Synlait Milk – Annual Meeting of Shareholders

ANNUAL MEETING OF SHAREHOLDERS
29 NOVEMBER 2017
DELIVERING
2017

AGENDA
- WELCOME AND INTRODUCTIONS
- CHAIRMAN'S ADDRESS
- CHIEF EXECUTIVE OFFICER’S ADDRESS
- OUR FINANCIAL RESULTS FY17
- OUR EXPECTATIONS AND FUTURE
- QUESTIONS
- FORMAL RESOLUTIONS
- ANY OTHER BUSINESS
- ANNUAL MEETING CONCLUDES
Synlait Milk Limited 2017
I
Page 2
ANNUAL MEETING OF SHAREHOLDERS
I

Graeme Milne
CHAIRMAN
CHAIRMAN’S ADDRESS
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 3

LEADERSHIP UPDATE
- Long-time Chief Executive Officer and founder John Penno intends to step down from
his position in the next 12 months
- This is part of an orderly transition to position Synlait for its next phase of growth
- This is timed well with Synlait being in very healthy shape with a strong balance sheet
and a clear future growth plan
- John will continue in the role of CEO until a successor is found and in place
- We will look for a CEO with the skills and experiences to take Synlait up another level.
- We have expressed our desire for John to continue in a governance role on the Synlait
Milk Board of Directors
Synlait Milk Limited 2017
I
Page 4
ANNUAL MEETING OF SHAREHOLDERS
I

Graeme Milne
CHAIR (INDEPENDENT)
John Penno
MANAGING DIRECTOR AND CEO
Hon. Ruth Richardson
NON-EXECUTIVE, BRIGHT DAIRY
APPOINTED DIRECTOR,
CHAIR OF REMUNERATION AND
GOVERNANCE COMMITTEE
Bill Roest
NON-EXECUTIVE DIRECTOR
(INDEPENDENT), CHAIR OF THE
AUDIT AND RISK COMMITTEE.
Sam Knowles
NON-EXECUTIVE DIRECTOR
(INDEPENDENT)
Sihang Yang
BRIGHT DAIRY APPOINTED DIRECTOR
Qikai (Albert) Lu
BRIGHT DAIRY APPOINTED DIRECTOR
Min Ben
BRIGHT DAIRY APPOINTED DIRECTOR
BOARD OF DIRECTORS
Synlait Milk Limited 2017
I
Page 5
ANNUAL MEETING OF SHAREHOLDERS
I

GROWTH
COMPANY
WE ARE A
OVER THE PAST 1O YEARS
WE HAVE GROWN FROM
START-UP TO ANNUAL
PRODUCTION VOLUMES OF
140,000 METRIC TONNES (MT)
SYNLAIT IS A B2B
MANUFACTURING
COMPANY FOCUSSED
ON MAKING THE MOST
FROM MILK.
20172006
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 6

FINANCIAL SUCCESS
Notes: (1) Leverage = net debt / EBITDA;
(2) Return on capital employed (ROCE) is calculated by dividing earnings before interest and tax (EBIT) by the average capital employed (equity + net debt);
(3) Gearing = net debt / (net debt + equity), excluding derivatives. See our 2017 Annual Report for further details, available at: http://www.synlait.com/investors/
$38.2m
11%
TOTAL SHAREHOLDER RETURNS
34.1%
N PAT U P
LEVERAGE FROM
2.6X DOWN TO 0.9X
(1)
ROCE OF 13.9% (FY16: 13.5%)
(2)
$65.8m
NET DEBT DECREASED FROM
TO
$214m
$83m
GEARING DOWN FROM
TO
46.8%
18.0%
(3)
EBIT INCREASED TO
(FY16: $61.1m)
Synlait Milk Limited 2017
I
Page 7
ANNUAL MEETING OF SHAREHOLDERS
I

