FY23 Results and Annual Report

DRAFT 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 2023
Previous Reporting Period 12 months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$ 1,592,870 10.1%
Total Revenue
$ 1,592,870 10.1%
Net profit/(loss) from
continuing operations
$ 155,638 26.9%
Total net profit/(loss)
$ 155,638 26.9%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the year
ended 30 June 2023
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
$ 1.40 $1.42
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
FY23 Annual Report
FY23 Results announcement / media release
FY23 Results commentary and FY24 Outlook
FY23 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 21 August 2023

Audited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M


21 August 2023
NZX/ASX Market Release
The a2 Milk Company FY23 Results
Strong performance in a very challenging market

The a2 Milk Company (“the Company”, “a2MC”) today announces a strong FY23
1
result driven by execution of its growth
strategy which is mainly focused on capturing the full potential of the China infant milk formula (IMF) market. More specifically:
1. Full year result in line with the Company’s previous guidance with double digit revenue and earnings growth
2. Result driven by strong growth in China segment with sales up 38% and record market share in China label IMF
3. China brand health reached new highs driven by record levels of marketing investment increasing by 13% to $260m
4. Total IMF sales were up over 8% in a market that declined by 14% making a2MC a top-3 share gainer in the market
5. Successful SAMR re-registration of China label IMF product provides continued access to the domestic market
These results are particularly strong considering the very challenging market conditions in China. The China IMF market, which
accounts for almost 70% of a2MC’s sales, declined materially in FY23 reflecting volume declines driven by the rolling impact of
fewer newborns in recent years and a decline in average selling prices due to an increase in competitive intensity.
Financial results and outlook
2,3

• Revenue growth of 10.1% to $1,592.9 million
- China & Other Asia segment sales up 37.9%, ANZ sales down 30.2% due to an intentional change in distribution
strategy, USA sales up 27.1% and MVM sales up 9.2%
- IMF sales up 8.4% with China label sales up 27.8% and English label sales down 6.1%
4

- Liquid milk sales in ANZ and USA up 7.1% and 27.1% respectively
• EBITDA
5
up 11.8% to $219.3 million with an EBITDA to sales margin of 13.8% (up 0.2ppts)
• Net profit after tax (NPAT) including amounts attributable to non-controlling interests up 26.2% to $144.8 million with
$155.6 million
6
attributable to owners of the Company
• Basic earnings per share (EPS) up 28.7% to 21.2 cents
• On-market share buyback of $149.1 million completed with closing net cash
7
of $757.2 million
• Despite an expected double-digit decline in the China IMF market in FY24, the Company expects to increase market share
and achieve low single-digit Group revenue growth in FY24 and an EBITDA margin broadly in line with FY23 (see full
outlook statement in the ‘FY23 Results Commentary and Outlook’ announcement)
Operational highlights
• Reached new highs in China brand awareness, trial and loyalty metrics supported by new brand positioning, increased
investment, higher impact integrated marketing campaigns and always-on consumer engagement
• Achieved top-3 share gainer in China IMF market overall with record market share, particularly in China label IMF in
mother and baby stores (MBS) and domestic online (DOL) channels, and with China label sales exceeding English label
sales for the first time in FY23 supported by growth in lower tier cities
• Received approval from China’s State Administration for Market Regulation (SAMR) for the re-registration of a2MC’s
China label IMF product a2 至初®, formulated in line with China’s new GB standards enabling continued access to the
registered market that accounts for 85% of the total China IMF market (English label representing remaining 15%)

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
All comparisons are with the 12 months ended 30 June 2022 (FY22), unless otherwise stated.
4
English and other labels IMF included in China & Other Asia and ANZ segments.
5
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 FY23 Investor Presentation (slide 55) dated 21 August 2023.
6
Excludes non-controlling interest in Mataura Valley Milk (MVM), a loss of $10.8 million.
7
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.

2
• Increased English label IMF market share in the cross-border e-commerce (CBEC) channel as the number 1 share gainer,
and increased market share in the combined offline-to-online (O2O) and Daigou channels
• Grew sales and improved online platform rankings in China label and English label IMF in the Double 11 and 618 key sales
events with reduced promotional activity and improved market pricing
• Ramped up innovation and supported growth through new product launches in all categories
• Improved business health key indicators, including improved market pricing and trade margins supporting the distribution
ecosystem, increased share of early-stage product sales, and IMF channel inventory and product freshness maintained at
target levels notwithstanding new GB product transition which is tracking to plan
• Extended exclusive import and distribution partnership with China State Farm Agribusiness (CSFA) for 5 years and entered
into a longer-term strategic co-operation agreement
• Achieved Enforcement Discretion and progressed long-term FDA approval process to sell IMF product in the USA and
significantly reduced USA operating losses
• Accelerated supply chain transformation, including increasing raw A1 protein free milk supply, completing the insourcing
of all a2
TM
branded milk powder products , completing production trials for the insourcing of certain a2
TM
IMF branded
product with manufacturing to start in 1H24, and commencing production trials for a new a2
TM
English label IMF range,
all with Mataura Valley Milk (MVM) and new supply partners
• Advanced sustainability programmes, including commencing the electrification of MVM from 100% renewable energy
sources, commenced on-farm methane inhibitor feasibility study, entered into a research agreement with Lincoln
University and developed a sustainable packaging roadmap
CEO commentary
The a2 Milk Company’s Managing Director and CEO, David Bortolussi said:
• “I’m proud of what our team has achieved this year, growing sales by 10% while the core China IMF market declined by
14% is a remarkable achievement.
• “Our China label IMF sales exceeded English label sales for the first time, and our total IMF sales were over $1.1 billion
making us a top-3 share gainer in the market overall.
• “Achieving re-registration of our China label IMF product recently was critical to maintaining access to the important
domestic market and we look forward to launching our new product in the coming months.
• “The Daigou market in English label IMF declined sharply again this year by almost 40% and we have pivoted further to
the more controlled channels which have performed better and where we continue to gain share.
• “We have re-invested more in our brand again this year driving further gains in China brand health metrics and supporting
future sales growth.
• “The China IMF market has become increasingly challenging as a result of lower birth rates and increased competitive
intensity. Notwithstanding, we are well positioned to continue to invest and grow share in FY24 to emerge in a stronger
position when the market recovers.”

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


Anna Guan
Investor Relations Manager
M +61 430 166 872
anna.guan@a2milk.com
Media – New Zealand
Barry Akers
M +64 21 571 234
akers@senescallakers.co.nz
Media – other countries
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

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NZX Code: ATM
ASX Code: A2M


21 August 2023
NZX/ASX Market Release
The a2 Milk Company
FY23 Results Commentary and Outlook
Group financial performance
1
,
2,3

The a2 Milk Company (“the Company”, “a2MC”) today announces its financial results for the year ended 30 June 2023. Key
results are as follows:

FY23 ($m) FY22 ($m) Variance (%)
Revenue 1,592.9 1,446.2 10.1%
EBITDA
4
219.3 196.2 11.8%
Net profit after tax
- Attributable to owners of the Company
155.6 122.6 26.9%
Basic earnings per share (EPS) (cents)
21.2 16.5 28.7%
Net cash
5
757.2 816.5 (7.3)%

The Company’s revenue for FY23 was up 10.1% driven by strong growth in the China & Other Asia segment up 37.9%, with the
USA and MVM segments also up 27.1% and 9.2% respectively, partially offset by a 30.2% decrease in the ANZ segment mainly
due to an intentional change in English label distribution strategy. Revenue growth slowed to 3.0% in 2H23 mainly due to a sharp
decline in English label IMF Daigou market value in 2H23 and cycling higher lockdown-driven sales in 4Q22. Higher revenue
growth of 18.6% in 1H23 was mainly due to China label IMF sales cycling lower sales in 1H22 due to channel rebalancing and USA
sales benefiting from 2H22 new product launches. Notwithstanding, an important milestone was achieved in FY23 with China &
Other Asia segment revenue exceeding $1 billion (representing 62.9% of total revenue) for the first time demonstrating the
importance of the Company’s China focused growth strategy.
Gross margin percentage
6
of 46.5% was 0.5 ppts higher reflecting benefits from a2 Platinum® English label refresh positioning
and distribution model changes and the cycling of other nutritional stock write-downs recognised in the prior year, partially
offset by unfavourable foreign exchange on cost of goods sold. Increases in farmgate milk pricing, raw materials, and other
inflationary pressures were mitigated by price rises and other cost saving initiatives. Gross margins in 2H23 were also impacted
by the timing of MVM sales which were weighted to the second half.
EBITDA increased by 11.8% to $219.3 million, primarily reflecting higher revenue and gross margin improvements. EBITDA
margin as a percentage of revenue increased to 13.8% (up 0.2ppts), with margin expansion achieved notwithstanding an
increase in marketing investment by 13.1% and Administrative and Other expenses increasing by 9.0%. Administrative and Other
expenses increased due to continued capability building (particularly in China and Supply Chain teams), further investment in
product innovation and science research projects, the timing of long-term incentives and increased travel costs post COVID-19.
Foreign exchange rates were volatile during the year. Group revenue benefited from favourable foreign exchange movements in
the order of $40 million, primarily in 1H23. However, the combined realised and unrealised foreign exchange impact on cost of
goods sold, administrative and other expenses on EBITDA was not material in part due to hedging.
Depreciation and amortisation was similar to prior year at $18.2 million, net interest income increased to $21.6 million due to
higher interest rates and the effective tax rate reduced to 35.0% primarily driven by the alignment of the accounting and tax
treatment of foreign exchange contracts. NPAT including amounts attributable to non-controlling interests was $144.8 million,
an increase of 26.2%. The non-controlling interests represent China Animal Husbandry Group’s (CAHG’s) 25% interest in MVM.
Excluding this loss of $10.8 million, NPAT attributable to owners of the Company was $155.6 million.

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
All comparisons are with the 12 months ended 30 June 2022 (FY22), unless otherwise stated.
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 FY23 Investor Presentation (slide 55) dated 21 August 2023.
5
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6
Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.

2
The balance sheet remains in a strong position with closing cash and term deposits of $802.2 million and net cash of $757.2
million. The lower cash balance compared to June 2022 mostly reflects the $149 million used to execute the on-market share
buyback. In accordance with the Company’s Capital Allocation Framework, a2MC has decided to prioritise investment in growth
opportunities (focused on Supply Chain transformation) and balance sheet strength, ahead of returning further capital to
shareholders at this point in time but will continue to review this on a regular basis.
Inventory at the end of the period was $193.4 million, higher than at the end of 1H23, mainly due to stock building of China label
IMF inventory to accommodate the timing of new China GB registration and product transition, as well as a sharp decline in the
Daigou channel and the timing of Synlait supply which resulted in higher English label inventory at year end. Channel inventory
and product freshness remained at target levels across the business. The Company’s China label inventory levels and product
freshness at 30 June 2023 (96% of expiry dates >18 months from manufacturing date) were in line with Company’s plans for the
new GB product transition.
Excluding interest and tax, operating cash inflow was $127.4 million, representing cash conversion of 58%
7
which was, as
anticipated, lower than the prior period due to the catch-up of FY22 payments in China which were impacted by COVID-19
delays (outside the Company’s control) as well as prepayments for China label stock build to support transition.
China market update
8

The overall China IMF market declined 12.1% in volume and 14.4% in value in FY23. The decline in BCD cities exceeded Key&A
cities particularly in the second half, with Key&A market value decreasing by 13.1% in 2H23 and BCD market value decreasing by
18.3% in 2H23. The market decline reflected the decrease in newborns overall, socio-demographic differences between Key&A
and BCD cities, challenging macroeconomic conditions impacting retail sales, and increased competitive intensity and
promotional activity driven by excess industry capacity and the commencement of the market-wide transition to new GB
standards.
The number of newborns in China declined by 10.0% in CY22 to 9.6 million
9
which is likely to decline further in CY23 having
regard to various factors and data points, including socio-demographics, prevailing youth unemployment rates, recent marriage
numbers and pregnancy indicators. The Company still expects a post COVID-19 recovery in birth rates in the medium-term with
the longer-term birth rate inherently uncertain. The lower birth rate in CY22 along with the rolling impact of fewer births in prior
years reduced China IMF market Stage 3 sales (the biggest segment of the IMF market) in particular which declined by 20.6% in
2H23 and accelerated to be down 23.5% in 4Q23.
China label market value declined 14.9% in FY23 with 2H23 down 17.3%. The mother and baby stores MBS channel was down
12.7% in FY23 and domestic online (DOL) was down 4.5%. Within China label channels, a2MC continues to be supported by a mix
shift to the ultra-premium price segment (although this segment also declined in absolute terms in FY23), rapid growth of the A2
protein segment and increasing brand concentration with the top-10 brands now accounting for 77% of the total China label
market.
English label market value decline stabilised in FY23 down 14.0% with 2H23 down 11.5%. Within English label channels, the
Daigou channel experienced a sharp decline of 39.5% in FY23, while offline-to-online (O2O) was down 17.9% in FY23 and cross-
border e-commerce (CBEC) experienced sustained growth up 8.3%
10
, continuing the significant mix shift across English label
channels. a2MC’s distribution strategy is focused on continuing to develop the CBEC and O2O channels where it continues to
gain share.
In the context of challenging socio-demographic, macroeconomic and IMF market conditions, a2MC’s growth in FY23 in China
label IMF of 27.8% and total IMF of 8.4% was very encouraging.
Regional performance
1. China & Other Asia
Growth in value and volume of the China & Other Asia segment was driven by continued execution of the Company’s growth
strategy particularly in China label. Revenue of $1,002.2 million was up 37.9%, with EBITDA of $254.1 million up 75.1%. The
combination of increased investment and higher impact marketing campaigns had a positive impact on key brand health metrics
in 2H23, which in turn supported increased sales and market share. New highs in overall China brand health metrics were
achieved with total a2MC IMF prompted brand awareness increasing from 52% to 63%, unprompted brand awareness increasing
from 17% to 23% and top of mind brand awareness increasing from 7% to 9%, and trial and loyalty metrics increasing as well
11
.


7
Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
8
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities); unless otherwise stated.
9
China National Bureau of Statistics.
10
Smart Path China IMF online market tracking: for CBEC only retail sales (by value).
11
a2MC internal data based on the Company’s brand health tracking. Average brand health metrics for each financial year based on 3 surveys in FY21 and FY22,
and 2 surveys in FY23. Sample skews to a2MC target consumers ie higher income earners based in provinces / cities that are the focus of sales and marketing
activities.

3
China label IMF
The strong performance in China label IMF sales in 1H23 continued into 2H23 despite the declining market and heightened
volatility with the market transitioning to new GB products. Consumer demand for a2 至初® remained strong with market value
share improvement both in-store and online. Sales for a2 至初® China label IMF increased 27.8% to $559.3 million, with 2H23
sales up 16.0%. Growth was supported by continued strong execution of the Company’s growth strategy through same store
sales volume growth and favourable pricing and foreign exchange.
The strong performance was supported by significant marketing investment in brand building campaigns as well as innovative
consumer campaigns such as caravan tour roadshow events to drive brand awareness and trial in BCD cities, and a corporate
social responsibility campaign with Operation Smile to engage consumers with impact.
MBS weighted distribution increased as well as same store sales, driving growth in Key&A and BCD cities. Offline distribution
declined slightly to 25.9k stores at the end of June 2023 from 26.5k at the end of June 2022
12
. A significant number of store
closures occurred in the market during the period reflecting challenging retail and category conditions. The Company is building
share in national key accounts, pursuing regional key accounts, as well as targeting greater penetration of BCD cities, whilst
developing new strategies for accelerated growth in certain prioritised provinces.
Retail market value for the MBS channel was down 12.7% in FY23
13
, with 2H23 down 15.9%, reflecting challenging China IMF
market dynamics including store closures and increased discounting of old GB product prior to transitioning to new product.
a2MC’s market value share in MBS increased to 3.4% at the end of June 2023 compared with 3.0% at the end of June 2022,
making a2 至初® one of the fastest growing international brands within MBS in FY23.
Accelerating online growth is a strategic priority for China label IMF and performance in DOL is a key measure of success. Retail
market value for the DOL channel was down 4.5% in FY23
14
, with 2H23 down 13.6% cycling 4Q22 lockdown impacts. a2MC’s
market value share in DOL increased to 3.3% at the end of June 2023 compared with 2.5% at the end of June 2022, and was the
number 2 share gainer in the channel. Within this channel the Company’s share of early-stage product sales has increased
significantly as more users shift to online channels at all stages of their IMF lifecycle.
English label IMF
15

The China & other Asia segment benefited from continued execution of the Company’s English label IMF distribution strategy,
resulting in a further sales mix shift towards the CBEC channel, as well as improved brand health metrics following increased
investment as part of the a2 Platinum® English label refresh. Overall, English label IMF sales of $386.2 million were up 51.0%,
with 2H23 growing 37.3% on prior year.
a2MC continued to prioritise overall channel economics as part of its inventory management plan and promotional activity in
CBEC. English label sales during key sales events were up moderately, with market pricing across CBEC platforms and reseller
channels at target levels, and emerging platforms seeing stronger growth from a lower base. Platform rankings on mainstream
platforms were maintained or improved in the Double 11 and 618 sales events, and a2MC ranks as one of the leading IMF
players on Douyin (TikTok).
The Company is focused on CBEC growth and building digital marketing and e-commerce capability to further improve its
execution which is having an impact, particularly on new user recruitment. Retail sales for the overall CBEC channel were up
8.3% in FY23
16
. Despite market value growth in 2H23 slowing to 2.9% from 13.8% in 1H23, a2MC’s was the number 1 share
gainer in CBEC with market value share increasing to 22.6% at the end of June 2023 compared with 19.4% at June 2022. Similar
to DOL, a2MC’s share of early-stage product sales also increased significantly in CBEC which is becoming increasingly important
relative to the Daigou channel.
Liquid milk and other nutritional products
Sales of liquid milk in China & Other Asia segment were up 36.7% to $15.2 million and revenue from other nutritional products
was also up 87.9% to $41.4 million, benefitting from stronger execution, brand awareness and mix shift from ANZ channels to
CBEC. The strong performances in these categories were supported by increased marketing investment through brand building
campaigns.
2. Australia and New Zealand
The Australia and New Zealand (ANZ) segment result was driven by lower IMF sales to ANZ resellers / Daigou due to an
intentional change in a2MC’s distribution strategy, partially offset by the positioning and pricing benefit associated with the a2
Platinum® refresh. Overall, ANZ sales volumes were down with segment revenue of $371.7 million, down 30.2%, and EBITDA of
$93.5 million, down 46.0%.


