Capital Notes Interest Rate Reset Notice

Fonterra Co-operative Group Limited
Private Bag 92032, Auckland, New Zealand
109 Fanshawe Street, Auckland, New Zealand
t +64 9 374 9337, f +64 9 379 8220
www.fonterra.com



10 July 2018

Dear Noteholder

CAPITAL NOTES INTEREST RATE RESET NOTICE

In accordance with the terms and conditions of Fonterra Co-operative Group Ltd's capital notes, the
interest rate payable on the notes has been reset from 4.15% per annum to 4.01% per annum.

Under the terms on which the perpetual capital notes were issued, the interest rate is reset on 10 July
each year to the current Base Rate (being the one year Treasury Bank Bill rate) plus a margin based
on the capital notes’ credit rating. The new Base Rate is 1.81% and the margin remains at 2.20%. The
new interest rate will apply until 10 July 2019, unless there is a change in the credit rating of the capital
notes in the interim.

The next quarterly interest payment on the notes is due to be made on 10 October 2018 to those
holders registered on 28 September 2018.

As at the date of this notice there is $35,083,679 principal amount of capital notes on issue to holders
other than Fonterra Co-operative Group Limited. All notes rank equally.

If you have any questions about this notice, please contact Link Market Services, PO Box 91976,
Auckland, New Zealand, phone +64 (9) 375 5998, fax +64 (9) 375 5990, or e-mail
enquiries@linkmarketservices.co.nz


Yours faithfully

Simon Till
Director Capital Markets