Communication to Fonterra farmers

21 July 2022


Communication to Fonterra farmers

The attached communication was provided to Fonterra Co-operative Group Limited farmers by the
Chairman, Peter McBride, on 21 July 2022.

-ENDS-.

For further information contact:

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

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CHAIRMAN’S EMAIL
21 JULY 2022
Subject: Share buy-back update

Dear [name],
A short note from me to confirm that the Co-op has purchased some shares in the Fonterra Shareholders’
Market (FSM) as part of the up to $50 million share buy-back we announced on 8 June.
Yesterday we purchased a total of 21,900 shares for an average price of $2.6968.
Having acquired these shares, they will now be cancelled, which means the Co-op’s future earnings will be
distributed amongst a lower number of shares.
Each time we purchase shares as part of this buy-back programme, we will report how many shares we buy
and the average price the day after, so you will know what we have bought. However, after today that
information will be communicated on the NZX and via the My Co-op app.
In making the decision to buy-back shares, we have considered prevailing market dynamics and prices in
the FSM, alongside the Co-op's strategy and overall business performance. At this price level, we consider
there is a value opportunity for the Co-op as part of our portfolio of investment opportunities.
You can read more details on the buy-back here.
We remind shareholders that, even though share compliance obligations remain on hold until at least 6
months after the new structure is effective, shareholders can still buy or sell shares within Fonterra’s current
constitutional limits (which is 1x – 2x a supplying shareholders’ three-season average milk supply).
You should seek advice from your financial advisor, accountant, lawyer, or rural professional before making
any decisions.

Peter