12
a2MC internal data tracking of stores with active sales in the past 6 months.
13
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY23 versus FY22.
14
Smart Path China IMF online market tracking: domestic online platform sales (by value). FY23 versus FY22.
15
English label IMF includes sales via CBEC, Korea, and Hong Kong Resellers.
16
Smart Path China IMF online market tracking: for CBEC only retail sales (by value). 12-month rolling share. FY23 versus FY22.

4
IMF resellers and retail
With Daigou channel market value down 39.5% in FY23
17
and the change to the Company’s English label distribution strategy in
2H22, IMF reseller and retail sales decreased 50.6% to $162.5 million. The Company has proactively changed its English label
distribution model to more controlled channels and to more transparent and performance-based distribution partnerships in all
channels. These declines were partially offset by a significant increase in sales to CBEC (see commentary in China & Other Asia
above). Whilst the Company’s English label IMF focus going forward is likely to be on CBEC and O2O given the recent evolving
dynamics, it will also continue to support the Daigou channel through multi-channel consumer marketing campaigns and reseller
trade support programmes.
Development of the O2O channel has also been a key focus area for English label distribution. In 2H23, the Company entered
into a new partnership with one of the leading distributors in China and is focused on improving share in O2O key accounts,
long-tail O2O and Pop accounts complementing certain Company led initiatives. Results relating to this partnership in the future
will be reflected in the China & Other Asia segment.
In 2H23, while the O2O channel market value was down 15.7%, its trajectory improved versus 1H23, and a2MC’s channel market
share increased significantly at the end of June 2023 versus last year
18
.
Due to sample size, data classification and associated volatility reasons, the Company focuses more on its combined O2O and
Daigou channel market share based on Kantar survey data which is the only source of market share data for these channels.
Based on this data, a2MC’s market share in the O2O and Daigou channel increased to 20.8% at the end of June 2023 versus
19.5% at the end of June 2022
19
.
Liquid milk and other nutritional products
Australian liquid milk sales were up by 7.1% to $184.1 million, with 2H23 growth of 8.5%, driven by a full 6-month contribution
from price increases taken in 1H23 in response to higher raw milk prices and other input and logistics cost increases, favourable
foreign currency movements plus continued strong performance from the launch of a2 Milk® Lactose Free.
This result was partly offset by consumption volume declines impacted by increased cost of living, as well as several challenges
within the supply chain network impacting on-shelf availability. a2 Milk® Lactose Free (launched in August 2022) has performed
ahead of expectations, with sales supported by distribution expansion into Queensland, South Australia and Tasmania in 2H23.
This saw market share in the lactose free segment in initial launch cities (New South Wales and Victoria) increase to 18.4%
20
in
June 2023 compared with 12.3% in December 2022.
a2MC recorded market value share of 11.3% at the end of June 2023
21
versus 12.4% at the end of June 2022. This result was
impacted by consumers trading down due to wider macroeconomic factors, as well as the prior comparable period (primarily
1H22) benefitting from strong in-home consumption from COVID-19 lockdowns. The current market share is broadly similar to
pre-COVID-19 levels, with a2MC’s MAT market volume share increasing from 6.6% in January 2020 to 6.8% at June 2023
22
.
Whilst market volume for liquid milk increased during the COVID-19 lockdown period, it decreased 4.5% from January 2020 to
June 2023. Pleasingly, three a2 Milk® products achieved rankings in the top-10 products in the dairy category in Grocery.
Consistent with IMF, revenue for other nutritional products was also impacted by the channel mix shift to CBEC, declining 21.4%
to $25.1 million.
3. USA
Accelerating the path to profitability in the USA by FY25/FY26 is a strategic priority for the Company. During FY23, USA
profitability improved through a combination of higher revenue growth from both core range and new products, as well as cost
reduction initiatives. As a result, USA revenue increased 27.1% to $105.1 million while EBITDA losses were reduced to $23.3
million compared with a loss of $36.7 million in FY22.
Sales growth was driven by a modest increase in core liquid milk volumes, contribution from new products, pricing and
favourable foreign exchange movements. Sales in 2H23 were broadly in line with the first half, as the Company reduced
promotional spend. Despite this a2MC’s market value share in the premium milk category for the Grocery channel increased
from 2.0% in June 2022 to 2.3% in June 2023
23
.
The lower EBITDA loss was mainly due to revenue growth, less promotional activity, improved input costs and distribution rates,
lower marketing spend and reduced SG&A costs. Whilst reduced marketing investment led to a lower level of brand awareness,
household penetration increased and brand loyalty and equity ratings improved. The Company has recently changed the
management team in the USA and there will be a greater focus on profitability going forward.


17
Kantar data based on a panel of 9,000 consumers covering 0-6 year olds and only seeks to project ~40% of the population.
18
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY23 versus FY22.
19
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY23 versus FY22.
20
IRI Scan Data NSW and VIC Month ending 30 June 2023.
21
IRI Australian Grocery Weighted Scan 12-months ending 30 June 2023.
22
IRI Australian Grocery scan Weighted Scan MAT.
23
SPINS data for the Grocery channel only for the 52 weeks ending 30 June 2023 and 30 June 2022.

5
In November 2022, the Company received confirmation from the FDA that its application for enforcement discretion to import,
sell and distribute a2 Platinum® IMF product from New Zealand into the USA had been approved. a2MC is pursuing longer term
FDA approval of a2 Platinum® whilst carefully considering market entry options. A small amount of product has been produced
recently to facilitate FDA required clinical studies and distribution trials during FY24.
4. Mataura Valley Milk
Accelerating MVM’s path to profitability by FY26 or earlier is also a strategic priority. During FY23, the Company accelerated
execution of its supply chain transformation strategy, including increasing raw A1 protein free milk supply, completing the
insourcing of all a2 Milk® Whole and Skim milk powder products, completing production trials for insourcing of certain IMF
product with manufacturing to commence in 1H24, and commencing production trials for a new English label IMF range, all with
MVM and new blending and canning partners prior to installing similar capability at MVM.
Revenue of $113.9 million
24
and an EBITDA loss of $26.5 million were recorded for the period. The higher revenue reflected 12-
months under a2MC ownership versus 11-months in FY22 (due to acquisition timing) net of intercompany sales of $32.3 million
during the current period. EBITDA loss of $26.5 million, compared to a reported loss of $18.8 million in FY22 (or a loss of $23.2
million on a pro-forma unaudited basis for 12-months). The slightly higher EBITDA loss was due to the timing of sales in a volatile
commodity and FX environment; reduced demand from third-party customers in China; increased investment in capability
(including management changes), significant product development trials; and investment to support future nutritional powder
production.
Sustainability progress
a2MC’s sustainability strategy is focused on taking action on climate change, achieving nature positive outcomes, supporting
thriving farms, utilising more sustainable packaging and supporting communities in need. The Company has previously
communicated its Planet-related goals, including achieving Scope 1 and 2 net zero emissions by 2030 and Scope 3 by 2040. The
Company is pleased to announce that it has refined its Scope 3 reduction ambition to include an interim goal to reduce
emissions intensity by 30% by 2030.
The Company made significant progress on implementing its Sustainability strategy during FY23. In 2H23, MVM commenced the
installation of a new high-pressure electrode boiler and the full electrification of the site supplied by 100% renewable energy
such as hydro and wind, which is a first in the New Zealand market that will substantially reduce a2MC’s total Scope 1 and 2
emissions close to net zero. To accelerate addressing Scope 3 emissions, the Company commenced an on-farm methane
inhibitor pilot in Australia with additional studies and a commercial trial planned for FY24. The Company completed its first two
nature risk and opportunity assessments covering two regions in New Zealand, Canterbury and Southland, where the largest A1
protein free milk pools supplying the Company are based. a2MC also entered into an environmental research agreement with
Lincoln University, continued to roll out its Farmer Environmental Plan programme, and increased its support for its Farmer
Grant programmes.
Strategy execution update
The Company has progressively refreshed its strategy and execution framework over the past couple of years. At the a2MC’s
Investor Day in October 2021, the Company communicated its people, planet, consumer and shareholder related goals, outlined
its five strategic priorities and highlighted key enablers to execution. Consistent with its strategy, the Company will continue to
focus on capturing the full potential of China IMF as well as ramping up innovation to pursue opportunities in adjacent
categories and new markets.
From a shareholder goal perspective, the Company outlined its medium-term financial ambition to grow revenue to $2 billion
over 5 or more years from FY21 and to target EBITDA margins in the “teens”. In doing so, the Company highlighted the key risks
to achieving these goals and that the path is unlikely to be linear. At that time, the Company also stated that EBITDA margins
could possibly increase to the “low-to-mid 20s” in the medium-to-long term subject to higher than expected market recovery,
English label channel growth and market share gains.
a2MC has made solid progress towards these financial goals with revenue growing from $1,207 million in FY21 to $1,593 million
in FY23, and EBITDA margins increasing from 10.2% in FY21 to 13.8% in FY23. Over this period, market conditions have been
more challenging than expected with the total China IMF market value down 17.4% – China label down 16.0% and English label
down 24.7%
25
. a2MC has increased its share of the overall China IMF market significantly from 4.9% in FY21 to 5.7%
26
in FY23
and remains on track to achieve its revenue goal of $2 billion. At this stage, it is unlikely that EBITDA margins will increase to the
“low-to-mid 20s” in the foreseeable future due to market conditions and outlook. Notwithstanding, the Company remains
committed to an EBITDA margin goal in the “teens” targeting year-on-year improvement.
In terms of people, planet and consumer goals, a2MC has specific non-financial measures of success that were also
communicated to the market at its October 2021 Investor Day. The Company has also made substantial progress on achieving
these goals, including: improving safety metrics and employee engagement; accelerating its sustainability programmes as noted
above; and from a consumer point of view it has improved brand health, increased market share and ramped up innovation.

24
Revenue excluding intercompany sales.
25
Kantar data based on a panel of 9,000 consumers covering 0-6 year olds and only seeks to project ~40% of the population.
26
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY23 versus FY22.

6
In addition to its strategic goals, last year a2MC updated its Purpose and Vision and shared this in the Company’s 2022 Annual
Report. The Company’s purpose is to “Pioneer the future of Dairy for Good” with a vision of creating “An A1-free world where
Dairy nourishes all People and our Planet” which has provided a north star and greater emotional connection for the a2MC team
and stakeholders as to why the Company exists and the world it is endeavouring to create.
More recently during 2023, the Company has refreshed its Values and associated Standards of Behaviour which provide a
cultural framework and clarity around how team members should execute the Company’s strategy individually and collectively.
The Company’s new values framework is expressed through the “BOLD” acronym standing for Bold Passion, Ownership and
Agility, Leading Constructively and Disruptive Thinking. The refreshed Values and Standards of behaviour build on what has
contributed to a2MC’s success in the past and emphasises areas that will be key to executing our strategy, living our purpose and
achieving our vision and goals.
Executive Leadership Team renewal
There have been significant Executive Leadership Team renewal over the last two years, with all ELT members either new to the
Company or in expanded roles. During the year there were a number of new appointments. David Muscat was appointed to the
role of Chief Financial Officer, having previously served in CFO roles in Australia and Europe, bringing significant experience in
the consumer and retail sectors in various international markets, including China. Chopin Zhang joined with over 35 years of
experience in supply chain management, including significant experience in China and New Zealand IMF having most recently
served as CEO at Yashili from 2017 to 2020. Chopin's primary focus includes transforming the Company's supply chain to enable
further market access, insourcing, innovation, and growth, which is a key aspect of its refreshed growth strategy.
Additionally, there have been several internal appointments later in the financial year. Kevin Bush, previously Executive General
Manager – ANZ, has recently been appointed to the role of Managing Director – USA. Kevin's main focus is driving growth
through innovation and accelerating the path to profitability in the USA. Eleanor Khor, previously Chief Strategy Officer, has
taken on an expanded role, adding the leadership of a2MC's ANZ business as Managing Director – ANZ and Strategy. Eleanor's
focus is on expanding the business in ANZ through innovation, with particular attention to realising the full potential of the new
a2 Milk
TM
Lactose-free product.
FY24 Outlook
Market conditions
China IMF market conditions are uncertain but likely to become more challenging in FY24 with a further double-digit decline in
market value expected. This is due to volume declines driven by the rolling impact of fewer newborns in recent years on later
stage IMF products, and a lower number of newborns expected in CY23 due to the lagged impact of COVID-19 prior to an
expected increase in CY24. In addition, it is expected that average selling prices will remain under pressure due to an increase in
competitive intensity driven by the market-wide transition to new GB product, excess manufacturing capacity and challenging
macroeconomic conditions.
Business and category sales
The Company will continue to execute its growth strategy in FY24, focusing on growing share in China IMF as well as
commercialising opportunities in adjacent categories and new markets.
The Company expects to continue to gain market share in IMF, with growth dependent on the extent of market share gains in a
declining market. China label is expected to outperform English label, and overall IMF growth is expected to be 2H24 weighted
as the Company manages the transition to its new China label product primarily in 1H24, and due to English label cycling a
relatively strong prior period in 1H23.
The Company expects growth in other nutritional products and modest growth in ANZ and USA liquid milk. USA IMF sales are
expected to be immaterial. MVM sales are expected to decline significantly due to increased levels of insourcing and lower GDT
market pricing.
Key financials
Due to the expected market conditions outlined above, a broad range of sales outcomes is possible. At this stage, the Company
is expecting low single-digit revenue growth in FY24.
FY24 gross margin (% of sales) is expected to be similar to FY23, with cost of goods sold headwinds related to China label IMF re-
formulation and upgraded packaging, ingredients and packaging inflationary pressures, foreign exchange changes, product and
channel mix impacts, and higher Australian farmgate milk pricing – offset by price increases, lower New Zealand farmgate milk
pricing for IMF, MVM internalisation benefits and cost mitigation initiatives.
The Company plans to increase its brand investment in FY24 in line with sales growth to support its new China label product
launch and growth. Administration & Other expenses are expected to be similar to FY23.
The Company expects EBITDA margin (% of revenue) to be broadly in line with FY23.
Operational cash conversion is expected to be higher in FY24 partly supported by an incremental reduction in inventory cover,
and capital expenditure is expected to increase to approximately $26 million mainly due to the Kyabram facility upgrade and
MVM electrification projects.

7
Key risks
In addition to the challenges noted above and trading upside and downside, other risks include, but are not limited to, residual
COVID-19 impacts on supply and demand, new China label product transition, volume impact of price increases, cross border
trade, foreign exchange movements, changes in interest rates, farmgate milk pricing and other commodity prices, and changes
in the regulatory environment. These challenges and risks could materially impact expected revenue and earnings outcomes.



