Fonterra Launches Bond Offer

6 NOVEMBER 2018
FONTERRA LAUNCHES BOND OFFER
Fonterra Co-operative Group Limited confirmed today that it is offering up to NZ$100,000,000
(with the ability to accept up to NZ$50,000,000 in oversubscriptions at Fonterra’s discretion) of
senior fixed rate bonds to institutional investors and to New Zealand retail investors.

The offer opens today and will be made pursuant to the Financial Markets Conduct Act 2013
as an offer of debt securities of the same class as existing quoted debt securities. The notice
required by the Financial Markets Conduct Regulations 2014 has been provided to NZX and is
attached. The bonds are expected to be quoted on the NZX Debt Market.

Full details of the bond offer are contained in the Terms Sheet which has been prepared for
the offer and is attached. A copy of the presentation that Fonterra will be giving to institutional
investors in connection with the offer is also attached.

The offer will open with an indicative margin of 1.25 to 1.35 per cent per annum. The bonds
are expected to mature on 14 November 2025. An announcement of the actual margin (which
may be above or below the abovementioned indicative margin range) and the interest rate on
the bonds will be made following the bookbuild process, expected to be on 8 November 2018.
The Terms Sheet will be updated to include the interest rate and will be released with the
announcement.

The bonds are expected to be quoted on the NZX Debt Market and are expected to be
assigned a long term credit rating of A- by S&P Global and A by Fitch.

There is no public pool for the offer, with 100 per cent of the bonds reserved for institutional
investors, clients of the joint lead managers and primary market participants (e.g. broking firms
accredited by NZX to participate in NZX markets). The offer will close on 8 November 2018
following the bookbuild process. Interested investors should contact the joint lead managers,
their broker or their financial advisor for more details.

-end-

Simon Till
Director Capital Markets, Fonterra
Phone: (09) 374 9344

ANZ CBA
0800 269 476 0800 272 633

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Page 1




6 November 2018
Notice pursuant to clause 20(1)(a) of schedule 8 of the Financial Markets Conduct
Regulations 2014
Fonterra Co-operative Group Limited (FCG) gives notice under clause 20(1)(a) of schedule 8 of the
Financial Markets Conduct Regulations 2014 (Regulations) that it proposes to make an offer of fixed
rate bonds (Bonds) in reliance upon the exclusion in clause 19 of schedule 1 of the Financial
Markets Conduct Act 2013 (FMCA).

The main terms of the offer of the Bonds are set out in the attached terms sheet. Except for the
interest rate and maturity date, the Bonds will have identical rights, privileges, limitations and
conditions as FCG’s:
(a) 4.33% NZ$350,000,000 fixed rate bonds maturing on 20 October 2021 which are currently
quoted on the NZX Debt Market under the ticker code FCG030; and
(b) 4.42% NZ$150,000,000 fixed rate bonds maturing on 7 March 2023 which are currently
quoted on the NZX Debt Market under the ticker code FCG040,
(together, Quoted Bonds), and therefore are of the same class as the Quoted Bonds for the
purposes of the FMCA and the Regulations. The Quoted Bonds have been continuously quoted on
the NZX Debt Market over the preceding 3 months.

As at the date of this notice, FCG is in compliance with:
(a) the continuous disclosure obligations that apply to it in relation to the Quoted Bonds; and
(b) its financial reporting obligations (as defined under the Regulations).
As at the date of this notice, there is no excluded information required to be disclosed for the
purposes of the Regulations.

As at the date of this notice, there is no information that would be required to be disclosed under a
continuous disclosure obligation or which would be excluded information required to be disclosed for
the purposes of the Regulations if the Quoted Bonds had had the same redemption date or interest
rate as the new bonds being offered.

Ends

For further information please contact:

Simon Till
Director Capital Markets, Fonterra
Phone: (09) 374 9344
Fonterra Co-operative Group Limited
Private Bag 92032, Auckland, 1142, New Zealand
Fonterra Centre, 109 Fanshawe Street, Auckland 1010
t +64 9 374 9000, f +64 9 374 9001
www.fonterra.com

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Terms Sheet
Fixed Rate Bonds
Maturing 14 November 2025

IssuerArranger
Fonterra Co-operative Group Limited
109 Fanshawe Street
Auckland 1010
ANZ Bank New Zealand Limited
Level 25, 23-29 Albert Street
Auckland 1010
Computershare Investor Services Limited
Postal address:
Private Bag 92119
Victoria Street West
Auckland 1142
Physical address:
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
Joint Lead Managers
Registrar
ANZ Bank New Zealand Limited
Level 25, 23-29 Albert Street
Auckland 1010
Commonwealth Bank of Australia
(acting through its New Zealand Branch)
ASB North Wharf
12 Jellicoe Street
Auckland, 1010
Address details
Important notice
The offer of debt securities (Offer) by Fonterra Co-operative Group Limited (Fonterra) is made in reliance upon the exclusion
in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA).
The offer contained in this Terms Sheet is an offer of bonds that have identical rights, privileges, limitations and conditions
(except for the interest rate and maturity date) as Fonterra’s:
(a) 4.33% NZ$350,000,000 fixed rate bonds maturing on 20 October 2021 which are currently quoted on the NZX Debt
Market under the ticker code FCG030; and
(b) 4.42% NZ$150,000,000 fixed rate bonds maturing on 7 March 2023 which are currently quoted on the NZX Debt Market
under the ticker code FCG040,
(together, Quoted Bonds). The Bonds (defined below) are of the same class as the Quoted Bonds for the purposes of the
FMCA and the Financial Markets Conduct Regulations 2014 (FMC Regulations).
Fonterra is subject to a disclosure obligation that requires it to notify certain material information to NZX Limited (NZX) for
the purpose of that information being made available to participants in the market and that information can be found by
visiting www.nzx.com/companies/FCG.
Investors should look to the market price of the Quoted Bonds referred to above to find out how the market assesses the
returns and risk premium for those bonds.
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Fonterra Co-operative Group Limited - Terms Sheet

