ATM Results Half Year FY17

NZX Code: ATM
ASX Code: A2M




15 February 2017
NZX/ASX Market Release

Continuing strong growth in infant formula drives record results for The a2 Milk Company
Half-year earnings exceed those for the full financial year 2016

Overview – financial results for the half-year ended 31 December 2016 (NZ$m)
 Total revenue of $256.1 million – an increase of 84% over the prior corresponding period (pcp)
 Operating EBITDA
1
of $64.1 million – 243% ahead of the pcp
 Net profit after tax of $39.4 million – 290% ahead of the pcp
 Continuing strong growth in sales and market share for a2 Platinum® infant formula in Australia and China
 Sales growth for fresh milk and whole milk powder in Australia
 Broader distribution and growing sales of fresh milk in the United States
 Increased sales and positive operating earnings in the United Kingdom
 Operating cash flow of $38.1 million – $48.1 million more than in the pcp
 Conservative management of infant formula inventory
The a2 Milk Company (“a2MC” or the “Company”) delivered a further step upward in performance in the first half
of the 2017 financial year, with operating earnings and net profit at higher levels than those for the full 2016
financial year.
The half-year performance reflects outstanding results from the Australia/New Zealand (ANZ) and China
businesses, driven primarily by continuing strong growth in demand for a2 Platinum® infant formula. Revenues
increased by 62% and 348% in Australia and China respectively, and Operating EBITDA by 104% and 1,021%
respectively. The growth rate in part reflects inventory shortages experienced during the pcp.
Results in the United Kingdom and United States also improved. The UK business increased sales and achieved
positive operating earnings in the period, while the USA business achieved increased distribution and higher rates
of sale in a number of key accounts.
Managing Director Geoffrey Babidge said: “The half-year results show continued progress against the Company’s
objective of building a global brand based on the health and digestive benefits of nutritional products containing
only the A2 beta casein protein – free of the A1 protein.
“This has involved continuing to grow the established positions in fresh milk and infant formula in Australia while
also investing in the key international growth initiatives in China, the United States and the United Kingdom.

1
Operating earnings before interest, tax, depreciation and amortisation (EBITDA) is a non GAAP measure. However, the Company believes
that it assists in providing investors with a comprehensive understanding of the underlying performance of the business. A reconciliation of
EBITDA to net profit after tax is shown at the end of this document

“The outstanding aspect of our half-year performance was the continuing growth in a2 Platinum® infant formula
in both Australia and China, through a multi-channel strategy involving a combination of local distribution, e-
commerce and overseas shopping (‘Daigou’) traders. The growth is driven predominantly by the growing
recognition and trust of the a2™ brand amongst Chinese consumers, reflecting a strong communications platform
that speaks directly to mothers and to health care professionals in both Australia and China.
“Whilst the growth in demand was evident across the half-year, there was a marked increase in infant formula
sales in the 2
nd
quarter corresponding with the phasing of key sales events in China and an increase in market
share in both Australia and China. This was achieved whilst maintaining a prudent approach to the management
of production and inventory in recognition of foreshadowed changes in regulations for infant formula sold in
China.”
The first half FY17 result included:
 ANZ EBITDA of $70.4 million
 China EBITDA of $13.7 million
 UK and USA EBITDA of ($7.7) million
 Corporate and other costs of $12.3 million
 Basic earnings per share (EPS) of 5.51c; and diluted EPS of 5.37c
The increase in corporate and other costs in the half is primarily a result of increased spend on business
development and research and development costs associated with a higher level of business activity.
Cash on hand at 31 December 2016 increased significantly to $108.4 million, reflecting the increased earnings,
together with pro-active management of working capital, particularly infant formula inventory levels, during the
period.
As advised at the Annual Meeting in November 2016, provided that current trends in earnings and cash flow
continue and there is no need for significant capital expenditure, the Board expects to adopt a dividend policy
following the completion of FY17.

Board of Directors
In line with the Company’s previously announced policy of board renewal, Warwick Every-Burns was appointed an
independent non-executive Director of the Company on 23 August 2016. Mr Every-Burns has been a career
Consumer Packaged Goods (CPG) executive with relevant global experience, including senior roles with The
Clorox Company of the USA, NationalPak (the Glad Products Company), Unilever and Treasury Wine Estates, and
is currently a non-executive Director of Treasury Wine Estates.
Mel Miles retired as a Director on 23 August 2016 after six years on the Board, but continues to advise the
Company in a consultancy role.

Strategic Agenda Update
The Company continues to focus on building a portfolio of milk-based nutritional products centred on the unique
strengths of the A1 protein-free proposition. The broader nutritional strategy, from infant through to adult
products, represents a natural evolution that the Company expects to be more attractive in the medium term
than one based purely on traditional dairy.
While fresh milk and infant formula generate most of the revenue and earnings at this stage of the Company’s
development, the product portfolio has been broadened through the launches of branded whole milk powder in
Australia and China; fresh milk (sourced from Australia) into China; and UHT long life milk and infant formula in
the UK.

Growth in the product portfolio will continue with the planned launch of additional nutritional products over the
next 12 months.
As an outcome of the Company’s growing profile in the USA, an extension of its distribution footprint is
progressing through a major retailer in the South East from March 2017. This development is referenced more
fully in the relevant section below.
A comprehensive study and strategic review of the infant formula market in China was carried out in conjunction
with a leading in-market consultancy during the period. The review has assisted in deepening the Company’s
understanding of this market at a fundamental level and has confirmed broadly the Company’s current approach
in China whilst also giving further insight into future opportunities.
The Company also progressed a review of growth opportunities in the South East Asian region.
The Company is strongly focused on building constructive relationships with supply and distribution partners in all
markets. A particularly significant development during the half-year was the completion of a new Supply
Agreement with our supply partner for a2 Platinum® infant formula, Synlait Milk. This new agreement, for a
minimum term of five years, provides access to an agreed level of capacity beyond current requirements, an
obligation on Synlait to supply to order, and does not include “take or pay” provisions.

ANZ
The ANZ business has continued to show very strong momentum, with sales and operating earnings in Australia
considerably ahead of plan and pcp. Total revenue across all product categories increased by 62% to $206.6
million and Operating EBITDA by 104% to $70.4 million.
Growth occurred in all categories, but was driven primarily by rapid expansion in sales of a2 Platinum® infant
formula, which registered substantial gains in market share and sales volumes. The brand achieved a ~25%
grocery/pharmacy scan market share for the 13 weeks ending 1 January 2017 by value, compared with 16.7% in
the comparable period of the prior year.
a2 Platinum® has been the fastest-growing infant formula brand in the Australian market in both the last quarter
and the moving annual total, and was the N
o
. 2 brand by market share in the latest quarter.
Close attention has been and will continue to be applied to supply chain and inventory management, taking
account of foreshadowed changes in the regulatory environment. Inventory remained at below average levels for
the industry in part as a result of the continued expansion in sales. There is also a strong focus on maintaining
deep insight into the ‘Daigou’ channel, including pricing, communication and customer management. The Daigou
channel has become a significant and growing sales channel from Australia to consumers in China.
Sales of a2 Milk™

fresh milk increased by 3% over the pcp. Market share by value was stable at approximately
9.3% (Australian Grocery Weighted Scan 18 December 2016 MAT). a2 Milk™ and the a2 Platinum® brands enjoyed
the highest level of advertising spend across the fresh milk and infant formula categories respectively for the 12
months ending 31 October 2016.
Sales of a2 Milk™ whole milk powder, launched in June 2015, grew significantly compared with the levels
achieved in the pcp.

