Synlait completes North Island strategic review

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



NZX: SML
ASX: SM1

9 September 2024

Synlait completes North Island strategic review

Synlait Milk Limited (Synlait) has completed the strategic review of its North Island assets, including its
manufacturing facility in Pōkeno and its blending and canning facility in Auckland.

The review was undertaken as part of Synlait’s business recovery plan. It explored a wide range of factors,
including potential ownership structures, mothballing the Pōkeno facility, and how to balance its capability
to process dairy and non-dairy hybrid nutrition products.

Synlait CEO Grant Watson commented: “The review has been detailed and thorough. It’s given us the
insight needed to lift the financial performance of these world-class assets. We now have a pathway to
profitability in our North Island operations.”

One of the review’s findings was that switching between processing plant-based proteins and dairy hinders
the Pōkeno plant’s operational efficiency. In addition, it found that transportation and a number of
manufacturing costs mean it is not financially viable for Synlait to keep processing milk at Pōkeno.

As a result, Synlait’s Board and Management have decided to focus Pōkeno’s operations solely on
producing advanced nutrition products which do not require raw milk. The Dunsandel facility will remain the
hub of the business for dairy operations.

Synlait has 54 farmer suppliers in the Waikato and the company will meet all of its contractual obligations to
them, including incentive payments.

Grant commented: “We are proud of our cohort of North Island farmers and very much value the working
relationship we have with them. They will remain Synlait suppliers until the end of their supply agreements
and we will remain their first port of call for support. What will change is that Open Country will be collecting
and processing their milk.”

The Board will not actively seek a buyer for Pōkeno, however in the event a compelling offer was made for
the asset, the company may consider it.

For more information contact:
Media
Jo Scott
Communications Lead
P: +64 021 883 123
E: jo.scott@synlait.com

Investors
Hannah Lynch
Head of Strategy & Corporate Affairs
P: +64 021 252 8990
E: hannah.lynch@synlait.com