1H21 Results and Interim Report

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





Results for announcement to the market
Name of issuer The a2 Milk Company Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
677,362 -15.9%
Total Revenue 677,362 -16.0%
Net profit from continuing
operations
120,043 -36.2%
Total net profit 120,043 -35.1%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the
half-year ended 31 December 2020
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.55 $1.48
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
Interim Report for the six months ended 31 December 2020
Half Year Results Commentary
Half Year Results Presentation

Authority for this announcement
Name of person

authorised
to make this announcement

Jaron McVicar

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

25/02/2021

Unaudited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M

The a2 Milk Company Limited
www.thea2milkcompany.com


25 February 2021
NZX/ASX Market Release

Fundamentals remain strong despite significant COVID-19 disruption

Result overview for the half year ended 31 December 2020 (NZ$)
1,2,3

• Total revenue of $677.4 million was down 16.0% and EBITDA of $178.5 million was down 32.2%
resulting in EBITDA margin of 26.4% (27.0% excluding Mataura Valley Milk acquisition costs)
• Challenges resulting from COVID-19 disruption experienced in the daigou/reseller channel with a flow
on impact to the cross-border e-commerce (CBEC) channel – steps taken to re-activate these channels
• Strong performance in China label infant nutrition, with revenue growth of 45.2%, an increase in
market value share to 2.4%
4
, increasing in-store velocities as well as increasing distribution to 22.0k
mother and baby stores (MBS)
• Solid performance in liquid milk in Australia with 16.3% revenue growth driven by higher levels of in-
home consumption and a record value share of 11.7%
5

• Changes in USA execution approach resulted in revenue growth of 22.3%, higher average velocities in
key stores, distribution increasing to 22.3k stores and an improvement in EBITDA
• Continued strong investment behind the brand with $67.4 million of marketing investment in the half,
building on record investment in 2H20 and supporting strong brand health metrics in key markets
• Responded to challenges by appropriately managing discretionary costs while continuing important
capability investment in people, technology and infrastructure
• Finalised binding agreements for the proposed acquisition of a 75% interest in Mataura Valley Milk
(MVM), which will provide supply diversification, further strengthen relationships with key strategic
partners in China, and offer access to manufacturing margins over time



1
All figures are in New Zealand Dollars (NZ$), unless otherwise stated
2
All comparisons are with the six months ended 31 December 2019 (1H20), unless otherwise stated
3
All figures are quoted based on all operations of the Group, without excluding discontinued operations, unless otherwise stated
4
Source: Nielsen MBS 12-month market value share (December 2020)
5
Source: Aztec 12-month market value share (December 2020)

2
Summary of Group performance

The a2 Milk Company experienced a challenging first half with revenue for the Group declining 16.0% to
$677.4 million. This was driven by performance through the daigou and cross-border e-commerce (CBEC)
channels being significantly impacted due to disruption resulting primarily from COVID-19 related issues.
This was partially offset by another period of strong growth for China label infant nutrition products, with
sales of $213.1 million, an increase of 45.2%.
Further growth in the liquid milk businesses in both Australia and the USA was achieved. Australian sales
were up 16.3% to $86.9 million. Changes in the execution approach in the USA, focusing more on
affordable premium pricing and in-store activation resulted in sales increasing 22.0%, driven by improved
in-store velocities in established stores as well as an expanded store footprint.
The Company’s gross margin percentage
6
decreased to 50.3%. This was primarily due to recognising a stock
provision of $23.3 million, higher cost of goods sold for China label infant nutrition (including lactoferrin
and tamper evident lid) and an adverse product mix shift with a higher proportion of liquid milk to infant
nutrition sales.
Historically, the gross margin percentage for infant nutrition sales between channels has been broadly
similar. However, due to different channel pricing pressures, cost of goods sold differences and foreign
exchange movements, a variance in gross margin percentages between channels has emerged. China label
infant nutrition has a lower gross margin percentage than English label but has a higher absolute gross
margin per unit in a higher cost-to-serve channel.
EBITDA margin of 26.4% was recorded, reflecting lower revenue, a stock provision and adverse mix,
although this was partially offset by the management of non-essential discretionary costs whilst continuing
to invest appropriately in brand support programmes and internal capability building. Excluding Mataura
Valley Milk (MVM) acquisition costs, EBITDA margin was 27.0%.
The Company’s balance sheet remains in a strong position with no debt and a closing cash position of
$774.6 million. This cash position was $79.5 million lower than June 2020 due to negative operating cash
flow, participating in the recent Synlait capital raising and the acquisition of the Kyvalley milk processing
facility. Operating cash flow was negative $9.2 million primarily due to an increase in inventory and a
decrease in accounts payable.
Inventory at the end of the period was $198.6 million, $51.2 million higher than at the end of FY20. The
higher level of inventory was a consequence of managing the uncertainties and complexities of COVID-19
impacting supply chains. However, due to recent challenges in the daigou and CBEC channels, the running
down of this inventory has been slower than expected. As a consequence, a stock provision of $23.3 million
was booked in the half. A return to more normalised stock levels is anticipated in 2H21.
A portion of the Company’s cash balance will be utilised to fund the proposed acquisition of MVM and
ultimately the associated additional investment in a blending and canning facility, although this plan has yet
to be fully developed.
In line with the Company’s capital allocation framework to target additional growth opportunities, organic
and external growth opportunities that will leverage its brand strength are being explored. The Company
aims to maintain a healthy cash balance, which will continue to be important in providing optionality in the
execution of its growth strategy as well as stability in these uncertain times.



6
Gross margin percentage is calculated as revenue less cost of goods sold, divided by revenue

3
Regional performance

1. Asia Pacific
Revenue across Asia Pacific was impacted by the challenges experienced in the daigou and CBEC
channels, partly offset by strong performance in the mother and baby store (MBS) channel and a
solid performance in liquid milk in Australia.
Despite the disruption and challenges experienced in the first half, the Company continued to
record strong brand health metrics in China.
ANZ segment revenue of $317.2 million was down 31.1%, with EBITDA of $117.5 million, down
48.5%. This primarily reflected the challenges experienced in the daigou and retail channels,
including the cost of inventory provisioning.
China and Other Asia segment revenue of $326.0 million was up 2.8%, with EBITDA of $94.4 million,
down 19.7%. This reflected the continued investment in capability as well as a lower gross margin.
A proportion of inventory provisioning was also incurred in the China and Other Asia segment.

Infant nutrition
Volume growth for the overall infant nutrition market in China was broadly flat in CY20, impacted
by pantry destocking, COVID-19 disruption and a lower birth rate.
Overall, the market is showing modest value growth driven by continued premiumisation while
local players continue to gain share against the traditional multinational brands in an increasingly
competitive environment.
Infant nutrition – China label channels
Sales in a2 至初® China label infant nutrition of $213.1 million was achieved, an increase of 45.2%
on the prior corresponding period. The Company’s 12-month rolling market value share in MBS was
2.4% at the end of December, increasing by 0.7% compared to the prior corresponding period.
Distribution also increased to 22.0k stores.
This performance is pleasing given the strategic importance and size of the channel and the
increasing competitive intensity. There will continue to be an opportunity to gain market share
given the strong resonance the brand has with consumers.
Infant nutrition – Cross-border e-commerce (CBEC)
a2 Platinum® English and other label infant nutrition sales of $103.5 million was down 35.5%.
CBEC market value as measured by Smartpath grew in the six months to December 2020. The
Company’s 12-month rolling market value share in CBEC measured by Smartpath was 22.3% at the
end of December, up from 21.7% at the end of FY20. Value share for the month of December was
19.5%.
However, the decline in revenue was due to a lower level of sales to informal social e-commerce
channels and traders which are not measured by Smartpath and the Company’s view that inventory
unwound in these channels. There was also a temporary cessation of a2 Platinum® Hong Kong label
in the period.
While our performance in the competitive “11/11” online sales event showed year-on-year growth
with higher promotional activity, sales in the period following that event were below expectations
with subdued pricing.
The important role daigous play in stimulating demand across multiple points of distribution and
the interdependence of CBEC with the daigou/reseller channel is relevant to performance in the

4
CBEC channel. With this interdependence in mind, the Company is actively rebalancing inventory in
the channel and continuing to refine its promotional approach.
Infant nutrition – ANZ retailers, daigou and resellers
Infant nutrition revenue in ANZ declined 40.5% to $209.5 million for the half. The sales decline in
the period was driven by multiple factors.
From the start of this fiscal year, this segment was impacted by pantry destocking following strong
sales in 3Q20 combined with reduced tourism from China and international student numbers as a
consequence of COVID-19 travel restrictions.
In September the Company further advised that it had also started to observe additional disruption
to the corporate daigou/reseller channel, particularly due to the prolonged Stage 4 lockdown in
Victoria, with a contraction beyond its previous expectations. These events, combined with
subdued online pricing and channel inventory unwinding, have resulted in daigou/resellers being
slower to fully re-enter the market to promote the brand. While there was some improvement in
the channel towards the end of the period, the recovery was not as strong as had previously been
expected.
The Company continues to focus on re-activating the daigou/reseller channel and is confident that
it remains an attractive and strategically important channel for distribution penetration and new
user recruitment. The Company is aiming to re-activate the channel by:
• Rebalancing inventory levels and improving traceability through the channel;
• Providing temporary support to the daigou/resellers; and
• Working with corporate daigou to drive innovation in distribution.
Given the role of this channel, including in new user recruitment in an increasingly competitive
market, some continued pressure on consumer demand is expected.

Liquid milk
The a2 Milk™ brand continues to be the only fresh milk brand ranged in all major supermarket
chains in Australia. The Company is the leading brand advertiser in the fresh milk category,
maintaining high brand awareness and loyalty metrics, benefitting the portfolio as a whole.
The Company’s most mature product, Australian fresh milk, continued to grow, achieving revenue
growth of 16.3% and totalling $86.9 million. The Company also achieved its highest market value
share of 11.7%, primarily driven by increased levels of in-home consumption. To the extent COVID-
19 restrictions ease and out-of-home consumption rebuilds, it is unlikely that these trends will
continue.
Liquid milk sales in China grew 107% to $3.7 million.
Other nutritional products
The most significant proportion of the Company’s other nutritional products segment remains
a2 Milk™ whole milk and skim milk powders, available in ANZ and China.
The disruption experienced in the daigou/reseller channel impacted all products in this segment
with revenue declining 36.2% to $26.5 million.
As with infant nutrition products, the Company continues to focus on re-activating the
daigou/reseller channel and there is further growth potential across new channels, particularly in
offline China retail channels.

