Presentation for Select Equities Conference

DELIVER.
INVEST.
CLARIFY.
SELECT EQUITIES CONFERENCE
FRIDAY 1 NOVEMBER
SY NL A I T
MILK
L I M I T ED
2019

STRATEGIC
UPDATE
S Y N L A I T
M I L K
L I M I T E D
2019
| P G 1

Delivering results
•Revenue exceed $1 billion for the first time,
increasing 17% to $1,024.3 million
•Net profit increased 10% to $82.2 million
•Operating cashflow increased 39% to $136.7
million
•Sales volumes increased 21,087 MT or 16% to
149,709 MT*
•Consumer packaged infant formula sales continue
to grow, up 21% to 42,907 MT
•Average milk price of $6.58 per kgMS for the
2018/2019 season, made up of a base milk price of
$6.40 and an additional $0.18 in incentive
payments
Clarifying our direction
•Launched our new purpose and brand identity:
Doing milk differently for a healthier world
•Delivered on our promise to clarify Synlait’s
focus, strategy and purpose for shareholders
and staff
•Defined our formula for success. Aspirational
goal to double our business: 2 + Zero
•New strategy has eight clear strategic paths to
grow and enable our business
•This now underpins everything we do and will
take Synlait through the next growth phase
Investing for the future
•$18.9 million expansion to lactoferrin facility
completed on time and budget, doubling
manufacturing capacity
•$260 million infant-capable manufacturing facility in
Pokeno close to commissioning. Welcomed 56 farms
and 77 employees
•$134 million advanced liquid dairy packaging facility
at Dunsandel designed, built and commissioned
within 18 months
•Talbot Forest Cheese acquisition completed on
1 August 2019
•$32million investment to build Dry Store 4
announced today –30,000m
2
warehouse at
Dunsandel which will unlock further supply chain
efficiencies and enable greater control of traceability,
improve our sustainability footprint, and result in
shorter lead-times for customers
•218 capable, experienced and high-energy people
hired to help run these facilities
*Excluding fresh milk and specialty ingredients
DELIVER. INVEST. CLARIFY
Our year in review
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 2

Pioneered an ability to
create a differentiated
milk supply
•A1 protein free milk
•Grass Fed™
•Lead With Pride™
Relentless focus on
research, development
and innovation
•Dedicated research
and development team
•Product development
in attractive categories
and markets a priority
•Capability to create
custom dairy products
for customers
Navigated complex
regulatory
environments
•Strong track record at
providing market
access for customers,
securing regulatory
approvals for Synlait
sites
Built in quality testing
standardsonsite
•Zero defects targets
•Test raw materials,
finished products and
facilities
•Full quality assurance
and traceability
Developed an integrated
manufacturing chain
•Operate high spec,
large scale plants
•Integrated Work
Systems (IWS)
programme driving
efficiencies
Established
Building
Creating a sustainable
value chain
•Value people and
planet as much a
profit
•Committed to
ambitious 10-year
targets
•GHG inventory and
pathway to emissions
reduction established
WHAT MAKES US DIFFERENT
Our unique capabilities underpin our sustainable competitive advantage
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 3

OUR STRATEGY
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 4

DELIVERING AGAINST OUR GROWTH STRATEGY
DELIVERYONTRACK
•21% growth in consumer
packaged infant formula sales
•Awaiting registration of China
brands
•Lactoferrin capacity doubled,
operating in favourable
environment
STRATEGYPROGRESSED
•Advanced liquid dairy packaging
facility completed, servicing
inaugural customer
•Talbot Forest Cheeseacquired
•Evaluatingopportunities
STRATEGYDEVELOPING
•Naturalextension
•Market is large and growing,
with strong demand for New
Zealandprovenance in Asia
•Optimise milk solids as we
create a value stream from
surplus fat
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 5

DELIVERING AGAINST OUR ENABLING STRATEGY
•Injury rate reduced 28%
•Launched programme to live
our purpose: Whakapuāwai
•Launched Tāwariwari and
Mātuapolicies
•Full reset of growth enabling
processes and systems underway
•Published Greenhouse Gas
(GHG) inventory
•Workplan towards 2028 climate
and water targetsestablished
•Commissioned New Zealand’s
first large scale electrodeboiler
•Built three world class facilities
•IWS generating impressive
efficiencies and capacity increases
•Opened new Chinaoffice to resource
sales andregulatorycapabilities
•43 new Lead With Pride
TM
farmscertified
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 6

