FY22 Results and Annual 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 12 months to 30 June 2022
Previous Reporting Period 12 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$ 1,446,229 19.8%
Total Revenue $ 1,446,229 19.8%
Net profit/(loss) from
continuing operations
$ 122,624 52.0%
Total net profit/(loss) $ 122,624 52.0%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the year
ended 30 June 2022
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date No applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$ 1.42 $1.37
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
Annual Report for the year ended 30 June 2022
Full Year Results Commentary
Full Year Results Presentation

Authority for this announcement
Name of person

authorised
to make this announcement
Jaron McVicar
Contact person for this
announcement
Jaron McVicar
Contact phone number +61 2 9697 7000
Contact email address Jaron.McVicar@a2milk.com
Date of release through MAP 29 August 2022

Audited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M


29 August 2022
NZX/ASX Market Release


FY22 Results
The a2 Milk Company delivers double digit growth and announces share buyback

The a2 Milk Company (“the Company”, “a2MC”) today announces that the Company has made significant progress in
implementing its refreshed growth strategy and improving performance during FY22
1
. More specifically, the:
1. Inventory management actions taken last calendar year to address excess infant milk formula (IMF) inventory have
proven effective with channel inventory at target levels, product freshness amongst the best in the industry and
improved market pricing
2. Refreshed growth strategy communicated to the market in October 2021 which focused on capturing the full potential
of the China market opportunity is having an impact achieving new highs in brand health metrics and record market
shares
3. Full year result for FY22 is in line with the Company’s expectations as outlined on 21 February 2022, delivering double
digit revenue and earnings growth despite challenging market conditions driven by the refreshed growth strategy and
improved execution
4. Outlook for the business in FY23 is positive with continued revenue and earnings growth expected, and the Company
is on track to deliver on its medium-term financial and non-financial ambitions communicated to the market at its
Investor Day in October 2021
As a result of the above, and considering its strong balance sheet position, the Company intends to execute an on-market
share buyback of up to $150 million. An on-market share buyback is considered to be the most appropriate form of capital
management at this time.
The Board and Executive Leadership Team would like to express their appreciation to the Company’s supportive shareholders,
talented team, valued farmers, loyal customers/distributors, committed suppliers and strategic partners in China, for their
collective support during a challenging period overcoming COVID-19 related disruption and market headwinds.
Financial highlights
2

• Revenue growth of 19.8% to $1,446.2 million (11.2% ex-MVM
3
) with 2H22 up 18.9% on 1H22 (15.7% ex-MVM)
- China label and English label IMF sales up 12.2% and 11.6% respectively
- ANZ and USA liquid milk sales up 1.8% and 30.2% respectively
• Earnings before interest, tax, depreciation and amortisation (EBITDA
4
) up 59.0% to $196.2 million. EBITDA to sales
margin increased to 13.6% (16.1% ex-MVM) compared to 10.2% in FY21
• Net profit after tax (NPAT) including amounts attributable to non-controlling interests up 42.3% to $114.7 million with
$122.6 million attributable to owners of the Company
5

• Earnings per share up 51.8% to 16.5 cents in FY22 compared to 10.9 cents in FY21
• Strong balance sheet with closing net cash
6
of $816.5 million with operational cash conversion
7
of 114% during the year
• Positive outlook for FY23 with high single digit revenue growth and EBITDA margin improvement expected (see Outlook
below for further detail, including key industry and business risks)


1
All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ending 30 June.
2
All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3
Excluding the impact of consolidating Mataura Valley Milk (MVM) into the Group result, which was acquired in July 2021.
4
EBITDA is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that in combination with
GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business. A
reconciliation of EBITDA to net profit after tax is shown in the Company’s FY22 Investor Presentation (slide 55) and Other Information in the Annual Report
(page 126) dated 28 August 2022.
5
The non-controlling interest represents China Animal Husbandry Group’s 25% interest in MVM.
6
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
7
Operational cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.

2
Operational highlights
• Brand health metrics reached new highs across the business with total a2MC IMF spontaneous brand awareness in
China increasing significantly from 16% to 21% following a 36.3% increase in marketing investment
• Record market shares achieved in China label IMF in mother and baby stores (MBS) and domestic online (DOL), with
English label IMF market share in cross border e-commerce (CBEC) increasing in 2H22 and offline-to-online (O2O) over
the full year. Record market shares also achieved in Australia and USA milk
• Deliberate shift in distribution of English label IMF to more transparent, performance-based and exclusive partners
progressing well with significantly improved share of voice in the Daigou channel
• Increased focus on innovation resulted in the highest number of new product launches in the Company’s history: a2
Milk® Half & Half, HERSHEY’S a2 Milk®, a2 Milk® UHT, a2 Milk® Cream on Top, a2 Milk® Lactose Free and refreshed a2
Platinum® English label IMF
• Completion of Mataura Valley Milk (MVM) acquisition with China Animal Husbandry Group with successful integration
and commencement of a2 Milk® powder manufacturing underway
• Significant increase in sustainability targets, initiatives and impact in many areas of the business, including committing
to New Zealand’s first high pressure electrode boiler supplied by 100% renewable energy at the MVM site
CEO commentary
The a2 Milk Company’s Managing Director and CEO, David Bortolussi said:
• “It was a successful year for The a2 Milk Company returning to double digit growth in revenue and earnings despite
significant headwinds.
• “We are pleased with the progress that has been made in stabilising the business, refreshing our strategy and improving
our execution.
• “Our significant increase in marketing investment has driven further gains in brand health metrics and record market
shares delivering strong growth in our China infant milk formula business.
• “We are pleased with the transition of our English label product distribution to more transparent, performance-based
and exclusive partners. We remain committed to the Daigou channel and have increased our direct engagement and
marketing support with more Daigou supporting the brand.
• “We have maintained our brand leadership position in liquid milk in Australia with increased loyalty and household
penetration, and our USA milk business grew strongly during the year driven by innovation.
• “Our on-market buyback of up to $150 million demonstrates effective capital management and the improved
confidence we have in our strategy, execution and outlook.”
Group financial performance
8,9

The Company’s revenue for FY22 was up 19.8% driven by strong growth in the China & Other Asia and USA segments, along
with incremental sales from the first-time inclusion of MVM. This was partially offset by lower IMF sales in ANZ due to
deliberate changes to the Company’s English label IMF route-to-market structure, resulting in a shift in sales towards the China
& Other Asia segment. 2H22 revenue growth also reflects actions taken by the Company in 2H21 and 1H22 to address excess
IMF channel inventory, execution of the Company’s growth strategy, strong China label IMF consumer demand in part due to
COVID-19 related lockdowns, as well as pricing and favourable foreign exchange.
Gross margin percentage
10
of 46.0% was up 3.7ppts and reflects the cycling of prior year stock write-downs, price increases,
reduced trade spend and favourable foreign exchange; partially offset by higher raw material and logistics costs which were
impacted by COVID-19 and the inclusion of MVM. Gross margin percentage excluding MVM was 50.9% compared to 42.3% in
FY21 which was significantly impacted by stock write-downs.
EBITDA increased by 59.0% to $196.2 million primarily reflecting higher revenue and gross margin. EBITDA growth came
notwithstanding a 36.3% increase in marketing spend and the anticipated uplift in Administrative and Other Expenses, which
have increased by 15.6% due to capability investment, increase in employee incentive costs (low base last year), and higher
professional services fees and insurance costs. COVID-19 adversely impacted in-market freight rates and distribution costs,
particularly in the USA business. Together, these factors resulted in an EBITDA margin of 13.6% (16.1% ex-MVM).
Net profit after tax, including amounts attributable to the non-controlling interest was $114.7 million, an increase of 42.3%.
Depreciation and amortisation was $18.9 million, net interest income was similar to prior period and the effective tax rate of
the Group was 36.7%. NPAT attributable to owners of the Company was $122.6 million.


8
All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
9
All comparisons are with the 12 months ended 30 June 2021 (FY21), unless otherwise stated.
10
Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.

3
The balance sheet remains in a strong position with closing cash and term deposits of $887.3 million. The higher cash balance
reflects the cash generated during the year offset by $213.7 million of capital invested in the acquisition of MVM (net of cash
acquired). As a result of the ownership structure of MVM, the Group is now consolidating MVM’s financial debt which was
$70.8 million at period end (excluding $36.2 million of subordinated non-current shareholder loans), and therefore, the
Company had net cash
11
of $816.5 million. Inventory at the end of the period was $140.0 million, higher than at the end of
FY21, mainly due to the inclusion of MVM. The Company’s IMF inventory levels were lower than planned at year-end due to
COVID-19 impacts on its China label supply chain.
Operating cash flow was $203.8 million. Excluding interest and tax, this represented operational cash conversion of 114%
12

which was relatively high during the period. This was mainly due to an increase in trade and other payables related to the
timing of 4Q22 brand investment and inventory orders, combined with delayed invoicing and payments processing in China
due to COVID-19 related lockdown impacts.
China IMF market update
13

The number of births in China decreased by 11.5% in 2021 to 10.6 million
14
and is expected to decline in 2022. This decline has
been partially offset by an increase in household penetration and consumption within the IMF market.
In volume terms, the overall IMF market in China decreased by 4.3%in FY22, as several years of declining newborns had a
cumulative impact on Stages 2 and 3, partially offset by increasing household penetration particularly in relation to growth in
Stage 4. Market value also decreased by 3.1% in FY22 as growth in average market prices was not enough to offset volume
declines. Market price growth of 1.3%, driven both by premiumisation (consumers trading-up and new product innovation)
and channel mix shift to higher-priced China label channels, was less than in previous years and was also impacted by
increasing promotion frequency, albeit at reduced discount levels.
The market shift towards China label product continued compared to English label product, although the extent of the shift this
year was less pronounced than last year. In FY22, China label product accounted for 85% of the market (compared to 84% in
FY21) and English label product accounted for 15% (compared to 16% in FY21). The shift towards China label in the previous
year was more significant (7% pts) due to significant COVID-19 related disruption and associated demand and supply volatility.
Growth rates varied significantly between Key&A and BCD cities, with Key&A value sales decreasing by 7.1% whilst in BCD cities
market value was broadly flat in line with the divergence of birth rates across city tiers.
Within China label channels, several market dynamics are supporting a2MC’s growth, including a continued mix shift to the
ultra-premium segment (where the Company’s China label product competes), more rapid growth of the A2 protein segment,
increasing brand concentration towards market leading brands (with a2 至初®

remaining one of the few international brands
continuing to grow market share) and the continued shift to online channels, where international brands have historically
outperformed local brands.
English label channels are showing signs of stabilisation, with the rate of decline in overall English label value sales (down 9%)
reducing significantly compared to FY21 (down 33%) and sales growing by 1.6% in BCD cities in 2H22. Within English label
channels, there is a mix shift from Daigou to CBEC and O2O channels.
Despite challenging market dynamics, a2MC’s growth in FY22 in China label and English label IMF was encouraging, and the
Company has a significant opportunity to grow market value share from its current levels of 4-5%.
a2MC regional performance
1. China & Other Asia
China & Other Asia revenue of $726.5 million was up 24.5%, with EBITDA of $145.1 million up 92.0%. Growth was driven by
2H22 performance as the Company ramped-up execution of its growth strategy supported by strong China label IMF consumer
demand in part due to COVID-19 related lockdowns, as well as favourable foreign exchange. The increase in EBITDA margin
from 13.0% to 20.0% reflected higher gross margin during the period mainly due to cycling the impact of stock write downs last
year and the operational leverage benefit of higher sales partially offset by higher marketing investment.
There were further gains in brand health metrics following the significant increase in marketing investment in 2H22. Based on
the Company’s most recent tracking (Jul-22 compared to Jan-22), spontaneous awareness for total a2MC IMF (ie China label
and English label) increased from 16% to 21%, the rate of consumers who have ever trialled the Company’s IMF products
increased from 19% to 20% and the percentage of consumers who claim to use the Company’s IMF most often increased from
12% to 13%. Within this, China label prompted brand awareness improved from 45% to 50% and English label prompted brand
awareness improved from 27% to 29%.

11
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
12
Operational cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
13
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities); unless otherwise stated.
14
Source: China National Bureau of Statistics.

4
The 2H22 campaign continued to build on the execution themes from the 1H22 campaign with more balanced functional and
emotional brand messaging, more precise targeting of consumers, greater use of health care professional marketing, increased
social seeding and stronger integration across all channels and of both labels.
China label IMF
Sales for a2 至初® China label IMF of $437.6 million were achieved, representing an increase of 12.2%. As referred to in the
Company’s announcement on 21 February 2022, the Company restricted sales to distributors in 1H22 (particularly in 4Q21 and
1Q22) to rebalance channel inventory levels and improve channel dynamics. As a result of this, sales in 1H22 were down, but
were up significantly during 2H22. Consumer demand for a2 至初® over the year was strong and the Company increased
share in store and online, and across all stages.
a2MC increased offline numeric and weighted distribution as well as same store sales, resulting in Key&A and BCD cities share
increases during the year. Offline distribution increased to 26.5k stores at the end of June 2022 from 22.8k at the end of June
2021
15
. The Company has expanded its focus from building share in national key accounts to also pursuing regional key accounts,
as well as targeting greater penetration in BCD cities and developing new strategies for accelerated growth in certain high-
potential provinces. As measured by Nielsen
16
, retail sales for the MBS channel by value were down 2% in FY22
17
. a2MC’s market
value share in MBS increased to 3.0% at the end of June 2022 versus 2.2% at the end of June 2021, and a2 至初® was one of
the few international brands that gained share in the period.
Accelerating the Company’s online growth is a strategic priority for China label IMF and performance in DOL is a key measure
of success. As measured by Smart Path, retail sales for DOL by value were up 4% for FY22
18
. a2MC’s market value share in DOL
increased to 2.5% at the end of June 2022 versus 2.0% at the end of June 2021.
English label IMF (CBEC)
a2 Platinum® English and other label IMF sales of $255.8 million were up 53.3%. The result reflected improved channel
economics and demand during the period, price increases, favourable foreign exchange and reduced discounting during the
“6/18” and “11/11” online sales periods in China.
Strong revenue growth in CBEC also reflects execution of the Company’s strategy to simplify and delayer its distribution
network to move closer to its consumers, which has reduced the extent of indirect unauthorised cross-channel sales from ANZ
resellers to CBEC participants. This has resulted in a greater proportion of those sales now being supplied by authorised CBEC
distribution partners, increasing reported revenue to CBEC (refer ANZ section below).
a2MC continued to prioritise overall channel economics through tightly controlled inventory levels and promotional activity in
CBEC. As a result, and as expected, English label sales during key promotional events in 1H22 were slightly down on last year
but recovered in 2H22 with improved market pricing across CBEC platforms and reseller channels, enhancing overall channel
economics. Notwithstanding these actions, the Company’s platform rankings were maintained or improved during the period.
Similar to DOL, the Company is focused on CBEC online growth and building digital marketing and e-commerce capability to
improve its execution which is having an impact, particularly on new user recruitment and late-stage retention. As measured
by Smart Path, retail sales by value for the CBEC channel were down 2% for the period
19
. a2MC’s market value share in CBEC
was 19.5% at the end of June 2022 versus 21.1% at June 2021, with market share improving in 2H22.
Liquid milk and other nutritional products
Sales of liquid milk in China & Other Asia were up 34.4% to $11.1 million and revenue from other nutritional products was also
up 19.7% to $22.1 million. This reflected progress in executing against adjacent category growth opportunities, including the
launch of UHT in China. These results were achieved notwithstanding significant supply chain disruption in liquid milk during
the period due to COVID-19 impacts on manufacturing and logistics.
2. Australia and New Zealand (ANZ)
ANZ segment revenue of $532.7 million was down 4.8%, with EBITDA of $173.2 million up 16.4%. Lower revenue was a direct
consequence of the Company restructuring its English label IMF route-to-market and reflected a mix shift in English label IMF
sales from an existing reseller to CBEC distribution partners. The shift in the English label route-to-market is a constructive
change and an evolution for the Company in the long term to progress its ambition to have the number one English label
product range in China. Higher EBITDA was driven mainly by cycling prior year inventory write-downs, pricing and favourable
foreign exchange, partially offset by higher cost of goods sold.


