Synlait Institutional Investor Day Presentation

INSTITUTIONAL
INVESTOR DAY
8 DECEMBER 2017

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- This presentation is intended to constitute a summary of certain
information about Synlait Milk Limited (“Synlait”). It should be read
in conjunction with, and subject to, the explanations and views
in the documents previously released to the market by Synlait,
including Synlait’s Annual Report for the year ended 31 July 2017.
- This presentation is provided for 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 should consult with their own legal,
tax, business and/or financial advisers or consultants before making
any investment decision.
- Certain statements in this presentation constitute forward looking
statements and projections as they relate to matters other than
statements of historical fact. Such forward looking statements
and projections are provided as a general guide only based
on management’s current expectations and assumptions and
should not be relied upon as an indication or guarantee of future
performance. Forward looking statements and projections involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of Synlait
and which are subject to change without notice. Actual results,
performance or achievements may differ materially from those
expressed or implied in this presentation. No person is under any
obligation to update this presentation at any time after its release
except as required by law and the NZX Main Board Listing Rules.
- Past performance information is given for illustration purposes only
and is not indicative of future performance and no guarantee of
future returns is implied or given.
- While all reasonable care has been taken in relation to the
preparation of this presentation, to the maximum extent permitted
by law, no representation or warranty, expressed or implied, is
made as to the accuracy, adequacy, reliability, completeness or
reasonableness of any statements, estimates or opinions or other
information contained in this presentation, any of which may
change without notice. To the maximum extent permitted by law,
Synlait, its subsidiaries, and their respective directors, officers,
employees, contractors, agents, advisors and affiliates disclaim
and will have no liability and responsibility (including, without
limitation, liability for negligence) for any direct or indirect loss
or damage which may be suffered by any person through use
of or reliance on anything contained in, or omitted from, this
presentation.
- Forward looking statements in this presentation are unaudited and
may include non-GAAP financial measures and information. Not all
of the financial information (including any non-GAAP information)
will have been prepared in accordance with, nor is it intended to
comply with: (i) the financial or other reporting requirements of any
regulatory body; or (ii) the accounting principles generally accepted
in New Zealand or any other jurisdiction with IFRS. Some figures
may be rounded and so actual calculation of the figures may differ
from the figures in this presentation. Some of the information in this
presentation is based on non-GAAP financial information, which
does not have a standardised meaning prescribed by GAAP and
therefore may not be comparable to similar financial information
presented by other entities. Non-GAAP financial information in this
presentation has not been audited or reviewed.
- All values are expressed in New Zealand currency unless otherwise
stated.
- All intellectual property, proprietary and other rights and interests in
this presentation are owned by Synlait.
- This presentation is not an offer or an invitation to acquire Synlait’s
shares or any other financial products and is not a product
disclosure statement, prospectus or other offering document, under
New Zealand law or any other law.
DISCLAIMER

Nigel Greenwood
CHIEF FINANCIAL OFFICER
WELCOME

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AGENDA
MANAGEMENT PRESENTATIONS (10.00AM – 12.30PM)
- Strategic Update – John Penno (CEO and Managing Director)
- Category Management – Martijn Jager (Director Sales and Business Development)
- Research and Development – Roger Schwarzenbach (GM Innovation and Technical Services)
- Business Transformation – Chris France (Director Strategy and Business Transformation)
- People, Culture and Performance – Boyd Williams (Director People, Culture and Performance)
- Manufacturing – Antony Moess (GM Manufacturing)
LUNCH (12.30PM – 1.00PM)
BUS TO SYNLAIT AUCKLAND FOR SITE TOUR (1.00PM – 2.15PM)
RETURN TO NOVOTEL (2.15PM – 2.30PM)

John Penno
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
STRATEGIC UPDATE

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GROWTH
COMPANY
WE ARE A
OVER THE PAST 10 YEARS WE
HAVE GROWN FROM START-UP
TO ANNUAL PRODUCTION
VOLUMES OF ALMOST 140,000
METRIC TONNES (MT)
SYNLAIT IS A B2B
MANUFACTURING
COMPANY FOCUSSED
ON MAKING THE MOST
FROM MILK.
20172007

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kgMS processedProduction Volume
Proven ability to scale manufacturing capacity,
growing production volumes at a 19% compound rate since
Synlait’s first year of processing in FY09.
Next step change in processing capacity expected when
Dryer 4 is commissioned at the North Island site.
SCALABLE MANUFACTURING CAPABILITY
Dryer 1
Commissioned
Dryer 2
Commissioned
Dryer 3
Commissioned
FY10FY11FY12FY13FY14FY15FY16FY17
Production volume
CAGR: 19%
MILLION
kgMS
80
70
60
50
40
30
20
10
0
MT
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
HISTORICAL PRODUCTION AND MILK SUPPLY
FY09

