Synlait Publishes Full Year 2023 Results

Full Year Results24 September 2023SMLConsumer Staples

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FULL YEAR
RESULTS
INVESTOR
PRESENTATION
For the 12 months ended
31 July 2023

KEY TAKEAWAYS FROM TODAY
FY 23
Extremely challenging financial year, with a poor financial result delivered.
Joyhana (UHT cream)
launched, commercial
sales underway.
State Administration for
Market Regulation (SAMR)
re-registration achieved.
*TRIFR reduced >30%
since Synlait Safe launch in
November 2022.
ELT renewal.
STRATEGY REFRESH COMPLETED
Creation of a more focused Synlait.
* TRIFR is Total Recordable Injury Frequency Rate, reduced to 10.6 at the end of FY 23.
PAGE 2FULL YEAR RESULTS INVESTOR PRESENTATION 2023

FINANCIAL
PERFORMANCE
Robert Stowell
Chief Financial Officer
Align Farms Ltd – Emilius, Carew, Canterbury.FULL YEAR RESULTS INVESTOR PRESENTATION 2023

RESULTS AT A GLANCE
3%
TOTAL GROUP REVENUE
$
1.60B
32%
CAPITAL EXPENDITURE
$
6 5 .1M
21%
NET DEBT
$
413.5M
$2.8M
TOTAL GROUP GROSS PROFIT
$
144.0M
83%
OPERATING CASHFLOW
$
39.0M
$42.8M
TOTAL GROUP NPAT
(
$
4.3M)
$33.8M
ADJUSTED TOTAL GROUP NPAT
1
$
2.5M
$40.9M
TOTAL GROUP EBITDA
$
90.7M
$27.4M
ADJUSTED TOTAL GROUP EBITDA
1
$
95.6M
11%
TOTAL AVERAGE MILK PRICE
$
8.49kgMS
12%
TOTAL BASE MILK PRICE
$
8.22kgMS
All comparisons are to FY 22 and include the results of Dairyworks which has been treated as a discontinued operation.
1 Refer to slide 5 for a reconciliation of adjusted NPAT and EBITDA.
PAGE 4FULL YEAR RESULTS INVESTOR PRESENTATION 2023

SYNLAIT’S FY 23 RESULT
Decreased Advanced Nutrition margin, significant ERP implementation costs, high inflationary
pressures, and increased interest costs significantly impacted financial performance in FY 23.
Ingredients
• Overall margin ($2.9m) unfavourable to FY 22.
• Volume impact: ($10.3m) adverse. Sales volumes
23,625 MT (18%) lower due to FY 22 benefiting from
high carry over of ingredients from FY 21 and 38%
higher Advanced Nutrition base powder production
displacing ingredient production and sales.
• Margin impact: $7.4m favourable driven by SMP/AMF
lead bucket performance, offset by a more normal
level of FX performance and higher manufacturing
overheads.
Advanced Nutrition
• Overall margin ($16.8m) adverse to FY 22.
• Volume impact: ($3.4m) adverse. Volumes 1,535 MT
(5%) lower than FY 22 because of reductions and
deferrals in demand and SAMR re-registration delays.
• Margin impact: ($13.4m) adverse. Driven by timing
impact of lag pricing mechanisms, a more normal
level of FX performance compared to FY 22, and
significantly higher overhead costs. Impact was offset
by higher base powder manufacture and continued
strong lactoferrin pricing.
Consumer (Beverages & Cream and Dairyworks)
• Overall margin $7.6m favourable to FY 22, of which
$4.3m related to Beverages & Cream and $3.3m
related to Dairyworks.
• Volume impact: ($1.0m) adverse as Dairyworks sold
less butter.
• Margin impact: $8.6m favourable as beverages
benefited from pricing lag and lower overhead costs.
Dairyworks benefited from the closure of the Temuka
plant and first full year of new cool store operations.
Milk trading and other
• $11.1m favourable to FY 22 due to raw milk and cream
sales to enable alignment of product mix to SMP/AMF
lead bucket, impact of Synlait Farms, Foodservice
and other eliminations.
SG&A expenses
• $21.0m increase in adjusted SG&A costs with drivers
being employee costs, consultancy & legal, travel,
and general inflation.
Recurring ERP costs
• Annual recurring ERP costs (including depreciation)
were $10.6m.
Financing costs
• $12.8m increase in adjusted financing costs due
primarily to rising interest rates.
Adjusted NPAT bridge ($ millions)
FY 22
adjusted
NPAT
FY 23
adjusted
NPAT
Ingredients
margin
Advanced
Nutrition
margin
Consumer
margin
Milk trading &
other
Adjusted
SG&A costs
Recurring

ERP costs
Adjusted
financing
costs
Adjusted
income taxes
(2.9)
36.3
(16.8)
7. 6
11.1
(10.6)
(12.8)
(21.0)
11.6
2.5
Reconciliation of reported to adjusted
NPAT and EBITDA ($ millions)
FY 23FY 22²
Reported NPAT(4.3)38.5
Items affecting comparability¹:
ERP implementation costs     6.83.3
Contract dispute and transaction costs1.9-
Gain on sale of New Zealand Units (NZUs)    (1.8)-
Gain on sale and lease back-(11.9)
Interest costs attributable to ERP implementation4.5-
Impairment of Temuka cheese plant (Dairyworks)-12.2
Legal settlement (Dairyworks)(2.0)-
Tax impact of above items       (2.6)(5.8)
Total NPAT adjustment6.8(2.2)
Adjusted NPAT2.536.3
Total EBITDA adjustment4.9(8.6)
Reported EBITDA90.7   131.6
Adjusted EBITDA95.6123.0
1 These items have been excluded as they do not reflect future operating
expenses or revenue and will be inconsistent in amounts and frequency
making it difficult to contribute to a meaningful evaluation of our
operating performance.
² FY 22 adjusted NPAT has been restated to include ERP implementation
costs for consistency with FY 23 adjustments This has resulted in FY 22
adjusted NPAT increasing to $36.3m from $34.0m.
PAGE 5FULL YEAR RESULTS INVESTOR PRESENTATION 2023

REVENUE AND SALES VOLUMES
Total revenue attributable to business units was down 8% ($117m) driven by lower ingredient sales volumes
(down 18%) due to higher FY 21 carry-over inventory in FY 22, lower Global Dairy Trade (GDT) prices, and
higher production of Advanced Nutrition base powders which displaced production of ingredient powders.
Ingredients
Revenue down 20% (FY 23: $661m, FY 22: $826m)
driven by:
• Reduction in sales volumes of 18% (FY 23: 108,856
MT, FY 22: 132,481 MT) due to FY 22 benefiting from
high carry over inventory (~10,000 MT) from FY 21 as a
result of COVID-19 related delays.
• Increased Advanced Nutrition base powder
production displacing production of ingredient
powders, operational stability challenges, and higher
milk sales at our Pokeno site to accommodate the
processing upgrade project.
• Sales volumes mainly comprised of SMP/AMF
(FY 23: 81% vs. FY 22: 61%) which was the lead bucket
for most of the year. This significantly outperformed
WMP and reduced the impact of lower sales volumes.
• Steadily declining GDT prices over the year due to
reducing Chinese demand.
Advanced Nutrition
Revenue up 6% (FY 23: $440m, FY 22: $416m) driven by:
• Overall sales volumes lower by 5% (1,535 MT) due to
a combination of reduced and deferred demand.
• Updated pricing which reflects recent significant
increases in raw materials and packaging prices.
• Lactoferrin pricing remained strong in the period,
however external sales were down 7 MT (FY 23:
30 MT, FY 22: 37 MT) as we consumed product into
base powder production.
Consumer
Sales revenue increase of 6% (FY 23: $329m,
FY 22: $309m) driven by:
• Impact of lag pricing and higher cheese prices
passed through to customers compared to FY 22.
• Offset by 5% lower sales volumes (FY 23: 56,999
MT, FY 22: 59,786 MT) due to lower butter sales.
Foodservice
First sales of 757 MT ($4m) made in China for the
JOYHANA branded UHT cream. Market feedback
is positive with significant potential for higher sales
volumes moving into FY 24.
Other amounts not allocated to core business units
Sales of raw milk and cream increased significantly on
prior year (FY 23: $141m, FY 22: $91m)
• This is due to maximising the SMP/AMF bucket
over WMP and production of infant base powder
being pushed into the high milk flow months due
to raw material shortages and operational stability
challenges in the first half of the year.
Sales volume (MT)
Sales revenue ($ millions)
Total*
Total*
Advanced
Nutrition
Advanced
Nutrition
Ingredients
Ingredients
Foodservice
Foodservice
Consumer**
Consumer**
* Excludes amounts not attributable to business units.
** Dairyworks sales revenues were $283m (FY 22: $264m), with sales volumes of 24,781 MT
(FY 22: 27,814 MT).
1,307
1,551
1,434
218,759
225,773
198,583
635
826
661
125,914
132,481
108,856
406
416
440
34,362
33,506
31,971
266
309
329
58,483
59,786
56,999
-
-
4
-
-
757
FY 21
FY 22
FY 23
FY 21
FY 22
FY 23
PAGE 6FULL YEAR RESULTS INVESTOR PRESENTATION 2023

PRODUCTION AND CLOSING
INVENTORY VOLUMES
Production volumes decreased 2% (3,804 MT) primarily due to reductions in ingredient volumes because of
higher Advanced Nutrition base powder production, partially offset by higher production of UHT whipping
cream and milk products. Closing finished goods and work-in-process inventories were up 31% due mainly
to a build in Advanced Nutrition base powders.
Ingredients
Production volumes down 12% (FY 23: 108,010 MT,
FY 22: 122,330 MT) driven by:
• Advanced Nutrition base powder production up 38%
displacing ingredients production.
• Reduction in milk processed of 4% (FY 23: 76.0m
kgMS, FY 22: 78.9m kgMS) due to optimisation of the
SMP/AMF lead bucket.
• After record-high ingredient inventory levels at H1 23
due to ERP implementation issues, closing inventory
finished down 35% year on year (FY 23: 5,531 MT,
FY 22: 8,457 MT).
Advanced Nutrition
Production volumes up 26% (FY 23: 39,159 MT,
FY 22: 31,016 MT) driven by:
• Base powder production up 38% driven by timing of
new SAMR registration and to enable maximisation of
FY 24 milk processing in peak milk months.
• Lactoferrin production consistent with prior year.
The higher production and demand reductions in H2 have
resulted in higher closing inventory, up 82% (FY 23: 17,349
MT, FY 22: 9,519 MT).
Consumer
Production volumes consistent with prior year
(FY 23: 53,753 MT, FY 22: 52,894 MT):
• Small increase in volume due to commencement of
contract manufacture of ready-to-drink (RTD) milk
beverages.
• Dairyworks volumes were largely consistent compared
to the prior year (FY 23: 21,195 MT, FY 22: 21,274 MT).
Foodservice
1,514 MT of UHT whipping cream produced for China
market, with 773 MT on hand on 31 July 2023.
Raw materials inventory
While closing volumes decreased only slightly at 3%
(FY 23: 17,240 MT, FY 22: 17,738 MT), total value was up
$20.2m (FY 23: $116.0m, FY 22: $95.8m) due to a change
in inventory mix to accommodate higher Advanced
Nutrition production and new products launching in early
FY 24. Also impacted by:
• Higher costs driven by high inflation.
• Higher balance of bulk cheeses at Dairyworks due to
earlier phasing of maturation cheese replenishment.
Finished goods and work-in-process
closing inventory volume (MT)
Production volume (MT)
Total*
Total*
Advanced
Nutrition
Advanced
Nutrition
Ingredients
Ingredients
Foodservice
Foodservice
Consumer**
Consumer**
* Excludes amounts not attributable to business units.
** Dairyworks production volume was 21,195 MT (FY 22: 21,274 MT), with closing finished goods and
work-in-process inventory of 1,382 MT (FY 22: 995 MT).
215,049
206,240
202,436
32,836
19,399
25,499
138,971
122,330
108,010
18,101
8,457
5,531
20,990
31,016
39,159
12,515
9,519
17,349
55,088
52,894
53,753
2,220
1,423
1,846
-
-
1,514
-
-
773
FY 21
FY 22
FY 23
FY 21
FY 22
FY 23
PAGE 7FULL YEAR RESULTS INVESTOR PRESENTATION 2023

GROSS MARGIN PERFORMANCE
Group gross profit was largely consistent with the prior year (FY 23: $144.0m, FY 22: $146.8m). Overall
performance fell short of expectations due to lower than forecast Advanced Nutrition margin and significant
cost pressures due to operational stability challenges and inflation.
Gross profit ($/MT)
Gross profit ($ millions)
Total*
Total*
Advanced
Nutrition**
Advanced
Nutrition**
Ingredients
Ingredients
Foodservice
Foodservice
Consumer***
Consumer***
* Excludes amounts not attributable to business units
** Restated to exclude costs relating to raw milk and cream sales
*** Dairyworks FY 23 gross profit was $26.1m (FY 22: $22.8m) and gross profit per MT was $1,053/MT
(FY 22: $818/MT)
70.0
152.6
140.4
320
676
707
14.5
57.5
54.6
115
434
501
45.0
73.8
57.0
1,310
2,203
1,782
10.5
21.3
29.0
179
357
508
-
-
(0.2)
-
-
(313)
FY 21
FY 22
FY 23
FY 21
FY 22
FY 23
Ingredients
5% decrease in gross profit performance
(FY 23: $54.6m, FY 22: $57.5m) driven by:
• Reduction in sales volumes due to 38% higher
Advanced Nutrition base powder production
displacing ingredient powders production.
• Gross margin on a per MT basis increased 16%
(FY 23: $501/MT, FY 22: $434/MT). This is due to
excellent alignment to the SMP/AMF lead bucket
which prevailed for most of the year.
Advanced Nutrition
Decrease in gross margin of 23% (FY 23: $57.0m,
FY 22: $73.8m) driven by:
• Lower sales volumes of infant formula, the impact of
which was offset by higher production of infant base
powders driving higher recoveries of overheads.
• Gross margin per MT decreased 19% (FY 23: $1,782/
MT, FY 22: $2,203/MT). This is due to:
• Lag pricing mechanisms which are
unfavourable in periods of high inflation.
• Higher write-downs of inventories and other
financial impacts due to operational stability
challenges which cannot be passed onto the
customers.
Consumer
Gross profit increase of $7.6m (FY 23: $29.0m,
FY 22: $21.3m) driven by:
• Benefit from large pricing lag and
lower manufacturing overhead costs.
• No further sales of high-cost cheeses
manufactured at Temuka, the closure of which
reduced operational costs. Dairyworks cool
store commissioned in FY 22 also contributed
to savings in storage and handling costs.
Foodservice
Gross profit loss of ($0.2m) as initial sales made into
China. Margin attainment is expected to improve as
volumes increase. Current year margin has been
impacted by write-offs during initial product runs.
Other margin
$3.7m difference between Group gross profit of
$144.0m and business unit gross profit of $140.4m
relates primarily to the impact of raw milk and
cream sales, Synlait farms, and other recoveries.
PAGE 8FULL YEAR RESULTS INVESTOR PRESENTATION 2023

SG&A & MANUFACTURING COSTS
Increase driven by higher people costs, ERP and other costs, and general cost pressures due to high
inflation. In summary, SG&A and manufacturing costs have increased $37.0m and $34.7m, respectively
compared to FY 22.
SG&A and ERP costs
Increases compared to FY 22 include:
• Employee costs up $9.8m due to inflationary wage
increases, additional FTEs to support anticipated
demand increases and ERP implementation, ELT
renewal, less capitalised labour, and higher rates
of illness (COVID-19) covered by overtime and
temporary staff.
• Consultancy and legal up $4.2m due to a significant
contract dispute, capital structure review and bank
refinancing, and divestment of Dairyworks.
• Distribution costs up $1.9m, driven by high
demurrage costs due to ERP disruption in H1 23.
• Travel up $1.6m as our sales teams returned to key
and developing markets after COVID-19 and as we
commissioned our Pokeno site in preparation for
the launch of new Advanced Nutrition products.
• Depreciation up $1.4m due to new Auckland
warehouse and equipment leases.
• Increase in other of $2.3m is due to impact of
inflation and immaterial line-item reclassifications.
• Recurring ERP costs of $10.6m include depreciation
($6.1m) and ongoing service/support costs ($4.5m).
• Additional ERP cost ($3.5m) incurred during
stabilisation phases.
• Dairyworks up $1.7m due to across-the-board
impact of inflation on wages and operational costs.
SG&A and ERP cost movement ($ millions)
Manufacturing cost movement ($ millions)
$37.0m total increase in SG&A and ERP costs
$34.7m total increase in manufacturing overhead costs
Manufacturing costs
Increases compared to FY 22 include:
• Employee costs (including independent contractors)
up $15.9m, driven by:
• Significant increase in staff in anticipation of
higher Advanced Nutrition demand and to mitigate
impacts of ERP challenges.
• Establishment of contingent workforce to mitigate
risk of downtime due to staff shortages.
• Impacts of higher-than-normal wage increases due
to inflation, higher overtime due to a tight labour
market, and less capitalised labour as major capital
projects wound up.
• Freight up $4.5m due to higher fuel costs and
shipping rates.
• Milk supply costs up $3.8m due to higher milk
transport costs and incentives.
• Energy costs up $3.6m due to higher energy prices.
• Repairs and maintenance up $3.5m due to plant
outages, higher preventative maintenance and inflation.
• Consumables up $1.9m due to increased testing
requirements and inflation.
• Farms up $1.3m due to first full year of operations.
• Dairyworks savings of $1.5m reflect idling of Temuka
cheese plant and first full year of cool store operations.
FY 22
FY 22
FY 23
FY 23
Employees &
contractors
Employees &
contractors
Consultancy &
legal
Freight
Distribution
Milk supply
Travel
Energy
Depreciation
Repairs &
maintenance
Other/inflation
Consumables
Recurring

ERP costs
Other/inflation
ERP
stabilisation
Farms
Dairyworks
Dairyworks
9.8
15.9
92.3
269.8
4.2
4.5
1.9
3.8
1.6
3.6
1.4
3.5
10.6
1.7
3.5
1.3
2.3
1.9
1.7
(1.5)
129.3
304.5
PAGE 9FULL YEAR RESULTS INVESTOR PRESENTATION 2023

CASH FLOW AND NET DEBT
Net debt ended 21% ($71.6m) higher than FY 22 due to lower operating cash flows, significantly higher
interest costs, and Advanced Nutrition base powder build.
FY 21FY 23
136.7
103.8
18.4
232.9
39.0
333.6
527.0
479.4
341.9
413.5
Net cash from operating
activities ($ millions)
Net debt
($ millions)
FY 19FY 19FY 21FY 20FY 20FY 23FY 22FY 22
Net debt movement ($ millions)
FY 22

net debt
FY 23

net debt
Operating
cash flow
Asset sale
proceeds
CAPEX
Interest
Lease
payments
and other
(39.0)
65.1
44.0
341.9
3.8
(2.3)
413.5
Operating cash flows
Operating cash flows decreased by $193.9m
(FY 23: $39.0m, FY 22: $232.9m) driven by:
• Significant increases in employee and other
operating costs due to high inflation and significant
costs due to ERP and operational stability challenges.
• $70m increase in inventory levels due to higher
Advanced Nutrition base powder manufacture and
higher raw materials balances due to higher landed
costs and change in product mix.
• Less sales of carryover inventory compared to FY 22 –
a year where revenues benefited from higher-than-
normal inventory levels at the end of FY 21.
Capital expenditure
CAPEX down 32% (FY 23: $65.1m, FY 22: $96.3m)
driven by:
• Substantial completion of Pokeno processing
upgrade project which has enabled
commencement of production for new portfolio of
Advanced Nutrition products.
• Completion of our ERP implementation and
SAMR registration projects.
• Capital spend has wound down and is expected to
comprise substantially of routine maintenance capital
expenditure moving forward, with an expectation of
less than $30m of spend in FY 24.
Financing costs
Higher interest costs adversely impacted net debt by
$44.0m. This is up by $17.9m on FY 22 due to:
• Significant increases in interest rates (impact of
$12.6m). The effective interest rate in FY 23 was 5.5%
(FY 22: 3.3%).
• Higher debt load during the first nine months of the
year due to ERP challenges. Total interest attributed to
this was $4.5m.
Financing cash flows and net debt
• Net debt up $71.6m or 21% (FY 23: $413.5m,
FY 22: $341.9m) because of lower operating cash
flows, higher interest costs, and Advanced Nutrition
base powder build.
• Synlait anticipates that net debt will reduce
significantly in FY 24 as Dairyworks is sold and
operating cash flows improve.
Balance sheet and leverage
Balance sheet metrics have deteriorated in FY 23.
The net debt to EBITDA ratio is 4.6x (normalised 4.3x).
Synlait is targeting a net debt to EBITDA ratio of below
3.5x in FY 24 through the divestment of Dairyworks and
improved profitability.
Banking facilities
See next slide for further info on banking facilities.
PAGE 10FULL YEAR RESULTS INVESTOR PRESENTATION 2023

DEBT FACILITIES AND
BANKING COVENANTS
Synlait’s revised syndicated bank facilities are with ANZ Bank, Bank of China, China
Construction Bank, HSBC and Rabobank. The secured facilities are summarised as follows:
1. Working capital facility of $240m, maturing 1 October 2024, together with a $10m on-demand
bilateral facility. This facility is a seasonal facility where the facility limit changes at several times
during the term of the facility.
2. Revolving credit facilities of $230m. These facilities also step down over time with maturity
dates between 31 July 2024 and 1 October 2025.
In addition, the Group is required to make a prepayment of at least $130m by no later than
31 March 2024.
Synlait also has borrowings through retail bonds:
Synlait currently has $180m of five-year unsecured subordinated fixed rate bonds which were listed
on the NZX Debt Market in December 2019, and mature on 17 December 2024.
Synlait has key financial covenants in place with its banking syndicate.
Covenants for the recently executed facilities agreement are:
1. Total shareholder funds of no less than NZD $600m at all times.
2. Working capital ratio of no less than 1.5x at all times.
3. Interest coverage ratio of no less than 2.25x for the 31 July 2024 reporting date, increasing
to 3.0x for the 31 July 2025 reporting date.
4. Leverage ratio of no greater than 3.5x for the 31 July 2024 reporting date, decreasing to no
greater than 3.25x on and from the 31 July 2025 reporting date.
5. Senior leverage ratio of no greater than 2.25x for 31 July 2024.
Synlait capital structure requirements:
Synlait has completed a comprehensive review of its capital structure. The refinance of bank
debt was the first step in execution of its capital strategy. Synlait is likely to refinance the
subordinated bond in part or wholly with senior bank debt, however will continue to explore
options before a final decision is made.
To ensure successful refinance of the bond in December 2024, Synlait is working towards
deleveraging by divesting Dairyworks, managing working capital efficiently, increasing
profitability and reducing capital expenditure.
Synlait is pleased to announce it has successfully refinanced its debt facilities, introducing four new banks into the banking syndicate.
The new syndicate, led by ANZ Bank, provides increased service offerings and capacity at a very reasonable cost.
PAGE 11FULL YEAR RESULTS INVESTOR PRESENTATION 2023

Mt Hutt Dairies, Mt Hutt, Canterbury.
Grant Watson
Chief Executive Officer
BUSINESS
UPDATE
FULL YEAR RESULTS INVESTOR PRESENTATION 2023

ADVANCED NUTRITION
Leadership
• Naiche Nogueira started as Director of Advanced Nutrition in
January 2023.
Strategy
• Five-year Advanced Nutrition strategy refresh completed.
Team structure streamlined and aligned to strategic priorities.
• Category focus on early life and adult nutrition (includes
infant formula, paediatric or adult nutrition products) and
advanced ingredients (e.g., lactoferrin products).
• Focused on B2B relationships where Synlait can provide
formulated powers in bulk or consumer-ready format or
formulated beverages with key focused partners The a2 Milk
Company, and strategic Chinese and Southeast Asia local
partners.
Business development
• Synlait now has its plant-based capability fully ratified,
allowing it to produce non-dairy and dairy/non-dairy hybrid
nutrition products.
• Related new product development work initiated and aligned
to strategic priorities.
Achievements
State Administration for Market
Regulation (SAMR) achieved
• Synlait achieved re-registration of
The a2 Milk Company’s Chinese
labelled 至初® Infant Formula
(stages one, two and three)
in June 2023. Re-registration
allows Synlait to manufacture and
export this product for China until
September 2027.
USA market access
• All three Synlait manufacturing sites (Dunsandel, Pokeno
and Auckland) were audited by the US Food and Drug
Administration and received positive outcomes.
Synlait and The a2 Milk Company Nutritional Powders
Manufacturing and Supply Agreement (NPMSA) update
Synlait has received notice from The a2 Milk Company purporting
to cancel the exclusivity arrangements under the NPMSA for
the a2 Platinum® and other nutritional products. Synlait reminds
investors that:
• Synlait disputes that The a2 Milk Company has the right to
cancel the exclusivity arrangements.
• The purported cancellation relates only to the exclusivity
arrangements. The NPMSA remains in place but may be
terminated by either party on three years’ notice.
• The a2 Milk Company has confirmed to Synlait that it will in
practice maintain exclusivity with Synlait until such time as
the matter is resolved (assuming that both parties will seek
to progress the dispute process promptly in good faith, and
the dispute process is completed by the end of 2024). The
dispute resolution process involves a 20-business day period
of good faith negotiation between Synlait and The a2 Milk
Company followed by arbitration (if not resolved).
• Synlait continues to hold the Chinese regulatory State
Administration for Market Regulation (SAMR) licence which is
attached to Synlait’s Dunsandel manufacturing facilities. The
licence is for The a2 Milk Company’s Chinese labelled 至初®
Infant Formula (stages one, two and three). The company
expects to manufacture those products for The a2 Milk
Company for goods destined for the China market for the
period of that licence (currently expiring September 2027).
PAGE 13FULL YEAR RESULTS INVESTOR PRESENTATION 2023

FOODSERVICE
Leadership
• Abby Ye started as President of China & Director
of Foodservice in March 2023.
Strategy
• Five-year Foodservice strategy created.
• Initial focus on functional UHT cream sold to B2B
customers who use it in finished products for out-
of-home consumption at bakeries, cafes, beverage
chains, etc. Butter and cream cheese identified as
potential long-term opportunities.
• China’s cream market represents significant potential
for Synlait. The total cream market exceeded
250,000 MT in 2022, and New Zealand is the leading
country for cream exports, with ~58% market share.
• Targeted geographies expanded to include
Singapore as the hub of Southeast Asia with big
OEMs (central kitchens).
Business development
• FY 24 will see Synlait keep expanding Joyhana within
China, focusing on bakery/pastry and beverage
chains, and access selected Southeast Asia markets
in H2 24.
Achievements
Launch of JOYHANA partnership between Synlait
and SAVENCIA Group
• Commercial sales commenced in FY 23, and
volumes will continue to ramp into FY 24.
• Market feedback is positive. Joyhana UHT Whipping
Cream won the ‘New Product Innovation Award’
at May’s prestigious China International Bakery
Exhibition. Building on this interest, Joyhana will
launch a co-branding event with a famous Chinese
bakery chain in October, Joyhana X CANA 迦南.
• SAVENCIA Group and Synlait partnership is very
complimentary. SAVENCIA Group is responsible for
distribution, branding and marketing and Synlait
is responsible for high-performance product
development and manufacturing.
Synlait and Massey University celebrated five years
of partnership
• Synlait and Massey University Palmerston
North celebrated five years of partnership and
collaboration on cutting-edge research.
• Innovations have included the commissioning of
the UHT pilot plant, commercialising JOYHANA
and several consumer beverages, and filing an
Advanced Nutrition patent.
PAGE 14FULL YEAR RESULTS INVESTOR PRESENTATION 2023

INGREDIENTS
Strategy
• Five-year Ingredients strategy refresh completed.
Focus on driving strong sales disciplines, while
leaning out cost base.
Business development
• Exporting to a diversified range of markets
(approximately 50 countries), with low China
concentration.
• Focus on generating high-value, multi-year contracts
for differentiated specifications.
• Driving sustainability initiatives with global customers
that leverage Lead With Pride™ and supports best
practice developments on-farm.
• Tightening premiums and lead bucket (optimum
product mix) disciplines to maximise returns and
sales timing to the milk curve to minimise risk.
Achievements
• Strong gross margin per MT achieved (up 16%) due
to excellent alignment to the SMP/AMF lead bucket,
which lasted for most of FY 23 and was supported by
strong sales disciplines.
• Record low year-end stock, working capital and
debtors, supported by a strong operational focus.
• Despite the supply chain being disrupted in HY 23,
strong momentum was generated in H2 23, with
100% of contracted volumes shipped.
• Record Ingredients were invoiced in May at 19,143 MT.
PAGE 15FULL YEAR RESULTS INVESTOR PRESENTATION 2023

CONSUMER (DAIRYWORKS)
Strategy
• Dairyworks has recently focused on its core cheese
category, exiting yoghurt and spreadable butter.
The strategic growth focus is on diversification of
geography and channels, not categories.
• Synlait enabled Dairyworks to build its growth
aspirations over a short period. Dairyworks needs
to transition to a greater global reach, which
requires an owner who will help unlock further
export markets while growing its core New Zealand
and Australia markets. A new owner will also
provide access to capital to enable additional
productivity and efficiency gains.
Divestment update
• Synlait announced its intention to divest Dairyworks
and its Temuka cheese assets in June 2023.
• Synlait is actively engaging with several parties
and will provide a further update in due course.
• The proceeds will be used to pay down debt.
Business development
• Significant pipeline of opportunities in Australia and
South East Asia due to lower cost of milk in New
Zealand. Higher Australian milk prices creates an
opportunity to unlock sustainable long-term growth
with existing customers (i.e., Woolworths Australia) and
new customers nearing the execution stage.
• Well placed to address consumers’ cost of living focus
with brands across all stages of the value spectrum,
i.e., the single occasion grate (100g grated cheese)
makes grated cheese accessible at a low price point
and in a single serving size to match consumer
demands.
Achievements
• Manufacturer market share in key natural cheese
segment increased to ~70% (FY 22: ~64%).
• Foodservice channel growth continued, revenue up
23%, achieved in a tough market where consumers
spend cautiously.
• Commitment made to two key future capital projects
to enable greater labour efficiencies, health and safety
improvements, and quality at the processing facility.
Capital improvements to be commissioned during the
Christmas shutdown period.
PAGE 16FULL YEAR RESULTS INVESTOR PRESENTATION 2023

ON-FARM EXCELLENCE
AND SUSTAINABILITY
Leadership
• Charles Fergusson started as Director of On-Farm
Excellence and Business Sustainability in February
2023.
Strategy
• On-Farm Excellence five-year strategy developed.
Examples of ambitions include 80% Farms on
premiums, 10% supplier waiting list, and less than 1%
annual ceases by FY 28.
• Sustainability strategy review underway. Includes
review of progress to date and alignment with
business unit strategy refresh to ensure it remains
fit for purpose for all stakeholders.
Synlait Farmer Leadership Team
• Team established in November 2022. Key step
in ensuring Synlait and its farmers work closely
together to improve outcomes.
• Eight farmers are a conduit between Synlait and
its farmer supplier base, providing feedback
and direction on Synlait’s strategic choices and
prioritisation of tactics.
Milk price
• Area Managers working with Farmer Suppliers
following recent decreases to ensure minimal cash
outlays on-farm in connection with supplying Synlait.
Synlait Farms (Dunsandel)
• Continued investment in on-farm infrastructure and
teams. Ambition to become Lead with Pride™ certified
and a centre of excellence.
Industry engagement
• Commitment to tree planting via Whakapuāwai,
an environmental programme connecting people,
farmers, and the community through native tree
planting, continues – on track to plant 60,000 trees in
the 2023 calendar year.
• Founding shareholder of AgriZero NZ, a partnership
and investment fund between agribusiness and
Government, to accelerate agricultural emissions
reductions by 30% by 2030.
Sustainability
• Further 19 Farmer Suppliers became Lead With Pride™
certified (FY 22: 191, FY 23: 210).
• Transitioned Boiler Two at Synlait Dunsandel to
biomass (wood pellets) as a fuel source, enabling a
significant emissions reduction step change in FY 24
as Synlait aim to reduce site emissions by 40%.
• B Corp™ recertification on-track for December. The
company’s constitution must now include a B Corp™
purpose statement and stakeholder clause. At the
December Annual Meeting, the Board will request
shareholder support to endorse this constitutional
change.
PAGE 17FULL YEAR RESULTS INVESTOR PRESENTATION 2023

STRATEGY AND
OUTLOOK UPDATE
Grant Watson
Chief Executive Officer
Reddecliffe Farm, Beautiful Valley, Canterbury.FULL YEAR RESULTS INVESTOR PRESENTATION 2023

STRATEGY REFRESH
CREATION OF A MORE
FOCUSED SYNLAIT
• Board and Executive Leadership Team completed strategy refresh.
• Refreshed strategy leverages Synlait’s world-class capabilities and asset base to
partner to produce high-value Advanced Nutrition and Foodservice B2B products,
supported by a disciplined and well-run Ingredients business.
• Strategy and capital structure refresh, including an asset review, announced in June
2023 and intended divestment of Dairyworks and surplus Temuka cheese assets.
• Strategy aligned to structure with Executive Leadership Team renewal now complete
and culture, capability and execution lifting.
PAGE 19FULL YEAR RESULTS INVESTOR PRESENTATION 2023