15
a2MC internal data tracking of stores with active sales in the past 12 months.
16
Note that during the period, Nielsen expanded its sample store coverage to enhance channel representativeness, and historical data has been restated to
reflect this enhancement.
17
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). 12-month rolling share. FY22 versus FY21.
18
Smart Path China IMF online market tracking: domestic online platform sales (by value). 12-month rolling share. FY22 versus FY21.
19
Smart Path China IMF online market tracking: for CBEC only retail sales (by value). 12-month rolling share. FY22 versus FY21.

5
IMF resellers and retail
IMF sales in ANZ decreased 7.9% to $328.8 million. In addition to the channel mix shift from ANZ resellers to CBEC, customer
mix within ANZ resellers also shifted significantly during the period with some resellers securing additional volume. This
managed shift followed an in-depth review of the Company’s reseller route-to-market which has resulted in improved visibility
and control of channels to market. The lower reseller sales due to the channel mix shift were partially offset by pricing
adjustments to address pricing relativities and less promotional activity on CBEC in the interests of maintaining a healthy
ecosystem.
Following this route-to-market review and consistent with the Company’s growth strategy, management has focused on
developing more transparent, performance-based, exclusive and channel compliant distribution partnerships during the
period. As a result, significant volume transitioned from the Company’s previous largest reseller to CBEC distributors (ANZ
volumes ultimately on-sold to CBEC platforms were re-routed through authorised CBEC distributors) and to other existing ANZ
reseller partners during the period. Supply continues to be allocated carefully to all reseller partners to ensure appropriate
stock levels are maintained in the channel.
Although market share reduced in the Daigou channel during the period, the rate of decline improved in 2H22 following the
change in distribution partners. Kantar data
20
indicates consumer sales in the Daigou channel were down 17% for FY22
21
and
that a2MC’s Daigou market share declined to 18.7% at the end of June 2022 versus 22.2% at the end of June 2021. However,
a2MC’s Daigou market share decreased by approximately 2% pts in 2H21 and 1H22 but declined by less than 1% in 2H22
following the change.
The ANZ reseller channel is an important channel, particularly in relation to new user recruitment. In addition to changing
distribution partners, the Company stepped up its support for the channel through more direct engagement with resellers and
Daigou, production of more digital marketing content and conducting Daigou sales events resulting in increased share of voice
in the channel which is an important leading indicator of share growth. To enable this increased level of activity, the Company
invested in developing its reseller and Daigou trade marketing capability during the period.
An initiative to increase distribution in the O2O channel commenced during the period with growth experienced during FY22. A
key strategic focus was working with partners to increase store numbers through the O2O channel and drive new user
recruitment. Kantar data indicates consumer sales in the O2O market grew 26%
22
for FY22 and that a2MC’s O2O market share
increased to 18.6% by the end of June 2022 versus 17.5% at the end of June 2021.
As part of the Company’s strategic priority to drive growth through innovation, the Company refreshed its English label IMF
product range and packaging in 1Q23 which has gained additional distribution in retail.
Liquid milk
Australian liquid milk sales increased marginally by 1.8% to $172.0 million, reflecting volume growth and price increases
implemented during the year in response to higher raw milk prices and other input and logistics costs, as well as favourable
foreign exchange. This was partially offset by easing COVID-19 restrictions in 2H22 which negatively impacted in-home
consumption levels.
The Company maintained its brand leadership during the year with increased loyalty and household penetration. Brand health
metrics improved with awareness and trial increasing. a2MC achieved a value share of 12.4% at the end of June 2022
23
versus
12.2% at the end of June 2021 declining marginally in 2H22 as lockdowns eased. Market share gains were achieved in all states
except Western Australia, with new record value shares in New South Wales and Victoria. Pleasingly, three a2 Milk® products
achieved rankings in the top ten products in the dairy category in Grocery.
a2 Milk® UHT was launched during 3Q22 and is now available in major supermarket chains across Australia. This addition to
the Australian liquid milk portfolio provides loyal consumers with a shelf-stable pantry backup or camping supply of their
favourite a2 Milk®. a2 Milk® Cream on Top was also launched during 2H22 and is now available in 350 stores across Australia.
Post year-end, the Company launched a new a2 Milk® Lactose Free range for consumers that are lactose intolerant enabling all
consumers to enjoy the benefits of a2 Milk® (noting that individuals can be A1 protein and/or lactose intolerant). Lactose free
milk is a significant category in Australia with retail sales value greater than $130 million. The Company has secured
arrangements for distribution of the range with major supermarket retailers in Australia, supported by a targeted marketing
campaign. The a2 Milk® UHT, a2 Milk® Cream on Top and recent a2 Milk® Lactose Free launches are consistent with the
Company’s strategy of ramping up innovation to drive growth.
Other nutritional products
Revenue in other nutritional products was also impacted by the channel mix shift to CBEC, and was slightly below prior year,
declining 5.2% to $31.9 million.

20
Kantar data based on a panel of 9,000 consumers covering 0-6 year olds and only seeks to project ~40% of the population.
21
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities).
22
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities)
23
IRI Australian Grocery Weighted Scan 12-months ending 30 June 2022.

6
3. North America
USA revenue increased 30.0% to $82.7 million while EBITDA decreased 9.4% resulting in a loss of $36.7 million. The higher
revenue was driven by growth in core liquid milk, the introduction of new products, reduced trade spend and favourable
foreign exchange. Sales growth in core liquid milk was primarily driven by growth in the Grocery and Mass channels of trade
which grew 38% during the period, partially offset by reduced Club channel distribution.
Sales growth was mainly through increased same store sales with only modest increases in distribution from 26.8k stores at
the end of June 2021 to 27.4k stores at the end of June 2022
24
. Two new products were launched during 1H22 – HERSHEY’S a2
Milk® and a2 Milk® Half and Half – achieving higher than expected listings in trade. A combination of growth in the core and
innovation increased a2MC’s market value share in the premium milk category for the Grocery channel from 1.8% in June 2021
to 2.1% in June 2022
25
. Key marketing and public relations activities continued which resulted in improvements in brand
awareness and household penetration.
The increased EBITDA loss was mainly due to a significant increase in freight costs throughout the year, coupled with fuel
surcharges from higher diesel prices and higher raw milk costs in 2H22, partly offset by price increases and trade spend
reductions. Marketing and SG&A costs were relatively flat in combination. EBITDA losses were also higher due to foreign
exchange movements. Accelerating the path to profitability in the USA by FY25/FY26 remains a key strategic focus and the
Company expects to make meaningful progress on this during the year ahead.
4. Mataura Valley Milk
MVM revenue of $104.4 million
26
and an EBITDA loss of $18.8 million were recorded for the eleven months of a2MC’s
ownership during FY22. The EBITDA loss reflects the current production mix with MVM primarily selling lower value milk
powders on the commodity market. The result was slightly better than expected due to favourable foreign exchange and
Global Dairy Trade (GDT) pricing partly offset by higher raw milk costs during the period.
a2MC’s acquisition of a 75% interest in MVM is strategically important as it provides the opportunity to participate in
nutritional products manufacturing and the potential to pursue additional China label registrations and product innovation
opportunities in the future. It strengthens relationships with key strategic partners in China, achieves supplier and geographic
diversification, reduces risk across a2MC’s IMF and other nutritionals businesses, and over time will offer access to insourced
manufacturing margins.
Accelerating MVM’s path to profitability by FY26 or earlier is a key strategic focus. To improve profitability, the Company
commenced manufacturing a2 Milk® Full cream milk powder at MVM during 1H22, which was previously manufactured by
Synlait Milk Limited (Synlait). The Company is working on in-sourcing a2 Milk® Skim milk powder and certain existing English
label IMF product from Synlait, developing future product innovation at the facility and exploring additional third-party
customer opportunities. To complement this and facilitate future China label registration applications, MVM has commenced
planning for the installation of a laboratory and blending and canning capability at the site.
Growth strategy update
At a2MC’s Investor Day in October 2021, the Company announced its refreshed growth strategy which was adapted to the
rapidly changing IMF market dynamics in China. At the same time, the Company also outlined its medium-term indicative sales
and EBITDA margin ambition. In 2H22 the Company focused on implementing its strategic priorities and related initiatives,
including a material increase in brand investment. Significant early progress has been made against the Company’s five
strategic initiatives.
1. Invest in people and planet leadership
The Company refreshed its purpose “We pioneer the future of Dairy for good” and vision “An A1-free world where Dairy
nourishes all people and our planet” which highlights the positive impact the Company wants to have on the world, inspiring
its team and partners. New leadership and culture development programmes were launched, and team engagement, net
promoter and diversity and inclusion surveys were completed to benchmark progress. Investment was made in organisational
capability expansion, particularly in China with a focus on digital marketing and e-commerce targeting DOL, CBEC and O2O
growth opportunities. More ambitious sustainability targets were set, and related initiatives launched, including commitments
in GHG emissions reduction, farm environmental plans and animal welfare, and for the transition to more sustainable
packaging. Importantly, a2MC announced a significant investment to reduce GHG emissions through the MVM boiler
electrification, sourced from 100% renewable power, and to support Synlait’s biomass boiler conversion.


24
SPINS retail sales data as of 30 June 2022 and internal counts
25
SPINS data for the Grocery channel only for the 52 weeks ending 30 June 2022 and 30 June 2021.
26
Revenue excluding intercompany sales.

7
2. Capture full potential in China IMF
The Company’s most critical business development focus is to ensure it delivers its full potential in China IMF. The Company
completed its brand positioning review, significantly increased China marketing investment, invested in digital content
generation and executed integrated marketing campaigns with a more targeted mix to increase impact. In terms of offline
sales, the Company commenced China label in-market growth pilots with a mix of above-the-line and below-the-line brand and
sales activation initiatives, increased MBS distribution (particularly in lower tier cities) and increased same store sales.
Investment was also made in growing DOL and CBEC sales and developing the O2O model in key accounts. The English label
route-to-market review was completed and actioned, as well as investing in Daigou marketing support and engagement.
3. Ramp-up product innovation
Liquid milk and other nutritional products grew significantly in China & Other Asia demonstrating progress in executing against
adjacent growth opportunities outside of IMF. The Company supported Synlait to complete and submit a2MC’s China label IMF
new GB registration dossiers for an upgraded formulation. The Company launched UHT, Cream on Top, Lactose free, Half &
Half and HERSHEY’S a2 Milk® products in liquid milk during the year and refreshed English label IMF product post year-end.
4. Transform the supply chain
Following completion of the MVM acquisition, the Company commenced planning for laboratory and blending and canning
capability at MVM with third-party support and accelerated efforts to explore additional opportunities relating to China label
market access in New Zealand and China. The Company progressed capacity expansion initiatives at its Smeaton Grange and
Kyabram manufacturing facilities.
5. Accelerate path to profitability for USA and MVM
USA top-line growth was accelerated through new product launches, reduced trade spend and price increases, which also
improved gross margins. The Company accelerated plans to insource a2 Milk® branded product manufacturing from Synlait
and develop third-party business at MVM to improve capacity utilisation.
China label new GB registration update
a2MC and Synlait are working closely together in relation to the new GB registration process by China’s State Administration
for Market Regulation (SAMR) for a2MC’s China label IMF product, a2 至初®. China label product manufactured after 21
February 2023 needs to comply with the new GB standard.
While the Company’s new GB registration process is progressing, timing is uncertain and subject to SAMR approval. However,
it is noted that the Ministry for Primary Industries (MPI) has co-operation arrangements in place with SAMR which, amongst
other things, positions New Zealand well in relation to China registration processes.
a2MC’s current China label IMF product registration expires in late September 2022. a2MC and Synlait have applied for the
renewal of this existing registration which the Company anticipates receiving in September consistent with SAMR’s practice
with other brands in similar situations. Such renewal would in effect allow Synlait to manufacture a2MC’s current registered
product up until the end of the grace period on 21 February 2023 when transition to the new GB standard is required. The
current registered product manufactured up until this date is allowed to be sold in market after that date. This period through
to 21 February 2023 is sometimes referred to as an “extension” of the existing registration.
In all circumstances, a2MC fully respects SAMR’s governance and timing of this important registration process.
On-market share buyback
The Company announces that it intends to undertake a capital return of up to $150 million through an on-market share
buyback. The buyback is expected to commence towards the end of September and could run for up to 12 months.
a2MC regularly assesses its balance sheet position in order to deliver the optimum structure to enhance shareholder value in
line with the Company’s strategy and capital allocation framework. This framework prioritises investment in growth initiatives
and maintaining balance sheet flexibility ahead of capital returns to shareholders. Where there is capital which is surplus to
achieving these priorities a2MC makes a disciplined assessment of the potential to return funds to shareholders.
The Company’s balance sheet is in a strong position that provides the capacity to distribute up to $150 million to shareholders,
with the most appropriate method being an on-market share buyback. With a closing net cash balance
27
in FY22 of $816.5
million, there is sufficient capital reserve to fund investment opportunities, maintain an appropriate cash buffer as well as
return surplus capital to shareholders.
The buyback is subject to market conditions, a2MC’s prevailing share price and all other relevant considerations. a2MC
reserves the right to vary, suspend without notice, or terminate the on-market buyback at any time.
Further details in relation to the share buyback are provided in the separate Company announcement also released to the
market on 29 August 2022.

27
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.

8
Board and Management renewal
The Board is continuing its programme of renewal and is focused on increasing its levels of China market, IMF category and
manufacturing experience. In March 2022, Sandra Yu was appointed to the Board. Sandra is a highly regarded company
director and has extensive experience in the IMF market in China as a former head of Mead Johnson Nutrition’s Greater China
business. The Company also announced today the appointment of David Wang to the Board as a non-executive director.
David’s appointment adds further China market and manufacturing expertise which will be an invaluable asset with the recent
acquisition of MVM and the Company’s strategy to develop its supply chain capability in New Zealand and China.
Consistent with corporate governance best practice, the Company’s Deputy Chair, Julia Hoare, who joined the Board in
November 2013, has advised of her intention to step down as a Director after the Company has delivered its FY23 interim
results in February 2023. A process will shortly commence to identify a suitable replacement director that ensures the Board
maintains an appropriate balance of skills, knowledge and experience.
During the year, the Company announced a number of changes to its Executive Leadership Team. Yohan Senaratne was
appointed as Executive General Manager – International, Kevin Bush was appointed as Executive General Manager – ANZ,
Bernard May joined as Chief Executive – MVM, Amanda Hart was appointed as Chief People & Culture Officer, and Edith Bailey
was appointed as Chief Marketing Officer. Lastly, the Company announced the resignation of its Chief Financial Officer, Race
Strauss, and the appointment of David Muscat who will join the Company as its Chief Financial Officer in October 2022. Prior to
David joining a2MC, Mark Sherwin has assumed the position of Interim Chief Financial Officer.
Outlook
Business and category
China label IMF sales are expected to be up in FY23 with significant growth in sales in 1H23 versus 1H22. At this stage, 2H23
sales growth is expected to be impacted by transition to the Company’s pending new GB registration. English label IMF sales
are expected to be up in FY23 with 1H23 sales expected to be broadly in line with 2H22 due to the impact of managing
transition to the refreshed a2 Platinum® range.
Australian liquid milk sales are expected to remain broadly in line with FY22, with reduced in-home consumption following the
easing of COVID-19 related lockdowns offset by growth through innovation. USA liquid milk sales are expected to be up in FY23
driven by continued growth in core liquid milk and innovation, and a significant improvement in EBITDA losses is expected.
MVM will be included in the Company’s result for 12 months compared with 11 months in FY22. MVM FY22 revenue (excluding
intercompany revenue) and EBITDA losses for the 12 months were $116.2 million and a loss of $23.2 million respectively
(unaudited). Revenue is expected to be down in FY23 compared to FY22 (12 months) due to increasing levels of insourcing and
lower GDT pricing, and EBITDA is expected to be broadly in line with FY22 (12 months).
Key financials
The Company is expecting high single digit revenue growth in FY23. 1H23 growth (on 1H22) is expected to be significantly
higher than 2H23 growth (on 2H22).
FY23 gross margin percentage is expected to be broadly in line with FY22, with cost of goods sold headwinds related to
increasing milk, ingredient and packaging costs offset by price increases, mix benefits and cost mitigation initiatives.
The Company will continue to increase its brand investment in FY23. Marketing spend will be skewed marginally towards 1H23
with a significant uplift versus 1H22 due to campaign timing.
A further uplift in Administration & Other expenses is expected, reflecting additional capability build, upweighted investment
in science, innovation and sustainability, and inflation impacts.
Overall, the Company is expecting EBITDA growth in FY23 and a modest improvement in EBITDA margin (% of sales). With the
marketing plan weighted to 1H23, the Company expects a slightly higher EBITDA margin in 2H23 versus 1H23.
Operational cash conversion is likely to be significantly lower in FY23 than FY22 mainly due to the reversal of working capital
timing benefits in FY22 and an increase in inventory levels.
The Company expects that capital expenditure will be approximately $25 million during FY23 mainly due to enhancements in
existing supply chain capacity and capability. This amount excludes any more substantive investment to develop the
Company’s New Zealand and China supply chain capability.
Industry and business risks
In addition to trading upside and downside, other risks include, but are not limited to, COVID-19 impacts on supply chain,
SAMR registration process timing, volume impact of price increases, foreign exchange movements, cross border trade, changes
in the regulatory environment, and commodity prices. These risks could materially impact expected revenue and earnings
outcomes.