OUR
FINANCIAL
RESULTS
S Y N L A I T
M I L K
L I M I T E D
2019
| P G 7

Net profit after tax increased 10.2% to $82.2 million in FY19 from $74.6 million
in FY18, with momentum in the second half of FY19 to be carried into FY20
•Strong growth in consumer packagedinfant formula sales with volumes up 21% to
42,907 MT, including 24,932 MT in the second half
•Powders and cream sales increased 15% to 106,802MT
•Lactoferrin sales increased 33% to 21 MT from 16 MT, with a favourable pricing
environment driving margin gains
•Manufacturing efficiencies enabled 8.7% more milk to be processed
•Operating cash flow increased by $38.3 million to $136.7 million from $98.4 million
•Minor gross margin per MT contraction, impacted by:
-Consumer packaged infant formula sales being at lowermargins as a result of
the renegotiation of our supply agreement with The a2 Milk Company
TM
-Changes to customer mix with China brands sales not repeating in FY19 as they
await SAMR registration
-Increases to fixed overheads in preparation for production facilities coming on-
line
NZ$millionsFY19FY18
EBITDA$152.1$138.6
EBIT$124.5$113.1
Earnings Per Share (basic and
diluted)
45.89cents41.60cents
RESULTS AT A GLANCE
35.7
39.5
74.6
82.2
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
FY16FY17FY18FY19
Net profit after tax
15,999
18,776
35,580
42,907
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
FY16FY17FY18FY19
Consumer packaged infant formula sales (MT)
$ millions
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 8

*Sales volumes does not include specialty ingredients and fresh milk
* Finished goods inventory does not include fresh milk
Exceeded $1 billion in revenue for the first time, with
consumer packaged infant formula sales of 42,907 MT in the
middle of the guidance range
•Total powder sales volumes increased 16.4% to 149,709
MT enabled by manufacturing efficiencies
•Overall product mix consistent with FY18, as consumer packaged
infant formula sales comprised 29% of total powder sales (28% in
FY18)
•Finished goods inventory reduced 12.7% to 23,318 MT
following successful delivery of inventory management initiatives
•Sales of lactoferrin increased to 21 MT from 16MT in
FY18
-Lactoferrin sales exclude volume used internally
SALE SVOLUMEANDI N V E N T O R Y
15,999
18,776
35,580
42,907
100,393
122,606
93,042
106,802
116,392
141,382
128,622
149,709
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
FY16FY17FY18FY19
Sales volumes (MT)
IFC Sales Volumes (MT)P&C Sales Volumes (MT)
21,044
15,056
26,726
23,318
-
5,000
10,000
15,000
20,000
25,000
30,000
FY16FY17FY18FY19
Finished goods inventory (MT)
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 9

O P E RAT I NGCASHFLOW
Strong cashflow generation with operating
cash flows increasing by $38.3 million to
$136.7 million from $98.4 million last year
•Cashflow generation driven by an increase in
operating profit and a favourable movement in
working capital
•Working capital movement a function of:
-Inventory management efficiencies
-Continued benefits from receivables assignment
programme, with the year end balance
increasing to $109 million from $69 million in
FY18, including adding Nestle to the
programme
104.4
115.2
98.4
136.7
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
FY16FY17FY18FY19
Operating cashflow
$ millions
$ millions
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 0

NETDEBT
Net debt increased by $218.7 million to $333.6
million at year end from $114.9 million last year
Significant investment in major growth projects and
operational projects continued with $309.3 million of
spend on capital expenditure:
•Second infant-capable manufacturing facility in Pokeno
$181.1 million, with cumulative total spend of $193.8
million of $260 million
•Advanced liquid dairy packaging facility $71.1 million
with cumulative total spend of $115 million of $134
million (including $4 million for the electrode boiler
upgrade)
•Lactoferrin plant $12.2m of cumulative total of $18.9
million
In addition, $29.1m deployed in investments and
intangibles, including a $18 million secured loan to Talbot
Forest Cheese
•Loan settled on 1 August 2019 with a final purchase
price of $37.8 million
213.9
82.6
114.9
333.6
2.5x
0.9x
0.8x
2.2x
-
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
0
50
100
150
200
250
300
350
400
FY16 FY17 FY18 FY19
Net debt
Net DebtLeverage Ratio
$ millions
Leverage
$ millions
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 1

