Fonterra Shareholders’ Fund Interim Results 2023

Page 1

Results for announcement to the market
Results for announcement to the market
Name of issuer Fonterra Shareholders’ Fund
Reporting Period 6 months to 31 January 2023
Previous Reporting Period 6 months to 31 January 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$39,000 N/A
Total Revenue $39,000 N/A
Net profit/(loss) from continuing
operations
$nil -%
Total net profit/(loss) $nil -%
Interim Distribution
Amount per Quoted Equity
Security
$ 0.10
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date 23/03/2023
Distribution Payment Date 14/04/2023
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$3.23 $3.50
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Please refer to the unaudited interim financial statements for further
explanation. Revenue from continuing operations comprises net fair value
movements of Economic Rights of Fonterra Shares, and (if any) dividend
income. Revenue from continuing operations has moved from a loss in the
prior period of $10,000,000 to a gain for the current reporting period.
Therefore, the percentage change is not considered meaningful.
Authority for this announcement
Name of person

authorised to
make this announcement
Andrew Cordner

Contact person for this
announcement
Simon Till

Contact phone number
+64 21 777 807

Contact email address
Investor.relations@fonterra.com

Date of release through MAP

16/03/2023

Unaudited interim financial statements accompany this announcement.

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Fonterra
Shareholders’
Fund
Interim Report
FOR THE SIX MONTHS ENDED 31 JANUARY 2023

Contents
CHAIR REPORT03
MANAGER’S STATEMENT04
STATEMENT OF COMPREHENSIVE INCOME05
STATEMENT OF CHANGES IN AMOUNTS ATTRIBUTABLE TO UNIT HOLDERS05
STATEMENT OF FINANCIAL POSITION06
CASH FLOW STATEMENT06
SIGNIFICANT ACCOUNTING POLICIES07
NOTES TO THE INTERIM FINANCIAL STATEMENTS08
INDEPENDENT REVIEW REPORT10
DIRECTORY11
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
02