9
Authorised for release by 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
Group Head of Investor Relations and Sustainability
M +61 412 944 577
david.akers@a2milk.com



Rebecca Culbertson
Investor Relations Manager
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 ANNUAL REPORT 2022
We pioneer the future of Dairy for good
2022
ANNUAL
REPORT

THE a2 MILK COMPANY
HAS MADE SIGNIFICANT
PROGRESS IN
IMPLEMENTING ITS
REFRESHED GROWTH
STRATEGY AND
IMPROVING PERFORMANCE
DURING FY22
PRODUCT
SEGMENT
REVENUE*
$265m
Liquid milk 10.4%
$1,022m
Infant nutrition
11.9%
$159m
Other 202.6%
OPERATING SEGMENT REVENUE
$726m
China and Other
Asia
24.5%
$533m
Australia and
New Zealand
4.8%
$83m
USA 30.0%
$104m
Mataura Valley Milk
GROUP
PERFORMANCE*
$1,4 46m
Revenue 19.8%
$123m
NPAT attributable
to owners of the
Company
52.0%
$196m
EBITDA 59.0%
16.49c
Earnings per share
51.8%
$204m
Operating cash flow
$817m
**
Net cash
* Includes MVM acquired during FY22.
** Including term deposits and borrowings, excluding
subordinated non-current shareholder loans.
2

THE
a2 MILK COMPANY ANNUAL REPORT 2022
CONTENTS
Chair’s letter 2
CEO’s year in review 4
Building a sustainable growth business 14
How we create value 16
Company overview 18
Strategy 22
Risks and opportunities 24
Goals 32
Corporate governance 51
Governance 52
Directors 56
Executive Leadership Team 58
Remuneration 60
Financial statements 65
Other information 118
1

CHAIR’S
LETTER
David Hearn
CHAIR’S LETTER
Dear Shareholder
On behalf of your Board, I am pleased to report a positive and
much improved performance for The a2 Milk Company in FY22
with almost all the business fundamentals showing strong
recovery throughout the year. This strong recovery means that we
exit FY22 with the business tracking positively and, as such, gives
us confidence that FY23 will show continued growth.
I concluded my letter in FY21 leaving you with two important
thoughts. The first was that whilst the issues that arose that
year were undoubtedly a challenge, the business remained at its
heart a robust, differentiated branded business with exceptionally
strong financial fundamentals.
The second was that I, and the Board, recognised the serious
challenges created by the market conditions in FY21 for you, our
shareholders and that the Board and the executive leadership
team (ELT) were determined to make back lost ground.
With that context, it is pleasing to provide a significantly more
positive update this year on the progress we have made as a
Company in stabilising the business and returning to growth,
confirming the underlying strength of the business to which I
referred last year.
It was important for us to recognise in FY21, in light of the world
changing as a result of the global pandemic, that we would
need to develop new and appropriate strategies to succeed in
the future, not by discarding the foundations on which we have
built past success, but by building on them and developing them
further to remain fit for purpose in this new environment.
During the year, the Board and the ELT together, completed a
holistic review of our market, brand, product and distribution
opportunities and we announced our refreshed growth strategy.
This refreshed growth strategy was in response to the rapidly
changing infant milk formula (IMF) market dynamics in China.
There is strong evidence at many levels in the FY22 result that
the plans developed from that strategy are already gaining
significant traction and that the significant investments we made
in restructuring our business, especially on the supply-side, have
definitely shown their worth.
This year’s performance proves that our confidence in the
underlying strength of the a2™ brand was well-founded, and
we invested a record amount for the Company in marketing,
continuing to build our brand and strengthen consumer loyalty.
Our refreshed growth strategy, increased brand investment and a
renewed inventory setting have resulted in a strong performance,
improved trajectory, clear market share gains and our strongest
brand health metrics recorded to date.
We have made significant advancements in delivering against

our strategic priorities this year by:
—Investing in people and planet leadership with meaningful

and impactful investments in these areas;
—Increasing our marketing investment in China significantly
towards capturing the full potential in the China IMF market;
—Ramping-up our product innovation efforts with a number of
new products launched and a pipeline developed for the next
few years and beyond;
—Transforming our supply chain, particularly with efforts to
expand our A1 protein free milk pool at Mataura Valley Milk
(MVM) and in accelerating efforts to explore opportunities
relating to China label market access and in-market supply
capability; and
—Putting plans in place to accelerate our path to profitability for
our USA and MVM businesses.
These plans will continue to evolve as we develop and grow and
we are pleased with the progress that has been made during
the year.
Complementing the work on our growth strategy and delivery
against our strategic priorities, we recently also refreshed our
purpose and vision. It is important for all businesses to know why
they exist and where they want to go. Our refreshed purpose, ‘We
pioneer the future of Dairy for good’ reflects the unique strengths
of the business, and our vision of ‘An A1-free world where Dairy
nourishes all people and our planet’ reflects the positive future
we want to help create. The combination of our purpose, vision
and strategy strengthens the foundations on which we will drive
further growth in the future.
2

THE
a2 MILK COMPANY ANNUAL REPORT 2022
Given the stabilisation and strength of the business, the
robustness of our balance sheet with net cash of $817 million
1
at
year end, an improved growth trajectory and more confidence
in our outlook, the Board intends to implement an on-market
buy-back programme of up to $150 million to effectively utilise
excess capital at this time. While we continue to prioritise growth
initiatives and will ensure we retain balance sheet strength and
flexibility, we have determined that a share buy-back programme
is an effective way to return capital to investors and reflects the
confidence the Board has in the outlook of the business.
On behalf of the Board, I would like to express my sincere
gratitude to David Bortolussi, our Managing Director and Chief
Executive Officer, for his leadership and impactful contribution
which has been immense through a particularly challenging time
for our Company. David has shown tremendous skill and tact
in navigating us through these challenges and setting us up for
further growth. At the ELT level, there have been changes during
the year including a number of new appointments. I extend my
thanks and gratitude to the whole ELT and every member of the
a2MC team in all of our regions for their contributions this year. In
particular, I would like to recognise the extraordinary efforts of our
teams and strategic partners in navigating the many supply chain
challenges which have been experienced globally in recent times.
Being able to maintain continuous supply of our New Zealand IMF
products into China required considerable collaboration, careful
planning and perseverance – a real team effort.
I would also like to thank my fellow Directors for their significant
contribution over the past year. The Board has also undergone
some renewal. In March this year, Sandra Yu was appointed to
the Board. Sandra is a highly regarded company director and has
extensive experience in the IMF market in China as a former head
of Mead Johnson Nutrition’s Greater China business. Furthermore,
David Wang will join the Board as a non-executive director in
September. David’s appointment will add further China and
manufacturing expertise which will be an invaluable asset as we
continue to transform our supply chain in New Zealand and China.
After nearly nine years of exceptional contribution to the
Board, and consistent with corporate governance best practice,
Julia Hoare, our Deputy Chair, has announced her intention to step
down following the release of our FY23 interim results. The Board
continues to be active in considering renewal and there are plans
in place to undertake additional renewal over the next few years.
Your Board and the ELT is committed to our purpose and vision,
we have a refreshed strategy in place and our execution against
those plans is gaining increased traction as every month passes.
We believe in the science that underpins our products and are
investing behind our brand in a focussed and meaningful way.
Furthermore, having regrouped and stabilised the business,
our performance is stronger and our outlook improved. We did
not find ourselves here by chance, and indeed several difficult
decisions needed to be made in FY21 to get us here. However,
those decisions are proving to have been the right ones and we
are pleased to be back on track.
Finally, I would like to thank you, our shareholders, for your
continued support for our Company and look forward to updating
you at our annual shareholders’ meeting in November.
In the meantime, may I take this opportunity to wish you and your
family the best of health.
Yours faithfully,
David Hearn
Chair
28 August 2022
“ This year’s performance proves
that our confidence in the
underlying strength of the
a2™
brand was well-founded.”
1. Including term deposits and borrowings, excluding subordinated
non-current shareholder loans
3

Britta Campion / Newspix
FUTURE
WE PIONEER THE
4

THE
a2 MILK COMPANY ANNUAL REPORT 2022
FUTURE
CEO’S YEAR
IN REVIEW
David Bortolussi
”
“
WE PIONEER THE
OF DAIRY
FOR GOOD
It was a successful year for
The a2 Milk Company
delivering double digit
revenue and earnings growth
despite challenging market
conditions.
DAVID BORTOLUSSI
MANAGING DIRECTOR AND CEO
The a2 Milk Company has made
significant progress in implementing
its refreshed growth strategy and
improving performance during FY22
1
.
More specifically, the:
1. Inventory management actions taken last calendar year to
address excess infant milk formula (IMF) inventory have proven
effective with channel inventory at target levels, product
freshness amongst the best in the industry and improved
market pricing
2. Refreshed growth strategy communicated to the market in
October 2021 which focused on capturing the full potential of
the China market opportunity is having an impact achieving
new highs in brand health metrics and record market shares
3. Full year result for FY22 is in line with the Company’s
expectations as outlined on 21 February 2022, delivering
double digit revenue and earnings growth despite challenging
market conditions driven by the refreshed growth strategy
and improved execution
4. Outlook for the business in FY23 is positive with continued
revenue and earnings growth expected, and the Company is
on track to deliver on its medium-term financial and non-
financial ambitions communicated to the market at its Investor
Day in October 2021
As a result of the above, and considering its strong balance
sheet position, the Company intends to execute an on-market
share buyback of up to $150 million. An on-market share
buyback is considered to be the most appropriate form of capital
management at this time.
The Board and Executive Leadership Team would like to express
their appreciation to the Company’s supportive shareholders,
talented team, valued farmers, loyal customers/distributors,
committed suppliers and strategic partners in China, for their
collective support during a challenging period overcoming
COVID-19 related disruption and market headwinds.
1 All references to full year (FY), halves (H) and quarters (Q) relate to the
Company’s financial year, ending 30 June.
5

CEO’S YEAR IN REVIEW
Financial highlights
2
—Revenue growth of 19.8% to $1,446.2 million (11.2% ex-
MVM
3
) with 2H22 up 18.9% on 1H22 (15.7% ex-MVM)
—China label and English label IMF sales up 12.2% and
11.6% respectively
—ANZ and USA liquid milk sales up 1.8% and 30.2%
respectively
—Earnings before interest, tax, depreciation and amortisation
(EBITDA
4
) up 59.0% to $196.2 million. EBITDA to sales
margin increased to 13.6% (16.1% ex-MVM) compared to
10.2% in FY21
—Net profit after tax (NPAT) including amounts attributable
to non-controlling interests up 42.3% to $114.7 million with
$122.6 million attributable to owners of the Company
5
—Earnings per share up 51.8% to 16.5 cents in FY22
compared to 10.9 cents in FY21
—Strong balance sheet with closing net cash
6
of
$816.5 million with operational cash conversion
7
o f 114%
during the year
—Positive outlook for FY23 with high single digit revenue
growth and EBITDA margin improvement expected (see
Outlook below for further detail, including key industry and
business risks)
2 All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3 Excluding the impact of consolidating Mataura Valley Milk (MVM) into
the Group result, which was acquired in July 2021.
4 EBITDA is a non-GAAP measure and does not have a standardised
meaning prescribed by GAAP. However, the Company believes that
in combination with GAAP measures, it assists in providing investors
with a comprehensive understanding of the underlying operational
performance of the business. A reconciliation of EBITDA to net profit
after tax is shown in the Company’s FY22 Investor Presentation (slide
55) and Other information in this Annual Report (page 126).
5 The non-controlling interest represents China Animal Husbandry
Group’s 25% interest in MVM.
6 Including term deposits and borrowings, excluding subordinated non-
current shareholder loans.
7 Operational cash conversion defined as net cash flow from operating
activities before interest and tax divided by EBITDA.
Operational highlights
—Brand health metrics reached new highs across
the business with total a2MC IMF spontaneous
brand awareness in China increasing significantly
from 16% to 21% following a 36.3% increase in
marketing investment
—Record market shares achieved in China label IMF
in mother and baby stores (MBS) and domestic
online (DOL), with English label IMF market share
in cross border e-commerce (CBEC) increasing in
2H22 and offline-to-online (O2O) over the full year.
Record market shares also achieved in Australia and
USA milk
—Deliberate shift in distribution of English label
IMF to more transparent, performance-based
and exclusive partners progressing well with
significantly improved share of voice in the
Daigou channel
—Increased focus on innovation resulted in the
highest number of new product launches in
the Company’s history: a2 Milk
®
Half & Half,
HERSHEY’S a2 Milk
®
, a2 Milk
®
UHT, a2 Milk
®

Cream on Top, a2 Milk
®
Lactose Free and refreshed
a2 Platinum
®
English label IMF
—Completion of Mataura Valley Milk (MVM)
acquisition with China Animal Husbandry Group
with successful integration and commencement of
a2 Milk
®
powder manufacturing underway
—Significant increase in sustainability targets,
initiatives and impact in many areas of the business,
including committing to New Zealand’s first
high pressure electrode boiler supplied by 100%
renewable energy at the MVM site
6

THE
a2 MILK COMPANY ANNUAL REPORT 2022
Operating cash flow was $203.8 million. Excluding interest and
tax, this represented operational cash conversion of 114%
12
which
was relatively high during the period. This was mainly due to an
increase in trade and other payables related to the timing of 4Q22
brand investment and inventory orders, combined with delayed
invoicing and payments processing in China due to COVID-19
related lockdown impacts.
China IMF market update
13
The number of births in China decreased by 11.5% in 2021 to
10.6 million
14
and is expected to decline in 2022. This decline has
been partially offset by an increase in household penetration and
consumption within the IMF market.
In volume terms, the overall IMF market in China decreased
by 4.3% in FY22, as several years of declining newborns had
a cumulative impact on Stages 2 and 3, partially offset by
increasing household penetration particularly in relation to
growth in Stage 4. Market value also decreased by 3.1% in
FY22 as growth in average market prices was not enough to
offset volume declines. Market price growth of 1.3%, driven
both by premiumisation (consumers trading-up and new
product innovation) and channel mix shift to higher-priced China
label channels, was less than in previous years and was also
impacted by increasing promotion frequency, albeit at reduced
discount levels.
12 Operational cash conversion defined as net cash flow from operating
activities before interest and tax divided by EBITDA.
13 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market
tracking (Key&A + BCD cities), unless otherwise stated
14 Source: China National Bureau of Statistics.
“ We are pleased with the
progress that has been
made in stabilising the
business, refreshing our
strategy and improving
our execution.”
Group financial performance
8,9
The Company’s revenue for FY22 was up 19.8% driven by
strong growth in the China & Other Asia and USA segments,
along with incremental sales from the first-time inclusion of
MVM. This was partially offset by lower IMF sales in ANZ due to
deliberate changes to the Company’s English label IMF route-to-
market structure, resulting in a shift in sales towards the China &
Other Asia segment. 2H22 revenue growth also reflects actions
taken by the Company in 2H21 and 1H22 to address excess
IMF channel inventory, execution of the Company’s growth
strategy, strong China label IMF consumer demand in part due
to COVID-19 related lockdowns as well as pricing and favourable
foreign exchange.
Gross margin percentage
10
of 46.0% was up 3.7ppts and reflects
the cycling of prior year stock write-downs, price increases,
reduced trade spend and favourable foreign exchange; partially
offset by higher raw material and logistics costs which were
impacted by COVID-19 and the inclusion of MVM. Gross margin
percentage excluding MVM was 50.9% compared to 42.3% in
FY21 which was significantly impacted by stock write-downs.
EBITDA increased by 59.0% to $196.2 million primarily reflecting
higher revenue and gross margin. EBITDA growth came
notwithstanding a 36.3% increase in marketing spend and
the anticipated uplift in Administrative and Other Expenses,
which have increased by 15.6% due to capability investment,
increase in employee incentive costs (low base last year), and
higher professional services fees and insurance costs. COVID-19
adversely impacted in-market freight rates and distribution costs,
particularly in the USA business. Together, these factors resulted
in an EBITDA margin of 13.6% (16.1% ex-MVM).
Net profit after tax, including amounts attributable to the non-
controlling interest was $114.7 million, an increase of 42.3%.
Depreciation and amortisation was $18.9 million, net interest
income was similar to prior period and the effective tax rate
of the Group was 36.7%. NPAT attributable to owners of the
Company was $122.6 million.
The balance sheet remains in a strong position with closing
cash and term deposits of $ 8 8 7. 3 million. The higher cash
balance reflects the cash generated during the year offset by
$213.7 million of capital invested in the acquisition of MVM
(net of cash acquired). As a result of the ownership structure
of MVM, the Group is now consolidating MVM’s financial debt
which was $70.8 million at period end (excluding $36.2 million
of subordinated non-current shareholder loans), and therefore,
the Company had net cash
11
of $816.5 million. Inventory at the
end of the period was $140.0 million, higher than at the end of
FY21, mainly due to the inclusion of MVM. The Company’s IMF
inventory levels were lower than planned at year-end due to
COVID-19 impacts on its China label supply chain.
8 All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
9 All comparisons are with the 12 months ended 30 June 2021 (FY21),
unless otherwise stated.
10 Gross margin percentage is calculated as sales less cost of goods sold,
divided by sales.
11 Including term deposits and borrowings, excluding subordinated non-
current shareholder loans.
7

