The a2 Milk Company Limited/Announcement

FY25 Results & Supply Chain Transformation Update

Earnings Results17 August 2025ATMConsumer Staples

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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market
Name of issuer The a2 Milk Company Limited
Reporting Period 12 months to 30 June 2025
Previous Reporting Period 12 months to 30 June 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$ 1,901,983 13.5%
Total Revenue
$ 1,901,983 13.5%
Net profit/(loss) from
continuing operations
$ 202,889 21.1%
Total net profit/(loss)
$ 202,889 21.1%
Final Dividend
Amount per Quoted Equity
Security
$ 0.11500000
Imputed amount per Quoted
Equity Security
$ 0.03498216
Record Date 19 September 2025
Dividend Payment Date 3 October 2025

Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
30 June 2025
$ 1.79
30 June 2024
$1.54
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
FY25 Annual Report
FY25 Results Announcement / Media Release
FY25 Results Commentary and Outlook
FY25 Results Presentation
Authority for this announcement
Name of person authorised
to make this announcement
Jaron McVicar
Contact person for this
announcement
Jaron McVicar
Contact phone number +61 2 9697 7000
Contact email address Jaron.McVicar@a2milk.com
Date of release through MAP 18 August 2025

Audited financial statements accompany this announcement.

---

NZX Code: ATM
ASX Code: A2M

18 August 2025
NZX/ASX Market Release

FY25 Results & Supply Chain Transformation Update Media Release

The a2 Milk Company (“the Company”, “a2MC”) today marked its 25th year since formation reporting strong FY25 results and
simultaneously announcing major updates that substantially progress its supply chain transformation strategy and capital
structure optimisation.
FY25 Results
1. Delivered record sales of $1.9 billion with double-digit growth in revenue, EBITDA and EPS
2. Reached top-4 brand position in China’s IMF
1
market, a major milestone in brand health and market penetration
3. Achieved English label (EL) IMF double-digit sales growth and record market share in China label (CL) IMF driven by
high new user recruitment
4. Launched a range of new products targeting growth opportunities in the infant, kids and seniors nutrition segments,
and entered the Vietnam IMF market
5. Initiated returns to shareholders, declaring first ever dividends totalling 20.0 cents per share for FY25
Key financials and FY26 Outlook
2,3

• Revenue up 13.5% to $1,902.0 million
• EBITDA up 17.1% to $274.3 million with an EBITDA % margin of 14.4% up 0.4 ppts
• Net profit after tax (NPAT) up 21.1% to $202.9 million
4

• Basic earnings per share (EPS) up 20.9% to 28.0 cents
• Closing net cash
5
of $1,061.2 million up $92.2 million on 30 June 2024 with operating cash conversion of 95%
6

• Total FY25 dividends declared of 20.0 cents per share (~71% payout), with a final dividend of 11.5 cents per share
declared (fully franked and ~78% imputed)
• FY26 continuing operations guidance for revenue growth of high-single digit percent versus FY25 and EBITDA %
margin to be approximately 15% to 16% (see full FY26 Outlook in the “2025 Annual results and Supply Chain
Transformation update” announcement)
Results CEO commentary
The a2 Milk Company’s Managing Director and CEO, David Bortolussi said:
• “I’m proud of what our team has achieved this year, reporting record sales of $1.9 billion and double-digit earnings
growth in our 25
th
year since The a2 Milk Company was formed.”
• “We continued to grow market share in China to record levels, elevating The a2 Milk Company to a top-4 brand position
in the world’s largest infant milk formula market.”
• “It has been an exceptional year for our infant milk formula business, growing 10% in the year driven by our English
label business which was up 17%.”
• “Our Liquid Milk growth was outstanding, up 14% in ANZ and USA, and Other Nutritionals grew by an impressive
23% in China.”
• “We accelerated innovation by launching a range of new products spanning the infants, kids and seniors nutrition
markets increasing our relevance across life stages.”
• “Our Board was pleased to declare the Company’s first ever dividends this year with a 71% payout ratio, marking a
significant milestone for our shareholders.”

1
Infant milk formula.

2
All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3
All comparisons are with the 12 months ended 30 June 2024 (FY24), unless otherwise stated.
4
Excludes non-controlling interest in Mataura Valley Milk (MVM), a loss of $10.8 million.
5
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6
Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.

2
Supply chain transformation update
Since the end of the financial year, the Company has continued to progress its supply chain transformation strategy
announcing the following transactions today:
• The acquisition of an integrated nutritional manufacturing facility with two CL IMF product registrations, located in
Pokeno, New Zealand, by purchasing all of the shares in Yashili New Zealand Dairy Co., Limited
7
, from Yashili
International Group Limited (a subsidiary of China Mengniu Dairy Group Limited) for approximately $282 million
8
on a
debt and cash free basis; and
• The divestment of a2MC’s 75% and China Animal Husbandry Group’s (CAHG) 25% shareholding in Mataura Valley Milk
Limited (MVM) to Open Country Dairy Limited (Open Country), with a2MC net proceeds of approximately $100 million
on a cash and debt free basis (conditional on China regulatory filing). MVM will be treated as discontinued operations
and the Company expects to recognise a loss on sale of MVM of approximately $130 million
The Company intends to invest ~$100 million in a multi-year capital investment programme to increase capacity and enhance
capability at the new a2MC Pokeno site with plans to employ more than 100 additional people over time, providing significant
development opportunities to current and future team members.
Strategic rationale
The acquisition and divestment announced today are supported by a clear strategic rationale:
1. Secures opportunity for greater market access to the attractive NZ$23 billion
9
CL IMF registered market through
control of two highly sought after product registrations for CL IMF that can be amended to expand the a2™ branded
portfolio with the potential of a third registration over time, all subject to China regulatory approval. a2MC’s existing
China label IMF registered product, a2 至初™, will remain at Synlait
2. Supports growth in core IMF business over time through CL product portfolio expansion and innovation, assisting in
unlocking growth potential in lower tier cities and the domestic online channel
3. Accelerates development of nutritional manufacturing capability. The new a2MC Pokeno site is a world-class fully
integrated nutritional manufacturing facility with proven IMF experience including the current production of a2MC’s
new English label products, a2 Genesis™ and a2 Gentle Gold™
4. Provides access to A1 protein free milk pool from New Zealand’s highly regarded Waikato region in the North Island for
production of a2™ branded products, under a long-term supply agreement with Fonterra
5. Optimises asset footprint and capacity utilisation through the divestment of MVM whilst retaining access to high
quality A1 protein free ingredients from the site through a commercial supply agreement
6. Generates attractive financial returns over time through vertical manufacturing margin capture and additional brand
contribution, with return on invested capital expected to achieve weighted average cost of capital in FY29
Supply chain transformation CEO commentary
• “The acquisition of the Pokeno manufacturing facility and related products represents a pivotal moment for The a2 Milk
Company and the execution of our supply chain transformation strategy.”
• “The transactions enable the Company to build a better, higher growth, lower risk, end-to-end business and deliver
substantial benefits to shareholders.”
• “We are familiar with the Pokeno manufacturing facility and its team who are very capable – they have done an
excellent job co-developing and producing our a2 Genesis™ and a2 Gentle Gold™ English label products recently.”
• “MVM is an advanced nutritional powder drying facility that continues to have significant potential but is no longer the
optimal asset and pathway to achieve our strategic objectives.”
• “We appreciate the commitment that MVM farmer suppliers, our team members, the local Gore community and CAHG
have made over many years to develop the facility from a greenfield site in 2016 to what it is today, and we will remain
a significant customer of MVM going forward.”

7
New Zealand manufacturing site and related products, excluding Yashili’s operations in China.
8
All figures are in New Zealand Dollars (NZ$); subject to a working capital and net debt adjustment mechanism at closing.
9
Source: Retail sales value estimate supported by a2MC internal analysis informed by a series of data sources including but not limited to newborn data,
Kantar, Nielsen and Smartpath data.

3
Capital management update
Once completed, these transactions will provide more clarity regarding a2MC’s future capital needs.
Chair Pip Greenwood said, “The Pokeno manufacturing facility acquisition and MVM divestment represent a significant step in
our supply chain transformation and opportunity for further growth for the Company. With greater certainty over future
capital needs, the Board is pleased to announce its intention to declare a fully franked and unimputed special dividend of $300
million after obtaining regulatory approval to bring the new China label registered products under The a2 Milk Company brand
and completion of the MVM divestment.”
The Company also reaffirms its ordinary dividend policy of 60-80% of normalised NPAT and confirms its intention to maintain
a strong and flexible balance sheet, continue to assess growth opportunities and capital needs, and consider additional
shareholder returns in the future.

Authorised for release by the Board of Directors

David Bortolussi
Managing Director and Chief Executive Officer
The a2 Milk Company Limited

For further information, please contact:

Investors / Analysts
Chante Mueller
Head of Investor Relations
M +61 400 374 133
chante.mueller@a2milk.com

Media – New Zealand
Barry Akers
M +64 21 571 234
barryakers9@gmail.com
Media – Other markets
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

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NZX Code: ATM
ASX Code: A2M

18 August 2025
NZX/ASX Market Release

FY25 Results Commentary and Outlook

Group financial performance
1,2,3

The a2 Milk Company (“the Company”, “a2MC”) announces its financial results for the 12 months ended 30 June 2025. Key
results are as follows:

$NZ million
FY25 FY24 Variance (%)
Group Revenue 1,902.0 1,675.5 13.5%
EBITDA
4
274.3 234.3 17.1%
Net profit after tax (NPAT)
(Attributable to owners of the Company)
202.9 167.6 21.1%
Basic earnings per share (cents)
28.0 23.2 20.9%
Net cash
5
1,061.2 968.9 9.5%
Total dividend (NZ cents per share)
20.0 - n/a

Revenue grew 13.5% to $1,902.0 million, driven by continued growth in the China & Other Asia segment up 13.9%, supported
by the USA segment up 22.5% and Mataura Valley Milk (MVM) up 42.7%, with the ANZ segment flat.
Total IMF sales grew 9.9% led by English label which was up 17.2% driven by performance within the CBEC and O2O
6
channels
(up 24.9%) supported by English label market growth. China label sales were 3.3% higher, with the Company achieving record
China label market share in FY25, despite ongoing market decline and the impact of supply constraints experienced in 1Q25
and 4Q25.
Liquid milk sales grew 14.4%, with ANZ up 9.9% and USA up 22.1% driven by growth in the core portfolio and from recent
product innovation. Other Nutritional sales continued to grow, up 23.1%, supported by new kids and seniors fortified milk
powder products that were launched during the year. The Other Nutritionals portfolio consists of non-IMF powdered a2
Milk™ products and China & Other Asia liquid milk products. Ingredients (MVM) sales grew 41.9% mainly due to higher GDT
7

market pricing and increased milk volumes processed.
Gross margin percentage
8
of 46.1% was up 0.3ppts driven by lower IMF ingredients costs, favourable FX and cycling the net
impact of MVM coal-fired boiler accelerated depreciation that was FY24 weighted (FY25: $5 million, FY24: $10 million), partly
offset by the cost of airfreight used to mitigate IMF supply constraints net of Synlait support.
Distribution costs were flat as a percentage of net sales with higher ANZ rates due to distribution mix offset by improvement
in USA freight rates.
Marketing investment increased 13.7% to $318.4 million, maintaining a similar re-investment rate to prior year of ~17% of
revenue, and was primarily focused on China related activities including a2 Milk™ superiority campaigns, new user
recruitment in the Year of the Dragon, and the launches of a2 Genesis™ infant formula and new kids and seniors fortified milk
powder products. China marketing continues to make-up the vast majority of the Group’s investment, accounting for over
90% of total FY25 marketing expenses.

1
All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ended 30 June 2025.
2
All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3
All comparisons are with the 12 months ended 30 June 2024 (FY24), unless otherwise stated.
4
EBITDA is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that in combination with
GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business. A
reconciliation of EBITDA to net profit after tax is shown in the Company’s 2025 Annual results and Supply Chain Transformation update (slide 60) dated 18
August 2025.
5
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6
Cross-border e-Commerce and Offline-to-Online channels.
7

Global Dairy Trade.
8
Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.

2
Administrative and other expenses (SG&A) declined as a percentage of sales, down 0.7ppts to 13.4%, reflecting improved
operating leverage. In absolute terms, SG&A increased by 7.6% to $254.2 million primarily due to investment in capability
development, particularly in supply chain functions and in China, and increased costs related to scientific research and
innovation, partially offset by reduced FX losses and cost reduction initiatives.
EBITDA increased 17.1% to $274.3 million, with EBITDA % margin slightly higher at 14.4% (up 0.4ppts), in line with guidance.
EBITDA % margins improved from 1H25 to 2H25, with 2H25 EBITDA % margin of 15.4% up 2.1 ppts on 1H25 (13.3%).
Depreciation and amortisation decreased $5.9 million to $26.3 million due to cycling higher accelerated depreciation of the
MVM coal-fired boiler in FY24, net interest income increased to $41.2 million reflecting higher cash balances and the effective
tax rate improved to 33.6% (FY24: 35.4%) due to reduced MVM and US tax losses.
NPAT was $202.9 million, an increase of 21.1%, with basic earnings per share of 28.0 cents, up 20.9%.
The balance sheet further strengthened during the year with closing net cash of $1,061.2 million, up $92.2 million on 30 June
2024. Operating cash inflows (excluding interest and tax) were $259.3 million, representing operating cash conversion of 95%
9

in line with guidance but lower than FY24 (126%). FY25 cash conversion was impacted by the settlement of Synlait FY24
payments withheld in accordance with contractual arrangements and a reduction in Synlait purchase order deposit payment
terms which commenced in FY25.
Inventory of $139.1 million was down 22.6% on 30 June 2024 driven by lower IMF inventory levels that were impacted by
sharp growth in early stage product demand compounded by Synlait supply constraints caused by 4Q25 manufacturing
challenges. To mitigate the impact on consumer sales and new user recruitment, the Company prioritised distributor and
retailer stock levels, and utilised airfreight to expedite deliveries. The Company has been actively collaborating with Synlait to
address its manufacturing challenges taking steps to reduce the likelihood of recurrence in the future to ensure that a2MC’s
own inventory returns to target levels.

Regional and product performance
1. China & Other Asia
The China IMF market showed signs of stabilisation in FY25, with the rate of value decline moderating to -3.2%
10
by year-end.
While the overall market declined, the Stage 1 and Stage 2 categories grew 10% and 3%, respectively. The strong performance
of early stages was due to the increased number of newborns which grew by 5.8% to 9.54 million during CY24
11
, the first year
of growth since CY16. The CY24 growth in birth rates reflected a combination of the realisation of delayed births from COVID
years and the “Year of the Dragon” effect, however, it is anticipated that the birth rate will decline in CY25 aligned with
longer-term trends in the childbearing population and fertility rate.
Subsequent to 30 June 2025, the China Central Government announced subsidies to support the costs of childcare provided
by central and local authorities. A positive initiative for families and the industry, however it is too early to assess the
potential impact.
Despite the overall China IMF market decline, a2MC’s China & Other Asia segment revenue grew by 13.9% to $1,302.0 million
driven by IMF sales growth of 12.4%, with segment EBITDA up 14.6% to $332.4 million. a2MC’s China IMF market share
continued to reach record levels with overall market share increasing to 8.0% from 7.1% in FY24
12
, with the brand achieving a
top-4 position in the world’s largest IMF market – a major milestone for the Company which launched its first IMF product
only 12 years ago. The brand’s continued growth in China was supported by increased marketing investment and improved
brand health metrics. In terms of IMF channel performance, English label IMF CBEC and O2O channels were a stand-out
performer, growing 24.9%.
China label IMF
China label IMF sales reached $632.5 million, representing an increase of 3.3%. This was a positive outcome, particularly in
the context of a 5.6% decline in the overall China label market, and to a lesser extent, supply constraints that impacted stock
availability in 1Q25 and 4Q25. The Company delivered early stage sales growth significantly ahead of the market, driven by
effective new user recruitment initiatives, resulting in record Stage 1 market share in the MBS channel of 4.0% (FY24: 3.1%)
13

and in the DOL channel of 5.8% (FY24: 5.5%)
14
. These efforts contributed to a record high China label IMF market share of
5.5%
15
, underscoring the brand’s growing consumer demand and competitive strength.

9
Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
10
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). Value decline of -13.4% in 1H24 and -6.8% in 2H24.
Kantar had two rounds of panel update in March and June 2025 and restated historical data.
11
China National Bureau of Statistics.
12
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities), MAT.
13
Nielsen MBS retail measurement service: mother and baby stores only retail value share. MAT.
14
Smart Path China IMF online market tracking: for DOL only retail value share, MAT.
15
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities), MAT.

3
In terms of a2MC’s channel performance, the significant gains in early stage new users drove market share growth across
both MBS and DOL channels. The Company’s total MBS market share increased 0.2ppts to 3.7%, with market share in BCD
cities increasing to 3.2% in line with the Company’s strategic focus, while share in Key&A cities recovered to 7.0%
16
. Online
channels continued their upward momentum, reflecting strong consumer demand for convenience and accessibility, with
a2MC’s DOL market share reaching a new high of 4.2%
17
, up 0.3ppts on FY24.
English label IMF
18

English label IMF positive sales momentum continued with English label sales in the China & Other Asia segment of $559.1
million up 24.9%. a2MC’s English label growth continues to be supported by overall market expansion and growth in
combined CBEC and O2O channels. The English label market grew by 11.9% in FY25 driven by higher volume and continued
premiumisation, gaining share within total IMF to 19% from a low of 14% in FY22 but below pre COVID-19 levels of 23% in
FY20. While English label represents a smaller proportion of the IMF market, a2MC is well positioned to benefit from this
segment given its position as the second largest brand in the English label market with just under 20% market share
19
.
The rapid growth of HMO and specialty product segments continues to be a growth driver of the English label market with
consumers adopting English label products due to ingredients and specialised formulations not widely available in China label
(such as those including various HMOs
20
). To capitalise on this growing market opportunity, the Company launched its most
premium English label IMF product, a2 Genesis™ into the Hong Kong CBEC channel in January 2025 followed by a major
marketing campaign during 4Q25 to build awareness. Early indicators suggest the product has been well received by
consumers, achieving positive reviews, encouraging repurchase rates and strong month on month sales growth off a low base.
In addition, the Company continued to make progress against its emerging markets strategy expanding its reach of English
label products into Vietnam through the launch of a2 Platinum™ in 1H25 and a2 Gentle Gold™ in 2H25 with a focus on
building brand awareness and expanding distribution across MBS stores.
Other Nutritional products
Other Nutritionals revenue in the China & Other Asia segment was up 33.1% to $110.3 million. The Company’s focus on
growth and innovation resulted in the launch of three new locally manufactured China label fortified milk powder products in
1H25 targeting the seniors segment addressing top senior health needs: immunity, bone, gut and heart health. The Other
Nutritionals portfolio was further expanded in 2H25 with the launch of a new kids fortified milk powder product designed for
kids aged 3+, supporting immunity, eye health and brain development with innovative packaging. The newly launched seniors
and kids milk powder products are resonating well with consumers, supported by a2MC’s strong brand equity and showing
early signs of positive uptake.

2. Australia and New Zealand
Australia and New Zealand (ANZ) segment reported revenue of $316.0 million and EBITDA of $57.5 million, down 0.4% and
8.7% respectively. The result was driven by growth in the Australian liquid milk business (up 9.9%) which offset ongoing
Daigou channel decline.
English label IMF and Other Nutritionals products
a2MC IMF reseller and retail sales decreased 18.1% to $80.6 million versus FY24, consistent with wider channel declines,
however showed signs of stabilisation with 2H25 sales in line with 1H25. English label IMF focus remains on the CBEC and
O2O channels, however the Company continues to support the Daigou channel through marketing support and trade
activations.
a2 Gentle Gold™, which launched during FY24 has continued to perform well in market with a2 Gentle Gold
TM
driving a year-
on-year increase of 19% in a2MC’s Total Australian Retail Sales Value
21
.
Consistent with Daigou channel declines, revenue for Other Nutritionals was down 7.5% to $24.8 million, with growth realised
through channels in the China & Other Asia segment.
Liquid milk
Australian liquid milk sales were up 9.9% to $209.0 million, led by a2 Milk™ Lactose Free and growth in the core a2 Milk™
range. This strong performance was achieved in a challenging market, with the liquid milk category declining 0.7%
22
driven by
ongoing elevated competitor promotional activity.

16
Nielsen MBS retail measurement service: mother and baby stores only retail value share. MAT.
17
Smart Path China IMF online market tracking: for DOL only retail value share, MAT.
18
English label IMF includes sales via CBEC, O2O, Emerging Markets and Hong Kong Resellers.
19
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities), MAT.
20
Human milk oligosaccharides.
21
Source: Circana (includes major retailers, pharmacy), MAT June 2025 vs. MAT June 2024.
22
IRI Australian Grocery Weighted Scan, MAT to 22 June 2025 vs. MAT to 22 June 2024.

4
a2MC’s liquid milk market value share grew 0.8ppts to 11.2%, primarily driven by a2 Milk™ Lactose Free which increased
share of the Australian lactose free market from 12.7% to 18.5%
23
. a2MC’s liquid milk brand health continues to strengthen,
with brand health advocacy (NPS) at its highest levels on record
24
.

3. USA
USA grew revenue by 22.5% to $139.3 million and continued to make progress towards profitability, with EBITDA losses
reduced to $9.3 million (FY24: $15.5 million).
Revenue growth was driven by ongoing strength in the core a2 Milk™ range plus growth in a2 Milk™ Grassfed products and
the Club channel. a2MC’s market value share in the premium milk category for the Grocery channel increased to 2.2% (up
from 2.1%)
25
. IMF sales in FY25 under the current US FDA Enforcement Discretion were not material.
Profitability improvement was achieved through revenue growth and a continued focus on optimising trade spend, and input
and distribution costs.
The Company’s New Infant Formula Notification (NIFN) submission to US FDA for long-term IMF approval is under review.

4. Mataura Valley Milk
The FY25 year was characterised by higher GDT market pricing plus higher milk volumes processed through the MVM site. As
a result, revenue of $144.7 million was $43.3 million higher than prior year, with EBITDA losses improving to $17.4 million
(FY24: $20.9 million). EBITDA loss improvement reflects higher internal revenue, driven by timing impacts and growth in the
Group’s Other Nutritionals range which utilise MVM milk powders, and disciplined cost management.

Innovation and supply chain transformation
In FY25, the Company maintained its strong focus on innovation as a key growth driver, supported by strategic partnerships
and ongoing transformation across its supply chain. A range of new products were launched targeting strategic growth
opportunities, all formulated with A1 protein free milk powders produced at a2MC’s MVM facility in New Zealand.
The Company enhanced its English label IMF partnership with Yashili New Zealand with the development, manufacture and
launch of a new English label IMF product featuring an advanced HMO formulation. The launch of a2 Genesis™ was an
important innovation for the Company, targeted at the growing HMO product segment and benefiting from price
premiumisation in the English label market.
This year also marked the start of local production for the first time in China with seniors fortified milk powders. Three new
products were launched in collaboration with Shanghai Howell Nutrition Dairy Co., Ltd., enhancing responsiveness to market
needs and strengthening local relevance.
Supply chain optimisation also continued, with the transition of manufacturing for a2 Milk™ powder pouch to NZ Nutritional
Wellness. This move has improved production efficiency, enhanced capability, and strengthened traceability.
The Company also commenced the commissioning of an upgrade of its Kyabram (Australia) fresh milk facility in partnership
with KyValley Dairy to increase capacity which is close to completion.

Sustainability
The Company continued making planet-positive progress. In FY25, the Company developed a detailed emissions reduction
roadmap and climate transition plan, providing a structured framework to track progress toward its 2040 net zero GHG
emissions target.
The Company reduced Scope 1 emissions by 97% in FY25, led by the MVM boiler conversion completed in FY24. This
transition has resulted in MVM now operating on 100% certified renewable energy
26
.
At the farm level, a2MC continued to invest in sustainable practices through the a2™ Farm Sustainability Fund, supporting 19
new projects with a total investment of NZ$575,000. These initiatives are closely aligned with the Company’s broader
sustainability goals and reflect its commitment to supporting its supplier base in the transition to more sustainable farming.

23
IRI Australian Grocery Weighted Scan, MAT to 22 June 2025 vs. MAT to 22 June 2024.
24
a2MC brand health tracking June 2025.
25
SPINS data for the Grocery channel, MAT.
26
MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses on an
annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have been
independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel sources, due
to the nature of the electricity transmission and distribution system.

5
Packaging sustainability remained a priority, with further execution against the Company’s sustainable packaging action plan.
In FY25, a2MC achieved 98% recyclable packaging placed on market (by weight) and attained ‘Beyond Best Practice’ status in
Australian sustainable packaging performance
27
, demonstrating leadership in circular packaging solutions.
The Company also maintained its support for AgriZero
NZ
, a collaborative effort between the New Zealand Government and
leading agribusinesses aimed at reducing on-farm biogenic methane and nitrous oxide emissions.

Dividends
In November 2024, the Company announced the establishment of a dividend policy for the first time in company history. The
dividend policy targets a payout ratio range of between 60% and 80% of net profit after tax excluding non-recurring and other
items (normalised NPAT). Subsequently, the Company declared its first interim dividend of 8.5 cents per share in February
2025, which was paid to shareholders in April 2025. This represented a payout ratio of ~67% of NPAT, equating to
approximately $61.5 million, and was fully imputed and fully franked.
As part of the Company’s FY25 results, a final dividend of 11.5 cents per share fully franked and ~78% imputed has been
declared, representing a payout ratio of ~75%, equating to approximately $83.4 million, to be paid to shareholders on 3
October 2025. Total dividends declared by the Company for FY25 are 20.0 cents per share, representing a total payout ratio
of ~71% which equates to approximately $145m being returned to shareholders.
On an ongoing basis, dividends are expected to be declared on a semi-annual basis in February and August each year at a level
consistent with the payout ratio range. In determining future dividends, a number of factors will be taken into consideration,
including market conditions, current and future earnings, cash flows, capital requirements and the Company’s financial
position.
The Company intends to impute and frank dividends to the maximum extent possible subject to available credits, noting that
imputation credits are limited.

Supply chain transformation update
In addition to the Company’s FY25 results announced today, the Company simultaneously announced the acquisition of
Yashili New Zealand (YNZ) a world-class fully integrated nutritional manufacturing facility in Pokeno with two existing China
Label product registrations. Concurrently, and following the decision to acquire YNZ, a2MC has also announced the
divestment of MVM to optimise its asset footprint, capacity utilisation and financial performance. These transactions mark a
major milestone in the Company’s supply chain transformation. The supply chain transformation initiatives announced today
are expected to deliver substantial benefits to a2MC shareholders supported by a clear strategic rationale.
See the Company’s FY25 results and Supply Chain Transformation update presentation and media release dated 18 August
2025 for full details.

FY26 Outlook
a2MC will continue executing its growth strategy in FY26, with an emphasis on capturing its full potential in the China market
whilst expanding into adjacent categories and new markets. With respect to the transactions announced today, the Company
will be mainly focused on securing regulatory approvals, progressing the future insourcing of a2 Platinum™ and commencing
a multi-year capital investment programme.
The following outlook is prepared on the basis that both transactions complete as expected and excludes any potential special
dividend payment.
On a continuing operations
28
basis, the Company expects the following for FY26:
• Revenue growth of high single-digit percent versus FY25 continuing operations
29

• EBITDA % margin to be approximately 15% to 16%
• Depreciation and amortisation to be approximately $20 million to $24 million
• Interest income to be lower due to lower market rates and net transaction cash outflows
• NPAT similar to FY25 reported
30

• Cash conversion of approximately 80% to 90%
• Capital expenditure of approximately $50 million to $70 million

27
Source: a2MC 2025 Australian Packaging Covenant Organisation (APCO) Annual Report and Action Plan.
28
Continuing operations represents the a2MC Group excluding MVM and including YNZ from the expected completion date of 1 September 2025.
Discontinued operations comprises of MVM.
29
FY25 continuing operations revenue was $1,757 million.
30
FY25 reported NPAT was $203 million.

6
MVM will be treated as discontinued operations, including operating losses prior to completion of the divestment and an
expected loss on sale of approximately $130 million.

Key risks
A range of risks could materially impact expected revenue and earnings outcomes including, but are not limited to, trading
upside and downside, challenging macroeconomic conditions, China IMF category dynamics and competitive intensity,
product and supply related risks, cross border trade, foreign exchange movements, changes in interest rates, farmgate milk
pricing and other commodity prices, and regulatory risk.
a2MC’s full FY26 outlook statement is outlined on slide 55 in the Company’s FY25 Results and Supply Chain Transformation
update presentation dated 18 August 2025.

Capital management update
Once completed, the transactions announced today will help clarify the Company’s future capital needs. As a result, the Board
intends to declare a $300 million special dividend, fully franked and unimputed, subject to the Company receiving regulatory
approvals in connection with the two existing China label registrations for use under the a2MC brand and completion of the
MVM divestment, which are both expected to be achieved in the next twelve months. Further detail on the dividend will be
provided once these steps are complete.
The Board also reaffirmed the Company’s ordinary dividend policy of 60-80% payout of normalised NPAT, and confirmed its
intention to maintain a strong and flexible balance sheet, continue to assess growth opportunities and capital needs, manage
risk and consider further shareholder returns.