6 November 2018
This Terms Sheet sets out the key terms of the offer by Fonterra of up to NZ$100,000,000 (with the ability to accept
NZ$50,000,000 oversubscriptions at Fonterra’s discretion) of fixed rate bonds maturing on 14 November 2025 (Bonds)
under its master trust deed dated 18 November 2002 (as amended from time to time) as modified and supplemented by the
supplemental trust deed dated Monday 5 November 2018 entered into between Fonterra and The New Zealand Guardian
Trust Company Limited (Trustee) (together, Trust Documents).
Fixed Rate Bonds
Terms Sheet
IssuerFonterra Co-operative Group Limited
Description of the
Bonds
The Bonds constitute unsecured, unsubordinated, fixed rate debt obligations of Fonterra. The Bonds
will rank equally and without any preference among themselves and equally with all other unsecured
and unsubordinated indebtedness of Fonterra, except indebtedness preferred by law.
Use of proceedsThe net proceeds from the issue of the Bonds will be used for general business purposes.
Ratings
The ratings referred to in this Terms Sheet are not a recommendation to buy, sell or hold the Bonds,
and each rating may be subject to revision or withdrawal at any time by S&P Global or Fitch, as the
case may be. Any downward revision or withdrawal of a rating may have an adverse effect on the
market price of the Bonds. Neither S&P Global nor Fitch has been involved in the preparation of this
Terms Sheet.
Opening DateTuesday, 6 November 2018, following the release on the NZX of the notice in connection with the
Offer required by the FMC Regulations.
Closing Date2.00pm on Thursday, 8 November 2018
Rate Set DateThursday, 8 November 2018
Issue Date and
Allotment Date
Wednesday, 14 November 2018
Maturity DateFriday, 14 November 2025
Issue AmountUp to NZ$100,000,000 (with the ability to accept up to NZ$50,000,000 at Fonterra’s discretion)
Interest RateThe aggregate of the Base Rate plus the Margin on the Rate Set Date.
The Interest Rate will be announced by Fonterra via NZX on or shortly after the Rate Set Date.
The Interest Rate will not change after the Rate Set Date.
Indicative Margin1.25 to 1.35 per cent per annum.
MarginThe Margin will be determined by Fonterra in consultation with the Arranger following a bookbuild
process. The actual Margin will be announced by Fonterra via NZX on or shortly after the Rate
Set Date.
Issuer Credit RatingExpected Issue Rating
S&P GlobalA- (stable)A -
FitchA (stable)A
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Fonterra Co-operative Group Limited - Terms Sheet

Base RateThe semi-annual mid-market rate for an interest rate swap of a term matching the period from the
Issue Date to the Maturity Date as calculated by the Arranger according to market convention with
reference to the Bloomberg page ‘ICNZ4’, rounded to 2 decimal places, if necessary, with 0.005
being rounded up.
Principal Amount
and Issue Price
$1.00 per Bond.
Interest Payment
Dates
14 May and 14 November of each year up to and including the Maturity Date, with the first Interest
Payment Date being 14 May 2019.
Interest will be payable semi-annually in equal amounts in arrear
Record DateThe date 10 calendar days before an Interest Payment Date or, if not a Business Day, the immediately
preceding Business Day.
Business DayA day (other than a Saturday or Sunday) on which registered banks are generally open for business
in Auckland and Wellington.
If an Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the due
date for any payment to be made on that date will be the next following Business Day.
Settlement Price
Formula
RBNZ Bond Basis.
Minimum
subscription
amount and
minimum holding
$5,000 and multiples of $1,000 thereafter.
ISINNZFCGDG005C4
New Zealand
Registrar
Computershare Investor Services Limited
NZX Debt Market
Ticker Code
FCG050
Expected date of
initial quotation
and trading on the
NZX Debt Market
Thursday, 15 November 2018
QuotationApplication has been made to NZX for permission to quote the Bonds on the NZX Debt Market.
Early repaymentUpon the occurrence of any of the events of default (as set out in the Trust Documents) the Trustee
may, and immediately upon being directed to do so by an extraordinary resolution of bondholders
must, declare the Bonds to be immediately due and payable.
If the Bonds are declared due and payable prior to their Maturity Date, interest will be payable at the
Interest Rate from the most recent Interest Payment Date to and excluding the date of repayment.
Further issuesFonterra may from time to time without the consent of the bondholders issue further notes so as
to form a single class with the Bonds. Fonterra may also from time to time without the consent
of bondholders issue notes having different terms to those applicable to the Bonds. There is no
restriction on the amount of debt which Fonterra may issue or guarantee.
Repo-eligibilityFonterra intends to apply to the Reserve Bank of New Zealand for the Bonds to be included as eligible
securities for domestic market operations.
Governing lawNew Zealand
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Fonterra Co-operative Group Limited - Terms Sheet

NZX waiversNZX has approved the inclusion of transfer restrictions in the Trust Documents permitting Fonterra
to refuse a transfer of the Bonds if the transfer is not in multiples of $1,000 and/or results in the
transferor or transferee holding an aggregate principal amount of less than the minimum holding of
$5,000 (other than zero).
NZX has granted Fonterra a waiver from NZX Listing Rule 5.2.3 (as modified by NZX’s ruling on
Rule 5.2.3 issued on 29 September 2015) to enable Fonterra to apply for quotation on the NZX Debt
Market even though the Bonds may not initially be held by at least 100 members of the public holding
at least 25% of the Bonds issued. The waiver has been granted for a period of six months from the
quotation date of the Bonds. The effect of the waiver from NZX Listing Rule 5.2.3 is that initially the
Bonds may not be widely held and there may be reduced liquidity in the Bonds. To the extent that
there is a material reduction in the spread of the Bonds, Fonterra will notify NZX accordingly.
Who may applyAll of the Bonds are reserved for clients of the Joint Lead Managers, Primary Market Participants
(e.g. broking firms accredited by NZX to participate in NZX markets) and other persons invited to
participate in the bookbuild process for the Bonds.
There will be no public pool for the offer.
Retail investors should contact any Primary Market Participant for details as to how they may
acquire the Bonds. You can find a Primary Market Participant by visiting www.nzx.com/investing/
find_a_participant.
Applications
Fonterra reserves the right to refuse all or any part of any application for the Bonds without giving
any reason. Fonterra in consultation with the Arranger reserves the right to scale at its discretion.
How to applyThere is no public pool for the offer, with 100% of the Bonds reserved for clients of the Joint Lead
Managers, Primary Market Participants and other persons invited to participate in the bookbuild
process. Investors wishing to purchase the Bonds should contact the Joint Lead Managers, their
broker or financial advisor.
Fonterra, in its sole discretion, will determine allocations. Fonterra reserves the right to refuse to
make any allotment (or part thereof) without giving any reason.
Each investor’s broker will be able to advise them as to what arrangements will need to be put in
place for the investor to trade the Bonds including obtaining a common shareholder number (CSN),
an authorisation code (FIN) and opening an account with a Primary Market Participant as well as the
costs and timeframes for putting such arrangements in place.
Selling restrictionsIt is a term of the offer of the Bonds that the selling restrictions included in this Terms Sheet apply.
Joint Lead
Managers
ANZ Bank New Zealand Limited and Commonwealth Bank of Australia (acting through its
New Zealand Branch)
Arranger and
Organising
Participant
ANZ Bank New Zealand Limited
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Fonterra Co-operative Group Limited - Terms Sheet