SYNLAIT STRATEGY FY 24 – FY 28
CATEGORIES
OUR PRODUCTS
CHANNELS
OUR BUSINESS TYPES
RIGHT TO PLAY
OUR STRONG FOUNDATIONS
AMBITION
TO FY 28
RIGHT TO WIN
OUR COMPETITIVE ADVANTAGE MODELS
KEY ENABLERS
OF EXECUTION
Singapore
Malaysia
Thailand
New Zealand
Australia
Greater China
Philippines
Vietnam
Indonesia
GEOGRAPHIES
OUR GROWTH MARKETS
PURPOSE
AND CULTURE
MADE WITH
BETTER MILK
COMPETITIVE, TRANSPARENT
FARMGATE MILK PRICE
FAVOURABLE
ADVANCE RATE
AND NO SHARES
DIGITAL TOOLS
AND ON-FARM
SUPPORT
INDUSTRY AND
COMMUNITY
ENGAGEMENT
SPECIALTY
MILK PREMIUMS
LEAD WITH
PRIDE™
1
5
3
7
2
6
4
8
PURPOSE
AND CULTURE
FOOD SAFETY, QUALITY,
TRACEABILITY AND SURETY OF SUPPLY
NEW ZEALAND
PROVENANCE AND
MARKET ACCESS
BASIC
PRODUCT
PORTFOLIO
ADVANCED
PRODUCT
PORTFOLIO
FLEXIBLE WORLD CLASS
MANUFACTURING FACILITIES
1
5
3
2
4
9
B CORP™ AND
MADE WITH
BETTER MILK
8
DEEP CHANNEL
EXPERTISE
7
On-Farm
Excellence
Best In Class
Customer
Engagement
Disciplined
Product
Innovation
High
Performance
Culture
Systems, Tools
and Processes
World Class
Manufacturing
and Supply Chain
Infant
Nutrition
Adult
Nutrition
Commodity
Powders
B Corp™
Score of 105
Advanced
Nutrition
CUSTOMERSFARMER SUPPLIERS
Advanced
Ingredients
Farmer Net
Promoter Score
Top Quartile
FoodserviceFoodservice
Cream
AMF and Butter*
IWS Level 2
Ingredients
Customer Net
Promoter Score
Top Quartile
Staff Engagement
Top Quartile
Return on
Capital 15%
Food Safety
and Quality
Regulatory
Know-How
Highly Utilised,
Efficient Plants
Advanced Nutrition
and Foodservice
Know-How
Integrated
Value Chain
Sustainability
Credentials
Cream Cheese*
BEST IN CLASS
CUSTOMER ENGAGEMENT
6
Our Purpose – Doing Milk Differently For A Healthier World
* TBC, further opportunities being explored.
PAGE 20FULL YEAR RESULTS INVESTOR PRESENTATION 2023

STRATEGY REFRESH
SUMMARY OF KEY CHANGES
FROM
RIGHT TO PLAY is Synlait’s core capabilities; some might refer to this as our tickets to the game.
Food Safety and Quality
Regulatory
Nutritionals Know-How
Surety of Supply
Efficient Manufacturing
Sustainability Credentials
TO
PAGE 21FULL YEAR RESULTS INVESTOR PRESENTATION 2023

STRATEGY REFRESH
SUMMARY OF KEY CHANGES
CHANNELS (or business units) are the areas Synlait is focusing its efforts.
FROM
Consumer
Foodservice
Manufacturing
TO
PAGE 22FULL YEAR RESULTS INVESTOR PRESENTATION 2023

STRATEGY REFRESH
SUMMARY OF KEY CHANGES
CATEGORIES are the products Synlait manufactures within its business units.
FROM
Milk Powder
Beverages and Cream
AMF and Butter
Cheese
Infant and Adult Nutrition
Lactoferrin
* TBC, further opportunities being explored.
TO
PAGE 23FULL YEAR RESULTS INVESTOR PRESENTATION 2023

STRATEGY REFRESH
SUMMARY OF KEY CHANGES
KEY ENABLERS are focus areas across Synlait to ensure we execute with excellence.
FROM
On-Farm Excellence
Customer Engagement
Disciplined New Product
Development and New
Technology Development
Employer of Choice
Systems, Tools
and Processes
Manufacturing
and Supply Chain
TO
PAGE 24FULL YEAR RESULTS INVESTOR PRESENTATION 2023

RENEWED EXECUTIVE LEADERSHIP TEAM
LIFTING SYNLAIT’S CULTURE, CAPABILITY AND EXECUTION
Naiche Nogueira
Director of Advanced Nutrition
Joined January 2023
Dr. Suzan Horst
Director of Quality, Regulatory
and Laboratory
Charles Fergusson
Director of On-Farm Excellence
and Business Sustainability
Joined February 2023
Glenn Laing
Director of Manufacturing
Promoted August 2023
Cathy Gamlen
Director of People and Culture
Joined August 2023
Paul Mallard
Chief Operating Officer
Joined January 2023
Abby Ye
President China and Director
of Foodservice
Joined March 2023
Tim Carter
CEO Dairyworks and Director
of Consumer
Grant Watson
Chief Executive Officer
Rob Stowell
Chief Financial Officer
Adam Maxwell
Director of Ingredients
PAGE 26FULL YEAR RESULTS INVESTOR PRESENTATION 2023

SYNLAIT’S FULL YEAR 2024 OUTLOOK
FY 23 was highly challenging for Synlait with material reductions in customer demand, CO2 shortages, extreme weather
events, the COVID-19 pandemic, inflationary impacts, ongoing investments in new product workstreams (i.e., UHT cream and
Advanced Nutrition customer growth), and the launch and stabilisation of the company’s new enterprise resource planning
(ERP) system.
Looking ahead to the 2024 financial year, Synlait could still face challenging China market dynamics, softening global
conditions more generally, and continued inflationary pressures across its cost base, which could impact future customer
demand and the company’s overall profitability. Synlait does, however, expect Advanced Nutrition volumes to continue to
grow at the Pokeno site in FY 24, and the company’s overall EBITDA performance is also expected to improve in FY 24,
compared to FY 23.
The a2 Milk Company’s purported cancellation of the exclusivity arrangements under the Nutritional Powders Manufacturing
and Supply Agreement (NPMSA) for the a2 Platinum® and other nutritional products is not expected to impact Synlait’s FY 24
results. Synlait disputes that The a2 Milk Company has the right to cancel the exclusivity arrangements.
While Synlait is confident in its strategy to right-size its cost base to current activities and its near-term Advanced Nutrition
and Foodservice growth opportunities, the uncertainty of broader macroeconomic factors means the company will not
provide guidance at this time.
Synlait is committed to its refreshed strategy to create a more focused company and remains largely on track to meet its five-
year (FY 28) strategic ambitions.
PAGE 27FULL YEAR RESULTS INVESTOR PRESENTATION 2023

NEXT STEPS
Institutional Investor Site Tour at Synlait Pokeno
• Management will host an institutional investor site tour at Synlait
Pokeno on Monday 30 October 2023.
• The agenda includes:
• Synlait Pokeno site tour.
• Presentation from CEO Grant Watson on Synlait’s strategy.
• Q&A with Grant Watson and key members of Synlait’s
Executive Leadership team.
• If you would like to attend, email: investors@synlait.com
Annual Meeting at Synlait Dunsandel
• Synlait’s Annual Meeting is on Friday 1 December 2023, at 1.00pm.
• The Annual Meeting will be held in person at Synlait Dunsandel
(and followed by a site tour) and online.
• The Notice of Meeting, released in early November 2023,
will include further information.
PAGE 28FULL YEAR RESULTS INVESTOR PRESENTATION 2023

APPENDIX
Drewe and Tamara Finlay’s Farm – Taupiri, Waikato.FULL YEAR RESULTS INVESTOR PRESENTATION 2023

MILK PRICEMILK POOL
RAW MILK PROCESSED
• Total average milk payment of $8.49 per kgMS.
• Average base milk price for 2022/23 season is $8.22
per kgMS.
• Average incentive payment paid per kgMS for the
season was 27 cents per kgMS (2021/22: 29 cents per
kgMS) made up of incentives and winter milk payments.
• Forecast base milk price for the 2023/24 season is at
$7.00 per kgMS.
• North Island farmer suppliers responsible for 13% of total
milk supply or 63 farms.
• South Island milk pool grew by 1.6 million kgMS in the
2022/23 season due to eight additional farms, partially
offset by (1.5%) lower production on average per farm due
to unfavourable climate conditions and high on-farm cost
inflation. 2021/22: 212 South Island farms, 2022/23: 220
South Island farms. South Island supply pool has decreased
to 215 farms for the 2023/24 season.
• North Island milk pool contracted by (0.5) million kgMS, due
to two farms leaving the pool and (1.0%) lower production on
average per farm. Total farms 65. 2021/22: 65 North Island
farms, 2022/23: 63 North Island farms. North Island supply
pool has decreased to 59 farms for the 2023/24 season.
• Lead With Pride™ certified farms grew to 210 in 22/23
(21/22: 191 farms).
$6.00
$8.00
200
250
$10.00
300
$4.00
100
150
$2.00
50
2018/192019/202020/212021/222022/23
$6.40
$0.18
Average base milk priceIncentivesSouth Island
kgMS
North Island
kgMS
No. of South
Island Farms
No. of North
Island Farms
$7.05$7.55$9.30$8.22
2018/192019/202020/212021/222022/23
$0.25
$0.27
$0.29
$0.27
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
90,000
kgMS
(thousands)
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
90.0
100.0
kgMS
(millions)
No. of
Farms
FY 19FY 20FY 21FY 22FY 23
66,06670,47282,73778,93476,007
PAGE 30FULL YEAR RESULTS INVESTOR PRESENTATION 2023

FY 19FY 21FY 20FY 22FY 23
FY 19FY 21FY 20FY 22FY 23
FY 19FY 21FY 20FY 22FY 23
FY 19FY 21FY 20FY 22FY 23
FY 19FY 21FY 20FY 22FY 23
KEY FINANCIAL METRICS
Gross profit per MT ($)*
EBIT per MT ($)
Return on capital employed
Basic earnings per share (cents NZD)Net debt/EBITDA
Debt/(debt + equity)
776.0
1,174.3
45.3
18.0%
2.2
625.1
1,043.5
41.4
12.5%
3 .1
288.2
650.1
17.6
5.6%
2.6
156.2
725.1
(2.0)
2.7%
4.6
(80.8)
307.7
(13.8)
(1.5%)
12.9
FY 19FY 21FY 20FY 22FY 23
* Includes gross profit not attributable to business units (comprised primarily of margin on raw milk and cream sales, income from dairy derivatives, and farms contribution).
39.3%
47.2%
30.0%
34.3%
38.7%
PAGE 31FULL YEAR RESULTS INVESTOR PRESENTATION 2023

GROSS PROFIT
PERFORMANCE BY CATEGORY
FY 19FY 20FY 21FY 22FY 23
Sales Volume (MT)
Ingredients98,49997,561125,914132,481108,856
Advanced Nutrition51,23152,87134,36233,50631,971
Consumer8,94744,81858,48359,78656,999
Foodservice----757
Subtotal158,677195,250218,759225,773198,583
Gross Profit ($M)
Ingredients36.831.314.557.554.6
Advanced Nutrition152.4172.845.073.857.0
Consumer(3.0)-10.521.329.0
Foodservice----(0.2)
Subtotal186.2204.170.0152.6140.4
Gross Profit ($/MT)
Ingredients374321115434501
Advanced Nutrition2,9753,2681,3102,2031,782
Consumer(339)0.5179357508
Foodservice----(313)
Subtotal1,1741,045320676707
Revenue ($M)
Ingredients481510635826661
Advanced Nutrition498594406416440
Consumer10132266309329
Foodservice----4
Subtotal9891,2361,3071,5511,434
Note: Amounts not attributable to business units are not included in the above table. Advanced Nutrition margins have been restated to exclude milk supply costs attributable to raw milk and cream sales.
PAGE 32FULL YEAR RESULTS INVESTOR PRESENTATION 2023

FY 19FY 20FY 21FY 22FY 23
Revenue1,024,3051,302,0251,367,3491,660,6011,603,580
Cost of sales(837,976)(1,098,292)(1,300,042)(1,513,827)(1,459,588)
Gross profit186,329203,73367,307146,774143,992
Other income8984043,87022,77716,333
Share of loss from associates(580)33(33)--
Sales and distribution expenses(26,836)(32,318)(36,791)(39,423)(48,316)
Administrative and operating expenses(36,680)(49,809)(52,018)(49,534)(74,195)
Impairment of Temuka cheese plant assets---(12,231)-
ERP implementation costs---(3,295)(6,794)
Earnings before net finance costs and income tax123,131122,043(17,665)65,06831,020
Finance expenses(8,819)(19,777)(20,488)(18,730)(32,786)
Finance income1,23213444170281
Loss on derecognition of financial assets(1,842)(1,747)(1,045)(2,427)(5,771)
Net finance costs(9,429)(21,390)(21,489)(20,987)(38,276)
(Loss)/profit before income tax113,702100,653(39,154)44,081(7,256)
Income tax benefit/(expense)(32,454)(26,344)10,703(5,558)2,964
Net (loss)/profit after tax for the year81,24874,309(28,451)38,523(4,292)
SUMMARISED FIVE YEAR INCOME STATEMENT
PAGE 33FULL YEAR RESULTS INVESTOR PRESENTATION 2023

DISCLAIMER
This presentation is intended to constitute a summary of certain
information about the Synlait Group (“Synlait”) or in connection
with its full year 2023 financial results. It should be read in
conjunction with, and subject to, the explanations and views in
documents previously released to the market by Synlait. This
presentation is not an offer or an invitation, recommendation or
inducement to acquire, buy, sell or hold Synlait’s shares or any
other financial products and is not a product disclosure statement,
prospectus or other offering document, under New Zealand law
or any other law.
This presentation is provided for information purposes only. The
information contained in this presentation is not intended to be
relied upon as advice to investors and does not take into account
the investment objectives, financial situation or needs of any
particular investor. Investors should assess their own individual
financial circumstances and should consult with their own legal,
tax, business and/or financial advisers or consultants before
making any investment decision.
Any forward looking statements and projections in this
presentation are provided as a general guide only based on
management’s current expectations and assumptions and
should not be relied upon as an indication or guarantee of future
performance. Forward looking statements and projections involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of Synlait
and which are subject to change without notice. Actual results,
performance or achievements may differ materially from those
expressed or implied in this presentation. No person is under any
obligation to update this presentation at any time after its release
except as required by law and the NZX Listing Rules, or the ASX
Listing Rules.
Any forward looking statements in this presentation are unaudited
and may include non-GAAP financial measures and information.
Not all of the financial information (including any non-GAAP
information) will have been prepared in accordance with, nor
is it intended to comply with: (i) the financial or other reporting
requirements of any regulatory body or any applicable legislation;
or (ii) the accounting principles or standards generally accepted
in New Zealand or any other jurisdiction, or with International
Financial Reporting Standards. Some figures may be rounded and
so actual calculation of the figures may differ from the figures in
this presentation. Some of the information in this presentation is
based on non-GAAP financial information, which does not have a
standardised meaning prescribed by GAAP and therefore may not
be comparable to similar financial information presented by other
entities. Non-GAAP financial information in this presentation has
not been audited or reviewed. Any past performance information
in this presentation is given for illustration purposes only and is
not indicative of future performance and no guarantee of future
returns is implied or given.
While all reasonable care has been taken in relation to the
preparation of this presentation, to the maximum extent permitted
by law, no representation or warranty, expressed or implied, is
made as to the accuracy, adequacy, reliability, completeness
or reasonableness of any statements, estimates or opinions or
other information contained in this presentation, any of which
may change without notice. To the maximum extent permitted
by law, Synlait, its subsidiaries, and their respective directors,
officers, employees, contractors, agents, advisors and affiliates
disclaim and will have no liability or responsibility (including,
without limitation, liability for negligence) for any direct or indirect
loss or damage which may be suffered by any person through
use of or reliance on anything contained in, or omitted from, this
presentation.
All values are expressed in New Zealand currency unless
otherwise stated.
All intellectual property, proprietary and other rights and interests
in this presentation are owned by Synlait.
PAGE 34FULL YEAR RESULTS INVESTOR PRESENTATION 2023

FOR MORE INFORMATION CONTACT:
Hannah Lynch
Head of Strategy & Corporate Affairs
+64 21 252 8990
hannah.lynch@synlait.com

---

Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

NZX: SML
ASX: SM1

25 September 2023

Synlait Publishes Full Year 2023 Results

Synlait Milk Limited (Synlait) has announced its financial results for the 12 months ended 31 July 2023.

Key takeaways from today:

 Joyhana (UHT cream) launched, commercial sales underway.
 State Administration for Market Regulation (SAMR) re-registration achieved.
 TRIFR
1
reduced more than 30% since Synlait Safe launch in November 2022.
 ELT renewal completed.
 Strategy refresh completed, creation of a more focused Synlait.

Synlait Chair Simon Robertson commented: "Our financial results are challenging and not where we
need them to be, but tactically, we are building the foundations for a stronger Synlait, playing to our
strengths while continuing to diversify our products, markets, and customers. Our refreshed strategy
leverages Synlait’s strengths in our world-class capabilities and experience in partnering to produce
high-value Advanced Nutrition and Foodservice products."

"Over the coming 12 months, we will address our balance sheet (through the intended divestment of
Dairyworks and Temuka cheese assets); right size our cost base to current activities and near-term
growth opportunities; deliver and build on our current and prospective Advanced Nutrition and
Foodservice customer opportunities; and lift our operational performance."

Synlait CEO Grant Watson commented: "It was an extremely challenging year for Synlait. Various
factors contributed to our poor financial performance, including material reductions in customer
demand, CO2 shortages, extreme weather events, the COVID-19 pandemic, inflationary impacts on
our cost base, and costs associated with the launch and stabilisation of our enterprise resource
planning (ERP) system. Some factors were outside our control, and others were within our control."

“Thank you to our shareholders, staff, farmer suppliers, and customers for your support. We are
focused on getting the basics right, lifting our performance, and returning to profitability, as we look
ahead to a new and exciting era in Synlait."

Financial highlights
2
:

 Total Group revenue down 3% to $1.60 billion
 Total Group net profit after tax (NPAT) down 111% to loss of ($4.3) million
 Total Group earnings before interest, taxes, depreciation, and amortization (EBITDA) down
31% to $90.7 million
 Total Group gross profit down 2% to $144.0 million
 Operating cashflow down 83% to $39.0 million
 Capital expenditure down 32% to $65.1 million
 Net debt up 21% to $413.5 million

1
Total Recordable Injury Frequency Rate (TRIFR), reduced to 10.6 at the end of FY 23.
2
Includes Dairyworks which has been classified as a discontinued operation.

Synlait Milk Limited · 1028 Heslerton Road, RD13 Rakaia, Canterbury, New Zealand · +643 373 3000 · www.synlait.com

Final 2022 / 2023 milk price:

The final average base milk price is $8.22 per kgMS for the 2022 / 2023 season. In addition, an
average of $0.27 per kgMS was paid for incentives, taking the total average milk payment to $8.49
per kgMS. The base milk price is down from Synlait’s highest payout, $9.30/kgMS, in the prior season.
Commodity prices corrected downwards across the 2022 / 2023 season in response to recovering
global supplies and softening demand.

Increases in the last two Global Dairy Trade events, after a period of significant downward pressure,
means Synlait can confirm that its base milk price forecast for the 2023 / 2024 season will remain at
$7.00 per kgMS.

Full Year 2024 (FY 24) Outlook:

FY 23 was highly challenging for Synlait with material reductions in customer demand, CO2
shortages, extreme weather events, the COVID-19 pandemic, inflationary impacts, ongoing
investments in new product workstreams (i.e., UHT cream and Advanced Nutrition customer growth),
and the launch and stabilisation of the company’s new enterprise resource planning (ERP) system.

Looking ahead to the 2024 financial year, Synlait could still face challenging China market dynamics,
softening global conditions more generally, and continued inflationary pressures across its cost base,
which could impact future customer demand and the company’s overall profitability. Synlait does,
however, expect Advanced Nutrition volumes to continue to grow at the Pokeno site in FY 24, and the
company’s overall EBITDA performance is also expected to improve in FY 24, compared to FY 23.

The a2 Milk Company’s purported cancellation of the exclusivity arrangements under the Nutritional
Powders Manufacturing and Supply Agreement (NPMSA) for the a2 Platinum® and other nutritional
products is not expected to impact Synlait’s FY 24 results. Synlait disputes that The a2 Milk Company
has the right to cancel the exclusivity arrangements.

While Synlait is confident in its strategy to right-size its cost base to current activities and its near-term
Advanced Nutrition and Foodservice growth opportunities, the uncertainty of broader macroeconomic
factors means the company will not provide guidance at this time.

Synlait is committed to its refreshed strategy to create a more focused company and remains largely
on track to meet its five-year (FY 28) strategic ambitions.

For more information contact:
Hannah Lynch
Head of Strategy & Corporate Affairs
P: +64 21 252 8990
E: hannah.lynch@synlait.com

---

Dear shareholders
Synlait today published its financial result for the 12 months ended 31 July 2023. It was an extremely challenging year for
Synlait. Various factors contributed to our poor financial performance, including material reductions in customer demand,
CO2 shortages, extreme weather events, the COVID-19 pandemic, inflationary impacts on our cost base, and costs
associated with the launch and stabilisation of our enterprise resource planning (ERP) system. Some factors were outside
our control, and others were within our control.
Our Annual Report and Investor Presentation highlight work to create a more focused Synlait. Our financial results are
challenging, and not where we need them to be, but tactically, we are building the foundations for a stronger Synlait,
playing to our strengths while continuing to diversify our products, markets, and customers.
Our refreshed strategy leverages Synlait’s strengths in our world-class capabilities and experience in partnering to
produce high-value Advanced Nutrition and Foodservice products. Over the coming 12 months, the Board will support
Management to continue building stronger foundations. We will address our balance sheet (through the intended
divestment of Dairyworks and Temuka cheese assets); right sizing our cost base to current activities and near-term
growth opportunities; delivering and building on current and prospective Advanced Nutrition and Foodservice customer
opportunities; and lifting our overall operational performance.
We have a clear plan and an extremely capable leadership team to deliver stronger execution. We are committed to
creating a more focused Synlait, for you, our shareholders. Thank you for your support.
Regards
Simon Robertson
Chair
SYNLAIT PUBLISHES
FULL YEAR 2023 RESULTS
FY 23
Extremely challenging financial year, with a poor financial result delivered.
Joyhana (UHT cream)
launched, commercial
sales underway.
State Administration for
Market Regulation (SAMR)
re-registration achieved.
*TRIFR reduced >30%
since Synlait Safe launch
in November 2022.
ELT renewal.
STRATEGY REFRESH COMPLETED
Creation of a more focused Synlait.
* TRIFR is Total Recordable Injury Frequency Rate, reduced to 10.6 at the end of FY 23.
KEY TAKEAWAYS FROM TODAY

3%
TOTAL GROUP REVENUE
$
1.60B
32%
CAPITAL EXPENDITURE
$
6 5 .1M
21%
NET DEBT
$
413.5M
$2.8M
TOTAL GROUP GROSS PROFIT
$
144.0M
83%
OPERATING CASHFLOW
$
39.0M
$42.8M
TOTAL GROUP NPAT
(
$
4.3M)
$33.8M
ADJUSTED TOTAL GROUP NPAT¹
$
2.5M
$40.9M
TOTAL GROUP EBITDA
$
90.7M
$27.4M
ADJUSTED TOTAL GROUP EBITDA¹
$
95.6M
11%
TOTAL AVERAGE MILK PRICE
$
8.49kgMS
12%
TOTAL BASE MILK PRICE
$
8.22kgMS
All comparisons are to FY 22 and include the results of Dairyworks which has been treated as a discontinued operation.
1 Refer to slide 5 for a reconciliation of adjusted NPAT and EBITDA.
RESULTS AT A GLANCE
Full Year 2024 (FY 24) Outlook
FY 23 was highly challenging for Synlait with material reductions in customer demand, CO2 shortages, extreme weather
events, the COVID-19 pandemic, inflationary impacts, ongoing investments in new product workstreams (i.e., UHT cream
and Advanced Nutrition customer growth), and the launch and stabilisation of the company’s new enterprise resource
planning (ERP) system.
Looking ahead to the 2024 financial year, Synlait could still face challenging China market dynamics, softening global
conditions more generally, and continued inflationary pressures across its cost base, which could impact future customer
demand and the company’s overall profitability. Synlait does, however expect Advanced Nutrition volumes to continue to
grow at the Pokeno site in FY 24, and the company’s overall EBITDA performance is also expected to improve in FY 24,
compared to FY 23.
The a2 Milk Company’s purported cancellation of the exclusivity arrangements under the Nutritional Powders
Manufacturing and Supply Agreement (NPMSA) for the a2 Platinum® and other nutritional products is not expected
to impact Synlait’s FY 24 results. Synlait disputes that The a2 Milk Company has the right to cancel the exclusivity
arrangements.
While Synlait is confident in its strategy to right-size its cost base to current activities and its near-term Advanced
Nutrition and Foodservice growth opportunities, the uncertainty of broader macroeconomic factors means the company
will not provide guidance at this time.
Synlait is committed to its refreshed strategy to create a more focused company and remains largely on track to meet its
five-year (FY 28) strategic ambitions.
Annual Meeting
Our Annual Meeting will be held on Friday 1 December 2023 at 1.00pm. It will be held in person at Synlait Dunsandel
(followed by a site tour) and online. The Notice of Meeting, released in early November 2023, will include further
information.

---

Results for announcement to the market
Name of issuer Synlait Milk Limited (SML)
Reporting Period 12 months to 31 July 2023
Previous Reporting Period 12 months to 31 July 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,320,758 (5%)
Total Revenue $1,603,580 (3%)
Net profit/(loss) from
continuing operations
($14,144) (135%)
Total net profit/(loss) ($4,292) (111%)
Interim/Final Dividend
Amount per Quoted Equity
Security
Not proposing to pay dividends.
Imputed amount per Quoted
Equity Security
Not applicable.
Record Date Not applicable.
Dividend Payment Date Not applicable.
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.88 $2.69
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the following accompanying documents:
 Full Year 2023 Annual Report (includes financial
statements)
 Full Year 2023 Investor Presentation
Authority for this announcement
Name of person authorised
to make this announcement
Synlait CEO Grant Watson
Contact person for this
announcement
Synlait Head of Strategy & Corporate Affairs Hannah Lynch
Contact phone number +64 21 252 8990
Contact email address hannah.lynch@synlait.com
Date of release through MAP Monday 25 September 2023

Audited financial statements accompany this announcement.

---

Doing Milk Differently
For A Healthier World
ANNUAL
REPORT
2023

WELCOME TO SYNLAIT’S
ANNUAL REPORT
Synlait releases a standalone
sustainability report each December.
The report reviews Synlait’s strategy
and initiatives to achieve our
sustainability objectives and targets.
Our Corporate Governance Statement
describes Synlait’s current compliance
with the NZX Corporate Governance
Code (NZX Code) recommendations
in the year to 31 July 2023.
The Corporate Governance
section of the Annual Report can
be found on Synlait’s website:
synlait.com/investors/corporate-
governance-2023/
Our Annual Report reviews Synlait Milk Limited’s (Synlait) and
subsidiaries’ financial performance and business achievements
for the year ended 31 July 2023.
An online copy of this Annual Report and previous annual, interim
and sustainability reports are available at: synlait.com/investors/
We are always looking for ways to improve our reporting.
Please email any feedback to: investors@synlait.com
SUSTAINABILITY
REPORTING
CORPORATE
GOVERNANCE
Reddecliffe Farm, Beautiful Valley, Canterbury.
PAGE 01 & 02ANNUAL REPORT 2023

Dean and Nicky Reddecliffe and their farm team –
finalist at Synlait’s Annual Dairy Honours Awards
in the For A Healthier World category.
PAGE 03 & 04ANNUAL REPORT 2023

01
About this Report
01129
29
Our Board
30
Our Executive Leadership Team
43
Financial and Performance Metrics
09
Chair Review
44
Milk Price
124
Auditor’s Report
129
Statutory Information
149
Directory
15
CEO Review
33
CFO Review
45
Financial Statements Contents
09
15
33
PAGE 05 & 06ANNUAL REPORT 2023

Brendon Dolan from BP Dolan Farms, Canterbury
– winner at Synlait’s Annual Dairy Honours Awards
in the Doing Milk Differently category.
PAGE 07 & 08ANNUAL REPORT 2023

this dynamic, resulting in more domestic and
fewer global brands, increasing local market
share as the industry consolidates.
What a more focused Synlait looks like,
leveraging our core Advanced Nutrition
and Foodservice capabilities
The current China market dynamics present
a short-term challenge for all exporters, but
Synlait is well placed to adapt. We have the
capabilities, assets and market access which
mean the building blocks are in place.
As the CEO Report on page 15 details, we
have a clear competitive advantage, or
right to win, in our chosen areas, Advanced
Nutrition and Foodservice, supported by
our disciplined and well-run Ingredients
business. Our core food safety and quality
and manufacturing capabilities, highly
integrated value chain, Advanced Nutrition
and Foodservice know-how, and industry-
leading sustainability credentials set us
apart.
Advanced Nutrition is defined as formulated
powders in bulk or consumer-ready format,
formulated beverages, and speciality
nutritional ingredients that our customers
sell to consumers. We don’t just consider
this infant formula, but also paediatric
or adult nutrition products. The world’s
population is ageing and driving greater
demand for Adult Nutrition solutions. Adult
Nutrition is currently a USD $63 billion
global market with an 8% compound annual
growth rate (CAGR), and the Asia Pacific
region is showing the same growth rates
as consumer awareness increases. With
the requirements to manufacture infant and
adult nutrition solutions being similar, Synlait
is well positioned to leverage its expertise
and assets to enter this category. We are
playing to our strengths, while continuing
Welcome to our 2023 Annual Report
The report highlights our work to create a
more focused Synlait. Our financial results
are challenging, and not where we need
them to be, but tactically, we are building the
foundations for a stronger Synlait; playing to
our strengths while continuing to diversify
our products, markets, and customers.
Our refreshed strategy (summarised on
page 17) leverages Synlait’s strengths in our
world-class capabilities and experience in
partnering to produce high-value Advanced
Nutrition and Foodservice products. Over
the coming 12 months, the Board will support
Management to continue building stronger
foundations. We will address our balance
sheet (through the intended divestment of
Dairyworks and its Temuka assets); right
sizing our cost base to current activities and
near-term growth opportunities; delivering
and building on current and prospective
Advanced Nutrition and Foodservice
customer opportunities; and lifting our
overall operational performance.
Over the last 12 months, Synlait has
navigated challenges and learned a lot.
We have experienced customer forecast
demand and production changes;
operational stability and cost challenges
such as CO2 shortages; a tight labour
market; extreme weather events; inflationary
pressures; and the stabilisation of our
Enterprise Resource Planning (ERP) system.
Some of these challenges were market-
driven, others our own, but importantly,
the team has adapted and reflected, and is
driven to create a more focused Synlait.
Setting the scene for a more focused
Synlait: market dynamics changed
post-COVID-19
Towards the middle of the 2022 calendar
year, the world reached a turning point in
the COVID-19 pandemic. While restrictions
started falling away, the pandemic’s
economic impact became clear. This was
particularly evident in China, which plays a
critical role in global dairy markets as the
world’s largest importer, New Zealand’s
largest trading partner, and the largest
export market for Synlait’s customers.
The easing of COVID-19 restrictions has had
a dramatic impact in China. A Government
push for food security and safety means
China has invested significantly in domestic
dairy production driven by favourable policy
change. This is evident in two places on-
farm: since 2015 the percentage of Chinese
dairy herds with more than 1,000 heads
increased 20% to 44% as local consumers
demanded high-quality premium milk.
Secondly, milk production has also tripled
over the last 20 years to approximately
39.3m metric tons in 2022. Substantial
capital investment in local manufacturing
assets has created a robust domestic dairy
industry, and the insular nature of COVID-19
played to this.1
Chinese birth rates fell 10% in 2022²,
property prices weakened, and youth
unemployment rose. Consumer habits
have also evolved as support for made-
in-China products has grown across many
industries. For example, the Chinese infant
formula industry was previously boosted by
high-paying consumers favouring global,
westernised brands. The made-in-China
mentality and the re-registration of all infant
formula products required under China’s
new GB (food safety) legislation has flipped
CHAIR REVIEW
Simon Robertson
to diversify our products, markets, and
customers within the Advanced Nutrition
category. We are building out our portfolio
of opportunities for the medium term within
Southeast Asia and China, with related new
product development work focused on Adult
Nutrition.
Ensuring greater focus and execution in
Advanced Nutrition and Foodservice was
why, in June, we announced our intention
to divest Dairyworks and its Temuka assets.
A divestment will enable our team to focus
solely on growing the highest margin
segments of our value-add, B2B Advanced
Nutrition and Foodservice businesses,
where we already have world-class assets,
capacity, know-how, and most importantly,
partnerships with global customers such
as Savencia, Nestle, Danone, and The a2
Milk Company, to deliver products for their
consumers. China remains a key market
for several of these customers and the
access we have secured via our State
Administration for Market Regulation (SAMR)
re-registration this year is clear proof of
our success and access in this market and
category. Synlait has retained its China
market access as the industry consolidates,
a clear endorsement of the quality of the
products we manufacture.
Creating a high performing team
On behalf of the Board, I want to
acknowledge the leadership of Grant
Watson, our CEO, who has been in the
role for 18 months. Grant is placing greater
importance on our team’s delivery and its
alignment with strategy. He is laser-focused
on ensuring everyone from a Red Line
Cleaner or a Process Technician to a Head of
a department or Executive Leadership Team
(ELT) member understands our strategy and
the role they play in delivering it.
1
Huang, China Dairy Outlook Through 2023, 4.
2
Statista, “Number of births per year in China from 2012 to 2022.”
PAGE 09 & 10ANNUAL REPORT 2023

