FY20 Results and Annual Report

Results announcement
19 August 2020


Results for announcement to the market
Name of issuer The a2 Milk Company Limited
Reporting Period 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
1,731,131 33.1%
Total Revenue 1,732,527 32.8%
Net profit from continuing
operations
388,167 31.8%
Total net profit 385,837 34.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the year
ended 30 June 2020
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date No applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.48 $1.04
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
Audited Annual Report for the year ended 30 June 2020
Full Year Results Commentary
Full Year Results Presentation

Authority for this announcement
Name of person

authorised
to make this announcement

Jaron McVicar

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

19/08/2020

Audited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M

The a2 Milk Company Limited
www.thea2milkcompany.com

19 August 2020
NZX/ASX Market Release

Strong financial results and execution continuing

Results highlights for the full year ended 30 June 2020 (NZ$)
1,2,3

• Total revenue of $1.73 billion, an increase of 32.8%
• EBITDA
4
of $549.7 million, an increase of 32.9%
• Net profit after tax of $385.8 million, an increase of 34.1%
• Basic earnings per share (EPS) of 52.39 cents, an increase of 33.5%
• EBITDA to sales margin of 31.7%
• Operating cash flow of $427.4 million and a closing cash balance of $854.2 million
• Marketing investment of $194.3 million
5
targeting opportunities in China and the USA, an increase of
45.1%
• Group infant nutrition revenue of $1.42 billion, up 33.8%
• Strong growth in China label infant nutrition, with sales more than doubling to $337.7 million and
distribution expanded to ~19.1k stores
• USA milk revenue growth of 91.2% and distribution expanded to ~20.3k stores



1
All figures are in New Zealand Dollars (NZ$) unless otherwise stated.
2
All comparisons are with the 12 months ended 30 June 2019 (FY19), unless otherwise stated.
3
All figures are quoted based on all operations of the Group, including discontinued operations, unless otherwise stated.
4
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure. However, the Company believes
that it assists in providing investors with a comprehensive understanding of the underlying performance of the business. A
reconciliation of EBITDA to net profit after tax is shown at the end of this document.
5
From continuing operations.

2
Summary of Group performance
The a2 Milk Company has made significant gains in revenue and earnings, with strong performances in all
key product segments, and across all core markets.
Our performance was robust throughout the year and we demonstrated significant resilience in the second
half managing the business in the face of the COVID-19 global pandemic.
Through these unprecedented times, we have been fortunate to continue experiencing strengthening
levels of consumer demand and worked closely with our strategic partners and customers to ensure supply
chains remained open and consumer needs continued to be met.
We estimate that COVID-19 had a modest positive impact on revenue and earnings for the year.
Additionally, our business was favourably impacted by foreign exchange movements.
Our overall result reflects the continued growth in our infant nutrition segment with sales totalling $1.42
billion for the period – an increase of 33.8% on the prior corresponding period.
In line with our strategy, our growth in China label infant nutrition products was significant, with sales
effectively doubling to $337.7 million. We achieved this while also continuing to achieve growth in our
English label infant nutrition products with growth of 21.2%.
Our revenue in the third quarter was well above expectations due to the impact of changes in consumer
purchase behaviour arising from the COVID-19 situation. This included an increase in pantry stocking
particularly via online and reseller channels.
In our view, a proportion of consumer pantry stocking driven by COVID-19 unwound in the fourth quarter.
However, this will remain a dynamic situation and we will continue to monitor changes in consumer
behaviour moving forward.
We again achieved solid growth in our liquid milk businesses in Australia and the USA, with sales across the
Group
6
totalling $222.0 million up 29.7%. Liquid milk sales in Australia were up 14.1% to $152.5 million and
sales in the USA almost doubled during the year to $66.1 million, driven by improved sales velocity in
established stores as well as an expanded store footprint.
Our gross margin percentage
5,7
increased to 56.0%, benefiting from improved price yield and the positive
effects of currency movements, partially offset by COGS increases related to infant formula.
During the year we invested $194.3 million
8
in marketing, to drive brand awareness and conversion to trial
in our key growth markets. This was slightly lower than our forecasted $200 million due to efficiencies in
media spend in the fourth quarter.
We delivered a full year EBITDA margin of 31.7% which was in line with the guidance we provided in April.
Net cash flow from operating activities for the period was $427.4 million representing a high cash
conversion rate.
Our balance sheet remains in a very robust position. Our closing cash position of $854.2 million reflects
growth in revenue and earnings. This will continue to be important in the execution of our growth strategy,
including potential participation in manufacturing.
We finished the year with inventory of $147.3 million. This was higher than prior years, in part reflecting
our growing business, as well as the decision to carry a higher level of inventory as a safety buffer given the
uncertainties of COVID-19. Additionally, at the end of the period, we have recognised a provision for a
quantity of finished stock that is on-hold awaiting further testing to ensure it fully meets our standard of
specification.


6
From continuing operations.
7
Gross margin percentage is calculated as revenue less cost of goods sold, divided by revenue.
8
From continuing operations.

3

Delivering on our strategic priorities and business objectives
We have made significant progress on the execution of our strategic initiatives throughout the year.
We are committed to a focused approach to pursuing our strategic growth priorities:
1. Maximise growth from existing products in core markets;
2. Broaden our product portfolio in core markets; and
3. Expand in other targeted markets.
With the benefit of the comprehensive work undertaken during 2019 to enhance our understanding of the
consumer and sales channels in our core markets, we have continued to increase levels of investment in
marketing and capability to execute our growth plan.
In Australia, we have continued to build on our market leading positions in fresh milk and infant nutrition,
whilst leveraging this to launch new products, such as a2 Smart Nutrition™, to drive further specialised
nutritional products to consumers graduating from infant nutrition.
In China, we remain focused on strengthening our infant nutrition position in-market which we believe still
has significant runway for growth. It is pleasing to see our investments in brand, trade activities and people
driving strong sales momentum, in particular within our China label infant formula brand, a2 至初®, which
now accounts for 24% of our total infant formula business.
In the USA, we continue to build brand awareness and drive towards meaningful scale.
Our targeted exploration of new markets continues. In October we launched a new Hong Kong label range
of infant formula, in December we launched Stages 1-3 infant formula in Korea with our partner,
YuhanCARE (Yuhan), and in March we entered into a new licensing agreement with AgriFoods in Canada to
produce, market and distribute our fresh milk brand.
Work progressed during the year to expand our product portfolio in China. A growing range of fresh, long
life milk and powder products targeting families is expected to become a meaningful growth engine over
time.
Capital allocation framework
As we noted in February 2020, as part of the Board’s ongoing review of the most appropriate use of capital
for the business, we continue to prioritise investment in growth initiatives ahead of returning capital to
shareholders.
As we have announced previously, due to the increasing scale of our infant nutrition business, we consider
it now appropriate to assess participation in manufacturing capacity and capability to complement our
existing supply chain relationships. Accordingly, we are presently evaluating opportunities to address this
issue, with significant progress made during the year.
With our cash balance growing it has become increasingly important for the business to review our capital
requirements going forward. A significant review of our capital allocation framework was commenced in
the second half with a view to defining the discipline and prioritisation of our financial parameters in a way
that optimises and supports our long-term plan.
Leveraging our strategic partnerships
This year has again highlighted the importance of key strategic partnerships. This remains a core element of
our capital-smart business model.
We acknowledge and thank all our suppliers and customers for their support and assistance throughout the
year. In particular, we acknowledge our three key strategic partners China State Farm, Synlait Milk and
Fonterra. We have refocused our relationship with Fonterra and look forward to potential new
opportunities to provide meaningful benefits to both companies in the medium term.

4
1. Deliver Asia Pacific sales strategy outcomes
Our Asia Pacific business revenue was $1.66 billion, up 31.5%, with EBITDA of $690.5 million, up
32.0%. This included:
• ANZ segment revenue of $965.7 million, up 14.6%, with EBITDA of $465.6 million, up 19.9%
• China & Other Asia segment revenue of $699.4 million, up 65.1%, with EBITDA of $224.9 million,
up 66.7%

Infant nutrition
Our Asia Pacific infant nutrition portfolio comprising predominantly China and English label
products delivered $1.42 billion, up 33.8% on the prior corresponding period (‘PCP’). China label
infant nutrition products can be sold via mother and baby stores (MBS), modern supermarkets and
domestic e-commerce retail channels. English label products can be sold through ANZ retailers,
ANZ-sourced resellers and cross border e-commerce (CBEC) channels. We continue to leverage a
multichannel approach to ensure we can cater to our consumers’ differing shopping needs.
We have substantially increased our in-market capability with many new hires to the China team
and further optimised our distributor arrangements which have allowed us to improve our in-
market execution at both a brand and retail level.
Despite COVID-19 causing some disruptions and changing consumer behaviour across the
marketplace, we managed to maintain our sales growth momentum. However, with a shift of sales
from offline to online channels we chose to pause some of our marketing plans while we observed
the impacts of these changes. As restrictions eased in China during the second half, we resumed
the scale of our marketing programme including significant media investment and working with our
distributors and retailers to improve our brand experience in-store. We are pleased with the impact
this had on sales growth and brand awareness across all our key channels.

Infant nutrition – China label channels
We achieved sales of $337.7 million for a2 至初® China label infant nutrition, which was over 100%
growth on PCP and 62.7% growth for the half. Our MBS value share was 2.0% compared to 1.7% at
HY20, up from 1.3% at FY19
9
.
These results are an outcome of consistent investment in advertising, our strategy of pursuing
distribution in high productivity stores and optimising in-store execution. These efforts are
underpinned by increased data analytics capability to ensure our investments are optimised.
Offline store closures associated with COVID-19 disruptions during the third quarter meant we
added fewer new stores to our offline footprint in the second half, increasing to 19.1k stores
compared with 18.3k at the end of 1H20. However, we worked closely with our distributors and
retail partners through these disruptions, including to fulfil orders via direct home deliveries, within
the bounds of internal travel restrictions.
We launched a China label version of our Stage 4 product and introduced a tamper-evident lid for
our Stages 1, 2 and 3 China label products in December, to further enhance product security and
provide additional differentiation with our English label products. Our infant nutrition portfolio is
complemented by our other nutritional products as we broaden our appeal to existing consumers
and seek to connect with new consumers.



9
Source: Nielsen MBS – 12-month market value share.

5
Infant nutrition – Cross border e-commerce
We delivered a2 Platinum® English label infant nutrition sales of $341.1 million, up 40.3% and
reached a CBEC value share for the financial year of 21.7%, up from 20.6% at HY20 and up from
18.6% at FY19
10
.
It was pleasing to see our expanded market share in this strategically important sales channel given
heightened competitive activity across 2H20 and we continued to invest in driving demand across
e-commerce platforms. There has been a concerted effort throughout the year to better track and
understand the effectiveness of our digital marketing tools with an increased focus on data
analytics to further refine and optimise our approach. This will continue in FY21.
We performed well across the key e-commerce selling events throughout the year, including
“11/11 singles day” in November and “6/18” in June. For the “6/18” event, our a2 Platinum® Stage
3 was the top selling infant nutrition product on JD.com. and, for the first time, we were the
bestselling CBEC IMF brand overall. On Tmall, we were the second best selling CBEC IMF brand
overall and the number one CBEC flagship store.

Infant nutrition – ANZ retailers and resellers
Our infant nutrition sales in ANZ grew 14.1% delivering $745.1 million in revenue for the year. We
remain the market brand leader in Australian grocery and pharmacy channels and continue to
invest behind our brand, with our level of advertising being the highest in the category. Despite
positive growth, COVID-19 related travel restrictions negatively impacted the reseller channel due
to reduced travel between Australia and China.

Infant nutrition – market share reporting
Our business continues to evolve as we grow, particularly for consumption of Stages 3 and 4
amongst children above three years of age, and increased penetration in lower tier cities.
In our view, tracking the MBS channel with Nielsen scan data, and the CBEC channel through
Smartpath, more accurately reflects our performance and yields greater market insight. As such we
will move to reporting against these sources externally, in line with industry practice.

Liquid milk
It is pleasing to report that our Australian fresh milk business continues to perform well with total
revenue of $152.5 million. In our most mature category, we achieved double-digit revenue growth
of 14.1%. Demand in the third quarter and start of the fourth quarter was particularly strong as
consumers increased their in-home consumption during COVID-19 with many working from home
for extended periods.
Furthermore, a2 Milk™ maintained a 12 month value share of 11.3%
11
despite the strong category
value growth caused by the retail price increase of private label milk. a2 Milk™ continues to be the
only fresh milk brand ranged in all major supermarket chains and the highest brand advertiser in
the fresh milk category, maintaining very high brand awareness and loyalty which benefits the
portfolio as a whole.
We have also recently entered into an arrangement to underwrite the expansion of the
manufacturing facilities of our long-term fresh milk supply chain partner in Victoria, Kyvalley Dairy
Group (‘Kyvalley’), to support the ongoing growth of our liquid milk business.

10
Source: Smartpath CBEC – 12-month market value share.
11
IRI Australian Grocery Weighted Scan 12 months ending 30 June 2020.

6
Through this arrangement we will acquire Kyvalley’s Kyabram milk processing facilities and fund its
expansion and upgrade. Kyvalley will manage the assets under a lease and revised long-term supply
agreement.
The arrangement would involve certified dairy farmers continuing to supply Kyvalley with raw milk.
The arrangement remains subject to Foreign Investment Review Board approval.

Other nutritional products
For all other nutritional products, sales increased 30.5% to $85.2 million.
The most significant proportion of our other nutritional segment remains a2 Milk™ whole milk and
skim milk powder which is now available in ANZ and China with further potential for growth across
new channels, particularly in offline China retail channels.
a2 Smart Nutrition™ continues to show positive signs of becoming a meaningful extension of our
infant and children’s nutritional portfolio. There are encouraging indications of consumer
acceptance, and a China label version of the product was launched in January 2020, initially with a
focus on gaining distribution in MBS. A bigger roll-out, including a launch of 200mL a2 Smart
Nutrition™ UHT will be conducted into modern trade during FY21 as part of a broader channel push
to engage families across a wider portfolio of a2 Milk™ based products.
The re-launch of our nutritional product targeting mothers under new branding and a
reformulation of a2 Nutrition for Mothers™ was successfully completed in 2H20.
a2 Milk™ powder blended with Mānuka honey continued to present some manufacturing
challenges during the year, with the product to be reintroduced in 1H21.

2. Reach meaningful scale in North America
USA
We delivered revenue in the USA of $66.1 million, representing growth of 91.2% compared to the
prior corresponding period with brand awareness more than doubling, conversion rates up
significantly. Encouragingly, over 50% of our sales growth was driven from existing stores.
Our average velocities have grown within our key accounts in the range of 14% to 74%, with many
of our key accounts with average units per store per week of greater than 20-25 and some above
40. Given increased investment in building brand awareness and distribution growth, we recorded
an EBITDA loss of $50.5 million.
Distribution grew to approximately 20.3k stores, from 17.5k stores at the end of December 2019
and 13.1k stores as at end of FY19. Leveraging the consumer and channel insights obtained through
a strategic review completed in 2019, we introduced new packaging and launched a new TV
advertising campaign, both of which received positive feedback from consumers and the retail
trade, and assisted in further building brand awareness and conversion to trial.
In July 2019, we launched a2 Milk™ Coffee Creamers which have been received positively and are
performing to plan. As consumer demand for our products build, and our distribution footprint
strengthens, we expect opportunities to launch additional new products will emerge. Prior to
COVID-19 our increased in-store merchandising efforts were delivering encouraging results in
enhancing our sales velocities.
Whilst our consumption is up as compared to the prior period, from March, in-store foot traffic
during the pandemic reduced due to retailer safety policies and purchasing limitations on milk per
visit limited the growth that we may have otherwise seen for the brand. In the third quarter our
plans to increase the utilisation of a merchandising team was impacted by COVID-19. However,

7
merchandisers have returned to stores from July and are having a positive impact on retail
distribution.
The impact of COVID-19 in the USA market overall has been significant. We are seeing that
consumers are becoming more value conscious given economic uncertainties, high unemployment
rates and have adjusted our FY21 sales and marketing plans accordingly.
Hence, in FY21 we will shift our focus away from broadcast advertising media to a greater emphasis
on in-store price and activation to drive demand. We are planning promotional initiatives in
conjunction with our key retail customers with the objective of further building our facings and
sales velocity.
The outcome of this shift will be growth in volume accompanied by increased trade spend with net
revenue broadly consistent with FY20. With lower overall marketing spend we anticipate an
improved EBITDA result for FY21.
As we build towards reaching meaningful scale in the USA, our initial milestone for the business
continues to be US$100 million of annualised sales.

