2017 Annual Meeting Presentation & Market Update

Annual Meeting 2017
Geoffrey Babidge
Managing Director & CEO
21 November 2017
a2 Milk™, a2 Platinum™ and The a2 Milk Company™ are trade marks of The a2 Milk Company Limited

Disclaimer
2
This presentation dated 21 November 2017 provides additional comment on the Annual Report 2016-2017 of The a2 Milk Company Limited (the “Company”) and
accompanying information released to the market on 23 August 2017. As such, it should be read in conjunction with the explanations and views in those
documents.
This presentation is provided for general information purposes only. The information contained in this presentation is not intended to be relied upon as advice to
investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should assess their own
individual financial circumstances and consider talking to a financial adviser or consultant before making any investment decision.
This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction.
Certain statements in this presentation constitute forward looking statements. Such forward looking statements involve known andunknown risks, uncertainties,
assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results,performance or achievements
to differ materially from those expressed or implied by such statements.
While all reasonable care has been taken in relation to the preparation of this presentation, none of the Company, its subsidiaries, or their respective directors,
officers, employees, contractors or agents accepts responsibility for any loss or damage resulting from the use of or reliance on this presentation by any person.
Past performance is not indicative of future performance and no guarantee of future returns is implied or given.
Some of the information in this presentation is based on unaudited financial data which may be subject to change.
All values are expressed in New Zealand currency unless otherwise stated.
All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company.

Contents
3
•Company progress
•Group strategy
•FY17 result highlights
•FY18 market update
•Appendix

Company progress

A decade of significant progress (2007 –2017)
•A decade focused on targeted investment and strategic decisions to establish a strong foundation for future growth
•Building on the early development of the science and intellectual property (2000 to 2006)
•Successful transition from IP licensing to operating business model
•Established a2 Milk™ as a highly recognised brand in the Australian market, resonating with millennial consumers
•Broadened the product portfolio, including the launch of a2 Platinum® infant formula
•Established ‘capital smart’ investment approachand developed key supplier partnerships
•Diversified into new targeted growth markets of China, UK and USA
•Established a highly motivated and capable management team, supported by a diverse and experienced board
•Supported the advancement in beta-casein science
•Continued a programme of targeted investment in brand development, intellectual property and proprietary know-how
•Achieved first mover advantage
55

Evolving from pioneer to global leader
6
2000 -20062007 -20172018 onwards
•Emerging beta-casein science
•IP development
•Licensing approach to market entry
(ANZ, Asia, US)
•Initial brand development
•Communication exploration
•Move from licensing to operating business model
•Develop brand, IP and know-how
•Australian a2 Milk™ brand captures significant
market share
•Emergence of infant formula business
•Regional business model: China, US, UK
•‘Capital smart’ approach
•Developing organisational depth and capability
•Advancements in beta-casein science
•Achieved first mover advantage
•Building a global branded dairy nutritionals business
•Accelerate new product development
•Furthering strategic partnerships
•Expanding into SE Asia
•Further market expansion opportunities
•Continuing to build corporate capability
•Increasing investment in brand, IP and know-how to
ensure leadership in an emerging A1 protein-free
category
•Development of sourcing strategies for nutritional
products to support growth initiatives
IP
creators
Innovative
pioneers
Leaders
Experts
Innovators

•a2MC is the creator and pioneer of the A1 protein-free category
•The science in support of the A2 protein proposition continues to develop and consumer awareness is rapidly building in targetedmarkets
•The Company expects broader interest in the A1 protein-free category over time and is well positioned to respond:
−Existing comprehensive suite of patents, trade marks and proprietary know-how;
−Ongoing investment in IP and research & development will further reinforce the Company’s position as the leader and innovatorofthe A1 protein-free category;
−Will continue to actively defend intellectual property rights;
−Unique business model focused solely on products free of the A1 protein;
−Leverage future category expansion as credibility of the proposition and awareness grows
The IP portfolio continues to provide barriers to entry
−Portfolio strength derived from interlocking complex relationship between trade marks, patents, proprietary know-how and geographical spread
Leading the way in the A1 protein-free category
7
–Recognisable and trusted suite of brand assets (words,
designs, symbols)
–Extending marks across an innovative product portfolio
–Growing brand presence in targeted growth markets
(China, USA)
–Trade mark registrations/applications across 55 territories
–Rights to 15 families of patents and patent applications
–Focus on beneficial uses and physical properties
associated with A1 protein free milk products
–New patents extending to 2035
–Leading quality and product integrity systems;
operational and compliance capability
–Owners of The a2 System™
Brand and
Trade marks
Patents
Proprietary
know-how