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


Anna Guan
Investor Relations Manager
M +61 430 166 872
anna.guan@a2milk.com
Media – New Zealand
Barry Akers
M +64 21 571 234
akers@senescallakers.co.nz
Media – other countries
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

---

2023
Annual
Report
The a2 Milk Company
We pioneer the future
of Dairy for good

* Attributable to owners of the Company.
** Including term deposits and borrowings, excluding subordinated
non-current shareholder loans.
The a2 Milk Company has
made significant progress
in FY23 towards its
strategic goals
NET CASH
$757 million
**
REVENUE
INFANT MILK FORMULA (IMF) LIQUID MILK OTHER
$1,207m
FY21
$914m$1,022m$1,108m
$241m
$265m
$304m
$52m
$159m
$181m
$1,446m
FY22
$1,593m
FY23
EBITDANPAT
*
EPS
$m
$m
$m
$m
$m
$m
c
c
c
FY21FY21FY21FY22FY22FY22FY23FY23FY23

Chair's letter 2
CEO's year in review 4
Building a sustainable growth business 14
Who we are 15
What we do 16
How we create value 18
What makes us unique 20
Our strategy 21
Our reporting approach 24
Progress towards our goals 25
Risks and opportunities 50
Corporate governance 60
Governance 60
Directors 64
Executive Leadership Team 66
Remuneration 68
Financial statements 76
Company disclosures 135

Contents
ANNUAL REPORT 20231

Chair’s
letter
David Hearn
Dear Shareholder,
On behalf of your Board, I am delighted to announce the continued
strong performance of The a2 Milk Company in FY23. Throughout
the year, the Company has demonstrated an unwavering
commitment to executing our growth strategy, delivering strong
results and several important achievements. I am particularly proud
of this given the very challenging macroeconomic landscape and
external headwinds we are facing in key markets.
We have embraced our refreshed purpose to pioneer the future
of dairy for good and our vision to create an A1-free world where
dairy nourishes all people and our planet. These guiding principles
are now living through our business, guiding the Company to
execute our goals more effectively in the years ahead.
Delivering results on a consistent basis is the hallmark of building
successful businesses. Therefore, I am pleased to note that the
results that we have delivered in FY23 are in line with the medium-
term ambitions we have set for the business. In particular, our
strategic China label infant milk formula (IMF) brand, a2
至初
®
,
was the standout performer, delivering another year of double-
digit growth. It is also encouraging that, despite significant market
contractions, the work we are doing to support our English label
IMF business has laid a good foundation for continued progress in
the future.
During the year, we also achieved a number of important
regulatory milestones. We are incredibly pleased to have received
confirmation of re-registration from China’s State Administration
for Market Regulation (SAMR) for our upgraded China label IMF
product in June 2023. The achievement of this re-registration has
been an enormous team effort over a number of years. Our team’s
dedication, resilience and expertise during this journey has been
extraordinary, and I am incredibly proud of every member of the
a2MC team involved in this achievement.
I would like to acknowledge the support we received from SAMR,
New Zealand’s Ministry for Primary Industries, our strategic partners
in China, China National Agriculture Development Group Co., Ltd
and China State Farm Agribusiness (CSFA), and our manufacturing
partner, Synlait and its major shareholder Bright Dairy, throughout
the process. During the year we also renewed our exclusive import
and distribution arrangements with CSFA for a further five years.
We are pleased that CSFA will remain the exclusive import agent
for our China label IMF product.
These significant milestones highlight the strength of our
relationships with strategic partners in China and our shared
confidence in the future. The approval provides us with continued
access to China’s substantial registered domestic IMF market, which
remains the key focus of our growth strategy. It also allows us to
continue building on the strong brand trust and loyalty we have
developed with Chinese families over the past decade.
During the year, we also received confirmation from the US Food
and Drug Administration (FDA) that our application for temporary
permission to import, sell and distribute a2 Platinum
®
IMF product
from New Zealand into the USA was approved. While the USA
represents a significant opportunity to develop our brand in the
IMF category over the long-term, the FDA application process for
permanent approval to import and sell IMF product remains a
challenging process and timeframe.
In addition to strong financial performance and key regulatory
decisions, we also undertook an important capital management
activity during the year. Exiting the previous fiscal year with
improving confidence in our strategy and execution and
having determined that the Company had surplus capital to
our requirements in the short-term, we announced we would
undertake an on-market share buyback. We commenced this in
the first half of FY23 and completed the NZ$149 million buyback
programme in the second half.
Our capital management framework continues to prioritise
investments in growth initiatives and maintaining balance sheet
flexibility ahead of shareholder capital returns. The business has
increased its supply chain transformation focus during the year with
new leadership and structure, increased in-sourcing and progressed
other growth capital expenditure projects supporting our long-term
strategic growth goals. However, when there is capital surplus to
achieving these priorities, we will make a disciplined assessment
of the potential to return capital to shareholders and the most
appropriate option to do so.
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresCEO’s year in review
THE a2 MILK COMPANY2
Chair’s letter

On behalf of the Board, I sincerely thank David Bortolussi, our
Managing Director and Chief Executive Officer, for his leadership
and impactful contribution to executing our strategy in very
challenging market conditions. At the Executive Leadership Team
(ELT) level, there have been a number of changes during the year,
including the appointment of David Muscat as Chief Financial
Officer and Chopin Zhang as Chief Supply Chain Officer, the role
expansion for Eleanor Khor as Managing Director – ANZ and
Strategy and Kevin Bush taking on the role of Managing Director
– USA. I thank David Bortolussi, the ELT and every member of the
a2MC team in all our regions for their contributions this year.
We have also made significant progress with regard to Board
renewal during the year, delivering on succession plans for long
serving directors and announcing new appointments.
In November 2022, I announced my intention to stand down as a
Director and Chair of the Board at the Annual Meeting in November
2023, following almost ten years with the Company. As a result, Pip
Greenwood, who has now been on the Board for over four years,
was unanimously elected to replace me as the Chair. Pip has the
skills and experience to lead the Board and I am delighted to hand
over the reins to such an outstanding director.
During the year we also announced that Julia Hoare, the Company’s
Deputy Chair, would step down from the Board after over nine
years of service. On behalf of the Board, I would like to express our
sincere appreciation for Julia’s outstanding service throughout her
tenure at The a2 Milk Company. Julia’s commitment and dedication
have been instrumental in the Company’s success, and we are
grateful for her invaluable contribution over the years.
Kate Mitchell was appointed to the Board in June 2023 and has
taken over as Audit and Risk Management Committee Chair. Kate
has significant governance experience and is currently Chair of The
New Zealand Merino Company and Link Engine Management and a
director of Heartland Group Holdings, Farm Right, and Christchurch
International Airport, for which she also serves as Chair of the Risk,
Audit & Finance Committee.
We also appointed David Wang to the Board during the year.
David brings extensive expertise across the Asia-Pacific region in
manufacturing and supply chain with over 30 years’ experience in
industrial and consumer goods businesses, including 15 years in
senior executive leadership roles in China and international markets.
I would like to extend my gratitude to all my fellow Directors for
their efforts and significant contributions during the past year. Their
expertise, guidance, and tireless work have played a vital role in
shaping our strategic direction and ensuring the Company’s growth
and prosperity.
Reflecting on the past decade for The a2 Milk Company, it has been
a truly extraordinary journey. It has been my privilege to have been
a Director and Chair of your Company through this transformative
period. As the pioneer and leader of the A2 protein category, we
have transformed from a fresh milk business in Australia to a global
nutritional dairy products company. We have developed a leading
brand in the China IMF market, the largest IMF market in the
world. We faced, and continue to face, a rapidly evolving business
landscape and uncertain times, including the global pandemic that
not only shifted the business environment for us but the entire
global economy from supply chain through to end consumer
behaviours, as well as several regulatory changes that disrupted
the industry we operate in. Together, we adapted, pivoted, and
continued to work through these challenges to be successful.
Looking ahead, the Company is well-positioned to achieve its
strategic goals and thrive to seize additional market opportunities in
the future. Your Board and the ELT are committed to the Company’s
purpose and vision. The strategy is in place and, with a continued
disciplined approach to execution, will continue to gain traction.
To you, our shareholders, thank you for your trust and support. To
our customers, thank you for your loyalty. To our strategic partners,
thank you for your long-term support and collaboration. We are
committed to delivering value for shareholders and positively
impacting the world – to pioneer the future of dairy for good.
I look forward to seeing you at the Annual Meeting in November,
which will be my last. In the meantime, I wish you and your family
the best of health.
Yours faithfully,
David Hearn
Chair
20 August 2023
ANNUAL REPORT fiflfi 3

CEO’S YEAR IN REVIEW - DAVID BORTOLUSSI
Strong performance in a
very challenging market
The Company’s revenue for FY23 was up 10.1% driven
by strong growth in the China & Other Asia segment
up 37.9%, with the USA and MVM segments also up.
Group financial performance
1,2,3
The a2 Milk Company (“the Company”, “a2MC”) today announces its financial results for the year ended
30 June 2023. Key results are as follows:
FY23 ($M)FY22 ($M)VARIANCE (%)
Revenue1,592.91,446.210.1%
EBITDA
4
219.3196.211.8%
Net profit after tax
- Attributable to owners of the Company
155.6122.626.9%
Basic earnings per share (EPS) (cents)21.216.528.7%
Net cash
5
757.2816.5(7.3)%
The Company’s revenue for FY23 was up 10.1% driven by strong growth in the China & Other Asia segment
up 37.9%, with the USA and MVM segments also up 27.1% and 9.2% respectively, partially offset by a
30.2% decrease in the ANZ segment mainly due to an intentional change in English label distribution strategy.
Revenue growth slowed to 3.0% in 2H23 mainly due to a sharp decline in English label IMF Daigou market
value in 2H23 and cycling higher lockdown-driven sales in 4Q22. Higher revenue growth of 18.6% in 1H23
was mainly due to China label IMF sales cycling lower sales in 1H22 due to channel rebalancing and USA sales
benefiting from 2H22 new product launches. Notwithstanding, an important milestone was achieved in FY23
with China & Other Asia segment revenue exceeding $1 billion (representing 62.9% of total revenue) for the
first time demonstrating the importance of the Company’s China focused growth strategy.
1 All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ending 30 June.
2 All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3 All comparisons are with the 12 months ended 30 June 2022 (FY22), unless otherwise stated.
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 FY23 Investor
Presentation (slide 55) dated 21 August 2023.
5 Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letter
THE a2 MILK COMPANY4
CEO’s year in review

“ We reached new highs in
China brand awareness,
trial and loyalty metrics
and were a top-3 share
gainer in the China IMF
market overall, with
record market share.”
5ANNUAL REPORT 2023

OPERATIONAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
$1,593m
Revenue 10.1%
$156m
NPAT attributable to owners
of the Company
26.9%
$219m
EBITDA 11.8%
21.2c
Earnings per share
28.7%
$149m
Share buyback completed
$757m
*
Net cash
Brand health
Reached new highs in China brand
health metrics
Innovation
Ramped up innovation through new
product launches in all categories
Top-3 share gainer
Achieved top-3 share gainer in China
IMF market overall
China State Farm
Extended exclusive partnership with
China State Farm Agribusiness
SAMR
Received new GB brand
re-registration
Sustainability
Advanced sustainability programmes
across climate, nature and packaging
* Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6THE a2 MILK COMPANY
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review
CEO’S YEAR IN REVIEW CONTINUED

“ We are pleased to have
received approval from
China’s State Administration
for Market Regulation for the
re-registration of our China
label IMF product a2 至初®.”
Gross margin percentage
6
of 46.5% was 0.5 ppts higher reflecting
benefits from a2 Platinum
®
English label refresh positioning and
distribution model changes and the cycling of other nutritional
stock write-downs recognised in the prior year, partially offset by
unfavourable foreign exchange on cost of goods sold. Increases
in farmgate milk pricing, raw materials, and other inflationary
pressures were mitigated by price rises and other cost saving
initiatives. Gross margins in 2H23 were also impacted by the
timing of MVM sales which were weighted to the second half.
EBITDA increased by 11.8% to $219.3 million, primarily reflecting
higher revenue and gross margin improvements. EBITDA margin
as a percentage of revenue increased to 13.8% (up 0.2ppts),
with margin expansion achieved notwithstanding an increase in
marketing investment by 13.1% and Administrative and Other
expenses increasing by 9.0%. Administrative and Other expenses
increased due to continued capability building (particularly in
China and Supply Chain teams), further investment in product
innovation and science research projects, the timing of long-term
incentives and increased travel costs post COVID-19.
Foreign exchange rates were volatile during the year. Group
revenue benefited from favourable foreign exchange movements
in the order of $40 million, primarily in 1H23. However, the
combined realised and unrealised foreign exchange impact on
cost of goods sold, administrative and other expenses on EBITDA
was not material in part due to hedging.
Depreciation and amortisation was similar to prior year at $18.2
million, net interest income increased to $21.6 million due to
higher interest rates and the effective tax rate reduced to 35.0%
primarily driven by the alignment of the accounting and tax
treatment of foreign exchange contracts. NPAT including amounts
attributable to non-controlling interests was $144.8 million, an
increase of 26.2%. The non-controlling interests represent China
Animal Husbandry Group’s (CAHG’s) 25% interest in MVM.
Excluding this loss of $10.8 million, NPAT attributable to owners
of the Company was $155.6 million.
6 Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.
7 Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
The balance sheet remains in a strong position with closing
cash and term deposits of $802.2 million and net cash of
$757.2 million. The lower cash balance compared to June 2022
mostly reflects the $149 million used to execute the on-market
share buyback. In accordance with the Company’s Capital
Allocation Framework, a2MC has decided to prioritise investment
in growth opportunities (focused on Supply Chain transformation)
and balance sheet strength, ahead of returning further capital to
shareholders at this point in time but will continue to review this
on a regular basis.
Inventory at the end of the period was $193.4 million, higher
than at the end of 1H23, mainly due to stock building of China
label IMF inventory to accommodate the timing of new China
GB registration and product transition, as well as a sharp decline
in the Daigou channel and the timing of Synlait supply which
resulted in higher English label inventory at year end. Channel
inventory and product freshness remained at target levels across
the business. The Company’s China label inventory levels and
product freshness at 30 June 2023 (96% of expiry dates >18
months from manufacturing date) were in line with Company’s
plans for the new GB product transition.
Excluding interest and tax, operating cash inflow was
$127.4 million, representing cash conversion of 58%
7
which was,
as anticipated, lower than the prior period due to the catch-up
of FY22 payments in China which were impacted by COVID-19
delays (outside the Company’s control) as well as prepayments for
China label stock build to support transition.
ANNUAL REPORT 20237

China market update
8
The overall China IMF market declined 12.1% in volume and
14.4% in value in FY23. The decline in BCD cities exceeded
Key&A cities particularly in the second half, with Key&A market
value decreasing by 13.1% in 2H23 and BCD market value
decreasing by 18.3% in 2H23. The market decline reflected the
decrease in newborns overall, socio-demographic differences
between Key&A and BCD cities, challenging macroeconomic
conditions impacting retail sales, and increased competitive
intensity and promotional activity driven by excess industry
capacity and the commencement of the market-wide transition
to new GB standards.
The number of newborns in China declined by 10.0% in CY22
to 9.6 million
9
which is likely to decline further in CY23 having
regard to various factors and data points, including socio-
demographics, prevailing youth unemployment rates, recent
marriage numbers and pregnancy indicators. The Company still
expects a post COVID-19 recovery in birth rates in the medium-
term with the longer-term birth rate inherently uncertain. The
lower birth rate in CY22 along with the rolling impact of fewer
births in prior years reduced China IMF market Stage 3 sales (the
biggest segment of the IMF market) in particular which declined
by 20.6% in 2H23 and accelerated to be down 23.5% in 4Q23.
China label market value declined 14.9% in FY23 with 2H23
down 17.3%. The MBS channel was down 12.7% in FY23
and DOL was down 4.5%. Within China label channels, a2MC
continues to be supported by a mix shift to the ultra-premium
price segment (although this segment also declined in absolute
terms in FY23), rapid growth of the A2 protein segment and
increasing brand concentration with the top-10 brands now
accounting for 77% of the total China label market.
8 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities); unless otherwise stated.
9 China National Bureau of Statistics.
10 Smart Path China IMF online market tracking: for CBEC only retail sales (by value).
11 a2MC internal data based on the Company’s brand health tracking. Average brand health metrics for each financial year based on 3 surveys in FY21 and FY22, and
2 surveys in FY23. Sample skews to a2MC target consumers ie higher income earners based in provinces / cities that are the focus of sales and marketing activities.
English label market value decline stabilised in FY23 down 14.0%
with 2H23 down 11.5%. Within English label channels, the
Daigou channel experienced a sharp decline of 39.5% in FY23,
while O2O was down 17.9% in FY23 and CBEC experienced
sustained growth up 8.3%
10
, continuing the significant mix shift
across English label channels. a2MC’s distribution strategy is
focused on continuing to develop the CBEC and O2O channels
where it continues to gain share.
In the context of challenging socio-demographic, macroeconomic
and IMF market conditions, a2MC’s growth in FY23 in China label
IMF of 27.8% and total IMF of 8.4% was very encouraging.
Regional performance
1. China & Other Asia
Growth in value and volume of the China & Other Asia segment
was driven by continued execution of the Company’s growth
strategy particularly in China label. Revenue of $1,002.2 million
was up 37.9%, with EBITDA of $254.1 million up 75.1%. The
combination of increased investment and higher impact marketing
campaigns had a positive impact on key brand health metrics in
2H23, which in turn supported increased sales and market share.
New highs in overall China brand health metrics were achieved
with total a2MC IMF prompted brand awareness increasing from
52% to 63%, unprompted brand awareness increasing from 17%
to 23% and top of mind brand awareness increasing from 7% to
9%, and trial and loyalty metrics increasing as well
11
.
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letter
THE a2 MILK COMPANY8
CEO’s year in review
CEO’S YEAR IN REVIEW CONTINUED