Canada
In March, we entered into an exclusive licensing agreement with Agrifoods International
Cooperative Ltd (“Agrifoods”) for the production, distribution, sales and marketing of a2 Milk™
branded liquid milk for the Canadian market.
Since March, we have worked closely with Agrifoods, providing access to our intellectual property
and marketing assets as well as our proprietary systems and know-how relating to the local
sourcing and processing of a2 Milk™.
Agrifoods is leveraging its substantial capabilities in-market to establish distribution across Canada
and has primary responsibility for funding this venture. The product has recently been launched to
a number of customers in Western Canada.

3. Build towards sustainable brand leadership
Building brand value and increasing brand awareness through marketing investment remains an
important focus. We invested $194.3 million
12
in marketing during the year, which represented a
45.1% increase on prior year driven primarily by increases in our China marketing investment.
We leveraged our deepened understanding of consumers and purchasing behaviour in China to
continuously improve our marketing mix which includes consumer advertising, in-store and event
activations, digital live streaming and the development of a new brand creative platform. While we
had launched this new creative in December 2019, we decided to temporarily pause and adjust the
plan in the third quarter due to COVID-19. However, we resumed the activity in May as COVID-19
restrictions in China began to ease.
In addition to consumer marketing, our brand value is supported by investment in research and
development programmes, an increased focus on sustainability, as well as initiatives to support the
communities in which we operate.
Supporting relevant independently managed scientific studies remains important as we build our
long-term brand proposition. In September 2019, the results of a clinical trial from 75 Chinese
children aged between five and six with mild to moderate milk discomfort or lactose intolerance
(confirmed via a urinary galactose test) were published. The study reported that replacing
conventional milk with a2 Milk™ “reduced gastrointestinal symptoms associated with milk
intolerance” in many subjects and led to “a corresponding improvement in an aspect of cognitive

12
From continuing operations.

8
performance” as measured using the Subtle Cognitive Impairment Test (SCIT)
13
. The study was
independently peer reviewed and published in the USA based Journal of Pediatric Gastroenterology
and Nutrition.
We significantly stepped up our contributions to the community in 2H20 with donations to the
bushfire appeal in Australia to support regional and rural communities which is the heart of our
milk supply in Australia.
We also contributed through a series of initiatives to support those impacted by COVID-19
including product donations to frontline medical workers and consumers in Wuhan, a cash
donation to the Shanghai Red Cross and contributions to two leading Australian universities for
research into a vaccine for COVID-19.
We are also pleased with the progress we have made in our sustainability initiatives in FY20. We
have significantly improved the foundations on which we will build a meaningful and impactful
strategy going forward. Central to this, is the recent launch of The a2 Impact Fund
TM
which will be
used to bring together many of the sustainability-related activities we undertake on a daily basis, as
well as amplifying our progress against a number of identified environmental and social initiatives
and for a range of important stakeholder groups.

4. Deliver the organisation of the future
To support the execution of our overall Group strategy, we continue to build capability within the
organisation. This year we introduced a number of new roles to complement and extend our
existing capabilities, particularly in-market in China, the USA, and within certain Group functions.
We increased the size of our team to over 300 people, up 41.0% from last year.
To enhance our organisational alignment and enable the right ways of working to deliver on our
strategy, we recently reorganised our most senior executive team to form our Executive Committee
and formed a Senior Leadership Group which comprises the senior management of the business.
We also established several initiatives designed to enhance engagement and launched a revised
remuneration framework to align with our strategic direction.
Over the next two years we will be implementing new information technology systems to support
the existing organisation and provide for future growth.
We also utilised external resources to accelerate the delivery of certain outcomes and to
complement existing internal capabilities. As we improve internal capability, the composition and
level of external resourcing will moderate over time.
I would also like to take this opportunity to recognise the efforts of all our people this year. It was
one that included a number of changes and unique challenges, but the team has continued to drive
forward together, building from strength.
We are proud of what we have achieved commercially and of the way our people went about
embracing change, managing challenges and looking after each other as well as the business – truly
espousing the values of our big small company.




13
Xiaoyang S, Zailing L. Effects of Conventional Milk Versus Milk Containing Only A2 ß-Casein on Digestion in Chinese Children. J
Pediatr Gastroenterol Nutr. 2019 Jul 9.

9
Outlook
FY21
Globally, there continues to be uncertainty resulting from COVID-19, and the potential for moderation of
economic activity. This could impact consumer behaviour in our core markets, as well as participants within
the supply chain, most notably in China.
Notwithstanding these uncertainties, overall for FY21, we anticipate continued strong revenue growth
supported by our continued investment in marketing and organisational capability.
FY21 EBITDA margin is expected to be in the order of 30% to 31% reflecting:
• Higher raw and packaging material costs partially offset by price increases
• Increase of marketing investment
• FX benefit of prior year not expected to be replicated
• 3Q20 COVID-19 benefits not replicated
FY21 Capex is currently expected to be $50 million due to our ERP investment and capital projects
supporting fresh milk processing in Australia.

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

10
Reconciliation of EBITDA to net profit after tax



Full Year Ended Full Year Ended

30-Jun-20 30-Jun-19

$ 000's $ 000's


Segment EBITDA 549,719 413,610
Depreciation & amortisation (4,393) (2,176)
EBIT 545,326 411,434
Net interest income 5,746 4,277
Income tax expense (165,235) (127,970)
Net profit after tax 385,837 287,741



Geoffrey Babidge
Chief Executive Officer
The a2 Milk Company Limited

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


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

---

The a2 Milk Company Limited
2020 Annual Report
thea2milkcompany.com
2020 Annual ReportThe a2 Milk Company Limited
ARBN: 158 331 965
BUILDING FROM
STRENGTH

During this financial year we have continued to strengthen
our brand and business foundations to enable us to build
sustainable growth for future years.
Moving forward we have a heightened focus on living our
purpose, to enrich lives through the nutritional wonders
of nature, delivering to our financial ambitions, and to
further improving the meaningful impact we can make on
the broader communities and world in which we operate.
GROWING
RESILIENCE
STRENGTHENING
IMPAC T
HIGHLIGHTS
GROUP PERFORMANCE
$1.73bn
Revenue 32.8%
$549.7m
EBITDA 32.9%
$385.8m
NPAT 3 4 .1%
52.39c
Earnings per share
33.5%
$4 27. 4m
Operating cash flow
$854.2m
Cash on hand
PRODUCT SEGMENT REVENUE
$223.4m
Liquid milk 27.7%
$1.42bn
Infant nutrition 33.8%
$85.2m
Other nutrition 29.6%
REGIONAL HIGHLIGHTS
Asia PacificUSA
101.2%
China label
infant nutrition
40.3%
English label
1
infant nutrition
91.2%
Milk sales growth
19.1k
China store distribution
14 .1%
Australian milk sales
20.3k
Store distribution
1 Includes Hong Kong and Korean label
2 The a2 Milk Company Building from strength 3

4 The a2 Milk Company
FY20 highlights 02
Our Chair 08
CEO’s year in review 10
Building a sustainable future 22
Corporate governance 38
Our directors 40
Our executive committee 42
Governance 44
Remuneration 49
Financial statements 54
Other information 102
CONTENTS
Building from strength 5 4 The a2 Milk Company

Company founded in
New Zealand by
Dr Corrie McLachlan
and Howard
Paterson, armed with
unique intellectual
property and a
growing belief of the
effects different milk
proteins have on
human health
2012
The company name
changes from A2
Corporation to The
a2 Milk Company
with a new brand
identity
First human digestion
clinical research is
published supporting
a digestive difference
between A1 and
A2 beta casein
protein types
2014
Renewed agreement
with China State Farm
Comprehensive
strategic relationship
announced with
Fonterra Co-operative
Group
Increased Synlait
shareholding to 17.4%
Australian fresh milk
market share exceeds
10%
a2 Platinum
®
becomes
Australia’s No. 1
infant nutrition brand
2018
Increased Synlait
shareholding
to 19.8%
Included in
S&P/ASX50
Step-changed
our investment
behind our
brand, our
people and
increased
capabilities,
to further
strengthen our
foundations for
future growth
2020
Infant nutrition
step-changes the
business and
now accounts for
60% of revenue
2016
Transferred from NZAX
to NZX Main Board
Formed a manufacturing
agreement with Synlait
Milk Limited (‘Synlait’)
Formed a strategic
partnership with China
State Farm Holding
Shanghai Company
(‘China State Farm’)
Commissioned a state-of-
the-art milk processing
facility in Sydney,
Australia
2008
Major change in
strategic direction,
shifting from
licensing model
to branded
operational model
a2 Milk™
relaunched in
Australia with more
focused brand and
operational efforts
2003
a2 Milk™ begins
selling in New
Zealand and
Australia via
licensing
arrangements
Cliff Cook invests in
the company and
later becomes
Chairman of the
Board 2004 to 2015
2000
Listed on NZX
Alternative
Market (NZAX)
2004
Company records
a Group profit of
NZ$2 .1m
2011
a2 Platinum
®
infant
nutrition brand is
launched in New
Zealand, Australia
and China
2013
Listed on ASX
a2 Milk™ is
launched in USA
2015
Achieved broad
national distribution
in the US liquid milk
market
Included in
S&P/ASX100
Renewed agreement
with Synlait
2019
Group revenue
exceeds $0.5 billion
for the first time
Acquired 8.2%
equity of Synlait
2017
1 Financial year
ending
OUR 20-YEAR
JOURNEY
1
Early in our 20-year history we had many false starts.
However, we persevered to become the company we
are today. Below are some of the highlights of the
critical milestones that have marked our journey and are
paving the way to continuing to realise our ambitions.
Building from strength 7 6 The a2 Milk Company

It is with great pleasure that I
present to you, yet another
outstanding year for
The a2 Milk Company. This
year, as we reflect over our
20-year history, I am reminded
of what a remarkable journey
it has been.
As a business with a proud New Zealand heritage we are also
extremely pleased of how we have developed our Trans-
Tasman markets, the tremendous growth we are achieving in
China, and the additional opportunities we are developing in
North America and other parts of Asia.
2020 was a year in which our business faced many changes
and challenges. Despite this, we didn’t deviate from delivering
on our strategy. The resilience we have created within our
company over many years has provided us a solid foundation
on which to continue building from strength. We continue to
invest in those aspects of the business that will create more
growth opportunities in the future.
Focus areas for the year included:
• A heavy uplift in marketing investment behind our brand,
especially in China
• Our continued expansion into more physical stores in
China, and driving growth across all infant formula
channels
• Expanding our distribution and presence in the USA
• Delivering strong performances in our key growth markets
– China and the USA
• The continued investment in building our internal teams
and capabilities.
Against the backdrop of the uncertainty and complexities
caused by COVID-19, we recognise that we are fortunate
to be supplying essential products that are well positioned
and appealing to consumers. In addition, we have enjoyed
good support from our manufacturing and logistics partners,
our farmers, our in-market distribution partners and most
importantly from our loyal and growing consumer base.
It is the combination of all these that has allowed us to
deliver growth across all our key markets and across all our
product categories.
As well as delivering a record performance this year, we also
deepened our understanding and commitment to building a
more sustainable business. Focus areas included climate impact
assessment, ethical supply chain and responsible sourcing,
animal welfare improvements, farm environmental plans,
assisting our communities to thrive and various initiatives and
investments in our people.
Over the past several years, we have experienced rapid growth
and, consequently, developed a robust balance sheet with
significant cash reserves. This has created a wide range of
options for us to fund our future growth. Our strong financial
standing has allowed us to continue to invest heavily behind
our brand and in the people and technological capabilities
necessary to realise our full potential as a business. Our
approach has generated strong results in the short term, as
well as strengthening the essential building blocks that will
drive the future success of our business.
As we noted in February 2020, as part of the Board’s
ongoing review of the most appropriate use of capital for
the business, we continue to prioritise investment in growth
and other strategic initiatives. We are committed to ensuring
the optimum use of our financial resources and, at this point,
believe maintaining flexibility for the long term is the more
appropriate approach than a return of capital to shareholders
in the short term.
Due to the increasing scale of our infant nutrition business,
we are assessing participation in manufacturing capacity
and capability to complement our existing supply chain
relationships. We have explored a number of opportunities
over the past six months and will update you in due course.
I would like to acknowledge our whole team for the
contribution everyone has made to the business – FY20 was
a year without comparison – we all had to do it differently
to make it happen. On behalf of the Board, I commend
the significant contribution to the company from our Chief
Executive Officer, Geoffrey Babidge, who stepped back into
the business in December 2019. I said at the time we were
fortunate to have someone like Geoff who could assist in this
way, and that could not be more accurate when we reflect on
what transpired in the second half of the year.
I would also like to express how excited we are to have
announced the appointment of David Bortolussi as our
Managing Director and Chief Executive Officer. He is
expected to commence in the role early in the 2021 calendar
year. David has many strengths that make him well suited to
leading the company at this stage of its growth, including
extensive international leadership experience in the consumer
and retail sector.
I also wish to acknowledge the support provided by our
Executive Committee, the management team and all our
staff, including our partners, in ensuring we didn’t miss a
beat through perhaps the most challenging environment that
most of us have ever had to face. On behalf of the Board I
would therefore like to thank this group for their continued
dedication and support for the business.
I would also like to thank my fellow directors for the significant
increase in workload this year. Our Board has been structured
in such a way to ensure we have a high degree of diversity
and experience with strong local insights into our markets.
For better or worse, this also means we are geographically
diverse and as such, it has required careful planning and
flexibility to ensure our effectiveness through the challenges
posed by COVID-19.
To all our shareholders and other stakeholders, thank you for
your continued support for this business. Wherever you are,
we hope you are safe and in good health.


David Hearn
Chair
18 August 2020
OUR
CHAIR
We are successfully
navigating and safely
operating our business
during these challenging
times always with the
health and wellness of our
employees and partners
top of mind.
Building from strength 9 8 The a2 Milk Company

The a2 Milk Company has made significant
gains in revenue and earnings, with strong
performances in all key product segments
and across all core markets.
CEO’S YEAR IN REVIEW
STRENGTHENING
EXECUTION
Building from strength 11 10 The a2 Milk Company

CEO’S YEAR IN REVIEW
PERFORMANCE
OVERVIEW
RESULTS
HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2020 (NZ$)
1,2,3
Total revenue of
$1.73bn
32.8%
EBITDA
4
of
$549.7m
32.9%
Net profit after tax of
$385.8m
34.1%
Basic earnings per share
(EPS) of
52.39c
33.5%
EBITDA to sales
margin of
31.7%
Operating cash flow of
$4 27. 4m
and a closing cash balance of 
$854.2 million
Marketing
investment of
$194.3m
5
targeting opportunities in
China and the USA
45.1%
Group infant nutrition
revenue
of
$1.42bn
33.8%
China label infant
nutrition sales of
$337.7m
and distribution expanded to
~19.1k stores
USA milk revenue
growth of
91.2%
and distribution expanded
to ~20.3k stores
1 All figures are in New Zealand Dollars (NZ$) unless otherwise stated.
2 All comparisons are with the 12 months ended 30 June 2019 (FY19), unless otherwise stated.
3 All figures are quoted based on all operations of the Group, including discontinued operations,
unless otherwise stated.
4 Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure.
However, the company believes that it assists in providing investors with a comprehensive
understanding of the underlying performance of the business. A reconciliation of EBITDA
to net profit after tax is shown on page 111.
5 From continuing operations.
Summary of Group performance
The a2 Milk Company has made significant gains in revenue
and earnings, with strong performances in all key product
segments, and across all core markets.
Our performance was robust throughout the year and
we demonstrated significant resilience in the second
half managing the business in the face of the COVID-19
global pandemic.
Through these unprecedented times, we have been fortunate
to continue experiencing strengthening levels of consumer
demand and worked closely with our strategic partners
and customers to ensure supply chains remained open and
consumer needs continued to be met.
We estimate that COVID-19 had a modest positive
impact on revenue and earnings for the year.
Additionally, our business was favourably impacted
by foreign exchange movements.
Our overall result reflects the continued growth in
our infant nutrition segment with sales totalling
$1.42 billion for the period – an increase of 33.8%
on the prior corresponding period.
In line with our strategy, our growth in China label infant
nutrition products was significant, with sales effectively
doubling to $337.7 million. We achieved this while also
continuing to achieve growth in our English label infant
nutrition products with growth of 21.2%.
Our revenue in the third quarter was well above expectations
due to the impact of changes in consumer purchase behaviour
arising from the COVID-19 situation. This included an increase
in pantry stocking particularly via online and reseller channels.
In our view, a proportion of consumer pantry stocking driven
by COVID-19 unwound in the fourth quarter. However,
this will remain a dynamic situation and we will continue
to monitor changes in consumer behaviour moving forward.
We again achieved solid growth in our liquid milk businesses
in Australia and the USA, with sales across the Group
1
totalling
$222.0 million up 29.7%. Liquid milk sales in Australia were
up 14.1% to $152.5 million and sales in the USA almost
doubled during the year to $66.1 million, driven by improved
sales velocity in established stores as well as an expanded
store footprint.
Our gross margin percentage
1,2
increased to 56.0%,
benefiting from an improved price yield and the positive
effects of currency movements, partially offset by COGS
increases related to infant formula.
During the year we invested $194.3 million
1
in marketing,
to drive brand awareness and conversion to trial in our key
growth markets. This was slightly lower than our forecasted
$200 million due to efficiencies in media spend in the
fourth quarter.
We delivered a full year EBITDA margin of 31.7% which was
in line with the guidance we provided in April. Net cash flow
from operating activities for the period was $427.4 million
representing a high cash conversion rate.
1 From continuing operations.
2 Gross margin percentage is calculated as revenue less cost of goods sold,
divided by revenue.
Strong financial results and
execution continuing
Our performance was
strong throughout the
year and we demonstrated
significant resilience in the
second half managing the
business in the face of the
COVID-19 global pandemic.
Geoffrey Babidge
Chief Executive Officer
Building from strength 13 12 The a2 Milk Company