The ELT has transformed over the last 12
months, with Grant building a high-quality
team alongside Adam Maxwell, Rob Stowell,
Suzan Horst, and Tim Carter, who have been
part of Synlait for some time. The capability
and culture of the ELT have significantly
lifted with Abby Ye, Cathy Gamlen, Charles
Fergusson, Glenn Laing, Naiche Nogueira
and Paul Mallard joining us (see page 30 for
more information).
I would also like to acknowledge the
changes around our Board table. We
farewelled independent Director Sam
Knowles at the Annual Meeting, who retired
by rotation. Sam joined Synlait just before
our NZX listing in 2013. Thank you to Sam
for his invaluable contribution to Synlait’s
strategic direction and growth during this
time. Paul Washer replaced Sam and has
been a great addition to our team, taking on
the Audit & Risk Committee Chair role. We
are seeing the benefits of Paul’s significant
listed company and industry experience.
Our largest shareholder, Bright Dairy, also
changed their Board appointed Directors
earlier this calendar year, with Liu Ruibing
(Ryan), the CFO of Bright Dairy, and Zhu Yi
(Julia), the Vice President of Bright Dairy,
replacing Min Chen (Joyce) and Gui Min
(Gracie). Julia and Ryan bring significant
finance, corporate management, and
strategic planning experience, strengthening
our governance.
Thank you to the Board and ELT for your
contribution and ongoing energy to
Synlait during a challenging 12 months.
Your endless passion for our business is
energising.
What it means to be a B Corp™
As I mentioned in my last shareholder
letter, I strongly believe in Synlait’s purpose,
Doing Milk Differently For A Healthier
World. It has shaped who we are, what
we stand for, and what we do. From day
one, Synlait has been a catalyst for change
in our industry and becoming a B Corp™
committed us to balancing people, planet,
and profit.
In 2021, B Corp™ announced that a
company’s constitution must include a
B Corp™ purpose statement and stakeholder
clause. Adopting the requirement is
committing to a higher standard of
accountability in our decisions and signals
to our stakeholders that our purpose is core
to Synlait. We have also found our
B Corp™ status a highly effective way of
connecting our people to our purpose. At
our Annual Meeting in December, the Board
will request your support to endorse this
constitutional change.
The B Corp™ value set has been part of
Synlait for many years, with sustainability
being a key focus around our board table,
board committees and represented in our
ELT. We are already leading in this space,
and the values are consistent with our
strategic ambitions to create high-value
nutritional solutions in our Advanced
Nutrition and Foodservice businesses.
Today’s consumers have high expectations
of how we should care for our community,
and we must deliver on this. I look forward
to sharing more information with you in our
Notice of Meeting and hope we can count
on your support.
Thank You
Finally, thanks to our farmer suppliers and
staff. The New Zealand dairy industry is
facing tougher times. Without the support of
each of these groups, we cannot produce
high-quality and safe products for our
global customers. Thank you for your
commitment, passion, and loyalty to Synlait.
The Board acknowledges that our current
financial and share price performance is
unacceptable. A reality of the Synlait story
in the short term is that we are a highly
leveraged business. If we do not right-
size our balance sheet to the size of our
business, we will not have the freedom
to accelerate on near and medium term
opportunities at the pace our customers,
and their consumers, demand.
I want to reassure you that the news we
received from The a2 Milk Company last
week about the purported cancellation of
the exclusivity arrangements under the
Nutritional Powders Manufacturing and
Supply Agreement (NPMSA) for the a2
Platinum® and other nutritional products is
not expected to impact our FY 24 results.
Synlait disputes that The a2 Milk Company
has the right to cancel the exclusivity
arrangements. Our complete response to
The a2 Milk Company is in the Investor
Presentation which was released with this
Annual Report.
The Board’s priority is to support Grant and
his team. We have a clear plan in place and
an extremely capable leadership team to
ensure we deliver stronger execution. We
are committed to creating a more focused
Synlait, for you, our shareholders. Thank
you for your support.
Regards
Simon Roberston
Chair
PAGE 11 & 12ANNUAL REPORT 2023

Sam Taylor, Reddecliffe Farm, Beautiful Valley, Canterbury.
PAGE 13 & 14ANNUAL REPORT 2023

Tēnā koutou shareholders
It was an extremely challenging year for
Synlait. We delivered a poor financial
result with an adjusted total net profit after
tax (NPAT) of $2.5 million (adjusted total
EBITDA of $95.6 million). Various factors
contributed to our financial performance,
including material reductions in customer
demand, CO2 shortages, extreme
weather events, the COVID-19 pandemic,
inflationary and significant costs associated
with the launch and stabilisation of our
enterprise resource planning (ERP) system.
Some factors were outside our control, and
others were within our control.
A complete summary of our financial
performance is available in the Investor
Presentation released with this Annual
Report.
Despite the challenges, our team delivered
a number of significant successes, putting
us into a much stronger position for the
year ahead. These successes, detailed
further on page 21, include achieving
the State Administration for Market
Regulation re-registration, which secures
our China market infant formula access
for The a2 Milk Company through until
September 2027, establishing the Synlait
Farmer Leadership Team, the launching of
functional foodservice cream (Joyhana) in
China, and taking our Executive Leadership
Team (ELT) through a phase of renewal.
Our Ingredients and Dairyworks businesses
also delivered strong financial results.
Laying the foundations for FY 24
and beyond
Our Chair, Simon Robertson spoke to
further challenging times ahead in the
short to medium term. We face difficult
market dynamics in China, softening global
economies more generally, and inflationary
pressures across our cost base.
To ensure Synlait can navigate its way
through this, we are highly focused on
driving the quality of our execution. As we
move forward, it is critical that our strategy
is more focused and that our resource base
is appropriately aligned to deliver against
our plan.
Our ELT and Board were actively involved
with our strategy refresh during the year.
As a part of this, we made the decision
to double down on our value-add B2B
businesses, Advanced Nutrition and
Foodservice, where we have a clear
competitive advantage and right to win.
We also announced our intention to divest
our Dairyworks business and associated
Temuka assets.
We are creating a more focused Synlait.
Our five-year strategy is on the next page
and includes seven sections. It is designed
to be a simple story that sets out our
ambitions and focus areas for Synlait during
the coming years. The key components of
each section are summarised.
FY 24 – focusing on the basics
and rebuilding momentum
It was pleasing to announce the successful
completion of our planned bank refinancing
last week. Our banking group remains
supportive, and we are pleased to welcome
the Bank of China, China Construction
Bank, HSBC, and Rabobank to the
syndicate alongside ANZ.
We also responded to The a2 Milk
Company’s announcement last week and
confirmed we had received notice from
The a2 Milk Company purporting to cancel
the exclusivity arrangements under the
Nutritional Powders Manufacturing and
Supply Agreement (NPMSA) for the a2
Platinum® and other nutritional products.
Synlait disputes that The a2 Milk Company
has the right to cancel the exclusivity
arrangements. The dispute resolution
process involves a 20-business day period
of good faith negotiation between Synlait
and The a2 Milk Company, followed by
arbitration (if not resolved). This is not
expected to impact our FY 24 results. Our
complete response to The a2 Milk Company
is in the Investor Presentation, which was
released with this Annual Report. We will
keep you updated on progress.
Thank you to our shareholders, staff, farmer
suppliers, and customers for your support
and loyalty during an extremely challenging
year. As an ELT and Board, we are excited
by the opportunities ahead and will continue
to tackle a range of challenges as we focus
on the basics and actively rebuild our
momentum. Our team are highly focused
on lifting our performance and returning to
profitability as we look ahead to a new and
exciting era in our company’s history.
Nāku noa, nā
Grant Watson
CEO
CEO REVIEW
Grant Watson
PAGE 15 & 16ANNUAL REPORT 2023

SYNLAIT STRATEGY FY 24 – FY 28
CATEGORIES
PRODUCTS
CHANNELS
BUSINESS TYPES
Advanced
Nutrition
Foodservice
Ingredients
RIGHT TO PLAY
STRONG FOUNDATIONS
AMBITION
TO FY 28
B Corp™
Score of 105
Farmer Net
Promoter Score
Top Quartile
IWS Level 2
Customer Net
Promoter Score
Top Quartile
Staff Engagement
Top Quartile
Return on
Capital 15%
Food Safety
and Quality
Regulatory
Know-How
Highly Utilised,
Efficient Plants
Advanced Nutrition
and Foodservice
Know-How
Integrated
Value Chain
Sustainability
Credentials
Infant
Nutrition
Adult
Nutrition
Commodity
Powders
Advanced
Ingredients
Foodservice
Cream
AMF and Butter
(TBC)
Cream Cheese
(TBC)
Ambition is what Synlait’s success looks like in five years.
There are three metrics relating to farmer, staff, and
customer engagement, along with precise operations,
financial, and sustainability metrics.
Right to Play is Synlait’s core capability; some might refer to
this as our tickets to the game.
• Food Safety and Quality – meeting high-quality
standards is non-negotiable. We must meet
accreditation standards in New Zealand and each
country we export to.
• Highly Utilised and Efficient Plants – our modern
assets must run efficiently and effectively to achieve
an acceptable (or better) return on capital (one of our
ambitions).
• Advanced Nutrition and Foodservice Know-How –
we are experts in these channels across all areas of
Synlait, from manufacturing and product innovation to
customer relationships.
• Integrated Value Chain – our supply chain must be
strong from farm to customer.
• Regulatory Know-How – we understand and align
to regulations in New Zealand and the countries we
export to.
• Sustainability Credentials – our B Corp™ accreditation
demonstrates our commitment to strong sustainability
credentials in all that we do.
Channels (or business units) are the
areas Synlait is focusing its efforts.
• Advanced Nutrition –
formulated powers in bulk
or consumer-ready format,
formulated beverages, and
speciality nutritional ingredients
that our customers sell to
consumers.
• Foodservice – products such as
functional UHT cream are sold
to customers who turn them into
finished products for out-of-
home consumption at bakeries,
cafes, beverage chains, etc.
• Ingredients – bulk milk powder
and other bulk products sold to
manufacturers, who use them in
a range of applications.
Categories are the products Synlait manufactures within its channels
(business units).
• Infant and Adult Nutrition – infant formula, paediatric or adult nutrition
products.
• Advanced Ingredients – lactoferrin products.
• Foodservice Cream – UHT cream.
• Butter and Cream Cheese are TBC. These opportunities are currently being
considered.
• Commodity Powders – whole milk powder, skim milk powder, etc.
PAGE 17 & 18ANNUAL REPORT 2023

SYNLAIT STRATEGY FY 24 – FY 28 (CONTINUED)
KEY ENABLERS
OF EXECUTION
GEOGRAPHIES
GROWTH MARKETS
Singapore
Malaysia
Thailand
New Zealand
Australia
Greater China
Philippines
Vietnam
Indonesia
RIGHT TO WIN
COMPETITIVE ADVANTAGE MODELS
Right to Win is how Synlait differentiates itself from its competitors. We must have an operating model with our farmer suppliers
and customers that sets us apart from our competitors.
PURPOSE
AND CULTURE
MADE WITH
BETTER MILK
COMPETITIVE, TRANSPARENT
FARMGATE MILK PRICE
FAVOURABLE
ADVANCE RATE
AND NO SHARES
DIGITAL TOOLS
AND ON-FARM
SUPPORT
INDUSTRY AND
COMMUNITY
ENGAGEMENT
SPECIALTY
MILK PREMIUMS
LEAD WITH
PRIDE™
1
5
3
7
2
6
4
8
FARMER SUPPLIERS
PURPOSE
AND CULTURE
FOOD SAFETY, QUALITY,
TRACEABILITY AND SURETY OF SUPPLY
NEW ZEALAND
PROVENANCE AND
MARKET ACCESS
BASIC
PRODUCT
PORTFOLIO
ADVANCED
PRODUCT
PORTFOLIO
FLEXIBLE WORLD CLASS
MANUFACTURING FACILITIES
1
5
3
2
4
9
B CORP™ AND
MADE WITH
BETTER MILK
8
DEEP CHANNEL
EXPERTISE
7
CUSTOMERS
BEST IN CLASS
CUSTOMER ENGAGEMENT
6
On-Farm
Excellence
Systems, Tools
and Processes
Best In Class
Customer
Engagement
Disciplined
Product
Innovation
High
Performance
Culture
World Class
Manufacturing
and Supply Chain
Geographies are countries and regions where Synlait
invests resources. These include New Zealand, Australia,
China and selected Southeast Asian markets.
On-Farm Excellence
• Farmer Supplier Cashflow
and Payment System
• Sustainability Enabled via
Lead With Pride™
• Digital Tools and User Experience
• Industry and Community
Engagement
• Farmer Communications and
Engagement
Best In Class
Customer Engagement
• Deep Market Expertise
• Deep Customer Expertise
• Tailored Value Propositions
and Solution Offerings
• Joint Business Planning and
Customer Satisfaction Measurement
• Sales, Pricing, and Customer
Service Capability
• Digital Solutions
Disciplined Product Innovation
• New Product Development (NPD)/
New Technology Development
(NTD) for Advanced Nutrition
• NPD/NTD for Advanced Ingredients
• NPD/NTD for Foodservice/Liquids
• NPD for Ingredients
• Development of Subject Matter
Expertise
• Disciplined Innovation Processes
High Performance Culture
• Synlait Safe (Health, Safety
and Wellbeing)
• Leadership
• Talent and Succession
• Capability and Development
• Reward and Recognition
• Employee Value Proposition
Key Enablers are focus areas across Synlait to ensure we execute with excellence. Our six focus areas are:
Systems, Tools and Processes
• SAP
• Integrated Business Planning
• Business Performance Information
• Strategic Planning, Accountability
and Execution
• Information Services Strategy
and Roadmap
World Class Manufacturing
and Supply Chain
• Food Safety, Quality, Regulatory
and Laboratory
• Integrated Work Systems
• Procurement and Logistics
• Asset Care Strategy
• 10 Year Asset Masterplan
PAGE 19 & 20ANNUAL REPORT 2023

Our success
Synlait launched its internal health and safety initiative
called ‘Synlait Safe’ in November. Designed to inspire staff
to make a meaningful commitment to safety, it focused
on the reason staff want to be safe at work, to get home
safely. Activations, competitions, communications, training,
motivational speakers and mailouts prompt conversations
about the importance of safety.
The impact
Our goal is to Work Safe | Home Safely. By integrating
critical elements of our cognitive behavioural safety
programme (Synlait Safe mindsets), we have achieved a
clear shift in mindset and culture across our workforce.
Since launching Synlait Safe, we have seen our TRIFR
reduce by >30%. It is sitting at 10.6 (FY 22: 14.9). We will
continue working to reach our goal of having no injuries.
SYNLAIT SAFE IS BECOMING
‘HOW WE DO THINGS AT SYNLAIT’
2
Total Recordable Injury Frequency
Rate (TRIFR) has reduced to
10.6
We’re regularly talking
and thinking about our
PB5s
WE ACHIEVED SAMR
RE-REGISTRATION!
1
* PB5: Synlait Safe creates a clear and collective view of our health and safety performance, setting a standard to ensure we all go home to our Personal Big 5 (what and who we
are staying safe for), which we call our PB5.
Our success
Synlait achieved re-registration of The a2 Milk Company’s
Chinese labelled 至初® Infant Formula (stages one, two
and three). Re-registration was a key priority for us this
year, and we were notified of the successful registration
by the State Administration for Market Regulation in
June 2023.
The impact
Re-registration allows Synlait to manufacture and export
this product for the China market until September 2027. It
is pivotal for the ongoing success of the manufacturing and
supply agreement that Synlait and The a2 Milk Company
have. Over the last three years, the project involved Synlait
and The a2 Milk Company team members.
The last financial year was challenging for many, and Synlait
also felt the impact. Here are the ten successes we are proud of
and celebrated at Synlait Day, our staff conference held in June,
which helped us make significant progress in key strategic areas.
TO CELEBRATE
10
SUCCESSES
PAGE 21 & 22ANNUAL REPORT 2023

Our success
We measure the level of employee engagement regularly
across all team members. This is part of our activity to
ensure Synlait continues to be a great place to work.
We have seen a strong lift in our overall employee
engagement ratio, which has increased throughout
the year to 5.7:1 (5.7 engaged people for each actively
disengaged employee) (FY 22: 5.67:1).
Our success
We were thrilled to see our Joyhana UHT Whipping
Cream win the ‘New Product Innovation Award’ at May’s
prestigious China International Bakery Exhibition. The
recognition comes just months after Joyhana was launched
alongside our local partner, Sinodis, in China.
The impact
Across the year, our engagement score has held
consistently between 4.03 to 4.05 (FY 22: 4.05).
The engagement and enthusiasm of Synlait’s people are
key to our future success.
The impact
Joyhana has been extremely well received at local launch
events held across China. We continue to see strong and
increasing demand for the product due to its superior
functional performance and unique properties.
ENGAGEMENT LIFTED
JOYHANA UHT WHIPPING CREAM LAUNCHED
AND WON AN INNOVATION AWARD
64
Employee engagement
ratio increased to
5.7:1
Our engagement
score is currently
4.05
OUR NEW ENTERPRISE RESOURCE
PLANNING SYSTEM WENT LIVE!
5
Our success
We officially switched on our new Enterprise Resource
Planning system on 1 August 2023. Implementing this
software impacted every aspect of our systems and
processes for the better.
The impact
We have over 250 people using the new ERP system
daily, and we are beginning to see the benefits of what a
modern, organisation-wide system like this can bring to
Synlait. Introducing the new ERP system was challenging
but well-supported by our entire team. We have learned
plenty about our internal processes and how to use the
platform through data-driven decision-making.
8
Committed Farmer
Suppliers in team
SYNLAIT FARMER LEADERSHIP
TEAM ESTABLISHED
3
Our success
Synlait established a Farmer Leadership Team of eight
farmer suppliers. These eight farmers are a conduit
between Synlait and our farmer supplier base. The team
provides feedback and direction on Synlait’s strategic
choices and prioritisation of tactics.
The impact
Synlait has regularly connected with the group, and
we have hosted them at each site throughout the year.
Constructive challenge and healthy tension will always be
welcome around this table. By leveraging this team, Synlait
and our farmer supplier base will collectively become
stronger.
PAGE 23 & 24ANNUAL REPORT 2023

60,000
Trees planted this
calendar year
Our success
Since Synlait announced its sustainability strategy in 2018,
we have continued to work towards our goal for our net
business impact to be positive for the planet with our
restorative and regenerative agriculture, manufacturing,
and supply chain processes.
The impact
Being listed on the NZX has significantly lifted our profile
and provided the opportunity for market credibility and
access to raise capital funds to support the company as we
have expanded over the last decade.
The impact
We transitioned Boiler Two at Synlait Dunsandel to use
biomass (wood pellets) as a fuel, enabling a significant
emissions reduction step over time. We have also
progressed with our commitment to planting native trees
through Whakapuāwai, with 60,000 trees to be planted in
the 2023 calendar year.
WE CELEBRATED 10 YEARS LISTED ON NZX
OUR JOURNEY TO NET POSITIVE
FOR THE PLANET IS PROGRESSING
10
8
Boiler 2 transitioned to biomass (wood
pellets) as a fuel source, reducing Synlait
Dunsandel site emissions by approximately
40%
21,194
Metric tonnes of
product shipped
188
Trucks loaded
with 1,186 TEU
19,143
Metric tonnes of
ingredients invoiced
MAY WAS AN AMAYZING
RECORD MONTH!
9
Our success
While the year began with some challenges, the
production and release of product generated strong
momentum in the second half of our financial year
when we achieved a record month in May 2023. During
the month, we had 188 loaded trucks leave our Synlait
Dunsandel site and shipped over 21,000 MT of product.
The impact
The previous record was 16,000 MT. Our ability to hit this
new record was due to the incredible effort of every team
member involved in the process.
Our success
We were pleased to celebrate 10 years of being listed
on the New Zealand Stock Exchange (NZX) in June.
Having Synlait listed as a public company in 2013 was
a key milestone for the company as we were becoming
established as a disruptive industry leader, and it was
important to acknowledge this milestone.
PALMERSTON NORTH
CELEBRATED FIVE YEARS
7
Our success
Synlait has a talented group of 20 research-focused team
members, with 17 working at our Palmerston North office.
The Palmerston North team work on a shared site at
Massey University, selected so we could collaborate on
cutting-edge liquids research. We celebrated five years at
the site in March.
The impact
The celebration allowed us to acknowledge the growth
we have seen, the excellent work produced by this
innovative team, and the incredible contribution they
make to Synlait. The team’s innovations have included
commissioning a UHT pilot plant, commercialising
Joyhana and several consumer beverages, and filing an
Advanced Nutrition patent.
PAGE 25 & 26ANNUAL REPORT 2023

We bring our farmer suppliers together at an annual winter event designed to
update them about what is happening at Synlait and celebrate their successes
at the Dairy Honours Awards. Congratulations to our 2023 award winners!
FARMER SUPPLIER CONFERENCES
AND DAIRY HONOURS AWARDS
DOING MILK
DIFFERENTLY AWARD
BP Dolan Farms Ltd
FOR A HEALTHIER
WORLD AWARD
Dewhirst Land Company
KOTAHITANGA
AWARD
Jersey Oaks Ltd
QUALITY BY
DESIGN AWARD
Align Farms Ltd (Sam Mallard pictured)
DairyHonours
SUPREME LEAD
WITH PRIDE™ AWARD
North Island: Torrens Land Ltd
South Island: K & T Pastoral for
Mt Hutt Dairies Ltd
BEST MILK
QUALITY AWARD
North Island: Green Grass (2003) Ltd
South Island: Lieuwes Abbott Ltd
BEST MILK
QUALITY AWARD
WEIGHTED BY FARM SIZE
South Island: Ngāi Tahu Farming Ltd –
Waimakariri
GREENHOUSE
GAS AWARD
North Island: S and J Brighouse Ltd
South Island: Mount Rivers Ltd for
Mount Rivers Holdings
LOWEST SOMATIC
CELL COUNT AWARD
North Island: Maharee Farms Ltd
South Island: Lieuwes Abbott Ltd
SYNLAIT SAFE
AWARD
North Island: Landcorp Pamu
South Island: Partners in Cream Ltd
for Ngāi Tahu Farming Ltd – Timutimu
Sam Mallard, Align Farms, Farm Manager.
PAGE 27 & 28ANNUAL REPORT 2023

OUR EXECUTIVE LEADERSHIP TEAMOUR BOARD
Naiche Nogueira
Director of Advanced Nutrition
Dr. Suzan Horst
Director of Quality,
Regulatory and Laboratory
Charles Fergusson
Director of On-Farm Excellence
and Business Sustainability
Glenn Laing¹
Director of Manufacturing
Cathy Gamlen²
Director of People and Culture
Paul Mallard
Chief Operating Officer
Abby Ye
President China and
Director of Foodservice
Tim Carter
CEO Dairyworks and
Director of Consumer
Adam Maxwell
Director of Ingredients
Grant Watson
Chief Executive Officer
Rob Stowell
Chief Financial Officer
Zhu Yi (Julia)
Bright Dairy Appointed Director
Paul Washer
Independent Director
Dr. John Penno
Board Appointed Director
Simon Robertson
Independent Chair
Liu Ruibing (Ryan)
Bright Dairy Appointed Director
Paul McGilvary
Independent Director
Hon Ruth Richardson
Bright Dairy Appointed Director
Sihang Yang (Edward)
Bright Dairy Appointed Director
1
Glenn was appointed Acting Director of Manufacturing in March 2023 and permanently appointed to the role in August 2023.
2
Cathy was appointed Director of People and Culture in April 2023 and joined the Synlait team in August 2023.
PAGE 29 & 30ANNUAL REPORT 2023

Sam Mallard, Align Farms Farm Manager,
Heather Donaldson, DairyNZ and Ang Wafer,
Synlait Area Manager.
PAGE 31 & 32ANNUAL REPORT 2023

CFO REVIEW
Rob Stowell
Kia ora shareholders
Below is a detailed summary of Synlait’s
financial result for the 12 months
ended 31 July 2023. In this CFO review
Synlait’s performance is detailed under
our four business units which are:
Advanced Nutrition
Advanced Nutrition volumes fell 5% to 31,971 MT driven by reductions and deferrals of demand. Advanced Nutrition
gross profit per MT decreased significantly to $1,782/MT due to rapid increases in raw materials and manufacturing
costs in the period. Significantly higher than normal inventory write-downs and provisions also impacted margin,
triggering an increased focus on ensuring operational stability. Net production increased 26% to 39,159 MT, driven by
higher base powder manufacture, as we managed volatility in demand in Q4 and positioned ourselves to maximise
processing of raw milk heading into the FY 24 peak milk season.
Our lactoferrin business continues to perform well. Lactoferrin sales decreased 19% to 30 MT, driven by increased
internal consumption to meet customer requirements. Production was in line with expectations.
IngredientsAdvanced
Nutrition
ConsumerFoodserviceTotal
FY 23
Sales Volume (MT)108,85631,97156,999757198,583
Gross Profit ($ millions)54.657.029.0(0.2)140.4
Gross Profit/MT5011,782508(313)707
FY 22
Sales Volume (MT)132,48133,50659,786-225,773
Gross Profit ($ millions)57.573.821.3-152.6
Gross Profit/MT4342,203357-676
% Change
Sales Volume (MT)(18%)(5%)(5%)-(12%)
Gross Profit ($ millions)(5%)(23%)36%-(8%)
Gross Profit/MT16%(19%)42%-5%
Gross profit by business unit
1
FINANCIAL PERFORMANCE
Sales and gross profit performance
Total revenues, including Dairyworks, of $1,603.6 million were down $57.0 million or 3% driven by lower ingredient
commodity prices and reduced sales volumes. Total sales volumes of 198,583 MT were 12% lower than FY 22 due
to higher Advanced Nutrition base powder manufacture which displaced Ingredients production, as well as FY 22
enjoying the benefit of high carryover inventory from FY 21 due to the COVID-19 pandemic. Unforeseen reductions and
deferrals of consumer-packaged Advanced Nutrition demand resulted in sales volumes ending well below expectations.
Production output was also impacted by operational stability issues and adverse weather conditions.
1 Gross profit not attributable to business units is not included.
Whole milk powder, skim milk powder,
anhydrous milk fat, and butter milk
powder.
INGREDIENTS
Consumer-packed nutritional
products, infant formula base powder,
and lactoferrin.
ADVANCED
NUTRITION
UHT cream.
FOODSERVICE
Fresh milk, cream, ready to drink
beverages, and Dairyworks (cheese
and butter).
CONSUMER
PAGE 33 & 34ANNUAL REPORT 2023

Ingredients
Despite not having the same level of FX benefit as in FY 22, margin performance was excellent with the team executing
well on aligning production and sales mix to the SMP/AMF lead bucket. This resulted in margin on a per MT basis
improving 16% to $501/MT.
Ingredients sales were 18% lower at 108,856 MT as higher production of Advanced Nutritional base powders reduced
our ability to process raw milk through our dryers. Sales were also impacted by FY 23 having significantly less carry-over
inventory compared to FY 22 which saw the deferral of sales from FY 21 into FY 22 because of the COVID-19 pandemic.
The impact of lower sales volumes largely offset the benefits of aligning to the lead bucket. This resulted in total gross
margin decreasing by $2.9 million.
After record-high ingredient inventory levels at H1 23 due to ERP implementation challenges, closing inventory finished
down 35% year-on-year, thanks to the excellent efforts of our warehouse and logistics teams.
Consumer Foods
Sales volumes decreased 2,787 MT to 56,999 MT as Dairyworks sold less butter due to a tight butter market. Gross
profit on a per MT basis increased 42% to $508/MT because of the Temuka cheese plant being idled for the full year,
efficiencies gained from the first full year of Dairyworks’ cool store operations, and the impact of pricing lag and lower
overhead costs.
In June we announced our intention to divest Dairyworks and its Temuka assets. While Dairyworks has performed well,
we do not believe it aligns to our strategy and we would need to invest significant capital to take Dairyworks to the next
level. We believe that focus should instead be placed on our Advanced Nutrition and Foodservice (UHT cream) business
units where we have a clear right to win.
Foodservice (UHT cream)
During the year we successfully commercialised our JOYHANA branded UHT cream, which is the product of a
partnership with the international dairy company, SAVENCIA Group. Margin attainment was approximately ($0.2 million)
on sales of 757 MT. We expect this to improve significantly moving into FY 24 and beyond as we ramp up volumes.
Market feedback has been positive, and we are excited about the potential that this new segment holds for us moving
forward.
Milk price and milk supply
Raw milk remains our most significant component of cost of goods sold.
Our final base milk price for the 2022/23 season is $8.22 per kgMS, compared to the 2021/22 base milk price of $9.30
per kgMS. We paid an additional $0.27 per kgMS in incentive and premium payments through a2, Lead With Pride™ and
winter milk payments, increasing the average total milk price to $8.49 per kgMS, compared with $9.59 per kgMS in
2021/22. Our contracted suppliers received a total of $22.9 million in additional value-added premiums in the 2022/23
season, compared to $23.8 million in 2021/22.
We received 83.9 million kgMS from our contracted suppliers, 0.9 million kgMS more than FY 22. Six additional
contracted suppliers contributed to the year-on-year upside; however, this was partially offset by a second consecutive
season of unfavourable weather conditions impacting yields. We sold (net) 7.9 million kgMS over the season, resulting
in an overall 4%, or 2.9 million kgMS, decrease in milk processed in FY 23. Additional contractual milk sales in the North
Island, unexpected plant outages and rephasing of infant base powder production related to the SAMR re-registration led
to increased milk sales in FY 23.
Average reference commodity prices started the 2022/23 season well above historic levels, but they fell steadily across
the season due to weakening Chinese demand and recovering global supplies. The reference basket price fell to
USD$3,640, a 13% decrease vs the 2021/22 season. This decrease is the key contributor to the $1.08 per kgMS decrease
in the average base milk price paid to our suppliers in 2022/23.
Operating expenditure
Selling, general, and administrative (SG&A) expenses including Dairyworks increased $37.0 million to $129.3 million.
Outside of ERP related costs, the most significant drivers were employee costs ($9.8 million), consultancy and legal costs
($4.2 million), distribution costs ($1.9 million), and travel costs ($1.6 million).
Employee and contractor costs increased as we saw significant wage inflation and increased headcount in anticipation of
higher Advanced Nutrition demand, which did not all materialise due to reductions and deferrals of demand. Employee
and contractor costs were also impacted by reduced capitalisation of labour costs as we wrapped up significant projects,
saw the renewal of our executive team, and invested significantly in health and safety. Consultancy and legal costs
increased as we revisited our capital structure, amended our banking facilities, engaged in a significant contract dispute,
and commenced the process of divesting of Dairyworks. Travel costs increased as borders reopened, our business
development teams recommenced travel to key markets, and we approached commissioning of our recent Pokeno
processing upgrade project.
During the year we incurred $17.4 million of costs in connection with our ERP implementation. $6.8 million of this was
incurred during the stabilisation period of the implementation, with an additional $10.6 million of recurring annual costs
(including $6.1 million of depreciation). Costs at Dairyworks were also up $1.7 million driven by the across-the-board
impacts of inflation.
Cost reductions are one of our key priorities as we head into FY 24.
FINANCIAL PERFORMANCE (CONTINUED)
PAGE 35 & 36ANNUAL REPORT 2023

Net financing costs
Net financing costs including Dairyworks increased $17.3 million or 82.4% to $38.3 million. The increase is primarily due
to a significant increase in wholesale interest rates and higher working capital requirements because of implementation
issues with our new ERP system.
Capitalised interest is $1.0 million higher than the prior year with higher interest rates and completion of work on the
Pokeno processing upgrade project. The loss on derecognition of financial assets, the financing cost associated with our
receivables financing programme, also increased due to an increase in wholesale interest rates. Further, interest on lease
liabilities including Dairyworks increased $0.9 million due to entering a new warehouse lease in Auckland to service
increased out-turn Advanced Nutrition demand.
$ million (including Dairyworks)FY 23FY 22¹
Profit before tax(7.3)44.1
Add back: net financing costs38.321.0
EBIT31.065.1
Add back: depreciation and impairment59.766.5
EBITDA90.7131.6
$ millionFY 23FY 22Change
Gross term debt interest*(19.1)(16.6)(2.5)
Less capitalised interest6.65.61.0
Net term funding interest(12.5)(11.0)(1.5)
Working capital and revolving credit interest(15.4)(4.2)(11.2)
Interest received0.30.20.1
Loss on derecognition of financial assets(5.8)(2.3)(3.5)
Net short-term funding interest(20.9)(6.3)(14.6)
Interest on lease liabilities(1.4)(0.7)(0.7)
Synlait finance expense(34.8)(18.0)(16.8)
Dairyworks finance costs(3.5)(3.0)(0.5)
Net finance costs(38.3)(21.0)(17.3)
EBITDA
Earnings before interest, tax, depreciation, and amortisation (EBITDA) including Dairyworks decreased $40.9 million to
$90.7 million.
Foreign exchange
Management of foreign exchange exposure is one of Synlait’s key risks with many product sales being to overseas
markets, creating a primarily USD exposure risk. Our foreign exchange policy seeks to achieve the lowest annual average
New Zealand Dollar (NZD)/USD exchange rate for the year. In FY 23 we achieved a net annual average NZD/USD export
exchange rate of 0.6446 (FY 22: 0.6732).
Earnings per share and return on capital employed
Our reported basic and diluted earnings per share (EPS) including Dairyworks were both (1.96) cents, against basic EPS of
17.62 cents and diluted EPS of 17.58 cents in FY 22. The dilutive shares are basic EPS adjusted for contingently issuable
shares in accordance with the Employee Share Scheme. Synlait also generated a pre-tax return on average capital
employed of 2.7% in FY 23 compared with 5.6% in FY 22.
FINANCIAL PERFORMANCE (CONTINUED)
* Gross term debt interest includes revolving credit facilities, which are categorised as current debt in the financial
statements.
1 FY 22 EBITDA has been restated for a reclassification of research and development tax incentive income from tax to
other income
PAGE 37 & 38ANNUAL REPORT 2023

