Synlait publishes Half Year 2020 Result

THE ROAD AHEAD
Half Year Results Shareholder Newsletter
19 March 2020

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER2
WE REMAIN COMMITTED TO GROWTH ...
Establishing a scalable infant nutrition business that leverages
our differentiated value chain continues to be a core focus and
a significant contributor to Synlait’s story. At the same time,
diversifying our business through investments in complementary
categories, such as Everyday Dairy and Foodservice, and markets
outside of China, are an important part of our long-term strategy.
We remain committed to our aspirations but are taking a balanced
approach to growth to ensure we appropriately address strategic
risk along the way, because as we are seeing, the world is
currently a highly uncertain place.
... AND WE ARE STILL GROWING
Our financial performance for the six months ended 31 January
2020 (HY20) shows that our core infant nutrition business
continues to support our growth, with sales of consumer-packaged
infant formula up 22% on the same period last year.
Total company revenue increased by a robust 19% to $559 million
and total milk processed rose 8.5%. While earnings before interest,
tax, depreciation and amortisation (EBITDA) were largely flat at
$67.6 million, EBITDA is forecast to increase for the 12 months
ended 31 July 2020 (FY20).
THE ROAD
AHEAD
Synlait Milk is a growth company and proud of it.
Doing milk differently for a healthier world is our purpose.
It is the reason we exist. It shapes who we are, what we stand
for, and what we do.
It captures the essence of Synlait: a 21st century milk nutrition
company providing essential nutrition for healthier families.
It captures the elevation of people and planet to the same level
of profit in our business, which helps us shape the decisions we
make for a healthier world.
It captures our belief that being different will ultimately help us
develop better solutions for the opportunities and challenges we
face – for our business, for our industry, for our country, and for
our planet.
It keeps us on track.
Synlait CEO Leon Clement (left) and
Synlait Chair Graeme Milne (right)

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER3
Supporting this growth is our ongoing investment in milk supply
and procurement, research and development, manufacturing
capability, quality and regulation and logistics services.
This investment has earned Synlait its position as a world class
manufacturer. It means we can offer strategic value to our
current (and potential) customers that support our
differentiated propositions.
Market access helps secure opportunities, this is a strength of
Synlait’s. It is a unique competitive advantage, because we hold
the brand registrations and factory approvals for our customers
wanting to export infant formula to China. Our track-record
continues to be endorsed by Chinese officials, with our team
receiving several new regulatory approvals in the past six months.
Most notably, we received an infant formula registration from
General Administration of China Customs (GACC) for Synlait
Auckland and a GACC (general dairy) registration for Synlait
Pokeno, which allows the export of milk powders, including infant
formula base, to China.
Investments in our infant nutrition business allowed us to extend
our supply agreement with The a2 Milk Company to July 2025
(at the earliest), providing increased term and volume, over
the products for which Synlait have exclusive supply rights
for Australia, New Zealand and China. The a2 Milk Company
continues to deliver strong growth in all channels in China and our
partnership continues to strengthen as we share the benefits of
scale and build a best-in-class highly integrated value chain. We
are confident historical margins can be protected, provided Synlait
continues to generate manufacturing efficiencies. Synlait looks
forward to discussions with The a2 Milk Company to consider
arrangements which may facilitate participation in manufacturing
and recognise Synlait's expertise.
Growth in the first half of this financial year was underpinned by
manufacturing efficiencies delivered as part of the Integrated
Work Systems programme. By way of example, Synlait Auckland
experienced a 21% reduction in unplanned downtime, while
integrating an additional shift.
Lactoferrin made a strong contribution to the bottom line, albeit
at a softer rate than initially expected due to pricing volatility.
Synlait’s quality and capability are highly valued internationally,
validating the decision to double the size of this facility. Sales
increased 30% to 7.7 metric tonnes (MT), with a gross profit
contribution of $6.3 million.
We have a strong core business that continues to grow very
well, and this has allowed us to invest in new capacity and
capability. Naturally, like any manufacturer, this meant taking on
an acceptable risk level around implementation and our ability to
predict demand against an increasing asset base.
... BUT WE MUST ADAPT TO INDUSTRY CHANGES IN AN
INCREASINGLY UNCERTAIN WORLD
Last month we updated our net profit after tax (NPAT) full year
2020 outlook to between $70 million and $85 million. We
recognise this was not expected, but it forms part of Synlait’s
acceptable risk story, which we have been upfront about as we
work to diversify and grow. Yes, we hoped to increase asset
utilisation and earnings at a faster rate, but we remain confident
that decisions made will regain shareholder value over the
medium to long-term. Delivering on this is front of mind for the
Board and Executive team.
To support this, more than $10 million of planned operating costs
have been deferred or rephased in FY20. A strong cost focus will
continue into FY21.
NPAT for the six months to 31 January 2020 fell 30% to $26.2
million, reflecting higher depreciation and interest costs as we
invest for growth. Due to month end shipment challenges we
fell slightly below our guidance range. This is a timing issue
and has no impact on FY20 guidance which the Board remains
comfortable with.
A detailed summary of Synlait’s HY20 financial performance is in
the investor presentation released with this shareholder newsletter.
As New Zealand’s largest infant nutrition
manufacturer, Covid-19 concerns us greatly and our
incident assessment team is reviewing the situation
and updating our response daily. We are deeply
committed and connected to China, the customer
partnerships we have there, and the role that we
play in providing infant nutrition to many families
across China.
While we can confirm there has been no material short-term
impact on our financial performance in connection with Covid-19,
it represents some downside risk going forward. This was a
factor in Synlait’s decision to issue a wider guidance range back
in February.
Demand indications from The a2 Milk Company suggest Covid-19
had a positive impact on consumer-packaged infant formula sales
in the first two months of the 2020 calendar year, however the
company was unable to quantify the FY20 impact.
We have adopted the New Zealand Government’s strategy to
‘flatten the curve’ and this week took steps to restrict all people
movements wherever possible. All roles have been reviewed
for suitability to work from home and our China office remains
closed. There has been no significant operational impact to date,
but we are witnessing pressure on the broader supply chain,
particularly space availability and shipping schedules. Our team
is working closely with logistics partners to maintain a clear
forward view of capacity and schedule accordingly. As always,
food safety remains our priority and we are encouraged to see
the European Food Safety Authority and New Zealand Ministry for
Primary Industries position that food is not a likely source or route
of transmission.

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER4
Graeme Milne ONZM
Chair
As mentioned above, core earnings growth remains sound,
however the time and cost to create new opportunities to
support future growth, reflected in higher manufacturing costs,
SG&A costs and interest expenses, is having a short-term impact
on profitability. This is not a reflection of core business non-
performance, but a moderation of our own expectations against
the investments we are making for our future.
Yes, adjusted assumptions around our infant formula base sales,
consumer-packaged infant formula volumes, and lactoferrin
pricing mean we will not be able to absorb the costs of standing
up our new investments this year – but long-term confidence in
our business remains unchanged.
We are moving to address changes in our external environment,
which includes faster consolidation and slower growth in the
China infant nutrition market. This makes us less confident in
opportunities to partner with new emerging players, but more
confident in our ability to be a substantive partner with
The a2 Milk Company in establishing a leadership position
in China and leverage our unique value chain to build on the
strategic partnerships we have with other established players.
WE REMAIN FOCUSED ON THE RIGHT OPPORTUNITIES ...
We have been clear that securing new, significant and long-term
customer contracts to support our Infant Nutrition, Everyday Dairy
and Foodservice growth strategy is a priority.
Synlait is a world class manufacturer. We have
earned credibility among large multinational players
in the infant nutrition sector and are creating
partnerships which are less exposed to China.
It is just as important for us to diversify our
customer-base within this sector, as it is for us
to diversify our broader business and market
exposure. Our customer pipeline is strong, with
material opportunities well progressed.
We are encouraged by the customer interest our long shelf
life line is generating. This line is part of our Advanced Dairy
Liquid Packaging facility, which had some initial commissioning
challenges last year. While this facility is now performing
well, those challenges created a knock-on effect delaying
commissioning of the long shelf life line. This is a new opportunity
for Synlait, and while delayed, we are energised by potential
customers, and the capability of our Research & Development
Team who are adding real value in this area.
... AND WE ARE EXCITED ABOUT THE FUTURE
Last week we announced that Dairyworks will join the Synlait
family on 1 April. Synlait and Dairyworks are a great fit. This
acquisition accelerates the execution of our Everyday Dairy
strategy providing us with instant scale in this sector, new
opportunities, supply chain synergies, and a diversified
earnings base.
We are excited about how Dairyworks changes the shape of
Synlait. It is a great base for us to build on, and participate,
in the consumer branded sector. It will also provide a stable
earnings stream of approximately $15 to $20 million EBITDA
over the next two years as we realise synergies and consolidate
growth momentum.
Ensuring we have the right leadership capability to support Synlait
is an ongoing priority. Angela Dixon will join us in June as our
new Chief Financial Officer, following Mark Toomey who started
in December as Director Operations. Mark and Angela each bring
strong experience, new energy and drive to our leadership team.
Thanks to our wider Synlait team who bring this same energy to
work each day. Engagement scores are at an all-time high, which
is a reflection of the support and dedication our team has to our
story. The work of our team is critical to our success. Keep it up!
Thanks also to our outgoing Chief Financial Officer Nigel
Greenwood who has been with us for 10 years. Nigel has made a
significant contribution to Synlait and we wish him and his family
all the best for their next adventure.
Doing milk differently for a healthier world keeps us on track.
Synlait has a strong and growing core business which has put us
in the position of being able to invest for the future. We have new
capacity to fill and new capability to grow. This is exciting, and we
are taking on the challenge. We must adapt quickly to changes in
our world to deliver our short-term goals, but remain confident we
are building a strong, sustainable Synlait that we can continue to
be proud of. Bring on the road ahead.
Leon Clement
Chief Executive Officer

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER5
OUR HALF YEAR
HIGHLIGHTS
FINANCIALS AT A GLANCE
$7.25KGMS
22%$180M
$26.2M$559M
Revenue up 19%
Forecast base milk price for the 2019 /
2020 season announced in January
Next update late May
Increase in sales of consumer
packaged infant formula to 21,571 MT
Unsecured, subordinated, fixed rate
bonds successfully listed on NZX
Net profit after tax (NPAT) down 30%
reflecting higher depreciation and
interest costs as we invest for growth*
$67.6M
EBITDA in line with HY19
*Due to month end shipment challenges we fell slightly below our guidance range. This is a timing issue and has no impact on FY20 guidance
All comparisons are to HY19 unless stated otherwise
SYNLAIT FY20
GUIDANCE UPDATE
Synlait reiterates it remains comfortable with its full year 2020
earnings guidance range, which was updated in February 2020.
Synlait expects FY20 earnings guidance to be between $70
million and $85 million net profit after tax. Notwithstanding
that, Synlait still anticipates strong growth in consumer-
packaged infant formula sales volumes over the full year.
Factors contributing to this performance include:
• incremental costs of the new Pokeno facility impacting
standard manufacturing costs;
• lower sales of infant base powders due to the China
infant nutrition market consolidation;
• higher SG&A costs due to increased business size
and the continued focus on investing in future growth
opportunities; and
• a positive impact of a full year of operation of the
expanded lactoferrin facility, albeit with more pricing
volatility.
Synlait announced last week that Dairyworks is expected to
make an EBITDA contribution of approximately $4 million in the
remainder of FY20. This translates to an NPAT contribution of
approximately $2 million, after borrowing costs and deprecation.
Synlait did not consider this amount material enough to adjust its
FY20 guidance range given the wider global uncertainty emerging.

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER6
OUR HALF YEAR
HIGHLIGHTS
PROGRESS AGAINST OUR SHORT,
MEDIUM & LONG TERM STRATEGY
LONG TERM FOCUS
DOING MILK DIFFERENTLY
Our Growth Strategy
FOR A HEALTHIER WORLD
Our Enabling Strategy
SPORTS
NUTRITION
EVERYDAY
DAIRY
EVERYDAY
DAIRY
MEDIUM TERM FOCUS
MEDIUM TERM FOCUS
CURRENT FOCUS
CURRENT FOCUS
MEDIUM TERM FOCUS
MEDIUM TERM FOCUS
LONG TERM FOCUS
INFANT
NUTRITION
BUILD A HEALTHIER
SYNLAIT
NEXT BIG
THING
FOODSERVICE
• Inaugural liquid milk
customer well serviced
• Dairyworks acquisition
completed, represents
material step in
diversification strategy
• 12-month nitrogen loss
reduction trial underway
• Investigating alternative
fuel sources, including
trials for biomass and bio-
diesel in milk tankers
• Water reduction initiatives
identified. Target to
reduce consumption by
approx. 50,000 cubic
meters annually
• Watching brief, need to
progress
• 22% growth in consumer
packaged infant formula
sales
• Partnership with The a2
Milk Company continues
to strengthen: extended
supply agreement
• Synlait Pokeno a world
class facility, built on time
and on budget.
• 34% drop in injury rate,
TRIFR 9.0 HY20 (HY19:
13.7)
• Staff engagement at
record levels
• Prime Minister Jacinda
Ardern opened
Whakapuāwai, goal
to plant 20,000 trees
in 2020
• ERP project progressing
well, completing design
stage
• Exploring opportunities in
functional creams
• Will seek to leverage
integrated cheese value
chain being established
with Talbot Forest and
Dairyworks
• IWS programme
progressing well across
business with significant
efficiencies recently
delivered at Auckland site
• New GACC regulatory
approvals endorse
unique competitive
advantage in securing
market access
• Construction of Dry Store
4 on-track
• Dunsandel farmland
purchased, supports
strategic supply chain
initiatives
• Small, agile projects
underway
• Focused on disruptive
and future growth
opportunities
WORLD CLASS
VALUE CHAIN

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER7
INFANT
NUTRITION
A VISIT FROM THE STATE
ADMINISTRATION FOR MARKET
REGULATION – CHINA
INSIDE SYNLAIT POKENO:
OUR NEWEST FACILITY
Commissioning continues at Synlait’s $260 million nutritional
powder manufacturing facility in Pokeno, Waikato. This facility
creates capacity for growth and reduces our risk profile,
through the diversification of processing assets and milk
pools which previously relied on Synlait Dunsandel.
Synlait Pokeno is a 24/7 facility being run by an engaged and
highly capable team of more than 90, who have backgrounds in
engineering, food technology, dairy and infant formula.
Navigating complex international regulatory environments is one
of Synlait’s strengths. Facilitating market access creates value
for our customers, and in November 2019 we were honoured
to welcome Minister Xiao Yaqing of the State Administration for
Market Regulation – China (SAMR) to Synlait Pokeno.
Commercial product, including instant whole milk powder, skim
milk powder, infant formula base powder and cream, has been
manufactured at Synlait Pokeno since September 2019. The first
shipment of whole milk powder was dispatched in December
2019 to Vietnam.
Synlait Pokeno received its GACC general dairy
registration this month. This means we can export
milk powders made at Synlait Pokeno to China.
This is a significant achievement given the facility
is so new.
Commissioning this facility remains on track and we are really
pleased with the site and quality of product being produced.
We always expected there to be a cost drag because we
chose to invest ahead of the curve – Synlait Pokeno has all
the costs of a full infant facility but it is currently only making
commodity products.
Synlait Pokeno’s nutritional spray dryer has a capacity of 45,000
MT. Like Dunsandel, it can produce a full suite of nutritional,
formulated powders, including infant-grade skim milk, whole milk
and infant formula base powders. It also has a 15,000 square
meter export licensed warehouse, to store raw materials and
finished product in preparation for shipping.
We welcomed 56 farmer suppliers to Synlait Pokeno at the
beginning of the 2019/2020 milk season.