5

2. North America

USA
USA revenue increased 22.3% to $34.2 million. An improved EBITDA result was also delivered, with
a significantly reduced loss of $11.6 million, representing an $18.4 million improvement on the
prior corresponding period.
The impact of COVID-19 in the USA market overall has been significant. From 2020 the Company
observed that consumers were becoming more value conscious given economic uncertainties and
retailers were prioritising conventional and private label brands. Consequently, for 1H21 a
significant portion of marketing investment was redirected towards account specific activity to
position pricing at a more affordable premium level aimed at increasing shelf presence as well as
investing in additional in-store activation to further build velocity.
This approach has driven continued growth in volume and gross revenue. The plan had anticipated
net revenue to be broadly consistent with the prior corresponding period. However, net revenue
benefitted from lower than planned trade spend and better than expected store representation.
Average velocities have grown within key accounts and distribution grew to 22.3k stores, from
20.3k stores at the end of June 2020. Brand health continues to improve with brand awareness,
conversion and loyalty in the premium segment all growing during the period.
The Company is expecting, however, net revenue in the second half to be lower than the first half
as it further increases trade spend.
The USA is an important market, and the Company continues to evaluate product and distribution
opportunities to significantly increase the scale and profitability of the business.
Canada
In March, the Company entered into an exclusive licensing agreement with Agrifoods International
Cooperative Ltd (“Agrifoods”) for the production, distribution, sales and marketing of liquid milk
under the a2 Milk™ brand in the Canadian market. Products were first launched in July 2020,
initially focusing on Western Canada with subsequent distribution expansion.

The Company continues to work closely with Agrifoods, providing access to intellectual property
and marketing assets as well as proprietary systems and know-how relating to local milk sourcing
and processing.

6
Proposed acquisition of Mataura Valley Milk
In December 2020, the Company announced that the terms for the acquisition of a 75% interest in Mataura
Valley Milk (MVM), a dairy nutrition business located in Southland, New Zealand, were agreed.
The proposed acquisition will provide the opportunity to participate in nutritional products manufacturing,
supplier and geographic diversification, and strengthen relationships with key strategic partners in China.
Over time, the proposed acquisition will offer access to manufacturing margins and the ability to provide
more flexibility for product supply. This includes the potential to pursue an additional China label
registration and additional innovation opportunities.
During a transitional period, MVM will operate as a manufacturer of commodity powders and some base
powders for nutritional products, prior to manufacturing predominantly consumer packaged nutritional
products for a2MC.
The Company previously announced that during this transitional period (FY22-24) the business will operate
at approximately EBITDA break even, with the business returning a positive EBITDA from FY25. However,
due to revised volume assumptions, the Company now expects an EBITDA loss of up to $10 million per
annum during the transition period and still expects EBITDA to be positive from FY25. The Company is
exploring business development opportunities to improve the financial performance during this period.
Prior to any further investment in a blending and canning facility and associated infrastructure, it is
expected that depreciation and amortisation during the transitional period will be approximately $15
million, subject to finalisation of acquisition accounting.
The proposed transaction is subject to approval of the New Zealand Overseas Investment Office, with
completion expected around the end of May 2021.
Positive research findings in clinical trial
During the period, research findings from a clinical trial conducted by Purdue University, Indiana USA,
which involved 33 American adults with lactose maldigestion, were published.
The findings indicate that some people who suffer stomach discomfort after drinking conventional milk
may have significantly reduced symptoms if they consume milk that contains only the A2 beta casein
protein type and is A1 protein free.
This is the first study that has ever been conducted in the USA where the scientists examined varying levels
of A2 protein in the milk that was given to participants. It reported a significant difference between milk
containing 100% A2 protein (and no A1 protein) compared to conventional milk with lower levels of A2
protein.
The study was co-funded by the Company and published in the Swiss-based Nutrition Journal
7
.


7
“Milk Containing A2 β-Casein ONLY, as a Single Meal, Causes Fewer Symptoms of Lactose Intolerance than Milk Containing A1 and A2 β-Caseins in Subjects with
Lactose Maldigestion and Intolerance: A Randomized, Double-Blind, Crossover Trial”, Monica Ramakrishnan, Tracy K Eaton, Omer M Sermet, Dennis A Savaiano,
https://www.mdpi.com/2072-6643/12/12/3855.

7
Progress in sustainability
In FY20, the Company identified a number of focus areas to enhance its efforts to become a more
sustainable business for the future.
The a2 Impact Fund™ was established in 1H21 as a vehicle for the Company to fund and manage
investments in pursuit of its sustainability and decarbonisation goals.
The Company is committed to investing in tangible climate-related programmes that will create a positive
impact on the planet. During the period this included installing solar panels at the Company’s milk
processing facility at Smeaton Grange and establishing a relationship with Sea Forest, a leader in the
development of Asparagopsis (a type of seaweed) with the potential to reduce the methane produced by
cows. Additional initiatives are under consideration with further updates to be provided later in the year.
The Company made additional progress in other focus areas during the period including enhancing its
approach to animal welfare and its farm environmental plans.
Board and management
Notwithstanding some recent management changes, the Company has a strong team in place. Significant
investment has been made in developing and enhancing capabilities in the business in recent times. This
includes important investments to develop the Company’s leaders as well as expanding teams in critical
areas to support executing the strategy.
With all the challenges and uncertainties of the past year, the Company has been fortunate to be led by
Geoff Babidge. Geoff has made a significant contribution since he stepped back into the business and is
supporting the business to ensure a smooth leadership transition.
Lisa Burquest, Chief People, Safety and Sustainability Officer, left the business in January having made a
valuable contribution to the Company during her tenure. Chief Growth and Brand Officer, Susan Massasso,
will also be stepping down from her role in April to pursue new opportunities in the next stage of her
career. She too has made a significant contribution over many years and has agreed to maintain a future
advisory relationship with the Company.
The Board is also undergoing a period of renewal. In November 2020, it was announced that Jesse Wu
would retire from the Board. However, it is pleasing to confirm that Jesse has agreed to take up an on-going
role of special advisor to the Chairman following his departure. The Company is undertaking a selection
process for a new Director with an update expected shortly.

8
Outlook
FY21
Globally there continues to be unprecedented levels of uncertainty and volatility due to COVID-19.
The Company remains confident in the underlying fundamentals of the business and will continue to invest
behind the brand and in its capability to drive long term growth.
However, the pace of recovery in the daigou/reseller channel and in the CBEC channel has been slower
than previously anticipated and the Company now expects revenue to be at the lower end of the previous
guidance range.
A lower EBITDA margin range is now expected due to lower revenue, higher brand investment, longer
daigou/reseller support, movements in foreign currency and adverse channel mix relative to what was
anticipated in December.
Accordingly, the Company’s FY21 outlook is now as follows:
• Group revenue for FY21 in the order of $1.4 billion
• Group EBITDA margin for FY21 of 24% to 26% (excluding MVM acquisition costs)

The outlook for FY21 assumes the actions being taken to re-activate the daigou/reseller channel deliver a
significant improvement in quarter-on-quarter growth from 3Q21 to 4Q21.

9
Reconciliation of EBITDA to net profit after tax



Half Year Ended Half Year Ended

31-Dec-20 31-Dec-19

NZ$ 000's NZ$ 000's


Group EBITDA 178,523 263,229
Depreciation and amortisation (3,200) (1,769)
Group EBIT 175,323 261,460
Interest income
2,114
3,055
Interest expense
(366)
(174)
Income tax expense
(57,028) (79,415)
Net profit after tax 120,043 184,926



By order of the Board of Directors

David Bortolussi
Managing Director and 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



Rebecca Culbertson
Senior Analyst Investor Relations
M +61 400 955 295
rebecca.culbertson@a2milk.com
Media
Rick Willis
M +61 411 839 344
rick@networkfour.com.au
Media – New Zealand
Barry Akers
M +64 21 571 234
akers@senescallakers.co.nz

---

The a2 Milk Company Limited
ARBN: 158 331 965
INTERIM REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

CONTENTS
Operating and financial review 2
Financial statements 8
Directors’ declaration 8
Auditor’s review report 9
Consolidated statement
of comprehensive income 11
Consolidated statement
of changes in equity 12
Consolidated statement
of financial position 13
Consolidated statement
of cash flows 14
Notes to the interim financial
statements 15
Corporate directory 22
Interim Report 1
SUMMARY
GROUP PERFORMANCE
$67 7. 4m
Revenue 16.0%
$178.5m
EBITDA 32.2%
$120.0m
NPAT 35 .1%
16 .18c
Earnings per share
*

36.8%
26.4%
EBITDA margin
$774.6m
Cash on hand
PRODUCT SEGMENT REVENUE
$124.7m
Liquid milk 17. 8%
$526.1m
Infant nutrition 20.2%
$26.6m
Other nutrition 36.2%
REGIONAL HIGHLIGHTS
Asia PacificUSA
45.2%
China label
infant nutrition
38.9%
English label and
other labels
1
22.0%
Liquid milk sales
22.0k
China store distribution
16.3%
Australian milk sales
22.3k
Store distribution
* From continuing operations.
1 Includes Hong Kong and Korean label.