CEO’S YEAR IN REVIEW
The market shift towards China label product continued
compared to English label product, although the extent of the
shift this year was less pronounced than last year. In FY22, China
label product accounted for 85% of the market (compared to
84% in FY21) and English label product accounted for 15%
(compared to 16% in FY21). The shift towards China label in the
previous year was more significant (7% pts) due to significant
COVID-19 related disruption and associated demand and
supply volatility.
Growth rates varied significantly between Key&A and BCD cities,
with Key&A value sales decreasing by 7.1% whilst in BCD cities
market value was broadly flat in line with the divergence of birth
rates across city tiers.
Within China label channels, several market dynamics are
supporting a2MC’s growth, including a continued mix shift
to the ultra-premium segment (where the Company’s China
label product competes), more rapid growth of the A2 protein
segment, increasing brand concentration towards market leading
brands (with a2
至初
®
remaining one of the few international
brands continuing to grow market share) and the continued shift
to online channels, where international brands have historically
outperformed local brands.
English label channels are showing signs of stabilisation, with
the rate of decline in overall English label value sales (down
9%) reducing significantly compared to FY21 (down 33%) and
sales growing by 1.6% in BCD cities in 2H22. Within English
label channels, there is a mix shift from Daigou to CBEC and
O2O channels.
Despite challenging market dynamics, a2MC’s growth in FY22
in China label and English label IMF was encouraging, and the
Company has a significant opportunity to grow market value
share from its current levels of 4-5%.
a2MC regional performance
1. China & Other Asia
China & Other Asia revenue of $726.5 million was up 24.5%, with
EBITDA of $145.1 million up 92.0%. Growth was driven by 2H22
performance as the Company ramped-up execution of its growth
strategy supported by strong China label IMF consumer demand
in part due to COVID-19 related lockdowns, as well as favourable
foreign exchange. The increase in EBITDA margin from 13.0% to
20.0% reflected higher gross margin during the period mainly
due to cycling the impact of stock write downs last year and the
operational leverage benefit of higher sales, partially offset by
higher marketing investment.
There were further gains in brand health metrics following the
significant increase in marketing investment in 2H22. Based on
the Company’s most recent tracking (Jul-22 compared to Jan-22),
spontaneous awareness for total a2MC IMF (ie China label and
English label) increased from 16% to 21%, the rate of consumers
who have ever trialled the Company’s IMF products increased
from 19% to 20% and the percentage of consumers who claim to
use the Company’s IMF most often increased from 12% to 13%.
Within this, China label prompted brand awareness improved
from 45% to 50% and English label prompted brand awareness
improved from 27% to 29%.
The 2H22 campaign continued to build on the execution themes
from the 1H22 campaign with more balanced functional and
emotional brand messaging, more precise targeting of consumers,
greater use of health care professional marketing, increased
social seeding and stronger integration across all channels and
of both labels.
China label IMF
Sales for a2
至初
®
China label IMF of $437.6 million were
achieved, representing an increase of 12.2%. As referred to in the
Company’s announcement on 21 February 2022, the Company
restricted sales to distributors in 1H22 (particularly in 4Q21 and
1Q22) to rebalance channel inventory levels and improve channel
dynamics. As a result of this, sales in 1H22 were down, but were
up significantly during 2H22. Consumer demand for a2
至初
®

over the year was strong and the Company increased share in
store and online, and across all stages.
8

THE
a2 MILK COMPANY ANNUAL REPORT 2022
“ The increase in our
marketing investment
has driven further gains
in brand health metrics
and record market
shares delivering
strong growth in our
China infant milk
formula business.”
a2MC increased offline numeric and weighted distribution as
well as same store sales, resulting in Key&A and BCD cities share
increases during the year. Offline distribution increased to 26.5k
stores at the end of June 2022 from 22.8k at the end of June
2021
15
. The Company has expanded its focus from building share
in national key accounts to also pursuing regional key accounts, as
well as targeting greater penetration in BCD cities and developing
new strategies for accelerated growth in certain high-potential
provinces. As measured by Nielsen
16
, retail sales for the MBS
channel by value were down 2% in FY22
17
. a2MC’s market value
share in MBS increased to 3.0% at the end of June 2022 versus
2.2% at the end of June 2021, and a2
至初
®
was one of the few
international brands that gained share in the period.
Accelerating the Company’s online growth is a strategic priority
for China label IMF and performance in DOL is a key measure
of success. As measured by Smart Path, retail sales for DOL by
value were up 4% for FY22
18
. a2MC’s market value share in DOL
increased to 2.5% at the end of June 2022 versus 2.0% at the
end of June 2021.
English label IMF (CBEC)
a2 Platinum
®
English and other label IMF sales of $255.8 million
were up 53.3%. The result reflected improved channel economics
and demand during the period, price increases, favourable foreign
exchange and reduced discounting during the “6/18” and “11/11”
online sales periods in China.
Strong revenue growth in CBEC also reflects execution of the
Company’s strategy to simplify and delayer its distribution
network to move closer to its consumers, which has reduced
the extent of indirect unauthorised cross-channel sales from
ANZ resellers to CBEC participants. This has resulted in a greater
proportion of those sales now being supplied by authorised CBEC
distribution partners, increasing reported revenue to CBEC (refer
ANZ section below).
15 a2MC internal data tracking of stores with active sales in the past 12
months.
16 Note that during the period, Nielsen expanded its sample store coverage
to enhance channel representativeness, and historical data has been
restated to reflect this enhancement.
17 Nielsen MBS retail measurement service: mother and baby stores only
retail sales (by value). 12-month rolling share. FY22 versus FY21.
18 Smart Path China IMF online market tracking: domestic online platform
sales (by value). 12-month rolling share. FY22 versus FY21.
a2MC continued to prioritise overall channel economics through
tightly controlled inventory levels and promotional activity in
CBEC. As a result, and as expected, English label sales during
key promotional events in 1H22 were slightly down on last
year but recovered in 2H22 with improved market pricing
across CBEC platforms and reseller channels, enhancing
overall channel economics. Notwithstanding these actions, the
Company’s platform rankings were maintained or improved
during the period.
Similar to DOL, the Company is focused on CBEC online growth
and building digital marketing and e-commerce capability to
improve its execution which is having an impact, particularly on
new user recruitment and late-stage retention. As measured by
Smart Path, retail sales by value for the CBEC channel were down
2% for the period
19
. a2MC’s market value share in CBEC was
19.5% at the end of June 2022 versus 21.1% at June 2021, with
market share improving in 2H22.
Liquid milk and other nutritional products
Sales of liquid milk in China & Other Asia were up 34.4%
to $11.1 million and revenue from other nutritional products
was also up 19.7% to $22.1 million. This reflected progress
in executing against adjacent category growth opportunities,
including the launch of UHT in China. These results were achieved
notwithstanding significant supply chain disruption in liquid milk
during the period due to COVID-19 impacts on manufacturing
and logistics.
2. Australia and New Zealand (ANZ)
ANZ segment revenue of $532.7 million was down 4.8%, with
EBITDA of $173.2 million up 16.4%. Lower revenue was a direct
consequence of the Company restructuring its English label IMF
routes-to-market and reflected a mix shift in English label IMF
sales from an existing reseller to CBEC distribution partners. The
shift in the English label route-to-market is a constructive change
and an evolution for the Company in the long term to progress
its ambition to have the number one English label product range
in China. Higher EBITDA was driven mainly by cycling prior year
inventory write-downs, pricing and favourable foreign exchange,
partially offset by higher cost of goods sold.
19 Smart Path China IMF online market tracking: for CBEC only retail sales (by
value). 12-month rolling share. FY22 versus FY21.
9

IMF resellers and retail
IMF sales in ANZ decreased 7.9% to $328.8 million. In addition to
the channel mix shift from ANZ resellers to CBEC, customer mix
within ANZ resellers also shifted significantly during the period
with some resellers securing additional volume. This managed shift
followed an in-depth review of the Company’s reseller route-to-
market which has resulted in improved visibility and control of
channels to market. The lower reseller sales due to the channel mix
shift were partially offset by pricing adjustments to address pricing
relativities and less promotional activity on CBEC in the interests of
maintaining a healthy ecosystem.
Following this route-to-market review and consistent with the
Company’s growth strategy, management has focused on
developing more transparent, performance-based, exclusive and
channel compliant distribution partnerships during the period.
As a result, significant volume transitioned from the Company’s
previous largest reseller to CBEC distributors (ANZ volumes
ultimately on-sold to CBEC platforms were re-routed through
authorised CBEC distributors) and to other existing ANZ reseller
partners during the period. Supply continues to be allocated
carefully to all reseller partners to ensure appropriate stock levels
are maintained in the channel.
Although market share reduced in the Daigou channel during the
period, the rate of decline improved in 2H22 following the change
in distribution partners. Kantar data
20
indicates consumer sales in
the Daigou channel were down 17% for FY22
21
and that a2MC’s
Daigou market share declined to 18.7% at the end of June 2022
versus 22.2% at the end of June 2021. However, a2MC’s Daigou
market share decreased by approximately 2% pts in 2H21 and
1H22 but declined by less than 1% in 2H22 following the change.
The ANZ reseller channel is an important channel, particularly
in relation to new user recruitment. In addition to changing
distribution partners, the Company stepped up its support for
the channel through more direct engagement with resellers
and Daigou, production of more digital marketing content and
conducting Daigou sales events resulting in increased share of
voice in the channel which is an important leading indicator
of share growth. To enable this increased level of activity, the
Company invested in developing its reseller and Daigou trade
marketing capability during the period.
20 Kantar data based on a panel of 9,000 consumers covering 0-6 year olds
and only seeks to project ~40% of the population.
21 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market
tracking (Key&A + BCD cities).
An initiative to increase distribution in the O2O channel
commenced during the period with growth experienced during
FY22. A key strategic focus was working with partners to increase
store numbers through the O2O channel and drive new user
recruitment. Kantar data indicates consumer sales in the O2O
market grew 26%
22
for FY22 and that a2MC’s O2O market share
increased to 18.6% by the end of June 2022 versus 17.5% at the
end of June 2021.
As part of the Company’s strategic priority to drive growth
through innovation, the Company refreshed its English label
IMF product range and packaging in 1Q23 which has gained
additional distribution in retail.
Liquid milk
Australian liquid milk sales increased marginally by 1.8% to
$172.0 million, reflecting volume growth and price increases
implemented during the year in response to higher raw milk prices
and other input and logistics costs, as well as favourable foreign
exchange. This was partially offset by easing COVID-19 restrictions
in 2H22 which negatively impacted in-home consumption levels.
The Company maintained its brand leadership during the year
with increased loyalty and household penetration. Brand health
metrics improved with awareness and trial increasing. a2MC
achieved a value share of 12.4% at the end of June 2022
23
versus
12.2% at the end of June 2021 declining marginally in 2H22 as
lockdowns eased. Market share gains were achieved in all states
except Western Australia, with new record value shares in New
South Wales and Victoria. Pleasingly, three a2 Milk
®
products
achieved rankings in the top ten products in the dairy category
in Grocery.
a2 Milk
®
UHT was launched during 3Q22 and is now available in
major supermarket chains across Australia. This addition to the
Australian liquid milk portfolio provides loyal consumers with a
shelf-stable pantry backup or camping supply of their favourite
a2 Milk
®
. a2 Milk
®
Cream on Top was also launched during 2H22
and is now available in 350 stores across Australia.
22 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market
tracking (Key&A + BCD cities)
23 IRI Australian Grocery Weighted Scan 12-months ending 30 June 2022.
“ We have maintained our
brand leadership position
in liquid milk in Australia
with increased loyalty and
household penetration, and
our USA milk business grew
strongly during the year
driven by innovation.”
CEO’S YEAR IN REVIEW
10

THE
a2 MILK COMPANY ANNUAL REPORT 2022
Post year-end, the Company launched a new a2 Milk
®
Lactose
Free range for consumers that are lactose intolerant enabling
all consumers to enjoy the benefits of a2 Milk
®
(noting that
individuals can be A1 protein and/or lactose intolerant).
Lactose free milk is a significant category in Australia with
retail sales value greater than $130 million. The Company has
secured arrangements for distribution of the range with major
supermarket retailers in Australia, supported by a targeted
marketing campaign. The a2 Milk
®
UHT, a2 Milk
®
Cream on Top
and recent a2 Milk
®
Lactose Free launches are consistent with the
Company’s strategy of ramping up innovation to drive growth.
Other nutritional products
Revenue in other nutritional products was also impacted by the
channel mix shift to CBEC, and was slightly below prior year,
declining 5.2% to $31.9 million.
3. North America
USA revenue increased 30.0% to $82.7 million while EBITDA
decreased 9.4% resulting in a loss of $36.7 million. The higher
revenue was driven by growth in core liquid milk, the introduction
of new products, reduced trade spend and favourable foreign
exchange. Sales growth in core liquid milk was primarily driven
by growth in the Grocery and Mass channels of trade which
grew 38% during the period, partially offset by reduced Club
channel distribution.
Sales growth was mainly through increased same store sales with
only modest increases in distribution from 26.8k stores at the end
of June 2021 to 27.4k stores at the end of June 2022
24
. Two new
products were launched during 1H22 – HERSHEY’S a2 Milk
®
and
a2 Milk
®
Half and Half – achieving higher than expected listings
in trade. A combination of growth in the core and innovation
increased a2MC’s market value share in the premium milk
category for the Grocery channel from 1.8% in June 2021 to
2.1% in June 2022
25
. Key marketing and public relations activities
continued which resulted in improvements in brand awareness
and household penetration.
The increased EBITDA loss was mainly due to a significant increase
in freight costs throughout the year, coupled with fuel surcharges
from higher diesel prices and higher raw milk costs in 2H22, partly
offset by price increases and trade spend reductions. Marketing
and SG&A costs were relatively flat in combination. EBITDA
losses were also higher due to foreign exchange movements.
Accelerating the path to profitability in the USA by FY25/FY26
remains a key strategic focus and the Company expects to make
meaningful progress on this during the year ahead.
Mataura Valley Milk
MVM revenue of $104.4 million
26
and an EBITDA loss of
$18.8 million were recorded for the eleven months of a2MC’s
ownership during FY22. The EBITDA loss reflects the current
production mix with MVM primarily selling lower value milk
powders on the commodity market. The result was slightly better
than expected due to favourable foreign exchange and Global
Dairy Trade (GDT) pricing partly offset by higher raw milk costs
during the period.
a2MC’s acquisition of a 75% interest in MVM is strategically
important as it provides the opportunity to participate in
nutritional products manufacturing and the potential to pursue
24 SPINS retail sales data as of 30 June 2022 and internal counts
25 SPINS data for the Grocery channel only for the 52 weeks ending 30 June
2022 and 30 June 2021.
26 Revenue excluding intercompany sales.
additional China label registrations and product innovation
opportunities in the future. It strengthens relationships with key
strategic partners in China, achieves supplier and geographic
diversification, reduces risk across a2MC’s IMF and other
nutritionals businesses, and over time will offer access to insourced
manufacturing margins.
Accelerating MVM’s path to profitability by FY26 or earlier is a key
strategic focus. To improve profitability, the Company commenced
manufacturing a2 Milk
®
Full cream milk powder at MVM during
1H22, which was previously manufactured by Synlait Milk Limited
(Synlait). The Company is working on in-sourcing a2 Milk
®
Skim
milk powder and certain existing English label IMF product from
Synlait, developing future product innovation at the facility and
exploring additional third-party customer opportunities. To
complement this and facilitate future China label registration
applications, MVM has commenced planning for the installation of
a laboratory and blending and canning capability at the site.
Growth strategy update
At a2MC’s Investor Day in October 2021, the Company announced
its refreshed growth strategy which was adapted to the rapidly
changing IMF market dynamics in China. At the same time, the
Company also outlined its medium-term indicative sales and
EBITDA margin ambition. In 2H22 the Company focused on
implementing its strategic priorities and related initiatives, including
a material increase in brand investment. Significant early progress
has been made against the Company’s five strategic initiatives.
1. Invest in people and planet leadership
The Company refreshed its purpose ‘We pioneer the future
of Dairy for good’ and vision ‘An A1-free world where Dairy
nourishes all people and our planet’ which highlights the positive
impact the Company wants to have on the world, inspiring its
team and partners. New leadership and culture development
programmes were launched, and team engagement, net
promoter and diversity and inclusion surveys were completed
to benchmark progress. Investment was made in organisational
capability expansion, particularly in China with a focus on digital
marketing and e-commerce targeting DOL, CBEC and O2O
growth opportunities. More ambitious sustainability targets were
set, and related initiatives launched, including commitments in
GHG emissions reduction, farm environmental plans and animal
welfare, and for the transition to more sustainable packaging.
Importantly, a2MC announced a significant investment to reduce
GHG emissions through the MVM boiler electrification, sourced
from 100% renewable power, and to support Synlait’s biomass
boiler conversion.
“ The Company is committed to
investing in tangible climate
and nature related programmes
that will create a positive
impact on the planet.”
11