Fonterra, in conjunction with the Arranger, may change the dates or times set out in this Terms Sheet. Fonterra has the right
in its absolute discretion and without notice to close the offer early, to extend the Closing Date, or to choose not to proceed
with the offer. If the Closing Date is changed, other dates (such as the Issue Date, the Maturity Dates and the Interest Payment
Dates) may be changed accordingly.
Any internet site addresses provided in this Terms Sheet are for reference only and, except as expressly stated otherwise, the
content of any such internet site is not incorporated by reference into, and does not form part of, this Terms Sheet.
Copies of the Trust Documents will be made available by Fonterra for inspection during usual business hours by any bondholder
at Fonterra’s registered office listed above (or such office as Fonterra may notify the bondholders from time to time).
Investors are personally responsible for ensuring compliance with all relevant laws and regulations applicable to them
(including any required registration). Investors should seek qualified, independent financial and taxation advice before
deciding to invest.
For further information regarding Fonterra, visit www.nzx.com/companies/FCG.
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Fonterra Co-operative Group Limited - Terms Sheet

Selling restrictions
The Bonds may only be offered for sale or sold in New Zealand in conformity with all applicable laws and regulations in
New  Zealand. No Bonds may be offered for sale or sold in any other country or jurisdiction except in conformity with all
applicable laws and regulations of that country or jurisdiction and the selling restrictions contained in this Terms Sheet. This
Terms Sheet may not be published, delivered or distributed in or from any country or jurisdiction except under circumstances
which will result in compliance with all applicable laws and regulations in that country or jurisdiction and the selling restrictions
contained in this Terms Sheet.
Without limiting the generality of the above, the following selling restrictions apply in respect of each relevant jurisdiction:
United States of America
The Bonds have not been and will not be registered under the Securities Act of 1933, as amended (Securities Act) and may
not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation
S under the Securities Act (Regulation S)) except in accordance with Regulation S or pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act.
None of Fonterra, the Joint Lead Managers, nor any person acting on its or their behalf has engaged or will engage in any
directed selling efforts in relation to the Bonds, and each of Fonterra and the Joint Lead Managers have complied and will
comply with the offering restrictions in Regulation S.
The Bonds will not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of
their distribution at any time, or (ii) otherwise until 40 days after the completion of the distribution of all Bonds of the Tranche
of which such Bonds are part, as determined and certified by the Arranger or the Joint Lead Managers except in accordance
with Rule 903 of Regulation S. Any Bonds sold to any distributor, dealer or person receiving a selling concession, fee or other
remuneration during the distribution compliance period require a confirmation or notice to the purchaser at or prior to the
confirmation of the sale to substantially the following effect:
“The Bonds covered hereby have not been registered under the United States Securities Act of 1933, as amended (the
Securities Act) or with any securities regulatory authority of any state or other jurisdiction of the United States and
may not be offered or sold within the United States, or to or for the account or benefit of, U.S. persons (as defined in
Regulation S under the Securities Act) (i) as part of their distribution at any time or (ii) otherwise until 40 days after
the later of the commencement of the offering of the Bonds and the closing date except in either case pursuant to a
valid exemption from registration in accordance with Regulation S under the Securities Act. Terms used above have
the meaning given to them by Regulation S.”
Until 40 days after the completion of the distribution of all Bonds or the Tranche of which those Bonds are a part, an offer
or sale of the Bonds within the United States by the Joint Lead Managers or any dealer or other distributor (whether or not
participating in the offering) may violate the registration requirements of the Securities Act if such offer or sale is made
otherwise than in accordance with Regulation S.
Relevant Member States of the European Economic Area
In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a
Relevant Member State), with effect from and including the date on which the Prospectus Directive is implemented in that
Relevant Member State (the Relevant Implementation Date) no Bonds have been offered and no Bonds will be offered that
are the subject of the offering contemplated by this Terms Sheet in relation thereto to the public in that Relevant Member
State except that an offer of Bonds to the public in the Relevant Member State may be made with effect from the Relevant
Implementation Date:
(a) to any legal entity which is a qualified investor as defined in the Prospectus Directive;
(b) to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Directive) subject
to obtaining the prior consent of the Joint Lead Managers nominated by Fonterra for any such offer; or
(c) in any other circumstances falling within Article 3(2) of the Prospectus Directive,
provided that no such offer of the Bonds shall require Fonterra or the Joint Lead Managers to publish a prospectus pursuant
to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.
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Fonterra Co-operative Group Limited - Terms Sheet

For the purposes of this provision, the expression an offer of the Bonds to the public in relation to any Bonds in any Relevant
Member State means the communication in any form and by any means of sufficient information on the terms of the offer
and the Bonds to be offered so as to enable an investor to decide to purchase or subscribe for the Bonds, as the same may be
varied in that Relevant Member State by any measure implementing the Prospectus Directive in that Relevant Member State,
and the expression Prospectus Directive means Directive 2003/71/EC (as amended, including by Directive 2010/73/EU) and
includes any relevant implementing measure in the Relevant Member State.
United Kingdom
No communication, invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial
Services and Markets Act 2000 (FSMA)) has been or may be made or caused to be made or will be made in connection with
the issue or sale of the Bonds in circumstances in which section 21(1) of the FSMA applies to Fonterra.
All applicable provisions of the FSMA with respect to anything done in relation to the Bonds in, from or otherwise involving
the United Kingdom must be complied with.
Japan
The Bonds have not been and will not be registered in Japan pursuant to Article 4, Paragraph 1 of the Financial Instruments
and Exchange Act of Japan (Act No. 25 of 1948, as amended, the FIEA) in reliance upon the exemption from the registration
requirements since the offering constitutes the small number private placement as provided for in “ha” of Article 2, Paragraph
3, Item 2 of the FIEA. A Japanese Person who transfers the Bonds shall not transfer or resell the Bonds except where the
transferor transfers or resells all the Bonds en bloc to one transferee. For the purposes of this paragraph, Japanese Person shall
mean any person resident in Japan, including any corporation or other entity organised under the laws of Japan.
France
The Bonds have not been offered or sold, and will not be offered or sold, directly or indirectly, to the public in France, and
this Terms Sheet or any other offering material relating to the Bonds has not been, and will not be, distributed to the public
in France. Any such offers, sales and distributions in France will only be to (a) providers of investment services relating to
portfolio management for the account of third parties, and/or (b) qualified investors (investisseurs qualifiés), all as defined in,
and in accordance with, articles L.411-1, L.411-2 and D.411-1 of the French Code monétaire et financier.
Singapore
Singapore Securities and Futures Act Product Classification – Solely for the purposes of its obligations pursuant to
sections 309B(1)(a) and 309B(1)(c) of the Securities and Futures Act (Chapter 289 of Singapore) (the SFA), Fonterra has
determined, and hereby notifies all relevant persons (as defined in Section 309A of the SFA) that the Bonds are “prescribed
capital markets products” (as defined in the Securities and Futures (Capital Markets Products) Regulations 2018) and
Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS
Notice FAA-N16: Notice on Recommendations on Investment Products).
This Terms Sheet has not been and will not be registered as a prospectus with the Monetary Authority of Singapore. Accordingly,
this Terms Sheet and any other document or material in connection with the offer or sale, or invitation for subscription or
purchase, of the Bonds may not be circulated or distributed, nor may the Bonds be offered or sold, or be made the subject
of an invitation for subscription or purchase, whether directly or indirectly, to any person in Singapore other than (a) to an
institutional investor (as defined in Section 4A of the SFA) pursuant to Section 274 of the SFA, (b) to a relevant person (as
defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the
SFA, and in accordance with the conditions specified in Section 275 of the SFA or (c) otherwise pursuant to, and in accordance
with the conditions of, any other applicable provision of the SFA.
Where the Bonds are subscribed or purchased under Section 275 of the SFA by a relevant person which is:
(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to
hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited
investor; or
(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary
of the trust is an individual who is an accredited investor,
securities (as defined in the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that
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Fonterra Co-operative Group Limited - Terms Sheet

