2023 Annual Meeting

ASX Code: A2M
NZX Code: ATM
The a2 Milk Company Limited
www.thea2milkcompany.com
16 November 2023
NZX/ASX Market Release
Annual Meeting materials
Please find attached a copy of the presentation to be given at The a2 Milk Company’s Annual Meeting of
Shareholders, to be held in Auckland today at 11am NZ time.
Copies of the speeches to be made by Chair, David Hearn and Managing Director and CEO, David Bortolussi are
also attached.
By order of the Board of Directors
David Hearn
Chair
The a2 Milk Company Limited
For further information, please contact:
Investors / Analysts
David Akers
Group Head of Investor Relations and Sustainability
M +61 412 944 577
david.akers@a2milk.com
Anna Guan
Investor Relations Manager
M +61 430 166 872
anna.guan@a2milk.com
Media
Rick Willis
M +61 411 839 344
rick@networkfour.com.au
Media – New Zealand
Barry Akers
M +64 21 571 234
akers@senescallakers.co.nz

---

The a2 Milk Company Limited
16 November 2023
2023
ANNUAL
MEETING
We pioneer the future of Dairy for good

Disclaimer
This presentation dated 16 November 2023 should be read in
conjunction with, and subject to, the explanations and views in
documents previously released to the market by The a2 Milk
Company Limited (the “Company”), including the Company’s Annual
Report for the 12 months ended 30 June 2023 and accompanying
information released to the market on 21 August 2023.
This presentation is provided for general 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 consider talking to a financial adviser or
consultant before making any investment decision.
This presentation is not a prospectus, investment statement or
disclosure document, or an offer of shares for subscription, or sale,
in any jurisdiction.
Certain statements in this presentation constitute forward looking
statements. Such forward looking statements involve known and
unknown risks, uncertainties, assumptions and other important
factors, many of which are beyond the control of the Companyand
which may cause actual results, performance or achievements to
differ materially from those expressed or implied by such
statements.
While all reasonable care has been taken in relation to the
preparation of this presentation, none of the Company, its
subsidiaries, or their respective directors, officers, employees,
contractors or agents accepts responsibility for any loss or damage
resulting from the use of or reliance on this presentation by any
person.
Past performance is not indicative of future performance and no
guarantee of future returns is implied or given.
Some of the information in this presentation is based on unaudited
financial data which may be subject to change.
All values are expressed in New Zealand dollars unless otherwise
stated.
All intellectual property, proprietary and other rights and interests in
this presentation are owned by the Company.
2 0 2 3 A N N U A L M E E T I N G
2

WELCOME
DAVID HEARN

Agenda
Welcome3
Chair speech5
MD & CEO address6
Formal business26
Questions32
Chair Elect speech33
Close34

CHAIR SPEECH
DAVID HEARN

MD & CEO ADDRESS
DAVID BORTOLUSSI

Strong performance in a very challenging market
2 0 2 3 A N N U A L M E E T I N G
7
FY23 result in line with the Company’s guidance with double digit
revenue and earnings growth
Result driven by strong growth in China segment with sales up 38%
and record market sharein China label IMF
China brand health reached new highs supported by record levels of
marketing investment increasing by 13% to $260m
Total IMF sales up over 8% in a market that declined by 14%making
a2MC a top-3 share gainer in the market overall
Successful SAMR re-registration of China label IMF product provides
continued access to the domestic market
1
2
3
4
5

FY23 double digit revenue and earnings growth driven by China segment
2 0 2 3 A N N U A L M E E T I N G
8
•FY23 group results in line with the Company’s guidance
-Revenue growth of 10.1% to $1,592.9 million
-EBITDA
1
up 11.8% to $219.3 million, EBITDA margin of 13.8%
-NPATincl. non-controlling interests
2
up 26.2% to $144.8 million,
$155.6 million attributable to owners of the Company up 26.9%
-EPSup 28.7% to 21.2 cents (basic earnings per share)
•Revenue growth driven by China segment
−China& Other Asia segment sales up 37.9%
−ANZsales down 30.2% due to intentional change in strategy,
USAsales up 27.1% and MVMsales up 9.2%
−IMFsales up 8.4% with China label sales up 27.8%, English label
sales down 6.1% due to sharp decline in the Daigou channel with
CBEC up 51.0%
−Liquid milk sales in ANZ and USA up 7.1% and 27.1% respectively
•Lower growth in 2H23 consistent with the Company’s expectations
1
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that,
in combination with GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business.
2
The non-controlling interest represents China Animal Husbandry Group’s 25% interest in MVM, a loss of $10.8 million.
EBITDA; $ millions
Revenue; $ millions
Basic EPS; cents per share
Key financials

Significant China label IMF growth and shift to China & Other Asia
segment from ANZ
2 0 2 3 A N N U A L M E E T I N G
9
$ million
ANZ
China &
Other AsiaUSAMVM
1
Corporate
Total
Group
FY23
Revenue
371.71,002.2105.1113.9-1,592.9
EBITDA
93.5254.1(23.3)(26.5)(78.5)219.3
EBITDA %
25.2%25.4%nmnm-13.8%
FY22
Revenue
532.7726.582.7104.4-1,446.2
EBITDA
173.2145.1(36.7)(18.8)(66.6)196.2
EBITDA %
32.5%20.0%nmnm-13.6%
%
Change
Revenue
(30.2%)37.9%27.1%9.2%-10.1%
EBITDA
(46.0%)75.1%36.4%(40.9%)(17.8%)11.8%
1
MVM excludes intercompany sales. FY22 results are for the 11 months since acquisition on 30 July 2021.
Percent of total revenue
Percent of total revenue
IMF sales mix
Segment revenue mix