China and Other Asia
Sales and earnings from the China business grew very strongly in the half-year. Total revenue increased
significantly to $37.7 million and Operating EBITDA increased to $13.7 million.
Growth in the half-year was driven by increased consumer demand aided by an increasing understanding of the
unique attributes of nutritional products that contain only the A2 beta casein protein – free from A1 protein. The
business continues to invest strategically in building that understanding through a promotional programme that
includes extensive online activity and events in Mother & Baby stores (MBS).
The business has a flexible multi-channel infant formula strategy to achieve growth – in both China label
(predominantly in MBS) and cross-border ANZ label online with major e-retailers. a2 Platinum® achieved ~2.6%
value share in the quarter ending 31 December 2016 within the segment of the market as measured by Kantar
2
.
This share, while growing at a substantial rate, is modest in the context of the overall market in China and thus
highlights a considerable growth opportunity for the Company.
Promotional activities have included a strong focus on communicating the benefits of a2 Platinum® infant formula
through a testimonial approach, featuring mothers in China and Australia reporting on their own experiences and
on educating health professionals.
The e-commerce strategy is centred on building strong relationships with profile providers such as Tmall, JD.com,
Mia, Kaola, VIP and other strategic platforms. The promotional calendar has a strong bias towards the first half of
the financial year given sales for the three largest e-retailer events fall predominately within the first six months.
Sales on ‘Singles Day’ more than doubled the levels achieved in the previous year across the top four e-commerce
platforms, while a2 Platinum® achieved the N
o
. 1 sales position in its category on JD.com. Sales momentum
continued during the “12/12” sales event and the initial build for Chinese New Year.
The offline strategy is based on sustainably driving sales in MBS, growing the number of distribution points and
significantly enhancing instore education and shopper marketing activities through investment in increased field
resources and point of sale materials.
Sales of a2 Milk™ branded fresh milk sourced from Australia, in key premium retail stores and e-commerce
platforms, also continued to grow from a small base.
The Company continues to closely monitor the regulation of infant and other nutritional products in China and in
cross-border trade. It believes it is responding satisfactorily to the current phase of regulatory activity, including
infant formula registration and labelling guidelines, and is focused on ensuring it remains well-positioned to deal
with future developments.

USA
The USA business made further progress against the objectives set out for its launch phase, with pleasing gains in
distribution and sales velocity. The product is positioned in the specialty milk section, which is the fastest-growing
segment of the total milk category.
The a2 Milk™ brand was launched in Southern California from April 2015 and Northern California from September
2015. Two major chains, Trader Joe’s and Target, began distribution in California during the half year. The
business currently has distribution in about 1,800 stores in California, the Pacific Northwest and the home market
of Colorado.
The sales focus remains on building unit sales per store per week (UPSW) relevant to the speciality milk category.
The business is expected to deliver a progressive improvement in sales velocity in its key accounts during the
financial year.

2
Kantar tracks China Key and A cities that comprise a substantial proportion of the total China infant formula market

Marketing and communication activity increased during the half-year across digital and social media platforms,
through retail promotions and through a public relations programme. The product range has received
mainstream media coverage, notably through the Los Angeles Times Sunday Section, Fortune, Bloomberg
Newsweek, Mother Jones, Forbes, New Nutrition journal, digital publications and television stations in Southern
California, with reach extended further through online media.
Supply chain efficiency was enhanced through the engagement of a second dairy processor, in the Los Angeles
basin, allowing the business to ship locally to the California market. The business also entered into a non-
exclusive licence with its procurement partner, Prairieland Dairy in Nebraska, to build awareness and distribute
fresh milk in the states of Kansas, Missouri and Nebraska under the a2 Milk™ brand.
The market entry strategy for the business has centred on launching primarily in California and building an
understanding of the key drivers for growth in this market prior to expansion. The Company considers it now has
a clearer view of the key factors for success in this market and other potential state markets. Accordingly, it is
progressing an opportunity to expand its footprint significantly with a launch into the South East of the USA, in
March, in association with the Publix Group. Publix is a highly-regarded major retailer with about 1,100 stores,
primarily in Florida, Georgia and the Carolinas. We anticipate ranging in all stores. To support this launch, the
business expects to increase its marketing spend in the second half.
The Company is very pleased with the opportunity to expand the USA business beyond the West Coast. We
acknowledge that the timing is ahead of plan and the likely investment in the USA business will consequently be
higher than previously assumed. Accordingly, we now estimate that the level of further investment in this
business over this year and the subsequent two years prior to positive monthly EBITDA will be approximately
US$30 - 35 million. Given these changes, we have determined it appropriate to writeoff NZ$2.2 million of
capitalised USA intangible assets.

UK
The United Kingdom business achieved a significant improvement in performance, with increased brand
awareness, sales and positive operating earnings for the half-year for the first time.
Sales of a2 Milk™ branded fresh milk grew in excess of 45% on the pcp. Average rates of sale in-store improved
significantly and distribution in key retailer accounts is now approximately 1,400 stocking points.
This performance was achieved by a continuing focus on consumers and retail customers, with particular benefit
from the ‘a2tonishing’ advertising campaign launched in May 2016 and continued into the half-year. The business
also sought improved point of sale presence through its out-sourced field team and has recently achieved extra
facings in a key account. The in-house digital team continued to build relationships and activities with consumers
and the health care professional community.
UHT long life milk was launched in September 2016 in selected channels and grew at a satisfactory rate. The
business is pleased with the continued growth of infant formula sales in the non-grocery segment and will assess
the opportunity in the retail market during the next 12 months.

Research and development (R&D) and Intellectual property (IP)
The Company continues to drive and support R&D around the benefits of A1 protein-free products, and to
develop its portfolio of intellectual property (including brand assets and proprietary know-how).
The breadth and depth of the IP portfolio, coupled with first mover advantage, continue to support our market
position. The patent portfolio covers a range of compositional benefits and therapeutic uses of A1 protein-free
products, with protection for some applications through to 2035.