Authorised for release by the Board of Directors

David Bortolussi
Managing Director and Chief Executive Officer
The a2 Milk Company Limited

For further information, please contact:

Investors / Analysts
Chante Mueller
Head of Investor Relations
M +61 400 374 133
chante.mueller@a2milk.com

Media – New Zealand
Barry Akers
M +64 21 571 234
barryakers9@gmail.com
Media – Other markets
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

---

The a2 Milk Company
2025
Annual Report
We pioneer the future of Dairy for good

Strategic focus and
disciplined execution have
driven another strong result,
underscoring the success
of our growth strategy and
sustained momentum
EBITDAN PAT
4
EPS
5
m
m
m
m
m
m
m
m
m
m
c
c
c
c
c
FY22
FY21
FY23
FY24
FY25
Sales Revenue
1
Infant milk
formula (IMF)
Liquid milk
2
Ingredients Other
Nutritionals
3

FY22FY21FY23FY24FY25
$1,022m
$914m
$1,108m
$1,274m
$1,160m
$254m
$232m
$289m
$346m
$303m
$63m
$59m
$104m
$80m
$114m
$135m
$110m
$144m
$101m
$1,444m
$1,205m
$1,591m
$1,899m
$1,673m
1 Sales revenue reflects Net Sales Revenue and excludes Other Revenue.
2 Excludes liquid milk products (plain and fortified) exported to China and
Other Asia markets.
3 Comprises powdered milk products (plain and fortified), and liquid milk
products (plain and fortified) exported to China and Other Asia markets.
4 Attributable to owners of the Company.
5 Earnings per share (basic).
FY22
FY21
FY23
FY24
FY25
FY22
FY21
FY23
FY24
FY25

Chair’s letter 2
CEO’s year in review 4
Building a sustainable growth business 14
Who we are 15
What makes us unique 15
A remarkable journey 16
What we do 18
How we create value 20
Our growth strategy 22
Our reporting approach 25
People 28
Planet 38
Consumers 48
Shareholders 55
Risks and opportunities 58
Corporate governance 68
Directors 72
Executive Leadership Team 74
Remuneration 76
Contents
1

Chair’s
letter
As we mark the 25th anniversary of The a2 Milk
Company, it is a moment to reflect on our
journey and celebrate the remarkable progress
we’ve made. From pioneering the A2-type
protein proposition to growing and becoming
a trusted brand across China, Australia,
New Zealand, the USA, and new emerging
international markets – our commitment to
quality, innovation and sustainable growth
continues to define who we are.
FY25 has been another year of strong execution and
performance. Despite ongoing macroeconomic challenges and
evolving market dynamics, we remained focused on delivering
against our growth strategy that has been our north star since
it was refreshed in 2021. Our results this year reaffirm the
effectiveness of our strategy, the strength of our brand and
the quality of execution by our talented team. We delivered
exceptionally strong growth in Group revenue (up 13.5%) driven
by our China IMF business, with an improvement in margins
driving faster growth in EBITDA (up 17.1%) and EPS (up 20.9%).
We continue to make meaningful progress against our strategic
medium-term financial and non-financial ambitions and remain
on track to achieve the vast majority of our targets.
One of the most significant milestones for the Company
this year was the introduction of a dividend policy at our
Annual Meeting in November 2024. This was followed by the
announcement of an inaugural dividend of 8.5 cents per share
at our 1H25 results in February, and a final FY25 dividend
announced today of 11.5 cents per share. This reflects the
Board’s confidence in the Company’s business model and
financial position, and its commitment to delivering long-term
shareholder value.
1 Source: a2MC internal analysis informed by a series of data sources including but not limited to newborn data, Kantar, Nielsen and Smartpath data.
Supply chain transformation remains a top priority for
the Company with a focus on securing strategic control
of additional China label registrations and developing our
nutritional manufacturing capability. During the period we have
been focused on increasing our speed of innovation through
investment in capability and fostering strong partnerships with
key partners. In FY25 we expanded our commercial relationship
with Yashili New Zealand, through the launch of our new
elevated English label IMF product, a2 Genesis™, and, through
our new partnership with Howell, we commenced our first
China-based manufacturing with the launch of three new China
label products targeting the fast-growing senior segment.
Since the end of our FY25 financial year, we have continued
to progress our supply chain transformation opportunities.
Alongside our FY25 results announced today, we have
simultaneously announced the acquisition of a world-class fully
integrated nutritional manufacturing facility, located in Pokeno,
New Zealand. This acquisition marks a significant step toward
securing greater market access to the NZ$23 billion China
label IMF market
1
, enabling innovation and supporting future
growth in our core IMF business over time. We also announced
today the divestment of our MVM facility to optimise our asset
footprint, capacity utilisation and financial performance.
PIP
GREENWOOD
2

“ One of the most significant milestones for
the Company this year was the introduction
of a dividend policy at our Annual Meeting
in November 2024. This reflects the Board’s
confidence in the Company’s business model
and financial position, and its commitment
to delivering long-term shareholder value.”
These transactions provide us with greater certainty over
our future capital needs and as a result, the Board is pleased
to announce its intention to declare a special dividend of
$300 million after obtaining regulatory approval to bring
the new China label registered products under The a2 Milk
Company brand and completion of the MVM divestment.
Further details in relation to a special dividend will be
announced once this has happened, which we hope will be
within twelve months.
Shifting focus back to our FY25 performance. We continued
to make progress against our commitment to sustainability
through our goals of protecting our planet, caring for our
cows, re-thinking packaging, progressing towards net zero and
contributing to a nature positive future. Last year we released
our first climate statement, and this year we expanded our
disclosures to include a detailed GHG emissions reduction
roadmap, enhancing transparency and tracking our progress
towards reducing our emissions and environmental impact.
We remain committed to doing our part to support our planet
and the communities in which we operate across a variety of
initiatives.
Our talented people are at the heart of our success. We
continue to uphold our commitment to providing a safe, diverse
and inclusive environment where our people feel valued,
supported and engaged. This year we have continued to invest
in our most important asset – our people – through leadership
and development programmes, recognition initiatives and a
broad range of employee benefits to help our people, and our
business, thrive.
From a governance perspective, a key focus in my first year
as Chair has been Board renewal and succession planning.
This year, we welcomed Tonet Rivera and Lain Jager to the
Board, bringing deep expertise in global IMF supply chain
and international agribusiness leadership. More recently, and
subsequent to our financial year end, the Board appointed
Grant Dempsey who brings expertise in strategic and financial
leadership and will join the Board effective 1 September 2025.
During the year we also farewelled Directors Warwick Every-
Burns and David Wang, whose contributions have been
invaluable and on behalf of the Board, I extend our sincere
thanks to them both. These changes reflect our commitment to
ensuring the Board has the capabilities and diverse perspectives
needed to support the Company’s strategic ambitions into the
future as part of a considered evolution of Board composition.
Throughout the year, our teams across Australia, China,
New Zealand and the USA have continued to deliver exceptional
results. Their passion, professionalism and alignment with our
BOLD values are the foundation of our success. I would also like
to acknowledge our CEO, David Bortolussi, and his leadership
team for their unwavering focus and execution.
As we look ahead, the Board remains excited about the
opportunities before us. With a strong brand, clear strategy,
talented team and strong financial position, we are well placed
to pursue sustainable growth to create and deliver long-
term value to our shareholders over time. Thank you for your
continued support and investment in The a2 Milk Company.
Pip Greenwood
Chair
17 August 2025
CHAIR’S
LETTER
3

CEO’s year
in review
Strategic focus and
disciplined execution
have driven another
strong result
DAVID
BORTOLUSSI
Group financial performance
1, 2, 3
The a2 Milk Company (“the Company”, “a2MC”) announces its financial results for the 12 months ended 30 June 2025. Key results
are as follows:
$NZ million
FY25 FY24 Variance (%)
Group Revenue1,902.01,675.513.5%
EBITDA
4
274.3234.317.1%
Net profit after tax (NPAT)
(Attributable to owners of the Company)202.916 7.621.1%
Basic earnings per share (cents)28.023.220.9%
Net cash
5
1,061.2968.99.5%
Total dividend (NZ cents per share)20.0–n/a
Revenue grew 13.5% to $1,902.0 million, driven by continued growth in the China & Other Asia segment up 13.9%, supported by the
USA segment up 22.5% and Mataura Valley Milk (MVM) up 42.7%, with the ANZ segment flat.
Total IMF sales grew 9.9% led by English label which was up 17.2% driven by performance within the CBEC and O2O
6
channels
(up 24.9%) supported by English label market growth. China label sales were 3.3% higher, with the Company achieving record
China label market share in FY25, despite ongoing market decline and the impact of supply constraints experienced in 1Q25
and 4Q25.
1 All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ending 30 June 2025.
2 All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3 All comparisons are with the 12 months ended 30 June 2024 (FY24), unless otherwise stated.
4 EBITDA is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that in combination
with GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business.
A reconciliation of EBITDA to net profit after tax is shown in the Company’s 2025 Annual results and Supply Chain Transformation update (slide 60)
dated 18 August 2025.
5 Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6 Cross-border e-Commerce and Offline-to-Online channels.
4

$346m
Liquid milk 14.4%
$ 1 , 2 74 m
Infant nutrition 9.9%
$135m
Other Nutritionals 23.1%
* Revenue excluding intercompany sales.
$1,902m
Revenue 13.5%
$203m
NPAT attributable to
owners of the Company
21.1%
$ 2 74 m
EBITDA 1 7.1 %
28.0c
Earnings per share
20.9%
$201m
Operating cash flow
$1,061m
Net cash
Group
performance
Product segment
revenue
Operating segment revenue
$1,302m
China and Other
Asia 13.9%
$316m
Australia and
New Zealand 0.4%
$139m
USA 22.5%
$145m*
Mataura Valley Milk
42.7%
CEO’S YEAR
IN REVIEW
5

CEO’s year in review (continued)
Liquid milk sales grew 14.4%, with ANZ up 9.9% and USA up
22.1% driven by growth in the core portfolio and from recent
product innovation. Other Nutritional sales continued to grow,
up 23.1%, supported by new kids and seniors fortified milk
powder products that were launched during the year. The
Other Nutritionals portfolio consists of non-IMF powdered
a2 Milk™ products and China & Other Asia liquid milk products.
Ingredients (MVM) sales grew 41.9% mainly due to higher GDT
7

market pricing and increased milk volumes processed.
Gross margin percentage
8
of 46.1% was up 0.3ppts driven by
lower IMF ingredients costs, favourable FX and cycling the net
impact of MVM coal-fired boiler accelerated depreciation that
was FY24 weighted (FY25: $5 million, FY24: $10 million), partly
offset by the cost of airfreight used to mitigate IMF supply
constraints net of Synlait support.
Distribution costs were flat as a percentage of net sales with
higher ANZ rates due to distribution mix offset by improvement
in USA freight rates.
Marketing investment increased 13.7% to $318.4 million,
maintaining a similar re-investment rate to prior year of
~17% of revenue, and was primarily focused on China related
activities including a2 Milk™ superiority campaigns, new user
recruitment in the Year of the Dragon, and the launches of
a2 Genesis™ infant formula and new kids and seniors fortified
milk powder products. China marketing continues to make-up
the vast majority of the Group’s investment, accounting for
over 90% of total FY25 marketing expenses.
7 Global Dairy Trade.
8 Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.
Administrative and other expenses (SG&A) declined as a
percentage of sales, down 0.7ppts to 13.4%, reflecting improved
operating leverage. In absolute terms, SG&A increased by 7.6%
to $254.2 million primarily due to investment in capability
development, particularly in supply chain functions and in
China, and increased costs related to scientific research and
innovation, partially offset by reduced FX losses and cost
reduction initiatives.
EBITDA increased 17.1% to $274.3 million, with EBITDA %
margin slightly higher at 14.4% (up 0.4ppts), in line with
guidance. EBITDA % margins improved from 1H25 to 2H25, with
2H25 EBITDA % margin of 15.4% up 2.1 ppts on 1H25 (13.3%).
Depreciation and amortisation decreased $5.9 million to
$26.3 million due to cycling higher accelerated depreciation
of the MVM coal-fired boiler in FY24, net interest income
increased to $41.2 million reflecting higher cash balances and
the effective tax rate improved to 33.6% (FY24: 35.4%) due to
reduced MVM and US tax losses.
NPAT was $202.9 million, an increase of 21.1%, with basic
earnings per share of 28.0 cents, up 20.9%.

“ We continued to grow market share
in China to record levels, elevating the
Company to a top-4 brand position in
the world’s largest infant milk formula
market.”
6

The balance sheet further strengthened during the year
with closing net cash of $1,061.2 million, up $92.2 million
on 30 June 2024. Operating cash inflows (excluding interest
and tax) were $259.3 million, representing operating cash
conversion of 95%
9
in line with guidance but lower than FY24
(126%). FY25 cash conversion was impacted by the settlement
of Synlait FY24 payments withheld in accordance with
contractual arrangements and a reduction in Synlait purchase
order deposit payment terms which commenced in FY25.
Inventory of $139.1 million was down 22.6% on 30 June 2024
driven by lower IMF inventory levels that were impacted by
sharp growth in early stage product demand compounded
by Synlait supply constraints caused by 4Q25 manufacturing
challenges. To mitigate the impact on consumer sales and
new user recruitment, the Company prioritised distributor
and retailer stock levels, and utilised airfreight to expedite
deliveries. The Company has been actively collaborating with
Synlait to address its manufacturing challenges taking steps to
reduce the likelihood of recurrence in the future to ensure that
a2MC’s own inventory returns to target levels.
Regional and product
performance
1. China & Other Asia
The China IMF market showed signs of stabilisation in FY25,
with the rate of value decline moderating to -3.2%
10
by
year-end. While the overall market declined, the Stage 1 and
Stage 2 categories grew 10% and 3%, respectively. The strong
performance of early stages was due to the increased number
of newborns which grew by 5.8% to 9.54 million during CY24
11
,
the first year of growth since CY16. The CY24 growth in birth
rates reflected a combination of the realisation of delayed
births from COVID years and the “Year of the Dragon” effect,
however, it is anticipated that the birth rate will decline in CY25
aligned with longer-term trends in the childbearing population
and fertility rate.
Subsequent to 30 June 2025, the China Central Government
announced subsidies to support the costs of childcare provided
by central and local authorities. A positive initiative for families
and the industry, however it is too early to assess the potential
impact.
9 Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
10 Kantar Worldpanel 0–6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). Value decline of -13.4% in 1H24 and -6.8%
in 2H24. Kantar had two rounds of panel update in March and June 2025 and restated historical data.
11 China National Bureau of Statistics.
12 Kantar Worldpanel 0–6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities), MAT.
13 Nielsen MBS retail measurement service: mother and baby stores only retail value share. MAT.
14 Smart Path China IMF online market tracking: for DOL only retail value share, MAT.
15 Kantar Worldpanel 0–6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities), MAT.
16 Nielsen MBS retail measurement service: mother and baby stores only retail value share. MAT.
17 Smart Path China IMF online market tracking: for DOL only retail value share, MAT.
Despite the overall China IMF market decline, a2MC’s China &
Other Asia segment revenue grew by 13.9% to $1,302.0 million
driven by IMF sales growth of 12.4%, with segment EBITDA
up 14.6% to $332.4 million. a2MC’s China IMF market share
continued to reach record levels with overall market share
increasing to 8.0% from 7.1% in FY24
12
, with the brand achieving
a top-4 position in the world’s largest IMF market – a major
milestone for the Company which launched its first IMF product
only 12 years ago. The brand’s continued growth in China was
supported by increased marketing investment and improved
brand health metrics. In terms of IMF channel performance,
English label IMF CBEC and O2O channels were a stand-out
performer, growing 24.9%.
China label IMF
China label IMF sales reached $632.5 million, representing an
increase of 3.3%. This was a positive outcome, particularly in
the context of a 5.6% decline in the overall China label market,
and to a lesser extent, supply constraints that impacted stock
availability in 1Q25 and 4Q25. The Company delivered early
stage sales growth significantly ahead of the market, driven by
effective new user recruitment initiatives, resulting in record
Stage 1 market share in the MBS channel of 4.0% (FY24: 3.1%)
13

and in the DOL channel of 5.8% (FY24: 5.5%)
14
. These efforts
contributed to a record high China label IMF market share of
5.5%
15
, underscoring the brand’s growing consumer demand
and competitive strength.
In terms of a2MC’s channel performance, the significant gains
in early stage new users drove market share growth across
both MBS and DOL channels. The Company’s total MBS market
share increased 0.2ppts to 3.7%, with market share in BCD
cities increasing to 3.2% in line with the Company’s strategic
focus, while share in Key&A cities recovered to 7.0%
16
. Online
channels continued their upward momentum, reflecting
strong consumer demand for convenience and accessibility,
with a2MC’s DOL market share reaching a new high of 4.2%
17
,
up 0.3ppts on FY24.
CEO’S YEAR
IN2REVIEW
7

CEO’s year in review (continued)
English label IMF
18

English label IMF positive sales momentum continued with
English label sales in the China & Other Asia segment of
$559.1 million up 24.9%. a2MC’s English label growth continues
to be supported by overall market expansion and growth in
combined CBEC and O2O channels. The English label market
grew by 11.9% in FY25 driven by higher volume and continued
premiumisation, gaining share within total IMF to 19% from
a low of 14% in FY22 but below pre COVID-19 levels of 23% in
FY20. While English label represents a smaller proportion of
the IMF market, a2MC is well positioned to benefit from this
segment given its position as the second largest brand in the
English label market with just under 20% market share
19
.
The rapid growth of HMO and specialty product segments
continues to be a growth driver of the English label market with
18 English label IMF includes sales via CBEC, O2O, Emerging Markets and Hong Kong Resellers.
19 Kantar Worldpanel 0–6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities), MAT.
20 Human milk oligosaccharides.
consumers adopting English label products due to ingredients
and specialised formulations not widely available in China
label (such as those including various HMOs
20
). To capitalise
on this growing market opportunity, the Company launched
its most premium English label IMF product, a2 Genesis™ into
the Hong Kong CBEC channel in January 2025 followed by a
major marketing campaign during 4Q25 to build awareness.
Early indicators suggest the product has been well received by
consumers, achieving positive reviews, encouraging repurchase
rates and strong month on month sales growth off a low base.
In addition, the Company continued to make progress
against its emerging markets strategy expanding its reach of
English label products into Vietnam through the launch of
a2 Platinum™ in 1H25 and a2 Gentle Gold™ in 2H25 with a focus
on building brand awareness and expanding distribution across
MBS stores.
8

Other Nutritional products
Other Nutritionals revenue in the China & Other Asia segment
was up 33.1% to $110.3 million. The Company’s focus on growth
and innovation resulted in the launch of three new locally
manufactured China label fortified milk powder products in
1H25 targeting the seniors segment addressing top senior
health needs: immunity, bone, gut and heart health. The Other
Nutritionals portfolio was further expanded in 2H25 with the
launch of a new kids fortified milk powder product designed
for kids aged 3+, supporting immunity, eye health and brain
development with innovative packaging. The newly launched
seniors and kids milk powder products are resonating well
with consumers, supported by a2MC’s strong brand equity and
showing early signs of positive uptake.
2. Australia and New Zealand
Australia and New Zealand (ANZ) segment reported revenue
of $316.0 million and EBITDA of $57.5 million, down 0.4%
and 8.7% respectively. The result was driven by growth in the
Australian liquid milk business (up 9.9%) which offset ongoing
Daigou channel decline.
English label IMF and Other Nutritionals products
a2MC IMF reseller and retail sales decreased 18.1% to
$80.6 million versus FY24, consistent with wider channel
declines, however showed signs of stabilisation with 2H25 sales
in line with 1H25. English label IMF focus remains on the CBEC
and O2O channels, however the Company continues to support
the Daigou channel through marketing support and trade
activations.
21 Source: Circana (includes major retailers, pharmacy), MAT June 2025 vs. MAT June 2024.
22 IRI Australian Grocery Weighted Scan, MAT to 22 June 2025 vs. MAT to 22 June 2024.
23 IRI Australian Grocery Weighted Scan, MAT to 22 June 2025 vs. MAT to 22 June 2024.
24 a2MC brand health tracking June 2025.
a2 Gentle Gold™, which launched during FY24 has continued to
perform well in market with a2 Gentle Gold™ driving a year-
on-year increase of 19% in a2MC’s Total Australian Retail Sales
Value
21
.
Consistent with Daigou channel declines, revenue for Other
Nutritionals was down 7.5% to $24.8 million, with growth
realised through channels in the China & Other Asia segment.
Liquid milk
Australian liquid milk sales were up 9.9% to $209.0 million,
led by a2 Milk™ Lactose Free and growth in the core a2 Milk™
range. This strong performance was achieved in a challenging
market, with the liquid milk category declining 0.7%
22
driven by
ongoing elevated competitor promotional activity.
a2MC’s liquid milk market value share grew 0.8ppts to 11.2%,
primarily driven by a2 Milk™ Lactose Free which increased
share of the Australian lactose free market from 12.7%
to 18.5%
23
. a2MC’s liquid milk brand health continues to
strengthen, with brand health advocacy (NPS) at its highest
levels on record
24
.
“ Our Liquid Milk growth
was outstanding, up 14%
in ANZ and USA, and
Other Nutritionals grew
by an impressive 23% in
China.”
CEO’S YEAR
IN REVIEW
9

CEO’s year in review (continued)
“ We accelerated innovation by
launching a range of new products
spanning the infants, kids and
seniors nutrition markets.”
3. USA
USA grew revenue by 22.5% to $139.3 million and continued
to make progress towards profitability, with EBITDA losses
reduced to $9.3 million (FY24: $15.5 million).
Revenue growth was driven by ongoing strength in the core
a2 Milk™ range plus growth in a2 Milk™ Grassfed products and
the Club channel. a2MC’s market value share in the premium
milk category for the Grocery channel increased to 2.2%
(up from 2.1%)
25
. IMF sales in FY25 under the current US FDA
Enforcement Discretion were not material.
Profitability improvement was achieved through revenue
growth and a continued focus on optimising trade spend, and
input and distribution costs.
The Company’s New Infant Formula Notification (NIFN)
submission to US FDA for long-term IMF approval is under
review.
4. Mataura Valley Milk
The FY25 year was characterised by higher GDT market pricing
plus higher milk volumes processed through the MVM site.
As a result, revenue of $144.7 million was $43.3 million higher
than prior year, with EBITDA losses improving to $17.4 million
(FY24: $20.9 million). EBITDA loss improvement reflects
higher internal revenue, driven by timing impacts and growth
in the Group’s Other Nutritionals range which utilise MVM milk
powders, and disciplined cost management.
25 SPINS data for the Grocery channel, MAT.
Innovation and supply chain
transformation
In FY25, the Company maintained its strong focus on
innovation as a key growth driver, supported by strategic
partnerships and ongoing transformation across its supply
chain. A range of new products were launched targeting
strategic growth opportunities, all formulated with A1 protein
free milk powders produced at a2MC’s MVM facility in
New Zealand.
The Company enhanced its English label IMF partnership
with Yashili New Zealand with the development, manufacture
and launch of a new English label IMF product featuring an
advanced HMO formulation. The launch of a2 Genesis™ was
an important innovation for the Company, targeted at the
growing HMO product segment and benefiting from price
premiumisation in the English label market.
This year also marked the start of local production for the first
time in China with seniors fortified milk powders. Three new
products were launched in collaboration with Shanghai Howell
Nutrition Dairy Co., Ltd., enhancing responsiveness to market
needs and strengthening local relevance.
Supply chain optimisation also continued, with the transition
of manufacturing for a2 Milk™ powder pouch to NZ Nutritional
Wellness. This move has improved production efficiency,
enhanced capability, and strengthened traceability.
The Company also commenced the commissioning of an
upgrade of its Kyabram (Australia) fresh milk facility in
partnership with KyValley Dairy to increase capacity which is
close to completion.
10

Sustainability
The Company continued making planet-positive progress. In
FY25, the Company developed a detailed emissions reduction
roadmap and climate transition plan, providing a structured
framework to track progress toward its 2040 net zero GHG
emissions target.
The Company reduced Scope 1 emissions by 97% in FY25,
led by the MVM boiler conversion completed in FY24. This
transition has resulted in MVM now operating on 100% certified
renewable energy
26
.
At the farm level, a2MC continued to invest in sustainable
practices through the a2™ Farm Sustainability Fund, supporting
19 new projects with a total investment of NZ$575,000. These
initiatives are closely aligned with the Company’s broader
sustainability goals and reflect its commitment to supporting
its supplier base in the transition to more sustainable farming.
Packaging sustainability remained a priority, with further
execution against the Company’s sustainable packaging action
plan. In FY25, a2MC achieved 98% recyclable packaging placed
on market (by weight) and attained ‘Beyond Best Practice’
status in Australian sustainable packaging performance
27
,
demonstrating leadership in circular packaging solutions.
The Company also maintained its support for AgriZero
NZ
, a
collaborative effort between the New Zealand Government and
leading agribusinesses aimed at reducing on-farm biogenic
methane and nitrous oxide emissions.
Dividends
In November 2024, the Company announced the establishment
of a dividend policy for the first time in company history. The
dividend policy targets a payout ratio range of between 60%
and 80% of net profit after tax excluding non-recurring and
other items (normalised NPAT). Subsequently, the Company
declared its first interim dividend of 8.5 cents per share in
February 2025, which was paid to shareholders in April 2025.
This represented a payout ratio of ~67% of NPAT, equating to
approximately $61.5 million, and was fully imputed and fully
franked.
As part of the Company’s FY25 results, a final dividend of
11.5 cents per share fully franked and ~78% imputed has been
declared, representing a payout ratio of ~75%, equating to
approximately $83.4 million, to be paid to shareholders on
3 October 2025. Total dividends declared by the Company for
FY25 are 20.0 cents per share, representing a total payout ratio
of ~71% which equates to approximately $145m being returned
to shareholders.
26 MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses
on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have
been independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel
sources, due to the nature of the electricity transmission and distribution system.
27 Source: a2MC 2025 Australian Packaging Covenant Organisation (APCO) Annual Report and Action Plan.
On an ongoing basis, dividends are expected to be declared on
a semi-annual basis in February and August each year at a level
consistent with the payout ratio range. In determining future
dividends, a number of factors will be taken into consideration,
including market conditions, current and future earnings,
cash flows, capital requirements and the Company’s financial
position.
The Company intends to impute and frank dividends to the
maximum extent possible subject to available credits, noting
that imputation credits are limited.
Supply chain transformation
update
In addition to the Company’s FY25 results announced today,
the Company simultaneously announced the acquisition of
Yashili New Zealand (YNZ) a world-class fully integrated
nutritional manufacturing facility in Pokeno with two existing
China Label product registrations. Concurrently, and following
the decision to acquire YNZ, a2MC has also announced the
divestment of MVM to optimise its asset footprint, capacity
utilisation and financial performance. These transactions
mark a major milestone in the Company’s supply chain
transformation. The supply chain transformation initiatives
announced today are expected to deliver substantial benefits
to a2MC shareholders supported by a clear strategic rationale.
See the Company’s FY25 results and Supply Chain
Transformation update presentation and media release dated
18 August 2025 for full details.