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER8
CHEESE:
ANY WHICH WAY YOU
CUT IT THERE IS VALUE
BEYOND THE BLOCK
Our Advanced Liquid Dairy Packaging facility was commissioned
almost a year ago and we have developed a strong relationship
with Foodstuffs South Island (FSSI). Initial commissioning
challenges have been resolved, and like any growth company
our attention has turned to exploring new channels, trends and
markets. Our recent Dairyworks investment is a natural extension
within the Everyday Dairy sector and broadens the range of
categories and opportunities we can explore.
A New Zealand market leader in the Everyday Dairy category
with a growing Australian presence, Dairyworks supplies New
Zealand consumers with almost half of its cheese and a quarter
of its butter, as well as milk powder, and the award-winning Deep
South ice cream. We are pleased the Overseas Investment Office
granted consent for Synlait to purchase Dairyworks. Here is a
summary of why Dairyworks and Synlait are a great fit:
ATTRACTIVE SECTOR
• Industry players remain limited and unintegrated in cheese and
butter and have high barriers to entry
• Consumers preferences within cheese category evolving to
convenience and specialty. These are valued added products
• Export growth potential for New Zealand dairy businesses
is significant. New Zealand’s strong dairy reputation enables
businesses to leverage ‘brand New Zealand’ to access large and
growing global dairy markets
GROWTH OPPORTUNITIES
• Utilise Dairyworks innovative, agile and nimble FMCG culture to
expand category offerings and products
• Continue to maximise strong on-shelf New Zealand brand, and
leverage emerging Australian grocery beachhead to grow rapidly
• Ability to leverage fresh milk line at Dunsandel to expand
Dairyworks offering over time
COMPLEMENTARY CULTURE
• Dairyworks is a nimble and innovative company like Synlait
• Dairyworks purpose ‘Make Life Easy’ complements Synlait’s
purpose ‘Doing milk differently for a healthier world’
• Christchurch-based
FINANCIALLY SUSTAINABLE
• Equipment and management structure recently invested in
• Provides a high-value channel to market for cheese produced
at Talbot Forest
• Financially compelling transaction reflected in attractive
acquisition multiple and earnings per share accretion
• Earnings growth trajectory demonstrates potential for further
shareholder value creation over the long-term
EVERYDAY
DAIRY
SYNERGIES WITH SYNLAIT: WHAT DAIRYWORKS
BRINGS TO OUR BUSINESS
• Diversification of customers, categories and markets
• Supply chain synergies over time through vertical
integration with Talbot Forest Cheese and working
capital benefits
• Ability to better optimise Synlait’s milk pool and get
more value from what we process
• Cultural alignment

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER9
PROGRESS AGAINST
OUR SUSTAINABILITY
STRATEGY
BUILDING A
HEALTHIER SYNLAIT
WORLD CLASS
VALUE CHAIN
NET POSITIVE FOR
THE PLANET
In June 2018 we announced our refreshed commitment to
sustainability. Since then we have been mobilising our team to
transform Synlait for the better. We are committed to elevating
people and planet to the same level as profit. Our progress over
the past six months is outlined below.
Whakapuāwai is an environmental programme connecting our
people, our farmers, and our community through the planting
of native trees. Staff, farmer suppliers, and their families, are
supporting Synlait’s goal of planting 20,000 native trees this year.
Whakapuāwai was launched by Prime Minister Jacinda Ardern
in December. Synlait staff receive one paid day per year to plant
natives as a way of supporting commitments to our farmers and
communities to jointly restore land in Canterbury. We are aiming
to plant four million native trees by 2028.
We are committed to transparency and have materially improved
Synlait’s Sustainalytics score, which determines the interest
rate of our environmental, social and governance (ESG) linked
loan announced in September 2019. Our ESG risk rating score
decreased from 34.9 to 21.3 providing further interest cost savings
on the loan. Synlait now ranks an impressive third out of 297
packaged foods companies globally.
A water usage reduction initiative is underway at Dunsandel
with seven opportunities to reduce water usage identified.
Our team’s collective approach to innovation and problem
solving has allowed us to reduce water consumption by
approximately 50,000 cubic meters annually.
In January 2020, we started a 12-month nitrogen loss reduction
trial, testing new technology in Canterbury. Results will be known
in our next financial year.
Investigating alternative fuel options is a priority as we work to
reduce our reliance on coal. A 24-hour biomass fuel trial was
held late last year, with wood pellets used to fire up Dunsandel’s
Boiler 2. This is a long-term project with further trials planned
before decisions are made.
With the support of our logistics partner, Hilton Haulage, our team
undertook a three-month transport fuel trial using a five percent
bio-diesel blend in two milk tanker trucks. The results are now
being finalised.
Prime Minister Jacinda Ardern
plants a native tree at Synlait’s
Whakapuāwai opening at
Dunsandel in December 2019

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER10
Dry Store 4 will provide us with an additional 30,000 square
metres of warehousing at Synlait Dunsandel. It will streamline
logistic activities, and bring offsite South Island storage back
to Dunsandel, supporting growth and generating supply chain
efficiencies. It enables greater control over our inventories,
value add services, improves our sustainability footprint, and
improves lead times for our customers. New technology and
infrastructure improvements will enhance the health and safety
of our people too.
Dry Store 4 is on track to be completed in September 2020.
The project is on budget (expected to cost $32 million) and set
to deliver a return on investment of 20% based on the planned
efficiency and service gains.
To further support this project, last week we announced our
intention to acquire farmland adjacent to Synlait Dunsandel.
The land enables us to keep pursuing several strategic supply
chain and sustainability initiatives to support our long-term
operation and expansion. They include:
• greater control over water rights. The land will provide
Synlait with certainty over access to water and disposal of
its factory processing water; and
• developing a rail siding adjoining Dry Store 4. Synlait will
advance commercial terms now the land has been secured.
The rail siding creates supply chain efficiencies identified as
part of the Dry Store 4 warehouse project. On completion,
containerised goods will be transported by rail between
Dunsandel and Lyttelton, significantly reducing Synlait’s
environmental footprint by removing approximately 16,000
truck movements annually.
We are excited about this opportunity and look forward to
updating you on our plans as they progress.
DRY STORE 4:
ON TRACK TO CREATE
SIGNIFICANT SUPPLY
CHAIN EFFICIENCIES
DRY STORE 4
RAIL SIDING
30,000M
2
of additional warehousing
provided by Dry Store 4
Artists impression of Dry Store 4
and rail siding once completed

HALF YEAR RESULTS 2020 SHAREHOLDER NEWSLETTER11
MARK TOOMEY
DIRECTOR, OPERATIONS
MEET OUR NEWEST
TEAM MEMBER
MARK’S EXECUTIVE ROLE
Mark joined Synlait in December 2019 as Director, Operations.
Mark, who has a strong focus on continuous improvement,
leads Synlait’s operations function and brings to the team core
manufacturing and supply chain capability, as well as cross
functional experience having held leadership roles in sales,
finance and strategy. With Synlait on a strong growth path,
Mark, and his highly experienced operations team, have a key
role to play in the delivery of our world class value chain.
BEFORE JOINING SYNLAIT
Over the past 25 years Mark has managed manufacturing facilities
and supply chains at Australasia’s leading organisations including,
GrainCorp, Lion, Toohey’s Brewery and Dairy Farmers. Mark has
a track record of working with his teams to deliver manufacturing
excellence, outstanding culture, safety and quality products.
NEED MORE INFORMATION?
To find out more about Synlait, visit: synlait.com
To enquire about your shareholding, contact Computershare
on +64 9 488 8777 or at: enquiry@computershare.co.nz
To speak to someone at Synlait, contact Corporate Affairs
Manager Hannah Lynch on +64 21 252 8990 or at:
hannah.lynch@synlait.com
FOLLOW US
To keep up to date with what’s happening at Synlait follow us on
linkedin.com/company/synlait-ltd/
facebook.com/Synlait/
WELCOME TO OUR
NEW BONDHOLDERS
Synlait joined the NZX Debt Market in December 2019, issuing
NZ$180 million of unsecured, subordinated, fixed rate bonds in its
inaugural bond issuance.
After a sustained period of growth and investment, we believed it
was the right time to issue bonds. With a strategy to diversify our
customer base, category mix and site reach, it was also important
to extend our diversification strategy to our balance sheet.
Proceeds from the bonds were used to repay a portion of Synlait’s
existing bank debt and provide diversification of funding sources
to support our growth strategy.
As a New Zealand company, it was great to use our local capital
market to achieve this, and to receive such strong support for the
offer. On behalf of the team, welcome to our new bondholders
who are now part of Synlait’s story.
KEY FACTS ABOUT THE LISTING:
• interest rate: 3.83% per annum
• maturity date: Tuesday 17 December 2024
• interest payment dates: 17 March, 17 June, 17 September and 17
December of each year until and including the maturity date
• ticker: SML010
BALANCING LIFE AND WORK
Outside of work, Mark enjoys travel and spending time in the
outdoors, hiking and mountain climbing, including walking the
Kokoda and Milford Tracks. As a keen sports fan, and former
rugby player, he closely follows the fortunes of the Wallabies
(we’re a Kiwi company, but we won’t hold that against him!).
Chief Financial Officer
Nigel Greenwood rings the
bell at Synlait’s NZX Debt
Market listing

---

THE ROAD AHEAD
SYNLAIT HALF YEAR RESULTS INVESTOR PRESENTATION
19 March 2020

2
TODAY’S AGENDA
• COVID-19 update
• Our six months in review
• Our financial performance
• Outlook
• Appendices
Synlait, Dunsandel

3
COVID-19 UPDATE
Actively mitigating foreseeable risk
INCIDENT ASSESSMENT TEAM REVIEWING SITUATION DAILY. FOCUSED ON MANAGING:
Supply chain
• No significant operational impact to date
• Witnessing pressure on broader supply chain, particularly container space availability and shipping schedules. Managing this risk through
strong relationships with raw material suppliers and logistics partners, and leveraging them to gain forward views of export capacity
People measures and operational continuity
• Health and wellbeing of Synlait people is our priority. Focus on flattening the curve of spread, while keeping our sites and product moving
• Acted quickly and strongly to restrict people movements wherever possible, in line with New Zealand Government position
• All roles have been reviewed to see who can work from home. China office remains closed
• International travel suspended, domestic travel only to occur for essential business
Product risk
• No evidence that food is a likely source or route of transmission of the virus, in line with European Food Safety Authority and Ministry
for Primary Industries position

Advanced Dairy Liquid Packaging Facility
4
OUR SIX MONTHS IN REVIEW

5
HALF YEAR FINANCIALS AT A GLANCE
$7.25KGMS
22%$180M
$26.2M$559M
Revenue up 19%
Forecast base milk price for the 2019
/ 2020 season announced in January
Next update late May
Increase in sales of consumer
packaged infant formula to 21,571 MT
Unsecured, subordinated, fixed rate
bonds successfully listed on NZX
Net profit after tax (NPAT) down 30%
reflecting higher depreciation and
interest costs as we invest for growth*
$67.6M
EBITDA in line with HY19
*Due to month end shipment challenges we fell slightly below our guidance range. This is a timing issue and has no impact on FY20 guidance
All comparisons in this presentation are to HY19 unless stated otherwise

6
THE FIRST HALF HAS NOT BEEN
WITHOUT ITS CHALLENGES
Challenges Approach
Uncertainty remains regarding land at Synlait Pokeno• Supreme Court hearing next month (April 2020)
• Remain comfortable with legal position
Customer pipeline is exciting, but new,
announceable, and material agreements yet to
materialise
• Well progressed on material customer opportunites that will further diversify Synlait and fill up new facilities
• Sales pipeline for infant formula base powder rebuilding as multinational brand owners reset supply options
Consolidation of infant nutrition players in China and
progress on SAMR registrations impacting short-term
demand plans
• Opportunity to build leadership position with The a2 Milk Company in China
• Leverage credibility to partner with established players
• Chinese infant formula regulatory environments continue to move toward the Synlait model of integrated infant
formula manufacturing
Commissioning of long shelf line and sales • Customer pipeline strong
• Product development well supported by Palmerston North Research & Development Team
• Commissioning delayed as a result of initial challenges with liquid milk line
Covid-19 impact • Spread and risk posed to Synlait continues to be monitored, see slide 3
• Contributed to the bottom end of the updated guidance range being lowered (announced last month)
Short-term financial performance• Updated FY20 guidance between $70 million and $85 million NPAT. Previously announced earnings guidance was for
profits to continue to grow in FY20, with the rate of profitability increasing at least at a similar rate to FY19 over FY18.
• Core earnings remain sound, previous assumptions mean Synlait is not able to fully absorb costs of starting up new
investments in FY20
• Deferred and re-phased planned operating costs by more than $10 million in FY20. Cost reduction focus will continue
moving forward

7
STRONG PROGRESS MADE TOWARDS LONG-TERM
STRATEGY IN THE HALF YEAR
FOR A HEALTHIER
WORLD
OUR ENABLING
STRATEGY
MEDIUM TERM FOCUS LONG TERM FOCUS
HY20
HY20
• Inaugural liquid milk customer well
serviced
• Dairyworks acquisition completed,
represents material step in
diversification strategy
• 12-month nitrogen loss reduction trial
underway
• Investigating alternative fuel sources,
including trials for biomass and bio-
diesel in milk tankers
• Water reduction initiatives identified.
Target to reduce consumption by
approx. 50,000 cubic meters annually
• 34% drop in injury rate, TRIFR 9.0 HY20
(HY19: 13.7)
• Staff engagement at record levels
• Prime Minister Jacinda Ardern opened
Whakapuāwai, goal to plant 20,000 trees
in 2020
• ERP project progressing well, completing
design stage
• IWS programme progressing well across
business with significant efficiencies recently
delivered at Auckland site
• New GACC regulatory approvals endorse unique
competitive advantage in securing market access
• Construction of Dry Store 4 on-track
• Dunsandel farmland purchased, supports
strategic supply chain initiatives
• Watching brief, need to
progress
• 22% growth in consumer packaged infant
formula sales
• Partnership with The a2 Milk Company
continues to strengthen: extended supply
agreement
• Synlait Pokeno a world class facility, built on
time and on budget.
• Exploring opportunities in
functional creams
• Will seek to leverage
integrated cheese value
chain being established
with Talbot Forest and
Dairyworks
• Small, agile projects underway
• Focused on disruptive and
future growth opportunities
CURRENT FOCUSMEDIUM TERM FOCUS LONG TERM FOCUS
Everyday
Dairy
Sports
Nutrition
Net Positive for
the Planet
Build a Healthier
Synlait
World Class
Value Chain
Infant
Nutrition
Next Big
Thing
DOING MILK
DIFFERENTLY
OUR GROWTH
STRATEGY
Foodservice

8
WHAT MAKES US DIFFERENT
Our unique capabilities underpin our sustainable competitive advantage
ESTABLISHEDBUILDING
Differentiated
milk supply
• A1 protein free milk
• Grass Fed™
• Lead With Pride™
Navigated complex
regulatory environments
• Track record of
providing market
access for customers,
securing regulatory
approvals for Synlait
sites, processes and
products
Focus on research,
development and
innovation
• Dedicated research
and development team
• Product development
in attractive categories
and markets a priority
• Capability to create
custom dairy products
for customers
Developed an integrated
manufacturing chain
• Operate high spec,
large scale plants
• Integrated Work
Systems (IWS)
programme driving
efficiencies
Built in quality testing
standards onsite
• Zero defects targets
• Test raw materials,
finished products and
facilities
• Full quality assurance
and traceability
Creating a sustainable
value chain
• Committed to ambitious
10-year targeats
• Greenhouse gas
inventory and pathway
to emissions reduction
established

9
PERFORMANCE
• Sales of consumer packaged infant formula increased 22% to 21,571 MT. The a2 Milk
Company’s growth contribution has not changed, short-term channel demand changes and
inventory planning means Synlait’s growth does not always match in-market sales
• Demand indications from The a2 Milk Company suggest Covid-19 had a positive impact on
consumer-packaged infant formula sales in the first two months of the 2020 calendar year,
however the company was unable to quantify the FY20 impact
• Sales of infant formula base (IFB) powder down. Sales pipeline for FY21 re-building as
multinational brand owners resetting supply options resulting in short-to-medium term
demand changes
CUSTOMERS
The a2 Milk Company partnership continues to strengthen as we share benefits of scale:
• extension of infant formula supply agreement to July 2025 (at the earliest), provides
increased term and volume, over the products for which Synlait have exclusive supply rights.
Confident historical margins can be protected, provided Synlait continues to generate
manufacturing efficiencies;
• look forward to discussions with The a2 Milk Company to consider arrangements which may
facilitate participation in manufacturing and recognise Synlait’s expertise;
• focus on product development and innovation to support The a2 Milk Company’s growth; and
• implemented tamper-evident infant nutrition packaging.
• Customer pipeline remains strong, material opportunities well progressed with established players
• Stream-lined logistics services to improve customer service and quality control and reduce costs
INFANT NUTRITION
Our core business is growing

10
EVERYDAY DAIRY
Through the Dairyworks acquisition we have established a material position in a complementary
category that will diversify Synlait
DAIRYWORKS PROVIDES SYNLAIT WITH ...
... an immediately sustainable earnings stream ... diversification reducing site, customer,
category, and market concentration risk
... flexibility to optimise stream returns above
base commodity prices. We are now closer to
the consumer
Revenue by category
After
(Synlait and Dairyworks)
Before
(Synlait)
Powders and cream
Consumer packaged products
Lactoferrin
Everyday Dairy
$ / per tonne sell price
* Global Dairy Trade reference prices
** Dairyworks average sale price
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Whole Milk Powder*Cheddar*Dairyworks
Cheese**
0
12 month average ($NZD)
• Dairyworks purchased for $112 million
• Overseas Investment Office granted consent.
Settlement 1 April 2020
• Price reflective of approx. 7.1x EBITDA multiple
based on 12 months of forecast earnings to 31
March 2020. Lower than previously announced 7.5x
EBITDA multiple due to strong growth, driven by
successful entry into Australia
• Forecasting sustainable earnings stream of approx.
$15 to $20 million EBITDA emerging in next two
years as growth momentum and synergies realised
• Combined, Talbot Forest and Dairyworks, expected
to achieve pre-tax return on invested capital of 20%
after expected synergies
* Category, channel and geography splits based on forecast FY20 revenue

11
NET POSITIVE FOR THE PLANET
This represents the stand we are taking for the planet
• 12-month nitrogen loss trial recently completed
• Investigating alternative fuel options to reduce
coal reliance
• Bio-diesel fuel trial completed with our
logistics partner
• Synlait now ranks third out of all packaged foods
companies following latest Sustainalytics score
(improved from 34.9 to 21.3)
Prime Minister Jacinda Ardern visited New
Zealand’s first large-scale electrode boiler,
which provides renewable process heat for the
Advanced Dairy Liquid Packing facility. Synlait
made a deliberate decision to not build another
coal boiler as part of its sustainability strategy
announced in 2018, which leads the way to a lower
emissions future for New Zealand as we work to
reach our goal of reducing off-farm greenhouse gas
emissions by 50% by 2028.

