12466%10%
Total3351494 4%18656%2%
Age at 30 June 2021Number%Variance to LY
Under 303611%(1%)
30 to 5021564%(1%)
Over 508425%2%
Total335
Tenure as at 30 June 2021Number%Variance to LY
0 -2 Years17452%(17%)
2-5 Years10030%10%
5+ Years6118%7%
Total335
1 Since 30 June 2021, a number of ELT appointments have been announced. Adjusting for these
appointments, there will be 12 members of the ELT comprising 9 males (75%) and 3 females
(25%). David Bortolussi has been included in both the Director and ELT calculations.
* Developed by the United Nations, the Sustainable Development Goals (SDGs) or Global Goals
are a collection of 17 interlinked global goals designed to be a “blueprint to achieve a better
and more sustainable future for all”.
SDGs alignment
*

26
SUSTAINABILITY
Farmers play a vital role in the Company’s
supply chain, as stewards of the
environment and as vital contributors
to local communities. In addition, the
humane treatment of cows is of the
utmost importance.
The Company is committed to working with and
supporting farmers to enable them to work in harmony
with the environment and community.
Farm environmental plans
The a2 Milk Company has developed a global framework
for farm environmental plans.
The principles of the framework address the most material
aspects of environmental management in the dairy industry:
—Lowering GHG emissions
—Managing water quality and efficiency
—Managing soil quality
—Boosting on-farm biodiversity
—Improved nutrient (effluent) management
FARMS AND
ANIMAL WELFARE
FY21 progress
—Created and delivered guidelines and ambition
by region, including having regard to legislative
requirements
—Farm environmental plans reviewed by internal and
external stakeholders
—Reviewed and collaborated with Synlait on Synlait’s
Lead with Pride
TM
programme
—81% of farms supplying raw A1 protein free milk
had a farm environmental plan in place
Next steps
—Continue roll out of farm environmental plans leading
to a global approach to farm environmental plans
—Continue to evolve and refine farm environmental
plan template
—Review farm ambassador programme
—Establish updated farm environmental plan
programme with Mataura Valley Milk
Target
100%
of farms supplying raw A1 protein free milk to have a
farm environmental plan in place by the end of 2023
NATUR AL
CAPITAL
MANUFACTURING
CAPITAL
SOCIAL
CAPITAL
SDGs alignment

THE a
2 MILK COMPANY ANNUAL REPORT 2021
27
Animal welfare programme
Best practice standards for animal welfare on farms
are central to the responsible sourcing of raw A1
protein free milk.
The Company’s animal welfare programme meets
globally recognised standards set by the World
Organisation for Animal Health and upholds the
Five Freedoms framework for animal welfare.
a2MC’s approach to animal welfare is to drive
improvement, reduce risk and ensure farmers
are welfare centric. This is achieved through the
combination of increased audits, wider audit scope,
milk monitoring, on farm technology and training.
A number of extensions were developed into
the programme in FY21, supporting farmers to
establish systems for continuous improvement in
animal welfare. This approach aims to continue
identifying opportunities to further improve
programmes beyond the industry standard.
FY21 progress
—Created and delivered a2MC Standards for
farming partners in New Zealand
—Collaborated with Synlait to refine its “Lead with
Pride” animal welfare standards and audit tool
—Reviewed and amended current Australian
Standards to align the scaling of standards
—Embedded a corrective action process into
programmes for each region
—Identified and secured Professional Animal
Auditor Certification Organization (PAACO)
lead training for auditors
—Developed auditor and a2MC farm services team
training modules
—Launched milk monitoring programme pilot trial
with partner Synlait
—Developed a governance strategy for programme
and auditor review
Next steps
—Roll out auditor and a2MC farm services team
training modules
—Staged launch of upgraded animal welfare
programme and farmer training portal
—Implement robust audit scope and frequency
to increase visibility and reduce risk
—Undertake pilot technology trial on farm
to validate animal welfare auditing data
—Launch a2MC redefined Animal Welfare
programme with Mataura Valley Milk in FY22
Target
100%
of farms to be certified under an upgraded
programme by the end of 2023
SDGs alignment

28
SUSTAINABILITY
Understanding climate risks
and opportunities
Climate change is driving significant structural transformation
across the dairy sector.
The sector will need to take concerted action to manage the
risks and opportunities associated with a move towards a
lower carbon footprint. The risks include regulatory initiatives,
such as carbon pricing, and market risks, such as changes in
consumer preferences.
A major step in a2MC’s climate journey is developing
short, medium and long-term, climate-related targets.
The Company is committed to achieving net zero emissions
by 2050, and is focused on setting out an emissions
reduction pathway, including the metrics and targets to
measure progress.
In addition, the sector’s reliance on natural systems and
vulnerability to changes in temperature and rainfall will
also drive mounting physical risks across agriculture.
There will also be extraordinary opportunity for the sector
to realise increased productivity and efficiency through
new technologies and practices that lower emissions and
environmental impact throughout the supply chain.
As part of the ongoing management and integration of
climate risk, the Company undertook climate and broader
environmental, social and governance risk analysis as part
of the due diligence for the Mataura Valley Milk (MVM)
acquisition. The scope included physical, regulatory and
market risks, as well as mitigation strategies, and was an
important consideration in the overall evaluation of the MVM
opportunity. a2MC identified that it could contribute to a
meaningful improvement in MVM’s overall sustainability and
is committed to finding an alternative to the current coal
boiler utilised on the site.
In FY22, the Company will also update its climate scenario
analysis, reflecting the material changes to the business
model with the interdependencies of MVM. Building on
previous analysis, this will include a focus on second-order
structural impacts and risk inter-dependencies.
The Task Force on Climate-Related Financial Disclosures (TCFD)
framework continues to guide a2MC’s approach to climate
risk and opportunity analysis, measurement and disclosure.
The Company has made good progress in its commitment
to be fully TCFD aligned by the end of FY22. The Company
is well placed as legislative changes are introduced in New
Zealand, mandating climate-related financial disclosures in
the future.
a2MC’s targets will go beyond climate, encompassing key
aspects that underpin value creation across the six capitals, in
particular natural capital. While the Company had previously
expected to announce these in FY21, the acquisition of MVM
has meant that further detailed analysis is now required before
setting the targets which will have regard to the whole of the
Company’s business (including MVM). The Company is taking
a robust, data driven approach to setting ambitious and high
impact targets and expects to announce these in FY22.
CLIMATE
IMPACT
NATUR AL
CAPITAL
MANUFACTURING
CAPITAL
INTELLECTUAL
CAPITAL
GHG Emissions
1
(tCO
2
e)
FY21FY20
7
FY19
7
Total
356,587509,533420,600
Scope 1
2
250228206
Scope 2
3
1,7201,6131,507
Scope 3
4
354,617507,693418,887
Direct operations
5
(Scope 1, 2 and 3)
2,8623,8674,923
Third-party processing
and freight
76,140127,177103,863
On-farm
6
277,585378,489311,814
1 Greenhouse gas emissions, calculated as tonnes of carbon dioxide equivalent (tCO
2
e),
have been estimated using the approach recommended by The GHG Protocol. Emissions
and conversion factors were sourced from the National Greenhouse Accounts Factors
for Australia, the UK DEFRA GHG conversion factors and a range of other country-
specific sources. Where required, non-direct emissions sources have been estimated
using default and/or extrapolated emissions intensity rates to provide a more complete
picture of our Scope 1, 2 and 3 carbon footprint. Total emissions calculations exclude
packaging. We expect data quality to improve over time as we continue to work with
our partners.
2 Includes natural gas estimates and/or extrapolations for some information not yet
available.
3 Includes electricity estimates and/or extrapolations for some information not yet
available.
4 Due to the nature of Scope 3 emissions occurring outside of areas under our direct
control, this represents a conservative estimate of our Scope 3 emissions. Key emissions
sources include: on-farm emissions, energy consumed within third party processing
and warehouse facilities, fuel consumed in freight logistics and business travel, as well
as emissions associated with waste, recycling and water consumption. Where required,
estimations have been made where data was not able to be directly sourced or where
data was not yet released. This includes assumptions and extrapolations from available
data. Moving forward, we will endeavour to source as much actual data as possible to
improve data quality.
5 Includes our own fresh milk processing facility and corporate operations.
6 Calculated using actuals and industry estimations based on milk unit sales for all farms
in Australia, NZ, the US and the UK, excluding Synlait for which emissions are estimated
based on our proportion of total output.
7 GHG emissions have been restated to incorporate new available data from our partners.
Metric
FY21FY20FY19
Smeaton Grange
Total water usage (‘000 litres)
28,361
27,66224,744
Water efficiency (litres/litre of milk)
0.60.7
0.5
Waste water diverted to beneficial
land application (litres)
813,600
919,900516,500
Waste produced (tonnes)
28.0
28.925.6
Waste diversion
96.9%
97.1%95.4%
Energy consumption (kWh)
1.8m1.7m1.7m