CEO’S YEAR
IN REVIEW
11

CEO’s year in review (continued)
FY26 Outlook
a2MC will continue executing its growth strategy in FY26,
with an emphasis on capturing its full potential in the China
market whilst expanding into adjacent categories and new
markets. With respect to the transactions announced today,
the Company will be mainly focused on securing regulatory
approvals, progressing the future insourcing of a2 Platinum™
and commencing a multi-year capital investment programme.
The following outlook is prepared on the basis that both
transactions complete as expected and excludes any potential
special dividend payment.
On a continuing operations
28
basis, the Company expects the
following for FY26:
–Revenue growth of high single-digit percent versus
FY25 continuing
29

–EBITDA % margin to be approximately 15% to 16%
–Depreciation and amortisation to be approximately
$20 million to $24 million
–Interest income to be lower due to lower market rates
and net transaction cash outflows
–NPAT similar to FY25 reported
30
–Cash conversion of approximately 80% to 90%
–Capital expenditure of approximately $50 million to
$70 million
MVM will be treated as discontinued operations, including
operating losses prior to completion of the divestment and
an expected loss on sale of approximately $130 million.
28 Continuing operations represents the a2MC Group excluding MVM and including YNZ from the expected completion date of 1 September 2025.
Discontinued operations comprises of MVM.
29 FY25 continuing operations revenue was $1,757 million.
30 FY25 reported NPAT was $203 million.
Key risks
A range of risks could materially impact expected revenue and
earnings outcomes including, but are not limited to, trading
upside and downside, challenging macroeconomic conditions,
China IMF category dynamics and competitive intensity,
product and supply related risks, cross border trade, foreign
exchange movements, changes in interest rates, farmgate milk
pricing and other commodity prices, and regulatory risk.
a2MC’s full FY26 outlook statement is outlined on slide 55 in
the Company’s FY25 Results and Supply Chain Transformation
update investor presentation dated 18 August 2025.
Capital management update
Once completed, the transactions announced today will help
clarify the Company’s future capital needs. As a result, the
Board intends to declare a $300 million special dividend, fully
franked and unimputed, subject to the Company receiving
regulatory approvals in connection with the two existing
China label registrations for use under the a2MC brand and
completion of the MVM divestment, which are both expected
to be achieved in the next twelve months. Further detail on the
dividend will be provided once these steps are complete.
The Board also reaffirmed the Company’s ordinary dividend
policy of 60–80% payout of normalised NPAT, and confirmed
its intention to maintain a strong and flexible balance sheet,
continue to assess growth opportunities and capital needs,
manage risk and consider further shareholder returns.
David Bortolussi
Managing Director and Chief Executive Officer
17 August 2025
“The acquisition of the Pokeno
manufacturing facility and related
products represent a pivotal moment for
the Company and the execution of our
supply chain transformation strategy.”
12

CEO’S YEAR
IN REVIEW
13

Building a
sustainable
growth business
14

Who we are
The a2 Milk Company is a dairy nutritionals company, fuelled by its purpose
to pioneer the future of Dairy for good.
The Company was founded in 2000 in New Zealand by
scientist Dr Corran (Corrie) McLachlan and his business
partner, Howard Paterson, who recognised that not all milk
is the same. Dr McLachlan joined Sir Robert (Bob) Elliot
– who had earlier discovered that proteins in milk affect
people differently – to pioneer research to understand these
differences better.
Originally all cows’ milk contained only A2 beta-casein
protein, but over many years the A1 protein developed in
some cows’ milk. Results of several published peer-reviewed
human clinical trials have shown that A1 protein can cause
digestive issues for some people. A scientific and proprietary
way to identify cows that naturally produce A1 protein free
milk was also discovered.
a2 Milk™ is sourced from specially selected cows that
naturally produce milk containing only A2-type beta-casein
protein and no A1. This means that while most ordinary milk
contains both A1 and A2-type proteins, a2 Milk™ is naturally
A1 protein free.
a2MC continues to pioneer science and research to further
understand the potential benefits of A1 protein free milk, and
focuses its sales and marketing efforts to take a2 Milk™ to
the world. With a growing portfolio of a2 Milk™ products, the
Company is dedicated to enabling more consumers to enjoy its
unique digestive and other potential health benefits.
The Company’s current product portfolio includes fresh milk,
ultra-heat treatment (UHT) milk, extended shelf life (ESL)
milk, infant milk formula (IMF), plain milk powders (including
instant whole and skim milk powder), fortified milk powders
and other dairy nutritional products, providing high quality
nutrition for infants, children, adults, pregnant women
and seniors. The Company primarily operates in the China,
Australia, New Zealand, Vietnam, South Korea and North
America markets.
The Company’s primary business activities by region are:
–China and Other Asia: Sales of China label and English
label IMF, plain and fortified milk powders, liquid milk and
Other Nutritional products in offline stores and domestic
and cross-border e-commerce channels.
–Australia and New Zealand: Sales of English label IMF,
plain and fortified milk powders for children, adults and
pregnant women through reseller and retail channels, and
production and sales of liquid milk across retail channels
in Australia and New Zealand.
–North America: Sales of liquid milk and IMF in the
United States of America and liquid milk in Canada.
–Mataura Valley Milk: Production of nutritional and
ingredients products for a2MC and other external
customers in overseas markets.
What makes us unique
The a2 Milk Company’s purpose is to pioneer the future of Dairy for good with
a vision to create an A1-free world where Dairy nourishes all people and our planet.
Our B O L D values
Bold passionOwnership and agilityLeading constructivelyDisruptive thinking
We believe in the power
of the a2™ proposition.
We are pioneers and always
find a way to make it happen.
We are passionate about our
consumers and customers.
We align on outcomes and
prioritise initiatives.
We are effective in teams and
do what we say we will do.
We are flexible and act with
a sense of urgency.
We are proud of what we do
and how we do it.
We encourage and develop
ourselves and others.
We are honest, direct and
respectful in our interactions.
We think big, creatively and logically
to maximise impact.
We are better together and unlock the
power of the collective.
We challenge existing ways of
working to achieve better solutions.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
15

2001
• A1 protein free
hypothesis first
published
• A1 protein
free gene test
developed
2004
• A2 Corporation
listed on the
alternative market
of the NZX
2014
• Rebranded to
‘The a2 Milk
Company’
• Annual revenue
exceeds
NZ$100 million
• Smeaton Grange milk
processing facility
commissioned in
Australia
• Supply agreement
with Synlait signed
• Strategic partnership
with China State
Farm Agribusiness
signed
2012
A remarkable
journey
2000
• A2 Corporation
founded by Dr Corrie
McLachlan and
Howard Paterson
2011
• Transferred listing
to NZX Main Board
• a2 Platinum™
launched in ANZ
and China
• a2 Milk™ launched
in China
20132003
• a2 Milk™ launched
in Australia and
New Zealand
• IMF overtakes
liquid milk as
primary profit
driver
• Publication of
first clinical
trial in China
2016
2015
• a2MC listed on
ASX
• a2 Milk™
launched in USA
• a2
至初™ China
label IMF launched
16

2025 marked 25 years since The a2 Milk Company (formerly A2 Corporation)
was incorporated on 17 February 2000. This is an opportunity to reflect on
the incredible journey and growth of this business and brand over the past
25 years. It is fitting that the Company celebrated this milestone with several
notable achievements including declaring its first dividend and delivering
record sales of $1.9 billion. Cheers to the next 25 years!
2018
• South Korea
distribution
agreement
with Yuhan
Corporation
2019
• Acquisition of
75% of Mataura
Valley Milk
2021
• a2 Gentle Gold™
launched in
multiple markets
• Initial launch
of a2 Platinum™

in US market
• Vietnam
distribution
agreement with
Livewell
2022
• a2 Genesis™
launched
in multiple
markets
• First dividend
paid to
shareholders
2024
• Annual revenue
exceeds
NZ$1 billion
2025
• a2 Milk™
Lactose Free
launched in
Australia
BUILDING A SUSTAINABLE
GROWTH BUSINESS
17

Product portfolio
What we do
Over the last 25 years, The a2 Milk Company has built a strong presence across key markets.
Notably, the a2™ brand ranks amongst the top-4 IMF brands in China and is the leading
branded milk in Australia. This is thanks to our talented and dedicated global team and the
support of our strategic partners.
China and Other Asia
Australia and New Zealand
North America
Key statistics
Revenue
$1,302m
EBITDA
$332m
Estimated market size
NZ$28 billion China IMF market
1,2

NZ$1 billion Vietnam IMF market
3,4
Product mix
(% share of a2MC sales)
IMF 62.7%
Other Nutritionals 5.8%
Supply chain
China State Farm importation agent
and master distributor
Products sourced from New Zealand
and Australia, except for seniors powder
which are produced in China with
New Zealand milk powders
Our people
158 (headcount)
Key statistics
Revenue
$461m
EBITDA
$42m
Estimated market size
NZ$2.5 billion dairy milk market
5,6
NZ$0.4 billion Australia IMF market
5,7

Product mix
(% share of a2MC sales)
Liquid milk 11.0%
IMF 4.2%
Other Nutritionals 1.3%
Ingredients 7.6%
Supply chain
Australia (Liquid Milk)
– Smeaton Grange
(a2MC)
– Kyabram (a2MC)
– 14 farmer suppliers
New Zealand (Nutritionals)
– 75% interest in Mataura Valley Milk
– 19.8% interest in Synlait Milk
– 197 farmer suppliers
Our people
322 (headcount)
Key statistics
Revenue
$139m
EBITDA
$(9)m
Estimated market size
NZ$5 billion premium liquid milk
segment
3,8

NZ$10 billion USA IMF market
3,9
Product mix
(% share of a2MC sales)
Liquid milk 7.2%
IMF 0.1%
Supply chain
3 third-party processing relationships
9 farmer suppliers
IMF sourced from New Zealand
Our people
26 (headcount)

Product portfolio
Strategic and distribution partners
Strategic and distribution partners
Strategic and distribution partners
Product portfolio
Licensee fresh
milk Canada
Master distributor
(China label)
Distributor
South Korea
MVM
co-owner
Production
partner
Production
partner
Production
partner
Production
partner
Licensee
fresh milk
New Zealand
Distributor
China, O2O
Distributor
Vietnam
Production
partner
Subsidiary
of Mengniu
Subsidiary
of Lactalis
18

Strategic partnerships and supply chain investments
The Company has strong strategic partnerships that provide access to manufacturing capability, market access support,
distribution and logistics services, and consumer and regulatory insights. Each partner brings different strengths that enable
the Company to execute against its strategic objectives.
In particular, its strategic partnerships with China National Agriculture Development Group, China State Farm Agribusiness and
China Animal Husbandry Group provide invaluable insights and assistance in understanding the trade and regulatory environment
in China. a2MC also has supply and other relationships with Synlait, Yashili and New Zealand New Milk.
1 Assumes RMB to NZD exchange rate of 4.5:1.
2 Source: FY25 Market size based on a2MC internal estimation approach, which may
be adjusted year-to-year, and which may result in market size not being directly
comparable across periods.
3 Assumes USD to NZD exchange rate of 1:1.7.
4 Source: Globaldata.
5 Assumes AUD to NZD exchange rate of 1:1.10.
6 Source: Circana IRI Australia Grocery Weighted FY25.
7 Source: Circana IRI Australia Grocery Pharmacy Scan FY25.
8 Source: USA Food FY25 retail milk sales in the Premium Segment.
9 Source: Globaldata for IMF sales.
China and Other Asia: Strategic and distribution partners
Australia and New Zealand: Strategic and supply chain partners
China National Agriculture Development Group Co., Ltd.
China National Agriculture Development Group Co., Ltd
(CNADC) is a leading State-Owned Enterprise (SOE) and offers
comprehensive agricultural services in mainland China. CNADC
is responsible for meeting China’s agricultural needs with
17 wholly-owned or share-controlled subsidiaries, and three
publicly listed companies. CNADC’s knowledge of the Chinese
market and its ownership of China State Farm Agribusiness and
China Animal Husbandry Group positions it as a strong strategic
partner for a2MC for the long term.
China State Farm Agribusiness
China State Farm Agribusiness Holding Shanghai Co., Ltd (CSFA)
is an SOE and became the Company’s exclusive logistics and
distribution partner for IMF products in China in 2013.
CSFA is the exclusive import agent for the Company’s China label
IMF products with 107 active IMF distributors and approximately
126 UHT and milk powder distributors throughout the country.
The Company’s agreement with CSFA is for a term of five years
from 1 October 2022 in addition to a longer-term strategic co-
operation agreement. CSFA’s China expertise is of significant
value to a2MC in managing its operations effectively.
China Animal Husbandry Group
China Animal Husbandry Group (CAHG) is an SOE and became a
strategic partner when the Company purchased 75% of MVM in
2021. CAHG holds 25% of MVM and is also owned by CNADC. The
partnership with CAHG provides the opportunity to build and
enhance the Company’s relationships with key partners in China.
Synlait
Synlait Milk Limited (Synlait) has produced IMF products for
a2MC since 2013 and sources its milk from the Canterbury region
in New Zealand. Synlait currently produces a2 Platinum™ and
a2
至初 ™ for a2MC. In addition to its supply arrangements, a2MC
holds a 19.8% equity interest in Synlait, making it the second-
largest shareholder. Synlait’s largest shareholder is Bright Dairy,
a multinational food and beverages manufacturing company
headquartered in China. Bright currently has a 65.3% interest in
Synlait and is its controlling shareholder.
Mataura Valley Milk
Mataura Valley Milk (MVM) is a purpose-built nutritionals facility
and sources milk from Southland in New Zealand. a2MC acquired
a 75% interest in MVM in July 2021. The acquisition provided a2MC
with the opportunity to insource certain volumes from Synlait, to
prioritise innovation at an owned facility, achieve additional China
label registrations over time and capture vertical manufacturing
margins.
Yashili New Zealand
Yashili New Zealand Dairy Co., Limited (Yashili) a subsidiary of
Mengniu, is an integrated nutritional facility located in the North
Island of New Zealand. Using milk powders supplied by MVM, it
currently produces a2 Genesis™ and a2 Gentle Gold™ for a2MC.
Fonterra Co-operative Group Limited
The Company has a strategic relationship with Fonterra
Co-operative Group Limited, and the two organisations
continue to work closely on opportunities in New Zealand or
other markets that could deliver mutual benefits.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
19

How we create value
Our people
Through a purpose driven culture underpinned by our values, we aim
to create an environment that provides our people with opportunities
to thrive. Our success is the result of our diverse, skilled and engaged
team, aligned and focused to deliver on our purpose and strategy.
We are committed to the wellbeing and safety of our people and are
continuing to develop systems and processes to identify, control,
report, investigate and monitor health and safety risks and actions
across the business.
Our brand
Our trusted brand, our proprietary know-how and our A1 and
A2-type protein expertise are our most valuable assets. We are
committed to maintaining and growing these assets with appropriate
investment. Through ongoing science and research programmes, we
are deepening our expertise and advancing global understanding
of the potential health benefits of a2 Milk™. Focused investment in
communicating the a2 Milk™ difference continues to build consumer
awareness, consideration and brand equity across the markets in
which we operate.
Our environment
Access to natural resources and a thriving agricultural sector that
supports healthy ecosystems is fundamental to our business. We
recognise that climate change and pressures on agricultural and
food systems present a systemic challenge for our world – and we
are committed to finding unique and high impact solutions across
our value chain to help address these challenges. Appropriately
meeting this challenge will enable us to continue providing premium
a2 Milk™ based products to our consumers and long-term value to
our shareholders.
Our supply chain
Building on our in-house fresh milk and dairy nutritionals supply chain
capability has been a significant focus over the past 12 months. We
continue to complement this internal expertise by working closely
with our suppliers and farming community to maintain a reliable and
responsible sourcing and manufacturing supply chain. We believe this
combination of internal capability and constructive partnerships is
critical to our long-term success.
Our communities
We strive to make a difference by supporting a range of community
initiatives in our key regions of New Zealand, Australia, China
and the USA. With a focus on proactive wellness, we partner with
organisations that are helping communities to thrive by creating
a brighter future for children, families and the Company’s farming
communities.
Our finances
We carefully balance investment in our supply chain and distribution
through both strategic partnerships and direct ownership. Combined
with the growth of our premium products, this approach has enabled
us to build a strong and robust balance sheet; which, guided by our
capital management framework, provides financial capital for us to
deploy in the pursuit of our strategic objectives.
Purpose
We pioneer
the future of
Dairy for good
Strategic priorities
– Invest in people and
planet leadership
– Capture full potential in China IMF
– Ramp up product innovation
– Transform our supply chain
– Accelerate path to profitability
in USA and MVM
Our growth
strategy
20

Vision
An A1-free world
where Dairy
nourishes all people
and our planet
Values
– Bold passion
– Ownership and agility
– Leading constructively
– Disruptive thinking
Our stakeholder
groups
People
Create a safe, diverse, inclusive
and engaging place for our
people to thrive, support our
farmers and contribute to
our communities.
Page 28
Planet
Protect our planet and cows,
rethink packaging, achieve
net zero and become nature
positive.
Page 38
Consumers
Bring the unique benefits of
pure and natural a2 Milk™ to as
many consumers as possible.
Page 48
Shareholders
Create long-term, enduring
value for shareholders
and maintain a trusted,
transparent relationship.
Page 55
BUILDING A SUSTAINABLE
GROWTH BUSINESS
21

Our growth strategy
The a2 Milk Company is driven by a clear
and consistent growth strategy, focused
on unlocking value across market, brand,
product and distribution opportunities.
The Company has clear goals across four stakeholder groups
– People, Planet, Consumers and Shareholders – to ensure
that, while delivering its commercial ambitions, it is creating
an environment for its teams to thrive, actively working to
achieve its sustainability priorities and executing in a way that
further develops a trusted and transparent relationship with
all its stakeholders.
The Company’s growth strategy centres on five key priorities:
–Invest in people and planet leadership: Critical to the
Company achieving its commercial objectives is ensuring
it has thriving, high performing teams to execute its
strategy. The Company has continued to invest in people
leadership, including through its constructive leadership
programmes. In addition to its people, the Company has
elevated investment in planet leadership to sit amongst
its top strategic priorities, focusing on taking direct
action in GHG emissions reduction, farming practices and
sustainable packaging. The Company is also focused on
supporting healthy ecosystems through initiatives that
contribute to nature positive outcomes.
–Capture full potential in China IMF: Growing share in the
China IMF market remains the Company’s most significant
commercial opportunity. The Company is particularly
focused on share gain in key accounts, lower tier cities and
online channels. Critical to increasing share will be ongoing
brand investment, which the Company leverages across its
English label and China label IMF product portfolios.
–Ramp up product innovation: While the Company has
historically been focused on a narrow product range, to
continue to drive growth in IMF and beyond, it will be
important to expand its portfolio in both China label and
English label IMF, as well as leveraging its brand strength
to develop into other product categories for kids, adults
and seniors. Opportunity also exists for the Company in
leveraging existing products into new emerging markets.
–Transform the supply chain: Connected to its IMF and
innovation ambitions, the Company is working to transform
its supply chain. This includes a focus on obtaining
additional China label IMF registrations, developing
nutritional manufacturing capability, leveraging capacity at
MVM, as well as pursuing other investment opportunities
and commercial partnerships. Over time, the Company
will also consider developing its domestic supply chain
capability in China.
–Accelerate path to profitability: To maximise investment
in China and to improve Group return on sales, the
Company needs to ensure it accelerates the path to
profitability for both the USA and MVM. The Company
is targeting achieving this by FY27 or later.
PurposeWe pioneer the future of Dairy for good
VisionAn A1-free world where Dairy nourishes all people and our planet
Goals
PeoplePlanetConsumersShareholders
Create a safe, diverse,
inclusive and engaging
place for our people to
thrive, support our farmers
and contribute to our
communities
Protect our planet and cows,
rethink packaging, achieve
net zero and become nature
positive
Bring the unique benefits of
pure and natural a2 Milk™
to as many consumers as
possible
Create long-term, enduring
value for shareholders
and maintain a trusted,
transparent relationship
Strategic
priorities
12345
Invest in people and
planet leadership
– Invest in our people
to enable them to
thrive
– Take direct action
to lead the industry
in GHG emissions
reduction, farming
practices and
sustainable
packaging
Capture full potential
in China IMF
– Increase share in key
accounts, expand in
lower tier cities and
further accelerate
online growth
– Invest in brand
strength and leverage
across two labels and
wider portfolio
Ramp up product
innovation
– Expand EL and CL IMF
product portfolios
– Develop Other
Nutritionals for kids,
adults and seniors
– Leverage IMF and
other products into
new markets
– Innovate in liquid milk
Transform our
supply chain
– Expand CL market
access through MVM
and other investment
opportunities,
primarily in NZ and
China over time
– Develop supply
capability to enable
innovation
Accelerate path
to profitability
– Improve USA
liquid milk losses
and invest in
development of
IMF opportunity
– Increase MVM A1-free
milk pool, nutritional
capability, utilisation
and efficiency
Enablers
Quality & serviceBrand strengthScience & innovationStrategic relationships
Values
Bold passionOwnership & agilityLeading constructivelyDisruptive thinking
OLDB
22

Financial measures of success
The Company has remained firmly focused on executing
against its refreshed growth strategy that was introduced
in 2021. Meaningful progress has been made against the
Company’s strategic medium-term financial and non-financial
ambitions which are reflected in the Company’s FY25 Group
Performance Scorecard (refer to page 79).
a2MC’s strong brand, underpinned by sustained marketing
investment, has driven significant market share gains. The
Company’s share of the total China IMF market has increased
from 4.9% in FY21 to 8.0% in FY25, elevating a2MC to the
position of the fourth-largest player in the market this year.
a2MC has achieved strong growth in Group revenue and
EBITDA from FY21 to FY25 of 58% and 122% respectively. For
the same period, China label IMF sales have grown 62% and
English label IMF sales, have seen a recovery, up 22%.
This year the Company delivered record sales of $1.9 billion,
with double-digit growth in revenue, EBITDA and EPS with the
results driven by execution of our growth strategy.
This strong FY25 performance has moved the Company
meaningfully closer to its medium-term revenue ambition
of around ~$2 billion by ≥F Y2 7.
The key drivers for further sales growth are:
–Increasing share in CL and EL IMF through portfolio
expansion and growth in lower tier cities and online
channels.
–Growing other dairy and nutritional products in
China through innovation and distribution growth.
–Growing in existing and new emerging markets
outside of China (e.g. South East Asia).
–Expanding in milk and adjacent categories in ANZ
and the USA.
The Company continues to target EBITDA margins in the
‘teens’ with year-on-year improvement and is focused on
continuing to deliver against its growth strategy and broader
medium-term ambitions out to FY27.
Achieving these goals will depend on a range of factors,
including China IMF market conditions and channel dynamics,
mix of business (IMF channel mix and overall product
mix), investment levels in brand and capability, timing and
investment required to deliver the Company’s priorities
around its supply chain transformation, and achieving
profitability in the USA and at MVM.
There are also key macro uncertainties that may impact the
future outlook, including:
–How the China birth rate evolves and the impact policy
changes may have on this.
–How the competitive landscape will continue to evolve
in China.
–The extent and pace of change in consumer product and
channel preferences.
–How the China regulatory framework and international
relations may evolve and impact trade.
–Inflationary pressures impacting operating costs and
introducing cost-of-living pressures for consumers globally.
Because of these uncertainties, it is difficult to define future
targets and when they will be achieved – the path is also
unlikely to be linear. Accordingly, future results may be
materially different to the Company’s ambition.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
23

Medium-term measures of success
Non-financial measures of success
The Company is also focused on several medium-term
non-financial measures of success, as summarised in the
table above.
People: The Company is committed to promoting a safe,
diverse, inclusive and engaging environment for its people.
The Company’s ambition is to be an employer of choice in
the industry by creating a fulfilling employee engagement
experience that enables employees to thrive personally
and professionally. To facilitate this ambition, the Company
is targeting below 5 for its safety total recordable injury
frequency rate (TRIFR) with continuous improvement,
improving its employee engagement score to greater than
75%, maintaining its diversity and inclusion rating and
reducing the Company’s Australian gender pay gap by
2ppts per annum.
Planet: The Company is committed to minimising its impact
on the planet, contributing to nature positive and becoming
a more sustainable business across a broad range of areas.
For on-farm and other impact areas, this includes maintaining
100% of certified farms supplying raw A1 protein free milk
having certified farm environmental plans and upgraded
animal welfare programmes.
On emissions, the Company seeks to make meaningful
progress each year towards its target of net zero emissions for
Scope 1 and 2 by 2030 and for Scope 3 by 2040, and an interim
reduction in Scope 3 emissions of 30% (per kilogram of milk
solids) by 2030, from a FY21 base year.
The Company also seeks to make meaningful progress
each year against its target of 100% reusable, recyclable or
compostable packaging with 50% average recycled content.
Consumers: The Company has set brand health, market share,
innovation and supply chain targets to deliver on its Consumer
goals.
For brand health, the Company is targeting greater than 25%
for unprompted awareness in China, household penetration
of ~16% in Australian fresh milk, and household penetration
above 3% in the USA in the premium milk segment.
For market share, the Company had been working to become a
top five China label IMF player with a greater than 5% market
share, achieving 5.5% in FY25. The Company is also targeting
to have the leading English label IMF range with market share
for that range of greater than 25%. For its liquid milk business,
the Company is targeting greater than 13% market share in
Australia and greater than 3% market share in the premium
milk segment in the USA.
For innovation, the Company is looking to drive $200 million
in incremental revenue from dairy and Other Nutritionals in
China while also driving 15% of sales from new products in
Australia and the USA.
For supply chain, importantly, the Company is also looking
to secure three or more China label IMF registrations. The
Company targets to maintain the highest food safety and
quality standards, improve supplier and customer service
levels, tightly manage inventory levels and constantly improve
supply chain efficiency.
Goals
Consumers
Page 48
People
Page 28
Planet
Page 38
Brand Health Market Share Innovation Supply Chain Shareholders
Page 55
1234567
Safety GHG emissions
reduction
China brand
health
MBS share IMF sales from
new products
Access to ≥3 CL
registrations
Sales ambition
of ~$2.0b
(≥FY27)
Engagement Farm
environmental
plans
AU household
penetration
DOL share China Other
Nutritionals
growth
CL inventory
management
EBITDA margin
ambition in
the ‘teens’
targeting
year-on-year
improvement
Diversity and
inclusion
Animal welfare
programmes
USA
household
penetration
CBEC share Emerging
markets
development
EL inventory
management
Gender
pay gap
Sustainable
packaging
O2O + Daigou
share
ANZ sales
from new
products
Quality and
service
USA
profitability
by FY27
Australian
fresh milk
share
USA sales
from new
products
Supply chain
efficiency
MVM
profitability
by FY27
USA premium
milk share
On track Work in progress
24

Our reporting approach
The Company aims to continuously improve its reporting and disclosures to meet
stakeholder expectations. The Company also aims to ensure that it creates long-term,
enduring value for shareholders through a trusted, transparent relationship.
This FY25 Annual Report integrates the Company’s
financial, environmental, social and governance disclosures.
At its core, the integrated reporting concept refers to
a principles-based, multi-capital framework in which
companies can communicate clearly and concisely about
how their strategy, governance, performance and prospects
create value in the context of their external environments.
The Company acknowledges recent developments in
disclosures, particularly its requirements under the
Aotearoa New Zealand Climate Standards (NZ CS 1, NZ CS 2,
and NZ CS 3) published by the Aotearoa New Zealand
Climate Standards External Reporting Board (XRB) in
December 2022. The Company’s FY25 Climate Statement
addresses the requirements of the Aotearoa New Zealand
Climate Standards and is also largely aligned with the
Australian climate-related financial disclosures, although
a2MC is not currently required to disclose under the
Australian requirements due to its business structure.
This Annual Report has also been prepared considering
the first two standards issued by the International
Sustainability Standards Board (ISSB), the United Nation’s
Sustainable Development Goals (SDGs), and with reference
to the Global Reporting Initiative (GRI) Standards. Please
refer to the Company’s GRI Index.
The Company will continue to assess stakeholder
requirements and expectations along with the reporting
requirements in all jurisdictions in which it operates to guide
its future reporting.
Assurance
The Company acknowledges the expectation of stakeholders to
ensure non-financial metrics disclosed externally are done so
with a similar level of rigour to financial reporting. For FY25, the
Company has received from Ernst and Young (EY) reasonable
assurance for Scope 1 and 2 emissions; and limited assurance
for Scope 3 emissions, operational environmental management,
people, community investment, and sustainable packaging
metrics included in this report and the Company’s FY25 Climate
Statement, along with reference to the GRI Standards. For further
information, please see the ESG assurance report from EY on the
following pages.
Materiality assessment
In March 2025, the Company refreshed its materiality
assessment to inform its strategy and disclosures to
stakeholders in the Annual Report. A representative sample
of 18 external and 13 internal stakeholders were engaged in
the materiality assessment, with stakeholders rating 24 issues
around their importance for the Company to prioritise, how
well a2MC is managing the issue in their opinion, and how
significant the financial impact of the issue is on the Company.
Within this framework, ‘materiality’ differs from financial and
audit interpretations and the NZX/ASX definitions of material
information.
The top 12 key issues identified through this process as most
material by both internal and external stakeholders are
outlined below.
Top 12 material issues
1. Product safety
and quality
2. Health, safety
and wellbeing
of the team
3. Policy and
regulation
4. Brand
and intellectual
property
5. Product
innovation
6. Responsible
supply chain
7. A thriving
team
8. Profitability9. Business ethics
and responsible
marketing
10. Animal
welfare
11. Growth in
market share
12. Sustainable
farming
practices
BUILDING A SUSTAINABLE
GROWTH BUSINESS
25