We also incurred significant cost of $19.8 million in relation to inventory write-downs and provisions for manufacturing
and quality issues – a disappointing $16.2 million increase over the prior year. We consider this level of write-downs to be
unacceptable and are working diligently to ensure that this does not repeat in FY 24.
FY 23FY 22
$ millionMT$ millionMT
Synlait Milk Limited250.336,026*192.332,762*
Dairyworks Limited52.26,705*40.74,576*
Total302.542,731233.037,338
* Inventory not measured in metric tonnes is excluded as not material to our volumes.
Property, plant and equipment
Property, plant, and equipment including Dairyworks at $1,018.6 million, is up $2.7 million. The increase is a
consequence of total capital expenditure of $49.4 million, depreciation of $46.1 million, and net disposals of $0.6
million. The capital expenditure of $49.4 million primarily relates to routine operational capex and the Synlait Pokeno
processing modifications project which was mostly commissioned in July 2023.
Trade and other payables
Trade and other payables including Dairyworks at $323.6 million are up $0.5 million.
Operating cash flows and total net debt
Operating cash flows including Dairyworks were at $39.0 million, down $193.9 million on prior year. The decrease in
cash flow is attributed to the decrease in profitability year-on-year and an increase in inventory. FY 22 operating cash
flows were also significantly higher due to the impact of carry-over inventory from COVID-19 related delays in FY 21.
Total net debt (excluding lease liabilities) at year end, including current and term debt facilities less cash on hand, was
$413.5 million, an increase of $71.6 million.
FINANCIAL POSITION
Overview
Net debt increased $71.6 million, largely driven by increased finance costs and an increase in Advanced Nutritional
base powders to enable us to maximise raw milk processing through peak milk in FY 24.
Our reported net profit after tax loss of ($4.3 million) has decreased total retained earnings to $327.8 million from
$332.1 million. Total shareholders’ equity increased to $790.3 million because of the net movement in hedging reserves
exceeding profit after tax by $42.1 million.
We also successfully refinanced our banking facilities in September and welcomed four new banks into the banking
syndicate. This refinance will give us access to a broader range of services, more capacity, and significant savings. We
appreciate the continued support of our banking syndicate.
Trade and other receivables
At $92.8 million, trade and other receivables including Dairyworks increased by $3.7 million. The balance of receivables
assigned including Dairyworks as at 31 July 2023 was $160.4 million, a decrease of $15.2 million. During the year, two
new Nestle subsidiaries were added to the receivable’s assignment programme.
Inventories
Total inventory holdings including Dairyworks increased 30% to $302.5 million (FY 22: $232.9 million). This was driven
by a $62.4 million (7,503 MT) increase in Advanced Nutrition base powders which will enable us to maximise processing
of raw milk during the peak milk months in FY 24. Raw materials balances (including Dairyworks) decreased slightly
in tonnage by 3% to 17,240 MT, however, total value increased $20.2 million to $116.0 million reflecting higher landed
costs and a change in composition to accommodate production of Advanced Nutrition products. Dairyworks contributed
$11.5 million (1,831 MT) to the overall increase in inventories because of a change in phasing for maturation cheese
replenishment.
PAGE 39 & 40ANNUAL REPORT 2023

Cash outflow from investing activities totalled $61.9 million, a decrease of $3.7 million. A significant proportion of the
spend related to Synlait Pokeno and implementation of our new ERP system. Further, interest paid, and repayment of
lease liabilities totalled $48.7 million, up $18.6 million on prior year.
With net debt of $413.5 million, our gearing (net debt/net debt + equity) is 34.3% (FY 22: 30.0%) and our leverage
(net debt/EBITDA) is 4.6x (FY 22: 2.6x).
Derivatives
At 31 July 2023 Synlait Milk held USD $634.7 million (net), in foreign exchange contracts as detailed in note 19 of the
Financial Statements. These have been placed across a 24-month future period, in accordance with our Treasury Policy.
Additionally, Dairyworks held USD $3.3 million in import foreign exchange and AUD $5.1 million in export contracts.
Given the depreciation in the NZD/USD exchange rate across the last 24 months, we have mark to market unrealised
losses associated with these contracts at year-end of $3.4 million after tax, a movement of $46.1 million after tax. As our
foreign exchange contracts hedge against future USD receipts and payments, this unrealised loss is recognised in other
reserves in equity rather than through the income statement. The impact of these foreign exchange contracts will play
out in the periods in which they mature, and they will form part of our annual average NZD/USD exchange rate in those
periods.
We also have in place a nominal balance of $30.0 million of interest rate swap agreements at year-end (FY 22: $40.0
million) at various weighted average interest rates. The agreements have unrealised mark to market gains of $0.5 million
after tax, a positive movement of $0.7 million after tax on FY 22. The movement is a result of the increase in wholesale
interest rates.
We continue to use dairy commodity derivatives to support the management of the risk of movement in dairy commodity
prices. However, we had no dairy commodity derivatives on hand at balance date (FY 22: NZD $12.9 million).
Most unrealised gains and losses on derivatives detailed above are deferred to the cash flow hedge reserve. Year-on-
year there was a $46.4 million movement in the reserve, with a closing balance of ($49.3 million) in FY 22 to ($2.9 million)
in FY 23.
$ millionFY 23FY 22
Current debt243.758.9
Term debt (carrying amount)179.0295.6
Transaction costs 1.11.9
Cash on hand (including cash held by Dairyworks)(10.3)(14.5)
Total net debt (excluding lease liabilities) 413.5341.9
Funding facilities and covenants
After reporting date, the Group refinanced its syndicated banking facilities. The new funding arrangements are
summarised as follows:
1. Revolving credit facilities of $230 million. These facilities also step down over time with maturity dates between
31 July 2024 and 1 October 2025.
2. Working capital facility of $240 million, maturing 1 October 2024, together with a $10 million on-demand bilateral
facility. This facility is a seasonal facility where the facility limit changes at several times during the term of the facility.
Synlait is required to make a mandatory prepayment of at least $130 million by no later than 31 March 2024.
This is reflected in the above facility limits.
The lenders of Synlait’s new banking syndicate are ANZ Bank, Bank of China, China Construction Bank, HSBC,
and Rabobank.
Synlait has five key bank covenants in place within our new syndicated bank facility agreement. For FY 24, these are:
1. Total shareholder funds of no less than NZD $600.0 million at all times.
2. Working capital ratio of no less than 1.5x at all times.
3. Interest coverage ratio of no less than 2.25x.
4. Leverage ratio of no greater than 3.5x.
5. Senior leverage ratio no greater than 2.25x.
Kind regards
Robert Stowell
CFO
FINANCIAL POSITION (CONTINUED)
PAGE 41 & 42ANNUAL REPORT 2023

MILK PRICEFINANCIAL AND PERFORMANCE METRICS
2018/192019/202020/212021/222022/23
kgMS collected63,438,694 76,550,913 86,812,62482,865,66283,996,987
Average fat %14.914.904.904.934.98
Average protein %3.923.983.973.984.00
Average lactose %4.994.994.984.974.95
Volume of components collected (kg)
Fat 35,270,506 42,252,084 47,954,51545,849,21746,548,849
Protein28,168,188 34,298,829 38,858,10937,016,44437,448,139
Lactose35,894,766 42,977,611 48,760,98546,179,99346,348,501
Component value ($/kg)1
Fat $7.36$8.44$8.73$9.43$7.27
Protein$4.18$4.20$5.02$7.31$8.30
Lactose$1.53$1.67$1.68$2.32$1.87
Component value ratio
Fat 11111
Protein0.5670.4970.5750.7751.142
Lactose0.2080.1980.1930.2460.257
Total paid per component ($’000)
Fat $259,645$356,689$418,541$432,333$338,487
Protein$117,658$143,911$194,875$270,615$310,926
Lactose$54,988$71,819$82,137$107,204$86,698
Volume charge($26,283)($32,747)($40,118)($39,501)($45,656)
Average base milk price ($/kgMS)²$6.40$7.05$7.55$9.30$8.22
Total incentive payment ($’000)$11,531$19,250$23,518$23,802$22,929
Average incentive payment ($/kgMS)³$0.18$0.25$0.27$0.29$0.27
Total average Synlait payment ($/kgMS)⁴$6.58$7.30$7.82$9.59$8.49
This table shows how Synlait takes the milk supplied by our contracted farmer suppliers, values milk components,
and makes a pay-out via the average base milk price.
The 2022/23 milk price has not fully been paid out at the time of annual report release, figures represent what
has been paid and is accrued to be paid.
It also highlights the incentive payments made to our farmer suppliers in addition to the average base milk price.
This information represents payments made in the milk season which runs 1 June to 31 May as opposed to
Synlait’s financial year.
For the recently completed 2022/2023 milk season we paid out an average base milk price of $8.22 per kgMS
with an average additional incentive payment of $0.27 per kgMS.
1
Rounded to two decimal places.
2
Amount paid for components + volume charge/kgMS collected = base milk price.
3
Includes incentives and winter milk premiums.
4
Base milk price + average incentive payment.
Key Financial Metrics (includes results of Dairyworks which has been classified as a discontinued operation)
1
Currency as stated (in millions)FY 19FY 20FY 21FY 22FY 23
Income statement
Revenue 1,024.3 1,302.01,367.31,660.61,603.6
Gross profit 186.3 203.7 67.3146.8144.0
EBITDA
2 6
150.8 169.637.3131.590.7
EBIT
2 6
123.1 122.0(17.7)65.131.0
NPAT 81.2 74.3(28.5)38.5(4.3)
Revenue (USD per MT) 4,3844,4354,1624,9515,205
Gross profit per MT (NZD)1,1741,043308650725
EBIT per MT sold (NZD)
6
776625(81)288156
Net cash from/(used in) operating activities 136.7 103.815.9232.939.0
Balance sheet
Capital employed824.41,128.21,244.01,090.31,203.9
Net operating assets
3
632.4 1,040.51,152.3995.21,205.3
Return on net operating assets
6
21.9%14.6%(1.6%)6.1%2.8%
Net return on capital employed (pre-tax)
6
18.0%12.5%(1.5%)5.6%2.7%
Debt/debt + equity (excl. derivatives)39.3%47.2%38.7%30.0%34.3%
Net debt/EBITDA
5 6
2.2 3.112.92.64.6
Earnings per share 45.33 41.45(13.77)17.62(1.96)
Average FX conversion rate (NZD:USD) 0.6792 0.6651 0.6659 0.67320.6446
Base milk price 6.40 7.057.559.308.22
Total milk price (kgMs)
4
6.58 7.307.829.598.49
Key operational metrics
Sales (MT)
6
Ingredients 98,499 97,561125,914132,481108,856
Nutritionals51,23152,87134,36233,50631,971
Consumer 8,947 44,81858,48359,78656,999
Foodservice ----757
Total sales (MT)158,677195,250218,759225,773198,583
Production (net production) (MT)
6
Ingredients 96,15894,188138,971122,330108,010
Nutritionals50,16563,85720,99031,01639,159
Consumer foods 9,466 44,74455,08852,89453,753
Foodservice ----1,514
Total production (MT)155,789202,788215,049206,240202,436
Milk purchases ('000 kg MS)
Milk purchased from contracted supply 64,189 76,55186,81482,97883,929
Milk purchased from other suppliers 1,877 (6,079)(4,077)(4,044)(7,922)
Total milk purchases ('000 kg MS) 66,066 70,47282,73778,93476,007
¹ The group uses several non-GAAP measures when discussing financial performance. Management believes these measures provide useful insight on the performance of the business,
to analyse trends and to assist stakeholders in making informed decisions.
² EBIT is calculated by excluding financing costs and income tax, with EBITDA also excluding depreciation, amortisation, and non-cash impairment accordingly. A reconciliation of EBIT and
EBITDA is provided in the CFO Review on page 37.
³ Net operating assets includes current assets, property, plant, and equipment, right-of-use assets, and intangible assets. It deducts trade payables and excludes capital work in progress,
derivative balances, loans and borrowings, goodwill, and tax balances.
⁴ Total milk price for Synlait Milk suppliers on standard milk supply contract, includes value and seasonal premiums. This is a milk season reflective payment that runs 1 June to 31 May.
⁵ Net debt calculation excludes lease liabilities.
⁶ Prior period amounts have been restated to conform to current year presentation
PAGE 43 & 44ANNUAL REPORT 2023

48
Income Statement
47
Director’s Responsibility
Statement
53
Notes to the
Financial Statements
52
Statement of
Cash Flows
51
Statement of
Financial Position
99
Financial Risk Management
100 19 Financial Risk
Management
108 20 Financial Instruments
88
Debt and Equity
89 13 Finance Income and
Expenses
90 14 Loans and Borrowings
93 15 Other Non-current
Liabilities
94 16 Share Capital
96 17 Share Based Payments
98 18 Reserves and Retained
Earnings
75
Long Term Assets
76 09 Property, Plant and
Equipment
79 10 Biological Assets
80 11 Intangible Assets
85 12 Leases
49
Statement of
Comprehensive Income
58
Performance
59 01 Discontinued Operation
61 02 Revenue Recognition
62 03 Segment Reporting
65 04 Expenses
66 05 Reconciliation of (Loss)/
Profit After Income Tax
to Net Cash Inflow From
Operating Activities
113
Other
114 21 Income Tax
118 22 Other Investments
120 23 Related Party Transactions
122 24 Contingencies
122 25 Commitments
123 26 Events Occurring After the
Reporting Period
123 27 Other Accounting Policies
50
Statement of
Changes In Equity
67
Working Capital
68 06 Trade and Other
Receivables
72 07 Inventories
74 08 Trade and Other
Payables
124
Auditor’s Report
129
Statutory Information
FINANCIAL STATEMENTS
CONTENTS
ANNUAL REPORT 2023PAGE 45 & 46

ANNUAL REPORT 2023
The accompanying notes form part of and are to be read in conjunction with these financial statements.
The Directors are pleased to present the financial statements for Synlait Milk Limited and its subsidiaries, Synlait Milk
Finance Limited, The New Zealand Dairy Company Limited, Eighty Nine Richard Pearse Drive Limited, Synlait Business
Consulting (Shanghai) Co., Ltd, Dairyworks Limited, Synlait Milk (Holdings) No.1 Limited, and Synlait Milk (Dunsandel
Farms) Limited (together “the Group”) as set out on pages 48-123, for the year ended 31 July 2023.
The Directors are responsible for ensuring that the financial statements present fairly the financial position of the Group
as at 31 July 2023 and the financial performance and cash flows for the year ended on that date.
The Directors consider that the financial statements of the Group have been prepared using appropriate accounting
policies, consistently applied and supported by reasonable judgements and estimates and that all relevant financial
reporting and accounting standards have been followed.
The Directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the Group and facilitate compliance of the financial statements with the Financial
Markets Conduct Act 2013.
For and on behalf of the Board.
Simon Robertson
Chair
25 September 2023
Paul Washer
Independent Director
25 September 2023
DIRECTORS’ RESPONSIBILITY STATEMENT
20232022
Notes$’000$’000
(Restated)
Revenue21,320,7581,397,012
Cost of sales4(1,202,850)(1,272,783)
Gross profit117,908124,229
Other income213,29422,220
Sales and distribution expenses4(41,548)(33,867)
Administrative and operating expenses4(68,306)(44,099)
ERP implementation costs4(6,794)(3,295)
Earnings before net finance costs and income tax14,55465,188
Finance expenses13(29,331)(15,853)
Finance income13281159
Loss on derecognition of financial assets13,6(5,771)(2,264)
Net finance costs(34,821)(17,958)
(Loss)/profit before income tax for the year from continuing operations(20,267)47,230
Income tax benefit/(expense)216,123(6,857)
(Loss)/profit after tax for the year from continuing operations(14,144)40,373
Profit/(loss) after tax from discontinued operations19,852(1,850)
Net (loss)/profit for the year(4,292)38,523
Earnings per share
Basic earnings per share (cents)16(1.96)17.62
Diluted earnings per share (cents)16(1.96)17.58
Attributable to continuing operations:
Basic earnings per share (cents)16(6.47)18.47
Diluted earnings per share (cents)16(6.47)18.43
Attributable to discontinuing operations:
Basic earnings per share (cents)164.51(0.85)
Diluted earnings per share (cents)164.51(0.84)
INCOME STATEMENT
For the year ended 31 July 2023
Comparatives have been restated due to the reclassification of the Research and Development Tax Incentive. Refer to
notes 2 and 21 for further information.
PAGE 47 & 48

PAGE 49 & 50ANNUAL REPORT 2023
The accompanying notes form part of and are to be read in conjunction with these financial statements.The accompanying notes form part of and are to be read in conjunction with these financial statements.
20232022
Notes$’000$’000
(Loss)/profit for the period(4,292)38,523
Items that may be reclassified subsequently to profit and loss
Effective portion of changes in fair value of derivatives designated in cash flow hedges1964,405(79,701)
Exchange differences on translation of foreign operations(19)24
Income tax (expense)/benefit on other comprehensive income21(18,033)22,316
Total items that may be reclassified subsequently to profit and loss46,353(57,361)
Other comprehensive income for the year, net of tax46,353(57,361)
Total comprehensive income for the year42,061(18,838)
Total comprehensive income for the year is attributable to:
Continuing operations32,133(16,937)
Discontinued operations9,928(1,901)
Total42,061(18,838)
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 July 2023
Share
capital
Employee
benefits
reserve
Hedging
reserves
Foreign
currency
translation
reserve
Retained
earnings
Total
equity
GroupNotes$’000$’000$’000$’000$’000$’000
Equity as at 1 August 2021464,7746988,089(2)293,555767,114
Profit/(loss) for the year----38,52338,523
Other comprehensive income
Effective portion of changes in fair value of cash flow hedges19--(79,701)--(79,701)
Exchange differences on translation of foreign operations---24-24
Income tax on other comprehensive income19,21--22,316--22,316
Total other comprehensive income--(57,385)24-(57,361)
Employee benefits reserve16,17-120---120
Total contributions by and distributions to owners-120---120
Equity as at 31 July 2022464,774818(49,296)22332,078748,396
Equity as at 1 August 2022464,774818(49,296)22332,078748,396
(Loss)/profit for the year----(4,292)(4,292)
Other comprehensive income
Effective portion of changes in fair value of cash flow hedges19--64,405--64,405
Exchange differences on translation of foreign operations---(19)-(19)
Income tax on other comprehensive income19,21--(18,033)--(18,033)
Total other comprehensive income--46,372(19)-46,353
Employee benefits reserve16,17-(83)---(83)
Total contributions by and distributions to owners-(83) - --(83)
Equity as at 31 July 2023464,774735(2,924)3327,786790,374
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 July 2023

PAGE 51 & 52ANNUAL REPORT 2023
The accompanying notes form part of and are to be read in conjunction with these financial statements.The accompanying notes form part of and are to be read in conjunction with these financial statements.
STATEMENT OF FINANCIAL POSITION
As at 31 July 2023
STATEMENT OF CASH FLOWS
For the year ended 31 July 2023
20232022
Notes$’000$’000
ASSETS
Current assets
Cash and cash equivalents9,29014,493
Trade and other receivables682,94191,096
Intangible assets112,8052,692
Goods and services tax refundable2,7115,649
Prepayments9,87916,638
Inventories7250,252232,941
Derivative financial instruments19,2016,3396,530
Current tax asset3,271554
Assets held for sale1177,881-
Total current assets555,369370,593
Non-current assets
Property, plant and equipment9992,9961,015,860
Biological assets103,9063,892
Intangible assets1177,74794,467
Goodwill116,02664,189
Other investments22935110
Derivative financial instruments19,206,4271,661
Right-of-use assets1242,20425,205
Total non-current assets1,130,2411,205,384
Total assets1,685,6101,575,977
LIABILITIES
Current liabilities
Trade and other payables8280,954323,123
Loans and borrowings14243,72758,885
Derivative financial instruments19,2026,86255,941
Lease liabilities125,2004,301
Liabilities directly associated with assets classified as held for sale160,611-
Total current liabilities617,354442,250
Non-current liabilities
Loans and borrowings14178,998295,592
Deferred tax liabilities2154,68541,866
Derivative financial instruments19,20-20,573
Lease liabilities1241,69324,750
Other non-current liabilities152,5062,550
Total non-current liabilities277,882385,331
Total liabilities895,236827,581
Equity
Share capital16464,774464,774
Reserves18(2,186)(48,456)
Retained earnings18327,786332,078
Total equity attributable to equity holders of the Group790,374748,396
Total liabilities and equity1,685,6101,575,977
20232022
Notes$’000$’000
Cash flows from operating activities
Cash receipts from customers1,608,1101,711,573
Cash paid for milk purchased(720,926)(804,665)
Cash paid to other creditors and employees(851,255)(675,834)
Net movement in goods and services tax4,486(1,188)
Income tax payments/(refunds)(1,378)3,034
Net cash inflow from operating activities539,037232,920
Cash flows from investing activities
Interest received311170
Acquisition of property, plant and equipment(48,821)(53,855)
Proceeds from sale of property, plant and equipment58430,467
Acquisition of intangible assets(16,074)(39,053)
Proceeds from sale of New Zealand Units3,072-
Livestock trading(197)(3,350)
Acquisition of interest in joint venture(825)-
Net cash outflow from investing activities(61,950)(65,621)
Cash flows from financing activities
Repayment of borrowings-(82,500)
Receipt of borrowings15,777-
Net movement in working capital facility51,589(56,537)
Interest paid(44,306)(26,051)
Repayment of lease liabilities(4,400)(4,079)
Net cash inflow/(outflow) from financing activities18,660(169,167)
Net decrease in cash and cash equivalents(4,253)(1,868)
Cash and cash equivalents at the beginning of the financial year14,49316,020
Effects of exchange rate changes on cash and cash equivalents31341
Cash included in assets held for sale(981)-
Cash and cash equivalents at end of year9,29014,493

The consolidated financial statements (“financial statements”) presented are those of the Group, including Synlait Milk
Limited and its subsidiaries Synlait Milk Finance Limited, The New Zealand Dairy Company Limited, Eighty Nine Richard
Pearse Drive Limited, Synlait Business Consulting (Shanghai) Co., Ltd, Dairyworks Limited, Synlait Milk (Holdings) No.1
Limited, and Synlait Milk (Dunsandel Farms) Limited.
Synlait Milk Limited and its subsidiaries are primarily involved in the manufacture and sale of dairy products.
The parent company, Synlait Milk Limited (“the Company”), is a profit oriented entity, domiciled in New Zealand,
registered under the Companies Act 1993 and listed on the New Zealand Stock Exchange and the Australian Securities
Exchange. Synlait Milk Limited is an FMC reporting entity under the Financial Market Conducts Act 2013 and its financial
statements comply with that Act.
REPORTING ENTITY
The financial statements of the Group have been prepared in accordance with Generally Accepted Accounting Practice.
They comply with New Zealand equivalents to International Financial Reporting Standards (‘NZ IFRS’) and other
applicable Financial Reporting Standards, as applicable for profit oriented entities. The consolidated financial statements
also comply with International Financial Reporting Standards (‘IFRS’).
Certain comparative figures have been reclassified during the year for consistency with the current year presentation and
on account of the Group’s recent implementation of its ERP (Enterprise Resource Planning) system and trivial rounding
differences. These classifications had no effect on the reported results of operations. In addition, comparative period
information has been re-presented to exclude amounts relating to discontinued operations (refer to note 1 for further
information) and restated to reclassify Research and Development Tax Incentive (RDTI) income from tax benefit/(expense)
to other income (refer to notes 2 and 21 for further information).
The financial statements were authorised for issue by the Directors on 25 September 2023.
Basis of measurement
These financial statements have been prepared on the historical cost basis except for certain items as identified in
specific accounting policies.
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary
economic environment in which the entity operates. The financial statements are presented in New Zealand Dollars
($), which is the Company’s functional currency and the Group’s presentation currency, and are rounded to the nearest
thousand ($’000).
BASIS OF PREPARATION
Profit downgrades
On 17 March 2023 the Group announced a revised NPAT guidance range of $15m to $25m as a result of decreased
forecast Advanced Nutrition demand, as well as operational stability, cost, and ERP implementation challenges. On 26
April 2023 the Group announced a further downgrade to a NPAT guidance range of ($5m) to $5m primarily due to further
reductions to forecast Advanced Nutrition demand. As a result, the Group engaged its banking syndicate to obtain
amendments to certain banking covenants for the year ended 31 July 2023, all of which were complied with. Refer to
note 14 for additional information.
Debt refinancing
The Group classified its working capital and revolving debt facilities as current liabilities at 31 July 2023 as it had not yet
finalised the renewal of its banking facilities. The Group has introduced new banks into the banking syndicate as part of
its successful refinance which was executed on 18 September 2023. Refer to note 14 for further information.
Dairyworks divestment
On 2 June 2023 the Group announced the planned sale of its subsidiary, Dairyworks Limited, which specialises in the
packaging and distribution of cheese and butter products. The decision was made in connection with a strategy refresh
which resulted in an increased focus on the Group’s Advanced Nutrition and Foodservice (UHT cream) business units.
The Group expects the sale to occur in the first half of the 2024 financial year. Refer to note 1 for further information.
MATERIAL EVENTS AND OTHER SIGNIFICANT ITEMS
Transactions and balances
Transactions in foreign currencies are translated to the functional currency at the exchange rates at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to
the functional currency at the exchange rate at that date.
Use of accounting estimates and judgements
The preparation of these financial statements in conformity with NZ IFRS requires the Group to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income, and expenses. Actual results may differ from these estimates and assumptions.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected.
Key sources of estimation uncertainty and key judgements relate to presentation of assets and related liabilities which
are held for sale (refer to note 1), derecognition of financial assets (note 6), the assessment of impairment of inventory
(note 7), and the assessment of impairment for goodwill and any other intangible assets (note 11). The individual notes
referred to in the financial statements provide additional information.
NOTES TO THE FINANCIAL STATEMENTS
PAGE 53 & 54ANNUAL REPORT 2023

China State Administration for Market Regulation (SAMR) licence
On 6 June 2023 SAMR notified the Group of the successful re-registration of its SAMR licence which allows the Group
to manufacture infant formula at its Dunsandel facility on behalf of The a2 Milk Company for export into China. The
registration expires in September 2027. $6.4m was capitalised to intangible assets in respect of this registration. Refer to
note 11 for further information.
ERP implementation
On 1 August 2022 the Group commissioned its new ERP system. Post-implementation challenges were encountered
which resulted in significantly reduced sales volumes of ingredient products in the first half of 2023. Export volumes have
now normalised after remediation efforts. The Group has presented costs associated with the implementation separately
in the statement of profit and loss. A total of $60.9m of cost relating to the project was capitalised to intangible assets in
the period. Refer to note 11 for further information.
Pokeno processing upgrade project
The Group has undertaken a series of upgrades to its North Island operations over the previous three financial years in
connection with a significant customer contract which will see the Group commence production of plant-based Advanced
Nutrition products at its Pokeno site. The Group received approval for first lot to stock on 29 July 2023 resulting in the
capitalisation of $71.2m of capital work in progress relating to dryer and wetmix upgrades and additions. $27.7m of spend
relating to the packaging line portion of the project, which was commissioned in August 2023, remained in work in
progress at 31 July 2023. Refer to note 9 for additional information.
A new warehouse lease was also entered into in conjunction with the commencement of commercial production. Refer to
note 12 for further information.
Climate risk
The Group’s operations may be impacted by future climate change. These impacts may be physical (e.g. severe or
unusual weather patterns and events) or transitional (e.g. changes to government regulations or customer and supplier
needs and demands).
The Group regularly assesses its operating environment with regard to the impact of climate change. Specific
consideration has been given in these financial statements to the impact of future climate change on the useful lives
of the Group’s property, plant, and equipment, impairment of intangible assets (NZUs), and carrying value of loans and
borrowings (ESG linked loans). No significant impacts were noted during the period.
GOING CONCERN
In preparing these financial statements, the Directors have conducted a comprehensive assessment of various
uncertainties facing the Group and its ability to continue as a going concern. The Directors have considered several
events, circumstances, and recent developments in making this assessment:
MATERIAL EVENTS AND OTHER SIGNIFICANT ITEMS (CONTINUED)
During the 2023 financial year, the Group announced two material profit downgrades in short succession in March and
April 2023. The reasons for these downgrades are noted in the “Material events and other significant items” section.
The Directors view the events which led to the profit downgrades as events which are not expected to recur and expect
financial performance to improve in the 2024 financial year. This is due, but not limited to: cost reduction initiatives, a
significant increase in plant utilisation following the launch of new Advanced Nutrition products and through increased
Foodservice UHT cream volumes, the recent renewal of the Group’s SAMR license, and a significantly increased focus on
operational stability.
The reduction in profitability and operating cash flows during the 2023 financial year led to higher debt levels and related
interest costs which required the Group to engage its banking syndicate to amend certain debt facility covenants for the
2023 financial year with which the Group complied. At 31 July 2023, the Group’s banking facilities totalling $243.7m were
presented as current due to their maturity date of 1 October 2023 which resulted in total current liabilities exceeding total
current assets by $62.0m.
The Group completed a comprehensive review of its capital structure. On 18 September 2023, the Group executed
new banking facilities with its banking syndicate (refer to note 14 for additional information) which was the first step of
execution of its capital strategy. The new facilities include reducing debt facility limits during their term which are timed
with forecasted cash flows in the 2024 financial year, including the planned sale of Dairyworks which the Directors
consider highly probable to occur within the next 12 months. The upcoming bond maturity on 17 December 2024 has
also been considered in the Group’s recent capital strategy review and in recent discussions with the Group’s banking
syndicate. While a final decision is pending, the Group is likely to refinance the subordinated bond with senior bank
debt facilities, a senior bond, and operating cashflows. To ensure a successful refinance, Synlait is working towards
deleveraging by divesting Dairyworks, managing working capital efficiently, and increasing operational performance.
The Group also expects to comply with all externally imposed covenants and capital requirements.
On 15 September 2023, the Group received notice from The a2 Milk Company purporting to cancel the exclusivity
arrangements under the Nutritional Powders Manufacturing and Supply Agreement (NPMSA) for the a2 Platinum® and
other nutritional products that the company produces. The Group disputes that The a2 Milk Company has the right to
cancel the exclusivity arrangements. The potential impact on forecast sales volumes has been considered and reflected
in the Group’s forecast financial results as well as in the five-year forecast on which goodwill and asset impairment testing
is based (refer to note 11). No significant impacts have been noted.
The Directors have carefully considered the aforementioned facts and circumstances, placing particular emphasis on the
forecast improvement in financial performance, the recently executed banking facilities, anticipated sale of Dairyworks,
expected compliance with covenants and capital requirements attached to those facilities, as well as alternative debt
reduction strategies. Alternative viable debt reduction strategies available to the Group could include additional equity
and/or other forms of debt. The Directors believe there is time to work through these options if required.
While the Directors acknowledge that key future events and requirements noted above inherently have a degree of
uncertainty, the Directors consider that these do not result in material uncertainties related to events or conditions that
may cast significant doubt upon the entity’s ability to continue as a going concern. Accordingly, the financial statements
have been prepared on a going concern basis.
PAGE 55 & 56ANNUAL REPORT 2023

This section covers the Group’s financial performance and includes the
following notes:
01 Discontinued Operation 59
02 Revenue Recognition 61
03 Segment Reporting 62
04 Expenses 65
05 Reconciliation of (Loss)/Profit After Income Tax to Net Cash Inflow
From Operating Activities 66
PERFORMANCE
SIGNIFICANT ACCOUNTING POLICIES
Standards, amendments and interpretations adopted during the period
NZ IAS 37 – Cost of Fulfilling a Contract
On May 14, 2020, the IASB issued amendments to NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
NZ IAS 37 requires that a provision be taken for the costs of fulfilling a contract. The amendments clarify that the costs of
fulfilling a contract comprise both incremental costs (e.g. direct labour and materials) and an allocation of other direct costs
(e.g. an allocation of the depreciation charge for an item of property, plant, and equipment used in fulfilling the contract).
These amendments were effective for the Group from 1 August 2022 and have not had a significant impact on the Group’s
financial statements (onerous contracts provision) as the Group does not incur significant incremental or other direct cost
to fulfil a contract past the point of converting raw materials and work-in-process inventory into finished goods.
Standards, amendments and interpretations to existing standards that are not yet effective
NZ CS 1, CS 2, CRDC – Climate related disclosures
In December 2022, The External Reporting Board (‘XRB’) of New Zealand issued Aotearoa New Zealand Climate
Standards, a new climate related disclosure framework. Three new standards have been issued: NZ CS 1 Climate related
Disclosures, NZ CS 2 Adoption of Climate related Disclosures, and NZ CS 3 General Requirements for Climate related
Disclosures. The guidance is aligned to the International Task Force on Climate related Disclosures (‘TCFD’) disclosure
framework which focuses on governance, strategy, risk management, and metrics and targets.
The Group is currently undertaking a project to build on and leverage its existing sustainability reporting framework in
preparation for the release of its first climate statement under these new standards. This is expected to be issued by the
Group as at 31 July 2024, with mandatory assurance required on the greenhouse gas emissions amounts reported in the
climate statements beginning in 2025.
There are no other standards that are not yet effective and expected to have a material impact on the Group in the current
or future reporting periods and on foreseeable future transactions.
Accounting policies, accounting estimates and judgements that summarise the measurement basis used and are
relevant to the understanding of the financial statements are provided throughout the accompanying notes and are
designated by a shaded area.
The Group’s financial statements consolidate the financial statements of Synlait Milk Limited and its subsidiaries,
accounted for using the acquisition method, and the results of its associates, accounted for using the equity method.
Intercompany transactions and balances between group companies are eliminated upon consolidation.
BASIS OF CONSOLIDATION
PAGE 57 & 58ANNUAL REPORT 2023