OPERATING AND
FINANCIAL REVIEW
Financial results for the half year ended 31 December 2020 (NZ$)
Summary of Group performance
The a2 Milk Company experienced a challenging first half with
revenue for the Group declining 16.0% to $677.4 million.
This was driven by performance through the daigou and
cross-border e-commerce (CBEC) channels being significantly
impacted due to disruption resulting primarily from COVID-19
related issues. This was partially offset by another period of
strong growth for China label infant nutrition products, with
sales of $213.1 million, an increase of 45.2%.
Further growth in the liquid milk businesses in both Australia
and the USA was achieved. Australian sales were up 16.3%
to $86.9 million. Changes in the execution approach in the
USA, focusing more on affordable premium pricing and in-
store activation resulted in sales increasing 22.0%, driven by
improved in-store velocities in established stores as well as an
expanded store footprint.
The Company’s gross margin percentage
1
decreased to
50.3%. This was primarily due to recognising a stock provision
of $23.3 million, higher cost of goods sold for China label
infant nutrition (including lactoferrin and tamper evident lid)
and an adverse product mix shift with a higher proportion of
liquid milk to infant nutrition sales.
Historically, the gross margin percentage for infant nutrition
sales between channels has been broadly similar. However,
due to different channel pricing pressures, cost of goods sold
differences and foreign exchange movements, a variance in
gross margin percentages between channels has emerged.
China label infant nutrition has a lower gross margin
percentage than English label but has a higher absolute gross
margin per unit in a higher cost-to-serve channel.
1 Gross margin percentage is calculated as revenue less cost of goods sold,
divided by revenue
EBITDA margin of 26.4% was recorded, reflecting lower
revenue, a stock provision and adverse mix, although this
was partially offset by the management of non-essential
discretionary costs whilst continuing to invest appropriately in
brand support programmes and internal capability building.
Excluding Mataura Valley Milk (MVM) acquisition costs,
EBITDA margin was 27.0%.
The Company’s balance sheet remains in a strong position
with no debt and a closing cash position of $774.6 million.
This cash position was $79.5 million lower than June 2020
due to negative operating cash flow, participating in the
recent Synlait capital raising and the acquisition of the Kyvalley
milk processing facility. Operating cash flow was negative
$9.2 million primarily due to an increase in inventory and a
decrease in accounts payable.
Inventory at the end of the period was $198.6 million,
$51.2 million higher than at the end of FY20. The higher
level of inventory was a consequence of managing the
uncertainties and complexities of COVID-19 impacting supply
chains. However, due to recent challenges in the daigou and
CBEC channels, the running down of this inventory has been
slower than expected. As a consequence, a stock provision
of $23.3 million was booked in the half. A return to more
normalised stock levels is anticipated in 2H21.
A portion of the Company’s cash balance will be utilised to
fund the proposed acquisition of MVM and ultimately the
associated additional investment in a blending and canning
facility, although this plan has yet to be fully developed.
In line with the Company’s capital allocation framework to
target additional growth opportunities, organic and external
growth opportunities that will leverage its brand strength
are being explored. The Company aims to maintain a healthy
cash balance, which will continue to be important in providing
optionality in the execution of its growth strategy as well as
stability in these uncertain times.

Regional performance
1. Asia Pacific
Revenue across Asia Pacific was impacted by the
challenges experienced in the daigou and CBEC channels,
partly offset by strong performance in the mother and
baby store (MBS) channel and a solid performance in
liquid milk in Australia.
Despite the disruption and challenges experienced in the
first half, the Company continued to record strong brand
health metrics in China.
ANZ segment revenue of $317.2 million was down 31.1%,
with EBITDA of $117.5 million, down 48.5%. This primarily
reflected the challenges experienced in the daigou and
retail channels, including the cost of inventory provisioning.
China and Other Asia segment revenue of $326.0 million
was up 2.8%, with EBITDA of $94.4 million, down
19.7%. This reflected the continued investment in
capability as well as a lower gross margin. A proportion of
inventory provisioning was also incurred in the China and
Other Asia segment.
Infant nutrition
Volume growth for the overall infant nutrition market
in China was broadly flat in CY20, impacted by pantry
destocking, COVID-19 disruption and a lower birth rate.
Overall, the market is showing modest value growth driven
by continued premiumisation while local players continue
to gain share against the traditional multinational brands in
an increasingly competitive environment.
Infant nutrition – China label channels
Sales in
a2 至初
®
China label infant nutrition of
$213.1 million was achieved, an increase of 45.2% on the
prior corresponding period. The Company’s 12-month
rolling market value share in MBS was 2.4% at the end
of December, increasing by 0.7% compared to the prior
corresponding period. Distribution also increased to
22.0k stores.
This performance is pleasing given the strategic importance
and size of the channel and the increasing competitive
intensity. There will continue to be an opportunity to gain
market share given the strong resonance the brand has
with consumers.
Infant nutrition – Cross-border e-commerce (CBEC)
a2 Platinum
®
English and other label infant nutrition sales of
$103.5 million was down 35.5%.
CBEC market value as measured by Smartpath grew in the six
months to December 2020. The Company’s 12-month rolling
market value share in CBEC measured by Smartpath was
22.3% at the end of December, up from 21.7% at the end of
FY20. Value share for the month of December was 19.5%.
However, the decline in revenue was due to a lower level of
sales to informal social e-commerce channels and traders
which are not measured by Smartpath and the Company’s
view that inventory unwound in these channels. There was
also a temporary cessation of a2 Platinum
®
Hong Kong label
in the period.
While our performance in the competitive “11/11” online sales
event showed year-on-year growth with higher promotional
activity, sales in the period following that event were below
expectations with subdued pricing.
The important role daigous play in stimulating demand across
multiple points of distribution and the interdependence
of CBEC with the daigou/reseller channel is relevant to
performance in the CBEC channel. With this interdependence
in mind, the Company is actively rebalancing inventory in the
channel and continuing to refine its promotional approach.
Interim Report 3 2 The a2 Milk Company Limited

OPERATING AND
FINANCIAL REVIEW
(CONTINUED)
Infant nutrition – ANZ retailers, daigou and resellers
Infant nutrition revenue in ANZ declined 40.5% to
$209.5 million for the half. The sales decline in the period
was driven by multiple factors.
From the start of this fiscal year, this segment was impacted
by pantry destocking following strong sales in 3Q20 combined
with reduced tourism from China and international student
numbers as a consequence of COVID-19 travel restrictions.
In September the Company further advised that it had also
started to observe additional disruption to the corporate
daigou/reseller channel, particularly due to the prolonged
Stage 4 lockdown in Victoria, with a contraction beyond its
previous expectations. These events, combined with subdued
online pricing and channel inventory unwinding, have resulted
in daigou/resellers being slower to fully re-enter the market
to promote the brand. While there was some improvement in
the channel towards the end of the period, the recovery was
not as strong as had previously been expected.
The Company continues to focus on re-activating the
daigou/reseller channel and is confident that it remains an
attractive and strategically important channel for distribution
penetration and new user recruitment. The Company is
aiming to re-activate the channel by:
• Rebalancing inventory levels and improving traceability
through the channel;
• Providing temporary support to the daigou/resellers; and
• Working with corporate daigou to drive innovation in
distribution.
Given the role of this channel, including in new user
recruitment in an increasingly competitive market, some
continued pressure on consumer demand is expected.
Liquid milk
The a2 Milk™ brand continues to be the only fresh milk
brand ranged in all major supermarket chains in Australia.
The Company is the leading brand advertiser in the fresh
milk category, maintaining high brand awareness and loyalty
metrics, benefitting the portfolio as a whole.
The Company’s most mature product, Australian fresh milk,
continued to grow, achieving revenue growth of 16.3% and
totalling $86.9 million. The Company also achieved its highest
market value share of 11.7%, primarily driven by increased
levels of in-home consumption. To the extent COVID-19
restrictions ease and out-of-home consumption rebuilds, it is
unlikely that these trends will continue.
Liquid milk sales in China grew 107% to $3.7 million.
Other nutritional products
The most significant proportion of the Company’s other
nutritional products segment remains a2 Milk™ whole milk
and skim milk powders, available in ANZ and China.
The disruption experienced in the daigou/reseller channel
impacted all products in this segment with revenue declining
36.2% to $26.5 million.
As with infant nutrition products, the Company continues to
focus on re-activating the daigou/reseller channel and there is
further growth potential across new channels, particularly in
offline China retail channels.
2. North America
USA
USA revenue increased 22.3% to $34.2 million. An improved
EBITDA result was also delivered, with a significantly
reduced loss of $11.6 million, representing an $18.4 million
improvement on the prior corresponding period.
The impact of COVID-19 in the USA market overall has been
significant. From 2020 the Company observed that consumers
were becoming more value conscious given economic
uncertainties and retailers were prioritising conventional and
private label brands. Consequently, for 1H21 a significant
portion of marketing investment was redirected towards
account specific activity to position pricing at a more affordable
premium level aimed at increasing shelf presence as well as
investing in additional in-store activation to further build
velocity.
This approach has driven continued growth in volume and
gross revenue. The plan had anticipated net revenue to be
broadly consistent with the prior corresponding period.
However, net revenue benefitted from lower than planned
trade spend and better than expected store representation.
Average velocities have grown within key accounts and
distribution grew to 22.3k stores, from 20.3k stores at the end
of June 2020. Brand health continues to improve with brand
awareness, conversion and loyalty in the premium segment all
growing during the period.
The Company is expecting, however, net revenue in the
second half to be lower than the first half as it further increases
trade spend.
The USA is an important market, and the Company continues
to evaluate product and distribution opportunities to
significantly increase the scale and profitability of the business.
Canada
In March, the Company entered into an exclusive licensing
agreement with Agrifoods International Cooperative Ltd
(“Agrifoods”) for the production, distribution, sales and
marketing of liquid milk under the a2 Milk™ brand in the
Canadian market. Products were first launched in July 2020,
initially focusing on Western Canada with subsequent
distribution expansion.
The Company continues to work closely with Agrifoods,
providing access to intellectual property and marketing assets as
well as proprietary systems and know-how relating to local milk
sourcing and processing.
Proposed acquisition of
Mataura Valley Milk
In December 2020, the Company announced that the terms for
the acquisition of a 75% interest in Mataura Valley Milk (MVM),
a dairy nutrition business located in Southland, New Zealand,
were agreed.
The proposed acquisition will provide the opportunity to
participate in nutritional products manufacturing, supplier and
geographic diversification, and strengthen relationships with key
strategic partners in China.
Over time, the proposed acquisition will offer access to
manufacturing margins and the ability to provide more
flexibility for product supply. This includes the potential to
pursue an additional China label registration and additional
innovation opportunities.
During a transitional period, MVM will operate as a manufacturer
of commodity powders and some base powders for nutritional
products, prior to manufacturing predominantly consumer
packaged nutritional products for a2MC.
The Company previously announced that during this transitional
period (FY22-24) the business will operate at approximately
EBITDA break even, with the business returning a positive EBITDA
from FY25. However, due to revised volume assumptions, the
Company now expects an EBITDA loss of up to $10 million per
annum during the transition period and still expects EBITDA
to be positive from FY25. The Company is exploring business
development opportunities to improve the financial performance
during this period.
Prior to any further investment in a blending and canning facility
and associated infrastructure, it is expected that depreciation and
amortisation during the transitional period will be approximately
$15 million, subject to finalisation of acquisition accounting.
The proposed transaction is subject to approval of the New
Zealand Overseas Investment Office, with completion expected
around the end of May 2021.
Positive research findings in
clinical trial
During the period, research findings from a clinical trial
conducted by Purdue University, Indiana USA, which involved
33 American adults with lactose maldigestion, were published.
The findings indicate that some people who suffer stomach
discomfort after drinking conventional milk may have
significantly reduced symptoms if they consume milk that
contains only the A2 beta casein protein type and is A1
protein free.
This is the first study that has ever been conducted in the USA
where the scientists examined varying levels of A2 protein in
the milk that was given to participants. It reported a significant
difference between milk containing 100% A2 protein (and no
A1 protein) compared to conventional milk with lower levels of
A2 protein.
The study was co-funded by the Company and published in the
Swiss-based Nutrition Journal
2
.
Progress in sustainability
In FY20, the Company identified a number of focus areas to
enhance its efforts to become a more sustainable business for
the future.
The a2 Impact Fund™ was established in 1H21 as a vehicle for
the Company to fund and manage investments in pursuit of its
sustainability and decarbonisation goals.
The Company is committed to investing in tangible climate-
related programmes that will create a positive impact on the
planet. During the period this included installing solar panels
at the Company’s milk processing facility at Smeaton Grange
and establishing a relationship with Sea Forest, a leader in the
development of Asparagopsis (a type of seaweed) with the
potential to reduce the methane produced by cows. Additional
initiatives are under consideration with further updates to be
provided later in the year.
The Company made additional progress in other focus areas
during the period including enhancing its approach to animal
welfare and its farm environmental plans.
2 “ Milk Containing A2 β-Casein ONLY, as a Single Meal, Causes Fewer
Symptoms of Lactose Intolerance than Milk Containing A1 and
A2 β-Caseins in Subjects with Lactose Maldigestion and Intolerance:
A Randomized, Double-Blind, Crossover Trial”, Monica Ramakrishnan,
Tracy K Eaton, Omer M Sermet, Dennis A Savaiano, https://www.mdpi.
com/2072-6643/12/12/3855.
Interim Report 5 4 The a2 Milk Company Limited