CEO’S YEAR IN REVIEW
STRENGTHENING
EXECUTION
With the benefit of the
comprehensive work
undertaken during 2019 to
enhance our understanding
of the consumer and sales
channels in our core markets,
we have continued to
increase levels of investment
in marketing and capability to
execute our growth plan.
Our balance sheet remains in a very robust position. Our
closing cash position of $854.2 million reflects growth in
revenue and earnings. This will continue to be important in
the execution of our growth strategy, including potential
participation in manufacturing.
We finished the year with inventory of $147.3 million. This
was higher than prior years, in part reflecting our growing
business, as well as the decision to carry a higher level
of inventory as a safety buffer given the uncertainties of
COVID-19. Additionally, at the end of the period, we have
recognised a provision for a quantity of finished stock that is
on-hold awaiting further testing to ensure it fully meets our
standard of specification.
Delivering on our strategic priorities
and business objectives
We have made significant progress on the execution of our
strategic initiatives throughout the year.
We are committed to a focused approach to pursuing our
strategic growth priorities:
1. Maximise growth from existing products in core markets;
2. Broaden our product portfolio in core markets; and
3. Expand in other targeted markets.
With the benefit of the comprehensive work undertaken
during 2019 to enhance our understanding of the consumer
and sales channels in our core markets, we have continued
to increase levels of investment in marketing and capability
to execute our growth plan.
In Australia, we have continued to build on our market
leading positions in fresh milk and infant nutrition, whilst
leveraging this to launch new products, such as a2 Smart
Nutrition
TM
, to drive further specialised nutritional products
to consumers graduating from infant nutrition.
In China, we remain focused on strengthening our infant
nutrition position in-market which we believe still has
significant runway for growth. It is pleasing to see our
investments in brand, trade activities and people driving
strong sales momentum, in particular within our China label
infant formula brand, a2
至初
®
, which now accounts for 24%
of our total infant formula business.
In the USA, we continue to build brand awareness and drive
towards meaningful scale.
Our targeted exploration of new markets continues. In
October we launched a new Hong Kong label range of infant
formula, in December we launched Stages 1-3 infant formula
in Korea with our partner, YuhanCARE (Yuhan), and in March
we entered into a new licensing agreement with AgriFoods
in Canada to produce, market and distribute our fresh
milk brand.
Work progressed during the year to expand our product
portfolio in China. A growing range of long life milk and
powder products targeting families is expected to become
a meaningful growth engine over time.
Capital allocation framework
As we noted in February 2020, as part of the Board’s ongoing
review of the most appropriate use of capital for the business,
we continue to prioritise investment in growth initiatives
ahead of returning capital to shareholders.
As we have announced previously, due to the increasing
scale of our infant nutrition business, we consider it now
appropriate to assess participation in manufacturing capacity
and capability to complement our existing supply chain
relationships. Accordingly, we are presently evaluating
opportunities to address this issue, with significant progress
made during the year.
With our cash balance growing it has become increasingly
important for the business to review our capital requirements
going forward. A significant review of our capital allocation
framework was commenced in the second half with a view
to defining the discipline and prioritisation of our financial
parameters in a way that optimises and supports our
long-term plan.
Leveraging our strategic partnerships
This year has again highlighted the importance of key
strategic partnerships. This remains a core element of our
capital-smart business model.
We acknowledge and thank all our suppliers and customers
for their support and assistance throughout the year. In
particular, we acknowledge our three key strategic partners
China State Farm, Synlait Milk and Fonterra. We have
refocused our relationship with Fonterra and look forward
to potential new opportunities to provide meaningful
benefits to both companies in the medium term.
Building from strength 15 14 The a2 Milk Company

We have substantially increased our
in-market capability with many new
hires to the China team and
further optimised our distributor
arrangements which have allowed us
to improve our in-market execution
at both brand and retail levels.
CEO’S YEAR IN REVIEW
AUSTRALIA AND NEW ZEALAND
FY20 Revenue
$965.7m
14.6%
Infant nutrition
$745.1m
14 .1%
Liquid milk
$152.5m
14 .1%
Other nutritional
$6 8 .1m
21.3%
1. Deliver Asia Pacific sales strategy outcomes
Our Asia Pacific business revenue was $1.66 billion, up 31.5%,
with EBITDA of $690.5 million, up 32.0%. This included:
• ANZ segment revenue of $965.7 million, up 14.6%, with
EBITDA of $465.6 million, up 19.9%
• China & Other Asia segment revenue of $699.4 million,
up 65.1%, with EBITDA of $224.9 million, up 66.7%.
Infant nutrition
Our Asia Pacific infant nutrition portfolio comprising
predominantly China and English label products delivered
$1.42 billion, up 33.8% on the prior corresponding period
(“PCP”). China label infant nutrition products can be sold via
mother and baby stores (MBS), modern supermarkets and
domestic e-commerce retail channels. English label products
can be sold through ANZ retailers, ANZ-sourced resellers and
cross border e-commerce (CBEC) channels. We continue to
leverage a multichannel approach to ensure we can cater to
our consumers’ differing shopping needs.
We have substantially increased our in-market capability with
many new hires to the China team and further optimised our
distributor arrangements which have allowed us to improve
our in-market execution at both brand and retail levels.
Despite COVID-19 causing some disruptions and changing
consumer behaviour across the marketplace, we managed to
maintain our sales growth momentum. However, with a shift
of sales from offline to online channels we chose to pause
some of our marketing plans while we observed the impacts
of these changes. As restrictions eased in China during
the second half, we resumed the scale of our marketing
programme including significant media investment and
working with our distributors and retailers to improve our
brand experience in-store. We are pleased with the impact
this had on sales growth and brand awareness across all our
key channels.
Infant nutrition – China label channels
We achieved sales of $337.7 million for a2
至初
®
China label
infant nutrition, which was over 100% growth on PCP and
62.7% growth for the half. Our MBS value share was 2.0%
compared to 1.7% at HY20, up from 1.3% at FY19.
3
These results are an outcome of consistent investment in
advertising, our strategy of pursuing distribution in high
productivity stores and optimising in-store execution. These
efforts are underpinned by increased data analytics capability
to ensure our investments are optimised.
Offline store closures associated with COVID-19 disruptions
during the third quarter meant we added fewer new stores
to our offline footprint in the second half, increasing to
19.1k stores compared with 18.3k at the end of 1H20.
However, we worked closely with our distributors and retail
partners through these disruptions, including to fulfil orders
via direct home deliveries, within the bounds of internal
travel restrictions.
We launched a China label version of our Stage 4 product
and introduced a tamper-evident lid for our Stages 1, 2 and 3
China label products in December, to further enhance product
security and provide additional differentiation with our English
label products. Our infant nutrition portfolio is complemented
by our other nutritional products as we broaden our appeal to
existing consumers and seek to connect with new consumers.
3 Source: Nielsen MBS – 12-month market value share.
Infant nutrition – Cross border e-commerce
We delivered a2 Platinum
®
English label infant nutrition
sales of $341.1 million, up 40.3% and reached a CBEC
value share for the financial year of 21.7%, up from
20.6% at HY20 and up from 18.6% at FY19.
4

It was pleasing to see our expanded market share in this
strategically important sales channel given heightened
competitive activity across 2H20 and we continued to
invest in driving demand across e-commerce platforms.
There has been a concerted effort throughout the year
to better track and understand the effectiveness of our
digital marketing tools with an increased focus on data
analytics to further refine and optimise our approach.
This will continue in FY21.
We performed well across the key e-commerce selling
events throughout the year, including “11/11 singles
day” in November and “6/18” in June. For the “6/18”
event, our a2 Platinum
®
Stage 3 was the top selling
infant nutrition product on JD.com. and, for the first
time, we were the bestselling CBEC IMF brand overall.
On Tmall, we were the second best selling CBEC IMF
brand overall and the number one CBEC flagship store.
Infant nutrition – ANZ retailers and resellers
Our infant nutrition sales in ANZ grew 14.1% delivering
$745.1 million in revenue for the year. We remain the
market brand leader in Australian grocery and pharmacy
channels and continue to invest behind our brand, with
our level of advertising being the highest in the category.
Despite positive growth, COVID-19 related travel
restrictions negatively impacted the reseller channel due
to reduced travel between Australia and China.
4 Source: Smartpath CBEC – 12-month market value share.
STRENGTHENING
EXECUTION
Building from strength 17 16 The a2 Milk Company

CHINA & OTHER ASIAUNITED STATES
CEO’S YEAR IN REVIEW
Infant nutrition – market share reporting
Our business continues to evolve as we grow, particularly for
consumption of Stages 3 and 4 amongst children above three
years of age, and increased penetration in lower tier cities.
In our view, tracking the MBS channel with Nielsen scan data,
and the CBEC channel through Smartpath, more accurately
reflects our performance and yields greater market insight.
As such we will move to reporting against these sources
externally, in line with industry practice.
Liquid milk
It is pleasing to report that our Australian fresh milk business
continues to perform well with total revenue of $152.5 million.
In our most mature category, we achieved double-digit
revenue growth of 14.1%. Demand in the third quarter and
start of the fourth quarter was particularly strong as consumers
increased their in-home consumption during COVID-19 with
many working from home for extended periods.
Furthermore, a2 Milk
TM
maintained a 12 month value share
o f 11. 3%
5
despite the strong category value growth caused
by the retail price increase of private label milk. a2 Milk
TM

continues to be the only fresh milk brand ranged in all major
supermarket chains and the highest brand advertiser in the
fresh milk category, maintaining very high brand awareness
and loyalty which benefits the portfolio as a whole.
We have also recently entered into an arrangement to
underwrite the expansion of the manufacturing facilities of our
long-term fresh milk supply chain partner in Victoria, Kyvalley
Dairy Group (“Kyvalley”), to support the ongoing growth of
our liquid milk business.
Through this arrangement we will acquire Kyvalley’s Kyabram
milk processing facilities and fund its expansion and upgrade.
Kyvalley will manage the assets under a lease and revised
long-term supply agreement.
5

IRI Australian Grocery Weighted Scan 12 months ending 30 June 2020.
The arrangement would involve certified dairy farmers
continuing to supply Kyvalley with raw milk.
The arrangement remains subject to Foreign Investment
Review Board approval.
Other nutritional products
For all other nutritional products, sales increased 29.6%
to $85.2 million.
The most significant proportion of our other nutritional
segment remains a2 Milk
TM
whole milk and skim milk powder
which is now available in ANZ and China, with further
potential for growth across new channels, particularly in
offline China retail channels.
a2 Smart Nutrition
TM
continues to show positive signs of
becoming a meaningful extension of our infant and children’s
nutritional portfolio. There are encouraging indications
of consumer acceptance, and a China label version of the
product was launched in January 2020, initially with a focus
on gaining distribution in MBS. A bigger roll-out, including a
launch of 200mL a2 Smart Nutrition
TM
UHT will be conducted
into modern trade during FY21 as part of a broader channel
push to to engage families across a wider range of a2 Milk
TM

based products.
The re-launch of our nutritional product targeting mothers
under new branding and a reformulation of a2 Nutrition for
Mothers
TM
was successfully completed in 2H20.
a2 Milk
TM
powder blended with Māānuka honey continued to
present some manufacturing challenges during the year, with
the product to be reintroduced in 1H21.
2. Reach meaningful scale in North America
USA
We delivered revenue in the USA of $66.1 million, representing
growth of 91.2% compared to the prior corresponding period
with brand awareness more than doubling, and conversion
rates up significantly. Encouragingly, over 50% of our sales
growth was driven from existing stores.
Our average velocities have grown within our key accounts in
the range of 14% to 74%, with many of our key accounts with
average units per store per week of greater than 20-25 and
some above 40. Given increased investment in building brand
awareness and distribution growth, we recorded an EBITDA
loss of $50.5 million.
Distribution grew to approximately 20.3k stores, from 17.5k
stores at the end of December 2019 and 13.1k stores as at
end of FY19. Leveraging the consumer and channel insights
obtained through a strategic review completed in 2019, we
introduced new packaging and launched a new TV advertising
campaign, both of which received positive feedback from
consumers and the retail trade, and assisted in further building
brand awareness and conversion to trial.
In July 2019, we launched a2 Milk
TM
Coffee Creamers which
have been received positively and are performing to plan.
As consumer demand for our products builds, and our
distribution footprint strengthens, we expect opportunities
to launch additional new products will emerge. Prior to
COVID-19 our increased in-store merchandising efforts were
delivering encouraging results in enhancing our sales velocities.
Whilst our consumption is up compared to the prior period,
from March, in-store foot traffic during the pandemic
reduced due to retailer safety policies; and purchasing
limitations on milk per visit limited the growth that we may
have otherwise seen for the brand. In the third quarter our
plans to increase the utilisation of a merchandising team
were impacted by COVID-19. However, merchandisers have
returned to stores from July and are having a positive impact
on retail distribution.
STRENGTHENING
EXECUTION
FY20 Revenue
$699.4m
65 .1%
FY20 Revenue
$66.1m
91.2%
Infant nutrition
$678.8m
65.2%
Other nutritional
$17. 2m
78 .1%
Building from strength 19 18 The a2 Milk Company