01. DISCONTINUED OPERATION
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered highly probable.
Key judgement is applied in determining whether a sale is highly probable.
Non-current assets (or disposal groups) are measured at the lower of their carrying amount and fair value less costs
to sell. A key estimate is applied in determining fair value less costs of disposal.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair
value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset
(or disposal group), but not in excess of any cumulative impairment loss previously recognised.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they
are classified as held for sale.
Non-current assets and liabilities classified as held for sale are presented separately from the other assets in the
balance sheet.
A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale
and that represents a separate major line of business or geographical area of operations and is part of a single
coordinated plan to dispose of such a line of business or area of operations. The results of discontinued operations
are presented separately in the statement of profit or loss.
On 2 June 2023 the Group announced its intention to divest its subsidiary, Dairyworks Limited, which specialises in
the production and sale of consumer-packaged cheese and butter products. The divestment decision was made in
connection with the Group’s recently completed strategy review which resulted in an increased focus on the Group’s
Advanced Nutrition and Foodservice (UHT cream) business units.
The associated assets and liabilities of Dairyworks Limited comprise a disposal group and have been consequently
presented as held for sale. The associated financial performance has been presented as profit/(loss) from discontinued
operations. All profit and loss disclosures have been re-presented to exclude the impact of discontinued operations.
A board approved programme is underway to divest of Dairyworks which is considered highly probable to be completed
before March 2024. Whilst certain routine approvals will be required in order to enable the sale, the Group considers that
these approvals are likely to be granted.
The Dairyworks Limited subsidiary comprises the Dairyworks segment as detailed in note 3. Dairyworks is being
marketed at a selling price based on a valuation multiplier as determined by an independent third party.
20232022
$’000$’000
Revenue282,822263,589
Cost of sales(256,738)(240,902)
Other income3,039415
Sales and distribution expenses(6,768)(5,587)
Administrative and operating expenses(5,889)(5,403)
Impairment of Temuka cheese plant assets-(12,231)
Net finance costs(3,455)(3,030)
Income tax(3,159)1,299
Profit/(loss) from discontinued operation9,852(1,850)
Net cash inflow/(outflow)
Net cash inflow from operating activities32,48846,869
Net cash outflow from investing activities(1,787)(2,406)
Net cash outflow from financing activities(30,090)(45,992)
Net increase/(decrease) in cash generated by the discontinued operation611(1,529)
20232022
$’000$’000
Assets of disposal group classified as held for sale
Cash and cash equivalents981-
Trade, other receivables, and other current assets9,865-
Inventories52,253-
Property, plant, and equipment25,594-
Intangible assets17,093-
Goodwill58,163-
Right of use assets13,932-
Total177,881-
(a) Financial performance and cash flow information are presented below
(b) Disaggregation of assets and liabilities held for sale:
The following assets and liabilities were reclassified as held for sale as at 31 July 2023:
Net cash outflows from financing activities are comprised of principal and interest payments on debt facilities which are
held by the Group and have not been included in the disposal group as the sale transaction is expected to occur on a
debt free basis.
PAGE 59 & 60ANNUAL REPORT 2023

02. REVENUE RECOGNITION
Sales of goods
The Group manufactures and sells a range of milk powder, milk powder related products, fresh milk, UHT milk and
cream, cheese, and butter to customers. Revenue from contracts with customers is recognised when the control
of goods has been transferred to customers, being at the point when the goods are delivered. Delivery of goods is
completed (i.e. the performance obligation is fulfilled) when the goods have been delivered pursuant to the terms
of the specific contract agreed with the customer and the risks associated with ownership have been transferred to
the customer.
Revenue is measured according to the contracted price agreed with customers, which represents expected
consideration received or receivable, net of returns, discounts, and allowances. Revenue is only recognised to the
extent that it is highly probable that a significant reversal will not occur. The payment terms vary depending on the
individual contracts. No deemed financing components are present as there are no significant timing differences
between the payment terms and revenue recognition.
20232022
$’000$’000
(Restated)
Dairy products1,320,7581,397,012
Other income13,29422,220
Total income1,334,0521,419,232
The decrease in other income is due to an $11.9m gain on sale and leaseback included in the prior period which arose on
the sale and leaseback of the Group’s Auckland land and building located at 89 Richard Pearse Drive. $2.5m of benefit
in the comparative period relating to the Research and Development Tax Credit has been reclassified from income tax
(expense)/benefit to other income to better reflect to the underlying nature of the income.
03. SEGMENT REPORTING
(a) Reportable segments
NZ IFRS 8 Operating Segments requires disclosure of information about operating segments, products and services,
geographical areas of operation, and major customers. Information is based on internal management reports, both
in the identification of operating segments and measurement of disclosed segment information.
The Group has identified the following segments:
• Synlait: manufacture and sale of liquid milk and milk powder based products (nutritionals, ingredients, fresh
milk, and ultra heat treatment (‘UHT’) milk and cream products).
• Dairyworks: manufacture and sale of cheese and other products (cheese, butter). The Dairyworks segment
is comprised of the Dairyworks Limited subsidiary which has been treated as a discontinued operation in the
period. Refer to note 1 for additional information.
The accounting policies of the Group have been consistently applied to the operating segments. Net Profit After
Tax (NPAT) is the measure reported to the chief operating decision-maker (“the Board”) for the purposes of resource
allocation and assessment of performance for the Group. A consistent measure has been used for the purpose of
reporting the performance of each operating segment. Inter-segment pricing is determined on an arm’s length basis.
01. DISCONTINUED OPERATION (CONTINUED)
Property, plant, and equipment includes $7.2m of assets, comprised primarily of land and buildings, which are currently
being considered for sale separately to the disposal group.
The proceeds of disposal net of transaction costs are expected to substantially exceed the carrying amount of the
disposal group and accordingly no impairment loss has been recognised.
20232022
$’000$’000
Liabilities of disposal group classified as held for sale
Trade and other payables and other current liabilities(42,680)-
Current tax liabilities(2,990)-
Lease liabilities(14,337)-
Deferred tax liabilities(604)-
Total(60,611)-
PAGE 61 & 62ANNUAL REPORT 2023

(b) Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
(28,451)31 July 202331 July 202331 July 202331 July 2023
$000’s$000’s$000’s$000’s
SynlaitDairyworksEliminationsTotal
External revenue1,320,758282,822-1,603,580
Inter-segment revenue from sale of goods2,363-(2,363)-
Revenue from sale of goods1,323,121282,822(2,363)1,603,580
Net (loss)/profit after tax for the period(14,144)9,852-(4,292)
Finance income28129-310
Finance expenses(29,331)(2,513)-(31,844)
Depreciation and amortisation(55,403)(4,286)-(59,689)
Income tax benefit/(expense)6,123(3,159)-2,964
Total assets1,507,729177,881-1,685,610
Total liabilities(834,625)(60,611)-(895,236)
Net assets673,104117,270-790,374
(28,451)31 July 202231 July 202231 July 202231 July 2022
$000’s$000’s$000’s$000’s
SynlaitDairyworksEliminationsTotal
External revenue1,397,012263,589-1,660,601
Inter-segment revenue from sale of goods1,310-(1,310)-
Revenue from sale of goods1,398,322263,589(1,310)1,660,601
Net profit/(loss) after tax for the period40,373(1,850)-38,523
Finance income15911-170
Finance expense(15,852)(2,878)-(18,730)
Depreciation and amortisation(48,203)(6,038)-(54,241)
Impairment of Temuka cheese plant-(12,231)-(12,231)
Income tax (expense)/benefit(6,857)1,299-(5,558)
Total assets1,401,915174,062-1,575,977
Total liabilities(784,057)(43,524)-(827,581)
Net assets617,858130,538-748,396
03. SEGMENT REPORTING (CONTINUED)
All Group non-current assets are in New Zealand, other than $0.1m (2022: $0.3m) located in China.
(c) Sales by geographical area
The Group operates in one principal geographical area being New Zealand. Although the Group sells to many different
countries, it is understood that a significant portion of both infant nutritional and ingredients sales are ultimately
consumed in China.
The proportion of sales revenue for continuing operations by geographical area is summarised below:
Year ended
31 July 2023
Year ended
31 July 2022
$’000$’000
China13%14%
Rest of Asia25%31%
Middle East and Africa5%4%
New Zealand49%40%
Australia5%7%
Rest of World3%4%
Total100%100%
(d) Major customers
Revenues of 55% (2022: 48%) are derived from the top three external customers.
PAGE 63 & 64ANNUAL REPORT 2023

04. EXPENSES
20232022
$’000$’000
The following items of expenditure are included in cost of sales:
Depreciation and amortisation41,06140,954
Employee and contractor costs80,58563,915
Energy costs25,37621,780
Freight17,76914,327
Milk transport26,98024,673
Repairs and maintenance18,70114,672
Inventory provisions and write-downs19,7963,590
Provision movements included in inventory variances, provisions, and write-downs:
Increase/(decrease) in inventory provision6,057(1,900)
Increase/(decrease) in onerous contract provision2,001(2,101)
The following items of expenditure are included in sales and distribution expense:
Depreciation and amortisation5,9984,319
Employee and contractor costs17,63714,371
Insurance1,6091,482
Freight5,4494,762
Consultancy, legal, and transaction costs2,0301,577
Rent and storage8981,253
The following items of are included in administrative and operating expenses:
Depreciation and amortisation8,5122,733
Employee and contractor costs32,22925,611
Director fees827837
Share based payments expense1115
Consultancy, legal, and transaction costs6,8363,114
Information services and subscriptions11,1667,679
The following items are included in ERP implementation expense:
Consultancy5,4151,108
Employee and contractor costs1,127829
Information services and subscriptions2521,327
PwC services included in administrative and operating expenses*:
Statutory audit fee410299
Half year accounts review7468
Other assurance services220-
Consultancy5231
756398
* 2023 payments to PwC reflect $220k paid to PwC New Zealand for audit services performed on behalf of the Group’s
largest shareholder, Bright Dairy Holding Limited, and $52k for consulting fees incurred in connection with a logistics
review. 2022 payments to PwC reflect $12k for finalisation of reports related to unusual transaction analysis and historic
performance analysis performed prior to appointment as statutory auditors. Training services were also performed in
2022 amounting to $19k.
05. RECONCILIATION OF (LOSS)/PROFIT AFTER INCOME TAX
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
20232022
$’000$’000
Profit/(loss) for the year(4,292)38,523
Non-cash and non-operating items:
Depreciation and amortisation of non-current assets54,20550,030
Depreciation of right-of-use assets5,4844,211
Gain on sale of property, plant and equipment(154)(11,699)
Impairment of property, plant and equipment and intangible assets16512,231
New Zealand Units surrendered1,1772,407
Gain on sale of New Zealand Units(1,769)-
Non-cash share based payments (recovery)/expense(83)120
Interest costs classified as financing cash flow31,84618,730
Interest received classified as investing cash flow(311)(170)
Loss on derecognition of financial assets6,7432,427
Deferred tax movement(4,610)4,749
Loss on derivative financial instruments14318
Unrealised foreign exchange gain(31)(341)
Loss/(gain) on revaluation of biological assets183(558)
Movements in working capital:
(Increase)/decrease in trade and other receivables(1,227)17,284
Decrease/(increase) in prepayments4,900(2,341)
(Increase)/decrease in inventories(69,565)38,003
Decrease in goods and services tax refundable and other current assets4,4861,312
Increase in trade and other payables11,47456,795
Decrease in current tax assets2731,189
Net cash inflow from operating activities39,037232,920
PAGE 65 & 66ANNUAL REPORT 2023

WORKING CAPITAL
The working capital section gives information about the short-term assets and
liabilities of the Group. This section includes the following notes:
06 Trade and Other Receivables 68
07 Inventories 72
08 Trade and Other Payables 74
06. TRADE AND OTHER RECEIVABLES
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary
course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are
classified as non-current assets.
Impairment
The Group recognises a loss allowance for expected credit losses (“ECL”) on trade and other receivables. The
Group measures the provision for ECL using the simplified approach to measuring ECL which uses a lifetime
expected loss allowance for all trade receivables. The Group’s credit loss model requires the Group to account for
expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in
credit risk since initial recognition of the financial assets. Therefore, it is no longer necessary for a credit event to
have occurred before credit losses are recognised.
The model is based on the Group’s historical credit loss experience, adjusted for factors that are specific to the
debtors, general economic conditions, and an assessment of both the current as well as the forecast direction of
conditions at the reporting date.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the
expected life of a financial instrument. The expected credit loss is estimated as the difference between all
contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at the original effective interest rate.
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial
difficulty and there is no reasonable and realistic prospect of recovery.
Furthermore, other impairment losses on an individual basis are determined by an evaluation of the exposures
on an instrument-by-instrument basis. All individual instruments that are considered significant are subject to this
approach.
Credit Risk Management
The Group activities expose it to credit risk which refers to the risk that a counterparty will default on its contractual
obligations resulting in financial loss to the Group. Trade and other receivables are potentially subject to credit risk. The
Group performs credit evaluations on trade customers. The Group continuously monitors the credit quality of its major
receivables and does not anticipate non-performance of those customers, nor has there been historical non-performance
of these customers. The Group also maintains strict controls for any credit reviews such as credit increases.
The receivables assignment processes ensure that the Group’s trade receivables are materially managed in an efficient
and effective manner.
PAGE 67 & 68ANNUAL REPORT 2023

20232022
$’000$’000
Trade receivables78,02185,573
Provision for doubtful and impaired receivables(2,588)(3,658)
Net trade receivables75,43381,915
Other receivables7,5089,181
Total receivables82,94191,096
The carrying amount of financial assets recorded in the financial statements represents the Group’s maximum exposure to
credit risk.
Included in trade receivables are debtors which are past due at balance date, as payment was not received within 30
days, and for which no provision has been made as there has not been a significant change in credit quality and the
amounts are still considered fully recoverable. No collateral is held over these balances and trade credit insurance cover
was not obtained in respect of these receivables. Interest is not charged on overdue debtors.
In the past seven financial years, the Group has not written off any bad debts, although it has recognised provisions for
debts when collection was considered doubtful. The historical analysis of bad debts on a customer basis assists in the
determination of any increases in credit risk since initial recognition. There are no significant credit risk concentrations
as at 31 July 2023. Three customers represent 63% of the overdue receivables. There were no other forward-looking
indicators to indicate increases in credit risk.
For cash and cash equivalents the Group has determined that all bank balances have low credit risk at each reporting
period as they are held by reputable international banking institutions.
The Group has not changed its overall strategy regarding the management of risk from 2022.
06. TRADE AND OTHER RECEIVABLES (CONTINUED)
(a) Impaired receivables
As at 31 July 2023, trade receivables of $7.9m were overdue (2022: $12.1m). These relate to several independent
customers for whom there is no recent history of default. The majority has been collected except for $2.5m which has
been allowed for and $0.6m which remains unpaid and is expected to be collected in the 2024 financial year.
The aging analysis of these overdue trade receivables is as follows:
20232022
$’000$’000
Overdue by
0 to 30 days3,6385,674
30 to 60 days10978
Over 60 days4,2285,428
Total overdue trade receivables7,87612,080
(b) Allowance for bad and doubtful receivables
The Group has recognised a $0.7m loss in relation to provisions raised for potentially unrecoverable trade receivables
during the year (2022: $1.0m). This loss relates to receivables which are in dispute and is unrelated to customer default or
credit risk. The Group has also recognised a loss of $0.4m for estimated receivables impairment under NZ IFRS 9 Financial
Instruments (2022: $0.2m).
(c) Trade and other receivables
Accounts receivable are amounts incurred in the normal course of business.
Receivables denominated in currencies other than the functional currency comprise NZD $58.7m (2022: NZD $50.7m)
of USD and AUD denominated trade receivables.
PAGE 69 & 70ANNUAL REPORT 2023

(d) Derecognised financial assets
The Group has derecognised trade receivables that have been sold to two banks under the terms of underlying
receivables purchase agreements. The Group routinely assess the terms of the agreements and has determined
that substantially all the risks and rewards have been transferred to the banks. Receivables selected for assignment
are with customers with strong credit ratings and good payment histories. This results in immaterial volatility in the
present value of future cash flows in relation to assigned receivables under the various scenarios detailed in the
terms of the four agreements. An evaluation of external evidence of credit risk has also been performed for each
customer. The Group has $144.2m of receivables assigned as at 31 July 2023 (2022: $175.6m).
The Group has assessed its continuing involvement in the assigned receivables and determined that the fair value
of continuing involvement is immaterial. The Group reassesses the facility for qualification for derecognition at
each reporting date, when the terms of the facility are amended, and assesses each new customer at the initial
assignment of a receivable.
The loss on derecognition for the period of $5.8m (2022: $2.4m) arising from derecognition of assigned receivables
is the discount paid to the banks for acquiring these receivables.
06. TRADE AND OTHER RECEIVABLES (CONTINUED)07. INVENTORIES
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and where
applicable, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being
allocated based on normal operating capacity. Cost is determined on a weighted average basis and in the case
of manufactured goods, includes direct materials, labour and production overheads. Net realisable value is the
estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated
costs necessary to make the sale.
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous
contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received under it.
Key judgement is applied in assessing inventory impairment, and therefore net realisable value of inventory.
Impairment is tested in three ways, stock provision, onerous contracts provision, and inventory impairment. The
stock provision considers the condition of inventory and therefore requires a high level of judgement, whereas the
onerous contracts and impairment calculations are largely formulaic.
The stock provision tests for the physical impairment of both raw materials and finished goods. Physical impairment
can be for a variety of reasons, including damage, expiry, or obsolescence. Judgement is required as often
indicators of impairment can be mitigated through further investigation or rework meaning that no write down to net
realisable value is required. The Group consider historical rework process results and future rework plans in making
that judgement.
Estimates are required in relation to net realisable value, which is the estimated selling price in the ordinary course
of business, less the estimated costs of completion and selling expenses. Net realisable value is determined
by reference to historic achieved market prices, future contracted sales and global dairy trade auction results.
Reviewing the net realisable values is carried out by the Group on a monthly basis, using judgement in determining
expected future proceeds based on current indicators of the condition of inventory.
A key estimation in determining inventory cost is the Monthly Milk Price which is derived from a forecast milk price
for the year. The Monthly Milk Price forms a key component of the product cost through the year.
PAGE 71 & 72ANNUAL REPORT 2023

20232022
$’000$’000
Raw materials
Raw materials at cost79,49794,777
Raw materials at net realisable value-997
79,49795,774
Work in progress
Work in progress at cost111,52856,541
Work in progress at net realisable value1,062195
112,59056,736
Finished goods
Finished goods at cost52,72575,965
Finished goods at net realisable value5,4404,466
58,16580,431
Total inventories250,252232,941
Raw material inventories at $79.5m (12,245 MT) have decreased from prior year (2022: $95.8m, 17,738 MT) primarily
due to the reclassification of Dairyworks raw materials inventory to assets held for sale, offset by higher holdings of raw
materials for use in the production of Advanced Nutrition products.
Work in progress inventories at $112.6m (14,664 MT) have increased (2022: $56.7m, 7,934 MT) due to higher holdings of
Advanced Nutrition base powders to enable production in peak milk months in the 2024 financial year.
Finished goods have decreased to $58.2m (9,117 MT), (2022: $80.4m, 11,666 MT). The decrease is primarily due to the
reclassification of Dairyworks finished goods inventory to assets held for sale.
The cost of inventories recognised as an expense during the year was $1,158.2m (2022: $1,206.0m). The cost of
inventories recognised as an expense includes $19.8m (2022: $3.6m) in respect of write downs of inventory to net
realisable value. The increase is due to various operational stability challenges which were experienced in the year.
The total inventory provision as at reporting date was $9.6m, of which $5.9m related to finished goods, $1.3m related to
work in progress and $2.4m related to raw materials (2022: $6.2m, $2.2m related to finished goods, $0.7m related to
work in progress and $3.3m related to raw materials).
Onerous contracts provision as at reporting date was $2.0m (2022: $nil) relating to future shipments of downgrade
product.
08. TRADE AND OTHER PAYABLES
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or
less otherwise, they are presented as non-current liabilities.
Trade and other payables are recognised initially at fair value plus any directly attributable transaction costs and
are subsequently measured at amortised cost using the effective interest method. Payables that are settled within
a short duration are not discounted.
20232022
$’000$’000
Trade payables143,308140,455
Accrued expenses123,939168,512
Employee entitlements13,70714,156
Total trade and other payables280,954323,123
Payables denominated in currencies other than the functional currency comprise NZD $39.4m (2022: NZD $38.5m) of
USD, EUR, GBP, RMB, SGD, and AUD denominated trade payables and accruals.
07. INVENTORIES (CONTINUED)
PAGE 73 & 74ANNUAL REPORT 2023

LONG TERM ASSETS
The assets section provides information about the long-term investments
made by the Group to operate the business and generate returns to
shareholders. This section includes the following notes:
09 Property, Plant and Equipment 76
10 Biological Assets 79
11 Intangible Assets 80
12 Leases 85
09. PROPERTY, PLANT AND EQUIPMENT
Recognition and measurement
Property, plant and equipment are initially measured at cost less accumulated depreciation.
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to
a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site
on which they are located where the Group has an obligation to remove and restore.
When a self-constructed asset meets the definition of a qualifying asset under NZ IAS 23 Borrowing Costs,
borrowing costs directly attributable to the construction of the asset are capitalised until such a time as the asset is
substantially ready for its intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
When major components of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items of property, plant and equipment.
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the
item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost
can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in
profit or loss as incurred.
Depreciation
Depreciation of property, plant and equipment is recognised in profit or loss on a straight-line basis over the
estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated.
Capital work in progress is not depreciated. The total cost of this work is transferred to the relevant asset category
on the completion of the project and then depreciated.
Estimation and judgement is also required in the selection and application of useful lives. It is the Group’s best
estimate that the useful lives adopted adequately reflect the flow of resources and the economic benefits required
and derived in the use and servicing of property, plant, and equipment.
The estimated useful lives for the current and comparative periods are as follows:
• Buildings 10-60 years
• Plant and equipment 3-35 years
• Fixtures and fittings 2-25 years
Depreciation methods, useful lives and residual values are reassessed at each reporting date.
PAGE 75 & 76ANNUAL REPORT 2023

Impairment
Estimation and judgement is required in the impairment of property, plant, and equipment. The Group estimates or
exercises judgement in assessing indicators of impairment, forecasting future cash flows, and determining other
key assumptions used for assessing fair values (less costs of disposal) or value in use.
LandBuildingsPlant
and
equipment
Fixtures
and
fittings
Capital work
in progress
Total
$’000$’000$’000$’000$’000$’000
Cost
Balance as at 1 August 202160,655324,175776,12128,61856,4171,245,986
Additions----61,52961,529
Reclassification/transfer-2914,308848(15,185)-
Impairment--(11,865)(16)(350)(12,231)
Disposals(3,890)(8,688)(1,763)(510)(119)(14,970)
Balance as at 31 July 202256,765315,516776,80128,940102,2921,280,314
Balance as at 1 August 202256,765315,516776,80128,940102,2921,280,314
Additions----48,14448,144
Reclassification/transfer-14,99477,6803,175(95,849)-
Impairment--(164)--(164)
Disposals-(4)(5,464)(3,488)-(8,956)
Transfer to assets held for sale(1,350)(4,614)(21,186)(3,965)(2,170)(33,285)
Balance as at 31 July 202355,415325,892827,66724,66252,4171,286,053
Accumulated depreciation
Balance as at 1 August 2021-36,661170,74111,435-218,837
Depreciation (note 4)-7,12035,9664,113-47,199
Disposals-(331)(1,019)(232)-(1,582)
Balance as at 31 July 2022-43,450205,68815,316-264,454
Balance as at 1 August 2022-43,450205,68815,316-264,454
Depreciation (note 4)-7,09435,2173,767-46,078
Disposals-(4)(5,104)(3,413)-(8,521)
Transfer to assets held for sale-(1,079)(6,851)(1,024)-(8,954)
Balance as at 31 July 2023-49,461228,95014,646-293,057
Carrying amounts
As at 31 July 202256,765272,066571,11313,624102,2921,015,860
As at 31 July 202355,415276,431598,71710,01652,417992,996
09. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
(a) Impairment
During the period, property, plant, and equipment was examined for impairment. A $0.2m (2022: $12.2m) impairment
charge has been recognised to reflect the write-down of select assets to the higher of their fair value less costs
of disposal (FVLCOD) and value-in-use. In addition, depreciation expense includes $0.9m relating to accelerated
depreciation of assets which have been determined to no longer be of use to the Group. The prior period charge of
$12.2m is the result of the Group’s decision to continue idling its Temuka cheese plant while it evaluated plans for the
resumption of operations. There has been no further impairment charge or reversal of impairment in the current period.
The plant’s assets, which are comprised primarily of land and buildings, are now for sale and included within assets held
for sale. Refer to note 1 for further information.
(b) Capital work in progress
Capital work in progress includes capital expenditure projects until they are commissioned and transferred to property,
plant and equipment. Capital work in progress of $52.4m is lower than 2022 ($102.3m) due primarily to the capitalisation
of $71.2m of work in progress spend relating to the Group’s Pokeno processing upgrade project. The dryer and wetmix
kitchen modification portion project was commissioned in July 2023. $27.7m of spend relating to the packaging line
portion of the project, which was commissioned in August 2023, remained in work in progress at 31 July 2023. The
balance of work in progress comprises of routine capital expenditure.
(c) Capitalised borrowing costs
During the year, the Group has capitalised borrowing costs amounting to $6.6m (2022: $5.6m) on qualifying assets.
Interest has been capitalised at the rate at which borrowing has been specifically drawn to fund the qualifying asset. In
the year, borrowing costs were capitalised primarily for the Pokeno processing upgrade project.
PAGE 77 & 78ANNUAL REPORT 2023

11. INTANGIBLE ASSETS
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess of the cost of the acquisition over the
net of the fair values of the assets and liabilities of the subsidiaries acquired. Goodwill is tested for impairment
annually and is carried at cost as established at the date of acquisition of the subsidiary, less accumulated
impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to cash-generating units (CGU) that are expected to
benefit from the business combination in which the goodwill arose. The recoverable amount of CGUs is the higher
of fair value less costs to sell and value in use. If this recoverable amount is less than the carrying amount of the
CGU an impairment loss is recognised immediately in the profit and loss, and it is not subsequently reversed.
Brands
Purchased brands have been assessed as indefinite life intangible assets, after considering factors such as the
expected use of the assets, the period of legal control, the typical product life cycle of these assets, the industry in
which the assets are operating, and the level of maintenance expenditure required. Purchased brands are initially
recognised at fair value if acquired as part of a business combination, and are tested for impairment annually, or
more frequently if there are any indicators of impairment, on the same basis as goodwill.
Patents, trademarks and other rights
Separately acquired patents, trademarks, and other rights are shown at historical cost. Patents, trademarks,
and other rights have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is
calculated using the straight-line method to allocate the cost of patents, trademarks, and other rights over their
estimated useful lives of 4 to 20 years.
Computer software
Costs associated with maintaining computer software programmes are recognised as an expense as incurred.
Development costs that are directly attributable to the design, testing, and implementation of identifiable and
unique software products controlled by the Group are recognised as intangible assets. Amortisation is calculated
using the straight-line method to allocate the cost of computer software over an estimated useful life of 4 years to
10 years.
New Zealand Units (NZU)
New Zealand Units are purchased to offset carbon emissions under the New Zealand Emissions Trading Scheme.
The units are measured at cost and expensed on a first-in first-out basis. Units are surrendered during the year to
meet our obligations under the New Zealand Emissions Trading Scheme.
10. BIOLOGICAL ASSETS
Biological assets comprise livestock (dairy cows) and are measured at fair value less costs to sell at both initial
recognition and at the end of each reporting period. Changes in the fair value of biological assets are recognised in
profit or loss. The fair value of biological assets is determined by an independent valuer with reference to local area
market prices at the end of each reporting period. The fair value measurement of livestock is facilitated by grouping
livestock by age and type. All of the Group’s biological livestock assets are classified as bearer biological assets.
20232022
$’000$’000
Balance as at 1 August3,892-
Purchases9293,334
Births, deaths, and other movements85-
Sales(816)-
Gain/(loss) arising from changes in fair value less selling costs(184)558
Balance as at 31 July3,9063,892
As at 31 July 2023 there were 2,372 dairy cows on hand (2022: 1,851). The dairy cows are used for the purposes of
producing milk to be consumed in the Group’s milk processing operations.
PAGE 79 & 80ANNUAL REPORT 2023

Impairment of non-financial assets
The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether
there is any indication of impairment.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its recoverable amount.
A CGU is the smallest identifiable asset group that generates cash flows that are largely independent from other
assets and groups.
Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill
allocated to the units and then to reduce the carrying amount of any other assets in the unit (or group of units) on a
pro rata basis.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
Impairment losses are recognised in profit or loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss has been recognised. An impairment loss in relation to goodwill is not reversed.
11. INTANGIBLE ASSETS (CONTINUED)
GoodwillBrandsPatents,
trademarks
and other
intangibles
Computer
software
Intangibles
in progress
New
Zealand
Units
Total
$’000$’000$’000$’000$’000$’000$’000
Cost
Balance as at 1 August 202164,18916,5692,01515,23031,65810,057139,718
Additions----31,6017,53239,133
Reclassification/transfer--2631,077(1,340)--
Disposals---(891)--(891)
Surrenders-----(2,407)(2,407)
Balance as at 31 July 202264,18916,5692,27815,41661,91915,182175,553
Balance as at 1 August 202264,18916,5692,27815,41661,91915,182175,553
Additions----12,877-12,877
Reclassification/transfer--6,42767,791(74,164)-54
Disposals---(4,787)(39)(1,302)(6,128)
Surrenders-----(2,979)(2,979)
Transfer to assets held for sale(58,163)(16,569)(91)(1,359)--(76,182)
Balance 31 July 20236,026-8,61477,06159310,901103,195
Accumulated amortisation
Balance as at 1 August 2021--1,06611,120--12,186
Amortisation (note 4)--3722,460--2,832
Disposals---(813)--(813)
Balance 31 July 2022--1,43812,767--14,205
Balance 1 August 2022--1,43812,767--14,205
Amortisation (note 4)--4167,711--8,127
Disposals---(4,785)--(4,785)
Transfer to assets held for sale--(47)(883)--(930)
Balance as at 31 July 2023--1,80714,810--16,617
Carrying amounts
Year ended 31 July 2022
Current-----2,6922,692
Non-current64,18916,5698402,64961,91912,490158,656
Closing net book value64,18916,5698402,64961,91915,182161,348
Year ended 31 July 2023
Current-----2,8052,805
Non-current6,026-6,80762,2515938,09683,773
Closing net book value6,026-6,80762,25159310,90186,578
The decrease in intangibles in progress is due to the capitalisation of the group’s ERP system on 1 August 2022 and
SAMR license on 6 June 2023. The ERP system is being depreciated over a useful life of 10 years and the SAMR license
over a useful life of 4 years.
During the year, excess NZUs with a cost of $1.3m were sold for proceeds of $3.1m, resulting in a gain of $1.8m which is
included in other income.
PAGE 81 & 82ANNUAL REPORT 2023