12
BUILD A HEALTHIER SYNLAIT
This is about strengthening our company
LIVE OUR PURPOSE
• Whakapuāwai, an environmental programme connecting, our people, our
farmers, and our community through the planting of native trees, opened by
Prime Minister Jacinda Ardern. On-farm planting commenced, goal is to plant
20,000 trees in 2020
DELIVERY OF GROWTH ENABLING SYSTEMS
• Enterprise Resource Planning project progressing well, completing design stage
CULTURE AND CAPABILITY
• Record engagement levels across Synlait
• Ratio of ‘engaged’ to ‘actively disengaged’ staff 5.11:1
PROVIDE A SAFE PLACE TO WORK
• Significant improvement in staff safety attitude survey. Average 2019
score was 4.07 (2018: 3.40)
• Injury rate down 34%. TRIFR 9.0 HY20 (HY19: 13.7).
5
10
20
15
Injury rate continues to fall
6
5
4
3
2
1
201520162017201820192020
FEB-19
MAR-19
APR-19
MAY-19
JUN-19
JUL-19
AUG-19
OCT-19
SEP-19
DEC-19
JAN-20
NOV-19
Ratio of engaged to actively disengaged staff
15.5
13.9
13.3
14.3
14.0
13.7
13.3
12.8
12.4
12.1
9.7
9.0

13
WORLD CLASS VALUE CHAIN
This is what creates value for our customers
MANUFACTURING EXCELLENCE
AND WORLD CLASS SUPPLY CHAIN
MANAGEMENT AND PLANNING
• Dry Store 4 on time and budget.
Recent farmland acquisition enables
further supply chain initiatives that
support Dunsandel’s expansion
• IWS programme progressing well
across business. For example,
Synlait Auckland had a 21% reduction
in unplanned downtime
SAFE FOOD AND MARKET ACCESS
• Received infant formula registration from
General Administration of China Customs
(GACC) for Synlait Auckland
• GACC (general dairy) registration received
for Synlait Pokeno. Enables export of milk
powders (IFB) to China
• GACC registration received for Advanced
Dairy Liquid Packaging facility for export
of cream-based products to China
• Minister Xiao Yaqing of the State
Administration for Market Regulation –
China (SAMR) visited Synlait Pokeno
in November
HEALTHIER FARMING PRACTICES
• On track to have approx. 125 farms Lead
With Pride™ certified in the South Island,
and 15 in the North Island, at end of FY20,
up from 92 and 0 respectively in FY19
Synlait farm suppliers,
alongside our customers,
are our most important
partners. We pride ourselves
on knowing them as people,
rather than numbers.

Synlait’s dedicated laboratory at Dunsandel
14
OUR FINANCIAL PERFORMANCE

15
RESULTS AT A GLANCE
• Net profit after tax down 30% reflecting higher depreciation and interest
costs as we invest for growth
• Sales of consumer packaged infant formula increased 22% to 21,571 MT,
albeit at lower margins as previously signalled
• Total milk processed was up 8.5% due to increased milk supply for Pokeno
• Sales of powders and cream reduced by 18% to 46,259 MT (HY19: 56,116 MT)
primarily due to delayed deliveries
As communicated in the February guidance update Synlait’s HY20
performance was impacted by:
• increased incremental interest, manufacturing and SG&A costs associated
with the Pokeno and Advanced Dairy Liquid Packaging facilities; and
• lower sales volumes of ingredient products than anticipated due to sales
phasing and product mix impacts
• lower sales of infant base powders due to the China infant nutrition
market consolidation.
90
180
80
160
70
140
60
120
50
100
40
80
30
60
20
40
10
20
11.3
33.3
28.2
39.5
FY17
FY17
FY18
FY18
FY19
FY19
FY20
FY20
88.8
74.6
138.6
82.2
152.1
26.2
67.6
41.3
37.3
70.2
26.2
67.6
33.3
64.5
44.9
81.9
1H
1H
Net Profit After Tax
EBITDA
2H
2H
74.1
55.5
HY19HY20Percentage change
Revenue$471 million$559 million19%
NPAT$37.3 million$26.2 million-30%
EBITDA$70.2 million$67.6 million-4%
Depreciation costs$13.7 million$21.2 million55%
Financing costs$4.1 million$9.5 million132%
$ millions
$ millions

16
SALES VOLUME AND INVENTORY
Total revenue up 19% to $559 million (HY19: $471 million), driven by increased
consumer packaged infant formula sales and a lift in commodity prices
CONSUMER PACKAGED INFANT FORMULA
• Sales increased 22% to 21,571 MT (HY19: 17,684 MT)
FINISHED GOODS
• Inventory increased 9% to 48,144 MT (HY19: 44,344 MT)
• Increase driven by 8% more milk being processed during HY20 and larger stock
build of infant base powders due to an increase in safety stock requirement from
increase sales volumes
• Expect to hold significantly higher volumes of infant base powder at the end of
FY20 as cover for the same reason
LACTOFERRIN
• Sales increased 30% to 7.7 MT (HY19: 5.9 MT)
600
60
80
70
60
500
50
400
40
300
30
200
20
100
10
10
20
30
40
50
HY17
H1 2017
HY18
H2 2017
HY19
H1 2018H2 2018H1 2019H2 2019
HY20
HY20
42,962
15,056
35,040
26,726
44,344
23,318
48,144
44,435
16,839
Sales volume and revenue
Finished goods inventory (MT)
54,695
6,349
56,116
17,684
46,259
21,571
Powders & CreamConsumer Packaged Products
Revenue
(000)
(000)$ millions

17
PRODUCTION VOLUME
MILK PRODUCTION
• Milk processed up 8.5% to 46.7 million kgMS (HY19: 43.1 million kgMS)
• Total production (excluding liquid milk, lactoferrin and cheese) increased
4%. Driven by a 25.9% uplift in production of consumer packaged infant formula
to 22,212 MT
• Product mix moved towards consumer packaged infant formula
(HY19: 19% vs HY20: 24%)
LACTOFERRIN PRODUCTION
• Increased significantly to 12 MT in HY20 (HY19: 7 MT)
• Stage two of lactoferrin manufacturing expansion in full production throughout
HY20, resulted in higher throughput of milk and increased yield
TALBOT FOREST CHEESE
• Production was 1,999 MT in HY20
ADVANCED LIQUID DAIRY PACKAGING FACILITY
• Production was 15.3 million litres of milk and cream for Foodstuffs South Island
• Facility commissioned in April 2019
120
100
80
60
15
20
25
30
35
40
45
50
40
10
20
5
75,886
41.9
HY17HY18HY19HY20
38.3
43.1
46.7
64,001
72,852
71,932
17,821
Production volumes
7,088
17,636
22,212
Powders and creamConsumer packaged productsMilk processed
*Excludes liquid milk, speciality ingredients and cheese
(000) MTKgMS

18
GROSS PROFIT PERFORMANCE
GROSS PROFIT PERFORMANCE
• Gross profit has reduced to $82.9 million (HY19 $85.9 million)
• Driven by increased sales of consumer packaged infant formula, offset
by an increase in overhead costs (explained further on slide 19)
GROSS PROFIT / KGMS SOLD
• Synlait continues to maintain a healthy gross profit/kgMS sold
200
175
125
150
75
100
50
25
1
3
2
5
4
44.5
112.1
FY17
H1 2017
FY18
H2 2017
FY19
H1 2018H2 2018H1 2019H2 2019
FY20
H1 2020
1.9
1.8
3.3
3.0
2.7
3.2
2.8
186.3
82.9
Gross profit
Gross profit/KgMS
67.6
1H2H
85.2
166.5
81.3
85.9
100.4
82.9
$ millions
Gross Profit/MT (prior metric) is still available in the appendix section, note it does not include liquid products

19
OVERHEADS
• Overhead costs increased 27% to $37.1 million (HY19: $29.2 million)
driven by a:
• $3.2 million increase in employee costs reflecting ongoing investment in
people. This continues to be Synlait’s largest driver reflecting continued
decision to invest in our capability;
• $0.9 million establishing China sales office;
• $0.8 million contribution from Talbot Forest cheese; and
• $0.6 million increase in Synlait Pokeno overheads
• There is an increased focus on controlling overhead expenses
70
60
40
50
20
30
10
21.5
44.5
FY17FY18FY19FY20
62.1
3 7.1
Overheads
23.0
1H2H
24.5
54.2
29.7
29.2
32.9
3 7.1
40
5
10
15
20
25
35
30
HY19PokenoEmployee
costs
Talbot
Forest
Cheese
China
Office
OtherHY20
29.2
0.6
3.2
2.5
0.8
0.9
3 7.1
Overheads bridge
$ millions
$ millions

20
OPERATING CASH FLOW
• Synlait typically experiences seasonality in cash flows due to the milk
production curve
• Operating cash flow was down 61% to $12.2 million in HY20 (HY19:
$31.5 million)
• Reduction primarily due to inventory build during HY20, which was
$52.1 million greater than HY19, with an increase in infant base
powder on hand
• Will have stronger second half cashflow from increased consumer
packaged infant formula sales and a reduction in inventory
200
$ millions
150
100
50
0
(50)
14.2
FY17FY18FY19FY20
Operating cash flow
129.4
1H2H
75.0
23.4
31.5
105.2
12.2
40
5
10
15
20
25
35
30
HY19EBITDAWorking
Captial
Movement
OtherHY20
31.5
(18.4)
(2.5)
1.7
12.2
Operating cash flow$ millions

21
NET DEBT
146.6
50
100
150
250
300
200
350
450
500
400
H1 2017H2 2017H1 2018H2 2018H1 2019H2 2019H1 2020
82.6
49.7
114.9
287.6
333.6
447.4
Net debt
600
100
200
300
400
500
HY19
Net Debt
Investment
Capex
Investment &
Intangibles
Operating
Cash Flow
InterestOtherHY20 Net
Debt
287.6
222.0
30
(117.4)
20.4
4.7
447.4
Net debt bridge
• Net debt increased $159.7 million to $447.4 million in HY20 (HY19:
$287.6 million)
• Continued significant investment in major growth projects
and operational projects continued with $220.0 million of
capital expenditure:
• Second infant-capable manufacturing facility in Pokeno:
$156.0 million
• Advanced Dairy Liquid Packaging facility at Dunsandel:
$32.8 million
• In addition to this, investment and intangibles spend of $30 million,
includes Talbot Forest Cheese acquisition (settled August 2019)
• Net debt now made up of existing banking facilities and NZX listed
$180 million of unsecured, subordinated, fixed rate bonds
• Planned drawdown of additional debt to acquire Dairyworks in April
and farmlands adjacent to our Dunsandel facility, increasing debt
by $112 million and $25.7 million respectively. Drawdowns are from
existing bank facilities
• Forecasts reflect that we will remain within banking covenant
leverage ratios despite high capital expenditure spend and lower
profit guidance. Remain committed to long-term target leverage ratio
of no higher than 2.5x
$ millions
$ millions

Synlait, Pokeno
22
OUTLOOK

23
SECOND HALF RETURNS
We are on track to deliver ...
On track to deliver stronger sales of consumer packaged infant formula and
lactoferrin in the second half of FY20. This is driven by the seasonality of our
business. Historically:
• Consumer packaged infant formula sales are higher in the second half,
than the first (FY19: 41% occurred in H1)
• Lactoferrin sales are seasonal due to production phasing, both volume and
pricing to increase on last year (FY19: 72% occurred in H2)
• Synlait Pokeno will be operational for the final six months of
FY20 compared with four months in HY20, due to commissioning
and regulatory approvals
50
35
30
25
40
20
30
15
20
10
10
5
5,246
3.9
4.3
4.0
5.9
7.7
10,753
6.36.7
12.0
15.1
15,999
1 0.1
11.0
16.0
21.0
FY16
FY16
FY17
FY17
FY18
FY18
FY19
FY19
FY20
FY20
18,776
35,580
42,907
28.1
6,349
16,839
17,684
21,571
12,427
18,741
Consumer-packaged infant formula sales (MT)
Lactoferrin sales (MT)
1H2HRange
1H2HRange
(000)
25,223

24
FULL YEAR OUTLOOK
... NPAT guidance range of $70 million to $85 million
• FY20 EBITDA is expected to be stronger than FY19 due to higher sales
of consumer packaged infant formula and lactoferrin offset by increased
operational costs
• Synlait has a strong and growing core business which has put us in the
position of being able to invest for the future
200
90
80
70
60
50
160
180
40
120
140
30
80
100
20
40
60
20
10
10.9
11.3
41.3
37.3
26.2
48.7
24.8
28.2
33.3
44.9
83.7
35.7
39.5
74.6
82.2
FY16
FY16
FY17
FY17
FY18
FY18
FY19
FY19
FY20
FY20
88.8
138.6
152.1
33.3
74.1
70.2
67.6
55.5
64.5
81.9
EBITDA
NPAT
1H2HRange
1H2HRange
10.0
$ millions
$ millions$ millions
70
60
50
40
30
20
10
21.2
20.9
25.6
27.6
44.7
12.2
15.0
9.3
9.4
22.7
35.9
33.4
34.8
3 7.1
67.4
FY16FY17FY18FY19FY20
Combined depreciation and financing costs
DepreciationFinancing Costs
Forecast
(excludes
Dairyworks)

25
CORE BUSINESS PERFORMING WELL, CONTINUES
TO SUPPORT GROWTH STORY
• Establishing a scalable infant nutrition business that leverages Synlait’s
differentiated value chain is a core focus and remains a significant
contributor to Synlait’s growth strategy
• Core business growth continues driven by increased consumer-
packaged infant formula and strong lactoferrin sales
• Diversifying Synlait through investments in complementary categories
and markets is an important part of our long-term objectives
• Synlait Pokeno and the Advanced Dairy Liquid Packaging facility
at Dunsandel are world class facilities built to accommodate future
growth. We remain confident of delivering returns on these investments
in line with our growth capital expenditure hurdles over the longer term
STRONG CORE
BUSINESS
GROWTH
COST TO
ACCOMMODATE
FUTURE GROWTH

26
CYCLICAL ROCE PROFILE:
BUILDING IN FRONT OF THE CURVE
Synlait is nearing completion of its fourth major
investment cycle, having invested $470 million in
growth projects over the past 24 months
Building ‘in front of the curve’ results in a saw-tooth
ROCE profile
Drivers of short-term return drag include:
• Low efficiency and utilisation rates of assets
• Low manufacturing and overhead recoveries –
depreciation, operational staff, support staff
• Product mix weighting to lower value products
during early months of operation
1) Return on capital employed (ROCE): EBIT / average capital employed
2) FY20 based on mid-range of forecast
900
1,000
1,100
800
1,200
D1 approaches
full utilisation
D2 coming
online (Sep-11)
D2 approaches
full utilisation
D3 approaches
full utilisation
D3 coming
online (Sep-15)
D4 coming
online (Sep-19)
$ millionsROCE (Pre-tax)
700
21%
24%
27%
30%
23%
36%
600
18%
500
15%
400
12%
300
9%
200
6%
100
3%
0%
93.9
96.6
81.6
186.5
267.0
311.8
323.2
455.2
423.5
493.3
633.9
FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20
Net operating assets and ROCE
Net operating assetsReturn on capital employed (Pre-tax)

27
THIS CAPABILITY GIVES SYNLAIT CHOICE, BUT MARKET
AND CUSTOMER OPPORTUNITIES MUST ALIGN 
OUR APPROACH TO BUSINESS DEVELOPMENT: ACTIVELY CREATING OPPORTUNITIES
SYNLAIT AND ITS TARGET CUSTOMERS
TYPICAL TIMEFRAME
IMPLEMENTATION
DISCOVERY
POTENTIAL MARKETS
We assess:
ENGAGE
• Understand customer
needs and product
REFINE
• Refine together and
balance speed to market
with time/cost
COMMIT
• Agree timeframe
DELIVER
• Project underway
POTENTIAL CUSTOMERS
We assess:
Strategic fitStrategic fit
Long-term value
potential
Opportunity for ‘test
and learn’ approach
Specific requests
Partnership fitSize
Market alignmentMarket accessValue potential
Capability fit
Brand fitGrowth
Existing products
Minor customisation
Major customisation
Consumer-packaged infant formula
1 to 3 months
2 to 6 months
6 to 24 months (depending on shelf-life and market registration requirements)
12 to 36+ months (depending on shelf-life and market registration requirements)
Increasing value

28
POKENO: HOW WE ARE THINKING ABOUT UTILISATION
Short-and-long term drivers of return
SHORT-TERM (FY20 - FY21) DRIVERS OF RETURNS
1. Full year of revenue to offset full year of costs
2. Benefits of operating leverage as facility builds towards
full production
LONGER-TERM (FY22+) DRIVERS OF RETURNS
1. Transition product mix into higher margin products
2. Increasing utilisation rates through efficiency programmes
and production optimisation
45
Pokeno ROCE
40
30
35
20
80%
25
100%
10
40%
60%
15
5
10%
20%
30%
20%
0%
Time
Pokeno utilisation (illustrative only)
Pokeno ROCE profile (illustrative only)
IngredientsInfant Grade Products
Utilisation
Pokeno ROCE (Revised)
1) Return on capital employed (ROCE): EBIT / average capital employed
Illustrative
only
Illustrative
only
(000)

29
SYNLAIT GUIDANCE UPDATE
Synlait remains comfortable with its FY20 earnings guidance range, which was updated in February 2020.
Synlait expects FY20 earnings guidance to be between $70 million and $85 million net profit after tax. Notwithstanding that,
Synlait still anticipates strong growth in consumer-packaged infant formula sales volumes over the full year. Factors contributing
to this performance include:
• incremental costs of the new Pokeno facility impacting standard manufacturing costs;
• lower sales of infant base powders due to the China infant nutrition market consolidation;
• higher SG&A costs due to increased business size and the continued focus on investing in future growth opportunities; and
• a positive impact of a full year of operation of the expanded lactoferrin facility, albeit with more pricing volatility.
Synlait announced last week that Dairyworks is expected to make an EBITDA contribution of approximately $4 million in the
remainder of FY20. This translates to an NPAT contribution of approximately $2 million, after borrowing costs and deprecation.
Synlait did not consider this amount material enough to adjust its FY20 guidance range given wider global uncertainty emerging.

