Fonterra Shareholders’ Fund 2017 Interim Results

Page 1


Reporting Period Six months ended 31 January 2017
Previous Reporting Period Six months ended 31 January 2016


31 January 2017
(NZD million)
31 January 2016
(NZD million)
Percentage
Change
Revenue from ordinary activities 71 138 (48.6)%
Net profit from ordinary activities after
tax attributable to members
– – –%
Net profit attributable to members – – –%
Fonterra Shareholders’ Fund interim financial statements are prepared in accordance with New Zealand
Equivalents to International Financial Reporting Standards. Revenue from ordinary activities comprises net fair
value movements of Economic Rights of Fonterra Shares, and dividend income.

Net Tangible Assets per Security
31 January 2017
(NZ cents)
31 January 2016
(NZ cents)
Net tangible assets per security 619 592

Interim/Final Distribution
Amount per Security
(NZ cents)
Imputed / Franked Amount
per Security
(NZ cents)
Interim 20.0 Nil

Record Date Interim: 5 April 2017
Distribution Payment Date Interim: 20 April 2017

Comments On 21 March 2017, the Board of FSF Management Company
Limited declared an interim distribution of 20.0 cents per unit
payable on 20 April 2017 to unit holders on the register at 5 April
2017.

To be followed by the balance of the information required in the report pursuant to Appendix 1.

---

2017
INTERIM
REPORT
FONTERRA SHAREHOLDERS’ FUND

FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017 1
DEAR INVESTORS
I am pleased to present the Fonterra
Shareholders’ Fund (the Fund) Interim
Report for the six months ending
31 January 2017.
Global conditions have been
challenging, however Fonterra has
produced a strong result for the first
half, which builds on the progress
made last financial year.
As the return on a unit is driven by the
underlying performance of Fonterra,
I encourage you to read Fonterra’s
2017 Interim Report, available online
at www.fonterra.com/our-financials to
gain a good understanding of the Co-
operative’s results.
Unit holders will receive an interim
distribution of 20 cents per unit¹.
The record date for the Interim
distribution is 5 April 2017 and the
payment date is 20 April 2017.
The Distribution Reinvestment Plan
(DRP) continues to operate at a
discount of 2.5 per cent to the strike
price. Eligible shareholders who would
like to participate for the interim
distribution need to submit a notice
of participation by 6 April 2017.
More details on the DRP can be
found in the offer document,
which is available in hard copy
from Computershare or online at
www.investorcentre.com/nz and
www.fonterra.com/our-financials/
dividends.
Unit trading remains strong with the
Fund ranked consistently one of the
most liquid on the NZX50. On average,
511,294 units were traded on a daily
basis over the past six months².
Analysis of the unit register shows
that New Zealand and Australian unit
holders are the largest group by region,
holding more than 88 per cent of units
on issue³.
I would once again like to thank
you for your continued support of,
and investment in, the Fonterra
Shareholders’ Fund.
JOHN SHEWAN
CHAIRMAN
FSF MANAGEMENT COMPANY LIMITED
(Australian Registered Body Number 160 539 935,
incorporated in New Zealand)
CHAIRMAN’S
REPORT
1 Less any PIE (Portfolio Investment Entity) tax or any other adjustments for tax in relation to that unit.
2 Liquidity has been calculated as median daily value (6 months) / Average Daily New Zealand Free Float
Cap (6 months).
3 Merlin Consulting Shareholder Identification Report January 2017.

MANAGER’S STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
STATEMENT OF COMPREHENSIVE INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS . . . . .3
STATEMENT OF FINANCIAL POSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
CASH FLOW STATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . .5
NOTES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
DIRECTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
FSF Management Company Limited
(the Manager) is pleased to present
to the unit holders the interim
financial statements for the Fonterra
Shareholders’ Fund (the Fund) for the
six months ended 31 January 2017.
The Manager is responsible for
presenting interim financial statements
for the six months which fairly present
the financial position of the Fund and
its financial performance and cash
flows for that period.
The Manager considers the interim
financial statements of the Fund have
been prepared using accounting policies
which have been consistently applied and
supported by reasonable judgements and
estimates, and that all relevant financial
reporting and accounting standards
have been followed.
The Manager believes that proper
accounting records have been kept
which enable, with reasonable
accuracy, the determination of the
financial position of the Fund and
facilitate compliance of the interim
financial statements with the NZX
Listing Rules and the Fonterra
Shareholders’ Fund Trust Deed.
The Manager considers that it has
taken adequate steps to safeguard the
assets of the Fund, and to prevent and
detect fraud and other irregularities.
The Manager hereby approves and
authorises for issue the interim
financial statements for the six months
ended 31 January 2017 presented on
pages 3 to 7.
For and on behalf of the Board of the Manager:

JOHN SHEWAN PIP DUNPHY
CHAIRMAN DIRECTOR
FSF MANAGEMENT COMPANY LIMITED FSF MANAGEMENT COMPANY LIMITED
21 MARCH 2017 21 MARCH 2017
INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
MANAGER’S
STATEMENT
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
2 FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017

FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017 3
The accompanying notes form part of these interim financial statements.
STATEMENT OF
COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
$ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2017
UNAUDITED
31 JAN 2016
UNAUDITED
31 JUL 2016
AUDITED
Net fair value gain on revaluation of Economic Rights of Fonterra shares59124101
Dividend income121446
Investment income71138147
Net change in fair value of liability to unit holders(59)(124)(101)
Distributions to unit holders(12)(14)(46)
Finance cost (71)(138)(147)
Profit before tax–––
Tax expense–––
Profit for the period–––
There are no items of other comprehensive income.
STATEMENT OF CHANGES IN NET ASSETS
ATTRIBUTABLE TO UNIT HOLDERS
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
$ MILLION
Net assets attributable to unit holders at 1 August 2016637
Movements:
Revaluation of liability to unit holders59
Issue of units132
Redemption of units(64)
Net assets attributable to unit holders at 31 January 2017 (unaudited)764
Net assets attributable to unit holders at 1 August 2015494
Movements:
Revaluation of liability to unit holders124
Issue of units91
Redemption of units(94)
Net assets attributable to unit holders at 31 January 2016 (unaudited)615
Net assets attributable to unit holders at 1 August 2015494
Movements:
Revaluation of liability to unit holders101
Issue of units152
Redemption of units(110)
Net assets attributable to unit holders at 31 July 2016 (audited)637

4 FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017
STATEMENT OF
FINANCIAL POSITION
AS AT 31 JANUARY 2017
$ MILLION
NOTES
31 JAN 2017
UNAUDITED
31 JAN 2016
UNAUDITED
31 JUL 2016
AUDITED
Assets
Economic Rights of Fonterra shares2764615637
Total assets764615637
Total liabilities (excluding net assets attributable to unit holders)–––
Net assets attributable to unit holders – liability3764615637
CASH FLOW
STATEMENT
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
$ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2017
UNAUDITED
31 JAN 2016
UNAUDITED
31 JUL 2016
AUDITED
Cash flows from operating activities
Cash was provided from:
–Sale of Economic Rights of Fonterra shares6494110
–Dividends received (net of dividends reinvested)101238
Cash was applied to:
–Purchase of Economic Rights of Fonterra shares(130)(89)(144)
Net cash flows from operating activities(56)174
Cash flows from financing activities
Cash was provided from:
–Proceeds from issue of units13089144
Cash was applied to:
–Outflows on redemption of units(64)(94)(110)
–Distributions paid to unit holders (net of dividends reinvested)(10)(12)(38)
Net cash flows from financing activities56(17)(4)
Net (decrease)/increase in cash and cash equivalents–––
Cash and cash equivalents at the beginning of the year–––
Cash and cash equivalents at the end of the period–––
The accompanying notes form part of these interim financial statements.

FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017 5
STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
A) GENERAL INFORMATION
The Fonterra Shareholders’ Fund (FSF or the
Fund) is a New Zealand managed investment
scheme established to be the ‘Authorised
Fund’ under Fonterra’s Trading Among
Farmers scheme. It is registered under the
Financial Markets Conduct Act 2013 and
its governing document is the Fonterra
Shareholders’ Fund Trust Deed (the Trust
Deed) dated 23 October 2012 (as amended)
and has a life of 80 years. Under the Trust
Deed, the Fund may invest only in authorised
investments, which are Economic Rights of
Fonterra shares (Economic Rights), and issue
units to investors. It may not invest directly in
Fonterra shares.
The Fund is listed on the NZX Main Board
operated by NZX Limited and as an exempt
foreign entity on the Australian Securities
Exchange operated by ASX Limited. The
Manager is an FMC reporting entity under the
Financial Markets Conduct Act 2013.
These condensed interim financial statements
were authorised for issue by the Manager on
21 March 2017.
Fonterra interim financial statements
Investors are encouraged to read the interim
financial statements of Fonterra Co-operative
Group Limited (Fonterra), together with the
interim financial statements of the Fund,
given that the performance of the Fund is
driven by the performance of Fonterra. The
Fonterra interim financial statements can be
found at www.fonterra.com/our-financials.
Activities
The principal activity of the Fund is to acquire
Economic Rights and issue units to investors.
It allows investors in the Fund an opportunity
to earn returns based on the financial
performance of Fonterra.
B) BASIS OF PREPARATION
These condensed interim financial statements
have been prepared in accordance with
International Accounting Standard 34:
Interim Financial Reporting and New Zealand
Equivalent to International Accounting
Standard 34: Interim Financial Reporting. They
have also been prepared in accordance with
New Zealand Generally Accepted Accounting
Practice (NZ GAAP). They should be read in
conjunction with the financial statements for
the year ended 31 July 2016. These interim
financial statements are as at and for the
six months ended 31 January 2017, and are
unaudited.
These interim financial statements are
presented in New Zealand dollars ($), which
is the Fund’s functional and presentation
currency, and rounded to the nearest million,
except where otherwise stated.
The same accounting policies are followed
in these financial statements as were applied
in the financial statements for the year ended
31 July 2016.
Adoption of NZ IFRS 9 Financial
Instruments
NZ IFRS 9 Financial Instruments (NZ IFRS 9)
addresses the classification, measurement
and derecognition of financial assets, financial
liabilities and hedge accounting. The Fund
elected to adopt NZ IFRS 9 from 1 August
2016. The changes required by NZ IFRS
9 do not impact the financial position or
performance of the Fund.
C) OPERATING SEGMENTS
The Fund’s investments only include
Economic Rights assets and the Fund’s
performance is evaluated on an overall basis.
Therefore the Fund is a single-segment entity.
All of the Fund’s income is from investments
in the Economic Rights.
The internal reporting provided to the Board
of the Manager, which is the Fund’s chief
operating decision maker, for the Fund’s
assets, liabilities and performance is prepared
on a consistent basis with the measurement
and recognition principles of NZ IFRS. The
Board of the Manager reviews the Fund’s
internal reporting in order to assess the
performance and position of the Fund.

6 FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JANUARY 2017
1 FAIR VALUE MEASUREMENT
The Fund measures fair values for recognition of both Economic Rights assets and unit holder liabilities.
The Fund uses the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
–Level 1: Quoted price (unadjusted) in an active market for an identical instrument.
–Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes
instruments valued using; quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that
are considered less than active; or other valuation techniques for which all significant inputs are directly or indirectly observable from market data.
–Level 3: Valuation techniques using significant unobservable inputs. The Fund has no Level 3 instruments.
The Fund’s liability to unit holders is a Level 1 instrument as the unit price is quoted on the NZX Main Board, which is considered to be an active
market. The Manager considers market prices to be the most representative measure of fair value as they are used by market participants as
a practical expedient for fair value measurement. The market will be monitored on an on-going basis to confirm that it remains active for the
purposes of establishing fair value.
Economic Rights are Level 2 instruments as Economic Rights are not listed and there is no active market for Economic Rights assets. Economic
Rights are valued using the quoted price of units (which are considered to be a materially comparable instrument) in the Fund listed on the NZX
Main Board. The on-going validity of that assumption is regularly reviewed to support this area of significant judgement.
There have been no transfers between the categories in the fair value hierarchy during any of the periods presented.
2 ECONOMIC RIGHTS OF FONTERRA SHARES
The Economic Rights are held on trust for the Fund by the Custodian under the Fonterra Economic Rights Trust.
31 JAN 2017
UNAUDITED
31 JAN 2016
UNAUDITED
31 JUL 2016
AUDITED
Value of Economic Rights ($ million)764615637
Number of Economic Rights123,422,471103,926,303111,991,937
The Economic Rights are measured at fair value, calculated as the number of Economic Rights held multiplied by the established fair value for each
Economic Right.
$ MILLION
31 JAN 2017
UNAUDITED
31 JAN 2016
UNAUDITED
31 JUL 2016
AUDITED
Opening value of Economic Rights 637494494
Movements:
Purchase of Economic Rights
1
13291152
Sale of Economic Rights(64)(94)(110)
Revaluation of Economic Rights59124101
Closing value of Economic Rights764615637
1 Purchase of Economic Rights includes $2.4 million for Economic Rights acquired in conjunction with Fonterra’s Dividend Reinvestment Plan (31 January 2016: $2.3 million, 31 July 2016:
$7.8 million).

FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017 7
3 LIABILITY TO UNIT HOLDERS
31 JAN 2017
UNAUDITED
31 JAN 2016
UNAUDITED
31 JUL 2016
AUDITED
Value of unit holder liability ($ million)
1
764615637
Opening number of units on issue
2
111,991,937105,480,366105,480,366
Number of units issued
3
22,222,59716,374,97627,137,036
Number of units redeemed (10,792,063)(17,929,039)(20,625,465)
Closing number of units on issue123,422,471103,926,303111,991,937
1 The liability to unit holders is measured at fair value, calculated as the number of units on issue multiplied by the unit market price of $6.19 (31 January 2016: $5.92, 31 July 2016: $5.69).
2 Included in the total number of units is one Fonterra unit which was issued at launch.
3 Included in the number of units issued are 419,397 units with a total value of $2.4 million that were issued under the Distribution Reinvestment Plan (31 January 2016; 451,285 units with
a total value of $2.3 million; 31 July 2016: 1,400,416 units with a total value of $7.8 million).
4 NET TANGIBLE ASSETS PER SECURITY
As at 31 January 2017, the net tangible assets per unit on issue was $6.19 (31 January 2016: $5.92; 31 July 2016: $5.69).
5 COMMITMENTS AND CONTINGENT LIABILITIES
The Fund has no material commitments or contingent liabilities as at 31 January 2017 (31 January 2016: nil; 31 July 2016: nil).
6 SUBSEQUENT EVENTS
Declaration of interim distribution
On 21 March 2017, the Board of Directors of Fonterra declared an interim dividend of 20 cents per share. Following Fonterra’s dividend declaration,
the Board of the Manager declared an interim distribution of 20 cents per unit. This distribution, will be paid on 20 April 2017 to the unit holders on
the register at 5 April 2017.
The Manager has a Distribution Reinvestment Plan, where eligible unit holders can choose to reinvest all or part of their future distribution in
additional units. The Distribution Reinvestment Plan will apply to this distribution. Full details of the Distribution Reinvestment Plan are available in
the ‘Investors’ section of Fonterra’s website.
Changes in unit price
Units are traded on the NZX and ASX and accordingly the unit price changes regularly, including during the period between balance date and the
date these financial statements were authorised for issue. Changes in the market price of the units result in a corresponding change in the value of
the Economic Rights asset held by the Fund. Daily unit prices are available on the NZX website.

8 FONTERRA SHAREHOLDERS’ FUND INTERIM REPORT 2017
DIRECTORY
REGISTERED OFFICE OF THE MANAGER
OF THE FUND – NEW ZEALAND
109 Fanshawe Street
Auckland Central
Auckland 1010
New Zealand
Telephone: +64 9 374 9000
REGISTERED OFFICE OF THE MANAGER
OF THE FUND – AUSTRALIA
C/o Fonterra Australia Pty Ltd
327 Ferntree Gully Road
Mount Waverley, Melbourne
Victoria 3149
Telephone: +61 3 8541 1588
DIRECTORS OF THE MANAGER OF THE FUND
Philippa Jane Dunphy
Kimmitt Rowland Ellis
Nicola Mary Shadbolt
John Bruce Shewan
Scott Andrew St John
COMPANY SECRETARY
Michael Cronin
SUPERVISOR/TRUSTEE
The New Zealand Guardian Trust Company Limited
Level 14, 191 Queen Street
Auckland 1010
New Zealand
AUDITORS OF THE FUND AND THE MANAGER
OF THE FUND
PricewaterhouseCoopers
Level 22, PwC Tower
188 Quay Street
Auckland 1010
New Zealand
LEGAL ADVISERS TO THE MANAGER
Chapman Tripp
Level 35, ANZ Centre
23 Albert Street
Auckland 1010
New Zealand
SHARE REGISTRAR – NEW ZEALAND
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
Private Bag 92119
Auckland 1142
Telephone: +64 9 488 8777
SHARE REGISTRAR – AUSTRALIA
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford, VIC 3037
GPO Box 3329
Melbourne, VIC 3001
Telephone: 1800 501 366 (within Australia)
Telephone: +61 3 9415 4083 (outside Australia)

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APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
Interim
x
YearSpecialDRP Applies
x
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Non-resident Inv (see note)
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Fonterra Shareholders' Fund (NS)
Mike CroninDirectors' resolution
Units (FSF)
(09) 374 9052(09) 374 9001213
NZFSFE0001S5
2017
N/AN/A
In dollars and cents
Distribution pursuant to Clause 15.1(a) of the
Fonterra Shareholders' Fund Unit Trust Deed and
paid through Computershare
N/AN/A
Enter N/A if not applicable
Resident Inv (see note)
N/A
$0.20nil
NOTE: FSF is a Foreign Investment Variable Rate PIE. The whole distribution is excluded income for NZ
resident investors. PIE tax (for resident investors) or NRWT (for non-residents) may be deducted at the
rate appropriate for the investor
nil$0.20
See note aboveNil
NZD
Approximately $25 million
Date Payable
$Nil (see note above)Nil
5 April, 201720 April, 2017
N/AN/A