THE a
2 MILK COMPANY ANNUAL REPORT 2021
29
GHG emissions reduction programme
In August 2020, the Company announced that it would pivot
from its approach of purchasing carbon credits to offset its
indirect greenhouse gas (GHG) emissions to establishing a
GHG emissions reduction programme within its supply chain.
For FY21, the financial contribution that would have funded
carbon credits offsets for indirect GHG emissions was
redeployed into environmental programmes that will directly
reduce GHG emissions over time.
Over 90% of GHG emissions (direct and indirect) from
a2MC’s supply chain are:
—On farm emissions (78%): methane emitted by cows in
particular
—Processing emissions (14%): fossil fuels used in
manufacturing process
A GHG emission reduction programme that addresses these
two aspects of a2MC’s supply chain was established in the
following broad groups:
—On-farm GHG reduction programme
• Methane inhibitor research projects
• Potential expanded farmer grant programmes
—Processing GHG reduction programme
• Future conversion of coal boilers
• Renewable energy investments
• Other processing opportunities
Methane is a challenging issue. While in FY21 and for
FY22 a2MC is progressing projects in methane reduction
from inhibitors such as asparagopsis, it may be that in the
future other scientific breakthroughs mean that alternative
solutions are adopted.
FY21 progress
—Progressed a research project to assess the
potential of asparagopsis in reducing methane
produced by A2/A2 cows
—Agreed to contribute to Synlait’s coal boiler
biomass conversion
—Committed to converting or replacing MVM’s
coal boiler in the future
—Installed solar panels at Smeaton Grange milk
processing plant and commenced an energy
audit of the site
Next steps
—Continue to progress the above components of
the GHG emissions reduction programme, with
a focus on methane inhibitors
—Detailed assessment of the GHG emissions
impact of Mataura Valley Milk in order to
measure and report in future years
—Develop more specific targets for GHG
emission reduction
Target
Net zero emissions by 2050
ON-FARMPROCESSINGDISTRIBUTION
AND OTHER
78%
TOTAL GHG EMISSIONS
277,500 t CO
2
-e
14%
TOTAL GHG EMISSIONS
~50,000 t CO
2
-e
8%
TOTAL GHG EMISSIONS
~30,000 t CO
2
-e
GHG footprint
SDGs alignment

30
SUSTAINABILITY
The Company is committed to high
standards of responsible conduct, social
responsibility and environmental
sustainability in all areas of the business.
Modern slavery
In 2018, Australia introduced the Modern Slavery Act 2018
(Cth, Australia). The purpose of this legislation it to outline
how businesses can take action and reduce the risk of
vulnerable workers in their operations and supply chains.
This Australian legislation requires certain companies based
or operating in Australia to prepare annual statements on
potential modern slavery risks in their operations and supply
chains, and the steps they have taken to address those risks.
In March 2021, a2MC submitted its first Modern Slavery
Statement in accordance with the Act. The Statement was
made on behalf of all the entities of the Group, which was
beyond the legislative requirement.
a2MC’s Statement addresses key modern slavery risks and
the Company’s actions in identifying and assessing these
risks. The key actions taken to mitigate these risks were
also outlined. A copy of the Statement is available on the
Company’s website at https://thea2milkcompany.com/
corporate-governance.
Responsible marketing
The a2 Milk Company’s approach to marketing infant
nutrition aligns to the core principle of supporting
breastfeeding as the primary form of infant nutrition. The
Company has developed a premium, high quality range of
infant nutrition products to provide parents an alternative
when breastfeeding is not an option.
Marketing of Infant nutritions (MAIF Agreement)
and Infant Nutrition Council
The Company is a signatory to the Marketing in Australia of
Infant nutrition: Manufacturers and Importers Agreement
(MAIF Agreement). a2MC is also a member of the Infant
Nutrition Council, which represents the major manufacturers
and marketers of infant nutrition in Australia and New
Zealand. All members abide by a Code of Conduct including
the MAIF Agreement and The Infant Nutrition Council Code
of Practice for the Marketing of Infant nutrition in New
Zealand (INC Code of Practice).
DOING BUSINESS
THE RIGHT WAY
FY21 progress
—Submitted Modern Slavery Statement reporting
on period from 1 July 2019 to 30 June 2020
—Updated due diligence process to address
modern slavery risks for new on-farm suppliers
—Reviewed indirect modern slavery risks in
operations and supply chain
—Implemented a general online training module
for all employees
—Conducted training for key employees in supply
chain, quality and regulatory compliance, and
people and culture teams
Next steps
—Undertake second-tier review of modern slavery
risks
—Review and analyse modern slavery risks in
relation to MVM
—Continue to review indirect modern slavery risks
in operations and supply chain
—Continue to update internal policies
—Consider expanding due diligence process for
higher risk new suppliers
—Publish The a2 Milk Company’s next Modern
Slavery Statement by 31 December 2021
SOCIAL
CAPITAL
SDGs alignment
MANUFACTURING
CAPITAL

31
THE a
2 MILK COMPANY ANNUAL REPORT 2021
Packaging is an increasingly important
issue for many stakeholders, including
consumers.
The Company has a vision for as much of its packaging
as possible to be reusable, recyclable or compostable.
Achieving this will require a region by region and product
by product approach over time. In FY21 there was a focus
on products sold in Australia.
Australia first introduced the ‘2025 National Packaging
Targets’ in 2018 and they were updated in 2020. The
targets require a complete and systemic change to the way
Australia creates, collects and recovers product packaging,
and are an important step on Australia’s journey towards a
circular economy for packaging.
The targets are overseen by the Australian Packaging
Covenant Organisation (APCO) and, in 2021, a2MC became
a signatory to the Covenant, strengthening the Company’s
long-term commitment to sustainable packaging.
Being a signatory to the Covenant, a2MC is required
to report on its progress on an annual basis as well as
publishing an action plan. This covers all Australian sales
which captures a significant proportion of the Company’s
product portfolio, not only the fresh milk products
produced in Australia.
Sustainable disposal of excess stock
During FY21, a2MC commenced a process to dispose of
excess stock. This process is ongoing. The Company sought
opportunities to make this excess stock available for human
consumption. Donations to those in need around the world
would have been the preferred solution as the stock is still
safe for human consumption. However the Company was
restricted in its ability to do this due to challenges in various
regions. To the extent possible in different regions, excess
stock is being made available for animal consumption or
disposed of in a manner which is as sustainable as possible.
The packaging will then be further segregated into its
recyclable components and recycled.
PACKAGING
FY21 progress
—Submission of APCO annual report (March 2021)
and action plan (May 2021) to advancing packaging
sustainability outcomes
—Conducted an extensive review on recycled content
alternatives available for the packaging materials
—Investigated closed-loop recycling programmes
Next steps
—Continue to investigate and look towards
innovative packaging design for sustainable
solutions
—Execute against the APCO action plan
—Operationalise sustainable packaging initiatives
within the business
—Target setting for products sold outside of Australia
Targets
Committed to Australia’s 2025 National Packaging
Target s
MANUFACTURING
CAPITAL
NATUR AL
CAPITAL
100%
reusable, recyclable or
compostable packaging
50%
of average recycled
content included in
packaging (revised from
30% in 2020)
70%
of plastic packaging being
recycled or composted
The phase out of
problematic and
unnecessary single-use
plastics packaging
SDGs alignment
Metric
FY21FY20FY19
% of fully recyclable packaging
97.3%
95.9%95.5%

