Fonterra provides Milk Price and Q3 performance update

26 May 2021

Fonterra updates on forecast Farmgate Milk Price and performance

Fonterra today announced an opening forecast Farmgate Milk Price range for the 2021/22 season
of $7.25 - $8.75 per kgMS, with a midpoint of $8 per kgMS.

It also narrowed its 2020/21 forecast Farmgate Milk Price range, which reduces the midpoint by 5 cents
to $7.55 per kgMS, and reported a strong performance for the nine months ending 30 April 2021.
However, it cautions there will be significant pressure on earnings in the last quarter of the year due to
the normal seasonal profile of the business combined with tightening margins.


CEO Miles Hurrell says that the improving global economic environment and strong demand for
dairy, relative to supply, are sitting behind the Co-op’s $8 midpoint of its 2021/22 forecast Farmgate Milk
Price range.


“At this point it would see the Co-op contributing more than $12 billion to the New Zealand economy
next season.


“Global demand for dairy, especially New Zealand dairy, is continuing to grow. China is leading the
charge as its economy continues to recover strongly. Prompted by COVID-19, people are seeking the
health benefits of milk and customers are wanting to secure their supply of New Zealand dairy products
and ingredients.

“Growth in global milk supply seems muted and the global supply of whole milk powder is
looking constrained.


“Based on these supply and demand dynamics, along with where the NZ dollar is sitting relative to the US
dollar, we’re expecting whole milk prices to remain at current levels for the near future.

“As we look out over the next 18 months, there are a number of risks, which is why at this early stage we
have this large range on our forecast Farmgate Milk Price. Some of the major risks include: COVID 19,

Fonterra Co-operative Group
Page 2

which is far from over; the impacts of governments winding back their economic stimulus
packages; foreign exchange volatility; changes in the supply and demand patterns that can enter dairy
markets when prices are high; and as always, potential impacts of any geopolitical issues around
the world.”

Having sold most of its milk for the 2020/21 season, Fonterra is now in a position to narrow this
season’s forecast Farmgate Milk Price range from $7.30 - $7.90 per kgMS to $7.45 - $7.65 per kgMS.

Hurrell says, at a mid-point of $7.55, 2020/21 would be the second year in a row with the forecast
Farmgate Milk Price above $7 per kgMS.

“Since March, we have seen prices settle, somewhat, which is why we have revised our midpoint down 5
cents. In that extraordinary March GDT event, where prices jumped 15% and which contributed to the
increase in our forecast 2020/21 Farmgate Milk Price range, the average price for whole milk powder was
over US$4,350 per metric tonne. In the last three GDT events, however, the average price has reduced to
close to $4,100 per metric tonne. And GDT butter prices have gone from almost $6,000 per metric tonne
to below $5,000 per metric tonne for the first time since January.”

Business performance


For the nine months ending 30 April 2021, Fonterra delivered a normalised Net Profit After Tax of
$587 million, up 61% year-on-year, reflecting the Co-op’s improving underlying business performance and
stronger balance sheet. Reported Net Profit After Tax was $603 million, up 2%.


Fonterra’s Total Group normalised Earnings Before Interest and Tax (normalised EBIT) was up 18%
to $959 million, due to higher margins and reduced operating expenditure.

Hurrell says COVID-19 challenges are still very much part of life for the Co-op’s employees and
customers around the world.

“It’s too easy to forget this if you’re sitting here in New Zealand – but today’s results show that despite
these challenges we’ve lifted our financial performance. Over the last three months, we have
also committed to getting out of coal by 2037 and made some promising progress in a trial using seaweed
in cows’ feed to reduce emissions.

“I would like to thank all our employees for delivering another strong set of results and also our farmer
owners for their high-quality New Zealand milk and ongoing support. I couldn’t be prouder of how our
employees and farmers are working together.


