Select Equities Conference Presentation

ASX Code: A2M
NZX Code: ATM

The a2 Milk Company Limited
www.thea2milkcompany.com


27 October 2022
NZX/ASX Market Release


Select Equities Conference Presentation


The a2 Milk Company is today presenting the attached at the Select Equities – 6
th
Annual China Conference.

Authorised for release by

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

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
Investor Relations Manager
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

---

SELECT EQUITIES
6
TH
ANNUAL
CHINA CONFERENCE
The a2 Milk Company Limited27 October 2022

Disclaimer
This presentation dated 27 October 2022 provides additional
commentary on the Annual Report for the 12 months ended 30 June
2022 of The a2 Milk Company Limited (the “Company” or “a2MC”)
and accompanying information released to the market on the same
date. As such, it should be read in conjunction with the explanations
and views in those documents.
This presentation is provided for general information purposes only.
The information contained in this presentation is not intended to be
relied upon as advice to investors and does not take into account
the investment objectives, financial situation or needs of any
particular investor. Investors should assess their own individual
financial circumstances and consider talking to a financial adviser or
consultant before making any investment decision.
This presentation is not a prospectus, investment statement or
disclosure document, or an offer of shares for subscription, or sale,
in any jurisdiction.
Certain statements in this presentation constitute forward looking
statements. Such forward looking statements involve known and
unknown risks, uncertainties, assumptions and other important
factors, many of which are beyond the control of the Company and
which may cause actual results, performance or achievements to
differ materially from those expressed or implied by such
statements.
While all reasonable care has been taken in relation to the
preparation of this presentation, none of the Company, its
subsidiaries, or their respective directors, officers, employees,
contractors or agents accepts responsibility for any loss or damage
resulting from the use of or reliance on this presentation by any
person.
Past performance is not indicative of future performance and no
guarantee of future returns is implied or given.
Some of the information in this presentation is based on unaudited
financial data which may be subject to change.
All values are expressed in New Zealand dollars unless otherwise
stated.
All intellectual property, proprietary and other rights and interests in
this presentation are owned by the Company.
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
2

The a2 Milk Company overview
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
3
Our purpose is to pioneer the future of Dairy for good, and our vision is to
create an A1-free world where Dairy nourishes all people and our planet
Portfolio of a2 Milk
TM
based products including fresh milk, UHT, ESL, IMF,
milk powder and other nutritional products
Sales primarily in China, New Zealand, Australia, and North America
World class manufacturing facilities and international strategic partners
in China and New Zealand
Over 400 talented team members around the globe
Revenue of NZD$1.45 billion in FY22

Refreshed growth strategy focused on capturing full
potential of China market opportunity
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
4
Purpose
We pioneer the future of Dairy for good
Goals
PEOPLE
Create a safe, diverse, inclusive and
engaging place for our people to
thrive, support our farmers and
contribute to our communities
Vision
An A1-free world where Dairy nourishes all people and our planet
SHAREHOLDERS
Create long-term, enduring value for
shareholders and a trusted,
transparent relationship
PLANET
Protect our planet and cows, rethink
packaging, achieve net zero and
become nature positive
CONSUMERS
Bring the unique benefits of pure and
natural a2 Milk™to as many
consumers as possible
Strategic
priorities
Enablers
Values
Brand strengthScience & innovation
Strategic relationshipsCapability development
Bold passionIntegrityPioneering spiritHumilityRespect
Capture full potential
in China IMF
-Gain more control over CL
and EL distribution and get
closer to our consumer
-Increase investment in our
brand, digital marketing
and e-commerce
2
Ramp-up product
innovation
-Expand our CL and EL IMF
product portfolios
-Enter adjacent product
categories in relevant
markets to drive growth
3
Transform our
supply chain
-Expand CL registered
market access
-Utilise MVM and invest in
New Zealand capability
-Develop China supply
capability over time
4
Invest in people and
planet leadership
-Invest in our people to
enable them to thrive
-Take direct action to lead
the industry in GHG
emissions reduction,
farming practices and
sustainable packaging
1
Accelerate path
to profitability
-Take action to realise
potential in USA
-Expedite insourcing of a2™
product and 3rd party
volume to significantly
increase MVM utilisation
5

Significant progress implementing refreshed strategy and
improved performance in FY22
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
5
1.Inventory management actions effective
−Significant steps taken last calendar year to address excess IMF inventory have proven effective with channel inventory at target levels, product freshness amongst the best
in the industry and improved market pricing
2.Strong early execution of refreshed growth strategy
−Execution of refreshed growth strategy communicated to the market at the Company’s Investor Day in October 2021, which is focused on capturing the full potential of the
China market opportunity, is having an impact achieving new highs in brand health metrics and record market shares
3.Full year result in line with the Company’s expectations
−Delivered double digit revenue and earnings growth in FY22 despite challenging market conditions, driven by
refreshed growth strategy and improved execution
4.Outlook for the business is positive
−Continued revenue and earnings growth is expected in FY23, and the Company is on track to deliver on its
medium-term financial and non-financial ambition communicated to the market in October 2021
5.On-market share buyback announced
−As a result of the above, and after considering its strong balance sheet position, the Company intends to
execute an on-market share buyback of up to $150 million
6.Renewal of existing GB registration granted
−SAMR has approved the renewal of a2MC’s current registration which will allow Synlait to manufacture
a2MC’s current registered China label product until 21 February 2023
−While the Company’s new China label GB registration process is progressing, timing is uncertain
and subject to SAMR approval
7.China State Farm agreement renewed
−The Company has renewed its exclusive import and distribution arrangements with China State Farm
Agribusiness Holding Shanghai Co. Ltd for a term of five years from 1 October 2022
8.Successful a2 Platinum® launch
−Now available in all a2MC channels and transition progressing to plan