Fresh Milk Production Line - Synlait, Dunsandel
30
KEY TAKEAWAYS
FROM TODAY
1. Core business performing well, continues
to support growth story
2. Confident of maintaining previous margins
under extended The a2 Milk Company
agreement
3. Customer pipeline remains strong, with
material opportunities well progressed
4. Dairyworks provides a great base for us to
build on and participate in the consumer
branded sector
5. Confident we are building a strong, sustainable
company we can continue to be proud of

Dunsandel milk reception bay
31
APPENDICES

32
GROSS PROFIT BY CATEGORY
Sales volume (MT)Gross profit ($m)GP/MT
H1 2019FY 2019H1 2020H1 2019FY 2019H1 2020H1 2019FY 2019H1 2020
Powders and Cream56,116106,80246,25969.6142.259.6959969899
Consumer Packaged Powders17,68442,90721,57114.034.317.8789800824
Lactoferrin62182.313.36.3397,938646,099823,492
Subtotal73,806149,73067,83885.9190.183.79491,2681,234
Consumer Packaged Liquids----(3.5)1.2---
Cheese-----(2.0)---
Grand Total85.9186.382.9

33
BANKING FACILITIES, COVENANTS AND BOND ISSUE
SYNLAIT CURRENTLY HAS FOUR SYNDICATED BANK
FACILITIES IN PLACE WITH ANZ AND BNZ.
1. Working capital facility (multi-currency) – facility limit of $250 million
and reviewed annually
2. Revolving credit facility (Facility A) – facility limit of $150 million,
amortising $30 million on 1 August 2020 and maturing 1 August 2021
3. Revolving credit facility (Facility B) – facility limit of $50 million
maturing on 1 August 2023
4. Revolving credit facility (Facility C) – facility limit of $50 million
maturing on 1 August 2023
BOND ISSUE
Synlait listed NZ$180 million of unsecured, subordinated, fixed rate
bonds listed on the NZX in December 2019
WE HAVE FIVE KEY COVENANTS IN PLACE WITH
OUR SYNDICATED BANKS.
These are:
1. Interest cover ratio – EBITDA to interest expense of no less than
3.00x based on full year forecast result
2. Minimum shareholders funds – no less than $295.5 million
3. Working capital ratio – inventory and debtors to working capital
facility outstanding of no less than 1.5:1
4. Leverage ratio – total debt to EBITDA is no greater than 4.0x
5. Senior leverage ratio – total debt excluding Subordinate Bond to
EBITDA is no greater than 3.0x
We complied with these bank covenants at all times during HY20

34
POKENO UPDATE
Timeline of the process to date
February 2018
Synlait announced the conditional purchase of 28 hectares of land in Pokeno to establish our second nutritional powder manufacturing site. It was the
vendor’s responsibility to have the covenants removed
November 2018
High Court removed covenants over the land which required the land to be maintained as rural. The High Court declined to award compensation to the
covenant holder on the basis that they would not suffer any loss as the covenants were of little practical value. Synlait then took legal title to the land
May 2019
Court of Appeal overturned the High Court decision to remove the historic covenants
June 2019
Synlait filed an application for leave to appeal to the Supreme Court to have this decision overturned
August 2019
Supreme Court advised there will be an oral hearing prior to a decision on whether leave to appeal the reinstatement of the land covenants on the site
by the Court of Appeal will be granted
September 2019
Synlait confirmed that a reasonable settlement offer had been made and reinforced it remained comfortable with its legal position. Synlait determined,
and the auditors agreed, that no provision was required under the accounting standards in its full year 2019 financial statements. Synlait also announced
it processed the first milk at Pokeno in September
October 2019
Supreme Court announced it will hear the case surrounding Synlait’s Pokeno land
November 2019
Supreme Court announced it will hear the case on Wednesday 29 and Thursday 30 April 2020

35
This presentation is intended to constitute a summary of certain information about Synlait
Milk Limited (“Synlait”) or in connection with its half year 2020 financial results. It should
be read in conjunction with, and subject to, the explanations and views in documents
previously released to the market by Synlait.
This presentation is not an offer or an invitation, recommendation or inducement to acquire,
buy, sell or hold Synlait’s shares or any other financial products and is not a product
disclosure statement, prospectus or other offering document, under New Zealand law or
any other law.
This presentation is provided for information purposes only. The information contained
in this presentation is not intended to be relied upon as advice to investors and does not
take into account the investment objectives, financial situation or needs of any particular
investor. Investors should assess their own individual financial circumstances and should
consult with their own legal, tax, business and/or financial advisers or consultants before
making any investment decision.
Any forward looking statements and projections in this presentation are provided as a
general guide only based on management’s current expectations and assumptions and
should not be relied upon as an indication or guarantee of future performance. Forward
looking statements and projections involve known and unknown risks, uncertainties,
assumptions and other important factors, many of which are beyond the control of
Synlait and which are subject to change without notice. Actual results, performance or
achievements may differ materially from those expressed or implied in this presentation.
No person is under any obligation to update this presentation at any time after its release
except as required by law and the NZX Listing Rules, or the ASX Listing Rules.
Any forward looking statements in this presentation are unaudited and may include non-
GAAP financial measures and information. Not all of the financial information (including any
non-GAAP information) will have been prepared in accordance with, nor is it intended to
comply with: (i) the financial or other reporting requirements of any regulatory body or any
applicable legislation; or (ii) the accounting principles or standards generally accepted in
New Zealand or any other jurisdiction, or with International Financial Reporting Standards.
Some figures may be rounded and so actual calculation of the figures may differ from the
figures in this presentation. Some of the information in this presentation is based on non-
GAAP financial information, which does not have a standardised meaning prescribed by
GAAP and therefore may not be comparable to similar financial information presented by
other entities. Non-GAAP financial information in this presentation has not been audited
or reviewed.
Any past performance information in this presentation is given for illustration purposes
only and is not indicative of future performance and no guarantee of future returns is
implied or given.
While all reasonable care has been taken in relation to the preparation of this presentation,
to the maximum extent permitted by law, no representation or warranty, expressed or
implied, is made as to the accuracy, adequacy, reliability, completeness or reasonableness
of any statements, estimates or opinions or other information contained in this presentation,
any of which may change without notice. To the maximum extent permitted by law, Synlait,
its subsidiaries, and their respective directors, officers, employees, contractors, agents,
advisors and affiliates disclaim and will have no liability or responsibility (including, without
limitation, liability for negligence) for any direct or indirect loss or damage which may be
suffered by any person through use of or reliance on anything contained in, or omitted from,
this presentation.
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 Synlait.
DISCLAIMER

Mt Hutt, Canterbury, New Zealand
36
INVESTORS
Hannah Lynch
Corporate Affairs Manager
+64 21 252 8990
hannah.lynch@Synlait.com
MEDIA
Linda Chalmers
Senior Communications Advisor – External
+64 21 951 347
linda.chalmers@synlait.com

---

SYNLAIT MILK LIMITED
INTERIM FINANCIAL STATEMENTS
for the six months ended
31 January 2020

CONTENTS
DIRECTORS’ RESPONSIBILITY STATEMENT 2
HALF-YEAR FINANCIAL STATEMENTS
INCOME STATEMENT 3
STATEMENT OF COMPREHENSIVE INCOME 4
STATEMENT OF CHANGES IN EQUITY 5
STATEMENT OF FINANCIAL POSITION 6
STATEMENT OF CASH FLOWS 7
NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity 8
2. Basis of preparation of six monthly
financial report 8
3. Revenue recognition 10
4. Segment information 10
5. Expenses 11
6. Reconciliation of profit after income tax to
net cash outflow from operating activities 12
7. Trade and other receivables 12
8. Inventories 13
9. Property, plant and equipment 13
10. Leases 14
11. Intangible assets 15
12. Loans and borrowings 15
13. Share capital 15
14. Related party transactions 16
15. Business combinations 18
16. Contingencies 19
17. Commitments 19
18. Events occurring after the reporting period 19
INTERIM REVIEW REPORT 20

2
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors are pleased to present the condensed interim financial statements for Synlait Milk Limited and its
subsidiaries, Synlait Milk Finance Limited, The New Zealand Dairy Company Limited, Eighty Nine Richard Pearse Drive
Limited, Synlait Business Consulting (Shanghai) Limited and Synlait Foods (Talbot Forest) Limited (together “the Group”)
as set out on pages 3 to 19 for the six months ended 31 January 2020.
The Directors are responsible for ensuring that the condensed interim financial statements present fairly the financial
position of the Group as at 31 January 2020 and the financial performance and cash flows for the six months ended
on that date.
The Directors consider that the condensed interim financial statements of the Group have been prepared using
appropriate accounting policies, consistently applied and supported by reasonable judgements and estimates and that
all relevant financial reporting and accounting standards have been followed.
The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy,
the determination of the financial position of the Group and facilitate compliance of the financial statements with the
Financial Markets Conduct Act 2013.
For and on behalf of the Board.
Graeme Milne
Chairman
18 March 2020
Willem Jan (Bill) Roest
Independent Director
18 March 2020

Synlait Financial Statements HY20
The accompanying notes form part of and are to be read in conjunction with these financial statements.3
INCOME STATEMENT
For the six months ended 31 January 2020
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
Notes$’000$’000$’000
Revenue3559,286470,9501,024,305
Cost of sales5(476,410)(385,061)(837,976)
Gross profit82,87685,889186,329
Other income3604337898
Share of (loss)/profit from associates-(580)(580)
Sales and distribution expenses5(13,871)(12,410)(26,836)
Administrative and operating expenses5(23,230)(16,782)(35,303)
Earnings before net finance costs and income tax46,37956,454124,508
Finance expenses(8,610)(4,097)(8,819)
Finance income497411,232
Loss on derecognition of financial assets(938)(755)(1,842)
Net finance costs(9,499)(4,111)(9,429)
Profit before income tax36,88052,343115,079
Income tax expense(10,684)(15,025)(32,840)
Net profit after tax for the period26,19637,31882,239
Earnings per share
Basic and diluted earnings per share (cents)14.6120.8245.89

The accompanying notes form part of and are to be read in conjunction with these financial statements.4
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 January 2020
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
Notes$’000$’000$’000
Profit for the period26,19637,31882,239
Items that may be reclassified subsequently to profit and loss
Effective portion of changes in fair value of cash flow hedges1,51514,529(21,323)
Exchange differences on translation of foreign operations(49)--
Income tax on other comprehensive income(424)(4,068)5,971
Total items that may be reclassified subsequently to profit and loss1,04210,461(15,352)
Other comprehensive income for the period, net of tax1,04210,461(15,352)
Total comprehensive income for the period ended27,23847,77966,887

Synlait Financial Statements HY20
The accompanying notes form part of and are to be read in conjunction with these financial statements.5
STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 January 2020
Share
capital
Unaudited
Employee
benefits
reserve
Unaudited
Cash flow
hedge
reserve
Unaudited
Foreign
currency
translation
reserve
Unaudited
Retained
earnings
Unaudited
Total
equity
Unaudited
Notes$’000$’000$’000$’000$’000$’000
Equity as at 1 August 2018268,074930(10,796)-166,536424,744
Profit or loss for the period----37,31837,318
Other comprehensive income
Effective portion of changes in fair value of
cash flow hedges
--14,383--14,383
Movement in time value hedge reserve--146--146
Income tax on other comprehensive income--(4,068)--(4,068)
Total other comprehensive income--10,461--10,461
Total comprehensive income--10,461-37,31847,779
Employee benefits reserve-293---293
Total contributions by and distributions to owners-293---293
Equity as at 31 January 2019268,0741,223(335)-203,854472,816
Equity as at 1 August 2019268,0741,658(26,148)-248,775492,359
Profit or loss for the period----26,19626,196
Other comprehensive income
Effective portion of changes in fair value of
cash flow hedges
--1,515--1,515
Exchange differences on translation of
foreign operations
---(49)-(49)
Income tax on other comprehensive income--(424)--(424)
Total other comprehensive income--1,091(49)-1,042
Total comprehensive income--1,091(49)26,19627,238
Employee benefits reserve13470(426)---44
Total contributions by and distributions to owners470(426)---44
Equity as at 31 January 2020268,5441,232(25,057)(49)274,972519,642

The accompanying notes form part of and are to be read in conjunction with these financial statements.6
STATEMENT OF FINANCIAL POSITION
As at 31 January 2020
31 January 2020
Unaudited
31 January 2019
Unaudited
31 July 2019
Audited
Notes$’000$’000$’000
ASSETS
Cash and cash equivalents6,97413,49316,007
Trade and other receivables768,18445,19161,933
Intangible assets114,9594,1703,686
Goods and services tax refundable7,8414,8513,689
Income accruals and prepayments6,8112,4169,554
Inventories8306,441234,879164,849
Derivative financial instruments2,5257,1402,358
Other current assets2,50019,73820,500
Total current assets406,235331,878282,576
Non-current assets
Property, plant and equipment9934,497698,408845,202
Intangible assets1117,84510,43516,428
Goodwill19,1433,6433,643
Other investments110110110
Derivative financial instruments1,2534,90345
Right-of-use asset1011,861--
Total non-current assets984,709717,499865,428
Total assets1,390,9441,049,3771,148,004
LIABILITIES
Trade and other payables305,788193,458216,020
Loans and borrowings12174,328131,09999,626
Current tax liabilities32,43140,80629,220
Derivative financial instruments29,7987,23427,960
Lease liabilities104,629--
Total current liabilities546,974372,597372,826
Non-current liabilities
Loans and borrowings12276,267169,291249,482
Derivative financial instruments8,8034,71510,686
Deferred tax liabilities31,29729,95822,651
Lease liabilities107,961--
Total non-current liabilities324,328203,964282,819
Total liabilities871,302576,561655,645
Net assets519,642472,816492,359
Equity
Share capital13268,544268,074268,074
Reserves(23,874)887(24,490)
Retained earnings274,972203,855248,775
Total equity attributable to equity holders of the Group519,642472,816492,359
Total equity and liabilities1,390,9441,049,3771,148,004

Synlait Financial Statements HY20
The accompanying notes form part of and are to be read in conjunction with these financial statements.7
STATEMENT OF CASH FLOWS
For the six months ended 31 January 2020
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
Notes$’000$’000$’000
Cash flows from operating activities
Cash receipts from customers563,840484,1551,025,311
Cash paid for milk purchased(277,945)(265,362)(461,369)
Cash paid to other creditors and employees(269,580)(189,020)(403,420)
Net movement in goods and services tax(4,155)1,6842,846
Income tax (payments) / refunds(1)-(26,670)
Net cash inflow / (outflow) from operating activities612,15931,457136,698
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired15(18,988)(17,238)(18,000)
Interest received497411,232
Acquisition of property, plant and equipment(87,321)(174,635)(309,314)
Proceeds from sale of property, plant and equipment(81)8(147)
Acquisition of intangible assets(3,902)(4,790)(11,127)
Net cash outflow from investing activities(110,243)(195,914)(337,356)
Cash flows from financing activities
Proceeds from issuance of subordinated bonds12176,706--
(Repayment) / drawdown of borrowings12(120,000)72,300152,300
Net movement in working capital facility44,65281,77850,305
Interest paid(11,163)(8,257)(18,069)
Repayment of lease liabilities(1,144)--
Net cash inflow / (outflow) from financing activities89,051145,821184,536
Net (decrease) / increase in cash and cash equivalents(9,033)(18,636)(16,122)
Cash and cash equivalents at the beginning of the period16,00732,12932,129
Cash and cash equivalents at end of the period6,97413,49316,007

8
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
1. REPORTING ENTITY
The consolidated condensed interim financial statements presented are those of the Group, including Synlait Milk Limited and its
subsidiaries Synlait Milk Finance Limited, The New Zealand Dairy Company Limited, Eighty Nine Richard Pearse Drive Limited,
Synlait Business Consulting (Shanghai) Limited and Synlait Foods (Talbot Forest) Limited.
Synlait Milk Limited is primarily involved in the manufacture and sale of dairy products.
The parent company, Synlait Milk Limited, is a profit-oriented entity, domiciled in New Zealand, registered under the Companies Act 1993
and listed on the New Zealand Stock Exchange and the Australian Securities Exchange. Synlait Milk Limited is a FMC reporting entity
under the Financial Market Conducts Act 2013 and its financial statements comply with that Act.
2. BASIS OF PREPARATION OF SIX MONTHLY FINANCIAL REPORT
The unaudited consolidated condensed interim financial statements have been prepared in accordance with Generally Accepted
Accounting Practice (NZ GAAP) as appropriate for interim financial statements. They comply with International Accounting Standard
34 (IAS 34) and New Zealand equivalent to International Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and other
applicable financial reporting standards appropriate for profit oriented entities.
Synlait Milk Limited is subject to seasonal fluctuations which have an impact on both revenue and production levels due to northern
hemisphere dairy market demand and the dairy milking season. Synlait Milk Limited recognises this is the nature of the industry and
plans and manages the business accordingly.
Items included in the condensed interim financial statements of the Group are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The financial statements are presented in New Zealand Dollars ($),
which is the Group’s functional currency and are rounded to the nearest thousand ($000).
There has been one significant change in accounting policies during the current period, with the adoption of NZ IFRS 16 Leases
(NZ IFRS 16) from 1 August 2019. Apart from the impact of this standard, the same accounting policies and methods of computation
are followed in these financial statements as the most recent annual financial statements for the year ended 31 July 2019.
Milk accrual
At interim reporting date, the milk accrual is a key management estimate. The milk accrual represents the amount the Group is
forecasting to pay its suppliers for the current year less advance payments made during the period. The Group’s policy is to value its
inventory using the weighted average monthly milk price necessary to achieve the Group’s forecast annual milk price for the season.
Managements’ forecast of the milk price for the season is the basis of the calculation of the milk accrual and at interim reporting date
requires judgement from management. Key assumptions in the calculation of the forecast annual milk price for the season include
dairy commodity prices, on-farm milk composition, sales and production curves, annual foreign exchange conversion rate and other
conversion costs.
(a) Changes in Accounting Policies NZ IFRS 16 ‘Leases’ (effective 1 August 2019)
Effective 1 August 2019, the Group has adopted Leases (NZ IFRS 16), which supersedes NZ IAS 17 Leases (NZ IAS 17) and related
interpretations. Under NZ IAS 17, leases were previously classified as either operating or financing for lessees based on an assessment
of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Group.
As the Group’s leases were previously classified as operating, straight-line operating lease expense was recognised over the lease
term in the comparative period.