CEO’S YEAR IN REVIEW
2. Capture full potential in China IMF
The Company’s most critical business development focus is to
ensure it delivers its full potential in China IMF. The Company
completed its brand positioning review, significantly increased
China marketing investment, invested in digital content
generation and executed integrated marketing campaigns with
a more targeted mix to increase impact. In terms of offline sales,
the Company commenced China label in-market growth pilots
with a mix of above-the-line and below-the-line brand and sales
activation initiatives, increased MBS distribution (particularly in
lower tier cities) and increased same store sales. Investment was
also made in growing DOL and CBEC sales and developing the
O2O model in key accounts. The English label route-to-market
review was completed and actioned, as well as investing in
Daigou marketing support and engagement.
3. Ramp-up product innovation
Liquid milk and other nutritional products grew significantly in
China & Other Asia demonstrating progress in executing against
adjacent growth opportunities outside of IMF. The Company
supported Synlait to complete and submit a2MC’s China label IMF
new GB registration dossiers for an upgraded formulation. The
Company launched UHT, Cream on Top, Lactose free, Half & Half
and HERSHEY’S a2 Milk
®
products in liquid milk during the year
and refreshed English label IMF product post year-end.
4. Transform the supply chain
Following completion of the MVM acquisition, the Company
commenced planning for laboratory and blending and canning
capability at MVM with third-party support and accelerated
efforts to explore additional opportunities relating to China
label market access in New Zealand and China. The Company
progressed capacity expansion initiatives at its Smeaton Grange
and Kyabram manufacturing facilities.
5. Accelerate path to profitability for USA and MVM
USA top-line growth was accelerated through new product
launches, reduced trade spend and price increases, which
also improved gross margins. The Company accelerated plans
to insource a2 Milk
®
branded product manufacturing from
Synlait and develop third-party business at MVM to improve
capacity utilisation.
China label new GB registration update
a2MC and Synlait are working closely together in relation to the
new GB registration process by China’s State Administration for
Market Regulation (SAMR) for a2MC’s China label IMF product,
a2
至初
®
. China label product manufactured after 21 February
2023 needs to comply with the new GB standard.
While the Company’s new GB registration process is progressing,
timing is uncertain and subject to SAMR approval. However, it
is noted that the Ministry for Primary Industries (MPI) has co-
operation arrangements in place with SAMR which, amongst
other things, positions New Zealand well in relation to China
registration processes.
a2MC’s current China label IMF product registration expires in late
September 2022. a2MC and Synlait have applied for the renewal of
this existing registration which the Company anticipates receiving
in September consistent with SAMR’s practice with other brands
in similar situations. Such renewal would in effect allow Synlait
to manufacture a2MC’s current registered product up until the
end of the grace period on 21 February 2023 when transition to
the new GB standard is required. The current registered product
manufactured up until this date is allowed to be sold in market after
that date. This period through to 21 February 2023 is sometimes
referred to as an “extension” of the existing registration.
In all circumstances, a2MC fully respects SAMR’s governance and
timing of this important registration process.
On-market share buyback
The Company announces that it intends to undertake a capital
return of up to $150 million through an on-market share buyback.
The buyback is expected to commence towards the end of
September and could run for up to 12 months.
a2MC regularly assesses its balance sheet position in order to
deliver the optimum structure to enhance shareholder value in line
with the Company’s strategy and capital allocation framework.
This framework prioritises investment in growth initiatives and
maintaining balance sheet flexibility ahead of capital returns to
shareholders. Where there is capital which is surplus to achieving
these priorities a2MC makes a disciplined assessment of the
potential to return funds to shareholders.
The Company’s balance sheet is in a strong position that provides
the capacity to distribute up to $150 million to shareholders, with
the most appropriate method being an on-market share buyback.
With a closing net cash balance
27
in FY22 of $816.5 million, there
is sufficient capital reserve to fund investment opportunities,
maintain an appropriate cash buffer as well as return surplus capital
to shareholders.
The buyback is subject to market conditions, a2MC’s prevailing
share price and all other relevant considerations. a2MC reserves the
right to vary, suspend without notice, or terminate the on-market
buyback at any time.
Further details in relation to the share buyback are provided in the
separate Company announcement also released to the market on
29 August 2022.
27 Including term deposits and borrowings, excluding subordinated non-
current shareholder loans.
12

THE
a2 MILK COMPANY ANNUAL REPORT 2022
Board and Management renewal
The Board is continuing its programme of renewal and is
focused on increasing its levels of China market, IMF category
and manufacturing experience. In March 2022, Sandra Yu was
appointed to the Board. Sandra is a highly regarded company
director and has extensive experience in the IMF market in China
as a former head of Mead Johnson Nutrition’s Greater China
business. The Company also announced today the appointment
of David Wang to the Board as a non-executive director. David’s
appointment adds further China market and manufacturing
expertise which will be an invaluable asset with the recent
acquisition of MVM and the Company’s strategy to develop its
supply chain capability in New Zealand and China.
Consistent with corporate governance best practice, the
Company’s Deputy Chair, Julia Hoare, who joined the Board in
November 2013, has advised of her intention to step down as a
Director after the Company has delivered its FY23 interim results
in February 2023. A process will shortly commence to identify a
suitable replacement director that ensures the Board maintains an
appropriate balance of skills, knowledge and experience.
During the year, the Company announced a number of changes
to its Executive Leadership Team. Yohan Senaratne was appointed
as Executive General Manager – International, Kevin Bush was
appointed as Executive General Manager – ANZ, Bernard May
joined as Chief Executive – MVM, Amanda Hart was appointed
as Chief People & Culture Officer, and Edith Bailey was appointed
as Chief Marketing Officer. Lastly, the Company announced the
resignation of its Chief Financial Officer, Race Strauss, and the
appointment of David Muscat who will join the Company as its
Chief Financial Officer in October 2022. Prior to David joining
a2MC, Mark Sherwin has assumed the position of Interim
Chief Financial Officer.
Outlook
Business and category
China label IMF sales are expected to be up in FY23 with
significant growth in sales in 1H23 versus 1H22. At this stage,
2H23 sales growth is expected to be impacted by transition to
the Company’s pending new GB registration. English label IMF
sales are expected to be up in FY23 with 1H23 sales expected
to be broadly in line with 2H22 due to the impact of managing
transition to the refreshed a2 Platinum
®
range.
Australian liquid milk sales are expected to remain broadly in line
with FY22, with reduced in-home consumption following the
easing of COVID-19 related lockdowns offset by growth through
innovation. USA liquid milk sales are expected to be up in FY23
driven by continued growth in core liquid milk and innovation,
and a significant improvement in EBITDA losses is expected.
MVM will be included in the Company’s result for 12 months
compared with 11 months in FY22. MVM FY22 revenue
(excluding intercompany revenue) and EBITDA losses for the
12 months were $116.2 million and a loss of $23.2 million
respectively (unaudited). Revenue is expected to be down in
FY23 compared to FY22 (12 months) due to increasing levels of
insourcing and lower GDT pricing, and EBITDA is expected to be
broadly in line with FY22 (12 months).
Key financials
The Company is expecting high single digit revenue growth
in FY23. 1H23 growth (on 1H22) is expected to be significantly
higher than 2H23 growth (on 2H22).
FY23 gross margin percentage is expected to be broadly in
line with FY22, with cost of goods sold headwinds related to
increasing milk, ingredient and packaging costs offset by price
increases, mix benefits and cost mitigation initiatives.
The Company will continue to increase its brand investment in
FY23. Marketing spend will be skewed marginally towards 1H23
with a significant uplift versus 1H22 due to campaign timing.
A further uplift in Administration & Other expenses is expected,
reflecting additional capability build, upweighted investment in
science, innovation and sustainability, and inflation impacts.
Overall, the Company is expecting EBITDA growth in FY23 and
a modest improvement in EBITDA margin (% of sales). With
the marketing plan weighted to 1H23, the Company expects a
slightly higher EBITDA margin in 2H23 versus 1H23.
Operational cash conversion is likely to be significantly lower in
FY23 than FY22 mainly due to the reversal of working capital
timing benefits in FY22 and an increase in inventory levels.
The Company expects that capital expenditure will be
approximately $25 million during FY23 mainly due to
enhancements in existing supply chain capacity and capability.
This amount excludes any more substantive investment to
develop the Company’s New Zealand and China supply
chain capability.
Industry and business risks
In addition to trading upside and downside, other risks include,
but are not limited to, COVID-19 impacts on supply chain, SAMR
registration process timing, volume impact of price increases,
foreign exchange movements, cross border trade, changes in the
regulatory environment, and commodity prices. These risks could
materially impact expected revenue and earnings outcomes.
David Bortolussi
Managing Director and Chief Executive Officer
28 August 2022
13

14
BUILDING A
SUSTAINABLE
GROWTH
BUSINESS
BUILDING A SUSTAINABLE GROWTH BUSINESS
Mataura Valley Milk

15
THE
a2 MILK COMPANY ANNUAL REPORT 2022
There has been a trend in recent years towards more integrated
reporting, driven by the expectations and needs of various stakeholders,
including shareholders.
At its core, the integrated reporting concept refers to a principles-based,
multi-capital framework in which companies can communicate clearly
and concisely about how their strategies, governance, performance and
prospects create value in the context of their external environments.
The a2 Milk Company notes the recent developments in this space,
and in particular the announcement in November 2021 from the
International Finance Reporting Standards Foundation, in forming the
International Sustainability Standards Board (ISSB). The ISSB’s purpose
is to deliver a comprehensive global baseline of sustainability related
disclosure standards that provide investors and other capital markets
participants with information about companies’ sustainability-related
risks and opportunities, to help them make informed decisions. It is
expected that this will result in a more definitive approach for companies
to follow with regard to integrated reporting. While more work will be
required to align to these expected standards in the future, this

FY22 annual report has been developed with this in mind.
This report outlines how The a2 Milk Company creates value for its
shareholders over the short, medium and long-term. It describes the
Company’s refreshed purpose and vision, its values, strategy and
performance as well as the governance framework and management
oversight in advancing opportunities whilst managing risks.
One of the Company’s goals is to ensure that it creates long-term,
enduring value for shareholders through a trusted, transparent
relationship. A move towards integrated reporting is one of the

ways the Company is seeking to achieve this.
OUR
REPORTING
APPROACH
The Company believes a move towards
integrated reporting will benefit stakeholders
by providing a more complete picture of how
it creates and preserves long-term value.

BUILDING A SUSTAINABLE GROWTH BUSINESS
16
HOW WE CREATE VALUE
Our people
Through a purpose driven culture underpinned by our values,
we aim to create an environment that provides our people with
opportunities to thrive. Our success is the result of our diverse, skilled
and engaged workforce, aligned and focused to deliver on our
purpose and strategy. We are committed to the wellbeing and safety
of our people and are continuing to develop systems and processes
to identify, control, report, investigate and monitor health and safety
risks and actions across the business.
INPUTSCOMPANY OVERVIEWGOALS
Our brand
Our trusted brand, our proprietary know-how and A2 protein
expertise are our most valuable assets. We are committed to
maintaining and growing these assets with appropriate investment.
Through ongoing science and research programmes, we are
deepening our expertise and advancing global understanding
of the potential health benefits of a2 Milk
TM
.
Our environment
Access to natural resources and a thriving agricultural sector
that supports healthy ecosystems is fundamental to our
business. We recognise that climate change and pressures on
agricultural and food systems present a systemic challenge for
our world – and we are committed to finding unique and high
impact solutions across our value chain to help address these
challenges. Appropriately meeting this challenge will enable
us to continue providing premium a2 Milk
TM
based products
to our consumers and long-term value to our shareholders.
Our supply chain
Complementing our own fresh milk and nutritionals
production capability, we work closely with our suppliers and
farming community to maintain a reliable and responsible
sourcing and manufacturing supply chain. We believe this is
critical to our long-term success.
Our communities
We support communities in our key regions of New Zealand,
Australia, China and the USA with a focus on proactive
wellness to nourish the lives of children and families and help
them to thrive.
Our finances
The Company carefully balances investment in its supply
chain and distribution through both strategic partnerships and
direct ownership. Combined with the rapid growth of its premium
products, this approach has enabled the Company to build a
strong and robust balance sheet, which, guided by its capital
management framework, provides financial capital for the
Company to deploy in the pursuit of its strategic objectives.
PEOPLE
Create a safe, diverse, inclusive
and engaging place for our
people to thrive, support our
farmers and contribute to
our communities.
Page 32
PLANET
Protect our planet and cows,
rethink packaging, achieve
net zero and become nature
positive.
Page 36
CONSUMERS
Bring the unique benefits of
pure and natural a2 Milk
TM

to
as many consumers as possible.
Page 40
SHAREHOLDERS
Create long-term, enduring value
for shareholders and a trusted,
transparent relationship.
Page 44
Competitive
intensity
Evolving
technology
Strategic
partnerships
Talent and
culture
Social licence
to operate
Doing business
in international
markets
Major
international
events
Page 18Page 32
Page 25
Page 26
Page 27
Page 28
Page 28
Page 29
Page 29
Page 30
Page 31
The sale of
nutritional
food products
RISKS AND
OPPORTUNITIES
PURPOSE
We pioneer
the future of
Dairy for good
Page 22
VISION
An A1-free world
where Dairy
nourishes all
people and our
planet
STRATEGIC
PRIORITIES
– Invest in people and
planet leadership
– Capture full potential
in China IMF
– Ramp-up product
innovation
– Transform our supply
chain
– Accelerate path to
profitability in USA
and MVM
VALUES
– Bold passion
– Pioneering spirit
– Humility
– Respect
– Integrity
Climate
and nature

