Q3 Business Update and FY25 Farmgate Milk Price

29 May 2024

Q3 business update and FY25 Farmgate Milk Price

• Continuing operations’* earnings per share: 61 cents
• Reported earnings per share: 58 cents
• Continuing operations’ profit after tax: NZ $1,013 million up $20m, or 2%
• Reported profit after tax: NZ $973 million down 27% with the prior period including Soprole
performance and net gain on divestments
• Continuing operations’ EBIT: NZ $1,440 million down 6%
• Return on Capital: 11.9% up from 11.7% year on year
• Lift in forecast FY24 continuing operations’ earnings range: from 50-65 cents per share to 60-70
cents per share
• Opening forecast Farmgate Milk Price for 2024/25 season: $7.25-$8.75 per kgMS with a mid-point
of $8.00 per kgMS
• Current season forecast Farmgate Milk Price: midpoint maintained at $7.80 per kgMS, range
narrowed to $7.70-$7.90 per kgMS

Fonterra Co-operative Group Ltd today provided its Q3 business update, announcing profit after tax from
continuing operations’* of $1,013 million, up $20 million or equivalent to 61c per share. This result is
driven by continued strong earnings across all three of the Co-op's product channels.

CEO Miles Hurrell says the Co-op's Foodservice and Consumer channels in particular had a strong third
quarter with a lift in earnings compared to the same time last year.

“As a result of this performance, we have lifted our forecast FY24 continuing operations’ earnings range to
60-70 cents per share, up from 50-65 cents per share” says Mr Hurrell.

Fonterra also announced an opening 2024/25 season forecast Farmgate Milk Price of $7.25-8.75 per
kgMS with a midpoint of $8.00 per kgMS.

Farmgate Milk Price

Global Dairy Trade (GDT) prices have lifted over the past couple of months, back to levels seen around
the start of the calendar year.

“Our current season forecast Farmgate Milk Price midpoint remains unchanged at $7.80 per kgMS and as
we are nearing the end of the season, we have narrowed the range to $7.70-$7.90 per kgMS.

“Looking to the 2024/25 season, milk supply and demand dynamics remain finely balanced and China
import volumes have not yet recovered to historic levels.

“Given the early point in the season, the uncertainty in the outlook and ongoing risk of volatility in global
markets, we are starting the season with a cautious approach. Our opening forecast range is $7.25-$8.75
per kgMS with a midpoint of $8.00 per kgMS,” says Mr Hurrell.

Fonterra Co-operative Group
Page 2


Business Performance

Fonterra’s earnings from continuing operations’* year to date equates to 61 cents per share, up 1 cent on
prior year.

“Fonterra’s sales volumes were up slightly on last year by 38kMT, or 1%, due to higher sales volumes in
our Foodservice and Consumer channels.

“We also saw price relativities ease over the quarter, and we anticipate them to narrow further in Q4 as
they return to more historic levels.

“Gross margins remain strong across all three channels as our in-market teams continue to drive pricing
and volume. Foodservice and Consumer volumes are up 4% and 7% respectively year on year, with
margins consistent with Q2.

“Our EBIT of $1,440 million reflected improved performance in Foodservice and Consumer, with
Ingredients down year on year following record highs in FY23.

“Our increased earnings range assumes softer earnings in Q4 due to the seasonality of our milk
collections, the higher cost of inputs in the Foodservice and Consumer channels, and the impact of the
investments in modernising our IT systems.

“Across Fonterra, operating expenses are up due to inflation, upfront costs of driving efficiency
improvements and increased IT spend. Historically, some of this IT spend would have been treated as
capex and capitalised on the balance sheet.

“We are heading into year end with a strong balance sheet, with Fonterra’s underlying performance and
lower debt position helping to further reduce our financing costs.

“For the 12 months rolling Return on Capital we are sitting at 11.9%, in line with our forecast. This is
expected to be in our 10-11% target range for end of year,” says Mr Hurrell.

Strategy update

“Following our announcement earlier this month of a step-change in our strategic direction, we have
received a high volume of interest from parties looking to be involved in the potential divestment of our
Consumer and associated businesses.

“It’s still early days in this process, and we commit to providing farmer shareholders, unit holders, our
people and the market updated on new developments as they occur.

“We are also progressing work on our updated strategy and expect to share further detail over the coming
months,” says Mr Hurrell.

*Continuing operations’ earnings excludes earnings from discontinued operations. In FY24 discontinued operations
were DPA Brazil and in FY23 discontinued operations were DPA Brazil, Soprole and China Farms.

ENDS

For further information contact:

James Kaufman
Fonterra Communications
Phone: +64 21 507 072

Fonterra Co-operative Group
Page 3

Non-GAAP financial information

Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures are not
defined or specified by NZ IFRS.