OUR CHINA
BUSINESS
S Y N L A I T
M I L K
L I M I T E D
2019
| P G 1 2

FY19 consumer packaged infant formula volumes of 42,907 MT up
21% on FY18 and in line with guidance range of 41,000 -45,000 MT
-Continued commitment to support strong partnership with The a2 Milk
Company
TM
as it continues to grow in the China infant formula market
-Other brands are taking longer than expected to achieve regulatoryapproval in
China. Synlait has dedicated regulatory staff in Beijing and Shanghai working
through the registrations with SAMR
-The Akara and Pure Canterbury formulation registrations have been
accepted subject to a site audit
-Continue to work through the registration process for e-Akara
-Pokeno site adds 45,000 MT of infant base powder manufacturing capacity
-Synlait Auckland achieved GACC dairy registration and has submitted its
application for GACC IF
-Advanced liquid dairy packaging facility provides options for expanding the
infant nutrition offering, including ready-to-drink formulated nutritional products
INFANT NUTRITION –CURRENT STATE
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 3

OVERVIEW
•Synlaitsellsproductsthroughouttheworld,howeverChinaremainsourmostimportantmarket.
•Wehavebuiltaverystrongbusinessfocusedoninfantformula,primarily,intothismarket.
•Ourstrategicdirectionistocontinuetogrowanddevelopourcustomerandproductopportunitiesintothismarket,
whilealsoinvestingintoourcategoriestodiversifyourconcentrationrisksovertime.
•WehaveawellproventrackrecordtonavigatetheregulatorymarketwithinChina.
•WeareverywellpositionedtorespondtotheChinamarketpolicydirectionsandbelievethatthesewillcreatemore
significantgrowthopportunitiesforSynlaitovertime.
OUR CHINA BUSINESS
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 4

FUTURE OPPORTUNITIES
•Synlaitisverywellplacedtotakeadvantageofthe“HealthyChina2030”policyguidelinesrecentlyannounced.
•Ourannouncedstrategicdirectioninnotonlyinfantnutrition,butalsoadultnutrition,andbotharewellalignedtothis
policydirection.
•Wehavetheappropriateplantandpeoplecapabilitytoensurethat,togetherwithourexistingcustomers,wecreate
therightproductsandopportunitiestocapitaliseonthis.
•InadditionwebelievethatwearewellplacedtobenefitfromtherecentlyupdatedNDRCpolicydirectiontoshift
moreinfantnutritionsalestoChinabasedcompanies.
•Weasstatedearlier,weareinprocesstohavebothofourChinainfantcustomersbrandsapproved.Whiletiming
remainsuncertain,weremainconfidentofachievingapprovalofthesebrandsinduecourse.
OUR CHINA BUSINESS
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 5

CHINA MARKET ENVIRONMENT
•Thefactoryandbrandapprovalprocesswhiledemanding,iswellunderstoodbySynlaitandweworkwellwiththe
regulatorswithintheirguidelines.
•FurtherconsolidationofbrandsandmanufacturersremainsanimportantandongoingprocessforChina,inorderto
establishbetterassurancesoffoodsafetyandsupportdomesticsuppliers.
•Followingaperiodoflimitedprogressacrosstheindustry,therestructureoftheChinaregulatoryorganisationisnow
complete,andweareobservingprogressinfactoryandbrandapprovalsacrosstheindustry.
•Regulatoryrequirementscontinuetoevolve,andwecontinuetokeepabreastofthesechangesastheyoccurand
ensureweareabletorespondappropriately.
OUR CHINA BUSINESS
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 6

•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 AnnualReport for
the period ended 31 July2019.
•This presentation is not an offer or an invitation,
recommendation or inducement to acquire, buy, sell or hold
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 otherlaw.
•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 investmentdecision.
•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
expectationsand
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 Listing Rules, or the ASX
ListingRules.
•Past performance information is given for illustration
purposes only and is not indicative of future performance
and no guarantee of future returns is implied orgiven.
•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 noliabilityor
responsibility (including, without limitation, liabilityfor
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, thispresentation.
•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 any applicable
legislation; or (ii) the accounting principles or standards
generally accepted in New Zealand or any other jurisdiction, or
with International Financial Reporting Standards.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 otherentities.
Non-GAAP financial information in this presentation has not
been audited orreviewed.
•All values are expressed in New Zealand currency unless
otherwisestated.
•All intellectual property, proprietary and other rights
and interests in this presentation are owned by
Synlait.
DISCLAIMER
S Y N L A I T
M I L K
L I M I T E D
2019
|
P G 1 7

INVESTORS
Hannah Lynch, Corporate Affairs Manager
+6421 252 8990
Hannah.Lynch@Synlait.com
MEDIA
LindaChalmers, Senior Communications Advisor
+64 21 951 347
Linda.Chalmers@synlait.com