“Greater China continues to be an important performer for us, delivering year-to-date normalised EBIT of
$457 million, up 30% or $106 million year-on-year. Foodservice, once again, was the big driver behind this
result, contributing $93 million of the growth. In the third quarter, the team continued to improve the
strong gross margins we saw in Foodservice at half year by shifting milk into higher value products, for
example cream cheese. As a result, the year-to-date margin increased from 21.5% to 28.6%.

Fonterra Co-operative Group
Page 3


“Asia Pacific’s normalised EBIT of $224 million was down 10% or $24 million. While Consumer improved
by 29% and Foodservice by 89%, this was offset by Ingredients which was impacted by pricing lags
on sales contracts with customers, delaying our ability to pass through the increase in our input costs.


“AMENA’s normalised EBIT of $322 million was down by 11% or $40 million, mainly due to
lower Ingredients sales volumes as we continue to make the most of one of our strengths and that is our
ability to move milk into higher value products and markets. However, AMENA Consumer and
Foodservice continue to perform well, maintaining a year-on-year improvement in gross margins.”


Hurrell says the Co-op’s ongoing financial discipline is also a big part of its third quarter performance
story.

“Fonterra’s operating expenses are down 5% year-to-date but we are planning some
additional expenditure in the final quarter to support our brands and product initiatives for next
year. Our debt reduction over the last couple of years and lower interest rates have reduced our interest
bill by $69 million for the nine months ending 30 April 2021.”


Earnings outlook

Fonterra is maintaining its normalised earnings guidance of 25-35 cents per share. While year-to-
date normalised earnings per share are 34 cents, the Co-op is expecting earnings in the fourth quarter
to come under further pressure and is providing guidance that its full year earnings are expected
to be more towards the mid-point of the range.


Hurrell says there are some clouds on the horizon when it comes to Fonterra’s earnings performance.

“While overall we’ve seen stronger gross margins so far this year, they’ve narrowed in the third quarter
as the increasing raw milk prices have flowed through to our input costs and the pricing lags on sales
contracts with customers have delayed our ability to pass through the increase in our input costs.


“As a result, we’re forecasting increased pressure on margins in the fourth quarter. This is
compounded by the normal seasonal profile of our business, where we have our ongoing fixed costs but
lower volumes of milk being processed and sold. All of this means the fourth quarter will be
challenging from an earnings perspective and we expect the margin pressure to continue into the first
quarter of the 2022 financial year.”


Portfolio review update

Back at the start of the 2019 financial year, Fonterra set out its original three-point plan to turn around
the business. Part of this involved a strategic review of our assets which led to, among other things, the
Co-operative’s decision to sell down its investment in Beingmate Baby & Child Food Company Ltd
(Beingmate) and its China farms.

Fonterra Co-operative Group
Page 4

During the third quarter, Fonterra completed the sale of its shareholding in Beingmate, marking a full exit
of its investment in the company and completed the sale of Fonterra’s two wholly owned China farming
hubs in Ying and Yutian.


In October 2020, Fonterra announced it had agreed to sell its 85% interest in its Hangu farm in China to
Beijing Sanyuan Venture Capital Co., Ltd. (Sanyuan), for $42 million (RMB 190 million*). Sanyuan has a
15% minority shareholding in the farm and exercised their right of first refusal to purchase Fonterra’s
interest. Due to lack of progress in agreeing the specific terms of the sale, the right of first refusal was
terminated earlier this month and Fonterra will now look to open up the sale process to a wider group of
prospective buyers.


Hurrell says the progress that has been made on the portfolio review is allowing Fonterra to really focus
on its strategy of growing the value of New Zealand milk by using innovation, sustainability and efficiency
to deliver products that customers value.


“It starts with having the best milk in the world – our New Zealand milk – and by having a more focused
asset portfolio, it allows us to prioritise more of our resources around it and we can see this coming
through in our performance.