CEO’S YEAR IN REVIEW
The impact of COVID-19 in the USA market overall has been
significant. We are seeing that consumers are becoming
more value conscious given economic uncertainties, high
unemployment rates, and have adjusted our FY21 sales and
marketing plans accordingly.
Hence, in FY21, we will shift our focus away from broadcast
advertising media to a greater emphasis on in- store price and
activation to drive demand. We are planning promotional
initiatives in conjunction with our key retail customers with
the objective of further building our facings and sales velocity.
The outcome of this shift will be growth in volume
accompanied by increased trade spend with net revenue
broadly consistent with FY20. With lower overall marketing
spend we anticipate an improved EBITDA result for FY21.
As we build towards reaching meaningful scale in the
USA, our initial milestone for the business continues to be
US$100 million of annualised sales.
Canada
In March, we entered into an exclusive licensing agreement
with Agrifoods International Cooperative Ltd (“Agrifoods”) for
the production, distribution, sales and marketing of a2 Milk
TM

branded liquid milk for the Canadian market.
Since March, we have worked closely with Agrifoods,
providing access to our intellectual property and marketing
assets as well as our proprietary systems and know-how
relating to the local sourcing and processing of a2 Milk
TM
.
Agrifoods is leveraging its substantial capabilities in-market
to establish distribution across Canada and has primary
responsibility for funding this venture. The product has
recently been launched to a number of customers in
Western Canada.
3. Build towards sustainable brand leadership
Building brand value and increasing brand awareness through
marketing investment remains an important focus. We
invested $194.3 million
6
in marketing during the year, which
represented a 45.1% increase on prior year driven primarily by
increases in our China marketing investment.
We leveraged our deepened understanding of consumers
and purchasing behaviour in China to continuously improve
our marketing mix which includes consumer advertising,
in-store and event activations, digital live streaming and the
development of a new brand creative platform. While we had
launched this new creative in December 2019, we decided to
temporarily pause and adjust the plan in the third quarter due
to COVID-19. However, we resumed the activity in May as
COVID-19 restrictions in China began to ease.
In addition to consumer marketing, our brand value is
supported by investment in research and development
programmes, an increased focus on sustainability, as well as
initiatives to support the communities in which we operate.
Supporting relevant independently managed scientific
studies remains important as we build our long-term brand
proposition. In September 2019, the results of a clinical trial
from 75 Chinese children aged between five and six with mild
to moderate milk discomfort or lactose intolerance (confirmed
via a urinary galactose test) were published. The study reported
that replacing conventional milk with a2 Milk
TM
“reduced
gastrointestinal symptoms associated with milk intolerance”
in many subjects and led to “a corresponding improvement
in an aspect of cognitive performance” as measured using
the Subtle Cognitive Impairment Test (SCIT)
7
. The study was
independently peer reviewed and published in the USA based
Journal of Pediatric Gastroenterology and Nutrition.
6 From continuing operations.
7 Xiaoyang S, Zailing L. Effects of Conventional Milk Versus Milk
Containing Only A2 ß-Casein on Digestion in Chinese Children.
J Pediatr Gastroenterol Nutr. 2019 Jul 9.
We significantly stepped up our contributions to the
community in 1H20 with donations to the bushfire appeal in
Australia to support regional and rural communities which are
the heart of our milk supply in Australia.
We also contributed through a series of initiatives to support
those impacted by COVID-19 including product donations to
frontline medical workers and consumers in Wuhan, a cash
donation to the Shanghai Red Cross and contributions to two
leading Australian universities for research into a vaccine for
COV ID -19.
We are also pleased with the progress we have made in
our sustainability initiatives in FY20. We have significantly
improved the foundations on which we will build a meaningful
and impactful strategy going forward. Central to this is the
recent launch of The a2 Impact Fund
TM
which will be used to
bring together many of the sustainability-related activities we
undertake on a daily basis, as well as amplifying our progress
against a number of identified environmental and social
initiatives and for a range of important stakeholder groups.
4. Deliver the organisation of the future
To support the execution of our overall Group strategy, we
continue to build capability within the organisation. This year
we introduced a number of new roles to complement and
extend our existing capabilities, particularly in-market in China,
the USA, and within certain Group functions. We increased
the size of our team to over 300 people, up 41.0% from
last year.
To enhance our organisational alignment and enable the
right ways of working to deliver on our strategy, we recently
reorganised our most senior executive team to form our
Executive Committee and formed a Senior Leadership Group
which comprises the senior management of the business.
We also established several initiatives designed to enhance
engagement and launched a revised remuneration framework
to align with our strategic direction.
Over the next two years we will be implementing new
information technology systems to support the existing
organisation and provide for future growth.
We also utilised external resources to accelerate the delivery
of certain outcomes and to complement existing internal
capabilities. As we improve internal capability, the composition
and level of external resourcing will moderate over time.
I would also like to take this opportunity to recognise the
efforts of all our people this year. It was one that included a
number of changes and unique challenges, but the team has
continued to drive forward together, building from strength.
We are proud of what we have achieved commercially and of
the way our people went about embracing change, managing
challenges and looking after each other as well as the business
– truly espousing the values of our big small company.
Outlook
FY21
Globally, there continues to be uncertainty resulting from
COVID-19, and the potential for moderation of economic
activity. This could impact consumer behaviour in our core
markets, as well as participants within the supply chain, most
notably in China.
Notwithstanding these uncertainties, overall for FY21, we
anticipate continued strong revenue growth support by our
regions supported by our continued investment in marketing
and organisational capability.
FY21 EBITDA margin is expected to be in the order of 30%
to 31% reflecting:
• Higher raw and packaging material costs partially offset
by price increases
• Increase of marketing and investment
• FX benefit of prior year not expected to be replicated
• 3Q20 COVID-19 benefits not replicated.
FY21 Capex is currently expected to be $50 million due to
our ERP investment and capital projects supporting fresh milk
processing in Australia.
Medium-term target
As previously announced, the Board considers it appropriate
that the company target an EBITDA margin in the order
of 30% in the medium term. This assumes the market
performance and mix of our products remains broadly
consistent and the competitive environment evolves as
anticipated. We will keep the balance between growth and
investment under constant review.
Geoffrey Babidge
Chief Executive Officer
18 August 2020
STRENGTHENING
EXECUTION
Building from strength 21 20 The a2 Milk Company

Our integrated approach to building a sustainable
business for the future recognises the needs and
expectations of multiple stakeholders including our
people, consumers, farmers, strategic partners and
investors. We continue to embed this within our
organisation, and in the business activities we
undertake every day.
We recognise we are at the early stages of this
journey. We are pleased with the progress we have
made this year and know there is still much to do.
BUILDING A
SUSTAINABLE
FUTURE
SUSTAINABILITY
22 The a2 Milk Company Building from strength 23

Growing consumer demand for health and
wellness products
A growing awareness of the link between food
and overall health, coupled with rising disposable
incomes, and increased demand for both protein
and gut health.
Rise of the middle class in Asia
Asia’s unprecedented growth is creating large-scale
opportunities for individuals, businesses and nations.
Growing focus on food safety, naturalness
and provenance
Increasing consumer conscious of food safety
and product origins.
Rapid pace of digitalisation
The rise of digital connectivity and innovation,
and e-commerce generally, is changing consumer
experiences and behaviours.
Complexity of doing business in
international markets
Doing business across borders is becoming more
complex and, more recently, harder to predict.
Challenge of climate change and pressure on
agricultural systems.
The physical impacts of climate change are
materialising with increased frequency and intensity.
Creating value and addressing impacts on the
environment and our climate are inextricably linked.
SUSTAINABILITY
EXTERNAL
MACRO
FACTORS
HOW WE
CREATE
VALUE
OUR
BUSINESS
Unique, premium
brand and IP
(Intellectual capital)
Passionate and
thriving team
(Human capital)
Capital smart
approach
(Financial capital)
Innovative and
ethical supply chain
(Manufacturing capital)
Enriching community
wellbeing
(Social capital)
Responsible use of
natural resources
(Natural capital)
Our Values
• Bold passion
• Pioneering spirit
• Humility
• Respect
• Integrity
Maximise
sustainable
growth
from
existing
products
in core
markets
Broaden
product
portfolio
in core
markets
Expand in
other target
markets
Our Strategy
123
Building towards sustainable brand leadership
Delivering the organisation of the future
Our Purpose
Our purpose is to enrich lives
by harnessing the nutritional
wonders of nature.
Our purpose is to enrich
lives by harnessing
the nutritional
wonders of nature.
OUR
INTEGRATED
APPROACH
In 2019 we recognised the
need to step up our focus and
disclosure in sustainability
and developed our approach,
with the expectations of
multiple stakeholders in mind.
With this as our starting point, we established
an integrated approach to reporting through our
“Six Capitals” framework, seeking to codify elements
within our company that we believe contribute to our
overall ability to create long term value.
Our integrated “Six Capitals” framework defines
our unique way of how we can create value and
enables us to prioritise how we can make a positive
and meaningful impact across the community and
environment in which we operate.
Building from strength 25 24 The a2 Milk Company

MetricFY20FY19FY18
Female
Directors
% of total
2
40%
2
33%
1
17%
Executive
Committee
1

% of total
2
22%
5
42%
1
10%
Senior
Leadership
Group
1

% of total
9
36%
8
31%
8
38%
Managers
% of total
17
45%
18
49%
18
49%
Sub-total for
senior leaders
2

% of total
30
45%
25
45%
20
38%
Other staff
% of total
142
56%
98
57%
79
62%
Total
% of total
172
54%
123
54%
99
55%
SUSTAINABILITY
There are six core elements, or sources of capital, embedded in our
value creation model. Our strategy depends on success across each
given the inter-connected nature of our business model. 
OUR SIX CAPITALS
HOW WE CREATE VALUE
Unique, premium
brand and IP
Intellectual capital
Our trusted brand, our proprietary know-
how and A2 protein expertise are our
most valuable assets. We are committed to
maintaining and sustainably growing these
assets with ongoing investment.
Our premium brand is strengthening in
awareness, consumption and loyalty to
varying levels across our key markets. We
invest significantly to grow and protect our
brand and its trade marks in all product
categories and regions.
Through ongoing science and research
and development programmes, we are
deepening our expertise and advancing
global understanding of the potential
health benefits of a2 Milk
TM
. In addition,
we have a belief in the power of science
and will continue to invest in research
programmes that lead to the betterment of
our community at large.
Passionate and thriving
team
Human capital
Through a purpose-driven culture
underpinned by our values, we aim to create
an environment that provides our people with
opportunities to thrive. Our success is the result
of our diverse, skilled and engaged workforce
which is aligned and focused to deliver on our
purpose and strategy.
Through our diversity and inclusion comes
creativity and thinking that goes beyond
the conventional. This is how we overcome
challenges and unlock extraordinary opportunity.
Our Diversity Policy empowers and equips our
people leaders to foster a diverse, inclusive and
competent workplace. We of course believe
that diversity includes differing beliefs, gender,
age, ethnicity, physical abilities and cultural
background; which when combined with an
inclusive mindset, will enhance the business
overall. During F20, we were focused on
enhancing gender balance in our workforce,
having set a target of a minimum of 40%
women, and a minimum of 40% men, across
leadership positions.
MetricFY20FY19FY18
% revenue
invested in
marketing/R&D/
IP
11. 5%10.9%8.5%
Capital smart
approach
Financial capital
Our business model is built on deep
and long-term strategic partnerships
both commercially and operationally.
Our farmers and processing partners
are some of our longest-standing
relationships. Together we have built a
very successful community of businesses
– big and small. This ecosystem
underpins our “capital smart” business
model and has given us the ability to
grow rapidly, while also building a strong
balance sheet for continued growth.
Our robust balance sheet position and
unique proposition provide a strong
platform for continued growth. We
make considered decisions about the use
of our capital, making decisions to invest
where it is strategic to do so.
MetricFY20FY19FY18
Revenue
($bn)
$1.7$1.3 $0.9
Return
on capital
employed
3
56.3%61.2%70.4%
Operating
cash flow
$427.4m$289.1m$231.1m
Responsible use of
natural resources
Natural capital
Access to natural resources and a thriving
agricultural sector is fundamental to
our business. We recognise that climate
change and pressures on agricultural and
food systems present a systemic challenge
for our world – and we’re committed to
finding unique and high impact solutions
across our value chain to help address
these challenges.
We are committed to the global ambition
of the Paris Agreement and a 2050 net
zero emissions target, as are our key
suppliers and strategic partners.
Whilst our total emissions have increased,
that is a likely outcome of a high growth
business. Despite this we recognise we
need to make more tangible efforts,
alongside our partners, to reduce our direct
and indirect emissions over time.
Innovative and ethical
supply chain
Manufacturing capital
Complementing our own fresh milk
production capability, we work closely with
our suppliers to develop a reliable and
responsible sourcing and manufacturing
supply chain over time. We believe this
is critical to our long term success. Our
strategic supply chain partners share our
ambition on quality, environmental and
ethical values. This includes food safety and
quality management programmes audited
by accredited third party agencies.
It is important to recognise the unique role
that farmers play in our supply chain. We
fund a premium to all farmers for our milk,
recognising their hard work to maintain
our very high herd management and
quality standards.
Enriching community
wellbeing
Social capital
We take our responsibility to the
communities in which we operate very
seriously.
We recognise our responsibility to support
the resilience of our farming communities.
In addition we also are making increasing
investments within our broader
communities to support their health and
wellbeing, and enable them to both survive
and thrive.
As we continue to grow, we are committed
to doing more to support the communities
in which we operate.
Metric
FY20FY19
10
FY18
GHG
Emissions
4
(tCO
2
e)
Total
488,852 413,233 409,464
Scope 1
5
224206187
Scope 2
6
1,609 1,5071,502
Scope 3
7
487,020 411,520 407,775
Direct
operations
8
(Scope 1, 2
and 3)
3,858 4,923 3,930
Third party
processing
and freight
131,273 102,288 103,869
On-farm
9
353,722 306,022 301,665
Metric
FY20FY19
% of fully recyclable
packaging
95.9%95.5%
Smeaton Grange
Total water usage
(‘000 litres)
27,66224,744
Water efficiency
(litres/litre of milk)
0.70.5
Waste water diverted
to beneficial land
application (litres)
919,900516,500
Waste produced (tonnes)
28.925.6
Waste diversion
97.1%95.4%
Energy consumption
(kWh)
1.7m1.7m
MetricFY20FY19
Donations of cash and
products ($NZ)
2.80m0.94m
4 Greenhouse gas emissions, calculated as
tonnes of carbon dioxide equivalent (tCO
2
e),
have been estimated using the approach
recommended by The GHG Protocol. Emissions
and conversion factors were sourced from the
National Greenhouse Accounts Factors for
Australia, the UK DEFRA GHG conversion factors
and a range of other country-specific sources.
Where required, non-direct emissions sources
have been estimated using default and/or
extrapolated emissions intensity rates to provide
a more complete picture of our Scope 1, 2 and
3 carbon footprint. Total emissions calculations
exclude packaging. We expect data quality to
improve over time as we continue to work with
our partners.
5 Includes natural gas estimates and/or
extrapolations for some information not yet
available.
6 Includes electricity estimates and/or
extrapolations for some information not yet
available.
7 Due to the nature of Scope 3 emissions
occurring outside of areas under our direct
control, this represents a conservative estimate
of our Scope 3 emissions. Key emissions
sources include: on-farm emissions, energy
consumed within third party processing
and warehouse facilities, fuel consumed in
freight logistics and business travel, as well
as emissions associated with waste, recycling
and water consumption. Where required,
estimations have been made where data
was not able to be directly sourced or where
data was not yet released. This includes
assumptions and extrapolations from available
data. Moving forward, we will endeavour
to source as much actual data as possible to
improve data quality.
8 Includes our own fresh milk processing facility
and corporate operations.
9 Calculated using actuals and industry
estimations based on milk unit sales for all
farms in Australia, NZ, the US and the UK,
excluding Synlait for which emissions are
estimated based on our proportion of total
output.
10 GHG emissions have been restated to reflect
updated external modelling used to calculate
GHG emissions in New Zealand, improved land
use efficiency and improved herd productivity.
1 We formed our Executive Committee in FY20.
In FY19 and FY18, this shows equivalent
membership in each of those groups.
2 Sub-total for senior leaders is the total of
Directors, Executive Committee, Senior
Leadership Group and Managers.
3 Calculated using average capital employed,
including cash and investment in Synlait Milk
Limited.
Building from strength 27 26 The a2 Milk Company