- Deepening partnerships with leading brand owners.
- Strong support from our 200 contracted milk suppliers.
- High specification plant with high utilisation.
- Rigorous quality control and on-site testing.
- Growing our well established infant formula business. New infant formula
supply agreements with The a2 Milk Company, and New Hope Nutritionals.
- Expanding capacity. Auckland site commissioned to double infant packaging
capacity. New Wetmix investment to double infant base powder capacity.
Intention to acquire new land in the North Island to create a second powder
manufacturing site and access second pool of farm suppliers.
- Building innovation. In depth involvement across product selection, design
and development. Research and category development investment growing
towards target of 1.5% of revenue.
- Evaluating new high margin categories to diversify regions, customers
and products. For example, the planned launch of Munchkin’s Grass Fed™
infant formula into the U.S. will add market diversity.
- Sachet packaging. Introduce new packaging options for customers through
investing in three high specification, high speed, blending and sachet packaging
lines built to infant formula standards.

WE HAVE:
WE ARE:
Synlait Milk Limited 2017
I
Page 8
ANNUAL MEETING OF SHAREHOLDERS
I

$4.50
$4.30
$4.10
$3.90
$3.70
$3.50
$3.30
$3.10
$2.90
$2.70
$2.50
FY17 HIGHLIGHTS
- Total Shareholder Return (TSR) of 34.1% achieved
during FY17
- Key initiatives during the year included:
- $98m equity raise
- Dual-listing on ASX
- a2 acquiring 8.2% strategic stake in Synlait
- Synlait’s acquisition of NZ Dairy Company (NZDC)
- Added to S&P/NZX50 index
NZDC ACQUISTION
ANNOUNCED
SML COMMENCES
TRADING ON ASX
A2 INFANT FORMULA
SUPPLY AGREEMENT
ANNUAL RESULTS AND CAPITAL
RAISE ANNOUNCED
INTERIM RESULTS
RELEASED
A2 ACQUIRES 8.2%
STAKE IN SYNALIT
AUG 16 OCT 16DEC 16FEB 17APR 17JUN 17
SML.NZ SHARE PRICE PERFORMANCE (FY17)
Synlait Milk Limited 2017
I
Page 9
ANNUAL MEETING OF SHAREHOLDERS
I

- Synlait has significantly outperformed the
NZX50 since listing in July 2013, up 250% whilst
the NZX50 is up 77% over the same period
- Share price has increased 143% over the last
12 months
(1)
, with the recent rally attributed to:
- Increased confidence in Synlait’s ability to
grow infant formula volumes and maintain
attractive margins
- Receiving CFDA registration for a2’s infant
formula products
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
-
JUL 13JAN 14JUL 14JAN 15JUL 15JAN 16JUL 16JAN 17JUL 17
SML.NZ SHARE PRICE PERFORMANCE (SINCE LISTING)
(1)
Source: Thomson Reuters, Data current as at 23 November 2017
SMLNZX50 (REBASED TO SML)
PROVEN ABILITY TO CREATE SHAREHOLDER VALUE
Synlait Milk Limited 2017
I
Page 10
ANNUAL MEETING OF SHAREHOLDERS
I

- Synlait has had a solid 12 months, delivering on many of the growth
strategies established at the start of the year
- Balance sheet provides a platform for future growth with capacity to
undertake value enhancing opportunities and ~$300m investment programme
- Continue to see significant growth in demand for canned infant formula
products in FY18, led by a2 Milk Company
- We will continue to invest in manufacturing facilities to support increased
demand from our customers
- Expect to announce our new product categories and associated
investment soon
- Significant growth in profitability expected in FY18 which is driven by
growth in canned infant formula
- We want to thank our shareholders for their continued support, in particular
the excellent response to the September 2016 capital raise
IN SUMMARY
Synlait Milk Limited 2017
I
Page 11
ANNUAL MEETING OF SHAREHOLDERS
I

John Penno
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
CHIEF EXECUTIVE OFFICER’S ADDRESS
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 12