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au

Independent Assurance Report to The a2 Milk Company Limited
Our Conclusions:
Limited assurance: Based on the procedures we have performed and the evidence we have obtained, nothing has
come to our attention that causes us to believe the Limited Assurance Subject Matter for the year ended 30 June
2025 has not been prepared, in all material respects, in accordance with the Criteria defined below.
Reasonable assurance: In our opinion, the Reasonable Assurance Subject Matter for the year ended 30 June
2025 is prepared, in all material respects, in accordance with the Criteria defined below.
What we assured
Ernst & Young (‘EY', ’we’) were engaged by The a2 Milk
Company Limited (‘a2MC’) to provide limited assurance
over selected sustainability measures disclosed in a2MC’s
Annual Report (the ‘Report’) for the year ended 30 June
2025 in accordance with the noted Criteria, both as
defined in the following table:
What we assured (Limited
Assurance Subject Matter)
What we assured it against
(Criteria)
Planet
Total Scope 3 emissions:
436,528 tCO
2
-e
a2MC’s own publicly disclosed
criteria (as outlined on page
40 of the Report)
Total water usage: 294,027
‘000 litres
a2MC’s own publicly disclosed
criteria as informed by the
Global Reporting Initiative
(GRI) Standards
Water use intensity: 1.4
litres/litre of milk
Wastewater diverted to
beneficial land application:
1,356,984 litres
Waste to landfill: 65 tonnes
Waste diversion: 95.7%
Total energy consumption:
70,600,000 kWh
Recyclable packaging (by
weight): 98%
People
Gender diversity – total
workforce that are female:
53%
a2MC’s own publicly disclosed
criteria as informed by the
Global Reporting Initiative
(GRI) Standards
Cash and stock donations:
$1.75m NZD
In addition, we were engaged by a2MC to provide
reasonable assurance over the following information in
accordance with the noted Criteria, as defined in the
following table:
What we assured
(Reasonable Assurance
Subject Matter)
What we assured it against
(Criteria)
Planet
Total Scope 1 emissions: 374
tCO
2
-e
a2MC’s own publicly disclosed
criteria (as outlined on page
40 of the Report)
Total Scope 2 emissions
(location-based method):
8,486 tCO
2
-e
Total Scope 2 emissions
(market-based method): 153
tCO
2
-e

Other than as described in the preceding paragraphs,
which set out the scope of our engagement, we did not
perform assurance procedures on the remaining
information included in the Report, and accordingly, we
do not express an opinion or conclusion on this
information.
Key responsibilities
a2’s responsibility
a2’s management is responsible for selecting the Criteria,
and ensuring the Subject Matter is prepared, in all
material respects, in accordance with that Criteria. This
responsibility includes establishing and maintaining
internal controls, maintaining adequate records and
making estimates that are relevant to the preparation of
the subject matter, such that it is free from material
misstatement, whether due to fraud or error.
EY’s responsibility and independence
For the limited assurance engagement, our responsibility
is to express a conclusion on the Limited Assurance
Subject Matter based on the evidence we have obtained.
For the reasonable assurance engagement, our
responsibility is to express an opinion on the Reasonable
Assurance Subject Matter based on the evidence we have
obtained. We have complied with the independence and
relevant ethical requirements, which are founded on
fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and
professional behavior.
EY applies Auditing Standard ASQM 1 Quality
Management for Firms that Perform Audits or Reviews of
Financial Reports and Other Financial Information or
Other Assurance or Related Services Engagements, which
requires the firm to design, implement and operate a
system of quality management including policies or
procedures regarding compliance with ethical
requirements, professional standards and applicable legal
and regulatory requirements.
Our approach to conducting the assurance
procedures
We conducted our assurance procedures in accordance
with the Australian Auditing and Assurance Standards
Board’s Australian Standard on Assurance Engagements
Other Than Audits or Reviews of Historical Financial
Information (‘ASAE3000’), in relation to greenhouse
gases Assurance Engagements on Greenhouse Gas
Statements (‘ASAE 3410’), and the terms of reference for
this engagement as agreed with a2MC on 27 February
2025.
For the limited assurance engagement, these standards
require that we plan and perform our engagement to
express a conclusion on whether anything has come to our
attention that causes us to believe that the Limited
Assurance Subject Matter is not prepared, in all material
Independent ESG Assurance Report
for the year ended 30 June 2025
26

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

respects, in accordance with the Criteria, and to issue a
report. For the reasonable assurance engagement, these
standards require that we plan and perform our
engagement to obtain reasonable assurance about
whether, in all material respects, the Reasonable
Assurance Subject Matter is presented in accordance with
the Criteria, and to issue a report. The nature, timing and
extent of the assurance procedures selected depend on
our judgement, including an assessment of the risk of
material misstatement, whether due to fraud or error.
Description of assurance procedures performed
A limited assurance engagement consists of making
enquiries, primarily of persons responsible for preparing
the Limited Assurance Subject Matter and related
information, and applying analytical and other appropriate
procedures. The Limited Assurance procedures we
performed were based on our professional judgement and
included, but were not limited to:
► Conducted interviews with personnel to understand
the business and reporting process and the process for
collecting, collating and reporting the Limited
Assurance Subject Matter during the reporting period
► Assessed that the calculation criteria have been
correctly applied in accordance with the
methodologies outlined in the Criteria
► Undertook analytical review procedures to support the
reasonableness of the data
► Identified and assessed assumptions supporting
calculations
► Checked on a limited sample basis the aggregation of
selected disclosures and transcription to the Report
► Considered the appropriateness of the presentation
relating to the Subject Matter in the Report.
► Reviewed a2MC’s reporting with reference to the GRI
Standards (2021).
Additional reasonable assurance procedures we
performed were based on professional judgement and
included, but were not limited to:
► Considered internal controls relevant to a2MC’s
preparation of the greenhouse gas disclosures
► Assessed the suitability in the circumstances of
a2MC’s's use of the Criteria;
► Evaluated the appropriateness of quantification
methods and reporting policies used, and the
reasonableness of estimates made by a2MC;
► Tested a sample of data used in calculations and of
emission sources to supporting evidence
► Evaluated the overall presentation of the disclosures
We believe that the evidence obtained is sufficient and
appropriate to provide a basis for our limited assurance
conclusion and reasonable assurance opinion.
Inherent limitations
While we considered the effectiveness of management’s
internal controls when determining the nature and extent
of our procedures, our assurance engagement was not
designed to provide assurance on internal controls.
The greenhouse gas emissions quantification process is
subject to scientific uncertainty, which arises because of
incomplete scientific knowledge about the measurement
of greenhouse gases. Additionally, greenhouse gas
procedures are subject to estimation and measurement
uncertainty resulting from the measurement and
calculation processes used to quantify greenhouse gas
emissions within the bounds of existing scientific
knowledge.
Additional inherent limitations
Limited assurance scope
Procedures performed in a limited assurance engagement
vary in nature and timing from, and are less in extent than
for a reasonable assurance engagement. Consequently,
the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that
would have been obtained had a reasonable assurance
engagement been performed. Our procedures were
designed to obtain a limited level of assurance on which to
base our conclusion and do not provide all the evidence
that would be required to provide a reasonable level of
assurance. Our limited assurance procedures did not
include testing controls or performing procedures relating
to checking aggregation or calculation of data within IT
systems.
Reasonable assurance scope
While our procedures performed for our reasonable
assurance engagement are of a higher level of assurance,
due to the use of sampling techniques, it is not a
guarantee that it will always detect material
misstatements.
Other matters
Our report does not extend to any disclosures or
assertions made by a2MC relating to future performance
plans and/or strategies disclosed in a2MC’s 2025 Annual
Report and any supporting disclosures online.
Use of our Assurance Report
We disclaim any assumption of responsibility for any
reliance on this assurance report to any parties other than
a2MC, or for any purpose other than that for which it was
prepared. Our assurance procedures were performed
over certain web-based information that was available via
web links as of the date of this statement. We provide no
assurance over changes to the content of this web-based
information after the date of this assurance report.

Ernst & Young
Sydney, Australia
17 August 2025
BUILDING A SUSTAINABLE
GROWTH BUSINESS
27

Progress towards our goals – People
People
Create a safe, diverse, inclusive and engaging place
for our people to thrive, support our farmers and
contribute to our communities.
In this section:
Passionate and thriving team 29
Our ongoing commitment
to gender pay equality 32
Human rights 34
Enriching communities 35
28

Passionate and thriving team
The Company is committed to maintaining a safe, highly diverse and inclusive environment
for its people. The Company’s ambition is to be an employer of choice in the industry by
creating a fulfilling employee engagement experience that enables employees to thrive
personally and professionally.
Medium-term people targets
To facilitate this ambition, the Company focuses on health and safety, invests in leadership, promotes the employee experience,
fosters a learning environment, and celebrates diversity and inclusion.
During FY25, the Company launched various initiatives to deliver on its ambition and to achieve engaged and effective teams who
create long-term value for the Company and its shareholders.
Gender pay gap
2ppts reduction
per annum in gender pay gap
FY25: Decreased Australian and
global gender pay gaps by 1ppt to
39.8% and 31.8% respectively
Engagement
>7 5 %
Company-wide engagement
survey
March 2025: 71%
October 2024: 71%
Safety
<5 TRIFR
with continuous improvement
FY25: 3.3
FY24: 6.2
FY25 progress
Health, safety and wellbeing
–Launched ‘Safety Non-Negotiables’, identifying behavioural
guidelines for team members when exposed to any of our
top eight critical risks.
–Reduced Global Total Recordable Injury Frequency Rate
(TRIFR) to 3.3
1
, down from 6.2 at the same time last year.
This was achieved through continued embedding of safety
programmes and initiatives such as critical risk controls
verification and good manual handling techniques training,
along with promoting a safety first culture.
–Made progress towards launching a new global online
safety event reporting system, intended to streamline
centralised reporting and trend analysis.
–Evolved the Health Safety and Wellbeing Group Strategy,
maintaining the focus on both critical and psychosocial
risks, safety system requirements, and strengthening
safety behaviours and leadership.
–Delivered Workplace Behaviour Training to people leaders
in Australia and New Zealand.
–Launched Mental Health Awareness Training for people
leaders.
1 Excludes contractors.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
29

Investment in leadership
–Implemented the ‘B O L D leadership programme’ focusing
on ‘leading self’ and ‘leading others’.
–Hosted all senior leaders at the annual Senior Leaders’
Conference to align on strategic priorities and execution
plans for FY26 and share learning, opportunities and
achievements.
Reward, recognition and training
–Developed and rolled out educational and support materials
to drive greater pay transparency for both leaders and team
members.
–Celebrated and recognised monthly nominees for the a2™
Legends awards acknowledging individuals and teams who
demonstrate Company values and outstanding contribution
towards achievement of Company strategic priorities.
–Recognised the overall winner of the annual a2™ Legend of
the Year award and four individual recipients of the annual
B O L D values awards.
Recruitment
–Implemented an end-to-end global mobility process to
meet strategic Company objectives by identifying and
relocating top talent to New Zealand from various countries
throughout Asia.
–Further enhancements made to our Human Resources
Information System (HRIS) providing global data and
reporting.
–Invested in talent acquisition of product development and
innovation skills, specifically in China and the Supply Chain
teams, to strengthen internal capability to deliver on the
Company’s growth objectives.
–Advertised all roles internally and externally as flexible.

Supporting a diverse and inclusive workplace
–Received Family Inclusive Workplace certification through
Parents at Work in partnership with UNICEF Australia
to acknowledge our ongoing commitment to creating a
supportive and inclusive workplace with leading policies,
practices and benefits on flexible work, parental leave,
family care and family wellbeing.
–Implemented transition coaching through Parents at
Work for team members returning from parental leave in
Australia, New Zealand and the USA.
–Partnered with TDC Global to undertake a Diversity, Equity,
Inclusion and Belonging (DEIB) whole of business review,
which included listening sessions and specific engagement
survey questions to gain quantitative and qualitative
insights to inform the diversity and inclusion priorities.
–Delivered Inclusive Leadership Training and Unconscious
Bias Training to people leaders.
–Launched an inclusive leadership webinar series for all
team members.
–Launched Māori Awareness Training and Australian
Indigenous Culture Training.
–Included gender pay gap metrics (Australia and global) in
the Company scorecard as a key performance indicator.
–Launched an enhanced Domestic and Family Violence
policy, dedicated intranet page, internal resources and
education and awareness learning module.
–Launched a dedicated intranet page for parental leave.
Next steps
–Enhance current benefits to strengthen the Company’s
value proposition for a2MC team members and to attract
future talent.
–Continue to work on our Family Inclusive Workplace Action
plan to further enhance our policies, practices and benefits
on flexible work, parental leave, family care and family
wellbeing.
–Implement a purchased leave programme for ANZ team
members to provide further flexibility.
30

Key metrics data
Gender (as at 30 June 2025)CohortMale%
3
Female%
3
Variance
to last year
3

(% of females)
Directors
1
6350%350%0%
Executive Leadership Team
1
10770%330%0%
People Leaders
2
1246351%6149%4%
Remaining Team Members37216945%20355%1%
Total51124147%27053%2%
Age (as at 30 June 2025)Number%
3
Variance to last year (%)
3
Under 304910%-3%
30 to 5035369%4%
Over 5010921%-1%
Total511 100% –
Tenure (as at 30 June 2025)Number%
3
Variance to last year (%)
3
0–2 Years17735%-6%
2–5 Years19538%3%
5+ Years13927%3%
Total511100%–
1 David Bortolussi has been included in both the Director and ELT calculations. The appointment of Grant Dempsey as an independent
non-executive director was announced on 4 August 2025. As his appointment is not effective until 1 September 2025, he has not been
factored into the People analysis in this report.
2 People Leaders are defined as any Team Member with direct reports.
3 All values subject to rounding.
31
BUILDING A SUSTAINABLE
GROWTH BUSINESS

The Company continues to progress its policies, benefits and practices that support and
promote gender equality, driven by a strong belief that a holistic approach to diversity and
inclusion in the workplace drives better business outcomes and provides a better experience
for all team members.
The Company is pleased to have achieved a reduction in its
gender pay gap metrics whilst acknowledging that it still has
work to do to continue this reduction consistently over time.
In FY25 the Company proudly received ‘Family Friendly
Workplace’ certification issued by Parents at Work and
U N I C E F.
The Board level representation of women remained at 50%,
led by a female Chair. The Executive Leadership Team (ELT)
has 30% women and management continues to work towards
the goal of having at least 40% representation of men and
women across all levels in the organisation.
a2MC has a gender-neutral approach to pay across the
organisation and upholds equal pay as a core component
of its remuneration policy and compliance in the markets
in which it operates.
The Company proudly continues to offer gender neutral
parental leave and in the past 12 months there have been
13 men who have accessed extended paid parental leave.
Management believes that by offering gender neutral parental
leave it supports and breaks down gender stereotypes and
promotes a more equitable, supportive and productive society
and benefits all family members.
The Company has partnered with an external Diversity, Equity,
Inclusion and Belonging (DEIB) consultancy (TDC Global) to
lead numerous interactions with our team members, providing
qualitative and quantitative insights that continue to inform
the ongoing development and execution of our DEIB strategy.
Focus areas to support gender pay equality
The Company maintains three priorities to support its gender
pay equality objectives.
1. Talent acquisition
Inclusion and diversity are areas of continued focus in the
attraction, development and retention of talent. a2MC has
taken various initiatives to improve outcomes in this area,
including:
–All roles are advertised internally to widen the pool of
candidates and to provide development opportunities to
existing team members.
–Specialised external software is used to attract diverse
candidates through gender neutral language in role
advertisements reducing gender bias in talent attraction.
–Talent acquisition teams are required to provide gender
balanced candidate short lists.
–For higher graded appointments, the Company ensures it
has a gender balanced interview panel with a senior female
executive.
–Unconscious Bias training is provided to all hiring leaders
to reduce unintended bias in the recruitment process.
–Talent management processes ensure that gender balance
is a consideration.
–The CEO and Chief People & Culture Officer review all senior
leadership appointments to ensure that a gender-neutral
approach has been adopted.
Our ongoing commitment
to gender pay equality
32

2. Flexible and supportive work practices
The Company proudly achieved ‘Family Friendly Workplace
Certification’ awarded by Parents at Work in partnership
with UNICEF. This recognition acknowledges a2MC’s ongoing
commitment to creating a supportive and inclusive workplace
with leading policies, practices and benefits on flexible work,
parental leave, family care and family wellbeing. Consistent
with this, the Company’s policies include:
–Gender neutral parental leave, providing all permanent
employees (of any gender) who are welcoming the arrival
of a child to their family through pregnancy, adoption,
surrogacy, fostering or kinship arrangement, with 20
weeks paid leave with no qualifying period and removal of
the primary and secondary carer labels. Gender neutral
parental leave is an important part of the Company’s
approach to gender equality in the workplace and helping
take gender bias out of parental leave.
–Multiple newborns parental leave (eight weeks additional
paid leave).
–Grandparents leave for the arrival of a new family member
(five days additional paid leave).
–Women’s health leave for team members experiencing
symptoms of endometriosis, peri-menopause or
menopause as well as those individuals undertaking
fertility treatments, including IVF (five days additional
paid leave).
3. Remuneration framework
a2MC continues to undertake regular independent salary
reviews and equal pay validation. Over the past year the
Company engaged global consulting firm Korn Ferry to lead
an independent and extensive job grading process for all roles
in Australia across all job grades. The Korn Ferry Hay Group
Guide Chart-Profile Method of Job Evaluation is the most
widely accepted method worldwide. The Company utilises
this methodology annually during the annual salary review
process and ad-hoc reviews to verify job grades, market data
and equal pay. The Company has a long-standing partnership
with Korn Ferry, utilising their expertise to regularly review
remuneration ranges, benchmarking and job matching.
Gender pay gap calculations
We have reduced our total remuneration average gender pay
gap by 1% from 2024 to 2025.
Australian gender pay gap data
1
Due to the relatively low number of total employees in
Australia, the gender pay gap calculations are sensitive
to small movements. Notwithstanding, the Company is
determined to make a difference in Australia and globally and
has included a continuous improvement goal in the Group
performance scorecard.
FY25FY24
Base salaryAverage24.0%26.6%
Median 17.8%19.9%
Total
remuneration
Average39.8%40.8%
Median 21.4%21.2%
1 WGEA methodology used to calculate gender pay gap based on data
as at 31 March of each year. 166 and 166 employees as at 31 March 2024
and 31 March 2025 respectively in line with WGEA reporting dates.
Global gender pay gap data
1

Whilst gender pay gap is an important insight into gender
equality at a point in time, it does not provide a complete
picture of a2MC’s commitment to it. The Company is proud
of its approach to diversity and inclusion, has market-leading
policies and is committed to continuous improvement in
closing its legacy gender pay gap and will continue to create a
great place to work that provides accessible opportunities for
all our team members to thrive.
FY25FY24
Base salaryAverage20.4%20.8%
Median 13.5%11.8%
Total
remuneration
Average31.8%32.7%
Median10.2%11.0%
1 WGEA methodology used to calculate gender pay gap based on data
as at 31 March of each year.

BUILDING A SUSTAINABLE
GROWTH BUSINESS
33

Human rights
The Company has long recognised that a company’s values, principles and decisions have
an impact well beyond its own operations. We strongly believe in the vital role business
plays in upholding human rights and consider it our basic responsibility to treat individuals,
communities and our environment with respect, and encourage our partners to do likewise.
Anti-modern slavery
The Company is committed to taking action to support the
elimination of modern slavery by focusing on high standards of
responsible conduct, social responsibility and sustainability
in all areas of our business, including our operations and
supply chains.
The Company manages an Anti-Modern Slavery programme,
including supply chain mapping, risk assessment, supplier
engagement, regular business updates and a formal
governance process.
The Company publishes a dedicated annual Modern Slavery
Statement. This is available at thea2milkcompany.com/ESG-
reporting.
FY25 progress
–Completed the refreshed risk assessment and a gaps
and opportunities analysis to support longer-term action
planning.
–Developed a longer-term action plan for modern slavery.
–Launched a cross-functional modern slavery working group
to drive the Company’s action plan for modern slavery.
–Created an information hub about modern slavery for
a2MC Team Members.
–Introduced modern slavery training into the Corporate
Induction programme run for new joiners in Australia and
New Zealand.
–Commenced initial work on an improved supplier due
diligence programme, commenced roll-out of supplier
questionnaires to some of MVM’s suppliers and continued
the roll-out of anti-modern slavery follow-up questions
to a2MC’s suppliers with indicators of higher potential
risk exposure.
–Engaged with a number of a2MC’s Australian and
New Zealand manufacturing partners to understand
more about their modern slavery risks and anti-modern
slavery action plans.
Next steps
–Continue development of an improved supplier due
diligence programme.
–Work with Australian and New Zealand manufacturing
partners to improve modern slavery risk mitigation on
farms supplying A1 protein free milk.
–Define approach to human rights and modern slavery
supplier audits.
Promoting diversity and inclusion
As a diverse business with operations across four different
countries, the Company recognises the value of a diverse
workforce, and the importance of fostering a culture that
promotes respect and inclusion in and beyond the workplace.
In New Zealand, the Company commenced its Māori cultural
journey in 2024. The Company’s initial focus has been on
education, with a focus on building understanding of the
Māori culture among team members globally.
In Australia, the Company recognises the importance of
reconciliation between First Nations peoples and non-
Indigenous peoples and in FY23 formally commenced its
reconciliation journey by committing to the Reconciliation
Action Plan (RAP) framework established by Reconciliation
Australia.
FY25 progress
–Rolled out Māori Masterclass training to team members
in New Zealand, Australia and the United States in
partnership with Tika Learning.
–Delivered Indigenous cultural awareness training across
Australia and New Zealand, in partnership with YarnnUp,
a First Nations consultancy.
–In Australia, completed deliverables against the Company’s
‘Reflect’ RAP.
Next steps
–In Australia, commence development of ‘Innovate’ RAP.
–Implementation of cultural awareness training module.
34

Enriching communities
The Company proudly supports communities across New Zealand, Australia,
the United States and China, that are helping to create a brighter future for children
and families, and the Company’s farming communities.
Support is provided through cash contributions, product donations and time invested from a2MC team members. Each employee
is entitled to one paid volunteer day per year, allowing them to contribute directly to community initiatives.
In FY25, the Company became a member of Business for Societal Impact (B4SI) adopting its framework to enhance the reporting
and evaluation of social impact. This framework enables the Company to assess its inputs, outputs and impacts ensuring its
community initiatives deliver meaningful and measurable positive outcomes.
FY25 contributions
Key community partners in FY25 included:
–KidsCan (New Zealand).
–Foodbank School Breakfast Program (Australia).
–Feed the Children (USA).
–Operation Smile (China).
Event-based (or reactive) support
–Donated UHT products for Typhoon Yagi flood relief
in Vietnam.
–Supplied UHT and WMP products to Foodbank for
Cyclone Alfred support in Australia.
Additional farming community
specific programmes and support
–a2™ Farm Sustainability Fund.
–Surfing for Farmers support.
–Bale Up Conference support.
–Dairy Women’s Network support.
–Gravel in Paradise sponsorship.
1 Total donations figure includes contributions made through both
community investment and social innovation. It reflects the cost value
of donated products and any donation of cash (NZD) to communities,
organisations, farmers and individuals.
FY25 progress
Total of $1.75 million
1
in product and cash donations.
Community investment
$1.36m
invested in community
initiatives (cash, in-kind,
time)
147
organisations
supported through
community investment
2,230
direct beneficiaries
supported through
key partnerships
Social innovation
$391K
invested in social and
environmental impact
19
grants awarded to
farmers through a2™
Farm Sustainability
Fund
BUILDING A SUSTAINABLE
GROWTH BUSINESS
35

Community partners
To maximise its impact, the Company supports
one strategic community partnership in each of
its operating regions.
Operation Smile (China)
About 25,000 babies born in China each year
suffer from cleft lip palate.
While corrective surgery can help to transform those
children’s lives, they cannot undergo surgery until
they achieve the requisite ‘health standard’, which
includes weight targets. The Company continued
to partner with Operation Smile during the year to
provide nutrition products to children suffering from
cleft lip palate, before and after their operations.
With more than 6,000 medical volunteers from
around the world, Operation Smile is one of the world’s
largest volunteer-based not-for-profit organisations.
KidsCan (New Zealand)
The Company is proud to partner with KidsCan, a
New Zealand based charity dedicated to helping
children affected by poverty.
a2MC is a major partner of KidsCan, which helps to support
children experiencing hardship by providing food, jackets,
shoes and basic health products in partnership with schools
and early childhood centres nationwide. Through this
partnership the Company supports five early childhood
education centres helping to improve the wellbeing and
development of children under the age of five.
The Company supports KidsCan’s belief that education is
a child’s ticket out of poverty. Recognising that children
struggle to learn when they are cold or hungry and providing
practical support can help to remove some of these barriers,
creating an opportunity for a better future.
36

Feed the Children (USA)
The Company partnered with Feed the Children and
local community partner Wee Cycle in Colorado to
help provide struggling families the supplies they
need to send their children back to school with
confidence.
The ongoing health and economic crisis continues to
cause hardships for children and their families and
it’s estimated that one in five children in the USA is
food insecure. In FY25, the Company donated funds to
provide food and supplies for school children, ensuring
they have what they need to grow and thrive with joy.
Foodbank (Australia)
The Company has supported Foodbank with fresh milk
product donations in New South Wales and Victoria since
2015, scaling up support in times of heightened need.
In FY23, a2MC extended its support through a cash donation
to the Foodbank School Breakfast Program, which provides a
healthy breakfast for school children who would otherwise go
without. The Program delivers important benefits for students
across a broad range of physical and mental health outcomes,
including energy levels and concentration.
In FY25, the Company continued its support by helping
to extend the reach of the School Breakfast Program to
more than 118 schools across some of Australia’s most
remote Indigenous communities in the Northern Territory,
South Australia and Western Australia.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
37

Our key Planet focus areas include:
Climate 39
Nature 42
Thriving farms 43
Operational environmental management 46
Sustainable packaging 47
Planet
The Company has strategic goals to protect our
planet and cows, re-think packaging, achieve
net zero and contribute to nature positive. We
are committed to taking action on greenhouse
gas emissions reduction, farming practices and
sustainability.
Progress towards our goals – Planet
38

Climate
Climate Commitments
The Company has set net zero greenhouse gas (GHG) emissions targets for Scope 1 and 2 emissions by 2030, and net zero
for Scope 3 emissions by 2040, with an interim target of 30% Scope 3 emissions intensity reduction by 2030 (per kilogram of
milk solids, from a FY21 base year). To support these ambitious targets, a detailed emissions reduction roadmap and climate
transition plan have been developed.
Emissions Reduction Roadmap
The Company has continued to track against its net zero roadmap, which illustrates the Company’s net zero targets and how it
plans to meet these targets over time.
Climate change poses a material risk for the dairy sector, as climate-related impacts on
natural resources can directly impact the operations and production of the sector; and in
turn dairy farming can have direct impacts on climate change through operational and animal
emissions. Therefore, the Company is committed to taking action to reduce our value chain
emissions, and managing the risks and opportunities associated with climate change.
Medium-term climate targets
Net Zero
GHG emissions
30% Scope 3 emissions
intensity reduction
Net Zero
GHG emissions
for Scope 1 and 2
by 2030
by 2030 (per kilogram of milk
solids, from a FY21 base year)
for Scope 3
by 2040
Emissions reduction roadmap to 2040
204020392038203720362035203420332032203120302029202820272026202520242023202220212020
NET ZERO SCOPE 1 AND 2NET ZERO SCOPE 3
•MVM electrode boiler
•Smeaton Grange solar panels
•Synlait biomass boiler
•Scope 3 on-farm reduction
•Farmer grant programme
•Electrification of infrastructure
and vehicles
•Green electricity contracts
•Enhance supplier engagement
and support
•Develop insetting and incentive
programme
•Invest in on-farm GHG reduction
innovation
•Continue supplier engagement and support, with increased focus
on adaptation and resilience
•Scale insetting and incentive programme
•Expand retailer and co-financing partnerships
•Deploy new GHG solutions on-farm and accelerate uptake
30% Scope 3 emissions intensity reduction
FY21 BASELINE
ACTIONS TO DATEACTIONS TO 2030ACTIONS TO 2040
BUILDING A SUSTAINABLE
GROWTH BUSINESS
39

GHG Emissions FY21–FY25
1
GHG Emissions
2
FY25
tCO
2
e
FY24
tCO
2
e
FY23
tCO
2
e
FY22
tCO
2
e
FY21
tCO
2
e
% change
FY21–FY25
Total GHG Emissions
3
4 37,05 5453,953501,090516,345493,319-11.4%
Scope 137413,41224,34322,97230,144-98.8%
Scope 2 (Market-based)
4,5
153149153–––
Scope 2 (Location-based)
4
8,4864,5073,3563,2213,426147.7 %
Total Scope 3436,528440,392476,595490,153459,749-5.1%
On-farm Scope 3355,250360,919374,168403,429 376,930-5.8%
Scope 1, 2 and 3 Emissions
Intensity (tCO
2
e per kg of
milk solids)12.1215.0918.6518.9919.35- 3 7. 3 %
Scope 3 Emissions
Intensity (tCO
2
e per kg of
milk solids)12.1114.64 17.74 18.0318.03-32.9%
Positive change movement.
The Company has a Scope 3 emissions intensity reduction target of 30% by 2030, against a 2021 baseline. The FY25 data
indicates that Scope 3 emissions intensity has reduced by 33%, and total emissions intensity has reduced by 37% in the a2MC
value chain since the baseline year. This reflects efforts in dairy production efficiency and energy transition in the supply chain
since the baseline year, however more detailed and targeted methods of data collection and calculation for Scope 3 emissions
since 2021 may account for the change in Scope 3 emissions, reflecting more accurate emissions data.
1 Numbers are subject to rounding.
2 Greenhouse gas emissions, calculated as tonnes of carbon dioxide equivalent (tCO
2
e), have been estimated using considerations from The GHG
Protocol guidelines. Emissions and conversion factors were sourced from the National Greenhouse Accounts Factors for Australia, the New Zealand
Ministry for the Environment for New Zealand and a range of other country-specific sources. Where required, indirect emissions sources have been
estimated using default and/or extrapolated emissions intensity rates to provide a more complete picture of the Company’s Scope 1, 2 and 3 emissions.
Total emissions calculations include packaging and non-milk raw ingredients for owned facilities only. Refer to the Company’s GHG inventory report for
details of estimations and assumptions used, which can be found in the Company’s Climate Statement.
3 Total GHG emissions have been calculated using market-based method for Scope 2 in years where such emissions were reported. In years without
Scope 2 market-based emissions, the location-based method was used.
4 A location-based method reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission
factor data). A market-based method reflects emissions from electricity that companies have purposefully chosen. It derives emission factors from
contractual instruments, such as green energy contracts.
5 Renewable energy certificates (RECs) have been procured from Meridian for the MVM site in New Zealand. These RECs originate from assets ranging
from 1 to 7 years old.
Methane
65%
On-farm
(Scope 3)
On-farm GHG emissions
Nitrous oxide
On-farm
(Scope 3)
81%
9%
9%
0.1%
1%
20%
Other (Scope 3)
Third Party
Facilities (Scope 3)
Warehousing and
Freight (Scope 3)
Scope 1 and 2
Carbon dioxide
15%
GHG emissions profile
1
The greenhouse gas emissions profile provides a visual representation of a2MC's Scope 1, 2 and 3 emissions. Scope 3 accounts for
more than 99% of the Company's total emissions, with on-farm activities contributing to approximately 81% of those emissions.
40