trust shall not be transferred within six months after that corporation or that trust has acquired the Bonds pursuant to an offer
made under Section 275 of the SFA except:
(1) to an institutional investor or to a relevant person defined in Section 275(2) of the SFA, or to any person arising from an
offer referred to in Section 275(1A) or Section 276(4)(i)(B) of the SFA;
(2) where no consideration is or will be given for the transfer;
(3) where the transfer is by operation of law; or
(4) as specified in Section 276(7) of the SFA.
Hong Kong
No Bonds have been offered or sold or will be or may be offered or sold in Hong Kong, by means of any document other than
(a) to professional investors as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the SFO) and any
rules made under the SFO; or (b) in other circumstances which do not result in the document being a Prospectus as defined
in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong (the C(WUMP)O) or which
do not constitute an offer to the public within the meaning of the C(WUMP)O.
No advertisement, invitation or document relating to the Bonds may be issued or in the possession of any person or will be
issued or be in the possession of any person in each case for the purpose of issue, whether in Hong Kong or elsewhere, which
is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do
so under the securities laws of Hong Kong) other than with respect to the Bonds which are or are intended to be disposed of
only to persons outside Hong Kong or only to professional investors as defined in the SFO and any rules made under the SFO.
The People’s Republic of China
The Bonds may not be offered or sold directly or indirectly within the People’s Republic of China (for such purposes, not
including Hong Kong and Macau Special Administrative Regions or Taiwan) (PRC). This Terms Sheet or any information
contained or incorporated by reference herein does not constitute an offer to sell or the solicitation of an offer to buy any
securities in the PRC. This Terms Sheet, any information contained herein or the Bonds have not been, and will not be,
submitted to, approved by, verified by or registered with any relevant governmental authorities in the PRC and thus may not
be supplied to the public in the PRC or used in connection with any offer for the subscription or sale of the Bonds in the PRC.
The Bonds may only be invested in by PRC investors that are authorised to engage in the investment in the Bonds of the
type being offered or sold. Investors are responsible for informing themselves about and observing all legal and regulatory
restrictions, obtaining all relevant governmental approvals, verifications, licences or registrations (if any) from all relevant
PRC governmental authorities, including, but not limited to, the State Administration of Foreign Exchange, the People’s Bank
of China, the China Securities Regulatory Commission, the China Banking and Insurance Regulatory Commission and/or other
relevant regulatory bodies, and complying with all relevant PRC regulations, including, but not limited to, any relevant foreign
exchange regulations and/or overseas investment regulations.
The Netherlands
No Bonds have been or will be offered in the Netherlands other than to persons or entities which are qualified investors
(gekwalificeerde beleggers) as defined in article 1:1 of the Dutch Financial Supervision Act (Wet op het financieel toezicht).
The Joint Lead Managers have represented and agreed with the Issuer that they have not offered or sold and will not offer or
sell any of the Bonds in The Netherlands other than through one or more investment firms acting as principals and having the
Dutch regulatory capacity to make offers or sales of financial instruments in The Netherlands.
Australia
No prospectus or other disclosure document (as defined in the Corporations Act 2001 of Australia (Corporations Act)) in
relation to the Bonds has been, or will be, lodged with, or registered by, the Australian Securities and Investments Commission
(ASIC) or any other regulatory authority in Australia. No person may:
(a) make or invite (directly or indirectly) an offer of the Bonds for issue, sale or purchase in, to or from Australia (including an
offer or invitation which is received by a person in Australia); and
(b) distribute or publish, any Terms Sheet, information memorandum, prospectus or any other offering material or
advertisement relating to the Bonds in Australia,
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Fonterra Co-operative Group Limited - Terms Sheet

unless:
(i) the aggregate consideration payable by each offeree or invitee is at least A$500,000 (or its equivalent in an alternative
currency and, in either case, disregarding moneys lent by the offeror or its associates) or the offer or invitation
otherwise does not require disclosure to investors in accordance with Part 6D.2 or Part 7.9 of the Corporations Act;
(ii) the offer or invitation is not made to a person who is a “retail client” within the meaning of section 761G of the
Corporations Act;
(iii) such action complies with all applicable laws, regulations and directives; and
(iv) such action does not require any document to be lodged with ASIC or any other regulatory authority in Australia.
By applying for the Bonds under this Terms Sheet, each person to whom the Bonds are issued (an Investor):
(a) will be deemed by the Issuer and the Joint Lead Managers to have acknowledged that if any Investor on-sells the Bonds
within 12 months from their issue, the Investor will be required to lodge a prospectus or other disclosure document (as
defined in the Corporations Act) with ASIC unless either:
(i) that sale is to an investor within one of the categories set out in sections 708(8) or 708(11) of the Corporations
Act to whom it is lawful to offer the Bonds in Australia without a prospectus or other disclosure document lodged
with ASIC; or
(ii) the sale offer is received outside Australia; and
(b) will be deemed by the Issuer and the Joint Lead Managers to have undertaken not to sell those Bonds in any circumstances
other than those described in paragraphs (a)(i) and (a)(ii) above for 12 months after the date of issue of such Bonds.
This Terms Sheet is not, and under no circumstances is to be construed as, an advertisement or public offering of any Bonds
in Australia.
Switzerland
The Bonds shall not be publicly offered, sold, advertised, distributed or redistributed, directly or indirectly, in or from
Switzerland, and neither this Terms Sheet nor any other solicitation for investments in the Bonds may be communicated,
distributed or otherwise made available in Switzerland in any way that could constitute a public offering within the meaning of
Articles 652a and 1156 of the Swiss Code of Obligations (CO) or of Article 3 of the Swiss Federal Act on Collective Investment
Schemes (CISA) unless the legal and regulatory conditions imposed on a public offering under the CO or CISA are satisfied.
This Terms Sheet does not constitute a public offering within the meaning of Articles 652a, respectively 1156, of the CO and
of Article 5 of the CISA and may not comply with the information standards required thereunder, and in particular with the
guidelines on informing investors about structured products as published in September 2014 by the Swiss Bankers Association,
as applicable.
The Bonds do not constitute collective investments within the meaning of the CISA. Accordingly, holders of the Bonds do not
benefit from protection under the CISA or from the supervision of the Swiss Financial Market Supervisory Authority. Investors
are exposed to the default risk of the Issuer.
Indemnity
By its subscription for or purchase of the Bonds, each bondholder agrees to indemnify Fonterra, the Arranger, the Joint Lead
Managers and the Trustee and each of their respective directors, officers and employees for any loss, cost, liability or expense
sustained or incurred by Fonterra, the Arranger, the Joint Lead Managers or the Trustee, as the case may be, as a result of the
breach by that bondholder of the selling restrictions set out above.
9
Fonterra Co-operative Group Limited - Terms Sheet