R&D focus in the half-year included:
 Completion of a significant clinical study undertaken in China (600 participants) that has now been
submitted for publication. The study builds upon digestive benefit findings from successful China pilot
study published in April 2016 and gives further insight into digestive mechanisms;
 Concurrently a study conducted in China amongst pre-schoolers has been completed and the authors are
currently preparing for publication. The results are understood to be aligned with adult findings around
digestive and cognitive responses;
 A clinical study in association with Monash University, Australia, examining the benefits of a2 Milk™ for
IBS (irritable bowel syndrome) sufferers is under way;
 Clinical examination of benefits to gut and systemic inflammation at a leading USA institution, Pennington
Biomedical Research Centre is under way, and
 Work pursuant to a New Zealand government grant for research to support benefit claims in international
markets has commenced.
In October 2016, UK-based Nutrition Journal reported that consumption of a2 Milk™ increases the natural
production of the body’s key antioxidant – Glutathione (GSH), widely recognised for its association with a range of
health benefits – in milk-intolerant consumers.
The Australian Federal Court case with the Lion Group initiated in June 2016 is scheduled to be heard in
November 2017. The a2 Milk Company is pursuing Lion over what the Company believes are misleading and
deceptive packaging and advertising claims. Lion has filed a cross claim challenging the way the Company
promotes a2 Milk™. With the scientific evidence in support of the benefits of a2 Milk™ continuing to strengthen,
the Company is confident in its position.

Full year FY17 outlook
An update on the Group’s revenue and operating earnings for the four months to October 2016 was provided at
the Annual Meeting on 22 November 2016. The Company has since delivered a very strong first half and
performance in January 2017 is consistent with plan.
As previously indicated, the Company closely monitors the outlook relating to the regulatory environment for
infant formula in China and likely competitor activity in each of our markets and consequently continues to adopt
a prudent approach to inventory management.
Given that the timing of major selling events in China is weighted towards the first half, and as a result of our
prudent approach to inventory management, the Company is anticipating lower infant formula sales during the
second half relative to 1H17, although they will be materially higher than in 2H16. In addition, the investment in
marketing will likely be higher in the second half by up to $15 million, based on the planned phasing of
communication and development activities across the year, in particular for the USA and China.



For further information contact:
The a2 Milk Company Limited
Geoffrey Babidge
Managing Director and CEO
+61 2 9697 7000

Reconciliation of EBITDA to net profit after tax (NPAT)


Half year ended Half year ended


31-Dec-16 31-Dec-15 Movement

NZ$ 000's NZ$ 000's %


Segment EBITDA 64,075 18,683 243%
Depreciation & Amortisation (1,608) (1,255) 28%
EBIT 62,467 17,428 258%
Interest income 443 142 212%
Interest expense - (38) (100)%
Income tax expense (23,528) (7,425) 217%
Net Profit After Tax (NPAT) 39,382 10,107 290%

---

Half year interim report
for the six months ended
31 December 2016

CEO’s report ........................................................... 02
Directors’ declaration ........................................... 08
Auditor’s review report ......................................... 09
Consolidated statement of
comprehensive income ........................................ 10
Consolidated statement of
changes in equity ................................................... 11
Consolidated statement of
financial position ................................................... 12
Consolidated statement of
cash flows .............................................................. 13
Notes to the consolidated interim
financial statements ............................................ 14
Corporate directory .............................................. 20
Contents
1
Half Year Interim Report

CEO’s Report
Overview
The a2 Milk Company (“a2MC” or the “Company”) delivered
a further step upward in performance in the first half of the
2017 financial year, with operating earnings and net profit
at higher levels than those for the full 2016 financial year.
The half-year performance reflects outstanding
results from the Australia/New Zealand (ANZ) and
China businesses, driven primarily by continuing
strong growth in demand for a2 Platinum
®
infant
formula. Revenues increased by 62% and 348%
in Australia and China respectively, and Operating
EBITDA
1
by 104% and 1,021% respectively. The growth
rate in part reflects inventory shortages experienced
during the prior corresponding period (pcp).
Results in the United Kingdom and United States
also improved. The UK business increased sales and
achieved positive operating earnings in the period, while
the USA business achieved increased distribution and
higher rates of sale in a number of key accounts.
The half-year results show continued progress
against the Company’s objective of building a global
brand based on the health and digestive benefits
of nutritional products containing only the A2
beta casein protein – free of the A1 protein.
This has involved continuing to grow the established
positions in fresh milk and infant formula in Australia while
also investing in the key international growth initiatives
in China, the United States and the United Kingdom.
Whilst the growth in demand was evident across the
half-year, there was a marked increase in infant formula
sales in the 2nd quarter corresponding with the phasing
of key sales events in China and an increase in market
share in both Australia and China. This was achieved whilst
maintaining a prudent approach to the management of
production and inventory in recognition of foreshadowed
changes in regulations for infant formula sold in China.
The first half FY17 result included:
• ANZ EBITDA of $70.4 million
• China EBITDA of $13.7 million
• UK and USA EBITDA of ($7.7) million
• Corporate and other costs of $12.3 million
• Basic earnings per share (EPS) of 5.51c;
and diluted EPS of 5.37c
The increase in corporate and other costs in the half
is primarily a result of increased spend on business
development and research and development costs
associated with a higher level of business activity.
Cash on hand at 31 December 2016 increased
significantly to $108.4 million, reflecting the
increased earnings, together with pro-active
management of working capital, particularly infant
formula inventory levels, during the period.
As advised at the Annual Meeting in November 2016,
provided that current trends in earnings and cash
flow continue and there is no need for significant
capital expenditure, the Board expects to adopt a
dividend policy following the completion of FY17.
Board of Directors
In line with the Company’s previously announced policy of
board renewal, Warwick Every-Burns was appointed an
independent non-executive Director of the Company on
23 August 2016. Mr Every-Burns has been a career
Continuing strong growth in infant
formula drives record results
1
Operating earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GA AP measure, but the Company believes that it assists
in providing investors with a comprehensive understanding of the underlying performance of the business. A reconciliation of EBITDA to net profit
after tax (NPAT) is shown on page 7.
2
The a2 Milk Company 2016 – 2017