UPDATE ON STRATEGIC TARGETS
- Investment into a second site to support future growth and initiate mitigation of
single site risk with the acquisition of NZDC and establishment of Synlait Auckland.
- Significant investments made: into our people with the recruitment of five new
roles in the Senior Leadership Team, through the commencement of a major project
focused on an enterprise wide review of our systems and processes, and increased
spending in Research and Category Development.
- Continued development of strategic partnerships in canned infant
formula, entering into a five year agreement with New Hope Nutritionals, and
receiving demand increases from the a2 Milk Company.
- Progress in developing differentiated milk streams, with Synlait and
Munchkin continuing to work through the FDA registration process required to
launch Grass Fed™ infant formula in the U.S.
- Strong growth in infant grade milk powders and base powders, with infant
formula volumes increasing 15% to 24,564 MT, of which 18,776 MT was in canned
format, and 5,788 MT was nutritional base powder.
- We also sold 22,500 MT of infant grade WMP and SMP for blending and packing
into finished infant formula products.
Synlait Milk Limited 2017
I
Page 13
ANNUAL MEETING OF SHAREHOLDERS
I

INFANT FORMULA IS THE MOST REGULATED FOOD PRODUCT IN THE WORLD - IT IS
THE ONLY FOOD PROVIDED TO SOME INFANTS IN THEIR FIRST MONTHS OF LIFE.
- The Chinese Food and Drug Adminstration (CFDA) registration of The a2 Milk
Company’s infant formula was granted in September 2017.
- Because the manufacturer controls quality, the manufacturer is registered alongside the
product in most markets. Synlait registers the brands its B2B customers sell.
- The CFDA will grant selected factories licences to manufacture up to three brands for the
Chinese market.
- We recruited Ying Jin as our Regulatory and Science Affairs Director, China, to support
market access and business development. Experienced in managing regulatory affairs for
multi-national infant formula companies, Ying has a PhD in food safety and a medical degree.
- The expanded New Hope Nutritionals supply agreement will underpin applications to
register New Hope Nutritionals infant formula brands.
- In October 2017 we submitted an application to register New Hope Nutritionals Akara brand
with the CFDA.
REGISTERING BRANDS IN CHINA
Synlait Milk Limited 2017
I
Page 14
ANNUAL MEETING OF SHAREHOLDERS
I

INCREASING OUR CAPACITY AND REDUCING RISK
GIVEN STRONG CURRENT AND EXPECTED CUSTOMER DEMAND, WE CHOSE TO
ACQUIRE 100% OF THE SHARES IN THE NEW ZEALAND DAIRY COMPANY LIMITED
(NZDC). NZDC WAS CONSTRUCTING AN INFANT FORMULA-CAPABLE BLENDING
AND CONSUMER PACKAGING OPERATION IN AUCKLAND.
- The acquisition enables us to supply more consumer packaged products to customers
faster than a new development would have done.
- Having a second blending and consumer packaging site helps to mitigate single site risk.
- With an additional manufacturing site in Auckland, Synlait’s potential number of brands
in China has expanded.
- We are seeking both Ministry for Primary Industries and CNCA (Certification and Accreditation
Administration of the People’s Republic of China) registration for the new facility.
- The Synlait Auckland plant was officially opened on 20 November 2017 by Auckland
Mayor Phil Goff. The total investment into the Auckland site is $52 million, and commercial
production has commenced.
Synlait Milk Limited 2017
I
Page 15
ANNUAL MEETING OF SHAREHOLDERS
I