* based on an RMB to NZD conversion rate of 4.5


-ENDS-

For further information contact:

Fonterra Communications
24-hour media line
Phone: +64 21 507 072

---

26 May 2021

2
COVID-19 challenges
remain but
employees resilient,
offshore markets
starting to receive
vaccines
Strong year-to-date
performance.
Greater China
Foodservice leading the
charge with EBIT up
49% year-on-year
Second year in a row
with a forecast Farmgate
Milk Price over
$7 per kgMS
Announced we will be
getting out of coal by
2037
Completed sale
of two China farms and
exit of Beingmate
shareholding

¹
¹²
³
•Narrowed 2020/21 forecast Farmgate Milk Price range,
with lower midpoint of $7.55 per kgMS
•Announced 2021/2022 forecast Farmgate Milk Price
range of $7.25 -$8.75 per kgMS
•Strong performance year to date –however, margins
narrowed in third quarter with higher input costs
•Normalised profit after tax up $222 million, or 61%, to
$587 million, representing normalised earnings per share
of 34 cents
•Forecasting full year normalised earnings to be towards
midpoint of 25-35 cent range due to further tightening of
margins and the seasonal profile of the last quarter
1.Unaudited Total Group figures for the nine months ended 30 April. This includes Continuing and Discontinued Operations, and includes amount attributable to non-controlling interests
2.Normalised profit after tax excludes $16 million of normalised adjustments resulting from $(49) million loss on sale of our investment in Beingmateand $65 million impairment reversal and gain on sale on farming investments in China
3.Attributable to equity holders of the Co-operative, excludes non-controlling interest

4
1.Figures are unaudited Total Group, which includes Continuing and Discontinued Operations, on a normalised basis
for the nine months ended 30 April
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due
to rounding of figures
3.Consists of other operating income, net foreign exchange gain/(loss) and share of equity accounted investees
4.Includes normalisations of $16 million, consistingof $(49) million loss on sale of our investment in Beingmateand
$65 million impairment reversal and gain on sale on farming investments in China
5.Includes amounts attributable to non-controlling interests
6.Attributable to equity holders of the Co-operative, excludes non-controlling interest
•Strong dairy demand continues, but delays in
shipments remain due to ongoing supply chain challenges
•Year to date gross margin of 16.1%, with 17.4% for the first
six months but down to 13.9% in the third quarter due to:
•Higher milk costs in Foodservice and Consumer
•Pricing lags on sales contracts adversely impacting
Ingredients
•Operating expenses are lower. Additional expenditure is
planned in final quarter to support initiatives for next year
•Normalisedprofit after tax improved $222 million, or 61%,
due to improved earnings and lower interest expense
•Reported profit after tax of $603 million, being $16 million
above normalisedprofit after tax
¹
∆²
³
⁴
⁴⁵
⁶

5
¹
¹
²³
Note: Figures are unaudited and for the nine months ended 30 April. All changes are expressed relative to the nine
month performance of FY20. Consistent with the Interim Financial Statements, the current and prior year segment
information is prepared on the new operating model which differs from prior year reportable operating segments.
FY20 and FY21 AMENA channel figures have been restated due to a reclassification of an AMENA business unit from
Ingredients to Foodservice channel
1.Prepared on a normalised Continuing Operations basis. Does not align to reported Continuing Operations due to
excluding unallocated costs and eliminations
2.Normalised EBIT contributions sum to $1,003 million, which does not align to reported Continuing Operations due to
excluding unallocated costs and eliminations
3.Inclusive of Group Operations EBIT attribution

Significant downward earnings pressure expected in fourth quarter
due to:
•Average GDT prices have increased 26% from US$3,210 in the
first half to US$4,036 in the third quarter
•The increase in prices will adversely impact Foodservice and
Consumer margins
•Ingredients’ price relativities narrowing –non-reference product
prices have not increased at the same rate as reference products
prices
•Seasonal profile of milk curve relative to fixed costs
GDT Average Price
31 Jan 202131 July 2019 31 Jan 2020
•Narrowed the forecast Farmgate Milk Price range, with
a lower midpoint of $7.55 per kgMS
•Maintained full year forecast normalised earnings per
share range of 25-35 cents
per kgMS
cents per share
31 July 2020
FY20 H1
Average price:
US$3,380
US$4,036
FY21 H1FY20 Q3
US$3,092
Average price over period
US$3,210
FY21 Q3
FY20 Q4
US$3,048
Source: GlobalDairyTrade