32
SUSTAINABILITY
The Company recognises that it has a
responsibility to support and contribute
to the communities in which it operates.
a2MC strives to make a difference by
helping communities thrive, supporting
organisations who are helping to create
a brighter future for children and
families, as well as the Company’s
farming communities.
Programmes are well aligned to the Company’s purpose
and are focused on proactive wellness.
a2MC has developed a community support framework
to guide how to engage, invest, and give back to the
communities where it operates, act on relevant social
issues, and contribute to programmes that employees are
passionate about.
Support takes the form of funds and product donations to
help communities survive and thrive. As a business founded
in innovation, a2MC also believes that science plays an
essential role in enhancing the health and wellbeing of
communities over time.
FY21 support
The Company supported the following
organisations in FY21:
SUPPORTING
COMMUNITIES
SOCIAL
CAPITAL
INTELLECTUAL
CAPITAL
Community engagement and investment programme framework
SDGs alignment
Child and parent
wellbeing
Helping farming
communities be
their best
Give back to
those in need
1.2.3.
4.
Foster inclusion and diversity
—Proactive wellness for children
& families
—Research to investigate good
nutrition impact on health
outcomes
—Supporting a ‘connected’
community
—Mental wellbeing support
—Support physical health and
active lifestyle
—Product donations
—Disaster/incident support for
communities
New Zealand
—Cure Kids
—KidsCan
China
—International
Women’s Day
(as well as Australia
and New Zealand)
USA
—Feeding America
Australia
—Foodbank – financial
donation and product
donation
—Landcare farmer grant
programme
—The Song Room
—Norco Farms flooding
support

THE a
2 MILK COMPANY ANNUAL REPORT 2021
33
COMMUNITY SPOTLIGHT
SPOTLIGHT
Foodbank (Australia)
The a2 Milk Company has supported Foodbank with
fresh milk product donations in New South Wales
and Victoria since 2015, scaling up support in times of
heightened need.
In FY21 a2MC formalised the partnership, becoming
a Foodbank National Donor Partner. In FY21 a2MC
product donations totalled 240,219 kgs, which is the
equivalent of 432,830 meals distributed to people
in need.
In FY22 a2MC will be increasing its support with
Foodbank in a more proactive way, with sponsorship
of their School Breakfast Programme. This is a new
partnership and aims to assist indigenous school children
to have greater access to breakfast.
Foodbank Rumbling Tummies Report 2018 found that
1 in 5 Australian children experience food insecurity,
and that children’s concentration levels, engagement in
class activities and school performance improved as a
result of receiving food assistance. The a2MC team are
all very proud of the partnership with Foodbank and its
alignment with the Company’s values.
SPOTLIGHT
Cure Kids
Cure Kids is the largest funder of child health research
in New Zealand after the government.
The a2 Milk Company is proud to have supported
Cure Kids Professorial Chair, Andrew Day, over
the past two years to research digestive health for
children, with a special focus on coeliac disease and
irritable bowel disease.
In FY21, a2MC also made a significant donation to
Cure Kids’ Elliott-Caughey 50th Anniversary Fund.
The funding will contribute to a multifactorial research
consortium effort into the prevention, diagnosis and
treatment of Rheumatic Fever and Rheumatic Heart
Disease in NZ children.
This is a continuation of research support from a2MC
into children’s health and nutrition.
$200k
donated to Cure Kids
towards research
240,219kgs
of product donations to
people in need in FY21
Equivalent to
432,830
meals
Next steps
China
In FY22 in China, a2MC will be helping parents and children
to thrive. The Company will be supporting school children
with nutrition stations and product donations – ensuring
they have good nutrition to help drive better educational
outcomes in rural communities.
For families, a2MC will be working with nutritionists
to develop customised health care plans and donating
milk powder products. This will help provide education
and support to parents in rural communities and urban
impoverished communities.
United States
Aligned with helping children thrive, in early FY22, the
USA team is partnering with Feed the Children to send
children back to school with confidence. The Company is
donating 10% of every carton sold between 9 August and
2 September 2021 up to $100,000, to providing food and
supplies to school children, giving children what they need
to do and be their best.