Management believes that these measures provide useful information as they provide valuable insight on the
underlying performance of the business. They may be used internally to evaluate the underlying performance of
business units and to analyse trends. These measures are not uniformly defined or utilised by all companies.
Accordingly, these measures may not be comparable with similarly titled measures used by other companies. Non-
GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in
accordance with NZ IFRS.

Non-GAAP measures are not subject to audit unless they are included in Fonterra’s audited annual financial
statements.

---

 from 81c
 from 1.3b
 from 1.5b
 from 11.7%
 from 34.2% from 60c

•Continuing operations’ profit after tax of $1,013m, up $20m or 2%
•Equivalent to 61c earnings per share attributable to shareholders and unit holders
•Operating profit of $1,440m down $86m, or 6%
•Continued strong earnings performance in Foodservice and Consumer, with margins
holding longer than anticipated
•Ingredients down mainly due to price relativities trending back to historical levels
•Prior year Consumer performance includes $162m of impairments
•Financing costs reduced $51m to $124m reflecting lower average borrowings and cost of funds
•Tax expense reduced $55m to $303m reflecting lower operating profit
•Total Group profit after tax of $973m, down $353m, or 27%
•Impacted by discontinued operations’ profit after tax down $373m to $(40)m, with prior year
including Soprole performance and net gain on divestments
•Equivalent to 58c earnings per share attributable to shareholders and unit holders
•Return on capital 11.9%, in line with forecast and expected to taper in Q4, to 10 – 11% for full year
•Strong balance sheet due to underlying performance and lower debt position
Outlook
•Current season forecast Farmgate Milk Price range narrowed to $7.70 – $7.90 per kgMS
•Opening 2024/25 season forecast Farmgate Milk Price range of $7.25 – $8.75 per kgMS
•Lifted and narrowed FY24 continuing operations’ earnings range to 60 – 70 cents per share

•Year to date, the average price for the Reference portfolio declined USD 652 per MT, relative to the Non-Reference portfolio which declined by USD 923 per MT compared to the
prior year
•GDT contracts for the near term indicate a continued contraction of price relativities as demand for powders from the Middle East and Africa increases and stronger demand presence
from Southeast Asia, lifting the average Reference price
•Non-Reference pricing has remained relatively stable through FY24. The outlook for GDT Cheddar remains flat with demand now holding and US pricing recovering
2,500
3,500
4,500
5,500
6,500
FY22 YTD Q3
(USD/MT)
Reference Product shipment price
Non-Reference Product shipment price
Q1Q2Q3
Average Non-Reference price4,9395,4585,204
Average Reference price4,3003,8623,561
Price difference6391,5961,643
Q1Q2Q3
Average Non-Reference price4,3334,2184,347
Average Reference price3,2983,0553,395
Price difference1,0351,163952
Note: Refer to appendix for source data and date ranges
FY23 YTD Q3
FY24 YTD Q3

Channel performance
1,989
-1,526
--
-
1,440
-1,407
Underlying Consumer growth of $160m after
adjusting for $162m of impairments in FY23
FY23
Total Group EBIT
Discontinued
operations
EBIT
FY23
continuing operations
EBIT
IngredientsFoodserviceConsumerFY24
continuing operations
EBIT
Discontinued
operations
EBIT
FY24
Total Group EBIT
($ million)
•Continuing operations’ operating profit of $1,440m, down $86m. FY23 included $162m of
impairments. Adjusting for impairments, FY23 underlying earnings is $1,688m, and
operating profit is down $248m year-on-year
•Discontinued operations made a loss of $(33)m in FY24 reflecting the sale of DPA Brazil in
October 2023. DPA Brazil was profitable over the period, but this was more than offset by
the release of the $(68)m foreign currency translation reserve as part of the sale
•Material shift in composition of operating profit between channels compared to prior year:
–improved EBIT in Foodservice and Consumer due to volume growth, maintained pricing
and lower milk cost inputs
–Ingredients’ EBIT in FY23 benefited significantly from very favourable price relativities.
This year price relativities have narrowed as they shift back toward the long-term average
(463)
(610)
202
322
(33)
Note: For the nine months ended 30 April
FY23 includes Soprole
earnings and gain from
divestments
FY23 benefited
significantly from
very favourable
price relativities

Continuing operations
1,326
(333)
993
(86)
51
55
1,013
(40)
973
•Continuing operations’ operating earnings decreased due to:
–higher Foodservice and Consumer earnings more than offset by lower
Ingredients earnings
–removing impact of $162m of impairments in the prior year, operating expenses
increased $102m due to inflation, upfront costs of driving efficiency improvements and
increased technology spend
•Continuing operations’ net financing costs improved reflecting both lower average
borrowings and cost of funds
•Discontinued operations made a loss of $(40)m in FY24 reflecting the sale of DPA Brazil in
October 2023. DPA Brazil was profitable over the period, but this was more than offset by
the release of the $(68)m foreign currency translation reserve as part of the sale
FY23
Total Group
profit after tax
Discontinued
operations
profit after tax
FY23
continuing operations
profit after tax
Operating
earnings
Net finance
costs
TaxFY24
continuing operations
profit after tax
Discontinued
operations
profit after tax
FY24
Total Group
profit after tax
81c EPS
($ million)
60c EPS61c EPS58c EPS
Note: For the nine months ended 30 April. Profit after tax presented in the graph includes profit attributable to non-controlling interests. EPS presented is for profit attributable to equity holders of the Co-operative