---

FONTERRA BOND
OFFER
Unsecured, unsubordinated, fixedrate bonds
November 2018

Page 2
© Fonterra Co-operative Group
Disclaimer
This document does not constitute a recommendation by the Issuer, ANZ Bank New Zealand Limited (the “Arranger and Organising Participant") or Commonwealth Bank of Australia (acting through its New
Zealand Branch) (together, the “Joint Lead Managers”), The New Zealand Guardian Trust Company Limited (the Trustee) nor any of their respective directors, officers, employees or agents to subscribe for, or
purchase, any of the Bonds. The Issuer, the Arranger and Organising Participant, the Joint Lead Managers and the Trustee, andtheir respective directors, officers, employees and agents accept no liability
whatsoever for any loss arising from this document or its contents or otherwise arising in connection with the offer of Bondsorany person's investment in the Bonds.
This presentation is for preliminary information purposes only and is not an offer to sell or the solicitation of an offer topurchase or subscribe for the Bonds and no part of it shall form the basis of or be relied upon in
connection with any contract or commitment whatsoever. The information in this document is given in good faith and has been obtained from sources believed to be reliable and accurate at the date of preparation,
but its accuracy, correctness and completeness cannot be guaranteed. All of the data provided in this document is derived from publicly available information in relation to the Issuer (including the annual report of
the Issuer for its financial year ended 31 July 2018) unless otherwise indicated.
This presentation may contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy, of Fonterra. Fonterra gives no assurance that the
assumptions upon which Fonterra based its forward looking statements on will be correct, or that its business and operations will not be affected in any substantial manner by other factors not currently foreseeable
by Fonterra or beyond its control. Accordingly, Fonterra can make no assurance that the forward looking statements will be realised.
Any internet site addresses provided in this presentation are for reference only and, except as expressly stated otherwise, the content of any such internet site is not incorporated by reference into, and does not
form part of, this presentation.
A Terms Sheet dated 06 November 2018has been prepared in respect of the offer of the Bonds. The Terms Sheet is an important document and should be read carefully. Investors should not purchase the Bonds
until they have read the Terms Sheet. Investors should consider the risks that are associated with an investment in the Bonds, particularly with regard to their personal circumstances (including financial and tax
issues).
The selling restrictions set out in the schedule to the Terms Sheet apply to the Bonds.
This presentation is dated November 2018.
Fonterra Co-operative Group Limited (Fonterra or Issuer) is offering up to $100,000,000 fixed rate bonds (with the ability to accept $50,000,0000 oversubscriptions at Fonterra’s discretion) due 14 November 2025
(Bonds) in reliance upon the exclusion in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA).
The Bonds being offered have identical rights, privileges, limitations and conditions (except for the interest rate and maturityrate) as Fonterra’s:
(a) 4.33% NZ$350,000,000 fixed rate bonds maturing on 20 October 2021 which are currently quoted on the NZX Debt Market underthe ticker code FCG030; and
(b) 4.42% NZ$150,000,000 fixed rate bonds maturing on 7 March 2023 which are currently quoted on the NZX Debt Market under the ticker code FCG040,
(together, Quoted Bonds).
The Bonds are of the same class as the Quoted Bonds for the purposes of the FMCA and the Financial Markets Conduct Regulations 2014.
Fonterra is subject to a disclosure obligation that requires it to notify certain material information to NZX Limited (NZX) for the purpose of that information being made available to participants in the market and that
information can be found from www.nzx.com/companies/FCG.
Investors should look to the market price of the Quoted Bonds referred to above to find out how the market assesses the returns and risk premium for those bonds.
Application has been made to NZX for permission to quote the Bonds on the NZX Debt Market. However, the Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in
this document.
Important information

Page 3
© Fonterra Co-operative Group
Agenda
I.Key Terms of the Offer
II.Fonterra Overview
III.Unique Features of the Co-operative
IV.Financial Update –2018 Annual Results
•Glossary

Page 4
© Fonterra Co-operative Group
Descriptionof BondsSenior unsecured fixed rate bonds. The offer is made in reliance upon the exclusion in clause 19 of
schedule 1 of the Financial Markets Conduct Act 2013
Issue sizeNZ$100,000,000 with the ability to accept $50,000,000 oversubscriptions at Fonterra’s discretion
Tenor7 Years
Interest RateSet following bookbuild on 08 November 2018 and announced shortly thereafter by Fonterra via NZX
Indicative Margin1.25% -1.35% per annum
Interest PaymentsSemi-annually in arrear, in equal payments
Application Amounts$5,000 and multiples of $1,000 thereafter
Opening DateTuesday 06 November 2018
Closing Date2.00pm on Thursday 08 November 2018
BookbuildBids to be submitted to the Arranger by 2.00pm on Thursday 08 November 2018
Issue DateWednesday 14 November 2018
Maturity DateFriday 14 November 2025
ListingExpected ticker code FCG050on the NZX Debt Market
Issuer Credit Rating
1
A-(stable) by S&P Global & A (stable) by Fitch
1.The ratings referred to in this presentation are not a recommendation to buy, sell or hold the Bonds, and each rating may be subject to revision or withdrawal at any time by S&P Global or Fitch, as the case may be. Any downward revision or
withdrawal of a rating may have an adverse effect on the market price of the Bonds. Neither S&P Global nor Fitch has been involved in the preparation of this presentation.
I. Key terms of the offer

Page 5
Confidential to Fonterra Co-operative Group
II. Fonterra Overview

Page 6
© Fonterra Co-operative Group
Fonterra at a glance –“Dairy for Life”
•Co-operative owned by ~10,000 farmer suppliers
•Fully integrated dairy business (“grasstoglass”)
•Global scale and leadership
–World’s largest processor of dairy products
–24% of globally traded dairy³
•Consumer and foodservice operations inChina, Asia,
MiddleEast, Latin America, Oceania
•Access to global milk pools
–Collects ~82% of New Zealand’s milk⁴
•National champion in New Zealand
–22% of the free on board value of goods exported from NZ
5
–New Zealand’s largest company by revenue (FY18 NZ$20b)
1.Market cap as at 19 Oct 2018. FCG = Fonterra Co-operative Group Limited (includes the 0.5B of units on issue) and
FSF = Fonterra Shareholders Fund.
2.LME = Liquid milk equivalents.
3.(on a Liquid Milk Equivalent basis) for fiscal 2018 (Aug 17 through Jul 18).
4.Milk season 2017/2018
5.12 months through June 2018
Market Cap FCG (NZ$)¹7.9 billion
Market Cap FSF (NZ$)¹0.5 billion
FY18 Volume (LME)²22.2 billion
FY18 Total Assets (NZ$)18.0 billion
FY18 Normalised EBITDA (NZ$)1.4 billion
Credit rating
S&P Global
Fitch
A-stable
A stable