17
THE
a2 MILK COMPANY ANNUAL REPORT 2022
Our people
Through a purpose driven culture underpinned by our values,
we aim to create an environment that provides our people with
opportunities to thrive. Our success is the result of our diverse, skilled
and engaged workforce, aligned and focused to deliver on our
purpose and strategy. We are committed to the wellbeing and safety
of our people and are continuing to develop systems and processes
to identify, control, report, investigate and monitor health and safety
risks and actions across the business.
INPUTSCOMPANY OVERVIEWGOALS
Our brand
Our trusted brand, our proprietary know-how and A2 protein
expertise are our most valuable assets. We are committed to
maintaining and growing these assets with appropriate investment.
Through ongoing science and research programmes, we are
deepening our expertise and advancing global understanding
of the potential health benefits of a2 Milk
TM
.
Our environment
Access to natural resources and a thriving agricultural sector
that supports healthy ecosystems is fundamental to our
business. We recognise that climate change and pressures on
agricultural and food systems present a systemic challenge for
our world – and we are committed to finding unique and high
impact solutions across our value chain to help address these
challenges. Appropriately meeting this challenge will enable
us to continue providing premium a2 Milk
TM
based products
to our consumers and long-term value to our shareholders.
Our supply chain
Complementing our own fresh milk and nutritionals
production capability, we work closely with our suppliers and
farming community to maintain a reliable and responsible
sourcing and manufacturing supply chain. We believe this is
critical to our long-term success.
Our communities
We support communities in our key regions of New Zealand,
Australia, China and the USA with a focus on proactive
wellness to nourish the lives of children and families and help
them to thrive.
Our finances
The Company carefully balances investment in its supply
chain and distribution through both strategic partnerships and
direct ownership. Combined with the rapid growth of its premium
products, this approach has enabled the Company to build a
strong and robust balance sheet, which, guided by its capital
management framework, provides financial capital for the
Company to deploy in the pursuit of its strategic objectives.
PEOPLE
Create a safe, diverse, inclusive
and engaging place for our
people to thrive, support our
farmers and contribute to
our communities.
Page 32
PLANET
Protect our planet and cows,
rethink packaging, achieve
net zero and become nature
positive.
Page 36
CONSUMERS
Bring the unique benefits of
pure and natural a2 Milk
TM

to
as many consumers as possible.
Page 40
SHAREHOLDERS
Create long-term, enduring value
for shareholders and a trusted,
transparent relationship.
Page 44
Competitive
intensity
Evolving
technology
Strategic
partnerships
Talent and
culture
Social licence
to operate
Doing business
in international
markets
Major
international
events
Page 18Page 32
Page 25
Page 26
Page 27
Page 28
Page 28
Page 29
Page 29
Page 30
Page 31
The sale of
nutritional
food products
RISKS AND
OPPORTUNITIES
PURPOSE
We pioneer
the future of
Dairy for good
Page 22
VISION
An A1-free world
where Dairy
nourishes all
people and our
planet
STRATEGIC
PRIORITIES
– Invest in people and
planet leadership
– Capture full potential
in China IMF
– Ramp-up product
innovation
– Transform our supply
chain
– Accelerate path to
profitability in USA
and MVM
VALUES
– Bold passion
– Pioneering spirit
– Humility
– Respect
– Integrity
Climate
and nature

18

































A
U
S
T
R
A
L
I
A

&

N
E
W

Z
E
A
L
A
N
D
CHINA & OTHER ASIA
Revenue
EBITDA
Market size
Supply chain
Our people
Product Portfolio
$726m
$145m
China IMF market
$47 billion
1
– China State Farm importation
agent and master distributor
– 110 distributors
107 (full time equivalent)
NORTH AMERICA
Revenue
EBITDA
Market size
Supply chain
Our people
Product Portfolio
$83m
($37m)
USA premium milk market
$4.3 billion
3

– Three third party
processing relationships
– 9 farmer suppliers
31 (full time equivalent)
AUSTRALIA & NEW ZEALAND
Revenue
EBITDA
Market size
Supply chain
Our people
Product Portfolio
$637m
$154m
Australian liquid milk market
$1.9 billion
2
plus cross-border
access to China market
Australia (Liquid Milk)
– Smeaton Grange (a2MC)
– Kyvalley (a2MC)
– 4 third-party processing
relationships
– 25 farmer suppliers
New Zealand (Nutritionals)
– 75% interest in
Mataura Valley Milk
– 19.8% interest in
Synlait Milk
– 209 farmer suppliers

289 (full time equivalent)
C
H
I
N
A

&

O
T
H
E
R

A
S
I
A
























































































































































































N
O
R
T
H

A
M
E
R
I
C
A
Strategic partners
Strategic partners
Licensee fresh milk
New Zealand
Licensee fresh milk
Canada
COMPANY OVERVIEW
18
Part of The a2 Milk Company
BUILDING A SUSTAINABLE GROWTH BUSINESS

19
THE
a2 MILK COMPANY ANNUAL REPORT 2022

































A
U
S
T
R
A
L
I
A

&

N
E
W

Z
E
A
L
A
N
D
CHINA & OTHER ASIA
Revenue
EBITDA
Market size
Supply chain
Our people
Product Portfolio
$726m
$145m
China IMF market
$47 billion
1
– China State Farm importation
agent and master distributor
– 110 distributors
107 (full time equivalent)
NORTH AMERICA
Revenue
EBITDA
Market size
Supply chain
Our people
Product Portfolio
$83m
($37m)
USA premium milk market
$4.3 billion
3

– Three third party
processing relationships
– 9 farmer suppliers
31 (full time equivalent)
AUSTRALIA & NEW ZEALAND
Revenue
EBITDA
Market size
Supply chain
Our people
Product Portfolio
$637m
$154m
Australian liquid milk market
$1.9 billion
2
plus cross-border
access to China market
Australia (Liquid Milk)
– Smeaton Grange (a2MC)
– Kyvalley (a2MC)
– 4 third-party processing
relationships
– 25 farmer suppliers
New Zealand (Nutritionals)
– 75% interest in
Mataura Valley Milk
– 19.8% interest in
Synlait Milk
– 209 farmer suppliers

289 (full time equivalent)
C
H
I
N
A

&

O
T
H
E
R

A
S
I
A
























































































































































































N
O
R
T
H

A
M
E
R
I
C
A
Strategic partners
Strategic partners
Licensee fresh milk
New Zealand
Licensee fresh milk
Canada
1. FY21 Market size based on a2MC internal estimation approach
2. FY21 Australian supermarket milk retail sales in NZD Source: IRI Australian
Grocery Weighted Scan for the 12-months ending 30 June 2021
3. Source: SPINS US MULO, USA FY21 retail milk sales in the premium
segment in NZD

BUILDING A SUSTAINABLE GROWTH BUSINESS
20
COMPANY OVERVIEW
Who we are
The a2 Milk Company is a dairy nutritionals company, fuelled by
its purpose to pioneer the future of dairy for good. The Company
was founded in 2000 in New Zealand by scientist Dr Corran
(Corrie) McLachlan and his business partner, Howard Paterson,
who recognised that not all milk is the same. Dr Corrie McLachlan
joined Sir Robert (Bob) Elliot – who had earlier discovered that
proteins in milk affect people differently – to pioneer research to
understand these differences better.
Originally all cows’ milk contained only the A2 protein type. The
A1 protein arose through a genetic mutation over many years.
Today, most regular milk contains a mixture of A1 and A2 proteins.
Results of several published peer-reviewed human clinical trials
have shown that A1 protein can cause digestion issues for some
people. A scientific and proprietary way to identify cows that
naturally produce A1 protein free milk was also discovered.
Today, The a2 Milk Company continues to pioneer this science
and research, bringing A1 protein free milk to the world, allowing
more consumers to enjoy its unique digestive and other potential
health benefits.
The Company produces a portfolio of products made with milk
from specially selected cows that naturally produce milk containing
only the A2 beta casein protein type and no A1. These products
include fresh milk, ultra-heat treatment (UHT) milk, extended shelf
life (ESL) milk, infant milk formula (IMF), milk powders (including
instant whole and skim milk powder) and other dairy nutritional
products primarily for the New Zealand, Australia, China and

North American markets.
The Company’s primary business activities are:
—China and Other Asia: Sales of China label and English

label IMF, liquid milk and other nutritional products in offline
stores and domestic and cross-border e-commerce channels.
—ANZ: Sales of English label IMF and other nutritional products
through reseller and retail channels, and sales of liquid milk
across Australian and New Zealand retail channels.
—North America: Sales of liquid milk products across

the United States of America and Canada.
—Mataura Valley Milk: Production of nutritional and
commodity products in New Zealand.
PURPOSE – WHY WE EXIST AND THE IMPACT WE CAN HAVE ON THE WORLD
The a2 Milk Company’s purpose talks to the positive
impact the Company can have. Our Purpose lives at the
intersection of the Company’s unique strengths and
what the world needs.
WE PIONEER
THE FUTURE
OF DAIRY
FOR GOOD
To be continually at the
forefront of change
Using the processes and
products available today
and being open to what
dairy could become
tomorrow
FOR THE GOOD OF
People
— Our consumers

(healthy and tasty nutrition)
— Our team

(motivated and engaged)
— Our farmers

(sustainable partners)
Planet
— Animal welfare

(best practice)
— GHG emissions (net zero)
— Nature positive

(thriving ecosystems)
— Sustainable packaging

21
THE
a2 MILK COMPANY ANNUAL REPORT 2022
VISION – THE KIND OF POSITIVE FUTURE THE COMPANY WANTS TO HELP CREATE
AN A1-FREE WORLD
WHERE DAIRY
NOURISHES ALL
PEOPLE AND
OUR PLANET
In combination with
other foods, dairy
can help deliver on
people’s complete
nutritional needs
Dairy helps nourish
consumers, farmers
and communities

to take advantage
of opportunities to
live their best lives
Opportunity for more
consumers to experience
the digestive and other
potential health benefits
of A1 protein free milk
Dairy has the
potential to be

GHG net zero and
nature positive
Pioneering
spirit
Unconventional
open-minded thinking
that re-imagines the
possibilities –

outcome driven.
Bold passion
Driven to realise our
amazing potential as

a company and
as individuals.
Humility
We’re never done
growing, discovering;
and have a willingness
to continually iterate
and learn.
Respect
Seek to
understand and
appreciate difference
in all its forms.
Integrity
We do the
right thing for our
consumers, partners,
people... and

our cows.
VALUES

BUILDING A SUSTAINABLE GROWTH BUSINESS
22
STRATEGY
Adapting our growth strategy
During FY22, The a2 Milk Company undertook a holistic review
of its market, brand, product and distribution opportunities and
announced its refreshed growth strategy in October 2021.
Through this review, the Company has set clear goals for the
business in four primary areas: People, Planet, Consumers
and Shareholders, to ensure that in addition to achieving its
commercial ambitions, it is also actively working to deliver
its sustainability priorities and is executing in a way that
further develops a trusted and transparent relationship with
its shareholders.
The Company’s growth strategy centres on five key
priorities:
—Invest in people and planet leadership: While the
Company’s primary commercial objective is to deliver its full
potential in China IMF, critical to doing so is ensuring it has
thriving, high performing teams to execute its strategy. The
Company has also elevated investment in planet leadership to
sit amongst its top strategic priorities, by taking direct action
to lead the industry, particularly in GHG emissions reduction,
farming practices and sustainable packaging. The Company
has also started the journey to become more focused on
supporting healthy ecosystems through nature positive
initiatives.
—Capture full potential in China IMF: To achieve its
commercial ambitions, at this stage the Company remains
primarily focused on capturing its opportunity in IMF in
the China market. To accomplish this, the Company has
identified that it must increase control over its China label (CL)
and English label (EL) distribution, get closer to consumers,
continue to increase investment in its brand, and further invest
in its digital marketing and e-commerce capability.
—Ramp-up product innovation: While the Company has
historically been focused on a narrow product range, to
continue to drive growth in IMF and beyond, it will be
important to expand its portfolio both in China label and
English label IMF, as well as entering adjacent product
categories in key markets.
—Transform our supply chain: Connected to its IMF and
innovation ambitions, the Company will need to transform its
supply chain. This includes obtaining additional China label
IMF registrations, increasingly leveraging its manufacturing
capability at Mataura Valley Milk Limited (MVM), partnering
with new suppliers to deliver new products and, over time,
developing supply capability in China.
—Accelerate path to profitability for MVM and USA: To
maximise investment in China and to improve Group return on
sales, the Company needs to ensure it accelerates the paths to
profitability for each of the USA and MVM. The Company is
targeting achieving this during FY26 or sooner.
PurposeWe pioneer the future of Dairy for good
An A1-free world where Dairy nourishes all people and our planet
Vision
Goals
Strategic
priorities
Enablers
Values
PEOPLE
Create a safe, diverse,
inclusive and engaging
place for our people to
thrive, support our farmers
and contribute to our
communities
PLANET
Protect our planet and cows,
rethink packaging, achieve
net zero and become nature
positive
CONSUMERS
Bring the unique benefits
of high quality, pure and
natural a2 Milk™ to as many
consumers as possible
SHAREHOLDERS
Create long-term, enduring
value for shareholders
and a trusted, transparent
relationship
Bold passionPioneering spiritHumilityRespectIntegrity
Brand strengthScience and innovationStrategic relationshipsCapability development
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, farming
practices and
sustainable packaging
1
Capture full potential
in China IMF
– Gain more control
over CL and EL
distribution and
get closer to our
consumers
– Increase investment
in our brand, digital
marketing and
e-commerce
2
Ramp-up product
innovation
– Expand our CL and
EL IMF product
portfolios
– Enter adjacent
product categories in
relevant markets to
drive growth
3
Transform our
supply chain
– Expand CL registered
market access
– Utilise MVM and
invest in New
Zealand capability
– Develop China supply
capability over time
4
Accelerate path
to profitability
– Take action to realise
potential in USA
– Expedite insourcing
of a2™ products
and third party
nutritional volume to
significantly increase
MVM profitability
5

23
THE
a2 MILK COMPANY ANNUAL REPORT 2022
Financial measures of success
The Company’s medium-term ambition is to grow sales from
$1.2 billion in FY21 to approximately $2 billion in the next five or
more years (FY26+) and to deliver EBITDA margins in the ‘teens’.
The sales ambition is expected to be predominantly driven by
growth in China label and English label IMF as well as other
nutritional products sold in China.
The key drivers for the sales growth are:
—Increasing share of China label infant nutrition
—Supporting English label channel recovery post

COVID-19 and executing strategy to gain share
—Growing other dairy and nutritional products in

China through innovation and distribution growth
—Growing in existing and new emerging markets
—Expanding in milk and adjacent categories in ANZ and the USA
While the Company’s ambition is to improve EBITDA margins over
time, in the medium-term it is anticipated to be in the ‘teens’ due
to a range of factors. This includes China IMF market conditions
and channel dynamics, mix of business (IMF channel mix and
overall product mix), investment levels in brand and capability,
timing and investment required to deliver the Company’s priorities
around its supply chain transformation, and achieving profitability
in the USA and at MVM.
There are also key macro uncertainties that may impact

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
COV ID -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
1 Total Recordable Injury Frequency Rate (TRIFR)
Because of these uncertainties, it is very difficult to define future
state targets and when they will be achieved – the path is also
unlikely to be linear. Accordingly, future results may be materially
different to the Company’s ambition.
Non-financial measures of success
The Company is also focused on several medium-term non-
financial measures of success over time, as summarised in the
image below.
With regards to its people, the Company is targeting below 10
for its safety TRIFR
1
, improving its employee engagement score
to above 80%, and maintaining its diversity and inclusion rating,
which scored 4 out of 5 across the organisation in the Company’s
most recent engagement survey.
The Company is committed to minimising its impact on the planet
and improving a variety of areas to become a more sustainable
business. This includes targeting net zero emissions for Scope 1
and 2 by 2030 and Scope 3 by 2040, targeting 100% completion
of Farm Environmental Plans and Certified Animal Welfare
Programmes by the end of calendar year 2023 and targeting 100%
reusable, recyclable or compostable packaging with 50% average
recycled content by 2025.
The Company has also set brand health, market share, and
innovation targets to deliver on its Consumer goals. For
brand health, the Company is targeting greater than 25% for
unprompted awareness in China, loyalty of greater than 40% in
Australian fresh milk, and household penetration above 10% in the
USA in the premium milk segment.
Across market share, the Company is working to become a top
five China label IMF player with greater than 5% market share and
to have the leading English label IMF range with market share for
that range of greater than 25%. For its liquid milk business, the
Company is targeting greater than 15% market share in Australia
and greater than 5% in the premium milk segment in the USA.
For innovation, the Company is looking to secure three or more
China label registrations while also expanding its English label IMF
portfolio to grow its overall China IMF business. Additionally, the
Company is looking to drive $200 million in incremental revenue
from dairy and other nutritionals in China while also driving 25% of
sales from new products in Australia and the USA.
PEOPLEPLANETCONSUMERSSHAREHOLDERS
Safety TRIFR
1
<10
with continuous
improvement
Engagement >80%
Diversity and
inclusion rated
>4 out of 5
by team
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
Programmes
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 IMF player in
China with share
>5%
Leading EL IMF range
in China 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
Medium-term sales
ambition (≥5 years
from FY21) of ~$2.0b
Targeting EBITDA
margins in the ‘teens’
in the medium-term
Medium-term measures of success