Group strategy

Growth strategy
Across a continuum from the purity of
fresh a2 Milk™ to customised
A1 protein-free products
Targeting adults, children and infants to
satisfy their growing digestive
health needs
BROAD DAIRY
NUTRITIONAL PRODUCT
PORTFOLIO
OUR PURPOSE
As the a2 Milk™ pioneers we are determined to help people enjoy a better life
OUR VISION
To be the innovative and smart choice for dairy nutrition
OUR AMBITION
To be the most admired and commercially attractive dairy nutritional company
OUR STRATEGIC PRIORITIES
TARGETED
ATTRACTIVE
REGIONS
Asia Pacific focus
(ANZ, China, Other Asia)
USA
UK
Potential new markets
PROPRIETARY
KNOW-HOW,
A2 PROTEIN EXPERTISE
Integrated intellectual property portfolio
Leading operational &
compliance capability
Sponsoring relevant scientific research
Differentiated brand development
9

Organisational renewal and shareholder information
10
24,412
23,448
33,033
Nov-16Jun-17Nov-17
63.1%
36.9%
ASXNZX
Number of Shareholders
1
Shareholding by exchange
2
•Continued build of Board and senior management capability
–Appointment of Warwick Every-Burns & Jesse Wu as non-executive Directors during FY17
–Recent reorganisation of senior leadership team and new focus:
Chief Executive Asia Pacific
Executive Vice President China
Head of Business Development –Emerging Markets
UK, Europe & Strategic initiatives
•New hires across the Company to support regional growth and innovation needs
1
Total shareholders (ASX & NZX combined) as at 15 November 2017
2
Weighting based on % of fully paid issued capital by exchange as at 15 November 2017

FY17 result highlights

Financial summary
12
•Group revenue growth of +56% on pcp, a2 Platinum® infant formula revenue +84%
•EBITDA to sales margin of 26% (up from 15% in pcp)
•Gross margin primarily reflects increased contribution from infant formula sales and
lower infant COGS in FY17
•Increased marketing and brand development spend of $9.0m vs pcp, primarily in US
and China
•Increases to ‘administration and other’ reflects write-down of intangibles (+$2.4m),
increased spend on patents, trademarks and R&D (+$2.0m) and other costs associated
with business expansion
•Effective tax rate reduced from ~42% to ~35% reflecting lower weighting of non-
deductible expenses and international losses not tax effected
•Cash on hand reflects strong NPAT contribution offset by $48.7m investment in Synlait
•Inventory reduction reflects strong demand for infant formula
•Refer Appendix for geographic performance, cash position and a reconciliation of non-
GAAP measures
NZ$ millionFY17FY16% change
Revenue549.5352.856%
Gross margin263.5151.075%
Sales & distribution(21.3)(19.0)12%
Marketing (42.0)(33.0)27%
Employee costs(23.0)(19.1)20%
Administration & other(36.0)(25.3)42%
EBITDA141.254.6159%
EBIT138.551.8167%
NPAT90.630.4198%
Jun-17Jun-16% change
Cash on hand121.069.474%
Inventory28.452.6(46%)

The year in charts
13
110.8
155.1
352.8
549.5
FY14FY15FY16FY17
H1H2
3.6
4.8
54.6
141.2
FY14FY15FY16FY17
H1H2
Group Revenue (NZ$ million)Group EBITDA
1
(NZ$ million)
1
EBITDA is a non-GAAP measure and represents earnings before interest, tax, depreciation and amortisation, and is shown before non-recurring items
0.0
-0.3
4.4
12.7
FY14FY15FY16FY17
EPS
Basic Earnings Per Share (Cents)