Board and management
Notwithstanding some recent management changes, the
Company has a strong team in place. Significant investment
has been made in developing and enhancing capabilities in the
business in recent times. This includes important investments
to develop the Company’s leaders as well as expanding teams
in critical areas to support executing the strategy.
With all the challenges and uncertainties of the past year, the
Company has been fortunate to be led by Geoff Babidge.
Geoff has made a significant contribution since he stepped
back into the business and is supporting the business to
ensure a smooth leadership transition.
Lisa Burquest, Chief People, Safety and Sustainability
Officer, left the business in January having made a valuable
contribution to the Company during her tenure. Chief Growth
and Brand Officer, Susan Massasso, will also be stepping
down from her role in April to pursue new opportunities in
the next stage of her career. She too has made a significant
contribution over many years and has agreed to maintain a
future advisory relationship with the Company.
The Board is also undergoing a period of renewal. In
November 2020, it was announced that Jesse Wu would retire
from the Board. However, it is pleasing to confirm that Jesse
has agreed to take up an on-going role of special advisor
to the Chairman following his departure. The Company is
undertaking a selection process for a new Director with an
update expected shortly.
Reconciliation of Group EBITDA
to profit for the year
Earnings before interest, tax, depreciation and amortisation
(EBITDA) is a non-GAAP measure. The Company believes that it
provides investors with a comprehensive understanding of the
underlying performance of the business.
Half year ended
31 Dec 20
$’000
Half year ended
31 Dec 19
$’000
Group EBITDA
3
178,523263,229
Depreciation and amortisation(3,200)(1,769)
EBIT175,323261,460
Interest income2,1143,055
Interest expense(366)(174)
Income tax expense( 5 7, 0 2 8 )(79,415)
Profit for the period (NPAT)120,043184,926
3 Group EBITDA includes Mataura Valley Milk acquisition costs of
$4,509,000 (2019: $nil)
OPERATING AND
FINANCIAL REVIEW
(CONTINUED)
Outlook
FY21
Globally there continues to be unprecedented levels of
uncertainty and volatility due to COVID-19.
The Company remains confident in the underlying
fundamentals of the business and will continue to invest
behind the brand and in its capability to drive long term
growth.
However, the pace of recovery in the daigou/reseller channel
and in the CBEC channel has been slower than previously
anticipated and the Company now expects revenue to be at
the lower end of the previous guidance range.
A lower EBITDA margin range is now expected due to lower
revenue, higher brand investment, longer daigou/reseller
support, movements in foreign currency and adverse channel
mix relative to what was anticipated in December.
Accordingly, the Company’s FY21 outlook is now as follows:
• Group revenue for FY21 in the order of $1.4 billion
• Group EBITDA margin for FY21 of 24% to 26% (excluding
MVM acquisition costs).
The outlook for FY21 assumes the actions being taken to
re-activate the daigou/reseller channel delivers a significant
improvement in quarter-on-quarter growth from 3Q21
to 4Q21.
Interim Report 7 6 The a2 Milk Company Limited

Directors’ declaration
for the six months ended 31 December 2020
FINANCIAL
STATEMENTS
The Directors of The a2 Milk Company Limited are pleased to present the interim report for the six months ended 31 December 2020.
The interim report is unaudited and was authorised for issue by the Directors on 24 February 2021.
Signed on behalf of the Board by:

David Hearn Julia Hoare
Chair Deputy Chair and Chair of the
Audit and Risk Management Committee
24 February 2021
Auditor’s review report
for the six months ended 31 December 2020


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




INDEPENDENT AUDITOR’S REVIEW REPORT
To the Shareholders of The a2 Milk Company Limited (“the company”) and its subsidiaries (together
“the group”)
Conclusion
We have reviewed the interim financial statements the group which comprise the statement of
financial position as at 31 December 2020, and the statement of comprehensive income, statement
of changes in equity and statement of cash flows for the period ended on that date, and a summary
of significant accounting policies and other explanatory information. Based on our review, nothing
has come to our attention that causes us to believe that the accompanying interim financial
statements of the group do not present fairly, in all material respects, the financial position of the
group as at 31 December 2020, and its financial performance and its cash flows for the year ended
on that date, in accordance with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the
Auditor’s Responsibilities for the Review of the Financial Statements section of our report. We are
independent of the group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements.
Other than in our capacity as auditor we have no relationship with, or interest in, the Company or
any of its subsidiaries. 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.
Directors’ Responsibility for the Interim Financial Statements
The Directors of the Group are responsible, on behalf of the Entity, for the preparation and fair
presentation of the interim financial statements in accordance with New Zealand Equivalent to
International Accounting Standard 34: Interim Financial Reporting and for such internal control as
the Directors determine is necessary to enable the preparation and fair presentation of the interim
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities for the Review of the Interim Financial Statements
Our responsibility is to express a conclusion on the Interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with New Zealand Equivalent to International Accounting Standard
34: Interim Financial Reporting.

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

Interim Report 9 8 The a2 Milk Company Limited

Consolidated statement of comprehensive income (unaudited)
for the six months ended 31 December 2020

Notes
31 Dec 20
$’000
31 Dec 19
$’000
Continuing operations
Sales676,546804,946
Cost of sales(336,090)(344,282)
Gross margin340,456460,664
Other revenue816374
Distribution expenses(22,572)(19, 811)
Administrative expenses (34,732)(4 4,18 9)
Marketing expenses ( 6 7, 416 )(83,861)
Other expenses (41,193)(4 8,421)
Operating profit175,359264,756
Interest income2,1143,048
Finance costs(402)(195)
Net finance income1,7122,853
Profit before tax17 7, 071267,609
Income tax expense( 5 7, 0 2 8 )(79,415)
Profit from continuing operations
120,04318 8 ,19 4
Discontinued operation
Loss from discontinued operation, net of tax4–(3,268)
Profit for the period
120,043184,926
Other comprehensive income
Items that may be reclassified to profit or loss:
Foreign currency translation loss (1,728)(973)
Items not to be reclassified to profit or loss:
Listed investment fair value loss9(65,688)(9,664)
Total comprehensive income
52,627174,289
Earnings per share
Basic (cents per share)16 .1825.15
Diluted (cents per share)16.1624.90
Earnings per share – continuing operations
Basic (cents per share)16 .1825.59
Diluted (cents per share)16.1625.34
The accompanying notes form part of these financial statements.


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




A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures. The procedures performed in a review are substantially less than those performed in an
audit conducted in accordance with International Standards on Auditing (New Zealand) and
consequently do not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion on
those interim financial statements.

Ernst & Young
Sydney
24 February 2021

Auditor’s review report
for the six months ended 31 December 2020 (continued)
Interim Report 11 10 The a2 Milk Company Limited
FINANCIAL STATEMENTS