“ Our strong performance was supported
by significant marketing investment in
brand building campaigns as well as
innovative trade activation initiatives.”
China label IMF
The strong performance in China label IMF sales in 1H23
continued into 2H23 despite the declining market and heightened
volatility with the market transitioning to new GB products.
Consumer demand for a2
至初
®
remained strong with market
value share improvement both in-store and online. Sales for
a2
至初
®
China label IMF increased 27.8% to $559.3 million,
with 2H23 sales up 16.0%. Growth was supported by continued
strong execution of the Company’s growth strategy through
same store sales volume growth and favourable pricing and
foreign exchange.
The strong performance was supported by significant marketing
investment in brand building campaigns as well as innovative
consumer campaigns such as caravan tour roadshow events to
drive brand awareness and trial in BCD cities, and a corporate
social responsibility campaign with Operation Smile to
engage consumers with impact.
MBS weighted distribution increased as well as same store sales,
driving growth in Key&A and BCD cities. Offline distribution
declined slightly to 25.9k stores at the end of June 2023 from
26.5k at the end of June 2022
12
. A significant number of store
closures occurred in the market during the period reflecting
challenging retail and category conditions. The Company is
building share in national key accounts, pursuing regional key
accounts, as well as targeting greater penetration of BCD cities,
whilst developing new strategies for accelerated growth in certain
prioritised provinces.
Retail market value for the MBS channel was down 12.7% in
FY23
13
, with 2H23 down 15.9%, reflecting challenging China
IMF market dynamics including store closures and increased
discounting of old GB product prior to transitioning to new
product. a2MC’s market value share in MBS increased to 3.4%
at the end of June 2023 compared with 3.0% at the end of June
2022, making a2
至初
®
one of the fastest growing international
brands within MBS in FY23.
12 a2MC internal data tracking of stores with active sales in the past 6 months.
13 Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY23 versus FY22.
14 Smart Path China IMF online market tracking: domestic online platform sales (by value). FY23 versus FY22.
15 English label IMF includes sales via CBEC, Korea, and Hong Kong Resellers.
16 Smart Path China IMF online market tracking: for CBEC only retail sales (by value). 12-month rolling share. FY23 versus FY22.
Accelerating online growth is a strategic priority for China label
IMF and performance in DOL is a key measure of success. Retail
market value for the DOL channel was down 4.5% in FY23
14
,
with 2H23 down 13.6% cycling 4Q22 lockdown impacts. a2MC’s
market value share in DOL increased to 3.3% at the end of June
2023 compared with 2.5% at the end of June 2022, and was
the number 2 share gainer in the channel. Within this channel
the Company’s share of early-stage product sales has increased
significantly as more users shift to online channels at all stages of
their IMF lifecycle.
English label IMF
15
The China & other Asia segment benefited from continued
execution of the Company’s English label IMF distribution strategy,
resulting in a further sales mix shift towards the CBEC channel,
as well as improved brand health metrics following increased
investment as part of the a2 Platinum
®
English label refresh.
Overall, English label IMF sales of $386.2 million were up 51.0%,
with 2H23 growing 37.3% on prior year.
a2MC continued to prioritise overall channel economics as part of
its inventory management plan and promotional activity in CBEC.
English label sales during key sales events were up moderately,
with market pricing across CBEC platforms and reseller channels
at target levels, and emerging platforms seeing stronger growth
from a lower base. Platform rankings on mainstream platforms
were maintained or improved in the Double 11 and 618 sales
events, and a2MC ranks as one of the leading IMF players on
Douyin (TikTok).
The Company is focused on CBEC growth and building digital
marketing and e-commerce capability to further improve its
execution which is having an impact, particularly on new user
recruitment. Retail sales for the overall CBEC channel were up
8.3% in FY23
16
. Despite market value growth in 2H23 slowing
to 2.9% from 13.8% in 1H23, a2MC’s was the number 1 share
gainer in CBEC with market value share increasing to 22.6% at
the end of June 2023 compared with 19.4% at June 2022. Similar
to DOL, a2MC’s share of early-stage product sales also increased
significantly in CBEC which is becoming increasingly important
relative to the Daigou channel.
ANNUAL REPORT 20239

Liquid milk and other nutritional products
Sales of liquid milk in China & Other Asia segment were up
36.7% to $15.2 million and revenue from other nutritional
products was also up 87.9% to $41.4 million, benefitting from
stronger execution, brand awareness and mix shift from ANZ
channels to CBEC. The strong performances in these categories
were supported by increased marketing investment through brand
building campaigns.
2. Australia and New Zealand
The Australia and New Zealand (ANZ) segment result was
driven by lower IMF sales to ANZ resellers / Daigou due to an
intentional change in a2MC’s distribution strategy, partially offset
by the positioning and pricing benefit associated with the a2
Platinum
®
refresh. Overall, ANZ sales volumes were down with
segment revenue of $371.7 million, down 30.2%, and EBITDA of
$93.5 million, down 46.0%.
IMF resellers and retail
With Daigou channel market value down 39.5% in FY23
17
and
the change to the Company’s English label distribution strategy
in 2H22, IMF reseller and retail sales decreased 50.6% to
$162.5 million. The Company has proactively changed its English
label distribution model to more controlled channels and to more
transparent and performance-based distribution partnerships in
all channels. These declines were partially offset by a significant
increase in sales to CBEC (see commentary in China & Other
Asia above). Whilst the Company’s English label IMF focus going
forward is likely to be on CBEC and O2O given the recent evolving
dynamics, it will also continue to support the Daigou channel
through multi-channel consumer marketing campaigns and
reseller trade support programmes.
Development of the O2O channel has also been a key focus area
for English label distribution. In 2H23, the Company entered into
a new partnership with one of the leading distributors in China
and is focused on improving share in O2O key accounts, long-
tail O2O and Pop accounts complementing certain Company led
initiatives. Results relating to this partnership in the future will be
reflected in the China & Other Asia segment.
In 2H23, while the O2O channel market value was down 15.7%,
its trajectory improved versus 1H23, and a2MC’s channel market
share increased significantly at the end of June 2023 versus
last year
18
.
Due to sample size, data classification and associated volatility
reasons, the Company focuses more on its combined O2O and
Daigou channel market share based on Kantar survey data
which is the only source of market share data for these channels.
Based on this data, a2MC’s market share in the O2O and Daigou
channel increased to 20.8% at the end of June 2023 versus
19.5% at the end of June 2022
19
.
17 Kantar data based on a panel of 9,000 consumers covering 0-6 year olds and only seeks to project ~40% of the population.
18 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY23 versus FY22.
19 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY23 versus FY22.
20 IRI Scan Data NSW and VIC Month ending 30 June 2023.
21 IRI Australian Grocery Weighted Scan 12-months ending 30 June 2023.
22 IRI Australian Grocery scan Weighted Scan MAT.
23 SPINS data for the Grocery channel only for the 52 weeks ending 30 June 2023 and 30 June 2022.
Liquid milk and other nutritional products
Australian liquid milk sales were up by 7.1% to $184.1 million,
with 2H23 growth of 8.5%, driven by a full 6-month contribution
from price increases taken in 1H23 in response to higher raw milk
prices and other input and logistics cost increases, favourable
foreign currency movements plus continued strong performance
from the launch of a2 Milk
®
Lactose Free.
This result was partly offset by consumption volume declines
impacted by increased cost of living, as well as several challenges
within the supply chain network impacting on-shelf availability.
a2 Milk
®
Lactose Free (launched in August 2022) has performed
ahead of expectations, with sales supported by distribution
expansion into Queensland, South Australia and Tasmania in
2H23. This saw market share in the lactose free segment in initial
launch cities (New South Wales and Victoria) increase to 18.4%
20

in June 2023 compared with 12.3% in December 2022.
a2MC recorded market value share of 11.3% at the end
of June 2023
21
versus 12.4% at the end of June 2022. This
result was impacted by consumers trading down due to wider
macroeconomic factors, as well as the prior comparable period
(primarily 1H22) benefitting from strong in-home consumption
from COVID-19 lockdowns. The current market share is broadly
similar to pre-COVID-19 levels, with a2MC’s MAT market volume
share increasing from 6.6% in January 2020 to 6.8%
22
at June
2023. Whilst market volume for liquid milk increased during the
COVID-19 lockdown period, it decreased 4.5% from January
2020 to June 2023. Pleasingly, three a2 Milk
®
products achieved
rankings in the top-10 products in the dairy category in Grocery.
Consistent with IMF, revenue for other nutritional products was
also impacted by the channel mix shift to CBEC, declining 21.4%
to $25.1 million.
3. USA
Accelerating the path to profitability in the USA by FY25/
FY26 is a strategic priority for the Company. During FY23, USA
profitability improved through a combination of higher revenue
growth from both core range and new products, as well as cost
reduction initiatives. As a result, USA revenue increased 27.1% to
$105.1 million while EBITDA losses were reduced to $23.3 million
compared with a loss of $36.7 million in FY22.
Sales growth was driven by a modest increase in core liquid milk
volumes, contribution from new products, pricing and favourable
foreign exchange movements. Sales in 2H23 were broadly in
line with the first half, as the Company reduced promotional
spend. Despite this a2MC’s market value share in the premium
milk category for the Grocery channel increased from 2.0% in
June 2022 to 2.3% in June 2023
23
.
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letter
THE a2 MILK COMPANY10
CEO’s year in review
CEO’S YEAR IN REVIEW CONTINUED

The lower EBITDA loss was mainly due to revenue growth, less
promotional activity, improved input costs and distribution rates,
lower marketing spend and reduced SG&A costs. Whilst reduced
marketing investment led to a lower level of brand awareness,
household penetration increased and brand loyalty and equity
ratings improved. The Company has recently changed the
management team in the USA and there will be a greater focus
on profitability going forward.
In November 2022, the Company received confirmation from the
FDA that its application for enforcement discretion to import, sell
and distribute a2 Platinum
®
IMF product from New Zealand into
the USA had been approved. a2MC is pursuing longer term FDA
approval of a2 Platinum
®
whilst carefully considering market entry
options. A small amount of product has been produced recently
to facilitate FDA required clinical studies and distribution trials
during FY24.
4. Mataura Valley Milk
Accelerating MVM’s path to profitability by FY26 or earlier is
also a strategic priority. During FY23, the Company accelerated
execution of its supply chain transformation strategy, including
increasing raw A1 protein free milk supply, completing the
insourcing of all a2 Milk™ Whole and Skim milk powder products,
completing production trials for insourcing of certain IMF product
with manufacturing to commence in 1H24, and commencing
production trials for a new English label IMF range, all with MVM
and new blending and canning partners prior to installing similar
capability at MVM.
Revenue of $113.9 million
24
and an EBITDA loss of $26.5 million
were recorded for the period. The higher revenue reflected
12-months under a2MC ownership versus 11-months in
FY22 (due to acquisition timing) net of intercompany sales
of $32.3 million during the current period. EBITDA loss of
$26.5 million, compared to a reported loss of $18.8 million in
FY22 (or a loss of $23.2 million on a pro-forma unaudited basis
for 12-months). The slightly higher EBITDA loss was due to the
timing of sales in a volatile commodity and FX environment;
reduced demand from third-party customers in China; increased
investment in capability (including management changes),
significant product development trials; and investment to
support future nutritional powder production.
24 Revenue excluding intercompany sales.
Sustainability progress
a2MC’s sustainability strategy is focused on taking action on
climate change, achieving nature positive outcomes, supporting
thriving farms, utilising more sustainable packaging and supporting
communities in need. The Company has previously communicated
its Planet-related goals, including achieving Scope 1 and 2 net zero
emissions by 2030 and Scope 3 by 2040. The Company is pleased
to announce that it has refined its Scope 3 reduction ambition
to include an interim goal to reduce emissions intensity by 30%
by 2030.
The Company made significant progress on implementing its
Sustainability strategy during FY23. In 2H23, MVM commenced
the installation of a new high-pressure electrode boiler and the
full electrification of the site supplied by 100% renewable energy
such as hydro and wind, which is a first in the New Zealand market
that will substantially reduce a2MC’s total Scope 1 and 2 emissions
close to net zero. To accelerate addressing Scope 3 emissions,
the Company commenced an on-farm methane inhibitor pilot in
Australia with additional studies and a commercial trial planned
for FY24. The Company completed its first two nature risk and
opportunity assessments covering two regions in New Zealand,
Canterbury and Southland, where the largest A1 protein free milk
pools supplying the Company are based. a2MC also entered into
an environmental research agreement with Lincoln University,
continued to roll out its Farmer Environmental Plan programme,
and increased its support for its Farmer Grant programmes.
“ We advanced our
sustainability
programmes, including
commencing the
electrification of MVM
from 100% renewable
energy sources
and an on-farm
methane inhibitor
feasibility study.”
ANNUAL REPORT 202311

Strategy execution update
The Company has progressively refreshed its strategy and execution
framework over the past couple of years. At the a2MC’s Investor Day
in October 2021, the Company communicated its people, planet,
consumer and shareholder related goals, outlined its five strategic
priorities and highlighted key enablers to execution. Consistent with
its strategy, the Company will continue to focus on capturing the full
potential of China IMF as well as ramping up innovation to pursue
opportunities in adjacent categories and new markets.
From a shareholder goal perspective, the Company outlined its
medium-term financial ambition to grow revenue to $2 billion
over 5 or more years from FY21 and to target EBITDA margins in
the “teens”. In doing so, the Company highlighted the key risks
to achieving these goals and that the path is unlikely to be linear.
At that time, the Company also stated that EBITDA margins could
possibly increase to the “low-to-mid 20s” in the medium-to-long
term subject to higher than expected market recovery, English label
channel growth and market share gains.
a2MC has made solid progress towards these financial goals with
revenue growing from $1,207 million in FY21 to $1,593 million
in FY23, and EBITDA margins increasing from 10.2% in FY21 to
13.8% in FY23. Over this period, market conditions have been
more challenging than expected with the total China IMF market
value down 17.4% – China label down 16.0% and English label
down 24.7%
25
. a2MC has increased its share of the overall China
IMF market significantly from 4.9% in FY21 to 5.7%
26
in FY23 and
remains on track to achieve its revenue goal of $2 billion. At this
stage, it is unlikely that EBITDA margins will increase to the “low-
to-mid 20s” in the foreseeable future due to market conditions
and outlook. Notwithstanding, the Company remains committed
to an EBITDA margin goal in the “teens” targeting year-on-year
improvement.
25 Kantar data based on a panel of 9,000 consumers covering 0-6 year olds and only seeks to project ~40% of the population.
26 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY23 versus FY22.
In terms of people, planet and consumer goals, a2MC has specific
non-financial measures of success that were also communicated
to the market at its October 2021 Investor Day. The Company has
also made substantial progress on achieving these goals, including:
improving safety metrics and employee engagement; accelerating
its sustainability programmes as noted above; and from a consumer
point of view it has improved brand health, increased market share
and ramped up innovation.
In addition to its strategic goals, last year a2MC updated its Purpose
and Vision and shared this in the Company’s 2022 Annual Report.
The Company’s purpose is to “Pioneer the future of Dairy for
Good” with a vision of creating “An A1-free world where Dairy
nourishes all People and our Planet” which has provided a north
star and greater emotional connection for the a2MC team and
stakeholders as to why the Company exists and the world it is
endeavouring to create.
More recently during 2023, the Company has refreshed its
Values and associated Standards of Behaviour which provide a
cultural framework and clarity around how team members should
execute the Company’s strategy individually and collectively.
The Company’s new values framework is expressed through the
“BOLD” acronym standing for Bold Passion, Ownership and Agility,
Leading Constructively and Disruptive Thinking. The refreshed
Values and Standards of behaviour build on what has contributed
to a2MC’s success in the past and emphasises areas that will be
key to executing our strategy, living our purpose and achieving our
vision and goals.
“ We will continue to focus on capturing
the full potential of China IMF as well
as ramping up innovation to pursue
opportunities in adjacent categories
and new markets.”
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letter
THE a2 MILK COMPANY12
CEO’s year in review
12
CEO’S YEAR IN REVIEW CONTINUED

Executive Leadership Team renewal
There have been significant Executive Leadership Team renewal
over the last two years, with all ELT members either new to the
Company or in expanded roles. During the year there were a
number of new appointments. David Muscat was appointed to
the role of Chief Financial Officer, having previously served in CFO
roles in Australia and Europe, bringing significant experience in
the consumer and retail sectors in various international markets,
including China. Chopin Zhang joined with over 35 years of
experience in supply chain management, including significant
experience in China and New Zealand IMF having most recently
served as CEO at Yashili from 2017 to 2020. Chopin’s primary
focus includes transforming the Company’s supply chain to enable
further market access, insourcing, innovation, and growth, which
is a key aspect of its refreshed growth strategy.
Additionally, there have been several internal appointments later
in the financial year. Kevin Bush, previously Executive General
Manager – ANZ, has recently been appointed to the role of
Managing Director – USA. Kevin’s main focus is driving growth
through innovation and accelerating the path to profitability in the
USA. Eleanor Khor, previously Chief Strategy Officer, has taken on
an expanded role, adding the leadership of a2MC’s ANZ business
as Managing Director – ANZ and Strategy. Eleanor’s focus is on
expanding the business in ANZ through innovation, with particular
attention to realising the full potential of the new a2 Milk™
Lactose-free product.
FY24 Outlook
Market conditions
China IMF market conditions are uncertain but likely to become
more challenging in FY24 with a further double-digit decline in
market value expected. This is due to volume declines driven by
the rolling impact of fewer newborns in recent years on later
stage IMF products, and a lower number of newborns expected
in CY23 due to the lagged impact of COVID-19 prior to an
expected increase in CY24. In addition, it is expected that average
selling prices will remain under pressure due to an increase in
competitive intensity driven by the market-wide transition to
new GB product, excess manufacturing capacity and challenging
macroeconomic conditions.
Business and category sales
The Company will continue to execute its growth strategy in
FY24, focusing on growing share in IMF as well as commercialising
opportunities in adjacent categories and new markets.
The Company expects to continue to gain market share in China
IMF, with growth dependent on the extent of market share gains
in a declining market. China label is expected to outperform
English label, and overall IMF growth is expected to be 2H24
weighted as the Company manages the transition to its new
China label product primarily in 1H24, and due to English label
cycling a relatively strong prior period in 1H23.
The Company expects growth in other nutritional products and
modest growth in ANZ and USA liquid milk. USA IMF sales are
expected to be immaterial. MVM sales are expected to decline
significantly due to increased levels of insourcing and lower GDT
market pricing.
Key financials
Due to the expected market conditions outlined above, a broad
range of sales outcomes is possible. At this stage, the Company is
expecting low single-digit revenue growth in FY24.
FY24 gross margin (% of sales) is expected to be similar to FY23,
with cost of goods sold headwinds related to China label IMF re-
formulation and upgraded packaging, ingredients and packaging
inflationary pressures, foreign exchange changes, product and
channel mix impacts, and higher Australian farmgate milk
pricing – offset by price increases, lower New Zealand farmgate
milk pricing for IMF, MVM internalisation benefits and cost
mitigation initiatives.
The Company plans to increase its brand investment in FY24 in
line with sales growth to support its new China label product
launch and growth. Administration & Other expenses are expected
to be similar to FY23.
The Company expects EBITDA margin (% of revenue) to be
broadly in line with FY23.
Operational cash conversion is expected to be higher in FY24
partly supported by an incremental reduction in inventory cover,
and capital expenditure is expected to increase to approximately
$26 million mainly due to the Kyabram facility upgrade and MVM
electrification projects.
Key risks
In addition to the challenges noted above and trading upside
and downside, other risks include, but are not limited to, residual
COVID-19 impacts on supply and demand, new China label
product transition, volume impact of price increases, cross border
trade, foreign exchange movements, changes in interest rates,
farmgate milk pricing and other commodity prices, and changes
in the regulatory environment. These challenges and risks could
materially impact expected revenue and earnings outcomes.
David Bortolussi
Managing Director and Chief Executive Officer
20 August 2023
ANNUAL REPORT 202313