(a) Impairment tests for indefinite life intangibles
As at 31 July 2023 the Group has determined that there is no impairment of any CGU’s containing goodwill.
For the purposes of goodwill impairment testing, goodwill has been allocated to two CGU groups; the Synlait Milk CGU
(nutritionals, ingredients, fresh milk, UHT milk products) and Dairyworks CGU (cheese, butter).
At 31 July 2023, $58.2m (2022: $58.2m) of goodwill and $16.6m (2022: $16.6m) of brand assets were allocated to the
Dairyworks CGU and included within assets held for sale. $6.0m (2022: $6.0m) of goodwill and $nil (2022: $nil) of brand
assets were allocated to the Synlait Milk CGU.
The value-in-use calculation uses five-year future cash flows based on Board approved business plans and is discounted
based on a CGU specific weighted average cost of capital (WACC) as determined by an independent third party. Based
on projected future cash flows, the Group has determined that the recoverable amount of each CGU exceeds its carrying
amount and therefore goodwill is not impaired. The business plans were modelled using the following key assumptions:
20232022
Synlait CGU
Annual revenue growth rates within forecast operating cashflow3.9% - 11.8%1.3% - 11.8%
Allowance for increase in expenses within forecast operating cash flow1.5% - 8.8%0.8% - 8.2%
Post-tax discount rate9.2%8.1%
Pre-tax discount rate11.8%10.4%
Terminal growth rate2.0%2.0%
Dairyworks CGU
Annual revenue growth rates within forecast operating cashflow3.7% - 7.9%4.2% - 21.9%
Allowance for increase in expenses within forecast operating cashflow0.7% - 8.1%3.7% - 22.0%
Post-tax discount rate8.6%7.5%
Pre-tax discount rate11.5%9.5%
Terminal growth rate2.0%2.0%
20232022
Annual revenue growth rates5.1% - 12.6%4.9% - 22.1%
Allowance for increase in expenses2.0% - 4.0%2.0% - 4.0%
Royalty rate3.75% - 4.25%3.75% - 4.25%
Pre-tax discount rate13.5%11.5%
Terminal growth rate2.0%2.0%
Change in key assumptionDecrease in headroom
0.5% increase in discount rate($109.1m)
1% decrease in terminal growth rate($155.7m)
15% reduction within forecast operating cash flow($356.6m)
The range of annual revenue growth rates and allowance for increase in expenses is primarily attributable to the impact
of higher commodity prices and resulting sales prices and reflect past experience and management's future expectations
for the business. The terminal growth rate reflects the long term expected growth rate for New Zealand.
At 31 July 2023 the recoverable amount of the Synlait CGU exceeded its carrying amount by $373.4m. The Group has
carried out a sensitivity analysis and determined the following changes in key assumptions in isolation across the entire
forecast period to be reasonably possible:
The Group has carried out a sensitivity analysis and believes that any reasonably possible change in the key assumptions
would not cause the carrying amount of the brands to exceed or be near to their recoverable amount.
11. INTANGIBLE ASSETS (CONTINUED)
For the Dairyworks CGU any reasonably possible change in the key assumptions would not cause the carrying amount of
the Dairyworks CGU to exceed or be near to its recoverable amount.
Indefinite life intangibles, which is comprised entirely of brands, have been tested using the relief from royalty method.
Brand royalty rates for the year ended 31 July 2023 are based on a percentage of revenue. The impairment testing was
modelled using the following key assumptions:
PAGE 83 & 84ANNUAL REPORT 2023

12. LEASES
Measurement of right-of-use assets and lease obligations
Right-of-use assets are initially measured equal to the corresponding present value of the remaining lease liability.
Subsequent additions are measured at the initial amount of the lease obligation adjusted for any lease payments
made at, or before, the commencement date, plus any initial direct costs incurred, less any lease incentives
received.
The ROU asset is subsequently depreciated on a straight-line basis over the shorter of the term of the lease, or
the useful life of the asset determined on the same basis as the Group’s property, plant and equipment. The ROU
asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease
obligation.
Measurement of lease obligations
The lease obligation is initially measured at the present value of lease payments remaining at the lease
commencement date, discounted using the Group’s incremental borrowing rate. Lease payments included in the
measurement of the lease obligation, when applicable, may comprise fixed payments, variable payments that
depend on an index or rate, amounts expected to be payable under a residual value guarantee and the exercise
price under a purchase, extension or termination option that the Group is reasonably certain to exercise.
The lease obligation is subsequently measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an index or rate, if there
is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or
if the Group exercises a purchase, extension or termination option. When the lease obligation is remeasured, a
corresponding adjustment is made to the carrying amount of the ROU asset.
The Group does not recognise ROU assets and lease obligations for short-term leases that have a lease term of
twelve months or less or for leases of low-value assets. Payments associated with these leases are recognised as
an operating expense on a straight-line basis over the lease term within costs and expenses on the consolidated
income statement. The Group has also elected to apply a single discount rate to portfolios of leases with
reasonably similar characteristics.
BuildingsPlant and
equipment
Total
Right-of-use assets$’000$’000$’000
Cost
Balance as at 1 August 202118,2891,38919,678
Additions and acquisitions9,0251859,210
Additions through sale and leaseback11,390-11,390
Sale and leaseback adjustment(5,186)-(5,186)
Disposals(1,065)(342)(1,407)
Foreign exchange differences50-50
Balance as at 31 July 202232,5031,23233,735
Balance as at 1 August 202232,5031,23233,735
Additions and acquisitions34,4222,25836,680
Sale and leaseback adjustment(167)-(167)
Disposals-(276)(276)
Foreign exchange differences(38)-(38)
Transfer to assets held for sale(16,952)(1,440)(18,392)
Balance as at 31 July 202349,7681,77451,542
Accumulated Depreciation
Balance as at 1 August 20215,1285325,660
Sale and leaseback adjustment(432)-(432)
Disposals(1,065)(304)(1,369)
Depreciation4,2973464,643
Foreign exchange differences28-28
Balance as at 31 July 20227,9565748,530
Balance as at 1 August 20227,9565748,530
Sale and leaseback adjustment(519)-(519)
Disposals-(183)(183)
Depreciation5,3586456,003
Foreign exchange differences(33)-(33)
Transfer to assets held for sale(3,961)(499)(4,460)
Balance as at 31 July 20238,8015379,338
Carrying amounts
Balance as at 31 July 202224,54765825,205
Balance as at 31 July 202340,9671,23742,204
In May 2023, the Group entered into a lease for a warehouse premises located at 9 Jerry Green Street in Auckland.
The warehouse will be used to meet storage requirements for new Advanced Nutrition products launching in the 2024
financial year and to consolidate Auckland warehouse operations, allowing for the surrender of an existing lease located
at 81 Westney Road. The lease term is for 9 years with annual payments of $4.7m increasing at a rate of 3.5% annually.
The lease has resulted in the recognition of a $34.4m right of use asset and corresponding lease liability determined by
applying an incremental borrowing rate of 7.6%.
PAGE 85 & 86ANNUAL REPORT 2023

20232022
$’000$’000
Lease obligations
Contractual, undiscounted cash flows associated with the Group’s lease obligations are as follows:
Within one year8,2545,718
Between one and five years27,81720,668
Beyond five years26,3159,301
Total undiscounted lease obligations62,38635,687
Discounted lease obligations recognised on the Group’s consolidated balance sheet are as follows:
Current5,2004,301
Non-current41,69324,750
Total discounted lease obligations46,89329,051
Interest expense on lease obligations for the year ended 31 July 2023 was $2.2m (2022: $0.7m) and is included in
finance expense. Operating lease expense relating to short-term and low-value leases not included in the measurement
of lease obligations for the year ended 31 July 2023 is $1.3m (2022: $1.4m). The Group’s weighted average cost of
borrowing at 31 July 2023 was 7.00% (2022: 5.13%).
DEBT AND EQUITY
The debt and equity section gives information about the Group’s capital
structure and financing costs related to this structure. This section includes
the following notes:
13 Finance Income and Expenses 89
14 Loans and Borrowings 90
15 Other Non-current Liabilities 93
16 Share Capital 94
17 Share Based Payments 96
18 Reserves and Retained Earnings 98
12. LEASES (CONTINUED)
PAGE 87 & 88ANNUAL REPORT 2023

13. FINANCE INCOME AND EXPENSES
Interest income is recognised using the effective interest method. When a loan or receivable is impaired, the Group
reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the
original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest
income on impaired loans and receivables is recognised using the original effective interest rate.
Interest expense on borrowings, bank and facility fees and transaction costs are recognised in the income
statement over the period of the borrowings, using the effective interest rate method, unless such costs relate
to funding capital work in progress. Interest expense on lease obligations are also recognised in the income
statement in accordance with NZ IFRS 16.
20232022
$’000$’000
Interest income on loans and deposits281159
Total finance income281159
Interest and facility fees(34,533)(20,783)
Capitalised borrowing costs6,6495,592
Interest on leases(1,447)(662)
Total finance expenses(29,331)(15,853)
Loss on derecognition of financial assets(5,771)(2,264)
Net finance costs(34,821)(17,958)
14. LOANS AND BORROWINGS
Interest bearing liabilities are recognised initially at fair value, net of transaction costs incurred. Interest bearing
liabilities are subsequently carried at amortised cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognised in the profit and loss component of the statement of comprehensive
income over the period of the borrowings using the effective interest method.
20232022
Drawn facility
amount
Transaction
costs
Carrying
amount
Drawn facility
amount
Transaction
costs
Carrying
amount
$’000$’000$’000$’000$’000$’000
Working capital facility NZD46,071-46,071---
Working capital facility USD64,403-64,40358,885-58,885
Revolving credit facility133,333(80)133,253---
Current liabilities243,807(80)243,72758,885-58,885
Retail bonds180,000(1,002)178,998180,000(1,692)178,308
Revolving credit facility---117,500(216)117,284
Non-current liabilities180,000(1,002)178,998297,500(1,908)295,592
Total loans and borrowings423,807(1,082)422,725356,385(1,908)354,477
(a) Terms of loans and borrowings
The revolving credit facility and working capital facility within the Group are secured under the terms of the General Security
Deed dated 26 June 2013, by which all present and future property is secured to the ANZ Bank and Bank of New Zealand.
The Group facilities include:
• A secured revolving credit facility (Facility A) of NZD $33.3m maturing 1 October 2023.
• A secured revolving credit facility (Facility B) of NZD $50m maturing 1 October 2023.
• A secured revolving credit facility (Facility C) of NZD $50m maturing 1 October 2023.
• A secured working capital facility of NZD $250m maturing 1 October 2023.
Facilities B and C are Environmental, Social, and Governance (ESG) linked loans. These facilities are eligible for lower interest
rates if the Group achieves ESG targets and higher rates if it falls short of targets.
PAGE 89 & 90ANNUAL REPORT 2023

Subsequent to year end, the Group refinanced its syndicated banking facilities. Changes to funding arrangements include:
• Bank of China, China Construction Bank, HSBC, and Rabobank have been introduced to the syndicate. ANZ Bank
remains in the syndicate with BNZ Bank removed.
• Working capital facility of NZD $240m, maturing 1 October 2024, together with an NZD $10m on-demand bilateral
facility. This facility is a seasonal facility where the facility limit changes at several times during the term of the facility.
• Revolving credit facilities of NZD $230m. These facilities also step down over time with maturity dates between
31 July 2024 and 1 October 2025.
In addition, the Group is required to make a prepayment of the higher of any Dairyworks sales proceeds or $130m by no later
than 31 March 2024.
The Group is subject to capital requirements imposed by its bank through covenants agreed as part of the lending facility
arrangements. Due to a decrease in forecast demand for Advanced Nutrition products, the Group obtained amendments to
certain covenants in April 2023. These amendments are detailed in the following section. The Group met the amended and
all other externally imposed capital requirements for the twelve months ended 31 July 2023.
The following summarises banking covenants which were in place for the year ended 31 July 2023:
1. Total shareholder funds of no less than $600.0m at all times.
2. Working capital ratio of no less than 1.5x at all times.
3. Interest cover ratio of no less than 2.25x (3.0x prior to amendment) on 31 July 2023.
4. Leverage ratio of no greater than 5.5x (4.0x prior to amendment) on 31 July 2023.
5. Senior leverage ratio of no greater than 3.5x (3.5x prior to amendment) on 31 July 2023.
The financial covenants for the 2024 financial year under the recently executed facilities agreement are:
1. Total shareholder funds of no less than $600.0m at all times.
2. Working capital ratio of no less than 1.5x at all times.
3. Interest cover ratio of no less than 2.25x for the 31 July 2024 reporting date, increasing to 3.0x for the 31 July 2025
reporting date.
4. Leverage ratio of no greater than 3.5x for the 31 July 2024 reporting date, decreasing to no greater than 3.25x on and
from 31 July 2025 reporting date.
5. Senior leverage ratio of no greater than 2.25x for 31 July 2024 reporting date.
Nominal interest rates
Nominal interest
rate %
Financial year of
maturity
Carrying
amount 2023
Carrying amount
2022
Secured revolving credit facility (Facility A, B & C) – ANZ/BNZ7.38%2024133,333117,500
Secured working capital facility – ANZ/BNZ – USD6.70%202464,40358,885
Secured working capital facility – ANZ/BNZ – NZD7.37%202346,071-
Subordinated retail bonds3.83%2025180,000180,000
The nominal interest rate is calculated by adding the BKBM rate for NZD facilities, US SOFR rate for USD facilities and
the applicable margin rate. It excludes line fees and swap costs. Nominal interest rate for the subordinated retail bonds
excludes transaction costs.
Retail Bonds
Borrowings under the retail bond programme are supported by a Master Trust Deed and supplemented by the Series
Supplement entered into between the Group and the New Zealand Guardian Trust Company Limited. The retail bonds are
unsecured and subordinated and mature on 17 December 2024. At 31 July 2023, the retail bond had a fair value of $158.8m
(2022: $164.2m), based on NZX Debt Market valuation (NZDX).
14. LOANS AND BORROWINGS (CONTINUED)
PAGE 91 & 92ANNUAL REPORT 2023

16. SHARE CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a
deduction from the proceeds.
During the reporting period, no new ordinary shares were granted to participants of the Group’s Long Term Incentive
scheme as a result of share rights that were granted under the scheme vesting and being converted to ordinary shares
(2022: $nil). Shares issued in the prior year to participants were at no cost. Refer to note 17 for further information.
No other shares were issued in the period.
2023 Shares2022 Shares20232022
$’000$’000
Ordinary shares
On issue at beginning of period218,581,661218,581,661464,774464,774
Issue of share capital under employee share plans----
On issue at end of period218,581,661218,581,661464,774464,774
(b) Ordinary shares
All issued shares are fully paid and have no par value. Ordinary shares are entitled to one vote per share at meetings of
Synlait Milk Limited. All ordinary shares rank equally with regard to Synlait Milk Limited’s residual assets.
None of the above shares are held by the Group or its subsidiaries.
15. OTHER NON-CURRENT LIABILITIES
The Group records liabilities for make-good obligations, such as those which arise upon the end of a building
lease, in the period a reasonable estimate can be made. The liability is determined using estimated future costs
and discounted using an appropriate discount rate. On initial recognition, the carrying value of the liability is added
to the carrying amount of the associated asset and depreciated over its useful life or expensed when there is no
related asset. The liability is accreted over time through charges to finance expense and reduced by actual costs
of settlement. Make-good liabilities are reviewed annually and changes to estimates result in an adjustment of the
carrying amount of the associated asset or, where there is no asset, they are credited or charged to profit or loss
Make-good liabilities are discounted at the risk-free rate at the balance date and accreted over time through
periodic charges to profit or loss. The liabilities are reduced by actual costs of settlement.
20232022
$’000$’000
Make-good liability
Balance as at 1 August2,550-
Liabilities recognised-2,473
Accretion12277
Change in estimates(166)-
Balance as at 31 July2,5062,550
The make-good liability relates to future costs to be incurred with respect to the lease of the Group’s Auckland blending
and canning premises. The total undiscounted amount of the estimated cash flows required to satisfy this obligation is
$3.9m (31 July 2022: $3.6m). The obligation has been discounted using an interest rate of 5.74% (31 July 2022: 3.75%).
(a) Share capital
PAGE 93 & 94ANNUAL REPORT 2023

(d) Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to shareholders by the weighted average number of shares outstanding during the
period. Diluted EPS is determined by adjusting the profit or loss attributable to shareholders and the number of shares
outstanding to include the effects of all potential dilutive shares.
Total basic EPS for the 2023 financial period was (1.96) cents (2022: 17.62 cents) of which 4.51 cents related to
discontinuing operations (2022: (0.85) cents). Diluted EPS for the 2023 financial period was (1.96) cents (2022: 17.58) of
which 4.51 cents related to discontinuing operations (2022: (0.84) cents). Weighted average shares outstanding for the
2023 financial period was 218,581,661 (2022: 218,581,661). Weighted average shares outstanding, adjusted for potentially
dilutive shares for the 2023 financial period was 219,251,184 (2022: 219,082,925).
(c) Capital risk management
The Group’s capital includes share capital, retained earnings and reserves.
The Group’s policy is to maintain a sound capital base so as to maintain investor and creditor confidence and
to sustain future development of the business. The impact of the level of capital on shareholders’ return is also
recognised and the Group recognises the need to maintain a balance between the higher returns that might be
possible with greater gearing and the advantages and security afforded by a sound capital position.
The Group is subject to various security ratios within the bank facilities agreement.
17. SHARE BASED PAYMENTS
(a) LTI share scheme
Under the LTI share scheme, participants receive Performance Share Rights (“PSRs”) which can be converted into
Ordinary Shares in Synlait Milk Limited in three financial years’ time provided performance hurdles have been
met during the assessment period (the date of award of the PSRs plus three financial years). The number of PSRs
granted to participants is set at one quarter of their base salary divided by Synlait Milk Limited’s share price on the
date of the award of the PSRs.
The PSRs consist of 50% Total Shareholder Return Rights (“TSR Rights”) and 50% Earnings Per Share Rights (“EPS
Rights”). The vesting for both TSR Rights and EPS Rights is determined in accordance with progressive vesting
scales.
Synlait Milk Limited’s TSR must be greater than or equal to the 50th percentile of the constituents of the TSR Peer
Group over the assessment period for 50% of the TSR Rights to vest, scaled so that 100% of the TSR Rights vest
if Synlait Milk Limited’s TSR equals or exceeds the 75th percentile of the TSR Peer Group over the assessment
period. The TSR Peer Group is determined as at the date of award of the PSRs.
If Synlait Milk Limited’s EPS over the assessment period equals a Board approved EPS target, 50% of the EPS
Rights vest, scaled so that 100% of the EPS Rights vest if Synlait Milk Limited’s EPS over the assessment period
equals the Board approved EPS target plus 10%.
For either performance hurdle to be met, Synlait Milk Limited’s TSR must be positive over the assessment period.
No exercise price is payable upon exercise of a PSR, Synlait Milk Limited’s ordinary shares being delivered to a
participant for nil consideration. The LTI share scheme is an annual scheme with PSRs granted to Board approved
participants each year, noting however that the annual award is assessed over a three-year period.
16. SHARE CAPITAL (CONTINUED)
PAGE 95 & 96ANNUAL REPORT 2023

The table below sets out the movement in LTI share scheme PSR’s during the year:
20232022
Outstanding 1 August521,602380,102
Granted during the year462,634371,889
Forfeited during the year(346,989)(230,389)
Exercised during the year--
Total637,247521,602
2023 PSRs2022 PSRs
Risk free rate3.48%2.34%
Volatility35.00%40.00%
Share price at entitlement date ($)3.273.70
Share price at grant date ($)3.263.40
Total value of options granted at grant date ($000’s)962712
20232022
$’000$’000
Expenses/(recoveries) for equity settled share based payment transactions1115
The fair value of the PSRs awarded at grant date has been determined by an independent third party valuer, using a Monte
Carlo simulation to model the total share return for Synlait and the TSR peer group. The fair value of the PSRs awarded, along
with key assumptions, are listed below:
The estimated value of the PSRs is amortised over the vesting period from grant date.
(b) Expenses arising from share based payment transactions
Total expenses arising from share based payment transactions recognised during the period as part of employee benefit
expense were as follows:
During the period, no new ordinary shares were granted to participants of the LTI scheme. See note 16 for further detail.
18. RESERVES AND RETAINED EARNINGS
(a) Retained earnings
Movements in retained earnings were as follows:
20232022
$’000$’000
Balance 1 August332,078293,555
Net profit/(loss) for the year(4,292)38,523
Balance 31 July327,786332,078
(b) Nature and purpose of reserves
(i) Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow
hedging instruments and the cost of cash flow hedging instruments. Cash flow hedging instruments relate to hedged
transactions that have not yet occurred.
(ii) Employee benefits reserve
The current year movement in the employee benefits reserve of ($0.1m) (2022: $0.1m) is comprised of the cumulative
share based payment expense for share options not yet vested of $0.2m (2022: $0.3m), vesting / lapsing of rights during
the period of ($0.2m) (2022: ($0.2m)) and related movements in deferred tax balances of ($0.1m) (2022: $nil).
(c) Dividends
No dividends were declared by the Group during the year.
17. SHARE BASED PAYMENTS (CONTINUED)
PAGE 97 & 98ANNUAL REPORT 2023

FINANCIAL RISK
MANAGEMENT
The financial risk management section presents information about the Group’s
financial risk exposures and the financial instruments used to mitigate this.
This section includes the following notes:
19 Financial Risk Management 100
20 Financial Instruments 108
19. FINANCIAL RISK MANAGEMENT
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate risk,
foreign exchange rate risk, and commodity price risk including forward exchange contracts, interest rate swaps and
commodity derivative contracts.
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk
and commodity price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial
performance. The Group uses derivative financial instruments to hedge certain risk exposures.
Market risk
Foreign exchange risk
The Group is exposed to foreign currency risk on its sales, which are predominantly denominated in US dollars.
The Group is also exposed to foreign currency risk on the purchase of raw materials for production and capital
equipment purchases from overseas. The Group enters into derivative arrangements in the ordinary course of
business to manage foreign currency risk. These instruments include forward exchange contracts, option collars
and vanilla options. These instruments enable the Group to mitigate the risk the variable exchange rates present to
future cash flows for sales receipts or purchases by fixing or limiting the exchange rate at which these cash receipts
or payments are exchanged into NZ dollars.
In relation to foreign exchange contracts that are entered into based on forecast cash receipts or payments,
variability in the expected timing or amounts of future cash flows can lead to ineffective hedging. To mitigate the
risk of ineffectiveness the Group’s policy is to hedge a decreasing proportion of the risk exposure the further into
the future the exposure exists given the increasing uncertainty of cash flows. Additionally, the Group’s policy is that
the proportion of risk exposure to be hedged changes on a monthly basis in response to the movement in market
rates.
As at 31 July 2023, the Group has hedged 49% of its exposure to forecast foreign exchange risk on USD sales. As
at 31 July 2023, the Group has hedged 20% of its exposure to forecast foreign exchange risk on USD purchases.
The Group hedges foreign exchange risk over the following 2 years from balance date.
PAGE 99 & 100ANNUAL REPORT 2023

Interest rate risk
Interest rate risk is the risk that the value of the Group’s assets and liabilities will fluctuate due to changes in market
interest rates. The Group is exposed to interest rate risk primarily through its bank overdrafts and borrowings.
The Group manages its interest rate risk by using interest rate swaps to convert a portion of its floating rate debt to
fixed interest rates in relation to the benchmark interest rate element. As interest rate swaps are entered into based
on forecast debt levels, variability in future cash flows and debt levels can lead to ineffective hedging. To mitigate
the risk of ineffectiveness the Group’s policy is to hedge a decreasing proportion of the risk exposure the further
into the future the exposure exists given the increasing uncertainty of cash flows.
The Group has a Board approved treasury policy that sets the parameters to the extent of the cover taken. The
policy requires the Group to hedge 30% to 80% of its exposure to interest rate risk that matures within 3 years, 20%
to 60% of the risk that matures between 3 and 5 years, and 0% to 40% of the risk that matures between 5 and 10
years.
Commodity Price Risk
Dairy commodity price risk is the risk of volatility in profit and loss from the movement in dairy commodity prices to
which the Group may be exposed. Volatility in global dairy commodity prices can have an adverse impact on the
Groups earnings and milk price by eroding selling prices and increasing input costs.
The Group primarily manages its dairy commodity price risk by:
• Determining the most appropriate mix of products to manufacture based on the milk supply curve and global
demand for dairy products;
• Governing the length and terms of sales contracts so that sales revenue is reflective of current market prices
and is, where appropriate, linked to Global Dairy Trade (GDT) prices; and
• Using commodity derivative contracts to manage sales price volatility caused by fluctuations in GDT prices.
The Group has a Board approved treasury policy that sets the parameters under which commodity cover is to be
taken, including permitted derivative types and volume limits.
Market risk
(i) Foreign exchange risk
The Group’s exposure to foreign currency risk at the reporting date was as follows:
20232022
USDAUDEURRMBUSDAUDEURRMB
$’000$’000$’000$’000$’000$’000$’000$’000
Trade receivables42,385-19-46,9893,37577-
Trade payables(4,432)(269)(860)(471)(554)(880)--
Working capital facility(40,023)---(37,036)---
Total(2,070)(269)(841)(471)9,3992,49577-
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
Credit risk
The Group’s exposure to credit risk is mainly influenced by its customer base and banking counterparties. The
Group has a credit policy in place under which each new customer is rigorously analysed for credit worthiness.
Investments and derivatives are only entered into with reputable financial banks.
Synlait Milk Limited guarantees all facilities held by Synlait Milk Finance Limited.
Liquidity risk
Liquidity risk represents the Group’s ability to meet its contractual obligations as they fall due. The Group evaluates
its liquidity requirements on an ongoing basis and uses a variety of facilities to manage liquidity risk. The Group has
negotiated banking facilities sufficient to meet its medium-term facility requirements.
The Group has internal limits in place in order to reduce exposure to liquidity risk, as well as having committed lines
of credit. It is the Group’s policy to provide credit and liquidity enhancements only to wholly owned subsidiaries.
PAGE 101 & 102ANNUAL REPORT 2023

20232022
Weighted average
interest rate
Nominal
balance
Weighted average
interest rate
Nominal
balance
%$’000%$’000
Less than 1 year4.20%30,0004.36%40,000
1 to 2 years3.54%15,0004.20%30,000
2 to 3 years3.56%10,0003.54%15,000
3 to 4 years--3.56%10,000
(ii) Interest rate risk
As at the reporting date, the Group had the following interest rate swap contracts outstanding:
The above balances include forward start swap contracts for various periods and do not necessarily reflect the current
active contracts held at any one point in time.
In managing interest rate risks, the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings.
Over the longer term, however, changes in interest rates will have an impact on profit.
20232022
Weighted average
exchange rate
Nominal
balance
Weighted average
exchange rate
Nominal
balance
$’000$’000
USD
Exports
Less than 1 year0.6301538,0000.6755468,165
1 to 2 years0.6007132,0000.6459364,500
Imports
Less than 1 year0.6349(35,260)0.6540(31,464)
1 to 2 years--0.6416(500)
AUD
Exports
Less than 1 year--0.92329,745
EUR
Imports
Less than 1 year--0.6058(1,088)
The Group’s exposure to foreign currency in the period ended 31 July 2023 is limited to its sales of dairy products,
purchases of raw materials for production and capital equipment purchases. As at the reporting date, the Group had the
following foreign exchange derivative instruments outstanding in respect of future foreign currency transactions:
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
Post-tax impact on the
Income statement
Post-tax impact on cash
flow hedge reserve (equity)
2023202220232022
$’000$’000$’000$’000
Interest rates
100 basis point increase in interest rate(3,431)(3,079)285515
100 basis point decrease in interest rate3,4313,079(290)(528)
Foreign exchange rates
5% increase in exchange rate175(611)33,75141,772
5% decrease in exchange rate(194)676(37,288)(46,190)
(iv) Commodity derivatives
During the reporting period the Group entered into a small number of commodity derivative contracts to further support
the Group’s existing financial risk management strategy. The movement in the fair value of the commodity derivatives is
included within the cash flow hedge reserve.
(iii) Sensitivity analysis
The sensitivity analysis below has been determined based on the mark to market impact on financial instruments of
changing interest and foreign exchange rates at balance date. The analysis is prepared assuming the amount of the
financial instrument outstanding at the balance sheet date was outstanding for the whole year, and by adjusting one input
whilst keeping the others constant.
PAGE 103 & 104ANNUAL REPORT 2023

Liquidity risk
The total repayments and associated maturity of financial liabilities as at balance date is reported below:
Less than
12 months
Between
1 and 2 years
Between
2 and 5 years
Over
5 years
Total
$’000$’000$’000$’000$’000
At 31 July 2023
Working capital facility110,474---110,474
Trade and other payables280,954---280,954
Loans and borrowings133,333180,000--313,333
Derivative financial instruments26,862---26,862
Lease liabilities5,2004,84813,79323,05246,893
Total556,823184,84813,79323,052778,516
At 31 July 2022
Working capital facility58,885---58,885
Trade and other payables323,123---323,123
Loans and borrowings-117,500180,000-297,500
Derivative financial instruments55,94120,573--76,514
Lease liabilities5,7185,57215,0969,30135,687
Total443,667143,645195,0969,301791,709
Hedging instruments used
In cash flow hedges
Nominal
amount
Carrying amountHedge accounted
amounts in cash
flow reserve
Total cash flow
hedge reserve
AssetsLiabilities Intrinsic value
$’000NZD$’000NZD$’000NZD$’000NZD$’000
At 31 July 2023
Foreign exchange risk
Foreign exchange contracts (USD)634,71022,110(26,862)(4,752)(4,752)
Interest rate risk
Interest rate swaps (NZD)30,000656-656656
Commodity price risk
Dairy commodity futures-----
Total22,766(26,862)(4,096)(4,096)
31 July 2022
Foreign exchange risk
Foreign exchange contracts (USD)800,7017,331(75,723)(68,392)(68,392)
Foreign exchange contracts (AUD)9,74570(372)(302)(302)
Foreign exchange contracts (EUR)1,088-(24)(24)(24)
Interest rate risk
Interest rate swaps40,00036(395)(359)(359)
Commodity price risk
Dairy commodity futures12,866754-610610
Total8,191(76,514)(68,467)(68,467)
Cash flow hedges
The Group enters into cash flow hedges of highly probable forecast transactions and firm commitments, as described in
accounting policy section of this note.
Hedging instruments are located within the derivative financial instruments line items in the statement of financial
position, classified as assets or liabilities, current or non-current.
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
PAGE 105 & 106ANNUAL REPORT 2023

20232022
Effects of cash flow hedges on
statement of comprehensive
income
Hedging gains/(losses)
recognised in other
comprehensive income
Hedge ineffectiveness
recognised in profit
or loss
Hedging gains/(losses)
recognised in other
comprehensive income
Hedge ineffectiveness
recognised in profit
or loss
$’000$’000$’000$’000
Foreign exchange risk
Cash and cash equivalents64,001-(83,127)-
Interest rate risk
Interest rate swaps1,014-3,092-
Commodity price risk
Dairy commodity futures(603)(7)212122
Total64,412(7)(79,823)122
Impact to reserves in equity
The impact of the Group’s hedge accounting policies on the reserves in equity is presented in the table below:
20232022
Hedge reserves$’000$’000
Opening balance(49,296)8,089
Movements attributable to cashflow hedges:
Change in value of effective derivative hedging instruments20,646(77,916)
Reclassifications to the income statement as hedged transactions occurred43,759(1,785)
Tax (expense)/credit(18,033)22,316
Total movement46,372(57,385)
Closing balance(2,924)(49,296)
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
Hedge ineffectiveness is included within the finance expenses line of the income statement.
20. FINANCIAL INSTRUMENTS
Classification
The Group classifies its financial assets in three categories: at amortised cost, at fair value through other
comprehensive income and at fair value through profit or loss. The classification of financial assets depends on the
business model within which the financial asset is held and its contractual cash flow characteristics.
The Group classifies its financial liabilities in two categories: at amortised cost and at fair value through profit
or loss.
(i) Financial instruments at amortised cost
Financial assets are classified as measured at amortised cost if the Group’s intention is to hold the financial
assets for collecting cash flows and the contractual terms give rise on specified dates to cash flows that are
solely payments of principal and interest.
The Group currently classifies its cash and cash equivalents, restricted cash equivalents, accounts receivable
and other receivables as financial assets measured at amortised cost, except for receivables from customers
who participate in the Group’s receivables purchase agreements which are classified as financial assets
measured at fair value through profit and loss (FVPL).
Financial liabilities are classified as measured at amortised cost using the effective interest method, with the
exception of those classified at fair value.
The Group currently classifies its accounts payable, accrued liabilities (excluding derivatives) and term debt as
financial liabilities measured at amortised cost.
(ii) Financial instruments at fair value through other comprehensive income (“FVOCI”)
The Group has elected to designate certain investments in equity instruments that are not held for trading as
FVOCI at initial recognition and to present gains and losses in other comprehensive income. Dividends earned
from such investments are recognised in profit or loss.
(iii) Financial instruments at fair value through profit or loss (“FVPL”)
Financial assets that do not meet the criteria for classification as measured at either amortised cost or FVOCI are
classified as FVPL.
Derivative financial instruments that are not in an effective hedge relationship are classified as FVPL.
PAGE 107 & 108ANNUAL REPORT 2023