Consolidated statement of changes in equity (unaudited)
for the six months ended 31 December 2020
Six months ended
31 December 2020
Foreign
currency
translation
reserve
$’000
Fair value
revaluation
reserve
$’000
Employee
equity
settled
payments
reserve
$’000
Treasury
shares
reserve
$’000
Total
reserves
$’000
Retained
earnings
$’000
Share
capital
$’000
Total
equity
$’000
Balance 1 July 2020(12,478)3,64041,719(10,031)22,850964,279146,9331,13 4,0 62
Profit after tax for the period–––––120,0 43–120,0 43
Foreign currency translation
differences – foreign operations(1,728)–––(1,728)––(1,728)
Listed investment
– fair value movement–(65,688)––(65,688)––(65,688)
Total comprehensive income
for the period(1,728)(65,688)––( 6 7, 416 )120,0 43–52,627
Transactions with owners in their
capacity as owners:
Issue of ordinary shares––––––159159
Share issue costs––––––(15)(15)
Treasury shares transferred––(1,710)1,710––––
Options exercised––––––1,5121,512
Share-based payments––(927)–(927)––(927)
Income tax––(693)–(693)––(693)
Total transactions with owners––(3,330)1,710(1,620)–1,65636
Balance 31 December 2020(14,206)(62,048)38,389(8,321)(4 6,18 6)1,084,322148,5891,18 6,725
Six months ended
31 December 2019
Foreign
currency
translation
reserve
$’000
Fair value
revaluation
reserve
$’000
Employee
equity
settled
payments
reserve
$’000
Total
reserves
$’000
Retained
earnings
$’000
Share
capital
$’000
Total
equity
$’000
Balance 1 July 2019(15,341)59,72320,5356 4,917578,44214 4,4957 8 7, 8 5 4
Profit after tax for the period––––184,926–184,926
Foreign currency translation
differences – foreign operations(973)––(973)––(973)
Listed investment
– fair value movement–(9,664)–(9,664)––(9,664)
Total comprehensive income
for the period(973)(9,664)–(10,637)184,926–174,289
Transactions with owners in their
capacity as owners:
Issue of ordinary shares–––––525525
Share issue costs–––––(32)(32)
Share-based payments––2,4042,404––2,404
Income tax––9,5469,546––9,546
Total transactions with owners––11,9 5 011,9 5 0–49312,4 43
Balance 31 December 2019(16,314)50,05932,48566,230763,36814 4,988974,586
The accompanying notes form part of these financial statements.
Consolidated statement of financial position (unaudited)
as at 31 December 2020
Notes
31 Dec 20
$’000
30 Jun 20
$’000
Assets
Current assets
Cash and short-term deposits 774,6 4385 4,178
Trade and other receivables 64,30570,700
Prepayments45,42456,336
Inventories7198,558147, 3 32
Income tax receivable6,271–
Total current assets1,089,2011,128 , 5 4 6
Non-current assets
Property, plant and equipment 17, 0 8114,206
Right-of-use assets16,52616,14 4
Investment property816,352–
Intangible assets17,22313,6 4 0
Other financial assets9226,734252,580
Deferred tax assets16,65728,201
Total non-current assets310,573324,771
Total assets1,399,7741,453,317
Liabilities
Current liabilities
Trade and other payables191,808281,919
Customer contract liabilities3,3193,773
Lease liabilities3,5203,407
Income tax payable–16,328
Total current liabilities198,647305,427
Non-current liabilities
Employee entitlements450392
Lease liabilities13,95213,436
Total non-current liabilities14,40213,828
Total liabilities213,049319,255
Net assets1,18 6,7251,13 4 ,0 62
Equity attributable to owners of the Company
Share capital 6148,589146,933
Retained earnings 1,084,322964,279
Reserves (4 6,18 6)22,850
Total equity1,18 6,7251,13 4 ,0 62
The accompanying notes form part of these financial statements.
Interim Report 13 12 The a2 Milk Company Limited
FINANCIAL STATEMENTS

Consolidated statement of cash flows (unaudited)
for the six months ended 31 December 2020
Notes
31 Dec 20
$’000
31 Dec 19
$’000
Cash flows from operating activities
Receipts from customers684,581810,788
Payments to suppliers and employees( 6 27, 4 61)(5 43,169)
Interest received2,1143,055
Interest paid(337)(174)
Taxes paid(68,070)(109,945)
Net cash (outflow)/inflow from operating activities 10(9,173)160,555
Cash flows from investing activities
Payments for property, plant and equipment(4,273)(1,655)
Payment for investment property8(16,352)–
Payments for intangible assets(3,674)(216)
Payment for listed investment9(39,8 41)–
Net cash outflow from investing activities(6 4 ,14 0)(1,871)
Cash flows from financing activities
Payments of lease principal(1,627)(677)
Proceeds from issue of equity shares61,656493
Net cash inflow/(outflow) from financing activities29(184)
Net (decrease)/increase in cash and short-term deposits(73,284)158,50 0
Cash and short-term deposits at the beginning of the period85 4,178464,805
Effect of exchange rate changes on cash(6,251)(4,885)
Cash and short-term deposits at the end of the period774,643618,420
The accompanying notes form part of these financial statements.
Notes to the interim financial statements
for the six months ended 31 December 2020
1. Basis of preparation
The a2 Milk Company Limited (the Company and, together with its
subsidiaries, the Group) is a for-profit entity incorporated and
domiciled in New Zealand.
The Company is registered in New Zealand under the
Companies
Ac t 1993
, and is an FMC reporting entity under the Financial
Markets Conduct Act 2013. The Company is also registered as a
foreign company in Australia under the Corporations Act 2001
(Cth, Australia). The shares of The a2 Milk Company Limited are
publicly traded on the New Zealand Stock Exchange (NZX), the
Australian Securities Exchange (ASX) and Chi-X Australia (Chi-X).
The financial report is presented in New Zealand dollars, and all
values are rounded to the nearest thousand ($’000), unless
otherwise indicated.
The principal activity of the Company is the sale of branded
products in targeted markets made with milk from cows that
produce milk naturally containing only the A2 protein type.
These consolidated financial statements were authorised for
issue by the Directors on 24 February 2021.
Statement of compliance
These interim financial statements have not been audited.
The interim financial statements have been prepared in accordance
with Generally Accepted Accounting Practice in New Zealand,
comply with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting, and have been the subject of a review
by the auditors.
This interim report should be read in conjunction with the Group’s
annual report for the year ended 30 June 2020, available at
www.thea2milkcompany.com/investor-centre/results.
The same accounting policies and methods of computation are
followed in this interim report as were applied in the preparation of
the Group’s financial statements for the year ended 30 June 2020.
Certain comparative amounts have been restated to conform with
the current period’s presentation.
Changes in significant accounting policies
The Group has applied all of the new and revised Standards and
Interpretations issued by the New Zealand External Reporting Board
that are relevant to the Group’s operations and effective for the
current accounting period. Their application has not had any
material impact on the Group’s assets, profits or earnings per
share for the half-year ended 31 December 2020.
New standards and interpretations not yet adopted
There are no new standards and interpretations that are issued,
but not yet effective as at 31 December 2020, that are expected
to have a material impact on the Group in current or future
reporting periods.
2. Operating segments
The Group’s key performance measures are segment revenue and
segment results before interest, tax, depreciation and amortisation
(Segment EBITDA, a non-GAAP measure). Further information and
analysis of performance can be found in the Operating and financial
review, which forms part of this interim report.
For management purposes, the Group is organised into business
units based on geographical location along with a corporate
function, and in the current financial year has three reportable
operating segments as follows:
• The Australia and New Zealand segment receives external
revenue from infant nutrition, milk and other dairy products,
along with royalty, licence fee and rental income.
• The China and Other Asia segment receives external revenue
from infant nutrition, milk and other dairy products.
• The USA segment receives external revenue from milk sales
and licence fees.
In August 2019, the Board announced its decision to withdraw
from fresh milk operations in the UK (previously reported as the
UK segment), with all the UK fresh milk trading operations ceasing
in the period to 31 December 2019. Comparative information for
the six months to 31 December 2019 includes the UK segment
as a discontinued operation (refer to Note 4).
Management monitors the operating results of its business units
separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance
is assessed on segment EBITDA and is measured in conformity with
the accounting policies adopted for preparing and presenting the
financial statements of the Group.
Interim Report 15 14 The a2 Milk Company Limited
FINANCIAL STATEMENTS

Notes to the interim financial statements
for the six months ended 31 December 2020 (continued)
2. Operating segments (continued)
Continuing operations
Six months to 31 December 2020
Australia and
New Zealand
$’000
China and
Other Asia
$’000
USA
$’000
Total
$’000
Consolidated sales316,459325,9853 4,102676,546
Other revenue 734–82816
Reportable segment revenue317,193325,9853 4 ,18 4677, 362
Reportable segment results
(Segment EBITDA)117, 45694,355(11,610)200,201
Corporate EBITDA(21,678)
Group EBITDA
1
178,523
Reconciliation to consolidated statement of comprehensive income:
Interest income 2,114
Interest expense(366)
Depreciation and amortisation(3,200)
Income tax expense( 5 7, 0 2 8 )
Consolidated profit after tax120,0 43
Continuing operations
Discontinued
operation
UK
$’000Six months to 31 December 2019
Australia and
New Zealand
$’000
China and
Other Asia
$’000
USA
$’000
Total
$’000
Total
$’000
Consolidated sales459,851317,14 027, 9 55804,9461,397806,343
Other revenue 35420–374–374
Reportable segment revenue460,205317,16 027, 9 55805,3201,39780 6,717
Reportable segment results
(Segment EBITDA)2 27, 9 4 3117, 470(30,006)315,4 07(3,239)312,16 8
Corporate EBITDA(48,939)–(48,939)
Group EBITDA266,468(3,239)263,229
Reconciliation to consolidated statement of comprehensive income:
Interest income 3,055
Interest expense(174)
Depreciation and amortisation(1,769)
Income tax expense(79,415)
Consolidated profit after tax184,926
1 Group earnings before interest, tax, depreciation and amortisation (Group EBITDA) is a non-GAAP measure. 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 consolidated profit for the period is
shown on page 7.
Notes to the interim financial statements
for the six months ended 31 December 2020 (continued)
3. Revenue
Disaggregation of revenue
In the following table, revenue is disaggregated by geographical location (reportable segments) and major product types.
Continuing operations
Six months to 31 December 2020
Australia and
New Zealand
$’000
China and
Other Asia
$’000
USA
$’000
Total
$’000
Infant nutrition:
China label–213,071–213,071
English and other labels
1
209,539103,506–313,0 45
Liquid milk86,8743,6833 4,102124,659
Other20,7805,7258226,587
317,193325,9853 4,18 4677,362
Continuing operations
Discontinued
operation
UK
$’000Six months to 31 December 2019
Australia and
New Zealand
$’000
China and
Other Asia
$’000
USA
$’000
Total
$’000
Total
$’000
Infant nutrition:
China label–146,733–146,733–146,733
English and other labels
1
352,036160,469–512,505–512,505
Liquid milk74,6821,77827, 9 5510 4,4151,397105,812
Other33,4878 ,18 0–41,667–41,667
460,205317,16 027, 9 55805,3201,39780 6,717
1 Revenue is allocated based on management responsibility and usually reflects the geographical location of the Group’s wholesale customers. It is understood that
a significant portion of the infant nutrition sales to customers in the Australia and New Zealand segment are ultimately consumed in China.
Interim Report 17 16 The a2 Milk Company Limited
FINANCIAL STATEMENTS