High quality FY23 result underpinned by many operational achievements
•Reached new highs in China brand health
•Achieved record market share in China label IMF (MBS and DOL)
•Received SAMR approval under new GB standard
•Increased English label share in CBEC and Daigou+O2O channels
•Grew sales and improved online platform rankings
•Ramped up innovation to support growth in all categories and markets
•Improved / maintained business health key indicators
•Extended distribution and strategic partnership with CSF
•Achieved Enforcement Discretion and progressed long term FDA
approval process
•Accelerated Supply Chain transformation and MVM utilisation
•Advanced Sustainability programme significantly and announced
interim Scope 3 goal for 2030
2 0 2 3 A N N U A L M E E T I N G
10
Operational highlights during FY23

a2MC English label IMF market share
a2MC China label IMF market share
Growth strategy driving significant China brand health and market
share increases
2 0 2 3 A N N U A L M E E T I N G
11
MBS value share
2
DOL value share
3
1
a2MC internal data based on the Company’s brand health tracking. Average brand health metrics for each financial year based on 3 surveys in FY21 and FY22, and 2 surveys in FY23. Sample skewstoa2MC target consumers iehigher income earners based in Provinces / cities that are the focus of sales and marketing activities.
2
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value).
3
Smart Path China IMF online market tracking for DOL and CBEC (by value).
4
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). Note: Due to sample size, data classification and associated volatility reasons, the Company focuses more on its combined O2O and Daigou channel market share.
CBEC value share
3
O2O and Daigou value share
4
Unprompted awareness
Brand used most often
a2MC China brand health metrics
1

Resulting in a2MC being a leading share gainer in MBS and DOL channels
2 0 2 3 A N N U A L M E E T I N G
12
1
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). MAT Jun-22to MAT Jun-23.
2
Smart Path China IMF online market tracking: domestic online platform sales (by value). MAT Jun-22to MAT Jun-23.
Market share movements by IMF brand in MBS channelMarket share movements by IMF brand in DOL channel
Change in MBS value share in FY23 (% pts)
1
Change in DOL value share in FY23 (% pts)
2
International

China label IMF has been very challenging recently driven by cumulative
impact of fewer newborns and market-wide new GB transition
2 0 2 3 A N N U A L M E E T I N G
13
China label IMF market declines in store and online
Nielsen MBS channel value growth vs pcp (rolling MAT)
1
1
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value).
2
Smart Path China IMF online market tracking: domestic online platform sales (by value).
3
Ultra premium price segment based on Stage 1 average selling price ≥390RMB/kg
4
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities).
IMF market prices under more pressure during GB transition
Average IMF ASP/kg in RMB (rolling MAT)
4
Smart Path DOL channel value growth vs pcp (rolling MAT)
2
New GB transition
Ultra premium
3
Ultra premium
3
Total category
Total category

English label IMF market impacted by sharp decline in Daigou channel
2 0 2 3 A N N U A L M E E T I N G
14
English label market decline driven by Daigou channel...
...but English label share of total IMF market stabilising
Source: Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities) which covers most but not all of the market.
1
English label IMF value market share expressed as a percent of English label + China label IMF market value.
English label market value; RMB billions
English label share of total China IMF market value
1
; Percent
FY23 39% decline
in Daigou channel
Daigou
% of
market
a2MC share in CBEC and Daigou + O2O channels
improved in FY23 (refer page 11)

However, key segment trends continue to support a2MC growth strategy
2 0 2 3 A N N U A L M E E T I N G
15
a2MC China label competes in the ultra
premium segment
A2 protein segment continues to gain
share in the category
Brand concentration increasing
MBS value sales by price segment
1,2,3
A2 protein segment % value share of channel
1,4
MBS value sales mix
1
Note: Periodic data upgrades at Nielsen result in minor variations in data from time to time. All data has been restated with the most recent available Nielsen report.
1
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value).
2
Price segments based on Stage 1 average selling price: Ultra premium >=390RMB/KG; Super premium 290-390RMB/KG: Premium 190-290RMB/KG; Mass <=190RMB/KG.
3
Numbers within the chart may not add to the total due to rounding.
4
Smart Path China IMF online market tracking: domestic online platform sales (by value).

Continued growth expected in FY24 in a very challenging market
2 0 2 3 A N N U A L M E E T I N G
16

Outlook provided at full year results
•Expecting low single-digit revenue growth in FY24
•Expecting EBITDA margin %to be broadly in line with FY23
•Operational cash conversion is expected to be higher in FY24
Annual meeting update
•No change to FY24 outlook provided at full year results
•Launch of new China label product is progressing well, including
inventory transition, marketing activities and consumer reaction
•Double 11 performance overall in line with plan
See full outlook statement including market conditions, business and category sales, key financials and key risks in results commentary and
outlook announcement dated 21 August 2023

Growth strategy unchanged except for BOLD values refresh
2 0 2 3 A N N U A L M E E T I N G
17
Purpose
We pioneer the future of Dairy for good
Goals
PEOPLE
Create a safe, diverse, inclusive and
engaging place for our people to
thrive, support our farmers and
contribute to our communities
Vision
An A1-free world where Dairy nourishes all people and our planet
SHAREHOLDERS
Create long-term, enduring value for
shareholders and a trusted,
transparent relationship
PLANET
Protect our planet and cows, rethink
packaging, achieve net zero and
become nature positive
CONSUMERS
Bring the unique benefits of pure and
natural a2 Milk™ to as many
consumers as possible
Strategic
priorities
Enablers
Values
Quality & ServiceBrand strength
Science & InnovationStrategic relationships
Capture full potential
in China IMF
-Gain more control over CL
and EL distribution and get
closer to our consumer
-Increase investment in our
brand, digital marketing
and e-commerce
2
Ramp-up product
innovation
-Expand our CL and EL IMF
product portfolios
-Enter adjacent product
categories in relevant
markets to drive growth
3
Transform our
supply chain
-Expand CL registered
market access
-Utilise MVM and invest in
New Zealand capability
-Develop China supply
capability over time
4
Invest in people and
planet leadership
-Invest in our people to
enable them to thrive
-Take direct action to lead
the industry in GHG
emissions reduction,
farming practices and
sustainable packaging
1
Accelerate path
to profitability
-Take action to realise
potential in USA
-Expedite insourcing of a2™
product and 3rd party
volume to significantly
increase MVM utilisation
5
Bold passionOwnership & agility
Leading constructivelyDisruptive thinking
BLO
D

