FY20 Half Year Results and Interim Report

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer The a2 Milk Company Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$805,320 31.8%
Total Revenue $806,717 31.6%
Net profit from continuing
operations
$188,194 21.4%
Total net profit $184,926 21.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the
half-year ended 31 December 2019
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date No applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.28 $1.04
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
Interim Report for the six months ended 31 December 2019
Half Year Results Commentary
Half Year Results Presentation

Authority for this announcement
Name of person

authorised
to make this announcement

Jaron McVicar

Contact person for this
announcement
Jaron McVicar
Contact phone number +61 2 9697 7000
Contact email address Jaron.McVicar@a2milk.com
Date of release through MAP

27/02/2020

Unaudited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M

The a2 Milk Company Limited
www.thea2milkcompany.com

27 February 2020
NZX/ASX Market Release

Delivered strong financial results
Strategy execution gaining momentum

Results highlights for the half year ended 31 December 2019 (NZ$)
1,2,3

• Total revenue of $806.7 million, an increase of 31.6%
• EBITDA
4
of $263.2 million, an increase of 20.5%
• Net profit after tax of $184.9 million, an increase of 21.1%
• Basic earnings per share (EPS) of 25.15 cents, an increase of 20.6%
• EBITDA to sales margin of 32.6%, better than expected
• Operating cash flow of $160.6 million and a closing cash balance of $618.4 million
• Marketing investment of $84.1 million targeting opportunities in China and the USA
• Group infant nutrition revenue of $659.2 million, up 33.1%
• Strong growth in China label infant nutrition, with sales doubling to $146.7 million and distribution
expanded to 18,300 stores
• USA milk revenue more than doubled and distribution expanded to 17,500 stores



1
All figures are in New Zealand Dollars (NZ$) unless otherwise stated.
2
All comparisons are with the six months ended 31 December 2018 (1H19), unless otherwise stated.
3
All figures are quoted based on all operations of the Group, without excluding discontinued operations, unless otherwise stated.
4
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure. However, the Company believes
that it assists in providing investors with a comprehensive understanding of the underlying performance of the business. A
reconciliation of EBITDA to net profit after tax is shown at the end of this document.

2
Summary of Group performance

The a2 Milk Company has made substantial gains in revenue and earnings, and with strong performances in
key product segments of infant nutrition and liquid milk, and across core markets.
Our overall result reflects the continued growth in our infant nutrition segment with sales totalling $659.2
million for the period – an increase of 33.1% on the prior corresponding period. In-line with our strategy,
our strong growth in China label infant nutrition products was particularly pleasing, with sales of $146.7
million, an increase of 100%. We achieved this while also continuing to achieve strong growth in our English
label infant nutrition products. During December 2019, distributors requested additional product in
advance of Chinese New Year which effectively brought forward approximately $8.0 million of sales from
January 2020 to December 2019.
We again achieved strong growth in our liquid milk businesses in Australia and the USA, with sales across
the Group
5
totalling $104.4 million up 28.7%. Liquid milk sales in Australia were up 11.3% to $74.7 million
and sales in the USA more than doubled compared to 1H19, driven by improved sales velocity in
established stores as well as an expanded store footprint.
Our gross margin percentage
5,6
increased to 57.2%, benefiting from a continued mix shift to infant formula,
as well as improved price yield.
We delivered an EBITDA margin of 32.6% which was better than expected due to our stronger underlying
gross margin.
Net cash flow from operating activities for the period was $160.6 million representing a strong cash
conversion rate. Our closing cash position of $618.4 million reflects growth in revenue and earnings,
partially offset by increased working capital.
Our balance sheet remains in a strong position with no debt and a significant cash balance. This will
continue to be important to provide optionality in the execution of our growth strategy.



5
From continuing operations.
6
Gross margin percentage is calculated as revenue less cost of goods sold, divided by revenue.

3
Delivering on our strategic priorities and business objectives

We are pleased with the results of our strategy execution and continue to be energised about our key
products, core markets and growth outlook.
We are committed to a focused approach to pursuing our strategic growth priorities:
1. Maximise growth from existing products in core markets;
2. Broaden our product portfolio in core markets; and
3. Expand in other targeted markets.
With the benefit of the comprehensive work undertaken during 2019 to enhance our understanding of the
consumer and sales channels in our core markets, we have continued the increased levels of investment in
marketing and capability to execute our growth plan.
In Australia, we have continued to build on our market leading positions in fresh milk and infant nutrition,
whilst leveraging this to launch new products, such as a2 Smart Nutrition™, demonstrating our
commitment to innovation.
In Greater China, we remain focused on strengthening our infant nutrition position in-market. It is pleasing
to see our investments in brand, trade activities and people driving strong sales momentum.
In the USA, we continue to drive towards meaningful scale, with sales more than doubling compared to
1H19. We improved our in-store productivity and further expanded our distribution footprint.
Our targeted exploration of new markets continues – in October we launched infant formula in the city of
Hong Kong and in December we launched infant formula in Korea with our partner, YuhanCARE (Yuhan).
Importantly, our strategic priorities translate into four business objectives:
1. Deliver Asia Pacific sales strategy outcomes;
2. Reach meaningful scale in the USA;
3. Build towards sustainable brand leadership; and
4. Deliver the organisation of the future.
We are pleased with the progress we have made against each of these business objectives in the first half
and are confident that orienting our organisation around these objectives will allow us to capture near-
term and longer-term growth opportunities.

1. Deliver Asia Pacific sales strategy outcomes

Our Asia Pacific business revenue was $777.4 million, up 30.0%, with EBITDA of $345.4 million, up
30.2%. This included:
• ANZ segment revenue of $460.2 million, up 10.0%, with EBITDA of $227.9 million, up 18.7%
• China & other Asia segment revenue of $317.2 million, up 76.7%, with EBITDA of $117.5
million, up 60.3%
• Revenue growth benefited from favourable pricing and product mix

Infant nutrition
Our Asia Pacific infant nutrition portfolio encompasses predominantly China and English label
products. China label infant nutrition products can be sold in-market in China, via mother and baby
stores (MBS), modern supermarkets and China label e-commerce retail channels. English label
products can be sold through Australian retailers, Australian-sourced resellers and cross border e-
commerce (CBEC) channels. In addition, we supply infant nutrition products into Hong Kong and
Korea. Our multichannel approach for our infant formula business gives us the flexibility to meet
consumer demands across regions and through multiple distribution pathways.

4

Infant nutrition – China offline channels
Following a detailed strategic review in 2019, we stepped up investment in our China label infant
nutrition business considerably in 2H19 and continued broadly at this level in 1H20. We have also
expanded our team in China, reviewed and optimised relationships with distributors and are
focusing on the biggest opportunities for growth.
We are pleased our investments to deepen our understanding of consumer and channel trends and
the increased levels of investment in marketing and capability development are translating into
accelerated growth in our China label business.
For the period, we achieved sales in a2 Platinum® China label infant nutrition of $146.7 million,
double the sales we achieved in the prior corresponding period. In addition to driving in-store
productivity, we also expanded our footprint to 18,300 stores, up from 16,400 stores at the end of
2H19. Furthermore, we achieved our highest market value share in the MBS channel during the
period. These indicators give us confidence that our strategy is on track.
We are committed to maximising our growth opportunities, including through product innovation.
We launched a China label version of our Stage 4 product in December and recently re-launched
our Stages 1, 2 and 3 China label products with a tamper-evident lid for additional product security.
Our infant nutrition portfolio is complemented by our other nutritional products as we broaden our
appeal to existing consumers and seek to connect with new consumers.

Infant nutrition – Cross-border e-commerce
We delivered a2 Platinum® English label infant nutrition sales of $158.7 million, up 57.8%. The
results of the 11/11 China e-commerce sales event were very positive. In JD.com, our a2 Platinum®
Stage 3 was the top selling infant nutrition product, and we were the second best-selling brand
overall. In Tmall, we were the number three infant nutrition brand overall (English and China label
combined) and we were the number one CBEC flagship store.

Infant nutrition – Australia retailers and resellers
Our infant nutrition sales in Australia grew 9.5% delivering $352.0 million in revenue for the half.
We remain the market brand leader in Australian grocery and pharmacy channels and continue to
invest strongly behind our brand, with our level of advertising being the highest in the category.
The rate of growth in our English label channels in Australia and China reflects an evolution across
channels and in consumer behaviour. In this dynamic environment, it is pleasing to continue to
deliver impressive sales growth in CBEC as well as from Australian-sourced resellers.

Infant nutrition – China consumption share
In the latest 12-month data for Key & A, and B, C, D cities in China, our Kantar infant formula
consumption value share increased to 6.6%
7
from 5.4%
8
in the prior corresponding period. As
previously advised, while Kantar remains the best single metric for consumption, it does not fully
capture all consumption. This is due to the structure and definition of the panel, and the fact that it
does not have full geographic coverage. Accordingly, our view is that not all of our consumption
growth is captured, particularly in Stages 3 and 4.



7
Kantar Infant Formula market tracking of Key & A and BCD cities for 12 months ending 31 December 2019, by value.
8
Kantar Infant Formula market tracking of Key & A and BCD cities for 12 months ending 31 December 2018, by value.

5
Liquid milk
Our Australian fresh milk business continues to grow. In our most mature category, we achieved
double-digit revenue growth of 11.3% totalling $74.7 million. As a consequence, we achieved a
record market share of 11.3%. The a2 Milk™ brand continues to be the only fresh milk brand
ranged in all major supermarket chains and we are the highest brand advertiser in the fresh milk
category, maintaining very high brand awareness and loyalty figures which benefits the portfolio as
a whole.
Our liquid milk sales in China and other Asia segment grew 62.0% to $1.8 million for the half year.

Other nutritional products
For other nutritional products, sales grew 21.7% to $41.7 million the majority of which is recorded
in our ANZ segment.
a2 Smart Nutrition™ is showing positive signs of developing into a meaningful extension of our
infant and children’s nutritional portfolio, with early indications of consumer acceptance, and a
China label version launched in January 2020.
The re-launch of our nutritional product targeting mothers under the new branding of a2 Nutrition
for Mothers™ was successfully completed.
We have continued to experience delays in producing our a2 Milk™ powder blended with Mānuka
honey, with this scheduled to be available by 4Q20.
We continue to target growth opportunities for other nutritional products in China.

2. Reach meaningful scale in the USA

USA revenue more than doubled compared to the prior corresponding period, up to $28.0 million
and representing growth of 116%. We continue to gain momentum as we execute on our strategy
in the USA, building towards an initial milestone of US$100 million of annualised sales.
Given our increased investment in building brand awareness and distribution growth, we recorded
an EBITDA loss of $30.0 million.
Our sales performance was driven by improved in-store productivity as well as through expanding
our distribution footprint. Distribution grew to 17,500 stores, from 13,100 stores at the end of June
2019.
Increasing sales velocities with our most established retail customers accounted for over a quarter
of our sales growth
9
and velocities in key customers were approximately 27% higher than the prior
corresponding period.
Operational highlights in the half included strong performance in Costco, increasing same store
velocities in Walmart, increased penetration within Kroger through achieving national coverage;
bringing the brand to shelf in Safeway in the Pacific Northwest; and new distribution points in
Target, Giant Eagle and Fresh Thymes.
Leveraging the consumer and channel insights obtained through a strategic review completed in
2019, we introduced new packaging and launched a new TV advertising campaign, both of which
received positive feedback from the retail trade and is assisting in building brand awareness. We
have also improved our in-store presence to convert awareness to trial. All these changes have
contributed to increasing consumer offtake.