Notes to the interim financial statements
for the six months ended 31 December 2020 (continued)
4. Results of discontinued operation
In August 2019, the Board announced its decision to withdraw from fresh milk operations in the UK (reported as the UK segment) to focus
instead on strengthening the Group’s position in core regions, which offer more significant scale potential and a platform for further new
product development.
All the UK fresh milk trading operations ceased in the period to 31 December 2019.
31 Dec 19
$’000
Results
Revenue1,397
Expenses(4,670)
Results from operating activities(3,273)
Net finance income5
Income tax–
Results from operating activities, net of tax(3,268)
Earnings per share
Basic and diluted (cents per share)(0.44)
Cash flow
Operating(2,824)
Net cash outflow for the period(2,824)
5. Expenses
31 Dec 20
$’000
31 Dec 19
$’000
Profit before income tax includes the following significant items:
Salary and wage costs28,58732,447
Equity-settled share-based payments (927)2,404
Professional service fees3,26719,14 0
Insurance9,9055,350
Depreciation and amortisation3,2001,733
Net foreign exchange loss5,6004,600
Mataura Valley Milk Limited acquisition costs (refer to Note 11)4,509–
Carbon credits and emissions reduction initiatives
1
9434,576
1 The value of offsets incurred in the prior period includes credits purchased to offset emissions for the year ended 30 June 2019, and amounts accrued for the
six months to 31 December 2019. From FY21, carbon credits will be purchased to offset direct emissions only, with the remaining annual commitment used to
progress initiatives targeting the long-term decarbonisation of the Group’s supply chain.
Notes to the interim financial statements
for the six months ended 31 December 2020 (continued)
6. Share capital
Movements in contributed equity:
Number of
shares
Share capital
$’000
Fully paid ordinary shares:
Balance 30 June 2020739, 8 3 0,151146,933
Movements in the period:
Exercise of options2,400,0001,512
Gift shares7,14 4–
Vesting of time-based rights38,820–
Vesting of performance rights320,000–
Share match programme10,822159
Share issue costs–(15)
2,776,7861,656
Balance 31 December 2020742,606,937148,589
Treasury Shares
As at 31 December 2020, the trustee of the a2MC Group Employee Share Trust held 639,589 of the Company’s shares (30 June 2020:
743,676 shares) purchased on market and available solely to participants in Group employee share plans.
7. Inventories
31 Dec 20
$’000
30 Jun 20
$’000
Raw materials 18 ,11910,306
Finished goods 13 7, 91968,457
Goods in transit42,52068,569
Total inventories at the lower of cost and net realisable value198,558147, 3 32
The higher level of inventory is a consequence of managing the uncertainties and complexities of COVID-19 impacting supply chains.
However, due to the recent challenges in the daigou and CBEC channels, the running down of this inventory has been slower
than expected.
During the period $23.3 million (2019: $nil) was recognised as an expense in cost of sales for inventories written down to net realisable value.
8. Investment property
In September 2020 the Group acquired the manufacturing facilities of the Kyvalley Dairy Group (Kyvalley), the Group’s long-term fresh milk
supplier in Victoria. Kyvalley will continue to operate the facility under a long-term operating lease and a long-term supply agreement.
The investment property acquired, at a total cost of $16,352,000, consists of land, buildings and integral plant and equipment subject to the
lease and transaction costs.
Under the agreement the Group will also undertake a future expansion and upgrade of the facility, subsidised by increased rent.
Recognition and measurement
Investment property is held primarily to earn rental income and capital appreciation. It is measured initially at cost, including transaction
costs such as transfer taxes and professional fees for legal services. Subsequent to initial recognition, the Group has elected to measure
investment property using the cost model (carried at historical cost less accumulated depreciation and impairment).
Rental income arising from operating leases on investment property is accounted for on a straight-line basis over the lease term, and is
included in other revenue in the Statement of comprehensive income.
Interim Report 19 18 The a2 Milk Company Limited
FINANCIAL STATEMENTS

Notes to the interim financial statements
for the six months ended 31 December 2020 (continued)
Notes to the interim financial statements
for the six months ended 31 December 2020 (continued)
9. Financial assets and liabilities
Other financial assets of $226,734,000 (30 June 2020: $252,580,000) consist of shares in Synlait Milk Limited (Synlait), a dairy processing
company listed on the New Zealand Stock Exchange and the Australian Securities Exchange.
In November 2020 the Company participated in Synlait’s institutional placement of securities, acquiring an additional 7,777,863 shares for
$39,841,000. There was no change to the Company’s total percentage holding in Synlait, which remains at 19.8% (30 June 2020: 19.8%).
This listed investment is the only financial instrument carried by the Group at fair value and is classified at fair value through other
comprehensive income; valued using Level 1 valuation inputs: quoted prices (unadjusted) in active markets for identical assets or liabilities.
A fair value loss of $65,688,000 (2019: loss of $9,664,000) was recognised for the period.
The carrying amounts of cash and short-term deposits, and trade and other receivables and payables, are a reasonable approximation of
their fair values.
Shareholding in Synlait Milk Limited
Shares
’000
Cost
$’000
Share price
at report
date
$
Market
value
$’000
Mark to
market
$’000
Movements in the period
Balance 30 Jun 2020
35,57524 8,9417.10252,5803,640
Placement7,7 7 839,8 41
Balance 31 Dec 202043,353288,7825.23226,734(62,048)
Fair value loss in period(65,688)
10. Reconciliation of after tax profit with net cash flows from operating activities
31 Dec 20
$’000
31 Dec 19
$’000
Net profit for the period120,0 43184,926
Adjustments for non-cash items:
Depreciation and amortisation 3,2001,769
Share-based payments(927)2,404
Net foreign exchange loss4,6874,025
Net gain on disposals(2)–
Deferred tax10,851319
Changes in working capital:
Trade and other receivables6,395(5,546)
Prepayments10,912(6,19 0)
Inventories(51,226)(9,709)
Trade and other payables(90,053)15,6 4 8
Customer contract liabilities(454)4,433
Income tax payable(16,328)(31,524)
Income tax receivable(6,271)–
Net cash (outflow)/inflow from operating activities(9,173)160,555
11. Mataura Valley Milk acquisition
In December 2020 the Company announced that binding
agreements had been entered into to acquire a 75% controlling
interest in Mataura Valley Milk Limited (MVM), a dairy nutrition
business, located in Southland, New Zealand. The terms of the
transaction provide for the acquisition of that interest in MVM for a
total consideration of $268.5 million, based on an enterprise value
of circa $385 million. The acquisition will be undertaken on a
debt-free, cash-free basis and funded from the Group’s existing
cash reserves.
Completion of the transaction is subject to the approval of the
New Zealand Overseas Investment Office, with completion
expected to occur on 31 May 2021.
To enable MVM to produce consumer packaged nutritional
products, a blending and canning facility and associated
infrastructure will be established, requiring an additional investment
in the order of $120 million over the first two to three years
following the completion of the transaction.
It is expected that acquisition costs of approximately $10 million will
be incurred in FY21, of which $4.5 million has been expensed in the
half year.
12. Subsequent events
As at 31 December 2020 the market value of the Company’s
investment in Synlait Limited was $226,734,000 ($5.23 per share).
As at 24 February 2021 the market value has decreased to
$185,549,000 ($4.28 per share). The investment is measured at fair
value through other comprehensive income so that any changes in
market value are recognised through the fair value revaluation
reserve, with no effect on profit or loss.
No other matters or circumstances have arisen since the end of the
period which have significantly affected or may significantly affect
the operations, the result of these operations or state of affairs of
the Group in subsequent periods.
Interim Report 21 20 The a2 Milk Company Limited
FINANCIAL STATEMENTS

CORPORATE
DIRECTORY
Company
The a2 Milk Company Limited
New Zealand share registry
Link Market Services Limited
PO Box 91976
Victoria Street West
Auckland 1142
New Zealand
Telephone: +64 9 375 5998
Australian share registry
Link Market Services Limited
Locked Bag A14
Sydney South NSW 1235
Australia
Telephone: +61 1300 554 474
Registered offices
Level 10
51 Shortland Street
Auckland 1010
New Zealand
Level 4
182 Blues Point Road
McMahons Point NSW 2060
Australia
Telephone: +61 2 9697 7000
Auditor
Ernst & Young
200 George Street
Sydney NSW 2000
Australia
Company Directors
David Hearn (Chair and Non-Executive Director)
Julia Hoare (Deputy Chair and Independent, Non-Executive Director)
David Bortolussi (Managing Director and CEO)
Pip Greenwood (Independent, Non-Executive Director)
Warwick Every-Burns (Independent, Non-Executive Director)
Jesse Wu (Independent, Non-Executive Director)
Corporate website
www.thea2milkcompany.com
Our a2 Milk™
difference
Conventional cows’ milk
contains two main types of beta
casein protein, A2 protein and
A1 protein – our branded milk
is different from conventional
cows’ milk because it comes
from cows selected to naturally
produce only the A2 protein
type and no A1.
Our milk is comparable to conventional
cows’ milk in other respects.
Our branded milk is naturally occurring
and not a product of genetic engineering
or technological processes.
Many consumers and healthcare
professionals report that some people
who experience digestive issues drinking
conventional cows’ milk may experience
benefits when they switch to a2 Milk
TM
.
a2 Milk™ brand is much more than just
a difference between A1 and A2 protein
types. Our brand stands for a series
of wonderful qualities from where we
source our milk, the extra special care we
take from cow to consumer, and how we
educate and engage with our consumers.
That’s why there is only one a2 Milk™
from The a2 Milk Company.
Typical cow herds
produce conventional
milk containing a mix of
A1 and A2 protein types
Originally all cows
produced milk
containing only the
A2 protein type
Genetic variation has resulted in mixed
herds over time
Our branded milk is sourced
from herds producing milk
naturally containing only the
A2 protein type and no A1
Interim Report 23 22 The a2 Milk Company Limited

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

---

The a2 Milk Company Limited
INTERIM
RESULTS
2021 Half year interim results –25 February 2021

Disclaimer
This presentation dated 25 February 2021 provides additional comment on the Interim Report for the 6 months ended 31 December 2020 of The a2 Milk
Company Limited (the “Company” or “a2MC”) and accompanying information released to the market on the same date. As such, it should be read in conjunction
with the explanations and views in those documents.
This presentation is provided for general information purposes only. The information contained in this presentation is not intended to be relied upon as advice to
investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should assess their own
individual financial circumstances and consider talking to a financial adviser or consultant before making any investment decision.
This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction.
Certain statements in this presentation constitute forward looking statements. Such forward looking statements involve known andunknown risks, uncertainties,
assumptions and other important factors, many of which are beyond the control of the Company and which may cause actual results,performance or
achievements to differ materially from those expressed or implied by such statements.
While all reasonable care has been taken in relation to the preparation of this presentation, none of the Company, its subsidiaries, or their respective directors,
officers, employees, contractors or agents accepts responsibility for any loss or damage resulting from the use of or reliance on this presentation by any person.
Past performance is not indicative of future performance and no guarantee of future returns is implied or given.
Some of the information in this presentation is based on unaudited financial data which may be subject to change.
All values are expressed in New Zealand currency unless otherwise stated.
All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company.
2| 2021 Interim Results