Synlait Financial Statements HY20
9
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
2. BASIS OF PREPARATION OF SIX MONTHLY FINANCIAL REPORT (CONTINUED)
NZ IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees, with a right-of-use asset (“ROU asset”)
representing the Group’s right to use the underlying asset, and a lease obligation representing its obligation to make lease payments.
Amortisation expense for ROU assets and interest expense for lease obligations replaces the straight-line operating lease expense
recognised under NZ IAS 17.
The Group has applied NZ IFRS 16 using the modified retrospective approach, under which the initial ROU asset is measured at an
amount equal to the lease liability resulting in no impact to retained earnings at 1 August 2019. Short-term and low-value recognition
exemptions were applied, as well as practical expedients allowing for the use of hindsight to assess the lease term for contracts with
extension options and the exclusion of leases with a term of less than one year remaining at the transition date. The Group also utilised
the practical expedient which allowed for all existing contracts which were previously identified as leases to be treated as leases under
NZ IFRS 16. NZ IFRS 16 was not applied to contracts which were not previously treated as leases under NZ IAS 17 as at transition date.
The impact of transition is outlined under Note 10, with changes in accounting policies outlined below.
Policy applicable from 1 August 2019
Lease Definition
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if it
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. An identified asset may be
implicitly or explicitly specified in a contract, but must be physically distinct, and must not have the ability for substitution by a lessor.
The Company has the right to control an identified asset if it obtains substantially all of its economic benefits and either pre-determines,
or directs how and for what purpose the asset is used.
Measurement of Right- of- Use Assets and Lease Obligations
On initial application, the Group elected to record ROU assets equal to the corresponding present value of the remaining lease liability.
Subsequent additions were measured at the initial amount of the lease obligation adjusted for any lease payments made at, or before,
the commencement date, plus any initial direct costs incurred, less any lease incentives received.
The ROU asset is subsequently depreciated on a straight-line basis over the shorter of the term of the lease, or the useful life of the asset
determined on the same basis as the Group’s property, plant and equipment. The ROU asset is periodically reduced by impairment losses,
if any, and adjusted for certain remeasurements of the lease obligation.
The lease obligation is initially measured at the present value of lease payments remaining at the lease commencement date,
discounted using the Group’s incremental borrowing rate. Lease payments included in the measurement of the lease obligation,
when applicable, may comprise fixed payments, variable payments that depend on an index or rate, amounts expected to be payable
under a residual value guarantee and the exercise price under a purchase, extension or termination option that the Group is reasonably
certain to exercise.
The lease obligation is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount
expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase,
extension or termination option. When the lease obligation is remeasured, a corresponding adjustment is made to the carrying amount
of the ROU asset.
Recognition Exemptions
The Group has elected not to recognise ROU assets and lease obligations for short-term leases that have a lease term of twelve months
or less or for leases of low-value assets. Payments associated with these leases are recognised as an operating expense on a straight-line
basis over the lease term within costs and expenses on the consolidated Income Statement. The Group has also elected to apply a single
discount rate to portfolios of leases with reasonably similar characteristics.

10
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
3. REVENUE RECOGNITION
Sale of goods
The Group manufactures and sells a range of milk powder, milk powder related products, liquid milk and cheese to customers.
Revenue from contracts with customers is recognised when the control of the goods has been transferred to customers, being at the
point when the goods are delivered. Delivery of goods is completed (i.e. the performance obligation is fulfilled) when the goods have
been delivered pursuant to the terms of the specific contract agreed with the customer and the risks associated with ownership have
been transferred to the customer.
Revenue is measured according to the contracted price agreed with customers, which represents fair value of the consideration received
or receivable, net of returns, discounts and allowances. Revenue is only recognised to the extent that it is highly probable that a significant
reversal will not occur. The payment terms vary depending on the individual contracts. No deemed financing components are present as
there are no significant timing differences between the payment terms and revenue recognition.
4. SEGMENT INFORMATION
The Group currently operates in one industry, being the manufacture and sale of milk powder, milk powder related products, liquid milk
and cheese. The Board makes resource allocation decisions based on expected cash flows and results of the Group’s operations as a
whole and the Group therefore has one segment.
The Group operates in one principal geographical area being New Zealand. Although the Group sells to many different countries,
it is understood that a significant portion of both infant nutritional and ingredients sales are ultimately consumed in China.
Revenues of approximately 63% are derived from the top three external customers (31 January 2019: 64%, 31 July 2019: 66%).
The proportion of sales revenue by geographical area is summarised below:
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
$’000$’000$’000
Dairy products559,286470,9501,024,305
Other sundry income604337898
559,890471,2871,025,203
Period ended
31 January 2020
Period ended
31 January 2019
Year ended
31 July 2019
China8 %11 %9 %
Rest of Asia23 %28 %25 %
Middle East and Africa6 %8 %7 %
New Zealand35 %29 %31 %
Australia24 %22 %25 %
Rest of World4 %2 %3 %
Total100%100%100%

Synlait Financial Statements HY20
11
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
5. EXPENSES
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
Notes$’000$’000$’000
The following items of expenditure are included in cost of sales
Depreciation and amortisation17,17212,05924,289
Employee benefit expense33,82121,44248,711
Kiwisaver contributions7495491,166
Increase / (decrease) in inventory provision81,471(4,162)(1,805)
(Decrease) / increase in onerous contracts provision8(397)1,793(809)
The following items of expenditure are included in sales and
distribution
Depreciation and amortisation2,8697651,625
Employee benefit expense5,6484,83310,195
Kiwisaver contributions153122252
The following items of expenditure are included in administrative
and operating
Depreciation and amortisation1,1348631,725
Employee benefit expense10,7908,45017,986
Kiwisaver contributions276237480
Directors fees369344752
Share based payments expense321331644
Write off of intangibles1,561-123

12
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
6. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH OUTFLOW FROM
OPERATING ACTIVITIES
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
$’000$’000$’000
Profit for the period26,19637,31882,239
Non-cash and non-operating items:
Depreciation and amortisation of non-current assets19,30213,68727,639
Depreciation of right-of-use assets1,874--
Loss / (gain) on sale of fixed assets81(8)147
Write off intangible assets1,561-123
Share of loss from associate-580580
Non-cash share based payments expense321331644
Interest costs classified as financing cash flow8,6104,1548,819
Interest received classified as investing cash flow(49)(741)(1,232)
Loss on derecognition of financial assets9386981,842
Deferred tax7,4691,4874,341
Gain / (loss) on derivative financial instruments96(463)22
Movements in working capital:
(Increase) / decrease in trade and other receivables(6,251)1,953(14,788)
Decrease / (increase) in income accruals and prepayments2,7431,924(5,214)
(Increase) in inventories(141,591)(89,475)(19,444)
(increase) / decrease in goods and services tax refundable(4,152)1,6842,846
Increase in trade and other payables90,16544,91346,306
Increase in current tax liabilities3,21113,4151,828
Working capital items acquired1,635--
Net cash inflow from operating activities12,15931,457136,698
7. TRADE AND OTHER RECEIVABLES
The Group has derecognised trade receivables that have been sold pursuant to the terms of receivables purchase agreements that the
Group has entered into with its bankers. The Group has assessed the terms of the agreements and has determined that substantially all
the risks and rewards have been transferred to the respective banks.

Synlait Financial Statements HY20
13
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
8. INVENTORIES
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
$’000$’000$’000
Raw materials at cost46,37646,73940,058
Work in progress at cost10,712--
Finished goods at cost246,941157,413118,090
Finished goods at net realisable value2,41230,7276,701
Total inventories306,441234,879164,849
The value of raw material inventories at $46.4m (9,455 MT) (31 January 2019: $46.7m, 11,836 MT; 31 July 2019: $40.1m, 11,307 MT),
have remained steady. The tonnage has decreased comparative to January 2019 due to increased holdings of low value-to-weight
packaging, and reductions in high value-to-weight nutritional ingredients.
Synlait Milk Limited’s liquid and powdered dairy products are a constant manufacturing stream, with small timeframe to manufacture,
so there is not a material amount of work in progress. Synlait Foods (Talbot Forest) Limited operations involve substantial maturation times
so give rise to a material work in progress balance of $10.7m (1,578 MT).
Finished goods on hand have increased to $249.4m (48,144 MT) (31 January 2019: $188.1m, 44,344 MT; 31 July 2019: $124.8m, 23,318MT).
Finished goods have increased in value due to an increased holding of infant nutritional base powder. Finished goods held at net realisable
value has decreased due to a significant decrease in the onerous contracts provision.
The cost of inventories recognised as an expense during the year was $460.9m (31 January 2019: $378.9m; 31 July 2019: $838.0m).
The cost of inventories recognised as an expense includes $2.5m (31 January 2019: $2.9m; 31 July 2019: $7.4m) in respect of write-downs
of inventory to net realisable value.
The total inventory condition provision as at reporting date was $1.8m (Jan 2019: $0.3m, Jul 2019: $0.3m) which all related to finished goods.
The total onerous contracts inventory provision was $0.1m (Jan 2019: $2.0m, Jul 2019: $0.5m). This decrease is predominately due to
favourable exchange rates.
9. PROPERTY, PLANT AND EQUIPMENT
During the six months ended 31 January 2020, $88.7m has been added to capital work in progress relating primarily to three projects
(Synlait Pokeno, Drystore 4, and Separator Capacity Upgrade). During this period, $282.8m of historical work in progress as well as
additions during the six months relating primarily to two projects (Synlait Pokeno and Separator Capacity Upgrade) have been
transferred to fixed assets.
Refer to Note 15, Business Combinations, for further details regarding assets acquired as part of the acquisition of Synlait Foods
(Talbot Forest) Limited and Note 10, Leases, for further details regarding assets added as part of the transition to NZ IFRS 16.

14
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
10. LEASES
The Group’s leased assets include buildings and plant and equipment. Effective 1 August 2019, the Group adopted NZ IFRS 16 as outlined in
Note 2, recognising ROU assets and lease obligations of $7.2m. The following table reconciles the Group’s lease commitments disclosed in
the consolidated financial statements as at 1 August 2019, to the lease obligations recognised on initial application of NZ IFRS 16:
Lease obligations were measured at the present value of remaining lease payments at the transition date, discounted at the Group’s
incremental borrowing rate. The Group’s weighted average rate applied at 1 August 2019 was 3.49%.
Interest expense on lease obligations for the 6 months ended 31 January 2020 was $0.2m and is included in finance expense.
Operating lease expenses relating to short-term and low-value leases not included in the measurement of lease obligations for
the 6 months ended 31 January 2020 was $1.0m.
Lease commitments, 31 July 20198,902
Recognition exemptions for short-term and low-value leases(2,444)
Discounted using the incremental borrowing rate at 1 August 2019(683)
Lease remeasurements1,427
Lease obligations recognised at 1 August 20197,202
31 January 2020
Unaudited
$’000
Cost
Properties13,240
Plant and Equipment495
Total cost13,735
Accumulated depreciation
Properties(1,777)
Plant and Equipment(97)
Total accumulated depreciation(1,874)
Net book value
Properties11,463
Plant and Equipment398
Total net book value11,861
Lease Obligations
Contractual, undiscounted cash flows associated with the Group’s lease obligations are as follows:
Within one year5,038
Between one and five years8,567
Beyond five years-
Total undiscounted lease obligations13,605
Discounted lease obligations recognised on the Company’s consolidated balance sheet are as follows:
Current4,629
Non-current7,961
Total discounted lease obligations12,590
Right-of-use assets

Synlait Financial Statements HY20
15
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
11. INTANGIBLE ASSETS
New Zealand Units (NZUs) are purchased to offset carbon emissions under the New Zealand Emissions Trading Scheme. The units are
measured at cost. As at 31 January 2020, the Group held $4.9m of current NZUs and $2.8m of non-current NZUs (31 January 2019:
$4.2m current, $1.1m non-current; 31 July 2019: $3.7m current, $3.3m non-current)
12. LOANS AND BORROWINGS
Interest bearing liabilities are recognised initially at fair value, net of transaction costs incurred. Interest bearing liabilities are subsequently
carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the
profit and loss component of the consolidated statement of comprehensive income over the period of the borrowings using the effective
interest method.
The bank loans and working capital facility within Synlait Milk Limited are secured under the terms of the General Security Deed dated
26 June 2013, by which all present and future property is secured to the ANZ Bank and Bank of New Zealand.
The Group facilities include:
• A secured revolving credit facility (Facility A) of $150m that matures on 1 August 2021, amortising $30m on 1 August 2020.
• A secured revolving credit facility (Facility B and Facility C) of $100m that matures on 1 August 2023.
• A secured working capital facility of NZD $250m that matures on 21 August 2020.
The Group is subject to capital requirements imposed by its bank through covenants agreed as part of the lending facility arrangements.
The Group has met all externally imposed capital requirements for the six months ended 31 January 2020, 31 January 2019 and the year
ended 31 July 2019.
Retail bonds
Borrowings under the retail bond programme are supported by a Master Trust Deed and supplemented by the Series Supplement entered
into between the Group and the New Zealand Guardian Trust Company Limited. The Retail Bonds are unsecured and unsubordinated and
mature on 17 December 2024. At 31 January 2020, the retail bond had a fair value of $181.1m, based on NZX Debt Market valuation.
13. SHARE CAPITAL
The Group had 179,306,908 ordinary shares on issue as at 31 January 2020 (31 January 2019: 179,223,028, 31 July 2019: 179,223,028).
During the reporting period, 83,880 new ordinary shares were granted to participants of the Group’s Long Term Incentive scheme as
a result of share options that were granted under the scheme vesting and being converted to ordinary shares (31 January 2019: nil,
31 July 2019: nil). These shares were issued to the participants at no cost.
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
$’000$’000$’000
Current liabilities
Working capital facility (syndicated) NZD99,80093,40047,240
Working capital facility (syndicated) USD44,52837,69952,386
Revolving credit facility30,000--
174,328131,09999,626
Non-current liabilities
Revolving credit facility100,000170,000250,000
Revolving credit facility fees(440)(709)(518)
Retail Bonds180,000--
Bond facility fees(3,293)--
276,267169,291249,482

16
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
14. RELATED PARTY TRANSACTIONS
Parent entity
Bright Dairy Holding Limited hold 39.02% of the shares issued by the Synlait Milk Limited (31 January 2019: 39.04%; 31 July 2019: 39.04%).
Bright Dairy Holding Limited is a subsidiary of Bright Food (Group) Co. Limited, a State Owned Enterprise domiciled in the Peoples
Republic of China.
Other related entities
In June 2013 a subsidiary of Synlait Milk Limited, Synlait Milk Finance Limited, was set up primarily for holding all banking facilities for the
Group and related interest rate swaps. Funds are loaned to Synlait Milk Limited and interest is charged at market rates.
In January 2015, the Group acquired 25% of the shares of Sichuan New Hope Nutritionals, an infant formula company registered in
China. This company owns and markets the “Akara” and “E-Akara” infant formula brands in the Chinese market, which are exclusively
manufactured by Synlait Milk Limited. New Hope Innovation (Hong Kong) Trading Company Limited is engaged in the import and export of
dairy foods. Main products include whole milk powder, skim milk powder and whey powder. The company is the Hong Kong operations of
the Chinese New Hope Dairy group, New Hope Dairy.
In May 2017 Synlait Milk Limited acquired 100% of the share capital of The New Zealand Dairy Company Limited and Eighty Nine Richard
Pearse Drive Limited. The New Zealand Dairy Company Limited was constructing a blending and canning plant in Auckland, which was
subsequently sold to Synlait Milk Limited. The New Zealand Dairy Company Limited is now a non-trading entity. Eighty Nine Richard
Pearse Drive Limited owns the land and buildings at which the Auckland blending and canning plant was constructed. Eighty Nine Richard
Pearse Drive Limited leased its land and buildings to The New Zealand Dairy Company Limited, and now leases them to Synlait Milk Limited.
In May 2019, Synlait Business Consulting (Shanghai) Limited was incorporated. The wholly owned foreign entity started operations from
1 August 2019 and the principal activity of the entity is to provide services to assist Synlait to market products in China.
On 1 August 2019, the Group acquired selected assets and liabilities of Talbot Forest Cheese Limited. The acquirer was a newly
incorporated company, Synlait Foods (Talbot Forest) Limited. The acquisition included a cheese manufacturing plant located in Temuka,
New Zealand, capable of manufacturing a variety of cheese products.
(a) Transactions with other related parties
All transactions with related parties are at arm’s length on normal trading terms.
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
$’000$’000$’000
Purchase of goods and services
Bright Dairy and Food Co Ltd - Directors fees10296196
Sale of goods and services
Bright Dairy and Food Co Ltd - Sale of milk powder products-6,4646464
Bright Dairy and Food Co Ltd - Reimbursement of costs-(91)(91)
New Hope Innovation (Hong Kong) - Sale of milk powder products1,773--

Synlait Financial Statements HY20
17
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
14. RELATED PARTY TRANSACTIONS (CONTINUED)
(b) Outstanding balances
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Period ended
31 January 2020
Unaudited
Period ended
31 January 2019
Unaudited
Year ended
31 July 2019
Audited
$’000$’000$’000
Current receivables (sales of goods and services)
Bright Dairy and Food Co Ltd - Sale of milk powder products111
Bright Dairy and Food Co Ltd - Reimbursement of costs(335)(133)(233)
Sichuan New Hope Nutritionals Ltd - Sale of milk powder products(72)(68)224
Sichuan New Hope Nutritionals Ltd - Reimbursement of costs300280-
New Hope Innovation (Hong Kong) - Sale of milk powder products1,122--

