Synlait publishes HY24 result

Half Year Results1 April 2024SMLConsumer Staples

View on NZX PDF 1 PDF 2 PDF 3 PDF 4 PDF 5 PDF 6

Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

NZX: SML
ASX: SM1

2 April 2024

Synlait publishes HY24 result: North Island strategic review commenced;
and Bright Dairy and banking syndicate support in place.

Synlait Milk Limited (Synlait) has announced its financial results for the six months ended 31 January
2024. This includes a strategic review of its North Island assets, a letter of support from Bright Dairy,
and banking amendments, including an extension to the $130 million prepayment, and details of
Synlait’s well-progressed forward-looking recovery plan.

Synlait CEO Grant Watson commented: “It has been a challenging half-year for Synlait as we continue
to reset the company to better achieve our strategic objectives, while working to significantly reduce
our elevated levels of debt.”

“The delivery of our half-year results brings together several reset initiatives, with the announcement of
an amendment to our banking facilities, and a strategic review of the North Island assets. The balance
sheet reset initiatives are underpinned by a letter of support from our largest shareholder, Bright Dairy.
Bright Dairy’s support, coupled with the banking syndicate’s support, offers Synlait additional stability
and confirms that our largest shareholder and banking syndicate remains very supportive.”

“Our strategic focus is on Advanced Nutrition and Foodservice where we have a clear competitive
advantage to deliver diversified, high-value growth. It is supported by a well-run Ingredients business
enabled by our market-leading Lead With Pride™ on-farm excellence programme. We have built a
world-class and highly flexible asset base, and we are well positioned ahead of emerging customer
demand trends. Combined with our refreshed executive leadership team, we have all the pieces in
place to execute on this strategy and deliver strong returns for our shareholders.”

Deleveraging plan in place

Synlait has a clear plan to deleverage its balance sheet and reduce total debt to a sustainable level. It
has five elements:

1. The banking syndicate remains supportive, with amendments confirmed:

 Extension of the $130 million prepayment from 28 March 2024 to no later than 15 July
2024.

 An additional $30 million of short-term funding from 28 March 2024 to 27 June 2024.

 Amendment of the shareholders’ funds covenant from $600 to $400 million (an ‘at all
times’ covenant).

 Amendment of the interest cover ratio from 2.25x to 1.75x for FY24.

2. Bright Dairy support received

The Board has received a letter of support from Bright Dairy, the company’s largest shareholder, which
owns 39.01% of the shares in Synlait, that reinforces its ongoing support for Synlait. The letter includes
a commitment to participate in a future equity raise and to extend a loan at the request of Synlait,
subject to Synlait and Bright receiving all necessary approvals.

Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

3. North Island assets strategic review commenced

Synlait will undertake a strategic review of its world-class North Island assets, including its
manufacturing facility in Pokeno and its blending and canning facility in Auckland. It will explore the
highest-value ownership structure of these assets to maximise value for all shareholders. The strategic
review is expected to take several months, and there is no certainty that any transaction will result. No
decisions will be made regarding any potential transaction or other outcomes until the completion of
the strategic review.

4. Equity raise

Synlait is progressing with an equity raise alongside its strategic review of the North Island assets.
Given that Synlait’s share price is trading at a significant discount to its net tangible asset value, the
Board believes that asset realisation should be progressed to produce maximum value for our
shareholders. Equity raising remains an option under consideration by the Board in parallel to achieve
deleveraging of Synlait’s balance sheet.

5. Dairyworks sale process ongoing

Synlait remains in discussions with potential purchasers, but no sale has been completed or assured.
This is a high value business, and the Board will ensure the best possible return is achieved for
shareholders.

Forward-looking business recovery plan well progressed

As well as resetting Synlait’s balance sheet, several initiatives to accelerate volume growth and further
optimise manufacturing, quality, and cost performance continue. Progress is detailed in the investor
presentation (slides 22 to 25) and examples include improvements in asset stability, yield
improvements, and continued enterprise resource management system efficiency improvements (now
the system is fully embedded).

Half year 2024 financial performance
1

Key financial metrics in today’s result included:

 Revenue up 3% to $793.5 million.

 Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $19.9 million.
Adjusted EBITDA was $36.1 million.

 Net loss after tax was ($96.2) million. Adjusted net loss after tax was ($17.4) million.

 Net debt up 8% to $559.0 million.

 Gross profit down 47% to $43.6 million.

 Forecast base milk price for the 2023 / 2024 season is $7.80 per kg/MS up from $7.50 per
kg/MS.

The adjusted half-year result was impacted by a less favourable market environment for the ingredients
business, unfavourable FX, lower Advanced Nutrition volumes, and higher inventory write-downs,
operational expenditure, and financing costs.

1
All comparisons are against HY23 (except for the milk price) and include the results of Dairyworks, which has been treated as a
discontinued operation.

Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

Three non-cash items also significantly impacted the HY24 result. We recorded an impairment charge
of $50.3 million, which was primarily driven by the underutilisation of our North Island manufacturing
facilities. There was a $31.1 million adjustment recorded to write down the net assets of Dairyworks to
fair value less costs of disposal to reflect the value of non-binding offers received. Finally, there was a
change in the basis of inventory overhead allocation methodology. The change was initially treated
and forecasted as a policy change based on external accounting advice received; it was revised to be
reflected as a change in estimate based on a technical interpretation of the accounting standards by
our auditor, resulting in HY24 NPAT experiencing a non-cash adverse impact of $8.4 million.

A further summary of Synlait’s financial performance can be found in the investor presentation and in
the financial statements, released with this announcement.

Full year 2024 (FY24) guidance statement

Synlait has updated its FY24 guidance.

The previously announced guidance stated that earnings before interest, taxes, depreciation, and
amortization (EBITDA) performance was expected to be broadly flat or down compared to FY23.
Synlait’s FY23 EBITDA was $90.7 million.

Synlait now expects the FY24 EBITDA result to be significantly down on FY23 within the range of $45
million to $60 million, excluding a non-cash adjustment for the product costing method change of
approximately $17 million.

The FY24 EBITDA result is impacted by:

 Softening demand and/or margins across all business units.

 Adverse foreign exchange and product mix.

 Increased operating expenses e.g., legal costs, inventory management, and a range of other
costs.

In addition to the above, Synlait is facing material uncertainties in respect of the timings and outcomes
of various deleveraging options which are currently progressing. The deleveraging options include an
equity raise, a North Island strategic asset review, and the sale of Dairyworks.

The half-year financial statements further detail these material uncertainties. All shareholders are
encouraged to review this disclosure in detail.

The Board and Management remain fully committed to deleveraging Synlait's balance sheet and
continuing the focus on improving profitability for the balance of 2024.

The FY24 EBITDA guidance excludes all current and future impairments relating to Synlait and
Dairyworks.

For more information contact:
Media
Allan Swann
Corporate Communications Manager
P: +64 27 211 4874
E: allan.swann@synlait.com

Investors
Hannah Lynch
Head of Strategy & Corporate Affairs
P: +64 21 252 8990
P: hannah.lynch@synlait.com

---

HALF YEAR 2024 RESULT
CHAIR AND CEO REVIEW
For the six months ended 31 January 2024

KEY FINANCIAL METRICS
3%
TOTAL GROUP REVENUE
$
793.5M
8%
NET DEBT
$
559.0M
47%
TOTAL GROSS PROFIT
$
43.6M
$26.5M
OPERATING CASHFLOW
(
$
98.1M)
48%
CAPITAL EXPENDITURE²
$
1 7. 5M
$101.0M
TOTAL GROUP NPAT
(
$
96.2M)
$31.7M
ADJUSTED/UNDERLYING TOTAL
GROUP NPAT
1
(
$
1 7. 4M)
$31.6M
TOTAL GROUP EBITDA
$
19.9M
$26.4M
ADJUSTED/UNDERLYING TOTAL
GROUP EBITDA
1
$
36.1M
5%
FORECAST AVERAGE MILK PRICE FOR
2023/2024 SEASON
$
8.09kgMS
5%
FORECAST BASE MILK PRICE FOR
2023/2024 SEASON
$
7.80kgMS
All comparisons are against HY23 (except for milk price which is against FY23) and include the results of Dairyworks which has been treated as a discontinued operation.
1 Refer to the Investor Presentation for a reconciliation of adjusted NPAT and EBITDA.
2 Based on cash outflow for investing activities.
Half Year Adjusted NPAT ($17.4) million, in line with guidance.
PAGE 02 SYNLAIT MILK HALF YEAR 2024 RESULT CHAIR AND CEO REVIEW

MESSAGE FROM OUR CHAIR AND CEO
Tēnā koutou shareholders
It has been a challenging half-year for
Synlait as we continue our reset of the
company to better achieve our strategic
objectives, while working to significantly
reduce our elevated debt levels.
The delivery of our half-year results for
the six months ended 31 January 2024
(HY24) brings together several reset
initiatives, with the announcement of
amendments to our banking facilities,
the commencement of a strategic
review of our North Island assets,
and an increase in our forecast base
milk price.
The balance sheet reset initiatives are
underpinned by a letter of support
from our largest shareholder, Bright
Dairy. Bright Dairy’s support, coupled
with the banking amendments, offers
Synlait additional stability, and confirms
that our largest shareholder and
our banking syndicate remains very
supportive.
As well as establishing a clear
deleveraging plan for our balance
sheet, we have highlighted several
forward-looking initiatives as part of
our well-progressed business recovery
plan to accelerate volume growth and
further optimise our manufacturing,
quality, and cost performance. Progress
is further detailed in our Investor
Presentation, released alongside this
Chair and CEO Review. Examples
include accelerating growth of the
Foodservice UHT cream business
through product innovation, and
growing our distribution partnerships
in China and South East Asia. We have
also grown our Early Life and Adult
Nutrition businesses. Additional drivers
have been further improvements in
asset stability, yield improvements,
and continued enterprise resource
management system efficiency
improvements, now the system is fully
embedded.
Financial performance remains
under pressure
For the half year to 31 January 2024,
Synlait reported a net loss of ($96.2)
million after tax. On an adjusted basis,
it was ($17.4) million.
The half-year result was impacted by a
less favourable market environment for
the Ingredients business, unfavourable
FX, lower Advanced Nutrition volumes,
and higher inventory write-downs,
operational expenditure, and financing
costs.
However, three non-cash items also
significantly impacted the result.
We recorded an impairment charge
of $50.3 million, driven by the
underutilisation of our North Island
manufacturing facilities. There was also
a $31.1 million adjustment recorded to
write down the net assets of Dairyworks
to fair value less costs of disposal to
reflect the value of non-binding offers
received. Finally, there was a change
in the basis of inventory overhead
Paul McGilvary
Acting Chair
allocation methodology. The change
was initially treated and forecasted
as a policy change based on external
accounting advice received; it was
revised to be reflected as a change
in estimate based on a technical
interpretation of the accounting
standards by our auditor, resulting in
NPAT experiencing a non-cash adverse
impact of $8.4 million.
EBITDA was $19.9 million ($36.1 million
on an adjusted basis). Net debt was
$559.0 million.
Synlait is facing several material
uncertainties with regard to the timings
and outcomes of deleveraging options
which are currently progressing, and
which are critical in ensuring Synlait will
continue to meet financial obligations
as they fall due.
These uncertainties are further
detailed in note two of our half-year
financial statements. We encourage
shareholders to review this disclosure
Grant Watson
CEO
SYNLAIT MILK HALF YEAR 2024 RESULT CHAIR AND CEO REVIEW PAGE 03

in detail. The Board remain fully
committed to deleveraging Synlait’s
balance sheet in the second half of
the year.
Announcing a North Island strategic
review demonstrates we are working
hard to aggressively reduce Synlait’s
debt levels and return the company to
sustainable profitability. This continues
to be the number one priority of the
Board and Executive Leadership Team
(ELT). Over the next six months, we
are collectively focused on driving
efficiency and improving productivity
across Synlait.
The Board also updated its full year
2024 (FY24) guidance. Synlait now
expects the FY24 EBITDA result to be
significantly down on FY23 within the
range of $45 million to $60 million,
excluding a non-cash adjustment for
the product costing method change of
approximately $17 million.
The FY24 EBITDA result is impacted by:
• Softening demand and/or margins
across all business units.
• Adverse foreign exchange and
product mix.
• Increased operating expenses e.g.,
legal costs, inventory management,
and a range of other costs.
The FY24 EBITDA guidance excludes all
current and future impairments relating
to Synlait and Dairyworks.
A copy of the full guidance statement
can be found on page 28 of the
investor presentation.
Strengthened Executive Leadership
Team structure and Corporate
Governance
Post the balance date we made several
changes to our Board and ELT to
support Synlait’s return to profitability.
We are pleased to announce that
our search for a new Independent
Director for the Board is complete with
the appointment of George Adams in
March 2024. George has outstanding
commercial and governance
experience with over 30 years of
international business experience in
the fast-moving consumer goods and
telecommunications industries.
Tao Zhang, the Deputy Finance
Director of Bright Dairy Holding Limited
(Bright Dairy), replaced Liu Ruibing
(Ryan) as one of Synlait’s Bright Dairy
Appointed Directors in February 2024.
Tao’s extensive finance experience and
historical knowledge of Synlait from his
previous work alongside Ryan are real
strengths.
We have also reduced the ELT to
increase business unit alignment,
accelerate growth, and reduce costs.
These changes have been well-
received across Synlait.
Paul Mallard (Chief Operating Officer)
now has responsibility for Synlait’s end-
to-end operations, including demand
planning, manufacturing, quality,
laboratory, and supply chain functions.
Naiche Nogueira (Chief Revenue
Officer) retains the Advanced Nutrition
business and now has responsibility for
the Ingredients business. Naiche is also
responsible for the Innovation, New
Product Development, Programme
Management and Regulatory functions.
Supporting our farmer suppliers
Retention of our high-quality milk
supply remains a critical priority. As
Synlait’s balance sheet has come
under continued pressure, cessation
notices from our farmer suppliers
have increased compared to previous
years. The cessation notice period
is two years and Synlait expects that
many of these farmer suppliers will
opt to withdraw their ceases once we
deleverage our balance sheet. Given
the two-year notice period, our current
financial performance is not impacted.
We are confident, given the progression
of the reset plan, that there is currently
limited material risk to our future
financial performance.
The Board remain committed to paying
a competitive farmgate milk price
and advance rate, and our On-Farm
Excellence team has made significant
efforts to ensure farmer suppliers
understand what makes our milk supply
offer extremely competitive. A special
thank you to our farmer suppliers for
their patience as we work to return
Synlait to profitability.
Progress against our core capabilities
Advanced Nutrition
The synergies of merging the
Innovation and Product Development
teams under Naiche’s new structure
will become more evident over time,
especially as we diversify beyond Infant
Nutrition into the Early Life and Adult
Nutrition categories, working across
new customers and markets.
Our focus remains on delivering
compelling value to our two
cornerstone strategic customers,
both in terms of increased efficiency
and effectiveness, and diversified
product offerings. We are already
seeing successes with our teams
manufacturing dairy/non-dairy hybrid
nutrition products for South East Asia
in various can and flexible packaging
formats. We also have several trials
and audits underway to produce infant
formula base powder for a customer in
this region.
We will continue to diversify our
markets and categories in the
lactoferrin business, including in new
areas such as pharmaceuticals, to
reduce Synlait’s exposure to market
price volatility and to match demand.
SYNLAIT MILK HALF YEAR 2024 RESULT CHAIR AND CEO REVIEW PAGE 04

Foodservice
Our presence in China, via the Joyhana
UHT cream product we produce for
Sinodis (Savencia’s China subsidiary),
continues to meet our growth
expectations. We are in the process of
developing the second generation of
Joyhana products to bring to market in
December 2024.
Last month, we began production of
UHT cream with a new customer, global
food company Uhrenholt, under its
private label brand. They aim to release
this product in market across South
East Asia in May 2024.
South East Asia continues to be a
key market for Foodservice due to
economic growth, urbanisation, and
an expanded presence of our route-to-
market partners.
Ingredients
The Ingredients business strategy
is unchanged.. A key highlight was
our recently announced five-year co-
investment sustainability partnership
with Nestlé. This enables both parties
to decarbonise their supply chains,
while simultaneously supporting
our farmer suppliers with on-farm
investment in emissions reduction tools.
This also opens additional commercial
opportunities for Nestlé and Synlait to
work together.
Operational performance
We continue to focus on asset stability
and increasing utilisation.
To achieve this, we have progressed
with implementing the Integrated
Work Systems (IWS) framework. IWS
introduces a series of systems, tools,
and support activities to make our
manufacturing activity safer, more
reliable, and more efficient.
The Dunsandel Liquid facility passed
the first phase of IWS in March 2024.
Our North Island facilities are working
to achieve the same recognition by
the end of FY24. Dunsandel Liquids
facility improved performance confirms
that the IWS framework provides the
improved stability we need to keep
lifting asset stability and utilisation.
Closing comments
Synlait was founded as an
entrepreneurial, innovative, disruptive,
and sustainable company. This drove
its success in its early years, however
it has long faced significant strategic
risk around a lack of customer and
product diversification and in response
the company has invested in capacity
expansion and category diversification.
More recently we made the decision to
refocus our strategy on areas where we
have a clear competitive advantage to
deliver diversified, high-value growth.
It is important we do not lose our
competitive advantage in the Advanced
Nutrition and Foodservice businesses,
and that they continue to be supported
by a well-run Ingredients business
enabled by our market-leading Lead
With Pride™ programme, driving on-farm
excellence. Having built a world-class
and highly flexible asset base, we are
well positioned ahead of emerging
customer demand trends.
This report provides you with more
clarity around our plans and progress
to reset Synlait, deleverage our balance
sheet, and return our company to
sustainable profitable growth across
diversified channels, categories, and
geographies.
Finally, thank you to all of our
stakeholders, notably our shareholders,
including Bright Dairy, our banking
syndicate, and our farmer suppliers for
their patience. But we especially want
to thank our people, who are working
incredibly hard to reset our company
and build a profitable future for Synlait.
Your energy, passion, and commitment
to Doing Milk Differently For A Healthier
World is a true asset, and it is greatly
appreciated.
Nāku noa, nā
Paul McGilvary Grant Watson
Acting Chair CEO
SYNLAIT MILK HALF YEAR 2024 RESULT CHAIR AND CEO REVIEW PAGE 05

---

Condensed Interim Financial Statements
For the six months ended 31 January 2024

Synlait Milk Limited
Contents
Page
Directors' responsibility statement2
Condensed interim financial statements
Income statement3
Statement of comprehensive income4
Statement of changes in equity5
Statement of financial position6
Statement of cash flows7
Notes to the condensed interim financial statements
1 Reporting entity8
2 Basis of preparation of interim financial report8
3 Impairment of assets14
4 Held for sale assets and discontinued operations15
5 Segment reporting17
6 Expenses20
7 Reconciliation of (loss) / profit after income tax to net cash outflow from operating activities21
8 Trade and other receivables21
9 Inventories22
10 Property, plant and equipment22
11 Intangible assets22
12 Loans and borrowings23
13 Share capital24
14 Related party transactions24
15 Contingencies25
16 Commitments25
17 Events occurring after the reporting period26
Interim review report27
-
1-

Synlait Milk Limited
Directors' responsibility statement
31 January 2024
Directors' responsibility statement
The Directors are pleased to present the condensed interim financial statements for Synlait Milk Limited and its subsidiaries,
Synlait Milk Finance Limited, The New Zealand Dairy Company Limited, Eighty Nine Richard Pearse Drive Limited, Synlait
B
usiness Consulting (Shanghai) Co., Ltd, Dairyworks Limited, Synlait Milk (Holdings) No.1 Limited, and Synlait Milk (Dunsandel
Farms) Limited (together “the Group”) as set out on pages 3 to 26 for the six months ended 31 January 2024.
The Directors are responsible for ensuring that the condensed interim financial statements present fairly the financial position
of the Group as at 31 January 2024 and the financial performance and cash flows for the six months ended on that date.
The Directors consider that the condensed interim financial statements of the Group have been prepared using appropriate
accounting policies, consistently applied and supported by reasonable judgements and estimates and that all relevant
financial reporting and accounting standards have been followed.
The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the Group and facilitate compliance of the condensed interim financial statements
with the Financial Markets Conduct Act 2013.
For and on behalf o
f the Board.
Paul McGilvaryPaul Washer
Acting ChairIndependent Director
2 April 20242 April 2024
-2-