16.8
24.9
73.9
140.5
184.5
209.5
1H152H151H162H161H172H17
Group Infant Formula Net Revenue (NZ$m)
Continued strong growth in sales and market share for a2 Platinum®
14
•Group infant formula revenue of NZ$394.0 million, compared to
NZ$214.4 million for FY16
•Infant formula accounts for 72% of Group revenue
•Significant growth in Australian marketplace:
–Fastest growing Australian infant formula brand by value
1
–Number 2 infant formula brand in the Australian market
1
–Value market share growing from ~16% to ~26% (MAT)
1
•Continued success of a2 Platinum® in China a function of our multi-product,
multi-channel strategy:
–Direct sales into China increased significantly in cross border e-commerce channels
(CBEC) and mother baby retail stores (MBS)
–China achieved ~150% growth of infant formula sales from FY16
–China Label accounted for ~6% of Group infant formula sales in FY17,
strengthening to ~8% in 2H17
•SynlaitMilk Limited:
–Enhanced supply agreement completed in August 2016 provides security of supply
–a2MC acquired 8.2% shareholding (March 2017)
1
Australian Grocery and Pharmacy Scan 52 weeks to 30 June 2017
74.8
80.3
139.2
213.6
256.1
293.4
1H152H151H162H161H172H17
Liquid MilkInfant FormulaOther
Portfolio Composition (Net Revenue NZ$m)

UK
•Achieved first annual operating profit
•‘a2tonishing™’ marketing campaign continued
•Distribution expansion to ~1,600 stores and growth in rate of sale
•Assessing incremental opportunities in Europe and Middle East
ANZ
•Exceptional ANZ business performance; revenue $439.6m (+48.3%)
•~78% growth in a2 Platinum® infant formula
•a2 Milk™ fresh milk revenue up ~5.5%
•Strong growth in whole milk powder
•Skim milk powder introduced (May 17)
•a2MC highest brand advertising spend
1
•Continued to pay a premium to farmers
China
•Strong sales and earnings momentum; revenue $88.9m (+132.9%)
•Infant formula consumption value share of 3.5%
2
•Strong growth across mother baby retail and cross border e-commerce
channels
•Increased local China team capability
•Managed expansion in structured way, supported by in-market
consultants
USA
•Progress in building brand awareness, growing rate of sale and
expanding footprint region-by-region
•Distribution to ~3,000 stores
•‘Love Milk Again’ campaign launched
•Continued focus on return on investment
•Financial outlook now assumes ~US$25M future investment before
positive monthly EBITDA in FY20
15
FY17 regional performance
1
Highest brand advertising spend for both infant formula and fresh milk categories for FY17
2
Kantar Infant Formula market tracking of China Tier 1 and Key A cities for quarter ending 30/06/17 vs prior year of 2.1% (Kantartrack a substantial proportion of the total market)

FY18 market update

FY18 market update: regional performance
ANZ
•a2 Milk™ branded fresh milk performing well with continued pleasing growth on pcp(4 months to October)
•a2 Platinum® infant formula continues to be a significant contributor to the ANZ segment
•The a2 Platinum® brand was the largest contributor to revenue growth across all Australian grocery and OTC pharmacy categories
1
•Successful launch of a2 Platinum® Stage 4 with strong consumer acceptance
•Strong growth in a2 Milk™ branded milk powders (skim, whole milk)
•a2 Milk™ considered top brand of choice for Australian millennials (#1 brand on millennial shopping lists
2
)
•The Australian Federal Court action initiated against a competitor remains in progress; a2MC remains confident of achieving a successful outcome. The
scheduled hearing date has been vacated from November 2017 until a date to be determined in the New Year
China and other Asia
•Building local team under new Executive Vice President China, Jane Xu, to support ongoing sales growth
•Distribution in China Mother Baby (MBS) channel now exceeds 5,800 stores; further expansion remains a key focus
•Consumption share for a2 Platinum® infant formula brand continues to strengthen; ~4.1% Kantar value share up from ~3.5%
3
•Successful “11/11” e-commerce sales event achieving number 1 infant formula brand in Kaola, number two on JD.com and 3
rd
place on Tmall
•Increased marketing investment with new advertising campaign planned from December 2017 within a key China region
•China Food and Drug Administration (CFDA) registration achieved for China label infant formula
•Launch of a2 Platinum® infant formula (English label) in Hong Kong with initial distribution through pharmacy from November
•Recent launch of Australian fresh milk into Singapore, first SEA initiative progressing well
1
Source: IRI MarketEdge, MAT To 13/08/17, Australian grocery and OTC (over the counter) pharmacy categories (excluding tobacco and private label)
2
The Urban List, Food & Drink Survey, 1 May 2017
3
Kantar Infant Formula market tracking of China Tier 1 and Key A cities for latest quarter ending 08/09/17, up from 3.5% quarter ended 30/06/17