Operating earnings performance by reporting segment and channel
289
561
501
226
251
216
274
42
97
110
85
208
134
109
22
(147)
51
(82)
116
61
72
Note: For the nine months ended 30 April. Prepared on a continuing operations basis

-
1,000
2,000
3,000
4,000
5,000
6,000
May-21May-22May-23May-24
per kgMS
2023/24 Season Forecast
2021/22 Season
$9.30
$8.22
USD/MT
2022/23 Season
Fonterra Reference Product shipment price
Average Reference Product shipment price for the season
The range has narrowed reflecting:
•increased certainty with over 90% of milk contracted for the season
•approximately 99% of the full year forecast USD cash flows related to the 2023/24 season hedged
Note: Refer to appendix for source data and date ranges
$7.80
Apr-24

,
,
,
USD/MT
FY23 FY22
per share
The lifted and narrowed range reflects:
•gross margins in Foodservice and Consumer holding for longer than expected. Margins are still expected to reduce in final quarter as higher input costs impact the business
•Ingredients earnings continue to be impacted by price relativities returning to long-term averages; and
•normal season factors such as the milk collection curve impacting manufacturing recoveries plus the increased technology spend expected in Q4
FY24 YTD Q3
Note: Refer to appendix for source data and date ranges
-
1,000
2,000
3,000
4,000
5,000
6,000
Jul-21Jan-22Jul-22Jan-23Jul-23Jan-24
Fonterra Non-Reference shipment priceFonterra Reference shipment price

per kgMS
•Midpoint of $8.00 per kgMS, $7.25 – $8.75 range reflects:
•minimal new season production contracted, as is normal at the start of a new season, allowing for
significant exposure to volatility in commodity prices
•China import volumes have not yet recovered to historical levels
•Midpoint at $8.00 per kgMS reflects a cautious approach due to the uncertainty in the outlook and ongoing risk
of volatility in global markets

2,399
2,522
2,435
3,590
3,121
20202021202220232024
($ million)
1,846
1,804
1,632
2,016
1,791
20202021202220232024
($ million)
1,057
975
825
1,989
1,407
20202021202220232024
($ million)
594
604
472
1,326
973
20202021202220232024
($ million)
16.0
15.5
17.0
19.7
17.2
20202021202220232024
($ billion)
3,087
3,053
2,946
3,000
2,677
20202021202220232024
('000 MT)
Note: Figures are for the nine months ended 30 April and are presented on a reported basis, unless otherwise stated

•Season to date collections, 1 June –30 April,were
1,404million kgMS, 0.4%behind last season
•Challenging weather conditions leading up to peak
production impacted soil moisture and temperatures,
resulting in lower pasture growth and quality in the
North Island
•End of season production has been performing above
expectations:
•lower South Island is particularly strong as
farmers utiliseexcess feed before winter weather
settles in
•periods of strong pasture covers in the Waikato,
partially offset by weaker pasture in the lower
North Island, has resulted in more farms ceasing
production earlier than prior seasons
-
10
20
30
40
50
60
70
80
90
JunJulAugSepOctNovDecJanFebMarAprMay
2021/22
2022/23
2023/24
2021/221,478m (down 4.0%)
80m litres
2022/231,480m (up 0.1%)
78m litres
2023/241,465m
1
(down 1.0%)
76m litres
1. Current full season forecast

1.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
2.Includes amounts attributable to non-controlling interests
3.Normalisations in FY24 comprise of $(66) millionin relation to the sale of DPA Brazil (FY23 comprises of
$260 million gain on sale of Soprole and $(12) million in relation to exitingHanguChina farm)
Sales volume (‘000 MT)
2,580 420 3,000 2,618 59 2,677
Revenue
18,430 1,307 19,737 17,002 172 17,174
Cost of goods sold
(15,207)(940)(16,147)(13,947)(106)(14,053)
Gross profit
3,223 367 3,590 3,055 66 3,121
Gross margin (%)
17.5%28.1%18.2%18.0%38.4%18.2%
Operating expenses
(1,752)(264)(2,016)(1,692)(99)(1,791)
Other¹
55 360 415 77 - 77
EBIT
1,526 463 1,989 1,440 (33)1,407
Net finance costs
(175)(51)(226)(124)(7)(131)
Tax expense
(358)(79)(437)(303)- (303)
Profit after tax
2
993 333 1,326 1,013 (40)973
Normalisations
3
-(248)
(248)-6666
Normalised profit after tax
2
99385
1,0781,013261,039