CEO’s report cont.
For the six months ended 31 December 2016
Consumer Packaged Goods (CPG) executive with
relevant global experience, including senior roles
with The Clorox Company of the USA, NationalPak
(the Glad Products Company), Unilever and
Treasury Wine Estates, and is currently a non-
executive Director of Treasury Wine Estates.
Mel Miles retired as a Director on 23 August 2016
after six years on the Board, but continues to
advise the Company in a consultancy role.
Strategic Agenda Update
The Company continues to focus on building a portfolio
of milk-based nutritional products centred on the
unique strengths of the A1 protein-free proposition.
The broader nutritional strategy, from infant through to
adult products, represents a natural evolution that the
Company expects to be more attractive in the medium
term than one based purely on traditional dairy.
While fresh milk and infant formula generate most
of the revenue and earnings at this stage of the
Company’s development, the product portfolio has
been broadened through the launches of branded
whole milk powder in Australia and China; fresh
milk (sourced from Australia) into China; and UHT
long life milk and infant formula in the UK.
Growth in the product portfolio will continue
with the planned launch of additional nutritional
products over the next 12 months.
As an outcome of the Company’s growing profile in
the USA, an extension of its distribution footprint is
progressing through a major retailer in the South East
from March 2017. This development is referenced
more fully in the relevant section below.
A comprehensive study and strategic review of the
infant formula market in China was carried out in
conjunction with a leading in-market consultancy
during the period. The review has assisted in deepening
the Company’s understanding of this market at a
fundamental level and has confirmed broadly the
Company’s current approach in China whilst also
giving further insight into future opportunities.
The Company also progressed a review of growth
opportunities in the South East Asian region.
The Company is strongly focused on building
constructive relationships with supply and distribution
partners in all markets. A particularly significant
development during the half-year was the completion
of a new Supply Agreement with our supply partner
for a2 Platinum
®
infant formula, Synlait Milk. This new
agreement, for a minimum term of five years, provides
access to an agreed level of capacity beyond current
requirements, an obligation on Synlait to supply to
order, and does not include “take or pay” provisions.
ANZ
The ANZ business has continued to show very strong
momentum, with sales and operating earnings in Australia
considerably ahead of plan and pcp. Total revenue
across all product categories increased by 62% to $206.6
million and Operating EBITDA by 104% to $70.4 million.
Growth occurred in all categories, but was driven
primarily by rapid expansion in sales of a2 Platinum
®

infant formula, which registered substantial gains in
market share and sales volumes. The brand achieved
a ~25% grocery/pharmacy scan market share for the
13 weeks ending 1 January 2017 by value, compared
with 16.7% in the comparable period of the prior year.
a2 Platinum
®
has been the fastest-growing infant
formula brand in the Australian market in both the
last quarter and the moving annual total, and was the
No. 2 brand by market share in the latest quarter.
Close attention has been and will continue to be applied to
supply chain and inventory management, taking account
of foreshadowed changes in the regulatory environment.
Inventory remained at below average levels for the
industry in part as a result of the continued expansion
in sales. There is also a strong focus on maintaining
deep insight into the ‘Daigou’ channel, including pricing,
communication and customer management. The
Daigou channel has become a significant and growing
sales channel from Australia to consumers in China.
Sales of a2 Milk™ fresh milk increased by 3% over the
pcp. Market share by value was stable at approximately
9.3% (Australian Grocery Weighted Scan 18 December
2016 MAT). a2 Milk™ and the a2 Platinum
®
brands
enjoyed the highest level of advertising spend across the
fresh milk and infant formula categories respectively
for the 12 months ending 31 October 2016.
Sales of a2 Milk™ whole milk powder, launched in
June 2015, grew significantly compared with the levels
achieved in the pcp.
3
Half Year Interim Report

CEO’s report cont.
For the six months ended 31 December 2016
China and Other Asia
Sales and earnings from the China business
grew very strongly in the half-year. Total revenue
increased significantly to $37.7 million and
Operating EBITDA increased to $13.7 million.
Growth in the half-year was driven by increased
consumer demand aided by an increasing understanding
of the unique attributes of nutritional products that
contain only the A2 beta casein protein – free from A1
protein. The business continues to invest strategically
in building that understanding through a promotional
programme that includes extensive online activity
and events in Mother & Baby stores (MBS).
The business has a flexible multi-channel infant
formula strategy to achieve growth – in both China label
(predominantly in MBS) and cross-border ANZ label online
with major e-retailers. a2 Platinum
®
achieved ~2.6% value
share in the quarter ending 31 December 2016 within
the segment of the market as measured by Kantar
2
. This
share, while growing at a substantial rate, is modest in the
context of the overall market in China and thus highlights
a considerable growth opportunity for the Company.
Promotional activities have included a strong focus
on communicating the benefits of a2 Platinum
®
infant
formula through a testimonial approach, featuring
mothers in China and Australia reporting on their own
experiences and on educating health professionals.
The e-commerce strategy is centred on building strong
relationships with profile providers such as Tmall,
JD.com, Mia, Kaola, VIP and other strategic platforms.
The promotional calendar has a strong bias towards
the first half of the financial year given sales for the
three largest e-retailer events fall predominately within
the first six months. Sales on ‘Singles Day’ more than
doubled the levels achieved in the previous year across
the top four e-commerce platforms, while a2 Platinum
®

achieved the No. 1 sales position in its category on
JD.com. Sales momentum continued during the “12/12”
sales event and the initial build for Chinese New Year.
The offline strategy is based on sustainably driving
sales in MBS, growing the number of distribution points
and significantly enhancing instore education and
shopper marketing activities through investment in
increased field resources and point of sale materials.
Sales of a2 Milk™ branded fresh milk sourced from
Australia, in key premium retail stores and e-commerce
platforms, also continued to grow from a small base.
The Company continues to closely monitor the regulation
of infant and other nutritional products in China and
in cross-border trade. It believes it is responding
satisfactorily to the current phase of regulatory activity,
including infant formula registration and labelling
guidelines, and is focused on ensuring it remains
well-positioned to deal with future developments.
USA
The USA business made further progress against the
objectives set out for its launch phase, with pleasing
gains in distribution and sales velocity. The product is
positioned in the specialty milk section, which is the
fastest-growing segment of the total milk category.
The a2 Milk™ brand was launched in Southern
California from April 2015 and Northern California
from September 2015. Two major chains, Trader Joe’s
and Target, began distribution in California during
the half year. The business currently has distribution
in about 1,800 stores in California, the Pacific
Northwest and the home market of Colorado.
The sales focus remains on building unit sales per
store per week (UPSW) relevant to the speciality
milk category. The business is expected to deliver
a progressive improvement in sales velocity in
its key accounts during the financial year.
Marketing and communication activity increased during
the half-year across digital and social media platforms,
through retail promotions and through a public relations
programme. The product range has received mainstream
media coverage, notably through the Los Angeles
Times Sunday Section, Fortune, Bloomberg Newsweek,
Mother Jones, Forbes, New Nutrition journal, digital
publications and television stations in Southern California,
with reach extended further through online media.
Supply chain efficiency was enhanced through the
engagement of a second dairy processor, in the Los
Angeles basin, allowing the business to ship locally to
the California market. The business also entered into
a non-exclusive licence with its procurement partner,
Prairieland Dairy in Nebraska, to build awareness
2
Kantar tracks China Key and A cities that comprise a substantial proportion of the total China infant formula market
4
The a2 Milk Company 2016 – 2017