Chair Report
Dear unit holders,
Fonterra has had a strong first six months for the 2023 financial year.
Profit after tax increased 50% to $546 million, and an interim dividend of
10 cents per share has been declared.
As a result, unit holders will receive an interim distribution of 10 cents
per unit. The record date for the interim distribution is 23 March
2023 and the payment date is 14 April 2023. The suspension of the
distribution reinvestment plan remains in place as Fonterra progresses
the requirements to implement its Flexible Shareholding structure on
28 March 2023.
Fonterra has upgraded its full year forecast normalised earnings from
50-70 cents per share to 55-75 cents per share, and noted it expected
to be able to pay a strong full year dividend. It has also provided an
update on its proposed capital return to shareholders and unit holders,
including the intention to distribute around 50 cents per share, subject to
completion of the sale of its Chilean business, Soprole.
It is pleasing to see Fonterra performing well against a backdrop of
ongoing market volatility, with the business’ scale and diversification
across channels and markets enabling it to navigate through disruption
and make the most of favourable market conditions in several areas.
I will take the opportunity to note in this report some of the highlights
and challenges so far. For further clarity and detail, I encourage you to
read Fonterra’s 2023 Interim Report.
At the AGM in November 2022 we farewelled John Shewan, Kim Ellis and
Donna Smit from the Board and two new Independent Directors; Carlie
Eve and Alastair Hercus were elected to the Board. Fonterra appointed
John Nicholls as a Director.
Capital returns
Fonterra had previously stated an intention to return around NZ$1 billion
to shareholders and unit holders by FY24, subject to the reviews of its
ownership of Fonterra Australia and Soprole. Fonterra has since made
the decision to retain full ownership of Fonterra Australia. However,
the sale of Soprole is proceeding and recently received approval from
the Chilean competition authority in February. The sale of Soprole
remains subject to satisfaction of several other conditions including
commencement of an irrevocable public tender offer process in Chile for
the outstanding shares in Soprole not already owned by Fonterra.
Following completion of the sale of Soprole, Fonterra intends to return
around 50 cents per share and unit, which is approximately $800 million.
Fonterra CEO, Miles Hurrell, has said Fonterra is aiming for a record date
for the proposed capital return in late September 2023, with cash to be
received by shareholders and unit holders the following month.
FSF Management Company Limited (FSF) has been briefed on the
proposed mechanism by which Fonterra proposes to return capital to
shareholders and unit holders later this year. The board of FSF formed a
subcommittee of independent directors to consider the matter and has
obtained independent legal advice.
The independent directors are satisfied the mechanism proposed
by Fonterra is appropriate to ensure unit holders are paid the same
proportionate amount of cash in relation to the economic rights held
in the Fonterra Shareholders’ Fund, as would be distributed to Fonterra
shareholders.
More information on the process will be provided to shareholders and
unit holders in due course.
Business performance for the first six months
of FY23
The Fund, and the Board of FSF Management Company Limited that
oversees it, have no direct involvement in Fonterra’s operations.
However, as a holder of economic rights in Fonterra, the performance of
the Fund is tied directly to Fonterra’s performance.
Fonterra’s operating performance is up significantly on the prior year,
with Total Group normalised EBIT of $940 million, up $333 million or
55%, from $607 million.
The performance reflects favourable margins in Fonterra’s Ingredients
channel driven mainly by the demand for protein and cheese products
across multiple markets at a time of constrained supply. The Ingredients
channel normalised EBIT increased $494 million, or 118%, to $911 million.
Fonterra’s Foodservice channel normalised EBIT has also improved, up
$81 million, or 95%, to $166 million as its in-market product prices adjust
to reflect the higher cost of milk.
Fonterra’s Consumer channel normalised EBIT was down $177 million
and resulted in a loss of $94 million, mainly due to several markets
continuing to find conditions challenging and Fonterra recognising
impairments to its New Zealand consumer business and its Asia brands
Anlene™, Anmum™ and Chesdale™.
Fonterra’s domestic consumer business, Fonterra Brands New Zealand
(FBNZ), has been under margin pressure for some time and is not
improving as fast as planned. The performance of Fonterra’s Asia brands
has been impacted by weakening currency in the markets they operate,
higher interest rates and a declining economic environment in some
South East Asian markets.
For these reasons, Fonterra has revised down the valuation of FBNZ by
$92 million and its Asia brands Anlene™, Chesdale™ and Anmum™ by
$70 million.
Fonterra has noted that the global operating environment remains
challenging with heightened market volatility, inflationary pressures, higher
interest rates, as well as weather events impacting the supply chain.
Despite these challenges, Fonterra notes that it continues to exercise
financial discipline with a focus on delivering returns, while managing
higher costs and ongoing market disruption. Fonterra’s return on capital
over the last 12 months was 8.6%, up from 6.1% for the prior period, and
its free cash flow for the first six months is more favourable relative to
the same time last year, reflecting increased earnings and the sale of the
additional inventory held at the end of the 2022 financial year.
Outlook for remainder of FY23
Mr Hurrell has noted the strong margins in Fonterra’s Ingredients
channel have been sustained longer than initially assumed, which is
factored into the increase of the full year forecast normalised earnings
guidance up to 55-75 cents per share. The forecast does assume that
these higher margins will return to more normal levels later in the
year. Fonterra’s contract rate for product to customers is in line with
its expectations, but there are a number of risks Fonterra continues to
watch and this is reflected in the 20 cent quantum of the guidance range.
Mr Hurrell believes the outlook for high quality sustainable New Zealand
dairy remains positive, and with Fonterra’s clear strategy it is well-
positioned to take advantage of this demand.
Mary Jane Daly
Chair
FSF Management Company Limited
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
03
CONTENTS

Manager’s Statement
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
FSF Management Company Limited (the Manager) presents to the unit
holders the interim financial statements for the Fonterra Shareholders’
Fund (the Fund) for the six months ended 31 January 2023.
The Manager is responsible for presenting interim financial statements
for the six months which fairly present the financial position of the Fund
and its financial performance and cash flows for that period.
The Manager considers the interim financial statements of the Fund have
been prepared using accounting policies which have been consistently
applied and supported by reasonable judgements and estimates, and
that all relevant financial reporting and accounting standards have
been followed.
The Manager believes that proper accounting records have been kept
which enable, with reasonable accuracy, the determination of the
financial position of the Fund and facilitate compliance of the interim
financial statements with the Financial Markets Conduct Act 2013 and
the Fonterra Shareholders’ Fund Trust Deed.
The Manager considers that it has taken adequate steps to
safeguard the assets of the Fund, and to prevent and detect fraud
and other irregularities.
The Manager approves and authorises for issue the interim financial
statements for the six months ended 31 January 2023 presented on
pages 5 to 9.
For and on behalf of the Board of the Manager:
Mary Jane Daly
Chair
FSF Management Company Limited
15 March 2023
Alastair Hercus
Director
FSF Management Company Limited
15 March 2023
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
04
CONTENTS