FY25 progress
Scope 1: GHG emissions from direct operations
–Achieved 98.8% overall Scope 1 emissions reduction from
FY21 base year, mainly due to the MVM boiler conversion
in FY24.
–In Australia, continued to utilise a mixture of hybrid and
fully electric vehicles across the Company’s fleet.
Scope 2: GHG emissions from electricity operations
–Certified renewable energy
1
replaced coal-fired
infrastructure at the MVM site.
–Continued with renewable electricity agreements at a2MC’s
Australian and New Zealand offices and Smeaton Grange
processing facility.
–Despite an increase of 66% in electricity use since FY24,
certified renewable electricity supply contracts resulted in
market-based Scope 2 emissions of only 153 tCO
2
e.
Scope 3: Indirect GHG emissions
–Scope 3 emissions intensity reduction of 33% since FY21.
–Continued to invest in AgriZero
NZ
, a partnership between
the New Zealand Government and major agribusiness
companies to reduce on-farm biogenic methane and nitrous
oxide emissions.
–Contributed to the Dairy Australia Emissions
Roadmap work.
–Funded emissions reduction initiatives on-farm through
the a2™ Farm Sustainability Fund (see page 44).
–Developed a strategy to collect real, individual, on-farm
emissions data to feed into both disclosures and the
emissions reduction roadmap.
Disclosures and GHG inventory
The Company is a climate-reporting entity under the
Financial Markets Conduct Act 2013. In FY25, the Company
has continued to evolve its alignment to external reporting
requirements and has released its second Climate Statement
under the Aotearoa New Zealand XRB Climate Standards, as
required (NZ CS 1, CS 2 and CS 3).
The Climate Statement includes a detailed GHG inventory
report which shows the breakdown of Scope 1, 2 and 3
emissions to provide transparency on the Company’s
emissions profile as well as communicate any estimation
uncertainties and assumptions.
The Company’s Climate Statement and GHG inventory report
is available at the thea2milkcompany.com/ESG-reporting.
The ESG assurance report relating to the disclosures in the
Climate Statement is at pages 26 and 27.
Next steps
–Further progress the emissions reduction roadmap
through the development of a Scope 3 emissions reduction
incentivisation and implementation plan.
–Roll-out of on-farm emissions measurement.
–Continue to reduce Scope 1 and 2 emissions in our
operations.
–Continue to invest and engage in potential on-farm
emissions reduction solutions through AgriZero
NZ
.
–Continue to fund emissions reduction projects on farms
through the a2™ Farm Sustainability Fund.
AgriZero
NZ
In FY24, the Company made an investment into AgriZero
NZ
,
a public-private partnership between the New Zealand
Government and other industry stakeholders, focused on
providing farmers with tools to reduce methane and nitrous
oxide emissions.
Mitigating on-farm emissions presents a significant challenge
for the dairy industry and transitioning to a lower-emissions
future requires a systematic change involving substantial
investments in innovative technologies to maintain
profitability and productivity.
For information on the progress and research outcomes
of the AgriZero
NZ
partnership, visit agrizero.nz/progress.
1 MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses
on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have
been independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel
sources, due to the nature of the electricity transmission and distribution system.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
41

Nature
Nature encompasses all the elements of the natural world, and the natural interactions,
processes and ‘ecosystem services’ that nature provides to sustain life. The Company
recognises the critical role that dairy farming and production must play in both protecting
and contributing to nature.
The Global Biodiversity Framework sets out an ambitious agenda to halt and reverse biodiversity loss by 2030 and to live in
harmony with nature by 2050. As nature is currently being negatively impacted globally, net zero loss plus positive contributions
are needed to reach this goal. Within the agricultural sector, understanding the interconnected relationship between nature,
climate, and supply chain impacts, especially on-farm impacts, is essential to effectively contribute to a sustainable future.
Medium-term nature targets
Halt biodiversity loss in our
value chain (FY24 baseline)
Contribute to nature
positive in our value chain
Nature commitments
The Company is committed to contributing to nature positive
in our value chain, pursuing the following goals developed
in FY25:
–Sustainable use of natural resources (including water,
fodder, waste and recycling).
–Contribute to biodiversity gains.
–Enhance soil health and soil carbon and nitrogen capture.
–Improve surface water quality.
From an FY24 baseline in the Company’s mature dairy value
chain, a2MC will work with its supply partners to make
positive and measurable contributions to water, fodder
utilisation, waste diversion, biodiversity, soil health and soil
carbon, and water quality. a2MC will achieve this through
its a2™ Farm Sustainability Fund, pursuing and sharing
commercially sustainable solutions with farmers, establishing
data collection and reporting, consideration of nature
in business decisions and exploring nature and carbon
in -setting opportunities.
FY25 progress
–Established nature commitment, baseline and approach.
–Launched a bee and pollination biodiversity project on
one of a2MC’s North America supply partner farms.
–Contributed $210,000 to nature positive projects through
the a2™ Farm Sustainability Fund
1
, enabling successful
supplier farms to implement and measure nature positive
initiatives on-farm through the a2™ Farm Sustainability
Fund improving soil health, water quality and biodiversity
(see page 44).
Next steps
–Determine nature metrics for natural resources,
biodiversity, soil health and water quality.
–Measure the positive impacts of nature initiatives on
biodiversity, soil and water.
1 Nature positive projects include activities related to soil
improvement, water quality and environmental plantings.
42

Thriving farms
The farmers and cows who produce and supply A1 protein free milk to the Company are the
centre of a2MC products and supporting them and their land to thrive is a top priority.
Thriving farm commitments
The Company is committed to working with and supporting its
farmers to improve their operations, deliver improved welfare
outcomes for cows, and farm their land sustainably.
Farm environmental plans
The Company has an established global framework for farm
environmental plans.
The principles of the framework address the most material
aspects of environmental management in the dairy industry:
–Lowering GHG emissions.
–Managing water quality and efficiency.
–Managing soil quality.
–Boosting on-farm biodiversity.
–Improving nutrient (effluent) management.
a2MC requires all its supplying farms to have an environmental
management plan in place, and monitors compliance by
suppliers.
In FY25, the Company continued to support farmers to
improve operational, environmental and animal welfare
standards. In FY25, 100% of certified farms supplying
raw A1 protein free milk had a farm environmental plan in
place and were certified under an upgraded animal welfare
programme, a position maintained from FY24.
Animal welfare
Cow welfare is crucial in dairy production, and improving it
benefits the animals, farm employees and milk production.
Robust standards, combined with suitable oversight and
monitoring, leads to productive and efficient farming with
welfare front of mind.
Best practice standards for animal welfare on farms are
central to a2MC’s farm sourcing, and the Company works with
its farmers to support best practice in animal welfare on its
supplying farms.
a2MC assists farmers to implement its animal welfare
programme through training, milk monitoring, and
comprehensive independent and internal audits. All farms are
required to have the Company’s robust welfare programme in
place, which is independently audited and verified annually.
In addition, the requirements of the programme are reviewed
annually by external experts in conjunction with the a2MC
team, with a view to continuously advance standards over
time. Cow and calf welfare is therefore continually evolving
on farms supplying a2MC, to align with science, evidence and
consumer expectations.
Sustainable farming support
a2MC offers farmers supplying the Company direct support to
improve farming sustainability both practically and financially.
Our Farm Services team and Sustainable Dairy Manager offer
personalised support to our farmers in many areas, including
operational efficiency and productivity, farm environmental
management, emissions reduction and animal welfare.
In addition, the a2™ Farm Sustainability Fund is open each
year for project applications which have a positive impact on
farm sustainability
.
FY25 progress
–100% of certified farms supplying raw A1 protein free milk
continue to have a farm environmental plan in place.
–100% of certified farms supplying raw A1 protein free milk
have an animal welfare programme in place which was
independently audited and verified in FY25.
–Established a new role, the Sustainable Dairy Manager,
to support on-farm sustainability initiatives.
–Established an on-farm data strategy to collect emissions
and environmental management data.
Next steps
–Implement on-farm data strategy to inform Company
decision making in emissions reduction activities and
investment into nature positive projects at the farm level.
–Engagement with a2MC farmers on a shared long-term
animal welfare vision, identifying areas for further
improvement and understanding how to successfully
evolve systems if needed.
Medium-term thriving farms targets
100% of certified
a2 Milk
™
supplying farms
passed independent animal welfare
audits in FY25
BUILDING A SUSTAINABLE
GROWTH BUSINESS
43

The a2™ Farm Sustainability Fund supports projects within the Company’s farming supply
chain that demonstrate an integrated approach to a sustainable future.
By collaborating with industry experts, the Fund aims to drive
nature positive practices, reduces environmental impacts,
enhances animal welfare, and strengthens farming resilience,
directly contributing to the Company’s sustainability goals.
In FY25, the a2™ Farm Sustainability Fund awarded
19 projects, totalling $575,000. Since the inception of the
farmer grants programme in 2017, the programme has awarded
over 115 projects in Australia and New Zealand, totalling more
than $2,730,000.
Overview of successful projects in FY25:
The key priority area and details of some of the successful
projects funded in FY25 include:
–Reduce on-farm GHG emissions: Improved infrastructure
with the introduction of solar panels to power farm
operations.
–Improve animal health and wellbeing: Enhancing animal
welfare through improved shelter and care practices.
–Improve soil health and soil carbon sequestration:
Enhancing soil health through innovative pasture
management and bio-stimulant applications.
–Reduce effluent run-off and enhance water quality:
Riparian planting and pest control measures to improve
water quality and biodiversity.
–Build sustainable communities: Creating educational
spaces on-farm to engage local schools and students in
sustainable farming practise.
Dewhirst Land, Canterbury,
New Zealand
2025 project: Isaac Williams of Dewhirst Land in
Canterbury is a first-year grant recipient of the
a2™ Farm Sustainability Fund.
This farm’s project involves planting a variety of
pasture and adding beneficial bacteria and fungi
to the soil. The project aims to enhance soil health
by improving soil structure, promote biodiversity
by supporting a diverse ecosystem, and implement
sustainable farming practices to improve farm
profitability and protect the land for future
generations. This initiative has a strong focus on
driving nature positive outcomes, aligning with the
Company’s sustainability goals.
ISAAC WILLIAMS
OF DEWHIRST
LAND, a2™ FARM
SUSTAINABILITY
FUND GRANT
RECIPIENT
44

Bee and pollination
biodiversity pilot project
In collaboration with Ubees, a2MC launched an on-farm
biodiversity pilot project on one of its supplier farms in
the USA, aimed at supporting pollination and enhancing
ecosystem health.
Recognising the critical role bees play in agricultural
and natural systems, the project involved the installation
of 20 beehives equipped with smart sensors to monitor
pollinator activity and to provide insights to support
nature positive outcomes.
The project aims to better understand how pollinators
interact with farm environments and how their presence
can support nature positive practices, including improved
soil health and plant diversity.
LEO CLEARY,
CLEARY FARM,
a2™ FARM
SUSTAINABILITY
FUND GRANT
RECIPIENT
Cleary farm, NSW Australia
Leo and Sue Cleary, farmers in NSW Australia, have
received six grants from the a2™ Farm Sustainability
Fund since the programme began in 2017.
These grants have enabled continuous improvements
on their farm, advancing their sustainability journey
and contributing to the Company’s sustainability
goals.
Key achievements through funding include:
–Reduced fertiliser use.
–Improved water quality.
–Reduced greenhouse gas emissions.
–Enhanced animal welfare.
2025 Project: The Clearys’ latest project involves
using the Optiweigh system, a farmer-developed
technology to accurately weigh cows in real time
to optimise feed and pasture use. The project
is expected to enhance animal welfare through
optimised feeding regimes and better weight
management. It aims to significantly reduce
greenhouse gas emissions by improving feed
efficiency.
Additionally, the system is designed to reduce
labour inputs by automating weight monitoring.
By leveraging precise data, the Clearys will measure
these improvements over time, demonstrating
a clear return on investment and supporting the
Company’s sustainability targets. The Clearys’
journey showcases the impact of strategic grants
and sustainable practices in farming.
BEES FOR HUMANITY
BUILDING A SUSTAINABLE
GROWTH BUSINESS
45

Operational environmental
management
FY25 progress
Water usage and efficiency
–Water efficiency is a top priority for the Company’s manufacturing
facilities. Targeted initiatives across both MVM and Smeaton Grange
have led to a 13% reduction in water intensity.
Waste, wastewater and waste diversion
–Waste reduction is a key focus area for both MVM and Smeaton
Grange. Despite an overall increase in total waste generated due
to increased production volumes, landfill waste decreased by 4%,
and recycling increased by 17% compared to FY24. These results
reflect ongoing efforts to enhance resource recovery and minimise
environmental impact across operations.
Electricity consumption
–Electricity consumption increased in FY25 following the
commissioning of a new electrode boiler at MVM in FY24, removing
reliance on the site's coal fired boiler and reducing direct emissions
from on-site combustion through a transition to certified renewable
electricity-based energy input
3
.
Next steps
–Develop Environmental Management System for operated
manufacturing facilities.
The Company has an on-going focus on reducing the environmental impacts of our
operated manufacturing facilities, Smeaton Grange in Australia and Mataura Valley Milk
in New Zealand. Continued positive progress was achieved in FY25.
Environment management metrics
MetricFY25FY24
% change
FY24–FY25
Manufacturing Facilities
1
Total water usage (’000 litres)294,027314,071-6%
Water use intensity (litres/litre of milk) 1.4 1.6-13%
Waste water diverted to beneficial land application (litres) 1,356,984 1,133,90020%
Waste to landfill (tonnes) 65 68-4%
Recycling waste (tonnes) 1,439 1,22517%
Total waste (tonnes) 1,505 1,29416%
Waste diversion (recycled waste/total waste)95.7%94.7%1%
Electricity consumption (kWh)
2
19,000,00017,300,00010%
Electricity consumption (MVM electrode boiler) (kWh)
2
51,600,00025,300,000104%
Total electricity consumption (kWh)
2
70,600,00042,600,00066%
Positive change movement.
1 The table refers to operations at Smeaton Grange and MVM only.
2 This number has been rounded.
3 MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses
on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have
been independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel
sources, due to the nature of the electricity transmission and distribution system.
46

Sustainable packaging metricFY25Target
Recyclable packaging (by weight)
1
98%100%
Recycled content (by weight)
2
8%50%
Phase-out of single-use, problematic plasticsCompleteComplete
Drive recoveryRecycling logos on 82% of Australian
packaging.
APCO Members (Australia).
Oregon (USA) Extended Producer
Responsibility Scheme.
Appropriate messaging in each
market.
Support recovery programmes as
appropriate.
FY25 progress
–Conducted recycling market research in China and the USA to assess local recyclability of packaging sold into those markets.
–Launched 20% recycled plastic (HDPE) 2 Litre and 3 Litre fresh milk bottles from our Smeaton Grange facility.
–Further developed sustainable packaging action plan.
–Included sustainable packaging considerations in new product development process.
–Joined the Oregon and Colorado, USA, Extended Producer Responsibility Schemes.
–Achieved a 'beyond best practice' rating in Australia by the
Australian Packaging Covenant.
Next steps
–Continue implementation of sustainable packaging action plan.
–Implement opportunities to increase recycled content of
packaging materials.
–Verify recycled content of steel can packaging.
Sustainable packaging
Packaging is essential to the safety and quality of our products, but the Company recognises
the potential impacts of packaging on the Planet and is committed to making its packaging
as sustainable as possible whilst maintaining product integrity.
Sustainable packaging targets and commitments
50%
All packaging
recyclable by our
consumers, in their
local market
Recycled content
(across portfolio)
Phase-out of single-
use and problematic
plastics
Drive recovery
through consumer
messaging
1 Packaging metrics are calculated based on the volume (by weight)
of packaging placed on the market, determined by the number of
sales units per year. This includes all primary, secondary, and tertiary
packaging, excluding pallets, associated with products sold.
2 The recycled content does not include recycled content of steel cans,
as this data could not be verified.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
47

Progress towards our goals – Consumers
Consumers
Bring the unique benefits of pure and natural
a2 Milk™ to as many consumers as possible.
In this section:
Consumers 49
A differentiated proposition 50
Tr u e a 2™ ecosystem 50
Building brand equity 51
Regional marketing highlights 52
Research and development 54
48

Consumers
The Company has always been dedicated to providing the finest quality dairy nutrition
to the world. An aggressive innovation agenda in FY25 has seen the Company’s portfolio
expand significantly with the launch of multiple new products across a range of categories.
Combined with expansion into several new channels and markets, more consumers than ever
now have access to our range of a2
™
products.
In addition, the Company has continued to invest in marketing activity at record levels,
leading to significant volume and share gains in the majority of its key categories and markets.
Medium-term consumers targets
The Company’s trusted brand, proprietary know-how and
world-leading A1 and A2-type beta-casein protein expertise
are valuable assets. a2MC is committed to ongoing investment
to maintain and sustainably grow these assets, and focused
on the responsible marketing of safe, trusted and high-quality
dairy products to consumers.
We continue to grow the a2™ brand across all product
categories, building consumer awareness, penetration and
loyalty across the Company’s key markets.
Through ongoing commitment to scientific research and
development programmes, the Company is deepening its
expertise and advancing global understanding of the potential
health benefits of a2 Milk™. This science will underpin the
Company’s future product innovation, with the aim of bringing
the benefits of a2 Milk™ to a broader audience of consumers.
China label IMF
market share
in China
>5%
FY25: 5.5%
FY24: 4.7%
English label IMF
market share
in China
≥25%
FY25: 19.2%
FY24: 19.7%
1
Sale of Other
Nutritionals
in China
>$200m
FY25: $135m
FY24: $110m
SAMR registered
China label
products
≥3
During FY25, a2MC
secured access to an
additional potential
registration slot at
Synlait’s Dunsandel plant
Australia
dairy milk
market share
13%
FY25: 11.2%
FY24: 10.4%
Four key focus areas will ensure the Company can continue to
deliver a targeted and differentiated brand proposition and
product portfolio:
–Increase consumer understanding of the a2 Milk™
difference.
–Invest in science, nutrition and beta-casein understanding
and education.
–Build and strengthen our brand.
–Expand our product portfolio via focused innovation.
1 Source: Kantar, who recently had a panel upgrade
resulting in a restatement of their historical
data, which gave rise to a change in a2MC’s FY24
market share.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
49

Pioneering
science
Specially selected
cows
Dedicated
farms
World-class
processing
Advanced
testing
A commitment to quality
The Company is committed to the highest standards of
product quality and food safety, especially given a large
proportion of its products are consumed by infants, young
children and pregnant women. The Company has significant
proprietary knowledge and quality processes to deliver
products that achieve these standards, as well as compliance
with other market regulations and requirements.
This commitment is supported by:
–A comprehensive focus on A1/A2-type beta-casein protein
segregation and testing from farm to finished product.
–A priority focus on food safety and quality management
audited by accredited third-party verification agencies for
both self-owned and third-party manufacturing sites.
–Long-term partnerships with high quality third-party
manufacturers who share the Company’s focus and
ambition on social responsibility.
–Relevant certifications including ISO 9001 (IMF), MPI
RMP, SQF and BRC (GFSI recognised certification) at all
processing facilities.
–China Organic (COFCC) Certification for a2 Milk™ Instant
Whole Milk Powder and a2 Milk™ Skim Milk Powder
products, manufactured at MVM.
–Ongoing monitoring and compliance with relevant
regulatory requirements in the markets in which the
Company operates.
–Investment in people and training to ensure capability
to meet product quality and food safety standards.
The a2™ Difference
Dairy is great, A1 protein free is better,
a2™ is best
At The a2 Milk Company we believe in the power of
dairy, and delicious, nutritious milk is dairy at its
simple, natural best – foundational nutrition packed
with a range of nutrients essential for a healthy life
whatever your life stage.
But we have also always known that not all milk is
the same, and dairy can be done better. Sourced
exclusively from cows specially selected to naturally
produce milk with only A2-type protein and no A1,
a2 Milk™ is naturally free from A1 protein.
Ever since the pioneering science of our founders
unlocked the natural wonder of A1 protein free milk,
The a2 Milk Company has been exclusively dedicated
to sharing these benefits with the world.
A differentiated proposition
Tr u e a 2™ ecosystem
Tr u e a 2™ is our promise of exceptional
quality.
Representing 25 years of pioneering
experience and expertise, and an
unrivalled understanding of the A1
and A2-type beta-casein proteins,
the unique
True a2™ ecosystem consists
of five critical elements.
Tr u e a 2™ reflects our commitment
to uncompromising care, ensuring
that from our farms all the way to
families, the finest a2™ products reach
consumers in premium quality condition.
50

Building brand equity
Investment in brand
The Company is committed to increasing marketing
investment levels to continue improving brand equity in its
key markets of China, Australia and the USA. The Company
targets consumers who experience discomfort when
consuming products that contain A1 beta-casein protein, as
well as progressive and health-conscious consumers who are
drawn to the differentiated and premium quality proposition
that a2MC delivers.
When targeting consumers who would otherwise limit their
consumption of dairy products or avoid them altogether, the
Company’s marketing approach communicates the potential
health and wellbeing benefits of its branded products.
a2MC aims to welcome these consumers back to milk. Many
consumers and healthcare professionals report that people
who experience digestive issues drinking ordinary cows’ milk
may experience benefits when they switch to a2 Milk™.
Engaging new consumers
Having established a strong core product range, the
Company is committed to innovation and continuing to grow
its distinctive portfolio of premium products based on the
benefits of a2 Milk™. The approach to innovation varies
within each market, adapting to local consumer preferences,
category nuances, channel dynamics, regulatory requirements
and overall category maturity.
The Company’s product portfolio continued to expand in
FY25, with the introduction of several new products including
the a2 Genesis™ infant milk formula range and a range
of fortified milk powders including products developed
specifically for the needs of young children and seniors.
There has also been a focus on further geographic expansion
with the launch of a major strategic partnership and
introduction of a2 Platinum™ and a2 Gentle Gold™ in Vietnam,
as well as the relaunch of a2 Milk™ in Singapore. In addition,
the New Infant Formula Notification for long-term approval of
a2 Platinum™ has been submitted to the US Food and Drug
Administration (FDA) in the USA.
Responsible marketing
The Company’s approach to marketing infant nutrition aligns
to the core principle of supporting breastfeeding as the
primary form of infant nutrition. The Company has developed
a premium, high-quality range of infant nutrition products to
provide parents with an alternative when breastfeeding is not
an option.
The Company complies with local practices in each of its
active markets with respect to the marketing of IMF products.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
51

Regional marketing highlights
Key highlights:
–Launched several successful new products including innovative new formulated
milk powder for kids and a range of fortified milk powders for seniors.
–Invested in a record amount of marketing spend, including a collaboration
with trusted influencer ‘Daddy Lab’ focused on ‘A1 protein free’, as well as
an engaging ‘Brand Superiority’ campaign.
–Further progressed offline portfolio distribution
expansion into lower tier cities to recruit new users.
–Achieved record market share in China label IMF whilst
achieving top-4 share position in total China IMF market.
–Succeeded in recruiting new users with strong growth in
both consumers and share for early-stage a2
至初™.
Key highlights:
–Launched a2 Genesis™ infant milk formula range that combines HMOs, a2 Milk™,
prebiotics, and probiotics for our most premium, advanced formulation in the
English label portfolio.
–Launched a dedicated English label IMF marketing activity with leading e-commerce
platforms – ‘a2 Platinum™ Energetic Babies’.
–Achieved over 60% year-on-year growth in Vietnam, primarily driven by the
successful launch of a2 Platinum™, and the more recent launch of
a2 Gentle Gold™.
–Further established our footprint in Singapore, successfully
launching a2 Milk™ in major retail chains FairPrice and Cold
Storage.
–Delivered more than 25% year-on-year growth in South Korea
despite strong category headwinds, driven by additional ranging
with Coupang, South Korea’s leading e-commerce platform.
China
a2 Platinum™ was launched into China in 2013 followed by a2 至初 ™ in 2015 and our portfolio has since expanded
to include both China label and English label products across a range of categories including infant milk formula,
fortified milk powders and fresh milk. Our range can be accessed via multiple sales channels including domestic and
cross-border e-commerce platforms, reseller (Daigou) networks and retail stores.
International
While continuing to grow volume of English label IMF and other products into China, a2MC has also been focused
on expanding distribution of a2™ branded products into new markets. FY25 saw a major agreement signed with
Livewell for the distribution of a2 Platinum™ and other products into Vietnam, as well as an expanded footprint
for a2 Milk™ in Singapore.
52

Key highlights:
–Completed long-term application to sell IMF in the US and now in final stages of FDA review.
–Continued development of a2 Platinum™ with increases in share of voice and year-on-year volume
growth on Amazon.
–Grew the core liquid a2 Milk™ portfolio and refreshed its visual identity.
–Gained market share in liquid a2 Milk™ across both Conventional Grocery and Natural channels.
–Doubled a2 Milk™ Grassfed sales and attracted new users to the brand.
Key highlights:
–Grew the Australian IMF portfolio 18% year-on-year (MAT June 2025) in
grocery and pharmacy, delivering the fastest growth among the top eight
brands, driven by the launch of a2 Gentle Gold™.
–Won Product Review’s 2025 ‘Baby Formula Award’ in Australia for
a2 Platinum™ for the third consecutive year and also received the 2025
‘Highest Rated Toddler Milk Drink’ award from Tell Me Baby.
–Received the 2025 ‘Lunchbox Award’ in the Dairy Category for a2 Milk™
Full Cream UHT 200ml from Healthy Food Guide Australia.
–Increased dairy milk brand profile across Australian grocery channels with
further value share gains.
–Continued to drive growth in a2 Milk™ Lactose Free through distribution
gains and increased sales velocities.
–Strengthened consumer understanding of the A1 protein free difference.
–Delivered record high brand health metrics with continuing success of
‘Only a2™ will do’ brand campaign.
North America
In 2015, a2 Milk™ was launched in USA and has since established a loyal consumer base. Now available in
a range of variants, a2 Milk™ Grassfed has seen particularly strong growth in recent years. a2 Platinum™
joined the portfolio in 2024 and is currently awaiting full FDA approval.
In 2020, The a2 Milk Company signed a licensing agreement with Agrifoods International Cooperative Ltd
to produce, sell and market a2 Milk™ in the Canada market.
Australia and New Zealand
a2 Milk™ was launched in Australia in 2003 and has since become a leading fresh milk brand in grocery, available in a range of
variants and formats. a2 Milk™ Lactose Free has been a particular focus in recent years driving significant growth. Our range of
infant nutrition products including a2 Platinum™ and the recently launched a2 Gentle Gold™ are widely available through both
grocery and pharmacy channels. The Company is currently exploring licensee options to recommence supply of fresh a2 Milk™
in New Zealand, but its full cream and skim milk powders and UHT milk remain available to New Zealand consumers.
BUILDING A SUSTAINABLE
GROWTH2BUSINESS
53