9
Most established customers defined as customers for >2 years. Based on 52-week period ended December 2019.

6
In July, we launched a2 Milk® Coffee Creamers which have been received positively and are
performing to plan. As consumer demand for our products build, and our distribution footprint
strengthens, we expect opportunities to launch additional new products will emerge.


3. Build towards sustainable brand leadership

Building brand value and increasing brand awareness through marketing investment remains an
important focus. Our investment in the period was consistent with 2H19 at $84.1 million. The
increase from the prior corresponding period was primarily a result of higher advertising spend in
China and the USA.
We have leveraged our deepened understanding of consumers and purchasing behaviour in China
to continuously improve our marketing mix which includes consumer advertising, in-store
activations and the development of a new brand creative platform, which was launched in
December 2019.
Similarly, in the USA we have leveraged our consumer insights to launch a new advertising
campaign and consumer website and invested in increased in-store activation.
In addition to consumer marketing, our brand value is supported by investment in research and
development programmes, an increased focus on sustainability, as well as initiatives to support the
communities in which we operate.
Supporting relevant independently managed scientific studies remains important as we build our
long-term brand proposition. In September 2019, the results of a clinical trial from 75 Chinese
children aged between five and six with mild to moderate milk discomfort or lactose intolerance
(confirmed via a urinary galactose test) were published. The study reported that replacing
conventional milk with a2 Milk™ “reduced gastrointestinal symptoms associated with milk
intolerance” in many subjects and led to “a corresponding improvement in an aspect of cognitive
performance” as measured using the Subtle Cognitive Impairment Test (SCIT)
10
. The study was
independently peer reviewed and published in the USA based Journal of Pediatric Gastroenterology
and Nutrition.
4. Deliver the organisation of the future

To support the execution of our overall Group strategy, we have continued to build capability
within the organisation. In 1H20 we introduced a number of new roles to complement existing
capabilities, particularly in-market in China, the USA, and within certain Group functions. We also
established several initiatives designed to enhance engagement and launched a revised
remuneration framework to align with our strategic direction.
Over the next two years we will be implementing new information technology systems to support
the existing organisation and provide for future growth.
We also utilised external resources to accelerate the delivery of certain outcomes and to
complement existing internal capabilities. As we improve internal capability, the composition and
level of external resourcing should moderate over time.



10
Xiaoyang S, Zailing L. Effects of Conventional Milk Versus Milk Containing Only A2 ß-Casein on Digestion in Chinese Children. J
Pediatr Gastroenterol Nutr. 2019 Jul 9.

7
Group strategic updates

Capital allocation
As part of the Board’s ongoing review of the most appropriate use of capital for the business, our intention
has been to prioritise investment in growth initiatives ahead of returning capital to shareholders.
Due to the increasing scale of our infant nutrition business, the Board considers it is now appropriate to
assess participation in manufacturing capacity and capability to complement our existing supply chain
relationships. Accordingly, we are presently evaluating opportunities to address this issue.
Leveraging our strategic partnerships
Key strategic partnerships remain a core element of our business model.
• China State Farm: As we continue implementing our infant nutrition strategy, China State Farm
Holding Shanghai Co., Ltd’s (China State Farm’s) strong capabilities in importation services and
product traceability as well as local market regulatory insights, will become even more important to
our shared success.
• Synlait Milk: We continue to be very well supported by Synlait in meeting increased demand and
our teams continue to work closely together to grow our respective businesses. In November 2019,
we extended our comprehensive manufacturing and supply arrangements to July 2025.
Additionally, in December 2019 Synlait announced it had received the infant formula registration
from the General Administration of Customs of the People’s Republic of China (GACC) for its
Auckland-based blending and canning facility. Synlait is now able to progress seeking infant formula
brand registration for China for this site.
• Fonterra: We continue to work with Fonterra on the development of milk pools in Australia and
New Zealand to build capacity to support future growth. Fonterra is already supplying us with
ingredients and our joint teams are working together to commercialise new opportunities. We
continue to be encouraged by the potential of this relationship.
Sustainability
In August 2019 we announced our goals as well as our formal commitments to:
• Support the global ambition of the Paris Agreement and a 2050 net zero emissions target;
• Work with our farmers to meet the standards set by the World Organisation for Animal Health and
avoid practices that contravene the Five Freedoms
11
;
• Continue to improve the very high standards of our animal welfare program;
• Execute on our smarter packaging goals for higher quality and lower environmental impact; and
• Innovate to become even more efficient in product processing.
In addition, we are undertaking a sustainability assessment of our total supply chain. This includes ensuring
we are compliant with modern slavery legislation.
We are also working towards implementing the Task Force on Climate-related Finance Disclosures (TCFD)
Recommendations within three years, including climate risk scenario planning and embedding climate risk
in our governance framework.
We are committed to supporting the communities in which we operate. As such, we recently announced
initiatives to support communities in Australia affected by the bushfires. Our donation in Australia was
aimed at providing funds to organisations providing front line emergency services. We were moved by the
impact of these events on communities, livelihoods and the environment across much of Australia and
inspired by those who supported, and continue to support, the recovery effort.

11
The Five Freedoms outline five aspects of animal welfare: freedom from hunger or thirst; discomfort; pain, injury or disease; fear
and distress; and freedom to express (most) normal behaviour.

8
We have developed an assistance and support package valued at NZ$3.0 million in response to the recent
coronavirus disease (COVID-19). This includes equal contributions for a product donation being dispatched
to frontline medical teams and families, a cash donation to the Shanghai Red Cross to support the areas
and people seriously affected, and funding to assist independent research to support the international
effort to develop a vaccine for the virus. Research funding has been provided to the University of
Queensland’s School of Chemistry and Molecular Biosciences and the Peter Doherty Institute for Infection
and Immunity (Doherty Institute).
Withdrawal from fresh milk operations in the UK
Further to our announcement in August 2019, we progressed with our withdrawal from fresh milk
operations in the UK to focus on the Group’s position in core regions. There have been no material financial
impacts.
From 1 July 2019, UK infant nutrition customers were transferred to our China and other Asia segment.
Board and management
Pip Greenwood was appointed as an independent non-executive director of the Company with effect from
1 July 2019 and elected by shareholders at the Annual Meeting in November 2019. Pip succeeded Peter
Hinton who retired on 30 June 2019.
In December 2019, former Managing Director and CEO, Geoffrey Babidge returned to the role of CEO on an
interim basis following the departure of Jayne Hrdlicka. A global search for a new CEO is underway and an
update will be provided at the appropriate time.
Race Strauss recently joined the business as our Chief Financial Officer.
Susan Massasso has elected to continue employment with the Company in the recently expanded role of
Chief Growth and Brand Officer.

9
Outlook

FY20
Overall for FY20, we anticipate continued strong revenue growth across our key regions supported by
increased marketing investment in China and the USA as well as the ongoing development of organisational
capability to support the execution of our strategy.
Globally, there is uncertainty around the potential impact to supply chains and consumer demand in China
resulting from COVID-19 and we continue to monitor the situation closely.
The health and wellbeing of our people is our primary focus and we have taken all measures to ensure our
staff in China are as safe as possible. We remain vigilant to the advice of relevant authorities.
Given the essential nature of our products for many Chinese families, demand is strong, particularly
through online and reseller channels, with revenue for the first two months of 2H20 above expectations.
However, this is a dynamic situation and at this stage we are unable to quantify the impact, either
positively or negatively, for the full year.
Notwithstanding this uncertainty, full year EBITDA margin is still anticipated to be in the range of 29-
30%. 2H20 EBITDA margin is therefore expected to be lower than 1H20. The improved price yield in 1H20 is
expected to be offset by:
• Increased COGS (including lactoferrin, milk price, and tamper-evident infant nutrition packaging)
• Planned increased levels of strategically important trade marketing activation in China
• Potential for increased supply chain costs resulting from COVID-19
• Phasing of marketing and capability investment weighted to 2H20; full year marketing investment
expected to be approximately $200 million, as previously communicated
• Potential impact from unfavourable foreign exchange movements (weaker AUD:NZD)

Given the COVID-19 situation, we are assessing the level of discretionary marketing investment and trade
marketing activation that can be effectively deployed in China for the remainder of the fiscal year.

Medium-term target
The Board considers it appropriate that the Company target an EBITDA margin in the order of 30% in the
medium-term. This assumes the market performance and mix of our products remains broadly consistent
and the competitive environment evolves as anticipated. We will keep the balance between growth and
investment under constant review.

10
Reconciliation of EBITDA to net profit after tax



Half Year Ended Half Year Ended

31-Dec-19 31-Dec-18

$ 000's $ 000's


Segment EBITDA 263,229 218,407
Depreciation & amortisation (1,769) (965)
EBIT 261,460 217,442
Net interest income 2,881 1,615
Income tax expense (79,415) (66,362)
Net profit after tax 184,926 152,695



Geoffrey Babidge
Chief Executive Officer
The a2 Milk Company Limited

For further information, please contact:
Investors / Analysts
David Akers
Head of Investor Relations
M +61 412 944 577
david.akers@a2milk.com


Media
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

---

The a2 Milk Company Limited
ARBN: 158 331 965
for the six months ended 31 December 2019
Interim
Report

Overview
Financial results for the half year
ended 31 December 2019 (NZ$)
Group performance

$806.7m
Revenue 32%
25.2c
Earnings per share (EPS)

$263.2m
EBITDA 21%
$160.6m
Operating cash flow
$184.9m
NPAT 21%
$618.4m
Cash on hand
Photography featured from
our recent advertising
campaign in Greater China
Contents
Operating and financial review 2
Financial statements 8
Directors’ declaration 8
Auditor’s review report 9
Consolidated statement
of comprehensive income 10
Consolidated statement
of changes in equity 11
Consolidated statement
of financial position 12
Consolidated statement
of cash flows 13
Notes to the interim financial
statements 14
Corporate directory 24
Regional highlights
1
100%
Infant nutrition China label
18,300
China store distribution

58%
Infant nutrition cross-
border e-commerce
11. 3%
Australian milk sales
US
116%
Milk sales growth
17, 5 0 0
Store distribution
Asia Pacific
1 Refer to the operating and financial review (from page 2) for source of information.
Product segment revenue
$105.8m
Liquid milk 27%
$659.2m
Infant nutrition 33%
$41.7m
Other nutrition 22%
Interim Report 1