15
•Increased sales volumes driven by optimisationof inventory levels. Higher
sales volume through Foodservice and Consumer channels
•Revenue and gross profit both decreased due to lower product prices in the
Ingredients channel
•Gross profit did not decline as much as revenue due to partially being offset
by lower cost of goods sold, this meant our gross margin remains up on the
prior year
•Operating expenses reduced, with the prior year including $162m of
Consumer brand impairments
–Adjusting for impairments, operating expenses increased $102m due to
inflation, upfront costs of driving efficiency improvements and increased
technology spend
•Other increased $22m mainly due to favourable net foreign exchange
movements
•EBIT declined $86m due to reduced margins in the Ingredients channel as
price relativities move back toward historical levels
•Net finance costs improved reflecting both lower average borrowings and
cost of funds
•Discontinued operations made a loss of $(40)m reflecting the sale of DPA
Brazil in October 2023. DPA Brazil was profitable over this period, but this
was more than offset by the release of the $(68)m foreign currency
translation reserve as part of the sale
•Total Group profit after tax declined $353m mainly due to the prior year
including the earnings and gain on divestment of Soprole
∆
1
Sales volume (‘000 MT)2,580 2,618 1%
Revenue18,430 17,002 (8)%
Cost of goods sold(15,207)(13,947)8%
Gross profit3,223 3,055 (5)%
Gross margin (%)17.5%18.0%
Operating expenses(1,752)(1,692)3%
Other
2
55 77 40%
EBIT 1,526 1,440 (6)%
Net finance costs(175)(124)29%
Tax expense(358)(303)15%
Profit after tax from continuing operations993 1,013 2%
Continuing operations’ EPS (cents)60612%
Profit after tax from discontinued operations333 (40)-
Total Group profit after tax
3
1,326973(27)%
Earnings per share (cents)81 58(28)%
1.Percentages as shown in table may not align to the calculation of percentages based on
numbers in the table due to rounding of figures
2.Consists of other operating income, net foreign exchange gains/(losses) and share of equity
accounted investees
3.Includes amounts attributable to non-controlling interests

Gain/(loss) on sale
357(12)345(66)(66)
Profit/(loss) before net finance costs and tax
357(12)345(66)(66)
Net finance costs and tax
(97)-(97)--
Profit/(loss) after tax
260(12)248(66)(66)
Profit/(loss) attributable to non-controlling interests
---(3)(3)
Profit/(loss) after tax attributable to equity holders
of the Co-operative
260(12)248(69)(69)

∆∆∆
Sales volume ('000 MT)1,696 1,684 (1)%411 428 4%473 506 7%
Revenue13,063 11,138 (15)%2,900 3,088 6%2,467 2,776 13%
Cost of goods sold(10,958)(9,614)12%(2,363)(2,303)3%(1,886)(2,030)(8)%
Gross profit 2,105 1,524 (28)%537 785 46%581 746 28%
Operating expenses(790)(833)(5)%(288)(347)(20)%(674)(512)24%
Other
3
36 50 39%- 13 -19 14 (26)%
EBIT
4
1,351 741 (45)%249 451 81%(74)248 -
Net finance costs and tax expense(448)(237)47%(82)(116)(41)%(3)(74)-
Profit after tax903 504 (44)%167 335 101%(77)174 -
Gross margin16.1%13.7%18.5%25.4%23.6%26.9%
EBIT margin10.3%6.7%8.6%14.6%(3.0)%8.9%
1.Channel performance is prepared on a continuing operations basis and includessales to other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Ingredients, Foodservice and Consumer of $152m, $36m and $44m ($90m, $48m
and $51m for the comparative period), respectively.

1,351(534)
(10)
(31)
(35)
741
FY23
EBIT
Core
Operations
VolumeMarginOperating
expenses and
other
FY24
EBIT
EBIT ($ million)
Within the regions
289
561
501
226
251
216
274
13.9%
16.4%
17.6%
12.5%
16.2%
11.9%
13.7%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10. 0%
20. 0%
0
100
200
300
400
500
600
700
800
900
1000
FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY24 Q1FY24 Q2FY24 Q3
EBIT ($ million)Gross margin (%)
FY24 YTD Q3
•Ingredients EBIT is down $610m, due to:
–the FY24 lactose price has materially declined so the benefit to Core Operations of
relatively higher lactose costs in the Milk Price calculation (due to requiring more lactose
for standardisationof WMP, SMP and BMP) has significantly reduced
–lower margins achieved in Core Operations reflecting product prices declining at a
higher rate for the Non-Reference portfolio relative to the Reference portfolio
–lower margins within the regions, mainly due to a higher milk price in Australia and
weaker demand for Milk Protein Concentrate (MPC), cheese and cream in China
•Gross margins are expected to continue to tighten in the final quarter of FY24 reflecting
the recent increase in the price of Reference Products on GDT relative to
Non-Reference prices
Note: For the nine months ended 30 April. Prepared on a continuing operations basis