34
SUSTAINABILITY
RISK
MANAGEMENT
Sources of risk (or risks associated with...)How we are responding
The ongoing impacts from the COVID-19 global
pandemic
COVID-19 has caused unprecedented social and economic
disruption globally. Until the pandemic is contained, the business
remains exposed to a number of ongoing risks, including:
–a weakened global economy – characterised by elevated levels
of unemployment and reduced disposable income – resulting
in disruptions to consumer buying patterns and/or softening
consumer demands in key markets;
–demographic impacts (including reduction in birth-rates) in key
markets resulting in reduced demand for a2MC’s infant nutrition
products;
–disruptions to sales channels – including the effect of ongoing travel
restrictions on reseller channels between Australia and China; and
–recurring waves of infection and/or emergence of more virulent
strains of COVID-19 through key markets of Australia, New Zealand,
China and the US, which could result in future disruptions to supply
chains, retail trading conditions, consumer buying patterns and
sales growth in these markets.
Notwithstanding the significant business disruption caused by COVID-19 to date, management remains focused on a number of key
initiatives to minimise the impact of COVID-19 on business performance, including:
–the adoption of robust infection control protocols in line with all relevant government requirements, particularly across our
manufacturing facilities;
–flexible working arrangements for staff combined with enhanced remote working technologies;
–continued close cooperation with Synlait Milk to maintain continuity of infant milk nutrition supply, and third-party suppliers in Australia
and the US to maintain continuity of liquid milk supply;
–enhanced inventory surveillance and reporting to maintain stock control through the supply chain; and
–continued strong investment in brand to grow share in core markets including an agile approach to the execution of sales and
marketing programmes, adjusting where appropriate to reflect shifts in consumer buying patterns and channel dynamics.
The sale of nutritional food products
a2MC supplies food products for human consumption, including
complex nutritional products for consumption by infants and
children. As a result, the Company is inherently exposed to potential
product quality, food safety and/or food integrity events (including
counterfeiting or tampering) that may cause injury to consumers,
disruption to business activities, and overall damage to the
Company’s brand and reputation.
The Company has a range of product quality and food safety systems, protocols and technologies in place to minimise risk in this area,
including:
–food safety and quality management systems;
–high-quality third-party manufacturing partners;
–positive release protocols (comprehensive testing of product quality and protein integrity prior to the release of finished product);
–testing of distributed products in selected markets;
–employment of product innovation and technology to improve product security e.g. tamper-evident lids;
–implementation of a new traceability system;
–product recall and crisis management systems; and
–consumer support systems.
Increasing competitive intensity
a2MC has experienced significant growth in recent years, driven
predominantly by the success of its liquid milk businesses in Australia
and the US, and its infant nutrition businesses in Australia and China.
As a result, the Company is inherently exposed to:
–increasing competitive intensity, which could lead to an erosion of
a2MC’s market share positions in core markets; and
–potential infringements of our intellectual property rights resulting
from third-party conduct or claims against such IP, which may lead
to protracted litigation and/or erosion of our brand assets.
The Company’s strategic growth priorities seek to ensure it remains competitive and continues to deliver long-term growth in existing
and new markets. The Company’s strategic growth priorities are aided by:
–significant and ongoing investment in brand building activities globally;
–new and unique product offerings in selected markets;
–continued investment in developing and further broadening the Company’s trademark and patent portfolio including building exclusivity
in trademarks in existing and future markets and expansion of the Company’s suite of patent families;
–monitoring of third-party IP applications and activity;
–monitoring infringement of the Company’s IP and taking action to protect it; and
–documenting and embedding proprietary know-how across systems and processes.
Doing business in international markets
Due to the Company’s expanding footprint, it is exposed to various
risks associated with conducting business in international markets
including in Australia, China and the US. As a result, the Company
is inherently exposed to:
–changing macro trends (including demographic, economic and
social trends), which can impact the size of addressable markets
and/or the complexity of operating within those markets;
–dynamic geopolitical and regulatory environments in which
government actions influence or restrict international trade in
products and/or channels to market. This can occur through the
use of tariffs, quotas, price controls, taxes and non-tariff barriers
such as product registrations, competition and consumer laws;
–product compliance events, including the risk of (i) a failure to
renew the SAMR product registration
1
for China label infant
nutrition beyond its expiry in September 2022 and (ii) costs
associated with ongoing product compliance;
–fluctuations in foreign currency exchange rates; and
–geographically dispersed management teams.
The Company’s efforts to effectively navigate the complexities of international markets are supported by:
–strong investment in brand to support share growth in the face of evolving macro trends;
–ongoing investment in strategic advisory services to strengthen the Company’s understanding of medium and long-term trends, and to
inform its strategic planning;
–strong understanding of local standards, regulations and guidelines combined with sophisticated expert monitoring of evolving
regulatory requirements in all markets in which we operate;
–close partnership with infant nutrition manufacturer, Synlait Milk, which holds:
–GACC
2
registration for its Dunsandel manufacturing facility, allowing canned infant nutrition to be exported to China; and
–SAMR product registration for the importation of the Company’s China label infant nutrition through to September 2022;
–strong strategic partnerships with Chinese state-owned entities, as detailed in ‘Reliance on strategic partnerships’ below;
–a multi-product, multi-channel route to market strategy for the sale of infant nutrition into China;
–a treasury management function responsible for oversight and monitoring of foreign currency exposures; and
–strong and experienced local management teams in core markets of Australia, China and the US with frequent engagement between
these teams and senior leadership.
Risk management is an essential part of
growing and developing a sustainable business.
Effective risk management anticipates risk and develops
strategies to manage potential risk events, helping to drive
informed and consistent decision making and effective and
efficient allocation of capital and resources. The Company’s risk
management programme assists it in identifying, assessing,
monitoring and managing business risk, and recognising
material changes to its risk profile.
The Risk Management Policy outlines the programme the
Company has implemented to deliver appropriate risk
management within its processes, systems and culture.
A copy of the Risk Management Policy is available at
https://thea2milkcompany.com/corporate-governance.
Responding to challenging trading
conditions during FY21
During the year, the COVID-19 global pandemic (COVID-19)
continued to drive unprecedented levels of uncertainty and
volatility, which significantly impacted markets in which the
Company trades and consequently the performance of both
a2MC and many of its competitors.
The Company’s infant nutrition category was materially impacted
by COVID-19, particularly in terms of disruption in the daigou/
reseller, ANZ retail and cross border e-commerce (CBEC)
channels, which had a negative impact on sales and ultimately
led to excess channel inventory. The Company’s understanding
of channel inventory was exacerbated by difficulties with
visibility, particularly over third-party inventory levels.
Following a Board-initiated comprehensive review of inventory
by management, aggressive action was taken to address the
particular challenges associated with channel inventory. This
has included a rebalancing of inventory levels by reducing sell-in
to the daigou/reseller, CBEC and China label channels, along
with actions to improve the dating of inventory held by
customers and distributors. These actions are proving to be
effective with early signs of price stabilisation in the CBEC
channel and some recovery in the daigou/reseller channel.
The Company has enhanced its inventory management systems
in response to the challenges experienced during FY21. The
Company is also exploring options to implement additional
systems and processes to improve channel inventory visibility
and demand and supply planning.
Identifying and responding to risk
The Company’s risk assessment programme begins with the
identification of key sources of risk relevant to its business
activities. This approach facilitates a comprehensive assessment
of potential risk events and allows appropriate management
strategies to be subsequently employed to deliver appropriate
risk management within the Company’s systems and culture.
The following table identifies significant sources of risk for the
business, including key economic, environmental and social risks
with the potential to materially impact the Company’s ability to
achieve its objectives. It also summarises how the Company is
responding to those risks.

THE a
2 MILK COMPANY ANNUAL REPORT 2021
35
Sources of risk (or risks associated with...)How we are responding
The ongoing impacts from the COVID-19 global
pandemic
COVID-19 has caused unprecedented social and economic
disruption globally. Until the pandemic is contained, the business
remains exposed to a number of ongoing risks, including:
–a weakened global economy – characterised by elevated levels
of unemployment and reduced disposable income – resulting
in disruptions to consumer buying patterns and/or softening
consumer demands in key markets;
–demographic impacts (including reduction in birth-rates) in key
markets resulting in reduced demand for a2MC’s infant nutrition
products;
–disruptions to sales channels – including the effect of ongoing travel
restrictions on reseller channels between Australia and China; and
–recurring waves of infection and/or emergence of more virulent
strains of COVID-19 through key markets of Australia, New Zealand,
China and the US, which could result in future disruptions to supply
chains, retail trading conditions, consumer buying patterns and
sales growth in these markets.
Notwithstanding the significant business disruption caused by COVID-19 to date, management remains focused on a number of key
initiatives to minimise the impact of COVID-19 on business performance, including:
–the adoption of robust infection control protocols in line with all relevant government requirements, particularly across our
manufacturing facilities;
–flexible working arrangements for staff combined with enhanced remote working technologies;
–continued close cooperation with Synlait Milk to maintain continuity of infant milk nutrition supply, and third-party suppliers in Australia
and the US to maintain continuity of liquid milk supply;
–enhanced inventory surveillance and reporting to maintain stock control through the supply chain; and
–continued strong investment in brand to grow share in core markets including an agile approach to the execution of sales and
marketing programmes, adjusting where appropriate to reflect shifts in consumer buying patterns and channel dynamics.
The sale of nutritional food products
a2MC supplies food products for human consumption, including
complex nutritional products for consumption by infants and
children. As a result, the Company is inherently exposed to potential
product quality, food safety and/or food integrity events (including
counterfeiting or tampering) that may cause injury to consumers,
disruption to business activities, and overall damage to the
Company’s brand and reputation.
The Company has a range of product quality and food safety systems, protocols and technologies in place to minimise risk in this area,
including:
–food safety and quality management systems;
–high-quality third-party manufacturing partners;
–positive release protocols (comprehensive testing of product quality and protein integrity prior to the release of finished product);
–testing of distributed products in selected markets;
–employment of product innovation and technology to improve product security e.g. tamper-evident lids;
–implementation of a new traceability system;
–product recall and crisis management systems; and
–consumer support systems.
Increasing competitive intensity
a2MC has experienced significant growth in recent years, driven
predominantly by the success of its liquid milk businesses in Australia
and the US, and its infant nutrition businesses in Australia and China.
As a result, the Company is inherently exposed to:
–increasing competitive intensity, which could lead to an erosion of
a2MC’s market share positions in core markets; and
–potential infringements of our intellectual property rights resulting
from third-party conduct or claims against such IP, which may lead
to protracted litigation and/or erosion of our brand assets.
The Company’s strategic growth priorities seek to ensure it remains competitive and continues to deliver long-term growth in existing
and new markets. The Company’s strategic growth priorities are aided by:
–significant and ongoing investment in brand building activities globally;
–new and unique product offerings in selected markets;
–continued investment in developing and further broadening the Company’s trademark and patent portfolio including building exclusivity
in trademarks in existing and future markets and expansion of the Company’s suite of patent families;
–monitoring of third-party IP applications and activity;
–monitoring infringement of the Company’s IP and taking action to protect it; and
–documenting and embedding proprietary know-how across systems and processes.
Doing business in international markets
Due to the Company’s expanding footprint, it is exposed to various
risks associated with conducting business in international markets
including in Australia, China and the US. As a result, the Company
is inherently exposed to:
–changing macro trends (including demographic, economic and
social trends), which can impact the size of addressable markets
and/or the complexity of operating within those markets;
–dynamic geopolitical and regulatory environments in which
government actions influence or restrict international trade in
products and/or channels to market. This can occur through the
use of tariffs, quotas, price controls, taxes and non-tariff barriers
such as product registrations, competition and consumer laws;
–product compliance events, including the risk of (i) a failure to
renew the SAMR product registration
1
for China label infant
nutrition beyond its expiry in September 2022 and (ii) costs
associated with ongoing product compliance;
–fluctuations in foreign currency exchange rates; and
–geographically dispersed management teams.
The Company’s efforts to effectively navigate the complexities of international markets are supported by:
–strong investment in brand to support share growth in the face of evolving macro trends;
–ongoing investment in strategic advisory services to strengthen the Company’s understanding of medium and long-term trends, and to
inform its strategic planning;
–strong understanding of local standards, regulations and guidelines combined with sophisticated expert monitoring of evolving
regulatory requirements in all markets in which we operate;
–close partnership with infant nutrition manufacturer, Synlait Milk, which holds:
–GACC
2
registration for its Dunsandel manufacturing facility, allowing canned infant nutrition to be exported to China; and
–SAMR product registration for the importation of the Company’s China label infant nutrition through to September 2022;
–strong strategic partnerships with Chinese state-owned entities, as detailed in ‘Reliance on strategic partnerships’ below;
–a multi-product, multi-channel route to market strategy for the sale of infant nutrition into China;
–a treasury management function responsible for oversight and monitoring of foreign currency exposures; and
–strong and experienced local management teams in core markets of Australia, China and the US with frequent engagement between
these teams and senior leadership.
1 Registration achieved by Synlait Milk and given by China’s State Administration of Market Regulation (SAMR) in September 2017 for the Company’s China
label infant nutrition. SAMR requires registration to be held in the name of the manufacturer as opposed to the brand owner.
2 General Administration of Customs of the People’s Republic of China.