SUSTAINABILITY
Human
capital
Length of service
5+ years 11%
2-5 years 20%
0-2 years 69%
Age group
Over 50 23%
30-50 65%
Under 30 12%
Female composition
Total employees 54%
Senior leaders 45%
1. OUR PEOPLE
We are a company proud of our New Zealand origin and
proud that we take our products to the world. Our roots
are embedded in a pioneering spirit and we seek to make
a fundamental difference in people’s lives.
Our focus is to build the organisation of the future
through capability, performance and engagement. We are
working to protect our culture and foster an environment
of inclusion, passion and agility; whilst increasing our
capability and head count to support our growth.
We delivered a comprehensive programme of activities
throughout the year to drive culture, promote inclusion and
connect our people with the business.
We conducted our first all of company engagement survey
with a participation rate of 83% and an engagement score
of 84%. We will continue to monitor this metric year on
year, to gauge the effectiveness of our activities and to
ensure we are evolving our organisation and its people to
deliver on our strategic fundamentals.
Building capacity and capability
across the organisation
To enable our strategy, we continue to focus on ensuring the
right operating model and organisational design. In FY20 we
grew our workforce by 41% to deliver the capability needed
in our growth markets but also to enhance the development
of key areas in our Group functions.
To enhance our organisational alignment and enable the
right ways of working to deliver on our strategy, we recently
reorganised our most senior executive team to form our
Executive Committee. This did however result in a decline in
gender diversity at this level due to the re-allocation of roles
to new levels.
P
u
r
p
o
s
e

a
n
d

p
a
s
s
i
o
n

P
h
y
s
i
c
a
l

h
e
a
l
t
h

M
i
n
d

a
n
d

w
e
l
l
b
e
i
n
g
S
u
r
r
o
u
n
d
i
n
g

e
n
v
i
r
o
n
m
e
n
t

L
i
f
e

b
a
l
a
n
c
e

G
r
o
w
t
h

a
n
d

l
e
a
r
n
i
n
g
F
o
r

y
o
u
Embedding safety, ethics and
compliance systems
Across our value chain, we aim to operate safely and ethically,
including with respect for human rights and in compliance with
all local requirements, including anti-bribery and anti-corruption.
We continue to invest in our people and systems to build
capability to meet our strict product quality and food safety
standards. Further, we have embedded monitoring and
compliance systems specific to the regulatory environments in
each market we operate in.
In FY20 we implemented a new global Safety Management
System to support the education, leadership and governance of
workplace health and safety across all our sites and operations.
We undertook an assessment of human rights and other ethical
risks in our value chain to ensure alignment of our supply chain
management approach with our fundamental values of respect
and integrity. We have provided details in the following case
study “Doing business the right way”.
We revised or developed a number of policies within the
business to facilitate an inclusive environment. This included our
recruitment policy which clearly articulates the importance of
equality and our flexible working policy which articulates various
work arrangement options to cater for the various life and work
responsibilities of our people.
As such, we continue to build a diverse and inclusive community
of great people throughout the company and at all levels of the
organisation.
Ensuring engagement through
COVID -19
One of our key business objectives is to deliver the organisation
of the future, and this goal remains unchanged during these
unprecedented times.
Given the challenges caused by COVID-19, the way we delivered
against this objective needed to be adjusted in FY20. We
needed to be agile, and this required that our teams work
differently, relying on their resilience to balance and juggle the
competing demands of life and work.
Keeping our team safe during these times has been a priority.
We were already remote-ready, and as different offices
moved to work from home, we had laptops, virtual meeting
infrastructure and IT support already in place. Being agile
and flexible was crucial to the success of keeping everyone
connected with business running as usual.
We have also been able to supply teams with personal
protective equipment and sanitiser. We also adjusted the
working environments to cater to social distancing in
preparation for return to the office (desk dividers, temperature
checks, sanitiser and splitting of team attendance in offices).
We conducted regular surveys to check in with our people –
seeking to understand primary concerns so that we are best
placed to support them in those areas.
In FY20 we focused on a capability “buy” and “build”
strategy where we recruited a number of new people to the
organisation but also introduced a number of professional
development and coaching initiatives to develop technical and
leadership capabilities across the business to support growth
as well as succession planning.
Investing in our people
In FY20 we invested more in our people than ever before.
We launched our integrated people experience programme,
a2 For You™ – helping you be your best self. It is a
framework that allows us to articulate the employee value
proposition and assist employees to navigate all programmes
and support so that they can be their best self when they
come to work.
Key programmes launched under a2 For You™ in FY20
included:
• The a2 Milk Company culture programme to align people
to our purpose, values and strategy
• Our performance and development programmes, including
the launch of a2 University
• A new remuneration and reward policy and programmes
• Our health and wellbeing programme
• A number of new or revised people policies including
recruitment, diversity and inclusion, and flexible working and
• Upgrading of our online governance and compliance
training.
OUR
FOCUS
AREAS
In FY20 we identified a
number of focus areas to
enhance our efforts to
become a more sustainable
business for the future. These
included: our people, our
farms, understanding climate
impacts, doing business the
right way and supporting our
communities to thrive.
While we are pleased with our progress, we recognise
we are on a journey and have more work to do. Over
the coming year we will continue to advance our
efforts within these focus areas.
We are also pleased to announce that we will be
creating The a2 Impact Fund
TM
. The aim of the fund is
to take an umbrella approach to coordinating all the
investments and efforts we are making in developing
a more sustainable business.
In the following sections, we provide more detail
on our approach to our focus areas, including
our next steps.
Building from strength 29 28 The a2 Milk Company

SUSTAINABILITY
2. OUR FARMS
The relationships we have with our farmers are pivotal to our
business. We are proud to have always paid a premium for
our milk but want to ensure we don’t stop there. We are on
a journey to improve the animal welfare and environmental
plans we have in place at each and every farm.
Animal welfare
Central to the responsible sourcing of our products are best
practice standards for animal welfare on our farms. This year
we’ve been investing in and building on our global animal
welfare programme, which goes above and beyond in
ensuring the proper care for animals on our supplier farms.
The programme meets globally recognised standards set
by the World Organisation for Animal Health and upholds
the Five Freedoms framework for animal welfare. The latest
evolution of our animal welfare programme includes further
transparency, measurability, risk mitigation and efficiency.
In FY20, we built a number of extensions into the programme,
supporting our farmers to establish systems for continuous
improvement in animal welfare. We will continue to monitor
our approach and always be seeking to identify ways to further
improve our programmes beyond the industry standard.
Our target is for 100% of our farms to be certified under our
upgraded programme by 2023.
Farm environmental plans
We are developing a globally consistent framework for our
Farm Environmental Plans. More than 65% of farms supplying
us milk already have a Farm Environmental Plan in place, and
the new framework will ensure consistency in measurement
and standards across our global farm network.
Manufacturing
capital
Natural
capital
Social
capital
OUR FOCUS AREAS
What’s next?
We will be applying new learnings to our animal welfare
approach, and will continue to refine the programme
in FY21, with a particular focus on meaningful training
opportunities for our farmers and scaling the use of
technology on farm to enable real time visibility.
We will be continuing to consult with our strategic
supply partners, farmers and industry experts to further
develop and improve our Farm Environmental Plans.
We will be working with farmers to roll out these new
plans in FY21.
We will continue to iterate and improve these plans
moving forward.
3. UNDERSTANDING
CLIMATE IMPACT
The impact of climate change has the potential to drive
significant structural transformation across the dairy sector.
The sector will need to take concerted action to manage the
risks and opportunities associated with a move towards a
lower carbon footprint. The risks include regulatory, such as
carbon pricing, and market risks, such as changes in consumer
preferences.
In addition, the sector’s reliance on natural systems and
vulnerability to changes in temperature and rainfall will also
drive mounting physical risks across agriculture. There will also
be extraordinary opportunity for the sector to realise increased
productivity and efficiency through new technologies and
practices that lower emissions and environmental impact
throughout the supply chain.
We recognise that how we position ourselves in response
to these climate risks and opportunities will determine how
“future fit” our business is. We would like to take a proactive
approach to integrating climate considerations into our
strategic decision making, but we are only at the start of this
journey. By taking a more concerted approach we will aim to
reduce disruption to our business and yield long term benefits
for both ourselves and the environment in totality.
As part of our ongoing commitment to TCFD
1
implementation,
in FY20 we performed climate scenario analysis for the first
time. We assessed transition and physical risk under a 2ºC
and 4ºC change in temperature scenarios. The scenarios were
developed to be consistent with global best practice, including
the TCFD principles. Our analysis combined internal and
external data and assessed impacts on an unmitigated basis.
It has enabled us to model the potential financial impacts of
climate change on our business, taking a longterm view out to
2050, to inform strategic and financial planning today.
Our preliminary assessment of first order impacts indicates
that, relative to the global dairy industry, our business model
has some positive levels of resilience to transition and physical
climate-related risks. Further work will be undertaken in
FY21 to further understand potential impacts to our product
categories (notably infant formula and liquid milk) and will
include stress testing of our resilience against second-order
structural impacts and risk inter-dependencies.
1 TCFD: Task force on Climate-related Financial Disclosure
What’s next?
The next steps in our TCFD journey include developing
short, medium and long-term targets, deepening our
scenario analysis in specific impact areas, structural
impacts and risk interdependencies.
In FY19 and again for FY20, we elected to purchase
carbon credits to offset our greenhouse gas (“GHG”)
emissions across all our direct and indirect operations.
For FY21 we will reduce the amount of carbon credits
we purchase to only cover our “direct operations”
(Scope 1,2 & 3). We will redirect the value of our
indirect GHG emissions into The a2 Impact Fund™ for
investment in tangible climate-related programmes that
will create a positive impact on the planet, and will also
benefit our business over time.
We are committed to measuring and reducing our direct
and indirect emissions, and will continue to report on all
our GHG emissions as we progress towards our 2050 net
zero emissions target.
One example of where we will focus our investment is in
a recent agreement to become a research partner with
Sea Forest Pty Ltd (“Sea Forest”).
Sea Forest is a leader in the development of
Asparagopsis (a type of seaweed) as a natural feed
supplement to cows in order to actively reduce their
methane emissions. This partnership aims to unlock
new research and trials required to test the viability,
scalability and positive impact that an Asparagopsis feed
supplement could have on the environment. While the
science is still in its infancy, we see that this could be a
game-changer for the industry. We have provided our
commitment of up to $500,000 in year one for an initial
programme of research.
In addition, at our milk processing facility in Smeaton
Grange, we will be installing solar on our new roof
space, and converting the lighting in our expanded
facility to LED lights. Combined, these initiatives will save
164,000 kilograms of carbon dioxide emissions per year.
The principles of the framework address the most material
aspects of environmental management in the dairy industry:
1. Lowering GHG emissions
2. Managing water quality and efficiency
3. Managing soil quality
4. Boosting on-farm biodiversity
5. Improved nutrient (effluent) management
Our Farm Environmental Plans will be a critical foundation
for our on-farm sustainability initiatives. Consistent standards
and data will help us to identify priority areas for investment,
measure improvement, and reward positive performance.
Manufacturing
capital
Natural
capital
Intellectual
capital
Building from strength 31 30 The a2 Milk Company

SUSTAINABILITY
We are creating The a2 Impact Fund
TM

as our vehicle to fund and manage our
intended investments in pursuit of our
sustainability goals.
Protecting and improving our
environment for future generations
Enabling happy and healthy cows
Advancing wellness with scientific,
health-related research and IP
Supporting communities
Creating a workplace where our
people are passionate and thrive
The a2 Impact Fund
TM
INTRODUCING
From FY21, we will redeploy (at a minimum) the
financial contribution that was to fund our carbon
credits offsets for our indirect GHG emissions, into
environmental programs that are more tangible
in actively reducing our emissions over time and
improving our overall climate impact.
We will also invest additional funds to further support
our animal welfare, people and community programs.
Our guiding principles:
• Initiatives will need to build and maintain value
across one or more of the Six Capitals
• Impact – today or its future potential – is material
• Global framework will be adapted for local impact
• The a2 Impact Fund
TM
will be underpinned by
transparent and robust governance, and will have
oversight by our Board and Executive Committee.
By integrating funding initiatives under one umbrella
– we believe they can create a greater positive impact
overall and improve the sustainability of our business
into the future.
4. DOING BUSINESS
THE RIGHT WAY
Integrity is one of our core values – doing the right thing
is our promise to our people, consumers and strategic
partners and is critical to our long-term success.
As our company evolves, we continue to improve on our
internal processes and approach to responsible business.
Building on these processes, an area of particular focus
has been pro-active engagement across our broader
industry and value chain. Responsible sourcing and
responsible marketing continue to be priorities.
Review of our supply chain
In FY20 we undertook a detailed review of our supply
chain, to ensure that throughout our value chain we
are upholding our commitment to sustainability and
ethical business. Our review concluded with a number
of governance initiatives, including strengthened policies
and standards for our company and our suppliers and
training for our employees and farmers. Furthermore,
to strengthen our long-term commitment to sustainable
packaging, we recently became a signatory to the
Australian Packaging Covenant, committing to meet
Australia’s 2025 National Packaging Targets.
Responsible marketing
Our approach to marketing infant nutrition aligns to
the core principle that we support breastfeeding as the
primary form of infant nutrition.
We have developed a premium, high quality range
of infant nutrition products to provide parents an
alternative when breastfeeding is not an option.
Marketing of Infant Formulas (MAIF Agreement)
and Infant Nutrition Council
We are a signatory to the Marketing in Australia
of Infant Formula: Manufacturers and Importers
Agreement (MAIF Agreement). We are also a member
of the Infant Nutrition Council, which represents the
major manufacturers and marketers of infant formula
in Australia and New Zealand. All members abide by a
Code of Conduct including the MAIF Agreement and
The Infant Nutrition Council Code of Practice for the
Marketing of Infant Formula in New Zealand (INC Code
of Practice).
Intellectual
capital
Manufacturing
capital
Natural
capital
Intellectual
capital
Social
capital
5. SUPPORTING OUR
COMMUNITIES
We continue to seek to improve and increase the support we provide
the communities in which we do business – this is important to us and
linked to our purpose and values. This takes the form of funds to help
our communities to survive and thrive. In addition, we also believe
science plays an important role in enhancing the health and wellbeing
of our communities over time.
Research to assist children’s health and well-being
Cure Kids was founded in 1971 by Sir Robert (Bob) Elliott and Rotary
New Zealand, as a Child Health Research Foundation. Cure Kids is
the largest funder of child health research outside the New Zealand
government. We are proud to have been financially supporting the
world-class research of Professor Andrew Day, into digestive health
and irritable bowel diseases amongst children, over the last three
years to a total investment value of $600,000.
Supporting our rural communities in need
In the summer of 2019-20, much of Australia was devastated by
ongoing bushfires. The bushfires impacted businesses, livelihoods
and the environment, particularly in regional communities. We
supported affected communities by donating $200,000 to help
those in need; $150,000 direct to the Red Cross Disaster Relief and
Recovery fund and the balance to go towards product donations. Our
partners at Foodbank coordinated the distribution of our products to
fire-affected communities in Victoria and New South Wales.
Supporting Chinese families in the early outbreak of
COVID -19
During the period we also provided support for Chinese families
affected by the early outbreak of COVID-19. China, and Chinese
families, in particular, are at the heart of our business. We donated
a2 Milk™ dairy products with our strategic partner China State
Farm, who assisted with the dispatch of these products to front-line
medical teams and families affected by COVID-19. We also donated
RMB 5 million to the Shanghai Red Cross to support the areas
and people severely affected by the disease.
COVID-19 research support for a vaccine
We made additional contributions to help fund independent research
to find a vaccine and stop the spread of the disease. We proudly
donated $500,000 to each of The University of Queensland’s School
of Chemistry and Molecular Biosciences and the Peter Doherty
Institute for Infection and Immunity (Doherty Institute) – a joint venture
between the University of Melbourne and the Royal Melbourne
Hospital. The research teams at each of these organisations are playing
a leading role in the international effort to develop a vaccine for the
virus. As of July 2020, The University of Queensland’s COVID-19
vaccine research has progressed significantly, with the research efforts
moving out of the lab and into human trials.
OUR FOCUS AREAS
32 The a2 Milk Company Building from strength 33