Recognition and measurement
The Group recognises a financial asset or a financial liability when it becomes a party to the contractual provisions
of the instrument.
Regular purchases and sales of financial assets are recognised on the trade date – the date on which the Group
commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all
financial assets not classified at fair value through profit or loss. Financial assets carried at fair value through profit
or loss are initially recognised at fair value, and transaction costs are expensed in the profit and loss.
Where financial assets are subsequently measured at amortised cost, interest revenue, credit losses and foreign
exchange gains or losses are recognised in profit or loss. On derecognition, any gain or loss is recognised in profit
or loss. Financial liabilities subsequently measured at amortised cost are measured using the effective interest
method.
Where investments in equity instruments are designated as FVOCI, fair value gains and losses are recognised in
other comprehensive income. Dividends earned from such investments are recognised in profit or loss.
Where financial assets are subsequently measured at FVPL, all gains and losses are recognised in profit or loss.
A key judgement is the assessment that substantially all the risks and rewards of ownership have been transferred
in the derecognition of financial assets.
Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have
been transferred and the Group has transferred substantially all risks and rewards of ownership.
Financial liabilities are derecognised when the contractual obligations are discharged, cancelled or expired.
Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
As the Group’s financial instruments, with the exception of retail bonds, are not traded in active markets their fair
value is determined using valuation techniques. The Group uses a variety of methods and makes assumptions that
are based on market conditions existing at each balance date.
All financial instruments held at fair value are included in level 2 of the valuation hierarchy as defined in NZ IFRS 13,
with the exception of the retail bonds, which are included in level 1. The retail bonds are listed instruments on the
NZDX and the Group is satisfied there is sufficient trading in these instruments to qualify as an active market.
20. FINANCIAL INSTRUMENTS (CONTINUED)
The fair value of foreign currency forward contracts is determined using forward exchange rates at balance date.
The fair value of foreign exchange option agreements is determined using forward exchange rates at balance date.
The fair value of interest rate swaps is determined using forward interest rates as at reporting date. The fair value of
commodity derivatives is determined using NZX settlement prices.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when
there is a current legally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis or realise the asset and settle the liability simultaneously. There are master netting agreements in
place for derivative financial instruments held, however these instruments have not been offset in the statement of
financial position as they do not currently meet the criteria for offset.
Impairment of financial assets
The Group has adopted the expected credit loss (“ECL”) model. For further detail please refer to note 6. The Group
assesses whether there is evidence that a financial asset or group of financial assets is impaired, with the exception
of assets that are fair valued through profit or loss. A financial asset or a group of financial assets can be impaired
and the impairment losses are recognised in accordance with IFRS 9. The Group continues to assess if historical
and future objective evidence of impairment exists after the initial recognition of the asset.
Derivative financial instruments – hedge accounting
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate risk,
foreign exchange rate risk, and commodity price risk including forward exchange contracts, interest rate swaps, and
commodity derivative contracts.
Derivatives are initially recognised at fair value at the date the derivative contact is entered into and are
subsequently remeasured to fair value at each reporting date. For derivatives measured at fair value, the gain
or loss that results from changes in fair value of the derivative is recognised in earnings immediately, unless the
derivative is designated and effective as a hedging instrument. Hedges of highly probable forecast transactions or
hedges of foreign currency risk of firm commitments are designated as cash flow hedges by the Group.
The full fair value of a hedging derivative is classified as a current asset or liability when the remaining term of the
hedged item is 12 months or less from balance date, or when cash flows arising from the hedged item will occur
within 12 months or less from balance date. The full fair value of a hedging derivative is classified as a non-current
asset or liability when the remaining maturity of the hedged item is more than 12 months, and no cash flows will
occur within 12 months of balance date.
PAGE 109 & 110ANNUAL REPORT 2023

(i) Hedge accounting
The Group designates certain hedging instruments in respect of foreign currency risk and interest rate risk as cash flow
hedges. Hedges of risk on firm commitments and highly probably transactions are accounted for as cash flow hedges.
At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and
the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging
instrument that is used in a hedging relationship is highly effective in offsetting changes in fair values or cash flows of
the hedged item.
(ii) Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges are recognised in other comprehensive income and accumulated as a separate component of equity
in the hedging reserve. The gain or loss relating to the ineffective portion and reclassification adjustments are
recognised immediately in profit or loss, included in revenue for foreign exchange instruments and commodity price
derivatives, and finance costs for interest rate swaps.
Amounts recognised in the hedging reserve are classified from equity to profit or loss (as a reclassification
adjustment) in the periods when the hedged item is recognised in profit or loss, in the same line as the recognised
hedged item.
Hedge accounting is discontinued when the Group revokes the hedging relationships, the hedging instrument
expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any cumulative gain or loss
recognised in the hedging reserve at that time remains in equity and is recognised when the forecast transaction is
ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur, the cumulative
gain or loss that was recognised in the hedging reserve is immediately recorded in profit or loss.
The Group separates the intrinsic value and time value of vanilla option and collar contracts, designating only the
intrinsic value as the hedging instrument. The time value, including any gains or losses, is recognised in other
comprehensive income until the hedged transaction occurs and is recognised in profit or loss.
(iii) Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative
instrument that does not qualify for hedge accounting are recognised immediately in the income statement.
20. FINANCIAL INSTRUMENTS (CONTINUED)
At amortised costAt fair value through
other comprehensive
income
At fair value through
profit or loss
Total
Financial assets$’000$’000$’000$’000
At 31 July 2023
Cash and cash equivalents9,290--9,290
Derivative financial instruments--22,76622,766
Trade and other receivables63,175-19,76682,941
Investment in equity-935-935
Total72,46593542,532115,932
At 31 July 2022
Cash and cash equivalents14,493--14,493
Derivative financial instruments--8,1918,191
Trade and other receivables86,061-5,03591,096
Investment in equity-110-110
Total100,55411013,226113,890
At amortised costAt fair value through
profit or loss
Total
Financial liabilities$’000$’000$’000
At 31 July 2023
Derivative financial instruments-26,86226,862
Working capital facility110,474-110,474
Lease liabilities46,893-46,893
Trade and other payables280,954-280,954
Loans and borrowings312,251-312,251
Total750,57226,862777,434
At 31 July 2022
Derivative financial instruments-76,51476,514
Working capital facility58,885-58,885
Lease liabilities29,051-29,051
Trade and other payables323,123-323,123
Loans and borrowings295,592-295,592
Total706,65176,514783,165
(a) Financial instruments by category
All derivative financial instruments are designated in effective hedge relationships.
For instruments held at amortised cost, carrying amount is considered a reasonable approximation for fair value,
with exception to the Retail Bond (the fair value of the Retail Bond is shown at note 14).
PAGE 111 & 112ANNUAL REPORT 2023

OTHER
21. INCOME TAX
Tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss component of
the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case, tax is also recognised in other comprehensive income or directly in equity,
respectively.
Current tax is the expected tax payable on taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
New Zealand tax consolidated group
Synlait Milk Limited and its wholly-owned New Zealand controlled entity, Synlait Milk Finance Limited and Synlait
Milk (Dunsandel Farms) Limited, form a tax consolidated group. The New Zealand Dairy Company Limited, Eighty
Nine Richard Pearse Drive Limited, Dairyworks Limited and Synlait Milk (Holdings) No.1 Limited are not members of
the tax consolidated group.
This section contains additional information regarding the performance of the
group during the financial year. This section includes the following notes:
21 Income Tax 114
22 Other Investments 118
23 Related Party Transactions 120
24 Contingencies 122
25 Commitments 122
26 Events Occurring After the Reporting Period 123
27 Other Accounting Policies 123
PAGE 113 & 114ANNUAL REPORT 2023

20232022
$’000$’000
(Restated)
(a) Income tax (expense)/benefit
Current tax expense:
Current tax on profit/(loss) for the year629150
Current tax on prior period adjustments5191,362
Total1,1481,512
Deferred tax expense:
Temporary differences5,212(7,833)
Prior year adjustments(237)(1,074)
Change in estimate-538
Total deferred tax4,975(8,369)
Income tax benefit/(expense)6,123(6,857)
(b) Reconciliation of effective tax rate
Profit/(loss) before income tax(20,267)47,230
Income tax using the Group’s domestic tax rate – 28%5,675(13,270)
Tax exempt income8816,006
Non-deductible costs(733)(385)
Total5,823(7,649)
Prior year adjustments283287
Deferred tax credit relating to change in estimate-538
Other tax effects for reconciliation between accounting profit and tax expense17(33)
Total300792
Income tax benefit/(expense)6,123(6,857)
20232022
$’000$’000
(c) Imputation credits
Imputation credits available directly and indirectly to the shareholders of the Group80,33883,000
(d) Income tax recognised in other comprehensive income
The tax credit/(charge) relating to components of other comprehensive income is as follows:
(e) Deferred taxation
The balance comprises temporary differences attributable to:
Before taxTax benefit/(expense)After tax
$’000$’000$’000
31 July 2023
Cash flow hedges64,405(18,033)46,372
Other comprehensive income64,405(18,033)46,372
31 July 2022
Cash flow hedges(79,701)22,316(57,385)
Other comprehensive income(79,701)22,316(57,385)
20232022
$’000$’000
Assets
Tax losses carried forward18,860-
Other items6,1445,717
Derivatives1,14719,171
Total deferred tax assets26,15124,888
Liabilities
Property, plant and equipment(74,702)(61,500)
Intangible assets(6,134)(5,254)
Total deferred tax liabilities(80,836)(66,754)
Total deferred tax(54,685)(41,866)
21. INCOME TAX (CONTINUED)
During the period the Group amended its accounting policy with respect to the recognition of the Research and Development
Tax Credit (“the credit”). The is credit now recognised in other income, rather than as an increase in income tax benefit/
(expense). As a result, the comparative period benefit of $2.5m has been reclassified to other income, increasing income tax
expense by a corresponding amount.
PAGE 115 & 116ANNUAL REPORT 2023

Balance
1 Aug 2021
Recognised
in profit or
loss
Recognised
in other
comprehensive
income
Recognised
directly in
equity
Prior year
adjustment
Movement
relating to
discontinued
operation
Balance
31 July
2022
$’000$’000$’000$’000$’000$’000$’000
Property, plant and equipment(55,995)(8,912)--(196)3,602(61,501)
Derivatives(3,146)-22,316---19,170
Other items4,2981,299-5125(8)5,719
Tax losses carried forward49---(49)--
Intangible assets(4,639)340--(955)-(5,254)
Total(59,433)(7,273)22,3165(1,075)3,594(41,866)
Balance
1 Aug 2022
Recognised
in profit or
loss
Recognised
in other
comprehensive
income
Recognised
directly in
equity
Prior year
adjustment
Movement
relating to
discontinued
operation
Balance
31 July
2023
$’000$’000$’000$’000$’000$’000$’000
Property, plant and equipment(61,501)(9,028)--(499)(3,673)(74,701)
Derivatives19,170-(18,033)--111,148
Other items5,719878-(5)285(732)6,145
Tax losses carried forward-18,860----18,860
Intangible assets(5,254)(5,498)--(22)4,637(6,137)
Total(41,866)5,212(18,033)(5)(236)243(54,685)
22. OTHER INVESTMENTS
Investments in associates
Associates are those entities in which the Group, either directly or indirectly, holds a significant but not a controlling
interest, and has significant influence. Investments in associates are accounted for using the equity method and
are measured in the statement of financial position at cost plus post acquisition changes in the Group’s share of net
assets. Goodwill relating to associates is included in the carrying amount of the investment. Dividends reduce the
carrying value of the investment.
Investments in joint ventures
The Group measures its interests in joint ventures where it does not hold significant influence over the ventures
at either fair value through profit and loss (FVTPL) or fair value through other comprehensive income (FVOCI). The
determination of the measurement basis is made on an investment-by-investment basis. Investments where the
Group holds significant influence are accounted for using the equity method and are measured in the statement
of financial position at cost plus post acquisition changes in the Group’s share of net assets. Goodwill relating to
joint ventures is included in the carrying amount of the investment. Dividends reduce the carrying value of the
investment.
20232022
$’000$’000
Equity securities110110
Interest in joint venture825-
Total other investments935110
21. INCOME TAX (CONTINUED)
During the period the Group invested $0.8m in a public-private joint venture. The joint venture is intended to undertake
a portfolio of investments that will help accelerate delivery of biological emissions tools to all New Zealand farmers.
The Group has committed to investing a further $2.8m in the joint venture. The Group has made a one-time irrevocable
election to measure the interest in the joint venture at FVOCI.
PAGE 117 & 118ANNUAL REPORT 2023

23. RELATED PARTY TRANSACTIONS
Parent entity
Bright Dairy Holding Limited hold 39.01% of the shares issued by Synlait Milk Limited (2022: 39.01%). Bright Dairy
Holding Limited is a subsidiary of Bright Food (Group) Co. Limited, a State Owned Enterprise domiciled in the Peoples’
Republic of China.
Other related entities
In June 2013, a subsidiary of Synlait Milk Limited, Synlait Milk Finance Limited, was set up primarily for holding all banking
facilities for the Group and related interest rate swaps. Funds are loaned to Synlait Milk Limited and interest is charged at
market rates.
In January 2015, the Group acquired 25% of the shares of Sichuan New Hope Nutritionals, an infant formula company
registered in China. This company owns and markets the “Akara” and “E-Akara” infant formula brands in the Chinese
market, which are exclusively manufactured by Synlait Milk Limited. New Hope Innovation (Hong Kong) Trading Company
Limited is a related entity of Sichuan New Hope Nutritionals and is engaged in the import and export of dairy foods. Main
products include whole milk powder, skim milk powder and whey powder. The company is the Hong Kong arm of the
Chinese New Hope Dairy group, New Hope Dairy.
In May 2017 Synlait Milk Limited acquired 100% of the share capital of The New Zealand Dairy Company Limited and
Eighty Nine Richard Pearse Drive Limited. The New Zealand Dairy Company Limited was constructing a blending and
canning plant in Auckland, which was subsequently sold to Synlait Milk Limited. Eighty Nine Richard Pearse Drive Limited
owned the land and buildings at which the Auckland blending and canning which were sold in a sale and leaseback
transaction in the previous period. Both The New Zealand Dairy Company Limited and Eighty Nine Richard Pearse Drive
Limited are now non-trading entities.
In May 2019, Synlait Business Consulting (Shanghai) Co., Ltd was incorporated. The wholly owned foreign entity started
operations from 1 August 2019 and the principal activity of the entity is to provide services to assist Synlait to market
products in China.
On 1 August 2019, the Group acquired selected assets and liabilities of Talbot Forest Cheese Limited. The acquirer was
a newly incorporated company, Synlait Foods (Talbot Forest) Limited. The acquisition included a cheese manufacturing
plant located in Temuka, New Zealand, capable of manufacturing a variety of cheese products. On 31 December 2020,
Synlait Foods (Talbot Forest) Limited was amalgamated into Dairyworks Limited.
On 1 April 2020, the Group acquired 100% of the share capital in Dairyworks Limited. Dairyworks Limited specialises in
the processing, packaging, and marketing of dairy products, including cheese, butter, and milk powder.
On 3 August 2020 Synlait Milk (Holdings) No.1 Limited was incorporated for the purposes of holding newly acquired land
located adjacent to the Group’s Dunsandel Operations. Synlait Milk (Holdings) No.1 Limited was previously known as
Synlait Milk (Dunsandel Farms) Limited.
22. OTHER INVESTMENTS (CONTINUED)
Synlait Milk Limited held, either directly or indirectly, interests in the following entities at the end of the reporting period:
Equity holding

Name of entity
Country of
incorporation
Class of
shares
2023
%
2022
%
Synlait Milk Finance Limited (Subsidiary)New ZealandOrdinary100100
The New Zealand Dairy Company Limited (Subsidiary)New ZealandOrdinary100100
Eighty Nine Richard Pearse Drive Limited (Subsidiary)New ZealandOrdinary100100
Sichuan New Hope Nutritional Foods Co. Ltd (Associate)ChinaOrdinary2525
Synlait Business Consulting (Shanghai) Co., Ltd (Subsidiary)ChinaOrdinary100100
Synlait Milk (Holdings) No.1 Limited (Subsidiary)New ZealandOrdinary100100
Dairyworks Limited (Subsidiary)New ZealandOrdinary100100
Synlait Milk (Dunsandel Farms) Limited (Subsidiary)New ZealandOrdinary100100
Primary Collaboration New Zealand LimitedNew ZealandOrdinary1717
Primary Collaboration New Zealand (Shanghai) Co., Ltd (Subsidiary)ChinaOrdinary100100
Centre for Climate Action Joint VentureNew ZealandOrdinary2-
PAGE 119 & 120ANNUAL REPORT 2023

On 25 May 2022 Synlait Milk (Dunsandel Farms) Limited was incorporated for the purposes of dairy farming operations
on land located adjacent to the Group’s Dunsandel Operations.
Key management and personnel compensation
Other than their salaries and bonus incentives, there are no other benefits paid or due to executive leadership team
members as at 31 July 2023. The total short-term benefits paid to the key management and personnel is set out below.
20232022
$’000$’000
Short term benefits7,0956,727
Share based payments expenses (note 17)1115
20232022
$’000$’000
Purchase of goods and services
Bright Dairy and Food Co Ltd – Directors fees267311
New Hope Innovation (Hong Kong) Trading Company Limited – reimbursement of costs-582
Sale of goods and services
Bright Dairy and Food Co Ltd – sale of dairy products1,80732,671
Sichuan New Hope Nutritional Food Co. Ltd – sale of milk powder products-408
New Hope Innovation (Hong Kong) Trading Company Limited – sale of milk powder products-163
(b) Transactions with other related parties
(a) Other transactions with key management personnel or entities related to them
Information on transactions with key management personnel or entities related to them, other than compensation, are
set out below.
(i) Loans to directors
There were no loans to directors issued during the period ended 31 July 2023 (2022: $nil).
(ii) Other transactions and balances
Directors of Synlait Milk Limited own and control 2.4% of the voting shares of the company at balance date (2022: 2.4%)
(c) Outstanding balances
The following balances are outstanding at the reporting date in relation to transactions with related parties other than key
management personnel:
20232022
$’000$’000
Current receivables (payables)
Bright Dairy and Food Co Ltd – sale of milk powder products609(27)
Bright Dairy and Food Co Ltd – reimbursement of costs(1,118)(1,072)
Sichuan New Hope Nutritionals Ltd – sale of milk powder products-(65)
Sichuan New Hope Nutritionals Ltd – other costs-740
25. COMMITMENTS
Capital commitments
Capital expenditure contracted for at the end of the reporting period but not yet incurred is as follows:
The above balances have been committed in relation to future expenditure on capital projects. Amounts already spent
have been included as work in progress.
20232022
$’000$’000
Pokeno modifications7455,304
Dunsandel reverse osmosis capacity expansion-2,712
Other operational capital expenditure-3,658
Total74511,674
24. CONTINGENCIES
No significant contingent liabilities are outstanding at balance date (2022: $nil).
23. RELATED PARTY TRANSACTIONS (CONTINUED)
PAGE 121 & 122ANNUAL REPORT 2023

26. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 18 September 2023, the Group completed the refinancing of its debt facilities. Refer to note 14 for additional
information.
On 15 September 2023, the Group received notice from The a2 Milk Company purporting to cancel the exclusivity
arrangements under the Nutritional Powders Manufacturing and Supply Agreement (NPMSA) for the a2 Platinum® and
other nutritional products that the company produces. The Group disputes that The a2 Milk Company has the right to
cancel the exclusivity arrangements. The potential impact on forecast sales volumes has been considered and reflected
in the Group’s forecast financial results as well as in the five-year forecast on which goodwill and asset impairment testing
is based (refer to note 11). No significant impacts have been noted.
27. OTHER ACCOUNTING POLICIES
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, call deposits and cash held on trust by Tax Management
New Zealand Ltd.
Goods and Services Tax (GST)
The profit and loss components of the statement of comprehensive income have been prepared so that all components
are stated exclusive of GST. All items in the financial position are stated net of GST, with the exception of receivables and
payables, which include GST invoiced.
INDEPENDENT AUDITOR’S REPORT TO THE
SHAREHOLDERS OF SYNLAIT MILK LIMITED
Our opinion
In our opinion, the accompanying financial statements of Synlait Milk Limited (the Company), including its subsidiaries (the Group), present fairly, in
all material respects, the financial position of the Group as at 31 July 2023, its financial performance and its cash flows for the year then ended in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
What we have audited
The Group’s financial statements comprise:
• the statement of financial position as at 31 July 2023;
• the income statement for the year then ended;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include significant accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners
(including International Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and the
International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards
Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group that are related to our role as the Group’s auditor and in the area of a logistics review. The provision of
these other services have not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current
year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

PricewaterhouseCoopers, PwC Centre, 60 Cashel Street, PO Box 13244, Christchurch 8141, New Zealand
T: +64 3 374 3000, pwc.co.nz

Independent auditor’s report
To the shareholders of Synlait Milk Limited
Our opinion
In our opinion, the accompanying financial statements of Synlait Milk Limited (the Company), including its
subsidiaries (the Group), present fairly, in all material respects, the financial position of the Group as at
31 July 2022, its financial performance and its cash flows for the year then ended in accordance with
New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and International
Financial Reporting Standards (IFRS).
What we have audited
The Group's financial statements comprise:
● the statement of financial position as at 31 July 2022;
● the income statement for the year then ended;
● the statement of comprehensive income for the year then ended;
● the statement of changes in equity for the year then ended;
● the statement of cash flows for the year then ended; and
● the notes to the financial statements, which include significant accounting policies and other explanatory
information.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ))
and International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code
of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) (PES
1) issued by the New Zealand Auditing and Assurance Standards Board and the International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the International
Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
Our firm carried out other services for the Group in the areas of unusual transaction analysis, historic
performance analysis and training services. The provision of these other services has not impaired our
independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements of the current year. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.

PAGE 123 & 124ANNUAL REPORT 2023

DESCRIPTION OF THE
KEY AUDIT MATTER
Capital structure and funding
The Group’s loans and borrowings (bank borrowings and subordinated
retail bonds) as at 31 July 2023 were $422.7m (31 July 2022: $354.5m).
The higher debt levels resulted from reduced profitability and operating
cash flows due to events and conditions detailed in the going concern
note, which in turn required the Group to engage with its banking
syndicate during the year to amend certain banking covenants. The Group
has complied with its amended banking covenants as at 31 July 2023.
All of the Group’s bank borrowings were classified as current liabilities
at 31 July 2023 due to these facilities expiring on 1 October 2023. In
addition, the subordinated bonds of $180m mature on 17 December 2024.
On 18 September 2023 the Group executed new banking facilities with an
expanded banking syndicate. The facilities have a mix of one and two year
terms and limits that reduce during the facility term as outlined in note
14. In addition, the Group now has a requirement to repay the higher of
the proceeds from the proposed sale of Dairyworks or $130m by no later
than 31 March 2024. The sale of Dairyworks is considered highly probable
by the Directors and as such has been presented as a discontinued
operation in the financial statements.
The majority of new banking covenants are in line with the covenants as
at 31 July 2023. However, the leverage ratio and senior leverage ratio
reduce significantly to 3.5x and 2.25x (from 5.5x and 3.5x) respectively
on 31 July 2024. As a result, the new banking facilities therefore require
reduction over the next 12 months.
Consideration also needs to be given to the maturity of the subordinated
bonds and how this is repaid or refinanced.
On 15 September 2023, The A2 Milk Company, a key customer, notified
the Group that it was seeking to end exclusivity rights for production of its
infant milk formula products. Management did not identify any significant
impacts on the FY 24 forecasts as the risk was anticipated and considered
as part of the forecasting process.
Uncertainties exist in relation to future events and operating conditions
of the Group and its ability to repay debt in line with maturity dates and
comply with bank facility covenants. To address these uncertainties
management has prepared forecasts that consider a range of scenarios
and considered the viability of other alternative strategies to reduce
debt. The Directors concluded that, after having carefully considered the
forecast financial performance, the recently executed banking facilities,
expected compliance with covenants and capital requirements attached
to those facilities, the current stage of negotiations to sell Dairyworks and
the alternative debt reduction strategies available to them, that there are
no material uncertainties that may cast significant doubt upon the Group’s
ability to continue as a going concern.
Because of the significance of the judgements involved in these
assumptions, we have considered this to be an area of focus for the audit.
HOW OUR AUDIT ADDRESSED
THE KEY AUDIT MATTER
We considered the Group’s assessment of their ability to reduce debt in
line with the debt maturity profile, their forecast compliance with the new
banking covenants, the reasonableness of the alternative debt reductions
strategies as well as the consequential impact of these matters on the
Directors’ assessment of the Group’s ability to continue as a going concern,
including whether or not material uncertainties exist. Our procedures
included the following:
• read the Group’s going concern paper to obtain an understanding of
the key assumptions and judgements made;
• read the new executed facility agreements between the Group and
its banking syndicate to obtain an understanding of the key terms
including facility limits, repayment terms and banking covenants;
• tested the mathematical accuracy of management’s forecasted
covenant calculations for the year ending 31 July 2024;
• challenged management’s forecasted cash flow assumptions and
sensitivity analysis including the assumptions around any potential
cash flow implications from the notice of cancellation of exclusivity
from The A2 Milk Company on 15 September 2023;
• obtained an update from management and their advisors on the
status of the Dairyworks sales process and considered whether it was
reasonable that this met the test of highly probable as outlined in NZ
IFRS 5;
• considered the Group’s plans and intentions with respect to the
maturity of the subordinated bonds;
• with the assistance of our treasury experts, considered the
reasonableness of the Group’s determination of alternative strategies
available to reduce debt levels, including the external advice obtained
by management on the viability and timelines for these alternative
strategies;
• engaged our internal treasury experts to assist with our considerations
of various elements of the future funding plans of the Group; and
• considered the appropriateness of the Group’s disclosure.
HOW OUR AUDIT ADDRESSED
THE KEY AUDIT MATTER
We considered the appropriateness of the Group’s conclusion on
classifying the Dairyworks disposal group assets and liabilities held for sale.
For the goodwill and assets and liabilities held for sale impairment
assessments, our audit focused on assessing and challenging the key
assumptions used by management.
Our procedures included the following:
• evaluated the appropriateness of the identification of the Group’s
CGUs;
• compared the cash flows included in management’s impairment
model to the board approved plans;
• assessed the Group’s forecasting accuracy by comparing historical
forecasts to actual results, taking into consideration the impact of the
Covid-19 pandemic and the impacts of the SAP implementation;
• discussed with management the basis for the cash flow forecasts
and the key drivers of change in the forecasts, including internal and
external factors;
• obtained an update from management and their advisors on the
status of the Dairyworks sales process and indicative pricing;
• engaged our valuation expert to assist us with:
• considering whether the valuation methodology applied was
appropriate;
• assessing whether the discount rates and long term growth
rates used by management are reasonable in the context of the
forecasts; and
• considering management’s paper comparing the net assets and
the market capitalisation of the Company, in the context of our
stand back assessment of the impairment test;
• tested the accuracy of the calculations in management’s impairment
model, and checking that the carrying amount for the CGU’s net
assets was correctly included in the impairment assessment;
• evaluated the reasonableness of management’s forecast cash flows;
• performed sensitivity analyses for the effect of reasonably possible
changes in key assumptions on the impairment assessment;
• evaluated the effect of the trading results and market announcements
up to the date of our report including the impact of The a2 Milk
Company Limited exclusivity notice of cancellation; and
• considered the appropriateness of disclosures in the financial
statements.
DESCRIPTION OF THE
KEY AUDIT MATTER
Impairment assessment
As per note 11 to the financial statements the Group has two cash
generating units (CGUs) being Synlait Milk and Dairyworks.
On 2 June 2023 the Group announced its intention to divest its subsidiary
Dairyworks Limited. Dairyworks met the criteria of an asset held for sale
and therefore the goodwill ($58.2m) and brands ($16.6m) related to the
Dairyworks CGU was included within the disposal group and considered
by the Group for impairment in line with the requirements under NZ IFRS 5.
Assets held for sale are carried at the lower of the carrying value or the fair
value less cost to sell. The carrying value of the assets and liabilities held
for sale as at 31 July 2023 amounted to $117m as per note 1. The Group
determined the fair value less cost to sell exceeded the carrying value of
the disposal group and no associated impairment was recognised.
$6m of goodwill was allocated to the Synlait Milk CGU. The Group based
its impairment assessment of the Synlait Milk CGU on a value in use basis,
using a discounted cash flow model based on forecast future performance
to determine the recoverable amount. Management performed sensitivity
analysis for the effect of reasonable possible changes in key assumptions
on the impairment assessment and included the relevant disclosures.
The key assumptions in the impairment assessment are the cash flow
forecasts (through annual growth rates for revenue and expenses),
terminal growth rate and the discount rate.
On 15 September 2023, The a2 Milk Company Limited, a key customer,
notified the Group that it was seeking to end exclusivity rights for
production of its infant milk formula products. Management did not identify
any significant impacts on the FY 24 forecasts as the risk was anticipated
and considered as part of the forecasting process.
As part of the impairment assessment process, management performed a
comparison of the net assets to the market capitalisation of the Company
and prepared an analysis and explanation of the difference.
Management considered the reasons for this difference in finalising their
assessment of the recoverable amounts of the Group’s CGUs.
The impairment testing of the Synlait Milk goodwill and the Dairyworks
assets and liabilities held for sale is considered a key audit matter due to
the materiality of the balances, the gap between the Group’s net assets
and its market capitalisation, and the significant level of management
estimation and judgement applied in determining key assumptions used
in the impairment assessments.
PAGE 125 & 126ANNUAL REPORT 2023

Our audit approach
Overview
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we
considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions
and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls,
including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether the financial
statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the financial
statements as a whole as set out above. These, together with qualitative considerations, helped us to determine the scope of our audit, the nature, timing
and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into
account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
Full scope audits were performed for two entities in the Group based on their financial significance being Synlait Milk Limited and Dairyworks Limited.
Specified audit procedures and analytical review procedures were performed on the remaining entities.

PwC

Our audit approach

Overview

Overall group materiality: $8,000,000, which represents
approximately 0.5% of total revenues.
We chose total revenues as the benchmark because, in our view, it
is the benchmark against which the performance of the Group is
most commonly measured by users, and is a generally accepted
benchmark.
Following our assessment of the risk of material misstatement, we
selected Synlait Milk Limited and Dairyworks Limited entities for full
scope audits, comprising the principal business units. Specified
procedures over certain material balances and transactions and
analytical review procedures were performed over the remaining
entities.
As reported above, we have two key audit matters, being:
● Temuka cheese manufacturing plant asset impairment; and
● Sale and leaseback transaction

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in
the financial statements. In particular, we considered where management made subjective judgements; for
example, in respect of significant accounting estimates that involved making assumptions and considering
future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters, consideration of whether there was evidence of
bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including
the overall Group materiality for the financial statements as a whole as set out above. These, together with
qualitative considerations, helped us to determine the scope of our audit, the nature, timing and extent of our
audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the
financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the
financial statements as a whole, taking into account the structure of the Group, the accounting processes and
controls, and the industry in which the Group operates.
Full scope audits were performed for two entities in the Group based on their financial significance being
Synlait Milk Limited and Dairyworks Limited.
Specified audit procedures and analytical review procedures were performed on the remaining entities.
All audit procedures were performed by PricewaterhouseCoopers New Zealand.