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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
- Two state of the art canning lines
- High-specification sachet lines

TRANSFORMATIONAL IN THE DAIRY INDUSTRY, SYNLAIT’S LEAD
WITH PRIDE™ PROGRAMME RECOGNISES AND REWARDS THOSE
SUPPLIERS WHO ARE ACHIEVING DAIRY FARMING EXCELLENCE.
Lead With Pride™ is Australasia’s only internationally accredited
ISO / IEC 17065 dairy farm assurance system. The programme
measures dairy farms on four pillars of dairy farming; environment,
animal health and welfare, milk quality, and social responsibility.
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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

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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

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SUSTAINED 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/
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)
FY13FY14FY15FY16FY17
CAGR: 35%
$MILLIONS
40
35
30
25
20
15
10
5
0
NPAT (NZ$ MILLIONS)
11.5
10.6
34.4
38.2
19.6

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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 Nutritionals
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.
ACTUALFORECAST
FY13FY14FY15FY16FY17FY18 (FCT)
35,000
15,999
18,776
4,305
2,955
1,368
MT(000)
35
30
25
20
15
10
5
SALES - CANNED INFANT FORMULA

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- Synlait will invest in powder manufacturing capacity when
required to meet customer demand for infant formula products
- Establishing this capacity on a second site allows mitigation of
our current single site risk
- Also introduces access to a second milk pool which further
reduces our risk profile
- A North Island based site meets these needs while also providing
a platform for growth in other categories
- Synlait is currently looking to acquire an appropriate site in
the North Island
- Initial investment on site will be one infant formula capable
spray dryer and related infrastructure at a cost of circa $200m,
capable of manufacturing 40,000 MT of infant base powder per annum
- Investment to be funded through debt facilities
SECOND POWDER MANUFACTURING SITE

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OUR CATEGORIES
INGREDIENTS
INFANT
NUTRITION
EVERYDAY
DAIRY
ADULT
NUTRITION
Blending + Consumer
Packaging II
Product Development
Wetmix IIMarket Research
RTD Infant Formula
RTD Blended
Dairy Beverage
Diversify Markets - Categories, Customers, Geography
Deliver Higher Value Products
Adapt To A Changing World Demographic
Focus On B2B, But Move Closer To Customers And Consumers
Build Supply Chain Integrity
Strong contributor to strategic goalWeak contributor to strategic goal
DELIVERED IN CONSUMER,
FOODSERVICE AND
INGREDIENTS PACKAGING
Build Sales -
People, Technical
Tailor Product To
Customer Need
New initiatives
Cream opportunities

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201320142012201520162017
160
140
120
100
80
60
40
20
-
CHINA CREAM IMPORT VOLUMES
Cream import volume (kMT)
Note: 2017 value estimated based on 9 month data
EXAMPLE OF EVERYDAY DAIRY OPPORTUNITIES: CREAM INTO CHINA

Martijn Jager
DIRECTOR SALES AND BUSINESS DEVELOPMENT
BUSINESS DEVELOPMENT

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DEVELOPING A CATEGORY STRATEGY
1
WHERE TO PLAY
Understand the category landscape
and identify value worth pursuing
+=
=
+
+
HOW TO WIN
Create and validate hypothesis on
how to enter / grow the category
and create sustainable value
OPPORTUNITIES
Identify the specific
opportunities to pursue
PRIORITIES
Prioritise and develop the
execution plan
KPIs
Identify and track the key
and underlying KPIs that will
define success
CATEGORY PLAN
The category strategy,
execution plan and KPIs
23
4
5
6
C AT EG O R Y
CONSUMER
BRANDS/COMPANIES
REGULATORY & NUTRITION
MARKETS
COMPETITORS
INFLUENCERS
VALUE CHAIN
FOCUS AREAS
VALUE CHAIN MIX
DIFFERENIATION
VALUE PROPOSITIONS
ENABLERS
FINANCIALS
HOW
TO WIN
WHERE
TO PL AY

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TARGET THE RIGHT MARKET OPPORTUNITIES
DELIVER OFFERINGS CUSTOMERS VALUE
STRENGTHEN STRATEGIC CUSTOMER PARTNERSHIPS
PROVIDE INTERNAL DIRECTION AND FOCUS
OPTIMISE OUR BUSINESS
CATEGORY DELIVERS VALUE TO THE BUSINESS