BUILDING A SUSTAINABLE GROWTH BUSINESS
24
STRATEGIC
OBJECTIVES/GOALS
KEY SOURCES OF RISK AND OPPORTUNITY
The Company has identified nine sources of risk
and opportunity relevant to its business activities.
Major
international
events
Climate and
nature
The sale of
nutritional
food
products
Talent and
culture
Doing business
in international
markets
Social licence
to operate
Competitive
intensity
Strategic
partnerships
Evolving
technology
The Company recognises that the
management of risks and opportunities
is an inherent part of actively growing
and developing the business.
Effective risk management anticipates risk, develops strategies
to manage risk and enables the Company to capitalise on
opportunities, which is critical to sustainable, long-term

value creation.
The a2MC Risk Management Policy outlines the programme
the Company has implemented to deliver appropriate risk
management within its processes, systems, culture and decision
making. A copy of the Risk Management Policy is available at
www.thea2milkcompany.com/corporate-governance.
Governance of risk
The Board is responsible for the overall system of internal
control and has delegated responsibility for ensuring that the
Company maintains effective risk management and internal
control systems and processes to the Audit and Risk Management
Committee. The Audit and Risk Management Committee reviews
the risk profile including material business risks and provides
regular reports to the Board on the operation of the internal
control system.
The Company’s management is responsible for designing and
implementing risk management and internal control systems
which identify material risks for the Company and aim to provide
the Company with warnings of risks before they escalate.
Management implements the action plans developed to address
material business risks across the Company.
Management regularly monitors and evaluates the effectiveness
of the action plans. In addition, management promotes and
monitors the culture of risk management within the Company
and compliance with the internal risk control systems and
processes. Management reports regularly to the Board regarding
the status and effectiveness of the risk management programme.
The Committee and management may also refer particular risk
management issues to the Board for final consideration

and direction.
RISKS AND OPPORTUNITIES
The following summary provides an overview of each key source,
including key economic, environmental and social risks with the
potential to materially impact the Company’s ability to achieve

its objectives. It also summarises how the Company is responding
to those risks, as well as associated opportunities.
Approach to risk management
Our approach to risk management is anchored to ISO 31000
principles to ensure that robust foundations support our processes
and procedures and, in doing so, this allows the Board to fulfil its
governance responsibilities by making a balanced assessment of
the risk management process. Risks are identified, assessed and
monitored through regular workshops with senior management
and the Audit and Risk Management Committee on a regular
basis. Mitigating actions and controls are designed to limit the
likelihood of key risks occurring, as well as the associated impact

if these risks do occur.
Our risk management approach evolves continually as we identify,
assess, mitigate, and monitor both financial and non-financial
risks that may affect our ability to achieve our strategic objectives.

25
THE
a2 MILK COMPANY ANNUAL REPORT 2022
The sale of nutritional food products
a2MC supplies food products for human consumption, including complex nutritional products for
consumption by infants and children. As a result, the Company is inherently exposed to potential
product quality, food safety and/or food integrity events.
Key RisksKey Responses
—Genuine, perceived, or alleged
contamination, or unsafe products
—Priority focus on food safety and quality management
—Food safety and quality systems audited by accredited
third-party verification agencies
—High-quality third-party manufacturing partners
—Rigorous positive release protocols (comprehensive testing of product
quality and integrity prior to the release of finished product)
—Traceability systems
—Product innovation and technology to enhance product security
—Testing of certain distributed products in selected markets
—Dedicated customer careline covering all active markets
Key Opportunities
An increasingly health-conscious society combined with the size and enduring nature of the nutritional food category provides
significant opportunity to:
—Leverage our pioneer status to promote the benefits of products made with a2 Milk™
—Assert the Company’s competitive advantage in beta casein testing and technology (our True a2™ ecosystem – page 43)
—Continually advance an uncompromising, unrivalled and renowned Quality Assurance programme
—Maximise the potential of our existing product portfolio in key markets
—Explore opportunities to expand our existing product portfolio, and enter adjacent product categories to drive growth

BUILDING A SUSTAINABLE GROWTH BUSINESS
26
Doing business in international markets
With the Company’s expanding geographical footprint, it is exposed to various risks and opportunities
associated with conducting business in international markets.
Key RisksKey Responses
Failure to renew the SAMR product registration
1

for China label infant nutrition:
—Extension of existing GB registered product
from September 2022 to February 2023;
and/or
—Approval of GB registration for new
formulation
—Close partnership with infant nutrition manufacturer, Synlait Milk Limited
(Synlait), which holds GACC
2
and SAMR registrations allowing canned
formula to be exported to and sold into the China market
—Supported Synlait to complete and submit SAMR China label IMF new

GB registration dossiers for all stages with site audit timing to be confirmed
—Operational plans in place to navigate orderly transition to newly registered
China label product
—Changing macro trends (including
demographic, economic and social trends),
which can impact the size of addressable
markets and/or the complexity of operating
in those markets (e.g. decline in birth-rate
in China)
—Continued strong investment in brand to grow share
—Agile approach to the execution of sales and marketing programmes,
adjusting where appropriate to reflect shifts in consumer and
channel dynamics
—Leverage multi-label, multi-channel portfolio to broaden distribution
and consumer reach (including into lower-tier cities in China)
—Exploring opportunities to expand our China label and English label
infant nutrition product portfolios; and enter adjacent product categories

to drive growth
—Geopolitical tension and regulatory
environments influencing channels to
market, market access, product registrations,
trade tariffs, taxes, and quotas
—Strong understanding of local standards, regulations and guidelines,
supported by expert in-market advisory
—Strong strategic and collaborative partnerships with Chinese State-owned
enterprises
—A multi-product, multi-channel route to market strategy for the sale of infant
nutrition into China
—Foreign currency exchange rate volatility —Treasury management activities, providing oversight and monitoring of foreign
currency exposures with some cash flow hedging
—Multilayered, complex, and opaque route
to market channels
—Actions taken to simplify and delayer our English label infant milk formula
distribution network, supported by more transparent partner relationships
Key Opportunities
Doing business in international markets provides the opportunities for us to fulfil our strategic goal to ‘bring the unique benefits of
pure and natural a2 Milk
TM
to as many consumers as possible’. These include:
—Significant further growth potential of infant nutrition and other products in China, the largest and most attractive market for
infant nutrition globally
—Exposure and potential entry to large and attractive new markets
—Ability to leverage the unique benefits of a2 Milk
TM
to ‘cut through’ to consumers in international markets
—Operational resilience through developing and leveraging enduring strategic relationships
—‘Experience sharing’ of consumer and product insights across markets
1 Registration achieved by Synlait and given by China’s State Administration of Market Regulation (SAMR) in September 2017 for the Company’s China label
infant nutrition. SAMR requires registration to be held in the name of the manufacturer as opposed to the brand owner.
2 General Administration of Customs of the People’s Republic of China.
RISKS AND OPPORTUNITIES CONTINUED

27
THE
a2 MILK COMPANY ANNUAL REPORT 2022
Major international events
The COVID-19 pandemic continues to cause unprecedented social, economic and supply chain
disruptions globally. Recent international conflicts have also reshaped the global energy market, and
contributed to major global food shortages and increasing rates of inflation globally. Additionally,
potential outbreaks of animal diseases are a risk for the business.
Key RisksKey Responses
—Route to market disruption and transport
cost volatility
—Continued close cooperation with Synlait to maintain continuity of infant milk
nutrition supply, and third-party suppliers in Australia and the USA to maintain
continuity of liquid milk supply
—Increased warehousing locations in China to mitigate against disruptions
caused by lockdowns associated with COVID-19
—Enhanced inventory surveillance and reporting to maintain stock control
and availability through the supply chain
—Health and wellbeing of our people —Adoption of robust infection control protocols in line with all relevant
government requirements, particularly across the Company’s
manufacturing facilities
—Inflationary pressures creating volatility
in operating costs and availability of
ingredients and raw materials
—Use of long-term milk supply agreements in certain markets
—Forward procurement of key ingredients to stabilise price and ensure
availability
—Multiple sources of supply for certain ingredients
—Strong premium brand providing platform for cost recovery to varying extent
through wholesale price adjustments
—Potential animal disease incursions
impacting the ability to supply export
markets
—Assist farmers with farm biosecurity plans and preparedness
—Business Continuity and Crisis Management frameworks and procedures
including simulations to mimic real life events such as animal disease outbreaks
Key Opportunities
Our response to global events provides opportunities to enhance our profile in existing markets, and provide support to disrupted
markets.
—Consumer share gain opportunities through ensuring product availability in a supply-constrained environment
—Our Company structure provides agility to rapidly respond to global events
—New market/product opportunities

BUILDING A SUSTAINABLE GROWTH BUSINESS
28
Competitive intensity
a2MC has experienced significant growth over recent years, driven predominantly by the success of
its infant nutrition businesses in Australia and China and liquid milk businesses in Australia and the
USA. This success has inspired others to compete with a2MC in the A2 beta casein protein segment.
Key RisksKey Responses
—Market share erosion in core markets due
to domestic brands’ potential to resonate
and connect more effectively with local
consumers than international brands
—Significant and ongoing investment in brand building activities globally
—Use of consumer and health care professional education to ensure clear
understanding of the unique A2 protein proposition and benefits
—Significant and ongoing investment in science, nutrition and innovation globally
to ensure we deliver unique consumer value propositions in all our markets
underpinned by our proprietary know-how and quality processes
—Regular monitoring of market share data and consumer/shopper insights,
preferences, and expectations
—Continued investment in intellectual property to expand the Company’s
trademark and patent portfolio
—Infringements of our intellectual property
rights resulting from third-party conduct
or claims against such IP rights
—Monitoring infringement of the Company’s IP and taking action to protect it
—Counterfeit products —Processes and technology to identify and manage potential counterfeit products
including the use of external agencies and in-market authentication testing
—Development of the True a2
TM
ecosystem, which includes independent product
audits and QR code verification systems to ensure products are of the highest
quality and safety (see True a2
TM
page 43)
Key Opportunities
While competitive intensity can present market share erosion risks, it also expands consumer awareness and engagement with the
benefits of a2 Milk
TM
, encourages opportunities in relation to product innovation, and allows a2MC to further leverage its ‘pioneer’
and premium brand status. Opportunities exist to:
—Emphasise our proprietary know-how and quality processes to deliver A2 protein products that are of unrivalled quality
—Invest in science, nutrition and innovation to continue to pioneer the future of dairy and explore new opportunities
—Drive awareness and education of our unique A2 protein proposition and benefits to increase our consumer base
Climate and nature
Being heavily dependent on agricultural inputs, a2MC is exposed to short, medium and long-term
climate and environmental risks including physical risks resulting from acute and chronic changes in
climate, and transition risks resulting from regulatory, or market pressures associated with on-farm
emissions (see Task Force on Climate-related Financial Disclosures page 47).
Key RisksKey Responses
—Climate change effect on
biodiversity, soil, ecosystems,
water access and uncertainty
in carbon pricing, quality and
availability of raw materials and
ingredients
—Establishing baselines and setting targets across GHG emissions, energy and water
consumption, waste-to-landfill and product packaging (see pages 36 to 39)
—Sourcing milk from diversified milk pools within New Zealand, Australia and the USA and
incorporating climate impacts into future sourcing strategies
—Investing in new technologies and emissions reduction initiatives
—Global framework for farm environmental plans, addressing the most material aspects of
environmental management in the dairy industry
—Farmer grant programmes to support farmer-led sustainable dairy farming projects
Key Opportunities
Acknowledging climate and nature risks provides significant opportunity for the Company to play a leading role in driving industry
change. Building trust with increasingly climate aware consumers and ensuring climate scenarios and modelling are considered in
medium-term and long-term strategic planning to develop operational resilience. Opportunities exist to:
—Develop operational resilience by incorporating climate and nature scenario modelling into long-term strategic planning
—Strengthen brand and social positioning via a leadership position in GHG emissions reduction, recyclable packaging and
farming practices
—Realise increased productivity and efficiency via new technologies and practices that lower emissions and environmental impact
—Enhance our climate risk modelling and Task Force on Climate-related Financial Disclosures (TCFD) reporting and early adoption of
the voluntary Taskforce of Nature-Related Financial Disclosures framework
RISKS AND OPPORTUNITIES CONTINUED

29
THE
a2 MILK COMPANY ANNUAL REPORT 2022
Strategic partnerships
The Company’s success has been underpinned by relationships with key strategic partners, including
critical supply and distribution partners. As a result, the business is inherently exposed to the
operations of key partners changing in a material way, or as the result of one or more partners
reprioritising their support for a2MC.
Key RisksKey Responses
—Disruption to key partner operations
impacting supply and/or access to critical
markets
—A broad range of strategic partner relationships have been developed over time
—Long-term partnership with dairy nutritionals manufacturer, Synlait,
complemented by the Company’s equity interest in that business (and in which
Bright Dairy, a multinational food and beverage company headquartered in
China has a 39.0% interest)
—Acquisition of MVM providing supplier geographical diversification
—Strong partnership with China State Farm Holding Shanghai Co., Ltd,

a2MC’s exclusive import agent for its China label products
—Strengthened relationship with key partners in China via MVM acquisition,
forming a joint venture with China Animal Husbandry Group
—Key partners reprioritising their support for
a2MC or failing to act ethically or in line
with a2MC’s values
—Multiple milk processors contracted in Australia and the USA, mitigating reliance
on a single processor in these regions
—A controlling 75% interest in MVM acquisition supports growth of the
Company’s nutritionals business and further strengthens our relationship with
China National Agriculture Development Group Corp
—Actions taken to simplify and delayer our English label infant milk formula
distribution network, supported by more transparent partner relationships
—Ability to ensure timely supply of finished
products to customers
—Ongoing access to milk pools that exceed the Company’s current usage
requirements
—Access to manufacturing capacity that exceeds current usage requirements
Key Opportunities
Our key partnerships provide significant opportunities including:
—Access to high quality manufacturing capacity to support growth ambitions
—Access to international markets (including opportunities to expand product registrations)
—Opportunities to diversify supply chain partners over time to build operational resilience
Evolving technology
Technology is used by a2MC to process transactions, manage stock, manage product purchases and
deliveries and manage operational production amongst other functions. Uninterrupted availability of
the technology solutions is a crucial element of the value creation chain.
Key RisksKey Responses
—Cyber attacks (including ransomware)
—Unauthorised disclosure of or loss of
confidential data/information
—Improved cyber security systems and protections, including restricting
access to sensitive data, conducting regionally-specific cyber security audits,
implementing more sophisticated cyber tracking and monitoring tools
—Reliability/stability of critical applications —Transitioned to Tier 1 cloud-based enterprise resource planning (ERP) software
and reduced the number of applications in use across the business
Key Opportunities
Advances in technology also present significant opportunities, including:
—Digital platforms that support consumer engagement and marketing initiatives
—Real-time data to drive insights and informed decision making
—The use of product technology including traceability systems
—Increased automation of manufacturing and distribution processes over time