Delivered strong financial results
Strategy execution gaining momentum
Summary of Group performance
The a2 Milk Company has made substantial gains in revenue and
earnings, and with strong performances in key product segments
of infant nutrition and liquid milk, and across core markets.
Our overall result reflects the continued growth in our
infant nutrition segment with sales totalling $659.2 million
for the period – an increase of 33.1% on the prior corresponding
period. In-line with our strategy, our strong growth in China
label infant nutrition products was particularly pleasing, with
sales of $146.7 million, an increase of 100%. We achieved this
while also continuing to achieve strong growth in our English
label infant nutrition products. During December 2019,
distributors requested additional product in advance of
Chinese New Year which effectively brought forward
approximately $8.0 million of sales from January 2020 to
December 2019.
We again achieved strong growth in our liquid milk businesses
in Australia and the USA, with sales across the Group
1
totalling
$104.4 million up 28.7%. Liquid milk sales in Australia were up
11.3% to $74.7 million and sales in the USA more than doubled
compared to 1H19, driven by improved sales velocity in
established stores as well as an expanded store footprint.
Our gross margin percentage
1,2
increased to 57.2%, benefiting
from a continued mix shift to infant formula, as well as improved
price yield.
We delivered an EBITDA margin of 32.6% which was better
than expected due to our stronger underlying gross margin.
Net cash flow from operating activities for the period was
$160.6 million representing a strong cash conversion rate.
Our closing cash position of $618.4 million reflects growth in
revenue and earnings, partially offset by increased
working capital.
Our balance sheet remains in a strong position with no debt
and a significant cash balance. This will continue to be important
to provide optionality in the execution of our growth strategy.
1 From continuing operations.
2 Gross margin percentage is calculated as revenue less cost of goods sold,
divided by revenue.
Delivering on our strategic priorities
and business objectives
We are pleased with the results of our strategy execution and
continue to be energised about our key products, core markets
and growth outlook.
We are committed to a focused approach to pursuing our
strategic growth priorities:
1. Maximise growth from existing products in core markets;
2. Broaden our product portfolio in core markets; and
3. Expand in other targeted markets.
With the benefit of the comprehensive work undertaken during
2019 to enhance our understanding of the consumer and sales
channels in our core markets, we have continued the increased
levels of investment in marketing and capability to execute our
growth plan.
In Australia, we have continued to build on our market leading
positions in fresh milk and infant nutrition, whilst leveraging this
to launch new products, such as a2 Smart Nutrition™,
demonstrating our commitment to innovation.
In Greater China, we remain focused on strengthening our
infant nutrition position in-market. It is pleasing to see our
investments in brand, trade activities and people driving strong
sales momentum.
In the USA, we continue to drive towards meaningful scale,
with sales more than doubling compared to 1H19. We
improved our in-store productivity and further expanded our
distribution footprint.
Our targeted exploration of new markets continues – in October
we launched infant formula in the city of Hong Kong and in
December we launched infant formula in Korea with our
partner, YuhanCARE (Yuhan).
Importantly, our strategic priorities translate into four
business objectives:
1. Deliver Asia Pacific sales strategy outcomes;
2. Reach meaningful scale in the USA;
3. Build towards sustainable brand leadership; and
4. Deliver the organisation of the future.
We are pleased with the progress we have made against each of
these business objectives in the first half and are confident that
orienting our organisation around these objectives will allow us
to capture near-term and longer-term growth opportunities.
1. Deliver Asia Pacific sales strategy outcomes
Our Asia Pacific business revenue was $777.4 million, up 30.0%,
with EBITDA of $345.4 million, up 30.2%. This included:
• ANZ segment revenue of $460.2 million, up 10.0%, with
EBITDA of $227.9 million, up 18.7%
• China & other Asia segment revenue of $317.2 million, up
76.7%, with EBITDA of $117.5 million, up 60.3%
• Revenue growth benefited from favourable pricing and
product mix
Infant nutrition
Our Asia Pacific infant nutrition portfolio encompasses
predominantly China and English label products. China label
infant nutrition products can be sold in-market in China, via
mother and baby stores (MBS), modern supermarkets and China
label e-commerce retail channels. English label products can be
sold through Australian retailers, Australian-sourced resellers
and cross border e-commerce (CBEC) channels. In addition, we
supply infant nutrition products into Hong Kong and Korea. Our
multichannel approach for our infant formula business gives us
the flexibility to meet consumer demands across regions and
through multiple distribution pathways.
Infant nutrition – China offline channels
Following a detailed strategic review in 2019, we stepped up
investment in our China label infant nutrition business
considerably in 2H19 and continued broadly at this level in 1H20.
We have also expanded our team in China, reviewed and
optimised relationships with distributors and are focusing on the
biggest opportunities for growth.
We are pleased our investments to deepen our understanding
of consumer and channel trends and the increased levels of
investment in marketing and capability development are
translating into accelerated growth in our China label business.
For the period, we achieved sales in a2 Platinum® China label
infant nutrition of $146.7 million, double the sales we achieved
in the prior corresponding period. In addition to driving in-store
productivity, we also expanded our footprint to 18,300 stores,
up from 16,400 stores at the end of 2H19. Furthermore, we
achieved our highest market value share in the MBS channel
during the period. These indicators give us confidence that our
strategy is on track.
We are committed to maximising our growth opportunities,
including through product innovation. We launched a China
label version of our Stage 4 product in December and recently
re-launched our Stages 1, 2 and 3 China label products with a
tamper-evident lid for additional product security. Our infant
nutrition portfolio is complemented by our other nutritional
products as we broaden our appeal to existing consumers and
seek to connect with new consumers.
Infant nutrition – Cross-border e-commerce
We delivered a2 Platinum® English label infant nutrition sales
of $158.7 million, up 57.8%. The results of the 11/11 China
e-commerce sales event were very positive. In JD.com, our
a2 Platinum® Stage 3 was the top selling infant nutrition
product, and we were the second best-selling brand overall. In
Tmall, we were the number three infant nutrition brand overall
(English and China label combined) and we were the number
one CBEC flagship store.
Infant nutrition – Australia retailers and resellers
Our infant nutrition sales in Australia grew 9.5% delivering
$352.0 million in revenue for the half. We remain the market
brand leader in Australian grocery and pharmacy channels and
continue to invest strongly behind our brand, with our level of
advertising being the highest in the category.
The rate of growth in our English label channels in Australia and
China reflects an evolution across channels and in consumer
behaviour. In this dynamic environment, it is pleasing to
continue to deliver impressive sales growth in CBEC as well as
from Australian-sourced resellers.
Infant nutrition – China consumption share
In the latest 12-month data for Key & A, and B, C, D cities in
China, our Kantar infant formula consumption value share
increased to 6.6%
3
from 5.4%
4
in the prior corresponding
period. As previously advised, while Kantar remains the best
single metric for consumption, it does not fully capture all
consumption. This is due to the structure and definition of the
panel, and the fact that it does not have full geographic
coverage. Accordingly, our view is that not all of our
consumption growth is captured, particularly in Stages 3 and 4.
3 Kantar Infant Formula market tracking of Key & A and BCD cities for
12 months ending 31 December 2019 by value.
4 Kantar Infant Formula market tracking of Key & A and BCD cities for
12 months ending 31 December 2018 by value.
Operating and financial review
Interim Report 3 2 The a2 Milk Company Limited
Operating and
financial review
Financial results for the half year ended 31 December 2019 (NZ$)

“ The a2 Milk Company has
made substantial gains in
revenue and earnings, and
with strong performances
in key product segments
of infant nutrition and
liquid milk, and across
core markets.”
Liquid milk
Our Australian fresh milk business continues to grow. In our
most mature category, we achieved double-digit revenue
growth of 11.3% totalling $74.7 million. As a consequence, we
achieved a record market share of 11.3%. The a2 Milk™ brand
continues to be the only fresh milk brand ranged in all major
supermarket chains and we are the highest brand advertiser in
the fresh milk category, maintaining very high brand awareness
and loyalty figures which benefits the portfolio as a whole.
Our liquid milk sales in China and other Asia segment grew
62.0% to $1.8 million for the half year.
Other nutritional products
For other nutritional products, sales grew 21.7% to $41.7 million
the majority of which is recorded in our ANZ segment.
a2 Smart Nutrition™ is showing positive signs of developing
into a meaningful extension of our infant and children’s
nutritional portfolio, with early indications of consumer
acceptance, and a China label version launched in January 2020.
The re-launch of our nutritional product targeting mothers
under the new branding of a2 Nutrition for Mothers™ was
successfully completed.
We have continued to experience delays in producing our
a2 Milk™ powder blended with Mānuka honey, with this
scheduled to be available by 4Q20.
We continue to target growth opportunities for other nutritional
products in China.
2. Reach meaningful scale in the USA
USA revenue more than doubled compared to the prior
corresponding period, up to $28.0 million and representing
growth of 116%. We continue to gain momentum as we
execute on our strategy in the USA, building towards an initial
milestone of US$100 million of annualised sales.
Given our increased investment in building brand awareness and
distribution growth, we recorded an EBITDA loss of $30.0 million.
Our sales performance was driven by improved in-store
productivity as well as through expanding our distribution
footprint. Distribution grew to 17,500 stores, from 13,100 stores
at the end of June 2019.
Increasing sales velocities with our most established retail
customers accounted for over a quarter of our sales growth
5