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THE LIFE-STAGE NUTRITION LANDSCAPE
MATERNALI N FA N TTODDLERCHILDADOLESCENT
YOUNG
AD U LT
MIDDLE
AD U LT
AD U LT
YOUNG
SENIOR
MIDDLE
SENIOR
SENIOR
GRAND
SENIOR
E VERYDAY
DAIRY
MATERNAL
NUTRITION
I N FA N T
NUTRITION
GROWING
UP MILKS
FORTIFIED &
FUNCTIONAL
DAIRY DRINKS
SPORTS
NUTRITION
WEIGHT
MANAGEMENT
CLINICIAL
NUTRITION
CURRENT
FOCUS
MILK
BUTTER
CREAM
Disclaimer: Example images only, indicative of categories. No business relationship implied outside of current focus

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OUR FOCUS CATEGORIES
INGREDIENTS
INFANT
NUTRITION
EVERYDAY
DAIRY
ADULT
NUTRITION
Diversify Markets - Categories, Customers, Geography
Deliver Higher Value Products
Adapt To A Changing World Demographic
Focus On B2B, But Move Closer To Customers And Consumers
Build Supply Chain Integrity
Note: Adult Nutrition image is an example product only
Strong contributor to strategic goalWeak contributor to strategic goal

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DRIVEN BY GROWING
PURCHASE POWER &
TIME-PRESSURED LIVES
Whilst retail is declining
THE CHINA FOODSERVICE SECTOR
IS GROWING STRONGLY
Foodservice sales USD billions
2010201120122013201420152016201720182019
$1000
$800
$600
$400
$200
$0
OUTLETS
100,000
80,000
60,000
40,000
20,000
0
-20,000
FoodserviceRetail
NET OUTLET GROWTH
Net Outlet growth (2016 - 2021)

in Australasia, Europe and North America
“Global explosion
in interest, activity,
and spending on
good-quality food
and drink”
Euromonitor
EXAMPLE: THE EVERYDAY DAIRY OPPORTUNITY IN FOODSERVICE
COMMERCIAL
Includes; restaurants, catering,
retail, airlines and cruise ships
NON-COMMERCIAL
Includes; hospitals, rest homes,
prisons, businesses, and education
FOODSERVICE COVERS
OUT-OF-HOME CONSUMPTION
Source: Statista, © Euromonitor International

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EXAMPLE: WHIPPING CREAM IS A HIGH GROWTH OPPORTUNITY
Double digit growth is forecast to continue
- Cream is predominantly used in bakery, and tea and coffee outlets
- Trends towards natural, safe and premium products are driving
conversion from non-dairy to dairy
New Zealand will have a tariff advantage by 2022
- Imports into China from New Zealand will no longer be subjected to
any tariff from 2022, giving a benefit of 15% over most other markets
8070605040302010--10
2014-2017 CAGR
200%
150%
100%
50%
0
IMPORTS OF CREAM INTO CHINA HAVE VERY HIGH GROWTH
kMT
400
300
200
100
-
201220142016201820202022
HISTORIC AND FORECAST CREAM IMPORT VALUES
(2017 Forecast Import volume kMT)
NZ
UK
FRANCE
GERMANY
SPAIN (off the chart)
AUSTRALIA
BELGIUM
ITALY
IRELAND
Actuals (+2017 est) Scenario 1 (10% growth) Scenario 2 (15% growth - most likely) Scenario 3 (20% growth)
Source: Orrani and Synlait estimates

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LEVERAGING SYNLAIT STRENGTHS
- Strong Partnerships
- Leveraging full supply chain
to create value add products
- Strong route to market
SYNLAIT ADDS VALUE FROM FARM TO CONSUMER
DIFFERENTIATED
MILK SUPPLY
RAW MATERIALS
PROCUREMENT
RESEARCH + CATEGORY
DEVELOPMENT
QUALITY TESTING
LABORATORY
CUSTOMERS
MANUFACTURING
EXCELLENCE
REGULATORY
CAPABILITY
CONSUMER
CONSUMER PACKAGING

Roger Schwarzenbach
GM INNOVATION AND TECHNICAL SERVICES
RESEARCH AND DEVELOPMENT