Introduction
4
Results overview
5
Financials overview
6
Regional performance
11
Group updates
23
Outlook
26
Appendix
29
AGENDA

M A N A G I N G D I R E C T O R A N D C E O
David
Bortolussi

Fundamentals remain strong despite significant COVID-19 disruption
1H21 challenging
•Total revenue of $677.4 million down 16.0% and EBITDA of $178.5 million down 32.2%
•EBITDA margin of 26.4% (27.0% excluding MVM acquisition costs)
•Challenges resulting from COVID-19 disruption experienced in the daigou/reseller channel with a
flow on impact to CBEC
•Strong China label infant nutrition performance
•Pleasing liquid milk performance in Australia
•Positive earnings impact from change in execution approach in USA
Business fundamentals remain strong
•Brand health metrics strong
•Compelling consumer product with innovation potential
•Significant further growth potential in core markets
•Robust balance sheet to invest in growth
•Improving capability to execute
5| 2021 Interim Results

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

7| 2021 Interim Results
NZ$ million1H211H20% change
Revenue
677.4805.3(16%)
Gross margin
340.5460.7(26%)
Distribution(22.6)(19.8)+14%
Marketing(67.4)(83.9)(20%)
Employee costs(26.0)(32.4)(20%)
Admin & other
(2)
(46.0)(58.2)(21%)
Loss from discontinued operations
-(3.2)nm
EBITDA
(3)
178.5263.2(32%)
EBIT
175.3261.5(33%)
NPAT
120.0184.9(35%)
•Revenue decline driven by challenges in daigou/ reseller and CBEC channels, partially offset by
growth in China label infant nutrition and growth in liquid milk
•Reflects investment in capability, particularly in China, offset by reduction in accrued employee
incentive benefits
•GM of 50.3% reflects stock provision, higher COGS for China label, and adverse mix effect from
higher proportion of liquid milk and China label infant nutrition sales
•Higher distribution costs due to higher inventory levels and higher proportion of China label
•Investment in China and Australia broadly in-line with prior corresponding period; USA reflects lower
marketing but higher trade spend to support execution of new pricing strategy
•Reduction in discretionary spending, including consulting, as well as travel related costs due to
COVID-19, partially offset by increased cost of insurance
Key financials
(1)
1
The Company’s financial year ends 30 June; 1H refers to the first half period from 1 July to 31 December; 2H refers to the second half period from 1 January to 30 June. Numbers may not add down due to rounding.
2
This includes MVM acquisition costs in 1H21 of $4.5 million.
3
EBITDA is a non-GAAP measure and represents earnings before interest, tax, depreciation and amortisation, and is shown after non-recurring items.

13
28
34
1H191H201H21
8| 2021 Interim Results
China & Other Asia
segment revenue
418
460
317
1H191H201H21
NZ$ millions
180
317
326
1H191H201H21
USA
segment revenue
NZ$ millions
Challenges in
daigou/reseller
channel
impacting infant
nutrition and
other nutritional
products
Change in
execution
approach
Strong performance in China label
offset by challenges in CBEC
Decline in revenue due to challenges in daigou/reseller and CBEC channels,
partially offset by growth in China label infant nutrition and liquid milk
ANZ
segment revenue
NZ$ millions

Gross margin decreased to 50.3% mostly reflects English-label disruption
9| 2021 Interim Results
1H21 gross margin drivers
1H21 higher proportion of
China-label infant nutrition
1H21 adverse product mix
higher proportion liquid milk
82%
82%
82%
78%
13%
13%
13%
18%
5%
5%
5%
4%
Jun-19Dec-19Jun-20Dec-20
Infant nutritionLiquid milkOther
78%
76%
66%
61%
52%
40%
20%
18%
22%
23%
24%
20%
2%
6%
12%
16%
24%
40%
FY16FY17FY18FY19FY201H21
ANZCBEC(1)China label
•Stock provision of $23.3m
•Higher proportion of China-label
infant nutrition
•Increased China label infant
nutrition COGS (ingredients and
packaging)
•Higher proportion of liquid milk to
infant nutrition
•Benefits of improved price yield
1
CBEC: Cross-border e-commerce (English and other label infant nutrition).

Robust balance sheet, investment in strategic assets
10| 2021 Interim Results
•Closing cash balance of $774.6 million
•Increase in working capital of $147.0 million due to increase in inventory and reduction in accounts payable
•Acquisition of KyValleymilk processing facility ($16.4 million)
•Participation in Synlait’srecent capital raising ($39.8 million), maintained shareholding of 19.84%
•MVM acquisition will be funded from cash reserves
•Balance sheet strength provides capacity to support growth opportunities
854.2
+120.0
(147.0)
(24.3)
(39.8)
+17.8
(6.3)
774.6
Cash on hand
(Jun-20)
Group NPATWorking capitalInvestments in
PPE & intangibles
Investment in
Synlait
Depreciation,
amortisation & other
non-cash
Cash holdings
revaluations
Cash on hand
(Dec-20)
($79.6) million

R E G I O N A L
P E R F O R M A N C E

Asia Pacific –infant nutrition
We are growing in the largest infant nutrition channel in China
12| 2021 Interim Results
221.5
261.0
321.6
331.3
352.0
393.0
209.5
79.3
78.6
100.6
142.5
160.5
180.7
103.5
40.2
43.7
73.3
94.5
146.7
191.0
213.1
341.0
383.3
495.5
568.3
659.2
764.7
526.1
1H182H181H192H191H202H201H21
ANZCBECChina label
China label proportion of total sales increasingRevenue composition acrossinfant nutrition channels
1
65%
68%
65%
58%
53%
51%
40%
23%
21%
20%
25%
24%
24%
20%
12%
11%
15%
17%
22%
25%
40%
1H182H181H192H191H202H201H21
ANZCBECChina label
NZ$ millions
1
CBEC: Cross-border e-commerce (English and other label infant nutrition).

Asia Pacific –infant nutrition
Strong China label infant nutrition growth in line with strategy
Performance
•Sales of a2 至初
®
China label infant nutrition of $213.1 million; +45.2%
•Expanded store footprint to ~22.0k stores, up from ~19.1k at the end of 2H20
•MBS value share continues to increase, achieving 2.4%
1
share at end 1H21,up
from 2.0% at end of FY20
Key activities
•Increased investment behind in-store activation, mama classes and promotional
people
•Investment in China based team to support growth and execution plans
Strong fundamentals
•Brand health metrics continue to strengthen
•Growing sales in MBS, the largest infant nutrition channel in China
13| 2021 Interim Results
40.2
43.7
73.3
94.5
146.7
191.0
213.1
1H182H181H192H191H202H201H21
China-label revenue growth
+45.2%
NZ$ millions
1
Source: Nielsen MBS 12-month value share.

Roadshows and in-store activations to engage
and build brand connection with consumers
Asia Pacific –infant nutrition
We are continuing to invest in our brand and engage with consumers in China
Investment in mama classes and
in-store promotional people
Social media advertising campaign
14| 2021 Interim Results

15| 2021 Interim Results
Market value share increasing
Expanding footprint
3.8
6.7
10.0
12.3
16.4
18.3
19.1
22.0
Jun-17Dec-17Jun-18Dec-18Jun-19Dec-19Jun-20Dec-20
China distribution (store count ‘000)
1.3%
1.7%
2.0%
2.4%
Jun-19Dec-19Jun-20Dec-20
MBS value share(%)
1
1
Source: Nielsen MBS 12-month value share.
Asia Pacific –infant nutrition
Investment in the brand driving increases in footprint and share in MBS

Asia Pacific –infant nutrition
Challenging 1H21 for English label infant nutrition
Australian daigou/resellers and retailers
•Sales of a2 Platinum
®
English label infant nutrition of $209.5 million, down 40.5%
•Challenges resulting from COVID-19 disruption experienced in daigou/reseller channel with a flow
on impact to CBEC
•Subdued online pricing and channel inventory unwinding, has resulted in daigou/resellers being
slower to fully re-enter the market
•Steps taken to re-activate the channels, and improvement expected
•Continue to invest behind the brand, and in daigou/reseller incentive programs
•Remains a strategically important channel
Cross border e-commerce (CBEC)
•Sales of a2 Platinum
®
English and other labels of $103.5 million, down 35.5%
•Decline in sales due to a lower level of sales to informal social e-commerce channels and traders
and the Company’s view that inventory unwound in these channels
•A temporary cessation of a2 Platinum® Hong Kong label
•Actively rebalancing inventory in the channel and continuing to refine promotional approach
16| 2021 Interim Results
18.6%
20.5%
21.5%
22.3%
19.5%
Jun-19Dec-19Jun-20Dec-20Dec-20
1
SmartpathCBEC 12-month market value share (MAT).
2
SmartpathCBEC December market value share.
CBEC market value share
1
English and other label infant nutrition revenue
221.5
261.0
321.6
331.3
352.0
393.0
209.5
79.3
78.6
100.6
142.5
160.5
180.7
103.5
300.8
339.6
422.1
473.8
512.5
573.7
313.0
1H182H181H192H191H202H201H21
ANZCBEC
$NZ millions
Month

Asia Pacific –infant nutrition
Plan in place for 2H21 to re-activate English label infant nutrition channels
17| 2021 Interim Results
Continuing corporate daigou incentive
program and investment behind the brand
Australian daigou/resellers and retailers
•Rebalancing inventory levels and improving traceability
through the channel
•Providing temporary support to the daigou/resellers
•Working with corporate daigouto drive distribution
innovation
CBEC
•Rebalancing inventory in the channel
•Continuing to refine promotional approach
2H21 plan to re-activate English label channels

•ANZ liquid milk revenue +16.3% to $86.9 million
•Australia achieved a record market share of 11.7%
1
•The a2 Milk™brand continues to be the only fresh milk brand ranged in
all major Australian supermarket chains
•Largest brandadvertiser in the freshmilkcategory in Australia
•New Zealand licensing fees +33.2%
•China revenue +107% to $3.7 million
Asia Pacific –liquid milk
Liquid milk growing strongly
18| 2021 Interim Results
1
IRI Australian Grocery Weighted Scan 12-months ending 31 December 2020.
11.2%
11.3%11.3%
11.7%
Jun-19Dec-19Jun-20Dec-20
Australian milk market value share
(1)
Liquid milk revenue (Australia & China)
61.1
62.5
67.1
66.6
74.7
77.9
86.9
0.8
0.8
1.1
1.8
1.8
1.6
3.7
1H182H181H192H191H202H201H21
ANZChina
Revenue $NZ millions