SYNLAIT ADDS VALUE FROM FARM TO CONSUMER
DIFFERENTIATED
MILK SUPPLY
- Contract supply of milk
- Facilitate and monitor differentiated milk
supply behind the farm gate (a2 Milk
TM
,
Grass Fed
TM
, Lead With Pride
TM
)
RAW MATERIALS
PROCUREMENT
- Procurement of high quality ingredients
for our customers
- Undertake quality audits of suppliers
RESEARCH + CATEGORY
DEVELOPMENT
- Select categories and markets
- Design products
- Innovate production and processes
QUALITY TESTING
LABORATORY
- Zero defects target
- Testing raw materials, finished
products and facilities
- Full quality assurance and
traceability
CUSTOMERS
- Our brand partners
market, promote, and
distribute their products
MANUFACTURING
EXCELLENCE
- Large multi-purpose plant
- Control all aspects of product quality
- Optimise plant utilisation
REGULATORY
CAPABILITY
- Provide market access for our customers
- Secure regulatory approval for products
CONSUMER
CONSUMER PACKAGING
- Second state-of-the-art canning line being built
- High-specification sachet lines
Synlait Milk Limited 2017
I
Page 16
ANNUAL MEETING OF SHAREHOLDERS
I

UNLOCKING INFANT FORMULA DRYER CAPACITY
MILK SOLIDS
65.0m kgMS (FY17)
19.8m
6.9m
1.7m Other Suppliers
23 GRASS FED™
FARMS
8.8m
26 LEAD WITH
PRIDE
TM
FARMS*
CONTRACTED FARMS
APPROX 200 (FY17)
60 a2 MILK
TM

FARMS
THREE HIGH SPECIFICATION
SPRAY DRYERS
80,000 MT
MAX. CAPACITY
D3 (INFANT
FORMULA
CAPABLE)
40,000 MT
D2 (INFANT
FORMULA
CAPABLE)
40,000 MT
D1 (INFANT-GRADE
WMP + SMP)
40,000 MT
20,000 MT
AMF
(1)
PLANT
2 7. 6m
89
REGULAR
FARMS
WETMIX
KITCHENS
80,000 MT
MAX. CAPACITY
40,000MT - November 2017
40,000 MT
40,000 MT
(Commissioned Nov 17)
New Wetmix kitchen enables both of
our large-scale infant formula spray
dryers to simultaneously manufacture
infant formula base powder.
CONSUMER PACKAGING
87,000 MT TOTAL CAPACITY
32,000 MT
(CANNING)
DUNSANDEL
23,000 MT
SACHET LINES
PLANNED
Synlait Auckland’s new blending and
canning line doubles our canned
infant formula capacity.
32,000 MT
(CANNING)
AUCKLAND
(Commissioned Nov 17)
BASE POWDER
CUSTOMERS
Note:
(1)
AMF = Anhydrous Milk Fat*Some Lead With Pride
TM
farms also supply a2 Milk
TM
and Grass Fed
TM
, total Lead With Pride
TM
farms is 50.
Synlait Milk Limited 2017
I
Page 17
ANNUAL MEETING OF SHAREHOLDERS
I

- Our team has grown from 436 to nearly 600 in FY17
- Two additional shifts in the consumer packaging facility
- Technical roles for the quality testing laboratory
- New roles to support Integrated Business Planning (IBP)
- Lifting the experience profile of our people in Projects,
Technology and Finance.
IMPROVING A WORLD CLASS TEAM
Synlait Milk Limited 2017
I
Page 18
ANNUAL MEETING OF SHAREHOLDERS
I