18
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
15. BUSINESS COMBINATIONS
Acquisitions of businesses are accounted for using the acquisition method. The cost of the acquisition is measured at fair value, which is
calculated as the sum of the assets given, liabilities incurred or assumed, and equity instruments issued by the Group, at acquisition date,
in exchange for control of the acquiree. Acquisition related costs are recognised in profit or loss as incurred. The results of subsidiaries
acquired or disposed of during the year are included in the Consolidated Income Statement from the date of acquisition or up to the date
of disposal as appropriate.
On 1 August 2019, the Group completed the acquisition of selected assets and liabilities of Talbot Forest Cheese Ltd. (“TFC”) for total
consideration of $37.9m, including inventory. The acquirer was a newly incorporated company, Synlait Foods (Talbot Forest) Limited.
On the acquisition date, the Group paid $19.0m. Of the remaining consideration payable, $18.1m was applied against an intercompany
loan owed by the vendor to the Group and $0.9m has been retained and will be payable upon completion of pre-completion works and
plant acceptance tests. The acquisition has been accounted for on a provisional basis in accordance with NZ IFRS 3, Business Combinations.
The acquisition of TFC includes a cheese manufacturing plant located in Temuka, New Zealand, capable of manufacturing a variety of
cheese products with an annual production capacity of 12,000MT, along with a consumer cheese brand. The acquisition excludes the
Talbot Forest Cheese artisan factory in Geraldine, New Zealand.
The following summarises the consideration paid for TFC and amounts of assets acquired and liabilities assumed recognised at the
acquisition date:
The land, buildings, plant and equipment, inventory, and brand have been recognised at acquisition date fair values based on third
party valuations.
Goodwill arose in the acquisition of the business operations of TFC because the cost of acquisition reflected the benefit of future cash
flows above the current fair market value of the assets acquired, and the synergies and future market benefits expected to be obtained
from the cheese manufacturing plant and related brand.
Acquisition costs of $0.1m and $0.3m have been recognised in the FY20 half year and FY19 full year income statements, respectively.
From the date of acquisition, TFC has contributed $8.0m to revenue and a loss of ($2.0m) to net profit after tax. Had the combination not
taken place, revenue of the Group from continuing operations would have been $551.3m, and the net profit from continuing operations for
the Group would have been $28.2m.
August 1
2019
$’000
Current Assets
Inventory2,520
Non-current Assets
Property, plant and equipment12,745
Land and buildings5,960
Brand1,700
Non-current Liabilities
Deferred tax(476)
Total identifiable net assets at fair value22,449
Goodwill arising on acquisition15,500
Total consideration37,949
Less: Debt and accrued interest payable owed to the Group extinguished upon acquisition(18,076)
Less: Retentions and other payables(885)
Net cash outflow from acquisition18,988

Synlait Financial Statements HY20
19
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 January 2020
16. CONTINGENCIES
The Group is currently involved in a dispute regarding restrictive covenants attached to land it purchased in Pokeno. In February 2018,
the Group announced the conditional purchase of 28 hectares of land in Pokeno to establish its second nutritional powder manufacturing
site. The land was subject to restrictive covenants limiting the development of the land that the vendor was required to remove.
The vendor applied to the High Court to have the restrictive covenants removed.
In November 2018, the High Court removed the restrictive covenants. The High Court also declined to award compensation to the
covenant holder on the basis that they would not suffer any loss due to the extinguishment of the covenants on the basis that they were
of little practical value. The Group took legal title to the land following the High Court’s decision. The covenant holder appealed to the
Court of Appeal which in May 2019 overturned the High Court’s decision.
In June 2019, the Group filed an application for leave to appeal to the Supreme Court to have the Court of Appeal’s decision overturned.
The Supreme Court held an oral hearing on 21 October 2019 where leave to appeal was granted. The appeal is set to be heard by the
Supreme Court on 29 April 2020.
There are a range of possible outcomes for the Group including a negotiated settlement between the parties. Given the range of possible
outcomes the Group is not able to reliably estimate any potential liability.
No other significant contingent liabilities are outstanding at balance date (31 January 2019: $nil; 31 July 2019: $nil).
17. COMMITMENTS
The Group has committed expenditure for the construction of a new dry store warehouse of $20.1m as at January 31 2020 (31 January
2019: $nil; 31 July 2019: $2.5m). The total value of this construction project is $42.9m. The group is also in the process of completing
construction of its Pokeno Processing Plant which has committed expenditure of $18.5m (31 January 2019: $140.0m; 31 July 2019: $49.5m)
and Liquid Milk Processing Plant which has committed expenditure of $1.7m (31 January 2019: $26.3; 31 July 2019: $16.9). As at 31 January
2020, there is no further capital commitment (31 January 2019: $nil; 31 July 2019: $5.8m).
18. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 24 February 2020, Synlait Milk Limited received approval from the Overseas Investment Office (OIO) to enter into an agreement to
acquire two farms which neighbour Synlait’s Dunsandel site and collectively form a large 582-hectare unit. The purchase price of the
farms is $25.7m and settlement is expected to take place in 2020. The land enables Synlait to pursue several strategic supply chain
and sustainability initiatives that support Dunsandel’s long-term operation and expansion. For further details please refer to the market
announcement on 11 March 2020.
On 12 March 2020, Synlait Milk Limited received approval from the OIO to purchase the shares of Dairyworks Limited (Dairyworks).
Dairyworks specialises in the processing, packaging and marketing of dairy products. A New Zealand leader in the Everyday Dairy
category, with a growing Australian presence, Dairyworks supplies New Zealand consumers with almost half of its cheese, a quarter of
its butter, as well as milk powder and ice cream. The agreed purchase price is $112m and settlement of the transaction is expected to
occur on 1 April 2020. For further details please refer to the market announcement on 12 March 2020.
There were no other events occurring subsequent to 31 January 2020 which require adjustment to or disclosure in the financial statements.

20
INDEPENDENT REVIEW REPORT
TO THE SHAREHOLDERS OF SYNLAIT MILK LIMITED
We have reviewed the condensed consolidated interim financial statements of Synlait Milk Limited and its subsidiaries (‘the Group’) which
comprise the consolidated statement of financial position as at 31 January 2020, and the consolidated income statement, consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the
period ended on that date, and a summary of significant accounting policies and other explanatory information on pages 3 to 19.
This report is made solely to the Group’s shareholders, as a body. Our review has been undertaken so that we might state to the
company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the opinions we have formed.
BOARD OF DIRECTORS’ RESPONSIBILITIES
The Board of Directors are responsible for the preparation and fair presentation of the condensed consolidated interim financial statements,
in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the Board of
Directors determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial statements
that are free from material misstatement, whether due to fraud or error.
OUR RESPONSIBILITIES
Our responsibility is to express a conclusion on the condensed consolidated interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed by the Independent Auditor of the
Entity (‘NZ SRE 2410’). NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to believe that the
condensed consolidated interim financial statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ
IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting. As the auditor of Synlait Milk Limited, NZ SRE 2410 requires that
we comply with the ethical requirements relevant to the audit of the annual financial statements.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is a limited assurance engagement.
The auditor performs procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International
Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on those financial statements.
Other than in our capacity as auditor and the provision of other assurance and taxation compliance services, we have no relationship
with or interests in Synlait Milk Limited or its subsidiaries. These services have not impaired our independence as auditor of the
Company and Group.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 January 2020 and its
financial performance and cash flows for the period ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting.
18 March, 2020
Chartered Accountants
Auckland, New Zealand

---

Results announcement
19 March 2020



Results for announcement to the market
Name of issuer Synlait Milk Limited (SML)
Reporting Period 6 months to 31 January 2020
Previous Reporting Period 6 months to 31 January 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$559,286 18.8%
Total revenue $559,286 18.8%
Net profit/(loss) from continuing
operations
$26,196 -29.8%
Total net profit/(loss) $26,196 -29.8%
Interim/final dividend
Amount per Quoted Equity
Security
Not proposing to pay dividends.
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Pr ior comparable period
Net tangible assets per Quoted
Equity Security
$2.66 $2.54
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Refer to the following accompanying documents:
- HY20 Shareholder Newsletter
- HY20 Investor Presentation and
- HY20 Unaudited Financial Statements

Authority for this announcement
Name of person authorised to
make this announcement
Graeme Milne, Synlait Chair
Contact person for this
announcement
Hannah Lynch, Synlait Corporate Affairs Manager
Contact phone number +64 21 252 8990
Contact email address hannah.lynch@synlait.com
Date of release through MAP 19/03/2020

Unaudited financial statements accompany this announcement.

=== IR PAGE TRANSCRIPT: Half Year Conference Call Transcript 19 March ===

TRANSCRIPTION
Company: Synlait Milk Limited
Date: Thursday, 19 March 2020
Time: 10:00am NZDT
Duration: 1 Hour and 5 minutes
Reservation Number: 10003443

[START OF TRANSCRIPT]
Operator: Thank you for standing by and welcome to the Synlait Half Year 2020 results call. All
participants are in a listen only mode. There will be a presentation followed by a
question and answer session. If you wish to ask a question, you'll need to press the
star key, followed by the number one on your telephone keypad. I would now like to
hand the conference over to Mr. Leon Clement, CEO. Please go ahead.
Leon Clement: Good morning, everybody and thank you for joining the Synlait Half Year Results
Investor Presentation. I'm joined here this morning by Nigel Greenwood, our CFO
and Hannah Lynch. Who looks after corporate affairs and investor relations for us.
We've just loaded up quite a detailed pack, which we think is really important. There's
some good context for Synlait given the current, both environment that we're in
globally and the direction of travel of our business and the mode that we're in.
There's a lot of detail in here. We encourage you to work through it. We won't be able
to cover all of the slides today. However, we'll work through some of the more salient
points and ensure the key takeaways are understood, open up for questions and
then pick up, with many of you, in our subsequent sessions.
On the agenda today, I'm going to work through just what does COVID 19 mean for
Synlait. We'll skip through our six months and review, and I'll flip to Nigel, who will
pick up our financial performance. I'll come back in for outlook and a little bit of
context here.
I'm moving to slide three of the investor presentation. Very, pretty uncertain world at
the moment, isn't it? I suspect it's going to get worse and weirder before we return to
a new normal. One thing I would say about the early signs of the sector impact is,
dairy seems to be holding up pretty well. As evidenced by some of the GDT options
that we've seen and some of the wider signals that we're seeing in our sector. At this
stage, relative to some of the other sectors around the world, dairy seems to be
holding up reasonably well and is resilient to this.

From a Synlait perspective, we have an Incident Assessment Team sitting on this
every day, as many companies do. We've been focused on three main issues, two of
which are still pretty light for us. The first one is making sure that we have a strong
and robust supply chain and that those channels remain open. We're not seeing a
significant operational impact to date. We've been monitoring and working closely
with the strong relationships that we have with our raw material suppliers. Have on
hooks from initial constraints there and things are largely getting better there, and
also monitoring carefully the container space availability to ensure that we can hit
shipping schedules for the export of our products. Broadly, we feel reasonably
comfortable on supply chain at this stage. I don't foresee any immediate impacts, but
obviously with the uncertainty out there, we are monitoring this daily as we go
forward.
The second area that's really important to us, is making... with our plants, remain
operational. We've moved swiftly and quickly there to really adopt the same
approach that the New Zealand government has taken, which is to flatten the curve
of the spread and many countries around the world are doing the same. It's our
responsibility to do the same for our sites. So many of our staff who can, we're
practical, had been asked to work from home. We've put in place reasonable travel
restrictions for only essential business travel and we continue to make sure that we
limit and direction with the key capability that we have to run our sites. We're running
some detailed scenario planning for how attendance may impact our ability to do
that. So far, we see that we have reasonable resilience. Should that develop and look
at this stage, we're really hopeful with that, going to be our plans for operating. A call
out to all our staff who we are really leaning on here.
From a product perspective, just to make sure that it's clear, that there's no evidence
that food is likely to be a transmission risk of this virus. So European Food Safety
and Ministry of Primary Industries here in New Zealand all support that position. It's
important that, that's understood, as well.
So look at more through now, straight through to slide five. The key highlights on our
half year financials. I think we did signal in our guidance update in February where
we would be, so this shouldn't be a significant surprise. Revenue up 19% to $559
million supported by a 22% increase in consumer package sent from formula sales.
Our EBITDA guideline is flat and consistent with where we were this time last half.
You will see some dilution and our net profit after tax, 30% down versus last half,
reflecting the higher depreciation and interest costs as we invest for future growth.
So it's important that it's understood that our EBITDA earning stream is largely
stable. You'll see in our outlook, it's also, we're forecasting that to grow this year. The
costs of both borrowing and running the depreciation on our new assets is what's
pulling our bottom line a little bit back this year. But we do see in the longer term as
emerging and pushing through that.

As I said at the start, the current milk price forecast of $7.25, reasonably encouraging
to see GDC holding up well in the auction this week. But we will monitor that and see
what happens going forward.
And not withstanding that, on slide six now. I'll speak through some of the challenges
that we have had and I think it's important that we go through this just to make sure
the key messages are understood. I was talked a lot in recent months about Pokeno
and the uncertainty around our land and site there with the covenant. Really pleased
to see that the Supreme Court will hear that case in April. The key message there, is
if we won there, this thing goes away. If we lose in the Supreme Court, we're
basically back where we are today, with the dispute with our neighbour on how we
resolve that. So we're really comfortable with our legal position and we'll look forward
to our Supreme Court hearing.
We recognise we have significant capacity to fill our customer pipeline is really
exciting, but we don't have material announcements to make this time around. We
are well progressed on material customer opportunities that will diversify both Synlait
and fill up our new facilities. And I did want to clarify that despite the fact that this
year we've seen our infant base powder sales drop away, and that's largely because
of the dynamic in China, we are moving swiftly to rebuild that pipeline as we move
into FY21 with multinational brand owners as they reset their supply options.
We did talk a little bit about the dynamic in China, about a deceleration of some of
the growth in the market and that SAMR registrations were limiting opportunities for
new entrance. The implication for us is that we pivot our focus to supporting The a2
Milk Company, to build a strong leadership position there and start to leverage that
capability to partner with established players. We are seeing the China infant nutrition
regulatory environment continue to move towards the Synlait model of integrated
manufacturing. That's the model that we've invested in. It's the model where we take
raw milk all the way through to the finished product in a can. It's the model where we
hold the licence and market access requirements for our customers. It's the model
where we invest heavily in quality and the regulatory systems to ensure market
access is available.
So those changes that we talked around are starting to both shift our strategic
direction to move and work with established players, leverage that critical credibility
and protect the investment we've made across our value chain.
Talking about the long life commissioning and the long life line within our advanced
dairy liquid plant, we've got a strong customer pipeline there. We're excited about the
recipes. We're developing at our plants [inaudible 00:07:56]. We are seeing some
commissioning delay with the knock on impact of the liquid milk line and do its peak
sales, of our UHD, to kick off in the first half next year.
Covid-19, I've spoken to and the short term financial performance. We'll also cover
off in a bit more detail as we go through.

Slide seven, I'll also go reasonably quickly through because there is more detail on
the subsequent slides, but this is really how it led us up into our strategy. So our
purpose of doing milk differently for a healthier world. Our growth paths of Infant
Nutrition, Everyday Dairy and Foodservice, are our current and medium term focuses
and we're making some good progress on our enabling strategy across people,
planet, and enterprise.
Pulling out to slide eight. This one I stress that... I know this is a standard slide but it's
important that everybody understands, that we are making investments to continue to
strengthen this. A large portion of our capital investment has been to strengthen what
we see as our core point of difference when we look across our competitive-cy and
what our customers value and what creates competitive advantage for us.
Differentiated milk supply, the integration of our manufacturing chain, how we
navigate complex regulatory environments, and the quality testing are established
and fundamentally key points of difference for us. Our investments and R&D are
moved towards sustainable activity within the marketplace, we believe will be future
differentiators. We fundamentally believe that customers value or simply can't do
without some of these SVIX and that's really important as we go forward, particularly
in our infant nutrition strategy.
On slide nine, there is, as we move in to Infant Nutrition. It's quite a bit of cheeks on
here, but there's five key points that I want everybody to take away. The first one is
that, we may look at infant nutrition, Covid-19 and naturally, we are seeing a small lift
coming through from The a2 Milk Company on the first two months of the 2020
calendar year. So that's starting to lift positive demand signals that will come through
in the first pass of this half. It's a little early to see how that will quantify out for the full
financial year. But initial signals suggest that demand is holding up and growing
initially and that'll bring forward some of the orders that we have in our pipeline.
I mentioned before we're moving quickly to rebuild our pipeline of IFB. Just to provide
a bit more context here, the sales that dropped out of our expectations this year,
we're roughly 50% with established players and 50% with emerging players that
we're struggling to get registrations. Both of those existing sales were exposed to
China. As we see multinational brand companies start to bring those manufacturing
ingredients into their own network, we're also seeing them start to outsource and
reset the supply expectations for their non China customers and their non China
manufacturing footprint. And those are the opportunities we're hunting down and
helping us rebuild our IFB pipeline, which is critical to support the investment in new
assets and optimise them as we start to increase utilisation.
The third important point there relates to the section on our customers and The a2
Milk Company partnership, that we continue to value very much in terms of creating
value for each other. I want to clarify, there was some perhaps either speculation or
questioning when we did the recent guidance update, that perhaps historical margins
and now HR relationship where we're looking to dilute or could be diluting as a result
of that contract renegotiation. We have, at minimum, five and a half years to run on
that exclusive supply agreement and we're really confident that historical margins

can be protected, provided Synlait continues to generate manufacturing efficiencies.
So, that's an important message. We want everybody to take away that our historical
margins aren't under threat as a result of that renegotiation and we feel comfortable
that we're creating value and sharing the benefits of scale with our partners.
Also, looking forward, you may have noticed I chose intention to participate in
manufacturing and what we're looking forward to those discussions with The a2 Milk
Company, as we consider that and their desire to have them potentially participating
in manufacturing, as we also recognise Synlait's expertise. So we'll we'll move
forward with those discussions and look forward to the recognition of all of the
investment we've made across the quality aspects, our integrated manufacturing site
and the fact that we hold the registration for a2's market access into China.
We also have strong customer pipeline. We've referred to this a number of times. But
we have material opportunities well progressed with established players in the space
and those are moving forward at a good pace. So those are the key items on the
Infant Nutrition. It's a key slide for us, in terms of looking at that sector. I know you
understand the impact on our business and overall there's some good signs there.
Albeit with this, favourably in our future growth, we are working in the same rates and
supporting that growth with the activity I've just spoken through.
Moving to slide 10, many of you think you joined the update that we had once, the
Dairyworks acquisition had gone through. So the key news in the everyday dairy
space, is this acquisition. Look, we feel we've got a really good business here with
Dairyworks. We bought it at a strong multiple. It's got strong momentum at 7.1x
EBITDA, which improved from the 7.5 we announced. There were some questions
around how we saw the earnings streams develop. I just wanted to clarify that today,
that we see a good stable earning streams based on that multiple of $15 to $20
million EBITDA, as growth momentum consolidates and we realise the synergies that
we see with Talbot Forest GS. So we see some strong upside coming into our
businesses as associated with that.
Also, I want to just remind those of you that are on the call that we had a transaction
date, there of 1st of September, a settlement date of 1st of April. The retained
earnings that were created through that period remain for the benefit of Synlait within
the lock box and those earnings are total $7 million. So they will transfer to Synlait,
as we sit along this transaction, on the 1st of April.
The chart on the middle, just demonstrates that there's material diversification around
customer category and market concentration. And the chart on the right, just
demonstrates how this delivers an opportunity for us to optimise our milk solids. We
have a bias towards protein and fat within the cheese category that we're entering
into here or growing. And it also allows us to participate in moving closer to the
consumer and moving up the value chain.
Moving to slide 15, some quick updates on our enabling strategy and the work that
we're doing on sustainability and for the environment. Some really good progress on

