Macquarie Australia Conference Presentation

Macquarie Australia Conference 2019
PG 1
Synlait Milk Limited 2019

I

We are a young, pioneering New Zealand-based
company that is shifting perceptions and driving
value through new thinking, and a new attitude.
We harness New Zealand’s natural assets, and
combine expert farming with state-of-the-art
processing to produce a range of nutritional milk
products for our global customers.
All figures in NZ$, market capitalisation as at 30 April 2019.
$879.0m
FY18 REVENUE ↑ 26% CAGR SINCE FY09
$74.6m
FY18 NPAT ↑ 89% ON FY17
$1.9b
MARKET CAPITALISATION
PG 2
Synlait Milk Limited 2019

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PG 3
DOING MILK DIFFERENTLY
FOR A HEALTHIER WORLD
Essential Nutrition
The milk nutrition products we
manufacture provide genuine benefits for
human health and wellbeing for millions of
people throughout the world.
Sustainability
People and planet underpin all we do.
Sustainability isn’t a catchphrase for
us. It’s at the core of what we’re doing
everyday – all of us.
Being Different
Our company was born disruptive. It is this
spirit that has driven our success. To do
things differently than we did yesterday,
to try things that haven’t been done
before, is at our core.
OUR PURPOSE
PG 3
Synlait Milk Limited 2019
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DOING MILK
DIFFERENTLY
• Significant opportunity with category size and growth:
- Total size of global IN market = US$54.3 billion
(1)
- China growth: 16% CAGR over 10 years
- NZ exports have tripled in the past three years
• Synlait is the largest exporter of high value infant
nutrition in New Zealand ~45% share of exports
• We are investing in our unique, differentiated and
integrated value chain (circa $400m new capacity
and capability under development in 2019)
Our success has been driven by thinking
differently. We are investing in our
integrated value chain to strengthen our
position as New Zealand’s largest exporter
of high value infant nutrition.
1
Source: Euromonitor, 2018
PG 4
Synlait Milk Limited 2019

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FOR A
HEALTHIER
WORLD
We are mobilising around being the best
for the world. Through our sustainable
innovation platforms, we’re changing our
company, transforming our industry and
setting up a positive legacy for future
generations.
• This is the problem of our age and we’re a big part of it
• We are committed to changing our company and
inspiring positive change:
- Reducing greenhouse gas emissions on and off farm
- Eliminating water degradation
- Incentivising farmers to improve practices and
eliminate unsustainable feed supplies
- Installation of New Zealand’s first large scale
electrode boiler
• And leading the way for transparency in our industry:
- B-Corp certification in 2019
- Committed to Science Based Targets Initiative (SBTI)
- CDP reporting of climate impact
PG 5
Synlait Milk Limited 2019

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SYNLAIT’S INTEGRATED AND DIFFERENTIATED VALUE CHAIN
DIFFERENTIATED
MILK SUPPLY
- Milk streaming (A1 protein free milk,
Grass Fed
TM
, Lead With Pride
TM
)
- Farm ISO certification programme
(Lead With Pride
TM
)
- Three-year rolling contracts

RAW MATERIALS
PROCUREMENT
- Source high quality ingredients & packaging
- Agile and risk based approach based on
customer needs
- Robust supplier Quality Management
RESEARCH + CATEGORY
DEVELOPMENT
- Dedicated R&D facility at Palmerston North
- Focus on innovating production and process
- New product development in attractive
categories and markets
QUALITY TESTING
LABORATORY
- Zero defects targets
- Test raw materials, finished
products and facilities
- Full quality assurance and
traceability
CUSTOMERS
- Our brand partners market,
promote, and distribute their
products
MANUFACTURING
EXCELLENCE
- Operate high spec, large scale plants
- Efficiencies driven through Integrated
Work System (IWS) programme
- Control all aspects of product quality
REGULATORY
CAPABILITY
- Provide market access
for our customers
- Secure regulatory
approval for products
and manufacturing sites
CONSUMER
CONSUMER
PACKAGING
- Ownership of brand
registrations
- Two state-of-the-art
canning lines
FULL LOGISTICS SERVICES
- Integrated onsite storage & logisitcs
- Export shipping & airfreight capability
- Tailored to customer requirements
PG 6
Synlait Milk Limited 2019
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CONTRACTED FARMS
APPROX. 200, TOTAL SUPPLY
APPROX. 65M kgMS
WETMIX KITCHENS
125,000 MT CAPACITY
LACTOFERRIN
~36 MT CAPACITY
ADVANCED LIQUID
110 mL CAPACITY
TALBOT FOREST
12,000 MT CAPACITY
HIGH SPECIFICATION
SPRAY DRYERS
165,000 MT CAPACITY
INGREDIENTS
165,000 MT CAPACITY
CONSUMER PACKAGING
70,000 MT CAPACITY
CHEESELONG LIFE LIQUID
AND CULTURED
FRESH MILK
Infant NutritionIngredientsEveryday Dairy
MANUFACTURING
EXCELLENCE
Significant investments in major growth projects
Project
(NZ$ millions)
Pokeno Wetmix and Dryer260
Advanced Liquid Dairy Packaging125
Lactoferrin Upgrades19
Talbot Forest Cheese
30-40
Total440
PG 7
Synlait Milk Limited 2019
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AUCKLAND CANNING
• SAMR registration in progress
POKENO
• Plant on schedule for 2019 / 2020
milk season commissioning
• A1 protein-free and Lead With Pride
TM

milk pools being formed
PALMERSTON NORTH
• R+D staff to grow from seven to 15
by the end of FY19
DUNSANDEL
• Advanced Liquid Dairy Packaging
Facility now operational
OUR GEOGRAPHIC
FOOTPRINT
TEMUKA
• Talbot Forest Cheese acquisition
on track for 1 August completion
PG 8
Synlait Milk Limited 2019