ENHANCED SENIOR LEADERSHIP CAPABILITY
John
Penno
MANAGING DIRECTOR
AND CEO (ELT)
Nigel
Greenwood
CHIEF FINANCIAL
OFFICER (ELT)
Boyd
Williams
DIRECTOR, PEOPLE, CULTURE
AND PERFORMANCE (ELT)
Chris
France
DIRECTOR, STRATEGY AND
TRANSFORMATION (ELT)
Martijn
Jager
DIRECTOR, SALES AND
BUSINESS DEVELOPMENT (ELT)
Neil
Betteridge
DIRECTOR,
OPERATIONS (ELT)
Antony
Moess
GENERAL MANAGER,
MANUFACTURING
Callam
Weetman
GENERAL MANAGER,
SALES
Matthew
Foster
GENERAL MANAGER,
STRATEGIC PROJECTS
Rob
Stowell
GENERAL MANAGER, SUPPLY
CHAIN
Roger
Schwarzenbach
GENERAL MANAGER,
INNOVATION AND TECHNICAL
SERVICES
THE SENIOR LEADERSHIP TEAM (SLT) HAS EVOLVED TO MEET THE CHANGING NEEDS OF OUR BUSINESS
Note: ELT = Executive Leadership Team
Synlait Milk Limited 2017
I
Page 19
ANNUAL MEETING OF SHAREHOLDERS
I

OUR
FINANCIAL
RESULTS
FY17
Nigel Greenwood
CHIEF FINANCIAL OFFICER
Synlait Milk Limited 2017
I
Page 20
ANNUAL MEETING OF SHAREHOLDERS
I

$MILLIONS
PROFIT GROWTH
- Net profit after tax was $38.2m,
up from $34.4m in FY16.
- Increased infant sales volumes
drove gross profit growth of $10.0m
(before tax).
- $6.0m was reinvested into
business development and planning
capabilities for future growth.
NET PROFIT AFTER TAX
$38.2m
FY13FY14FY15FY16FY17
34.4
19.6
11.5
38.2
10.6
(0.2)
(6.0)10.0
Synlait Milk Limited 2017
I
Page 21
ANNUAL MEETING OF SHAREHOLDERS
I

- Revenue at $759.0m was up 39% on last year’s
$546.9m, driven by increased sales volumes and improved
dairy commodity prices.
- Total sales volume at 141,393 MT was 21% above
last year’s 116,402 MT, due to increased milk supply
and carry over stock from FY16 sold through.
- Canned infant formula volumes increased
17% to 18,776 MT.
- 11 MT of lactoferrin sold in FY17
(FY16: 10 MT). We also used 1.7 MT
of lactoferrin internally in producing
infant formula.
FY13FY14FY15FY16FY17
18,776
15,999
4,305
2,955
1,368
MT
85,31490,59993,454100,387122,588
CANNED INFANT FORMULA
SALES INCREASED
17%
SALES VOLUME BY PRODUCT CATEGORY
Consumer PackagedPowders and Cream
HIGHER VOLUMES DRIVE REVENUE GROWTH
Synlait Milk Limited 2017
I
Page 22
ANNUAL MEETING OF SHAREHOLDERS
I

FY13FY14FY15FY16FY17
781
567
687
588
110.4
100.4
55.5
64.2
51.0
GROSS PROFIT PER MT MARGINALLY LOWER
- Continued growth in earnings driven by
improved volumes. Gross profit was up
10% to $110.4m.
- Our overall gross profit per MT at $781
was $82 per MT down on last year.
This was due to higher growth in ingredient
sales, which is dilutive to margin.
- In addition, 3,939 MT of carry over
inventory was sold at net realisable
value (no margin).
- Consumer packaged gross profit per MT
improved, with higher utilisation at our
Dunsandel blending and canning facility.
GROSS PROFIT
$110.4m
863
$MILLIONS
NZD / MT
GROSS PROFIT
GROSS PROFIT PER METRIC TONNE
Synlait Milk Limited 2017
I
Page 23
ANNUAL MEETING OF SHAREHOLDERS
I

CONTINUED CASH FLOW GROWTH
- Operating cash flow increased by
$10.8m from FY16, to $115.2m in FY17.
- Operating cash flow was greater than
EBITDA given rising milk prices,
relative to the advance rates paid.
- An offsetting factor was an increase
in receivables (up $41.2m on FY16).
This was driven equally by increased dairy
commodity prices and increased sales
volumes in the last two months of the
financial year (phasing).
FY13FY14FY15FY16FY17
16.4
104.4
58.7
115.2
( 4 7.1 )
OPERATING CASH FLOW
$115.2m
$MILLIONS
(41.2)
68.9
88.8
(1.3)
115.2
$MILLIONS
OPERATING CASH FLOW
FY17 OPERATING CASH FLOW
FY17 EBITDAAdvance ratesReceivables OtherFY17 operating
cash flow
Synlait Milk Limited 2017
I
Page 24
ANNUAL MEETING OF SHAREHOLDERS
I

