Select Equities Conference Presentation

NZX Code: ATM
ASX Code: A2M

The a2 Milk Company Limited
www.thea2milkcompany.com

28 October 2021
NZX/ASX Market Release
Select Equities Conference Presentation

The a2 Milk Company is today presenting the attached at the Select Equities – 5
th
Annual China Conference.

Authorised for release by:
David Bortolussi
Managing Director and Chief Executive Officer
The a2 Milk Company Limited

For further information, please contact:

Investors / Analysts
David Akers
Group Head of Investor Relations and Sustainability
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

---

28 October 2021
D O I N G B U S I N E S S
I N C H I N A
The a2 Milk Company

2
Disclaimer
This presentation dated 28 October 2021should be read in
conjunction with, and subject to, the explanations and views in
documents previously released to the market by The a2 Milk
Company Limited (the “Company”), including the Company’s
Annual Report for the 12 months ended 30 June 2021 and
accompanying information released to the market on 26 August
2021.
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 and
unknown 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.

3
The a2 Milk Company overview
2 0 2 1 I N V E S T O R D A Y
We enrich lives by harnessing the nutritional wonders of nature –through the
naturally occurring a2 Milk
TM
difference
Portfolio of a2 Milk
TM
based products including fresh milk, UHT, ESL, IMF,
milk powder and other nutritional products
Sales primarily in New Zealand, Australia, Greater China and
North America
World class manufacturing facilities and international strategic partners in
China and New Zealand
Over 400 talented team members around the globe
Revenue of NZD$1.2 billion in FY21

4
We have taken action to address the disruption experienced in FY21
2 0 2 1 I N V E S T O R D A Y
Issues disrupting a2MC in FY21Key actions we have taken
•Recognised stock write-downs and deliberately
slowed down sales in 4Q21, together with other
planned initiatives, to reduce inventory levels and
rebalance English label IMF pricing across channels
•Swapped older distributor inventory with more
recent stock to improve on-shelf product freshness
•Increased brand investment with a significant
campaign in 4Q21 to drive consumer demand
•Bolstered leadership teamwith new internal and
external talent
•Reorganised our Asia-Pacific division for enhanced
focus on our key business opportunities
•Refreshed our growth strategyto realise the full
potential of our business
As a result of this disruption, a2MC experienced a
significant decline in its English label IMF sales
through both daigou/reseller and e-commerce channels
Cross-border trade was disrupted by COVID-19,
creating substantial demand/supply volatility, which
caused excess inventory, exacerbating the issue
At the same time, China infant nutrition market growth
reduced significantly from globally high rates to be flat
in value terms and to decline in volume terms, a trend
that became clear following China’s release of 2020 birth
numbers on 11 May 2021 which showed a reduction in
the birth rate

5
•Assessing our route-to-market for English label IMF and capturing the full
potential of our China label IMF distribution in key channels
We have undertaken a holistic review of our growth opportunities
Market
•Continuing the journey to focus on our China market opportunity in particular
Brand
•Reviewing our brand positioning to create continued distinctiveness amongst an
evolving consumer base and new entrants in the category
Channel
Adjacencies
•Outside our core, we are also considering opportunities for adjacent category growth
in China, ANZ and USA as well as assessing opportunities in new emerging markets
Product
•Re-imagining our infant formula product portfolio in English label and China label
to appeal to a broader set of consumers and maximise distribution potential

6
We have adapted our a2MC growth strategy
Purpose
Goals
Strategic
priorities
Enablers
People
Create the safest and most diverse,
inclusive and engaging place for our
people to thrive
Sustainability
Supportour farmers, protect our
planet and cows, rethink packaging
and contribute to our communities
Consumers
Bring the unique benefits of pure
and natural a2 Milk™to as many
consumers as possible
Shareholders
Create long-term, enduring value
for shareholders and a trusted,
transparent relationship
To enrich lives by harnessing the nutritional wonders of nature
Values
Bold PassionPioneering spiritRespectIntegrity
Brand strengthScience & innovationStrategic relationships
Transform our
supply chain
•Expand CL registered
market access
•Utilise MVM capability
•Develop China supply
capability over time
4
Capture full potential
in China IMF
•Gain more control over
CL and EL distribution
and get closer to our
consumer
•Increase investment in
our brand, digital
marketing and E-comm
2
Invest in people and
planet leadership
•Invest in our people to
enable them to thrive
•Take direct action to
lead the industry in
GHG emissions reduction
and farming practices
1
Ramp-up product
innovation
•Expand our CL and EL
IMF product portfolios
•Enter adjacent product
categories in relevant
markets to drive growth
3
Capability development
Accelerate path to
profitability
•Take action to realise
potential in USA
•Expedite insourcing and
3
rd
party volume to
significantly increase
MVM utilisation
5
Humility
Ambition
Rebuild a2MC into an exciting, innovative and sustainable growth company