CONSUMERS
Significant progress made towards achieving goals reflected in
measures of success
Safety
TRIFR
Engagement
Diversity &
inclusion
China
unprompted
brand
awareness
AU household
penetration
USA household
penetration
MBS share
DOL share
CBEC share
O2O + Daigou
share
Australian fresh
milk share
USA premium
milk share
China other
dairy /
nutritionals
growth
Emerging
markets
development
USA sales from
new products
ANZ sales from
new products
GHG emissions
reduction
Environmental
plans on farms
Animal welfare
programmes
Sustainable
packaging
12
BRAND
HEALTH
3
MARKET
SHARE
4
INNOVATION
5
2 0 2 3 A N N U A L M E E T I N G
18
On track
Work in progress
PEOPLEPLANET
SUPPLY
CHAIN
6
SHAREHOLDERS
7
Access to ≥3
CL registrations
CL inventory
management
EL inventory
management
Quality
outcomes
Supply chain
efficiency
Note: Progress as at FY23 Results announcement (21 August 2023).
1
Refer to following page.
Medium term
sales ambition of
~$2.0b (≥FY26)
1
EBITDA margin
goal in the
‘teens’ targeting
year-on-year
improvement
1
USA profitability
during FY25 /
FY26
MVM profitability
during FY26

2 0 2 3 A N N U A L M E E T I N G
19
Refer to Investor Day materials communicated to the market on 27 October 2021 for further information on medium-term ambition, strategy, risks and opportunities
Medium-term revenue and EBITDA margin ambitionCommentaryAreas of planned revenue growth
•Market conditions from FY21
to FY23 have been more
challenging than expected
−English label IMF market
value down 25%
2
−China label IMF market
value down 16%
2
•Significant progress has been
made in executing growth
strategy resulting in market
share gains
•$2 billion revenue goal now
requires a 3-year CAGR of
7.9% if achieved by FY26
•EBITDA margin goal in the
‘teens’ and targeting year-on-
year improvements
On track
Work in progress
Market / category
Growth ambition
(FY21 to ≥FY26)
1
Tracking
China label IMF$0.4
English label IMF$0.3
China and other
nutritionals
$0.2
Emerging markets$0.1
ANZ$0.1
USA$0.1
Non-specific risk$(0.4)
Net growth~$0.8bn
Revenue, NZ$ billions
EBITDA margin
EBITDA margin target in the teens
On track to achieve ambition to grow sales to $2 billion and improve
EBITDA margins in the ‘teens’ over the medium term
1
Incremental revenue ambition growth bridge from $1.21 billion in FY21 to ~$2.0 billion in ≥FY26 provided in Investor Day materials in October 2021. Provided for tracking purposes and should not be added to FY23 actual revenue result of $1.59 billion.
2
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities).
~

Successful SAMR re-registration critical to capturing full potential of
China IMF opportunity
2 0 2 3 A N N U A L M E E T I N G
20
•Received approval from SAMR on 6 June 2023 for re-registration
of the Company’s China label IMF product a2 至初
®
under new
GB standard
•SAMR approval will allow Synlait to manufacture a2 至初
®
for
a2MC until September 2027
•Production commenced in late June and is on track with
transition in market planned to occur in 2Q24
•Re-registration allows continue to access the registered domestic
market that accounts for ~85% of the China IMF market, with
English label IMF accounting for the remaining ~15%
•Overall, the registration process is likely to lead to a significant
reduction in the number of China label competitor products
•a2MC thanks SAMR, MPI, its China strategic partners (CNADC
and CSF), and its manufacturing partner (Synlait) and its major
shareholder (Bright Dairy) for their support throughout the process
New a2 至初
®
product

New China label IMF product a2 至初® available on flagship stores
with market wide launch to commence post Double 11 sales event
2 0 2 3 A N N U A L M E E T I N G
21
•Ceased production of old
product in February 2023
•Commenced production of
new product in June 2023
and ramped up in 1Q24
•Air freighted new product
for pre-launch
•Commenced new product
shipping to distributors in
October 2023 and retailers
from November 2023
•Soft changeover of product
occurring from Double 11
-Stage 3 first
-Other stages after
Inventory phase-in / phase-out Pre-launch flagship store availability New product launch
New product available from 10 OctoberBuy with Confidence pre-campaign in 1Q24
New product launch campaign post Double 11
TMall flagship store
Douyin / TikTok flagship store

Innovation has been ramped up significantly to support future growth
2 0 2 3 A N N U A L M E E T I N G
22
a2 Platinum
®
refreshed range
launched in 1Q23 in ANZ and China
a2 Milk® Lactose free
launched in 1Q23 in Australia
a2™ Nutrition for Mothers™ 孕产妇配方奶粉CL
launched in 1Q23 in China
a2 Smart Nutrition® EL
relaunched in 2Q23 in ANZ and China
a2 Milk® Full cream EL in a tub
launched in 2Q23 in ANZ and China
a2 Milk® Grassfed
launched in 3Q23 in the USA

Increased brand investment to record levels to support significant
marketing activity
2 0 2 3 A N N U A L M E E T I N G
23
$ million
260
% of sales
revenue
14.0%15.9%16.4%
230
169
Marketing activity examples
Marketing investment

Further progress made in transforming our supply chain
•Accelerated supply chain transformation strategy following
Chopin Zhang’s appointment as Chief Supply Chain Officer
−Increased raw A1 protein free milk supply to MVM
−Completed insourcing of a2 Milk® Whole & Skim milk powder
−Production commenced for insourcing Stage 4 English Label
IMF product with MVM and a new supply partner
−Completed production trials for a new EL IMF range with
MVM and a new supply partner for launch in 2H24
−Commenced development of an additional new EL IMF range
with MVM and a new supply partner for launch in 1H25
•Accelerating MVM’s path to profitability by FY26 or earlier is
a key strategic priority for the Company
•Exploring M&A, joint venture and alliance opportunities to
increase market access and gain additionalCL registrations,
supported by strong balance sheet
2 0 2 3 A N N U A L M E E T I N G
24
Mataura Valley Milk –Southland, New Zealand