and velocities in key customers were approximately 27% higher
than the prior corresponding period.
5 Most established customers defined as customers for >2 years. Based on 52-
week period ended December 2019.
Operational highlights in the half included strong performance
in Costco, increasing same store velocities in Walmart, increased
penetration within Kroger through achieving national coverage;
bringing the brand to shelf in Safeway in the Pacific Northwest;
and new distribution points in Target, Giant Eagle and
Fresh Thymes.
Leveraging the consumer and channel insights obtained through
a strategic review completed in 2019, we introduced new
packaging and launched a new TV advertising campaign, both
of which received positive feedback from the retail trade and is
assisting in building brand awareness. We have also improved
our in-store presence to convert awareness to trial. All these
changes have contributed to increasing consumer offtake.
In July, we launched a2 Milk® Coffee Creamers which
have been received positively and are performing to plan.
As consumer demand for our products build, and our
distribution footprint strengthens, we expect opportunities
to launch additional new products will emerge.
3. Build towards sustainable brand leadership
Building brand value and increasing brand awareness through
marketing investment remains an important focus. Our
investment in the period was consistent with 2H19 at
$84.1 million. The increase from the prior corresponding period
was primarily a result of higher advertising spend in China and
the USA.
We have leveraged our deepened understanding of consumers
and purchasing behaviour in China to continuously improve our
marketing mix which includes consumer advertising, in-store
activations and the development of a new brand creative
platform, which was launched in December 2019.
Similarly, in the USA we have leveraged our consumer insights to
launch a new advertising campaign and consumer website and
invested in increased in-store activation.
In addition to consumer marketing, our brand value is supported
by investment in research and development programmes, an
increased focus on sustainability, as well as initiatives to support
the communities in which we operate.
Supporting relevant independently managed scientific studies
remains important as we build our long-term brand proposition.
In September 2019, the results of a clinical trial from 75 Chinese
children aged between five and six with mild to moderate milk
discomfort or lactose intolerance (confirmed via a urinary
galactose test) were published. The study reported that
replacing conventional milk with a2 Milk™ “reduced
gastrointestinal symptoms associated with milk intolerance” in
many subjects and led to “a corresponding improvement in an
aspect of cognitive performance” as measured using the Subtle
Cognitive Impairment Test (SCIT)
6
. The study was independently
peer reviewed and published in the USA based Journal of
Pediatric Gastroenterology and Nutrition.
4. Deliver the organisation of the future
To support the execution of our overall Group strategy, we have
continued to build capability within the organisation. In 1H20
we introduced a number of new roles to complement existing
capabilities, particularly in-market in China, the USA, and within
certain Group functions. We also established several initiatives
designed to enhance engagement and launched a revised
remuneration framework to align with our strategic direction.
Over the next two years we will be implementing new
information technology systems to support the existing
organisation and provide for future growth.
We also utilised external resources to accelerate the delivery of
certain outcomes and to complement existing internal
capabilities. As we improve internal capability, the composition
and level of external resourcing should moderate over time.
Group strategic updates
Capital allocation
As part of the Board’s ongoing review of the most appropriate
use of capital for the business, our intention has been to
prioritise investment in growth initiatives ahead of returning
capital to shareholders.
Due to the increasing scale of our infant nutrition business, the
Board considers it is now appropriate to assess participation in
manufacturing capacity and capability to complement our
existing supply chain relationships. Accordingly, we are presently
evaluating opportunities to address this issue.
Leveraging our strategic partnerships
Key strategic partnerships remain a core element of our business
model.
• China State Farm: As we continue implementing our infant
nutrition strategy, China State Farm Holding Shanghai Co.,
Ltd’s (China State Farm’s) strong capabilities in importation
services and product traceability as well as local market
regulatory insights, will become even more important to our
shared success.
6 Xiaoyang S, Zailing L. Effects of Conventional Milk Versus Milk Containing
Only A2 ß-Casein on Digestion in Chinese Children. J Pediatr Gastroenterol
Nutr. 2019 Jul 9.
• Synlait Milk: We continue to be very well supported by
Synlait in meeting increased demand and our teams continue
to work closely together to grow our respective businesses.
In November 2019, we extended our comprehensive
manufacturing and supply arrangements to July 2025.
Additionally, in December 2019 Synlait announced it had
received the infant formula registration from the General
Administration of Customs of the People's Republic of China
(GACC) for its Auckland-based blending and canning facility.
Synlait is now able to progress seeking infant formula brand
registration for China for this site.
• Fonterra: We continue to work with Fonterra on the
development of milk pools in Australia and New Zealand
to build capacity to support future growth. Fonterra is
already supplying us with ingredients and our joint teams
are working together to commercialise new opportunities.
We continue to be encouraged by the potential of this
relationship.
Sustainability
In August 2019 we announced our goals as well as our formal
commitments to:
• Support the global ambition of the Paris Agreement and a
2050 net zero emissions target;
• Work with our farmers to meet the standards set by the
World Organisation for Animal Health and avoid practices
that contravene the Five Freedoms
7
;
• Continue to improve the very high standards of our animal
welfare program;
• Execute on our smarter packaging goals for higher quality
and lower environmental impact; and
• Innovate to become even more efficient in product
processing.
In addition, we are undertaking a sustainability assessment of
our total supply chain. This includes ensuring we are compliant
with modern slavery legislation.
7 The Five Freedoms outline five aspects of animal welfare: freedom from
hunger or thirst; discomfort; pain, injury or disease; fear and distress; and
freedom to express (most) normal behaviour.
Operating and financial review
Interim Report 5 4 The a2 Milk Company Limited

We are also working towards implementing the Task Force on
Climate-related Finance Disclosures (TCFD) Recommendations
within three years, including climate risk scenario planning and
embedding climate risk in our governance framework.
We are committed to supporting the communities in which we
operate. As such, we recently announced initiatives to support
communities in Australia affected by the bushfires. Our
donation in Australia was aimed at providing funds to
organisations providing front line emergency services. We were
moved by the impact of these events on communities,
livelihoods and the environment across much of Australia and
inspired by those who supported, and continue to support, the
recovery effort.
We have developed an assistance and support package valued
at NZ$3.0 million in response to the recent coronavirus disease
(COVID-19). This includes equal contributions for a product
donation being dispatched to frontline medical teams and
families, a cash donation to the Shanghai Red Cross to support
the areas and people seriously affected, and funding to assist
independent research to support the international effort to
develop a vaccine for the virus. Research funding has been
provided to the University of Queensland’s School of Chemistry
and Molecular Biosciences and the Peter Doherty Institute for
Infection and Immunity (Doherty Institute).
Withdrawal from fresh milk operations in the UK
Further to our announcement in August 2019, we progressed
with our withdrawal from fresh milk operations in the UK to
focus on the Group’s position in core regions. There have been
no material financial impacts.
From 1 July 2019, UK infant nutrition customers were
transferred to our China and other Asia segment.
Board and management
Pip Greenwood was appointed as an independent non-
executive director of the Company with effect from 1 July 2019
and elected by shareholders at the Annual Meeting in November
2019. Pip succeeded Peter Hinton who retired on 30 June 2019.
In December 2019, former Managing Director and CEO,
Geoffrey Babidge returned to the role of CEO on an interim
basis following the departure of Jayne Hrdlicka. A global search
for a new CEO is underway and an update will be provided at
the appropriate time.
Race Strauss recently joined the business as our
Chief Financial Officer.
Susan Massasso has elected to continue employment with the
Company in the recently expanded role of Chief Growth and
Brand Officer.
Outlook
FY20
Overall for FY20, we anticipate continued strong revenue growth
across our key regions supported by increased marketing
investment in China and the USA as well as the ongoing
development of organisational capability to support the execution
of our strategy.
Globally, there is uncertainty around the potential impact to supply
chains and consumer demand in China resulting from COVID-19
and we continue to monitor the situation closely.
The health and wellbeing of our people is our primary focus and we
have taken all measures to ensure our staff in China are as safe as
possible. We remain vigilant to the advice of relevant authorities.
Given the essential nature of our products for many Chinese
families, demand is strong, particularly through online and reseller
channels, with revenue for the first two months of 2H20 above
expectations. However, this is a dynamic situation and at this stage
we are unable to quantify the impact, either positively or
negatively, for the full year.
Notwithstanding this uncertainty, full year EBITDA margin is still
anticipated to be in the range of 29-30%. 2H20 EBITDA margin is
therefore expected to be lower than 1H20. The improved price
yield in 1H20 is expected to be offset by:
• Increased COGS (including lactoferrin, milk price, and tamper-
evident infant nutrition packaging)
• Planned increased levels of strategically important trade
marketing activation in China
• Potential for increased supply chain costs resulting from COVID-19
• Phasing of marketing and capability investment weighted to
2H20; full year marketing investment expected to be
approximately $200 million, as previously communicated
• Potential impact from unfavourable foreign exchange
movements (weaker AUD:NZD)
Given the COVID-19 situation, we are assessing the level of
discretionary marketing investment and trade marketing activation
that can be effectively deployed in China for the remainder of the
fiscal year.
Medium-term target
The Board considers it appropriate that the Company target an
EBITDA margin in the order of 30% in the medium-term. This
assumes the market performance and mix of our products remains
broadly consistent and the competitive environment evolves as
anticipated. We will keep the balance between growth and
investment under constant review.
Reconciliation of EBITDA to net profit after tax
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure. The Company believes that it provides
investors with a comprehensive understanding of the underlying performance of the business.
Half year ended
31- Dec-19
$’000
Half year ended
31-Dec-18
$’000
Group EBITDA 263,229 218,407
Depreciation and amortisation (1,769) (965)
EBIT 261,460 217, 4 4 2
Interest income 3,055 1,615
Interest expense (174) –
Income tax expense (79,415) (66,362)
Net profit after tax 184,926 152,695
Interim Report 7
Operating and financial review
6 The a2 Milk Company Limited

Directors’ declaration
for the six months ended 31 December 2019
The directors of The a2 Milk Company Limited are pleased to present the interim report for the six months ended 31 December 2019.
The interim report is unaudited and was authorised for issue by the directors on 26 February 2020.
Signed on behalf of the Board by:
David Hearn Julia Hoare
Chair Deputy Chair and Chair of the Audit & Risk Management Committee


26 February 2020
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au

Auditor’s review report
for the six months ended 31 December 2019
Interim Report 9 8 The a2 Milk Company Limited
Financial
statements

Consolidated statement of comprehensive income (Unaudited)
for the six months ended 31 December 2019

Notes
31 Dec 19
$’000
31 Dec 18
$’000
Continuing operations
Sales 804,946610,629
Cost of sales (344,282) (270,634)
Gross margin 460,664339,995
Other revenue374235
Distribution expenses(19, 811)(14,548)
Administrative expenses 5(4 4,18 9)(35,120)
Marketing expenses (83,861)(4 4,721)
Other expenses 5(4 8,421)(26,18 6)
Operating profit264,756219,655
Finance income 3,048 1,592
Finance costs (195) (74)
Net finance income 2,853 1,518
Profit before tax 267,609 221,173
Income tax expense (79,415) (6 6,19 0)
Profit from continuing operations 18 8 ,19 4 154,983
Discontinued operation
Loss from discontinued operation, net of tax4 (3,268) (2,288)
Profit for the period 184,926 152,695
Other comprehensive income
Items that may be reclassified to profit or loss:
Foreign currency translation loss (973) (3,491)
Items not to be reclassified to profit or loss:
Listed investment fair value loss8 (9,664) (68,625)
Total comprehensive income 174,289 80,579
Earnings per share
Basic (cents per share) 25.15 20.85
Diluted (cents per share) 24.90 20.52
Earnings per share – continuing operations
Basic (cents per share) 25.59 21.16
Diluted (cents per share) 25.34 20.83
The accompanying notes form part of these financial statements.
Consolidated statement of changes in equity (Unaudited)
for the six months ended 31 December 2019
Six months ended
31 December 2019
Foreign
currency
translation
reserve
$’000
Fair value
revaluation
reserve
$’000
Employee
equity
settled
payments
reserve
$’000
Total
reserves
$’000
Retained
earnings
$’000
Share
capital
$’000
Total
equity
$’000
Balance 1 July 2019(15,341)59,72320,5356 4,917578,44214 4,4957 8 7, 8 5 4
Profit after tax for the period––––184,926–184,926
Foreign currency translation
differences – foreign operations
(973)––(973)––(973)
Listed investment – fair value
movement
–(9,664)–(9,664)––(9,664)
Total comprehensive income for the
period(973)(9,664)–(10,637)184,926–174,289
Transactions with owners in their
capacity as owners:
Issue of ordinary shares–––––525525
Share issue costs–––––(32)(32)
Share-based payments––2,4042,404––2,404
Income tax––9,5469,546––9,546
Total transactions with owners––11,9 5 011,9 5 0–49312,4 43
Balance 31 December 2019(16,314)50,05932,48566,230763,36814 4,988974,586
Six months ended
31 December 2018
Foreign
currency
translation
reserve
$’000
Fair value
revaluation
reserve
$’000
Employee
equity
settled
payments
reserve
$’000
Total
reserves
$’000
Retained
earnings
$’000
Share
capital
$’000
Total
equity
$’000
Balance 1 July 2018(11,022)122,11312,351123,4 42290,701141,566555,709
Profit after tax for the period––––152,695–152,695
Foreign currency translation
differences – foreign operations
(3,491)––(3,491)––(3,491)
Listed investment – fair value
movement
–(68,625)–(68,625)––(68,625)
Total comprehensive income for the
period(3,491)(68,625)–( 7 2,116 )152,695–80,579
Transactions with owners in their
capacity as owners:
Issue of ordinary shares–––––1,8281,828
Share issue costs–––––(42)(42)
Share-based payments––5,9045,904––5,904
Total transactions with owners––5,9045,904–1,7867, 6 9 0
Balance 31 December 2018(14,513)53,48818,2555 7, 2 3 0443,396143,352643,978
The accompanying notes form part of these financial statements.
Financial statements
Interim Report 11 10 The a2 Milk Company Limited