(‘000 MT)
Reference Products1,3141,34127
Non-Reference Products6566571
(NZD)
Reference Products ($ billion) 8.47.5-
Non-Reference Products ($ billion) 5.34.6-
Reference Products ($ per MT) 6,3755,591(784)
Non-Reference Products ($ per MT) 8,1537,031(1,122)
(NZD)
Reference Products ($ billion) (7.2)(5.5)-
Non-Reference Products ($ billion) (2.7)(2.3)-
Reference Products ($ per MT)(6,349)(4,833)1,516
Non-Reference Products ($ per MT)(4,108)(3,559)549
Note: Table includes Ingredients’ products that are on-sold to the Foodservice and Consumer channels and excludes bulk liquid milk. Bulk liquid milk for 2024 was 53,000 MT of kgMSequivalent (for the comparative period it was 54,000 MT of
kgMSequivalent). Milk solids used in the Reference Products sold were 739 million kgMSand 334 million kgMSin the Non-Reference Products (for the comparative period 737 million kgMSin Reference Products and 328 million kgMSin
Non-Reference Products)
•Reference Products sales volume up 27,000 MT due to increasing
shipment of powders
•Product prices in the Non-Reference portfolio have declined more
relative to the Reference portfolio mainly due to reduced demand for
Milk Protein Concentrate, cheese and cream in China
•Non-Reference portfolio cost of milk did not decline as much as the
Reference portfolio
–The cream products in the Non-Reference portfolio are
manufactured and sold on a shorter timeframe due to their
shorter shelf life, therefore, they get expensed at a more current
milk cost
–The cost of fat, which is the primary component of the milk cost
in cream products, has increased significantly over the past 12
months due to strong price increases in Anhydrous Milk Fat
(AMF) and Butter

FY24 YTD Q3
249
27
21
200(46)
451
FY23 EBITCore
Operations
VolumeMarginOperating
expenses and
other
FY24 EBIT
EBIT ($ million)
Within the regions
42
97
110
85
208
134
109
14.4%
19.3%
21.7%
22.0%
29.4%
23.3%
23.5%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20. 0%
40. 0%
0
100
200
300
400
500
600
700
800
900
1000
FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY24 Q1FY24 Q2FY24 Q3
EBIT ($ million)Gross margin (%)
•Foodservice EBIT is up $202m, due to:
–higher margins within Core Operations driven by lower milk input costs
–sales volume growth of 4%, mainly driven by UHT cream sales in Greater China
–favourable in-market margins predominately driven by the lower cost of milk, as well as
benefit from higher in-market pricing particularly in our Southeast Asia markets
•Lower cost of milk during FY24 Q1, coupled with favourable pricing meant a strong FY24
Q1 gross margin and EBIT relative to FY23
•Gross margins tightened in Q2 due to a combination of lower prices achieved in-market
and higher cost of goods sold as cost of milk increased
•Following strong sales volumes in Q2, Q3 volumes reflect historical averages and margins
remain stable
•Gross margins are expected to tighten in the final quarter of FY24 reflecting the increasing
price of Reference Products on GDT
Note: For the nine months ended 30 April. Prepared on a continuing operations basis

FY24 YTD Q3
(74)14
39
110
159248
FY23 EBITCore
Operations
VolumeMarginOperating
expenses and
other
FY24 EBIT
EBIT ($ million)
Within the regions
•Consumer EBIT increased $322m, due to:
–sales volume growth of 7%, with continued demand in Sri Lanka for consumer
powders, and FBNZ demand increasing as competitors exit the mainstream yoghurt
category and tourism returns in the Pacific
–improved product mix as more premium products were sold in the third quarter,
favourable pricing across most regions, and lower cost of milk
–lower operating expenses due to prior year including $162m of impairments
•Adjusting for impairments, Consumer EBIT increased $160m
•Lower cost of milk during FY24 Q1, coupled with favourable pricing meant a strong FY24
Q1 gross margin and EBIT relative to FY23
•FY24 Q2 gross margins tightened relative to Q1 due to a combination of lower in-market
prices and higher cost of milk
•FY24 Q3 gross margins increased due to an improved product mix with more premium
products sold compared to Q2
•Gross margins are expected to tighten in the final quarter of FY24 reflecting increasing
price of Reference Products on GDT
•FY23 Q2 and Q4 EBIT was impacted by the accounting for impairments
Note: For the nine months ended 30 April. Prepared on a continuing operations basis
22
(147)
51
(82)
116
61
72
23.8%
21.2%
25.8%
24.0%
28.8%
25.2%
26.5%
-70.0%
-50.0%
-30.0%
-10.0%
10. 0%
30. 0%
-200
-100
0
100
200
300
400
500
600
FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY24 Q1FY24 Q2FY24 Q3
EBIT ($ million)Gross margin (%)