36
SUSTAINABILITY
Sources of risk (or risks associated with...)How we are responding
Reliance on strategic partnerships
The Company’s success has been underpinned by key relationships with strategic partners, including key supply and distribution
partners. As a result, the business is inherently exposed to the operations of key partners changing in a material and adverse way, or
as the result of one or more partners reducing their support for a2MC. This could impact the Company’s ability to maintain supply to
its customers and maintain its position in existing markets or enter new markets.
Potential exposures are mitigated through the proactive management of partner relationships centred on shared long-term value
creation, which includes:
–a focus on developing strong, ethical, long-term commercial relationships with multiple supply chain partners in different geographic
locations;
–due diligence on supply chain partners before entering into commercial agreements;
–long-term partnership with dairy nutritionals manufacturer, Synlait Milk, governed by a formal manufacturing agreement, and
complemented by the Company’s equity interest in Synlait Milk;
–a strategic relationship with Fonterra Co-operative Group Limited, providing alternative supply opportunities;
–a strong partnership with China State Farm Holding Shanghai Co., Ltd (CSF), a2MC’s exclusive import agent for its China label products;
–a controlling 75% interest in Mataura Valley Milk (MVM) (from 30 July 2021) to support the growth of the Company’s nutritionals
business, provide supplier and geographic diversification, and strengthen its relationship with key partners in China (including China
Animal Husbandry Group);
–contracts providing access to milk pools that exceed the Company’s current usage requirements; and
–multiple milk processors contracted in Australia and the US, mitigating reliance on a single processor in these regions.
Climate change and reliance on natural resources
As a business that is heavily dependent on agricultural inputs, a2MC is exposed to short, medium and long-term climate and
environmental risks. These include both supply and demand side risks including:
–physical risks resulting from acute and chronic changes in climate. The productivity of a2MC’s agricultural base could be impacted by
changes in temperature and rainfall resulting from climate change, generating potential supply chain disruptions or greater volatility
in input costs;
–transition risks resulting from regulatory or market pressures associated with on-farm emissions. On-farm emissions account for 78%
of a2MC’s GHG emissions footprint. These emissions could be exposed to carbon pricing, generating increased input costs or shifts
in consumer preferences due to growing environmental concerns; and
–other environmental risks such as deforestation, animal disease outbreak, biodiversity impacts, soil and air quality impacts, water use
and animal welfare. The growth of conscious consumerism and increasing expectations around the environmental responsibility of
consumer products means that exposure to these risks could negatively affect the Company’s brand reputation. This is particularly
significant as demands for transparency around these issues increase and supply chains come under greater scrutiny.
The Company is responding to growing demands for transparency by integrating the recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD) into its strategic planning and risk management processes, with the intention of adopting the full
TCFD disclosure by the end of FY22. More information regarding climate impact on page 28.
The Company is managing its exposure to climate and environmental risks by:
–assessing baselines and short, medium and long-term targets
3
across GHG emissions, energy and water consumption, waste-to-landfill
and product packaging within the Company’s direct operations and supply chain;
–building long-term supply arrangements with partners, promoting positive environmental and social sustainability activities and
initiatives and targeting the implementation of environmental plans on all supplying farms by the end of 2023;
–sourcing milk from diversified milk pools within New Zealand, Australia and the US and incorporating climate impacts into future
sourcing strategies;
–sourcing milk from farms in close proximity to the Company’s processing facilities wherever practicable, reducing the need to transport
milk over long distances from other areas;
–implementing a best practice globally certified animal welfare standard across a2MC’s operations, aligned to the Five Freedoms
Framework and Animal Welfare Aims; and
–investing directly in emissions reduction initiatives to help mitigate climate change.
Reliance on talent and culture
The Company relies on the talent of its people and the effectiveness of its culture for success. Therefore, keeping its people safe and
engaged is a top priority. The competitive nature of the employment market also contributes to risks associated with managing the
Company’s talent and culture:
–actual or potential harm to all team members and other persons at the workplace (including from non-compliance with applicable
laws and regulations). In addition to any harm itself, this could also result in financial penalties, drop in team morale and productivity,
increased insurance costs and damage to the Company’s reputation;
–loss of key management personnel, in addition to the potential loss of their teams, could also have a material effect on the
Company’s operating and financial performance;
–resource constraints resulting from business demands out-pacing talent acquisition; and
–building organisational capability through the recruitment of external hires carries with it the potential for transition risk.
The Company is committed to the safety of its people and has established systems and processes, based on its understanding of global
practices, to identify, control, report, investigate and monitor health (including mental wellbeing) and safety risks across the business.
Believing that well-managed, engaged and effective teams create long-term business success, the Company’s efforts are aided by:
–a rigorous recruitment and selection process, followed by thorough induction and onboarding;
–an effective employee retention strategy combining both short and long-term financial incentives with career development
opportunities to motivate and engage key personnel;
–a series of bespoke wellbeing webinars designed to provide employees with practical strategies to navigate challenges and build
resilience, including through extended periods of working from home;
–strong core values – bold passion, pioneering spirit, humility, respect and integrity – which assist both the Company and employees in
achieving their goals;
–increasing the depth and capability of the management pool to support future growth;
–succession planning to ensure continuity of knowledge, skills and experience; and
–alignment of remuneration with a2MC’s values, objectives and risk tolerances.
Rapid change in information technology (IT)
The rapid change in IT provides both opportunities and risks. Incidents of cyber-attack and the release of data have become an
increasing threat for all companies. The cyber security and data environment is continuously evolving and, as a result, we are
inherently exposed to inadequate IT security leading to a compromise of the Company’s IT systems and potential data theft, data loss
or corruption. Such a compromise could result in economic or reputational loss.
The Company remains focused on further strengthening its governance, processes and technology controls to protect the integrity and
privacy of data and maintain compliance with regulatory requirements.
The recent implementation of new enterprise resource planning (ERP) software will improve the overall IT architecture and reduce the
number of applications in use across the business, allowing the protection protocols in place to be streamlined.
The Company continues to build its cyber resourcing capability and improve its cyber security systems and protections, including
restricting access to sensitive data, conducting regionally-specific cyber security audits, implementing more sophisticated cyber
tracking and monitoring tools and maintaining cyber security insurance.
a2MC has also identified the need to complete third-party cyber risk reviews and is currently agreeing scope and timing with identified
parties.
RISK
MANAGEMENT