Sources of risk and potential risk eventsHow we are responding
Sale of nutritional food products
We supply food products for human consumption, including complex
nutritional products for consumption by infants and children. As a result,
our business is inherently exposed to potential product quality, food safety
and/or food integrity events (including counterfeiting or tampering) that
may cause injury to consumers, disruption to business activities, and overall
damage to our brand and reputation.
We have a range of product quality and food safety systems, protocols and technologies in place to minimise risk in this area, including:
• food safety and quality management systems;
• high quality third party manufacturing partners;
• positive release protocols (comprehensive testing of product quality and protein integrity prior to the release of finished product);
• testing of distributed products in selected markets;
• employment of product innovation and technology to improve product security e.g. tamper-evident lids;
• product recall and crisis management systems; and
• consumer support systems.
High-growth business in competitive markets
Our business has experienced significant growth in recent years, driven
predominantly by the success of our liquid milk and infant formula
businesses in Australia, China and the US. Our strategic growth priorities
seek to ensure we continue to deliver long-term growth in existing and new
markets. As a result, we are inherently exposed to:
• increasing competitive intensity, which could lead to an erosion of our
market share positions in core markets; and
• potential infringements of our intellectual property rights resulting
from third-party conduct or claims against such IP, which may lead to
protracted litigation and/or erosion of our brand assets.
Our strategic growth priorities are aided by:
• significant and ongoing investment in brand building activities globally;
• new and unique product offerings in selected markets;
• continued investment in developing and further broadening our trademark and patent portfolio including building exclusivity in
trademarks in existing and future markets and expansion of the company’s suite of patent families;
• monitoring of third party IP applications and activity;
• monitoring infringement of our IP and taking action to protect it; and
• documenting and embedding proprietary know-how across systems and processes.
Doing business in international markets
Due to our expanding footprint, our business is exposed to various risks
associated with conducting business in international markets including in
Australia, China and the US. As a result, we are inherently exposed to:
• dynamic geopolitical and regulatory environments in which government
actions influence or restrict international trade in products and/or
channels to market. This can occur through the use of tariffs, quotas,
price controls, taxes and non-tariff barriers such as product registrations,
competition and consumer laws; and
• a failure to renew the company’s China label infant formula SAMR
product registration
1
beyond its expiry in September 2022, with this
expiry date potentially being subject to a grace period.
Our efforts to effectively navigate the complexities of international markets are supported by:
• strong understanding of local standards, regulations and guidelines combined with sophisticated expert monitoring of evolving
regulatory requirements in all markets in which we operate;
• recent appointment of a Group Head of Government and Regulatory Affairs to build connections across government in all markets
and further develop strategic understanding of regulatory environments;
• close partnership with our infant formula manufacturer, Synlait Milk, which holds:
– GACC
2
registration for its Dunsandel manufacturing facility, allowing canned infant formula to be exported to China; and
– SAMR product registration for the importation of the company’s China label infant formula through to September 2022;
• strong and experienced local management teams in our core markets of Australia, China and the US; and
• a multi-product, multi-channel route to market strategy for the sale of infant formula into China.
Reliance on strategic partnerships
Our success is underpinned by key relationships with strategic partners,
including key supply and distribution partners. As a result, the business is
inherently exposed to the operations of key partners changing in a material
and adverse way, or as the result of one or more partners reducing their
support for us. This could impact our ability to maintain supply to our
customers and maintain our position in existing markets or enter new
markets.
Potential exposures are mitigated through the proactive management of partner relationships centred on shared long-term value
creation, which includes:
• a focus on developing strong, ethical, long-term commercial relationships with multiple supply chain partners in different geographic
locations;
• due diligence on supply chain partners before entering into commercial agreements;
• long-term partnership with dairy nutritionals manufacturer, Synlait Milk, governed by a formal manufacturing agreement, and
complemented by the company’s equity interest in Synlait Milk;
• a strategic relationship with Fonterra Co-operative Group Limited, providing multi-site and geographic diversification for our growing
nutritionals business;
• a strong partnership with China State Farm Holding Shanghai Co., Ltd, our exclusive import agent for our China label products;
• contracts providing access to milk pools that exceed our current usage requirements; and
• multiple milk processors contracted in Australia and US, mitigating reliance on a single processor in these regions.
SUSTAINABILITY
RISK
MANAGEMENT
Effective risk management is
an essential part of actively
growing and developing a
successful business.
Effective risk management anticipates risk and
develops strategies to manage risk events, helping
to drive informed and consistent decision making
and effective and efficient allocation of capital
and resources. Our risk management programme
assists us in identifying, assessing, monitoring
and managing our business risk, and recognising
material changes to our risk profile.
Our Risk Management Policy outlines the
programme we have implemented to ensure
appropriate risk management within our
processes, systems and culture. A copy of the
Risk Management Policy is available at www.
thea2milkcompany.com/corporate-governance.
Identifying and responding to risk
Our risk assessment process begins with the
identification of key sources of risk relevant to the
activities of our business. This approach facilitates a
comprehensive assessment of potential risk events
and allows appropriate management strategies to
be subsequently employed.
The following table identifies significant sources
of risk for the business, including key economic,
environmental and social sustainability risks with
the potential to materially impact our ability to
achieve our objectives. It also summarises how we
are responding to those risks.

1 Registration achieved by Synlait Milk and given by China’s State Administration of Market Regulation (SAMR) in September 2017 for the company’s China
label infant formula. SAMR requires registration to be held in the name of the manufacturer as opposed to the brand owner.
2 General Administration of Customs of the People’s Republic of China.

Building from strength 35 34 The a2 Milk Company

Sources of risk and potential risk eventsHow we are responding
Climate change and reliance on natural resources
As a business that is heavily dependent on agricultural inputs, we are exposed to short, medium and long-term climate and
environmental risks. These include both supply and demand side risks including:
• physical risks resulting from acute and chronic changes in climate. The productivity of our agricultural base could be impacted
by changes in temperature and rainfall resulting from climate change, generating potential supply chain disruptions or greater
volatility in input costs;
• transition risks resulting from regulatory or market pressures associated with on-farm emissions. On-farm emissions account
for 72% of The a2 Milk Company’s GHG emissions footprint. These emissions could be exposed to carbon pricing, generating
increased input costs or shifts in consumer preferences due to growing environmental concerns; and
• other environmental risks such as deforestation, animal disease outbreak, biodiversity impacts, soil and air quality impacts,
water use and animal welfare. The growth of conscious consumerism and increasing expectations around the environmental
responsibility of consumer products means that exposure to these risks could negatively affect our brand reputation. This is
particularly significant as demands for transparency around these issues increase and supply chains come under greater scrutiny.
We are responding to growing demands for transparency by integrating the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) into our strategic planning and risk management processes, with the intention of adopting the full TCFD
disclosure by the end of FY22. More detailed information regarding TCFD and scenario analysis can be found in the case study on climate
risk analysis on page 31.
We are managing our exposure to climate and environmental risks by:
• assessing baselines and short, medium and long-term targets
3
across GHG emissions, energy and water consumption, waste-to-landfill
and product packaging within our direct operations and supply chain;
• building long-term supply arrangements with partners, promoting positive environmental and social sustainability activities and
initiatives and implementing environmental plans on all farms by 2021;
• sourcing milk from diversified milk pools within New Zealand, Australia and the US and incorporating climate impacts into future
sourcing strategies;
• sourcing milk from farms in close proximity to our processing facilities wherever practicable, reducing the need to transport milk over
long distances from other areas; and
• implementing a best practice globally certified animal welfare standard across our operations, aligned to the Five Provisions and Animal
Welfare Aims.
Reliance on talent and culture
We rely on the talent of our people and the effectiveness of our culture for success. Therefore, keeping our people safe is a top
priority. The competitive nature of the job market and our positioning as a high growth business also contribute to risks associated
with managing our talent and culture:
• actual or potential harm to all workers and other persons at the workplace (including from non-compliance with applicable laws
and regulations). In addition to any harm itself, this could also result in financial penalties, drop in staff morale and productivity,
increased insurance costs and damage to our reputation;
• loss of key management personnel, in addition to the potential loss of their teams, could also have a material effect on our
operating and financial performance;
• resource constraints resulting from business growth out-pacing talent acquisition; and
• building organisational capability through the recruitment of external hires carries with it the potential for transition risk.
We are committed to the safety of our people and have established systems and processes to identify, control, report, investigate and
monitor health and safety risks across the business.
Believing that well-managed, engaged and effective teams create long-term business success, our efforts are aided by:
• a rigorous recruitment and selection process, followed by thorough induction and onboarding;
• an effective employee retention strategy combining both short and long-term financial incentives with career development
opportunities to motivate and engage key personnel;
• strong cultural values – bold passion, pioneering spirit, humility, respect and integrity – which assist both the company and employees
in achieving their goals;
• increasing the depth and capability of the senior management pool to support future growth; and
• succession planning to ensure continuity of knowledge, skills and experience.
Rapid change in information technology (IT)
The rapid change in IT provides both opportunities and risks. Incidents of cyber-attack and the release of data have become an
increasing threat for all companies. The cyber security and data environment is continuously evolving and, as a result, we are
inherently exposed to inadequate IT security leading to a compromise of our IT systems and potential data theft, data loss or
corruption. Such a compromise could result in economic or reputational loss.
We remain focused on further strengthening our governance, processes and technology controls to protect the integrity and privacy of
data and maintain compliance with regulatory requirements.
We continue to build our cyber resourcing capability and improve our cyber security systems and protections, including restricting access
to sensitive data, conducting regionally-specific cyber security audits and maintaining cyber security insurance.
We have also identified the need to complete third party cyber risk reviews and are currently agreeing scope and timing with
identified parties.
We are implementing our new enterprise resource planning (ERP) software with a view to not only improve our overall IT infrastructure
but also reducing the number of different applications in use across the organisation, allowing the protection protocols in place to be
streamlined.
Ongoing impacts from the COVID-19 global pandemic
The COVID-19 pandemic has caused unprecedented social and economic disruption globally. Until the pandemic is contained, the
business remains exposed to several possible COVID-19 related consequences, including:
• a weakened global economy – characterised by elevated levels of unemployment and reduced disposable income – resulting in
disruptions to consumer buying patterns and/or softening consumer demands in key markets;
• a possible unwinding of FY20 consumer pantry stocking for infant formula, which had some positive impact on FY20 sales;
• disruptions to sales channels – including the effect of ongoing travel restrictions on reseller channels between Australia and
China; the impact of weakened economic conditions on the viability of some off-line distribution networks within China; and
trading restrictions for retailers, including limitations on product purchasing and in-store foot traffic, and access restrictions for
merchandising teams; and
• a second wave of infection through key markets of Australia, New Zealand, China and the US, which could result in disruptions
to supply chains, retail trading conditions, consumer buying patterns and sales growth in these markets.
The Company has to date demonstrated resilience in the face of the COVID-19 pandemic, supported by a strong underlying demand for
the company’s products, and the focus of senior management on key initiatives, including:
• the adoption of robust health and safety protocols in line with all relevant government requirements, including across our Smeaton
Grange liquid milk processing facility;
• flexible working arrangements for staff combined with enhanced remote working technologies;
• continued close cooperation with Synlait Milk to maintain continuity of infant milk formula supply;
• active management of supply chain routes to market (including use of air freight where appropriate);
• increased levels of safety stock to mitigate future supply chain disruption;
• agile approach to the execution of marketing programmes, adjusting where appropriate to reflect shifts in consumer buying patterns
and channel dynamics; and
• contributions to support COVID-19 vaccine research.
SUSTAINABILITY
RISK
MANAGEMENT
3 The business is currently in the process of determining targets to manage climate-related risks and opportunities, in line with the recommendations of the
TCFD framework.

Building from strength 37 36 The a2 Milk Company

CORPORATE
GOVERNANCE
CONTENTS
Our directors 40
Our executive committee 42
Governance 44
Remuneration 49
Building from strength 39 38 The a2 Milk Company

David Hearn
Chair and
Non-Executive Director
Master of Arts
Director since February 2014
Julia Hoare
Deputy Chair and Independent,
Non-Executive Director
Bachelor of Commerce, FCA,
Chartered Member of the Institute
of Directors (NZ)
Director since November 2013
Jesse Wu
Independent,
Non-Executive Director
Master of Business Administration
(Duke)
Director since May 2017
Pip Greenwood
Independent,
Non-Executive Director
Bachelor of Laws
(LL.B.), University of Canterbury (NZ)
Director since July 2019
Warwick Every-Burns
Independent,
Non-Executive Director
Advanced Management Program
(Harvard)
Director since August 2016
David has been a director of the
company since 5 February 2014, and
Chair since 30 March 2015. He is also a
member of the Nomination Committee.
David has extensive experience and skills
in executive management, sales and
marketing and strategy development in
fast moving consumer goods (FMCG)
in international markets. He has held
senior executive roles including Chief
Executive Officer or Managing Director
roles for FMCG companies including
Goodman Fielder Limited, United
Biscuits Europe and Asia, Pepsico Foods
Europe,and Del Monte UK.
Latterly, David was the CEO for the
marketing services group, Cordiant
Communications Group. In addition to
his a2MC Company directorship, David
is also a director of SafeStore Holdings
PLC, Robin Partington & Partners
Limited, Committed Capital Limited and
his own company Lovat Partners Limited
David resides in the United Kingdom.
Julia has been a director of the company
since 19 November 2013, and Deputy
Chair since 30 March 2015. She
is also Chair of the Audit and Risk
Management Committee and a member
of the Nomination Committee.
Prior to joining the Board, Julia had
extensive chartered accounting
experience in Australia, the UK and
NZ and was a partner with PwC NZ
for 20 years. She is also a member of
the New Zealand External Reporting
Advisory Panel, a body designed to
support the standard setting process
of the New Zealand External Reporting
Board, and is the Vice President of the
New Zealand Institute of Directors.
In addition to her company directorship,
Julia is Deputy Chair of Watercare
Services Limited, and a director of
Port of Tauranga Limited, Auckland
International Airport Limited and
Meridian Energy Limited.
She is also a member of The New
Zealand Sustainable Finance Forum
Leadership Group, the aim of which is
to identify genuine, practical ways to
ensure the financial system is supporting
and not hindering the economic
transition required for New Zealand to
meet its international commitments
under the Paris Agreement Sustainable
Development Goals.
Julia resides in New Zealand.
Jesse has been a director of the
company since 16 May 2017. He is
also a member of the Audit and Risk
Management Committee and the
Remuneration Committee.
Jesse began his career with Procter &
Gamble and PepsiCo, before joining
Johnson & Johnson’s consumer
business. He was appointed
International Vice President, Asia/Pacific
in 2003 and company Group Chair,
Global Markets in 2008. Prior to his last
executive position, he was Worldwide
Chair of the Johnson & Johnson
Consumer Group (which had annual
revenues of US$14 billion).
Jesse serves on the Board of Visitors
at Duke University’s Fuqua School of
Business. He is a two-time recipient of
the Magnolia Award from the Shanghai
Municipal Government, given in
recognition of his contributions to
Shanghai’s economic development.
In addition, Jesse serves on the board
of Aptar Group Inc, a global leader in
dispensing systems.
Over his career Jesse has managed
significant scale and complexity in the
areas of manufacturing, distribution,
sales and marketing, in both developed
and emerging markets.
Jesse resides in China.
Pip has been a director of the company
from 1 July 2019. She is also Chair
of the Nomination Committee and
a member of the Remuneration
Committee.
Currently Pip is also a director on the
boards of Westpac New Zealand,
Spark New Zealand and Fisher & Paykel
Healthcare. She was previously a senior
partner at law firm Russell McVeagh,
where she spent over 10 years on the
firm’s board including acting as the
firm’s board Chair and interim CEO.
Pip brings extensive commercial
and board experience to
The a2 Milk Company board. A leader
in the field of corporate law and in the
New Zealand business community, Pip
is also known for her work promoting
greater diversity in the workplace. She
is the recipient of numerous industry
awards including being named New
Zealand “Dealmaker of the Year” at
the Australasian Law Awards 2018,
an accolade she has won five times;
and she has twice been recognised
as a finalist at the Women of
Influence Awards.
Pip resides in New Zealand.
Warwick has been a director of the
company since 23 August 2016. He
is also Chair of the Remuneration
Committee and a member of the Audit
and Risk Management Committee.
Warwick has been a career Consumer
Packaged Goods (CPG) executive of
global scale. His executive roles have
included a successful career with The
Clorox Company of the USA as Senior
Vice President, International, based
in the USA and prior to that as VP
Asia Pacific. His earlier roles included
Managing Director of NationalPak
Limited (the Glad Products Company
ultimately acquired by Clorox) and a
long career with Unilever PLC where
he was based in Australia. Warwick
is a Non-Executive Director of one
of the leading international wine
companies, the ASX listed Treasury
Wine Estates Limited.
Warwick brings a combination of
international CPG Executive and non-
executive director experience in markets
of particular relevance to the company
in China, North America and Europe.
His strong skills and interest in business
development in new and emerging
markets, brand management and human
resource management are of significant
value to the company.
Warwick resides in Australia.
CORPORATE GOVERNANCE
OUR
DIRECTORS
Building from strength 41 40 The a2 Milk Company