Consolidated statement of financial position (Unaudited)
as at 31 December 2019
Notes
31 Dec 19
$’000
30 Jun 19
$’000
Assets
Current assets
Cash and short-term deposits618,420464,805
Trade and other receivables71,79466,248
Prepayments55,88349,693
Inventories7118 ,16 2108,453
Total current assets864,2596 8 9,19 9
Non-current assets
Property, plant and equipment18,20710,296
Intangible assets12,98612,985
Other financial assets827 7,14 3286,807
Deferred tax assets16,9107, 6 8 3
Total non-current assets325,246317,771
Total assets1,189,5051,006,970
Liabilities
Current liabilities
Trade and other payables18 9,120173,74 8
Customer contract liabilities5,8641,431
Lease liabilities1,374–
Income tax payable12,18 643,710
Total current liabilities208,544218,889
Non-current liabilities
Trade and other payables267227
Lease liabilities6,10 8–
Total non-current liabilities6,375227
Total liabilities214,919219,116
Net assets974,586787,854
Equity attributable to owners of the Company
Share capital 614 4,98814 4,495
Retained earnings 763,368578,442
Reserves66,2306 4,917
Total equity974,586787,854
The accompanying notes form part of these financial statements.
Consolidated statement of cash flows (Unaudited)
for the six months ended 31 December 2019
Notes
31 Dec 19
$’000
31 Dec 18
$’000
Cash flows from operating activities
Receipts from customers810,788614,674
Payments to suppliers and employees(5 43,169)(424,049)
Interest received3,0551,615
Interest paid (174)–
Taxes paid(109,945)(79,943)
Net cash inflow from operating activities9160,555112, 297
Cash flows from investing activities
Payments for property, plant and equipment(1,655)(1,755)
Payments for intangible assets(216)(640)
Payment for listed investment–(162,335)
Net cash outflow from investing activities(1,871)(164,730)
Cash flows from financing activities
Payments of lease principal(677)–
Proceeds from issue of equity shares64931,786
Net cash (outflow)/ inflow from financing activities(184)1,786
Net increase/(decrease) in cash and short-term deposits158,50 0(50,647)
Cash and short-term deposits at the beginning of the period464,805340,455
Effect of exchange rate changes on cash(4,885)(1,876)
Cash and short-term deposits at the end of the period618,420287,932
The accompanying notes form part of these financial statements.
Financial statements
Interim Report 13 12 The a2 Milk Company Limited

1. Basis of preparation (cont.)
Adoption of NZ IFRS 16: Leases (cont.)
Accounting policy
A right-of-use asset and a lease liability are recognised at the lease commencement date.
The right-of-use asset is initially measured at cost, and subsequently at cost less accumulated depreciation as the asset is written off over the
term of the lease, and impairment losses, and any adjustments for remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments payable from the commencement date, discounted using
the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the
Group uses its incremental borrowing rate as the discount rate.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured
when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected
to be payable, or changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised.
The Group has applied judgement to determine the lease term for some lease contracts that include renewal options. This assessment
impacts the lease term, which may significantly affect the amount of lease liabilities and right-of-use assets recognised.
Transition
On transition lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group’s incremental
borrowing rate as at 1 July 2019. Right-of-use assets were measured at an amount equal to the lease liability, less accrued lease payments
as at 30 June 2019.
The Group used the following practical expedients when applying NZ IFRS 16:
• Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining.
• Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
Impacts on transition
The impact of transition to NZ IFRS 16 is summarised below:
$’0001 July 2019
Right-of-use assets presented in property, plant and equipment
7, 8 6 9
Lease accruals as at 30 June 2019, set off against right-of-use assets recognised 236
Lease liabilities(8 ,105)
When measuring lease liabilities, the Group discounted lease payments using its incremental borrowing rates at 1 July 2019. The weighted-
average rate applied was 3.29%.
$’0001 July 2019
Operating lease commitments at 30 June 2019 as disclosed in the Group’s consolidated financial statements10,145
Discounted using incremental borrowing rates as at 1 July 2019(1,370)
Recognition exemption for leases with less than 12 months of lease term at transition
(670)
Lease liabilities recognised at 1 July 20198 ,105
Notes to the interim financial statements
for the six months ended 31 December 2019
1. Basis of preparation
The a2 Milk Company Limited (the Company) and its subsidiaries (together the Group) is a for-profit entity incorporated and domiciled in
New Zealand.
The Company is registered in New Zealand under the Companies Act 1993, and is an FMC reporting entity under the Financial Markets
Conduct Act 2013. The Company is also registered as a foreign company in Australia under the Corporations Act 2001 (Cth, Australia). The
shares of The a2 Milk Company Limited are publicly traded on the New Zealand Stock Exchange (NZX), the Australian Securities Exchange
(ASX) and Chi-X Australia (Chi-X). The financial report is presented in New Zealand dollars, and all values are rounded to the nearest
thousand ($’000), unless otherwise indicated.
The principal activity of the Company is the sale of branded products in targeted markets made with milk from cows that produce milk
naturally containing only the A2 protein type.
These consolidated financial statements were authorised for issue by the directors on 26 February 2020.
Statement of compliance
These interim financial statements have not been audited. The interim financial statements have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand, comply with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting,
and have been the subject of a review by the auditors.
This interim report should be read in conjunction with the Group’s annual report for the year ended 30 June 2019, available at
www.thea2milkcompany.com/investor-centre/results.
The same accounting policies and methods of computation are followed in this interim report as were applied in the preparation of the
Group’s financial statements for the year ended 30 June 2019, other than the changes arising from the adoption of NZ IFRS 16: Leases,
noted below.
Certain comparative amounts have been restated to conform with the current period’s presentation.
Changes in significant accounting policies
The Group has applied all of the new and revised Standards and Interpretations issued by the New Zealand External Reporting Board that
are relevant to the Group’s operations and effective for the current accounting period. Other than the adoption of NZ IFRS 16: Leases, their
application has not had any material impact on the Group’s assets, profits or earnings per share for the half-year ended 31 December 2019.
Adoption of NZ IFRS 16: Leases
The Group has adopted this standard from 1 July 2019, using the modified retrospective transition method, under which the cumulative
effect of initial application, if any, is recognised in retained earnings at 1 July 2019, with no restatement of prior periods.
The standard introduces a single, on-balance sheet accounting model for lessees. Right-of-use assets are recognised representing the
lessee’s right to use the underlying leased assets, together with lease liabilities representing the obligation to make lease payments.
The Group previously recognised operating leases for office and industrial premises, motor vehicles and equipment. On transition to NZ IFRS
16 the Group recognises right-of-use assets and lease liabilities on balance sheet for most of these leases, but has elected not to recognise
on balance sheet leases of low-value assets and those leases with a remaining life on transition of less than 12 months.
Carrying amounts of right-of-use assets in property, plant and equipment:
$’000Leased propertyPlant and equipmentOffice and computerTotal
Recognised 1 July 2019
7, 4 9 9314567, 8 6 9
Balance 31 December 20196,849313467, 2 0 8
Financial statements
Interim Report 15 14 The a2 Milk Company Limited

1. Basis of preparation (cont.)
Adoption of NZ IFRS 16: Leases (cont.)
Impacts for the period
Under NZ IFRS 16 the Group has recognised depreciation and interest costs, instead of operating lease expense. During the six months
ended 31 December 2019, the Group recognised $714,000 of depreciation charges and $162,000 of interest costs.
New standards and interpretations not yet adopted
There are no new standards and interpretations that are issued, but not yet effective as at 31 December 2019, that are expected to have a
material impact on the Group in current or future reporting periods.
2. Operating segments
The Group’s key performance measures are segment revenue and segment results before interest, tax, depreciation and amortisation
(Segment EBITDA, a non-GAAP measure). Further information and analysis of performance can be found in the Operating and financial
review, which forms part of this interim report.
For management purposes, the Group is organised into business units based on geographical location along with a corporate function, and
has four reportable operating segments as follows:
• The Australia and New Zealand segment receives external revenue from infant formula, milk and other dairy products, along with royalty
and licence fee income.
• The China and other Asia segment receives external revenue from infant formula, milk and other dairy products.
• The USA segment receives external revenue from milk sales.
• The UK segment (discontinued operation, refer Note 4).
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation
and performance assessment. Segment performance is assessed on segment EBITDA and is measured in conformity with the accounting
policies adopted for preparing and presenting the financial statements of the Group.
From 1 July 2019, infant formula sales previously reported in the UK segment are allocated to the China and other Asia segment.
Comparative information for the six months ended 31 December 2018 has been restated to reflect the change in allocation.
2. Operating segments (cont.)
Six months to
31 December 2019Continuing operations
Australia and
New Zealand
China and
other AsiaUSATotal
Discontinued
operation
UKTotal
$’000$’000$’000$’000$’000$’000
Consolidated sales459,851317,14 027, 9 55804,9461,397806,343
Other revenue 35420–374–374
Reportable segment
revenue460,205317,16 027,955805,3201,397806,717
Reportable segment
results (Segment EBITDA)227,943117, 470(30,006)315,407(3,239)312 ,16 8
Corporate EBITDA(48,939)–(48,939)
Group EBITDA266,468(3,239)263,229
Reconciliation to consolidated statement of comprehensive income
Interest income 3,055
Interest expense(174)
Depreciation and
amortisation(1,769)
Income tax expense(79,415)
Consolidated profit after tax184,926
Six months to
31 December 2018Continuing operations
Australia and
New Zealand
China and
other AsiaUSATotal
Discontinued
operation
UKTotal
$’000$’000$’000$’000$’000$’000
Consolidated sales418 , 211179,45912,959610,6292,246612,875
Other revenue 235––235–235
Reportable segment
revenue418,446179,45912,959610,8642,246613,110
Reportable segment results
(Segment EBITDA)191,95373,278(17, 277)247,95 4(2 ,126)245,828
Corporate EBITDA( 27, 4 21)–( 27, 4 21)
Group EBITDA220,533(2,126)218,407
Reconciliation to consolidated statement of comprehensive income
Interest income 1,615
Depreciation and amortisation(965)
Income tax expense(66,362)
Consolidated profit after tax152,695
Notes to the interim financial statements
for the six months ended 31 December 2019 (continued)
Financial statements
Interim Report 17 16 The a2 Milk Company Limited