Meaningful progress towards achieving sustainability goals
Investing to significantly reduce GHG emissions
•Commenced installation of 100% renewable energy boiler (high-pressure
electrode)at MVM which will move a2MC close to Scope 1 and 2 net zero
•Commenced on-farm methane inhibitor study in Victoria, Australia (Scope 3)
Expanded climate & nature targets and progressed Thriving Farms programmes
•Introduced interim on-farm Scope 3 GHG emissions reduction target –30%
reduction by 2030 (intensity basis)
•Introduced initial nature target for nitrogen loss to waterways (intensity basis)
•Conducted pilot assessments for nature risk and opportunity analysis
•Established research partnership with Lincoln University
•Commenced pilot trials of measurement tools for water quality & GHG emissions
•Increased farmer grants for sustainable dairy farming projects in ANZ
Committed to making meaningful change in packaging
•Developed a sustainable packagingroadmap aligned to APCO targets
•Exploring options for inclusion of recycled HDPE in milk containers
2 0 2 3 A N N U A L M E E T I N G
25
MVM boiler installation project

FORMAL BUSINESS
DAVID HEARN

Notice of Meeting and voting instructions
2 0 2 3 A N N U A L M E E T I N G
27

Financial Statements and reports
“To receive and consider the Company’s financial statements for the year ended 30 June
2023, together with the Directors’ and Auditor’s reports.”
2 0 2 3 A N N U A L M E E T I N G
28

Resolution 1: Auditor’s Feesand Expenses
To consider and, if thought fit, to pass the following resolution as an ordinary resolution
of the Company:
“That the Directors of the Company be authorised to fix the fees and expenses of the
Company’s auditor, Ernst & Young, for the ensuing year.”
2 0 2 3 A N N U A L M E E T I N G
29

Resolution 2: Election of Director –Kate Mitchell
To consider and, if thought fit, to pass the following
resolution as an ordinary resolution of the Company:
"That Kate Mitchell, who was appointed a Director of the
Company by the Board during the year, and who will
retire at the meeting in accordance with the Company’s
constitution, be elected as a Director of the Company.”
2 0 2 3 A N N U A L M E E T I N G
30

Resolution 3: Grant of performance rights to David Bortolussi,
Chief Executive Officer and Managing Director
To consider and, if thought fit, to pass the following resolution as an ordinary resolution
of the Company:
“That, on an advisory basis and for the purpose of ASX Listing Rule 10.14 and for all other
purposes, the acquisition of 690,066 performance rights by the Company’s Chief Executive
Officer and Managing Director, David Bortolussi, or an associate named in the Notice of Meeting,
by grant under the Company’s Long Term Incentive Plan be approved.”
2 0 2 3 A N N U A L M E E T I N G
31

QUESTIONS

CHAIR ELECT SPEECH
PIP GREENWOOD

CLOSE
DAVID HEARN

www.thea2milkcompany.com

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1

Chair’s Speech
I will now make a short introduc�on before I hand over to our Chief Execu�ve Officer for his review
of the business.
I am proud to report that we delivered another strong result in FY23. This is par�cularly pleasing
given the very challenging macroeconomic landscape and external headwinds we faced, and
con�nue to face in our key markets.
I also want to acknowledge up front that we understand how our recent share price decline has
caused frustra�on amongst shareholders, as it has for us as well. I want to assure you that we are
doing everything we can to con�nue driving this business, according to our strategy, to deliver
shareholder value and I want to convey to you my personal and the board’s confidence in the ac�ons
we are taking to deliver against that.
Our business has demonstrated an unwavering commitment to execu�ng our growth strategy,
delivering strong results and several important achievements in the areas we can control ourselves.
In fact, almost all the measures of business performance that are in our hands have shown significant
improvement such as IMF brand share in China, brand awareness and atribute scores and con�nued
distribu�on expansion. All of these measures also remain in an upward trend. As a result of these
important gains, I am confident in the business’ con�nued growth in the years ahead.
I want to highlight that despite the challenging macroeconomic environment and market condi�ons,
the strong financial results we delivered in FY23 were in line with the medium-term ambi�ons we
have set for the business.
The results were underpinned by our strategic China label infant milk formula brand which delivered
another year of double-digit growth in a market which showed double digit declines. This growth
li�ed our China label sales to over half a billion New Zealand dollars in revenue across the year. In
fact, our China & Other Asia segment, which includes our China label business, along with sales in
the English label channels of cross-border e-commerce and offline to online, reported sales of over
one billion New Zealand dollars, represen�ng year-on-year growth of 38 per cent and nearly two-
thirds of sales overall for the Group.
During the year, we also achieved a number of important regulatory milestones. The highlight was
receiving the re-registra�on for our upgraded China label infant milk formula (IMF) product from
China’s State Administra�on for Market Regula�on (SAMR) in June 2023.