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- Technical team building to 32 highly skilled and experienced
scientists and technologists
- Six managers have average experience of 23 years gained from some
of the biggest global food companies and markets
- Strong innovation partnerships with leading research organisations
within New Zealand
- Investing around $7m in 2017 into research and category development
- Plan to double R+D expenditure over the next two years
- Research and development centre in Palmerston North will continue to
build expertise and capability in food technology
SYNLAIT INNOVATION AND TECHNICAL -
HIGHLY CAPABLE TEAM

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R+D COVERS EVERY STAGE OF THE VALUE CHAIN
- Differentiated ingredients, consumer products
and value propositions
- Regulatory verification and alignment
- Superior functionality and application performance
- Claims and marketing support
- Complaint investigation and resolution
- Science and nutrition substantiation
- Superior quality milk, e.g. through on-farm practices
- Develop analytical methods to prove superiority
- Differentiated premium milks
(e.g. a2™, Grass Fed™, superior protein quality)
- Superior natural nutrition and performance
- Develop cutting-edge processes
• Alternative processes to protect sensitive
nutritional components
• Superior functionality and performance
NEW PROCESS
DEVELOPMENT
DIFFERENTIATED
MILK SUPPLY
ON-FARM
TECHNICAL SUPPORT /
CUSTOMER SUPPORT
NEW PRODUCT
DEVELOPMENT
- Improvement in right first time production
- Higher throughput on existing capital
- Superior quality and performance
MANUFACTURING
EXCELLENCE

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Nutrition and health are
a cornerstone of Synlait
Helps understand what health benefit
a product provides to the consumer.
But we also have broader R+D capability that we are continuing to strengthen
Helps understand the chemical processes
and interactions of dairy components.
Key for understanding how certain
ingredients will behave in our products.
Helps understand how processing affects
products, and help explore new and
advanced processing technologies.
NUTRITION SCIENTIST LOOKS
AT THE EFFECTS OF FOOD
COMPONENTS ON HEALTH
FOOD TECHNOLOGIST /
FOOD ENGINEERS
DAIRY SCIENTIST /
FOOD CHEMISTS
R+D CAPABILITY ACROSS MANY DISCIPLINES

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MASSEY AND FOODPILOT CORE TO
DELIVERING SYNLAIT’S ASPIRATIONS
- Largest and best equipped publically accessible pilot plant
in the Southern Hemisphere
- Massey University offers access to an extensive network of expertise
- Trained chefs, food technologists and scientists
- Extensive lab facilities covering multiple disciplines
- Palmerston North the hub of dairy R+D in New Zealand
(surrounded by CRI’s Ag Research, Plant and Food)
- Synlait facilities include large office and own R+D laboratory

BUSINESS TRANSFORMATION
Chris France
DIRECTOR STRATEGY AND BUSINESS TRANSFORMATION

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SUPPORTING DIVERSIFICATION
- Over the last two years we have established processes, methodology
and tools to support our projects
- Our diversification strategy creates an increasingly complex portfolio
of inter-related projects
- This year we are introducing formal Project Portfolio Management
to create better visibility and improved governance over our projects
and programs
PwC third global survey on current state of project management found that
the adoption of Portfolio Management increased the five key performance
indicators – scope, time, cost, quality and business benefit
VISIBILITY AND
COORDINATION
PIPELINE
FINANCIALS
RESOURCES
RISK

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“... We run our plants close to capacity so
planning is important...”
During FY17 we introduced the Oliver Wight Integrated Business
Planning (IBP) process to better align to strategy and business
operations (supply, demand, product development and strategic
projects) over a three year time horizon, on a monthly basis.
“Data is the key to improving performance”
- During FY16 we introduced the balanced scorecard concept across
the business.
- In FY17 we extended the scorecards deeper into the business and
aligned individual manager targets.
- In FY18 we extend this by introducing profit and loss reporting to
responsibility centres, and by cascading the scorecard measures
into key performance indicators for each employee.
UNLOCKING VALUE

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ENABLING GOOD PRACTICE
We have commenced a significant project to:
- re-engineer our business processes
- reconfigure our information technology
- refresh our systems and data architecture
- remove cost and enable growth
We will invest approximately $10m in this project over the next two years

PEOPLE AND CULTURE
Boyd Williams
DIRECTOR PEOPLE, CULTURE AND PERFORMANCE

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Source: Aeon-Hewitt
KEY DRIVERS OF ENGAGEMENT