Synlait Milk Limited
Income statement
For the six months ended 31 January 2024
Income statement
For the six months ended 31 January 2024
Period endedYear ended
31 January31 January 31 July
2024
Unaudited
2023
Unaudited
2023
Audited
Notes$'000$'000$'000
Revenue652,889632,3291,320,758
6
(625,279)(563,467)(1,202,850)
27,61068,862117,908
4,6854,23913,294
6(18,784)(18,368)(41,548)
6(33,581)(32,736)(68,306)
6-(5,877)(6,794)
3
(50,343)--
(70,413)16,12014,554
(21,527)(13,263)(29,331)
184122281
(3,182)(1,618)(5,771)
(24,525)(14,759)(34,821)
(94,938)1,361(20,267)
3
24,924406,123
(70,014)1,401(14,144)
4
(26,207)3,4129,852
(96,221)4,813(4,292)
(44.02)2.20(1.96)
(44.02)2.19(1.96)
(32.03)0.64(6.47)
(32.03)0.63(6.47)
(11.99)1.564.51
Cost of sales
Gr
oss profit
Other income
Sales and distribution expenses
Administrative and operating expenses
ERP implementation costs
Impairment of Synlait cash generating unit
(Loss) / earnings before net finance costs and income tax
Finance expenses
Finance income
Loss on derecognition of financial assets
Ne
t finance costs
(Loss) / profit before income tax from continuing operations
Income tax benefit
Net (loss) / profit after tax from continuing operations
(Loss) / profit from discontinued operations
(Loss) / profit for the period
(Loss) / earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
Attributable to continuing operations:
Basic earnings per share (cents)
Diluted earnings per share (cents)
Attributable to discontinued operations:
Basic earnings per share (cents)
Diluted earnings per share (cents)
(11.99)1.564.51
The accompanying notes form part of and are to be read in conjunction with these financial statements.
-3-

Synlait Milk Limited
Statement of comprehensive income
For the six months ended 31 January 2024
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
$'000$'000$'000
(96,221)4,813(4,292)
6,32886,59464,405
(50)(924)-
23(7)(19)
(1,772)(24,246)(18,033)
4,52961,41746,353
4,52961,41746,353
(91,692)66,23042,061
Statement of comprehensive income
For the six months ended 31 Janu
ary 2024
(Loss) / profit for the period
Other comprehens
ive income
I
tems that may be reclassified subsequently to profit and loss
E
ffective portion of changes in fair value of cash flow hedges
Net change in fair value of cash flow hedges transferred to profit
and loss
Exchange differences on translation of foreign operations
Income tax on other comprehensive income
Total items that may be reclassified subsequently to profit and
l
oss
Ot
her comprehensive income for the period, net of tax
Total comprehensive (loss) / income for the period
(Loss) / profit is attributable to:
Total comprehensive (loss) / income for the year is attributable
to:
Continuing operations(65,424)62,99332,133
Discontinued operations(26,268)3,2379,928
(91,692)66,23042,061
The accompanying notes form part of and are to be read in conjunction with these financial statements.
-4-

Synlait Milk Limited
Statement of changes in equity
For the six months ended 31 January 2024
Statement of changes in equity
For the six months ended 31 Janu
ary 2024
Share
capital
Employee
benefits
reserve
Cash flow
hedge
reserve
Foreign
currency
translation
reserve
Retained
earnings
Total
equity
Notes$'000$'000$'000$'000$'000$'000
Equity as at 1 August 2022 (Audited)
464,774818(49,296)22332,078748,396
Profit or (loss) for the period ----4,8134,813
Other comprehensive income
Effective portion of changes in fair value of
cash flow hedges
--86,594--86,594
Exchange differences on translation of
foreign operations
---(7)-(7)
Net change in fair value of cash flow hedges
transferred to profit and loss
--(924)--(924)
Income tax on other comprehensive income
--(24,246)--(24,246)
Total other comprehensive income
--61,424(7)-61,417
Total comprehensive income
-
-61,424(7)4,81366,230
Employee benefits reserve
-156---156
Equity as at 31 January 2023 (Unaudited)
464,77497412,12815336,891814,782
Equity as at 1 August 2023 (Audited)
464,774735(2,924)3327,786790,374
Profit or (loss) for the period----(96,221)(96,221)
Other comprehensive income
Effective portion of changes in fair value of
cash flow hedges
--6,328--6,328
Exchange differences on translation of
foreign operations
---23-23
Net change in fair value of cash flow hedges
transferred to profit and loss
--(50)--(50)
Income tax on other comprehensive income
--(1,772)--(1,772)
Total other comprehensive income
--4,50623-4,529
Total comprehensive income
--4,50623(96,221)(91,692)
Employee benefits reserve
-198---198
Equity as at 31 January 2024 (Unaudited)
464,7749331,58226231,565698,880
The accompanying notes form part of and are to be read in conjunction with these financial statements.
-5-

Synlait Milk Limited
Statement of financial position
As at 31 January 2024
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
Notes$'000$'000$'000
30,50412,4249,290
8109,277139,91682,941
3,113,4433,6072,805
7,44214,9852,711
7,1838,0229,879
9316,261467,747250,252
10,71827,28616,339
7,5124,3503,271
4163,535-177,881
655,875678,337555,369
3,10947,6771,017,404992,996
3,1164,53191,44277,747
3,11-64,1896,026
885360935
4,78420,7766,427
4,0653,8573,906
335,53022,90842,204
1,057,4721,220,9361,130,241
1,713,3471,899,2731,685,610
286,634422,982280,954
12514,136350,652243,727
12,68527,94626,862
4,1234,4355,200
443,221-60,611
Statement of financial position
As at 31 January 2024
ASSETS
Cash
and cash equivalents
Trade and other receivables
Intangible assets
Goods and services tax refundable
Prepayments
I
nventories
Derivative financial instruments
Current tax receivables
Assets of a disposal group held for sale
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other investments
Derivative financial
instruments
Biological assets
R
ight-of-use assets
Total non-current assets
Total assets
L
IABILITIES
Trade and other payables
L
oans and borrowings
Derivative financial instruments
L
ease liabilities
L
iabilities directly associated with a disposal group held for sale
Total current liabilities
860,799806,015617,354
Non-current liabilities
Loans and borrowings1275,654178,653178,998
Derivative financial instruments9002,390-
Deferred tax liabilities34,78072,32054,685
Lease liabilities39,17722,67641,693
Other non-current liabilities3,1572,4372,506
Total non-current liabilities153,668278,476277,882
Total liabilities1,014,4671,084,491895,236
Net assets
698,880
814,782790,374
Equity
Share capital13464,774464,774464,774
Reserves2,54113,117(2,186)
Retained earnings231,565336,891327,786
Total equity attributable to equity holders of the Group
698,880814,782790,374
Total equity and liabilities
1,713,3471,899,2731,685,610
The accompanying notes form part of and are to be read in conjunction with these financial statements.
-6-