CORPORATE GOVERNANCE
OUR EXECUTIVE
COMMITTEE
Leadership
To enhance our organisational
alignment and enable the right
ways of working to deliver on our
strategy, we recently reorganised
our most senior executive team
to form our Executive Committee
and formed a Senior Leadership
Group which comprises the senior
management of the business.
Geoffrey Babidge
Chief Executive Officer
Bachelor of Economics
Geoffrey was appointed CEO from 9
December 2019. He was previously Managing
Director and CEO of the company from
July 2010 until July 2018; he was also an
Executive Director of the Board during this
time. Geoffrey has more than 30 years’
senior management experience working in
the Australian FMCG industry. Geoffrey has
previously held senior executive roles with a
number of companies in Australia including
Freedom Foods Group Limited, Bunge
Defiance and National Foods. Prior to these
roles he was a practising chartered accountant
and partner at Price Waterhouse.
Race Strauss
Chief Financial Officer
Fellow of CPA Australia (FCPA)
Bachelor of Business (Griffith
University, QLD)
Executive MBA (INSEAD, Singapore)
Race joined the Group in January
2020. He is responsible for the finance,
legal, IT, investor relations and strategy
functions across the group. Race is an
experienced finance executive with a
strong packaged goods background
as well as relevant international
experience, particularly in China and
other Asian regions. Race spent over
20 years at Unilever where he held a
variety of senior roles including Chief
Financial Officer of Unilever Australasia
and Vice President of Finance for
South East Asia and Australasia. More
recently Race spent seven years in Chief
Financial Officer roles with the Qantas
Group, including at Jetstar and at
Qantas Airlines.
Susan Massasso
Chief Growth and Brand Officer
Bachelor of Commerce – Accounting and
Marketing (University of Sydney)
Susan has over 20 years’ experience in the
packaged goods industry. Susan is responsible for
all activities associated with brand development
and communications, including overseeing
the marketing function, internal and external
communications, government and regulatory
affairs, and new growth engines for our business
across new products, channels and markets. Susan
originally joined the Group in September 2013 as
Group Chief Marketing Officer with leadership
of marketing and brand development across all
markets. Prior to this, Susan held several senior
leadership and commercial positions across the
Campbell Arnott’s business including Asia Pacific
Regional Marketing Director, Marketing Director
Arnott’s ANZ, General Manager Campbell’s
ANZ and Marketing Director Campbell’s ANZ. In
addition, Susan spent a number of years at Unilever
where she held a variety of marketing, consumer
insight and logistics roles. Susan attended the
University of Sydney under scholarship from
accounting firm PriceWaterhouseCoopers
where she gained undergraduate employment
throughout her degree.
Lisa Burquest
Chief People, Safety and
Sustainability Officer
Bachelor of Business, Logistics,
Materials and Supply Chain
Management
Lisa joined the Group in November
2018 as Chief People Officer.
Lisa is responsible for driving our
people strategy as well as for our
safety and sustainability functions,
leveraging her previous experience
leading the development of
safety management systems and
developing and executing integrated
sustainability programmes. Lisa has
over 26 years’ experience across a
wide breadth of human resources
roles including previous senior
positions at BHP Billiton, Origin
Energy, Jetstar and most recently
Qantas Airlines. She has experience
working across a variety of
geographies, particularly Asia, and is
very comfortable in a dynamic, fast
paced company culture.
Shareef Khan
Chief Operations Officer
Bachelor of Science, CSCP, APICS
Shareef joined the Group in June
2012. He is directly responsible for all
supply chain, quality and operations
across the Group in each of our
geographies, from farmers through to
strategic processing and distribution
partners and ultimately distribution
to our customers. Shareef has
over 15 years’ senior management
experience as a qualified supply chain
professional. He is experienced across
a number of industries, including
fast moving consumer goods,
infant nutrition, office products
and construction.
Peter Nathan
Chief Executive Asia Pacific
Bachelor of Business (Marketing)
Peter joined the Group in 2008 and in 2010
took on the role of Chief Executive of the
Australia and New Zealand region. From
1 July 2017, Peter was appointed Chief
Executive of the Asia Pacific region. During
his time with the company, Peter has led the
successful relaunch of branded
a2 Milk
™
in
the Australian market from 2007 with the JV
entity, and has been instrumental in launching
and establishing the
a2 Platinum
®
infant
formula brand in Australia and more recently
China. Peter has over 28 years’ experience
working in the FMCG industry, as evidenced
by his previous senior marketing and sales
roles for Gillette and Colgate Palmolive in
Australia and Asia, as well as his involvement
with Freedom Foods Group Limited as
General Manager. Peter is responsible for our
operations across Australia, New Zealand,
Greater China and other Asia.
Li Xiao
Chief Executive Greater China
Bachelor of Arts in Business Admin,
English (Heilongjiang University)
Master, EMBA (China Europe
International Business School)
Li Xiao joined the Group in April 2019.
Li Xiao is responsible for maximising
the significant opportunities that
the Greater China market presents
for the company, delivering against
our strategy and putting the right
capabilities in place to deliver to these
future growth opportunities.
Li Xiao has substantial experience
building successful businesses in China
across a diverse range of multinational
and local fast growth consumer driven
companies including Mars, Nike, Burger
King China, and most recently CEO and
President of Wanda Kids Group and
SVP of Wanda Group.
Blake Waltrip
Chief Executive USA
BA Economics (University of California
at San Diego)
Masters of Business Administration
(Anderson Graduate School of
Management, UCLA)
Blake joined the Group in May 2016, assuming
the role of Chief Executive of the USA region.
Blake is responsible for leading our Northern
American business as well as managing our
supply chain partnerships and performance
for his region. Blake has a strong marketing
and general management skill set. Blake was
previously the CEO of Quinoa Corporation Inc,
(The Ancient Harvest Brand) based in Boulder,
Colorado. His previous roles have included
VP and CMO of the beverage division of the
Hain Celestial Group, Managing Partner of a
marketing services and strategy group, Growth
Ventures, President Americas of Lowe Alpine,
and an earlier extensive marketing career with
Nestlé USA beverage brands.
Jaron McVicar
General Counsel and
Company Secretary
Bachelor of Laws
Jaron joined the Group as General
Counsel and Company Secretary
in November 2016, having already
provided legal advice to the Group
over a number of years in his
previous role with a leading New
Zealand law firm. Prior to joining
the Group, Jaron worked in private
practice for 15 years as a corporate
and commercial lawyer, including
seven years working in London.
Jaron is a qualified solicitor in New
Zealand and England and Wales.
Jaron is responsible for the Group’s
legal function and works closely
with the Board on governance in
his capacity as Company Secretary.
Building from strength 43 42 The a2 Milk Company

GOVERNANCE FRAMEWORK
Independent
assurance
(i)
Group
Company
Secretary
(ii)
Executive
committee
(v)
CEO
(iv)
Delegation and
oversight
(iii)
Delegation and
oversight
Delegation and

oversight
Accountability
and reporting
Accountability
and reporting
Accountability
and reporting
(i) Internal audit/external audit/legal and other
professional advice.
(ii) Accountability and reporting of corporate
governance and Board related matters.
(iii) Board delegates all matters except those reserved
for the Board or its committees.
(iv) Responsible for day to day operations; leads the
executive committee.
(v) Implements strategy and business plans; directs
performance and behaviour of workforce.
Board of
Directors
Board

committees
(ARMC, REM,
NOM)
CORPORATE GOVERNANCE
Director independence
The Board Charter provides that the Board will, where practicable,
comprise a majority of independent directors.
Director independence is initially assessed upon each director’s
appointment and reviewed each year, or as required when a
new personal interest or conflict of interest is disclosed. For this
purpose, each director is required to bring an independent view
and judgement to the Board and to declare all actual or potential
conflicts of interest on an ongoing basis.
Any issue concerning a director’s ability to properly act as a
director must be discussed at a Board meeting as soon as
practicable, and a director may not participate in discussions or
resolutions pertaining to any matter in which the director has a
material personal interest.
In determining the independence of its directors, the Board
considers guidance for independence, set out in the ASX
Principles, the NZX Listing Rules and the NZX Corporate
Governance Code. Based on those rules and recommendations,
a director is considered to be independent by the Board if he or
she is a non-executive director and free of any interest, position,
association or relationship that could reasonably influence, or
could reasonably be perceived to influence, in a material respect
his or her capacity to bring an independent view to decisions
in relation to the company, or act in the best interests of the
company and represent the interests of the company’s security
holders generally.
Based on these measures, and the considerations discussed
on page 44 of this Annual Report the Board considers that
Julia Hoare, Warwick Every-Burns, Jesse Wu and Pip Greenwood
are independent directors.
Corporate Governance Statement
Our Corporate Governance Statement, which is current as at
30 June 2020 and approved by the Board, can be found at
www.thea2milkcompany.com/corporate-governance.
OUR BOARD
Role of the Board and delegation of authority
The Board is responsible for the overall governance and operations
of the company, guiding the company’s strategic direction,
monitoring risk, and overseeing the activities of management.
All issues of substance affecting the company are considered by
the Board, with advice from external advisers as required.
The role and responsibilities of the Board are set out in the
Board Charter, available on the company’s website at
www.thea2milkcompany.com/corporate-governance.
The Board delegates certain functions to its three Committees
(Audit and Risk Management Committee, Remuneration
Committee, and Nomination Committee). The diagram on the
previous page illustrates our corporate governance framework.
Audit and Risk Management Committee (ARMC)
The principal purpose of this committee is to assist the Board in
fulfilling its corporate governance and oversight responsibilities
in relation to the Group’s risk management and internal control
systems, accounting policies and practices, internal and external
audit functions and corporate reporting.
We are committed to maintaining the highest standards of
corporate governance. Our corporate governance framework has
been established to ensure that directors, officers and employees
fulfil their functions responsibly, whilst protecting and enhancing
the interests of shareholders.
We believe that good corporate governance adds to the
performance of the company, creates shareholder value and
engenders the confidence of the investment market.
Our corporate governance framework has been developed with
regard to:
• the NZX Corporate Governance Code; and
• the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations (ASX Principles)
(third Edition). The company has updated its governance
arrangements in a number of respects during the year so
that they will be consistent with the fourth edition of the
ASX Principles, which took effect for the company from
1 July 2020.
For the financial year ended 30 June 2020 our corporate
governance framework complied with the recommendations in
the NZX Corporate Governance Code and the ASX Principles (third
Edition), except where noted below.
ASX Principles
Recommendation 2.5 of the ASX Principles states that the Chair
of the Board should be an independent director and, in particular,
should not be the same person as the CEO (recommendation 2.9
of the NZX Corporate Governance Code recommends that where
the Chair of the Board is not independent, the Chair and the CEO
should be different people).
The roles of Chair and CEO are not exercised by the same
individual. From 1 July to 9 December 2019, the role of CEO
was held by the Managing Director, Jayne Hrdlicka, and from
9 December 2019, Geoffrey Babidge has held the role of CEO
(on an interim basis).
However, the Board did not consider the company’s Chair,
David Hearn, to be an independent director in this financial year
for the purposes of the ASX Principles. This is because of David’s
previous limited executive role, which ceased in December 2018,
under which the CEO previously had the capacity to call on David
from time to time to support the company’s business in Europe
and the UK. David also held executive options during this financial
year, which were exercised in full during the year.
Considering his limited executive role during the first half of last
financial year, and the options exercised by David during this
financial year, the Board considered it appropriate that David
should retain his non-independent status during this financial year.
David brings to the Board invaluable perspective on the
development of consumer products markets globally. The Board is
confident that he exercises an independent view and judgement
in his role as Chair and that the CEO has full executive control and
accountability in the organisation.
The Board considers there is an appropriate level of independent
view and judgement exercised by directors, including by Julia
Hoare as Deputy Chair, who is the lead independent director.
GOVERNANCE
Building from strength 45 44 The a2 Milk Company

Remuneration Committee (REM)
This committee assists the Board in establishing appropriate policies for remuneration across the Group and reviews the remuneration of
the Chief Executive Officer and other senior executives as the Board may determine.
Nomination Committee (NOM)
This committee assists the Board by considering nominations to the Board to provide an appropriate mix of expertise, diversity, skills and
experience on the Board, and reports to the Board on progress of the implementation of the company’s Diversity Policy.
The Nomination Committee assisted the Board by managing the recruitment process for the recently announced appointment of
David Bortolussi as Managing Director and CEO.
These Board committees are governed by charters detailing their specific functions and responsibilities. The charter for each committee is
reviewed by the Board annually. Copies of the committee charters are available at www.thea2milkcompany.com/corporate-governance.
Board size, skills and structure
During the entire reporting period, the Board comprised four independent non-executive directors and one non-executive director. In the
period 1 July to 9 December 2019 the Managing Director and CEO (executive director) was also a member of the Board. The company’s
constitution provides for a minimum of four directors and a maximum of eight, of which at least two must be New Zealand residents to
comply with the NZX Listing Rules.
The Board has developed a board skills matrix which sets out the diversity of skills and experience that it has. The matrix, set out in its
collective form reflecting the current Board composition, is as follows:
Skills and experience
Board representation
(out of five directors)
Executive leadership – experience as a senior executive in one or more substantial commercial businesses
100% (5)
Non-executive board membership – experience as a non-executive director of a number of listed or other
widely-held companies
100% (5)
Governance – experience in setting and implementing corporate governance policies, practices and standards
100% (5)
Consumer products and nutritional industries – experience as a senior executive in, or as a professional
advisor to, consumer products or nutritional industry businesses
60% (3)
E-commerce – experience as a senior executive in, or as a professional advisor to, businesses engaged in
e-commerce activities
80% (4)
Food safety – technical or managerial experience relating to food, food product development and
development and/or implementation and management of safe practices for the sourcing, production,
transport and distribution of perishable foods
40% (2)
Sustainability – experience in identifying economic, social and environmentally sustainable developments,
and setting and monitoring sustainability aspirations
60% (3)
International markets – experience as a senior executive in, or as a professional advisor to, businesses that
operate outside Australia and New Zealand, particularly those international markets in which the company
operates, and an understanding of how to succeed in different cultural, regulatory and business environments
100% (5)
Financial acumen – experience in financial accounting, taxation, external and/or internal audit and reporting
20% (1)
Risk management – experience in identifying and mitigating risk
100% (5)
Remuneration – experience in developing and/or implementing executive remuneration programmes,
including incentive-based remuneration
80% (4)
CORPORATE GOVERNANCE
GOVERNANCE
Board committees
The Board’s three standing committees facilitate and assist the Board in fulfilling its responsibilities. Other committees may be established
from time to time with specific responsibilities as delegated by the Board. The composition of the committees as at, and throughout the
financial year ended 30 June 2020, was as follows:
MembersIndependentNon-executive
Audit and Risk Management Committee
Julia Hoare (Chair)

Warwick Every-Burns

Jesse Wu

Nomination Committee
Pip Greenwood (Chair)

Julia Hoare

David Hearn

Remuneration Committee
Warwick Every-Burns (Chair)

Pip Greenwood

Jesse Wu

Building from strength 47 46 The a2 Milk Company

CORPORATE GOVERNANCE
REMUNERATION
Our success depends on the quality and contribution of our
people, with their talents enabling us to achieve our short and
long-term strategic objectives.
Our remuneration philosophy for all employees and executives
aims to:
• link rewards to the creation of sustainable value for
shareholders;
• attract, develop and retain talented employees and executives;
• initiate and execute the company’s business plans and strategy
as endorsed by the Board;
• reward the delivery of superior performance;
• have a balanced mix of short-term and long-term remuneration
components;
• be consistent with and supportive of the company’s ethical
framework and commitment to good corporate governance;
and
• ensure that remuneration arrangements are competitive, fair,
and reflect the external labour market.
Remuneration policies and practices
The Remuneration Committee is responsible for establishing the
policies and practices of the company regarding the remuneration
of directors and other senior executives of the Group and
reviewing all components of the Group’s remuneration practices
relevant to its employees. The Remuneration Committee Charter
sets out the objectives, responsibilities and authority of the
Remuneration Committee in relation to remuneration matters. The
Charter stipulates that the Committee will make recommendations
to the Board, but all decision-making authority in relation to
remuneration remains with the Board.
The Board’s policy for remunerating the CEO and other senior
executives is to provide market-based remuneration packages
comprising a blend of fixed and variable at-risk incentive-based
remuneration with clear links between individual and company
performance, and reward. The Remuneration Committee
reviews the remuneration packages of the CEO and other senior
executives at least annually.
All employees have a fixed remuneration package. Selected senior
executives and managers also have variable remuneration in the
form of a short-term incentive (STI) as part of their remuneration
package. Certain selected senior executives and managers may
also have long-term incentives (LTI) as part of their remuneration
package.
Employees, not participating in the STI or LTI plans, may receive
a bonus of up to 5% of fixed remuneration, subject to individual
performance and the company achieving its financial objectives for
the year.
Remuneration packages for senior executives are structured so
that a significant portion of remuneration is at risk but can be
earned by the achievement of superior performance. The LTI is
designed to drive sustained performance over time and to both
attract and retain the best possible talent.
An appropriate remuneration mix is determined for each position,
taking into consideration the executive’s role and level of
responsibility.
Managing executive performance
Robust processes are in place for supporting and evaluating
the performance of the CEO and other senior executives and
managers.
The Board and CEO determine and agree annual targets and
objectives for the company based on the company’s strategic plan,
supported by a comprehensive and collaborative forecasting and
budgeting process. The CEO is accountable to the Board for the
delivery of the agreed objectives.
The objectives agreed between the Board and the CEO are
discussed and cascaded to each member of the executive team,
and captured in individual performance delivery documents
and STI agreements. The CEO uses the performance delivery
documents to facilitate individual conversations with each member
of the executive team periodically throughout the performance
period. The periodic performance discussions are documented
and form the basis of the annual performance review that each
executive undertakes with the CEO, and that the CEO undertakes
with the Board, at the end of the performance period.
The outcome of the executive’s performance over the course of
the year contributes to considerations surrounding changes to
fixed remuneration and the awarding of variable remuneration
and incentives.
For the financial year ended 30 June 2020, each member of the
executive team who was an employee for the duration of the
reporting period had at least one periodic performance discussion
documented.
Remuneration for FY20
During FY19 a revised remuneration policy for the Group was
finalised; and announced in November 2019. This new framework
delivers a high performance remuneration framework with higher
at-risk components than the previous framework, with the aim of
more closely aligning remuneration with the company’s strategic
direction, as set out below.
Fixed remuneration
Employees’ fixed remuneration is based on a matrix of an
individual’s skills and experience, their individual performance and
their current level of remuneration relative to the market. Fixed
remuneration is reviewed on an annual basis with reference to
independent external surveys, and where appropriate, is adjusted
based on consideration of individual performance and market
remuneration movement. The Remuneration Committee reviews
and approves all changes to fixed remuneration.
Variable remuneration
The STI and LTI programmes provide the potential for employees
to receive payment over and above fixed remuneration. These
programmes are discretionary, appropriate to the results delivered
by the Group and the individual performance of the employee,
based on the principle of reward for performance. A significant
portion of senior executive remuneration is at risk.
GOVERNANCE
Attendance at Board and committee meetings
Director attendance at Board and Committee meetings during the year ended 30 June 2020 is set out below.
Meetings of the Board
Audit and Risk
Management Committee
Remuneration
CommitteeNomination Committee
HeldAttendedHeld AttendedHeld AttendedHeld Attended
David Hearn (Chair)1212––––1313
Julia Hoare
(Deputy Chair)
121255––1313
Jayne Hrdlicka
1