∆∆∆
Sales volume ('000 MT)2,058 2,078 1%1,909 1,936 1%714 720 1%
Revenue14,433 12,515 (13)%13,983 12,569 (10)%5,277 4,763 (10)%
Cost of goods sold(13,142)(11,721)11%(12,593)(10,991)13%(4,735)(4,080)14%
Gross profit 1,291 794 (38)%1,390 1,578 14%542 683 26%
Operating expenses(590)(594)(1)%(930)(853)8%(232)(245)(6)%
Other
3
10 18 80%43 57 33%2 2 -
EBIT
4
711 218 (69)%503 782 55%312 440 41%
Net finance costs and tax expense(272)(104)62%(166)(215)(30)%(95)(108)(14)%
Profit after tax439 114 (74)%337 567 68%217 332 53%
Gross margin8.9%6.3%9.9%12.6%10.3%14.3%
EBIT margin4.9%1.7%3.6%6.2%5.9%9.2%
1.Performance is prepared on a continuing operations basis and includessales to other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Core Operations, Global Markets and Greater China of $103m, $88m and $41m
($115m, $45m and $29m for the comparative period), respectively.

∆
Sales volume ('000 MT)
1,866 1,898 2%1,247 1,245 203 204 416 449
Revenue
13,53212,429 (8)%10,028 8,634 1,324 1,3182,180 2,477
Cost of goods sold
(11,166) (10,278) 8%(8,356) (7,456) (1,145) (1,011) (1,665) (1,811)
Gross profit
2,366 2,151 (9)%1,672 1,178 179 307 515 666
Operating expenses
(1,341) (1,269) 5%(630) (662) (147) (180) (564) (427)
Other
3
51 69 35%32 45 -11 19 13
EBIT
4
1,076 951 (12)%1,074 561 32 138 (30) 252
Net finance costs and tax expense
(378) (287) 24%(352) (179) (15) (33) (11) (75)
Profit after tax
698 664 (5)%722 382 17 105 (41) 177
Gross margin
17.5%17.3%
16.7%13.6%13.5%23.3%23.6%26.9%
EBIT margin
8.0%7.7%
10.7%6.5%2.4%10.5%(1.4)%10.2%
1.Global Markets performance is prepared on a continuing operations basis and includessales to other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Total, Ingredients, Foodservice and Consumer of $158m, $98m, $19m and $41m
($112m, $62m, $9m and $41m for the comparative period), respectively.

∆
Sales volume ('000 MT)
714720 1%449 439 208 224 57 57
Revenue
4,898 4,573 (7)%3,035 2,504 1,576 1,770 287 299
Cost of goods sold
(4,041) (3,669) 9%(2,602) (2,158) (1,218) (1,292) (221) (219)
Gross profit
857 904 5%433 346 358 478 66 80
Operating expenses
(411) (423) (3)%(160) (171) (141) (167) (110) (85)
Other
3
4 8 100%45 02 01
EBIT
4
450 489 9%277 180 217 313 (44) (4)
Net finance costs and tax expense
(155) (140) 10%(96) (57) (67) (83) 8 -
Profit after tax
295 349 18%181 123 150 230 (36) (4)
Gross margin
17.5%19.8%
14.3 %13.8%22.7 %27.0%23.0 %26.8%
EBIT margin
9.2%10.7%
9.1 %7.2 %13.8 %17.7 %(15.3)%(1.3)%
1.Greater China performance is prepared on a continuing operations basis and includessales to other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Total, Ingredients, Foodservice and Consumer of $74m, $43m, $27m and $4m
($77m, $30m, $37m and $10m for the comparative period), respectively.

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To provide a full end-to-end view of performance, Core Operations is attributed to the regions
289
561
501
226
251
216
274
42
97
110
85
208
134
109
22
(147)
51
(82)
116
61
72
Note: For the nine months ended 30 April. Prepared on a continuing operations basis

We are exploring divestment options for Consumer and associated businesses
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Note: For the nine months ended 30 April, comparative is FY23. Prepared on a continuing operations basis
Comparative changes are to FY23, and presented on an underlying basis (adjusted for $162 million of impairments in Consumer)
In preparing the In Scope and Out of Scope breakdowns, we have applied the same principles and assumptions as used in our externally published channel and segment reporting, they
reflect existing transfer pricing arrangements and Core Operations is fully attributed to the Out of Scope businesses. These breakdowns are unaudited.
Oceania
•Fonterra Oceania
Oceania
•FBNZ and
Fonterra Australia
Foodservice
Oceania
•Fonterra Australia
Ingredients
Sri Lanka
Sri Lanka
Southeast Asia
•Indonesia
•Malaysia
•Philippines
•Singapore
•Thailand
•Vietnam
Greater China
•China
•Taiwan
•Hong Kong
Rest of the World
•Americas
•Middle East
•Africa