Building a
sustainable
growth business
THE a2 MILK COMPANY14
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

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 A2 beta-casein protein.
The A1 protein arose through a genetic mutation over many
years. Today, most regular milk contains a mixture of A1 and
A2-type beta-casein 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, a2MC 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 A2-type beta-casein protein and no A1. These
products include fresh milk, ultra-heat treatment (UHT) milk,
extended shelf life (ESL) milk, infant milk formula (IMF), plain milk
powders (including instant whole and skim milk powder), fortified
milk powders providing nutrition for children and pregnant
women and other dairy nutritional products primarily for the
New Zealand, Australia, China and North America 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, plain and fortified milk
powders for children and pregnant women through reseller
and retail channels, and sales of liquid milk across Australian
and New Zealand retail channels. It is understood that the
majority of the infant milk formula sales to customers in ANZ
are ultimately consumed in China.
©North America: Sales of liquid milk and nutritional products in
the United States of America and liquid milk in Canada.
©Mataura Valley Milk: Production of nutritional and
commodity products for a2MC and other external customers
in overseas markets.
ANNUAL REPORT 202315

Strategic partners
Strategic partners
Licensee fresh milk
New Zealand
Licensee fresh milk
Canada
What we do
Part of The a2 Milk CompanyPart of The a2 Milk Company
China and Other Asia
Revenue $1,002m
EBITDA$254m
Market sizeEstimated China IMF market value
size for FY23 was NZD$33 billion
1
Supply chain ©China State Farm importation
agent and master distributor
©Over 100 distributors
Our people132 (headcount)
PRODUCT PORTFOLIO
Australia and New Zealand
Revenue $486m
EBITDA$67m
Market sizeAustralian fresh milk market
NZD$2.6 billion
2
plus cross-border
access to China market
Supply chainAustralia (Liquid Milk)
©Smeaton Grange (a2MC)
©Kyabram (a2MC)
©Four third-party processing
relationships
©21 farmer suppliers
New Zealand (Nutritionals)
©75% interest in Mataura
Valley Milk
©19.8% interest in Synlait Milk
©198 farmer suppliers
Our people307 (headcount)
PRODUCT PORTFOLIO
THE a1 MILK COMPANY16
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Strategic partners
Strategic partners
Licensee fresh milk
New Zealand
Licensee fresh milk
Canada
1 Source: FY23 Market size based on a2MC internal estimation approach,
which may be adjusted year-to-year, and which may result in market size not
being directly comparable across periods.
2 Source: Circana Grocery Scan data for measured market with internal
estimates using Circana Shopper Data for unmeasured market.
3 Source: SPINS; USA Food FY23 retail milk sales in the premium segment. Note,
in FY23 the Company has updated the market size from ‘US MULO + Natural
+ Regional + Independents’ to ‘US Food’ as it is a more representative metric.
North America
Revenue $105m
EBITDA($23m)
Market size$4.1billion premium segment
3
Supply chain ©Three third-party processing
relationships
©9 farmer suppliers
Our people26 (headcount)
PRODUCT PORTFOLIO
ANNUAL REPORT 202317

Purpose
We pioneer
the future of
Dairy for good

Page xx
Vision
An A1-free world
where Dairy nourishes all
people and our planet
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 team, 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.
Our brand
Our trusted brand, our proprietary know-how and our 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
helping them to thrive.
Our finances
We carefully balance investment in our supply chain and
distribution through both strategic partnerships and direct
ownership. Combined with the growth of our premium products,
this approach has enabled us to build a strong and robust balance
sheet, which, guided by our capital management framework,
provides financial capital for us to deploy in the pursuit of our
strategic objectives.
Competitive
intensity
Evolving
technology and
cyber security
Strategic
partnerships
Talent and
culture
Social licence
to operate
Doing business
in international
markets
Major
international
events
The sale of
nutritional food
products
Purpose
We pioneer
the future of
Dairy for good

Vision
An A1-free world
where Dairy
nourishes all people
and our planet
Climate
and nature
Inputs
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
– Ownership and agility
– Leading constructively
– Disruptive thinking
How we create value
Our strategy
Page 21
THE a2 MILK COMPANY18
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Purpose
We pioneer
the future of
Dairy for good

Page xx
Vision
An A1-free world
where Dairy nourishes all
people and our planet
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 team, 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.
Our brand
Our trusted brand, our proprietary know-how and our 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
helping them to thrive.
Our finances
We carefully balance investment in our supply chain and
distribution through both strategic partnerships and direct
ownership. Combined with the growth of our premium products,
this approach has enabled us to build a strong and robust balance
sheet, which, guided by our capital management framework,
provides financial capital for us to deploy in the pursuit of our
strategic objectives.
Competitive
intensity
Evolving
technology and
cyber security
Strategic
partnerships
Talent and
culture
Social licence
to operate
Doing business
in international
markets
Major
international
events
The sale of
nutritional food
products
Purpose
We pioneer
the future of
Dairy for good

Vision
An A1-free world
where Dairy
nourishes all people
and our planet
Climate
and nature
Inputs
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
– Ownership and agility
– Leading constructively
– Disruptive thinking
Risks and
opportunities
Page 50
Progress
towards our
goals
Page 25
People
Create a safe, diverse, inclusive
and engaging place for our
people to thrive, support our
farmers and contribute to
our communities.
Page 25
Page 51
Page 52
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Planet
Protect our planet and cows,
rethink packaging, achieve net
zero and become nature positive.
Page 32
Consumers
Bring the unique benefits of
pure and natural a2 Milk™ to
as many consumers as possible.
Page 40
Shareholders
Create long-term, enduring value
for shareholders and a trusted,
transparent relationship.
Page 45
ANNUAL REPORT 202319

What makes us unique
Purpose
We pioneer the
future of Dairy
for good
Values refresh
Building on the purpose and strategy refresh in FY22, the Company also refreshed its values
and standards of behaviour in FY23. The values refresh was led by the Executive Leadership
Team and a cross-functional working group from the business, across multiple geographies,
teams and working styles, to ensure the values are relevant to all team members, underpin
culture in the organisation, and support execution of the Company’s strategy going forward.
Bold
passion
We believe in the power
of the a2
TM
proposition.
We are pioneers and always
find a way to make it happen.
We are passionate about our
consumers and customers.
Ownership
and agility
We align on outcomes
and prioritise initiatives.
We are effective in teams and
do what we say we will do.
We are flexible and act with
a sense of urgency.
Leading
constructively
We are proud of what
we do and how we do it.
We encourage and develop
ourselves and others.
We are honest, direct and
respectful in our interactions.
Disruptive
thinking
We think big, creatively
and logically to maximise
group impact.
We are better together
and unlock the power
of the collective.
We challenge existing ways
of working to achieve
better solutions.
An A1-free world
where Dairy
nourishes all people
and our planet
Vision
THE a1 MILK COMPANY20
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Our strategy
Our growth strategy
The a2 Milk Company’s strategic priorities and goals remain
largely unchanged since it undertook a holistic review of its
market, brand, product and distribution opportunities, which was
communicated to the market in October 2021.
The Company has clear goals in four stakeholder groups, 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 stakeholders.
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 continued to invest in people leadership,
including through its constructive leadership programmes and
refreshing its values and behaviours. The Company elevated
investment in planet leadership to sit amongst its top strategic
priorities, by taking direct action with an ambition to lead the
industry, particularly in GHG emissions reduction, farming
practices and sustainable packaging. The Company is also
focused on supporting healthy ecosystems through initiatives
that contribute to nature positive outcomes.
©Capture full potential in China IMF: To achieve its
commercial ambitions, the Company remains primarily focused
on capturing its opportunity in IMF in the China market. To
accomplish this, the Company is increasing its control over its
CL and EL distribution, getting closer to consumers, continuing
to increase investment in its brand, and further investing 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 CL and EL IMF, as well
as entering adjacent product categories in key markets.
©Transform the supply chain: Connected to its IMF and
innovation ambitions, the Company is working to transform
its supply chain. This includes a focus on obtaining additional
CL 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 its 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 path
to profitability for both 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
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
pure and natural a2 Milk™
to as many consumers as
possible
SHAREHOLDERS
Create long-term, enduring
value for shareholders
and a trusted, transparent
relationship
Values
Bold passionOwnership & agilityLeading constructivelyDisruptive thinking
Enablers
Quality & ServiceBrand strengthScience & InnovationStrategic relationships
Strategic
priorities
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
Capture full
potential in China
IMF
– Gain more control
over CL and EL
distribution and
get closer to our
consumer
– Increase investment
in our brand, digital
marketing and
e-commerce
Ramp-up product
innovation
– Expand our CL and
EL IMF product
portfolios
– Enter adjacent
product categories
in relevant markets
to drive growth
Transform our
supply chain
– Expand CL
registered market
access
– Utilise MVM and
invest in New
Zealand capability
– Develop China
supply capability
over time
Accelerate path
to profitability
– Take action to
realise potential in
USA
– Expedite insourcing
of a2™ product
and 3rd party
volume to
significantly
increase MVM
utilisation
12345
ANNUAL REPORT 202321

Financial measures of success
The Company’s medium-term ambition is to grow sales from
$1.2 billion in FY21 to approximately $2 billion by FY26 or later
and to improve EBITDA margins in the ‘teens’. The sales ambition
is expected to be predominantly driven by growth in CL and EL
IMF as well as other nutritional products sold in China.
The key drivers for the sales growth are:
©Increasing share of CL IMF nutrition
©Supporting EL channel recovery post COVID-19 and gaining
channel 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
The Company’s ambition is to improve EBITDA margins over time
and is targeting EBITDA margins in the ‘teens’ in the medium-
term. This will depend on a range of factors, including 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 evolves and the impact policy
changes may have on this
©The extent and pace of recovery in cross-border trade post
COVID-19 disruptions
©How the competitive landscape will evolve in China following
the new GB registration process
©The extent and pace of change in consumer product and
channel preferences
©How the China regulatory framework and international
relations may evolve and impact trade
Because of these uncertainties, it is 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, as summarised in the image below.
People: 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 in the industry by creating
a fulfilling employee engagement experience that enables
employees to thrive personally and professionally. To facilitate
this ambition, the Company is targeting below 10 for its safety
total recordable injury frequency rate (TRIFR) with continuous
improvement, improving its employee engagement score to above
80%, and maintaining its diversity and inclusion rating.
Planet: The Company is committed to minimising its impact on
the planet and becoming a more sustainable business across a
broad range of areas. On emissions, this includes targeting net
zero emissions for Scope 1 and 2 by 2030 and Scope 3 by 2040
and a reduction in Scope 3 by 30% (per tonne of milks solids),
by 2030. For on-farm and other impact areas, this includes
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.
Consumers: The Company has also set brand health, market
share, innovation and supply chain targets to deliver on its
Consumer goals.
For brand health, the Company is targeting greater than 25%
for unprompted awareness in China, household penetration of
16% in Australian fresh milk, and household penetration above
3% in the USA in the premium milk segment.
For 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 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.
For supply chain, importantly, the Company is also looking to
secure three or more China label IMF registrations. The Company
targets to maintain the highest food safety and quality standards,
improve supplier and customer service levels, tightly manage
inventory levels and constantly improve supply chain efficiency.
THE a2 MILK COMPANY22
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review
OUR STRATEGY CONTINUED

1. Total Recordable Injury Frequency Rate (TRIFR)
Medium term measures of success
GOALS
PEOPLEPLANET
CONSUMERS
SHAREHOLDERS
Brand HealthMarket ShareInnovationSupply Chain
1
Safety
TRIFR
1
Engagement
Diversity &
Inclusion
GHG
emissions
reduction
Environmental
plans on farms
Animal
welfare
programmes
Sustainable
packaging
China
unprompted
brand
awareness
AU household
penetration
USA
household
penetration
MBS share
DOL share
CBEC share
O2O + Daigou
share
Australian
fresh milk
share
USA premium
milk share
China other
dairy /
nutritionals
growth
Emerging
markets
development
USA sales
from new
products
ANZ sales
from new
products
Access
to ≥3 CL
registrations
CL inventory
management
EL inventory
management
Quality
outcomes
Supply chain
efficiency
Medium-term
sales ambition
of ~$2.0b
(≥FY26)
EBITDA
margin goal
in the ‘teens’
targeting
year-on-year
improvement
USA
profitability
during FY25/
FY26
MVM
profitability
during FY26
234567
On track Work in progress
ANNUAL REPORT 202323

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 strategy,
governance, performance, and prospects create value in the
context of their external environments.
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.
The Company notes the recent developments in this space,
and in particular the publication of New Zealand’s first Climate
related standards in December 2022 from the External Reporting
Board (XRB). The XRB standards were guided by the International
Sustainability Standards Board (ISSB) exposure drafts, which were
released in March 2022 and formally published in June 2023.
It is expected that this will result in a more definitive approach
for companies to follow with regard to integrated reporting. This
report has been prepared with reference to the XRB and ISSB
standards and considers the integrated reporting principles.
During FY23 the Company continued to assess materiality,
informing the Company on which topics to prioritise and report
against, whilst building on its strategic priorities and aligning with
the needs and expectation of its stakeholders. The materiality
assessment included stakeholder interviews, peer benchmarking
and alignment to the United Nation’s Sustainable Development
Goals (SDGs), The Global Reporting Initiative (GRI) and The
Sustainability Accounting Standards Board (SASB) standards.
The Company also acknowledges the increasing expectation of
internal and external stakeholders to ensure non-financial metrics
disclosed externally are done so with a similar level of rigour to
financial reporting. Over the past several years the Company has
taken steps to improve the robustness of its internal processes to
capture and report non-financial data to be included in external
materials. For FY23, the Company has received limited assurance
for many of the key non-financial metrics included in this report.
For further information, please see ESG assurance report on
page 81 from Ernst & Young.
The Company will endeavour to continue assessing stakeholder
requirements and expectations along with the reporting
requirements in all jurisdictions in which it operates.

Our reporting approach
The Company believes that by further integrating its
reporting, it will benefit stakeholders by providing
a more complete picture of how it continues to create
and preserve long-term value.
THE a2 MILK COMPANY24
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Progress towards our goals
SDG 5: Gender equality
Target 5.5
SUSTAINABLE DEVELOPMENT GOALS
PEOPLE
Create a safe, diverse, inclusive and engaging place
for our people to thrive, support our farmers and
contribute to our communities.
SDG 8: Decent work and
economic growth
Target 8.2
ANNUAL REPORT 202325

Targets and commitments
<10
Safety TRIFR with continuous improvement
>80%
Engagement
Rated >4 out of 5
Diversity and inclusion
a2MC team members supporting our communities:
Row 1 L-R: China team supporting Operation Smile, Laptop
donations to KidsCan sponsored school in Mataura
Row 2 L-R: Auckland team members volunteering at KidsCan
warehouse, Melbourne team volunteering at Foodbank Victoria,
Boulder team volunteering at Boulder Shelter for Homeless
Row 3 L-R: Melbourne team volunteering for Landcare, Sydney
team volunteering for Foodbank NSW, China team supporting
Operation Smile
THE a2 MILK COMPANY26
PROGRESS TOWARDS OUR GOALS CONTINUED
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

KEY METRICS DATA (FY23)
1

GENDER (AS AT 30 JUNE 2023)COHORTMALE%FEMALE%
VARIANCE TO LAST YEAR
(% FEMALES)
Directors
2
7457%343%-7%
Executive Leadership Team
2
10770%330%5%
People Leaders
3
1186454%5446%13%
Remaining Team Members33115447%17753%-2%
Total46522849%23751%+2%
AGE (AS AT 30 JUNE 2023)NUMBER%

VARIANCE TO LAST YEAR (%)
Under 305612%0%
30 to 5031067%-1%
Over 509921%1%
Total465100%
TENURE (AS AT 30 JUNE 2023)NUMBER%

VARIANCE TO LAST YEAR (%)
0–2 Years21747%3%
2–5 Years19041%-3%
5+ Years5812%–
Total465100%
1 All values subject to rounding
2 David Bortolussi has been included in both the Director and ELT calculations
3 a2MC defines People Leaders as any Team Member with direct reports
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 in the industry 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 FY23, the Company launched various initiatives to deliver
on its ambition and to achieve engaged and effective teams who
create long-term value for the Company and its shareholders.
FY23 progress
Health, safety and wellbeing
©All worksites continued to focus on managing critical risks and
promoting a safety culture through leadership and education
across all sites. Manufacturing teams continue to focus on
managing critical risks, including the use of external resources
where appropriate.
©Reported a Total Recordable Injury Frequency Rate (TRIFR)
of 6.1, which was an improvement on the prior year. This
included team members from all the Company’s sites (including
contractors).
©Continued to provide employee assistance programme
resources to team members across all geographies.
©Further developed health and safety reporting.
©Provided free access to all team members and their families to
resources and tools promoting mindfulness, meditation and
mental wellbeing.
©Conducted health and wellbeing expos across Australia and
New Zealand worksites and virtually.
Investment in leadership
©Relaunched a renewed set of our Company values and
standards of behaviour, reflecting the input and contributions
of over 200 team members across all worksites.
©Embedded the Lifestyles Inventory (LSI) tool to provide a
common leadership language and support the development of
leadership capability and effectiveness.
©Launched a Roles and Goals model for role clarity and a
quarterly focus on goal achievement and leadership behaviours.
©Continued to roll out the 'Thrive' constructive leadership
programme to senior leaders, to support the development of
leadership effectiveness and constructive ways of working.
©Delivered Situational Leadership training for leaders at all levels
to provide an integrated and practical approach to effective
leadership styles.
©Implemented 'Compass', a global Human Resources
Information System (HRIS) building on the Company’s ERP
platform.
ANNUAL REPORT 202327