Infant formula
regulations cover
Stages 1-3;
exclude Stage 4
China label product sold through traditional import mode
•CFDA
1
registration achieved September 2017 by SynlaitMilk for the importation of a2MC
infant formula into China from 1 January 2018
•Registration process included product testing, formulation & ingredient assessment and
packaging changes in response to new labelling requirements
•The Company will transition from the existing China label to the newly registered product in
market during 2H18
China infant formula regulatory environment
CBEC
English label
China label
Imported
by
China State
Farm
English label product sold through CBEC platforms
•Recent commentary from China State Council suggests:
–Further 1 year extension to grace period of China CBEC policy to end of December 2018
–Establishment of new experimental zones to promote development of CBEC
•Further announcements relating to infant formula within the CBEC channel expected
1
CFDA: China Food and Drug Administration
18

Hainan
Heilongjiang
Jilin
Liaoning
Hebei
Shandong
Fujian
Jiangxi
Anhui
Hubei
Hunan
Guangdong
Guangxi
Shanghai
Henan
Shanxi
Inner Mongolia
Shaanxi
Ningxia
Gansu
Qinghai
Sichuan
Guizhou
Yunnan
Tibet
Xinjiang
Jiangsu
Beijing
Taiwan
Zhejiang
Tianjin
China focus on MBS expansion
Newly added distributors
October 2017:
Distributors: ~65
Stores: >5,800
Building in-store support personnel

Stepped up investment in China marketing

FY18 market update: regional performance
21
UK
•Pleasing progress in rate of sale for fresh milk (>50% revenue growth on pcp
1
)
•Continued growth in distribution footprint, total stores now exceeding 2,000 (up from ~1,600 at June 2017)
•Results include a2 Platinum® infant formula sales in the wholesale channel in line with pcp
•Continuing to assess incremental opportunities in Europe and the Middle East
USA
•Distribution build in core regions and national accounts:
−Stores now totalling~3,600 across the country, a growth of 600 stores in 4 months to October 2017
−Natural retailers include Whole Foods (7 of 11 regions nationally), Sprouts (national)
•Velocity in key accounts approaching or exceeding 30 units per store per week
2
•Rate of sale build in Publix backed by earned media and “Love Milk Again” advertising campaign
•Achieving national earned media including “CBS This Morning” national TV news feature during October and strong press coverage
•Investigating specific new product opportunities for this market
•Given achievement of KPIs (sales velocity and brand awareness) in California and the South East, plans are progressing for further expansion in an
additional region during 2H18
•The FY18 outlook assumes increased marketing expenditure in 2H18 in support of this expansion
1
4 months to October 2017 vs prior corresponding period
2
Refers to the units per store per week for the total range

Current and near term distribution
22
Broad Distribution
Limited Distribution
No Current Distribution
US office, Boulder, Colorado
Processing and Milk Supply
Southeast
•Entered March 2017
•Initially through Publix into
1,100 Stores
•Distribution expanded into
Winn Dixie and Harris Teeter
California
•Launched April 2015
•High levels of acceptance from
retailers including Sprouts, Whole
Foods, Kroger & Safeway
•Distribution has further grown to
include Target & independent
retailers
Legend

0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
a2 Milk™ US distribution number of outlets
Building brand awareness and expanding footprint on a region-by-region basis
23
Timeline
Apr 2015
Oct 2017
California launch
NorCal & Mid-
Atlantic
Velocitygrowth focus and
select distribution build
South East expansion
Florida, Northeast,
Southwest & Rocky
Mountains
South

The science continues to develop
24
•Newly published human clinical research reports A1 protein
1
found in conventional milk may trigger symptoms associated with milk intolerance
2
–Study involved 600 adult Han Chinese participants with self-reported lactose intolerance
–Participants found that the adverse GI symptoms following consumption of only 1 glass of conventional milk may be related to thepresence of A1 protein type rather
than lactose itself
–Study was independently published in UK based Nutrition Journal and sponsored by The a2 Milk Company
•Other significant research projects progress:
–First acute human pilot study under the New Zealand Government grant has been completed by the University of Auckland and further studies now progressing
–Clinical study in China amongst pre-school children examining digestive and cognitive function submitted for publication; results aligned with recent adult findings
–Human clinical study in association with Monash University Australia examining the benefits of a2 Milk™ on irritable bowel syndrome
–Clinical examination of benefits of A1 protein-free milk to gut and systemic inflammation at USA Pennington Biomedical Research Centre
–Human clinical trial with Pennington Biomedical Research progressing
1
A1 and A2 protein refers to the A1 and A2 beta-casein protein types
2
https://nutritionj.biomedcentral.com/track/pdf/10.1186/s12937-017-0275-0?site=nutritionj.biomedcentral.com