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BUILDING AN ENGAGED WORKFORCE AT SYNLAIT
Engagement Improvement Actions include:
LEADERSHIP
- Synlait Leadership Model providing
increased expectations of People Leaders
- Leadership Talent Review
- Increased investment in leadership
training and development (Gallup and SLII)
BRAND
- ESP programme being developed
PERFORMANCE
- Refreshed performance management
process (Perform and Grow)
COMPANY PRACTICES
- Strengthened employee communication
(Team Briefing)
THE BASICS
- Focus on hierarchy of controls for
critical risks
- Embedding “Just” culture to improve
staff engagement in all matters safety

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CLOSING THE GAP BETWEEN THE CURRENT TALENT
AND THE TALENT SYNLAIT WILL EVENTUALLY NEED
The recruitment, development,
promotion, retention of people,
planned and executed in
line with Synlait’s current and
future business goals.
E LT
GM’S
MANAGEMENT TRAINEES
NEW
JOINERS
MIDDLE
MANAGERS
FRONT LINE
LEADERS
LEAVERS
FLOWS OF HIGH POTENTIAL TALENT – BUY VERSUS BUILD
ANNUAL TALENT REVIEW PROCESS
ANNUAL
TALENT
REVIEW
MEETING
DIRECTORS/
GM’S ASSESS
POTENTIAL
CAREER AND
DEVELOPMENT
MEETING
CAREER AND
DEVELOPMENT
MEETING
1/4 REVIEW3/4 REVIEW
2/4 REVIEW
PERFORM AND
GROW END
OF YEAR

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LEADERSHIP COMPETENCY MODEL
Commercial
Acumen
People
Leadership
Technical
Excellence
R
E
S
P
O
N
S
I
B
I
L
I
T
Y

A
N
D

A
C
C
O
U
N
T
A
B
I
L
I
T
Y
Commercial
Acumen
People
Leadership
Technical
Excellence
R
E
S
P
O
N
S
I
B
I
L
I
T
Y

A
N
D

A
C
C
O
U
N
T
A
B
I
L
I
T
Y

MANUFACTURING
Antony Moess
GM MANUFACTURING

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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
120,000 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.

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INVESTOR DAY
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- State-of-the-art equipment. Dryers <6 years old, canning <3 years old
- The RMP (risk management program). Spans on-farm practices, milk
collection, material sourcing and manufacturing processes through to laboratory
testing, warehousing and logistics. All externally audited every three months
- Building design, Red-Line and clothing controls, staff training and
HACCP. Heat treatment, magnets and x-ray. 160 tests and checks across each
run and a further 60 daily GMP checks. Our air filtration is the same standard as
a hospital operating theatre
QUALITY IS DESIGNED INTO OUR FACTORIES

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- Synlait has licensed Proctor and Gamble’s manufacturing
system and is deploying it across all factories as a standard way of
working. Refined over the past 30 years and deployed across more than
200 sites globally – both within P+G and externally
- It contains an interconnected set of daily management processes
that drive reliability and over time, a lower cost per MT
- It aims for both zero waste as well as 100% employee involvement
- Synlait will invest $2.5m over the next two to three years and
expects the returns to be several multiples of this investment
RELIABILITY PACKED INTO EVERY CAN

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MANUFACTURING EXCELLENCE FOCUSSES
ON A FEW KEY METRICS TO DRIVE IMPROVED RELIABILITY
#STOPS PER DAY
MEAN TIME BETWEEN FAILURES
OVERALL EQUIPMENT EFFECTIVENESS

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INVESTOR DAY
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- Improved manufacturing reliability over time enables a lower
level of direct labour, lower inventory holding and the ability to focus
on end to end lead time
- Short-term focus is on planned and unplanned downtime
in order to meet demand. In conjunction with capital expansion of
Canning and Wetmix capacities
- Longer-term focus is on creating a culture that constantly
drives towards zero waste, a fully engaged team and end to end
lead-time reduction with world-class facilities and quality standards
MANUFACTURING RELIABILITY ENABLES
END TO END SUPPLY CHAIN IMPROVEMENTS

John Penno
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
Nigel Greenwood
CHIEF FINANCIAL OFFICER
CLOSING REMARKS

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INVESTOR DAY
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- Synlait will remain a growth company on multiple fronts
- Organic growth in the categories it has chosen to compete
- Geographical growth as Synlait diversifies
- New category growth as Synlait diversifies
- Synlait’s competitive advantage lies in its full service offering to customers
- Synlait has a track record of moving up the value chain from dairy commodity powders, to infant formula – looking to replicate
this approach in new categories
- Balance sheet and bench strength to launch next wave of growth
- Continue to see significant demand growth across multiple categories / products
CLOSING REMARKS

LUNCH
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INVESTOR DAY
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SITE TOUR
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INVESTOR DAY
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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