(Managing Director
and CEO)
55––––––
Warwick Every-Burns12125533––
Jesse Wu12125533––
Pip Greenwood1211––331313
Held: meetings held during the period for which the person was a director or Committee member.
1 Resigned as Managing Director & CEO on 9 December 2019
Corporate governance policies
The following policies, each of which has been prepared having regard to the ASX Principles and the NZX Corporate Governance Code,
are available on the company’s website at www.thea2milkcompany.com/corporate-governance:
• Code of Ethics;
• Continuous Disclosure Policy;
• Diversity Policy. The company’s diversity policy is discussed on page 26 of this Annual Report;
• Risk Management Policy. The company’s risk management policy is discussed on pages 34 to 37 of this Annual Report;
• Securities Trading Policy;
• Shareholder Communications Policy;
• Global Whistleblower Policy;
• Global Anti-Bribery & Anti-Corruption Policy; and
• Ethical Sourcing Policy.
The Board regularly reviews the performance and effectiveness of the company’s corporate governance policies and procedures and,
if appropriate, amends those policies and procedures or adopts new policies or procedures, to uphold the integrity of the company’s
corporate governance framework.
Building from strength 49 48 The a2 Milk Company

CORPORATE GOVERNANCE
The following table illustrates the relative percentages of fixed
remuneration and at risk STI and LTI for FY20.
FixedSTI
(at target)
LTI
(face value)
CEO29%29%42%
Executive Committee30%-34%25%-28%38%-45%
Short-Term Incentive (STI) plan
The purpose of our STI plan is to build a results-focused
culture, whilst increasing employee engagement. STI values
and performance targets are approved by the Remuneration
Committee at the start of each financial year.
The STI is paid in the form of a cash bonus to employees based
on the achievement of the Group Performance Scorecard
and adjusted by an individual performance multiplier of 0%
to 130% – calculated based on the employee’s performance
against the achievement of personal objectives (“OKRs”).
Funding of the bonus program in FY20 was established by
aggregating, for all employees, the amount of their target incentive,
as referenced against their fixed annual remuneration and adjusted
by the performance of the Group Performance Scorecard.
STI weightings
Group performance scorecardPersonal
OKRs
Financial
performance
Business
performance
CEO and Officers50%50%0-130%
Performance rights granted in FY20
As a result of the Board undertaking a review of the company’s
remuneration practices in 2019, no performance rights were
issued for FY19. With the review completed, the company
issued performance rights in respect of FY19 to the relevant LTI
plan participants during FY20. These performance rights will be
assessed against the two-year performance period from 1 July
2019 to 30 June 2021 (rather than the three year performance
period from 1 July 2018 to 1 July 2021 that would have applied
if the Performance Rights were issued at the usual time for FY19
LTI awards, being shortly following the company’s release of its
FY18 full year results). The quantum of grants is set by reference
to a fixed percentage of each participant’s FY19 fixed annual
remuneration.
While the delay of more than one year in the issue of performance
rights under the FY19 LTI plan has resulted in a performance
period of only two years, it is considered appropriate in balancing
shareholders’ interests with offering performance-based incentives
to eligible LTI participants and avoids any perception of setting
targets with the benefit of hindsight.
To accommodate the suspension of the LTI programme in FY19,
the performance rights issued during FY20 are in two tranches,
with differing performance periods and performance hurdles as set
out below, with Tranche 1 reflecting the FY19 deferral.
The performance rights vest subject to:
• Continuing employment.
• Minimum performance hurdles of both:
– A minimum diluted earnings per share (EPS) compound
annual growth rate (CAGR) increase of 15% over the
performance period (E-CAGR); and
– A minimum normalised sales CAGR increase of 15% over
the performance period (S-CAGR).
• No awards will vest if E-CAGR or S-CAGR is less than 15% over
the respective performance periods.
• 50% of the awards will vest if E-CAGR and S-CAGR of 15% is
achieved, up to a maximum of 100% of the award vesting if
S-CAGR of either 22% or more, or 25% or more is achieved,
as follows:
Performance
rights
grants:
Performance
period
EPS
hurdle
Normalised sales
hurdles
50%
vests
85%
vests
100%
vests
Tranche 12 years to
30 June 2021
15%15%20%25%
Tranche 23 years to
30 June 2022
15%15%18.5%22%
Vesting is on a straight-line basis between each band.
Diluted earnings per share are as reported in the company’s Annual
Report in respect of that financial year.
Normalised sales in respect of a financial year, are sales plus
such additional revenue or income items less such unusual and
one-off items (in each case, as may be determined by the Board
in its absolute discretion) based on relevant financial information
reported in the company’s Annual Report in respect of that
financial year.
It is currently intended that, subject to applicable law, the company
will satisfy its obligation to allocate ordinary shares upon the
vesting of performance rights granted in FY20 (as well as all future
grants of performance rights) by instructing the trustee of the
newly established a2MC Group Employee Share Trust to purchase
shares on market so as to avoid, where possible, dilutive issues of
ordinary shares.
Further details on LTI plans can be found at Note F2 to the financial
statements.
Minimum Shareholding Requirement
Executives
With effect from 1 October 2019, a Minimum Shareholding
Requirement (MSR) Policy applies to the CEO and all of the CEO’s
direct reports (collectively, Executives). From time to time we may
also identify additional employees to whom the MSR Policy will
apply.
The purpose of this MSR Policy is to strengthen the alignment
between the interests of Executives and the interests of
shareholders and encourage a focus on building long term
shareholder value.
Executives are required to acquire and hold a minimum
shareholding equivalent to 100% of their fixed annual
remuneration comprising base salary and compulsory employer
superannuation contributions (or equivalent) before any tax or
social security deductions.
Executives are expected to achieve the MSR by the end of five
annual vesting periods for LTI grants, unless they have been
the beneficiaries of earlier option plans. In the event that an
Executive has been with the company for three or more years and
participated in these earlier option plans, the Executive will comply,
and be expected to continue to comply, with the MSR once 100%
of these options have vested.
All Executives are currently expected to achieve the MSR within the
timeframe required by the policy.
REMUNERATION
Group Performance Scorecard
FY20 Group ObjectivesMetricWeighting
Group Financial PerformanceRevenue growth
Net profit after tax
50%
Business Performance50%
1. Build China organisational capability to deliver Asia Pacific sales
and strategy outcomes
Consumption market share (value)
Revenue growth – China label
20%
2. Reach meaningful scale in the USARevenue growth10%
3. Sustainable brand leadershipPrompted brand awareness – China
Prompted brand awareness – USA
10%
4. Deliver the organisation of the futurePeople engagement (survey)
Digital transformation milestones
10%
At target100%
Long-Term Incentive (LTI) plan
Participation in the LTI plan is by invitation only, at the sole and
absolute discretion of the Board. The LTI plan is designed to
reward performance in support of the achievement of our business
strategy; targeting profitable, long term revenue growth, which
requires appropriate investment consistent with creating long-term
shareholder value.
The company grants performance rights (Awards) to eligible
participants under the plan, governed by specific terms and
conditions. Each Award granted represents a right to receive
one fully paid share in the company once the Award vests and is
exercised. The number of Awards and the vesting conditions for
Awards issued under the LTI plan are determined by and at the
sole discretion of the Board. No dividends are paid on performance
rights. The Board may forfeit performance rights for fraud,
dishonesty or wilful breach of duties.
The new LTI structure operative in FY20 moves away from a single
hurdle which incentivises only earnings per share (EPS) growth as
we believed this could encourage underinvestment in the brand
and infrastructure and therefore limit future growth. The new
performance model now directly incentivises revenue growth but
also safeguards bottom line financial performance with an EPS
growth threshold.
Awards under the LTI plan will vest if the minimum EPS and
revenue growth thresholds have been met, while the quantum
of vesting will be determined by reference to revenue growth
achieved. A minimum level of EPS growth must be achieved while
also delivering strong revenue growth.
To the extent strong revenue growth is achieved that meets or
exceeds the vesting threshold but EPS growth has not met the
vesting threshold, no vesting will occur. Similarly, if the EPS growth
vesting threshold is achieved but the revenue growth vesting
threshold is not, no vesting will occur.
Building from strength 51 50 The a2 Milk Company

CORPORATE GOVERNANCE
Directors’ remuneration
Non-executive director’s remuneration is paid in the form of director’s fees. The fees paid to directors are structured to reflect the
respective responsibilities and workloads of their Board and Committee positions.
The annual aggregate non-executive directors’ remuneration pool, approved by shareholders at the company’s Annual Meeting of
Shareholders held on 20 November 2018, is capped at $1,365,000.
Directors’ fees structure $ annual
Base board fees:
Chair of the Board (refer below)165,000
Deputy Chair210,000
Non-executive director165,000
Audit and Risk Management Committee:
Chair35,000
Committee member16,500
Remuneration Committee:
Chair35,000
Committee member16,500
Nomination Committee:
Chair22,000
Committee member11,000
Prior to the company’s admission to the Official List of the ASX on 31 March 2015, 5,000,000 options over unissued ordinary shares
were issued to Lovat Partners Limited (an entity controlled by David Hearn), under the company’s LTI plan. Each option had an exercise
price of NZ$0.63. During the financial year, 3,200,000 options, that had previously vested or vested in the period, were exercised by
David in order to avoid them lapsing. The annual accounting charge to profit or loss for the options issued under the LTI plan, are
included in the schedule of non-executive directors’ remuneration as other benefits. At the time that the current level of the Chair’s fees
was set it recognised the contribution to total remuneration of this benefit at that time.
Remuneration paid to non-executive directors of the Group for the year ended 30 June 2020 was as follows:
Board feesCommittee feesTotal fees
Other
benefits
received
Total
remuneration
Audit and Risk
ManagementRemunerationNomination
$$$$$$$
Company
David Hearn (Chair)
1
165,000–––165,00017,951182,951
Julia Hoare
(Deputy Chair)
210,00035,000–11,000256,000–256,000
Pip Greenwood165,000–16,50022,000203,500–203,500
Warwick Every-Burns165,00016,50035,000–216,500–216,500
Jesse Wu165,00016,50016,500–198,000–198,000
Total870,00068,00068,00033,0001,039,00017,9511,056,951
Subsidiary
companies
William Keane
2
39,880–––39,880–39,880
Total909,88068,00068,00033,0001,078,88017,9511,096,831
1 Other benefits received include the annual non-cash accounting charge for options issued under the LTI plan of $17,951. The value of options exercised by
David Hearn during the year was $62,554,000.
2 William Keane is included as a director of The a2 Milk Company Limited (UK), he resigned as a director on 31 March 2020. No other director of a subsidiary
company was remunerated in their capacity as a director.
REMUNERATION
Remuneration of CEO – Geoffrey Babidge
Geoffrey commenced his appointment as Interim CEO on
9 December 2019. Details of the remuneration arrangements are
set out below:
Term
There is no fixed term, employment is ongoing until terminated by
either Geoffrey or the company.
Total fixed remuneration
A$1,600,000 per annum, including superannuation.
STI
A bonus in the amount of between 20% and 40% of total fixed
remuneration is payable entirely at the discretion of the Board at
the end of his tenure as CEO.
LTI
Geoffrey does not participate in the company’s LTI plans.
The remuneration paid to Geoffrey Babidge in the financial year
was as follows:
2020
A$
Fixed remuneration903,030
STI paid–
Total remuneration received903,030
STI is payable at the end of Geoffrey’s tenure, based on total fixed
remuneration paid during the period of tenure.
Geoffrey’s KPI’s have been set and his award will be calculated
taking into account the achievement of these.
Remuneration of the former CEO – Jayne Hrdlicka
Jayne was employed under an employment agreement with the
company as Managing Director and CEO from July 2018. On
9 December 2019, Jayne agreed to step down from the role, but
remained an employee of the company until 30 June 2020.
The remuneration paid to Jayne Hrdlicka for the financial year was
as follows:
2020
A$
Fixed remuneration1,466,667
Other payments2,285,787
Total remuneration received3,752,454
Fixed remuneration was reviewed by the Board and increased
from A$1,500,000 to A$1,600,000 per annum for FY20. Fixed
remuneration was paid for the period 1 July 2019 to 31 May
2020. Other payments included STI paid for FY20, statutory leave
entitlements and an additional cash payment.
The remaining tranche of 90,914 time-based rights, granted to
Jayne as a transition benefit on commencing employment with
the company in July 2018 were exercised during the period, and
subsequently sold.
All performance rights granted to Jayne under the LTI plan
(comprised of 164,312 performance rights granted in November
2019, and 245,787 performance rights granted previously) were
subsequently forfeited on the cessation of Jayne’s employment.
The STI paid to Jayne for FY19 was A$1,897,500.
Building from strength 53 52 The a2 Milk Company

Building from strength 55
CONTENTS
Directors’ approval of the financial statements 56
Independent auditor’s report 57
Consolidated statement of comprehensive income 60
Consolidated statement of changes in equity 61
Consolidated statement of financial position 62
Consolidated statement of cash flows 63
Notes to the financial statements 64
FINANCIAL
STATEMENTS
54 The a2 Milk Company Building from strength 55

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au


Independent auditor’s report to the Shareholders of The a2 Milk
Company Limited
Opinion
We have audited the financial statements of The a2 Milk Company Limited (“the Company”) and its
subsidiaries (together “the Group”) on page 60 to 101, which comprise the consolidated statement of
financial position of the Group as at 30 June 2020, and the consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
year then ended of the Group, and the notes to the consolidated financial statements including a
summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 60 to 101 present fairly, in all material
respects, the consolidated financial position of the Group as at 30 June 2020 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand
equivalents to International Financial Reporting Standards and International Financial Reporting
Standards.
This report is made solely to the Company's shareholders, as a body. Our audit has been undertaken so
that we might state to the Company's shareholders those matters we are required to state to them in an
auditor's 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 and the Company's shareholders, as a body,
for our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Ernst & Young has provided market research services in relation to brand health tracking and has also
provided sustainability reporting advisory services to the group. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business
of the Group. We have no other relationship with, or interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
DIRECTORS’ APPROVAL OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
INDEPENDENT AUDITOR’S REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The directors of The a2 Milk Company Limited are pleased to present the consolidated financial statements for The a2 Milk
Company Limited (the Company) and its subsidiaries (together the Group) for the year ended 30 June 2020.
The directors are responsible for preparing and presenting financial statements in accordance with New Zealand law and
generally accepted accounting practice, which present fairly the financial position of the Group as at 30 June 2020 and
the results of its operations and cash flows for the period ended on that date.
The directors consider the financial statements of the Group to have been prepared using accounting policies which have
been consistently applied and supported by reasonable judgments 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.
The directors consider that they have taken adequate steps to safeguard the assets of the Group, and to prevent
and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide
a reasonable assurance as to the integrity and reliability of the financial statements.
There are reasonable grounds to believe that the Company and the Group entities identified in Note E2 will be able to meet
any obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between
the Company and those Group entities pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785.
Signed on behalf of the Board by:

David Hearn Julia Hoare
Chair Deputy Chair and Chair of the
Audit & Risk Management Committee
18 August 2020
Building from strength 57 56 The a2 Milk Company
FINANCIAL STATEMENTS