and distribute fresh milk in the states of Kansas,
Missouri and Nebraska under the a2 Milk™ brand.
The market entry strategy for the business has centred
on launching primarily in California and building an
understanding of the key drivers for growth in this
market prior to expansion. The Company considers it
now has a clearer view of the key factors for success
in this market and other potential state markets.
Accordingly, it is progressing an opportunity to expand
its footprint significantly with a launch into the
South East of the USA, in March, in association with
the Publix Group. Publix is a highly-regarded major
retailer with about 1,100 stores, primarily in Florida,
Georgia and the Carolinas. We anticipate ranging in all
stores. To support this launch, the business expects
to increase its marketing spend in the second half.
The Company is very pleased with the opportunity
to expand the USA business beyond the West Coast.
We acknowledge that the timing is ahead of plan
and the likely investment in the USA business will
consequently be higher than previously assumed.
Accordingly, we now estimate that the level of further
investment in this business over this year and the
subsequent two years prior to positive monthly EBITDA
will be approximately US$30 – 35 million. Given these
changes, we have determined it appropriate to write off
NZ$2.2 million of capitalised USA intangible assets.
UK
The United Kingdom business achieved a significant
improvement in performance, with increased
brand awareness, sales and positive operating
earnings for the half-year for the first time.
Sales of a2 Milk™ branded fresh milk grew in excess
of 45% on the pcp. Average rates of sale in-store
improved significantly and distribution in key retailer
accounts is now approximately 1,400 stocking points.
This performance was achieved by a continuing focus on
consumers and retail customers, with particular benefit
from the ‘a2tonishing’ advertising campaign launched in
May 2016 and continued into the half-year. The business
also sought improved point of sale presence through
its out-sourced field team and has recently achieved
extra facings in a key account. The in-house digital team
continued to build relationships and activities with
consumers and the health care professional community.
UHT long life milk was launched in September 2016
in selected channels and grew at a satisfactory
rate. The business is pleased with the continued
growth of infant formula sales in the non-grocery
segment and will assess the opportunity in the
retail market during the next 12 months.
Research and development (R&D)
and Intellectual property (IP)
The Company continues to drive and support R&D
around the benefits of A1 protein-free products,
and to develop its portfolio of intellectual property
(including brand assets and proprietary know-how).
The breadth and depth of the IP portfolio, coupled with first
mover advantage, continue to support our market position.
The patent portfolio covers a range of compositional
benefits and therapeutic uses of A1 protein-free products,
with protection for some applications through to 2035.
R&D focus in the half-year included:
• Completion of a significant clinical study undertaken
in China (600 participants) that has now been
submitted for publication. The study builds upon
digestive benefit findings from successful China
pilot study published in April 2016 and gives
further insight into digestive mechanisms
• Concurrently a study conducted in China amongst
pre-schoolers has been completed and the authors
are currently preparing for publication. The results
are understood to be aligned with adult findings
around digestive and cognitive responses
• A clinical study in association with Monash University,
Australia, examining the benefits of a2 Milk™ for IBS
(irritable bowel syndrome) sufferers is underway
• Clinical examination of benefits to gut and systemic
inflammation at a leading USA institution, Pennington
Biomedical Research Centre is underway, and
• Work pursuant to a New Zealand government
grant for research to support benefit claims
in international markets has commenced
In October 2016, UK-based Nutrition Journal reported
that consumption of a2 Milk™ increases the natural
production of the body’s key antioxidant – Glutathione
(GSH), widely recognised for its association with a range
of health benefits – in milk-intolerant consumers.
CEO’s report cont.
For the six months ended 31 December 2016
5
Half Year Interim Report

The Australian Federal Court case with the Lion Group
initiated in June 2016 is scheduled to be heard in
November 2017. The a2 Milk Company is pursuing Lion
over what the Company believes are misleading and
deceptive packaging and advertising claims. Lion has
filed a cross claim challenging the way the Company
promotes a2 Milk™. With the scientific evidence in
support of the benefits of a2 Milk™ continuing to
strengthen, the Company is confident in its position.
Full year FY17 outlook
An update on the Group’s revenue and operating earnings
for the four months to October 2016 was provided
at the Annual Meeting on 22 November 2016. The
Company has since delivered a very strong first half and
performance in January 2017 is consistent with plan.
As previously indicated, the Company closely monitors
the outlook relating to the regulatory environment for
infant formula in China and likely competitor activity
in each of our markets and consequently continues to
adopt a prudent approach to inventory management.
Given that the timing of major selling events in China
is weighted towards the first half, and as a result of
our prudent approach to inventory management, the
Company is anticipating lower infant formula sales
during the second half relative to 1H17, although they
will be materially higher than in 2H16. In addition, the
investment in marketing will likely be higher in the
second half by up to $15 million, based on the planned
phasing of communication and development activities
across the year, in particular for the USA and China.

Geoffrey Babidge
Managing Director & Chief Executive Officer
14 February 2017
CEO’s report cont.
For the six months ended 31 December 2016
6
The a2 Milk Company 2016 – 2017

CEO’s report cont.
For the six months ended 31 December 2016
Segment EBITDA ............................................................................................................... 64,07518,683243%
Depreciation & amortisation ...........................................................................................
(1,608)(1,255)28%
EBIT 62,46717,428258%
Interest income .................................................................................................................443142212%
Interest expense ...............................................................................................................–(38)(100)%
Income tax expense ..........................................................................................................
(23,528)(7,425)217%
Net profit after tax (NPAT)
39,38210,107290%
Half year
ended
31 Dec 16
NZ $000’s
Half year
ended
31 Dec 15
NZ $000’s

Movement
%
Reconciliation of EBITDA to net profit after tax (NPAT)
7
Half Year Interim Report

Directors’ declaration
For the six months ended 31 December 2016
The Directors of The a2 Milk Company Limited are pleased
to present the half year interim report for the six months
ended 31 December 2016.
The report presented is signed for and on behalf of the
board and was authorised for issue on 14 February 2017.
The half yearly report is unaudited.
David Hearn
Chairman
14 February 2017
Geoffrey Babidge
Managing Director & Chief Executive Officer

8
The a2 Milk Company 2016 – 2017

Auditor’s review report
For the six months ended 31 December 2016
9
Half Year Interim Report

Consolidated statement of comprehensive income (Unaudited)
For the six months ended 31 December 2016
Notes
31 Dec 16
$’000
31 Dec 15
$’000
Sales .................................................................................................................................................... 255,982139,090
Cost of sales ........................................................................................................................................
(136,982)(82,090)
Gross Margin119,00057,000
Other revenue ...................................................................................................................................... 145136
Distribution expenses ........................................................................................................................(9,526)(6,631)
Administrative expenses ................................................................................................................. 3(13,707)(13,260)
Marketing expenses ...........................................................................................................................(16,037)(10,044)
Occupancy expenses ..........................................................................................................................(769)(309)
Other expenses .................................................................................................................................4
(16,559)(9,379)
Operating profit
62,54717,513
Finance income ...................................................................................................................................443142
Finance costs ......................................................................................................................................
(80)(123)
Net finance income
36319
Profit before tax ..................................................................................................................................62,91017,532
Income tax expense ............................................................................................................................
(23,528)(7,425)
PROFIT AFTER TAX FOR THE PERIOD39,38210,107
Items of other comprehensive income that may be reclassified to profit or loss:
Foreign currency translation loss ......................................................................................................
(1,442)(1,999)
TOTAL COMPREHENSIVE INCOME
37,9408,108
Earnings per share
Basic (cents per share) .......................................................................................................................5.511.52
Diluted (cents per share) ....................................................................................................................5.371.50
The accompanying notes form part of these
financial statements.
10
The a2 Milk Company 2016 – 2017