THE a
2 MILK COMPANY ANNUAL REPORT 2021
37
Sources of risk (or risks associated with...)How we are responding
Reliance on strategic partnerships
The Company’s success has been underpinned by key relationships with strategic partners, including key supply and distribution
partners. As a result, the business is inherently exposed to the operations of key partners changing in a material and adverse way, or
as the result of one or more partners reducing their support for a2MC. This could impact the Company’s ability to maintain supply to
its customers and maintain its position in existing markets or enter new markets.
Potential exposures are mitigated through the proactive management of partner relationships centred on shared long-term value
creation, which includes:
–a focus on developing strong, ethical, long-term commercial relationships with multiple supply chain partners in different geographic
locations;
–due diligence on supply chain partners before entering into commercial agreements;
–long-term partnership with dairy nutritionals manufacturer, Synlait Milk, governed by a formal manufacturing agreement, and
complemented by the Company’s equity interest in Synlait Milk;
–a strategic relationship with Fonterra Co-operative Group Limited, providing alternative supply opportunities;
–a strong partnership with China State Farm Holding Shanghai Co., Ltd (CSF), a2MC’s exclusive import agent for its China label products;
–a controlling 75% interest in Mataura Valley Milk (MVM) (from 30 July 2021) to support the growth of the Company’s nutritionals
business, provide supplier and geographic diversification, and strengthen its relationship with key partners in China (including China
Animal Husbandry Group);
–contracts providing access to milk pools that exceed the Company’s current usage requirements; and
–multiple milk processors contracted in Australia and the US, mitigating reliance on a single processor in these regions.
Climate change and reliance on natural resources
As a business that is heavily dependent on agricultural inputs, a2MC is exposed to short, medium and long-term climate and
environmental risks. These include both supply and demand side risks including:
–physical risks resulting from acute and chronic changes in climate. The productivity of a2MC’s agricultural base could be impacted by
changes in temperature and rainfall resulting from climate change, generating potential supply chain disruptions or greater volatility
in input costs;
–transition risks resulting from regulatory or market pressures associated with on-farm emissions. On-farm emissions account for 78%
of a2MC’s GHG emissions footprint. These emissions could be exposed to carbon pricing, generating increased input costs or shifts
in consumer preferences due to growing environmental concerns; and
–other environmental risks such as deforestation, animal disease outbreak, biodiversity impacts, soil and air quality impacts, water use
and animal welfare. The growth of conscious consumerism and increasing expectations around the environmental responsibility of
consumer products means that exposure to these risks could negatively affect the Company’s brand reputation. This is particularly
significant as demands for transparency around these issues increase and supply chains come under greater scrutiny.
The Company is responding to growing demands for transparency by integrating the recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD) into its strategic planning and risk management processes, with the intention of adopting the full
TCFD disclosure by the end of FY22. More information regarding climate impact on page 28.
The Company is managing its exposure to climate and environmental risks by:
–assessing baselines and short, medium and long-term targets
3
across GHG emissions, energy and water consumption, waste-to-landfill
and product packaging within the Company’s direct operations and supply chain;
–building long-term supply arrangements with partners, promoting positive environmental and social sustainability activities and
initiatives and targeting the implementation of environmental plans on all supplying farms by the end of 2023;
–sourcing milk from diversified milk pools within New Zealand, Australia and the US and incorporating climate impacts into future
sourcing strategies;
–sourcing milk from farms in close proximity to the Company’s processing facilities wherever practicable, reducing the need to transport
milk over long distances from other areas;
–implementing a best practice globally certified animal welfare standard across a2MC’s operations, aligned to the Five Freedoms
Framework and Animal Welfare Aims; and
–investing directly in emissions reduction initiatives to help mitigate climate change.
Reliance on talent and culture
The Company relies on the talent of its people and the effectiveness of its culture for success. Therefore, keeping its people safe and
engaged is a top priority. The competitive nature of the employment market also contributes to risks associated with managing the
Company’s talent and culture:
–actual or potential harm to all team members and other persons at the workplace (including from non-compliance with applicable
laws and regulations). In addition to any harm itself, this could also result in financial penalties, drop in team morale and productivity,
increased insurance costs and damage to the Company’s reputation;
–loss of key management personnel, in addition to the potential loss of their teams, could also have a material effect on the
Company’s operating and financial performance;
–resource constraints resulting from business demands out-pacing talent acquisition; and
–building organisational capability through the recruitment of external hires carries with it the potential for transition risk.
The Company is committed to the safety of its people and has established systems and processes, based on its understanding of global
practices, to identify, control, report, investigate and monitor health (including mental wellbeing) and safety risks across the business.
Believing that well-managed, engaged and effective teams create long-term business success, the Company’s efforts are aided by:
–a rigorous recruitment and selection process, followed by thorough induction and onboarding;
–an effective employee retention strategy combining both short and long-term financial incentives with career development
opportunities to motivate and engage key personnel;
–a series of bespoke wellbeing webinars designed to provide employees with practical strategies to navigate challenges and build
resilience, including through extended periods of working from home;
–strong core values – bold passion, pioneering spirit, humility, respect and integrity – which assist both the Company and employees in
achieving their goals;
–increasing the depth and capability of the management pool to support future growth;
–succession planning to ensure continuity of knowledge, skills and experience; and
–alignment of remuneration with a2MC’s values, objectives and risk tolerances.
Rapid change in information technology (IT)
The rapid change in IT provides both opportunities and risks. Incidents of cyber-attack and the release of data have become an
increasing threat for all companies. The cyber security and data environment is continuously evolving and, as a result, we are
inherently exposed to inadequate IT security leading to a compromise of the Company’s IT systems and potential data theft, data loss
or corruption. Such a compromise could result in economic or reputational loss.
The Company remains focused on further strengthening its governance, processes and technology controls to protect the integrity and
privacy of data and maintain compliance with regulatory requirements.
The recent implementation of new enterprise resource planning (ERP) software will improve the overall IT architecture and reduce the
number of applications in use across the business, allowing the protection protocols in place to be streamlined.
The Company continues to build its cyber resourcing capability and improve its cyber security systems and protections, including
restricting access to sensitive data, conducting regionally-specific cyber security audits, implementing more sophisticated cyber
tracking and monitoring tools and maintaining cyber security insurance.
a2MC has also identified the need to complete third-party cyber risk reviews and is currently agreeing scope and timing with identified
parties.
3 The Company is currently in the process of determining targets to manage climate-related risks and opportunities, in line with the
recommendations of the TCFD framework.