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WE ARE A GROWTH COMPANY
As we enter the next phase of
Synlait’s evolution we retain our
growth company mentality.
Synlait has grown from start-up to
140,000 MT of annual production
volume in 11 years, growing revenue
by a 26% CAGR since FY09.
Revenue and EBITDA
26% Revenue Growth CAGR
FY09FY10
NZ$ millions
FY11FY12FY13FY14FY15FY16FY17FY18
1,000
900
800
700
600
500
400
300
200
100
-
11.3
112.2
4.2
233.4
22.2
298.9
38.5
376.8
43.8
420.0
44.4
600.5
40.9
448.1
83.7
546.9
88.8
759.0
138.6
879.0
EBITDARevenue
PG 9
Synlait Milk Limited 2019
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TRACK RECORD OF SUCCESSFUL ASSET BUILDS
Net operating assetsNet debt / EBITDA
After a period of consolidation, our
strong balance sheet has facilitated
our second major growth phase and
we are currently investing over $400m
into our major growth projects.
Synlait achieved a 22.7% net return on
capital employed (pre-tax) in FY18.
Net Operating Assets and Gearing
FY09FY10
NZ$ millionsNet Debt / EBITDA
FY11FY12FY13FY14FY15FY16FY17FY18
600
500
400
300
200
100
-
12.0x
10.0x
8.0x
6.0x
4.0x
2.0x
.0x
93.9
96.6
81.6
186.5
267.0
311.8
323.2
455.2
423.5
493.3
-3.7%3.8%0.0%7.8%12.9%11.8%7.3%14.5%14.8%22.7%Return on capital employed (Pre-tax)
PG 10
Synlait Milk Limited 2019
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Ingredients
Adult Nutrition
Infant Nutrition
Everyday Dairy
DOING MILK DIFFERENTLY
Our Categories
EnvironmentEnterprisePeople
FOR A HEALTHIER WORLD
Our Sustainable Value Chain
OUR
STRATEGY
PG 11
Synlait Milk Limited 2019
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Ingredients
Adult Nutrition
Infant Nutrition
Everyday Dairy
DOING MILK DIFFERENTLY
Our Categories
EnvironmentEnterprisePeople
FOR A HEALTHIER WORLD
Our Sustainable Value Chain
OUR
STRATEGY
PG 12
Synlait Milk Limited 2019
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Infant Nutrition business continues to
grow strongly – on track to deliver 41,000 -
45,000 MT in FY19 (vs. 35,580 MT in FY18).
Expanding capacity with our second infant-
capable processing site at Pokeno.
Strong partnership with The a2 Milk
Company
TM
with exclusive supply rights for
infant formula products to the China and
Australia / New Zealand markets.
We remain committed to our globally
diversified portfolio of Infant Nutrition
brands as they undertake China / U.S.
regulatory approvals.
INFANT NUTRITION
Global portfolio of Infant Nutrition customer partnerships
CHINA DOMESTICDIFFERENTIATED
PG 13
Synlait Milk Limited 2019

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EVERYDAY DAIRY
Advanced Liquid Dairy Packaging Facility is
now operational and is undertaking export
registrations for the China market.
Developing new liquid nutrition categories
in attractive export segments.
Talbot Forest Cheese acquisition is expected
to complete on 1 August 2019 and allows
furth
er optimisation of our value chain.
PG 14
Synlait Milk Limited 2019
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Milk Processed (millions of litres)
120
100
80
60
40
20
_
AugSeptOctNovDecJanFebMarAprMayJunJul
FY18FY19
INGREDIENTS + LACTOFERRIN
Lactoferrin Production Volume (MT)
28
24
20
16
12
8
4
_
MT
FY14FY19FY18FY17FY16FY15
7
20
8
121212
Lactoferrin Volume (MT)Forecast H2 FY19 Lactoferrin Volume
4
Integrated Work Systems (IWS) manufacturing
programme has delivered significant manufacturing
efficiencies, with 12.4% more milk processed in
HY19 vs. HY18 off the same asset base.
Synlait has developed world leading infant grade
lactoferrin manufacturing technology and we
doubled capacity to circa 36 MT.
PG 15
Synlait Milk Limited 2019
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Ingredients
Adult Nutrition
Infant Nutrition
Everyday Dairy
DOING MILK DIFFERENTLY
Our Categories
EnvironmentEnterprisePeople
FOR A HEALTHIER WORLD
Our Sustainable Value Chain
OUR
STRATEGY
PG 16
Synlait Milk Limited 2019
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Source: Global Footprint Network, www.footprintnetwork.org.
PG 17
Synlait Milk Limited 2019
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WE’RE TAKING A STAND
PG 18
Synlait Milk Limited 2019
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Enterprise
Our heart is in NZ, our head
is in the world. Returning an
economic glow for NZ.
People
Opportunities for all to thrive.
A fanbase transforming our
industry; a positive legacy for
future generations.
Environment
Synlait’s net business impact is positive
for the planet. Regenerative agriculture,
manufacturing + supply chain.
Climate
change
Water
Welfare
Circular
economy
Transparency
PEOPLE
ENTERPRISE
“Doing milk
differently for
a healthier
world.”
Capability
Living our
purpose
Safe
workplace
Healthy
farming
World class
supply chain
Manufacturing
excellence
ENVIRONMENT
Safe food
PG 19
Synlait Milk Limited 2019
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LIVING WELL, WITHIN THE
BOUNDARIES OF OUR PLANET
PG 20
Synlait Milk Limited 2019
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DOING MILK DIFFERENTLY FOR A HEALTHIER WORLD
Thank You
Synlait Milk Limited 2019

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PG 21