Synlait Milk Limited
Statement of cash flows
For the six months ended 31 January 2024
Period endedYear ended
31 January 31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
Notes$'000$'000$'000
774,149720,0091,608,110
(412,424)(425,685)(720,926)
(451,234)(411,174)(851,255)
(7,597)(9,336)4,486
(1,007)1,527(1,378)
7(98,113)(124,659)39,037
130137311
(16,698)(27,467)(48,821)
222137584
(728)(5,695)(16,074)
-2,1743,072
(41)(75)(197)
148--
-(250)(825)
(16,967)(31,039)(61,950)
1296,66749,16715,777
1270,362125,42451,589
(27,339)(18,863)(44,306)
(2,998)(2,094)(4,400)
136,692153,63418,660
21,612(2,064)(4,253)
10,27114,49314,493
(51)(5)31
4(1,328)-(981)
Statement of cash flows
For the six months ended 31 Janu
ary 2024
Cash flows from operating activities
C
ash receipts from customers
Cash paid for milk purchased
Cash paid to other creditors and employees
Net movement in goods and services tax
I
ncome tax refunds
Net cash (outflow) / inflow from operating activities
Cash flows from investing activities
Interest received
Acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Acquisition of intangible assets
Proceeds from sale of intangible assets
Acquisition of biological assets
Proceeds from sale of b
iological asset
Acquisition of investment
Net cash outflow from inves
ting activities
Cash flows from financing activities
Receipt of borrowings
Net movement in working capital facility
Interest paid
R
epayment of lease liabilities
Net cash inflow from financing activities
Net increase / (decrease) in cash and cash equivalents
C
ash and cash equivalents at the beginning of the period
Effects of exchange rate changes on cash and cash equivalents
Cash included in disposal group classified as held for sale
Cash and cash equivalents at end of the period
30,50412,4249,290
The accompanying notes form part of and are to be read in conjunction with these financial statements.
-7-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
Notes to the condensed interim financial statements
For the six months ended 31 Janu
ary 2024
1 Reporting entity
The condensed interim financial statements presented consolidate the financial results of the Group, including Synlait Milk
Limited and its subsidiaries Synlait Milk Finance Limited, The New Zealand Dairy Company Limited, Eighty Nine Richard
Pearse Drive Limited, Synlait B
usiness Consulting (Shanghai) Co., Ltd, Dairyworks Limited, Synlait Milk (Holdings) No.1
Limited, and Synlait Milk (Dunsandel Farms) Limited.
Synlait Milk Limited is primarily involved in the manufacture and sale of dairy products.
The parent company, Synlait Milk Limited, is a profit-oriented entity, domiciled in
New Zealand, registered under the
C
ompanies Act 1993 and listed on the New Zealand Stock Exchange and the Australian Securities Exchange. Synlait Milk
Limited is a FMC reporting entity under the Financial Market Conducts Act 2013 and its financial statements comply with that
Act.
2 Basis of preparation of interim financial report
The condensed interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice
(NZ GAAP) as appropriate for interim financial statements. They comply with International Accounting Standard 34 (NZ IAS
34) and New Zealand equivalent to International Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and other
applicable financial reporting standards appropriate for profit oriented entities.
These interim financial statements should be read in conjunction with the Group's financial statements for the period ended
31 July 2023.
Synlait Milk Limited is subject to seasonal fluctuations which have an impact on both revenue and production levels. These
occ
ur due to changes in product mix decisions from fluctuations in customer demand and in response to the unpredictable
n
ature of milk supply as climatic conditions influence milk supply across the North Island and South Island of New Zealand.
Items included in the interim financial statements of the Group are measured using the currency of the primary economic
environment in which each entity operates (‘the functional currency’). The financial statements are presented in New Zealand
Dollars ($), which is the functional currency of the parent and are rounded to the nearest thousand ($'000).
Material un
certainties relating to Going Concern
As at 31 January 2024, the Group recorded an aft
er-tax loss for the six months of $96.2m, operating cash outflows of $98.1m
and
a working capital deficit of $204.9m, with loans and borrowings due for repayment and/or refinancing in the next twelve
months of $514.1m. Borrowings due for repayment and/or refinancing in the next twelve months include secured syndicated
senior debt of $334.1m and unsecured subordinated retail bonds of $180m.
In preparing these financial statements, the Directors have conducted a comprehensive assessment of certain events,
conditions, and related material uncertainties. Although the Directors have concluded that it is appropriate to prepare these
interim financial statements on a going concern basis, they have concluded that there are material uncertainties which may
cast significant doubt over the Group’s ability to continue trading as a going concern.
The material uncertainties are outlined in detail below and have arisen primarily as a result of:
- A slow recovery in business performance, due to a variety of factors, impacting short-term cashflows;
- A protracted Dairyworks sale process; and
- Significant levels of debt due for repayment in the short term, as noted in the financial position section below, resulting
in the Group’s current liabilities exceeding its current assets by $204.9m. The Group is unable to repay these debts on
demand without additional support from shareholders or from other sources of capital.
-8-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
Notes to the condensed interim financial statements(continued)
The successful execution of an equity raise in combination with other deleveraging options by 31 July 2024, as discussed in
this note, is critical to the ability of the Group to continue trading as a going concern. The final combination of options and the
timing and outcome of those options which will be executed are subject to material uncertainties. The Directors remain
committed and engaged in achieving a successful deleveraging of the Group’s financial position, which should significantly
improve the Group’s credit quality and enable a successful refinancing and/or repayment of the Group’s banking facilities
and the $180m subordinated retail bond due within the next 12 months. The Directors’ assessment of the going concern
assumption assumes successful execution of the sale of Dairyworks and an equity raise, the quantum of which might be
reduced by a possible divestment of the Group’s North Island production facilities.
The following is the Director’s analysis of all relevant material uncertainties:
Dispute with The a2 Milk Company
On 15 September 2023, The a2 Milk Company provided notice of cancellation of the exclusivity arrangements for the
production of a2 Platinum and other nutritional products under the Nutritional Powders Manufacturing and Supply Agreement
(NPMSA). Synlait disputes The a2 Milk Company’s notice of cancellation of exclusivity and is engaged in a binding
confidential arbitration process to determine the validity of The a2 Milk Company’s notice. An outcome is not yet known.
However the Group has reflected a probability weighted outcome to any potential impact on forecast sales volumes in the
five-year forecast on which goodwill and asset impairment testing is based as well as the impact on forecast cash flows over
that period. Refer to note 3 for further information on impairment testing.
Trading performance
The Group announced two material profit downgrades to its previously announced FY24 guidance in the first half of the 2024
financial year. These downgrades were the result of lower-than-expected sales volumes of Advanced Nutrition and UHT
cream products, margin compression across all product groups, inventory management issues, high financing costs due to
higher interest rates and debt levels, and higher than expected manufacturing costs due to lower than expected utilisation of
the North Island plants and continued cost pressures. These events and conditions led to a before-tax loss for the period
ended 31 January 2024 of $37.8m (excluding the impact of impairment of the Synlait CGU of $50.3m and the impairment loss
on measurement of Dairyworks book value to estimated fair value less costs of disposal of $31.1m).
The Directors and management have been engaged in an urgent process to address the deterioration in the Group’s trading
performance and resulting financial position. Measures include a restructuring of the Group’s executive leadership team, the
initiation of a cost-out programme, and a significant focus on operational and sales performance. Significant focus is also
being placed on addressing operational delays which have resulted in lower-than-expected sales of Advanced Nutrition
products, and on a re-launch of the Group’s UHT cream products for which current year demand was impacted by production
issues and delays with initial product runs. The Group also remains committed to deleveraging its balance sheet with the aim
of significantly reducing net debt and financing costs.
Financial position
Whilst resolution of the above business performance challenges will improve business performance, they will not result in a
level of forecast cash inflows necessary to meet significant upcoming debt amortisation obligations. At 31 January 2024, the
Group’s current liabilities exceed current assets by $204.9m, driven by the classification of $514.1m of the Group’s total net
debt of $559m as repayable within 12 months of balance date. On 28 March 2024 the Group renegotiated terms with its
banking syndicate and obtained an extension to 15 July 2024 in respect of a $130m loan prepayment which was originally
due on 28 March 2024.
The Group also obtained an amendment to the shareholder funds covenant (reduced from a requirement of $600m at all
times to $400m at all times) and interest coverage ratio (reduced from a requirement of 2.25x to 1.75x for the 31 July 2024
covenant test) to allow additional time for deleveraging options to be executed by no later than 31 July 2024.
The Group’s renegotiated loan amortisations over the next 12 months include:
a) Debt repayments - $130m mandatory prepayment to the banking syndicate by 15 July 2024 and repayment of the
$180m of unsecured subordinated retail bond which matures on 17 December 2024; and
b) Seasonal amortisation, in line with the routine cycle of debt within the business as outlined in note 12.
-9-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
Notes to the condensed interim financial statements(continued)
The working capital facilities as specified in note 12, expire on 1 October 2024 and will require refinancing. The revolving
credit facility expires on 1 October 2025.
To ensure sufficient cash and debt facilities are available to repay these obligations, the Group is progressing various
deleveraging options with haste, including raising equity, alternative asset sales, and exploring alternative forms of financing.
Without successful execution of an equity raise in combination with other deleveraging options by 31 July 2024, the Group
will be in breach of its banking covenants and the banking syndicate will have the right to call on the full $410m of
outstanding bank debt. The Supervisor for the $180m subordinated bond will also have the right to call on the bond which
will become repayable on demand immediately due to the bank facilities being in default. The loss of support from the
Group’s banking syndicate due to the above commitments not being met resulting in the facilities and bond being called as
well as the inability to refinance longer term debt would result in significant adverse effects on the Group, including the ability
for the Group to remain a going concern.
Impairment
As noted, the Group has recorded a total asset impairment loss of $81.4 million for the period. At the time of these interim
financial statements this also creates further uncertainty with respect to going concern as it is uncertain what impact this may
have on investor sentiment, share price and financing options.
To address the liquidity risk arising from the Group’s upcoming debt obligations and net current liabilities, a range of
deleveraging initiatives are currently underway, with certain initiatives at a well-progressed stage, albeit subject to material
uncertainties with respect to timings and outcomes. These initiatives include:
a) Dairyworks divestment
The Group’s Dairyworks subsidiary remains classified as a held for sale disposal Group. Challenging market conditions and
tight capital markets have resulted in a slower than anticipated sales process however the Group remains engaged with
prospective purchasers and continues to aim for a completed sale in the second half of the year. Proceeds from the sale of
Dairyworks will be used to repay a mandatory $130m debt prepayment which was originally due on 28 March 2024 but
deferred to 15 July 2024 after an extension was granted by the Group’s banking syndicate on 28 March 2024. Material
uncertainties associated with the timing and outcome of the sale will continue until the sale is complete. These include
material uncertainties over receipt of a suitable offer, execution of a sale and purchase agreement, and obtaining required
shareholder and regulatory approvals, including approval from the Overseas Investment Office (if required), within the
required timeframe.
To ensure liquidity requirements are met the Group’s 39.01% shareholder, Bright Dairy, has committed to providing up to
$130m in the form of a bridging inter-company loan if the Group is unable to meet the 15 July 2024 $130m mandatory
prepayment obligation due to further delays to the sales process. The loan is subject to obtaining all requisite corporate,
shareholder and external approvals on reasonable terms and conditions mutually acceptable by the Group and Bright Dairy
which are yet to be determined.
b) Equity raise
The Group is currently engaged in a process which will aim to further deleverage the Group’s balance sheet through the
issuing of equity. The quantum and structure of the equity raise is still being decided and will depend on the timing and
outcome of other deleveraging options described in this note. Material uncertainties will exist around the quantum, timing,
structure, participation rate, and ultimate success of the equity raise and resulting impact on the Group’s capital and
ownership structure. The Group’s shareholder structure creates further complexity and uncertainty around the potential
outcome of an equity raise. An unsuccessful equity raise will result in significant adverse effects on the Group, including the
ability for the Group to remain a going concern.
An equity raise will be required by 31 July 2024, as a primary means in which to remain a going concern, in that it would be
required in order to continue to comply with banking covenants and improve the Group’s credit quality sufficiently to retain
the support of the Group’s banking syndicate and allow for the successful repayment and refinancing of syndicated debt
facilities on 30 September 2024 and the subordinated bonds on 17 December 2024.
Recognising this uncertainty the Directors have sought support from its 39.01% shareholder, Bright Dairy, who have affirmed
participation in a potential capital raise, subject to meeting certain terms and conditions which were still being worked
through at the time of release of these interim financial statements.
The Directors have also commenced workstreams on additional alternative deleveraging options including a strategic asset
review and alternative forms of financing.
-10-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
Notes to the condensed interim financial statements (continued)
c) Strategic asset review
On 2 April 2024, the Group announced it was conducting a strategic review of its North Island assets. The Group has
struggled to reach an acceptable level of utilisation of its North Island drying and packaging plants. While the medium-term
demand outlook has improved, the North Island operations will continue to
contribute to negative cash flows until utilisation
improves which is forecast to occur from FY26. To minimise the adverse impact of the underutilised plants on the Group’s
near-term cash flows and ensure liquidity, the Group is exploring the possibility of selling either partial or full interests in the
plants. The Directors have sought support from its 39.01% shareholder, Bright Dairy, who have affirmed their support for the
Board’s decisio
n to undertake a strategic review involving the potential sale of North Island assets. Discussions have
co
mmenced with prospective investors and purchasers for the North Island plants, with initial interest expressed. Whether an
asset is divested will depend on the timing and outcome of the other deleveraging options presented in this note.
Consequently, there will be material uncertainties in respect of the necessity, scale, timing, required approvals, and ultimate
outcome of potential further asset divestment
s.
d) Alternative forms of financing
The Group is progressing alternative financing options, including restructuring the banking syndicate to add additional banks
or obtaining financing through a perpetual c
apital note (if required). The perpetual capital note could provide preferred equity
funding of $100m to $150m to repay debt as part of the wider deleveraging programme, if required. The Group has had
positive initial discussions on a potential restructure of the banking syndicate and is well progressed with the perpetual
c
apital note.
The further divestment of North Island assets and alternative forms of financing remain plan B options and material
uncertainties wi
ll exist with respect to whether these options are required to be progressed further, as well as the timing and
o
utcome of the options.
e) Letter of support from Bright Dairy
As referred to above and within the subsequent events note 17, on 28 March 2024 the Group received a binding letter of
support from Bright Dairy, the ultimate owner of the Group’s major shareholder, which indirectly owns 39.01% of the shares in
the
Group. The letter includes a commitment to participate in a future equity capital raising (subject to certain terms and
conditions including consideration of current shareholding structure) and to extend up to a $130m inter-company bridging
loan at the request of Synlait to ensure short term liquidity requirements can be met (if required), subject to the Group and
Bright Dairy receiving all necessary approvals. In addition, it provides support for the deleveraging options which are
currently progressing.
The letter also reinforces Bright Dairy's ongoing support for the Group in more general terms, including other commitments
to the Group on a non-binding basis.
Conclusion
Despite the options available to the Group, the Directors reiterate that there are material uncertainties as noted above,
relating to unknown future events that are not fully within their control, that may impact its ability to successfully execute one
or more of the above options. Therefore there are material uncertainties related to events and conditions that may cast
significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of business.
The financial statements do not include any adjustments which may be required if the Group is unable to continue as a going
concern.
New accounting policies, standards, interpretations, and amendments adopted during the period
There are no new policies, standards, interpretations, or amendments that were adopted in the period which have or are
expected to have a material impact on the Group.
-11-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
Notes to the condensed interim financial statements(continued)
New accounting policies, standards, interpretations, and amendments not yet adopted
NZ CS 1, CS 2, CRDC - Climate related disclosures
In December 2022, The External Reporting Board (‘XRB’) of New Zealand issued Aotearoa New Zealand Climate Standards,
a new climate-related disclosure framework. Three new standards have been issued: NZ CS 1 Climate-related Disclosures,
NZ CS 2 Adoption of Climate-related Disclosures, and NZ CS 3 General Requirements for Climate-related Disclosures. The
guidance is aligned to the International Task Force on Climate-related Disclosures (‘TCFD’) disclosure framework which
focuses on governance, strategy, risk management, and metrics and targets.
The Group is preparing for the release of initial disclosures in November 2024 for the period ended 31 July 2024.
There are no other standards that are not yet effective and expected to have a material impact on the Group in the current or
future reporting periods and on foreseeable future transactions.
Certain comparatives have been restated to conform to changes in current year presentation.
Material events and other significant items during the period
Impairment testing of Synlait CGU
The Group was required to undertake an impairment test of the Synlait cash generating unit ("Synlait CGU") at 31 January
2024 due to the significant excess of net asset value over market capitalisation and two material earnings downgrades to its
previously announced FY24 guidance in the first half of the 2024 financial year constituting indicators of impairment in
accordance with NZ IAS 36 "Impairment of Assets." An impairment charge of $50.3m has been recorded in the period and is
driven by a more conservative view of margins and volumes expected to be achieved over the forecast period on which
impairment testing is based as well as underutilisation of the Group's North Island facilities. Refer to note 3 for further
information.
Dairyworks sale and loss on measurement of Dairyworks disposal group
On 2 June 2023, the Group announced its intention to divest of its Dairyworks subsidiary resulting in the classification of
Dairyworks as a held for sale disposal group. A board approved programme remains underway to divest Dairyworks, with an
aim to complete a sale in the second half of the 2024 financial year. Whilst certain routine approvals will be required to
enable the sale, the Group considers that these are likely to be granted. At 31 January 2024, the fair value less costs of
disposal (FVLCD) of Dairyworks was determined to be below the net asset value of the disposal group. As a consequence, a
loss on measurement to FVLCD of $31.1m was recognised in the period. Refer to note 4 for further information.
Amendments to banking facilities
Subsequent to 31 January 2024, the Group obtained an extension to 15 July 2024 in respect of the $130m loan prepayment
which was originally due on 28 March 2024. The Group also obtained an amendment to the shareholder funds covenant
(reduced from a requirement of $600m at all times to $400m at all times) and interest coverage ratio (reduced from a
requirement of 2.25x to 1.75x for the 31 July 2024 covenant test).
Material change in accounting estimate
During the period, the Group adopted a new inventory costing methodology which has been determined to be a change in
accounting estimate in accordance with NZ IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" and
accounted for prospectively.
The new methodology has been designed to reflect a cost of production specific to the cost base of the asset used in that
production. This has resulted in an increase in overhead costs attributed to ingredient products (with a trivial change in costs
attributed to consumer food and foodservice products), reflecting Synlait utilising nutritional-grade facilities for ingredients
production.
The change in estimate has resulted in a significant one-off impact in the current financial period ($8.4m reduction to NPAT)
due to a significantly higher level of overhead costs attributed to opening work-in-progress inventories of Advanced Nutrition
base powders.
-12-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
Notes to the condensed interim financial statements(continued)
Arbitration and disputes with The a2 Milk Company
During the period, the Group announced it was involved in a confidential binding arbitration process with The a2 Milk
Company to determine the validity of The a2 Milk Company’s notice of cancellation of the exclusivity arrangements under
Nutritional Powders Manufacturing and Supply Agreement (NPMSA) for a2 Platinum® and other nutritional products. The
parties have jointly appointed the arbitrator and are in the process of finalising the arbitration agreement which will govern
the arbitration and set the timetable for the exclusivity dispute to be resolved during 2024. Synlait and The a2 Milk Company
have agreed that additional matters in dispute between the parties will be resolved through arbitration. This includes the
ownership of the know-how and intellectual property in the products, the continuance or otherwise of certain commercial
clauses under the NPMSA, responsibility for airfreighting costs, pricing, whether or not certain products are products under
the NPMSA or new products, and other matters in dispute. An outcome for the arbitration is not yet determinable however
the Group has recognised provisions and accruals where reliable estimates can be made, based on information available. As
the arbitration progresses (or a final determination is made by the arbitrator), these assumptions may change, however no
further contingent assets or liabilities have been disclosed.
Climate Risk
The Group’s operations are likely to be impacted by future climate change. These impacts may be physical (e.g. severe or
unusual weather patterns and events) or transitional (e.g. changes to government regulations or customer and supplier needs
and demands). The Group regularly assesses its operating environment with regard to the impact of climate change.
Specific consideration has been given in these financial statements to the impact of future climate change on the useful lives
of the Group’s property, plant, and equipment, impairment of intangible assets (NZUs), and carrying value of loans and
borrowings (ESG linked loans). No significant impacts were noted during the period.
Milk price accrual
At interim reporting date, the milk price accrual is a key management estimate. The milk price accrual represents the amount
the Group is forecasting to pay its suppliers for the current year less advance payments made during the period. The Group's
policy is to value its inventory using the weighted average monthly milk price based on the Group's forecast annual milk price
for the season. Managements' forecast of the milk price for the season is the basis of the calculation of the milk price accrual
and at interim reporting date requires judgement from management. Key assumptions in the calculation of the forecast
annual milk price for the season include dairy commodity prices, on-farm milk composition, sales and production curves,
annual foreign exchange conversion rate and other conversion costs.
-13-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
3Impairment of assets
During the period, the Group announced downgrades to forecast financial performance and traded at a market capitalisation
significantly below net asset value. Because these constitute indicators of impairment, the Group was required to test for
impairment as at 31 January 2024. The impairment test has been performed for the Synlait CGU only as the indicators of
impairment are directly related to the CGU’s performance.
While no indicators of impairment exist for the Dairyworks CGU, because it is classified as a disposal group it is required to
be measured at fair value less costs of disposal (FVLCD) in accordance with the requirements of NZ IAS 5 “Non-current
Assets Held for Sale and Discontinued Operations." Refer to note 4 for further information.
The Group’s impairment test is based on a value-in-use (VIU) calculation which uses five-year cash flows based on Board
approved business plans and is discounted based on a CGU specific weighted average cost of capital (WACC) as determined
by an independent third party. The discounted cash flow was modelled using the following key assumptions:
31 January31 July
2024
Unaudited
2023
Audited
Synlait CGU
Annual revenue growth rates within forecast operating cashflow(0.5%) - 7.6%3.9% - 11.8%
Allowance for increase in expenses within forecast operating cash flow(1.5%) - 5.7%1.5% - 8.8%
Post-tax discount rate9.6%9.2%
Pre-tax discount rate11.9%11.8%
Terminal growth rate2.5%2.0%
Assumptions as at 31 January 2023 have not been disclosed as no impairment test was performed in respect of the period.
The terminal growth rate has increased to 2.5% to reflect the Group's strategic focus on high growth markets. Within the cash
flow forecasts a probability weighted assessment was performed for areas of significant uncertainty.
During the period there were downward revisions to future forecast financial performance due to a more conservative view
of margins and volumes which the Group expects to achieve over the next 5 years. This is due to uncertainty over a dispute
with a key customer of the Group (The a2 Milk Company), increasing competition in the key China market where Synlait is
developing new customer business in the Advanced Nutrition category resulting in a more conservative approach to pricing,
uncertainty over future milk supply, and other macroeconomic factors.
While significant effort and resource continues to be dedicated to progressing growth in the Chinese and Southeast Asian
markets, the decline in forecast volumes also reflects delays in onboarding new Advanced Nutrition customers in recent
years.
This has resulted in an impairment charge of $50.3m. The impairment charge has been mostly allocated to the Group's North
Island operations as a consequence of significant underutilisation.
The impairment has been calculated follows:
31 January 2024
Unaudited
$'000
Synlait CGU
Carrying amount of Synlait CGU at 31 January 2024 prior to impairment test1,260,707
Recoverable value based on value in use
1,210,364
Impairment
50,343
-14-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
3Impairment of assets(continued)
The impairment charge has been allocated against the Synlait CGU's assets as follows:
Balance sheet line item
Carrying amount
31 January 2024
prior to impairment
Unaudited
$'000
Impairment
allocation
Unaudited
$'000
Carrying amount
31 January 2024
post impairment
Unaudited
$'000
Net working capital155,118-155,118
Goodwill6,026(6,026)-
Property, plant and equipment983,359(35,682)947,677
Biological assets4,065-4,065
Intangible assets (current and non-current)73,581(5,607)67,974
Right-of-use assets
38,558(3,028)35,530
Total
1,260,707(50,343)1,210,364
The impairment charge has given rise to a deferred tax asset of $12.4m and has increased the income tax benefit for the
period by a corresponding amount.
The recoverable amount is highly sensitive to small movements within the key assumptions.
Impact on estimated VIU
recoverable amount
Increase/(decrease)
Unaudited
$'000
Change in key assumption
25 basis point increase in discount rate(39,538)
25 basis point decrease in discount rate42,471
50 basis point decrease in terminal growth rate(68,685)
50 basis point increase in terminal growth rate59,588
5% decrease within forecast cash flows*(93,978)
5% increase within forecast cash flows*93,978
* 5% increase/decrease in forecast operating cashflows used as a proxy for probability weightings applied to annual revenue
growth rate and allowance for increase in expenses.
4Held for sale assets and discontinued operations
The Dairyworks CGU comprised of Dairyworks Limited continues to be classified as a disposal group held for sale.
Dairyworks' financial performance has been presented as profit/(loss) from discontinued operations and all profit and loss
note disclosures have been re-presented to exclude the impact of discontinued operations.
A board approved programme remains underway to divest of Dairyworks, with an aim to complete a sale in the second half
of the 2024 financial year. Whilst certain routine approvals will be required to enable a sale, the Group considers that these
are likely to be granted. At 31 January 2024, the fair value less costs of disposal (FVLCD) of Dairyworks was determined to be
below the net asset value of the disposal group. As a consequence, a loss on measurement to FVLCD of $31.1m was
recognised in the period.
-15-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
4Held for sale assets and discontinued operations(continued)
(a)Financial performance and cashflow information
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
$'000$'000$'000
Revenue141,850138,604282,822
Cost of sales(125,844)(125,746)(256,738)
Other income294303,039
Sales and distribution expenses(3,826)(3,998)(6,768)
Administrative and operating expenses(2,736)(2,898)(5,889)
Net finance costs(2,663)(1,647)(3,455)
Income tax(1,880)(1,333)(3,159)
Loss on measurement of disposal group to FVLCD
(31,137)--
Loss / (profit) from discontinued operations
(26,207)3,4129,852
Net cash inflow/outflow
Net cash (outflow) / inflow from operating activities(21,143)1,16532,488
Net cash (outflow) / inflow from investing activities(4,297)(501)(1,787)
Net cash inflow / (outflow) from financing activities
25,7871,224(30,090)
Net increase in cash generated by the discontinued operation
3471,888611
(b)Disaggregation of assets and liabilities held for sale
The following assets and liabilities were reclassified as held for sale:
31 January31 January31 July
2024
Unaudited
$'000
2023
Unaudited
$'000
2023
Audited
$'000
Assets of disposal group classified as held for sale
Cash and cash equivalents1,328-981
Trade, other receivables and other current assets8,826-9,865
Inventories66,002-52,253
Property, plant and equipment29,345-25,594
Intangible assets17,093-17,093
Goodwill58,163-58,163
Impairment of goodwill resulting from measurement to FVLCD(31,137)--
Right-of-use assets
13,915-13,932
Total
163,535-177,881
Property, plant, and equipment includes $7.2m of assets, comprised primarily of land and buildings, which are currently being
considered for sale separately to the disposal group. A binding offer of $7.5m has been received for the assets.
-16-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
4Held for sale assets and discontinued operations(continued)
31 January31 January31 July
2024
Unaudited
$'000
2023
Unaudited
$'000
2023
Audited
$'000
Liabilities of disposal group classified as held for sale
Trade, other payables and other current liabilities(24,353)-(42,680)
Current tax liability(4,199)-(2,990)
Lease liabilities(13,420)-(14,337)
Deferred tax liabilities
(1,249)-(604)
Total
(43,221)-(60,611)
(c)Loss on measurement to FVLCD
At 31 January 2024, the net asset value of the Dairyworks disposal group prior to measurement to FVLCD was $151.4m and
fair value less costs of disposal was estimated to be $120.3m (determined with reference to non binding offers received). The
$31.1m shortfall of FVLCD below the net asset value of the disposal group has been recognised as a loss on measurement to
FVLCD and allocated entirely against goodwill, reducing the carrying value to $27.1m. The carrying value of goodwill prior to
the allocation of the loss was $58.2m. No tax benefit has been recognised in respect of the loss.
5Segment reporting
(a)Reportable segments
The Group identifies the following segments:
- Synlait: manufacture and sale of liquid milk and milk powder based products (nutritionals, ingredients, fresh milk, and ultra
heat treatment ('UHT') milk products).
- Dairyworks: manufacture and sale of cheese and other products (cheese, butter).
The accounting policies of the Group have been consistently applied to the operating segments. Net Profit After Tax (NPAT)
is the measure reported to the chief operating decision-maker (the "Board") for the purposes of resource allocation and
assessment of performance for the Group. A consistent measure has been used for the purpose of reporting the
performance of each operating segment. Inter-segment pricing is determined on an arm’s length basis.
(b)Description of segments
The following is an analysis of the Group's revenue and results by reportable segment:
31 January 2024
Unaudited
SynlaitDairyworksEliminationsTotal
$'000$'000$'000$'000
External revenue651,675141,850-793,525
Inter-segment revenue from sale of goods
1,214-(1,214)-
Revenue from sale of goods652,889141,850(1,214)793,525
Net (loss) / profit after tax for the period(70,014)(26,207)-(96,221)
-17-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
5Segment reporting(continued)
The following is an analysis of other financial information by reportable segment:
31 January 2024
Unaudited
SynlaitDairyworksEliminationsTotal
$'000$'000$'000$'000
Finance income184--184
Finance expense(21,527)(1,965)-(23,492)
Depreciation and amortisation(30,527)--(30,527)
Income tax benefit / (expense)24,924(1,880)-23,044
Impairment of CGU(50,343)--(50,343)
Loss on measurement to fair value less costs of disposal-(31,137)-(31,137)
Total assets1,549,812163,535-1,713,347
Total liabilities
(971,246)(43,221)-(1,014,467)
Total net assets
578,566120,314-698,880
31 January 2023
Unaudited
SynlaitDairyworksEliminationsTotal
$'000$'000$'000$'000
External revenue631,224138,604-769,828
Inter-segment revenue from sale of goods
1,105-(1,105)-
Revenue from sale of goods632,329138,604(1,105)769,828
Net profit / (loss) after tax for the period1,4013,412-4,813
Finance income12215-137
Finance expense(13,263)(1,213)-(14,476)
Depreciation and amortisation(26,452)(2,538)-(28,990)
Income tax expense40(1,333)-(1,293)
Total assets1,714,910184,363-1,899,273
Total liabilities
(1,039,581)(44,910)-(1,084,491)
Total net assets
675,329139,453-814,782
-18-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
5Segment reporting(continued)
31 July 2023
Audited
SynlaitDairyworksEliminationsTotal
$'000$'000$'000$'000
External revenue1,320,758282,822-1,603,580
Inter-segment revenue from sale of goods
2,363-(2,363)-
Revenue from sale of goods1,323,121282,822(2,363)1,603,580
Net profit / (loss) after tax for the period(14,144)9,852-(4,292)
Finance income28129-310
Finance expense(29,331)(2,513)-(31,844)
Depreciation and amortisation(55,403)(4,286)-(59,689)
Income tax benefit / (expense)6,123(3,159)-2,964
Total assets1,507,729177,881-1,685,610
Total liabilities
(834,625)(60,611)-(895,236)
Total net assets
673,104117,270-790,374
(c)Geographical revenue
The Group operates in one principal geographical area being New Zealand. Although the Group sells to many different
countries, it is understood that a significant portion of both infant nutritional and ingredients sales are ultimately consumed in
China.
The proportion of sales revenue by geographical area is summarised below:
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
China%6%15%13
Rest of Asia%24%19%25
Middle East and Africa%8%2%5
New Zealand%55%56%49
Australia%5%6%5
Rest of World
%2%2%3
Total
%100%100%100
All Group non-current assets are located in New Zealand, other than $0.1m (31 January 2023: $0.2m, 31 July 2023:
$0.1m) located in China.
(d)Other profit and loss disclosures
Revenues of approximately 52% (31 January 2023: 50%, 31 July 2023: 55%) are derived from the top three external
customers.
-19-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
6Expenses
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
Notes$'000$'000$'000
The following items of expenditure are included in cost of sales:
Depreciation and amortisation22,23319,85941,061
Employee and contractor costs43,13239,26480,585
Energy costs15,93413,96725,376
Freight8,4279,49017,769
Milk transport16,82716,23926,980
Repairs and maintenance8,0817,45218,701
Inventory provisions and write-downs9,73912,37219,796
Provision movements included in inventory provisions and write-
downs:
Increase in inventory provision97816,5126,057
Increase in onerous contracts provision9(595)1,2042,001
The following items of expenditure are included in sales and
distribution expense:
Depreciation and amortisation4,0952,4165,998
Employee and contractor costs10,2408,23617,637
Insurance8377901,609
Freight1,0592,5555,449
Consultancy, legal, and transaction costs4905731,729
Rent and storage1,059440898
The following items of expenditure are included in administrative
and operating expense and ERP implementation costs:
Depreciation and amortisation4,1994,17712,251
Employee and contractor costs15,22317,35333,356
Director fees388413827
Share based payments expense1981081
Consultancy, legal, and transaction costs5,1907,62214,575
Information services and subscriptions4,7384,9769,339
-20-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
7Reconciliation of (loss) / profit after income tax to net cash outflow from operating activities
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
$'000$'000$'000
(Loss) / profit for the period(96,221)4,813(4,292)
Non-cash and non-operating items:
Impairment of Synlait cash generating unit50,343--
Loss on measurement of Dairyworks disposal group to FVLCD31,137--
Depreciation and amortisation of non-current assets27,62926,70454,205
Depreciation of right-of-use assets2,8972,2865,484
(Gain) / loss on sale of property, plant and equipment(241)46(154)
(Gain) / loss on livestock sales(98)69-
Impairment of property, plant and equipment and intangible assets--165
Gain on sale of New Zealand Units-(1,436)(1,769)
New Zealand Units surrendered1,8431,1771,177
Non-cash share based payments expense198156(83)
Interest costs classified as financing cash flow23,43714,47631,846
Interest received classified as investing cash flow(130)(137)(311)
Loss on derecognition of financial assets3,8812,0666,743
Deferred tax(21,021)6,567(4,610)
Loss / (gain) on derivative financial instruments339(739)143
Unrealised foreign exchange loss / (gain)515(31)
(Gain) / loss on revaluation of biological assets(118)(53)183
Movements in working capital:
(Increase) in trade and other receivables(22,299)(48,822)(1,227)
Decrease in prepayments3,6848,6164,900
(Increase) in inventories(79,757)(234,806)(69,565)
(Increase) / decrease in goods and services tax refundable(7,597)(9,336)4,486
(Decrease) / increase in trade and other payables(13,039)107,48511,474
(Increase) / decrease in current tax asset
(3,031)(3,796)273
Net cash (outflow) / inflow from operating activities
(98,113)(124,659)39,037
8Trade and other receivables
The Group has derecognised trade receivables that have been sold pursuant to the terms of receivables purchase
agreements that the Group has entered into with its bankers. The Group has assessed the terms of the agreements and has
determined that substantially all the risks and rewards have been transferred to the respective banks.
-21-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
9Inventories
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
$'000$'000$'000
Raw materials at cost76,880132,07479,497
Raw materials at net realisable value-1,722-
Work in progress at cost73,28655,906111,528
Work in progress at net realisable value2,0555591,062
Finished goods at cost148,343243,19952,725
Finished goods at net realisable value
15,69734,2875,440
Total inventories
316,261
467,747250,252
Raw material inventories at $76.9m (12,822 MT) (31 January 2023: $133.8m, 21,458 MT; 31 July 2023: $79.5M, 12,245 MT)
have decreased from 31 January 2023 due to the reclassification of Dairyworks raw materials inventory to assets held for
sale. The decrease from 31 July 2023 is driven by changes in planned product mix.
Work in progress inventories at $75.3m (11,488 MT) (31 January 2023: $56.5m, 7,727 MT; 31 July 2023: $112.6M, 14,664 MT)
have increased from 31 January 2023 due to higher holdings of Advanced Nutrition base powders. The decrease from 31 July
2023 is due to the consumption of base powders into finished goods inventory.
Finished goods inventories at $164.0m (30,221 MT), (31 January 2023: $277.5m, 47,220 MT; 31 July 2023: $58.2m, 9,117 MT)
have decreased from 31 January 2023 due to higher holdings in the comparative period as a result of shipment delays driven
by ERP implementation challenges, as well as the reclassification of Dairyworks inventory to assets held for sale. The
increase from 31 July 2023 is due to higher holdings of ingredients powders which are typically at higher levels at 31 January
due to normal trends in sales phasing.
The cost of inventories recognised as an expense during the period was $601.4m (31 January 2023: $526.2m, 31 July 2023
$1,158.2m). The cost of inventories recognised as an expense includes $7.4m (31 January 2023: $7.0m; 31 July 2023: $19.8m)
in respect of write downs of inventory to net realisable value.
The total inventory condition provision at reporting date was $9.7m, of which $4.6m related to finished goods, $0.6m to work
in progress, and $4.5m to raw materials (31 January 2023: $12.7m, $5.0m for finished goods, $1.5m for work in progress, and
$6.2m for raw materials; 31 July 2023: $9.6m, $5.9m for finished goods, $1.3m for work in progress, and $2.4m for raw
materials).
In addition, the total onerous contracts provision as at reporting date was $1.4m (31 January 2023: $1.2m; 31 July 2023:
$2.0m).
During the period, the Group changed the method in which it allocates overhead costs to the cost of inventories. This has
been treated as a change in accounting estimate. Refer to note 2 for further information.
10Property, plant and equipment
During the six months ended 31 January 2024, $12.3m has been added to capital work in progress relating primarily to
routine operational capital expenditure. During this period, $35.4m of historical work in progress was capitalised which
related primarily to upgrades to our North Island operations to enable production of plant-based Advanced Nutrition
products.
At 31 January 2024, an impairment charge of $35.7m was also allocated to property, plant, and equipment relating to the
Group's North Island plants. Refer to note 3 for further information.
11Intangible assets
During the six months ended 31 January 2024, $0.7m has been added to intangible work in progress relating primarily to
routine operational capital expenditure. During this period, $0.4m of historical work in progress was capitalised.
-22-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
11Intangible assets(continued)
At 31 January 2024, an impairment charge of $6.0m was allocated to goodwill, resulting in the carrying value of goodwill for
the Synlait CGU being reduced to $nil at 31 January 2024 (31 January 2023: $6.0m). In addition, a $5.6m impairment charge
was allocated pro-rata to remaining intangible assets. Refer to note 3 for further information. Note that goodwill for the period
ended 31 January 2023 includes goodwill attributable to Dairyworks which has been included in the Dairyworks disposal
group at 31 January 2024. Refer to note 4 for further information.
12Loans and borrowings
Period endedYear ended
31 January31 January31 July
2024
Unaudited
$'000
2023
Unaudited
$'000
2023
Audited
$'000
Current liabilities
Working capital facility (syndicated) NZD111,967133,10146,071
Working capital facility (syndicated) USD68,86951,20864,403
Revolving credit facility154,298166,667133,333
Loan facility fees(355)(324)(80)
Subordinated Bond180,000--
Subordinated bond fees
(643)--
514,136350,652243,727
Non-current liabilities
Revolving credit facility75,702--
Loan facility fees(48)--
Subordinated Bonds-180,000180,000
Bond facility fees
-(1,347)(1,002)
75,654178,653178,998
Total loans and borrowings
589,790529,305422,725
The bank loans and working capital facility within the Group are secured under the terms of the General Security Deed dated
26 June 2013, by which all present and future property is secured to ANZ Bank, Bank of China, China Construction Bank,
HSBC, and Rabobank.
The Group facilities include:
- Secured revolving credit facilities of NZD $230m. These facilities step down over time with maturity dates between 31 July
2024 and 1 October 2025.
-A secured working capital facility of NZD $270m, maturing 1 October 2024 together with an NZD $10m on-demand bilateral
facility. This facility is a seasonal facility where the facility limits change at several times during the term of facility.
In addition, the Group is required to make a prepayment of the higher of any Dairyworks sales proceeds and $130m by no
later than 15 July 2024. This prepayment was originally due on 28 March 2024 before an extension was granted by the
banking syndicate on 28 March 2024 (refer to note 17 for further information).
The Group is subject to capital requirements imposed by its bank through covenants agreed as part of the lending facility
arrangements. The Group met all externally imposed capital requirements for the six months ended 31 January 2024 and 31
January 2023 and the twelve months ended 31 July 2023.
-
23-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
12Loans and borrowings(continued)
The following summarises banking covenants effective for the year ending 31 July 2024:
1. Total shareholder funds of no less than NZD $600m at all times. Subsequent to reporting date, the covenant was amended
to a requirement of NZD $400m at all times. It is likely that the shareholder funds requirement will be amended further upon
completion of deleveraging.
2. Working capital ratio of no less than 1.5x at all times.
3. Interest cover ratio of no less than 2.25x for the 31 July 2024 reporting date, increasing to 3.0x for the 31 July 2025
reporting date. Subsequent to reporting date, the ratio was amended to a requirement of 1.75x for the 31 July 2024 reporting
date, with no change to the 31 July 2025 requirement.
4. Leverage ratio of no greater than 3.5x for the 31 July 2024 reporting date, decreasing to no greater than 3.25x on and from
the 31 July 2025 reporting date.
5. Senior leverage ratio of no greater than 2.25x for the 31 July 2024 reporting date.
Retail bonds:
Borrowings under the retail bond programme are supported by a Master Trust Deed and supplemented by the Series
Supplement entered into between the Group and the New Zealand Guardian Trust Company Limited. The retail bonds are
u
nsecured and subordinated and mature on 17 December 2024. At 31 January 2024, the retail bond had a fair value of NZD
$154.1m (31 January 2023: NZD $169.9m, 31 July 2023: NZD $158.8m), based on NZX Debt Market valuation (NZDX).
13 Share capital
The Group had 218,581,661 ordinary shares on issue as at 31 January 2024 (31 January 2023: 218,581,661, 31 July 2023:
218,581,661). There were no shares granted in the period (31 January 2023: nil,
31 July 2023: nil).
14 Related party transactions
P
arent entity
Bri
ght Dairy Holding Limited hold 39.01% of the shares issued by the Synlait Milk Limited (31 January 2023: 39.01%; 31 July
2023: 39.01%). Bright Dairy Holding Limited is a subsidiary of Bright Food (Group) Co. Limited, a State-Owned Enterprise
domiciled in the Peoples Republic of China.
Other related entities
In June 2013 a subsidiary of Synlait Milk Limited, Synlait Milk Finance Limited, was incorporated to hold all banking facilities
for
the Group and related interest rate swaps. Funds are loaned to Synlait Milk Limited and interest is charged at market
ra
tes.
In January 2015, the Group acquired 25% of the shares of Sichuan New Hope Nutritionals, an infant formula company
registered in China. This company owns and markets the “Akara” and “E-Akara” infant formula brands in the Chinese market,
which are exclusively manufactured by Synlait Milk Limited. New Hope Innovation (Hong Kong) Trading Company Limited is a
related entity of Sichuan New Hope Nutritionals and is engaged in the import and export of dairy foods. Main products
include whole milk powder, skim milk powder and whey powder. The company is the Hong Kong arm of the Chinese New
H
ope Dairy group, New Hope Dairy.
In May 2017 Synlait Milk Limited acquired 100% of the share capital of The New Zealand Dairy Company Limited and Eighty
Nine Richard Pearse Drive Limited. The New Zealand Dairy Company Limited was constructing a blending and canning plant
in Auckland, which was subsequently sold to Synlait Milk Limited and Eighty Nine Richard Pearse Drive owned the land and
b
uildings at which the blending and canning plant was being constructed. The land and building were sold in October 2021.
Both companies are now non-trading entities.
In May 2019, Synlait Business Consulting (Shanghai) Co., Ltd was incorporated. The wholly owned foreign entity started
o
perations from 1 August 2019 and the principal activity of the entity is to provide services to assist Synlait to market products
in China.
On 1 April 2020, the Group acquired 100% of the share capital in Dairyworks Limited. Dairyworks Limited specialises in the
processing, packaging, and
marketing of dairy products, including cheese, butter, and milk powder.
On 3 August 2020 Synlait Milk (Holdings) No.1 Limited was incorporated for the purposes of holding newly acquired land
lo
cated adjacent to the Group’s Dunsandel Operations. Synlait Milk (Holdings) No.1 Limited was previously known as Synlait
Milk (Dunsandel Farms) Limited.
-24-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
14Related party transactions(continued)
On 25 May 2022 Synlait Milk (Dunsandel Farms) Limited was incorporated for the purposes of dairy farming operations
on land located adjacent to the Group’s Dunsandel Operations.
(a)Transactions with other related parties
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
$'000$'000$'000
Purchase of goods and services
Bright Dairy and Food Co Ltd - Directors fees133222267
New Hope Innovation (Hong Kong) - Sale of milk powder products---
Sale of goods and services
Bright Dairy and Food Co Ltd - Sale of milk powder products268381,807
Sichuan New Hope Nutritional Foods Co. Ltd - Sale of milk powder
products---
Other---
All transactions with related parties are at arm's length on normal trading terms.
(b)Outstanding balances
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Period endedYear ended
31 January31 January31 July
2024
Unaudited
2023
Unaudited
2023
Audited
$'000$'000$'000
Current receivables
Bright Dairy and Food Co Ltd - Sale of milk powder products--609
Bright Dairy and Food Co Ltd - Reimbursement of costs(1,218)(1,205)(1,118)
Sichuan New Hope Nutritionals Ltd - Sale of milk powder products---
Sichuan New Hope Nutritionals Ltd - Other costs---
New Hope Innovation (Hong Kong) - Sale of milk powder products---
15Contingencies
No contingent liabilities or assets have been recognised in these financial statements (31 January 2023: $nil, 31 July 2023
$nil).
16Commitments
The Group has committed expenditure as at 31 January 2024 for routine operational capital expenditure projects of $4.2m (31
January 2023: $3.2m, 31 July 2023: $0.8m).
The Group has also committed a further investment of $2.8m to a public-private joint venture in which $0.8m has been
invested to date. The joint venture is intended to undertake a portfolio of investments that will help accelerate delivery of
biological emissions tools to all New Zealand farmers.
-25-