•The midpoint of $8.00 per kgMSreflects:
•Global milk supply expected to be stable
•Continuation of current dairy prices over the
near term, with supply of Whole Milk Powder
relatively constrained
•Continued strong demand for dairy, led from China
•The wide range reflects risks that could impact the dairy
prices, such as:
•Inherent volatility in dairy prices and foreign exchange
•Ongoing global pandemic challenges
•Potential adverse demand impact from governments
winding back stimulus packages
•Deterioration in global trade relations
•Change in demand patterns across our key markets

8
Consistent with the Interim
Financial Statements, the current
and prior year segment information
contained in the appendix is
prepared on the new operating
model which differs from prior year
reportable operating segments

9
1,834
1,886
1,813
1,665
1,590
20172018201920202021
Opex ($ million)
13.8
14.8
14.9
16.0
15.5
20172018201920202021
Revenue ($ billion)
780
574
514
815
959
20172018201920202021
EBIT ($ million)
Note: Figures are unaudited and for the nine months ended 30 April
Figures are Total Group, which includes Continuing and Discontinued Operations on a normalised basis unless stated otherwise
3,063
3,023
3,169
3,087
3,053
20172018201920202021
Sales Volume ('000 MT)
815
(62)
378
1,057
975
20172018201920202021
Reported EBIT ($ million)
2,447
2,316
2,229
2,472
2,499
20172018201920202021
Gross Profit ($ million)

10
0
10
20
30
40
50
60
70
80
90
JunJulAugSepOctNovDecJanFebMarAprMay
•Full season forecast was increased to
1,535 million kgMSon 30 April, up 1.2% on
last season
•Season to date collection, June –April, was
1,464 million kgMS, up 1.2% on last season
•North Island production is up 3.0%. Favourable
weather conditions have allowed good pasture
growth and benefited end of season collections
•South Island production is steady, but
collections are down 1.4% on last season
which was among the strongest in
recent seasons
SeasonTotal Milk Solids
(kgMS)
Peak Day
Milk
2018/191,523m(up 1.2%)85m litres
2019/201,517m (down 0.4%)83m litres
2020/211,535m (up 1.2%)¹
83m litres
Volume (m litres/day)
1. Current full season forecast

∆
¹
²
³
⁴
Includes EBIT attribution
from Group Operations⁵ ($)
61(63)-
Note: Figures are unaudited and for the nine months ended 30
April. Figures are on a normalised Continuing Operations basis
1.Percentages as shown in table may not align to the
calculation of percentages based on numbers in the table
due to rounding of figures
2.Includes sales to other segments
3.Consists of other operating income, net foreign exchange
gain/(loss) and share of equity accounted investees
4.This includes EBIT attribution from Group Operations
5.This is included in Asia Pacific’s EBIT. Refer to Glossary for
explanation of Group Operations
•Consumer and Foodservice performance remains
strong but offset by a decline in Ingredients:
•Consumer had a stable third quarter and remains
up on last year due to improved sales pricing
•Foodservice margins remain up on last year with
a strong third quarter relative to prior year,
which was impacted by COVID-19 lockdowns
•Ingredients margins adversely impacted by pricing
lags on sales contracts
•EBIT of $224 million, down $24 million due to a large
decline in Ingredients’ margin
Q1Q2Q3Q4
20202021

12
$ millions
Note: Does not add to Total Group as shown on a normalised Continuing Operations basis and excludes unallocated costs and eliminations
20202021
Gross ProfitEBITGross ProfitEBIT
Gross ProfitEBIT