Serious harm
8542
Gender diversity (Band 12+)
37.6%39.5%40.5%39.3%
Culture Measure
–79–¹79
GHG emissions (Scope 1,2)²
(11.2)%(14.1)%(15.6)%(18.6)%
FEP adoption (New Zealand)
71%85%92%91%
Water Improvement Plans in place
–44.0%100.0%On track
Share of New Zealand milk collected for the season to 31 May79.1%79.0%79.0%78.3%
Delivered in full, on time (DIFOT, ex-New Zealand)51.6%53.2%80.0%69.6%
Cash operating expenses per kgMS (real)1.341.391.37Behind
Core Operations gross profit per kgMS (real)³8.829.218.52Behind
Return on capital (FY)6.8%12.4%8.0%-9.0%Ahead
Farmgate Milk Price ($)9.30$8.22$6.50-$7.50$7.70-$7.90⁴
Total shareholder return
(share price plus dividend)
$2.73
$0.20
$3.20
$1.00⁵
Not Available
$2.45⁶
$1.05⁵
On-farm profitability ($ per hectare)⁷
4,1502,063Not AvailableNot Available
1.No target set for FY24.
2.Relative to FY18 Baseline. Scope 1&2 including farms under our operational control.
3.Excludes the cost of milk.
4.Latest announced Forecast Farmgate Milk Price range with a mid-point of $7.80 per kgMS (21 March 2024).
5.Includes 50-cent per share capital return.
6.FCG closing share price on 30 April 2024.
7.DairyNZ Economic Survey 2021-2022 (Owner-Operator). FY23 is a modelled forecast.

•Price Relativities, Forecast 2023/24 season Farmgate Milk Price and FY24 continuing operations’ earnings outlook
–Reference and Non-Reference actuals: Fonterra Free Alongside Ship (FAS) prices of the New Zealand Ingredients portfolio
–GDT only Non-Reference contract shipment price uses GDT cheddar prices as a proxy

is used to indicate that a measure or sub-total excludes amounts
attributable to non-controlling interests
means bulk raw milk that has not been processed and bulk
separated cream
is adjusted net debt less the cash adjustment (used in calculating
adjusted net debt), plus cash and cash equivalents held by
subsidiaries for working capital purposes, plus equity excluding
hedge reserves and net deferred tax assets
is continuing operations operating expenses, less non-cash costs
(depreciation, amortisation, impairments and net foreign exchange
losses). Shown by kilogram of New Zealand and Australia milk solids
collected
represents the channel of branded consumer products, such as
powders, yoghurts, milk, butter, and cheese
means operations of the Group that are not discontinued operations
represents core operating functions including New Zealand milk
collection and processing operations and assets, supply chain and
sustainability, Fonterra Farm Source™retail stores, and the Strategy
and Optimisation function
means a component of the Group that is classified as held for sale
(or has been sold) and represents, or is part of a single coordinated
plan to dispose of, a separate major line of business or geographical
area of operations, or is a subsidiary acquired exclusively with a view
to resale
represents eliminations of inter-business unit sales
means the average price paid by Fonterra for each kgMSsupplied by
Fonterra’s farmer shareholders under Fonterra’s standard terms of
supply. The Farmgate Milk Price is set by the Board, based on the
recommendation of the Milk Price Panel. In making that
recommendation, the Panel provides assurance to the Board that the
Farmgate Milk Price has been calculated in accordance with the
Farmgate Milk Price Manual
is the rate that Fonterra has converted net United States Dollar
receipts into New Zealand Dollars including hedge cover in place
represents the channel selling to businesses that cater for out-of-
home consumption; restaurants, hotels, cafés, airports, catering
companies etc. The focus is on customers such as; bakeries, cafés,
Italian restaurants, and global quick-service restaurant chains. High
performance dairy ingredients including whipping creams,
mozzarella, cream cheese and butter sheets, are sold in alongside
our business solutions under the Anchor Food Professionals brand
is adjusted net debt divided by total capital. Total capital is equity
excluding hedge reserves, plus adjusted net debt
means the electronic auction platform that is used to sell commodity
dairy products
represents the Ingredients, Foodservice and Consumer channels
outside of Greater China
represents the Ingredients, Foodservice and Consumer channels in
Greater China
represents the channel comprising bulk and specialty dairy products
such as milk powders, dairy fats, cheese and proteins manufactured
in New Zealand, Australia and Europe, or sourced through our global
network, and sold to food producers and distributors
means kilograms of milk solids, the measure of the amount of fat and
protein in the milk supplied to Fonterra
is calculated as total borrowings, plus bank overdraft, less cash and
cash equivalents, plus a cash adjustment for 25% of cash and cash
equivalents held by the Group’s subsidiaries, adjusted for derivatives
used to manage changes in hedged risks on debt instruments.
Amounts relating to disposal groups held for sale are included in the
calculation
means all NZ milk solids processed by Core Operations, except for
Reference Commodity Products