DEBT REDUCTION
- Net debt has decreased from $213.9m in FY16 to $82.6m.
- The capital raise of $97.6m completed in October 2016 and
strong operating cash flows of $115.2m were the main drivers.
- These factors vastly outweighed the investment in our Wetmix
kitchen ($33.1m), the acquisition of NZDC ($33.9m) and
other capital expenditure of $12.1m.
- Synlait continued generating free cash flow in FY17, producing
$55.0m (being operating cash flow less investing cash flow).
Our leverage ratio improved substantially, from 2.6x to 0.9x.
82.6
(213.9)
$MILLIONS
NET DEBT
FY16 Net DebtCash flow
from Operating
Activites
Growth
Capex
NZDC
Investment
Net Interest
Paid
Equity raise
(net)
OtherFY17 Net Debt
105.6
FY13FY14FY15FY16FY17
213.9
152.1
82.6
262.0
LEVERAGE
7. 0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
NET DEBT
350
300
250
200
150
100
50
NET DEBT AND LEVERAGE
115.2
(33.1)
(33.9)
(12.1)
96.1
(0.9)
Leverage
Net Debt
Synlait Milk Limited 2017
I
Page 25
ANNUAL MEETING OF SHAREHOLDERS
I

OUR
EXPECTATIONS
AND FUTURE
Synlait Milk Limited 2017
I
Page 26
ANNUAL MEETING OF SHAREHOLDERS
I

SECOND POWDER
MANUFACTURING
SITE TO BE
DEVELOPED IN THE
NORTH ISLAND

GOING FORWARD
- We see considerable opportunities to solidify our current ingredient
and infant formula positions and to enter new categories.
- To date our strategy has been exclusively business to business. In future,
we may consider the establishment of branded positions, where:
- there is no conflict with our existing partner relationships; and
- we feel we have significant consumer benefits.
- Intention to acquire new land in the North Island to create a second
powder manufacturing site and access a second pool of farm suppliers.
- In summary our strategy is to continue to grow both top and bottom
lines at pace.
- A more profitable, more diversified and lower risk business is the goal.
WE MAY
CONSIDER THE
ESTABLISHMENT
OF BRANDED
POSITIONS
Synlait Milk Limited 2017
I
Page 27
ANNUAL MEETING OF SHAREHOLDERS
I

EXPECTATIONS OF GROWTH
- We expect Chinese infant formula demand to continue to
grow, particularly with the relaxing of the one child policy.
- The regulatory change targeting rationalisation of brands may boost
demand in the second half of FY18, post registration.
- Registration of The a2 Milk Company’s and New Hope Nutritional’s
infant formulas in China are expected to support demand growth.
- Investment in customer and market development (e.g. Munchkin
Inc.) is also expected to support our sales growth.
- As a result, we expect demand to increase significantly for Synlait
consumer packaged products.
- Increased infant formula sales drives margin growth.
- Upgrading FY18 canned infant formula volume forecast to the top of
the previously advised range of 30,000 - 35,000 MT.
- 16,000 MT forecast for H1 FY18.
- We will continue to grow our investment in business development
and technical capability.
FY13FY14FY15FY16FY17FY18 (FCT)
35,000
15,999
18,776
4,305
2,955
1,368
ACTUALFORECAST
MT(000)
35
30
25
20
15
10
5
SALES - CANNED INFANT FORMULA
Synlait Milk Limited 2017
I
Page 28
ANNUAL MEETING OF SHAREHOLDERS
I