∆
¹
²
³
⁴
(2)
Includes EBIT attribution
from Group Operations⁵ ($)
59(3)-
Q1Q2Q3Q4
20202021
Note: Figures are unaudited and for the nine months ended 30
April. Figures are on a normalised Continuing Operations basis
1.Percentages as shown in table may not align to the
calculation of percentages based on numbers in the table
due to rounding of figures
2.Includes sales to other segments
3.Consists of other operating income, net foreign exchange
gain/(loss) and share of equity accounted investees
4.This includes EBIT attribution from Group Operations
5.This is included in AMENA’s EBIT. Refer to Glossary for
explanation of Group Operations
•Lower volume in Ingredients as milk moved to higher
value products and markets
•Gross margin remains up in Foodservice and Consumer,
but offset by lower Ingredients’ margin
•Gross profit declined $95 million due to lower sales
volumes and gross margin in the Ingredients business
•Operating expenses down $25 million, predominately due
to reduced supply chain costs from lower sales volumes
•EBIT of $322 million, down $40 million

14
$ millions
Note: Does not add to Total Group as shown on a normalised Continuing Operations basis and excludes unallocated costs and eliminations
FY20 and FY21 AMENA channel figures have been restated due to a reclassification of an AMENA business unit from Ingredients to Foodservice channel, and a sales volume elimination correction from Foodservice to Consumer channel
20202021
Gross ProfitEBIT
Gross ProfitEBIT
Gross ProfitEBIT

Q1Q2Q3Q4
20202021
∆
¹
²
³
⁴
Includes EBIT attribution
from Group Operations⁵ ($)
Note: Figures are unaudited and for the nine months ended 30
April. Figures are on a normalised Continuing Operations basis
1.Percentages as shown in table may not align to the
calculation of percentages based on numbers in the table
due to rounding of figures
2.Includes sales to other segments
3.Consists of other operating income, net foreign exchange
gain/(loss) and share of equity accounted investees
4.This includes EBIT contribution from Group Operations
5.This is included in Greater China’s EBIT. Refer to Glossary
for explanation of Group Operations
•EBIT increased $106 million to $457 million, with $93
million contributed from Foodservice growth
•Foodservice maintained the improved gross margin,
up from 21.5% to 28.6%, as it shifted milk into higher
value products
•Sales volume increased, benefiting from a robust
economy and China Government endorsed dairy
•Operating expenses increased $27 million, supporting
the expansion of the Foodservice business

16
$ millions
Note: Does not add to Total Group as shown on a normalised Continuing Operations basis and excludes unallocated costs and eliminations
20202021
Gross ProfitEBITGross ProfitEBIT
Gross ProfitEBIT

17
$ millions
Note: Does not add to Total Group as shown on a normalised Continuing Operations basis and excludes unallocated costs and eliminations
FY20 and FY21 AMENA channel figures have been restated due to a reclassification of an AMENA business unit from the Ingredients to Foodservice channel, and a sales volume elimination correction from Foodservice to Consumer channel
20202021
Gross ProfitEBIT
Gross ProfitEBIT
Gross ProfitEBIT

18
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jul 19Jan 20Jul 20Jan 21
Cheddar (US$)
WMP (US$)
•Unfavourable Ingredients price relativities
between reference and non-reference
products during third quarter:
•Illustrated by the relative price
movements of WMP (reference product)
and Cheddar (non-reference product)
•WMP prices increased 37%, whilst
Cheddar prices increased 17% over the
second and third quarter
•Current price relativities will impact earnings
significantly in the fourth quarter
FY20
FY21
Q2Q3Q4Q1Q3Q2
Source: GlobalDairyTrade

19
¹¹¹¹
²
1.RefertoNote1aand2bofthepreviouslyreleasedFY21InterimFinancialStatements
2.Consists of other operating income, net foreign exchange gain/(loss) and share of equity accounted investees