Statement of Comprehensive Income
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
$ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2023
UNAUDITED
31 JAN 2022
UNAUDITED
31 JUL 2022
AUDITED
Net fair value gain/(loss) on revaluation of Economic
Rights of Fonterra shares23(26)(78)
Dividend income161621
Investment income/(expense)39(10)(57)
Net (increase)/decrease in fair value of amounts
attributable to unit holders(23)2678
Distributions to unit holders(16)(16)(21)
Finance (cost)/income(39)1057
Profit before tax–––
Tax exp ense–––
Profit for the period–––
There are no items of other comprehensive income.
Statement of Changes in Amounts Attributable to Unit Holders
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
$ MILLION
Amounts attributable to unit holders at 1 August 2022
324
Movements:
Revaluation of amounts attributable to unit holders23
Amounts attributable to unit holders at 31 January 2023 (unaudited)347
Amounts attributable to unit holders at 1 August 2021402
Movements:
Revaluation of amounts attributable to unit holders(26)
Amounts attributable to unit holders at 31 January 2022 (unaudited)376
Amounts attributable to unit holders at 1 August 2021
402
Movements:
Revaluation of amounts attributable to unit holders(78)
Amounts attributable to unit holders at 31 July 2022 (audited)324
The accompanying significant accounting policies and notes form part of these interim financial statements.
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
05
CONTENTS

Cash Flow Statement
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
$ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2023
UNAUDITED
31 JAN 2022
UNAUDITED
31 JUL 2022
AUDITED
Cash flows from operating activities
Cash was provided from:
–Dividends received161621
Net cash flows from operating activities161621
Cash flows from financing activities
Cash was applied to:
–Distributions paid to unit holders (16)(16)(21)
Net cash flows from financing activities(16)(16)(21)
Net change in cash and cash equivalents–––
Cash and cash equivalents at the beginning of
the period–––
Cash and cash equivalents at the end of the period–––
Statement of Financial Position
AS AT 31 JANUARY 2023
NOTES
$ MILLION
31 JAN 2023
UNAUDITED
31 JAN 2022
UNAUDITED
31 JUL 2022
AUDITED
Assets
Economic Rights of Fonterra shares2347376324
Total assets347376324
Liabilities
Amounts attributable to unit holders3347376324
Total liabilities347376324
The accompanying significant accounting policies and notes form part of these interim financial statements.
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
06
CONTENTS

