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Communication to Fonterra farmers

M&A12 December 2022FSFConsumer Staples

13 December 2022


Communication to Fonterra farmers


The attached communication was provided to Fonterra Co-operative Group Limited farmers by the Chief

Executive Officer, Miles Hurrell, on 13 December 2022.


-ENDS-.


For further information contact:


Fonterra Communications

24-hour media line

Phone: +64 21 507 072

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Chief Executive Officer’s Email

13 December 2022


Subject: Further information on sale of DPA Brazil JV


Kia ora [name],


You will have seen my note this morning regarding the sale of our Dairy Partners Americas

(DPA) Brazil joint venture to French dairy company Lactalis. This is great news given we have

had this asset held for sale for the last two years. As I mentioned there are regulatory authority

approvals to be obtained prior to a final settlement.


I referenced the BRL 700 million (approximately $210 million) sale price. Fonterra’s 51% share

of these sale proceeds will be used to repay debt related to that business and given the asset

has been held for sale since 2020 there will be little cash impact on Fonterra’s earnings. We will

provide an update on the final, overall impact of our divestment programme as part of our FY23

financial reporting.


We will keep you updated as the divestment process proceeds.


Ngā mihi

Miles

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