1 Yang, F., Sun, Y., & Wang, Z. (2025). Effects of A1-type beta-
casein protein free bovine milk on mothers and infants: a
randomized double-blind controlled trial. Chinese Journal of
Perinatal Medicine, 28(07), 542–557. https://doi.org/10.3760/
cma.j.cn113903-20250127-00051.
2 Li, J., Yang, T., & Sheng, X. (2025). Effect of Infant
Formula Made With Milk Free of A1-Type ß-Casein
on Growth and Comfort: A Randomized Controlled
Trial. Food Science & Nutrition, 13(7), e70606.
3 Zhang, K., Sun, J., Han, M., Diao, Y., Xia, Y.,
Yang, C., & Robinson, S. R. (2025). Milk free of
A1 ß-Casein supports superior gains in cognition
and quality of life, relative to conventional milk, in
older adults with mild cognitive impairment. The
Journal of Nutrition, Health & Aging, 29(7),
100579.
Research and development
Investment in science and A1 protein free
understanding
As the pioneers of A1 protein free science, a2MC is also the
custodian of the category. The Company’s science priorities
have always aligned with its business strategy; and most
importantly, its consumer needs.
The science and nutrition functions are enablers to support
growth and delivery of key strategic priorities and decrease
risk to the business. The Company is increasing investment to
strengthen its global leadership in A1 and A2-type beta-casein
protein research, collaborating with a range of established
institutions and other partners.
Expanding our evidence base
The results of three new scientific studies conducted in China
and funded by a2MC were released in FY25. These studies
continued to expand our knowledge about A1 and A2-type
beta-casein in different demographics to those previously
investigated by the Company.
The outcomes of two of these new studies were showcased
at a recent major paediatric conference in Helsinki – The
57th Annual Meeting of The European Society for Paediatric
Gastroenterology Hepatology and Nutrition (ESPGHAN).
In the first study, an exploratory study, 25 Chinese
breastfeeding mothers consuming A1 protein free milk
experienced significantly improved gastrointestinal outcomes
coupled with a reduction in some markers associated with
systemic inflammation at day 14 compared to the 25 mothers
within the ordinary milk group. These benefits were also seen
in their exclusively breastfed infants at day 14
1
.
In the second study, a real world evidence study conducted
over eight weeks, the mixed fed infant group of 140 Chinese
infants consuming a combination of breastmilk and infant
milk formula made from a2 Milk™ experienced statistically
significant improvements in comfort including gastrointestinal
symptom relief, and fewer crying periods compared to those
who were mixed fed breastmilk and infant milk formula made
from conventional milk at weeks 2 and 4. Improvement in
results was observed through to week 8 of the study, with the
results at weeks 2 and 4 timepoints being significant
2
.
The third study focused on the benefits to cognition and
quality of life in older Chinese adults, and was recently
published in The Journal of nutrition, health and aging
3
.
Results of this study include:
–Daily consumption of two serves of ordinary skim milk or
A1 protein free skim milk over three months was beneficial
to a broad range of cognitive measures in 88 healthy
milk tolerant Chinese adults, aged 65–75 years with mild
cognitive impairment (MCI).
–Participants who consumed A1 protein free milk showed a
greater improvement in a range of cognitive measures and
in their reported quality of life.
Commitment to ongoing discovery
The Company will continue to invest in research and
development focused on:
–Benefits to consumers across life stages.
–Building on established and more recent research
outcomes.
–Expanding relationships and collaborations with credible
scientific partners.
–Working proactively with industry and government to raise
awareness and education around A1 protein free milk.
Ongoing investment in research supports a2MC’s efforts to
expand its scientific credibility, understanding and leadership
of A1 and A2-type beta-casein protein science, enabling its
application across industry and consumer education, as well
as brand.
54

Progress towards our goals – Shareholders
Shareholders
Create long-term, enduring value
for shareholders and maintain a
trusted, transparent relationship.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
55
BUILDING A SUSTAINABLE
GROWTH BUSINESS

The a2 Milk Company has more than 55,000 shareholders, many of whom are Australian and
New Zealand individuals and companies, including KiwiSaver and superannuation funds.
Our shareholders
The Company has an investor relations programme and is
committed to timely and transparent market communications,
guided by continuous disclosure obligations, to ensure that
shareholders are able to exercise their rights in an informed
manner. Our intention is to provide shareholders with all
relevant information about the Company. Our Shareholder
Communications Policy outlines our commitment to regularly
communicating with shareholders through a range of forums
(in-person and online) and publications (electronic and hard
copy). A copy of our Shareholder Communications Policy is
available on our website: thea2milkcompany.com/corporate-
governance.
We are committed to maintaining multiple communication
channels for shareholder communication and engagement,
which includes:
–Investor section of our website.
–Interim report.
–Annual report and an annual climate statement.
–Annual corporate governance statement and annual
modern slavery statement.
–Semi-annual earnings announcements via webcast and
audio conference.
–Semi-annual post-results briefings with analysts and
investors in New Zealand and Australia.
–Regular engagement with global investors in-person
and/or virtually.
–Regular ad hoc one-on-one and group investor and
analyst meetings.
–Annual meeting including virtual participation via webcast
and audio.
–Regular disclosures on Company performance and news.
–Investor strategy briefings.
Revenue
$2 billion
by FY27 or later
FY21 to FY25 12.0% CAGR
EBITDA % margin
In the teens
with year on year increases
FY24: 14.0%, FY25: 14.4%
Return on capital
employed (ROCE)
63.3%
1
Closing share
price growth
+21.5%
Earnings per share (EPS)
>10%
growth per annum
FY21 to FY25 26.6% CAGR
1 ROCE is defined as EBIT/Capital
Employed. Capital Employed is
calculated as total assets less current
liabilities and cash and term deposits.
56
Medium-term shareholder targetsOther metrics

Capital allocation framework
The Company’s capital allocation framework is enduring and prioritises investment in growth initiatives with the goal of creating
long-term value for shareholders.
Consistent with the Company’s growth strategy, priority is currently being given to transforming and de-risking a2MC’s supply
chain to capture the full potential of the China IMF market with investment opportunities focused on New Zealand and China.
The Company’s capital allocation framework is regularly reviewed by management and the Board.
Grow core business in existing marketsExpand the boundariesBalance sheet strength and flexibility
–Invest in building core business
including brand, product innovation
and channel development
–Develop execution capability
through investing in talent, systems,
quality, safety, infrastructure and
partnerships
–Transform supply chain and existing
market access
–Assess M&A opportunities to support
core business growth and supply chain
transformation
–Expand in existing markets with
new product categories
–Leverage existing products into
new markets
–Assess M&A opportunities to
expand boundaries
–Support business growth and risk
management initiatives
–Maintain a conservative cash
reserve to manage in an uncertain
environment
Available capital + operating cash flow
Capital allocation framework
Excess capital
Investment
Shareholder returns
Capital management
At the 2024 Annual Meeting, the Company announced the
establishment of a dividend policy. The policy targets a
payout ratio range between 60% and 80% of normalised
Net Profit After Tax (NPAT).
The Company announced its first interim dividend of 8.5 cents
per share in February 2025 which was paid to shareholders in
April 2025. This represented a payout ratio of ~67% of NPAT,
equating to approximately $61.5 million, and was fully imputed
and fully franked.
In August, as part of our FY25 results, a 2H25 dividend of
11.5 cents per share fully franked and partially imputed
at ~78% was announced, representing a payout ratio of
~75%, equating to approximately $83.4 million, to be paid
on 3 October 2025.
The total dividends announced by a2MC for FY25 were
20.0 cents per share representing a total payout ratio of
~71% which equates to approximately $145 million being
returned to shareholders.
On an ongoing basis, dividends are expected to be announced
on a semi-annual basis in February and August each year at
a level consistent with the payout ratio range.
In determining future dividends, a number of factors will be
taken into consideration, including market conditions, current
and future earnings, cash flows, capital requirements and the
Company’s financial position.
The Company intends to impute and frank dividends to the
maximum extent possible subject to available credits, noting
that imputation credits are limited.
The Board remains conscious of the Company’s significant
cash balance, which is being prioritised for supply chain
transformation, growth opportunities and risk mitigation.
As the Company continues to execute its strategy and
risk evolves, the Board will continue to review its capital
management options which may result in further returns to
shareholders, likely in the form of special dividends.
The announcement and payment of all dividends will be
subject to Board approval at the time.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
57
Other metrics

Risks and
opportunities
The management of risks and opportunities is an inherent and important part
of actively growing and developing a sustainable business.
Effective risk management anticipates risk, develops
strategies to manage risk and enables the Company to
capitalise on opportunities, which is critical to sustainable,
long-term value creation.
The Company’s Risk Management Policy outlines the
programme the Company has implemented to deliver
appropriate risk management within its processes, systems,
culture and decision making. A copy of the Risk Management
Policy is available at www.thea2milkcompany.com/corporate-
governance.
Governance of risk
The Board is responsible for the overall system of internal
control and has delegated responsibility for ensuring that
the Company maintains effective risk management and
internal control systems and processes to the Audit and Risk
Management Committee. The Audit and Risk Management
Committee reviews the risk profile, including material
business risks, and provides regular reports to the Board on
the operation of the internal control systems.
The Company’s management is responsible for designing
and implementing risk management and internal control
systems which identify material risks for the Company and
aim to provide the Company with warnings of risks before
they escalate.
Management implements the action plans developed to
address material business risks across the Company.
Management regularly monitors and evaluates the
effectiveness of the action plans. In addition, management
promotes and monitors the culture of risk management within
the Company and compliance with the internal risk control
systems and processes.
Management reports regularly to the Board regarding the
status of the risk management programme and reviews its
effectiveness with the Board.
The Committee and management may also refer particular
risk management issues to the Board for final consideration
and direction.
Approach to risk management
The Company’s approach to risk management is anchored
to ISO 31000 principles to ensure that robust foundations
support its processes and procedures and, in doing so, this
allows the Board to fulfil its governance responsibilities
by making a balanced assessment of the risk management
process. Risks are identified, assessed and monitored through
regular workshops with senior management and the Audit and
Risk Management Committee. Mitigating actions and controls
are designed to limit the likelihood of key risks occurring,
as well as the associated impacts if these risks occur. The
Company’s risk management approach evolves continually as
it identifies, assesses, monitors and mitigates both financial
and non-financial risks that may affect its ability to achieve its
strategic goals.
The Company has identified nine sources of risk and
opportunity relevant to its business activities. The pages that
follow provide an overview of each source of risk, including key
economic, environmental and social risks with the potential
to materially impact the Company’s ability to achieve
its objectives. They also summarise how the Company is
responding to those risks, as well as associated opportunities.
58

The nine sources
of key risk and
opportunity
The Company has
identified nine
sources of risk and
opportunity relevant
to its business
activities.

The supply of nutritional food products
The Company supplies food products for human consumption, including complex
nutritional products for consumption by infants and children. As a result, the
Company is inherently exposed to potential product quality, food safety and/or
food integrity events.
KEY RISKSKEY RESPONSES
Genuine, perceived or alleged food
safety and/or quality concerns
–Priority focus on food safety and quality management.
–Food safety and quality systems audited by accredited third-party verification agencies.
–Reliance on high-quality third-party manufacturing partners.
–Significant site upgrades of the Kyabram fresh milk processing facility in Australia with a
focus on improving efficiency and finished goods quality.
–Rigorous positive release protocols prior to the release of finished product.
–Expanded product portfolio to reduce reliance on individual products.
–Enhanced traceability systems and implemented across milk powder products with the
transition of manufacturing a2 Milk™ milk powder pouch products to NZ Nutritional Wellness
to improve efficiency and traceability.
–Counterfeit prevention enhancements through product and technology innovations.
–Dedicated customer careline covering all active markets providing a feedback mechanism
allowing the Company to quickly and proportionately respond to potential events.
–Testing of certain distributed products in selected markets by an independent third-party.
–Product liability and product contamination insurance coverage to reduce the financial
impact in the event the risk materialises.
Key Opportunities
An increasingly health-conscious society combined with the size and enduring nature of the nutritional food category provides
significant opportunity to:
–Leverage our pioneer status to promote the benefits of products made with a2 Milk™.
–Assert the Company’s competitive advantage in beta-casein testing and technology.
–Maximise the potential of our existing product portfolio in key markets.
–Explore opportunities to innovate and expand our existing product portfolio.
–Enter adjacent product categories to drive growth.
–Strengthen consumer trust through communication of the Tr ue a 2™ ecosystem – Our promise of exceptional quality.
The supply of
nutritional food
products
> Page 59
Competitive
intensity
> Page 60
Doing business
in international
markets
> Page 61
Major
international
events
> Page 62
Climate and
nature
> Page 63
Strategic
partnerships
> Page 64
Technology and
cyber security
> Page 65
Talent
and culture
> Page 66
Social licence
to operate
> Page 67
BUILDING A SUSTAINABLE
GROWTH BUSINESS
59

Competitive intensity
The Company has experienced significant growth over recent years, and is now a
top-4 brand in the China IMF market and the leading premium liquid milk brand in
Australia. This success has inspired others to compete with the Company in the
A2-type beta-casein protein segment.
KEY RISKSKEY RESPONSES
Market share erosion in core markets due to:
a) Chinese domestic brands’ potential to
resonate and connect more effectively
with local consumers than international
brands; or
b) unclear, misunderstood or undefined
A2-type beta-casein protein (or A1 protein
free) regulatory standards; or
c) the adequacy of the Company’s product
range to appeal to a broad consumer
group; or
d) the ability for the Company to compete
on price
–Use of consumer and health care professional education to ensure clear
understanding of the unique A2-type beta-casein protein proposition and benefits.
–Significant and ongoing investment in science, nutrition and innovation globally to
ensure the Company delivers unique consumer value propositions in all its markets
underpinned by its proprietary know-how and quality processes.
–Launched super-premium English label IMF product a2 Genesis™ targeting the
rapidly growing HMO formulation segment and expanded fortified milk powder
range targeting the growing kids and seniors segments.
–Commenced the Company’s first China-based production of fortified milk powder
products using a2 Milk™ milk powder produced at MVM.
–Signed an agreement to establish the a2™ Global R&D centre in China in
partnership with China State Farm strengthening the Company’s position
and continued focus on the China market.
–Plan to obtain additional China label registrations to expand the Company’s
IMF product portfolio.
–Significant and ongoing investment in brand building activities globally.
–Regular monitoring of market share data and proprietary research into consumer/
shopper insights, preferences and expectations.
–Continued investment in intellectual property to expand the Company’s trade
mark and patent portfolio.
Infringements of the Company’s intellectual
property (IP) rights resulting from
third-party conduct or claims against
such IP rights
–Monitoring infringement of the Company’s IP and taking action to protect it.
–Developed and deployed tailored internal training programme to educate business
about IP and trade marks.
Counterfeit products –Processes and technology to identify and manage potential counterfeit products
including the use of external agencies and in-market authentication testing.
–Development of the Tr ue a 2™ ecosystem, which includes independent product
audits and QR code verification systems to ensure the Company’s products are
of the highest quality and safety (see Tr ue a 2™ page 50).
Key Opportunities
While competitive intensity can present market share erosion risks, it also expands consumer awareness of the segment
and engagement with the benefits of a2 Milk™, encourages opportunities in relation to product innovation and allows
the Company to further leverage its pioneer premium brand status. Opportunities exist to:
–Emphasise the Company’s proprietary know-how and quality processes to deliver A2-type beta-casein protein products
that are of unrivalled quality.
–Invest in science, nutrition and innovation to continue to pioneer the future of dairy and the A2-type beta-casein protein
segment as well as explore new opportunities.
–Drive awareness and education of the Company’s unique A2-type beta-casein protein proposition and benefits
to increase the consumer base.
60

Doing business in international markets
With the Company’s expanding geographical footprint, it is exposed to various
risks and opportunities associated with conducting business in international
markets. With the limited shelf life of IMF, in-store product freshness is a key
consumer consideration. Accordingly, the Company is inherently exposed to
any supply chain disruptions including manufacturer supply constraints, positive
release testing anomalies, overseas shipping and customs clearance delays and
over-land distribution interruptions.
KEY RISKSKEY RESPONSES
Supply chain disruptions
impacting timely supply
and fulfillment of orders
in full and on time
–The Company resolved the various disputes with Synlait in August 2024 which included the cancellation
of Synlait’s manufacturing and supply exclusivity rights for a2 Platinum™ stages 1–3, providing
additional flexibility to a2MC to reduce reliance on a single source supplier and further enable its supply
chain transformation strategy.
–Safety stocks held to provide buffer against disruptive events.
–Contractual obligations with key manufacturing partners to procure and hold raw material safety stocks.
–Strengthened sales and operational planning protocols.
–Preferential terms within key manufacturer agreements prioritising a2MC product over competitors.
–Strengthened strategic and collaborative partnerships with Chinese State-owned enterprises.
–Entry into China
1
based manufacturing in partnership with Howell reducing the lead time from finished
goods production to customer delivery for some products.
Changing macro trends
(including demographic,
economic and social
trends), which can impact
the size of the addressable
markets and/or the
complexity of operating
in those markets (e.g.
declining China birth rates)
–Focus on innovation and new product development to broaden portfolio and addressable markets.
–Launched super-premium English label IMF product a2 Genesis™ targeting the rapidly growing HMO
formulation segment and expanded fortified milk powder range targeting the growing kids and seniors
segments.
–Continued strong investment in brand to grow share.
–Agile approach to the execution of sales and marketing programmes, adjusting where appropriate
to reflect shifts in consumer and channel dynamics.
–Leverage multi-label, multi-channel portfolio to broaden distribution.
Geopolitical tension and
regulatory environments
influencing channels to
market, market access,
product registrations, trade
tariffs, taxes and quotas
–Signed an agreement to establish the a2™ Global R&D centre in China in partnership with China
State Farm.
–Strong understanding of local standards, regulations and guidelines supported by expert
in-market advice.
–Strong strategic and collaborative partnerships with Chinese State-owned enterprises.
–A multi-product, multi-channel route-to-market strategy for the sale of IMF into China.
Foreign currency exchange
rate volatility
–Treasury management activities, providing oversight and monitoring of foreign currency exposures
with some cash flow hedging.
Long-term approval
of USA IMF
–Submitted the New Infant Formula Notification (NIFN) to seek FDA approval for the sale of USA IMF
product beyond the period of Enforcement Discretion.
Concentration risk in China –Strategic priority to explore new market opportunities.
–Commenced IMF sales of a2 Platinum™ and a2 Gentle Gold™ into Vietnam in FY25.
Key Opportunities
Doing business in international markets provides opportunities for the Company to fulfil its vision of creating an A1-free
world. These include:
–Significant further growth potential of IMF and other products in China, the largest and most attractive market for infant
nutrition globally.
–Exposure and potential entry into attractive new markets (e.g. South East Asia, and IMF in North America).
–Ability to leverage the unique benefits of a2 Milk™ to engage with consumers in international markets.
–Operational resilience through developing and leveraging enduring strategic relationships.
–Experience sharing of consumer and product insights across markets.
1 Refer to page 19 for detail on partnerships.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
61

Major international events
Pandemics, epidemics, outbreaks of animal diseases, international conflicts and
natural disasters can cause unprecedented social, economic and supply chain
disruptions globally.
KEY RISKSKEY RESPONSES
Route-to-market disruption and
transport cost volatility
–Continued close cooperation with Synlait and other suppliers to maintain continuity
of infant milk nutrition supply, and with third-party suppliers in Australia and the
USA to maintain continuity of liquid milk supply.
–Multiple warehousing locations in China to mitigate supply chain disruptions.
–Strong inventory surveillance and reporting to maintain stock control and availability
through the supply chain.
–Safety stock held to provide buffer against market disruptions.
–Transitioned production of a2 Platinum™ Stage 4 IMF to MVM and another new
commercial IMF supply chain partner (New Zealand New Milk, a subsidiary of
Lactalis) to provide a degree of site diversification.
–Broadened supply chain partnerships further by adding a new commercial IMF supply
chain partner (Yashili, subsidiary of Mengniu) for production of a2 Gentle Gold™ and
a2 Genesis™.
–Entry into China based manufacturing in partnership with Howell de-risking some
route-to-market risks for some products.
Health and wellbeing of our people –Robust infection control protocols in line with all relevant government requirements,
particularly across the Company’s manufacturing facilities.
–Investment in internal resources and systems focused on the health and safety
of our people.
Inflationary pressures creating
a) volatility in operating costs and
availability of ingredients and
raw materials; and
b) cost-of-living pressures
–Use of long-term milk supply agreements in certain markets.
–Forward procurement of key ingredients to stabilise price and ensure availability.
–Dual sourcing of supply for certain ingredients.
–Strong premium brand providing platform for cost recovery to varying extent through
wholesale price adjustments.
–Investment in internal procurement team focused on procurement of product input
costs as well as operating expenses.
Potential animal disease incursions
impacting the ability to supply
export markets
–Assist farmers with farm biosecurity plans and preparedness.
–Ongoing refinement of business continuity and crisis management frameworks and
procedures including simulations to mimic real life events.
Key Opportunities
The Company’s response to global events provides opportunities to enhance our profile in existing markets,
and provide support to disrupted markets.
–Consumer share gain opportunities through product availability in supply-constrained
environment.
–The Company’s structure and culture provides agility to rapidly respond to global
events.
–New market/product opportunities where the Company is able to positively
respond more quickly than competitors.
62

Climate and nature
Being heavily dependent on agricultural inputs, the Company is exposed to
short-, medium- and long-term climate and environmental risks, including
physical risks resulting from acute and chronic changes in climate, and transition
risks resulting from regulatory or market pressures associated with on-farm
emissions (refer to the Companyʼs Climate Statement).
KEY RISKSKEY RESPONSES
Negative impacts to the environment
from the Company’s operations and
value chain, including the Company’s
contribution to climate and nature
change
–Invested, and actively engaged, in collaborative industry research on on-farm
emissions reductions through the AgriZero
NZ
joint venture.
–Established Scope 1, 2 and 3 greenhouse gas emissions baseline and progressing
roadmap for GHG emissions reductions.
–Monitoring and tracking water consumption, waste-to-landfill, water efficiency and
energy usage at manufacturing facilities.
–Monitoring and tracking targets set for recycled content, recyclability and the phase-
out of problematic plastic for a2MC branded product packaging (refer to page 47).
–Sourcing milk from diversified milk pools within New Zealand, Australia and the USA
and incorporating climate impact considerations into future sourcing strategies.
–Investing in new technologies and emissions reduction initiatives, such as upgrading
the coal-fired boiler at MVM to high-pressure electrode using renewable energy
1
.
–Requirement for all certified A1 protein free farms supplying a2MC to have farm
environmental plans in place, addressing the most material aspects of environmental
management in the dairy industry.
–Continued support for the a2™ Farm Sustainability Fund to assist farmer-led
sustainable dairy farming projects.
Risk of natural disasters (e.g. flooding,
drought, earthquake), particularly in
Dunsandel given the China label product
registration can only be made at that
specific site
–Diversification of processing locations and new supplier relationships established in
New Zealand.
–Ongoing access to milk pools that exceed the Company’s current usage requirements
and incorporating climate impacts into future sourcing strategies.
–Plan to obtain additional China label registrations.
–Insurance coverage to reduce the financial impact to the Company in the event the
risk materialises.
Risk of non-compliance with upcoming
ESG standards, given change in regulatory
environment across the jurisdictions in
which it operates
–Obtaining external assurance over climate and other sustainability metrics, including
various sections of the Company’s Climate Statement.
–Early adoption of required ESG reporting standards where possible.
Key Opportunities
Acknowledging climate and nature risks provides significant opportunity for the Company to play a leading role in driving
industry change and build trust with increasingly climate-aware consumers. Ensuring climate scenarios and modelling are
considered in medium-term and long-term strategic planning will enable the Company to develop operational resilience.
Opportunities exist to:
–Develop operational resilience by incorporating climate and nature scenario modelling into long-term strategic planning.
–Strengthen brand and social positioning via meaningful position in GHG emissions reduction, recyclable packaging and
sustainable farming practices.
–Realise increased productivity and efficiency via new technologies and practices that lower emissions and
environmental impact.
–Enhance our climate risk modelling and disclosures.
–Develop a positive nature contribution strategy, and report on nature contributions within our value chain.
1 MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses
on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have
been independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel
sources, due to the nature of the electricity transmission and distribution system.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
63

Strategic partnerships
The Company’s success has been underpinned by relationships with key
strategic partners
1
, including critical supply and distribution partners. As a result,
the business is inherently exposed to the operations of key partners changing in a
material way, or as the result of one or more partners reprioritising their support
for the Company.
KEY RISKSKEY RESPONSES
Disruption to key partner operations
impacting supply and/ or access to
critical markets
–A broad range of strategic partner relationships have been developed over time.
–Maintained shareholding in Synlait following equity raise in 2024. Refer to page 19.
–Supplier diversification through driving insourcing and innovation at MVM to mitigate
current supplier concentration in IMF.
–Strong partnership with China State Farm Agribusiness, the Company’s exclusive
import agent and master distributor for its China label products.
–Strategic partnership with Yuou, a leading Offline-to-Online distributor in China
that operates ~1,500 Momtime (China’s premier O2O network) stores and a digital
platform, Yuncang, that services over 16,000 stores.
Key partners reprioritising their support
for a2MC or failing to act ethically or in
line with a2MC’s values
–Supported Synlait through an equity raise. Refer to page 19.
–A controlling 75% interest in MVM supports growth of the Company’s nutritionals
business.
–Commercial supply chain partnerships with New Zealand New Milk, subsidiary
of Lactalis; and Yashili, subsidiary of Mengniu.
–Pursuing additional M&A, joint venture and alliance opportunities with IMF
manufacturers to further diversify supplier risk in the longer term.
–Stabilised our EL IMF distribution network, supported by more transparent
partner relationships and greater level of transparency through enhanced
traceability systems.
–Multiple milk processors contracted in Australia and the USA, mitigating reliance
on a single processor in these regions.
Ability to ensure timely supply of finished
products to customers
–Ongoing access to milk pools that exceed the Company’s current usage requirements.
–Access to manufacturing capacity that exceeds current usage requirements.
–Entry into China based manufacturing in partnership with Howell for a new fortified
seniors nutrition range of three products using a2 Milk™ milk powder produced
at MVM.
Key Opportunities
The Company’s key partnerships provide significant opportunities including:
–Access to high quality manufacturing capability and capacity to support growth ambitions.
–Access to international markets (including opportunities to expand product registrations).
–Opportunities to diversify supply chain partners over time to build operational resilience.
–Access to lower tier cities in China through strategic partners that have a physical and online presence in regional locations.
1 Refer to page 19 for detail on partnerships.
64

Technology and cyber security
Technology continues to be used by the Company as a key enabler to build
awareness of the effects of A1 protein, and promote brand loyalty, process
transactions, forecast sales, manage inventory, manage product purchases and
deliveries and manage operational production, quality and product traceability
amongst other functions. Secure and uninterrupted availability of technology
solutions is a crucial element of the value creation chain.
KEY RISKSKEY RESPONSES
Cyber-attacks (including ransomware)
and unauthorised disclosure of, or loss of,
confidential data/information
–Continuing to enhance cyber security systems, processes and protections, partnering
with specialised third parties to assist with 24/7 monitoring.
–Expanding the use of sophisticated cyber tracking and monitoring tools covering
areas including email and sensitive data loss.
–Mapping, classification and restricting access to sensitive and private information.
–Continuing to conduct cyber security audits and third-party risk assessments.
–Ongoing strategy of deploying Software as a Service (SaaS) solution, e.g. Oracle
Cloud, which significantly reduces the risk associated with on premise systems,
data and supporting hardware.
–Conducting cyber drills to test and refine organisational preparedness and incident
response plans.
Reliability/stability of critical
applications
–Continued transitioning core functions to Tier 1 cloud-based enterprise resource
planning (ERP) software, e.g. Human Resources and expense management.
–Implementing best of breed cloud-based solutions for functions which are outside
the scope of ERP, e.g. Product Quality Management system and Workplace Health
Safety & Wellbeing risk management system.
–Consolidating multiple cloud environments to a single instance with common change
and administrative processes.
–Testing of backup and restore systems and processes to ensure business continuity
in the event of interruptions.
Key Opportunities
Advances in technology also present significant opportunities, including:
–Digital platforms that support consumer engagement and marketing initiatives.
–Real-time data combined with the use of Artificial Intelligence (AI) to drive insights and enhanced decision making.
–Expanding the use of emerging product technologies including QR codes and supply chain traceability systems.
–Increased automation of quality, warehousing, sales and operations planning, sales and distribution processes over time.
–Continued integration of customers and suppliers via EDI and other e-commerce solutions.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
65