Page 7
© Fonterra Co-operative Group
Key drivers of credit ratingstrength
•“Market leadership in global exports of dairy
products”
•“Competitive cost position”
•“New Zealand’s largest producer and
exporter of dairy products”
•“Effective subordination”
•“Significant flexibility in setting and revising
the forecast price of milk sourced in New
Zealand”
•“The world leader in dairy exports”
•Defensive traits
•New Zealand’s largest dairyproducer”
•“Effective subordination”
•“Ability to pass global dairy-price and
foreign exchange movements in its global
ingredients and operations business to
farmers”
•Among most cost competitive
1.January 2018 update -only certain statements supporting the credit rating have been extracted and may not represent all statements contained in the relevant rating report.
2.October 2018 update -only certain statements supporting the credit rating have been extracted and may not represent all statements contained in the relevant rating report.
S&P Global¹
A-/ A-2,Stable
FitchRatings²
A / F1,Stable
•Bulletin issued 24 May 2018 confirming
rating
•Bulletin issued 10 August 2018 confirming
rating
•Rating Affirmation issued 19 October 2018
‘A’ rating with stable outlook
•Rating report issued 24 October 2018

Page 8
© Fonterra Co-operative Group
Fonterra –key investment attributes
Co-operative with secure global access to quality milk
Scale and world-class ingredients business
Focussed high-value consumer and foodservice businesses
Financial strength and discipline
A commitment to ESG
Unique Co-operative structure supports strong credit profile, including effective subordination
Highly experienced board and management team
Strong industry fundamentals

Page 9
Confidential to Fonterra Co-operative Group
III. Unique Features of the Co-
operative

Page 10
© Fonterra Co-operative Group
Transparent New ZealandMilkPrice
Key Factors
•GDT auctions
–Transparent bi-monthly
pricing
•Off-GDT pricing
•Governance model
–Commerce Commission
review
–External auditor
•Efficient marginal competitor
–Basis for cost assumptions
•WACC return on assets
–Allowed return in model
1.This also includes “approved adjustments” in respect of, for example, a portion of winter milk premiums paid
2.WMP: Whole Milk Powder, SMP: Skim Milk Powder, AMF: Anhydrous Milk Fat, BMP: Butter Milk Powder.
Reference Products: Basket of commodities used in model –WMP/SMP/AMF/BMP/Butter²
Non-Reference Products: Other products produced by Fonterra e.g. proteins/higher-specproducts/cheese
100%Reference
Products
Reference
Products
Non-reference
Products
Model Net Revenue
Model Cash Costs
Model Capital
Costs
Farmgat
eMilk
Price¹
Model Milk PriceFonterra
Revenue
Farmgate
MilkPrice¹
Operating and
Overhead Costs
Revenue
Farmgate
MilkPrice¹
Operating and
Overhead Costs
Global Ingredients EBIT
Farmgate
Milk Price

Page 11
© Fonterra Co-operative Group
Setting the MilkPrice
•The Milk Price that Fonterra pays its suppliers is set by the Fonterra board based on transparent, highly
formulaic calculations in the Milk Price Manual (publicly availabledocument)
•A detailed Milk Price Statement aims to help interested parties understand the MilkPrice
•This statement is published annually and released with Fonterra’s AnnualReport
FONTERRA
BOARDOF
DIRECTORS
Internal
Audit
Internal
reviews
andaudits
MilkPrice
Steering
Group
Milk Price
Group
External
reviewers
External
auditor
MILK PRICEPANEL
(Oversees calculationin
accordance with the
Milk Pricemanual)
Recommendation:
Farmgate MilkPrice
✓
NZ
regulatory
(NZCC)
oversight

Page 12
© Fonterra Co-operative Group
Financial flexibility from effective subordination
of New Zealand milk supply payments
Jul
AugSep
Oct
NovDec
Jan
FebMar
Apr
May
Jun
Jul
AugSep
Oct
NZD
AccrualsSupplier payments
Supplier accruals significant through the season
(Illustrative only)
Advance rate flexibility
1.Amount advanced during the year as a percentage of the milk price for the season ended 31 May
2.This amount is after offsetting $177 million Fonterra Co-operative Support Loan repayments relating to the 2017/18 season
Final Milk Price not determined until after the end of the milk season
Financial year ends
Final Milk Price set
Milk season ends
As at 31 July201620172018
Milk Price $3.90$6.12$6.69
Total advance payments
made during the year
$3.48$5.21$5.55
Paid by July
1
89%85%83%
Owing to suppliers
2
$0.7bn$1.3bn$1.6bn

Page 13
© Fonterra Co-operative Group
0
1
2
3
4
5
6
7
8
9
10
May 11
Oct 11
Mar 12
Aug 12
Jan 13Jun 13
Nov 13
Apr 14
Sep 14
Feb 15
Jul 15
Dec 15
May 16
Oct 16
Mar 17
Aug 17
Jan 18Jun 18
kgMS
Track record of using financial flexibility
•Track record of frequent and sizable
changes in both Forecast Milk Price
and Advance Rate
•Demonstrated track record and
willingness to pay a Final Farmgate
Milk Price
1
that is lower than the
Farmgate Milk Price calculated under
the Milk Price Manual
–Season 14: Reduced farmgate
milk price from $8.93 per kgMSto
$8.40 per KgMS
–Season 18: Reduced Farmgate
Milk Price from $6.74 per kgMSto
$6.69 per kgMS
Flexibility in amount and timing of payments to farmer
suppliers in New Zealand (Illustrative Only)
1. The aggregate amount approved by Fonterra’s Board as payment for milk supplied in the season
2012
2013
2014
2015
2016
2017
2018
2019
Forecast Milk PriceAdvance rate

Page 14
Confidential to Fonterra Co-operative Group
IV. Financial Update –2018
Annual Results and progress
update

Page 15
© Fonterra Co-operative Group
We didn’t meet our earnings guidance
Why did this happen?
•Optimistic forecast
−Required Q2 performance to repeat in Q3
and Q4
•Late season increase in the Farmgate Milk Price
impacted Ingredients’ margins
•Fat prices didn’t reduce in second half as much
as we forecast so lower margins in Consumer
and Foodservice
What are we going to do differently?
•Take stock of our businesses
−Evaluate against today’s criteria
−Actions under way
•Get the basics right
−Fix and lift performance
−Maintain financial discipline and reducedebt
−Prioritise return on capital
•Set realistic forecasts
−Transparency of assumptions
−Better recognition of industry volatility