Reward, recognition and training
©Continued to embed the Company’s global reward and
recognition platform 'LegenDairy' across all geographies. The
platform provides wellbeing and rewards, recognises tenure and
also provides an opportunity to celebrate the many examples
of individuals and teams who are going above and beyond in
delivering the Company’s strategy and living its values.
©Celebrated and recognised monthly nominees for
our a2 Legends awards.
©Celebrated annual a2 Legend of the Year award.
©Launched Udemy and Masterclass which provide
educational platforms to enhance and support online
learning and development.
©Implemented a Work from Anywhere policy to support all
team members in leveraging flexible work for up to two
weeks a year.
Recruitment
©Launched the Company’s corporate induction programme.
The purpose of the programme is to equip team members
with an understanding of the Company’s history, purpose,
vision, strategy, and values along with the experience of visiting
a farm, production site and retailers.
©Upgraded external website capability with Careers at a2,
showcasing Working at a2 and providing future team members
with an understanding of the Company’s purpose, vision,
strategy, values and benefits, as well as current role vacancies.
©Embedded talent acquisition partnership with an external
provider as an integrated talent function in the ANZ business.
©Updated internal systems, resulting in a centralised team
member information centre for the Company.
©Evolved the operating model and organisational design
to optimise delivery of our strategic objectives.
©Launched an online recruitment module at Mataura Valley Milk
to support a better candidate experience.
Supporting a diverse and inclusive workplace
©Introduced an additional five days of paid women’s health leave
for team members experiencing symptoms of endometriosis,
peri-menopause or menopause as well as those individuals
undertaking fertility treatments, including IVF. a2MC recognises
that there are days when these symptoms and treatments
interfere with an individual’s ability to work.
©Introduced an on-demand platform to support team members
managing childcare and tutoring in New Zealand and Australia.
Next steps
©Continue to roll out constructive leadership training programme
across the Company.
©Enhance current benefits to strengthen the Company’s value
proposition for a2MC team members and attract new talent.
©Implement refined Workplace Health and Safety
Management System.
©Implement ‘Thrive’ leadership programme with next
level leadership.
Xiao Li, Chief Executive Officer – Greater China, presenting Felix
Liu, Trade Marketing Director – China, with a2MC 2023 Legend
of the Year Award
THE a2 MILK COMPANY28
PROGRESS TOWARDS OUR GOALS CONTINUED
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Anti-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.
The Company is committed to high standards of responsible
conduct, social responsibility and sustainability in all areas of the
business, including operations and supply chain. The Company’s
commitment comes not just from an acknowledgement
that it is the right thing to do, but from a recognition that
the manner in which the Company and its partners manage
social, environmental and economic impacts is critical to long-
term success. The Company released its third Modern Slavery
Statement under the Modern Slavery Act in December 2022
which is available at www.thea2milkcompany.com/ESG-reporting.
FY23 progress
©Adopted an anti-modern slavery response protocol with a
focus on governance, risk mapping, supplier engagement and
grievance mechanisms and reporting.
©Adopted an anti-modern slavery remediation plan which sets
out the steps the Company is to take in the event it discovers
any modern slavery in its supply chain.
©Prepared an anti-modern slavery questionnaire and conducted
analysis of all suppliers to determine approach to roll out
questionnaire. The questionnaire will be rolled out progressively
initially to suppliers that are categorised as higher risk.
©Received signed ‘Pledge against modern slavery‘ from USA
farmers and seeking the same from Canadian farmers.
©Continued to conduct further work across the Company’s
supply chain, with a focus on modern slavery risks across both
the Company’s own supply chain and indirect operations.
©Continued to refine existing training programmes for all
employees and the Company’s on-farm suppliers.
Next steps
©Analyse modern slavery risks with key suppliers’ supply
chains and operations.
©Update agreements with farms providing raw A1 protein
free milk to include a commitment to operate slavery free.
©Continue roll out of modern slavery questionnaire
with suppliers.
Green Teams
The Company has Green Teams across each of its
offices and worksites which focus on improving the
sustainable practises of the offices and worksites.
Green Teams engage and educate the wider team in
sustainability initiatives. A 'People and Planet Legend'
award was established through the Company’s reward and
recognition platform, ‘LegenDairy’ to recognise achievements
in this space. A green office policy was also implemented by
the Green Teams, outlining the Company’s expectation of its
team members in respect to sustainable management of its
offices. Additional initiatives have included:
©Enhancing onsite recycling, including e-waste.
©Hosting clothing drops, clean ups, and lunch and learn
sessions.
©Exploring low impact alternatives such as trialling the use
of electric vehicles by the sales team. 
Reconciliation Action Plan
The Company recognises the importance of reconciliation
between First Nations peoples and non-indigenous peoples in
Australia and in FY23 formally commenced its reconciliation
journey by committing to the Reconciliation Action Plan (RAP)
framework established by Reconciliation Australia.
FY23 progress
©Published the Company’s ‘Reflect’ RAP.
©Partnered with Yarnnup, an Aboriginal advisory firm, and
commenced action towards the deliverables set out in the RAP.
Our Company artwork:
Respecting Together –
Elaine Chambers
ANNUAL REPORT 202329

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 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.
The a2 Milk Company
is supporting
communities to thrive
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 team members 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.
FY23 progress
$2.84m* in product and cash donations, including:
Volunteering support
In FY23, team members across various regions donated 334 hours
of time to different organisations. This included packing lunch
orders for KidsCan in New Zealand, packing and sorting food at
Foodbank in Australia, stocking supplies at the Boulder homeless
shelter and volunteering at Operation Smile in China.
Proactive support
©KidsCan (New Zealand)
©Foodbank School Breakfast Program (Australia)
©Feed the Children (USA)
©Operation Smile (China)
Event-based (or reactive) support
©KidsCan milk powder for cyclone and flood affected families
(New Zealand)
©Victorian floods farm support (Australia)
©GIVIT natural disaster relief cash donation (Australia)
Additional farming community specific programmes and
support
©a2™ Farm Sustainability Fund, in partnership with
Lincoln University
©Surfing for Farmers
©Sustainable Agriculture Landcare Grants
©Bale Up Conference support
* Donations figure includes the cost value of donated products and any
donation of cash (NZD) to communities, organisations, farmers and
individuals
THE a2 MILK COMPANY30
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Feed the Children (USA)
The Company partnered with Feed the Children in the USA to
help provide struggling families the supplies they need to send
their children back to school with confidence. The combined
health and economic crises of COVID-19 continue to cause
hardship. It is estimated that one in eight children in the
USA suffer from food insecurity. In June 2023, the Company
donated funds to provide food and supplies to school children,
giving children what they need to do and be their best.
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 FY23, support was
increased by providing a cash donation to support the Foodbank
School Breakfast Program. The Company also donated a2 Milk
®

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 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 over 40 schools in some of
Australia’s most remote Indigenous communities with access to
the School Breakfast Program.
$2.84m
*
in product and
cash donations to help
communities thrive
KidsCan (New Zealand)
The Company is proud to partner with KidsCan, providing New
Zealand children with the essentials to help them participate in
learning and have the opportunity for a better future. In addition
to the partnership, the Company donated milk powders to
KidsCan to support families affected by floods and cyclones.
KidsCan is New Zealand’s leading charity dedicated to helping
New Zealand children affected by poverty. The Child Poverty
Monitor in New Zealand shows 11.0% of all children living in
households in material hardship regularly go without essentials.
The Company is 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. In FY23, the support increased by
providing a donation of 7 laptops to a KidsCan sponsored school.
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.
ANNUAL REPORT 202331

PLANET
Protect our planet and cows, rethink packaging, achieve
net zero and become nature positive.
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, put in place
farm environmental plans, and invest in on-farm programmes
to support farmers in adopting practices that will contribute to
a sustainable future. These key initiatives support the natural
resources utilised by the business.
The impact of climate change and the reliance on natural
resources is driving significant structural transformation across the
dairy sector. The Company is actively looking at ways to reduce its
impact on climate and focus on sustainability more broadly.
SUSTAINABLE DEVELOPMENT GOALS
SDG 12: Responsible consumption
and production
Target 12.2
SDG 6: Clean water and sanitation
Target 6.3 and 6.4
SDG 2: Zero hunger
Target 2.4
SDG 13: Climate action
Target 13.2
SDG 15: Life on land
Target 15.3
THE a2 MILK COMPANY32
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SDG 6: Clean water and sanitation
Target 6.3 and 6.4
SDG 2: Zero hunger
Target 2.4
SDG 13: Climate action
Target 13.2
SDG 15: Life on land
Target 15.3
Targets and commitments
100%
of farms supplying raw A1 protein free milk to be certified under
an upgraded animal welfare programme by the end of CY23
100%
of certified farms supplying raw A1 protein free milk to have a
farm environmental plan in place by the end of CY23
45%
reduction in nitrogen loss to waterways per kilogram of milk solids
by 2030 for farms in the Canterbury region supplying milk for
a2MC's IMF production, from a FY18 base year
Continuing to review
additional water, waste and biodiversity targets as part of work on
nature risk and opportunity assessment
In FY23, the Company undertook its first two nature risk and
opportunity assessments covering two regions in New Zealand,
Canterbury and Southland, where the largest A1 protein free
milk pools supplying the Company are based. These regions also
represent a significant proportion of the Company’s supply chain
footprint, in particular from a production perspective. These two
pilot assessments confirmed the need for the Company, with its
strategic partners and suppliers, to focus on the key risks and
opportunities around:
©Water quality and use
©Soil quality
©Biodiversity
©Climate (as an element of nature)
The Company also has targets related to GHG emissions
reductions, farm environmental plans, animal welfare and
sustainable packaging which the Company believes will also
contribute to nature positive outcomes. In reviewing the
Company’s supplier targets, the Company has aligned to its IMF
manufacturer on nitrogen loss targets, an initial step towards
introducing nature related targets. The Company will consider
both the Science Based Target Network (SBTN) and the Science
Based Target Initiative for Forest, Land and Agriculture (SBTI FLAG)
when setting additional nature targets.
FY23 progress
©Conducted nature risk and opportunity pilot assessments where
the largest A1 protein free milk pools supplying the Company
are based.
©Established a partnership with Lincoln University in New
Zealand and commenced a research project aiming
to strengthen on-farm resilience and deliver positive
environmental outcomes.
©Commenced nature-related on-farm measurement pilot studies
connected to the a2™ Farm Sustainability Fund programme in
New Zealand.
Next steps
©Progress towards aligning to and reporting against the TNFD
framework.
©Extend the nature-related on-farm measurement pilot studies
connected to the a2™ Farm Sustainability Fund programme in
New Zealand.
©Extend nature-related targets for other key risks and
opportunities and for additional operating regions.
©Report against initial water use and quality targets.
Nature
The natural environment plays an essential role in the production of a2 Milk™ products. The reliance on natural
resources is driving an important shift in the way that companies manage and assess the impact they have on the
natural environment.
The dairy sector has an extraordinary opportunity to lower
its impact on the natural environment and the Company is
committed to delivering a positive contribution to biodiversity,
water and soils. These are critically important issues to the
Company, its strategic partners, as well as governments and
regulators in the countries in which it operates. The Company
believes this will also become increasingly important as consumers
become more attuned to nature impact.
The Company acknowledges the work being undertaken with
respect to the Taskforce on Nature-related Financial Disclosures
(TNFD) which is focused on developing a risk management and
disclosure framework for organisations to report and act on
evolving nature-related risks, with the aim of supporting a shift in
global financial flows away from nature-negative outcomes and
toward nature positive outcomes.
In a similar way to the Company voluntarily aligning its climate
disclosures to the Taskforce for Climate-related Financial
Disclosures (TCFD), which included reporting impacts for the first
time in FY22, the Company will aim to align to TNFD over time.
ANNUAL REPORT 202333

Climate
Climate change is driving significant structural transformation across all sectors. There will also be extraordinary
opportunity for the agricultural sector to realise increased productivity and efficiency through new technologies and
practices that lower emissions and environmental impact across the supply chains, including a particular focus on
on-farm emissions.
At the same time, external reporting expectations and
requirements are increasing. This is highlighted by the introduction
of New Zealand’s XRB climate standards, the International
Sustainability Standards Board (ISSB), and the Australian Treasury’s
climate related exposure draft released in June 2023. The
Company believes it is well placed to report in line with upcoming
standards and legislation.
Targets and commitments
Net zero GHG emissions
for Scope 1 and 2 by 2030
Net zero GHG emissions
for Scope 3 by 2040
30%
reduction of Scope 3 emissions, per kilogram of milk solids,
by 2030, from a FY21 base year
GHG emissions net zero roadmap and GHG inventory
In FY23, the Company conducted a ’boundary review’ to ensure
completeness and accuracy over data for its Scope 1, 2 and
3 emissions. Following this, the Company developed its GHG
emissions net zero roadmap which illustrates the Company’s net
zero targets and how it plans to meet these targets over time.
The Company has commenced the process to have these targets
certified by Science Based Targets.
The Company is targeting net zero for Scope 1 and 2 emissions
by 2030 and has a target to achieve net zero by 2040 for Scope
3. The Company has also introduced an interim Scope 3 target
to reduce Scope 3 GHG emissions by 30%, per kilogram of milk
solids, by 2030, from a FY21 base year.
In addition to the roadmap, the Company has published a GHG
inventory report which shows the breakdown of Scope 1, 2 and
3 emissions. The purpose of the inventory report is to provide
transparency on the Company’s emissions profile as well as
communicate any estimation uncertainties and assumptions.
The GHG inventory report is available on the Company’s website
at www.thea2milkcompany.com/ESG-reporting.
1 The GHG emissions (tCO
2
e) summarised in the Net Zero Roadmap is shown as one scenario for the purpose of depicting potential emissions in the future. It should
not be interpreted or extrapolated as a view of any potential scenario related to the Company's financial performance or outlook.
a2MC NET ZERO GOALS AND ROADMAP
1

aMC NET ZERO GOALS AND ROADMAP
Our Roadmap:
By 2030 we will
reach Net Zero
for Scope 1 and 2
By 2040 we will
reach Net Zero
for Scope 3
Scope 3
BAU
Our Goals:
 
Net Zero (Scope 1 and 2)
30% intensity reduction (Scope 3)

Net Zero
(Scope 1, 2 and 3)
Scope 1 and 2
Progressive Scope 1 and 2 emission reduction
THE a2 MILK COMPANY34
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KEY METRICS DATA (FY23)
1


GHG EMISSIONS
2
FY23FY22FY21
Total GHG Emissions
3
501,090516,345493,319
Scope 124,343 22,972 30,144
Scope 2 (Market based)
4
153– –
Scope 2 (Location based)
4
3,356 3,221 3,426
Scope 3 476,595490,153459,749
On-farm374,168403,429376,930
Scope 1 and 2 energy consumption (Gj)239,962––
1 Numbers are subject to rounding.
2 Greenhouse gas emissions, calculated as tonnes of carbon dioxide equivalent (tCO
2
e), have been estimated using considerations from The GHG
Protocol guidelines. Emissions and conversion factors were sourced from the National Greenhouse Accounts Factors for Australia, the UK DEFRA GHG
conversion factors and a range of other country specific sources. Where required, non direct emissions sources have been estimated using default and/
or extrapolated emissions intensity rates to provide a more complete picture of our Scope 1, 2 and 3 emissions. Total emissions calculations exclude
packaging. Refer to our GHG inventory report for details on estimations and assumptions used, which can be found at www.thea2milkcompany.com/
ESG-reporting.
3 Total GHG emissions for FY23 have been calculated using market based method for Scope 2.
4 A location-based method reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission
factor data). A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission factors from
contractual instruments, such as green energy contracts.
GHG emissions reduction programme
Scope 1 and 2 emissions account for approximately 5% of the
Company’s total GHG emissions profile, with Scope 3 emissions
comprising the other 95%. The largest proportion of Scope 3
emissions is from on-farm activities.
FY23 progress
SCOPE 1: GHG emissions from direct operations
©Progressed the installation of a high-pressure electrode
boiler at MVM to replace existing coal-fired thermal heat
generation system.
SCOPE 2: GHG emissions from electricity operations
©Progressed the full electrification of the MVM site which
includes converting MVM to 100% renewable energy once
the boiler conversion is completed later in CY23.
©Continued to utilise green energy contracts at all available sites.
©Once these activities are complete, approximately 96% of the
Company’s electricity usage will come from renewable or green
energy sources.
SCOPE 3: Indirect GHG emissions
©Commenced methane abatement feasibility study on-farm,
with additional feasibility studies to commence in FY24.
©Continued research to support regenerative farming practices
through the partnership with Lincoln University.
Methane inhibitors
In FY23, the Company continued its work on methane abatement.
The Company currently has a feasibility study underway and is
planning to commence additional studies in FY24. The feasibility
study has required collaboration between the Company, feed
supplement providers, farmers, and other service providers. The
study has presented various challenges throughout the period,
providing opportunities for the Company to work with farmers
to ensure they are appropriately prepared. This has included
investing in on-farm infrastructure, methane emission data
capture software, animal health monitoring collars and providing
additional support where needed.
The Company is working with farmers, processors and feed
suppliers to ensure that in the future supplements are easily
accessible and ensuring animal welfare, maintaining the premium
quality of products and reducing Scope 3 emissions.
ANNUAL REPORT 202335