20
FY21
FY20Q3 ActualFull Year Target
Total recordable injury frequency rate (TRIFR) per million work hours¹5.85.15.0
Female representation in senior leadership²29%30.9%
35%
Employee engagement4.074.09≥4.11 (Top Quartile)
Farmer sentiment (Net Promoter Score for Fonterra in New Zealand)334210⁴
Number of farms with Farm Environment Plans (New Zealand)34%47%45%
Reduction in water used at sites in water-constrained regions versus FY18(3.1)%(2.8)%⁵
(10)%
Reduction in greenhouse gas emissions from manufacturing versus FY15(5.7)%(10.5)%⁵(10)%⁶
Solid waste to landfill (kilotonnes)below FY2015.99.0⁵13.1
Fonterra % kgMS of New Zealand milk collected for the season ended 31May80%NA⁷80%
New Zealand Farmgate Milk Price (per kgMS)$7.14$7.45-$7.65⁸$5.90-$6.90⁸
Return on capital6.7%On track6% to 7%
Debt/EBITDA3.4xOn track3.0-3.5x
Gearing Ratio41.4%On track36 to 40%
Normalised earnings per share24c25c to 35c20c to 35c
1.Part of zero harm philosophy which also includes target 0 serious harm/0 fatalities.
2.Senior leadership defined as Band 14+.
3.Employee engagement is measured through a company-wide survey.
4.The Net Promoter Score for Fonterra was (17) when the target was set.
5.The Q3 position has been calculated utilising actual data where available or estimates.
6.Assumes Te Awamutu conversion to wood pellet is completed for full use in FY21.
7.Only available on an annual basis.
8.Based on latest publicly announced Forecast Farmgate Milk Price.
The Board Statement of Intentions sets out the Board’s intentions for the performance and operations of Fonterra for
FY21. In accordance with the Constitution of Fonterra, Fonterra is required to provide a regular overview to the
Fonterra Co-operative Council of actual achievements, compared with the targets set by the Board. The table below
provides an update of Fonterra’s performance against these targets as at 30 April 2021.

21
Represents the Ingredients, Foodservice and Consumer businesses in New Zealand,
Australia, Pacific Islands, South East Asia, and South Asia
Represents the Ingredients, Foodservice and Consumer businesses in Africa, Middle
East, Europe, North Asia and Americas
Capital expenditure comprises purchases of property (less specific disposals where
there is an obligation to repurchase), plant and equipment and intangible assets, and
net purchases of livestock, and includes amounts relating to businesses classified as
held for sale
Represents the channel of branded consumer products, such as powders, yoghurts,
milk, butter, and cheese. Base products are sourced from the Ingredients business
and manufactured into higher-value consumer dairy products
Calculated as total borrowings, plus bank overdraft, plus the effect of debt hedging,
less a cash allowance of 75% of cash and cash equivalents, divided by normalised
earnings before interest, tax, depreciation and amortisation (normalised EBITDA)
excluding share of loss/profit of equity accounted investees and net foreign exchange
losses/gains. Debt and EBITDA are adjusted to include amounts relating to
businesses classified as held for sale and Discontinued Operations respectively
Calculated as profit before net finance costs and tax
eans the average price that Fonterra pays for milk supplied to it in New
Zealand for a season. The season refers to the 12-month milk season of 1
June to 31 May. The Farmgate Milk Price is set by the Board, based on the
recommendation of the Milk Price Panel. In making that recommendation, the
Panel provides assurance to the Board that the Farmgate Milk Price has been
calculated in accordance with the Farmgate Milk Price Manual
Represents the channel selling to businesses that cater for out-of-home
consumption; restaurants, hotels, cafes, airports, catering companies etc. The
focus is on customers such as; bakeries, cafes, Italian restaurants, and quick-
service global chains. High performance dairy ingredients including whipping
creams, mozzarella, cream cheese and butter sheets, are sold alongside our
business solutions under the Anchor Food Professionals brand
Calculated as economic net interest-bearing debt divided by total capital. Total
capital is equity excluding the hedge reserves, plus economic net interest-
bearing debt. It excludes net borrowings attributed to businesses classified as
held for sale
Represents the Ingredients, Foodservice and Consumer businesses in
Greater China, and the Falcon China Farms JV