2

The achievement of this re-registra�on was an enormous team effort over a number of years. I
would like to acknowledge the support we received from SAMR, New Zealand’s Ministry for Primary
Industries, our strategic partners in China, China Na�onal Agriculture Development Group Co., Ltd
and China State Farm Agribusiness, and our manufacturing partner, Synlait and its major shareholder
Bright Dairy, throughout the process.
During FY23, significant progress was made to further bolster the Execu�ve Leadership Team (ELT).
This included the appointment of David Muscat as Chief Financial Officer and Chopin Zhang as Chief
Supply Chain Officer, the role expansion for Eleanor Khor as Managing Director – ANZ and Strategy,
and Kevin Bush taking on the role of Managing Director – USA.
In addi�on to strong opera�onal and financial performance, we also undertook an important capital
management ac�vity, comple�ng the NZ$149 million share buyback programme in the year.
Given our strong balance sheet and the amount of net cash we are holding, it is en�rely reasonable
for shareholders to want to beter understand how we plan to use that capital and, also, for
shareholders to want to beter understand the prospect and poten�al �ming for further capital
returns, including dividends.
Our capital management framework con�nues to priori�se investments in growth ini�a�ves and
maintaining balance sheet flexibility ahead of shareholder capital returns. Our immediate priority for
capital is to drive the transforma�on of our supply chain, by expanding our China label registered
market access through addi�onal registra�ons and beter u�lising our capacity at Mataura Valley
Milk (MVM) through addi�onal investment in our capability.
When we acquired MVM in 2021, we indicated at the �me that we would also need to invest in a
blending and canning solu�on and associated infrastructure, in order to realise the full benefits of
that acquisi�on. At the �me we indicated that we intended to build our own blending and canning
facility. Since then, we have developed plans for such an investment. However, we have also
considered other op�ons such as a commercial arrangement or the acquisi�on of a blending and
canning facility in New Zealand, China and/or other markets to accelerate our ability to poten�ally
gain addi�onal China label registra�ons. In the interim, we have also established addi�onal
rela�onships with partners in New Zealand to provide blending and canning services to accelerate
u�lisa�on of MVM as we consider the best op�on for deploying capital to invest directly and expand
the capability of our supply chain.

3

We believe it is prudent for the Company to first solve this supply chain transforma�on to set us up
for further growth in the future, and then to consider, with the remaining capital, the most
appropriate mechanism to implement further capital returns to shareholders in the future. We are
not in a posi�on today to provide a full update on this. I trust shareholders will understand, that
while we are working hard on this objec�ve, we are not quite ready to outline our plan in further
detail. I can assure you this is a strong focus of the Board and management team, and as soon as we
can, we will provide further details.
I know that a number of shareholders have also, quite rightly I might add, asked why, with the recent
share price decline, and at the same �me, having such a strong balance sheet, why we are not
commi�ng to another share buyback programme. In addi�on to what I have already outlined in
terms of our firm belief that we need to invest in supply chain transforma�on first, we are also
somewhat constrained in being able to undertake another meaningful on-market share buyback
given our limited available subscribed capital which was u�lised in the previous share buyback.
Rest assured, we will con�nue to make a disciplined assessment of the poten�al to return capital to
shareholders and the most appropriate op�on to do so.
Moving now to the topic of Board renewal, which has also been a strong focus over the past couple
of years. During the year, we delivered on succession plans for long serving Directors and announced
several new appointments. As we announced in November 2022, following the Annual Mee�ng
today, I will step down as a Director and Chair of the Board a�er almost ten years and Pip
Greenwood will replace me as Chair of the Board. During FY23, David Wang and Kate Mitchell were
appointed as Directors. David was elected by shareholders at last years’ Annual Mee�ng and Kate is
seeking elec�on in the mee�ng today. Kate has also taken on the important role of Chair of the Audit
and Risk Management Commitee, replacing Julia Hoare who stepped down earlier this year. I would
like to take this opportunity, on behalf of my fellow Directors, the Company and all shareholders, to
again thank Julia for her service to The a2 Milk Company. Julia was an outstanding Director and we all
miss her dearly.
I would like to extend my gra�tude to all my fellow Directors for their efforts and significant
contribu�ons during the past year, and in fact for all the years we have worked together.

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At the last Annual Mee�ng , we announced that the Board would be reviewing the Chief Execu�ve
Officer’s (CEO’s) remunera�on framework. As a result, the short-term incen�ve plan structure for the
CEO in FY23 included a percentage of deferral as cash. In today’s mee�ng, the Board is also
voluntarily pu�ng the CEO’s FY24 long-term incen�ve grant to shareholders for vote on an advisory
basis.
On behalf of the Board, I would like to express my sincere gra�tude to David Bortolussi, our
Managing Director and CEO, for his leadership and impac�ul contribu�on which has been immense
through a par�cularly challenging �me for our Company. And I extend my thanks and gra�tude to the
whole ELT and every member of the a2MC team in all of our regions for their contribu�ons this year.
Reflec�ng on the past decade for me at The a2 Milk Company, it has been a truly extraordinary
journey. It is perhaps worth reflec�ng that at the start of this journey, the Company had revenues of
only just over $100 million dollars and generated profit less than $5 million. I know that the COVID-
19 period and current downward phase that almost all the world’s stock markets are facing have
been tough and your Board is determined to see the Company though these tough �mes stronger
and more ready to grow again in the future. But in all this, it is worth just reminding ourselves of just
how far we have come, despite these short-term setbacks and the confidence it should give all of us
that the future for the Company and its shareholders will surely be brighter again in the future.
As the pioneer and leader of the A2 protein category, we have transformed from a fresh milk
business in Australia to a global nutri�onal dairy products company and developed a leading brand in
China, the largest IMF market in the world.
In FY23, we embraced our refreshed purpose to pioneer the future of dairy for good and our vision
to create an A1-free world where dairy nourishes all people and our planet. These guiding principles
are now living through our business, guiding the Company to execute our goals and thrive to seize
addi�onal market opportuni�es more effec�vely in the years ahead. Your Board and the ELT are
commited to the Company’s purpose and vision.
As demonstrated by the achievements thus far, I’m confident that the Company will con�nue to
adapt, pivot and work through future challenges to be successful.

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We have achieved a great deal together over the years. That is not to say that it has all been easy,
and certainly we have also faced significant challenges. As I look back on my 10 years as a Director
and Chair of this great Company, I recall many of the challenges but reflect fondly on our many
achievements. My �me with The a2 Milk Company has been one of the highlights of my career.
Indeed, it has been my privilege and my honour to have been a Director and Chair of your Company
through this transforma�ve period. At the end of the mee�ng today, I will hand the reigns over to Pip
Greenwood as our incoming Chair. Pip is well known to many of you. She is an outstanding Director
and I am confident that she will lead the Board and Company to even greater success.
Finally, I would like to thank you, our shareholders, for your con�nued support.
I will now invite David Bortolussi to present his address.