Six months ended 31 December 2016
Foreign
currency
translation
reserve
$’000
Employee
equity
settled
payments
reserve
$’000
To t al
reserves
$’000
Retained
earnings
$’000
Share
capital
$’000
To t al
equity
$’000
Balance 1 July 2016 ........................................
(9,052)7,211(1,841)4,371130,548133,078
Profit after tax for the period .........................–––39,382–39,382
Foreign currency translation differences –
foreign operations ..........................................(1,084)–(1,084) ––(1,084)
Income tax .......................................................
(358)–(358) ––(358)
Total comprehensive income for the period
(1,442)–(1,442)39,382– 37,940
Transactions with owners in their capacity
as owners:
Issue of ordinary shares .................................––––946946
Share issue costs ............................................––––(6)(6)
Options exercised ...........................................––––1,2601,260
Share-based payments ..................................
–1,1461,146––1,146
Total transactions with owners .....................
–1,1461,146–2,2003,346
Balance 31 December 2016 ............................
(10,494)8,357(2,137)43,753132,748174,364
Six months ended 31 December 2015
Foreign
currency
translation
reserve
$’000
Employee
equity
settled
payments
reserve
$’000
To t al
reserves
$’000
Retained
earnings
$’000
Share
capital
$’000
To t al
equity
$’000
Balance 1 July 2015 ........................................
(5,711)4,102(1,609)(26,065)86,30358,629
Profit after tax for the period .........................–––10,107–10,107
Foreign currency translation differences –
foreign operations ..........................................(1,727)–(1,727)––(1,727)
Income tax .......................................................
(272) –(272) ––(272)
Total comprehensive income for the period
(1,999)–(1,999)10,107–8,108
Transactions with owners in their capacity
as owners:
Issue of ordinary shares .................................––––43,75043,750
Share issue costs ............................................––––(2,149)(2,149)
Share-based payments ..................................
–1,4391,439––1,439
Total transactions with owners .....................
–1,4391,439–41,60143,040
Balance 31 December 2015 ............................
(7,710)5,541(2,169)(15,958)127,904109,777
The accompanying notes form part of these
financial statements.
Consolidated statement of changes in equity (Unaudited)
For the six months ended 31 December 2016
11
Half Year Interim Report

Notes31 Dec 16
$’000
30 June 16
$’000
ASSETS
Current assets
Cash & short term deposits ...............................................................................................................108,37969,361
Trade and other receivables ...............................................................................................................67,86345,407
Prepayments ....................................................................................................................................... 17,61215,099
Inventories ...........................................................................................................................................
30,00852,556
Total current assets
223,862182,423
Non-current assets
Property, plant & equipment .............................................................................................................8,0888,097
Intangible assets .............................................................................................................................. 613,06816,314
Deferred tax assets ............................................................................................................................
1,3763,318
Total non-current assets
22,53227,729
TOTAL ASSETS
246,394210,152
LIABILITIES
Current liabilities
Trade and other payables ...................................................................................................................59,84066,168
Current tax liabilities ..........................................................................................................................
11,91310,640
Total current liabilities71,75376,808
Non-current liabilities
Trade and other payables ...................................................................................................................94228
Deferred tax liabilities ........................................................................................................................
18338
Total non-current liabilities
277266
TOTAL LIABILITIES
72,03077,074
NET ASSETS
174,364133,078
EQUIT Y
Equity attributable to owners of the Company
Share capital .................................................................................................................................... 5132,748130,548
Retained earnings ...............................................................................................................................43,7534,371
Reserves ..............................................................................................................................................
(2,137)(1,841)
TOTAL EQUIT Y
174,364133,078
The accompanying notes form part of these
financial statements.
Consolidated statement of financial position (Unaudited)
As at 31 December 2016
12
The a2 Milk Company 2016 – 2017

31 Dec 16
$’000
31 Dec 15
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers ...................................................................................................................237,823116,014
Payments to suppliers & employees .................................................................................................(175,695)(117,629)
Interest received .................................................................................................................................443142
Interest paid ........................................................................................................................................–(38)
Taxes paid ............................................................................................................................................
(24,448)(8,450)
Net cash inflow/(outflow) from operating activities
38,123(9,961)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant & equipment ......................................................................................(614)(603)
Payments for intangible assets .........................................................................................................
(330)(441)
Net cash outflow from investing activities
(944)(1,044)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares ...............................................................................................2,20043,750
Payment for capital raising costs ......................................................................................................
–(2,149)
Net cash inflow from financing activities
2,20041,601
Net increase in cash & short term deposits .....................................................................................39,37930,596
Cash & short term deposits at the beginning of the period .............................................................69,3616,092
Effect of exchange rate changes on cash .........................................................................................
(361)(262)
Cash and short term deposits at the end of the period
108,37936,426
The accompanying notes form part of these
financial statements.
Consolidated statement of cash flows (Unaudited)
For the six months ended 31 December 2016
13
Half Year Interim Report

1. BASIS OF PREPARATION
The a2 Milk Company Limited (the “Company”) is a for-profit entity incorporated and domiciled in New Zealand.
The Company is registered in New Zealand under the Companies Act 1993, and is a FMC reporting entity under
the Financial Markets Conduct Act 2013. The shares of The a2 Milk Company Limited are publicly traded on the
New Zealand Stock Exchange (NZX), and the Australian Securities Exchange (ASX). The reporting currency of the
Company and its subsidiaries (together the “Group”) is the New Zealand dollar.
The principal activity of the Company is the commercialisation of a2
TM
brand milk and related products as supported by
the ownership of intellectual property that enables the identification of cattle for the production of a2
TM
brand milk.
These consolidated financial statements were authorised for issue by the directors on 14 February 2017.
Statement of compliance
These interim financial statements have not been audited. The interim financial statements have been prepared in
accordance with Generally Accepted Accounting Practice in New Zealand, comply with IAS 34 Interim Financial Reporting
and NZ IAS 34 Interim Financial Reporting, and have been the subject of a review by the auditors.
This half year interim report should be read in conjunction with the Group’s annual report for the year ended 30 June 2016,
available at www.thea2milkcompany.com.
The same accounting policies and methods of computation are followed in this half year interim report as were applied in
the preparation of the Group’s financial statements for the year ended 30 June 2016.
Accounting Standards and Interpretations
The Group has adopted all of the new and revised Standards and Interpretations that are relevant to the Group’s
operations and effective for the current reporting period.
The adoptions of these new and revised Standards and Interpretations has not had any material impact on the Group’s
assets, profits or earnings per share for the accounting periods reported.
Certain new accounting standards and interpretations have been published that are relevant to the Group’s operations
but are not mandatory for the 31 December 2016 accounting period. The Group’s assessment of the impact of these is set
out in the Group’s annual report for the year ended 30 June 2016.
2. OPERATING SEGMENTS
For management purposes, the Group is organised into business units based on geographical location along with a
corporate function, and has four reportable operating segments as follows:
• The Australia and New Zealand segment receives external revenue from infant formula, milk and other dairy products
along with royalty and licence fee income
• The China and other Asia segment receives external revenue from infant formula, milk and other dairy products.
This segment is responsible for the infant formula supply chain from New Zealand to all markets
• The United Kingdom and USA segment receives external revenue from milk and infant formula sales
• The Corporate and other segment external revenue comprises external royalty and licence fee income
Management monitors the operating results of its business units separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss
and is measured consistently with operating profit or loss in the consolidated financial statements.
Notes to the consolidated interim financial statements
For the six months ended 31 December 2016
14
The a2 Milk Company 2016 – 2017