nitrogen loss trials, alternative fuels and bio-diesel for logistics partners. We have a
metric that we ran with Sustainalytics which feeds into some of our other key tools.
I'm really pleased to share that Synlait now ranks third of all packaged food
companies, with that risk score improving from 34.9 to 21.3.
Building a healthier Synlait on slide 12, some great progress there with our initiative
and commitment to native trees, starting to build some good momentum. We've got
our ERP project well progressed, completing the design stage there. Our
engagement continues to improve. There's a chart on the top right there that shows
some good progress there and that continues to be a strong support for our culture
and the organisation that we're building and our people's commitment to our purpose
and of course and what we're trying to create. And also safety rates continuing to
drop now below 10. We see lots of opportunity for further improvement there and we
need to continue to reduce that and ensure that our people go home safely every
day.
I'm sorry, they're saying the world-class value chain, good progress against Dry Store
4. The IWS Programme and Manufacturing Excellence is also continuing to make
good progress. And there's an example there, of Synlait Auckland reducing their
unplanned downtime by 21% versus same period last year as we start to step up and
use that facility more.
Safe food and market access, I've talked to this being a key point of difference
across our value chain and actually it's testament to the work that the guys do here.
In the last half, we've got three GACC registrations. The first one for our Synlait
Auckland site for blending and canning infant formula registration. The second one,
Synlait Pokeno recently received, get general dairy registration, which covers IFB
powders. And also we got get registration for our Advanced Dairy Liquid facilities. So
those are well positioned to hit market access into China.
I also hosted the minister of the State Administration for Market Regulation in
November at our Pokeno site. It was a great opportunity for us to showcase that site
and make sure that key officials within the charter regulatory seeing, understand the
role that we're playing, in terms of tiffing, high quality New Zealand ingredients and
moving them to provide nutrition for Chinese families. In healthier farming practises,
some good progress there on our labour product programme, which continues to be
our best in class product farming.
So, I'll finish up this, sort of, intro comments here. I'll now pass to Nigel, who's going
to provide a bit of an update on our financial performance. I'll be back to talk through
that, later on.
Nigel Greenwood: Good morning everyone. It's nice to join all of you on the call again. So looking at
slide 15 results at a glance, so a net profit for the first half, was down 30% on the last
year's first half. That's primarily as a result of the hard depreciation and interest costs
that we incurred and now associated with the commissioning of both the Pokeno site
and liquid milk plant. More good enough news that we had was, as Leon mentioned

earlier, was a 22% increase on that and formula milk sales, we're fixing that we are
still seeing strong growth in our core business.
We processed 8.5% more milk as a result of taking on milk supply and to support our
Pokeno plant. However, we did sell less ingredient products in the first half, mainly
due to delivery delays and product mix issues that we'll see high volumes of
ingredient sales coming through in the second half which will support our full year
guidance.
As we communicated back in February, the key reasons for a lower first half result
were the increased interest manufacturing and SG&A costs associated with the
Pokeno and Advanced Dairy Liquid processing plants. The lower sale volumes of our
ingredient products than anticipated due to sales hike and product mix impacts and
also the lower sales of our infant based products, due to the consolidation of the
China infant nutrition market.
Moving on to sales, volume, and inventory. Total revenue is up 19% to $560 million.
Again, reflecting the growth of our business, but also the higher quality price market.
We are and this is this half, last year. We increased our sales of infant formula by
22%. But we are holding more every half year than we did this time last year by 9%.
That's partly driven by increased milk that we're getting through Pokeno, but also for
sales facing issues that I mentioned earlier that we'll see high volumes of products
sold in the second half. And we had made a conscious decision to manufacturer high
levels of infant base powder from fresh milk in the first half, in order reduce the
amount of reprocessing we'll have to do in the second half as we ramp up our infant
formula production. And also pleasing to see, lactoferrin volumes increase in
production in the first half as well. As we now have both of our lactoferrin plants
operating at capacity.
Production volume, I've already talked through the increased milk processed and the
total production being up on last year. Product moves more towards consumer
packaged infant formula with 19% last year, up to 24% this year. Again reflecting,
converting our milk solids into higher value product production. Lactofferin production
up. We now have both plants operating. With the acquisition of Talbot Forest
Cheese, on the 1st of August last year, we now have produced 2000 tonne of cheese
in the first half with that company. And our Advanced Liquid Dairy Packaging Facility
processed 15 and a half million litres of cream for Foodstuffs, in the first half.
Gross profit performance. Well again, notwithstanding the
They've impact performance half on half. We are keeping our gross profit relatively
low in ball, with last year at 83 million versus 86 million last year reflecting the shift
towards formula, so that's driven by the increased sales of consumer packages
performing, but it's offset by the drag that the Pokeno site in particular, is having on
our financial performance in the first half. We've also introduced a new measure or
new metric, because we are now manufacturing both powders and liquids, it no
longer is possible to reflect a gross margin per metric tonne effectively. So we're now

measuring the conversion of that kilogrammes of milk solid into higher value
products, which is the gross profit per kilogramme solved. So you can see from the
chart on the right that we are still maintaining a very strong conversion rate of our
kilogrammes that we receive in and converting them into high profit performing
products.
Overheads are up 27% to 37 million. That's again driven by increased focus on our
growth opportunities but also the consequence of taking on new facilities such as
Tolbert Forest Cheese and Pokeno, where they do bring increased overheads. As
well as establishing our China office, we incurred some upfront costs and then the
establishment of that, that will smooth out over time and of course we continue to see
increases in our employee costs in the back office. Having said that, the last little
point is very important, and this very challenging environment and uncertain
environment in which we are all operating, we are having a very strong focus at
looking at our overhead expenditure in the second half, and have a process
underway to ensure that we manage that effectively. We only spend what we need to
spend and we would expect to see some reasonably material reductions in our
forecast overhead spend in the second half of the year as a consequence of the
review currently under way.
Operating cash flow is down in the first half of last year. That predominantly is a
result of the lower ingredient deliveries that we've experienced and seeing higher
inventories being held at the half year. We are a seasonal business, we've always
talked about being a seasonal business and we will see stronger operating cash
flows come through in the second half through this sell out of our inventory, the
increased sales of infant formula and also lactoferrin and so we remain positive about
achieving a very strong overall operating cash flow for the full year.
Net net has increased, significantly from the first half last year. And of course that's
as a consequence of the investments we made into Pokeno and liquid milk. The
investment we made into Tolbert Forest Cheese as well. So its of no surprise. Having
said that, we are now in a somewhat better position having done the bond issue in
December last year, and we consider ourselves very fortunate when we got that
completed and got that done at the right time because that reduces our exposure to
our banking partners, and ensures that we've got committed debt facilities for over
180 million for the next five years.
We've still got some major investments to complete over the next half previously
signalled to the market, being the payments for the dairy works acquisition of
approximately 112 million and also as a purchase of our two dairy farms of 26 million.
With all that said, our current forecast gives us confidence that we will remain within
our banking covenants through to the end of the year, albeit at slightly higher ratios
than previously anticipated, but we remain comfortable that we should achieve that
outcome. And that's a completion of mo... of the slides that I'm presenting. And I'll
now hand back to Leon.

Leon Clement: Thank you, Nigel. So I'll just move to outlook and some context slides for the
dynamic within our business, which I think are also helpful and what's happened
subsequent constant conversations with many of you. Look, Nigel mentioned this
before and on slide 23, we really just want to flag that we are a seasonal business.
We'll encourage you to continue to look at us on a year, on year basis and there are
some key factors that have historically driven that that remained true. If anything, the
seasonality of half on half or a lower first half and a stronger second half continue to
evolve in our business.
The first one is, as you can see on the chart on the right as expectations that we will
have a very strong first, second half and our infant nutrition business. You can see
from the F1 19' second half that we had a run rate exiting near of 25000 odd tonne.
We did feel that that was a good starting point for our four year forecast this year and
clearly that was one of the reasons why we came out with this guidance update in
February, we've seen in the first half that moderated down to 21500 tonne. We do
see a strong second half coming back, which should land us just below 50000 and
the consumer package is then performing the sales for the full year.
The other factor that as materially impacting us in the seasonality is as we've stood
up our second plant and lactoferrin, we do see sales matching our production
volumes and output. We've increased our consumer... our lactoferrin sales to 7.7
metric tonne. We see quite a significant build in the second half, and I would like to
flag that we... both volume and prices will be well up on what we achieved last year.
We did flag that we saw some moderation in our initial assumptions on pricing. That
does not mean that we are seeing a decline in both price and volume versus same
period last year for the second half, and lactoferrin continues to contribute really
positively to our organisation. And finally, just to flag that the keynote's been running
for four months, in the first half, it'll run for six months in the second. So that's another
factor that supports both operational output overhead recoveries as we move them to
the second half.
So four year outlooks. The slide on page 24 just peels back the onion a little bit on
our impact outlook and we're just making sure that it's well understood that our
earnings growth is forecast to grow this year at an EBITDA level and the key driver
why MCAT is moderating to flat... to a soft declined as of the depreciation and
finance and costs associated with us creating new opportunities. So EBITDA grow
impact broadly flat to slightly declining, driven by a significant step up in the
depreciation and financing costs, and they are coming because we are creating
exciting new future opportunities for our business. At the start of this year, we
expected that our earnings will grow through that and allow us to grow both EBITDA
and impact, that hasn't transpired for the assumptions that we step you through in
February. But look, we're still excited about the future of our organisation as we start
to bring utilisation on to our plants.
And that's the key driver for us. So if you move to slide 25 I think it's just a really
simple diagram that shows the dynamic in our core business and how that's being
offset by the cost to accommodate future opportunities as we grow forward.

Effectively they are strong core business growth. If we did nothing and did not invest
in new liquids or new capacity for infant nutrition as we have, we would see our core
business growing circa 25 to $30 million this year. However, we would not be
creating the future earnings' growth that we see in the opportunities that are out
there, both for our customers and for ourselves. Offsetting that strong business
growth of circa 25 to $30 million, are the cost to accommodate future growth and
effectively it's a balancing figure this year. So those costs are again in the same
range of 25 to $30 million.
At the start of the year, we felt that we potentially had 30 to 35, even $40 million that
we'd have coming through on our core business. And as that was through, we would
have also seen the cost to accommodate future growth be a little bit lighter. So at the
moment as we start to fill facilities, this is a key dynamic in our business, and a core
part of what's sitting in behind our forecast results this year. But also why we remain
really optimistic about moving forward into next year. And then if you look at page 26
this is not a new dynamic for us. We've just done some analysis on the return on
capital and employed profile. We are a capital intensive business and to create future
opportunities we have to invest. And what you can see from the chart is every time
we've invested, a return on capital employed has dropped a little bit, and then
increased as utilisation and capacity has been filled.
So you can see that happen when we brought on our second dryer, you can see it on
the shared drive where that net net operating asset comes up, return on capital goes
down. And that's the same dynamic this year with a significant step up and our net
operator adding assets, return on capital, moderating down a little bit of a sawtooth
profile, in the return on capital, it'll start to grow again as we fill things up. Slide 27
just talks and gives a little bit of colour to how we develop customer opportunities,
which is important because that's what we're chasing to fill up our plants. So now it's
always focused on doing differently for a healthier world. We've focused on creating
value of the products and the milk pool that we collect and that means we focus and
put a lot of attention into creating high value customer opportunities, and attracting
customers that value what we do with future growth.
And this is how we assess both potential markets and potential customers, how we
take them through our pipeline. But it does mean that sometimes the higher value
opportunities for us take longer to build. And that's the key message here. And we're
working on a number of those opportunities that we look forward to updating you on.
28 just talked through a little bit about how we're thinking about, Pokeno. Look, these
are illustrative slides, but as we commissioned that factory, we're largely doing so on
an ingredients position. We start to populate more utilisation, higher growth with
higher infant grade products would drive stronger returns and stronger overhead
recoveries as we start to move through that and lift our return on capital employed
profile for that facility.
So coming to the last slide around guidance and then some key takeaways from me
just to finish up. The guidance update, we remain really comfortable with our range at
the moment. There's a few things that are obviously developing because of the

evolving situation with COVID-19 but look what... our range we're holding at 70 to 85
supported by strong consumer packaged infant formula sales. As we mentioned that
the recent update, we've got the incremental costs of the keynote coming on. We
have the infant based powders that have dropped away a little bit as we've seen that
market consolidate. We're looking to build that pipeline again. We have the higher
fixed costs as we invest in future growth opportunities and lactoferrin with strong
pricing and volumes continues to contribute. Some of you may be wondering whether
the dairy works acquisition has a material impact on our guidance range.
Yes, we will be picking up from the 1st of April and in extreme there, at an impact
level that contributes about $2 million to our bottom line. But as we've seen, we've
also seen a sort of... an escalation of the COVID-19 impacts and the wide uncertainty
that exists when we made that, that initial guidance update. And those are some of
the factors that are leaving us pretty comfortable with where we're sitting at the
moment in terms of our range. So last slide for me and then we'll open up for
questions. Slide 30 key takeaways from today. Our core business continues to
perform well. It's an extension of the strong growth story that is part of what Synlait is
about. We're really confident that we can maintain previous margins under the
extended A2 milk company agreement that has us at a minimum, working out under
exclusivity to July 2025.
Customer pipeline remains strong. We've got good material, material opportunity has
well progressed across both our facilities. Dairy works is going to provide a great
base for us to continue to build on, with an earnings stream in the next two years,
developing a 15 to $20 million at an EBITDAR level. So despite the moderation and
our expectations this year, I hope that gives you some context and into the dynamic
that we're working through. As our core business and our new opportunities to
continue to grow, grow. We will push through some of the costs that are coming
online to create future opportunities and we remain really confident that we are
building a strong and sustainable company that we can all be proud of and we think
that you should be too. So those are the key, key takeaways from today, and
concludes the key materials that we wanted to cover off. Obviously a lot of detail in
the pack, a lot to understand, but we can open now for some questions.
Operator: Thank you. If you wish to ask a question, please press star one on your telephone
and wait for your name to be announced. If you wish to cancel your request, please
press star two. If you're on a speaker phone, please pick up the handset to ask your
question. The first question comes from Chelsea Leadbetter with Forsyth Barr.
Please go ahead.
Chelsea Leadbetter: Thanks for the colour team, and morning. Couple of questions for now from me. If I
can start with picking up on your comment, Nigel, around material reductions and
OpX and some of the things you're putting in place or initiatives for the second half.
Can you give us a little more context on the areas that's coming from? Just to try and
understand the pathway and not just second half up but further out and then
secondly, is that already effective into your guidance update?