---

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MD & CEO’s Address
Slide 6: MD & CEO’s Address
Thank you David.
Good morning everyone, and thank you for joining us, particularly those here with us in
Auckland today.
It’s my great honour to be addressing you at my third A nnual Meeting as your Managing
Director and Chief Executive Officer.
To start with, I also wanted to say that I understand that our shareholders are disappointed
with the Company’s share price. So am I and the rest of your management team.
As David Hearn noted up front, I want to assure you that we are doing everything we can to
continue to drive growth in line with our strategy and to create shareholder value.
So, before I get into the detail of my presentation, I wanted to share with you a few higher
level thoughts on the Company’s performance and the future ahead:
• Firstly, the context that led to a2MC’s extraordinary growth up to FY20 has changed
materially from a consumer, channel and competitive perspective
• COVID-19 had a substantial impact on our business in FY21 disrupting particularly
our cross-border English label business which was our largest and most profitable
business
• Since then, we have been working hard to return our business to growth and have
taken many actions and achieved a lot over the past couple of years. In particular,
we have:
­ Delivered double-digit growth in sales and earnings in FY22 and FY23
­ Addressed channel inventory levels in IMF
­ Refreshed our growth strategy and laid out a plan to get to $2 billion in sales
in the medium term
­ Renewed our ELT with all members either new to role or new to Company
­ Re-registered our China label product & extended our strategic partnerships
­ Increased brand investment and achieved new highs in brand health metrics
­ Reshaped our distribution and achieved record China label market share
instore and online, and improved English label market share

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­ Ramped up innovation and launched new products in all markets
­ Increased investment in science and sustainability programmes
­ Commenced the transformation of our IMF supply chain
• In most aspects we are executing extremely well and I couldn’t be more proud of
what our team has achieved, particularly in our core IMF market in China where we
are one of the top share gainers in a fiercely competitive market
• The key challenge, for us and our competitors, is that the IMF market in China has
declined significantly, being down double-digits in FY23 essentially due to the
cumulative impact of fewer newborns and lower market pricing which is a
significant headwind
• These category issues – coupled with challenging macro-economic conditions, global
geopolitical concerns and capital market dynamics – have weighed heavily on our
share price over time
• Notwithstanding this backdrop, we have a significant opportunity to grow our
business and create shareholder value going forwards:
­ The IMF category in China is still over ~$30 billion in retail sales, we only
have a 5-6% share and it is our biggest growth opportunity;
­ We have an exciting pipeline of innovation projects in our core IMF business;
in kids, adult and seniors’ nutrition; liquid milk and other adjacencies; and
­ We have growth opportunities in other markets that we are working on
which would ideally leverage existing products into new markets
• I genuinely believe that a2MC has the right strategy and a great future as market
conditions hopefully stabilise and we execute on our strategy
• I hope this provides better context for reviewing our FY23 performance which I will
move on to now

Slide 7: Strong performance in a very challenging market
FY23 was a big year for the Company and we were pleased to report that our result was in
line with our guidance delivering double digit revenue and earnings growth.
The result was driven by strong growth in our China & Other Asia segment. Sales increased
by 38% and we achieved record market share in China label IMF.

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In the past year we stepped up marketing investment by $30 million to $260 million, which
was a record level of brand investment for the Company and achieved new highs in our
China brand health metrics.
Total IMF sales grew by over 8% in a market that declined by 14%, which is a remarkable
achievement resulting in a2MC being a top-3 share gainer in the China label and English
label market overall for the year based on Kantar data.
And of course, a key highlight for the year was the successful re-registration of our China
label IMF product by SAMR which we are very pleased about.

Slide 8: FY23 double digit revenue and earnings growth driven by China segment
Moving to slide 8 which summarises our financial results for FY23 and improvement over
the past 2 years.
Revenue for the year was $1.59 billion, up 10%.
Earnings before interest, tax, depreciation and amortisation was $219.3 million, up 12%
with an EBITDA margin of 13.8%.
Net profit after tax attributable to owners of the Company was up 27% to $155.6 million.
Our earnings per share was up 29% to 21.2 cents.
And our closing net cash position was $757 million, which was after completing a $149
million on-market share buyback during the year.
Moving to the next slide.

Slide 9: Significant China label IMF growth and shift to China & Other Asia segment
from ANZ
This slide highlights the significant change in our business mix since 2019.
You can see in the charts on the righthand side that:
• Our IMF sales composition has evolved from 16% China label and 84% English label
in FY19 to an equal 50:50 split in FY23; and

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• From a geographical perspective revenue recognised in China has grown from 32%
in FY19 to 63% in FY23 driven by growth in China label IMF and cross-border
ecommerce (or CBEC) sales in English label IMF.

Slide 10: High quality FY23 result underpinned by many operational achievements
Despite the challenges we have experienced in the market, we have achieved a lot in FY23
with many highlights called out on this page, some of which I mentioned at the beginning
particularly in relation to brand health improvements and market share gains.
What I didn’t mention before are the many operational achievements in our IMF business in
areas such as distribution processes, channel inventory levels, product freshness, early-
stage share, market pricing etc.
We were also very pleased to extend our strategic partnership with China State Farm and
CNADC Group, and to accelerate our MVM utilisation with China Animal Husbandry Group.
In the US, we achieved FDA Enforcement Discretion to import IMF product and progressed
our long-term FDA approval whilst also reducing our operating losses.
And from a sustainability perspective, we advanced our programmes significantly which I’ll
come back to shortly.

Slide 11: Growth strategy driving significant China brand health and market share
increases
In terms of China brand health, our significant investment in marketing in FY23 and changes
in approach, have continued to translate into new highs across all metrics.
We have an incredibly strong brand in China with our ‘brand used most often’ or loyalty
metric in IMF increasing to 16%.
In addition to strong brand health, executing against our growth strategy is driving
significant China IMF market share increases.
We delivered significant growth in our market share in China label channels in FY23 with our
share in Mother and Baby Stores (or MBS) increasing to 3.4%, up from 3.0%, and our share
in domestic online (or DOL) increasing to 3.3%, up from 2.5%.