Synlait Milk Limited
Notes to the condensed interim financial statements
For the six months ended 31 January 2024
(continued)
17 Events occurring after the reporting period
Amendment of banking facilities
On 28 March 2024 the Group obtained an extension to 15 July 2024 in respect of the $130m loan prepayment which was
originally due on 28 March 2024. The Group also obtained an amendment to the shareholder funds covenant (reduced from
a
requirement of $600m at all times to $400m at all times) and interest coverage ratio (reduced from a requirement of 2.25x
to 1.75x for the 31 July 2024 covenant test).
Financial support from Bright Dairy
On
28 March 2024 the Group received a binding letter of support from Bright Dairy, the ultimate owner of the company’s
major shareholder, which indirectly owns 39.01%
of the shares in Synlait. The letter reinforces Bright Dairy's ongoing support
for Synlait. The letter includes a commitment to participate in a future equity capital raising (if required) and to extend up to a
$130m
inter-company loan at the request of Synlait to ensure short term liquidity requirements can be met, subject to Synlait
and Bright receiving all necessary approvals.
Strategic review of North Island asset
s
On 2 April 2024 the Group announced its decision to undertake a strategic review of its North Island assets, including its
m
anufacturing facility in Pokeno and its blending and canning facility in Auckland. It will explore the highest-value ownership
structure of the assets to maximise value for all shareholders.
The
strategic review is expected to take several months, and there is no certainty that any transaction will result. No
decisions will be made regarding any potential transaction or other outcomes until the completion of the strategic review.
-26-

Independent auditor’s review report
To the shareholders of Synlait Milk Limited
Report on the condensed interim financial statements
Our conclusion
We have reviewed the condensed interim financial statements of Synlait Milk Limited (the “Company”)
and its controlled entities (the “Group”), which comprise the statement of financial position as at 31
January 2024, and the income statement, the statement of comprehensive income, the statement of
changes in equity and the statement of cash flows for the six month period ended on that date, and
selected explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying condensed interim financial statements of the Group do not present fairly, in all material
respects, the financial position of the Group as at 31 January 2024, and its financial performance and
cash flows for the six month period then ended, in accordance with International Accounting Standard
34Interim Financial Reporting(IAS 34) and New Zealand Equivalent to International Accounting
Standard 34Interim Financial Reporting(NZ IAS 34).
Material uncertainty related to going concern
We draw attention to Note 2 of the condensed interim financial statements, which indicates that the
Group incurred a loss for the period of $96.2m and operating cash outflows of $98.1m for the six
month period ended 31 January 2024 and that its current liabilities exceed its current assets by
$204.9m as at that date. $514.1m of borrowings are classified as current liabilities and are due for
repayment or refinancing in the next twelve months from the date of these condensed interim financial
statements.
The ability of the Group to continue trading as a going concern is dependent on the ability of the
Directors to successfully execute an equity raise in combination with other deleveraging options by 31
July 2024 in order to meet its $130m mandatory prepayment obligation on 15 July 2024, banking
covenant requirements and improve the Group’s credit quality sufficiently to retain the support of the
Group’s banking syndicate and allow for successful repayment or refinancing of its banking facilities
and the $180m unsecured subordinated senior bond due within the next 12 months. A key element of
a successful equity raise and any of the other deleveraging options is the support of the Group’s major
shareholder, Bright Dairy. As explained in Note 2, the outcome and timing of deleveraging plans and
resulting impact on banking syndicate support are subject to material uncertainties, including unknown
future events that are not entirely within the Directors’ control. These events and conditions, along with
the other matters set forth in Note 2, indicate that material uncertainties exist that may cast significant
doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect
of this matter.
Emphasis of matter - impairment of Synlait Cash Generating Unit
We draw attention to Note 3 to the consolidated interim financial statements which describes the key
assumptions used in the impairment model of the Synlait Cash Generating Unit and that a $50.3m
impairment loss has been recognised during the period.
Note 3 also indicates that the assessment of the value-in-use calculation is highly sensitive to various
assumptions. There are significant uncertainties that can impact the key assumptions, and as a result
the magnitude of the impairment. These relate to a dispute with a key customer of the Group (The a2
Milk Company), increasing competition from domestic Advanced Nutrition brands in the key China
market resulting in pricing pressure, delays in the onboarding of new Advanced Nutrition customers,
future milk supply and other macroeconomic factors. The outcome of these uncertainties could
materially impact the value-in-use recoverable amount both positively and negatively. Our conclusion
is not modified in respect of this matter.
PricewaterhouseCoopers, PwC Centre, 60 Cashel Street, PO Box 13-244, Christchurch 8141 New Zealand
T: +64 3 374 3000,www.pwc.co.nz
-27-

Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised)Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibilities are further described in theAuditor’s responsibilities for
the review of the condensed interim financial statementssection of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carried out a non audit service for the Group in the area of a limited scope logistics benchmarking
review. The provision of this other service has not impaired our independence.
Responsibilities of Directors for thecondensed interimfinancial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these condensed interim financial statements in accordance with IAS 34 and NZ IAS
34 and for such internal control as the Directors determine is necessary to enable the preparation and
fair presentation of the condensed interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the condensed interim financial statements
Our responsibility is to express a conclusion on the condensed interim financial statements based on
our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our
attention that causes us to believe that the condensed interim financial statements, taken as a whole,
are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of condensed interim financial statements in accordance with NZ SRE 2410 (Revised) is a
limited assurance engagement. We perform procedures, primarily consisting of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other
review procedures. The procedures performed in a review are substantially less than those performed
in an audit conducted in accordance with International Standards on Auditing and International
Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance that
we might identify in an audit. Accordingly, we do not express an audit opinion on these condensed
interim financial statements.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state those matters which we are required to state to them in our review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company’s shareholders, as a body, for our review procedures,
for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is
Elizabeth Adriana (Adri) Smit.
For and on behalf of:
Chartered AccountantsChristchurch
2 April 2024
PwC
-28-

---

HALF YEAR RESULTS
INVESTOR PRESENTATION
For the six months ended 31 January 2024

123
DELEVERAGING PLAN TO ADDRESS
MATERIAL UNCERTAINTIES
• Banking syndicate remains supportive with
recent amendments to banking faciliites.
• Letter of support received from Bright Dairy.
• North Island assets strategic review
commenced.
• Equity raise preparations underway.
• Dairyworks sale process ongoing.
• Alternative financing options being
considered.
• Siginficant loan repayments will fall due
over the next 12 months. $514m of debt
at 31 January 2024 was classified as
repayable within the next 12 months.
This includes $180m of subordinated
retail bonds and $334m of senior debt.
• Successful execution of deleveraging
options will be required to meet
repayment obligations. Without successful
deleveraging, Synlait may not be able to
meet financial obligations as they fall due.
• There will be material uncertainties
associated with the timing and outcome
of these deleveraging options.
• All stakeholders are encouraged to read
note 2 of the financial statements for
further information relating to material
uncertainties and going concern.
STRENGTHENED LEADERSHIP
AND GOVERNANCE
• The search for a new Independent
Director is complete with the appointment
of George Adams in March 2024.
• Smaller Executive Leadership Team (ELT)
will increase alignment, reduce costs, and
accelerate growth.
BUSINESS RECOVERY PLAN
WELL PROGRESSED
• Initiatives split across balance sheet,
volume growth and performance
optimisation.
• Continued commitment to paying a
competitive farmgate milk price.
PAGE 3
MATERIAL
UNCERTAINTIES EXIST
PAGE 22
PAGE 26
PAGE 2HALF YEAR RESULTS INVESTOR PRESENTATION 2024
KEY TAKEAWAYS FROM TODAY
RESET WELL PROGRESSED

DELEVERAGING PLAN IN PLACE
Synlait has a clear deleveraging plan to reduce total debt to a sustainable level.
The banking syndicate remains supportive, with amendments confirmed:
Balance sheet options narrowed
Synlait well supported
• Synlait will undertake a strategic review of its world-class North
Island assets, including its manufacturing facility in Pokeno and
its blending and canning facility in Auckland.
• The strategic review will explore the highest-value ownership
structure of the assets to maximise value for all shareholders.
• The strategic review is expected to take several months, and
there is no certainty that any transaction will result. No decisions
will be made regarding any potential transaction or other
outcomes until the completion of the strategic review.
• Synlait remains committed to its core strategic focus, producing
world-class Advanced Nutrition products and growing its
Foodservice cream business.
• Synlait remains in discussions with potential purchasers, but no
sale has been completed or is assured.
• This is a high value business and the Board will ensure the best
possible return is achieved for shareholders.
• Synlait is progressing with an equity raise as a key option
alongside the outcome of the strategic review of the North Island
assets.
• Given that Synlait’s share price is trading at a significant discount
to its net tangible asset value, the Board believes that asset
realisation should be progressed to produce maximum value for
shareholders. Equity raise remains an option under consideration
by the Board in parallel to achieve deleveraging of Synlait’s
balance sheet.
• Extension of the $130 million prepayment from 28 March 2024 to no later than 15 July 2024.
• An additional $30 million of short-term funding from 28 March 2024 to 27 June 2024.
• The Board has received a letter of support from Bright Dairy, which owns 39.01% of Synlait, that
reinforces its ongoing support for the company.
• Amendment of the shareholders’ funds covenant from $600 to $400 million (an ‘at all times’ covenant).
• Amendment of the interest cover ratio is reduced from 2.25x to 1.75x for FY24.
Bright Dairy letter of support received.
• The letter includes a commitment to participate in a future equity capital raising (if required) and to
extend a loan at the request of Synlait, subject to Synlait and Bright receiving all necessary approvals.
Dairyworks sale process ongoing
3
Equity raise
2
North Island assets strategic review commenced
1
PAGE 3HALF YEAR RESULTS INVESTOR PRESENTATION 2024