BUILDING A SUSTAINABLE GROWTH BUSINESS
30
Talent and culture
The Company relies on the talent and wellbeing of its people and the effectiveness of its culture
for success. The loss of business-critical skills or the inability to identify, attract and retain qualified
people could have a direct impact on managing business operations successfully.
Key RisksKey Responses
—Physical and psychological
health, safety and wellbeing
—Invested further in resourcing structures to ensure capacity supports business needs
—Implemented an integrated safety management framework, deployed through education,
leadership and establishment of revised safety standards across all sites and operations
—Established a Head of Workplace Health and Safety role
—Established numerous wellbeing initiatives (see People section, from page 32)
—Loss of business-critical skills
and/or corporate knowledge
—Alignment of remuneration to market benchmarks, Company objectives and risk tolerances
—Reduced workforce capacity
and productivity, and people
capability
—Commenced the ‘Thrive’ leadership programme with the Executive Leadership Team and
Senior Leaders as well as ‘Situational Leadership’ training for leaders at all levels
—Investment in training and career development programmes
—Succession planning to ensure continuity of knowledge, skills and experience
Key Opportunities
Providing a safe, diverse, inclusive and engaging working environment is foundational to attracting, developing and retaining talent,
which in turn is critical to sustainable growth. Opportunities exist to:
—Amplify the unique attributes of working at a2MC and aim to be the employer of choice in the sector
—Nurture the inherent energy, passion and enthusiasm that working for a trusted and unique brand attracts
—Promote the employee experience, foster a learning environment, and celebrate diversity and inclusion
—Cultivate our purpose-driven culture
RISKS AND OPPORTUNITIES CONTINUED

31
THE
a2 MILK COMPANY ANNUAL REPORT 2022
Social licence to operate
Acting and operating in an ethical manner, consistent with the expectations of our shareholders,
customers, consumers, suppliers, regulators, governments, communities and other stakeholders
protects our reputation and economic sustainability. A real or perceived abuse of our social licence to
operate could result in significant brand damage, financial loss, and the loss of strategic partnerships.
Key RisksKey Responses
—Non-compliant or
substandard animal welfare
practices
—The Company’s animal welfare programme aligns to globally recognised frameworks for
Animal Health and is evolving from the Five Freedoms Model to the Five Domains Framework
of animal welfare (refer to page 37)
—Responsible marketing
breaches (eg promotion of
breast milk substitutes)
—Signatory to the Marketing in Australia of Infant Formula: Manufacturers and Importers
Agreement 1992 (MAIF Agreement) (refer to page 42)
—Cross-functional approval process implemented (including regulatory and legal review) prior

to publication of marketing material
—Modern slavery in the supply
chain (refer to page 34)
—Modern slavery risk management programme, with annual Modern Slavery Statement
submissions
—Corporate values and a suite of corporate codes and polices developed and embedded
(including a Code of Conduct and a responsible sourcing policy)
—Potential bribery and
corruption allegations
—Corporate values and a suite of corporate codes and polices developed and embedded
(including an Anti-bribery and corruption policy and gifts and benefits policy)
—Water usage, waste water
and water pollution
—Establishing baseline and setting targets across water
—Water use monitoring systems in place at MVM and Smeaton Grange milk processing site
—Undertaking water usage reduction projects and utilisation of a waste-water treatment system
on-site at Smeaton Grange, with liquid waste products returned to farms and used as fertiliser
—Farmer grant programmes to support farmer-led sustainable dairy farming projects
Key Opportunities
Our purpose to ‘pioneer the future of dairy for good’ refers to a significant leadership opportunity to do business the ‘right way’ and
exceed stakeholder expectations in doing so. This includes:
—Aspire to lead the market in making a positive contribution to society. For example to set and monitor industry leading standards
for animal welfare on a2MC product supplier farms and to commit to engage and invest in the communities in which the
Company operates through proactive programmes as well as reactive support in times of need
—Take a leadership position in protecting our planet

32
FY22 PROGRESS
Health and safety
—Implemented an integrated safety management
framework, deployed through education,
leadership and establishment of revised safety
standards across all sites and operations.
—Established a Head of Workplace Health and Safety role.
—Provided free access to all team members and
their families to resources and tools promoting
mindfulness, meditation and mental wellbeing.
—Offered the Company’s first ever ‘Wellbeing
Day’ across all regions in recognition of
employees’ efforts throughout the year.
—Renewed and updated health and safety
policies across the business.
—Continued to partner with ‘Headspace’, a global
provider of web-based resources to promote
mental health training and support.
Investment in leadership
—Commenced the ‘Thrive’ leadership programme with the
Executive Leadership Team and Senior Leaders, integrating
constructive leadership tools within the business.
—‘Situational Leadership’ training being undertaken
by all leaders at all levels – the intent of this
programme is to provide an integrated and practical
approach to effective leadership styles.
Reward and recognition
—Launched global reward and recognition platform
‘LegenDairy’, accessible to all team members.
—The platform provides wellbeing and rewards,
celebrates tenure and also provides an opportunity
to celebrate the many examples of individuals and
teams who are going ‘above and beyond’ in a way
that is consistent with the Company’s values.
—Celebrated team members in Global Town Halls
which recognises monthly ‘a2 Legends’.
—Celebrated annual a2 Legend award
at Senior Leaders conference.
Recruitment
—Implemented frameworks to underpin
the employee lifecycle.
—Adopted Recruitment Provider Onsite model to
integrate and align the talent acquisition function
to business values, goals and future success.
Supporting a diverse and inclusive workplace
—Enhanced family leave policy in Australia,
New Zealand, China and the USA.
—Launched the ‘Families @ a2’ platform for team
members to gain access to family support resources.
—Established a membership with
the Diversity Council of Australia.
Create a safe, diverse, inclusive and engaging place for our people
to thrive, support our farmers and contribute to our communities.
PEOPLE
Passionate and thriving team
The Company is committed to creating a safe and highly diverse and inclusive environment for its people. The Company’s ambition is
to be an employer of choice by creating a fulfilling employee engagement experience that enables employees to thrive personally and
professionally. To facilitate this ambition, the Company focuses on health and safety, invests in leadership, promotes the employee
experience, fosters a learning environment, and celebrates diversity and inclusion.
During FY22, the Company launched various initiatives to deliver on its ambition to achieve engaged and effective teams who create
long-term value for the Company and its shareholders.
GOALS
SDG alignment:
BUILDING A SUSTAINABLE GROWTH BUSINESS

33
THE
a2 MILK COMPANY ANNUAL REPORT 2022
NEXT STEPS
—Facilitate evolution of individual development plans
—Launch of ‘Udemy’, an online learning platform
—Develop and launch the Company’s
Reconciliation Action Plan
—Facilitate series of education sessions on
unconscious bias and mental wellness
—Continue to rollout constructive leadership
training programme across the organisation
—Launch upgraded website capability for ‘Careers
at a2’, showcasing ‘Working at a2’ insights
and providing future team members with an
understanding of the Company’s purpose, culture
and values, as well as vacancies and benefits
—Embed partnership with an external provider as
an integrated talent function in the ANZ business
that will enable a proactive and strategic approach
to talent acquisition and talent management
—Enhance current benefits to strengthen the
Company’s value proposition for employees
KEY METRICS DATA
As at 30 June 2022CohortMale%Female%
Variance to
Last Year %
females
Directors*6
350%350%0%
Executive Leadership Team*12975%325%11%
People Leaders**956467%3133%(8%)
Remaining Team Members31514345%17255%(7%)
Total42721851%20949%(7%)
* David Bortolussi has been included in both the Director and ELT calculations.
** The a2 Milk Company defines People Leaders as any Team Member with direct reports.
Tenure as at
30 June 2022Number%
Variance
to LY
0 -2 Years1874 4%(8%)
2-5 Years1904 4%15%
5+ Years5012%(6%)
Total427
Age as at
30 June 2022Number%
Variance
to LY
Under 305012%1%
30 to 5029168%4%
Over 508620%(5%)
Total427

34
GOALS PEOPLE (CONTINUED)
Modern slavery
The Company’s values and principles have an impact well beyond its
own operations. The Company believes in the vital role business plays
in upholding human rights and considers it a basic responsibility to
ensure that individuals, communities and the environment are treated
with respect.
Modern slavery is unacceptable and addressing risks of modern
slavery is an important part of the Company’s approach to business
and human rights. The Company’s approach to human rights and the
management of modern slavery risk is guided by the United Nations
Guiding Principles on Business and Human Rights. The Company
is committed to continuing to develop its approach and focus on
addressing modern slavery risks within its operations and supply chain.
During FY22, the Company delved deeper into its operations and
supply chain by continuing to scale up its due diligence both internally
and externally. The Company undertook a second-tier review of its
modern slavery risks, expanded its due diligence process for higher risk
suppliers, reviewed its indirect modern slavery risks in its operations
and supply chain, and completed its internal due diligence process
to better understand the minimum employment standards across its
global operations. This due diligence process assisted the Company in
determining which countries and industries have higher modern slavery
risks and therefore which to focus on to improve outcomes for workers.
In the identified areas of concern, the Company took a more
focused approach. After its review of the employment standards for
promotional staff used in China, the Company made changes to its
engagement with these companies, creating better oversight and
enforcing stricter and better work practices. The Company has also
developed a pledge from its USA farmers whereby they confirm that
they do not engage in modern slavery practices.
The Company is now developing a Modern Slavery Response Protocol.
The protocol will provide further structure to the Company’s modern
slavery programme and sets out the key pillars of the Company’s
modern slavery risk management (response) programme, with action
items aligned to each pillar.
FY22 PROGRESS
—Updated responsible sourcing policy
—Undertook second-tier review of modern slavery risks
—Commenced review and analysis of modern slavery risks in
relation to MVM
—Reviewed indirect modern slavery risks in operations and
supply chain
—Expanded due diligence process for higher risk new suppliers
—Published the Company’s second Modern Slavery Statement in
December 2021
NEXT STEPS
—Further review of the Company’s Responsible Sourcing Policy
—Complete review and analysis of modern slavery risks in
relation to MVM
—Prepare modern slavery questionnaire to be sent to all suppliers
of the Company
—Prepare modern slavery remediation process
—Expand existing training programme to include training tools
for key employees, on-farm suppliers and the China team
Enriching communities
The Company recognises that it has a responsibility to
support and contribute to the communities in which it
operates. a2MC strives to make a difference by helping
communities thrive and supporting organisations that are
helping to create a brighter future for children and families,
and the Company’s farming communities.
The Company has developed a community support
framework to guide how to engage, invest in, and give back
to the communities in which it operates, act on relevant
social issues, and contribute to other programmes that are
aligned to the Company’s purpose and which employees are
passionate about.
Support takes the form of funds and product donations
to help communities, as well investments of time from
the Company’s people to work directly with partner
organisations. As a business founded on innovation, the
Company believes that science plays an essential role in
enhancing the health and wellbeing of communities over time
and by harnessing science, the Company can deliver superior
outcomes for its consumers.
FY22 PROGRESS
Proactive support
—Foodbank School Breakfast Program (Australia)
—Cure Kids support (New Zealand)
—KidsCan (New Zealand)
—Feed the Children (USA)
—More Good for Rural Schools (China)
—Operation Smile (China)
Event-based (or reactive) support
—GIVIT New South Wales and Queensland Floods
(Australia)
—Save the Children (Ukraine)
—Boulder Fires contribution (USA)
—Shanghai lockdown product donations (China)
Additional farming community specific
programmes and support
$3.2m
in cash and product donations
BUILDING A SUSTAINABLE GROWTH BUSINESS

35
THE
a2 MILK COMPANY ANNUAL REPORT 2022
KIDSCAN (NEW ZEALAND)
KidsCan is New Zealand’s leading charity dedicated to
helping New Zealand children affected by poverty. The
Child Poverty Monitor in New Zealand shows 11.3% of all
children living in households in material hardship regularly
go without essentials.
The Company has recently become a major partner
of KidsCan to help support low socio-economic early
childhood education centres across New Zealand to
provide children attending those centres with food,
clothing, and health products. a2MC supports KidsCan’s
belief that education is a child’s ticket out of poverty and
that children struggle to learn when they are cold

or hungry.
The Company is proud to partner with KidsCan, providing
children with the essentials, to help them participate in
learning and have the opportunity for a better future.
OPERATION SMILE (CHINA)
About 25,000 babies born in China each year suffer from
cleft lip palate. Corrective surgery can help to transform
those children’s lives – but they cannot undergo surgery
until they achieve the requisite ‘health standard’, which
includes weight targets.
The Company partnered with Operation Smile during the
year to provide corrective surgery expenses and nutrition
products to 300 children suffering from cleft lip palate,
before and after their operations.
With more than 6,000 medical volunteers from around
the world, Operation Smile is one of the world’s largest
volunteer-based not-for-profit organisations.
FOODBANK (AUSTRALIA)
The Company has supported Foodbank with fresh milk
product donations in New South Wales and Victoria since
2015, scaling up support in times of heightened need.
In FY22, support was increased by providing a cash
donation to support Foodbank School Breakfast
Programs. The Company also donated a2 Milk
TM
products
to Foodbank through the National Donor Partnership.
The School Breakfast Program provides a healthy
breakfast for school children who would otherwise go
without, and delivers important benefits for the students
across a broad range of physical and mental health
outcomes, including energy levels and concentration.
Through this donation, the Company was able to support
Foodbank to provide 47 schools in some of Australia’s
most remote Indigenous communities with access to the
School Breakfast Program.
FEED THE CHILDREN (USA)
The Company partnered with Feed the Children in the
USA to help give struggling families the supplies they need
to send their children back to school with confidence.
With the increased hardship children and families have
faced since the outbreak of COVID-19, it is estimated that
1 in 6 children in the USA suffer from food insecurity.
In August and September 2021, the Company donated
cash to provide food and supplies to school children,
giving children what they need to do and be their best.
CURE KIDS (NEW ZEALAND)
Cure Kids is the largest funder of child health research in
New Zealand after the government. The Company was
proud to support Cure Kids Professorial Chair, Andrew
Day, in FY20 and FY21 to research digestive health for
children, with a special focus on coeliac disease and
irritable bowel disease. In FY21 and FY22, the Company
also made a significant donation to Cure Kids’ Elliott-
Caughey Fund, a fund created to recognise the co-
founders of Cure Kids, emeritus Sir Bob Elliott and Dr Ron
Caughey. Sir Bob was passionate about conditions of
inequity and preventable childhood illness, hence those
conditions are a focus for this fund. This is a continuation
of research support from a2MC into children’s health

and nutrition.

36
The relationships the Company has with
farmers and the natural systems in which
it operates are pivotal to its success and
long-term value creation.
The Company continues to work with farmers to promote strong
animal welfare practices, and put in place farm environmental
plans, which are key initiatives that support the natural resources
utilised by the business. Additionally, the impact of climate change
has the potential to drive significant structural transformation
across the dairy sector and the Company is actively looking at
ways to reduce its impact on climate and the environment more
broadly. The Company has a number of initiatives addressing key
areas as they relate to the resources and the downstream impacts
as a result of using these resources.
Thriving farms
Farmers play a vital role in the Company’s supply chain, not
only as suppliers of the precious milk source for the Company’s
products but also as stewards of the environment and as vital
contributors to local communities. In addition, the humane
treatment of cows is of the utmost importance. The Company
is committed to working with and supporting farmers to enable
them to improve the impact on the environment.
Farm environmental plans
The Company has developed a global framework for farm
environmental plans. The principles of the framework address

the most material aspects of environmental management in
the dairy industry:
—Lowering GHG emissions
—Managing water quality and efficiency
—Managing soil quality
—Boosting on-farm biodiversity
—Improving nutrient (effluent) management
PLANET
Protect our planet and cows, rethink packaging, achieve net zero
and become nature positive.
TARGETS AND COMMITMENTS
Climate impact
—Net zero GHG emissions for Scope 1 and 2 by 2030
—Net zero GHG emissions for Scope 3 by 2040
Farm environmental plans
—100% of farms supplying raw A1 protein
free milk to have a farm environmental
plan in place by the end of 2023
Animal welfare
—100% of farms to be certified under an
upgraded programme by the end of 2023
Other natural resources
—Reviewing water, waste and biodiversity targets as
part of work commenced on nature risk assessment
FY22 PROGRESS
—Continued to roll out farm environmental plans
—Continued to evolve and refine farm
environmental plan roadmap
—Secured in-region partners to execute roadmap
—83% of farms supplying raw A1 protein free milk
had a farm environmental plan in place, up from
81% in FY21 and approximately 65% in FY20
NEXT STEPS
—Progress towards farm environmental
plan target for end CY23
—Review farm ambassador programme
—Establish farm environmental plan
programme with Mataura Valley Milk
GOALS
SDG alignment:
BUILDING A SUSTAINABLE GROWTH BUSINESS