Graeme Milne
CHAIRMAN
QUESTIONS
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 29

Graeme Milne
CHAIRMAN
FORMAL RESOLUTIONS
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 30

FORMAL RESOLUTIONS
RESOLUTION 1:
AUDITOR’S
REMUNERATION.
To consider and, if thought fit, pass the following as an ordinary resolution:
“That the Board be authorised to determine the auditor’s fees and expenses
for the 2018 financial year.”
Synlait Milk Limited 2017
I
Page 31
ANNUAL MEETING OF SHAREHOLDERS
I

FORMAL RESOLUTIONS
RESOLUTION 2:
ELECTION OF
DIRECTOR.
To consider and, if thought fit, pass the
following as an ordinary resolution:
“That Bill Roest be re-elected as a Director.”
Bill Roest
Synlait Milk Limited 2017
I
Page 32
ANNUAL MEETING OF SHAREHOLDERS
I

FORMAL RESOLUTIONS
RESOLUTION 3:
DIRECTORS’
REMUNERATION.
To consider and, if thought fit, pass the following as an ordinary resolution:
“That the annual fee for each Director be $80,000, except for the annual
fees of each of the two Committee Chairs which will be $92,000 and the
Chairman of the Board which will be $150,000. All these increases apply
from 1 April 2018.”
Synlait Milk Limited 2017
I
Page 33
ANNUAL MEETING OF SHAREHOLDERS
I

Graeme Milne
CHAIRMAN
ANY OTHER BUSINESS
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 34

INVESTORS
Casey Blatch, Strategic Finance Manager
+64 3 373 3091
Casey.Blatch@synlait.com
MEDIA
Dan Walraven, Communications Manager
+64 373 3069
Daniel.Walraven@synlait.com
Synlait Milk Limited 2017
I
Page 35
ANNUAL MEETING OF SHAREHOLDERS
I

APPENDIX
Synlait Milk Limited 2017
I
ANNUAL MEETING OF SHAREHOLDERS
I
Page 36

DIRECTOR REMUNERATION AND ATTENDANCE
The total remuneration and other benefits to Directors (and past Directors) for services to the company and the subsidiaries for the year ended 31 July 2017 are stated in the following table.
There were 7 Board meetings, 5 Audit and Risk (A&R), and 3 Remuneration and Governance (R&G) meetings held during FY17.
1
An increase in Director Fees was approved at the Annual Meeting on 29 November 2016 effective from 1 April 2017, so these reflect the 8 months at the old rates and 4 months at the new rates. Full year Director
Fees at the new rates are as follows: Chairman of the Board $130,000, Chair of Committee $82,000, and Director $70,000.
2
As Managing Director, John Penno does not receive Director’s Fees.
DIRECTORCLASSPOSITIONRETIRED / APPOINTED
2017 TOTAL
REMUNERATION
1
BOARD MEETING
ATTENDANCE
(TOTAL OF 7)
A&R ATTENDANCE
(TOTAL OF 5)
R&G ATTENDANCE
(TOTAL OF 3)
Graeme MilneIndependentChairman115,333753
Bill RoestIndependentAudit and Risk Committee Chair71,333752
Hon. Ruth RichardsonBoard AppointedRemuneration and Governance Chair71,3336Non-Member3
John Penno
2
Board AppointedManaging Director-75Non-Member
Sam KnowlesIndependentDirectorRetired and Reappointed 29 November 201663,3337Non-Member2
Sihang YangBoard AppointedDirector63,3334Non-MemberNon-Member
Qikai LuBoard AppointedDirector63,33364Non-Member
Min BenBoard AppointedDirectorAppointed 20 November 201643,6675Non-Member1
Li KeBoard AppointedDirectorResigned 8 September 20166,500---
Synlait Milk Limited 2017
I
Page 37
ANNUAL MEETING OF SHAREHOLDERS
I