Matura Valley Milk boiler upgrade
In March 2023, construction works for the MVM high-pressure
electrode boiler installation project commenced. The project
involves replacing the existing coal-fired boiler with a high-
pressure electrode boiler. The boiler will provide all the steam
needed for operations. Steam generation is an essential element
in milk products manufacturing, providing heat to enable the
drying of milk to powder. The coal-fired boiler contributed
to ~98% of a2MC's Scope 1 emissions in FY23. Once the
high-pressure electrode boiler is commissioned, the boiler and
MVM site will operate on 100% renewable energy, making it
highly efficient whilst emitting zero emissions and will be the
first of its kind in New Zealand. The Company is proud to have
invested approximately $16 million into the boiler and site
electrification project and is grateful to its fellow shareholder
China Animal Husbandry Group, and to the Energy Efficiency
and Conservation Authority for its $5 million co-investment in
the project under the New Zealand’s Government Investment in
Decarbonising Industry fund.
FY23 progress
Water usage and efficiency
©Water usage and efficiency have been a focus for both facilities
in the FY23 period. Whilst water usage is decreasing, it is
heavily affected by product mix and the Company may see
fluctuations in water usage, particularly at MVM.
Waste and waste diversion
©Both sites have continued to focus on reducing waste on
site, with new initiatives at MVM being introduced, such as
increased recycling of cardboard.
Energy consumption
©Both facilities have continued to use green energy contracts,
with Smeaton Grange producing energy through solar panels.
Smeaton Grange had an increase in energy usage due to a new
product mix, with expectations to see a further increase in kWh
from FY24, at MVM, when the electrode boiler is complete.
How The a2 Milk Company is helping to support the planet
OTHER ENVIRONMENT METRICSFY23FY22
Manufacturing Facilities
1

Total water usage ('000 litres)290,908331,288
Water efficiency (litres/litre of milk)1.72.0
Waste water diverted to beneficial land application (litres)2,780,010 2,902,950
Waste produced (tonnes)100 112
Waste diversion96.7%96.6%
Energy consumption (kWh)
2
16,700,00016,800,000
1 Manufacturing facilities include Smeaton Grange and MVM
2 Numbers have been rounded
THE a2 MILK COMPANY36
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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.
The work undertaken by the Company to better understand its
nature and climate risks and opportunities has highlighted the
need to take a holistic systems-based approach to regenerative
agriculture to be effective in driving towards nature positive
outcomes, including net zero targets.
Over the past several years, the Company has been working
towards its targets of having 100% of certified farms supplying
raw A1 protein free milk to having a farm environmental plan
in place and to be certified under an upgraded animal welfare
programme by the end of CY23. In addition to that, the Company
has developed programmes and services to engage with and
support farmers. This has included the development and support
of farmer grants programmes, on-farm measurement pilot
studies, research partnerships, methane inhibitor research, farmer
education programmes, and crisis support.
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
FY23 progress
©On target to have 100% of certified farms supplying A1 protein
free milk with farm environmental plans (including MVM) by
end of CY23.
Next steps
©Progress towards 100% of certified farms supplying A1 protein
free milk in New Zealand having a Fresh Water Farm Plan.
Animal welfare programme
Best practice standards for animal welfare on farms are central to
the responsible sourcing of raw A1 protein free milk.
The Company’s animal welfare programme meets globally
recognised frameworks for Animal Health and is evolving from the
Five Freedoms Model to the Five Domains Framework of animal
welfare.
a2MC’s approach to animal welfare is to drive improvement,
reduce risk and ensure farmers are welfare centric. This is achieved
through the combination of increased audits, wider audit scope,
milk monitoring, on-farm technology and training.
A number of extensions to the animal welfare programme were
developed in FY23, supporting farmers to establish systems for
continuous improvement in animal welfare and to further improve
programmes beyond the industry standard.
FY23 progress
©Continued roll-out of auditor and a2MC farm services team
training modules.
©Staged launch of upgraded animal welfare programme across
the Company’s regions.
©Successful roll out of updated audit scope and frequency.
©Redefined animal welfare programme with MVM ready to
launch.
©On target for 100% animal welfare certification by end
of CY23.
Next steps
©Progress towards global certification of the redefined
programme.
©Invest in education and value add initiatives for farmers.
ANNUAL REPORT 202337

Research studies, partnerships and measurement pilots
The Company is committed to supporting the dairy industry by
working with technology and solutions providers to tackle some
of the major issues in the industry.
As noted in the Climate section above, the Company has been
actively involved in methane inhibitor research. The Company
is also seeking to partner with research institutions on projects
that will advance science and technology solutions to contribute
to nature positive outcomes. Another of the major challenges in
agriculture where the Company is investing time and resources to
advance the accurate measurement of on-farm data.
FY23 progress
©Commenced methane inhibitor feasibility study in Victoria,
Australia.
©Commenced roll out of on-farm carbon audits for certified
farms.
©Completed pilot of farm environment plans in Australia, with
final tool available to farmers.
©Established a research partnership with Lincoln University and
commenced a research project aiming to enhance on-farm
resilience and deliver positive environmental outcomes.
Next steps
©Continue methane inhibitor feasibility study in Victoria,
Australia and commence additional feasibility studies.
©Continue measurement pilot studies in Australia and
New Zealand.
©Expand carbon audits to certified farms in North America.
©Continue research partnership and research project with Lincoln
University.
Farmer grants programmes
The Company has two established farmer grants programmes
operating in New Zealand and Australia – the a2™ Farm
Sustainability Fund and Sustainable Agriculture Landcare Grants.
These programmes offer financial awards to contracted A1 protein
free dairy farms to support projects that demonstrate an
integrated approach to a sustainable future.
The a2™ Farm Sustainability Fund is a collaboration between the
Company and Lincoln University, while the Sustainable Agriculture
Landcare Grants are a partnership with Landcare Australia,
both with a vision to protect, enhance or restore the natural
environment. Both programmes allow A1 protein free farms to
apply for grants to fund farming practices that align with the
Company’s sustainability objectives and one or more of its key
environmental improvement themes:
©Lowering greenhouse gas emissions
©Increasing on-farm carbon sequestration
©Improving farm system resilience
©Improving water quality and efficiency
©Enhancing on-farm biodiversity
©Animal wellbeing/health
©Managing and improving soil health
©Expanding blue/green infrastructure e.g. living things (soil/trees/
diverse pasture)
The programmes each have an investment committee with
independent representatives assisting in the evaluation and
awards process to farmers. The Company is grateful to Lincoln
University, Landcare Australia and the members of the investment
committees for their support of these programmes.
FY23 progress
Twenty-three awards totalling approximately $440K made under
the a2™ Farm Sustainability Fund in round 2 of the programme.
Eight awards totalling $250K made under the a2 Milk
®
Sustainable
Agriculture Landcare Grants in round six of the programme.
Next steps
©Continue to support the a2™ Farm Sustainability Fund and
Sustainable Agriculture Landcare Grants, with a focus on
sustainable farming practices.
©Establish farmer grant programme in the USA.
Lincoln University research partnership
The Company has established a partnership with Lincoln
University in New Zealand and commenced a research project
aiming to enhance on-farm resilience and deliver positive
environmental outcomes. Lincoln University is a specialist
agriculture-based tertiary institution and is committed to being
an exemplar of sustainable practices for the land-based sector
and ecosystems within it. The research project will be conducted
over a three-year period and is focused on GHG reduction, soil
health and water quality and the Company has engaged with
some of its supplier farms to participate in the research.
THE a2 MILK COMPANY38
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Sustainable packaging
Sustainable packaging is an important element in the Company’s ambition to protect the planet. It is also an
increasingly important area for many stakeholders, including consumers. The Company has a vision for as much of its
packaging as possible to be reusable, recyclable or compostable.
Targets and commitments
100%
reusable, recyclable, or compostable
packaging by 2025
70%
plastic packaging being recycled
or composted by 2025
50%
average recycled content included
in packaging by 2025
Phase out
of problematic and unnecessary single-use plastics
packaging by 2025
Achieving this will require a region-by-region and product-by-
product approach over time. In the latest year there was a focus
on products sold in Australia and New Zealand. Australia first
introduced the ‘2025 National Packaging Targets’ in 2018 and
updated them in 2020. The targets require a complete and
systemic change to the way Australia creates, collects and recovers
product packaging, and are an important step on the country’s
journey towards a circular economy for packaging.
The targets are overseen by the Australian Packaging Covenant
Organisation (APCO) which recently completed a review into the
2025 targets. The report written by APCO on the 2025 targets
noted that in order to meet the targets, collaboration across
the entire packaging system is needed and APCO is focusing its
resources on helping business bring the system together. In 2021,
a2MC became a signatory to the Covenant, strengthening the
Company’s long-term commitment to sustainable packaging. As
a signatory to the Covenant, a2MC is required to report on its
progress on an annual basis and to publish its action plan. This
covers all Australian sales which captures a significant proportion
of the Company’s product portfolio including IMF. During the year,
the Company extended and aligned its sustainable packaging
targets to APCO targets for products sold in all markets.
FY23 progress
©Fully recyclable packaging reduced from 90.2% in FY22 to
87.1% in FY23. This reduction was due to increased production
of UHT products. However, alternative packaging solutions
are being investigated through the long-term sustainable
packaging roadmap project to meet the ‘2025 National
Packaging Targets’.
©Developed the Company’s sustainable packaging roadmap.
©Submitted its second APCO Annual Report.
©Continued to investigate innovative packaging design for
sustainable solutions.
©Maintained an APCO rating of ‘Leading’.
Next steps
©Continue executing against the APCO action plan and make
progress against sustainable packaging targets.
©Explore options for inclusion of recycled content in milk
containers in Australia.
ANNUAL REPORT 202339

CONSUMERS
Bring the unique benefits of pure and natural a2 Milk™
to as many consumers as possible.
The Company’s trusted brand, its proprietary know-how and
A2 beta-casein expertise are valuable assets. The Company is
committed to ongoing investment to maintain and sustainably
grow these assets. In addition, the Company is focused on
responsibly marketing to consumers, delivering products that are
safe and of high quality.
The Company’s premium brand is strengthening in awareness,
penetration and loyalty to varying levels across its key markets. It
has increased its investment to grow and protect its brand and its
trade marks in all product categories and regions.
Through ongoing investment into scientific research and
development programmes, the Company is deepening its
expertise and advancing global understanding of the potential
health benefits of a2 Milk™. This science will underpin our future
product innovation, bringing the benefits of a2 Milk™ to a
broader audience of consumers.
There are three key focus areas to ensure the Company can
continue to deliver a targeted and differentiated brand proposition
and product portfolio:
©Build and strengthen brand adoration
©Create a distinctive product portfolio
©Invest in science, nutrition and beta-casein education
SUSTAINABLE DEVELOPMENT GOALS
SDG 3: Good health and wellbeing
Target 3.4
SDG 9: Industry, innovation and
infrastructure
Target 9.1
SDG 12: Responsible consumption
and production
Target 12.5
THE a2 MILK COMPANY40
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Build and strengthen brand adoration
The Company is committed to increasing investment levels to
improve brand equity in its key markets of China, ANZ and the
USA. The Company targets consumers who experience perceived
discomfort consuming products that contain A1 beta-casein protein
as well as progressive and health-conscious consumers who are
drawn to the differentiated and quality proposition that a2MC
delivers. When targeting consumers who would otherwise limit
their consumption of dairy products or avoid them altogether, the
Company’s marketing approach emphasises the potential health
and well-being benefits of its branded products. a2MC aims to
‘welcome these consumers back to milk’. Many consumers and
healthcare professionals report that people who experience digestive
issues drinking regular cows’ milk may experience benefits when
they switch to a2 Milk™.
Create a distinctive product portfolio
The Company is committed to innovation and continuing the
growth of its distinctive product portfolio. The Company’s product
portfolio is based around the benefits of products made from milk
that contains only A2-type protein and no A1. The product portfolio
can be divided into three core categories: liquid milk, infant milk
formula and macro milk. Each is positioned in the premium segment
of their respective categories. The Company’s approach to growing
and innovating its products varies within each market in which
it operates – adapting to local consumer preferences, category
nuances, channel dynamics, regulatory requirements and overall
category maturity.
Invest in science, nutrition and A2 protein science
education
As the pioneer of the A2 protein science, the Company is also the
custodian of the category.
The Company’s science priorities have always aligned with its
business strategy, and most importantly, its consumer needs.
Science, and the newly created nutrition function, are enablers to
support growth and delivery of key strategic priorities, and decrease
risk to the business. The Company is increasing its investment in
strengthening its global leadership in A1/A2 beta-casein research.
Key strategic priorities include:
©Continue to strengthen the evidence supporting digestive
and broader gut health benefits of a2 Milk™.
©Expand research to explore the immune and cognitive
benefits of a2 Milk™.
©Expand on research across different life-stages.
Overall, with research being undertaken in China, ANZ and
USA, and with the integration of the science and nutrition
functions, a2MC will expand its scientific credibility, knowledge
and understanding of the A1/A2 protein science, enabling it to
communicate the functional story in an innovative manner.
a2 Centre of Research Excellence™
To strengthen its category leadership the Company is investing
in the a2 Centre of Research Excellence™ (a2 Core™).
The objective of a2 Core™ is to centralise research expertise
and education that will:
©Build credibility for A1/A2 protein science.
©Promote academic partnerships and industry collaborations
to define and shape the A1/A2 protein category.
©House research summaries, scientific references and education
materials for consumers, academics and health care professionals.
FY23 progress and next steps
The Company increased marketing investment by 13.1% in FY23
primarily reflecting a significant step-up in China above-the-line
brand investment as well as below the line activation in line with
its refreshed growth strategy. The focus into FY24 will be on
awareness and penetration.
FY23 regional highlights
China
©Continued to reach new highs for brand health
metrics, particularly in awareness with improvements
in loyalty.
©Launched new brand positioning campaign ‘a2 Milk™
Base Matters’.
©Relaunched EL a2 Platinum
®
with a dedicated
integrated marketing campaign, which received a
Gold Award at the most recent China International
Advertising Festival.
©Disruptively launched new campaign heroing fresh
a2 Milk™ and a2 Milk™ powder.
©Increased investment in digital marketing, and
expanded into emerging online channels.
©Launched new products, fresh a2 Milk™ low fat 1L
and a2 Nutrition for Mothers™.
©Expanded offline distribution in lower tier cities –
a significant driver of offline growth.
©Continued to drive a2™ brand preference and
strengthened brand reputation through meaningful
community campaign (Project Smile).
ANNUAL REPORT 202341

ANZ
©Launched a2 Milk
®
Lactose Free in Australia in August 2022 and achieved the highest value launch in the
dairy milk category for CY22 with over 1 million units sold in the Australian market in the first nine months.
©a2 Milk
®
products achieved rankings in the top ten products in the dairy category in Grocery.
©Continued to invest in brand and in ensuring strong in-market presence.
©Brand health metrics improved during the period.
©Brand leadership maintained with increased loyalty and household penetration.
©Largest brand advertiser in the fresh milk category in Australia.
International
©Delivered material improvements in brand engagement,
following increased brand support to resellers, and direct
engagement with daigou.
©Executed the transition to refreshed a2 Platinum
®
IMF
product across all English label channels, with multi-
channel marketing campaigns including the in-person
relaunch in Australia and digital consumer focused
campaigns in China.
©Launched "Little Tummies Love" campaign for
a2 Platinum
®
.
©Launched upgraded Smart Nutrition
®
fortified children’s
milk and premium a2 Milk™ Powder Tub format.
©Continued to experience growth in both the CBEC and
offline to online (O2O) channels.
USA
©New marketing campaign launched to drive
increased awareness and new consumers to brand.
©Received FDA enforcement discretion approval to
import a2 Platinum
®
IMF product (0–12 months).
©Continued to expand product portfolio with the
launch of a2 Milk
®
Protein + Collagen nutritional
powders and a2 Milk
®
 Grassfed liquid milk.
THE a2 MILK COMPANY42
PROGRESS TOWARDS OUR GOALS CONTINUED
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

CHINA LABEL IMF MBS VALUE SHARE
4
CHINA LABEL IMF DOL VALUE SHARE
3
CHINA UNPROMPTED BRAND AWARENESS
2
FYFYFY
%
%
%
FYFYFY
%
%
%
FYFYFY
%
%
%
CONSUMERS
Brand HealthMarket ShareInnovationSupply Chain
China
unprompted
brand
awareness
AU household
penetration
USA
household
penetration
MBS share
DOL share
CBEC share
O2O + Daigou
share
AU fresh milk
share
USA premium
milk share
China other
dairy /
nutritionals
growth
Emerging
markets
development
USA sales
from new
products
ANZ sales
from new
products
Access
to ≥3 CL
registrations
CL inventory
management
EL inventory
management
Quality
outcomes
Supply chain
efficiency
Medium term measures of success
On track
MARKETING INVESTMENT INCREASED
1
FYFYFY