Page 16
© Fonterra Co-operative Group
781
382
(196)
74
21
(337)
(136)
(160)
(439)
(400)
(200)
0
200
400
600
800
1,000
Normalised
NPAT
FY17
5 cents
Milk Price
Change¹
Lower
Operating
Earnings¹ ²
Higher
Interest
and Tax²
Normalised
NPAT
FY18
Other³
Danone⁴Beingmate⁵
Reported
NPAT
FY18
Reported a net loss
Due to lower operating earnings, higher funding costs and one-offs
1.Movements in the items are on an EBIT basis.
2.Movements in the items have been adjusted for the impact of minority interests of $10m on operating earnings and $4m on interestand tax to put on a comparable basis with NPAT.
3.Other includes $25m minority interests share of FY18 NPAT and ($4m) time value of options.
4.Danone arbitration decision includes $26m finance costs and $62m tax credit.
5.Beingmateinvestment includes $405m impairment and $34m share of operating losses.
•Reported net loss of $196 million,
this includes a 5 cent reduction in
the Farmgate Milk Price
•EBIT¹
,
², before Milk Price
adjustment, down $337 million on
last year
•Funding costs and tax are up
$136million on last year
•One-offs of Beingmate
impairment and Danone
arbitration decision reduce net
earnings by $599 million
•Normalisations are done to
betterreflect ongoing
businessperformance
FY17 –FY18 NPAT reconciliation ($m)

Page 17
© Fonterra Co-operative Group
Disappointing earnings performance
Margin pressure, higher costs and one-offs
1.Reflect normalisation adjustments.
2.Attributable to equity holders.
3.FY18 divided over volume weighted average FCG price of $5.84 across the year.
4.Includes inter-company sales.
5.Prior year volumes include 26m LME of milkpowdersnot included this year.
6.Return on Capital (ROC) includes goodwill, brands and equity accounted investments. Excluding goodwill, brands and equity accounted investments ROC was 8.2% in Ingredients and 35.1% in
Consumer and Foodservice.
GROSSMARGIN¹
$3,152M
3%
REVENUE
$20.4B
6%
VOLUME
22.2BLME
3%
ANNUALDIVIDEND
10CPS
YIELD 1.7%
3
NORMALISEDEBIT
2
$902M
22%
OPEX
1
$2,496M
7%
NET PROFIT AFTERTAX
$(196)M
126%, EPS (14)c
NORMALISED NPAT
2
$382M
51%, EPS¹ 24c
Ingredients
Volume (LME)⁴20.5B
Gross Margin (%)¹9.0%
Normalised EBIT$879M
Return on Capital⁶8.3%
Consumer and Foodservice
Volume (LME)⁴5.6B
Gross Margin (%)¹ 23.6%
Normalised EBIT$525M
Return on Capital⁶8.3%
China Farms
Volume (LME)⁵0.3B
Gross Margin (%)¹ 2.1%
Normalised EBIT$(9)M
75%

Page 18
© Fonterra Co-operative Group
More volume to higher value
•Overall volumes
–Total volumes declined 3%
due to lower collections
–Larger proportion went into
higher value, up from 42%
to45%
•Ingredients
–334m¹ LMEs shifted to
higher-margin Advanced
Ingredients
•Consumer & Foodservice
–Added 131m¹ more LMEs
–Sold less butter which has a
high LME factor
465 million more LMEs shifted to higher value
Note: Wheel shows category percentage of total FY18 external sales (LME)
1.Additional LME volumes include inter-company sales.
Combined Consumer,
Foodservice and
Advanced Ingredients
2%
20%
33%
22%
11%
12%
DIRA
GDT
Advanced
Ingredients
Foodservice
Consumer
FY18
22.2b
LME
Base
Ingredients
45%

Page 19
© Fonterra Co-operative Group
Stronger Milk Price impacted margins
•Stronger Farmgate Milk Price
–10% up on last year driven by
improved WMP and significant
increase in butter and AMF prices
–Non-GDT sales contributed
–Late season increase
•New Zealand Milk Price aligned to
global prices
–Historical discount removed
–Increases competitive pressure
•Higher fat prices impacted margins
–Butter and cream prices up on
lastyear
–Butter transfer prices up 80% in first
half and 41% for full year
•Stream-returns flat in second half
–Positive Stream Returns in the
firsthalf
Fat prices reduce profits in Consumer and Foodservice

Page 20
© Fonterra Co-operative Group
2,661
2,509
2,335
2,496
FY2015FY2016FY2017FY2018
Growth
Normalised¹ Operating Expense Breakdown ($ million)
Increased opexafter sustained reductions
Due to Ingredients and future growth spend
1. Reflect normalisation adjustments.
(6%)
(7%)
7%
After reducing costs over two years,
normalised opexwent up by 7%, or
$161million, driven by:
•Ingredients: $83 million
−Increased across the
business
−Expansion in Australia and
new category growth
−One-off items (e.g.
Edendalesilo)
•IT: $28 million
−Modernising our IT
infrastructure
•R&D: $18 million
−Investments in future
innovations

Page 21
© Fonterra Co-operative Group
Greater China is our largest market
FY18 LME3.8B1.3B0.1B0.03BNA0.3B
Business
Performance
Total revenue of $4 billion
1.Includes Anmum sales through Beingmate.
Integrated Greater China Business
China
Farms
Beingmate
Advanced
Nutrition¹
ConsumerFoodserviceIngredients

Page 22
© Fonterra Co-operative Group
Value creation not satisfactory
Requires improved performance and better use of capital
1.Return on Capital (ROC) includes goodwill, brands and equity accounted investments. Excluding goodwill, brands and equity accounted investments ROC was 8.0% in FY18 and 11.1% in FY17.
2.Reflect normalisation adjustments.
3.Economic net interest-bearing debt.
$861M
CAPEX
1%
83 DAYS
WORKING CAPITAL
8 days
$2,496M
OPEX²
7%
15.4%
GROSS MARGIN²
Down from 16.9%
$902M
NORMALISED
EBIT²
22%
6.3%
RETURN ON CAPITAL¹
,
²
Down from 8.3%
$6.2B
NET DEBT³
Up 11%
Return
Capital

Page 23
© Fonterra Co-operative Group
Committed to reducing debt
A strong balance sheet provides options
1.Gearing Ratio is economic net interest-bearing debt divided by economic net interest-bearing debt plus total equity excluding hedge reserves.
2.Economic net interest-bearing debt.
3.Debt payback ratio is economic net interest-bearing debt divided by EBITDA. Both debt and EBITDA are adjusted for the impact of operating leases.
AA-
FitchS&P Global
STABLESTABLE
$6.3B
TOTAL EQUITY
12%
CREDIT RATING
4.5X
DEBT/EARNINGS³
Up from 3.5x
$6.2B
NET DEBT²
Up 11%
48.4%
GEARING¹
Up 4.1%