STRONGER SITE CONTRIBUTION NEEDED
UNDERPINNING NORTH ISLAND ASSETS STRATEGIC REVIEW
A stronger contribution from Synlait’s North Island assets is needed by filling capacity with new customers and/or increasing volumes from existing customers
or by divesting (partially or fully) assets.
Revenue*
FY17FY19FY21FY23FY18FY20FY22FY24
North IslandSouth Island
Production Volume*
FY17FY19FY21FY23FY18FY20FY22FY24
North IslandSouth Island
* Revenue and production volume in the graphs represent the Synlait reportable segment only (i.e., excluding Dairyworks and eliminations).
PAGE 4HALF YEAR RESULTS INVESTOR PRESENTATION 2024

KEY FINANCIAL METRICS
3%
TOTAL GROUP REVENUE
$
793.5M
8%
NET DEBT
$
559.0M
47%
TOTAL GROSS PROFIT
$
43.6M
$26.5M
OPERATING CASHFLOW
(
$
98.1M)
48%
CAPITAL EXPENDITURE²
$
1 7. 5M
$101.0M
TOTAL GROUP NPAT
(
$
96.2M)
$31.7M
ADJUSTED/UNDERLYING TOTAL
GROUP NPAT
1
(
$
1 7. 4M)
$31.6M
TOTAL GROUP EBITDA
$
19.9M
$26.4M
ADJUSTED/UNDERLYING TOTAL
GROUP EBITDA
1
$
36.1M
5%
FORECAST AVERAGE MILK PRICE FOR
2023/2024 SEASON
$
8.09kgMS
5%
FORECAST BASE MILK PRICE FOR
2023/2024 SEASON
$
7.80kgMS
All comparisons are against HY23 (except for milk price which is against FY23) and include the results of Dairyworks which has been treated as a discontinued operation.
1 Refer to page 8 for a reconciliation of adjusted NPAT and EBITDA.
2 Based on cash outflow for investing activities.
Half Year Adjusted NPAT ($17.4) million, in line with guidance.
HALF YEAR RESULTS INVESTOR PRESENTATION 2024

FINANCIAL
PERFORMANCE
Robert Stowell
Chief Financial Officer

Synlait has recognised an impairment
charge of $50.3 million, which was
ultimately driven by underutilisation of
its North Island manufacturing facilities.
This includes the Pokeno manufacturing
facility, Auckland blending and canning
facility, and related warehousing.
A $31.1 million adjustment was recorded
to write-down the net assets of
Dairyworks to fair value less costs of
disposal. The write-down reflects the
value of non-binding offers received.
A significant change in the basis
of inventory overhead allocation
methodology was initially treated and
forecasted as an accounting policy
change based on external accounting
advice received, however was revised
to be reflected as a change in estimate
based on a technical interpretation of the
accounting standards by our auditors,
resulting in HY24 NPAT experiencing a
non-cash adverse impact of $8.4 million
($11.6 million pre-tax).
PRODUCT COSTING
IMPROVEMENTS
SYNLAIT
IMPAIRMENT
DAIRYWORKS FAIR
VALUE WRITE DOWN
123
HY24 WAS SIGNIFICANTLY IMPACTED BY
THREE NON-CASH ACCOUNTING ADJUSTMENTS
For the half year to 31 January 2024, Synlait reported a net loss after tax of ($96.2) million. The adjusted net loss after tax was ($17.4) million,
which is inside the guidance range released in February 2024. HY24 was significantly impacted by these three non-cash accounting adjustments.
PAGE 7HALF YEAR RESULTS INVESTOR PRESENTATION 2024

SYNLAIT’S HY24 RESULT
Adjusted NPAT movement ($ millions)
HY23 Adjusted
NPAT
HY24 Adjusted
NPAT
Adjusted
Ingredients
Margin
Adjusted
Advanced
Nutrition Margin
Adjusted
Consumer
Margin
Adjusted Other
margin & Other
Income
Adjusted
SG&A Costs
Adjusted
Financing Costs
Adjusted
Income Taxes
(11.0)
(20.8)
14.3
(0.8)
1.6
0.4
(13.0)
11.8
(17.4)
On an adjusted basis, the half-year result was impacted by a less favourable market environment for the
ingredients business, unfavourable FX, lower Advanced Nutrition volumes, and higher inventory write-downs,
operational expenditure, and financing costs. Key differences between reported and adjusted profit were the
impairment of North Island facilities, Dairyworks fair value measurement adjustment, and the impact of an
improved product costing methodology.
Ingredients
• Overall margin ($20.8m) adverse to HY23.
• Volumes up 22,426 MT (60%) as ERP stabilisation
challenges from HY23 did not impact HY24,
providing benefit of $5.7m.
• Margin down ($26.5m) due to significantly lower
SMP/AMF lead bucket, adverse butter price
differentials, unfavourable sales phasing, adverse
FX and higher sales of downgrade product.
Advanced Nutrition
• Overall margin ($11.0m) adverse to HY23.
• Sales volumes down 1,541 MT due to demand and
phasing changes resulting in an impact of ($9.4m).
• Margin down ($1.6m) on a net basis due to FX and
a softening lactoferrin market.
Consumer
• Overall margin ($0.8m) adverse to HY23.
• Volumes up 2,305 MT, driven by 1,635 MT
increase in Dairyworks volumes due to higher
market share.
• Absolute margin decreased slightly due to lower
retail prices.
Financing Costs
• ($13.0m) increase in financing costs due to rising
interest rates, higher average net debt balances,
new North Island warehouse lease, and reduction
in capitalised interest due to lower capital spend.
¹ These items have been excluded as they do not reflect future operating expenses or revenue and will be inconsistent in
amounts and frequency, making it difficult to contribute to a meaningful evaluation of Synlait’s operating performance.
² HY23 adjusted NPAT has been restated as if the product costing methodology had been applied consistently for both periods.
This has resulted in HY23 adjusted NPAT increasing to $14.3m from $8.9m. Refer to page 33 for further information.
Reconciliation of reported to adjusted NPAT ($ millions)
HY24HY23²
Reported NPAT(96.2)4.8
Items affecting comparability¹:
Impairment of Synlait Milk Cash Generating Unit (CGU)50.3-
Loss on fair value measurement of Dairyworks disposal group31.1-
Impact of improved product costing methodology²11.67. 5
Depreciation savings due to classification of Dairyworks as held for sale(2.6)-
Customer contract dispute and transaction costs1.9-
Costs of Red Sea shipping disruption0.4-
Inventory losses resulting from ERP implementation2.3-
ERP implementation costs-5.9
Interest costs attributable to ERP implementation-2.2
Gain on ineffective hedges-(1.0)
Gain on sale of emissions trading scheme credits-(1.4)
Tax impact of above items(16.2)(3.7)
Total NPAT adjustment78.89.5
Adjusted NPAT(17.4)14.3
Reported EBITDA19.951.5
Adjusted EBITDA36.162.5
PAGE 8HALF YEAR RESULTS INVESTOR PRESENTATION 2024

INGREDIENTS PERFORMANCE
Ingredients sales volumes returned to normal levels after ERP stabilisation challenges impacted HY23
volumes. Profitability was down due to less favourable market conditions and FX, reduced lead bucket
advantage, and higher volumes of downgrade product and operational costs.
Performance ($)
Volumes (MT)
Sales
Revenue/MT
Closing
Inventory
Gross Profit/MT
Production
Costs/MT
72,028
37,234
59,661
5,882
6,777
4,908
87,812
71,882
79,724
5,633
6,180
4,885
34,656
42,368
25,543
249
597
23
HY22
HY23
HY24
HY22
HY23
HY24
Due to the change in product costing methodology, historical and current performance has been
normalised to ensure comparability and consistency of performance measures. This has resulted in a
decrease to gross profit of ($1.1m) for HY24, ($10.3m) for HY23 and ($16.8m) for HY22. Refer to page 33
for further information.
Sales Performance
Revenue up 16% (HY24: $293m, HY23: $252m) driven by:
• Volumes up 60% (HY24: 59,661 MT, HY23: 37,234
MT) as HY23 was impacted by ERP stabilisation
challenges.
• Revenue per MT reduced (HY24: $4,908/MT,
HY23: $6,777/MT) due to lower commodity prices,
which drove a lower milk price.
• Product mix mainly comprised of SMP/AMF
(HY24: 81%, HY23: 90%). The SMP/AMF mix
outperformed WMP, but was significantly lower
than HY23 resulting in lower revenue per MT.
Gross Profit Performance
Gross Profit down 94% or $20.8m (HY24: $1.4m,
HY23: $22.2m) driven by:
• Lead bucket advantage reducing half-on-half.
• Butter differential vs our AMF product mix.
Synlait does not produce butter.
• Unfavourable FX performance compared to the
prior year.
• Higher sales volumes of downgrade product.
Manufacturing Performance
Production volumes up 11% (HY24: 79,724 MT,
HY23: 71,882 MT) driven by:
• Lower Advanced Nutrition base powder
production in HY24, providing higher capacity for
production of Ingredients products.
• Costs of sales decreased (HY24: $4,885/MT,
HY23: $6,180/MT) due to the lower milk price,
partially offset by higher manufacturing costs.
Balance Sheet
Closing inventory decreased 40% (HY24: 25,543 MT,
HY23: 42,368 MT) due to HY23 being impacted
by shipping delays brought on by ERP stabilisation
challenges and improved sales delivery management.
PAGE 9HALF YEAR RESULTS INVESTOR PRESENTATION 2024

ADVANCED NUTRITION PERFORMANCE
Volumes and profitability have been phased towards the second half. Margins are down on lower lactoferrin
volumes and a softening lactoferrin market, higher operational costs, and unfavourable FX performance.
Performance ($)
Volumes (MT)
Sales
Revenue/MT
Closing
Inventory
Gross Profit/MT
Production
Costs/MT
13,774
17,415
15,874
12,693
13,267
14,402
8,475
17,795
13,936
9,061
10,754
12,339
7,259
10,545
15,362
3,632
2,512
2,063
HY22
HY23
HY24
HY22
HY23
HY24
Sales Performance
Revenue was flat half-on-half (HY24: $229m,
HY23: $231m); while sales volumes reduced.
• Increase in revenue per MT driven by updated
pricing which reflects recent significant increases
in raw materials and packaging prices, offset by
overall reduction in volume.
• Sales volumes are down due to reductions and
deferrals in demand.
Gross Profit Performance
Decrease in gross profit performance of 25% or $11.1m
(HY24: $32.7m, HY23 $43.8m) driven by:
• Reduction in overall sales volumes in HY24, falling
1,541 MT on reductions and deferrals of demand.
• Lactoferrin sales volumes deferred to the second
half and impacted by a softer market (HY24: 3 MT,
HY23: 7 MT).
• FX headwinds in a falling market, which resulted
in lower margins.
• Higher fixed cost base established to support
production at the North Island manufacturing
facilities. The cost base is designed to support
significantly higher production than current levels
and is contributing to significant under-recoveries
of overhead costs.
Manufacturing Performance
Production volumes down 22% (HY24: 13,936 MT,
HY23: 17,795 MT) driven by:
• HY23 included Advanced Nutrition base powder
production required to accommodate the State
Administration for Market Regulation (SAMR)
license re-registration.
• Additionally, HY23 opened with lower Advanced
Nutrition base powder inventories and therefore
required additional production to meet ongoing
demand.
• Cost of sales increases due to significant
increases in raw materials and packaging prices,
product mix, and higher operational costs.
Balance Sheet
Closing inventory increased 46% (HY24: 15,362 MT,
HY23: 10,545 MT), and is comprised mostly of work
in process Advanced Nutrition base powder which
will be consumed into finished goods over the
balance of the year. HY23 balances were lower than
normal as we ran down closing stock balances prior
to the SAMR re-registration.
Due to the change in product costing methodology, historical and current performance has been
normalised to ensure comparability and consistency of performance measures. This results in an
increase to gross profit of $12.8m in HY24, $17.6m in HY23 and $22.6m in HY22. Refer to page 33 for
further information.
PAGE 10HALF YEAR RESULTS INVESTOR PRESENTATION 2024

CONSUMER FOODS PERFORMANCE
Performance was largely consistent with a slight volume increase offset by lower prices and costs rising at a
faster rate than revenues.
Performance ($)
Volumes (MT)
Sales
Revenue/MT
Closing
Inventory
Gross Profit/MT
Production
Costs/MT
30,400
28,238
30,543
4,894
5,813
5,393
26,564
26,551
28,964
4,637
5,204
4,854
2,388
2,555
2,215
257
610
539
HY22
HY23
HY24
HY22
HY23
HY24
Due to the change in product costing methodology, historical and current performance has been
normalised to ensure comparability and consistency of performance measures. This does not result
in a material change to gross margins. Refer to page 33 for further information.
Sales Performance
Revenue flat half-on-half (HY24: $165m, HY23: $164m)
driven by:
• Increased volumes up 8% (HY24: 30,543 MT,
HY23: 28,238 MT) on improved market share
and customer demand.
• Offset by falling commodity prices resulting in
lower revenue per MT.
Gross Profit Performance
Decrease in gross profit performance of 4%
(HY24: $16.5m, HY23 $17.2m).
• Fresh milk, UHT, and cream margin down ($2.2m),
driven by lag pricing mechanisms. In a rising milk
price environment margins are temporarily reduced
as the cost of milk rises before pricing updates.
This reverses in a falling milk price environment.
• Dairyworks margin, excluding held-for-sale
accounting adjustments, is up $1.5m on increased
market share and growth into Australian and South
East Asian markets.
Manufacturing Performance
Production volumes up 9% (HY24: 28,964 MT,
HY23: 26,551 MT) driven by:
• Increased demand for fresh milk and cream
in the first half.
• Dairyworks increase in production following
increase in market share.
Balance Sheet
Closing inventory reduced slightly. Note that
bulk cheese which is held as a raw material in
Dairyworks did increase half-on-half due to holding
requirements to support capital works initiatives across
the Christmas period (HY24: $55.7m, HY23 $33.6m).
PAGE 11HALF YEAR RESULTS INVESTOR PRESENTATION 2024

FOODSERVICE PERFORMANCE
The first six months of commercial production of UHT cream is complete. While higher than expected start-up
costs have impacted financial performance, Synlait expects future volume growth to drive profitability.
Performance ($)
Volumes (MT)
Sales
Revenue/MT
Closing
Inventory
Gross Profit/MT
Production
Costs/MT
218
1,744
5,110
5,151
328
1,648
5,681
5,105
202
263
(570)
47
829
HY23
HY24
HY23
HY24
HY24 normalised for start-up costs
Sales Performance
• Revenue per MT remained stable, while overall
revenue rose from significant growth in volumes on
commercialisation of initial volumes (HY24: $9.0m,
HY23: $1.1m).
Gross Profit Performance
• Positive gross profit due to first six months of
commercial sales.
• Underlying profitability rises to $829/MT after
excluding the $1.4m of start-up costs, production trials
and downgrades, which aligns with expectations.
• Profitability expected to grow with scale of volumes,
capability building, alongside manufacturing
efficiencies.
Manufacturing Performance
• Production volumes up 402% (HY24:
1,648 MT, HY23: 328 MT) due to product
commercialisation.
• Cost per MT fell as economies of scale
improved.
Balance Sheet
• Closing inventory increased slightly and
remained low due to the product’s fast turnover.
Due to the change in product costing methodology, historical and current performance has been
normalised to ensure comparability and consistency of performance measures. This results in a
decrease to gross profit of ($0.1m) in HY24 and an increase of $0.2m in HY23. Refer to page 33 for
further information.
PAGE 12HALF YEAR RESULTS INVESTOR PRESENTATION 2024

SG&A AND MANUFACTURING COSTS
SG&A costs reduced $5.0m driven by the resolution of ERP stabilisation challenges, which impacted HY23.
Manufacturing costs, which increased $13.7m, continued to be a challenging area driven by higher energy
and employee costs as well as continued inflationary cost pressures.
SG&A and ERP cost movement ($ millions)
Manufacturing cost movement ($ millions)
$5.0m total reduction in SG&A and ERP costs
$13.7m total increase in manufacturing overhead costs
HY23
HY23
HY24
HY24
Rent
Depreciation
Legal
Milk Supply
Distribution
Energy
Consultancy
Cost
Reductions
Depreciation
Dairyworks
Employee
Costs
Other
Dairyworks
1.7
0.7
63.9
152.2
1 .1
2.0
2.4
3.9
1.2
3.2165.9
1.4
(1.5)
(3.9)
(3.9)
0.658.9
SG&A and ERP Costs
Movements compared to HY23 include:
• Rent and depreciation up $2.4m driven by the new
North Island warehouse lease and one-off storage
costs relating to North Island facility upgrades.
• Legal up $1.4m driven by an ongoing dispute with
a key customer.
• Distribution costs were lower by $1.5m and
consultancy lower by $3.9m due to HY23 including
significant one-off costs in relation to challenges
encountered with the go-live of the ERP system.
• Consultancy spend also benefited from ongoing
efforts to reduce reliance on costly external
consultants.
• Other cost reductions of $3.9m across the entire
SG&A cost base resulted from the first phase of
our cost-out programme and the resolution of ERP
stabilisation challenges encountered in HY23.
• Dairyworks up $0.6m due mainly to wage inflation
and higher volumes sold.
There will continue to be significant focus on
achieving further SG&A cost reductions over the
second half of FY24.
Manufacturing Costs
Increases compared to HY23 include:
• Milk supply costs up $1.1m due to higher milk
transport costs and incentives.
• Energy costs up $2.0m due to higher energy prices
and clean energy initiatives.
• Depreciation up $2.4m due to commissioning of
North Island facility upgrades to enable production
of plant-based Advanced Nutrition products.
• Employee costs (including independent contractors)
up $3.9m, driven by impact of annual wage increases
and higher staffing in the North Island to enable
production.
• Other comprises several cost savings and cost
increases which largely offset.
• Dairyworks costs up $3.2m because of costs to
support facility upgrades and higher production
and sales volumes.
First half costs increased ahead of demand, which has
been slow to materialise due to reductions and deferrals
in Advanced Nutrition demand and production delays
which impacted UHT cream sales.
The forward-looking business recovery plan is well
progressed and includes a range of performance
optimisation initiatives which will reduce costs and lift
manufacturing and quality performance.
PAGE 13HALF YEAR RESULTS INVESTOR PRESENTATION 2024

CASH FLOW AND NET DEBT
Net debt ended at $559.0, or $145.5m higher than FY23, due to seasonal inventory build, challenging
operational performance, and higher financing costs.
HY22HY24
11.5
(69.6)
117.2
(124.7)
(98.1)
447.4
485.1
391.8
518.6
559.0
Net cash from operating
activities ($ millions)
Net debt
($ millions)
HY20H120H122HY21H121H124HY23H123
Net debt movement ($ millions)
FY23

Net Debt
Operating
Cash Flow
HY24

Net Debt
CAPEX
Interest
Leases and
Other
98.1
17.5
27.3
2.6
413.5
559.0
Operating Cash Flows
Operating cash flows improved by $26.5m (HY24: ($98.1m),
HY23: ($124.7m)) driven by:
• HY24 not being impacted by the ERP stabilisation
challenges which resulted in significantly higher than
normal inventory levels in HY23.
• This was offset by Synlait’s challenging operational
performance.
Capital Expenditure
CAPEX down 48% (HY24: $17.5m, HY23: $33.5m) driven by:
• Completion of the Synlait Pokeno upgrade which was
commissioned over August and September 2023.
• A return to normal levels of operational capital
expenditure. Operational capex is being closely
monitored with a significant focus on ensuring cash is
invested only in essential or high-return projects.
Financing Costs
Higher interest costs adversely impacted net debt by
$27.3m. This is up by $8.4m on HY23 due to:
• Higher interest rates (impact of $4.1m).
• Higher debt load (impact of $3.0m) due to poor
operational performance and seasonal build of
inventories.
• Higher interest costs on newly entered leases
(impact of $1.3m).
Net Debt
Net debt is $145.5m higher than FY23 due to poor
operational performance, seasonal inventory build and
higher financing costs.
$145.5m total increase over last 6 months
PAGE 14HALF YEAR RESULTS INVESTOR PRESENTATION 2024