GOVER NANCE
CORPORATE
38

GOVER NANCE
CONTENTS
Directors 40
Executive Leadership Team 42
Governance 44
Remuneration 48
THE a
2 MILK COMPANY ANNUAL REPORT 2021
39

DIRECTORS
David Hearn
Chair and
Non-Executive Director
Master of Arts
Julia Hoare
Deputy Chair and Independent,
Non-Executive Director
Bachelor of Commerce, FCA,
Chartered Member of the Institute
of Directors (NZ)
David Bortolussi
Managing Director and CEO
Bachelor of Commerce
(University of Melbourne), FCA, F FIN,
Member of the Australian Institute of
Company Directors (MAICD)
Warwick Every-Burns
Independent,
Non-Executive Director
Advanced Management Program
(Harvard)
Pip Greenwood
Independent,
Non-Executive Director
Bachelor of Laws
(LL.B.), University of Canterbury (NZ)
Bessie Lee
Independent,
Non-Executive Director
Master of Science (Illinois State
University)
Director since February 2014Director since November 2013Director since February 2021Director since August 2016Director since July 2019Director since February 2021
David has been a director of the Company
since 5 February 2014, and Chair since 30
March 2015. He is also a member of the
Nomination Committee.
David has deep experience and skills
in executive management, sales and
marketing and strategy development in
fast moving consumer goods (FMCG) in
international markets. He has held senior
executive roles including Chief Executive
Officer or Managing Director roles for
FMCG companies including Goodman
Fielder Limited, UB Snack Foods Europe/
Asia, Pepsico foods Europe, Del Monte
UK, Smith’s Crisps and for the marketing
services group, Cordiant Communications
Group.
In addition to his Company directorship,
David is also Chairman of SafeStore
Holdings plc (a UK FTSE listed company)
and Lovat Partners Limited.
David resides in the United Kingdom.
Julia has been a director of the Company
since 19 November 2013, and Deputy
Chair since 30 March 2015. She is also
Chair of the Audit and Risk Management
Committee and a member of the
Nomination Committee.
Prior to joining the Board, Julia had
extensive chartered accounting experience
in Australia, the UK and New Zealand and
was a partner with PwC NZ for 20 years.
She was a member of the New Zealand
External Reporting Advisory Panel from
2013 to 2021, a body designed to
support the standard setting process
of the New Zealand External Reporting
Board. She was also a member of The
New Zealand Sustainable Finance Forum
Leadership Group which released the
Roadmap for Action Final Report in
November 2020, the aim of which is to
identify genuine, practical ways to ensure
the financial system is supporting and not
hindering the economic transition required
for New Zealand to meet its international
commitments under the Paris Agreement
Sustainable Development Goals.
In addition to her Company directorship,
Julia is a director of Port of Tauranga
Limited, Auckland International Airport
Limited and Meridian Energy Limited. She
is also the President of the New Zealand
Institute of Directors.
Julia resides in New Zealand.
David joined the Company in February
2021 from his most recent role as Group
President – International Innerwear,
HanesBrands. He joined Pacific Brands
in 2009 initially as Chief Financial &
Operating Officer taking over as CEO of
the public company in 2014. In 2016,
HanesBrands acquired Pacific Brands and
expanded David’s role to cover Australasia
and subsequently its international
innerwear operations outside of the
Americas.
Prior to this, David spent five years at
Foster’s Group, where he held the role
of Chief Strategy Officer responsible
for corporate strategy, M&A, business
development and performance
improvement. Prior to Foster’s Group,
David held senior consulting roles at
McKinsey & Company and PwC. David’s
career has largely been focused on the
consumer and retail sector in Australia
and New Zealand complemented by
significant international experience in
various markets and categories in China,
SE Asia, the EU and the US.
David resides in Australia.
Warwick has been a director of the
Company since 23 August 2016.
He is also Chair of the People and
Remuneration Committee and a member
of the Audit and Risk Management
Committee.
Warwick has been a career Consumer
Packaged Goods (CPG) executive of global
scale. His executive roles have included
a career with The Clorox Company
of the USA as Senior Vice President,
International, based in the USA and
prior to that as VP Asia Pacific. His earlier
roles included Managing Director of
NationalPak Limited (the Glad Products
Company ultimately acquired by Clorox)
and a long career with Unilever plc where
he was based in Australia. Warwick is
a Non-Executive Director of one of the
leading international wine companies, the
ASX listed Treasury Wine Estates Limited.
Warwick resides in Australia.
Pip has been a director of the Company
since 1 July 2019. She is also Chair of the
Nomination Committee and a member of
the People and Remuneration Committee.
Currently Pip is also a director on the
boards of Westpac New Zealand, Spark
New Zealand, Fisher & Paykel Healthcare
and Vulcan Steel. She was previously
a senior partner at law firm Russell
McVeagh, where she spent over 10 years
on the firm’s board including acting as the
firm’s board Chair and interim CEO.
Pip brings extensive commercial and board
experience to The a2 Milk Company
Board. A leader in the field of corporate
law and in the New Zealand business
community, she is the recipient of
numerous industry awards including being
named New Zealand “Dealmaker of the
Year” at the Australasian Law Awards
2018, an accolade she has won five
times; and she has twice been recognised
as a finalist at the Women of Influence
Awards.
Pip resides in New Zealand.
Bessie Lee has been a director of the
Company since 26 February 2021 and sits
on both the Audit and Risk Management
Committee and the People and
Remuneration Committee.
Bessie is a highly regarded company
director and an expert, especially in
digital marketing and innovative data
management in China, with a diversity of
experience. She is a director on the boards
of Electrocomponents and Abcam. She
was also previously a director at Ecovacs
Robotics.
Bessie founded Withinlink Limited in 2015
where she continues to focus on investing
and incubating marketing technology
start-ups in China, several of which have
listed in the past few years.
Bessie was previously the CEO of WPP
China, the world’s leading marketing
communications group, focusing on
mergers and acquisitions, senior client
relations and government relations. Bessie
is the recipient of numerous industry
awards, including being named The Most
Innovative Person in Business in 2019 by
the International Entrepreneurs, Creatives
and Innovators Association (IECIA).
Bessie resides in China.
CORPORATE GOVERNANCE
40