USA ANZ China
Work in progress
1 Marketing investment by region in NZD$ million.
2 a2MC internal data based on the Company’s brand health tracking. Average brand health metrics for each financial year based on 3 surveys in FY21 and FY22, and
2 surveys in FY23. Sample skews to a2MC target consumers ie higher income earners based in Provinces / cities that are the focus of sales and marketing activities.
3 Smart Path China IMF online market tracking: domestic online platform sales (by value).
4 Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value).
14.0%
% of sales
revenue
15.9%16.4%
ANNUAL REPORT 202343

Tr u e a2™
The Company takes great care in leveraging its
significant proprietary know-how and quality
processes to deliver products that are made with
A1 protein free milk, are of the highest quality and
are safe and compliant with market regulations and
requirements.
The four pillars of the True a2™ ecosystem cover the complete product
lifecycle. While the ‘Made with a2 Milk™’ and ‘Testing’ pillars are
fundamental to the composition and safety of our products, the
‘Independent product audits’ and ‘QR – verification system’ pillars
demonstrate a2MC’s commitment to reducing risks around food fraud.
The True a2™ ecosystem captures the Company’s proprietary know how
and processes to deliver superior quality and traceable products. This
ensures that a parent in China or a parent in Australia has the same,
highest quality powdered products from The a2 Milk Company.
Underlying the four pillars is the Company’s scientific heritage, clinical
research and understanding, the quality of its raw materials, its
knowledge of beta-casein protein testing from farm to shelf, and its
production and supply chain.
Made with a2 Milk™
At The a2 Milk Company, we go to great lengths to ensure that our
a2 Milk
™ is from cows that naturally produce milk with only the A2-type
protein and no A1. Our farmers hand select cows that naturally produce
only the A2-type protein by using a simple and non-invasive genetic test
that analyses a hair or tissue sample from each cow. These cows are then
milked separately and the milk is segregated throughout the supply chain.
Testing
Testing is an integral part of the product development process. At
multiple stages along the a2 Platinum
®
and Zhi Chu
®
product journeys,
ingredients, packaging components, and the final product are tested.
This ensures all our a2 Platinum
®
and Zhi Chu
®
products meet the highest
quality and safety standards.
Independent product audits
The a2 Milk Company employs an independent third-party to verify its
a2 Platinum
®
and Zhi Chu
®
products. Oritain is a food-traceability expert
and tests samples of a2 Platinum
®
and Zhi Chu
®
products it obtains
straight from retail shelves to confirm that these products are
True a2™.
This testing is scientific, ongoing and completely independent.
QR code – verification system
Each and every can of a2 Platinum
®
and Zhi Chu
®
products has a
unique QR code, allowing consumers to obtain further information
about the product.
Product quality and food safety
The Company is committed to the highest standards
of product quality and food safety, especially given
a large proportion of its products are consumed by
infants, young children and pregnant women. The
Company has significant proprietary knowledge and
quality processes to deliver A2 protein products that
achieve these standards, as well as compliance with
other market regulations and requirements.
This commitment is supported by:
©A comprehensive and unique focus on A2 beta-
casein protein segregation and testing from farm to
finished product.
©A priority focus on food safety and quality
management audited by accredited third-party
verification agencies for both self-owned and third-
party manufacturing sites.
©Long-term partnerships with high quality third-party
manufacturers who share the Company’s focus and
ambition on social responsibility.
©Relevant industry certifications including ISO 9001
(IMF), SQF and BRC (GFSI recognised certification) at
all processing facilities.
©Ongoing monitoring and compliance with relevant
regulatory requirements in the markets in which the
Company operates.
©Investment in people and training to ensure
capability to meet product quality and food safety
standards.
©True a2™ system for our powdered products for
those most vulnerable.
Responsible marketing
The Company’s approach to marketing infant nutrition
aligns to the core principle of supporting breastfeeding
as the primary form of infant nutrition. The Company
has developed a premium, high-quality range of infant
nutrition products to provide parents an alternative
when breastfeeding is not an option.
The Company complies with local best practice in each
of its active markets with respect to the marketing of
IMF products.
Marketing in Australia of Infant Formula
(MAIF) and Infant Nutrition Council
The Company is a signatory to the MAIF Agreement
and a member of the Infant Nutrition Council, which
represents the major manufacturers and marketers
of infant nutrition in Australia and New Zealand. All
members abide by a Code of Conduct including the
MAIF Agreement and The Infant Nutrition Council
Code of Practice for the Marketing of Infant Nutrition
in New Zealand.
THE a2 MILK COMPANY44
PROGRESS TOWARDS OUR GOALS CONTINUED
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

SHAREHOLDERS
Create long-term, enduring value for shareholders
and a trusted, transparent relationship.
Delivering on this objective requires strong financial
performance underpinned by long-term strategic decision
making and supported by a robust capital management
framework. A focus on execution and close management of
business risks and opportunities are also critical to delivering
successful outcomes. The Company’s strong balance
sheet provides it with the flexibility to respond to risks and
opportunities in pursuit of long-term value creation in line
with the Company’s strategic objectives.
The Company continues to strengthen its strategic
partnerships to support its next phase of growth. Its
strategic partners provide a range of benefits including
manufacturing expertise, market access support, distribution
and logistics services, and consumer and regulatory insights.
Maintaining transparency with the Company’s shareholders
ensures they are informed, and updated with the
Company’s strategic priorities and decision-making
processes. The Company continues to provide more
information through its approach to integrated reporting
and a variety of reporting frameworks including the Task
Force for Climate-related Financial Disclosures, Carbon
Disclosure Project, Global Reporting Initiative (GRI) and
alignment to New Zealand’s External Reporting Board (XRB)
and the International Sustainability Standards Board (ISSB).
In FY23 the Company made meaningful progress against
its medium-term financial ambitions, with strong growth
in revenue and earnings, and is well positioned for further
growth in a challenging market.
SDG 8: Decent work and economic growth
Target 8.2
SUSTAINABLE DEVELOPMENT GOALS
+10.1%
Revenue growth
13.8%
EBITDA margin
+28.7%
Earnings per share
(EPS) growth
+8.5%
Closing share price growth
46.7%
Return on capital
employed (ROCE)
1
$149m
Share buyback
completed
KEY METRICS DATA (FY23)
The Company's medium-term ambition is to grow sales from
$1.2 billion in FY21 to approximately $2 billion by FY26 or
later and to improve EBITDA margins in the 'teens'.
1. ROCE is defined as EBIT/Capital Employed. Capital Employed is calculated
as total assets less current liabilities and cash and term deposits.
ANNUAL REPORT 202345

Capital allocation to drive growth
The Company’s capital allocation framework prioritises investment
in growth initiatives ahead of returning capital to shareholders.
There are several critical elements to be considered as part of the
capital framework.
Firstly, the Company will invest to grow its core business in
existing markets, which includes investment to build its business
in China, supply chain transformation, and other infrastructure to
support growth.
The second element is investment to expand the boundaries of its
business. This includes:
©Expanding its presence in an existing market with a new
product, or entering a new market with an existing product.
©Assessing complementary mergers, acquisitions and joint
ventures to drive further growth in core markets.
Thirdly, the Company needs to ensure it maintains a level of
balance sheet strength and flexibility to support business growth
and risk management activities, and to manage in uncertain
operating environments.
Finally, the Company will make decisions to return excess capital
to shareholders where it is in shareholders’ long-term interests
to do so.
The Company’s capital allocation framework is continually
reviewed by management and the Board and is summarised
in the image below.
Capital management
On 20 March 2023, the Company announced the completion
of its on-market share buyback. Over the course of the buyback
programme, the Company acquired 21,680,314 shares,
representing 2.9% of issued capital. The average price for the
purchases was NZ$6.87 per share (excluding brokerage costs).
The acquired shares were cancelled and the total outstanding
ordinary shares in the Company following the completion of the
buyback is 721,976,214.
As a result of the buyback programme, the Company has further
reduced its Share Capital in its Consolidated statement of
financial position and reported Share Capital of NZ$100,000 for
FY23 (FY22: NZ$149,157,000).
CAPITAL ALLOCATION FRAMEWORK
Capital funding
Excess cash flow
Operating cash flow generation
Shareholder returns
Grow the core business in existing
markets
—Invest in building core business
—Transform supply chain
—Enable investment in systems,
infrastructure, quality, safety and
expertise
—Organic growth – existing and new
products/new retail channels
—Assess M&A opportunities to support
core business growth and supply
chain evolution
Expand the boundaries
—Adjacent new product categories in
existing markets
—Geographic expansion of existing
products into new markets
—Assess M&A opportunities to
expand boundaries
Balance sheet strength and flexibility
—Capacity to support business growth
and risk management initiatives
—Maintain a conservative cash reserve to
manage in an uncertain environment
THE a2 MILK COMPANY46
PROGRESS TOWARDS OUR GOALS CONTINUED
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Strategic partnerships and supply chain
investments
The Company has built its foundations with a number of key
strategic partnerships.
Each partner brings different strengths that enable the
Company to execute against its strategic objectives. In particular,
its strategic partnerships with China National Agriculture
Development Group, China Animal Husbandry Group and China
State Farm Agribusiness provide invaluable insights and assistance
in understanding the consumer and regulatory environment in
China. a2MC also has supply and other relationships with Synlait,
MVM and Fonterra.
China National Agriculture Development
Group Co., Ltd.
China National Agriculture Development Group Co., Ltd.
(CNADC) is a leading State-Owned Enterprise (SOE) and offers
comprehensive agricultural services in mainland China. CNADC is
responsible for meeting China’s agricultural needs with 17 wholly-
owned or share-controlled subsidiaries, and three publicly listed
companies. CNADC’s knowledge of the Chinese market and its
ownership of China State Farm Agribusiness and China Animal
Husbandry Group positions it as a strong partner for a2MC for
the long-term.
China State Farm Agribusiness
China State Farm Agribusiness Holding Shanghai Co., Ltd (CSFA)
is an SOE and became the Company’s exclusive logistics and
distribution partner for IMF products in China in 2013. CSFA is
the exclusive import agent for the Company’s China label IMF
products with 120 active IMF distributors and approximately
110 UHT and milk powder distributors throughout the country.
The Company renewed its agreement with CSFA for a term of
five years from 1 October 2022 and entered into a longer term
strategic co-operation agreement. CSFA’s China expertise is of
significant value to a2MC in managing its operations effectively.
China Animal Husbandry Group
China Animal Husbandry Group (CAHG) is an SOE and became a
strategic partner when the Company purchased 75% of MVM in
2021. CAHG holds 25% of MVM and is also owned by CNADC.
The partnership with CAHG provides the opportunity to build and
enhance the Company’s relationships with key partners in China.
Synlait
Synlait Milk Limited (Synlait) has produced a2MC’s IMF products
since 2012 and sources its milk from the Canterbury Plains and
Waikato regions in New Zealand. a2MC and Synlait renewed their
agreement in 2019. The agreement outlined a two-year extension
to the original agreement providing for a rolling three-year term
from 1 August 2022 (i.e. an evergreen agreement subject to
termination by either party on three years notice). In addition
to its supply agreement, a2MC holds a 19.8% equity interest in
Synlait, making it the second-largest shareholder. Synlait’s largest
shareholder is Bright Dairy, a multinational food and beverages
manufacturing company headquartered in China. Bright has a
39.0% interest in Synlait and is its controlling shareholder.
Mataura Valley Milk
Mataura Valley Milk (MVM) is a purpose-built nutritionals facility
and sources milk from Southland in New Zealand. a2MC acquired
a 75% interest in MVM in July 2021. The acquisition provides
a2MC with a unique opportunity to insource certain volumes
from Synlait, to prioritise innovation of an owned facility, achieve
additional China label registrations over time and capture
vertical manufacturing margins. FY23 was the Company’s first
full year with its 75% interest in MVM. In FY23, the Company
has fully internalised whole milk and skim milk powder products
through MVM.
Fonterra
In 2018, the Company announced arrangements with Fonterra
Co-operative Group Limited that include an exclusive licensing
agreement for the production, distribution, sale, and marketing of
a2 Milk™ branded fresh milk in the New Zealand market.
ANNUAL REPORT 202347

Environmental Social & Governance Reporting
With the adoption of the ISSB standards through both New Zealand’s External Reporting Board (XRB) and the
Australian Treasury's climate-related disclosure requirements, the Company acknowledges the importance of
Environmental, Social and Governance (ESG) reporting.
The Company reports against the TCFD framework and reports
with reference to ‘Integrated Reporting’ principles. In addition
to this, the Company has considered the GRI universal standards
and undertook an ISSB readiness assessment in FY23. Based on
this work, the Company believes it is prepared to align to the
standards when released at the end of the financial year. An
index for each of the frameworks the Company has aligned to
is available on its website in the ESG reporting library at www.
thea2milkcompany.com/ESG-reporting.
Taskforce on Nature-related Financial Disclosures
In March 2023, the Taskforce on Nature-related Financial
Disclosures (TNFD) released its fourth and final beta framework
with plans to publish final recommendations in September 2023.
Given the importance of nature to its business model and
activities, the Company conducted two nature-based risk and
opportunity assessments on areas of significant geographical
footprint in FY23. With the TNFD framework to be released
in FY24, the Company is preparing to report in line with the
requirements and recommendations of the framework and
expects to increase its transparency and accountability in relation
to nature related risks and opportunities moving forward.
Task Force on Climate-related Financial Disclosures
The Company undertook its second climate scenario analysis in
FY22. Despite the increased reporting done by the Company
throughout the year, it decided to not conduct a third analysis
as there were no material changes to the business during the
FY23 period. The Company has remained focused on its strategic
responses to the risks identified in FY22, with the release of its net
zero roadmap and its focus on consumer demands. The Company
will conduct a refreshed analysis in FY24 to comply with the
upcoming ISSB and XRB standards and ensure it is aligned with
the latest sustainability requirements.
New Zealand’s External Reporting Board
In December 2022, New Zealand’s External Reporting Board (XRB)
announced the publication of the climate-related disclosures. The
XRB Climate Standards considers both the TCFD framework and
the ISSB standards. Given the work done to adhere to the ISSB
standards, the Company is prepared to report against XRB when
required in FY24.
Australian Treasury
In June 2023, the Australian Government released a consultation
paper for the proposed climate-related disclosure requirements.
The standards are an interpretation of the ISSB standards that
were finalised in June 2023. Given the work done to adhere to
the ISSB standards, the Company is prepared to report against
Treasury's climate-related disclosures when required in FY25.
International Sustainability Standards Board
In June 2023, the International Sustainability Standards Board
(ISSB) released the first universal ESG related standards, IFRS
1 (general sustainability standards) and IFRS 2 (climate related
standards), which aim to promote transparency and consistency
in sustainability reporting. To further strengthen these standards,
the ISSB incorporated several other sustainability frameworks,
including the Taskforce on Climate-related Financial Disclosures
(TCFD), Value Reporting Framework (VRF) (including Integrated
Reporting), Sustainability Accounting Standards Boards (SASB)
and reference to the Global Reporting Initiative (GRI).
Sustainability Accounting Standards Board (SASB)
SASB aims to identify the sustainability-related risks and
opportunities that are material to understanding how an
organisation creates value. As a part of the ISSB readiness
assessment, the Company considered the SASB, Food and
Beverage – Meat, Poultry and Dairy standards when disclosing
ESG metrics.
Global Reporting Initiative (GRI)
In 2023, the Company aligned to the GRI universal standards.
The GRI is an independent international standard that aims to
standardise comparable, and consistent ESG information.
THE a2 MILK COMPANY48
PROGRESS TOWARDS OUR GOALS CONTINUED
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Carbon Disclosure Project
The Company completed its fourth submission of the Carbon
Disclosure Project (CDP) Climate Change questionnaire. The
questionnaire measures and outlines the risks and opportunities the
business faces with regards to climate change. The questionnaire
is scored by CDP and then released for public review following
the rating. This provides transparency to shareholders on
climate change impacts and how the Company is navigating
these challenges. The rating also provides shareholders with a
comparison to other corporates as it relates to its approach to
climate change. The Company submitted the next iteration of
the survey in July 2023, and is considering whether this will be its
final submission given the expanded climate reporting that will be
required in FY24 and FY25.
Australian Packaging Covenant Organisation
In FY23, the Company submitted its second Australian Packaging
Covenant Organisation (APCO) Annual Report (Page 39 of this
Annual Report) and received a 'leading' rating.
Anti-Modern Slavery
In FY23, the Company released its third Modern Slavery Statement
under the Modern Slavery Act (page 29 of this Annual Report).
Reconciliation Action Plan
The Company formally commenced its reconciliation journey by
committing to the Reconciliation Action Plan (RAP) framework
established by Reconciliation Australia. In April 2023, the
Company received formal endorsement for its first ‘Reflect’ RAP.
Indicative external reporting pathway
FY23
XRB New Zealand Climate
Standards 1 & 3
FY24
XRB reporting
FY25
Treasury/ISSB reporting
FY26+
IFRS S1 & S2
©Align to TCFD
©Align to SASB
©Align to GRI
©External gap assessment
against XRB and ISSB
©Obtain limited assurance
over selected ESG
disclosures
©Align to XRB
©Continue limited
assurance procedures
over selected ESG
disclosures
©Continue to build
upon nature risk
and opportunity
assessments in
preparation for TNFD
alignment
©Align to Australian
Treasury's climate-related
disclosure requirements and
ISSB S1/S2
©Obtain reasonable level of
assurance over Scope 1 and
2 emissions
©Continue limited assurance
procedures over selected
ESG and climate disclosures
©Continue aligning to TNFD
©Align to XRB, ISSB and
Australian Treasury's
climate-related disclosure
requirements
©Align to TNFD
©Obtain reasonable level of
assurance over Scope 1 and
2 emissions
©Continue limited
assurance procedures
over selected ESG metrics,
climate disclosures and
transition plans
ANNUAL REPORT 202349