•The most significant proportion of the Company’s other nutritional
products segment remains a2 Milk™whole milk and skim milk powders,
available in ANZ and China
•Overall revenue decline of 36.2% to $26.5 million
•Significantly impacted by challenges in daigou/reseller channel
•Focus on re-activating the daigou/reseller channel in 2H21
•Further growth potential across new channels, particularly in offline
China retail channels
Asia Pacific –other nutrition
Other nutritional segment impacted by challenges in daigou/reseller channel
19| 2021 Interim Results

Significantly improved EBITDA
North America
USA result driven by change in execution approach
Impact of COVID-19 in the USA market overall has been significant
•During 2020, it was observed that consumers were becoming more value conscious
•Proactively responded with change in execution approach
•Greater investment in account specific activity to position pricing at a more affordable
premium level and stepped up in-store activation
Results driven by change in execution approach
•Significant increase in gross revenue and volume
•Reported net revenue +22.3% to $34.2 million
•Significantly reduced EBITDA loss, $18.4 million improvement on pcp
•Increasing shelf space and in store stock weight
USA continues to be an important market
•Largest global milk market with significant and growing premium segment
•Growth in awareness to create a platform for future product innovation
Launched in Canada via a licensing agreement with Agrifoods in 1H21
20| 2021 Interim Results
13.0
22.0
28.0
38.1
34.2
(17.3)
(26.7)
(30.0)
(20.5)
(11.6)
1H192H191H202H201H21
Chart Title
RevenueEBITDA

North America
USA plan positioning pricing at a more affordable premium level and
stepping up in-store activation
21| 2021 Interim Results
More affordable premium pricingSupported by digital activation
In-store activation

North America
Broad national distribution in over 22k stores in USA
22| 2021 Interim Results
USA distribution over time (store count)
3.0k
3.6k
6.0k
10.0k
13.1k
17.5k
20.3k
22.3k
Jun-17Dec-17Jun-18Dec-18Jun-19Dec-19Jun-20Dec-20

G R O U P U P D AT E S

Continuing to strengthen our supply chain capability with MVM investment
Overview
•In August, we made a non-binding indicative offer to acquire 75% of MVM for approximately $270 million,
based on an enterprise value of $385 million
•In December, we agreed the terms of the proposed acquisition which is subject to approval of the New
Zealand Overseas Investment Office, with completion expected to occur around the end of May 2021
Strategic rationale
•Mitigate risk by providing both supplier and geographic diversification
•MVM is a recently constructed and commissioned state of the art nutritionalsfacility, which will complement
our existing supply relationships
•The plant has been independently validated by industry experts as being capable of producing the highest
quality nutritional products
•It is well located for access to a growing productive milk pool supported by favourable climatic conditions and
water availability
•Currently majority owned by a respected China state owned enterprise –China Animal Husbandry Group –
which will continue as a strategic shareholder and assist with developing the business in China
Transitional period
•Due to revised volume assumptions, the Company now expects an EBITDA loss of up to $10 million per
annum during the transition period and still expects EBITDA to be positive from FY25.
•Exploring business development opportunities to improve the financial performance during this period
24| 2021 Interim Results

Building a sustainable business for the future
25| 2021 Interim Results
•Progress establishing The a2 Impact Fund
TM
•Working towards setting targets and metrics across our six capitals
•Commenced research relationship with Sea Forest –Asparagopsisresearch
project, aiming to reduce methane production from dairy cows
•Investment in LED lighting and solar at Smeaton Grange processing facility
•Progress on farm environmental plans and animal welfare
•Community engagement initiatives including Foodbank and Landcare Australia
•People development initiatives including “a2 For You
TM
” program expansion
and rollout, andleadership development programmes

2 H 2 1 P L A N & O U T L O O K

Summary of 2H21 plan
27| 2021 Interim Results
Grow China label infant nutrition
•Continue to invest behind the brand and in-market capability to gain share
Re-activate Australian daigou/resellers and retailers
•Rebalancing inventory levels and improving traceability through the channel
•Providing temporary support to the daigou/resellers
•Working with corporate daigouto drive distribution innovation
Optimise CBEC
•Rebalancing inventory in the channel and refine promotional approach
•Investing in building digital and e-commerce capability
Maintain leading position in Australian liquid milk
•Continue to invest behind the brand to maintain share
Drive towards meaningful scale for USA liquid milk
•Continue to execute revised approach to increase volume and improve profitability
Review growth strategy
•Maximise full potential of the brand and business

FY21 Outlook
•Globally there continues to be unprecedented levels of uncertainty and volatility due to COVID-19.
•The Company remains confident in the underlying fundamentals of the business and will continue to invest behind the
brand and in its capability to drive long term growth.
•However, the pace of recovery in the daigou/reseller channel and in the CBEC channel has been slower than previously
anticipated and the Company now expects revenue to be at the lower end of the previous guidance range.
•A lower EBITDA margin range is also expected due to lower revenue, higher brand investment, longer daigou/reseller
support, movements in foreign currency and adverse channel mix relative to what was anticipated in December.
•Accordingly, the Company’s FY21 outlook is now as follows:
‒Group revenue for FY21 in the order of $1.4 billion
‒Group EBITDA margin for FY21 of 24% to 26% (excluding MVM acquisition costs)
•The outlook for FY21 assumes the actions being taken to re-activate the daigou/reseller channel delivers a significant
improvement in quarter-on-quarter growth from 3Q21 to 4Q21.
28| 2021 Interim Results

A P P E N D I X

Reconciliation of non-GAAP measures
30| 2021 Interim Results
NZ$ million1H211H20
Australia & New Zealand EBITDA
117.5227.9
China & Other Asia segment EBITDA
94.4117.5
USA segment EBITDA
(11.6)(30.0)
CorporateEBITDA
(21.7)(48.9)
UK EBITDA
-(3.2)
EBITDA
1
178.5263.2
Depreciation/amortisation
(3.2)(1.8)
EBIT
1
175.3261.4
Net interest income
1.72.9
Income tax expense
(57.0)(79.4)
Netprofit for the period
120.0184.9
1
EBITDA and EBIT are non-GAAP measures. However, the Company believes they assist in providing investors with a comprehensive understanding of the
underlying performance of the business. EBITDA is shown after non-recurring items. This includes MVM acquisition costs in 1H21 of $4.5 million.

Strong performance in China-label and liquid milk, offset by challenges in
English label and other nutritional products
31| 2021 Interim Results
Geographic segment revenue & EBITDA
NZ$ million
ANZ
China &
Other Asia
USA
UK
(Discontinued
Ops)
Corporate
Total
Group
1H21
Revenue
317.2326.034.2--677.4
EBITDA
117.594.4(11.6)-(21.7)178.5
EBITDA %
37.0%29.0%nmnm-26.4%
1H20
Revenue
460.2317.228.01.4-806.7
EBITDA
227.9117.5(30.0)(3.2)(48.9)263.2
EBITDA %
49.5%37.0%nmnmnm32.6%
%
change
Revenue
(31.1%)2.8%22.1%nm-(16.0%)
EBITDA
(48.4%)(19.7%)61.3%nm55.6%(32.2%)
Product segment revenue
1
Liquid
milk
Infant
nutrition
Other
nutritional
124.7526.126.6
104.4659.241.7
19.4%(20.2)%(36.2%)
1
Product segment revenue excludes discontinued operations (UK) in 1H20.

Geographic and product segment revenue performance
32| 2021 Interim Results
Revenue
(NZ$ million)
ANZ
China & Other
Asia
USA
Total
Group
UK
(discontinued
operations)
1H21
Liquid milk
86.93.734.1124.7
-
Infant nutrition
209.5316.6-526.1
-
Other nutritional
20.85.70.126.6
-
TOTAL
317.2326.034.2677.4
-
1H20
Liquid milk
74.71.828.0104.5
1.4
Infant nutrition
352.0307.2-659.2
-
Other nutritional
33.58.2-41.7
-
TOTAL
460.2317.228.0805.4
1.4
%
Change
Liquid milk
+16.3%+105.6%+21.8%+19.3%
nm
Infant nutrition
(40.5%)+3.1%-(20.2%)
nm
Other nutritional
(37.9%)(30.5%)-(36.2%)
nm
TOTAL
(31.1%)+2.8%+22.1%(15.9%)
nm

Capital allocation framework prioritisesinvestment in growth initiatives
ahead of returning capital to shareholders
33| 2021 Interim Results
Operating cash flow generation
Capital funding
Excess cash flow
Balance sheet strength & flexibility
•Capacity to support business growth and risk
management initiatives
•Maintain a conservative cash reserve to manage
in an uncertain environment
Expand the boundaries
•Adjacent new product categories in existing
markets
•Geographic expansion of existing products into
new markets
•Assess complementary M&A to drive further
growth within core markets
Grow the core business in existing markets
•Investment in building core business
•Assess participation in IMF manufacturing
•Enabling investment in systems, infrastructure,
quality, safety and expertise
•Organic growth –existing and new products / new
retail channels
Shareholder returns

www.thea2milkcompany.com

---

The a2 Milk Company Limited
ARBN 158 331 965

ASX Appendix 4D - Half Year Report

Results for announcement to the market

Reporting period Six months to 31 December 2020
Previous reporting
period
Six months to 31 December 2019

Amount (000s) Percentage change
Revenue from
continuing ordinary
activities
$NZ 677,362 -15.9%
Profit (loss) from
continuing ordinary
activities after tax
attributable to security
holders
$NZ 120,043 -36.2%
Net profit (loss)
attributable to security
holders
$NZ 120,043 -35.1%

Final dividend Amount per security Imputed amount per
security
The Company does not
propose to pay a
dividend for the six
months ended 31
December 2020
Not applicable Not applicable

Record date Not applicable
Dividend payment date Not applicable

Comments: For further information refer to the attached:
Interim Report for the six months ended 31
December 2020
Half Year Results Commentary
Half Year Results Presentation



Net Tangible Assets per
security

31 December 2020
$NZ 1.55
30 June 2020
$NZ 1.48