Talent and culture
The Company relies on the talent and wellbeing of its people and the efficacy
of its culture to drive commercial outcomes and deliver its strategic priorities.
The loss of business-critical skills or the inability to identify, attract and
retain qualified people could have a direct impact on managing business
operations successfully.
KEY RISKSKEY RESPONSES
Failure to adequately protect the physical
and psychological health, safety and
wellbeing of our workforce resulting in
harm, impact on business operations
and reputational damage
–Investment in dedicated programmes and resources that support and protect the
Company’s people including ‘critical risk verification’, ‘safety non-negotiables’,
‘driver safety and fatigue management’ and ‘manual handling’ training.
–Continued investment in ‘mental health awareness’ and ‘mental health first aid’
training for leaders.
–Investment in a new safety event reporting system that provides access to reporting
safety events either on-site or at remote locations enabling the triage of incidents in
real time.
Sub-optimal organisational culture
(including the ability to attract, retain
and develop capable talent)
–Capability planning and organisational design is reviewed by the ELT annually to align
with the Company’s strategic refresh process.
–Strong cultural values, complemented by monthly and annual acknowledgement
and reward programme for those exhibiting the values in day-to-day activities.
–Regular surveys to monitor engagement and drive targeted people initiatives.
–Alignment of remuneration to market benchmarks, annual third-party review of job
grading and gender pay parity.
–Regular talent discussions at ELT level.
–A rigorous recruitment and selection process with structured induction/onboarding.
–Continued evolution of the operating model to reinforce talent and ‘bench strength’
at all levels and functions.
–Successful renegotiation of the Enterprise Bargaining Agreement at Smeaton Grange.
–Investment in formal and on-the-job learning and development opportunities to
support individual development plans.
–Evolution of our operating model to support and promote global mobility, cross-
functional skills transfer and promoting from within.
Key Opportunities
Providing a safe, diverse, inclusive and engaging working environment is fundamental to attracting, developing and retaining
talent. The opportunity to grow capability, and attract talent, exists through:
–Amplifying the unique attributes of working at the Company and our aspiration to be an employer of choice in the sector.
–Nurturing the inherent energy, passion and enthusiasm that working for a trusted and unique brand attracts.
–Promoting the employee experience, fostering a learning environment, and celebrating diversity and inclusion.
–Cultivating our purpose-driven culture.
66

Social licence to operate
Acting and operating in an ethical manner – consistent with the expectations
of the Company’s shareholders, customers, consumers, suppliers, regulators,
governments, communities and other stakeholders – protects the Company’s
reputation and economic sustainability. A real or perceived abuse of our social
licence to operate could result in significant brand damage, financial loss, and
the loss of strategic partnerships.
KEY RISKSKEY RESPONSES
Non-compliant or sub-standard
animal welfare practices
–Farms are required to be certified under our robust welfare programme which is independently
audited and verified annually. On-farm support, specialist training and advice is provided to
the Company’s farmers. The Company also conducts milk monitoring and comprehensive
independent and internal audits of the Company’s third-party farms.
–The requirements of the programme are reviewed annually by external experts, with a view to
continuously advancing standards over time. Animal welfare is continually evolving on a2MC
farms to align with science, evidence and consumer expectations.
Responsible marketing
(e.g. promotion of breast milk
substitutes)
–The Company is a member of Infant Nutrition Council (INC) which includes obligations to comply
with the INC Code of Practice for Marketing of Infant Formula in New Zealand.
–While the Marketing in Australia of Infant Formula: Manufacturers and Importers Agreement
1992 is no longer in force, the Company continues to market its products in Australia in
alignment with the principles in the agreement.
–Cross-functional approval process (including regulatory and legal review) prior to publication
of marketing material.
Modern Slavery in the supply
chain (refer to page 34)
–Modern slavery risk management programme, including Modern Slavery Response Protocol,
Modern Slavery Remediation Plan and related actions plans and annual Modern Slavery
Statement submission.
–Mapping supply chains and assessing inherent risks of modern slavery by region and industry
type.
–Corporate values and a suite of corporate codes and policies developed and embedded
(including a Code of Ethics and a Responsible Sourcing Policy).
–Company-wide modern slavery awareness training, including more in-depth training for key
stakeholders.
–Launched a cross-functional modern slavery working group to drive the Company’s action plan
for modern slavery.
–Created an information hub about modern slavery for a2MC Team Members.
–Supplier engagement and due diligence.
Potential bribery and
corruption allegations
–Corporate values and a suite of corporate codes and policies developed and embedded
(including an Anti-Bribery and Anti-Corruption Policy and Gifts and Hospitality Policy).
Water usage, waste-water
and water pollution
–Farm Environmental Plans in place at all supply farms, including responsible water use and waste-
water management.
–Water use monitoring systems in place at MVM and Smeaton Grange milk processing sites.
–Undertaking water usage reduction projects and utilisation of a waste-water treatment system
on-site at Smeaton Grange, with liquid waste products returned to farms and used as fertiliser.
–Farmer grant programme to support farmer-led sustainable dairy farming projects, including
riparian planting to reduce waterways pollution from farms, through a2™ Farm Sustainability Fund.
Key Opportunities
The Company’s purpose to pioneer the future of Dairy for good refers to a significant leadership opportunity to do business
the right way and exceed stakeholder expectations in doing so. This includes:
–Aspiring to lead the market in making a positive contribution to society. For example, to set and monitor industry-leading
standards for animal welfare on the Company’s supplier farms and to commit to engage and invest in the communities in
which the Company operates through proactive programmes as well as reactive support in times of need.
–Strengthen brand and social positioning via minimising its impact on the planet, including contributing to nature positive,
making meaningful progress each year towards emissions reductions and continually advancing recyclable packaging
and sustainable farming practices.
BUILDING A SUSTAINABLE
GROWTH BUSINESS
67

Corporate
governance
The Company is committed to maintaining the highest
standards of corporate governance. The Company’s corporate
governance framework has been established to ensure
that Directors, officers and employees fulfil their functions
responsibly, whilst protecting and enhancing the interests
of shareholders.
Good corporate governance adds to the performance of
the Company, creates shareholder value and engenders the
confidence of the investment market.
The Company’s corporate governance framework has been
developed with regard to:
–the NZX Corporate Governance Code dated 31 January 2025
(NZX Corporate Governance Code).
–the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations, 4th Edition
(ASX Principles).
For FY25 the Company’s corporate governance framework
complied with the recommendations in the NZX Corporate
Governance Code and the ASX Principles.
Corporate Governance Statement
The Company’s Corporate Governance Statement, which is
current as at 30 June 2025 and approved by the Board, can be
found at thea2milkcompany.com/corporate-governance.
The Board
Role of the Board and delegation of authority
The Board is responsible for the overall governance and
operations of the Company, guiding the Company’s strategic
direction, monitoring risk, and overseeing the activities of
management. All issues of substance affecting the Company
are considered by the Board, with advice from external
advisors as required.
The role and responsibilities of the Board are set out in
the Board Charter, available on the Company’s website at
thea2milkcompany.com/corporate-governance. These include
matters relating to the Company’s strategic direction,
financial performance, executive management, audit and
risk management, business planning, corporate governance
and disclosure, performance evaluation, workplace health
and safety, ethical conduct, and determining the Company’s
sustainability, risk management and strategy implementation,
including to respond to the Company’s environmental and
social sustainability risks and opportunities.
The Board delegates certain functions to its standing
Committees. Other committees may be established from
time to time with specific responsibilities as delegated by
the Board.
The diagram opposite illustrates the Company’s corporate
governance framework.
Audit and Risk Management Committee (ARMC)
The principal purpose of this Committee is to assist the
Board in fulfilling its corporate governance and oversight
responsibilities in relation to the Group’s risk management
and internal control systems, accounting policies and
practices, sustainability and climate risk management
and strategy implementation, internal and external audit
functions, and corporate reporting, including sustainability
reporting. The ARMC meets regularly throughout the year,
holding meetings and workshops (FY25: five total). Under the
ARMC Charter, the ARMC is required to meet at least twice
per year.
People and Remuneration Committee (PRC)
This Committee assists the Board in overseeing the design
and implementation of appropriate people and remuneration
policies and practices for the Company, to ensure the
Company can deliver on its business objectives, remuneration
is fair and current, and the Company is compliant with
relevant laws, regulations and applicable listing rules.
The PRC meets regularly throughout the year, holding
meetings and workshops (FY25: three total). Under the PRC
Charter, the PRC is required to meet at least once per year.
These Board Committees are governed by charters detailing
their specific functions and responsibilities. Copies of the
Committee charters are available at thea2milkcompany.com/
corporate-governance.
68

(i) Accountability and reporting of corporate governance and Board related matters.
(ii) Board delegates all matters except those reserved for the Board or its Committees.
(iii) Internal audit/external audit/legal and other professional advice.
(iv) Responsible for day to day operations; leads the Executive Leadership Team.
(v) Implements strategy and business plans; manages performance and behaviours of teams.
Governance framework
Accountability
and reporting
Company
Secretary
(i)
Independent
assurance
(iii)
Delegation
and oversight
(ii)
Delegation
and oversight
Delegation
and oversight
Accountability
and reporting
Accountability
and reporting
Board of
Directors
Board
Committees
(ARMC and
PRC)
CEO
(iv)
Executive
Leadership
Team
(v)
Board size, skills and structure
The Company’s constitution provides for a minimum of four
directors and a maximum of eight, of which at least two must
be ordinarily resident in New Zealand to comply with the
NZX Listing Rules. During the reporting period, the Board
comprised between five and six independent non-executive
directors and one executive director, the Managing Director
and CEO, David Bortolussi. Warwick Every-Burns and David
Wang retired from the Board with effect from 22 November
2024 and 31 December 2024 respectively. Tonet Rivera
and Lain Jager were appointed to the Board with effect
from 1 November 2024 and 1 December 2024 respectively.
Following the end of the reporting period, Grant Dempsey
was appointed as an independent non-executive director,
effective from 1 September 2025. Noting his appointment date,
he has not been included in the disclosures in this section.
Pip Greenwood, Kate Mitchell and Lain Jager are New Zealand
residents.
Skills
The Board comprises directors with a diverse range of
skills, experience and backgrounds to support the effective
governance and robust decision-making of the Group.
The skills matrix set out on the following page describes
the combined skills, experience and expertise presently
represented on the Board, but also recognises the skills and
experience that the Board considers are required to effectively
govern the Group now and in the medium-term. To the extent
that any skills are not directly represented on the Board, they
are augmented through management and external advisors.
CORPORATE
GOVERNANCE
69

NO. OF DIRECTORS
(TOTAL OF 6)
CAPABILITY
LEVEL OF CAPABILITY
HIGHMEDIUM
Consumer products and innovation – experience as a senior executive in, or as a professional advisor
to, consumer products businesses, including sales and marketing, product innovation and supply chain
31
Digital, data and technology – experience and expertise in e-commerce as well as identifying, assessing,
implementing and leveraging digital and other technology, understanding the application
and use of data and analytics, and responding to digital disruption
11
Financial acumen – understanding of financial statements and reporting, key drivers of financial
performance, corporate finance and internal controls
23
Food manufacturing safety and quality – technical or managerial experience relating to food, food
product development, manufacturing and implementation and management of safe practices for the
sourcing, production, transport and distribution of perishable foods
20
Governance – experience in and commitment to the highest standards of corporate governance, including
as a non-executive director of a listed company, large or complex organisation or government body
22
International markets – experience as a senior executive in, or as a professional advisor to, international
businesses and exposure to global markets and a range of different political, regulatory and business
environments
24
Leadership – experience in a senior management position in a listed company, large or complex
organisation or government body, including experience in leading strategy development and execution
33
People and culture – experience in overseeing workplace culture, people management, development
and succession planning, setting remuneration frameworks and promoting diversity and inclusion
23
Risk management – experience in identification, assessment, monitoring and management of material
financial and non-financial risks and understanding, implementation and oversight of risk management
frameworks and controls
23
Strategy and M&A – development of corporate and business unit strategy and/or mergers, acquisitions
and alliance structuring and execution
32
Environment and social – understanding and experience in sustainable practices to manage the impact of
business operations on the environment and community and assess and manage climate and nature risks
and opportunities
21
The Board skills matrix identifies the predominant skills of each director. Directors are assessed as ‘high capability’ or ‘medium
capability’ on skills outlined in the Board skills matrix, based on their professional or non-executive experience relating to a
skill. Directors initially provide a self-assessment rating which is then reviewed by the Board each year. The Board has limited
each director to having a maximum of four areas identified as ‘high capability’ and four areas as ‘medium capability’. A director is
considered to have ‘high capability’ where the director has deep experience or expertise in relation to the capability while a director
is considered to have ‘medium capability’ where the director has some experience or expertise in relation to the capability.
Director induction and ongoing training
Following appointment to the Board, directors undergo a tailored induction programme to learn about the Company. The
induction programme covers the Company’s strategy, structure, operations, culture, risks and financials, and includes meetings
with key executives. New directors are also provided with copies of key governance documents.
The Board undertakes market visits, including visiting manufacturing facilities, on a regular basis to ensure that directors remain
informed of market conditions and the environment in which the Company does business. The Board is also provided with
training on relevant subjects each year, either from subject matter experts from within the Company or from external providers.
All directors are expected to maintain the skills required to discharge their obligations to the Company.
Board performance
The Board recognises the importance of regularly monitoring and improving its performance. The Board internally assesses its
performance annually. It typically engages an external party to assist with this process every second year, with an internal review
in alternating years. The Board completed an internal survey to provide feedback on the Board’s FY25 performance. The results
were discussed by the Board and actions agreed by the Board. The Board renewal and succession planning process, which was a
key focus following the FY24 review, was progressed during FY25 with the appointments of Tonet Rivera and Lain Jager and, more
recently, with the appointment of Grant Dempsey as an independent non-executive director from 1 September 2025.
Board Committees
The Board’s standing Committees facilitate and assist the Board in fulfilling its responsibilities. Other committees may be
established from time to time with specific responsibilities as delegated by the Board. The composition of the Committees as at,
and throughout the financial year ended, 30 June 2025 is set out on the opposite page.
70

COMMITTEEMEMBERSINDEPENDENTNON-EXECUTIVE
Audit and Risk Management CommitteeKate Mitchell (Chair)
✓✓
Tonet Rivera
1
✓✓
Sandra Yu
✓✓
David Wang
2
✓✓
People and Remuneration CommitteeSandra Yu (Chair)
✓✓
Pip Greenwood
3
✓✓
Lain Jager
4
✓✓
Warwick Every-Burns
5
✓✓
David Wang
2
✓✓
1 Tonet Rivera was appointed with effect from 1 November 2024.
2 David Wang retired on 31 December 2024.
3 Pip Greenwood became a member of the People and Remuneration Committee on 23 November 2024.
4 Lain Jager was appointed with effect from 1 December 2024.
5 Warwick Every-Burns retired on 22 November 2024.
Attendance at Board and Committee meetings
Director attendance at Board and Committee meetings during FY25 is set out below.
MEETINGS OF
THE BOARD
5

AUDIT AND RISK MANAGEMENT
COMMITTEE
6

PEOPLE AND REMUNERATION
COMMITTEE
7
HELDATTENDEDHELD ATTENDEDHELD ATTENDED
Pip Greenwood (Chair) 98––21
David Bortolussi
(Managing Director and CEO)99 ––––
Lain Jager
1
66––22
Kate Mitchell9944––
Tonet Rivera
2
7733––
Sandra Yu994422
Warwick Every-Burns
3
33––––
David Wang
4
4221––
Held: meetings held during the period for which the person was a director or Committee member.
1 Lain Jager was appointed with effect from 1 December 2024.
2 Tonet Rivera was appointed with effect from 1 November 2024.
3 Warwick Every-Burns retired on 22 November 2024.
4 David Wang retired on 31 December 2024.
5 In addition to the formal Board meetings, the Board also had one workshop to prepare for formal meetings and discuss any issues as they arose.
6 In addition to the formal Audit and Risk Management Committee meetings, the Committee also had one workshop to prepare for formal meetings and
discuss any issues as they arose.
7 In addition to the formal People and Remuneration Committee meetings, the Committee also had one workshop to prepare for formal meetings and
discuss any issues as they arose.
Corporate governance policies
The following policies, each of which has been prepared having regard to the NZX Corporate Governance Code and the
ASX Principles, are available on the Company’s website at thea2milkcompany.com/corporate-governance:
–Code of Ethics
–Shareholder Communication Policy
–Continuous Disclosure Policy
–Global Whistleblower Policy
–Diversity and Inclusion Policy
–Global Anti-Bribery and Anti-Corruption Policy
–Risk Management Policy. Refer to the discussion
of this policy commencing on page 58.
–Securities Trading Policy
–Responsible Sourcing Policy
The Board regularly reviews the performance and effectiveness of the Company’s corporate governance policies and procedures
and, if appropriate, amends those policies and procedures or adopts new policies or procedures, to uphold the integrity of the
Company’s corporate governance framework.
CORPORATE
GOVERNANCE
71

Directors
Pip Greenwood
Chair and Independent,
Non-executive Director
Bachelor of Laws (LL.B.)
(University of Canterbury,
New Zealand)
Pip has been a director of the Company since 1 July 2019, and Chair since November 2023.
Pip also sits on the People and Remuneration Committee.
Currently Pip is also the Chair of Westpac New Zealand and a director of Fisher & Paykel
Healthcare and Westpac Banking Corporation. She was previously a director of Spark New
Zealand and Vulcan Steel. Prior to becoming a full time director, Pip was a senior partner at law
firm Russell McVeagh, where she spent over 10 years on the firm’s Board including acting as the
firm’s Board Chair and interim CEO.
Pip brings extensive commercial and board experience to The a2 Milk Company Board. A leader
in the field of corporate law and in the New Zealand business community, she is the recipient of
numerous industry awards including being named New Zealand ‘Dealmaker of the Year’ at the
Australasian Law Awards, an accolade she has won five times; and she has twice been recognised
as a finalist at the Women of Influence Awards.
Pip resides in New Zealand.
David Bortolussi
Managing Director
and CEO
Bachelor of Commerce
(University of Melbourne),
FCA, F FIN, MAICD
David joined a2MC in February 2021 when the business was being disrupted by COVID-19. Under
David’s leadership, the Company has turned around its sales performance, refreshed its growth
strategy, renewed its ELT, invested significantly more in brand, transformed its cross-border
distribution, developed its e-commerce capability, ramped up product innovation, entered new
markets and is now in the process of transforming its supply chain. The combination of these
initiatives has driven significant growth in sales and earnings since FY21.
Prior to joining the Company, David held the role of Group President, HanesBrands, and prior
to that he was the CEO of Pacific Brands. In 2016, HanesBrands acquired Pacific Brands and
expanded David’s role to cover international innerwear operations outside of the Americas.
Prior to this, David was the Chief Strategy Officer at Foster’s Group and held senior consulting
roles at McKinsey & Company and PwC.
David’s career has largely been focused on the consumer and retail sector in Australia and
New Zealand complemented by significant international experience in various markets and
categories in China, SE Asia, EU, UK and the USA. David also has an interest in private equity
and growth-phase businesses. He is a member of the advisory board of Whiteoak and supports
the development of investee companies.
David resides in Australia.
Lain Jager
Independent,
Non-executive Director
Master of Social Science
(University of Waikato)
Lain has been a director of the Company since 1 December 2024. Lain also sits on the People
and Remuneration Committee.
Lain brings extensive international agribusiness leadership experience to the Board through his
former role as CEO of Zespri International. Zespri is the world’s largest marketer of kiwifruit,
distributed in more than 50 countries with revenue of NZ$4.2 billion and operating profit of
NZ$230 million in FY24. Lain’s nine years as CEO of Zespri International from 2008 to 2017
included the development of a successful global growth strategy, and significant increases in
revenue and profitability.
Since stepping down from Zespri in 2017, Lain has focused on private business interests
including personal investments in a range of entrepreneurial, technology and agriculture
related businesses.
Lain resides in New Zealand.
72

Kate Mitchell
Independent,
Non-executive Director
Bachelor of Arts Honours
(Modern Languages)
(Oxford University, UK)
Chartered Member of the Institute
of Directors, New Zealand
Kate has been a director of the Company since 1 June 2023. She is also Chair of the Audit and
Risk Management Committee.
Kate has significant governance experience as a director of both private and public companies.
She is also skilled in the areas of financial risk management, structured financing and
investments.
Kate is currently Chair of The New Zealand Merino Company and Link Engine Management.
She is also a director of Heartland Bank and Heartland Group Holdings (HGH: ASX, NZX), where
she chairs the Sustainability Committee, and Christchurch International Airport, where she
chairs the Property and Commercial Committee.
Prior to moving to New Zealand in 2014, Kate’s executive career spanned 20 years in investment
banking in London, which included senior leadership roles in Global Markets at Deutsche Bank,
Goldman Sachs and Merrill Lynch.
Kate resides in New Zealand.
Tonet Rivera
Independent,
Non-executive Director
Bachelor of Science,
Industrial Engineering
(University of the Philippines)
Tonet has been a director of the Company since 1 November 2024. He also sits on the Audit
and Risk Management Committee.
Tonet has over 35 years of supply chain experience, including 17 years of international
leadership experience.
Tonet worked for Mead Johnson Nutrition from 2002 to 2017, culminating in four years
leading the global supply chain of the multinational nutrition company in the role of Senior
Vice President, Global Supply Chain. In that role Tonet had responsibility for all supply chain
operations globally, including manufacturing, engineering, procurement, supply planning and
physical distribution. Prior to that, he served as Vice President, Supply Chain – Asia and Europe
for more than a decade, with responsibility for Supply Chain operations in Europe and Asia,
including owned manufacturing locations and third-party manufacturers.
Since retiring from executive roles in 2017, when Mead Johnson Nutrition was acquired
by Reckitt Benckiser Group plc, Tonet has worked as a supply chain consultant.
Tonet resides in the Philippines.
Sandra Yu
Independent,
Non-executive Director
Master – Marketing, International
Business Management
(National Taiwan University)
Advanced Management Program
(Harvard Business School)
Sandra Yu has been a director of the Company since 1 March 2022. Sandra is the Chair of the
People and Remuneration Committee and sits on the Audit and Risk Management Committee.
Sandra is a highly regarded company director and an experienced global executive in consumer
goods industries, and importantly in the IMF market in China, with a proven track record of
driving business and brand transformation, leveraging opportunities for growth, and building
organisational capabilities across China as well as the USA and other parts of Asia. She is
currently a director of 91AAP Inc, a retail Software as a Service provider.
As the former head of Mead Johnson Nutrition’s Greater China business, Sandra was a member
of the Mead Johnson Nutrition’s Global leadership team. Prior to that, Sandra held various
other senior executive roles at Mead Johnson Nutrition, including as the Global Marketing Vice
President, responsible for transition to new digital media and e-commerce channels globally.
Sandra was also appointed as the non-executive chairwoman to lead RB China Advisory Board
after the merger between Reckitt Benckiser and Mead Johnson Nutrition in 2017. Prior to joining
Mead Johnson, Sandra held executive positions at Unilever, where she worked across Asia for
13 years.
Sandra resides in Greater China.
CORPORATE
GOVERNANCE
73

Executive
Leadership
Te a m
David Bortolussi
Managing Director and CEO
Bachelor of Commerce (University of Melbourne),
FCA, F FIN, Member of the Australian Institute
of Company Directors (MAICD)
Refer to page 72.
David Muscat
Chief Financial Officer
Bachelor of Commerce – Accounting and Finance
(Monash University), CA
David joined the Group in October 2022. As CFO, David is
responsible for finance, investor relations, risk management
and IT across the Group. David is an experienced finance and
people leader with a history of working in listed companies across
New Zealand and Australia.
Prior to joining the Group, David was the CFO of DIM Brands
International (formerly Hanes Europe Innerwear), and prior to this
was the CFO of Hanes Australasia. David was the CFO of ASX and
NZX listed Pacific Brands prior to its takeover by Hanesbrands
Inc. in 2016. David commenced his career at Deloitte and has
since gained significant experience in consumer goods and retail
sectors in various international markets including China, the USA
and Europe.
Jaron McVicar
Chief Legal and Sustainability Officer and Company Secretary
Bachelor of Laws (University of Otago)
Jaron joined the Group in November 2016 and is responsible for the
Group’s legal function and our important sustainability programme.
In his role as Company Secretary, Jaron works closely with the
Board on corporate governance and Board-related matters.
Prior to joining the Group, Jaron worked in private practice for
15 years as a corporate and commercial lawyer in New Zealand and
the UK. Jaron is a qualified solicitor in New Zealand and England
and Wales.
Chopin Zhang
Chief Supply Chain Officer
Master, Business Administration
(Maastricht School of Management)
Chopin joined the Group in November 2022 and has over 35 years’
experience in supply chain management with significant experience
in China and New Zealand, including end-to-end supply chain
management, manufacturing, quality, regulatory affairs and cross-
border trade. Chopin has extensive experience in the China IMF
market, having held senior executive and supply chain leadership
roles with Yashili and Danone. During his career, Chopin has held
additional supply chain senior leadership roles across Greater
China, Asia Pacific and the USA with leading consumer goods
companies including Starbucks, Nike and Johnson & Johnson.
Chopin’s expertise in the China IMF industry and experience across
New Zealand and China are highly relevant to his leadership of the
transformation of the Company’s supply chain to enable further
market access, innovation and growth.
Edith Bailey
Chief Marketing Officer
Bachelor of Business – Marketing and Management (University
of Technology, Sydney), Graduate of the Australian Institute of
Company Directors (GAICD)
Edith joined the Company in December 2021 and is responsible
for managing the strategic and creative direction of the a2™
brand, overseeing the science and nutrition functions, project
management office, and consumer insights function, ensuring
brand relevance and consumer centricity across ever-evolving
markets.
Edith was previously Consumer Marketing Director of Danone’s
Specialised Nutrition division in ANZ, with Danone Nutricia’s
Specialised Nutrition division, having spent 14 years with
the organisation in several senior marketing, sales, channel
and category development positions. Edith has significant
experience in the infant and adult nutrition categories across
China, New Zealand, Australia and South East Asia.
Before her time at Danone, Edith held senior marketing roles
with PepsiCo, Campbell Arnotts and S.C. Johnson & Son.
EXECUTIVE LEADERSHIP
TEAM (L-R): CHOPIN ZHANG,
EDITH BAILEY, JARON
M
C
VICAR, AMANDA HART,
DAVID BORTOLUSSI, YOHAN
SENARATNE, XIAO LI,
ELEANOR KHOR, DAVID
MUSCAT, KEVIN BUSH.
74

Amanda Hart
Chief People and Culture Officer
Bachelor of Business Administration
(University of South Australia), Member of the Australian
Institute of Company Directors (MAICD)
Amanda joined the Company in September 2021 and has extensive
experience in people and culture roles within consumer products,
telecommunications and media industries.
She is responsible for leading and executing integrated
programmes and initiatives focused on constructive leadership
development, capability building, employee engagement, health
and safety, diversity and inclusion, and cultural change.
Prior to joining the Group, Amanda was previously Head of Human
Resources (Australia and New Zealand) with Dyson Appliances and
has experience in people and culture leadership roles both in the
UK and USA and leading teams across APAC markets.
Xiao Li
Chief Executive Officer – Greater China
Bachelor of Arts in Business Admin,
English (Heilongjiang University), Master,
EMBA (China Europe International Business School)
Xiao joined the Group in April 2019 and is responsible for
maximising the significant opportunities that the Greater China
market presents for the Company, executing against our strategy
and putting the right capabilities in place to deliver on these
future growth opportunities.
Xiao has substantial experience building successful businesses
in China across a diverse range of multinational and local fast
growth consumer driven companies including Shell Company,
Mars, Unilever and Nike. Xiao was previously the GM of Pousheng
(HK listed sport retail), CEO of Burger King China and President of
Wanda Kids Group and SVP of Wanda Group.
Yohan Senaratne
Managing Director – International
Master (Business Administration) (Kellogg School of
Management, Northwestern University), Bachelor Commerce,
Bachelor Business Systems (Monash University), Member of
the Australian Institute of Company Directors (MAICD)
Yohan is responsible for leading the Company’s cross-border
export business, primarily focused on English label IMF products
manufactured in New Zealand and sold into China, including
liquid milk and Other Nutritional products.
Yohan is responsible for managing products sold through all
channels, principally via the Daigou/reseller/O2O and cross-
border e-commerce (CBEC) channels. The International team
is also responsible for developing the Company’s business in
emerging markets.
Yohan brings capability in strategy, marketing, sales and
e-commerce, and experience in infant milk nutrition and adjacent
categories in China.
Yohan joined the Company in 2021 from his most recent role as
Sales and Marketing Director at Bellamy’s Organic. Yohan has also
held multiple positions at Mondelez International, including Head
of e-commerce for Australia, New Zealand and Japan. Prior to
this, Yohan worked at ANZ Bank, focusing on retail banking digital
transformation and with strategy consultancy LEK.
Eleanor Khor
Managing Director – ANZ and Strategy
Bachelor of Commerce/Bachelor of Laws (Hons)
(University of Melbourne)
Eleanor joined the Company in August 2018, bringing a diverse
range of experience, including her time as a corporate and M&A
lawyer at Allens Linklaters, a management consultant at Bain & Co,
and working in private equity with a focus on consumer goods
businesses.
As Managing Director – ANZ and Strategy, Eleanor leads the
Australia and New Zealand liquid milk business in addition to the
Group Strategy function.
As leader of the ANZ business, Eleanor is responsible for realising
the full potential of the a2 Milk™ brand in Australia and New
Zealand, with a strong focus on driving growth through innovation.
Within the Strategy function, Eleanor is responsible for developing
corporate and business strategy and the execution of key growth,
performance improvement and potential M&A, joint venture and
alliance initiatives.
Kevin Bush
Managing Director – USA
B. Comm Marketing (Monash University),
Graduate Certificate Data Analytics (UNSW),
Member of the Australian Institute of Company
Directors (MAICD)
Kevin was appointed to the role of Managing Director – USA in
May 2023. Kevin is responsible for leading the Company’s North
American business and continuing to grow the brand and delivering
its path to profitability. Kevin is a director of the International Dairy
Foods Association (IDFA) Fluid Milk Board.
Prior to this, Kevin was Executive General Manager – ANZ from
July 2021. In this role, Kevin was responsible for leading the
Company’s business in Australia and New Zealand and the
successful launch of a2 Milk™ Lactose Free.
Kevin previously held the role of Sales Director – ANZ from July
2016 and was pivotal in growing the a2 Milk™ liquid milk brand
and driving increased market share. He has also overseen the
successful establishment of the a2 Platinum™ IMF brand in the
South Korean market and various other business development
initiatives across the Group.
Kevin is a highly experienced sales and marketing professional
with extensive FMCG experience across Australian, UK and USA
markets and has held senior positions with leading consumer goods
companies including Mars, Nestlé and McCain Foods.
CORPORATE
GOVERNANCE
75