means all NZ milk solids processed by Core Operations, except for
Reference Commodity Products
means adjustments made for certain transactions that meet the
requirements of the Group’s Normalisation Policy. These
transactions are typically unusual in size and nature. Normalisation
adjustments are made to assist users in forming a view of the
underlying performance of the business. Normalisation adjustments
are set out in the Non-GAAP Measures section. Normalised is used
to indicate that a measure or sub-total has been adjusted for the
impacts of normalisation adjustments. E.g. ‘Normalised EBIT’
refers to the difference in the weighted average price (in USD)
between the Reference Product portfolio and Non-Reference Product
portfolio. The difference between these two weighted average prices
is a key driver of the Ingredients’ gross margin
is commodity specifications of the five Reference Commodity
Products (RCPs) which are Whole Milk Powder (WMP) and Skim
Milk Powder (SMP), and their by-products Butter, Anhydrous Milk Fat
(AMF) and Buttermilk Powder (BMP). These commodity groups are
used to calculate the Farmgate Milk Price
is used to indicate a sub-total or total is reported in the Group’s
Financial Statements before normalisation adjustments. E.g.
‘Reported profit after tax’
is calculated as Total Group normalisedEBIT including finance
income on long-term advances less a notional tax charge, divided by
average capital employed
New Zealand: A period of 12 months from 1 June to 31 May
Australia: A period of 12 months from 1 July to 30 June
is used to indicate that a measure or sub-total comprises continuing
operations, discontinued operations and non-controlling interests.
E.g. ‘Total Group EBIT’
means the total cash payment per milk solid that is backed by a
share, being the sum of the Farmgate Milk Price per kgMSand the
dividend per share

This presentation may contain forward-looking statements, financial targets and ambitions (“Forward Statements”), each of which is based on a range of assumptions, including (in the case of our 2030
strategy) the assumptions noted in the Appendix of the booklet titled Our Path to 2030 which is available on our website. None of the Forward Statements is intended as a forecast, estimate or projection
of the outcome that will, or is likely to, eventuate. They should not be taken as forecasts or a guarantee of returns to shareholders.
There can be no certainty of outcome in relation to the matters to which the Forward Statements relate. Our ability to achieve the outcomes described in the Forward Statements is subject to a number of
assumptions, each of which could cause the actual outcomes to be materially different from the events or results expressed orimplied by such Forward Statements.
The Forward Statements also involve known and unknown risks, uncertainties and other important factors that could cause the actual outcomes to be materially different from the events or results
expressed or implied by such Forward Statements. Those risks, uncertainties, assumptions and other important factors are not allwithin the control of Fonterra Co-operative Group Limited (“Fonterra”)
and its subsidiaries (the “Fonterra Group”) and cannot be predicted by the Fonterra Group. The Forward Statements in this presentation reflect views held only at the date of this presentation.
While all reasonable care has been taken in the preparation of this presentation, none of Fonterra, the Fonterra Group, or any of their respective subsidiaries, affiliates and associated companies (or any
of their respective officers, employees or agents) (together “Relevant Persons”) makes any representation or gives any assuranceor guarantee as to the accuracy or completeness of any information in
this presentation or the likelihood of fulfilment of any Forward Statement or any outcomes expressed or implied in any Forward Statement. Accordingly, to the maximum extent permitted by law, none of
the Relevant Persons accepts any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of any Forward Statements or for any loss, howsoever
arising, from the use of this presentation.
Statements about past performance are not necessarily indicative of future performance.
Except to the extent (if any) as required by applicable law or any applicable Listing Rules (including the Fonterra Shareholders’ Market Rules), the Relevant Persons disclaim any obligation or
undertaking to update any information in this presentation.
This presentation does not constitute investment advice or opinions, or an inducement, recommendation or offer to buy or sellany securities in Fonterra or the Fonterra Shareholders’ Fund.
Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures are not defined or specified byNZ IFRS.
Management believes that these measures provide useful information as they provide valuable insight on the underlying performance of the business. They may be used internally to evaluate the
underlying performance of business units and to analyse trends. These measures are not uniformly defined or utilisedby all companies. Accordingly, these measures may not be comparable with
similarly titled measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in accordance with NZ IFRS.
Non-GAAP measures are not subject to audit unless they are included in Fonterra’s audited annual financial statements.
Please refer to the Glossary for definitions of non-GAAP measures referred to by Fonterra.