DEBT FACILITIES AND BANKING COVENANTS
Synlait’s banking syndicate remains supportive through what has been a challenging period of financial performance and divestment of assets, as reflected
in recent amendments to key financial covenants and extension of the prepayment of at least $130m from no later than 28 March 2024 to 15 July 2024.
Synlait has syndicated bank facilities with ANZ Bank, Bank of China, China
Construction Bank, HSBC and Rabobank. ANZ Bank are Syndicate Lead.
The syndicated banking facilities were amended on 28 March 2024 reflecting recent
underperformance of the business and delays in deleveraging. The amended facilities
reflect the syndicate’s ongoing support for Synlait.
The secured facilities are summarised as follows:
1. Working capital facility of $270m, maturing 1 October 2024, together with a $10m
on-demand bilateral facility. The facility is seasonal where the facility limit changes at
several times during the term of the facility.
2. Revolving credit facilities of $230m. These facilities also step down over time with
maturity dates between 31 July 2024 and 1 October 2025.
In addition, the Group is required to make a repayment of at least $130m by no later than
15 July 2024 (previously no later than 28 March 2024).
Synlait also has borrowings through retail bonds:
Synlait currently has $180m of five-year unsecured subordinated fixed rate bonds which
were listed on the NZX Debt Market in December 2019, and mature on 17 December 2024.
Synlait has key financial covenants in place with its banking syndicate.
Covenants for the facilities as recently amended are:
1. Total shareholder funds of no less than NZD $400m at all times (previously $600m).
2. Working capital ratio of no less than 1.5x at all times.
3. Interest coverage ratio of no less than 1.75x for the 31 July 2024 reporting date
(previously 2.25x), increasing to 3.0x for the 31 July 2025 reporting date.
4. Leverage ratio of no greater than 3.5x for the 31 July 2024 reporting date,
decreasing to no greater than 3.25x on and from the 31 July 2025 reporting date.
5. Senior leverage ratio of no greater than 2.25x for 31 July 2024.
PAGE 15HALF YEAR RESULTS INVESTOR PRESENTATION 2024

Grant Watson
Chief Executive Officer
BUSINESS
UPDATE

FY24 and FY25 Strategic Priorities
ADVANCED NUTRITION
Leadership
• New Chief Revenue Officer (CRO) role has been
established. Naiche Nogueira, previously the Director of
Advanced Nutrition, has been appointed to this role.
• Naiche is responsible for the Advanced Nutrition
and Ingredient businesses, Innovation, New Product
Development, Programme Management and Regulatory
teams.
• The CRO role will reduce complexity through a single point
of customer contact across the Advanced Nutrition and
Ingredients business units.
Business Development
• Dairy/non-dairy hybrid nutrition products now being exported
to a range of Asia Pacific markets in various can and flexible
packaging formats.
• Trials and audits underway to produce infant formula base
powder for South East Asian markets, following signing of
Memorandum of Understanding with a new prospective
customer.
• Continuing to diversify markets and categories in the
lactoferrin business (e.g. adult, general food) to reduce
Synlait exposure to price volatility and address greater
demand.
• Expanding portfolio into Essential Nutrition, addressing
customer and consumer needs within strategic markets.
EARLY LIFE NUTRITIONADULT NUTRITION
Sport
nutrition
Clinical
nutrition
Active
nutrition
Healthy
ageing
Maternal
nutrition
Infant
nutrition
Child
nutrition
Essential
nutrition
Lactoferrin and
specialty ingredients
ADVANCED INGREDIENTS
ADVANCED NUTRITION – LIFE STAGE NUTRITION
Deliver compelling value to two
cornerstone strategic customers.
Grow Early Life and Adult Nutrition
business in China and South East Asia.
Diversify specialty ingredient product
categories and customers.
PAGE 17HALF YEAR RESULTS INVESTOR PRESENTATION 2024

草
莓
奶
油
蛋
糕
FOODSERVICE
Business Development
• Joyhana China sales volumes delivering against
growth expectations. This partnership with Sinodis
has achieved strong market recognition in China.
• Global food company Uhrenholt confirmed the first
UHT cream order for April 2024 production under
its Emborg brand (see photo below). Uhrenholt
launches into South East Asia in May 2024.
• South East Asia is a key growth region for Synlait
due to its economic growth, urbanisation, and the
expansion of China brands and route to market
partners.
• An innovation pipeline is underway to bring
the second generation of Joyhana to market in
December 2024.
Joyhana Market Recognition
• Joyhana has been showcased across a wide range
of local food shows and demonstrations in China
and has been well received.
• The Synlait and Joyhana stand received the
Excellent Exhibitor award at the China International
Import Expo (October 2023).
Synlait on display during the sixth annual China
International Import Expo in Shanghai (top).
Joyhana cream on display (bottom).
PAGE 18HALF YEAR RESULTS INVESTOR PRESENTATION 2024
Joyhana UHT cream, manufactured
by Synlait for Sinodis (bottle 1).
Urhenholt branded cream, Emborg,
manufactured by Synlait (bottle 2).
FY24 and FY25 Strategic Priorities
Grow market share and distribution
in China and South East Asia.
Expand innovation pipeline (beverage
cream and other functional creams).
Category expansion (partnering
approach in medium-to-long term).

Leadership
• Ingredients business now reports to Chief Revenue
Officer (see page 17 for further detail).
Business Development
• New five-year co-investment partnership with
Nestlé announced via Lead With Pride™ to support
Synlait farmer suppliers with on-farm sustainability,
by providing investment in new emissions
reduction tools.
• Significant increase in higher margin, multi-year
contracts with multinational customers.
FY24 and FY25 Strategic Priorities
The ingredient strategy is unchanged and is delivering
to plan. It remains focused on:
INGREDIENTS
PAGE 19
Optimising product mix, delivering premiums
above Global Dairy Trade, sales phasing,
and growing its value-added portfolio.
Further reducing operational complexity
and continuing to optimise cost base.
Commercialising Synlait’s sustainability
credentials.
Synlait CEO Grant Watson and Nestlé Global Chief Procurement Officer Patricia
Stroup launching the unique three-way partnership between Nestlé, Synlait, and
its farmer suppliers to help fund innovative on-farm emissions reduction tools.
PAGE 19HALF YEAR RESULTS INVESTOR PRESENTATION 2024

Dairyworks Sale Ongoing
• Synlait remains in discussions
with purchasers, but no sale has
been completed or is assured.
• This is a high value business
and the Synlait Board will
ensure the best possible return
for shareholders.
• Dairyworks EBITDA
performance continues to track
positively towards budget
expectations, this will be
materially higher than FY23.
Capital Improvements
• Capital improvements made
to enable greater labour
efficiencies, health and safety
improvements, and quality at
the Dairyworks processing
facility are ongoing and support
overall optimising efficiencies
for future productivity.
Business Development –
Local
• Focus has been on sustainable
packaging development for
Dairyworks’ offerings and other
customers’ brands. Examples
include New Zealand domestic
private label (i.e., recyclable and
reduced plastic use packaging)
and changes to the New Zealand
regulatory landscape via the new
Plain English Allergen Labelling
(PEAL) rules.
• The Rolling Meadow brand
positioning and visual identity
has been refreshed after 15 years
in the market (photo on right).
Selected national media will
support the rebrand.
CONSUMER
New Rolling Meadow branding launched in 2024.
Business Development –
International
• New customer opportunities for
snacking, slicing, and grating
products in the retail and
foodservice segments have come
online in Australia and South
East Asia. These opportunities
remain in the early stages and
will continue to progress into the
second half of FY24.
• Dairyworks’ positioning in
Woolworths Australia is driving
incremental volume increases
in slice, grate, and snacking
cheese due to changing market
conditions in Australia.
• South East Asia and Australian
markets continue to be a
significant growth engine
for Dairyworks, focusing on
retail (brand) and partnership
opportunities (i.e., co-packing)
with commercial delivery to be
realised in FY25.
PAGE 20HALF YEAR RESULTS INVESTOR PRESENTATION 2024

On-Farm Excellence Update
Strategy
• Retention of our high-quality milk
supply remains a critical priority.
• As the balance sheet has come
under continued pressure,
cessation notices from farmer
suppliers have increased
compared to previous years.
The cessation notice period is
two-years, which means Synlait’s
current financial performance is
not impacted. Synlait is confident,
given the progression of the
reset plan, that there is currently
limited material risk to future
financial performance.
• Strong competitive farmer
supplier offering remains in place.
Enhancements to farmer suppliers’
competitive advantage model
• New partnership with Farmlands
will provide better value for
farmer suppliers by leveraging
collective buying power to gain
improved pricing on-farm.
• Ongoing work to improve digital
and financial tools.
ON-FARM EXCELLENCE AND SUSTAINABILITY
Lead With Pride™ incentive changes
• The Lead With Pride™ incentive
changes came after reviewing
key stakeholders’ feedback.
• Changes increase the
greenhouse gas (GHG), somatic
cell count, and milk quality
incentives. The new incentives
will encourage use of feeds that
have a lower impact on GHG
emissions.
• Continuous GHG improvements
over time will be recognised
within the incentive payments
for the first time, further
encouraging farmers to reduce
their GHG footprint profitably.
Synlait farms (Dunsandel)
• Progressing with Lead with
Pride™ certification after a period
of significant improvements
following the purchase of these
properties in May 2020.
Sustainability Update
B Corporation™ recertification
Synlait achieved B Corporation™
recertification, the global gold
standard accreditation for
sustainability. Synlait’s score
increased by 21.5% and remains
the largest New Zealand company
with the accreditation. Score
improvements came from:
• Governance: New social and
environmental performance
metrics are now linked to
ELT compensation and job
descriptions, and the Board also
reviews the company’s social
and environmental performance.
Synlait also added Purpose
and Stakeholder Consideration
clauses to its constitution to
maintain its certification.
• Environment: Improved
measurement and management
of Synlait’s greenhouse gas
footprint across the company’s
value chain.
Gary Michael from the Synlait Farmer Leadership Team on-farm in Rakaia.
PAGE 21HALF YEAR RESULTS INVESTOR PRESENTATION 2024

FORWARD-LOOKING BUSINESS
RECOVERY PLAN IS WELL PROGRESSED
It has been a challenging half-year for Synlait as it continues to reset the company to better achieve strategic objectives, while working
on a plan to significantly reduce elevated debt levels. The forward-looking business recovery plan is progressing across three key areas:
* Assumes no change in underlying business from current strategy.
Synlait’s balance sheet must be
deleveraged. Working capital
management has improved, however,
significant opportunity still exists.
Synlait has excess production capacity
relative to softening global demand.
Accelerating Advanced Nutrition and
Foodservice business development
remains a key priority.
Optimising manufacturing, quality and
supply chain cost performance is critical
to getting Synlait back to profitability.
OPTIMISING
PERFORMANCE
DELEVERAGING
AND CASH FLOW
IMPROVEMENTS
ACCELERATING
VOLUME GROWTH
123
Targeting Net debt below
$200 million by the end of FY25.
Target EBITDA improvement from volume and performance
initiatives $45 million per annum by the end of FY26.*
Targeting over 20,000 MT of volume growth in Synlait value
add products by the end of FY26.*
PAGE 22HALF YEAR RESULTS INVESTOR PRESENTATION 2024

DELEVERAGING AND CASH FLOW IMPROVEMENTS
1
• Continued reduction in inventory,
particularly in base powders, raw
materials, and packaging.
• Continued reduction in CAPEX.
• Continued management of
receivables and payables.
WORKING CAPITAL
AND CAPEX
IMPROVEMENTS
• Banking syndicate remains
supportive, and amendments to
banking facilities have been recently
executed.
• Letter of support received from
Bright Dairy.
• North Island assets strategic review
commenced.
• Equity raise preparations in progress.
• Dairyworks sale process ongoing.
• Alternative financing options being
considered.
CLEAR
DELEVERAGING
PLAN IN PLACE
PAGE 23HALF YEAR RESULTS INVESTOR PRESENTATION 2024

2
ACCELERATING VOLUME GROWTH
• Grow Early Life and Adult
Nutrition businesses in China
and South East Asia.
• Develop a compelling product
portfolio that meets the various
target markets’ needs.
• Expand portfolio into Essential
Nutrition to support growth plan.
• Accelerate growth of UHT cream
through product innovation.
• Grow with current distributor in
China to achieve channel and
geographic expansion.
• Develop new distributor
partnerships in South East Asia
and the Middle East.
• Category expansion (butter and
cream cheese) to be considered
from FY27 onwards.
• Leverage strong and committed
partnership with Bright Dairy
in China.
• Accelerate volume and value growth
of Advanced Nutrition, Foodservice
and Ingredients businesses in China.
ACCELERATE
CHINA GROWTH
GROW ADVANCED
NUTRITION VOLUMES
GROW FOODSERVICE
VOLUMES
PAGE 24HALF YEAR RESULTS INVESTOR PRESENTATION 2024

3
OPTIMISING PERFORMANCE
• Continued reduction in product
turnaround time.
• Improvement in product quality
systems to improve efficiency.
• Further process and system
efficiencies.
• Undertake container utilisation
improvements.
• Implement new and improved
purchasing systems.
• Further improved inventory
management.
• Optimise ERP supply chain module.
• Reduce labour and consultancy
costs through tighter controls on
contractor spend and professional
services.
• Targeted manufacturing cost
reductions, including greater plant
automation.
• Further exploration of energy cost
optimisations.
• Additional optimisation in laboratory
services and testing costs.
• SKU rationalisation and more
efficient production.
• Continued leverage of continuous
improvement processes.
• Yield improvement through reduced
milk losses.
• Improve asset stability.
IMPROVE
MANUFACTURING
PERFORMANCE
OPTIMISE
SUPPLY CHAIN
COST REDUCTION
INITIATIVES
IMPROVE QUALITY
PERFORMANCE
PAGE 25HALF YEAR RESULTS INVESTOR PRESENTATION 2024

STRENGTHENED LEADERSHIP STRUCTURE | BOARD OF DIRECTORS
The search for a new Independent Director is complete with the appointment of George Adams in March 2024.
Paul McGilvary
• Audit & Risk
Committee Member
• People, Environment
& Governance
Committee Member
Paul Washer
• Audit & Risk
Committee Chair
• People, Environment
& Governance
Committee Member
Ruth Richardson
• People, Environment
& Governance
Committee Member
Edward Yang
• People, Environment
& Governance
Committee Member
Julia Zhu
• Audit & Risk
Committee Member
Tao Zhang
John PennoGeorge Adams
• People, Environment
& Governance Chair
Appointed as an
Independent Director
effective 21 March 2024.
George’s appointment
means Synlait returns to
having three Independent
Directors as required under
its constitution. George will
formally stand for election
by Synlait shareholders
at the company’s Annual
Meeting in December 2024.
• Co-founder of
Synlait, former
CEO, former Chair
• Chair of Dairyworks
Advisory Board
The Deputy Finance Director
of Bright Dairy & Food Co..
was elected as a Bright
Dairy Appointed Director in
February 2024.
Independent Director,
elected Acting Chair in
October 2023.
Board Appointed DirectorIndependent DirectorsBright Dairy Appointed DirectorsActing Chair
PAGE 26HALF YEAR RESULTS INVESTOR PRESENTATION 2024

STRENGTHENED LEADERSHIP STRUCTURE | ELT
Direct reports to the CEO reduced to increase business unit alignment, accelerate growth, and reduce costs.
The key changes include:
• Established a Chief Revenue Officer (CRO)
role to oversee all Advanced Nutrition
and Ingredients customer interactions and
reduce complexity through a single point
of customer contact. Naiche Nogueira,
previously the Director of Advanced Nutrition,
has been appointed to this role. Naiche is
now responsible for our Advanced Nutrition
and Ingredient businesses, Innovation,
New Product Development, Programme
Management and Regulatory teams.
• Disestablished the Director of Quality,
Regulatory & Laboratory Services role. Paul
Mallard, Synlait’s Chief Operating Officer,
is now responsible for Synlait’s end-to-end
operations, including Demand Planning,
Manufacturing, Quality, Laboratory, and Supply
Chain functions.
• Expanded the Director of On-Farm Excellence
and Business Sustainability role held by
Charles Fergusson to include Corporate
Affairs and Strategy functions.
• Dairyworks CEO Tim Carter will continue to
report to Synlait CEO Grant Watson until the
business is sold.
Grant Watson
Chief Executive Officer
Naiche Nogueira
Chief Revenue Officer
Charles Fergusson
Director of On-Farm Excellence,
Business Sustainability and
Corporate Affairs
Cathy Gamlen
Director of People and Culture
Abby Ye
President China and Director
of Foodservice
Enablers
Rob Stowell
Chief Financial Officer
Paul Mallard
Chief Operating Officer
Advanced Nutrition
and Ingredients
FoodserviceOn-Farm Excellence
PAGE 27HALF YEAR RESULTS INVESTOR PRESENTATION 2024

FULL YEAR 2024 (FY24) GUIDANCE STATEMENT
The previously announced guidance stated that EBITDA performance was expected to be broadly flat or down compared to FY23. Synlait’s FY23 EBITDA was $90.7 million.
Synlait now expects the FY24 EBITDA result to be significantly down on FY23 within the range of $45 million to $60 million, excluding a non-cash adjustment for the
product costing method change of approximately $17 million.
The FY24 EBITDA result is impacted by:
• Softening demand and/or margins across all business units.
• Adverse foreign exchange and product mix.
• Increased operating expenses e.g., legal costs, inventory management, and a range of other costs.
In addition to the above, Synlait is facing material uncertainties in respect of the timings and outcomes of various deleveraging options which are currently progressing.
The deleveraging options include an equity raise, a North Island strategic asset review, and the sale of Dairyworks.
The half-year financial statements further detail these material uncertainties. All shareholders are encouraged to review this disclosure in detail.
The Board and Management remain fully committed to deleveraging Synlait’s balance sheet and continuing the focus on improving profitability for the balance of 2024.
The FY24 EBITDA guidance excludes all current and future impairments relating to Synlait and Dairyworks.
Synlait has updated its FY24 guidance.
PAGE 28HALF YEAR RESULTS INVESTOR PRESENTATION 2024

WHAT TO EXPECT FROM SYNLAIT IN THE SECOND HALF OF FY24
• Progression of North Island assets strategic
review, Dairyworks sale, and equity raising
to deleverage the balance sheet.
• Working capital and CAPEX improvements.
• Improve manufacturing performance.
• Improve quality performance.
• Optimise supply chain.
• Cost reduction initiatives.
• Grow Advanced Nutrition volumes.
• Grow Foodservice volumes.
• Accelerate China growth.
231
DELEVERAGING AND
CASHFLOW IMPROVEMENTS
ACCELERATING
VOLUME GROWTH
OPTIMISING
PERFORMANCE
PAGE 29HALF YEAR RESULTS INVESTOR PRESENTATION 2024

APPENDICES

KEY FINANCIAL METRICS
Gross profit per MT ($)*
EBIT per MT ($)
Return on net operating assets (12 month trailing)
Basic earnings per share (cents NZD)Net debt/EBITDA (12 month trailing)
Debt/debt + equity
960.6
532.3
14.6%
14.6
45.2%
3.0
1,109.0
698.5
14.6%
27.0
47.2%
3 .1
557.9
183.2
8.7%
3.2
37.9%
3.2
68.4
(333.1)
(1.6%)
(15.9)
38.7%
12.9
404.5
(854.0)
(6.6%)
(44.0)
44.5%
9.4
539.3
2.8%
(4.2)
34.3%
4.6
983.3
270.9
4.0%
2.2
39.3%
4.5
709.0
215.9
6.1%
4.9
30.0%
2.6
594.6
356.3
0.4%
12.8
33.3%
6.7
H1 20H2 22H1 21H2 23H2 20H1 23H2 21H1 24H1 22H1 20H2 22H1 21H2 23H2 20H1 23H2 21H1 24H1 22H1 20H2 22H1 21H2 23H2 20H1 23H2 21H1 24H1 22
H1 20H2 22H1 21H2 23H2 20H1 23H2 21H1 24H1 22H1 20H2 22H1 21H2 23H2 20H1 23H2 21H1 24H1 22H1 20H2 22H1 21H2 23H2 20H1 23H2 21H1 24H1 22
The above amounts have not been normalised.
* Includes gross profit not attributable to business units
(comprised primarily of margin on raw milk and cream sales,
income from dairy derivatives, and farms contribution).
73.7
PAGE 31HALF YEAR RESULTS INVESTOR PRESENTATION 2024