7
Our strategy is designed to drive growth across multiple horizons
FY22
FY23-24
FY25-26
Stabilise and reset strategy
Full scale roll-out of
growth & other initiatives
Deliver “next wave” growth
from innovation and supply
chain transformation
Enablers
•Restore demand & supply balance
and attractive channel economics
•Stabilise EL IMF decline
•Commence CL in-market growth
initiative pilots
•Focus on new user recruitment and
Stage 4 penetration
•Invest in content generation and
always-on brand comms
•Launch new GB std. CL range and
roll-out distribution initiatives
•Innovate in EL IMF and increase
control of distribution
•Scale innovation in USA
•Innovate in ANZ core & adjacencies
•Implement MVM electrification
•Deliver more sustainable packaging
•Expand CL product portfolio with
additional registrations
•Scale adjacent categories
•Achieve profitability in USA and MVM
businesses
•Grow 2-3 new emerging markets
•Operationalise China supply capability
•Achieve meaningful progress on
Scope 1 & 2 GHG emissions reduction
•Refresh strategic priorities and
execution plan
•Review China brand positioning
•Ramp-up innovation focus
•Invest further in digital marketing and
E-comm capability
•Increase investment in brand
•Implement IT and data roadmap
•Create rolling innovation pipeline
•Leverage next level scientific research
Strategic
priorities
Explore opportunities to accelerate strategy execution through M&A, JV and alliances

8
We are focused on five key non-financial measures of success over time
1
People
Safety TRIFR <10
with continuous
improvement
Engagement >80%
Diversity and
inclusion rated >4
out of 5 by team
Sustainability
GHG emissions
reduction
-Scope 1+2 net zero
by 2030
-Scope 3 net zero
by 2040
100% completion of
Farm Environmental
Plans and Certified
Animal Welfare
Programs
100% reusable,
recyclable or
compostable
packaging with 50%
average recycled
content
Brand health
China unprompted
awareness >25%
Australian fresh milk
loyalty >40%
USA household
penetration >10%
in premium milk
Market share
Top-5 CL IMF player
with share >5%
Leading EL IMF
range with share
>25%
Australian fresh milk
share >15%
USA premium milk
share >5%
Incremental $100m
revenue from existing
and new emerging
markets
Innovation
Access to ≥3 CL
registrations
Expanded EL IMF
portfolio
Incremental $200m in
revenue from dairy
and other nutritionals
to China
>25% of sales from
new products in
Australia and USA
23
4
5
Source: Management estimates

9
Defining a specific timeline to achieve our financial goals is challenging
•The pace and degree of change in the China IMF market over the past 12 months is truly unprecedented –
including from the prolonged COVID-19 impact and the reduction in the number of Chinese newborns
•There are key macro uncertainties impacting the future outlook, including:
‒How the China birth rate will evolve and the impact policy changes may have on this
‒The extent and pace of recovery in cross-border trade post COVID-19
‒How the competitive landscape will evolve in China including the outcome of the new GB registration process
‒The extent and pace of change in consumer product and channel preferences
‒How the China regulatory framework and international relations may evolve and impact trade
•Because of these uncertainties and the range of potential outcomes, it is very difficult to define future state
targets and when they will be achieved –the path is also unlikely to be linear
•However, we remain confident that with our unique brand proposition, coupled with our team’s ability to execute,
we are well placed to rebuild a2MC into an exciting, innovative and sustainable growth company

10
Growth in milk and
adjacent categories
Notwithstanding, we have an ambition to grow sales to over NZD$2 billion
Medium-term indicative sales ambition (≥ 5 years)EBITDA margin dynamics
•Indicative range
‒IMF sales, particularly EL, key driver of upside/downside risk
‒Target margins probably in the “teens” in the medium term
due to expected market conditions, investment and innovation
‒Target margins possibly in the “low-to-mid 20s” in the
medium-to-long term subject to higher than expected market
recovery, EL channel growth and share gains
•Key accretion drivers
‒Operational leverage impact of share growth, cross-border
trade recovery and/or increase in China birth rate
‒Mix impact on delivered margin (EL > CL > ANZ > USA)
‒Mitigation of USA losses and path to profitability
‒Nutritionalsinsourcing margin capture by MVM
‒Pricing, promotional activity, trading terms and FX
•Key dilution pressures
‒Operational de-leverage impact of China IMF market
headwinds and regulatory risks
‒Mix impact on delivered margin (EL > CL > ANZ > USA)
‒Increasing brand reinvestment rate and margin pressure in
China as competition intensifies
‒Innovation, reformulation and FX impact on margin
‒Supply chain transformation period
‒Investment in capability and sustainability
Growth in existing and
2-3 new markets
Growth in other dairy and
nutritional products to
China through innovation
and distribution growth
Regain half of EL revenue
decline from FY20 to FY21
through channel recovery post
COVID-19 and execution of EL
strategy to gain share
Double CL share
from c.2.5% to 5%
Source: Management estimates
Wide range of outcomes
possible with significant
upside and downside risk

11
Key messages
2 0 2 1 I N V E S T O R D A Y
•The market landscape has experienced unprecedented
change over the past 12 months, requiring us to adapt
•As a result, we have adapted our growth strategy to
achieve the full potential of our business
•Importantly, our brand is strong, we have a relatively small
share in China IMF and significant opportunity to capture
•We have reorganised to prioritise our most important
growth levers and have a clear plan to execute
•We have a great leadership team and pioneering culture
to lead the execution

12
Q U E S T I O N S ?