Significant Accounting Policies
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
a) General information
The Fonterra Shareholders’ Fund (FSF or the Fund) is a New Zealand managed investment scheme established
to be the ‘Authorised Fund’ under Fonterra’s Trading Among Farmers scheme. It is an FMC Reporting Entity
registered under the Financial Markets Conduct Act 2013 and its governing document is the Fonterra
Shareholders’ Fund Trust Deed (the Trust Deed) dated 23 October 2012 (as amended) and has a life of
80 years. Under the Trust Deed, the Fund may invest only in authorised investments, which are the Economic
Rights of Fonterra shares (Economic Rights), and issue units to investors. It may not invest directly in Fonterra
shares (Shares).
The Fund is listed on the NZX Main Board operated by NZX Limited and as a Foreign Exempt Listing on the
Australian Securities Exchange operated by ASX Limited. The activities of the Fund and the issue of units to the
public are managed by FSF Management Company Limited (the Manager). The immediate and ultimate parent of
the Fund is Fonterra Co-operative Group Limited (Fonterra, or the Co-operative).
The New Zealand Guardian Trust Company Limited (the Trustee) acts as the trustee for the Fund. The Economic
Rights assets are held on trust for the Trustee under the Fonterra Economic Rights Trust by Fonterra Farmer
Custodian Limited (the Custodian). The trustees of the Fonterra Farmer Custodian Trust also hold one unit known
as the Fonterra unit.
The registered office of the Manager is 109 Fanshawe Street, Auckland Central, Auckland 1010, New Zealand.
These interim financial statements were authorised for issue by the Manager on 15 March 2023.
Fonterra interim financial statements
Investors are encouraged to read the interim financial statements of Fonterra, together with the interim financial
statements of the Fund, given that the performance of the Fund is driven by the performance of Fonterra.
The Fonterra interim financial statements can be found at www.fonterra.com in the ‘Investors/Results &
Reporting’ section.
Fonterra’s capital structure review
At a Special Meeting held on 9 December 2021, Fonterra shareholders voted in favour of capital structure related
amendments to Fonterra’s Constitution that would give effect to the Flexible Shareholding structure (Flexible
Shareholding). The legislative changes required to enable Flexible Shareholding have been approved by Parliament
and Fonterra has announced that Flexible Shareholding will be implemented in late March 2023.
Since 6 May 2021 when Fonterra commenced consultation on its capital structure review and capped the Fund,
the ability for the Fund to acquire Economic Rights and issue units to investors (i.e. to exchange shares for units)
on a day-to-day basis has been suspended. This remains, as a capped Fund is a feature of Flexible Shareholding.
Under the Constitution, the Fonterra Board retains its current rights to regulate this process. If, in the future,
the Board considered it was appropriate to increase the Fund size, it could do so up to the overall limit specified
in the Constitution.
Flexible Shareholding caps the overall Fund size at 10% of the total number of Fonterra shares on issue. As at
31 January 2023, the Fund size is 6.7%.
On 8 June 2022 Fonterra announced that it would allocate up to $50 million to an on-market share buyback
programme, commencing 30 June 2022. During the six months ended 31 January 2023 Fonterra had bought
back 3,530,916 shares at total cost of $9 million. The buyback has not had a material impact to the Fund
size percentage.
Units continue to be available on the NZX and ASX to buy and sell and unit holders continue to be eligible to
receive distributions.
Information about Fonterra’s capital structure review is available in the ‘Investors/Capital Structure’ section of
Fonterra’s website.
As the Fund is retained under Flexible Shareholding, and Fonterra has no current intention to buy back the Fund,
these financial statements have been prepared on a going concern basis.
Activities
The principal activity of the Fund is to acquire and hold Economic Rights and issue units to investors to allow
investors in the Fund an opportunity to earn returns based on the financial performance of Fonterra.
b) Basis of preparation
These unaudited interim financial statements comply with International Accounting Standard 34 Interim Financial
Reporting and New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting.
They have also been prepared in accordance with Generally Accepted Accounting Practice (GAAP) applicable to
for-profit entities. These interim financial statements do not include all the information and disclosures required
in the annual financial statements, and should be read in conjunction with the financial statements for the year
ended 31 July 2022.
These interim financial statements are presented in New Zealand dollars ($), which is the Fund’s functional and
presentation currency, and rounded to the nearest million, except where otherwise stated.
The accounting policies applied in the preparation of these interim financial statements are consistent with those
applied in the financial statements for the year ended 31 July 2022.
c) Operating segments
The Fund’s investments only include Economic Rights assets and the Fund’s performance is evaluated on an
overall basis. Therefore, the Fund is a single-segment entity.
All of the Fund’s income is from investments in the Economic Rights.
The internal reporting provided to the Board of the Manager, which is the Fund’s chief operating decision maker,
for the Fund’s assets, liabilities and performance is prepared on a consistent basis with the measurement and
recognition principles of NZ IFRS. The Board of the Manager reviews the Fund’s internal reporting in order to
assess the performance and position of the Fund.
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
07
CONTENTS

1 FAIR VALUE MEASUREMENT
The Fund measures the Economic Rights and amounts attributable to unit holders at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The Fund uses the following fair value hierarchy that reflects the significance of the inputs used in making
the measurements:
–Level 1: Quoted price (unadjusted) in an active market for an identical instrument.
–Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly
(i.e. derived from prices). This category includes instruments valued using: quoted prices in active markets for
similar instruments; quoted prices for identical or similar instruments in markets that are considered less than
active; or other valuation techniques for which all significant inputs are directly or indirectly observable from
market data.
–Level 3: Valuation techniques using significant unobservable inputs. The Fund has no Level 3 instruments.
The Fund’s amounts attributable to unit holders is a Level 1 instrument as the unit price is quoted on the NZX
Main Board, which is considered to be an active market. The Manager considers market prices to be the most
representative measure of fair value as they are used by market participants as a practical expedient for fair
value measurement.
Where there is a bid and ask price, the Fund uses the price within that range that is most representative of fair
value. Where the last traded price is within that range, the Fund uses the last traded price as fair value. Where the
last traded price falls outside that range the Fund uses the mid-point between the bid and ask prices.
The market is monitored on an on-going basis to confirm that it remains active for the purposes of establishing
fair value.
Economic Rights are Level 2 instruments as Economic Rights are not listed and there is no active market for
Economic Rights assets. Economic Rights are valued using the quoted price of units (which are considered to be a
materially comparable instrument) in the Fund listed on the NZX Main Board. The validity of assumptions relating
to the comparability between a unit and an Economic Right has been considered in the context of Fonterra’s
capital structure review and remains appropriate.
There have been no transfers between the categories in the fair value hierarchy during any of the
periods presented.
2 ECONOMIC RIGHTS OF FONTERRA SHARES
The Economic Rights are held on trust for the Fund by the Fonterra Farmer Custodian Trust under the Fonterra
Economic Rights Trust.
AS AT
31 JAN 2023
UNAUDITED
AS AT
31 JAN 2022
UNAUDITED
AS AT
31 JUL 2022
AUDITED
Value of Economic Rights ($ million)347376324
Number of Economic Rights107,410,984107, 417, 32 2107, 417, 32 2
The Economic Rights are measured at fair value, calculated as the number of Economic Rights held multiplied by
the established fair value for each Economic Right.
$ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2023
UNAUDITED
31 JAN 2022
UNAUDITED
31 JUL 2022
AUDITED
Opening value of Economic Rights 324402402
Movements:
Revaluation of Economic Rights23(26)(78)
Closing value of Economic Rights347376324
Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
08
CONTENTS

