Supplementary information for announcement

STRATEGIC
UPDATE
20 DECEMBER 2017

Synlait Milk Limited 2017
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INVESTOR DAY
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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

Synlait Milk Limited 2017
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INVESTOR DAY
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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

Synlait Milk Limited 2017
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INVESTOR DAY
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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

Synlait Milk Limited 2017
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INVESTOR DAY
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- Significant success in transitioning dairy
commodity products into higher value
infant formula (Gross Profit $781/MT in FY18
from $231/MT in FY09)
- Our strategy is to continue to grow our
core business and diversify into new products,
markets and customers
- Our research shows that fresh dairy products
are high returning products – not as
profitable as infant formula but significantly
better than ingredient products
- The New Zealand domestic fresh milk
market is ripe for innovation
- We have negotiated a contract with
Foodstuffs South Island to exclusively supply
their private label milk, as a first step in this
market
- This ten year contract, together with an initial
volume of export long shelf life cream, will
underpin the development of an advanced
fresh dairy packaging facility at Dunsandel.
This facility will have capacity for us to produce
significant volumes of other liquid dairy products
(RTD infant formula, RTD life stage products)
- As our canned infant formula volumes grow,
we have surplus milk which we will direct
into the liquid facility
STRATEGIC DIVERSIFICATION

Synlait Milk Limited 2017
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INVESTOR DAY
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- Exclusive supply of private label fresh milk and cream (Value and Pams) from early 2019
- Distributed in retail channels (PAK’n SAVE, New World, Four Square and On The Spot)
- Ten year agreement with demand to underpin capital investment
FOODSTUFFS SOUTH ISLAND CONTRACT

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INVESTOR DAY
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CAPITAL INVESTMENT
- $125m modern and sophisticated advanced liquid dairy packaging facility
to be constructed at our Dunsandel site
- Investment to be funded through debt facilities
- Annual capacity of 110 million litres of which one third will be initially utilised for
Foodstuffs South Island products
- Synlait’s current milk supply adequate to meet the volumes of the contract
- Capable of manufacturing a range of traditional and new products
- New product development to be supported from our new R+D centre in Palmerston North
- Long life cream export category also presents attractive opportunities which
we intend to pursue

Synlait Milk Limited 2017
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INVESTOR DAY
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LIQUID MILKS LEVERAGE THE SAME INTEGRATED VALUE CHAIN
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
- Advanced liquid dairy packaging facility

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