Well, the obvious theory is out there. I mean clearly as an organisation right now, we
basically are not travelling. So all this costs associated with the travel, will be
significantly reviewed, and significantly reduced for the outturn period. Working on
the assumption that the restrictions on travel will, the obvious ones will probably last
through June, July period. Travel and entertainment. Again, that's part of a core
business that you're constantly undertaking. That's likely to be a very minimised.
Training and conferences, automotive sorts of con... expenditure is just going to be
completely cut back. We're also, but... but in addition to that, we're also focusing on
what our priorities are in the business, working under the terrain, what we need to
make sure, that our teams are focused on the core priorities.
Nigel Greenwood: So some of the... some of the initiatives that we had that... But we would also...
wanted to invest time and money into, we're probably going to put it on the back
burner and focus on those core priorities that we need to make sure we deliver on
this year and into the future. So really it's across the board. And I guess the message
that I was wanting to ensure the market got was that Synlait as an organisation is not
just standing back and saying well in this challenging environment we just keep on
continuing to spend. We are going to be looking carefully at our expenditure to make
sure that we focus it on where it makes a difference. I hope that gives you some
context.
Chelsea Leadbetter: Yep. Okay. And is it already in the guidance range that you've, you've probably
reiterated?
Nigel Greenwood: Yeah. Look you could argue that it isn't, because some of it was, I will say, because
of our previous guidance, we had undertaken some assumptions around expenditure
savings or less expenditure in the second half, but I think what we're saying now is
we believe that there is even more that we can take out. Look, of course we remain...
remain uncertain around the potential risks associated with the COVID-19, and so we
need to be aware of that as well.
Chelsea Leadbetter: Okay. And I guess just changing tact a little bit, in terms registration and thinking
about CEMAR in particular. You mentioned someone came down November 2019,
and also it'd be good to get an update on how you're seeing that process in the
current environment. Perhaps you know how we should think about getting
registration for, A2 from Pokeno, and then perhaps where other finished infant
formula customers are sitting because there hasn't been any mention, have you just
put that on the back burner at this point or how do we think about that?
Leon Clement: Yeah, thanks Chelsea. Yes, we did host the minister of CEMAR and again it was a
high level visit to make sure that we were showcasing the best that New Zealand has
to offer, and I think it just was a great opportunity to demonstrate the world-class
facility that we do have at the keynote. Look, I think in terms of registrations of what
we are seeing, I suspect that the state administration for market regulation is also
distracted by many other issues at the moment. So it's a little hard to see how the
current situation will evolve. As we have spoken to previously, we are seeing some
progress there and some with some registrations being completed, or given to

players and other countries. We get to understand if that will evolve for New Zealand.
However, look I suppose the way that we're thinking about it is, I think that the
seminar process is now a little more embedded and in place.
We think that effectively the way that we're looking at this strategically, as it feels a
bit more like we're moving towards fewer bigger players in China, sooner than we
expected. And that's why we're saying "look we're just pivoting our focus and
perhaps not holding out hopes that we'll be able to back the next big thing in infant
nutrition." But it enhances our credibility and opportunity to partner with established
players of which we see A2 being a strong... building a strong leadership position in
China and making us more attractive to establish players in that space, and we think
that the regulatory climate continues to evolve towards that and the regular
regulatory climate continues to move towards the fact that we are an integrated
model and supporting the fact that we have invested heavily in those aspects of our...
of our value chain.
Chelsea Leadbetter: Okay. I appreciate the colour, and just last question. I guess in terms of what you're
seeing with respect to supply chain at the moment, you talk about spec availability in
shipping schedules, obviously I guess can you just give us an update on prioritisation
and how that's sort of working at the moment, appreciate things are probably
evolving pretty quickly, but just I guess, how that's working now and also what the
costs... or has the been cost escalation and how you're seeing that?
Leon Clement: Yeah. Okay. I think around supply chain, there were two key areas that sort of
emerged quite early. Can we get the ingredients we need? Particularly, been
resourcing from plants around the world, and I think we've done some good work
there. And whilst there was some initial risks that we saw emerge and we had been
able to either look at contingency plans for those raw materials, and we've actually
seen some operations start to restart again, and are up and running and supply chain
seem open. We were able to air freight some product in to just make sure we had
some extra cover with global airlines and the amount of movement starting to shut
down pretty quickly. I'm unsure that's something we can rely on, but it's provided
some good buffer for in the short term.
The secondary around supply chain was around shipping and the availability of
containers, especially for outbound empty containers, as we saw supply chains start
to shut down and we had some concern around the availability of those export
containers probably as recent as last week. However, we are starting to see that
unlock and look, I think that we've got great relationships with our shippers and
because of that they're able to prioritise capacity for us. And at this stage I'm not
seeing any pricing escalation coming out of that. So look, I'd have to say I was
probably more nervous about this a week to 10 days ago, but increasingly feeling
more confident as we're starting to see it unlock and, and hopefully it stays that way.
Chelsea Leadbetter: Okay. That's all for me for now. Thanks for the colour.
Leon Clement: Thank you.

Operator: Thank you, the next question comes from Aaron Yeoh with Goldman Sachs. Please
go ahead.
Aaron Yeoh: Morning, Leon and Nigel. This question from me, just with regards to your comment
from lactoferrin, it sounds like the overall outlook around that seems to have
improved since February. Just wondering what you're observing in the market, I
guess, which has sort of driven a sightlier sort of, rosy outlook.
Leon Clement: Mm. Yeah. Well, I guess there is may... Well thanks for the question, Aaron. I think
what we're doing is clarifying that what we were saying
On our guidance update, as our expectations of pricing has moderated down.
However, we still expect pricing and volume to be higher than last year. It's just that
when we set our expectations for this year and our guidance at the start of the year,
we expected higher pricing. And look, I will flag that a very small moderation in
Lactoferrin pricing, one or 200 dollars a kilo, can have quite a material impact on
what we expect coming off that. It is quite sensitive to our overall business in terms of
the earning streams that we get from Lactoferrin.
The first point is. Are we calling that this is slightly rosier? No, I don't think we are.
We're really just saying that, don't forget that our Lactoferrin sales will grow materially
on last year, or be it our assumptions have moderated down from our earlier
guidance. And that's what was one of the key factors in moving that assumption
down. Having said that, I think we are seeing some firming, but it's in line with the
expectations that we put out in our guidance statement. A little bit unclear on what
exactly other drivers are, but we've got good leads and seeing price and firming out
of China in particular for some of our customers in that space, but they're broadly in
line with our current assumptions. I hope that helps there.
Aaron Yeoh: Yep. Sure. And then I'm just wondering in terms of how to think about the step up in
cost in the first half, with relation to Pocono commissioning, and I guess specifically,
how we should think about the second half operating expenses in relation to the first
half? I know that obviously Pocono was running for, I guess, four months in the first
half, and in the second half obviously it'll be fully running. Is that the proportion, an
additional two months operating expenses? Is that how we think about it? Or were
[crosstalk 00:46:01] start-up costs in the first half?
Leon Clement: No. Generally speaking, when I get questions like this one about thinking about
Pocono in isolation, it gets problematic because we obviously operate our drives and
allocate production to where it most makes sense. From your perspective, obviously
you should assume that Pocono is going to be operating for the full second half, and
it will be. There'll be a full second half, absorption of interest and depreciation costs
associated with and manufacturing overheads associated with it. We'll also be
processing all of the milk we received through Pocono in the second half as well,
getting some recovery through overhead recoveries and margin on the products we
make from that.

But from a modelling point of view, if you're thinking about it that way, then you need
to look at it from a total demand perspective. What is our total anticipated demand for
infant formula, for ingredients and Lactoferrin? How we allocate that to various plants
is not really the key issue here. It's rather, what are the expected returns that we
expect to get in that second half? We've provided you with very good insight in the
outlook section of this deck to give you a lot more insight as to the volumes you might
expect we're going to do for the full half, for second half and therefore for the full
year. I think try to work out a P&L for Pocono in its own self, is not the most effective
way to think about it, but I hope I've given you enough information to understand how
that's going to work.
Aaron Yeoh: Yeah, sure. Thanks. And then, Leon, you mentioned I guess [Atour 00:47:43]
intention with the optic participation in manufacturing. I'm just wondering, I guess on
your understanding, why do you think Atour is working to participate in
manufacturing, particularly given the fact that Pocono starting to ramp up and that
single site risk isn't really as much of a risk as it was before?
Leon Clement: Although I can't comment on behalf of Atour around their intentions, but that side of
what their intentions are to participate in manufacturing. And look, I think we're
looking forward to the discussions with them and as long as they recognise the
expertise that we bring. Look, I think that we bring a lot to the Atour partnership. We
obviously play a strong role in helping ensure that they have market access into their
key market and China. We've invested significantly over the history of the business
and an integrated value chain, which we see the regulatory climate moving towards.
And that's important as we move forward to protect the sheer value that we create.
The Atour semi model has been highly competitive from an infant manufacturing
perspective and in terms of our competitive set, we continue to share the benefits of
scale with Atour and we look forward to those discussions and ensuring that they're
recognised some of those expertise in what we bring to the table.
Aaron Yeoh: Great. Thanks very much for answering my questions.
Leon Clement: Okay, thanks Aaron.
Operator: Thank you. The next question comes from Stephen Ridgewell with Craig, please go
ahead.
Stephen Ridgewell: Good morning, just fill up on the discussion on overhead. Yeah, thanks for the colour
really, Nigel, and where this customer might come from. I'm just wondering though, if
you could help us quantify that. It was [inaudible 00:49:34] in the first half. What
should we be thinking about overhead growth for the full year?
Nigel Greenwood: Now when you call overheads, we're referring to SGNA costs, right?
Stephen Ridgewell: Yes.

Nigel Greenwood: Look, we haven't given specific guidance around what we expect our SGNA costs to
be for the second half. But it's a fair question. How I'd like you to think about it is that,
what's an easy way to think about it. Well, if we took the first half because you often
get the impact of analysed labour costs. If you took that and doubled it for the second
half and might be added a lot more if we did nothing different. That would be a
starting point then assume, take off from that. The reasonable assumption that we're
going to be doing a very deep dive and in terms of our ability to retain, restrict, spend
only what we need to, to remove costs that are simply aren't going to occur now
because we won't be undertaking a number of activities that I talked about earlier
and that they could read.
We're not talking material. I'm talking about in the millions. It's not the hundreds of
thousands. That text give you some insight.
Leon Clement: Can I just add a little bit for that? To Nigel's point, I think he's helping provide a bit of
direction around how you might make assumptions for the second half. But
strategically I want to clarify, we're not slashing and burning costs here. We're
moderating investment to make sure that our businesses sit up appropriately for the
new assumptions that we're seeing emerging. We're going to be moderating down on
the growth that you've seen historically and making sure that our organisation is
optimised and set up for success as we move forward in the future. Just from a
strategic perspective, that's how we're looking at us.
Stephen Ridgewell: That's helpful. Thanks. And then just on Pocono, it just came to the court hearing. It
maybe the end of April or maybe I don't know what's going on at the moment, but
Leon you implied in the prepared remarks that if the decision doesn't gain some way
the business is not in a different position from now. If we're looking forward, some
additional commentary on next that would say that think would be a potential range of
outcomes here that some of those might be more negative from the company's
current position and then in contingency planning the companies don't place if there
is a poor outcome there.
Leon Clement: Yeah, no, thanks for asking for clarification. Our legal advice is just for the Supreme
court not to find an outcome that potentially is adverse for some way or limits our
ability to operate the plant that comes subsequently with any action that the
neighbour then needs to take against us and a subsequent high court hearing if we
lose. The cases about the removal of the covenants, not the operation of the site.
That's why we're framing it as, if we won here, this is solved. If we lose, we're broadly
back to where we are today, where the neighbour would be obliged to take this case
back to the high court and seek some damages or outcomes that we would then
need to work through again. Which is why we're feeling pretty confident about our
legal position around that and looking forward to the Supreme court case.
Stephen Ridgewell: That's helpful. Thank you. That's all for me.
Operator: The next question comes from Adrian Allbon with Jarden. Please go ahead.

Adrian Allbon: Well, good morning Leon and Nigel. Can I ask two questions please? You've
obviously answered the question in quite a few different comments, but when you
come back to your slide sets and you're talking about the Chinese infant formula
arbitrary environments intending to move towards the sunlight integrated model. Is
what you're suggesting that you've got some signals that SMR is going to ... which at
the moment when you think about your plant investment really just finds the blending
and canning path. Are you sending some signals that would come back towards the
heavy end of the capital investment in terms of the spray dries and stuff like that? Or,
are you saying some signal that you might have some staple between a SMR and a
get licence for example?
Leon Clement: Yeah. Look, I think the answer to that is that we are seeing an evolution or I guess in
some of the policy statements out of the regulatory and the policy sittings that we're
seeing from regulators is that there is a movement towards the standardisation of
how they register plants and how they want to see integration and an integrated
model being part of setting ourselves up for ensuring market access for China. And
look rather than getting into the interpretation of all the different policy settings.
Probably the best way to describe it as why would you think the China regulator
would think that. They would think that because they're trying to secure food safety
for the industry and they want to make sure that players that participate in the
industry have as much control around their interim value chain and players that have
invested heavily to an integrated model like some may where we manage the flow of
products from milk all the way through to finish products who hold the registrations.
The registration for the safety of the product needs to sit against the factory.
And really we're just, I think highlighting and flagging that increasingly we're seeing
this idea that a separate cleaning and kenning operation can source ingredients from
a wider network of ingredients, players and spray drying is no longer a business
model that we think will be sustainable. And the reason for that is that obviously
regulators are wanting to protect the rest of multiple players participating in that value
chain. And an integrated model is preferred and semis invested historically in that
and we feel that we were well placed to benefit from that going forward.
Adrian Allbon: Okay, that's helpful. The second question, you touched on it when you concluded
and you're saying confident and protecting your historical margins of the Atour milk
agreement and the key driver there is your manufacturing efficiencies. But other than
volume, what would be the key driver, we should understand operationally in terms of
your ability to achieve that over time?
Leon Clement: Well. Well, two things. Volume gives economies of scale. As we've described through
the whole nature of our capital investments when you establish a new facility, you've
got overheads, you've got site services that you're running across those. And as we
have volume washing through those plants, we will generate efficiencies that we've
historically seen as we've done the same. Secondly, our IWS programme continues
to deliver benefits for us and that programme is focused on eliminating losses around
time losses, wasted yield losses. We've got Danzando operating really efficiently and
moving forward with the extension of our new facilities, degenerate manufacturing

efficiencies there are very attainable and I guess what I'm qualifying is that on the
assumption that we continue to drive the manufacturing efficiencies that are available
to us and we know are realisable based on our track record, we're really confident we
can protect the margins that we've seen historically out of that relationship.
Adrian Allbon: Okay. The way that wave potentially would monitor that. Would they like you did last
year, where you were able to process more milk versus what you've stated previous
manufacturing capacities with?
Leon Clement: Yes. On the basis that also when we process infant nutrition, we are processing least
milk because it has least milk followers then homo powder. And that's an optimization
and product mix selection that we make that also drives really strong efficiencies for
our partners because we're able to optimise our assets across that. But yeah, look I
think it's fair to say that the more we start to process an infant nutrition and as that
volume comes in, it's reasonable to us, we should be able to benefit from the scout
opportunities that come with that and our own efficiency programmes.
Adrian Allbon: Yeah. I guess I was just trying to understand what other drivers there are other than
the volume driver, which the Atour argument could be that they provide in the volume
argument.
Nigel Greenwood: Adrian, Nigel here. Look, we often don't really talk about the reality that at any
manufacturing operation, you always have times where you don't manufacture
product right first time and whenever you don't you, you build in cost associated with
delayed shipments, wheat testing the product to see whether it's big or not as big and
even in some cases where you've manufactured product that history has to be
written off to stop food.
Now we absorb all those costs within our cost of sales and whilst not undercutting
what the level of aid those costs might well be. For the IWS programme, over time
you build into the operating ethos, the way of the culture and the performance of the
plans, absolute increased improvement and right first time production, which will
have positive impacts on our overall cost of sales, of the manufacturer of that
product. And it flows through the organisation, not just in the product write off, but in
terms of the increased capacity you have to be able to not have to remove
manufacture products and therefore process more milk. The overheads that you've
incurred working through and resolving issues that occur with that. And that's all
those headed costs associated with that type of impact can be taken out of the
process and they can be material over time.
Adrian Allbon: Okay. No, that's useful in terms of basically just continuing to get better at what you
do.
Leon Clement: Thank you. Probably got time for one more question.
Operator: Thank you. The last question comes from Marcus Curly with UBS. Please go ahead.

Marcus Curley: Good morning. I might try for three if I can. Just very quickly on the Atour
discussions. Where are you at on their manufacturing intentions and when do you
expect to publicise the outcomes?
Leon Clement: Thanks, Marcus. I'm not going to get going on where those conversations are at. We
look forward to those discussions and the fact that they'll recognise in those
expertise, but those conversations as they progress are confidential as they develop.
Marcus Curley: Yeah. Could you talk a little bit about any discussions with the government with
regard to Coronavirus? And yeah, whether you'd be deemed an essential service.
There are some suggestions that the government's going to move to shut down all
non essential businesses by the end of the week.
Leon Clement: Unsure at this stage, Marcus, we've been feeding our comments up through our
industry sector at this stage and our industry sector representatives are closely in
touch with the NPR representatives. We'll continue fitting that up, but I'm uncertain
around how we might be classified.
Marcus Curley: And then finally, Nigel, could you talk a little about where you think debt levels get to
by the end of the year and what the debt to EBITDA looks like at that stage?
Nigel Greenwood: Yeah. Look, clearly it wasn't going to be hard and when we previously anticipated
them, the thing was that the neighbour’s ratio, you'll be aware Marcus is, if you have
a lower EDITA than what you thought you're going to have that affects the bottom
end of the curve. And if you then also have more debt because there's much cash
flow coming in. It actually worked, but it's a double whammy a bit. What I'm trying to
say is that it will substantially depend on where we land up at the end of the year in
terms of our overall EBITDA performance. Which is a reasonable range right now as
you can see. All I can say is even at the top end of that, well if you like at the bottom
end of that EBITDA range, right? And therefore the consequential total debt position,
we are still comfortable that we will lie within our existing bank covenants and that
we'll not be at risk.
Having said that, they will be at a much higher level than we had earlier anticipated.
It's manageable, we're obviously keeping a close watch on it and again, it's almost
one of those moot points, your previous question. If what you just said happened that
would definitely blow it all out the water, wouldn't it? But assuming that we continue
to operate and we deliver on our expectations, we will live within our covenant levels.
Marcus Curley: I suppose where I was hitting with this is, I suppose when you look back at history of
this business. Yeah, with gearing where it's likely to be at the end of the year. The
businesses normally raise money, you've been obviously investing a lot, you've
bought things. Is equity an active decision at the moment or, yeah. How do you think
about equity?
Nigel Greenwood: Right. Look, we've also been through cycles before when we heavily invest in new
assets and acquisition, of course, it takes us or our leverage to a higher level on the
basis that very quickly with operating cash flows coming through funds, the

performance of those businesses in subsequent years we get our debt levels down
quite quickly. And especially based at the moment when we've got no other
significantly announced capital investments in the pipeline. With that said it really is
one of those things where obviously the board actively monitors and considers where
the equity raising is going to be considered necessary. But we're also continuing to
review our long range forecasts around performance of the business and wouldn't
necessarily go to market to raise equity if they felt that the operating cash flows were
going to bring debt down over time. It's really one of those things that right now of
course it's not on the table but it is obviously considered it'll times.
Leon Clement: Marcus, I'll just say that and I think that's a bit of a no comment from Nigel for
obvious reasons, but what we remain comfortable with our covenant levels and we
are nearing or we are actually at the end of a significant investment cycle for the
business. Our key role now first shifts through utilisation, summing up capacity,
making sure we generate earnings to start to pay for the investments that we've
made.
Marcus Curley: Okay. Thank you.
Leon Clement: All right, I think we'll conclude the call here. Thank you very much for joining.
Obviously uncertain times for everybody, and I appreciate the time that you've given
to sun lay, despite other global distractions. Thank you very much and we'll see
many of you potentially online via VC in the coming weeks.


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