Notes to the Interim Financial Statements (CONTINUED)
FOR THE SIX MONTHS ENDED 31 JANUARY 2023
3 AMOUNTS ATTRIBUTABLE TO UNIT HOLDERS
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2023
UNAUDITED
31 JAN 2022
UNAUDITED
31 JUL 2022
AUDITED
Value of amounts attributable to unit holders at the end of the
period ($ million)
1
347376324
Opening number of units on issue
2
1 0 7, 4 1 7, 3 2 2107,420,162107,420,162
Movements:
Number of units redeemed (6,338)(2,840)(2,840)
Closing number of units on issue107,410,984107, 417, 32 2107, 417, 32 2
1 The amounts attributable to unit holders is measured at fair value, calculated as the number of units on issue multiplied by the unit market price at
31 January 2023 of $3.23 (31 January 2022: $3.50; 31 July 2022: $3.02).
2 Included in the total number of units is one Fonterra unit, held by the Fonterra Farmer Custodian Trust, which was issued at inception of the Fund.
The key rights of the Fonterra unit holder are set out in the Fund’s Annual Financial Statements for the year ended 31 July 2022.
4 NET ASSETS PER SECURITY
As at 31 January 2023, the net assets per unit on issue was $3.23 (31 January 2022: $3.50; 31 July 2022: $3.02).
5 COMMITMENTS AND CONTINGENT LIABILITIES
The Fund has no material commitments or contingent liabilities as at 31 January 2023 (31 January 2022: nil;
31 July 2022: nil).
6 SUBSEQUENT EVENTS
Declaration of distribution
On 15 March 2023, the Board of Directors of Fonterra declared an interim dividend of 10 cents per share.
Following Fonterra’s dividend declaration, the Board of the Manager declared an interim distribution of 10 cents
per unit. The distribution will be paid on 14 April 2023 to the unit holders on the register at 23 March 2023.
The Distribution Reinvestment Plan does not apply to this distribution.
Changes in unit price
Units are traded on the NZX and ASX and accordingly the unit price changes regularly, including during the period
between balance date and the date these interim financial statements were authorised for issue. Changes in the
market price of the units result in a corresponding change in the value of the Economic Rights asset held by the
Fund. Daily unit prices are available on the NZX website.
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
09
CONTENTS

Independent Review Report
To the unit holders of Fonterra Shareholders’ Fund
REPORT ON THE INTERIM FINANCIAL STATEMENTS
Conclusion
We have completed a review of the accompanying interim financial statements which comprise:
–the statement of financial position as at 31 January 2023;
–the statements of comprehensive income, changes in amounts attributable to unit holders and the cash flow
statement for the 6 month period then ended; and
–notes, including a summary of significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the interim financial
statements on pages 5 to 9 do not:
i. present fairly in all material respects the Fund’s financial position as at 31 January 2023 and its financial
performance and cash flows for the 6 month period ended on that date; and
ii. comply with NZ IAS 34 Interim Financial Reporting (NZ IAS 34) and IAS 34 Interim Financial Reporting (IAS 34).
Basis for conclusion
A review of interim financial statements in accordance with NZ SRE 2410 Review of Financial Statements Performed
by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance engagement. The auditor performs
procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures.
As the auditor of Fonterra Shareholders’ Fund, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Fund.
Use of this Independent Review Report
This report is made solely to the unit holders as a body. Our review work has been undertaken so that we might
state to the unit holders those matters we are required to state to them in the Independent Review Report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the unit holders as a body for our review work, this report, or any of the opinions we have formed.
Responsibilities of the Manager for the interim financial statements
The Manager, on behalf of the Fund, are responsible for:
–the preparation and fair presentation of the interim financial statements in accordance with NZ IAS 34 and
IAS 34;
–implementing necessary internal control to enable the preparation of interim financial statements that are fairly
presented and free from material misstatement, whether due to fraud or error; and
–assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease
operations or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 and IAS 34.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly, we do not express an audit
opinion on these interim financial statements.
This description forms part of our Independent Review Report.
KPMG
Auckland
15 March 2023
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
10
CONTENTS