22
Normalised earnings per share is calculated as normalised profit after tax
attributed to equity holders of the Co-operative divided by the weighted
average number of shares on issue for the period
Return on capital is calculated as normalised EBIT less a notional tax
charge, divided by capital employed including certain intangibles (brands and
goodwill) and equity accounted investments
New Zealand: A period of 12 months to 31 May in eachyear
Australia: A period of 12 months to 30 June in eachyear
China: A period of 12 months to 31 July in each year
Represents corporate costs including Co-operative Affairs and Group
Functions; and any other costs that are not directly associated to the
reporting segments
Comprises the functions under Chief Operating Office (COO) including New
Zealand milk collection and processing operations and assets, supply chain,
Group IT, Sustainability and Innovation; Farm Source
TM
retail stores and the
Central Portfolio Management function (CPM)
Represents the channel comprising bulk and specialty dairy products such as milk
powders, dairy fats, cheese and proteins manufactured in New Zealand, Australia,
Europe and Latin America, or sourced through our global network, and sold to
food producers and distributors in over 140 countries
Kilogram of milk solids, the measure of the amount of fat and protein in the milk
supplied to Fonterra
Net interest bearing debt including lease liabilities and the effect of debt hedging.
It reflects total borrowings plus bank overdraft less cash and cash equivalents and
non-current interest-bearing advances, adjusted for derivatives used to manage
changes in hedged risks on debt instruments. It excludes net borrowings
attributed to businesses classification as held for sale

23
Disclaimer
Thispresentationmaycontainforward-lookingstatementsandprojections.Therecanbenocertaintyofoutcomein
relationtothematterstowhichtheforward-lookingstatementsandprojectionsrelate.Theseforward-looking
statementsandprojectionsinvolveknownandunknownrisks,uncertainties,assumptionsandotherimportantfactors
thatcouldcausetheactualoutcomestobemateriallydifferentfromtheeventsorresultsexpressedorimpliedbysuch
statementsandprojections.Thoserisks,uncertainties,assumptionsandotherimportantfactorsarenotallwithinthe
controlofFonterraCo-operativeGroupLimited(Fonterra)anditssubsidiaries(theFonterraGroup)andcannotbe
predictedbytheFonterraGroup.
Whileallreasonablecarehasbeentakeninthepreparationofthispresentation,noneofFonterraoranyofits
respectivesubsidiaries,affiliatesandassociatedcompanies(oranyoftheirrespectiveofficers,employeesoragents)
(RelevantPersons)makesanyrepresentation,assuranceorguaranteeastotheaccuracyorcompletenessofany
informationinthispresentationorlikelihoodoffulfilmentofanyforward-lookingstatementorprojectionorany
outcomesexpressedorimpliedinanyforward-lookingstatementorprojection.Theforward-lookingstatementsand
projectionsinthisreportreflectviewsheldonlyatthedateofthispresentation.
Statementsaboutpastperformancearenotnecessarilyindicativeoffutureperformance.
ExceptasrequiredbyapplicablelaworanyapplicableListingRules,theRelevantPersonsdisclaimanyobligationor
undertakingtoupdateanyinformationinthispresentation.
Thispresentationdoesnotconstituteinvestmentadvice,oraninducement,recommendationoroffertobuyorsellany
securitiesinFonterraortheFonterraShareholders’Fund.

24
Fonterra uses several non-GAAP measures when discussing financial performance. These measures include
normalised Profit After Tax, normalised EBIT, EBIT, normalised earnings per share and normalisation adjustments. Total
Group measures present the combined financial performance of the Group’s continuing and discontinued operations.
Non-GAAP financial measures are not defined by NZ IFRS. Management believes that these measures provide useful
information as they provide valuable insight on the underlying performance of the business. They are used internally to
evaluate the underlying performance of business units and to analyse trends.
These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may not be
comparable with similarly titled measures used by other companies. Non-GAAP financial measures should not be
viewed in isolation nor considered as a substitute for measures reported in accordance with NZ IFRS. These non-
GAAP measures are not subject to audit unless they are included in Fonterra’s audited Annual Financial Statements.