3. Revenue
Disaggregation of revenue
In the following table, revenue is disaggregated by geographical location (reportable segments) and major product types.
Six months to
31 December 2019Continuing operations
Australia and
New Zealand
China and
other AsiaUSATotal
Discontinued
operation
UKTotal
$’000$’000$’000$’000$’000$’000
Infant formula352,0363 07, 2 0 2–659,238–659,238
Liquid milk74,6821,77827, 9 5510 4,4151,397105,812
Other33,4878 ,18 0–41,667–41,667
460,205317,16 027, 9 55805,3201,39780 6,717
Six months to
31 December 2018Continuing operations
Australia and
New Zealand
China and
other AsiaUSATotal
Discontinued
operation
UKTotal
$’000$’000$’000$’000$’000$’000
Infant formula321,557173,924–495,481–495,481
Liquid milk6 7, 07 71,09712,95981,1332,24683,379
Other29,8124,438–34,250–34,250
418,4 46179,45912,959610,8642,246613,110
4. Results of discontinued operation
On 20 August 2019, the Board announced its decision to withdraw from fresh milk operations in the UK (reported in the UK segment) to
focus instead on strengthening the Group’s position in core regions.
All the UK fresh milk trading operations ceased in the period.
31 Dec 19
$’000
31 Dec 18
$’000
Results
Revenue1,3972,246
Expenses(4,670)(4,383)
Results from operating activities(3,273)(2,137 )
Net finance income521
Income tax–(172)
Results from operating activities, net of tax(3,268)(2,288)
Earnings per share
Basic and diluted (cents per share)(0.44)(0.31)
Cash flow
Operating(2,824)(4,099)
Investing–(35)
Net cash outflow for the period(2,824)(4,13 4)
5. Administrative and other expenses
31 Dec 19
$’000
31 Dec 18
$’000
The following items of expenditure are included in administrative expenses:
Salary and wage costs29,92120,737
Equity settled share-based payments2,4045,904
Salary and wage costs include amounts provided related to the previous CEO
The following items of expenditure are included in other expenses:
Professional service fees19,14 09,981
Depreciation and amortisation1,733952
Patents, trademarks and research and development3,5002,853
Carbon credits4,576–
The value of offsets incurred in the period includes credits purchased to offset
emissions for the year ended 30 June 2019, and amounts accrued for the six
months to 31 December 2019.
Notes to the interim financial statements
for the six months ended 31 December 2019 (continued)
Financial statements
Interim Report 19 18 The a2 Milk Company Limited

6. Share capital
Movements in contributed equity:Number of sharesShare Capital $’000
Fully paid ordinary shares:
Balance 30 June 2019735,048,40514 4,495
Movements in the period:
Exercise of options700,0004 41
Gift offer3,693–
Share match program6,31684
Vesting of time-based rights122,18 4–
Share issue costs–(32)
8 32,193493
Balance 31 December 2019735,880,59814 4,988
7. Inventories
31 Dec 19
$’000
30 Jun 19
$,000
Raw materials 12,0189,933
Finished goods 71,81459,556
Goods in transit34,33038,964
Total inventories at the lower of cost and net realisable value118 ,16 2108,453
Movements in goods in transit balances result from the timing of shipments of infant formula and milk powder products from New Zealand
to Australia and China.
8. Financial assets and liabilities
Other financial assets of $277,143,000 (30 June 2019: $286,807,000) consist of shares in Synlait Milk Limited (Synlait), a dairy processing
company listed on the New Zealand Stock Exchange and the Australian Securities Exchange.
This listed investment is the only financial instrument carried by the Group at fair value and is classified at fair value through other
comprehensive income; valued using Level 1 valuation inputs: quoted prices (unadjusted) in active markets for identical assets or liabilities.
A fair value (loss) of $9,664,000 was recognised for the period.
The carrying amounts of cash and short-term deposits, and trade and other receivables and payables are a reasonable approximation of
their fair values.
9. Reconciliation of after tax profit with net cash flows from operating activities
31 Dec 19
$’000
31 Dec 18
$’000
Net profit for the period184,926152,695
Adjustments for non-cash items:
Depreciation and amortisation 1,769965
Share-based payments2,4045,904
Net foreign exchange loss/(gain)4,025(929)
Deferred tax319948
Changes in working capital:
Trade and other receivables(5,546)(17, 27 2)
Prepayments(6,19 0)(12,092)
Inventories(9,709)(8,648)
Trade and other payables15,6 4 8(615)
Customer contract liabilities4,43310,979
Income tax payable(31,524)(19,638)
Net cash inflow from operating activities160,555112, 297
Notes to the interim financial statements
for the six months ended 31 December 2019 (continued)
Interim Report 21
Financial statements
20 The a2 Milk Company Limited

10. Share-based payments
Long-term incentives (LTI)
The LTI plan is designed to retain and motivate senior executives and management to achieve the Group’s long term strategic goals by
providing rewards that align the interests of the executives and management with shareholders. Performance rights and time-based rights
are currently issued under the LTI plan.
During FY19 a revised remuneration policy for the Group was finalised. This review resulted in the temporary deferral of the LTI plan for
participating Group employees in the 2019 financial year.
During the period the Board authorised the issue of 959,941 performance rights, and 198,306 time-based rights to senior employees under
the LTI plan.
Performance rights
To offset the deferral of the LTI programme in FY19, the performance rights issued in the period are in two tranches, with differing
performance periods and performance hurdles as set out below.
The performance rights vest subject to:
• Continuing employment.
• Minimum performance hurdles of both:
• A minimum diluted earnings per share (EPS) compound annual growth rate (CAGR) increase of 15% over the performance period
(E-CAGR); and
• A minimum normalised sales CAGR increase of 15% over the performance period (S-CAGR).
• No awards will vest if E-CAGR or S-CAGR is less than 15% over the respective performance periods.
• 50% of the awards will vest if E-CAGR and S-CAGR of 15% is achieved, up to a maximum of 100% of the award vesting if S-CAGR of
either 22% or more, or 25% or more is achieved, as follows:
Performance
rights grants:Performance periodEPS hurdleNormalised sales hurdles
50%85%100%
Tranche 1
384,783 rights2 years to 30 June 202115%15%20%25%
Tranche 2
575,158 rights3 years to 30 June 202215%15%18.5%22%
Diluted earnings per share are as reported in the Company’s Annual Report in respect of that financial year.
Normalised sales in respect of a financial year, means sales plus such additional revenue or income items less such unusual and one-off items
(in each case, as may be determined by the Board in its absolute discretion) based on relevant financial information reported in the
Company’s Annual Report in respect of that financial year.
Notes to the interim financial statements
for the six months ended 31 December 2019 (continued)
10. Share-based payments (cont.)
Time-based rights
Vesting of the time-based rights issued in the period is subject to continuing employment, with no other performance conditions, vesting as
follows:
Number of time-based rights granted:Grant datesVesting dates
9,86819 Nov 201921 Aug 2020
94,21919 Nov 201924 Aug 2020
94,21919 Nov 201923 Aug 2021
198,306
No amount is payable upon vesting of the performance and time-based rights and conversion to shares. Each exercised right is an
entitlement to one fully paid ordinary share in the Company.
Fair value of performance and time-based rights
The fair value of services received in return for performance and share-based rights granted to employees is measured by reference to the
fair value of the rights granted. The estimate of the fair value of the services received is measured by reference to the vesting conditions
specific to the grant based on a simplified Black-Scholes option pricing model.
Fair value of performance and time-based rights granted during the
period and assumptionsPerformance rightsTime-based
Tranche 1Tranche 2
Grant date19 Nov 1919 Nov 1919 Nov 19
Fair value at measurement date$14.03$13.8 6$14.0 8
Share price at grant date$14 .12$14 .12$14 .12
Performance rights life1.75yrs2.76yrs–
Other employee equity schemes
In the period, employees not participating in the LTI plan were invited to participate in the following new schemes:
• Gift offer: employees received Company shares to the value of approximately A$500 each.
• Share Match Program: employees undertaking to purchase Company shares for a minimum value of A$200 to a maximum value of
A$2,000 up to 30 September 2020 from their after-tax pay will receive matching shares from the Company equal to the number of
shares acquired and retained under the scheme, subject to continuing employment up to September 2021.
Amounts recognised in the consolidated statement of comprehensive income
During the period a $2,404,000 expense was recognised in the consolidated statement of comprehensive income for equity settled
share-based payment awards (2018: $5,904,000).
11. Subsequent events
As at 31 December 2019 the market value of the Company’s investment in Synlait Limited was $277,143,000 ($8.89 per share). As at
25 February 2020 the market value has decreased to $197,336,000 ($6.33 per share). The investment is measured at fair value through other
comprehensive income so that any changes in market value are recognised through the fair value revaluation reserve, with no effect on
profit or loss.
No other matters or circumstances have arisen since the end of the period which have significantly affected or may significantly affect the
operations, the result of these operations or state of affairs of the Group in subsequent periods.
Operating and financial review
Interim Report 23 22 The a2 Milk Company Limited

Company
The a2 Milk Company Limited
Level 10
51 Shortland Street
Auckland 1010
New Zealand
New Zealand share registry
Link Market Services Limited
PO Box 91976
Victoria Street West
Au ckla n d 114 2
New Zealand
Telephone: +64 9 375 5998
Australian share registry
Link Market Services Limited
Locked Bag A14
Sydney South NSW 1235
Australia
Telephone: +61 1300 554 474
Auditor
Ernst & Young
200 George Street
Sydney NSW 2000
Australia
Registered offices
Level 10
51 Shortland Street
Auckland 1010
New Zealand
Level 4
182 Blues Point Road
McMahons Point NSW 2060
Australia
Telephone: +61 2 9697 7000
Corporate website
www.thea2milkcompany.com
Company directors
David Hearn (Chair and Non-Executive Director)
Julia Hoare (Deputy Chair and Independent, Non-Executive Director)
Pip Greenwood (Independent, Non-Executive Director)
Warwick Every-Burns (Independent, Non-Executive Director)
Jesse Wu (Independent, Non-Executive Director)
Corporate
directory
Interim Report 25 24 The a2 Milk Company Limited
The
A2 protein
difference
Typical cow herds
produce conventional
milk containing a mix of
A1 and A2 protein types
Originally all cows
produced milk
containing only
the A2 protein
type
Genetic variation has resulted in mixed
herds over time
Our branded milk is
sourced from herds
producing milk naturally
containing only the
A2 protein type and no A1
Conventional cows’ milk
contains two main types
of beta casein protein,
A2 protein and A1 protein
– our branded milk is
different from conventional
cows’ milk because it comes
from cows selected to
naturally produce only the
A2 protein type and no A1.
Our milk is comparable to
conventional cows’ milk in
other respects.
Our branded milk is naturally
occurring and not a product
of genetic engineering or
technological processes.
Many consumers and healthcare
professionals report that certain
people who experience challenges
drinking conventional cows’ milk
may experience benefits when they
switch to a2 Milk
TM
.