Page 24
© Fonterra Co-operative Group
Gearing¹Working Capital Days²
Net Debt³Debt/EBITDA Ratio⁴
1.Gearing ratio is economic net interest-bearing debt divided by economic net interest-bearing debt plus equity excluding hedge reserves. Target range 40%-45%
2.Working capital days excludes amounts owing to farmer suppliers.
3.Economic net interest-bearing debt ($ million).
4.Ratio is economic net interest-bearing debt divided by EBITDA. Both debt and EBITDA are adjusted for the impact of operating leases. Target range 3x-4x
Committed to returning key balance sheet
metrics to target ranges
4.9
4.7
2.8
3.5
4.5
20142015201620172018
103
87
77
75
83
20142015201620172018
42.3%
49.7%
44.3%44.3%
48.4%
20142015201620172018
4,732
7,120
5,473
5,601
6,199
20142015201620172018

Page 25
© Fonterra Co-operative Group
Bank Facilities
48%
0.0
0.5
1.0
1.5
2.0
2.5
FY19FY21FY23FY25FY27FY29FY31
0.0
0.5
1.0
1.5
2.0
2.5
FY19FY20FY21FY22FY23FY24FY25FY26FY27
Diversified profile¹
At 31 July 2018 ($B)
Prudent liquidity
At 31 July 2018 ($B)
Bank facility maturity profile
At 31 July 2018 ($B)
DCM maturity profile²
At 31 July 2018 ($B)
1.Includes undrawn facilities and commercial paper.
2.Excluding commercial paper.
3.WATM is weighted average term to maturity.
Diversified and prudent funding position
Undrawn
Facilities
$3.73B
74%
Drawn Facilities
$1.29B
26%
EUR/GBP 10%
AUD DCM 12%
CNY DCM 6%
NZD DCM 12%
USD DCM 12%
WATM³: 2.8 yearsWATM³: 5.6 years

Page 26
© Fonterra Co-operative Group
0
300
600
900
FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32
$ million
0
300
600
900
FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32
$ million
0
300
600
900
FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32
$ million
RMB
GBP/EUR
0
300
600
900
FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32
$ million
New ZealandAustralia
US Private PlacementOther markets
Building curves and liquidity

Page 27
© Fonterra Co-operative Group
FY19 earnings guidance
1.Earnings per share.
8%-10%
INGREDIENTS
CONSUMER AND FOODSERVICE
1,550MILLIONKGMS
FORECAST 2018/19 MILK
COLLECTIONS
$6.25-6.50PERKGMS
FORECAST 2019 FARMGATE
MILK PRICE
25-35CENTS
FORECAST EPS¹
FORECAST GROSS MARGINFORECAST GROSS MARGIN
23%-26%
FORECAST EBITFORECAST EBIT
$540-$590M
$850-$950M

Page 28
© Fonterra Co-operative Group
Outlook for 2019
•Total available for pay-out for FY19 of $6.50-$6.85 per kgMS, before retentions
−A forecast Farmgate Milk Price of $6.25-$6.50 per kgMS
−A forecast earnings performance of 25-35 cents per share
•Strong financial discipline
−Gearing Ratio within 40-45% range
−Capex reduced to $650M
•What are we going to do differently in 2019?
−Take stock of our businesses
−Get the basics right
−Set realistic forecasts

Page 29
© Fonterra Co-operative Group
Progress on plan to lift performance
•Take stock of our businesses
−Progressing portfolio review
−Dropped our volume-based ambition to align fully to the essence of the strategy of moving more
volume into higher value products
−Clarified focus on maximising New Zealand milk, complementing it when required to meet our
customers’ needs.
−Focused on delivering a respectable Return on Capital
•Get the basics right
−Reducing debt by $800 million by financial year-end
−Set CAPEX at $650 million for FY19
–Bringing OPEX back to FY17 levels over the next couple of years
•Set realistic forecasts
−Provided price range in recent forecast Farmgate Milk Price revision
−Reducing subjective elements in forecasting process, including the use of new technology
Updated 31 October 2018

Page 30
© Fonterra Co-operative Group
Glossary
Acronyms and Definitions
AMF
Anhydrous Milk Fat
BMP
Butter Milk Powder
Base Price
Prices used by Fonterra’s sales team as
referenced against GDT prices and other
relevant benchmarks
DIRA
Dairy Industry Restructuring Act 2001
(NewZealand)
GDT
GlobalDairyTrade, the online provider of the
twice monthly global auctions of dairy
ingredients
Gearing Ratio
Economic net interest bearing debt divided
by economic net interest bearing debt plus
equity excluding cash-flow hedge reserves
Farmgate Milk Price
The price for milk supplied in New Zealand
to Fonterra by farmer shareholders
Fresh Dairy
The Fonterra grouping of skim milk, whole
milk and cream –pasteurised or UHT
processed, concentrated milk products
andyoghurt
LME (Liquid Milk Equivalent)
A standard measure of the amount of milk
(in litres) allocated to each product based on
the amount of fat and protein in the product
relative to the amount of fat and protein in
standardised raw milk
kgMS
Kilogram of milk solids, the measure of the
amount of fat and protein in the milk
supplied to Fonterra
Non-Reference Products
All dairy products, except for Reference,
produced by the NZ Ingredients business
Reference Products
The dairy products used in the calculation of
the Farmgate Milk Price, which are currently
WMP, SMP, BMP, butter and AMF
Regulated Return
The earnings component of Milk Price
generated from a WACC return on an
assumed asset base
Season
New Zealand: A period of 12 months to 31
May in eachyear
Australia: A period of 12 months to 30 June
in eachyear
SMP
Skim Milk Powder
Stream Returns
The gross margin differential between Non-
Reference Product streams and the WMP
stream (based on Base Prices)
WACC
Weighted Average Cost of Capital
WMP
Whole Milk Powder

Page 31
© Fonterra Co-operative Group
Glossary
Fonterra Strategic Platforms
Ingredients
The Ingredients platform comprises bulk and specialty dairy products such as milk powders, dairy fats, cheese and proteins manufactured in New
Zealand, Australia, Europe and Latin America, or sourced through our global network, and sold to food producers and distributorsin over 140
countries. It also includes Fonterra Farm Source™ retailstores.
Consumer
The Consumer platform comprises branded consumer products, such as powders, yoghurts, milk, butter, and cheese. Base productsare sourced
from the ingredients business and manufactured into higher-value consumer dairy products.
Foodservice
The Foodservice platform comprises a range of branded products and solutions for commercial kitchens, including bakery butter, culinary creams,
and cheeses.
China Farms
The China Farms platform comprises the farming operations in China, which produce high quality fresh milk for the Chinese market.