FY18 YTD results: 4 months to October 2017
25
Group Revenue
(4 month)
Group EBITDA
(4 month)
NZ$ million4M18
1
4M17% change
Revenue262.2155.2+68.9%
EBITDA78.435.5+120.8%
PBT78.035.0+122.9%
NPAT52.322.0+137.7%
1
Unaudited management results, 4 months to October 2017 = 4M18
47.6
79.3
155.2
262.2
4M154M164M174M18
1.0
6.2
35.5
78.4
4M154M164M174M18

4M18 trading
•Group revenue of NZ$262.2 million:
–Reflects continued strong growth in nutritional products (ANZ, China) and positive momentum in USA, UK
–Includes some seasonal build ahead of key China e-commerce sales events, 11/11 Singles Day and 12/12
•Group EBITDA of NZ$78.4 million:
–Benefited from timing of marketing spend (2H18 to exceed 1H18)
–Evolving product mix and raw material cost increases creating some downward pressure on product margins; more than offset by favourable YTD currency movements
(weaker NZD)
FY18 outlook
•Expecting marketing expense in 2H18 to exceed 1H18 by ~NZ$30 million, driven by timing of planned spend in China and USA
•Seeking to build inventory to more sustainable levels during FY18
•Targeting greater flexibility and lower cost procurement arrangements throughout the supply chain
Capital management
•The Board continues to monitor the appropriate use of the Company’s available capital in the best long-term interest of all shareholders
FY18 trading performance and outlook
26

thea2milkcompany.com

Appendix

Geographic financial performance
29
NZ$ millionFY17FY16Movement %
Operating Segment
Segment
Revenue
Operating
EBITDA
1
Segment
Revenue
Operating
EBITDA
1
Segment
Revenue
Operating
EBITDA
1
Australia & New Zealand439.6155.3296.384.748.3%83.4%
China & other Asia 88.932.838.29.2132.9%257.6%
Corporate and other-(24.4)-(18.8)-30.2%
Total excludingUS & UK528.5163.7334.575.158.0%118.0%
US & UK
2
21.0(22.5)18.3(20.5)15.1%9.8%
Total Group549.5141.2352.854.655.8%158.6%
Infant formula (included in Group total)394.0214.483.8%
1
Operating EBITDA is a non-GAAP measure and represents earnings before interest, tax, depreciation and amortisation
2
UK & US Operating EBITDA includes $2.2 million in impairment charges in FY17

Cash position
30
•Cash on hand reflects continued earnings momentum
•Inventory reduction reflects strong infant formula demand exceeding stock availability
•Working capital movement driven largely by increase in trade debtors and prepayments relating to infant formula
•Includes acquisition of shareholding in Synlait
•Working capital outlook assumes a planned increase in infant formula inventory in FY18
Group Cash Movement (NZ$ million)
69.4
+90.6
+24.1
(22.8)
(2.5)
(48.7)
+7.8
+3.1
121.0
Cash on hand
(Jun-16)
Group NPATInventory
reduction
Other working
capital
Investments in
PPE &
intangibles
Investment in
Synlait
Depreciation,
amortisation &
other non-cash
FX and otherCash on hand
(Jun-17)

Reconciliation of non-GAAP measures
31
NZ$ millionFY17FY16
ANZ segment EBITDA155.384.7
China & other Asia segment EBITDA32.89.2
US & UK segment EBITDA(22.5)(20.5)
Corporate& other segment EBITDA(24.4)(18.8)
EBITDA
1
141.254.6
Depreciation& amortisation(2.7)(2.8)
EBIT
1
138.551.8
Net interest income0.80.5
Income tax expense(48.7)(21.9)
Netprofit for the period90.630.4
1
EBITDA and EBIT are non-GAAP measures, but the Company believes they provide investors with a comprehensive understanding of theunderlying performance of the business