thea2milkcompany.com
The a2 Milk Company Limited
(Australian Registered Body Number 158 331 965 – Incorporated in New Zealand)

---

Interim
Results

This presentation dated 27 February 2020 provides additional comment on the Interim Report for the 6 months ended 31 December 2019 of The a2 Milk
Company Limited (the “Company” or “a2MC”) and accompanying information released to the market on the same date. As such, it should be read in
conjunction with the explanations and views in those documents.
This presentation is provided for general 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 consider talking to a financial adviser or consultant before making any investment decision.
This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction.
Certain statements in this presentation constitute forward looking statements. Such forward looking statements involve known andunknown risks,
uncertainties, assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results,
performance or achievements to differ materially from those expressed or implied by such statements.
While all reasonable care has been taken in relation to the preparation of this presentation, none of the Company, its subsidiaries, or their respective
directors, officers, employees, contractors or agents accepts responsibility for any loss or damage resulting from the use oforreliance on this presentation
by any person.
Past performance is not indicative of future performance and no guarantee of future returns is implied or given.
Some of the information in this presentation is based on unaudited financial data which may be subject to change.
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 the Company.
2020 Interim Results | 2

Results highlights
Financial overview
Delivering on our strategic priorities and
business objectives
Group strategic updates
Outlook & medium-term target
A G E N D A

R E S U LT S H I G H L I G H T S

•Total revenue of $806.7 million, an increase of 31.6%
•EBITDA of $263.2 million, an increase of 20.5%
•Net profit after tax of $184.9 million, an increase of 21.1%
•Basic earnings per share (EPS) of 25.15 cents, an increase of 20.6%
•EBITDA to sales margin of 32.6%, better than expected
•Operating cash flow of $160.6 million and a closing cash balance of $618.4 million
•Marketing investment of $84.1 million targeting opportunities in China and the USA
•Group infant nutrition revenue of $659.2 million, up 33.1%
•Strong growth in China label infant nutrition, with sales doubling to $146.7 million and distribution
expanded to 18,300 stores
•USA milk revenue more than doubled and distribution expanded to 17,500 stores
2020 Interim Results | 5
Notes:
All figures quoted in New Zealand Dollars (NZ$) and allcomparisons are with the 6 months ended 31 December 2018 (1H19), unless otherwise stated.
Operating EBITDA is a non-GAAP measure and represents earnings before interest, tax, depreciation and amortisation.
All figures are quoted based on all operations of the Group, without excluding discontinued operations, unless otherwise stated.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure. However, the Company believes that it assists in providing investors with a
comprehensive understanding of the underlying performance of the business. A reconciliation of EBITDA to net profit after taxisshown on Slide 34.

F I N A N C I A L O V E R V I E W

NZ$ million (including discontinued ops)1H201H19
% change
Revenue (including discontinued operations)
806.7613.1+32%
EBITDA (including discontinued operations)
263.2218.4+21%
NPAT(including discontinued operations)
184.9152.7+21%
NZ$ million (continuing operations)1H201H19
% change
Revenue
805.3610.9+32%
Gross margin
460.7340.0+36%
Distribution(19.8)(14.5)+36%
Marketing(83.9)(44.7)+88%
Employee costs(32.3)(26.6)+21%
Admin & other(58.2)(33.7)+73%
EBITDA
266.5220.5+21%
EBIT
264.7219.6+21%
NPAT
188.2155.0+21%
(Loss)/profit from discontinued ops
(3.3)(2.3)nm
Reported profit for the period
184.9152.7+21%
•Reflects strong growth across core markets and product categories
•GM of 57.2% reflects a continued mix shift to infant formula, as well as improved price yield
•Marketing investment of $83.9 million targeting opportunities in China and the USA
•Employee costs reflect continued capability build, especially in-market in China and the USA
•Admin & other costs increase reflects investment in consumer insights and costs to
support business expansion; as we improve internal capability, the composition and level
of external resourcing should moderate over time
2020 Interim Results | 7
•Result including the loss from discontinued operations (iefresh milk operations in the UK)
•Revenue marginally above outlook provided for 1H20
•EBITDA margin of 32.6% slightly better than anticipated due to our stronger than expected
underlying gross margin

Geographic segment revenue & EBITDA
NZ$ million
ANZ
China &
other Asia
USACorporate
Total
Group
UK
(discontinued ops)
1H20
Revenue
460.2317.128.0-805.31.4
EBITDA
227.9117.5(30.0)(48.9)266.5(3.2)
EBITDA %
49.5%37.0%nmnm33.1%
1H19
Revenue
418.4179.513.0-610.92.2
EBITDA
192.073.2(17.3)(27.4)220.5(2.1)
EBITDA %
45.9%40.8%nmnm36.1%
%
change
Revenue
10.0%76.7%115.7%n/a31.8%
EBITDA
18.7%60.3%73.7%78.5%20.8%
Product segment revenue
Liquid
milk
Infant
nutrition
Other
nutritional
105.8659.241.7
83.4495.534.2
26.9%33.1%21.9%
2020 Interim Results | 8

2020 Interim Results | 9
•Cash balance of $618.4 million
•Increase due to strong performance
across the group, partly offset by increase
of working capital
•Working capital increase of $32.9 million
to support continued growth, including
increase in inventory
464.8
+184.9
(32.9)
(1.9)
+8.2
(4.7)
618.4
Cash on hand
(Jun-19)
Group NPATWorking capitalInvestments in
PPE &
intangibles
Depreciation,
amortisation &
other non-cash
FX and otherCash on hand
(Dec-19)

1
The Company’s financial year ends 30 June; H1 refers to the first half period from 1 July to 31 December; H2 refers to the second half period from 1 January to 30 June. Key financial charts include discontinued operations.
2
EBITDA is a non-GAAP measure and represents earnings before interest, tax, depreciation and amortisation, and is shown before non-recurring items.
2020 Interim Results | 10
Basic earnings per share (cents)Group EBITDA
2
(NZ$ million)Group revenue (NZ$ million)
64.1
143.0
218.4
263.2
77.1
140.0
195.2
141.2
283.0
413.6
FY17FY18FY191H20
H1H2
12.7
27.0
39.3
25.2
FY17FY18FY191H20
Full YearHalf Year
256.1
434.7
613.1
806.7
293.4
488.0
691.4
549.5
922.7
1,304.5
FY17FY18FY191H20
H1H2

D E L I V E R I N G O N O U R
S T R AT E G I C P R I O R I T I E S
A N D B U S I N E S S
O B J E C T I V E S

2020 Interim Results | 12

2020 Interim Results | 13
Deliver Asia
Pacific sales
strategy outcomes
Deliver the
organisation of the
future
Build towards
sustainable brand
leadership
Reach
meaningful scale
in the USA

Asia Pacific business
•Revenue $777.4 million, up 30.0% and EBITDA of $345.4
million, up 30.2%
•30.0% growth in infant nutrition revenue across APAC,
driven by 76.7% increase in China –strong growth in all
channels
•Revenue growth benefitted from favourable pricing and
product mix
ANZ segment
•Revenue $460.2 million, up 10.0%
•EBITDA $227.9 million, up 18.7%
China & other Asia segment
•Revenue $317.2 million, up 76.7%
•EBITDA $117.5 million, up 60.3%
206.6
304.3
418.4
460.2
233.0
352.3
424.3
439.6
656.6
842.7
460.2
FY17FY18FY19FY20
1H2H
ANZ
segment revenue
NZ$’000s
2020 Interim Results | 14
37.7
114.4
179.5
317.2
51.2
119.2
244.0
88.9
233.6
423.5
317.2
FY17FY18FY19*FY20
1H2H
China & other Asia
segment revenue
NZ$’000s
*Note: UK infant formula for FY19 has been reclassed and
shown in China & other Asia segment.

Infant nutrition –China offline channels
•Sales in a2 Platinum® China label infant nutrition of $146.7 million,
double the sales in the prior corresponding period
•Expanded our footprint to 18,300 stores, up from 16,400 stores at
the end of 2H19
•Achieved our highest market value share in the MBS channel during
the period
3.8k
6.7k
10.0k
12.3k
16.4k
18.3k
Jun-17Dec-17Jun-18Dec-18Jun-19Dec-19
China distribution (store count)
2020 Interim Results | 15

Infant nutrition –Cross border e-commerce
•Sales in a2 Platinum® English label infant nutrition of $158.7 million,
up 57.8%
•Positive results for 11:11 China e-commerce sales event
―JD.com: a2 Platinum® Stage 3 was the top selling infant
nutrition product
―JD.com: second best-selling brand overall (within IMF)
―Tmall: #3 infant nutrition brand overall (English and China
label combined)
―Tmall: #1 number one CBEC flagship store (within IMF)
2020 Interim Results | 16

Infant nutrition –Australian retailers and resellers
•Sales in a2 Platinum® English label infant nutrition of $352.0 million,
up 9.5%
•We remain the market brand leader in Australian grocery and
pharmacy channels
•We continue to invest behind our brand, with our level of
advertising being the highest in the category
2020 Interim Results | 17

2020 Interim Results | 18
Weare growingrevenue acrossall ourchannels......changing the shape of our business
a2MC IMF % revenue by channel
167.6
297.8
482.5
652.9
352.0
41.8
71.5
158.0
243.1
158.7
4.9
24.8
83.9
167.8
146.7
214.3
394.1
724.4
1,063.8
659.2
FY16FY17FY18FY19HY20**
ANZCBECChina Label
78%
76%
66%
61%
54%
20%
18%
22%
23%
24%
2%
6%
12%
16%
22%
FY16FY17FY18FY19HY20**
ANZCBECChina Label
a2MC IMF revenue (NZ$m)
Notes:
UK infant formula has been reclassed and shown in China and other Asia segment.
** Total for HY20 includes infant nutrition from Other Asia of $1.8 million.