5

This slide also shows that our share in English label channels recovered with our share in
CBEC increasing to 22.6%, up from 19.4% and our share in the combined O2O and Daigou
channel increasing to 20.8%, up from 19.5%.

Slide 12: Resulting in a2MC being a leading share gainer in MBS and DOL channels
Overall, our performance has resulted in a2MC being a leading share gainer in FY23.
This slide highlights the market share movement for major IMF brands over FY23.
The grey bars on the graph are domestic brands and the turquoise are international brands
such as a2MC which is highlighted. You can see that in the MBS and DOL channels we were a
leading share gainer over the year, top-3 overall.
This is important as we continue to drive towards our ambition of being a top-5 brand in
China IMF.

Slide 13: China label IMF has been very challenging recently driven by cumulative
impact of fewer newborns and market-wide new GB transition
Our achievements in FY23 were all against the backdrop of very challenging IMF market
conditions in China.
As we noted back in August, this has been mainly driven by the cumulative impact of a
lower birthrate in China, as well as the market-wide transition to new GB registered product
which has been an extraordinary change in the market with all brands having to phase-out
old and phase-in new product.
The charts on the left show the significant market declines in the MBS and DOL channels
from July 2021 through to June 2023, and particularly over the past year, with a decline in
the ultra-premium segment for the first time.
The chart on the right shows average market selling prices for IMF from the end of 2021 to
the end of FY23.

6

This highlights the decline in average selling prices in the market coinciding with the
beginning of the GB transition process around Double 11 last year, as brands started to
increase their promotional activity and discounting to clear old GB inventory.
Despite the challenging market conditions, we are delivering against our growth strategy
and are proud of our achievements in FY23, particularly in China label IMF.

Slide 14: English label IMF market impacted by sharp decline in Daigou channel
Moving to the next slide on the English label market. It’s important that shareholders,
especially those that have followed us for several years, understand just how much the
English label market has changed since 2019.
The chart on the left highlights how significantly the English label market has been impacted
by the contraction in the Daigou channel over the past 5 years, including a further sharp
decline in FY23 of 39%.
This has resulted in the Daigou channel as a proportion of total English label sales more than
halving from 57% in FY19 to 27% in FY23.
It also highlights the shift towards the CBEC channel with more English label users preferring
to shop online, which is where we have been investing in our execution capability and
growing share. This is consistent with our distribution strategy to shift to more controlled
channels in CBEC and O2O.
That said, English label share of the total IMF market has stabilised at 15%, and our share in
CBEC and Daigou + O2O channels improved in FY23.

Slide 15: However, key segment trends continue to support a2MC growth strategy
Notwithstanding these market challenges, there are several key segment trends which
continue to support our growth strategy.
Firstly, our China label products compete in the ultra-premium segment which now
represents well over half the total market.

7

Secondly, the continued growth in the A2-protein segment, which has grown rapidly in
China label product in particular, now accounting for 13% and 15% of the MBS and DOL
channels respectively.
Thirdly, brand concentration is increasing, with the top-10 brands continuing to gain a
greater share of the market, and with concentration within the top-10 also increasing.
Despite the significant challenges in the China IMF market, we are well positioned from a
strategic perspective.

Slide 16: Continued growth expected in FY24 in a very challenging market
Moving now to our outlook for FY24. As stated at the time of our results release:
• We expect China IMF market conditions to be more challenging in FY24 compared to
FY23 with a further double-digit decline in market value;
• Despite these headwinds, we expect to continue to gain market share in IMF; and
• At the group level, we are expecting low single-digit revenue growth, EBITDA
margins to be similar to FY23 and an improvement in cash flow.
There is no material change to our FY24 outlook, but I will provide a couple of updates:
• Firstly, the launch of our new China label product is progressing well, including
inventory transition, marketing activities and consumer reaction; and
• Secondly, our Double 11 performance overall has been in line with our plan.

Slide 17: Growth strategy unchanged except for BOLD values refresh
Slide 17 shows our strategy on a page. We first shared this in October 2021 with a few
incremental changes since then.
Capturing the full potential of China IMF is central to our strategy, and we are also focused
on driving innovation to capture growth opportunities in other nutritional products,
including kids and seniors, and by entering new markets.
In FY23, we undertook an extensive process to refresh our BOLD values and standards of
behaviour – which are included here at the bottom of the page, underpinning our strategy
and execution which has been very well received by our team.

8

Otherwise, it remains unchanged and is how we articulate internally and externally our
purpose, vision, goals and strategic priorities.
Moving to the next slide.

Slide 18: Significant progress made towards achieving goals reflected in measures of
success
This slide shows our measures of success in executing our strategy which are a balanced
scorecard of non-financial and financial metrics.
There have been a number of progress updates since the Annual Meeting last year that we
shared at our FY23 results announcement:
• In the People goal
­ Our team engagement improved from FY22 to FY23
• In the Planet goal
­ We have continued to make meaningful progress in emissions reduction,
animal welfare and farm environmental plans, and although we have made
some progress on sustainable packaging, there is more work to do
• Across our Consumer goals
­ We are pleased with our strong China brand health as previously mentioned,
but are working on improving our household penetration and share in
Australia and the US
­ Importantly, market share across IMF is in good shape and continues to
improve
­ We have worked hard to develop our innovation pipeline over the past
couple of years from a standing start
­ And we have a lot of work to do to transform our supply chain in IMF and
other nutritional products

9

• Finally for our Shareholder goal
­ Whilst we always want to achieve more, overall we are pleased with the
progress we are making towards our medium term sales and profitability
goals which I will move to in the next slide, but I acknowledge that the recent
share price has been frustrating for shareholders

Slide 19: On track to achieve ambition to grow sales to $2 billion and improve EBITDA
margins in the ‘teens’ over the medium term
Back in 2021, we set our financial ambition to grow sales to $2 billion by FY26 or later and to
improve our EBITDA margin. We’re still on track to achieve our medium-term sales ambition
and improve EBITDA margin in the ‘teens’ with year-on-year improvements which is tracked
in the chart on the left side of the page.
In middle of the page, we provide tracking of how key components of our business are
tracking towards our growth ambition.
Our China label business has been the standout performer and is ahead of plan. ANZ and
USA sales are in line with plan.
Conversely, our English label business has been more challenging than we had envisaged
when we set these targets back in 2021.
We also have more work to do over the next few years to realise the opportunities in other
nutritional products and emerging markets which I am optimistic about.
I’d now like to touch on some additional key highlights from FY23. Moving to slide 20.