Directory
REGISTERED OFFICE OF THE MANAGER OF THE FUND – NEW ZEALAND
109 Fanshawe Street
Auckland Central, Auckland 1010
Telephone: +64 9 374 9000
REGISTERED OFFICE OF THE MANAGER OF THE FUND – AUSTRALIA
C/o Fonterra Australia Pty. Ltd.
Level 2, 40 River Boulevard
Richmond, Victoria 3121
Telephone: +61 3 8541 1588
DIRECTORS OF THE MANAGER OF THE FUND
Mary Jane Daly
Carlie Eve
Alastair Hercus
Andrew Macfarlane
John Nicholls
COMPANY SECRETARY
Andrew Cordner
SUPERVISOR
The New Zealand Guardian Trust Company Limited
Level 6, 191 Queen Street
Auckland Central, Auckland 1010
New Zealand
AUDITOR OF THE FUND AND THE MANAGER OF THE FUND
KPMG
18 Viaduct Harbour Avenue
Auckland 1010
New Zealand
LEGAL ADVISERS TO THE MANAGER OF THE FUND
Chapman Tripp
Level 34, PwC Tower
15 Customs Street West, Auckland 1010
New Zealand
SHARE REGISTRAR – NEW ZEALAND
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
Private Bag 92119, Auckland 1142
Telephone: +64 9 488 8700
SHARE REGISTRAR – AUSTRALIA
Computershare Investor Services Pty. Limited
Yarra Falls, 452 Johnston Street
Abbotsford, Victoria 3067
GPO Box 2975
Melbourne, Victoria 3000
Telephone: 1800 501 366 (within Australia)
Telephone: +61 3 9415 5000 (outside Australia)
FONTERRA SHAREHOLDERS’ FUND
INTERIM REPORT 2023
11
CONTENTS

fonterra.com

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Page 1

Distribution Notice
Section 1: Issuer information
Name of issuer
Fonterra Shareholders’ Fund
Financial product name/description Fonterra Shareholders’ Fund Units
NZX ticker code FSF
ISIN (If unknown, check on NZX website) NZFSFE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 23/03/2023
Ex-Date (one business day before the
Record Date)
22/03/2023
Payment date (and allotment date for DRP) 14/04/2023
Total monies associated with the
distribution
1

$10,741,098

Source of distribution (for example, retained
earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.10000000
Gross taxable amount
3
$0.10000000
Total cash distribution
4
$0.10000000
Excluded amount (applicable to listed PIEs) $0.10000000
Supplementary distribution amount Not Applicable
NOTE: FSF is a Foreign Investment Variable Rate PIE. The whole distribution is excluded income for NZ
resident investors. PIE tax (for resident investors) or NRWT (for non-residents) may be deducted at the rate
appropriate for the investor.

1
Based on the number of units on issue at the date of the form.
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of Resident
Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This should include
any excluded amounts, where applicable to listed PIEs.

Page 2

Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please state
imputation rate as % applied
6

Not Applicable
Imputation tax credits per financial product Not Applicable
Resident Withholding Tax per financial
product
$-
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any) Not Applicable
Start date and end date for determining
market price for DRP
Not Applicable Not Applicable
Date strike price to be announced (if not
available at this time)
Not Applicable
Specify source of financial products to be
issued under DRP programme (new issue
or to be bought on market)
Not Applicable
DRP strike price per financial product Not Applicable
Last date to submit a participation notice for
this distribution in accordance with DRP
participation terms
Not Applicable
Section 5: Authority for this announcement
Name of person authorised to make this
announcement
Andrew Cordner
Contact person for this announcement Simon Till
Contact phone number +64 21 777 807
Contact email address Investor.relations@fonterra.com
Date of release through MAP 16/03/2023


5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is fully imputed the
imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute advice as to whether or not RWT
needs to be withheld.

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.