2020 Interim Results | 19
4.8%
5.4%
6.4%
6.6%
Jun-18Dec-18Jun-19Dec-19
China consumption share (%)
1
1
Kantar Infant Formula market tracking of China Key & A and BCD cities for 12 months, by value.
2
Prior corresponding period.
1.2ppts increase pcp
2

1
In constant currency.
2
Aztec Australian Grocery Weighted Scan 12 months ending 30 June 2019.
2020 Interim Results | 20
Liquid milk
•Achieved double-digit revenue growth in Australian fresh milk, our
most mature category
―Revenue growth of 11.3% totalling $74.7 million
•Achieved a record market share of 11.3%
•The a2 Milk™ brand continues to be the only
fresh milk brand ranged in all major supermarket
chains
•Largest brandadvertiser in the
freshmilkcategory, maintainingvery
high brand awarenessandloyalty
thatbenefits the portfolio asawhole
•Liquid milk sales in China
and other Asia segment grew 62.0%
to $1.8 million
Other nutritional products
•Overall revenue growth of 21.7% to $41.7 million the majority of
which is recorded in our ANZ segment
•a2 Smart Nutrition™ showing positive signs and a China label
launched in January 2020
•Successful re-launch of our nutritional product targeting mothers
under new branding of a2 Nutrition for mothers™
•We continue to experience delays in producing our a2 Milk™
powder blended with Mānukahoney, with this scheduled to be
available by 4Q20
•We continue to target
growth opportunities for
other nutritional products
in China

2020 Interim Results | 21
Broadcast media to
build awareness
In-store education and
activation to drive trial
Trade and retail
awareness building

2020 Interim Results | 22
New TV advertising campaign and website
launched in Dec-19
“11:11 singles day” a success

•We are gaining momentum as we execute on our US strategy
―Revenue up 116% to NZ$28.0 million
―EBITDA losses of NZ$30.0 million resulting from increased investment in
building brand awareness and distribution growth through marketing
•Building towards an initial milestone of USD$100 million
of annualised sales
•Sales performance driven by improved in-store productivity as well as
through expanding our distribution footprint
―Distribution grew to 17,500 stores, from 13,100 (end of June 2019)
•Sales velocities driving improved performance
―Increasing sales velocities with our most established retail customers
accounted for over a quarter of our sales growth
―Velocities in key customers were approximately 27% higher than the prior
corresponding period
•Portfolio extension with the launch of Coffee Creamers in July 2019
5.8
13.0
28.0
7.5
21.6
13.3
34.6
28.0
FY18FY19FY20
1H2H
NZ$’000s
2020 Interim Results | 23

2020 Interim Results | 24
3.0k
3.6k
6.0k
10.0k
13.1k
17.5k
Jun-17Dec-17Jun-18Dec-18Jun-19Dec-19
USA distribution (store count)
December 2019:
broad national
distribution
Broad distribution
Limited distribution
Legend
No distribution
January 2018:
southeast and
northeast launch

2020 Interim Results | 25
New packaging design launched Sep-19 with greater
impact and modernity
Coffee Creamer launched Jul-19; new ad campaign launched
Oct-19; and new consumer website launched Nov-19

2020 Interim Results | 26
Investing in more
great people
Investing in
technology
Step-changing our
people experience

G R O U P S T R AT E G I C
U P D AT E S

2020 Interim Results | 28
•In August 2019 we announced goals and our formal commitments to:
―Support the global ambition of the Paris Agreement and a 2050 net zero emissions target;
―Work with our farmers to meet the standards set by the World Organisation for Animal Health and avoid practices that contravene the Five Freedoms
1
;
―Continue to improve the high standards of our animal welfare program;
―Execute on our smarter packaging goals for higher quality and lower environmental impact; and
―Innovate to become even more efficient in product processing.
•Undertaking a sustainability assessment of our total supply chain including ensuring we are compliant with modern slavery legislation
•Working towards implementing the Task Force on Climate-related Finance Disclosures (TCFD) recommendations within three years
•Supporting communities in Australia affected by widespread bushfires
•Package of assistance and support initiatives valued at NZ$3.0 million in response to the recent coronavirus disease (COVID-19),with equal
contributions to each of the following:
―Product donation: working with China State Farm to dispatch product donations to frontline medical teams and families
―Shanghai Red Cross cash donation to help and support the areas and people seriously affected
―Funding to assist independent research to support the international effort to find a vaccine for the virus; funding committedtothe University of Queensland’s
School of Chemistry and Molecular Biosciences, and the Peter Doherty Institute for Infection and Immunity (Doherty Institute)
1
The Five Freedoms outline five aspects of animal welfare: freedom from hunger or thirst; discomfort; pain, injury or disease;fear and distress; and freedom to express (most) normal behaviour.

2020 Interim Results | 29
•Foundational partnership for infant nutrition
•Supply rights for defined infant nutrition
products into ANZ & China
•Committed production capacity from Synlait
and well-established process to manage
significant continued growth
Update
•Extended our comprehensive manufacturing
and supply arrangements to July 2025
•Auckland blending and canning facility
receiving GACC infant formula registration in
December 2019
•Relatively new partnership spanning multiple
products and emerging markets
•a2 Milk™branded fresh milk launched in NZ
in August 2018
•Ingredients production began during 2019
Update
•Building capacity to support future growth
•Joint teams working together to
commercialisenew opportunities
•Strong partner for our infant nutrition
products in mainland China since 2013
•Exclusive import agent for our China label
infant nutrition products
•Strong capabilities in importation services
and product traceability as well as local
market regulatory insights

2020 Interim Results | 30
•As part of the Board’s ongoing review of the most appropriate use
of capital for the business, our intention has been to prioritise
investment in growth initiatives ahead of returning capital to
shareholders.
•Due to the increasing scale of our infant nutrition business, the
Board considers it is now appropriate to assess participation in
manufacturing capacity and capability to complement our existing
supply chain relationships. Accordingly, we are presently evaluating
opportunities to address this issue.

O U T L O O K &
M E D I U M-T E R M TA R G E T

FY20 outlook
•Overall for FY20, we anticipate continued strong revenue growth across our key regions supported by increased marketing investment in China and the USA as well as the ongoing
development of organisational capability to support the execution of our strategy.
•Globally, there is uncertainty around the potential impact to supply chains and consumer demand in China resulting from COVID-19and we continue to monitor the situation
closely.
•The health and wellbeing of our people is our primary focus and we have taken all measures to ensure our staff in China are as safe as possible. We remain vigilant to the advice of
relevant authorities.
•Given the essential nature of our products for many Chinese families, demand is strong, particularly through online and resellerchannels, with revenue for the first two months of
2H20 above expectations. However, this is a dynamic situation and at this stage we are unable to quantify the impact, either positively or negatively, for the full year.
•Notwithstanding this uncertainty, full year EBITDA margin is still anticipated to be in the range of 29-30%. 2H20 EBITDA margin is therefore expected to be lower than 1H20. The
improved price yield in 1H20 is expected to be offset by:
―Increased COGS (including lactoferrin, milk price, and tamper-evident infant nutrition packaging)
―Planned increased levels of strategically important trade marketing activation in China
―Potential for increased supply chain costs resulting from COVID-19
―Phasing of marketing and capability investment weighted to 2H20; full year marketing investment expected to be approximately $200 million, as previously communicated
―Potential impact from unfavourable foreign exchange movements (weaker AUD:NZD)
•Given the COVID-19 situation, we are assessing the level of discretionary marketing investment and trade marketing activation that can be effectively deployed in China for the
remainder of the fiscal year.
Medium-term target
•The Board considers it appropriate that the Company target an EBITDA margin in the order of 30% in the medium-term. This assumesthe market performance and mix of our
products remains broadly consistent and the competitive environment evolves as anticipated. We will keep the balance between growth and investment under constant review.
2020 Interim Results | 32

A P P E N D I X

1
EBITDA and EBIT are non-GAAP measures. However, the Company believes they assist in providing investors with a comprehensive understanding of the underlying performance of the business.
NZ$ million1H201H19
Australia & New Zealand segment EBITDA
227.9
192.0
China & other Asia segment EBITDA
117.4
73.2
USA segment EBITDA
(30.0)
(17.3)
CorporateEBITDA
(48.9)
(27.4)
UK EBITDA
(3.2)
(2.1)
EBITDA
1
263.2
218.4
Depreciation/amortisation
(1.8)
(1.0)
EBIT
1
261.4
217.4
Net interest income
2.9
1.6
Income tax expense
(79.4)
(66.3)
Netprofit for the period
184.9
152.7
2020 Interim Results | 34

Geographic and product segment revenue
NZ$ million
ANZ
China &
other Asia
USA
Total
Group
UK
(discontinued
operations)
1H20
Liquid milk74.71.828.0104.5
1.4
Infant nutrition352.0307.2-659.2
-
Other nutritional33.58.1-41.6
-
TOTAL460.2317.128.0805.3
1.4
1H19
Liquid milk
67.11.113.081.22.2
Infant nutrition
321.6173.9-495.5-
Other nutritional
29.74.5-34.2-
TOTAL
418.4179.513.0610.92.2
%
Change
Liquid milk11.3%62.1%115.7%28.7%
nm
Infant nutrition9.5%76.6%-33.0%
nm
Other nutritional12.3%84.3%-21.7%
nm
TOTAL10.0%76.7%115.7%31.8%
nm
2020 Interim Results | 35

2020 Interim Results | 36
•Synlait Milk’s Auckland blending and canning facility received infant formula registration:
―In December 2019, Synlait received the infant formula registration from the GACC
1
for its Auckland-based blending and canning facility. Synlait
can now progress brand registration processes, for China, for this facility.
―The registration process included an in-depth assessment of Synlait and required the Company to prove it has a robust quality management
system. There was a three-day onsite audit conducted by the Ministry for Primary Industries on behalf of GACC, which included a full
traceability exercise from raw materials through to export, as well as an assessment of Synlait’scapability to meet China’s rigorous regulatory
and quality requirements.
―The Auckland facility had been granted a China general dairy registration in May 2018.
•Relevant to our close partnership with Synlait Milk, it now holds:
―SAMR product registration
2
for the importation of our China label infant formula through to September 2022; and
―GACC
1
registration for its Dunsandelmanufacturing facility, allowing canned infant formula to be exported to China.
1
General Administration of Customs of the People’s Republic of China.
2
Registration achieved by Synlait Milk and given by the organisation now known as China’s State Administration for Market Regulation (SAMR) in September 2017 for our China label infant formula. SAMR requires
registration to be held in the name of the manufacturer as opposed to the brand owner.

Growing consumer
demand for
health and
wellness products
Growing focus on
food safety,
naturalness
and provenance
Rise of the
middle class
in Asia
Rapid pace of
digitalisation
2020 Interim Results | 37

Unique,
premium brand
and IP
Intellectual capital
Passionate and
thriving
team
Human capital
Capital
smart
approach
Financial capital
Innovative and
ethical
supply chain
Manufacturing capital
Responsible use
of natural
resources
Natural capital
Enriching
community
wellbeing
Social capital
2020 Interim Results | 38

•The interrelationship between our macro
consumer factors and our business
strategy determines our ability to create
and sustain value
•As we grow, we are focused on having a
positive impact on the world in which we
operate, recognising that with scale
comes greater responsibility
2020 Interim Results | 39

t h e a 2 m i l k c o m p a n y. c o m

---

The a2 Milk Company Limited
ARBN 158 331 965

ASX Appendix 4D – Half Year Report

Results for announcement to the market

Reporting period Six months to 31 December 2019
Previous reporting
period
Six months to 31 December 2018

Amount (000s) Percentage change
Revenue from
continuing ordinary
activities
NZ$ 805,320 31.8%
Profit from continuing
ordinary activities after
tax attributable to
security holders
NZ$ 188,194 21.4%
Net profit attributable to
security holders
NZ$ 184,926 21.1%

Interim dividend Amount per security Imputed amount per
security
The Company does not
propose to pay a
dividend for the half year
ended 31 December
2019
No applicable Not applicable

Record date Not applicable
Dividend payment date Not applicable

Comments: For further information refer to the attached:

Interim report for the six months ended 31
December 2019
Half year results commentary
Half year results presentation



Net tangible assets per
security

31 December 2019
NZ$ 1.27
30 June 2019
NZ$ 1.04