FY22 result delivered double-digit growth in revenue and earnings
in a challenging market
6
•Group results in line with the Company’s expectations
−Group revenue growth of 19.8% to $1,446.2 million (growth of 11.2% ex-MVM) with 2H22 up 18.9% on 1H22 (15.7% ex-MVM)
−EBITDA
1
up 59.0% to $196.2 million, EBITDA margin 13.6% in FY22 (16.1% ex-MVM)
−NPAT, including non-controlling interest, up 42.3% to $114.7 million with $122.6 million attributable to owners of the Company
2
−Closing net cash
3
of $816.5 million with operational cash conversion of 114%
4
•Results driven by strong performance across the Company’s regions and products
−China label IMF sales up 12.2% driven by record high market shares achieved in MBS and DOL
−English label IMF sales up 11.6% with market share increasing in CBEC (2H22) and O2O, and Daigou trajectory improving (2H22)
−ANZ liquid milk sales up 1.8% with record market share, moderated in 2H22 due to lockdowns easing and reduced in-home consumption
−USA liquid milk sales up 30.2% driven by strong growth in grocery and supported by new innovation
−MVM sales of $104.4 million for the 11 months under a2MC ownership (75%)
•Other operational highlights
−Strong growth in brand health metrics to new highs following material increase in brand investment during the year
−Deliberate shift in distribution of English label IMF to more transparent, performance-based and exclusive partners progressing well
−Increase in innovation with the highest number of new product launches in the Company’s history
−Significant increase in sustainability targets, initiatives and impact in many areas of the business, particularly MVM electrification project
1
Earnings before interest, tax, depreciation and amortisation(EBITDA) is a non-GAAP measure and does not have a standardisedmeaning prescribed by GAAP. However, the Company believes that, in combination with GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational
performance of the business. A reconciliation of EBITDA to net profit after tax is provided in the Company’s Results Presentation and Annual Report for the 12 months ended 30 June 2022.
2
The non-controlling interest represents China Animal Husbandry Group’s 25% interest in MVM.
3
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
4
Calculated as net cash flow from operating activities before interest and tax divided by EBITDA.
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E

2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
7
Refer to Investor Day materials communicated to the market on 27 October 2021 for further information on medium-term ambition, strategy, risks and opportunities
Medium-term revenue and EBITDA margin ambitionCommentsAreas of planned revenue growth
•$2 billion revenue goal implies a
4-year CAGR of 8.5% from FY22 if
achieved by FY26
•Solid progress in FY22 towards
medium-term ambition with most
growth drivers and associated
initiatives on track to plan
−China label is ahead
−Other nutritionalsand emerging
markets is work in progress
•Positive indicators, including:
−Brand health metrics
−Market share gains
•Outlook for FY23 is for high single
digit revenue growth broadly
consistent with achieving medium-
term ambition over time
On track
Work in progress
Market / category
Growth ambition
(FY21 to ≥FY26)
1
Tracking
China label IMF$0.4
English label IMF$0.3
China and other
nutritionals
$0.2
Emerging markets$0.1
ANZ$0.1
USA$0.1
Non-specific risk$(0.4)
Net growthc.$0.8b
Revenue, NZ$ billions
EBITDA margin
EBITDA margin target in the “teens”
On track to achieve ambition to grow sales to $2 billion and
improve EBITDA margins over time
1
Incremental revenue ambition growth bridge from $1.21 billion in FY21 to c.$2.0 billion in ≥FY26 provided in Investor Day materials in October 2021. Provided for tracking purposes and should not be added to FY22 actual revenue result of $1.45 billion.
c.

Renewal of exclusive import and distribution arrangement
with China State Farm
•On 3 October 2022, the Company announced that it had renewed its exclusive import and
distribution arrangements with China State Farm Agribusiness Holding Shanghai Co. Ltd
(CSFA) for a term of five years from 1 October 2022
•CSFA has been a2MC’s strategic distribution partner in China since 2013
•CSFA is the exclusive import agent for a2MC’s China label products, including a2 至初®
China label infant milk formula
•CSFA is a wholly owned subsidiary of China National Agriculture Development Group Co,
Ltd (CNADC), which is also the parent company of China Animal Husbandry Group
(CAHG), which holds a 25% interest alongside a2MC’s 75% interest in Mataura Valley
Milk (MVM) located in Southland, New Zealand
•CNADC, CSFA and CAHG are highly regarded State Owned Enterprises and critically
important strategic partners of a2MC
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
8

Successful a2 Platinum® launch
•New a2 Platinum® now available in Australia (through major Retailers, Pharmacies
and Daigou/Reseller Network) and China cross-border e-commerce (CBEC)
•Positive feedback to date from consumers and Daigou/Resellers
•Retailers/platforms transitioning to new a2 Platinum® product with out-of-stocks
increasingly observed on old label product listings across the network
•Retailers / major CBEC platforms pricing new a2 Platinum® at a premium
versus old label product
•Held new a2 Platinum® Launch events with Daigou/Reseller Network to
introduce new formulation
•Supporting launch with comprehensive China Brand Marketing campaign to drive
consumer awareness, combined with direct Daigou/Reseller Network engagement
to support selling activity
2 0 2 2 S E L E C T E Q U I T I E S
-
6 T H A N N U A L C H I N A C O N F E R E N C E
9

www.thea2milkcompany.com