Slide 20: Successful SAMR re-registration critical to capturing full potential of China IMF
opportunity
As you know, our strategy focuses on realising the full potential of our China IMF
opportunity. Maintaining market access and continuing to grow our China label business is
obviously critical to our strategy with the domestic registered market accounting for 85% of
the total market.

10

After all the work we put into the registration process with Synlait, it was very pleasing to
receive approval from China’s State Administration for Market Regulation (or SAMR) in June
this year.
Our new GB product transition continues to be the highest priority initiative for our team in
FY24. For those of you who are not aware, GB is the shorthand reference to China’s national
standard which changed for IMF and became effective in February this year.
The registration process was supported by our brand strength and market position in China,
as well as our strategic partners which David Hearn acknowledged in his address.

Slide 21: New China label IMF product a2
至初® available on flagship stores with market
wide launch to commence post Double 11 sales event
Moving to the next slide, we are pleased to update shareholders today that our new China
label IMF product has been available in the market since 10 October.
You can see images on the left of our new product on our Tmall and Douyin or TikTok
flagship stores. We air freighted some of our new product earlier for those consumers who
wanted to transition to our new GB product earlier, particularly for early-stage users.
In terms of the overall transition approach, we are managing a soft change over process
where old product will phase-out and new product will phase-in as seamlessly as possible
starting this month after the Double 11 sales period.
In preparation for this, new product commenced shipping to distributors in October and we
are commencing shipments to retailers now. Stage 3 product will transition first in
November/December, with early and late stage product in December/January.
We are excited to launch our upgraded product over the next few months and have a
significant marketing campaign planned for December and January building on various pre-
launch initiatives.

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Slide 22: Innovation has been ramped up significantly to support future growth
While our new China label product has been a key focus, and important from an innovation
perspective, we have also refreshed and/or introduced a range of new products in other
categories and markets over the past year.
The most important new products introduced during the year were our refreshed a2
Platinum® IMF range, our new lactose free milk in Australia, our upgraded a2 Smart
Nutrition® for kids, our new full cream milk powder in a tub, and lastly our a2 Milk®
Grassfed product in the US.
We will continue to focus on capturing opportunities not only in IMF, where you should
expect to see important new products introduced in the next calendar year, but also in
adjacent categories and new markets.

Slide 23: Increased brand investment to record levels to support significant marketing
activity
Consistent with our growth strategy, our marketing investment has increased significantly.
Marketing investment for the group was up 13% in FY23. In China, we increased our
marketing spend by 19%, with a significant uplift in consumer marketing and a further shift
in our mix towards more targeted digital channels.
As a percentage of revenue, marketing investment increased by half a point to 16.4% for the
year.
Some of our China marketing initiatives are shown on the right of this slide. Our team has
executed some very creative campaigns increasing our share of voice well above our share
of spend in the category. Our marketing capability and execution are a real source of
competitive advantage.

Slide 24: Further progress made in transforming our supply chain
We are also pleased to have made significant progress against our strategic priority of
transforming our supply chain following the appointment of Chopin Zhang during the year
as our Chief Supply Chain Officer. Highlights to date include:

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• Increasing our raw A1 protein free milk supply with our farming community
• Completing the insourcing of all a2 Milk® Whole and Skim milk powder products
• Commencing manufacturing of Stage 4 English label IMF product at MVM with a new
supply partner
• Undertaking production trials for a new English label IMF product with MVM and
another new supply partner
Accelerating MVM’s path to profitability by FY26 or earlier is a key strategic priority for the
Company.
As David Hearn noted, we are also exploring M&A, joint venture and alliance opportunities
to gain additional China label registrations and to accelerate the development of our supply
chain.
Moving to slide 25.

Slide 25: Meaningful progress towards achieving sustainability goals
Lastly, I want to highlight the continued progress we’re making towards a2MC becoming a
more sustainable business. We are determined to pioneer the future of Dairy for good and
our efforts in sustainability support our purpose.
We have continued to invest to reduce greenhouse gas emissions within our supply chain.
Importantly, we are nearing completion of the installation of a high-pressure electrode
boiler in Southland and completing the full electrification of the MVM site powered by
renewable sources such as hydro and wind.
We have also commenced an on-farm methane inhibitor feasibility study and are scoping
additional studies.
We had already set targets to be net zero for Scope 1 and 2 emissions by 2030 and for Scope
3 emissions by 2040. In FY23 we expanded on these targets across climate and nature.
We have introduced an interim on-farm Scope 3 GHG emissions reduction target of a 30%
reduction by 2030 on an intensity basis. We have also introduced an initial nature target for
nitrogen loss to waterways on an intensity basis.

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Given our presence across New Zealand, a great deal of the work we have undertaken in
sustainability supports New Zealand farmers and the dairy industry.
We thank our partners and suppliers for their collaboration across a number of projects that
have been undertaken over the past 12 months including our farmer grants programme –
the a2™ Farm Sustainability Fund in New Zealand which is managed by Lincoln University
and a similar programme in Australia with Landcare.
We also commenced a research partnership with Lincoln University and an initial research
project aimed at improving environmental impact on farm.
Finally on sustainability, we remain committed to making meaningful change in packaging.
In FY23 we developed a sustainable packaging roadmap and have plans to include recycled
HDPE in milk containers in Australia.
* * *
That’s it from me. I hope my presentation has provided you with a good summary of our
achievements in FY23 and I look forward to answering any questions you may have after the
formal business section of the Annual Meeting or after the meeting closes if you prefer.
Thank you very much for your time, and I’ll now hand back to our Chair.