GROSS PROFIT PERFORMANCE BY CATEGORY
HY20HY21HY22HY23HY24
Sales Volume (MT)
Ingredients45,67356,97172,02837,23459,661
Advanced Nutrition23,65719,67913,77417,41515,874
Consumer16,94230,27030,40028,23830,543
Foodservice---2181,744
Subtotal86,272106,920116,20283,105107,822
Gross Profit ($M)
Ingredients5.9(13.6)17.922.21.4
Advanced Nutrition75.567.650.043.832.7
Consumer(2.3)8.47. 817.216.5
Foodservice---(0.1)0.1
Subtotal7 9.162.475.883.150.7
Gross Profit ($/MT)
Ingredients130(240)24959723
Advanced Nutrition3,1903,4373,6322,5122,063
Consumer(137)277257610539
Foodservice---(570)47
Subtotal9175836521,000470
Revenue ($M)
Ingredients238275424252293
Advanced Nutrition252224175231229
Consumer28131149164165
Foodservice---19
Subtotal518630748648695
Historical and current performance has been restated to reflect performance as if the change in product costing methodology was applied consistently across all periods.
PAGE 32HALF YEAR RESULTS INVESTOR PRESENTATION 2024

EXPLANATION AND NORMALISATION OF PRODUCT COSTING
To improve comparability and consistency the following table presents gross profit by Business Unit normalised as if the new
product costing methodology had been applied consistently across all periods.
During the period, the Group adopted a new improved product costing methodology which has been determined to be a change in
accounting estimate in accordance with NZ IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” and accounted
for prospectively.
The previous methodology applied a level of overhead costs to ingredients products based on what it would cost Synlait if it were a
theoretical ingredient-only producer. Historically this level of overhead cost was determined with reference to the cost structure in
place in FY11 when Synlait was a single dryer, ingredients-only operation, with adjustments applied for inflation and other direct cost
increases.
The previous methodology also applied an underlying principle that most costs, outside of what it would otherwise cost to produce
ingredients, were introduced into the business to maximise output and profitability of advanced nutrition products. Costs that would
not be incurred as an ingredients-only operation were mostly treated as existing for the purpose of producing advanced nutrition
products. Consequently, a significant portion of costs introduced to the business since 2011 were allocated to advanced nutrition
products.
The new methodology has been designed to reflect a cost of production specific to the cost base of the asset used in that
production. This has resulted in an increase in overhead costs attributed to ingredient products (with a trivial change in costs
attributed to consumer food and foodservice products), reflecting Synlait utilising nutritional-grade facilities for ingredients production.
The primary aim of the new methodology is to support better decision making around product mix and asset utilisation, thereby
discouraging production of lower margin products.
The change in estimate has resulted in a significant one-off impact in the current financial period due to a significantly higher level of
overhead costs attributed to opening work-in-progress inventories of Advanced Nutrition base powders. Moving forward the change
in methodology will result in higher margins attributed to Advanced Nutrition products, and lower margins attributed to ingredients
products.
Because the change results in gross profit for reported current and prior periods being presented on an inconsistent basis, gross
profit and cost of sales amounts in this presentation have been normalised to ensure performance is comparable.
Gross profitHY20HY21HY22HY23HY24
As previously presented
Ingredients16.719.034.732.52.5
Advanced Nutrition70.833.627.426.219.9
Consumer(2.2)8.47. 817.216.5
Foodservice---(0.3)0.2
Total85.361.069.975.63 9 .1
Normalised as if applied retrospectively
Ingredients5.9(13.6)17.922.21.4
Advanced Nutrition75.567.650.043.832.7
Consumer(2.3)8.47. 817.216.5
Foodservice---(0.1)0.1
Total7 9.162.475.883.150.7
Normalisation adjustment
Ingredients(10.8)(32.6)(16.8)(10.3)(1.1)
Advanced Nutrition4.734.022.617.612.8
Consumer(0.1)----
Foodservice---0.2(0.1)
Total(6.2)1.45.87. 511.6
PAGE 33HALF YEAR RESULTS INVESTOR PRESENTATION 2024

PAGE 34HALF YEAR RESULTS INVESTOR PRESENTATION 2024
DISCLAIMER
This presentation is intended to constitute a summary of certain
information about the Synlait Group (“Synlait”) or in connection
with its half year 2024 financial results. It should be read in
conjunction with, and subject to, the explanations and views in
documents previously released to the market by Synlait. This
presentation is not an offer or an invitation, recommendation or
inducement to acquire, buy, sell or hold Synlait’s shares or any
other financial products and is not a product disclosure statement,
prospectus or other offering document, under New Zealand law
or any other laws.
This presentation is provided for informational 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 should consult with their own legal,
tax, business and/or financial advisers or consultants before
making any investment decision.
Any forward looking statements and projections in this
presentation are provided as a general guide only based on
management’s current expectations and assumptions and
should not be relied upon as an indication or guarantee of future
performance. Forward looking statements and projections involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of
Synlait and are subject to change without notice. Actual results,
performance or achievements may differ materially from those
expressed or implied in this presentation. No person is under any
obligation to update this presentation at any time after its release
except as required by law and the NZX Listing Rules, or the ASX
Listing Rules.
Any forward looking statements in this presentation are unaudited
and may include non-GAAP financial measures and information.
Not all of the financial information (including any non-GAAP
information) will have been prepared in accordance with, nor
is it intended to comply with: (i) the financial or other reporting
requirements of any regulatory body or any applicable legislation;
or (ii) the accounting principles or standards generally accepted
in New Zealand or any other jurisdiction, or with International
Financial Reporting Standards. Some figures may be rounded and
so actual calculation of the figures may differ from the figures in
this presentation.
Some of the information in this presentation is based on non-
GAAP financial information, which does not have a standardised
meaning prescribed by GAAP and therefore may not be
comparable to similar financial information presented by other
entities. Non-GAAP financial information in this presentation has
not been audited or reviewed.
Any past performance information in this presentation is given
for illustration purposes only and is not indicative of future
performance and no guarantee of future returns is implied or
given.
While all reasonable care has been taken in relation to the
preparation of this presentation, to the maximum extent permitted
by law, no representation or warranty, expressed or implied, is
made as to the accuracy, adequacy, reliability, completeness
or reasonableness of any statements, estimates or opinions or
other information contained in this presentation, any of which
may change without notice. To the maximum extent permitted
by law, Synlait, its subsidiaries, and their respective directors,
officers, employees, contractors, agents, advisors and affiliates
disclaim and will have no liability or responsibility (including,
without limitation, liability for negligence) for any direct or indirect
loss or damage which may be suffered by any person through
use of or reliance on anything contained in, or omitted from, this
presentation.
All values are expressed in New Zealand currency unless
otherwise stated.
All intellectual property, proprietary and other rights and interests
in this presentation are owned by Synlait.

---

Dear Synlait Shareholders
Synlait has announced its financial results for the six months ended 31 January 2024.
It has been a challenging half-year for Synlait as we continue to reset the company to achieve our strategic objectives
while working to reduce our elevated debt levels.
The delivery of our half-year results brings together several reset initiatives, with the announcement of an amendment
to our banking facilities and a strategic review of our North Island assets. These balance sheet reset initiatives are
underpinned by a letter of support from our largest shareholder, Bright Dairy. Bright Dairy’s support, coupled with
the banking amendments, offers Synlait additional stability and confirms that our largest shareholder and banking
syndicate remain very supportive.
Our strategic focus is on Advanced Nutrition and Foodservice, where we have a clear competitive advantage to
deliver diversified, high-value growth. It is supported by a well-run Ingredients business enabled by our market-leading
Lead With Pride™ on-farm excellence programme. We have built a world-class and highly flexible asset base, and we
are well positioned ahead of emerging customer demand trends. Combined with our refreshed leadership team, we
now have all of the pieces in place to execute on this strategy and deliver strong returns for our shareholders.
HERE IS A SUMMARY OF OUR RESULTS:
3%
TOTAL GROUP REVENUE
$
793.5M
8%
NET DEBT
$
559.0M
47%
TOTAL GROSS PROFIT
$
43.6M
$26.5M
OPERATING CASHFLOW
(
$
98.1M)
48%
CAPITAL EXPENDITURE²
$
1 7. 5M
$101.0M
TOTAL GROUP NPAT
(
$
96.2M)
$31.7M
ADJUSTED TOTAL GROUP NPAT¹
(
$
1 7. 4M)
$31.6M
TOTAL GROUP EBITDA
$
19.9M
$26.4M
ADJUSTED TOTAL GROUP EBITDA¹
$
36.1M
5%
FORECAST AVERAGE MILK
PRICE FOR 2023/2024 SEASON
$
8.09kgMS
5%
FORECAST BASE MILK PRICE
FOR 2023/2024 SEASON
$
7.80kgMS
All comparisons are against HY23 (except for milk price which is against FY23) and include the results of Dairyworks which has been treated
as a discontinued operation.
1 Refer to the Investor Presentation for a reconciliation of adjusted NPAT and EBITDA.
2 Based on cash outflow for investing activities.
SYNLAIT PUBLISHES
HALF YEAR 2024 RESULT

Three non-cash items also significantly impacted the HY24 result. We recorded an impairment charge of $50.3 million,
driven by the underutilisation of our North Island manufacturing facilities. There was also a $31.1 million adjustment
recorded to write down the net assets of Dairyworks to fair value less costs of disposal to reflect the value of non-binding
offers received. Finally, there was a change in the basis of inventory overhead allocation methodology. The change was
initially treated and forecasted as a policy change based on external accounting advice received; it was revised to be
reflected as a change in estimate based on a technical interpretation of the accounting standards by our auditor, resulting
in HY24 NPAT experiencing a non-cash adverse impact of $8.4 million.
The adjusted half-year result was impacted by a less favourable market environment for the ingredients business,
unfavourable FX, lower Advanced Nutrition volumes, and higher inventory write-downs, operational expenditure, and
financing costs.
The investor presentation and financial statements released with this announcement, provide a further summary of
Synlait’s financial performance. For more information, click on the links below to access these documents:
• Synlait HY24 Announcement
• Synlait HY24 Chair & CEO Review
• Synlait HY24 Financial Statements
• Synlait HY24 Investor Presentation
We hope these reports provide you with more clarity around our plans and progress to reset Synlait, deleverage
the balance sheet, and return our company to sustainable, profitable growth across diversified channels, categories,
and geographies.
Thank you for your continued support and patience.
Paul McGilvary Grant Watson
Acting Chair CEO

---

Results for announcement to the market
Name of issuer Synlait Milk Limited (SML)
Reporting period Six months to 31 January 2024
Previous reporting period Six months to 31 January 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$652,889 3%
Total revenue $793,525 3%
Net profit/(loss) from
continuing operations
($70,014) (5,097%)
Total net profit/(loss) ($96,221) (2,099%)
Interim/final dividend
Amount per quoted equity
security
N/A
Imputed amount per quoted
equity security
N/A
Record date N/A
Dividend payment date N/A
Current period Prior comparable period
Net tangible assets per
quoted equity security
$2.68 $3.00
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood.
Refer to the following accompanying documents:
 Synlait HY24 Announcement
 Synlait HY24 Chair & CEO Review
 Synlait HY24 Financial Statements
 Synlait HY24 Investor Presentation
 Synlait HY24 Shareholder Letter
Authority for this announcement
Name of person authorised
to make this announcement
Synlait CEO Grant Watson
Contact person for this
announcement
Synlait Head of Strategy & Corporate Affairs Hannah Lynch
Contact phone number +64 21 252 8990
Contact email address hannah.lynch@synlait.com
Date of release through
MAP
Tuesday 2 April 2024

Audited financial statements accompany this announcement.

=== IR PAGE TRANSCRIPT: Synlait HY25 Conference Call Transcript 24 March 2025 ===

TRANSCRIPTION
Company: Synlait Milk
Date: 24 March 2025
Duration: 40 minutes
Reservation Number: 10045074

[START OF TRANSCRIPT]
Hannah Lynch: Good morning, everybody and welcome to Synlait's Half Year Results
Conference Call. My name is Hannah Lynch; Synlait's Head of Milk Supply,
Strategy and Corporate Affairs. And it's my pleasure to be joined by our Acting
CEO Tim Carter, and our CFO Andy Liu here today, who will provide a short
update on our results presentation.
We'll then open the line for Q&A and I ask that when we reach the Q&A portion
of today's result, that you keep your questions to two per person so we can
keep the call moving with pace.
If you have any follow-ups after the call, please feel free to reach out to me
directly otherwise over to Tim to deliver today's results.
Tim Carter: Thank you, Hannah. Welcome to our Half Year Results Investor Presentation.
I'm pleased to share this result as Acting CEO.
Synlait has returned to profitability in the first half. This is encouraging progress.
It has been achieved through focusing on three priority areas. Firstly, the team
has been focused on the fundamentals of manufacturing operations. This
includes cost, quality and yield.
Secondly, our team continues to work hard to rebuild farmer trust and
confidence. The conversations we are having have been robust and are
growing in positivity.
Thirdly, we have prioritised delivery and the acceleration of new business
opportunities, for both existing and new customers. This result is a considerable
commercial achievement and we are really proud to share it with you today.

Our progress includes an EBITDA of $63.1 million, which is just above the
guidance range we provided in January 2025. Group NPAT is $4.8 million and
we are pleased to report a return to profitability, as I mentioned. Lastly, net debt
has reduced by 29%, largely due to the equity placement supported by Bright
Dairy and The a2 Milk Company.
Looking at results at a glance, if you turn to Slide 3, you see more of our key
metrics at a glance. These metrics all have green arrows above them, reflecting
the progress made over the last six months. In addition to the increase in NPAT
and EBITDA and improved net debt, our revenue is up 16% to $916.8 million.
This is a result of an uplift in advanced nutrition demand, optimisation of our
North Island assets, high commodity prices and improved foreign exchange
performance. Our farmer supplies have seen significant increases in our
forecast milk price for the year. Base milk price remains forecasted at $10 per
kilogramme of milk solids, a record figure.
In addition, Canterbury farmer supplies, who do not have a cease in place will
receive secure premiums beginning with $0.20 per kilogramme of milk solids
this season. Add this to the milk incentives many of our farmers receive and the
average forecasted milk payment for Synlait suppliers in Canterbury this
season is $10.48 per kilogramme of milk solids.
Slide 4 has a more detailed overview of our financial result. It shows Synlait is
making progress on the road to recovery. Our adjusted NPAT is an uplift of
$26.1 million compared to Half Year '24. We also had a substantial
improvement in our EBITDA, which increased by $43.2 million.
Solid trading performance has enabled us to optimise operating cash flows and
reduce debt. Our recovery is spread across all of our business units, including
advanced nutrition, ingredients, and consumer. We are focusing on the right
things and delivering widespread results, which is great news.
I will now invite our CFO, Andy Liu to take us through financial performance for
our business units in more detail.
Andy Liu: Thank you, Tim. Good morning, everyone, and thanks for joining us. I am
pleased to share with you these results.

Slide 6 has an overview of our advanced nutrition business. This business has
experienced remarkable growth and success. Revenue increased by 20%,
amounting to $45 million, with sales volume rising by 28%.
Gross profit saw an impressive rise of 80%, achieving $59 million. This growth
was driven by demand from multiple customers along with cost efficiency. This
positive result highlight why advanced nutrition continues to be a strategic
business category for Synlait.
Let's move on to Slide 7. Ingredients also saw a notable uplift. Revenue is up
by $49 million or 17% and gross profit has increased to $14.3 million, up from
$1.4 million year-on-year.
Key improvements include; better foreign exchange management, improved
quality delivery, favourable stream return and enhanced cost efficiency. All of
these have helped a significant improvement of the ingredient performance,
which is something we can celebrate.
On to Slide 8 now, you can see our consumer business remains stable. Sales
slightly decreased this year, half year, but our gross profit increased by $2.2
million. This was the result of a focus on cost control and improved production
efficiency, which includes some capital improvements which we have begun to
provide returns.
Turning to Slide 9 now please. These are the results of our foodservice
category which is mostly related with UHT cream to China. While volumes
increased by nearly 115% compared to Half Year '24, our margin performance
was well below expectations because of high fat pricing. That concluded in a
$1.4 million profit reduction year-on-year.
The good news is demand is expected to continue increasing. The key focus for
management is to ensure this business unit make a valuable contribution to
Synlait's bottom line in the future.
My last slide, Slide 10, looks at cash flow and net debt. In terms of cash flow,
our operating cash performance is the best it has been since Half Year '21. I
hope that provides confidence in Synlait. It includes a $43 million lift in trading
performance and another $40 million from working capital enhancement.

In the first half of FY25, we limited our capex to $12.7 million. That is the lowest
level of spending since 2017. Our focus instead is on optimising our current
assets.
Even with increased advance payments to support our farmers, we have
successfully reduced our net debt to $392 million. We are making great
progress in reducing debt. By the end of the financial year, we believe that we
will have reduced it even further, placing us in a more solid financial position.
So, in summary, we are reporting an encouraging result. It shows real progress.
Our team is delivering a real turnaround across all our business units. Finally,
we want to reassure you our effort will continue. We are committed to making
the annual results as strong as possible.
Now, I'd like to hand back to Tim.
Tim Carter: Thanks, Andy. We are now on Slide 12, and I'll start with an update on our
advanced nutrition business. This continues to be a strategic focus for us. It is
pleasing to see strong growth in sales volumes have emerged in advanced
nutrition. We have ongoing interest in our Nutrabase range and have recently
begun commercial sales of this range. Future opportunities for us are
significant.
After a softer year, we have seen lactoferrin pricing stabilise recently. Our team
has been expanding our customer base for this product. We continue to
manufacture advanced nutrition products in a range of formats for our
customers; this includes cans, sachets and pouches. Some of these are non-
dairy hybrid product nutrition products, which are manufactured at our Pokeno
site.
Our relationship with the a2 Milk Company continues to strengthen. We're
committed to working with the a2 Milk Company to support the growing infant
formula opportunities which have been identified.
Turning to Slide 13, our President of China and Director of Foodservice, Abby
Yee, and the team are continuing to drive a range of opportunities. Our
foodservice growth and expansion has been significant over the last year.
Our expansion into Southeast Asia has continued largely due to our partnership
with Urenholt. We recently also entered Hong Kong through this partnership.

The second-generation formulation UHT whipping cream was developed late
last year and has successfully moved through testing. Sales into market are
now underway.
We expect production and sales volume for the UHT whipping cream will
continue to increase. We have the capability and importantly, the capacity to
support this at our Dunsandel factory.
Moving on to Slide 14 in Ingredients. In support of both advanced nutrition and
foodservice, we continue to have a strong ingredients business led by our Chief
Revenue Officer, Naiche Nogueira. Following the exit of raw milk in the North
Island and with advanced nutrition activity, there's been a reduction in
ingredients production volumes. However, our sales performance has
increased.
We have had favourable stream returns across the period and improved
management of our foreign exchange. We continue to leverage strong
customer relationships for new opportunities to expand ingredient sales. Our
team is focused on extracting high value returns across our range.
Touching on Dairyworks, and this is Slide 15. Many thanks to our Dairyworks
management and the team for your efforts, while I've been Acting CEO at
Synlait. The management team has led the business, ensuring we continue to
experience strong growth and expanding market opportunities.
Across the New Zealand and Australian markets, our sales volumes and growth
have continued to increase with 23% growth in New Zealand and 28% in
Australia. Our brand refresh activity is complete with the new Alpine brand now
in market.
A recent highlight is the new distribution agreement Dairyworks signed in
February, which sees Dairyworks expand into Vietnam. This strategic
partnership introduces 14 Dairyworks branded products to the market across 87
stores.
Moving to slide 16 and talking about milk supply and on-farm excellence
activity. Strengthening our future milk supply is a priority. Our goal is to show
every farmer why Synlait is a valuable partner. The conversations we're having
with farmers are really positive.