Notes to the consolidated interim financial statements cont.
For the six months ended 31 December 2016
2. OPERATING SEGMENTS (cont.)
Change in segment EBITDA from prior period
In the latter part of the 2016 financial year, management reporting was amended to disclose segment earnings before
interest, tax, depreciation and amortisation (segment EBITDA) before inter-company charges, to better reflect the
underlying performance of the segments.
Previously, segment EBITDA was reported after inter-company charges comprising licence fee and management fee
income from subsidiaries; and after the reimbursement of costs associated with the development of intellectual property
such as marketing and herd testing.
The effect of this change was to increase the reported EBITDA profits in the Australia and New Zealand, and China and
other Asia segments, and increase the reported EBITDA losses in the UK and USA, and Corporate and other segments,
with no impact on the net reported EBITDA for the Group.
Prior period comparative information has been restated to reflect the amendments outlined above.
Six months to 31 December 2016
Australia
and New
Zealand
$’000
China and
other Asia
$’000
UK and USA
$’000
Corporate
and other
$’000
Tot al
$’000
Consolidated sales ...........................................................206,49637,65111,835–255,982
Other revenue ...................................................................
119––26145
Reportable segment revenue
206,61537,65111,83526256,127
Reportable segment results (Segment EBITDA)70,37913,728(7,712)(12,320)64,075
Reconciliation to Consolidated Statement of Comprehensive Income
Interest income .................................................................443
Interest expense ...............................................................–
Depreciation & amortisation ............................................(1,608)
Income tax expense ..........................................................
(23,528)
Consolidated profit after tax
39,382
Over 33% of sales come from the Company’s largest three customers (2015: over 56% from three customers).
15
Half Year Interim Report

Notes to the consolidated interim financial statements cont.
For the six months ended 31 December 2016
2. OPERATING SEGMENT INFORMATION (cont.)
Six months to 31 December 2015
Australia
and New
Zealand
$’000
China and
other Asia
$’000
UK and USA
$’000
Corporate
and other
$’000
Tot al
$’000
Consolidated sales ...........................................................127,8038,4002,887–139,090
Other revenue ...................................................................
107––29136
Reportable segment revenue
127,9108,4002,88729139,226
Reportable segment results (Segment EBITDA)34,5281,225(8,113)(8,957)18,683
Reconciliation to Consolidated Statement of Comprehensive Income
Interest income .................................................................142
Interest expense ...............................................................(38)
Depreciation & amortisation ............................................(1,255)
Income tax expense ..........................................................
(7,425)
Consolidated profit after tax
10,107
Other Segment Information
Australia
and New
Zealand
$’000
China and
other Asia
$’000
UK and USA
$’000
Corporate
and other
$’000
Tot al
$’000
Segment assets
31 December 2016 ............................................................107,78954,66216,45567,488246,394
30 June 2016 .....................................................................
89,00160,14015,96245,049210,152
Segment liabilities
31 December 2016 ............................................................23,74041,0634,7822,44572,030
30 June 2016 .....................................................................
29,55033,1414,6719,71277,074
3. ADMINISTRATIVE EXPENSES
31 Dec 16
$’000
31 Dec 15
$’000
Employee equity compensation ......................................................................................................1,1461,439
Salary & wage costs .........................................................................................................................8,7698,162
Travel costs .......................................................................................................................................1,8611,990
Other administrative expenses ........................................................................................................
1,9311,669
13,70713,260
16
The a2 Milk Company 2016 – 2017

Notes to the consolidated interim financial statements cont.
For the six months ended 31 December 2016
4. OTHER EXPENSES
31 Dec 16
$’000
31 Dec 15
$’000
Directors’ fees and expenses ...........................................................................................................315279
Consultancy & accounting ...............................................................................................................4,6243,156
Legal expenses ..................................................................................................................................1,7831,352
Depreciation & amortisation ............................................................................................................1,6081,255
Patents, trademarks and research & development .......................................................................1,8961,023
Promotion & merchandising ............................................................................................................1,711575
Impairment of intangible assets (Note 6) ........................................................................................2,435–
Other operating expenses ................................................................................................................
2,1871,739
16,5599,379
The increase in consultancy and accounting fees relates primarily to the China market and other business
development opportunities.
5. SHARE CAPITAL
Share Capital
$’000
Number of
shares
Movements in contributed equity
Fully paid ordinary shares:
Balance 30 June 2016 ................................................................................................................130,548712,000,065
Exercise of options ....................................................................................................................1,2602,000,000
Exercise of rights .......................................................................................................................–320,000
Partly paid shares fully paid .....................................................................................................9461,550,000
Share issue costs .......................................................................................................................
(6)–
Balance 31 December 2016
132,748715,870,065
Partly paid ordinary shares:
Balance 30 June 2016 ................................................................................................................–11,300,000
Shares fully paid ........................................................................................................................
–(1,550,000)
Balance 31 December 2016
–9,750,000
Total ordinary shares on issue:
30 June 2016 ..............................................................................................................................
130,548723,300,065
31 December 2016 .....................................................................................................................
132,748725,620,065
Partly paid ordinary shares carry the same rights and entitlements on a fractional basis, as fully paid ordinary shares,
with such fractions being equivalent to the proportion which the amount paid is of the total amount paid and amounts still
payable on the shares.
17
Half Year Interim Report