David Hearn
Chair and
Non-Executive Director
Master of Arts
Julia Hoare
Deputy Chair and Independent,
Non-Executive Director
Bachelor of Commerce, FCA,
Chartered Member of the Institute
of Directors (NZ)
David Bortolussi
Managing Director and CEO
Bachelor of Commerce
(University of Melbourne), FCA, F FIN,
Member of the Australian Institute of
Company Directors (MAICD)
Warwick Every-Burns
Independent,
Non-Executive Director
Advanced Management Program
(Harvard)
Pip Greenwood
Independent,
Non-Executive Director
Bachelor of Laws
(LL.B.), University of Canterbury (NZ)
Bessie Lee
Independent,
Non-Executive Director
Master of Science (Illinois State
University)
Director since February 2014Director since November 2013Director since February 2021Director since August 2016Director since July 2019Director since February 2021
David has been a director of the Company
since 5 February 2014, and Chair since 30
March 2015. He is also a member of the
Nomination Committee.
David has deep experience and skills
in executive management, sales and
marketing and strategy development in
fast moving consumer goods (FMCG) in
international markets. He has held senior
executive roles including Chief Executive
Officer or Managing Director roles for
FMCG companies including Goodman
Fielder Limited, UB Snack Foods Europe/
Asia, Pepsico foods Europe, Del Monte
UK, Smith’s Crisps and for the marketing
services group, Cordiant Communications
Group.
In addition to his Company directorship,
David is also Chairman of SafeStore
Holdings plc (a UK FTSE listed company)
and Lovat Partners Limited.
David resides in the United Kingdom.
Julia has been a director of the Company
since 19 November 2013, and Deputy
Chair since 30 March 2015. She is also
Chair of the Audit and Risk Management
Committee and a member of the
Nomination Committee.
Prior to joining the Board, Julia had
extensive chartered accounting experience
in Australia, the UK and New Zealand and
was a partner with PwC NZ for 20 years.
She was a member of the New Zealand
External Reporting Advisory Panel from
2013 to 2021, a body designed to
support the standard setting process
of the New Zealand External Reporting
Board. She was also a member of The
New Zealand Sustainable Finance Forum
Leadership Group which released the
Roadmap for Action Final Report in
November 2020, the aim of which is to
identify genuine, practical ways to ensure
the financial system is supporting and not
hindering the economic transition required
for New Zealand to meet its international
commitments under the Paris Agreement
Sustainable Development Goals.
In addition to her Company directorship,
Julia is a director of Port of Tauranga
Limited, Auckland International Airport
Limited and Meridian Energy Limited. She
is also the President of the New Zealand
Institute of Directors.
Julia resides in New Zealand.
David joined the Company in February
2021 from his most recent role as Group
President – International Innerwear,
HanesBrands. He joined Pacific Brands
in 2009 initially as Chief Financial &
Operating Officer taking over as CEO of
the public company in 2014. In 2016,
HanesBrands acquired Pacific Brands and
expanded David’s role to cover Australasia
and subsequently its international
innerwear operations outside of the
Americas.
Prior to this, David spent five years at
Foster’s Group, where he held the role
of Chief Strategy Officer responsible
for corporate strategy, M&A, business
development and performance
improvement. Prior to Foster’s Group,
David held senior consulting roles at
McKinsey & Company and PwC. David’s
career has largely been focused on the
consumer and retail sector in Australia
and New Zealand complemented by
significant international experience in
various markets and categories in China,
SE Asia, the EU and the US.
David resides in Australia.
Warwick has been a director of the
Company since 23 August 2016.
He is also Chair of the People and
Remuneration Committee and a member
of the Audit and Risk Management
Committee.
Warwick has been a career Consumer
Packaged Goods (CPG) executive of global
scale. His executive roles have included
a career with The Clorox Company
of the USA as Senior Vice President,
International, based in the USA and
prior to that as VP Asia Pacific. His earlier
roles included Managing Director of
NationalPak Limited (the Glad Products
Company ultimately acquired by Clorox)
and a long career with Unilever plc where
he was based in Australia. Warwick is
a Non-Executive Director of one of the
leading international wine companies, the
ASX listed Treasury Wine Estates Limited.
Warwick resides in Australia.
Pip has been a director of the Company
since 1 July 2019. She is also Chair of the
Nomination Committee and a member of
the People and Remuneration Committee.
Currently Pip is also a director on the
boards of Westpac New Zealand, Spark
New Zealand, Fisher & Paykel Healthcare
and Vulcan Steel. She was previously
a senior partner at law firm Russell
McVeagh, where she spent over 10 years
on the firm’s board including acting as the
firm’s board Chair and interim CEO.
Pip brings extensive commercial and board
experience to The a2 Milk Company
Board. A leader in the field of corporate
law and in the New Zealand business
community, she is the recipient of
numerous industry awards including being
named New Zealand “Dealmaker of the
Year” at the Australasian Law Awards
2018, an accolade she has won five
times; and she has twice been recognised
as a finalist at the Women of Influence
Awards.
Pip resides in New Zealand.
Bessie Lee has been a director of the
Company since 26 February 2021 and sits
on both the Audit and Risk Management
Committee and the People and
Remuneration Committee.
Bessie is a highly regarded company
director and an expert, especially in
digital marketing and innovative data
management in China, with a diversity of
experience. She is a director on the boards
of Electrocomponents and Abcam. She
was also previously a director at Ecovacs
Robotics.
Bessie founded Withinlink Limited in 2015
where she continues to focus on investing
and incubating marketing technology
start-ups in China, several of which have
listed in the past few years.
Bessie was previously the CEO of WPP
China, the world’s leading marketing
communications group, focusing on
mergers and acquisitions, senior client
relations and government relations. Bessie
is the recipient of numerous industry
awards, including being named The Most
Innovative Person in Business in 2019 by
the International Entrepreneurs, Creatives
and Innovators Association (IECIA).
Bessie resides in China.
THE a
2 MILK COMPANY ANNUAL REPORT 2021
41

EXECUTIVE
LEADERSHIP TEAM
David Bortolussi
Managing Director and CEO
Bachelor of Commerce
(University of Melbourne), FCA, F FIN,
Member of the Australian Institute of
Company Directors (MAICD)
Refer to page 40 for biography.
Shareef Khan
Chief Operations Officer
Bachelor of Science, CSCP, APICS
Shareef joined the Group in June 2012.
He is responsible for all operations
including farm services, supply chain,
manufacturing, quality and regulatory
and product development across the
Group in each of our geographies.
This spans from farmers through to
distribution to our customers and
includes management of key strategic
partnerships.
Shareef has over 17 years’ senior
management experience in the dairy and
infant nutrition category. He is a qualified
supply chain professional and has
experience across a number of industries.
Eleanor Khor
Chief Strategy Officer
Bachelor of Commerce / Bachelor of
Laws (Hons), (University of Melbourne)
As Chief Strategy Officer, Eleanor is
responsible for developing corporate and
business strategy and the execution of key
growth, performance improvement and,
to the extent relevant in the future,
potential M&A, joint venture and alliance
initiatives.
Eleanor joined the Company in August
2018, bringing a diverse range of
experience, including from her time as
a corporate lawyer at Allens Linklaters, as
a management consultant at Bain & Co,
and in private equity Coast2Coast Capital.
Since joining The a2 Milk Company,
Eleanor has spent significant time working
across China and the Asia Pacific regions,
making her well placed to lead this
important function for the business.
Jaron McVicar
Chief Legal and Sustainability
Officer & Company Secretary
Bachelor of Laws
(LL.B.), (University of Otago)
Jaron joined the Group in November
2016, having already provided legal
advice to the Group over a number of
years in his previous role with a leading
New Zealand law firm.
Jaron is responsible for the Group’s legal
and science functions and in his role as
Company Secretary works closely with
the Board on governance.
Jaron’s role has recently expanded to
include leading our important
sustainability programme.
Prior to joining the Group, Jaron worked
in private practice for 15 years as a
corporate and commercial lawyer,
including seven years working in London.
Jaron is a qualified solicitor in New
Zealand and England and Wales.
Race Strauss
Chief Financial Officer
Fellow of CPA Australia (FCPA),
Bachelor of Business (Griffith
University, QLD), Executive MBA
(INSEAD, Singapore), Member of the
Australian Institute of Company
Directors (MAICD)
Race joined the Group in January 2020.
He is responsible for finance, IT and
investor relations across the Group. Race is
an experienced finance executive with a
strong packaged goods background as
well as relevant international experience,
particularly in China and other Asian
regions.
Race spent over 20 years at Unilever
where he held a variety of senior roles
including Chief Financial Officer of
Unilever Australasia and Vice President
of Finance for South East Asia and
Australasia based in Singapore.
More recently Race spent seven years
in Chief Financial Officer roles with the
Qantas Group, including at Jetstar and at
Qantas Airlines.
Janelle Tong
Chief Marketing Officer (Interim)
Bachelor of Business / Bachelor of
Laws (Hons), (University of Technology
Sydney)
Janelle joined the Company in July 2020
and has extensive experience across brand
strategy, marketing, innovation and
integrated communications, coupled with
an in-depth understanding of Asia Pacific
markets.
Janelle has held senior-level marketing
positions in leading consumer packaged
goods companies including Pepsico,
McDonald’s Corporation, British American
Tobacco and Pernod Ricard in Australia,
China, Hong Kong, South Korea and
Singapore.
Since joining the Company, Janelle has
played a key role in developing the global
direction of the brand and working with
the regional marketing teams to optimise
the marketing and communications of the
brand across our key markets.
Amanda Hart
Chief People and Culture Officer
(Commencement date 06/09/2021)
Amanda will join the Company in
September 2021 from her most recent
role as Head of Human Resources,
Australia and New Zealand, with Dyson
Appliances, having spent the past four
years with the organisation as a senior
human resources leader across several
Asia Pacific markets with a focus on
leadership development and
organisational change.
Prior to her time at Dyson Appliances,
Amanda held senior human resources
roles with Cotton On Clothing and Global
Radio.
In the Chief People & Culture Officer role,
Amanda will be responsible for driving the
people strategy and executing integrated
programmes focused on continuing to
improve the Company’s capability
building, leadership development,
employee engagement, diversity and
inclusion, and pioneering culture.
CORPORATE GOVERNANCE
42