We know farmers are watching our performance and the results today with
interest. We are making progress with milk retention.
The majority of our farmer supplies are not under cease. This is a significant
improvement in our position from six months ago. We're also very comfortable
with our forecasted milk supply for FY26.
Cease reversal numbers are expected to increase ahead of the 31st of March,
which is the final day for farmers to reverse their seas and take advantage of all
of the new secured milk premiums. It is also worth noting that interest from
potential new farmer supplies has exceeded expectations over this period. Our
on-farm team is doing an expanding job in this space. Bring on the week ahead!
Let's talk about maintaining momentum. As we look to the second half of FY25,
our priorities are straightforward.
Our three priorities for the second half are, firstly, to showcase Synlait’s on-farm
offering, ensuring Synlait is Canterbury farmers' processor of choice. We know
there is growing competition for milk in the region, and we're committed to being
a key player.
Secondly, we will seize every opportunity to create and deliver value for our
existing and new customers.
And thirdly, a laser focus on operational and cost efficiency will continue.
The team and I look forward to welcoming Richard Wyeth when he joins Synlait
in May 2025 as permanent CEO, and the knowledge and experience which
Richard will bring.
Moving to guidance. We must maintain the momentum that Synlait has gained.
We will continue to deliver every day, every week, every quarter, and every
year. Our outlook statement reflects that. A continued focus on doing the
fundamentals well will enable Synlait to deliver a significant improvement in our
EBITDA performance compared to prior year.
Progress in the second half of FY25 will be slower than the first half, as we
need to balance several opportunities and risks related to milk stream returns
and foreign exchange. We will also continue to deliver ongoing operational cost
improvements.

You will note the large pink box to the right of the slide. It is important to note,
as I already have in prior slides, that we are comfortable with our forecasted
milk supply for the next financial year. The majority of our farmer supplies are
not under cease, a significant improvement in our position six months ago.
At this time, I'd like to open up the call to questions.
Operator: Thank you. If you wish to ask a question, please press "Star 1" on your
telephone and wait for your name to be announced. If you wish to cancel your
request, please press "Star 2". If you're on a speakerphone, please pick up the
handset to ask your question.
Your first question comes from Nick Mar with Macquarie. Please go ahead.
Nick Mar: Good morning. Could you just talk to the net debt number, so the target range
of $250 to $300? I believe it was sort of $200 to $250 at the time of the equity
raises. Can you just talk through the differences there, whether it's how it's
calculated or what the moving parts are within cash flows that have seen that
change?
Andy Liu: Thanks Nick. This is Andy speaking. So regarding the net debt, which we
communicated for the full year. Actually, if you can remember what we just
shared for the half year, we are about 392 and what we expected the
improvement can come from that -- our better improve for our inventory and
also shift some challenges from the supplier advance payment to the normal
payment terms together with the continuously trading performance which can
contribute it for the cash flow.
Nick Mar: Yes, so my question was not from the first half to the second half, it was from
the prior guidance for closing FY25 net debt, which was $50 million lower
across the range and that was at the time of the raising. So, what were the key
factors that have changed then? Is it mostly milk price and advance rates or is
there something else?
Andy Liu: No, actually I do remember last time when we communicated, this is regarding
this 200 to 250 we have the shareholder loss which is not included. But now we
try to make everything clear. So currently when we talk about 250 to 300, it's
definitely included for the shareholder loan.

Nick Mar: So, the previous number of 200 to 250 didn't. So that means that the equivalent
range would have been 330 to 380 and now you're at 250 to 300, so it's now
$80 million better? Is that what you're saying?
Andy Liu: Yes. And last time it's really for last year it wasn’t clear because at this time
when we stated it's also, we listed it for the senior debt. So we just want to
make it 100% clear regarding the net debt compared with senior debt.
Nick Mar: Okay, sure. And then just in terms of the EBITDA kind of outlook, when you're
talking about the second half progress will be slower than the first half, are you
talking sort of the absolute dollar value in the second half for EBITDA will be
less than the first half or are you talking percentage increase, or are you talking
some other kind of delta in terms of how you talk about that financial progress?
I'm just trying to understand what you're talking about in there. Because if you
then took the net debt number and the EBITDA covenant ratio it implies a sort
of very low EBITDA number to meet compliance, so obviously you should be
above that but just trying to get some idea of the range?
Tim Carter: Yes Nick, I'll try and make it really simple. Don't take first half EBITDA and
times it by two, is what we're saying. We do have headwinds coming at us. So,
it'll be significantly improved during the year -- for the full year, but on absolute
dollars, if you time it by two, that's not accurate. Does that make sense?
Nick Mar: Okay, no that's fine. Thanks everyone.
Tim Carter: Yes, no problem.
Operator: Your next question comes from Matt Montgomerie with Forsyth Barr. Please go
ahead.
Matt Montgomerie: Hi guys, good morning. Well done on a solid set of numbers. Just on Nick's
question there, I think your guidance for the second half is in the context of sort
of stream returns and FX. Are you able to quantify what the 1H result benefited
from both of those factors, year-on-year?
Andy Liu: Hey Matt, just to try to clarify, your question is more for the second half of the
year regarding the stream return FX other than the first half, right?
Matt Montgomerie: Sorry Andy, in your first half EBITDA what was the benefit versus the prior year
from FX and stream returns?

Andy Liu: Okay, so actually that -- I only have the FX number in my mind and I can come
back to you for the stream returns. So, for the FX, actually the impact is around
14 million to 15 million and this is mostly related with the ingredients business.
If we remember, last year for the full year result we communicated we have
some shortage or shortfalls for foreign exchange and this really shows for the
moment the team, the management is focused on the foreign exchange and
happy to see this good outcome.
Matt Montgomerie: Okay. So just to clarify, the first half versus last year benefited by 14 to 15 in
terms of FX?
Andy Liu: Yes.
Matt Montgomerie: Okay, thank you. Then just on the North Island, I think previously you had
commented on sort of the drag or the losses that that plant had been
contributing. Are you able to talk to that in the first half?
Tim Carter: Yes, so look, I think when we talk about the North Island asset, there has been
a drag. I think we made a pretty clear decision early on that there was going to
become a plant for advanced nutrition, which means we didn't need the raw
milk. And so, by using that raw milk has allowed us to really reset that cost base
on that asset.
And so, what we've done is we've improved by roughly 30% where we were for
the first half. So, we're on, if not slightly ahead of what we call budget for that
plant, for FY25, first half.
Matt Montgomerie: And can you quantify what the drag was in the half?
Tim Carter: Yes, not specifically, you know that, so that's pretty sensitive information.
Matt Montgomerie: Okay, thanks guys.
Tim Carter: No problem.
Operator: Your next question comes from Adrian Allbon with Jarden. Please go ahead.
Adrian Allbon: Good morning, team. Just wondering if we can come back to Page 6 of the
presentation and can you just sort of bridge the performance in advanced
nutritional a little clearer for us, like particularly in the cost per metric ton. I
noticed the overall gross margin per metric ton is sort of at 2,000 or close to
2,900 and coming off a PCP of kind of closer to 2,000. And then also within that

context, I guess your inventory provisions are quite high, like 22 million versus
10 million in the PCP?
Andy Liu: Yes, hi, this is Andy speaking. So actually, I can just give you a bit colour for
that and afterwards maybe Tim can just give you some others. So, regarding
advanced nutrition, this is exactly the same as what we communicated before.
This is mostly driven by the product mix that's why that the cost per metric ton is
dropped, this is first reason.
Secondly, the reason is that due to the -- based on the pricing model, some of
the ingredients material will pass through from our supplier to our customer.
That's why this is the main driver driven for this cost reduction. So, this is the
first point. Secondly, sorry, what's the question?
Tim Carter: Inventory.
Andy Liu: As the inventory, yes. So come back to the inventories because as we said,
new customers, new demand. So, this is more related with this ramp up of
some additional cost. And also another thing, actually it's not related with
advanced nutrition. It is more what is from the ingredients. So, what we said
before is that the second half year, one of the things balancing is for the
headwind of the stream return.
And here, just end of January, we already see some kind of these challenges.
That's why this is more like what we take it from inventory provision for the net
realised value booked.
Tim Carter: Adrian, just talking to cost of metric ton, two drivers of that decrease. Certainly
volume, you've seen that with that strong volume coming through. But that's
actually being coupled with, I guess, a relentless focus on conversion costs and
the drivers of conversion costs. We're able to get more through those lines at a
less cost, and whether that's ship structures, consumables, all those sorts of
things.
Those fundamentals that good businesses focus on every day. And so when
you get those two combined, you start getting those benefits. And I'll go as far
as to say, we should be able to get that lower again – a real focus in that area.
Adrian Allbon: Okay. So just, sorry, there's quite a lot in there. I guess there's a reasonable
amount in the question, there's quite a lot in the answer. So in terms of, if we

just start with the provisions with mainly is the big uplift in provisions mostly
related to ingredients and views on stream return products?
Andy Liu: Yes, I should hay half-half. Half is because of what you just mentioned. Another
is for the nutrition ramp up.
Adrian Allbon: Okay. And then probably just to simplify my next question like as a sort of, for
modeling purposes, would we expect the gross margin per ton that you've
achieved in the first half to be closer to what you should achieve going forward,
like second half and into next year? Given all the other things that you
mentioned?
Tim Carter: Yes, that’s a safe assumption Adrian.
Adrian Allbon: Okay. Very good. Next question, just on the cessation notices and the milk
supply. I know you've made the comment that you've, like clearly there's
evidence that you've made demonstrable progress over the last six months and
you're comfortable with the FY26 milk supply?
When do you think you'll be in a position, like I noticed in the going concerns
sort of commentary, when do you think you'll be in a position to sort of have
comfort around the FY27 balance? I mean it's kind of important also in the
context of like you've got quite a lot debt refinancing. Firstly, the bank debt in
October and then you've got the bright line that follows that in July the next
year?
Tim Carter: Look we're reasonably comfortable now with '27. As we've said, the majority of
our milk is not under seized. A lot of our farmers we're looking for today that are
under cease still, we're looking for today and today's results. So. we're pretty
confident, we're very confident that we've got momentum and that'll take us
through.So in that sense, look yes, we're in a really good spot from where we
were 6 months ago.
Andy's met with our banks just recently, really positive signs coming out of that
in terms of; one, the result, but more importantly as we look forward and the
momentum we've got. So, across those two, a lot more confidence today than
we were 6 months ago for sure.

Adrian Allbon: Okay, so that would be, because I guess the statement in the account still kind
of throws a bit of caution on the FY27 year. So you're saying, as you say here
today, you've got good momentum against that statement?
Tim Carter: Spot on.
Adrian Allbon: Okay, thank you.
Operator: Your next question comes from Marcus Curley with UBS. Please go ahead.
Marcus Curley: Good morning, I just wondered if we can have one more on that milk supply.
When you say majority, it's obviously a pretty loose description. Could you give
us a little bit of a range in terms of what the percentage is that you have at the
moment secured?
Tim Carter: Yes, so majority is majority. We have 204 South Island suppliers, right? What I
can't give you is an absolute number, the commercial sensitivity with that. What
I'll also say is the number's changing daily and at the moment it's probably
changing hourly as we're working with our farmers and working it through. But
right now, 204 South Island farmers, majority aren't under lease. We have a
very minimal amount that have already had their choice.
And as I said, the rest of them, the feedback that's given us is, look they're
liking what they hear, but they want to see it, I guess, in black and white, which
is what today's about. And over the next week we'll be meeting with those
specific farmers. And look, the momentum we have, we're really encouraged
that we'll be in a good spot for '27 milk supply.
Marcus Curley: And when's the cut-off date for the decision around milk supply in '27?
Tim Carter: Yes, so look, we have two dates, March 31st with our revised secure milk
premium that we put out in January, which is in effect a $0.20 plus a $0.10,
$0.10, $0.10. That closes the 31st of March and then the straight $0.20 closes
at the end of April.
Marcus Curley: And so, at the end of April is a close off milk supply in '27?
Tim Carter: Basically, one May, you have a close off. Yes.
Marcus Curley: Okay. One May of this year.
Hannah Lynch: Sorry, 1st June.

Tim Carter: 1st June.
Marcus Curley: 1st June of this year for FY27.
Tim Carter: Yes, correct.
Marcus Curley: Okay. And secondly, I know your comments around sensitivity of the North
Island, but could you just give us some colour? Is it loss making at the gross
profit level? Not asking for the level, but is it still a negative?
Tim Carter: It is still a negative, but it has improved versus a year ago.
Marcus Curley: Okay. Could you talk, just extending that, the presentation talks about
improvements in manufacturing costs? You couldn't quantify that, but previous
presentations you have talked to the overall level of manufacturing costs. I just
wondered if you've got that to hand, what the year-on-year savings in
manufacturing costs were at absolute dollars?
Andy Liu: Yes. So, Marcus, actually there are two kinds of the main driven for this
manufacturing cost reductions or let's say optimisation. So, part of it is purely
from absolute value point of view we are talking about 2.6 million. Just bear in
mind, this is based on our 28% or 25%, I don't remember the exact number, for
volume increase. For the moment, I can only provide you with absolute value,
but if we are talking about apple-to-apple base, I can calculate the number and
get back to you later.
Marcus Curley: Yes, that would be useful in terms of what the absolute manufacturing cost
base has moved by, and obviously collectively across the North Island and
South Island. And then finally, just in terms of Lactoferrin, again normally you'd
give some sort of directional colour. Could you talk about the incremental
contribution to gross profit?
I assume it's an increase for Lactoferrin, given you probably had inventory. I
think you had inventory on hand that you've probably sold down plus
manufacturing. Can you give us any colour what Lactoferrin contributed to the
gross profit improvement in half?
Tim Carter: We probably can't right now. It's pretty commercially sensitive in terms of what
you're asking. I think what we can say is the pricing has stabilised for
Lactoferrin in the market.

I think we're now more around 570 to 650 per kilo. So that's helped. Certainly,
from a stock position we're in a really good spot in terms of selling that through.
So, the actual question you're asking is fairly sensitive, so we can't give that.
Marcus Curley: But how about directions? So, was the gross profit from Lactoferrin up or down
year-on-year?
Andy Liu: It's just stable. As mentioned actually, the price is more stable. For a while. So
that's why we didn't see big changes from profit perspective.
Marcus Curley: That's it for me. Thank you.
Operator: Once again, if you wish to ask a question please press star one on your
telephone.
Your next question comes from Stephen Ridgewell with Craigs IP. Please go
ahead.
Stephen Ridgewell: Good morning, and first of all well done on the much-improved performance this
period. I just have a couple of questions. First of all, I'm just trying to get a
sense of how sustainable the 28% volume growth for advanced nutrition in the
First Half '25 is?
Can you give us a sense of how much that growth roughly was due to
restocking from your major customer during the period following some
production issues over the June, July, August? And is that restocking now
finished? And then relatedly, how much of that 28% growth is being driven by
new customers at Pokeno and Dunsandel, please?
Tim Carter: I think the demand for I'll try and answer in a couple of ways for you. Obviously,
what you're asking is quite sensitive information, certainly from our customer's
perspective. So, I think from an advanced nutrition perspective, we're seeing
good demand for the end of FY25.
It's solid demand, and you would see that through other results that have come
through as well. So, we're really confident we can meet that demand and
realise that opportunity. In terms of new customer demand, look, it's relatively
small but growing at a pretty good rate.
And that's the encouraging part, and that's all in base powder, as opposed to a
canned finish. And so that is a multinational customer. And then in '26, we have

two additional I would call’ customers of scale’ that are coming through the
process, whether that is they are in commercial trials, quality audits.
So again, that outlook around that advanced nutrition base powder looks quite
promising. The team have done a great job to qualify these customers and
really sell some of Synlait’s benefits to them.
Stephen Ridgewell: Okay, so it sounds like it's comfortably under half of the growth that's being
driven by new customers, just reading between the lines there?
Tim Carter: Yes. That's fair.
Stephen Ridgewell: Okay, cool. And then just on in terms of your cautious commentary on this, you
can have a more cautious commentary. I guess can you outline at a high-level
expectations for Dairyworks performance in the second half?
Tim Carter: Sorry, can you just repeat that again?
Stephen Ridgewell: Are you expecting growth? So just in terms of the second half outlook, are you
expecting improved performance from Dairyworks or reduced performance
relative to BCP in the second half?
Tim Carter: Yes, look, I'm expecting an improved performance again for the back half of
Dairyworks. That business has strong momentum. We've talked about
Australia, Southeast Asia. They're navigating the commodity prices well.
They've got cost and optimisation.
We talked about some of the capital efficiency projects that have gone into
them. We're beginning to realise the benefit of those. So, yes, they'll have a
strong back half.
Stephen Ridgewell: Okay, that's helpful. And then last one from me, just on cost out, I guess, a year
ago when the -- or six or even nine months ago when the financial position of
the company is a bit more in question, there were plans to take out a lot of cost
from the business. I'm just wondering, to what extent does the strong result
you've reported today reflect that cost out?
And then is there sort of further cost out that you see, material cost out you see
so that the business can take out in the next period or two?

Andy Liu: Yes, so look, for the moment, we are on the way. Still very focussing on the
cost and definitely for the half year, we see some of that benefit, mostly focused
on these consultancy fees and also some legal fees.
Here in the business, it's very clear. We try to do it by our own. And we see that
this can be a very long journey. And for the moment, we are on the way to
further optimising or reduce the cost.
Stephen Ridgewell: I mean, is there any, even high-level quantification, in terms of the potential to
take cost out of the business? We're talking about the tens of millions or
relatively small opportunities to take, to further optimise. Just like a rough idea
would be helpful.
Andy Liu: Yes, let's say for the first half year that we have the number around, let's say
the 2 million to 3 million, we should reduce. This is already taking into account
the inflation. So, without inflation, it can be 3 million to 4 million for the half year.
So, let's say for the full year around 10 million approximately.
Tim Carter: Yes, so I think to your question what we've done is we've realised that we can
operate at a shift structure or a headcount and improve on that. So, you know,
Andy's talked about two to three now. I think there's at least a further two to
three as we head into ‘26 that we'll realise in that ‘26 year.
It's funny when you start focussing on it, you get cost out, you start, you lift up a
rock and you realise there's more value to be had in the value chain in other
areas. But there's definitely more to be had, no doubt about it.
Stephen Ridgewell: Cool, thank you. That's all from me.
Operator: Your next question comes from Jonathan Snape with Bell Potter. Please go
ahead.
Jonathan Snape: Yes, thanks. Can you hear me okay?
Hannah Lynch: We can hear you, Jonathan.
Jonathan Snape: Great. Look, I'll ask, first one's probably the easiest, so I'll get that out of the
way. The assigned receivables facility, I couldn't see any reference to how
much that was utilised in the half. Was there much of a change relative to the
first half position, given I think there's some references in there that you'd

increased your sales to Woolworths and I would have assumed that would have
been in there. So, is there any material change in that off-balance sheet facility?
Andy Liu: Yes, hey, Jonathan, I don't have a number for the moment, but definitely I can
send you some kind of numbers afterwards because for the moment, what I do
remember, yes, we have some additional ones for this account receivables
facility. I will send you some information afterwards.
Jonathan Snape: All right, great. Look, just on the nutritional side, I noticed the inventory position
was down quite a lot, like it's probably the lowest in a few years. And the
prepayments were also down quite materially, half on half. I'm just trying to
reconcile those two numbers coming down with forward-looking indications.
think, of where you think that business kind of goes, because it doesn't kind of
line up unless you intend on really ramping up production in the second half. Is
that, I guess, the plan because it does look like quite a low inventory position to
exit the period?
Tim Carter: Yes, so look, absolutely, you're spot on. Well, from a nutritionals perspective,
we are ramped up, we'll continue to be ramped up to make sure that when we
end the season and start the season we're in a good spot for our customers. So
yes, you're spot on. Lots of effort going into that area at the moment.
Jonathan Snape: Okay. And I guess just as a quick follow-on around, like base powder in this
half, was there much in terms of sales, of just pure base powder?
Tim Carter: Look, our new customers that were brought on are all base powders, so that's
certainly been helped a lot. But coming back, cans certainly have dominated
coming through, and as we said, we need to make sure we've got the right
appropriate stock cover for end of season to begin the season. But yes, that
advanced nutrition base powder has increased due to the new customers that
have come on board.
Jonathan Snape: Okay and that was almost negligible in the PCP, is that right off memory?
Tim Carter: Say that again, sorry?
Jonathan Snape: There was next to none of that in the first half of last year, was there and so it's
just pure base powder?
Tim Carter: Yes, you're right. This new customer that I'm talking about has only come on in
25 so yes, correct.

Jonathan Snape: Yes. All right, great. Thank you.
Tim Carter: No problem.
Operator: There are no further questions at this time. I'll now hand back to Hannah Lynch
for closing remarks.
Hannah Lynch: Thanks everyone for your engagement and participation in today's call. As
always, if there's any follow-up, feel free to reach out to me directly. Otherwise,
we look forward to connecting with many of you over the coming days. Thanks
for joining us.
Operator: That does conclude our conference for today. Thank you for participating. You
may now disconnect.
[END OF TRANSCRIPT]

Synlait Milk Limited (“SML”) -- Trading Halt of Securities Executive Leadership Team update

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