Overall group materiality: $8,000,000, which represents 0.5% of total revenue from continuing and
discontinued operations.
We chose total revenue from continuing and discontinued operations as the benchmark because, in our view,
it is the benchmark against which the performance of the Group is most commonly measured by users, and is a
generally accepted benchmark.
Full scope audits were performed for two entities in the Group based on their financial significance being
Synlait Milk Limited and Dairyworks Limited.
Specified audit procedures and analytical review procedures were performed on the remaining entities.
As reported above, we have two key audit matters, being:
• Capital structure and funding
• Impairment assessment
Other information
The Directors are responsible for the other information. The other information comprises the information included in the annual report, but does not include
the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS
and IFRS, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might state those matters which
we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have
formed.
The engagement partner on the audit resulting in this independent auditor’s report is Elizabeth Adriana (Adri) Smit.
For and on behalf of:
Chartered Accountants
25 September 2023

PwC

Other information
The Directors are responsible for the other information. The other information comprises the information
included in the Annual report, but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work
we have performed on the other information that we obtained prior to the date of this auditor’s report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the
financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the Directors
determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the External
Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so
that we might state those matters which we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for
the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Elizabeth Adriana (Adri)
Smit.
For and on behalf of:

Chartered Accountants
27 September 2022 Christchurch

PAGE 127 & 128ANNUAL REPORT 2023

STATUTORY
INFORMATION
Synlait is a nutrition company. We combine expert farming with state-of-the-
art processing to produce a range of Advanced Nutrition, Foodservice and
Ingredient products. In the year to 31 July 2023, we made no changes to our
company structures.
In June 2023, Synlait announced its intention to divest its Dairyworks and its
Temuka assets. Synlait’s Board and Management are undertaking a strategy
and capital structure refresh, including an asset review. To ensure greater focus
and execution of Synlait’s overall business strategy, the company intends to
divest of Dairyworks and its Temuka assets. The divestment process remained
underway as at the end of this financial year.
01. BUSINESS OPERATIONS
Jersey Oaks in Culverden. Owner Tim Delaney –
winner of Synlait’s Annual Dairy Honours Award,
Kotahitanga.
ANNUAL REPORT 2023PAGE 129 & 130

Synlait’s Directors are profiled on our website synlait.com/people/. This table sets out the people that held office
(or ceased to hold office) as a Director of Synlait and its subsidiaries during the year ending 31 July 2023:
Synlait has considered the independence of its three Independent Directors against the definition in the NZX Listing
Rules, the commentary to recommendation 2.4 in the NZX Corporate Governance Code and its Board Charter and is
satisfied its Independent Directors meet the requirements for independence.
As permitted by waivers from the NZX Listing Rules, Bright Dairy Holdings Limited, a shareholder of Synlait, is entitled
to appoint four Directors to Synlait’s Board. One of those Directors must ordinarily reside in New Zealand and have local
commercial and governance experience for an NZX listed company. Currently that Director is Hon. Ruth Richardson.
02. DIRECTORS
Company Directors Appointed
Synlait Milk Limited
Synlait Milk Finance Limited
Simon Robertson (Chair)Independent25 November 2020
Dr. Gui Min (Gracie)¹Bright Dairy Appointed1 February 2022
Ian (Sam) Knowles²Independent4 July 2013
Dr. John Penno³Board Appointed 21 July 2013
Min Chen (Joyce)⁴Bright Dairy Appointed1 December 2021
Paul McGilvary⁵Independent24 January 2022
Paul Washer⁶Independent2 December 2022
Ruibing Liu (Ryan)⁷Bright Dairy Appointed19 June 2023
Hon. Ruth Richardson⁸Bright Dairy Appointed16 November 2016
Sihang Yang (Edward)Bright Dairy Appointed11 November 2010
Yi Zhu (Julia)⁷Bright Dairy Appointed19 June 2023
CompanyDirectors
The New Zealand Dairy
Company Limited
Grant Watson
Robert Stowell
Eighty Nine Richard Pearse
Drive Limited
Grant Watson
Robert Stowell
Synlait Business Consulting
(Shanghai) Co., Ltd
Martijn Jager
Deborah Marris
Boyd Williams
Grant Watson⁹
Robert Stowell⁹
Paul Mallard⁹
The following declarations of interest were made by Directors of Synlait and its subsidiaries under section 140 of the
Companies Act 1993. Entries which are italicised indicate new disclosures during the year ended 31 July 2023.
03. DIRECTOR INTERESTS
1
Dr Gui Min (Gracie) retired from the Board on 19 June 2023.
2
Sam Knowles retired from the Board on 2 December 2022.
3
Dr. John Penno had previously been a Director of Synlait Limited, which has since been removed from the Register of Companies. When first appointed to the Board of Synlait Milk Limited,
John was CEO and Managing Director. In November 2018, following stepping down as CEO, he became the Board Appointed Director. In May 2021 John became Interim CEO following the
resignation of then CEO Leon Clement. The Board determined that Dr. John Penno was the best person to act as Chair once Grant Watson took up the CEO role in January 2022. As a result
of John’s long history with the company, the Board considered that Dr. John Penno was not an Independent Director under the NZX Listing Rules. To manage the fact that Dr. John Penno was
not an Independent Director, the Board sought to change the Constitution to enable the Chair to be either an Independent Director or the Board Appointed Director at the Annual Meeting on
1 December 2021. The resolution was passed by shareholders and John remains the Board Appointed Director. John stood down as Chair at the 2022 Annual Meeting and resumed his role
as a Board Appointed Director.
4
Min Chen (Joyce) retired from the Board on 19 June 2023.
5
Paul McGilvary was appointed by the Board in January 2022 to fill a casual vacancy and was re-elected to the Board as an Independent Director by shareholders at the
2022 Annual Meeting.
⁶ Paul Washer was elected to the Board at the 2022 Annual Meeting on 2 December, replacing Sam Knowles who retired by rotation.
⁷ Ruibing Liu (Ryan) and Yi Zhu (Julia) replaced Dr. Gui Min (Gracie) and Min Chen (Joyce) as Bright Dairy Appointed Directors on 19 June 2023.
⁸ When first appointed to the Board of Synlait Milk Limited, Hon. Ruth Richardson was an Independent Director. In 2013, she became a Bright Dairy Appointed Director.
⁹ Grant Watson and Robert Stowell were appointed Directors by Resolution dated September 2022 and Paul Mallard in March 2023. The paperwork is currently being processed in China
to formally enact the change.
Simon Robertson
Director and Shareholder Synlait Milk Limited
Director Synlait Milk Finance Limited
Director Alliance Group Limited
Director Ballance Agri-Nutrients Limited
Trustee Robertson Family Trust
Trustee G R Foot Trust
Trustee Norman Family Trust
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
CompanyDirectors
Dairyworks LimitedTimothy Carter
Grant Watson
Synlait Milk (Dunsandel Farms) LimitedGrant Watson
Robert Stowell
Synlait Milk (Holdings) No.1 Limited Grant Watson
Robert Stowell
PAGE 131 & 132ANNUAL REPORT 2023

Paul McGilvary²
Director and Shareholder Synlait Milk Limited
Director Synlait Milk Finance Limited
Director AsureQuality Limited³
Director BVAQ Pty Ltd (Australia)⁴
Waikato Milking Systems Limited Partnership⁵
WMS GP Limited⁵
Waikato Milking Systems Lease Limited⁵
New Zealand Hops Limited
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
Paul Washer¹
Director Synlait Milk Limited
Director Synlait Milk Finance Limited
Chief Financial Officer and Shareholder Pact Group Holdings (Australia) Pty Ltd and Director of Pact Group subsidiaries²
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
Ruibing Liu (Ryan)³
Director Synlait Milk Limited
Director Synlait Milk Finance Limited
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
Sihang Yang (Edward)
Director Synlait Milk Limited
Director Synlait Milk Finance Limited
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
1
TCL Holdings Limited (previously Trust Codes Limited) was a supplier to Synlait on normal terms of trade until October 2022, but has not provided services to the Group after
that date. Since Okuora Holdings Limited invested in Signum Holdings Limited, there has, and continues to be, a protocol in place whereby John Penno abstains from all
Board discussions and decisions involving the supply arrangements between Synlait and TCL Holdings Limited.
2
Paul McGilvary was appointed by the Board in January 2022 to fill a casual vacancy and was re-elected to the Board as an Independent Director by shareholders at the 2022
Annual Meeting.
³ Paul McGilvary was Acting Chair of AssureQuality from 17 October 2022 until 1 July 2023 and is a Director from 1 July 2023 onwards.
⁴ Paul McGilvary was Chair of BVAQ Pty Ltd (Australia) until 1 January 2023 and is a Director from 1 January 2023 onwards.
⁵ Paul McGilvary ceased as a Director 31 May 2023.
1
Paul Washer was appointed to the Board on 2 December 2022.
2
Pact Group Holdings (Australia) Pty Ltd is the ultimate holding company of a number of subsidiaries, some of which, Paul Washer is also a Director. Pact Group, via its subsidiaries Alto
Packaging Limited, Astron Plastics Limited and VIP Plastic Packaging (NZ) Limited, is a supplier to Synlait on normal terms of trade. Pact Group was a supplier to Synlait prior to Paul Washer
becoming a Director of Synlait. There is a protocol in place whereby Paul Washer abstains from all Board discussions and decisions involving the supply arrangements between Synlait and
Pact Group.
³ Ruibing Liu (Ryan) as appointed to the Board on 19 June 2023.
03. DIRECTOR INTERESTS (CONTINUED)
Hon. Ruth Richardson
Director and Shareholder Synlait Milk Limited
Director Synlait Milk Finance Limited
Director Ruth Richardson (NZ) Limited
Director New Zealand Taxpayers’ Union
Trustee Christchurch Early Intervention Trust
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
Dr. John Penno
Director and Shareholder Synlait Milk Limited
Director Synlait Milk Finance Limited
Director Okuora Farms Limited
Director and Shareholder Okuora Holdings Limited (and through Okuora Holdings Limited, shareholder in Pastoral Robotics Limited
and The Pure Food Co Limited, shareholder in Signum Holdings Limited and creditor of it and its subsidiaries)
Chair and Shareholder Wangapeka River Hops Limited
Chair and Shareholder The Pure Food Co Limited
Director and Shareholder Leaft Foods Limited
Director and Shareholder Thorndale Dairies Limited
Director and Shareholder The New Zealand Merino Company Limited
Trustee John Penno Trust
Through Signum Holdings Limited, shareholder in TCL Holdings Limited (previously Trust Codes Limited) and Cloud Computing
Continuation Services Limited1
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
PAGE 133 & 134ANNUAL REPORT 2023

No new disclosures were made during the period by Dr. Gui Min (Gracie) who retired from the Board on 19 June 2023.
No new disclosures were made during the period by Min Chen (Joyce) who retired from the Board on 19 June 2023.
No new disclosures were made during the period by Sam Knowles who retired from the Board on 2 December 2022.
No Director requested to disclose or use information in their possession as a Director of Synlait or its subsidiaries
that would not otherwise have been available to them. As permitted by section 162 of the Companies Act 1993 and
Synlait’s constitution, Synlait indemnifies and insures Directors and Officers against liability to other parties that may
arise in the course of their activities as a Director or Officer of Synlait. Details of the indemnities and insurance are
kept in Synlait’s Interests Register. This cover does not apply to any liabilities arising from criminal or reckless acts by
our Directors or Officers.
For the purposes of section 148(2) of the Companies Act 1993, no further disclosures were made by the Directors in
respect of the increase or decrease in their shareholdings.
Robert Stowell
Director Synlait Milk (Dunsandel Farms) Limited
Director Eighty Nine Richard Pearse Drive Limited
Director The New Zealand Dairy Company Limited
Director Synlait Milk (Holdings) No.1 Limited
Director Synlait Business Consulting (Shanghai) Co., Ltd²
Director and Shareholder Orange Homes (2022) Limited
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
Timothy Carter
Director Dairyworks Limited
Director and Shareholder Niko Holdings 2003 Limited
Shareholder Tatahi Holdings Limited
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
Paul Mallard
Director Synlait Business Consulting (Shanghai) Co., Ltd²
03. DIRECTOR INTERESTS (CONTINUED)
Grant Watson
Director Dairyworks Limited
Director Synlait Milk (Dunsandel Farms) Limited
Director Eighty Nine Richard Pearse Drive Limited
Director The New Zealand Dairy Company Limited
Director Synlait Milk (Holdings) No.1 Limited
Director Synlait Business Consulting (Shanghai) Co., Ltd²
Shareholder 365 Ventures Limited³
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
1
Yi Zhu (Julia) was appointed to the Board on 19 June 2023.
² Grant Watson and Robert Stowell were appointed Directors by Resolution dated September 2022 and Paul Mallard in March 2023. The paperwork is currently being processed in China
to formally enact the change.
³ Grant Watson has advised (prior to becoming a shareholder) that 365 Ventures Limited (trading as Safe365) is a supplier to Dairyworks Limited, a Synlait subsidiary, on normal terms
of trade. Safe365 was a supplier to the Group prior to Grant Watson becoming a Director of Dairyworks. There is a protocol in place whereby Grant Watson abstains from all Board
discussions and decisions involving the supply arrangements between Dairyworks and 365 Ventures Limited.
Yi Zhu (Julia)¹
Director Synlait Milk Limited
Director Synlait Milk Finance Limited
Receipt of Directors’ Fees from Synlait Milk Limited at approved rate
Insurance cover arranged by Synlait Milk Limited
Deed of Indemnity and Access from Synlait Milk Limited
PAGE 135 & 136ANNUAL REPORT 2023

This table sets out the relevant interests held by Directors during the period in securities issued by Synlait:
05. DIRECTOR HOLDINGS
Directors Securities held (legally or beneficially) as at 31 July 2023Securities held (legally or beneficially) as at 31 July 2022
Simon Robertson13,324 ordinary shares13,324 ordinary shares
Dr. Gui Min (Gracie)¹0 0
Dr. John Penno5,109,803 ordinary shares 5,109,803 ordinary shares
Min Chen (Joyce)²00
Paul McGilvary³00
Paul Washer⁴0 0
Ruibing Liu (Ryan)⁵00
Hon. Ruth Richardson66,025 ordinary shares66,025 ordinary shares
Ian (Sam) Knowles⁶64,803 ordinary shares64,803 ordinary shares
Sihang Yang (Edward)00
Yi Zhu (Julia)⁷00
This table sets out the total remuneration and the value of other benefits received by Synlait Directors during the year
ended 31 July 2023:
Directors Role Remuneration
Simon RobertsonDirector
Board Chair
$118,667¹
Dr. Gui Min (Gracie)Director$77,788²
Dr. John PennoDirector$118,600³
Min Chen (Joyce)Director$77,788⁴
Paul McGilvaryDirector
Chair of People, Environment and Governance Committee
$96,400⁵
Paul WasherDirector
Chair of Audit and Risk Committee
$68,799⁶
Ruibing Liu (Ryan)Director $11,113⁷
Hon. Ruth RichardsonDirector$88,900
Sam KnowlesDirector $33,633⁸
Sihang Yang (Edward)Director$88,900
Yi Zhu (Julia)Director$11,113⁹
There was no change to the fees paid to Directors of Synlait this financial year. The below fees, as approved by
shareholders on 27 November 2019 and effective 1 April 2020, are:
04. DIRECTOR REMUNERATION
RoleFee
Directors, excluding the Chair and Committee Chairs$88,900
Board Chair$178,000
Audit and Risk Committee Chair$104,150
People Environment and Governance Committee Chair$100,900
Fees are not paid to Directors or employees of Synlait for acting as a Director of any Synlait subsidiaries.
1
Simon Robertson was appointed Chair of the Board on 2 December 2022.
2
Dr. Gui Min (Gracie) retired from the Board on 19 June 2023.
3
Dr. John Penno was the Chair of the Board until 2 December 2022..
4
Min Chen (Joyce) retired from the Board on 19 June 2023.
5
Paul McGilvary was appointed Chair of People, Environment and Governance Committee on 16 December 2022.
6
Paul Washer was appointed to the Board on 2 December 2022 and was appointed Chair of the Audit and Risk Committee on 16 December 2022.
7
Ruibing Liu (Ryan) was appointed to the Board on 19 June 2023.
⁸ Sam Knowles retired from the Board on 2 December 2022.
⁹ Yi Zhu (Julia) was appointed to the Board on 19 June 2023.
1
Dr. Gui Min (Gracie) retired from the Board on 19 June 2023.
2
Min Chen (Joyce) retired from the Board on 19 June 2023.
3
Paul McGilvary was appointed by the Board in January 2022 to fill a casual vacancy and was re-elected to the Board as an Independent Director by shareholders at the
2022 Annual Meeting.
4
Paul Washer was appointed to the Board on 2 December 2022.
5
Ruibing Liu (Ryan) was appointed to the Board on 19 June 2023.
⁶ Sam Knowles retired from the Board on 2 December 2022.
⁷ Yi Zhu (Julia) was appointed to the Board on 19 June 2023.
PAGE 137 & 138ANNUAL REPORT 2023

In the year to 31 July 2023, Synlait’s total payments to its auditors PricewaterhouseCoopers were as follows:
08. AUDITORS
Dairyworks Limited, a subsidiary of Synlait, made cheese donations to a value of $20,686 in the year to 31 July 2023.
These were the only donations made by the Synlait Group in the financial year.
07. DONATIONS
Chief Executive Officer Remuneration
The table below sets out remuneration paid to Synlait’s Chief Executive Officer in the year to 31 July 2023:
RemunerationGrant Watson
Salary$900,000
Total fees paidN/A
KiwiSaver employer contribution$27,000
Medical insurance employer contribution$1,012.89
Short term incentive schemeN/A
Long term incentive schemeN/A
Total remuneration$928,012,89
Statutory audit $410,000
Half audit review$74,000
Other assurance services$220,000
Consulting$52,000
Total$756,000
During the year ended 31 July 2023, 440 employees (including former employees) of Synlait and its subsidiaries (not being
Directors) received remuneration and other benefits, in their capacity as employees, of $100,000 or more, information
includes overtime and company contribution to KiwiSaver, as set out below:
06. EMPLOYEE REMUNERATION
Salary bracket ($)Number of employees
100,000 – 109,999 88
110,000 – 119,99979
120,000 – 129,99964
130,000 – 139,99948
140,000 – 149,99935
150,000 – 159,99920
160,000 – 169,99923
170,000 – 179,99915
180,000 – 189,99913
190,000 – 199,9999
200,000 – 209,9994
210,000 – 219,9995
220,000 – 229,9993
230,000 – 239,9996
240,000 – 249,9991
250,000 – 259,9994
260,000 – 269,9993
270,000 – 279,9993
280,000 – 289,9992
290,000 – 299,9991
330,000 – 339,9992
360,000 – 369,9992
370,000 – 379,9992
390,000 – 399,9991
400,000 – 409,9991
420,000 – 429,9991
450,000 – 459,9991
470,000 – 479,9991
530,000 – 539,9991
650,000 – 659,9991
780,000 – 789,9991
920,000 – 929,9991
Total440
Synlait’s Strategic Remuneration policy is approved by Synlait’s People, Environment and Governance Committee.
That Committee also reviews and recommends to the Board the remuneration of the Chief Executive Officer and the Executive
Leadership Team.
PAGE 139 & 140ANNUAL REPORT 2023

According to notices given under section 280(1)(b) of the Financial Markets Conduct Act 2013, the following are Synlait’s
substantial product holders as at 31 July 2023. The number of shares owned is as advised by the shareholder in their last
Substantial Security Holder Notice.
Substantial product holderNumber of ordinary shares in
which relevant interest is held
Percentage of total
ordinary shares on issue
Bright Dairy Holding Limited85,266,60539.01%
The a2 Milk Company Limited43,352,50919.83%
Total128,619,11458.84%
Synlait had the following securities on issue as at 31 July 2023:
• 218,581,661 ordinary shares
• 180,000,000 subordinated bonds.
Set out below are Synlait’s 20 largest shareholders as at 31 July 2023:
10. TOP 20 SECURITY HOLDERS AND SUBSTANTIAL SECURITY HOLDERS
Number of shares held Percentage of ordinary
shares on issue
01. Bright Dairy Holding Limited85,266,60539.0%
02. The a2 Milk Company (NZ) Limited43,352,50919.8%
03. Accident Compensation Corporation 7,881,7123.6%
04. New Zealand Funds Management Ltd.6,381,4252.9%
05. Chester Asset Management Pty Ltd.5,380,0002.5%
06. John Penno 5,109,8032.3%
07. The Vanguard Group, Inc.3,347,1221.5%
08. L S Keeper1,975,0000.9%
09. MMC Limited 1,852,4590.8%
10. Smartshares Limited 1,621,0260.7%
11. State Street Global Advisors Australia Ltd.1,589,3890.7%
12. Norges Bank Investment Management (NBIM)1,491,1750.7%
13. Devon Funds Management Limited1,386,7190.6%
14. First NZ Capital Custodians Limited (Various Private Investors)1,364,2700.6%
15. Guardians of New Zealand Superannuation1,183,6820.5%
16. Paul & Bronwyn Lancaster 1,055,6230.5%
17. BNP Paribas Nominees (NZ) Limited – A/C NZCSD931,3170.4%
18. Dimensional Fund Advisors, L.P.921,5710.4%
19. Castle Point Funds Management Limited 901,4140.4%
20. Therese Roche900,0000.4%
Total 173,892,82179.6%
Synlait’s ordinary shares have been listed on the NZX Main Board since 23 July 2013 (ticker code: SML). On 24 November
2016 Synlait completed a compliance listing on the ASX as a foreign exempt issuer (ticker code: SM1). As an ASX foreign
exempt issuer, Synlait complies with the NZX Listing Rules (other than as waived by NZX Regulation) and is exempt from
complying with most of the ASX Listing Rules, as set out in ASX Listing Rule 1.15. In December 2019, Synlait issued $180
million of unsecured, subordinated, fixed rate bonds with an interest rate of 3.83% per annum. These securities are
quoted and trade on the NZX Debt Market (ticker code: SML010). In November 2020, Synlait successfully completed
a $200 million equity raising to complete the investment phase of its strategy and strengthen its balance sheet. The
equity raise comprised a $180 million underwritten placement at a fixed price of NZ$5.10 per share and a $20 million
underwritten share purchase plan at the same share price.
09. STOCK EXCHANGE LISTINGS
Set out below are Synlait’s largest bondholders as at 31 July 2023:
Number of bonds heldPercentage of total
bonds on issue
01. Custodial Services Limited35,325,00019.63%
02. Hobson Wealth Custodian Limited26,043,00014.47%
03. FNZ Custodians Limited25,395,00014.11%
04. Tea Custodians Limited Client Property Trust Account – NZCSD 22,615,00012.56%
05. Forsyth Barr Custodians Limited9,037,0005.02%
06. Citibank Nominees (New Zealand) Limited – NZCSD5,400,0003.00%
07. RGTKMT Investments Limited3,275,0001.82%
08. Sierra Investments Limited2,945,0001.64%
09. National Nominees Limited – NZCSD2,012,0001.12%
10. BNP Paribas Nominees (NZ) Limited – NZCSD1,994,0001.11%
11. JB Were (NZ) Nominees Limited 1,930,0001.07%
12. FNZ Custodians Limited 1,254,0000.70%
13. MASFEN Securities Limited 981,0000.55%
14. JPMorgan Chase Bank NA NZ Branch-Segregated Clients Acct – NZCSD905,0000.50%
15. Hobson Wealth Custodian Limited869,0000.48%
16. FNZ Custodians Limited865,0000.48%
17. Francis Horton Tuck800,0000.44%
18. Falstaff Investments Limited768,0000.43%
19. Craddock Farms Limited654,0000.36%
20. Khia Goom Phua569,0000.32%
Total143,636,00079.80%
PAGE 141 & 142ANNUAL REPORT 2023

Synlait does not have a credit rating.
The spread of Synlait’s bondholders as at 31 July 2023 is as follows:
12. CREDIT RATING
Size of holding Number of holdersPercentage of holders Total number of bonds Percentage issued
1,001 – 5,000565.89%277,0000.15%
5,001 – 10,00016517.35%1,591,0000.88%
10,001 – 50,000 57360.25%15,596,0008.66%
50,001 – 1,000,00014515.25%25,311,00014.06%
1,000,001 and over 121.26%137,225,00076.24%
Total951100%180,000,000100%
The spread of Synlait’s ordinary shareholders as at 31 July 2023 is as follows:
11. SPREAD OF PRODUCT HOLDERS
Size of holding Number of investors Percentage of investors Total number of shares Percentage issued
1 – 1,0002,79342.81%1,251,2860.57%
1,001 – 5,0002,38336.53%6,231,6232.85%
5,001 – 10,00069010.58%5,222,3242.39%
10,001 – 50,000 5478.38%10,886,2594.98%
50,001 – 1,000,000941.44%15,233,7246.97%
1,000,001 and over 170.26%179,756,44582.24%
Total6,524100%218,581,661100%
On 10 November 2020 Synlait was granted waivers by NZX Regulation in relation to the share offer completed in 2020
(“Share Offer”) comprising a NZ$180 million placement of shares (“Placement”) and a $20 million share purchase plan
(“Share Purchase Plan”) (“Synlait Waiver”). A condition of the Synlait Waiver was that it was disclosed in the Share Offer
document and in our Annual Report.
The Synlait Waiver provides waivers from Listing Rules 4.5.1, 4.5.1(e)(iii), 4.19.1 and 5.2.1 as set out below (with the
conditions):
• Waiver from Rule 4.5.1 to the extent required to allow any shares offered in the Share Purchase Plan and not taken up
by existing shareholders to be issued to other persons without requiring approval by ordinary resolution.
• Conditions: The waiver only applied to shares offered to existing shareholders under the Share Purchase Plan
and as a result of the Share Purchase Plan being undersubscribed were offered to other persons and when
aggregated with the number of shares under the Placement would exceed the 25% threshold in Rule 4.5.1. The
Share Purchase Plan was required to be fully underwritten.
• Waiver from Rule 4.5.1(e)(iii) to the extent that the level of participation of Bright Dairy would be determined according
to criteria applying to all persons participating in the Placement.
• Conditions: Two directors of Synlait (not associated with Bright Dairy) were required to certify to NZX that:
• Synlait was not unduly influenced by Bright in its decision to permit Bright to participate in the Placement at a
higher level of participation than other persons;
• Bright will not be involved in or influence any allocation decision in relation to the Placement;
• Bright will not derive any benefit as a result of its higher level of participation other than to avoid its holding
in Synlait being diluted as a consequence of the Share Offer.
• Waiver from Rule 4.19.1 to the extent that the allotment of shares to Bright in respect of the subscriptions received
under the Placement to occur within 10 business days of the closing date for the Placement.
• Conditions: The allotment of shares to Bright occurs in part on the Placement allotment date and in part on the
Share Purchase Plan allotment date.
• Waiver from Rule 5.2.1 to the extent that Synlait would otherwise require Synlait to obtain approval of shareholders
to enter into a material transaction with any related party in connection with the Placement (referred to as a relevant
party).
• Conditions: Two directors of Synlait (not associated with any relevant party) certifying to NZX that:
• Synlait was not unduly influenced in its decision to undertake the Placement by the relevant parties;
• The relevant parties who participate in the Placement will not be influence any allocation decision in the
Placement
13. NZX WAIVERS
PAGE 143 & 144ANNUAL REPORT 2023

• The relevant party will not derive any benefit as a result of the related party relationship other than solely
through participation in the Share Offer on the same terms as all other participants; and
• Entry into the Placement is in the best interests of Synlait’s shareholders.
• The effect of the NZX Waivers in the context of the Share Offer is to permit:
• An increased number of shares (from what is otherwise provided for under the Listing Rules) to be issued under
the Share Offer without shareholder approval;
• The Share Offer to be fully underwritten, to allow any shares not taken up by eligible shareholders under the
Share Offer to be issued to other persons without requiring shareholder approval (which when aggregated with
the number of Shares issued under the Placement, may exceed the Placement threshold provided under the
Listing Rules as modified by the Class Waiver);
• Bright, The a2 Milk Company Limited and other related parties to be issued Shares in the Placement having an
aggregate value above 10% of Synlait’s average market capitalisation without shareholder approval; and
• Bright to be issued such number of shares under the Placement that will ensure it is not diluted as a result of the
Share Offer, which would otherwise cause Bright to lose its director appointment rights under the Constitution.
Further details of these director appointment rights are included in the Annual Report.
Synlait also made the Share Offer relying on the Class Waiver and ruling issued by NZX Regulation dated 30 September
2020 (Class Waiver). The Class Waiver provides a waiver from Listing Rule 4.5 and a ruling in relation to the definition of
“share purchase plan”.
A copy of the Synlait Waiver and Class Waiver is available at nzx.com and asx.com.au under the ticker code “SML” and
“SM1”, respectively). All of the conditions in the Synlait Waiver have been met.
Synlait continues to rely on waivers granted on 27 November 2019 from various NZX Listing Rules, allowing our
Constitution and Board composition to reflect our non-standard governance arrangements, as described below.
Synlait listed on the NZX on the basis that Bright Dairy and Food Co Limited would be able to continue to consolidate
Synlait into its group financial statements (that are prepared under China GAAP). At the time, Bright Dairy agreed
with Synlait that for so long as Bright Dairy continued to hold between the Initial Percentage (being 39.119%) and
50% (inclusive) of the shares in Synlait in each case calculated in accordance with clause 22.5 of the Constitution
(so as to exclude shares issued under employee share schemes or director remuneration), the following governance
arrangements will apply to Synlait.
The Board comprises eight directors, made up of the following:
• Four directors appointed by Bright Dairy (the Bright Dairy Directors):
• None of whom (i) are required to retire from rotation under the NZX Listing Rules, or (ii) are subject to removal by
ordinary resolution of shareholders;
• One of whom must be an ordinary resident in New Zealand and be a director of such standing and with such
commercial and governance experience in New Zealand as is appropriate for a director of a NZX listed company
– the Hon. Ruth Richardson is the current Bright Dairy Director meeting this requirement; and
• All of whom are required to have appropriate skills and experience to ensure that Synlait has a suitable mix of
skills and experience on the Board;
• Three directors who are not appointed by Bright Dairy and who must be Independent Directors; and
• One Managing Director, or, if a Managing Director is not appointed, a Board Appointed Director, who will be appointed
by the Board. The current Managing Director or Board Appointed Director, and any Director proposed to fill that role,
cannot vote on the appointment or replacement of the Managing Director or Board Appointed Director (as applicable).
Consequently, Bright Dairy controls the composition of the majority of the Board as it has four out of seven votes on
this appointment. Synlait does not currently have a Managing Director, but does have a Board Appointed Director,
being Dr. John Penno, (together, these are the Governance Arrangements).
A summary of the waivers permitting these Governance Arrangements is set out below:
• The NZX Listing Rules allow Bright Dairy to appoint representatives to the Board so long as the proportion of the
Board made up by their representatives is not greater than the proportion of the total shares in Synlait that they own.
A waiver was required to permit Bright Dairy to appoint four Directors, or 50% of the Board, as Bright Dairy owns less
than 50% of the shares in Synlait.
• The NZX Listing Rules prevent Directors from appointing alternates to act for in their place if they cannot attend Board
meetings unless a majority of their co-Directors agree. A waiver has been granted to permit Synlait’s Constitution to:
• Allow a Bright Dairy Director to appoint another Bright Dairy Director to exercise their voting rights at a Board
meeting they are unable to attend; and
• Prohibit the non-Bright Dairy Directors from appointing alternate Directors. Synlait considers that it is important
that Directors are encouraged to attend all meetings.
• The NZX Listing Rules require that Synlait’s constitution permit a Director to vote on a decision in which they are
interested, where that matter is one in respect of which Directors are required by the Companies Act 1993 to sign a
certificate or relates to an indemnity contemplated by section 162 of the Companies Act. A waiver has been granted
to allow Synlait’s Constitution to prohibit the Managing Director (if it has one, which it doesn’t currently) from voting or
being part of the quorum on matters relating to his/her remuneration under any circumstances.
13. NZX WAIVERS (CONTINUED)
PAGE 145 & 146ANNUAL REPORT 2023

• The NZX Listing Rules prevent the imposing of conditions on who may be appointed as a Director, except as
specifically contemplated by the Rules. A waiver has been granted so that Synlait is permitted to require that persons
who may be appointed to the three non-Bright Dairy Director positions must be independent.
These waivers are subject to the conditions that:
• Bright Dairy continues to hold no less than 39.119% of Synlait’s shares, calculated in accordance with Synlait’s
Constitution.
• The Governance Arrangements are contained in Synlait’s Constitution and will cease to apply when Bright Dairy
ceases to own between 39.119% and 50% (inclusive) of the shares in Synlait, calculated in accordance with Synlait’s
Constitution.
• Full and accurate disclosure of all material aspects of the Governance Arrangements and Synlait’s reliance on these
waivers is made in any offer document, and in every annual report while these waivers are being relied on.
• Synlait continues to bear a non-standard designation to notify the market of its unique governance arrangements.
• The quorum for a Board meeting must include two Independent Directors, and Synlait must have three Independent
Directors (compared to the two Independent Directors required by the NZX Listing Rules).
• Immediately on Bright Dairy ceasing to hold 39.119% of the shares in Synlait, Synlait comply with the provisions in
its Constitution requiring that some of the Bright Dairy Directors must resign to keep the proportion of Bright Dairy
Directors on the Board consistent with the proportion of the total shares in Synlait owned by Bright Dairy.
• Bright Dairy Directors must retire by rotation at the next annual meeting following the drop in shareholding below that
threshold, irrespective of whether they have been the longest in office.
A copy of these waivers, and other waivers Synlait has obtained, or relied on can be found in the investor centre of
Synlait’s website.
Synlait’s statement on the extent to which Synlait has followed the recommendation in the NZX Code during the year to
31 July 2023 can be found at: synlait.com/investors/corporate-governance
Synlait’s operating subsidiaries operate largely independently from Synlait. Synlait does not require them to comply with
the recommendations in the NZX Code.
14. NZX CORPORATE GOVERNANCE CODE
This table sets out the gender composition of Synlait’s Directors and Officers (CEO and direct reports to the CEO)
as at 31 July 2023. The prior year’s comparison is in brackets.
15. GENDER COMPOSITION
Group FemaleMale Total
Board 2 (3)6 (5)8 (8)
Officer 3 (2)8 (7) 11 (9)
Total5 (5)14 (12)19 (17)
Synlait’s Diversity and Inclusion Policy promotes a culture of diversity and inclusiveness, putting in place appropriate
strategies and measurable objectives. We aim to achieve three main goals:
• Workforce diversity – employ, develop and retain more women and Māori.
• Diversity through leadership – empower and equip our people leaders to recruit, develop and retain a diverse and
competent workforce.
• Workforce inclusion – foster a culture that encourages flexibility and fairness, to enable all employees to realise their
potential, and thereby increase employee retention.
To help us meet these goals we have our Mātua (Parental Leave) Policy and our Tāwariwari (Flexible Working) Policy,
and report to the Board on candidate diversity. Our success will be measured against the following as at the end of
2024. The prior year’s comparison is in brackets:
16. PERFORMANCE AGAINST DIVERSITY POLICY
MeasureProgress at 31 July 2023 – compared to FY 22
Reduction of the gender pay gap to ≤ 5%13% (17%)¹
40-50% of leadership positions
(people leaders, supervisors, specialist roles and senior leadership) held by women
40% (37%)
No regretted losses of high potential female employees4 (8)
13. NZX WAIVERS (CONTINUED)
1
The methodology adopted in the 2022 Annual Report used a mean to report Synlait’s progress towards the reduction of the gender pay gap. This year, Synlait have
adopted a methodology using a median to measure our progress. Accordingly, the FY 22 figure in this report has been updated to the median as at 31 July 2022 and a
median has ben used to access the progress as at 31 July 2023.
PAGE 147 & 148ANNUAL REPORT 2023

DIRECTORY
Registered and head office
1028 Heslerton Road
Rakaia, RD13
New Zealand
Contact us
+64 3 373 3000
info@synlait.com
synlait.com
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Services Limited
Private Bag 92119
Auckland 1142
Level 2
159 Hurstmere Rd
Takapuna
Auckland 0622
0800 467 335
+64 9 488 8777
enquiry@computershare.co.nz
Auditor
PricewaterhouseCoopers
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PO Box 13244
Christchurch 8013
New Zealand
+64 3 374 3000
pwc.co.nz
Synlait’s commitment to elevating
people and planet to the same level
as profit was recognised in June
2020 when it became part of the
B Corp™ community.
B Corp™ is a community of leaders
driving a global movement of people
using business as a force for good.
Certified B Corporations™ consider
the impact of their decisions on
their workers, customers, suppliers,
community, and the environment.
B Corp™ resonates strongly with
Synlait’s purpose of Doing Milk
Differently For A Healthier World.
B CORP™ CERTIFIED

Tom Mawle, Blackford Farm, Mt Hutt, Canterbury.

Annual Meeting Director Nominations Synlait & The a2 Milk Company enter arbitration

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.