Notes to the consolidated interim financial statements cont.
For the six months ended 31 December 2016
6. INTANGIBLE ASSETS
Patents
$’000
Trademarks
$’000
Software
$’000
Project
development
$’000
Goodwill
$’000
Tot al
$’000
Net book value at 1 July 2016 ................8329026283,57110,38116,314
Additions .................................................................–2023989–330
Amortisation ...........................................................(9)–(208)(832)–(1,049)
Impairment .............................................................–(372)–(1,715)(348)(2,435)
Net foreign currency exchange differences..........
––(2)(20)(70)(92)
Net book value at 31 December 2016.....
8237324571,0939,96313,068
Impairment of goodwill and intangible assets
The Company assessed indications of impairment at 31 December 2016, including consideration of the financial
performance of its Cash Generating Units (CGUs) to which Goodwill is allocated. In performing this assessment it noted an
operating loss in the USA CGU (in the UK and USA reportable segment) for the six month period ended 31 December 2016,
which triggered impairment testing of that CGU. Furthermore, a number of trademark assets belonging to the Corporate
segment that are no longer likely to be used were identified, resulting in the impairment of those assets.
USA CGU
The USA CGU receives external revenue from the sale of liquid milk products in the USA. During the period the business
plan has been amended to accelerate expansion of distribution within the USA. This acceleration is expected to require a
higher level of investment prior to the CGU achieving a cash break-even position. The recoverable amount of the USA CGU
at 31 December 2016 has been determined based on a value-in-use calculation using risk adjusted cash flow projections
based on financial estimates approved by senior management. The discount rate applied in this calculation was 10%,
consistent with the calculation for the year ended 30 June 2016. As a result of this testing the following assets of the
USA CGU have been written off: goodwill; project development costs; and USA specific trademarks. Other CGU assets,
including working capital and property, plant & equipment, have been assessed as fully recoverable, with no impairment
booked on these items. The carrying value of these other assets was $856,000 as at 31 December 2016. The total
impairment charge booked through net profit before tax (NPBT) relating to goodwill, trademarks and project development
costs in the UK and USA segment is $2,235,000.
Corporate Segment – Trademark assets
A number of trademark assets belonging to the Corporate segment that are no longer likely to be used have been
identified, indicating that these assets are impaired. The impairment of these assets, totalling $200,000, has been
included in the impairment charge booked through NPBT for the period.
The total impairment charge of $2,435,000 recognised in NPBT for the above is recorded within other expenses (note 4) in
the consolidated statement of comprehensive income.
18
The a2 Milk Company 2016 – 2017

Notes to the consolidated interim financial statements cont.
For the six months ended 31 December 2016
7. RECONCILIATION OF PROFIT AFTER TAX WITH
NET CASH FLOWS FROM OPERATING ACTIVITIES
31 Dec 16
$’000
31 Dec 15
$’000
Profit after tax for the period ...........................................................................................................39,38210,107
Adjustments for non-cash items:
Depreciation & amortisation expense .............................................................................................1,6081,255
Expense recognised in profit & loss in respect of equity-settled share-based payments.........1,1461,439
Net foreign exchange gain ................................................................................................................(925)(634)
Deferred tax ......................................................................................................................................2,087(2,080)
Impairment of intangible assets (note 6) ........................................................................................
2,435–
45,73310,087
Movements in working capital:
(Increase) in trade and other receivables........................................................................................(22,456)(25,514)
(Increase) in prepayments ................................................................................................................(2,513)(16,837)
(Increase) / decrease in inventories ................................................................................................22,548(11,245)
Increase / (decrease) in trade and other payables .........................................................................(6,462)29,083
Increase in current tax liabilities .....................................................................................................
1,2734,465
Net cash inflow/(outflow) from operating activities
38,123(9,961)
The net decrease in inventories largely reflects a combination of growth in demand for infant formula, and a prudent approach
to the management of infant formula production and inventory.
8. NET TANGIBLE ASSETS PER SECURITY
31 Dec 16
$
30 Jun 16
$
Net tangible assets per security .....................................................................................................0.220.16
19
Half Year Interim Report

Company
The a2 Milk Company Limited
c/o Simpson Grierson
Level 27
88 Shortland Street
Auckland 1010
New Zealand
New Zealand
Share Registry
Link Market Services Limited
PO Box 91976
Victoria Street West
A u c k l a n d 1142
New Zealand
Telephone: +64 9 375 5998
Australian
Share Registry
Link Market Services Limited
Locked Bag A14
Sydney South NSW 1235
Australia
Telephone: +61 1300 554 474
Legal Advisors
Simpson Grierson
Level 27
88 Shortland Street
Auckland 1010
New Zealand
Johnson Winter & Slattery
Level 25
20 Bond Street
Sydney NSW 2000
Australia
Auditor
Ernst & Young
200 George Street
Sydney NSW 2000
Australia
Registered
office
c/o Simpson Grierson
Level 27
88 Shortland Street
Auckland 1010
New Zealand
L e v e l 11
80 Mount Street
North Sydney NSW 2060
Australia
Telephone: +61 2 9697 7000
Corporate
website
www.thea2milkcompany.com
Corporate
directory
Company
Directors
David Hearn (Chairman & Executive Director)
Julia Hoare (Deputy Chairman & Non-Executive Director)
Geoffrey Babidge (Managing Director & Chief Executive Officer)
Richard Le Grice (Non-Executive Director)
Peter Hinton (Non-Executive Director)
Warwick Every-Burns (Non-Executive Director)
20
The a2 Milk Company 2016 – 2017

www.thea2milkcompany.com

---

Page 1 of 1

The a2 Milk Company Limited

Results for announcement to the market

Reporting Period 6 months to 31 December 2016
Previous Reporting Period 6 months to 31 December 2015

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$ 256,127 + 84%
Profit from ordinary activities
after tax attributable to
security holders.
NZ$ 39,382 + 290%
Net profit attributable to
security holders.
NZ$ 39,382 + 290%

Interim/Final Dividend Amount per security Imputed amount per security
N/A N/A N/A

Record Date N/A
Dividend Payment Date N/A

Comments: See accompanying announcement

---

The a2 Milk Company Limited
ARBN 158 331 965

ASX Appendix 4D – Half Year Report
under ASX Listing Rule 4.2A.3

Results for announcement to the market


Current Reporting Period: 6 months to 31 December 2016

Previous Reporting Period: 6 months to 31 December 2015


Half year
31 December 2016
Amount $000's
NZ$
Half year
31 December 2015
Amount $000's
NZ$
Percentage change
%
Total revenue from ordinary
activities
256,127 139,226 84%
Net Profit from ordinary
activities after tax attributable to
security holders
39,382 10,107 290%
Net Profit attributable to security
holders
39,382 10,107 290%


Interim dividend

The Company does not propose to pay a dividend for the reporting period ended 31 December 2016.

Record date for dividends: not applicable

Dividend payment date: not applicable


Additional comments

The Appendix 4D should be read in conjunction with the following documents for the half year ended
31 December 2016:

Half Year Interim Report for the six months ended 31 December 2016
Half Year Results Commentary
Half Year Results Presentation
Appendix 1 (NZX)

Net tangible assets per security


31 Dec 2016
NZ$
30 Jun 2016
NZ$
Net tangible assets per security 0.22 0.16


Entities over which control has been gained or lost

Control has not been gained or lost in relation to any entity during the period.


Details of associates and joint venture entities

Not applicable.


Dividend Reinvestment Plan

Not applicable.


Accounting Standards

The interim financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand and comply with IAS 34 Interim Financial Reporting.


Information on Audit or Review

The report is based on interim consolidated financial statements which have been subject to a review.
The Independent Accountants Report, which is unqualified, is on page 9 of the Half Year Interim
Report.