Message from the People and
Remuneration Committee Chair
Dear Shareholders,
On behalf of the Board, I am pleased to present the
Remuneration disclosures for the year ended 30 June 2025
(FY25). This report sets out our remuneration strategy and
framework, as well as the performance and remuneration
outcomes for the CEO for FY25, which align with the Group’s
strategic objectives and financial performance, and the
interests of our shareholders.
Year in review
In FY25, a2MC reported another year of strong performance driven by double-digit revenue growth and an improvement
in profitability margins. Our FY25 revenue and EBITDA, both key measures used for determining short-term incentive
(STI) outcomes, increased by 13.5% and 17.1% respectively exceeding targets. In addition, we continued to make solid
progress against our non-financial strategic measures, primarily in the areas of people, planet, brand health and market
share. As a result, the STI Group Scorecard outcome was slightly above target at 110%.
At the conclusion of the financial year, our long-term incentive (LTI) for the three year period FY23–FY25 was tested.
The EPS CAGR hurdle was met and Revenue CAGR was between target and maximum, resulting in a vesting outcome
of 96.7%.
CEO remuneration outcomes and framework
For FY25, the Board previously decided that the CEO’s base salary would remain unchanged. For FY25 and subsequent
years, the Board also decided to cap the CEO’s STI at 130% of Target STI (previously a theoretical maximum of 169%).
For FY25, the CEO will receive 110% of his target STI due to the Group Performance Scorecard outcome being assessed
as 110% and individual performance modifier of 100%. Refer to page 79 for details of the Group Performance Scorecard
outcome.
In the interests of transparency and good governance, the Board will also continue its practice of voluntarily putting
the CEO’s LTI Grant to shareholders on an advisory basis at the Annual Meeting of shareholders.
I would like to thank our team members for their continued commitment and performance throughout the year.
I invite you to review our Remuneration disclosures.
Sandra Yu
Chair of People and Remuneration Committee
76

Remuneration
Our remuneration framework is designed to appropriately align with our strategy
and achievement of our short-term and long-term ambitions. The key principles of
our remuneration framework are outlined below.
Market
competitive
Business
strategy
Values and
behaviours
Shareholder
alignment
Provide competitive rewards
to attract, motivate and
retain talented employees
and executives relevant to the
markets in which we operate.
Drive delivery of the Company’s
strategy by rewarding
performance and having a mix
of short-term and long-term
remuneration elements.
Be consistent with, and
supportive of, the Company’s
values, ethical framework
and commitment to good
corporate governance.
Link rewards to the
creation of sustainable
value for shareholders,
whilst avoiding
inappropriate risk.
Remuneration governance
The People and Remuneration Committee (PRC) advises the
Board on the policies and practices of the Company regarding
the remuneration of non-executive directors, the ELT
(comprising the CEO and direct reports to the CEO) and other
senior leaders of the Group and reviews all components of the
Group’s remuneration practices relevant to its employees.
The PRC Charter sets out the objectives, responsibilities and
authority of the PRC in relation to remuneration matters.
The Board’s policy for remunerating ELT members and
selected other senior leaders is to provide market-based
remuneration packages comprising a blend of fixed and
variable at-risk incentive-based remuneration, with clear links
between individual and Company performance and individual
reward. The PRC reviews the remuneration of ELT members
and, as an aggregate, all other employees at least annually.
The PRC seeks external professional advice from time to time
on remuneration matters. During FY25, external consultants
were engaged to provide market practice information and
benchmarking data. During the year, no remuneration
recommendations were made by external consultants.
Remuneration policies and practices
All employees receive fixed remuneration. Selected employees
also have variable remuneration in the form of a short-
term incentive (STI) as part of their remuneration package.
ELT members and selected other senior leaders also have a
long-term incentive (LTI) in the form of equity as part of their
remuneration package.
Remuneration packages for senior leaders are structured with
a significant portion of variable reward at risk that can be
earned by the achievement of performance outcomes.
An appropriate remuneration mix is determined for each
position, taking into consideration the employee’s role and
level of responsibility. In addition, the Company’s STI plan
structure for the CEO includes a percentage of deferral as
cash. In the interests of transparency and good governance,
the Board also voluntarily puts the CEO’s proposed LTI grant
to shareholders on an advisory basis and for the purposes of
ASX Listing Rule 10.14, at Annual Meetings of shareholders.
Managing ELT performance
Robust processes are in place for supporting and evaluating
the performance of ELT members and other senior leaders.
The Board and CEO determine and agree annual targets
and objectives for the Company based on the Company’s
strategic plan, supported by comprehensive and collaborative
operational planning and financial budgeting processes.
The CEO is accountable to the Board for the delivery of the
agreed targets and objectives.
The targets and objectives agreed between the Board and the
CEO are discussed with, and cascaded to, each of the other
ELT members and captured in individual performance plans.
The CEO uses the performance plans to facilitate individual
conversations with the other ELT members. The performance
discussions are documented and form the basis of the annual
performance review that the CEO undertakes with each of the
other ELT members at the end of the performance period.
The outcome of each of the ELT members’ performance over
the course of the year is one factor considered when any
changes to fixed annual remuneration or any award of variable
remuneration and incentives are determined.
During FY25, each ELT member who was an employee for
the duration of the reporting period had a formal, annual
performance discussion documented.
CORPORATE
GOVERNANCE
77

ELT remuneration framework
The ELT remuneration framework is designed to deliver high performance with substantial components at risk, with the aim
of more closely aligning remuneration with the Company’s strategy, objectives and risk tolerances as set out below.
The design of the ELT remuneration framework is based on our reward principles and is comprised of three components:
–Fixed Annual Remuneration (FAR) (base salary and statutory superannuation contribution where relevant)
–STI (variable remuneration)
–LTI (variable remuneration)
TARG E T
COMPONENTPURPOSELINK TO STRATEGY AND PERFORMANCECEOE LT
2
FAR
Provides market
competitive
remuneration to attract
and retain talent while
reflecting role scope,
complexity, impact and
accountabilities
Based on skills and experience
relevant to the role, individual
performance and current level of
remuneration relative to remuneration
benchmarks
Reviewed on an annual basis with
reference to independent external
surveys and, where appropriate, is
adjusted based on consideration of
individual performance and market
remuneration benchmarks
27%29%–43%
STI
Incentivises annual
achievement
of short-term
performance measures
against the Group
performance scorecard
Performance is assessed against
a balanced scorecard, comprising
financial performance measures and
non-financial performance measures
which align with the Company’s value
creation model (covering four key
areas: People, Planet, Consumers
and Shareholders)
32%
1
26%–33%
LT I
Aligns reward with the
creation of sustainable,
longer-term shareholder
value
Aligns selected executives’
remuneration with the Company’s
strategy and ambition, designed to
create long-term shareholder value
through sustained growth in revenue
and earnings
41%32%–43%
1 25% of the CEO’s Actual FY25 STI is deferred as cash for one year.
2 Excluding the CEO.
Executive minimum shareholding requirement (Executive MSR)
The Executive MSR Policy applies to all members of the ELT. From time to time, additional employees may be identified to
whom the Executive MSR Policy will apply. The purpose of the Executive MSR Policy is to strengthen the alignment between
the interests of the ELT and the interests of shareholders and encourage a focus on building long-term shareholder value.
Each member of the ELT is required to acquire and hold a minimum shareholding equivalent to 100% of their FAR (before any tax
or social security deductions) by the end of five annual vesting periods for LTI grants. All ELT members are currently expected to
achieve the Executive MSR within this timeframe.
78

FY25 Short-Term Incentive (STI)
STI values and performance targets are approved by the PRC and Board each financial year. Payments made under the STI plan
are in the form of cash. For FY25, the CEO’s STI will continue to be 75% cash and 25% deferred as cash for one year. In FY25 the
amount awarded under the STI plan was determined by reference to:
Opportunity
Group Performance
Outcome
1
Individual
Performance
Modifier
1
Outcome
FAR
$
x
Target STI
opportunity
%
x
FY25 Group
performance scorecard
result % (detailed below)
x
Individual
performance
modifier %
=
STI award
$
1 For the CEO, the maximum combined impact of the Group Performance Scorecard outcome and Individual Performance Modifier to apply to target STI
opportunity was capped at 130%.
The STI plan incorporates a comprehensive assessment of Group performance, encompassing both financial and non-financial
measures. The FY25 Group Performance Scorecard includes financial measures with a weighting of 65% and non-financial
measures with a weighting of 35%, as set out in the table below.
For each objective there are threshold, target and maximum metrics (refer table below) to assess the Group’s performance
against. The outcomes range from 0% to 130%, with the target at 100%; and outcomes are determined by the Board (excluding
the CEO).
FY25 Group Performance Scorecard
FY25 STRATEGIC
OBJECTIVESMETRICOUTCOME
WEIGHTING
AT TARG E T
Financial measures65%
THRESHOLDTARGETMAXIMUM
ShareholdersRevenue 30%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
30%
Inventory and risk management
5%
Non-financial measures35%
PeopleSafety performance, employee engagement
score, capability development and gender
pay gap
5%
PlanetEmployee rating of a2MC sustainability impact,
and progress on packaging and Scope 3 GHG
emissions goals
5%
Consumers
Brand healthChina brand awareness, Australian fresh milk
and USA household penetration (with most
weight placed on China outcomes)
5%
Market shareChina label IMF (MBS and DOL), English label
IMF (CBEC, Daigou, O2O), Australian fresh milk
and USA premium liquid milk (with most weight
placed on China outcomes)
5%
InnovationChina label market access, progress on
innovation pipeline including Other Nutritionals,
sales from new products and US IMF FDA
long-term approval
10%
Supply chainQuality outcomes and service levels (this was
impacted by 3
rd
party supply constraints during
the year)
5%
Scorecard outcome (% of target)110%
The outcome of the FY25 Group Performance Scorecard, as determined by the Board (excluding the CEO) for all ELT members
(including the CEO) was 110%, reflecting that an outcome of 78% was achieved against financial measures and an outcome of
32% was achieved against non-financial measures.
CORPORATE
GOVERNANCE
79

FY25 Long-term incentive (LTI)
The table below outlines the key features of the FY25 LTI grant under the LTI plan.
FeaturesApproach
Purpose –The LTI Plan is designed to: (a) assist in the reward, retention and motivation of ELT members and
selected other senior leaders; and (b) align the reward available to selected senior executives with
the creation of sustainable longer-term shareholder value.
Participants –Participation in the LTI plan is by invitation only, at the sole and absolute discretion of the Board.
–In FY25, ELT members and selected other senior leaders participated.
Opportunity –The maximum face value of the LTI that can be granted for the CEO is 150% of FAR and, for other
ELT members, ranges from 75% to 150% of FAR. The minimum potential outcome value is zero.
Performance/
vesting period
–Three years, from 1 July 2024 to 30 June 2027.
–There is no retesting of performance if the performance hurdles are not met at the end of the
performance period.
Instrument –Performance rights – each performance right entitles the participant to receive one fully paid share in
the Company, subject to meeting performance hurdles.
–It is currently intended that, where possible in accordance with relevant laws, the Company will
satisfy its obligation to allocate ordinary shares upon the vesting of performance rights by instructing
the trustee of the a2MC Group Employee Share Trust to transfer existing shares held in the trust to
each participant, where such existing shares were previously purchased by the trustee on-market.
Allocation approach –The Company uses a maximum face value allocation approach. The number of performance rights
granted were calculated as follows:
Grant opportunityShare priceNumber of rights
FAR
$
x
Maximum LTI
opportunity %
÷
Share price
1

(no discount
applied)
=
Number of
performance
rights granted
1 In accordance with the ASX listing rules, the share price used was the volume weighted average share price of
ordinary shares in the Company based on the 10 trading days up to and including 20 September 2024.
Dividend payments –No dividends or dividend equivalent payments are provided on performance rights.
Board discretion –The Board may forfeit performance rights for fraud, dishonesty, breach of a material obligation
or acting in a manner that brings the Company into disrepute, or if there has been a material
misstatement or omission that results in a restatement of accounts.
80

Performance hurdlesThe performance rights vest subject to achievement of both:
–EPS CAGR (compound annual growth in diluted earnings per ordinary share); and
–Revenue CAGR (compound annual growth in total external revenue), performance hurdles over
the performance period.
Vesting Framework
For any vesting to occur, both of the following must be achieved:
–EPS CAGR of at least 10%; and
–Revenue CAGR of at least 4%,
in each case, from 1 July 2024 to 30 June 2027.
If these performance hurdles are achieved, the proportion of performance rights that may vest will be
determined on a straight-line basis per the table below:
Revenue CAGRVesting % (if EPS CAGR of at least 10%)
Less than 4%Nil
4%50%
Between 4% and 6%Pro-rata vesting on a straight-line basis between 50% and 85%
6%85%
Between 6% and 8%Pro-rata vesting on a straight-line basis between 85% and 100%
8% and above100%
Calculation approach
EPS CAGR and Revenue CAGR are derived from the Annual Report of the Company for the relevant
financial years.
The EPS CAGR and Revenue CAGR performance hurdles have been determined having regard to
the Company’s growth strategy and associated medium-term financial ambition to grow revenue
to NZ$2 billion by FY27 or later and to target EBITDA margins in the ‘teens’ with year-on-year
improvements. The Board considers the performance hurdles sufficiently challenging to align
with shareholder value creation, but still being motivating for, and viewed as achievable by, senior
executives and managers invited to participate in the LTI Plan. The high end of the Revenue CAGR
hurdles would deliver revenue over NZ$2 billion by FY27, exceeding the Company’s medium-term
financial ambition. The EPS CAGR is above the high end of the Revenue CAGR range to incentivise
and promote margin accretion over the term of the performance period.
Achieving such performance hurdles will require significant market share gains in the Company’s
core infant milk formula business in the China market which is currently in decline, as well as a
significant improvement in Group profitability.
Cessation of
employment, change of
control, bonus issue or
reorganisation of capital
–Subject to the discretion of the Board or unless employment is terminated by the Company other
than for fault, the participant retires or employment ceases due to total and permanent disablement,
serious illness or death, unvested performance rights will be forfeited upon cessation of employment.
–If performance rights are not subject to forfeiture, the Board may in its discretion reduce the
number of performance rights to reflect the proportion of the vesting period that has elapsed and/or
accelerate vesting.
–Subject to the discretion of the Board, performance rights may be subject to accelerated vesting if the
Company is subject to a change of control.
–Adjustments to the number of performance rights, or the number of Company shares to which they
relate, may be made following any bonus issue of Company shares or reorganisation of its capital.
Performance rights granted in FY25
The Board authorised the grant of 2,361,975 performance rights under the LTI plan in respect of FY25. Further details on current
and previous grants under the LTI plan can be found at Note F2 to the financial statements.
Normalisation adjustments
Relevant STI and LTI metrics are adjusted to remove the impact of such items as the Board may determine in its absolute
discretion to normalise results (up or down) to more appropriately reflect underlying performance. Without limitation,
adjustments may be made to exclude the impact of unusual or one-off items, discontinued operations, impairment charges,
acquisitions and disposals, and capital management. No normalisation adjustments were made to STI and LTI metrics in FY25.
CORPORATE
GOVERNANCE
81

Remuneration of CEO – David Bortolussi
David commenced his appointment as Managing Director and CEO on 8 February 2021. Details of his remuneration arrangements
are set out below.
Term
There is no fixed term. David’s employment is ongoing until terminated by either David or the Company.
Fixed Annual Remuneration
A$1,936,789 per annum (inclusive of superannuation) in FY25. David’s fixed annual remuneration is reviewed annually.
STI
On an annual basis, David participates in the Company’s STI plan. For FY25, his STI incentive target was 120% of his FAR, subject
to the achievement of the Group Performance Scorecard and individual performance objectives as determined by the Board
(excluding David).
David’s STI payment in FY25 is determined in accordance with the following:
FAR
$
x
Target STI
opportunity
120%
x
FY25 Group Performance
Scorecard result %
1

(detailed above)
x
Individual
performance
modifier %
1
=
STI award
$
1 As disclosed in FY24, for FY25 and subsequent years, the Board has decided to cap the maximum combined impact of David’s Group Performance
Scorecard outcome and Individual Performance Modifier to apply to his target STI opportunity at 130%. This compares to a theoretical maximum
combined impact of 169% (i.e. 130% x 130%) in FY24 and prior years.
75% of David’s STI payment is payable in cash shortly following the Board’s determination and the remaining 25% is deferred and
payable in cash after one year.
LT I
Subject to Board discretion, on an annual basis David will be invited to be granted performance rights under the Company’s
LTI plan. Prior to FY24, performance rights issued to David were issued on the basis that they may only be satisfied on exercise
with ordinary shares purchased on-market.
The Board will be submitting the CEO’s proposed LTI grant for FY26 to shareholders, on an advisory basis and for the purposes
of ASX Listing Rule 10.14, at the 2025 Annual Meeting.
Allowance
An allowance of A$10,000 per month (net of tax) is paid to assist David with the cost of his accommodation in Sydney and travel
between Melbourne and Sydney.
Notice period
Generally, resignation by David requires six months’ notice and termination (other than for cause) by the Company requires
12 months’ notice.
Leave
Five weeks per annum paid annual leave, and personal and long service leave in accordance with minimum statutory
entitlements.
Other terms
David’s employment agreement also includes standard terms covering expense reimbursement, conflicts of interest,
confidentiality, intellectual property and moral rights, clawbacks and restraints upon termination (which address
non-competition, as well as non-solicitation of employees, customers and suppliers).
82

Total CEO remuneration earned
The remuneration accrued for David Bortolussi in the financial year was as follows:
Statutory remuneration accounting expense
FY25
A$

FY24
A$
FAR
1
1,936,7891,934,256
STI
2
2,556,5612,228,263
Allowance
3
226,416226,416
LT I
4
2,900,2302,701,108
Total remuneration7,619,9967,090,043
1 FAR: For FY25, the Board decided not to increase David’s base salary, with an incremental change only in superannuation in line with the change
in statutory limits.
2 STI: No change to CEO STI target levels in FY24 and FY25; 96% and 110% of target awarded in each year respectively, including accrued deferred
component (25%). In FY25, the maximum STI opportunity was reduced from a theoretical maximum of 169% to 130% of target.
3 Allowance: No change to relocation allowance. Amount is inclusive of tax gross-up.
4 LT I : LTI expensing uses forecasts to approximate vesting probabilities of plans vesting in future years. The slightly higher year-on-year increase
is primarily driven by the improvements in forecasts, resulting in higher estimated vesting.
Total CEO remuneration received
The remuneration received by David Bortolussi in the financial year is outlined in the table below. Presenting this information
provides greater clarity and transparency as to the CEO’s remuneration. This table differs from the statutory accrued
remuneration table (see table above) which presents remuneration in accordance with accounting standards (i.e. on an accrual
basis).
Remuneration received
FY25
A$
FY24
A$
FAR
1
1,936,7891,934,256
STI paid
2
2,203,4831,596,854
Allowance
3
226,416226,416
LT I
4
2,798,1642,249,312
Total remuneration received7,16 4, 8 526,006,838
Cash payments
1 FAR: For FY25, the Board decided not to increase David’s base salary, with an incremental change only in superannuation in line with the change
in statutory limits.
2 STI paid: The FY24 figure reflects the FY23 STI payment made in September 2023 with 25% deferred to be paid in September 2024. The FY25 figure
is higher as it reflects both 75% of the FY24 STI payment which was made in September 2024, as well as 25% of the FY23 STI that was deferred.
3 Allowance: No change to relocation allowance.
Vesting of prior year awards (equity)
4 LT I : FY21 LTI grant vested in FY24 (August 2023) and FY22 LTI granted vested in FY25 (August 2024). Both LTIs vested in full (100%).
LTI – granted in FY25
In FY25, 538,336 performance rights vesting in or around August 2027 (subject to satisfaction of conditions including
performance hurdles) were granted to David under the Company’s LTI Plan. The CEO’s FY25 LTI Grant was included as a
resolution on an advisory basis and for the purposes of ASX Listing Rule 10.14, at the 2024 Annual Meeting (and received a
‘for’ vote of 99.42%).
Other than to meet any tax obligations, no shares held by David can be sold until he holds sufficient shares to meet the
Company’s minimum shareholding requirement under the MSR Policy.

CORPORATE
GOVERNANCE
83

Non-executive directors’ remuneration policy and structure
Non-executive director fees are paid from an aggregate annual fee pool of $1,365,000, as approved by shareholders at the
2018 Annual Meeting. Non-executive directors do not receive variable pay.
The table below provides a summary of FY25 Board and committee fees:
Position
Fees per annum
$
Board of DirectorsChair
1
375,000
Member165,000
Audit and Risk Management CommitteeChair35,000
Member16,500
People and Remuneration CommitteeChair35,000
Member16,500
1 No additional fees are paid to the Board Chair for Committee roles.
Remuneration paid to non-executive directors of the Company for FY25 was as follows:
Committee fees
Board fees
Audit and Risk
Management
People and
RemunerationTotal fees
$$$$
Pip Greenwood (Chair)375,000 ––375,000
Lain Jager
1
96,250 –9,625 105,875
Kate Mitchell165,000 35,000 –200,000
Tonet Rivera
2
110,000 11,000 –121,000
Sandra Yu165,000 16,500 2 7, 2 9 2 208,792
Warwick Every-Burns
3
68,7506,875 14,583 90,208
David Wang
4
82,500 8,250 8,250 99,000
To t a l1,062,5007 7,62 5 59,750 1,199,875
1 Lain Jager was appointed with effect from 1 December 2024.
2 Tonet Rivera was appointed with effect from 1 November 2024.
3 Warwick Every-Burns retired on 22 November 2024.
4 David Wang retired on 31 December 2024.
No other benefits such as share options or special exertion payments were paid to non-executive directors.
No director of a subsidiary company was remunerated in their capacity as a director.
Director Minimum Shareholding Requirement
A Minimum Shareholding Requirement (Director MSR) Policy applies to all non-executive directors. The purpose of this Director
MSR Policy is to strengthen the alignment between the interests of directors and the interests of shareholders and encourage
a focus on building long-term shareholder value. Under this policy, directors are required to acquire and hold, for the duration
of their tenure on the Board, a minimum shareholding equivalent in value (at the time of purchase) to 100% of their fixed annual
director fees (including committee fees) before any tax or social security deductions. Directors are expected to achieve the
Director MSR within three years of becoming a director.
In assessing compliance, the Board takes into account any exceptional circumstances including any extended periods during
which the non-executive directors were prohibited from acquiring shares under the Securities Trading Policy.
84

Financial
statements
Directors’ approval of the financial statements 86
Independent auditor’s report 87
Consolidated statement of comprehensive income 90
Consolidated statement of changes in equity 91
Consolidated statement of financial position 93
Consolidated statement of cash flows 94
Notes to the financial statements 95
FINANCIAL
STATEMENTS
85

Directors’ approval of the financial statements
for the year ended 30 June 2025
The directors of The a2 Milk Company Limited are pleased to present the consolidated financial
statements for The a2 Milk Company Limited (the Company) and its subsidiaries (together the Group)
for the year ended 30 June 2025.
The directors are responsible for preparing and presenting financial statements in accordance with
New Zealand law and generally accepted accounting practice, which present fairly the financial position
of the Group as at 30 June 2025 and the results of its operations and cash flows for the period ended on
that date.
The directors consider the financial statements of the Group to have been prepared using accounting
policies which have been consistently applied and supported by reasonable judgements and estimates
and that all relevant financial reporting and accounting standards have been followed.
The directors believe that proper accounting records have been kept which enable, with reasonable
accuracy, the determination of the financial position of the Group and facilitate compliance of the
financial statements with the Financial Markets Conduct Act 2013.
The directors consider that they have taken adequate steps to safeguard the assets of the Group, and to
prevent and detect fraud and other irregularities. Internal control procedures are also considered to be
sufficient to provide a reasonable assurance as to the integrity and reliability of the financial statements.
There are reasonable grounds to believe that the Company and the Group entities identified in Note E1
will be able to meet any obligations or liabilities to which they are or may become subject to by virtue
of the Deed of Cross Guarantee between the Company and those Group entities pursuant to ASIC
Corporations (Wholly-owned Companies) Instrument 2016/785.
Pip Greenwood David Bortolussi
Chair Managing Director and CEO
17 August 2025
86

Independent auditor’s report
for the year ended 30 June 2025
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fa x: +61 2 9248 5959
ey.co m/a u

Independent auditor’s report to the shareholders of The a2 Milk Company
Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of The a2 Milk Company Limited (the “Company”) and its
subsidiaries (together the “Group”) on pages 90 to 143, which comprise the consolidated statement
of financial position of the Group as at 30 June 2025, and the consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then ended of the Group, and the notes to the consolidated financial
statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 90 to 143 present fairly, in all material
respects, the consolidated financial position of the Group as at 30 June 2025 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand
Equivalents to International Financial Reporting Standards and International Financial Reporting
Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company’s shareholders,
as a body, for our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Ernst & Young has provided sustainability reporting advisory and assurance services to the Group.
Partners and employees of our firm may deal with the Group on normal terms within the ordinary
course of trading activities of the business of the Group. We have no other relationship with, or
interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, but we do not provide a separate opinion on these matters. For each matter below,
our description of how our audit addressed the matter is provided in that context.
FINANCIAL
STATEMENTS
87

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial statements section of the audit report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to respond to our assessment of the risks
of material misstatement of the financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying consolidated financial statements.
Customer rebates and promotional allowances
Why significant How our audit addressed the key audit matter
Revenue and associated trade receivables are
recognised net of rebates and promotional
allowances paid or owed to customers based on
their individual contractual arrangements.
The recognition and measurement of rebates
and promotional allowances, including the
establishment of an appropriate amount accrued
at year end, involves judgment and estimation,
particularly relating to variable rebates and the
expected level of rebate claims by customers.
This was considered a key audit matter given the
value of rebates and promotional allowances
provided to customers, together with the level
of judgment involved in estimating this variable
consideration at year end.
Disclosures regarding revenue and the related
rebates and promotional allowances are
included in note B2 to the financial statements.

Our audit procedures included the following:
► Considered the appropriateness of the
Group’s revenue recognition accounting
policies as they relate to rebates and
promotional allowances.
► Understood the Group’s processes and
controls over the recording of rebates
and promotional allowances.
► Selected a sample of customer
contracts, determined whether variable
rebates were calculated in accordance
with the agreed terms and inquired of
management as to the existence of any
non-standard agreements or side
arrangements with customers.
► Selected a sample of variable rebates
recorded and assessed whether the
timing and value of amounts recognised
were in accordance with NZ IFRS.
► Compared a sample of customer claims
and payments made through the year
for variable consideration to previously
recorded accrued amounts.
► Considered the year end ageing profile
of rebates and promotional allowances
and inquired as to the likelihood of aged
balances being settled.
► Considered the adequacy of the
associated disclosures in the financial
statements.

88

A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Information other than the financial statements and auditor’s report
The directors of the Company are responsible for the annual report, which includes information other
than the consolidated financial statements and auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained during the audit, or otherwise
appears to be materially misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibilities for the financial statements
The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the
consolidated financial statements in accordance with New Zealand Equivalents to International
Financial Reporting Standards and International Financial Reporting Standards, and for such internal
control as the directors determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing on
behalf of the entity the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(New Zealand) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is
located at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1-1/. This description forms part of our auditor’s
report.
The engagement partner on the audit resulting in this independent auditor’s report is Glenn Maris.

Ernst & Young
Sydney
17 August 2025
FINANCIAL
STATEMENTS
89

Note
2025
$’000
2024
$’000
SalesB11,899,2731,673,323
Cost of sales(1,024,118)(906,694)
Gross margin875,155766,629
Other revenueB12,7102,128
Distribution expenses(57, 2 11)(50,184)
Marketing expenses(318,396)(280,098)
Administrative and other expenses(254,167)(236,234)
Operating profit 248,091202,241
Interest income45,45740,396
Finance costsB4(4, 296)(4,497)
Net finance income41,16135,899
Profit before tax289,252238,140
Income tax expenseB6(9 7,16 1)(84,258)
Profit for the year192,091153,882
Profit/(loss) for the year attributable to:
Owners of the Company202,88916 7, 57 7
Non-controlling interests(10,798)(13,695)
192,091153,882
Other comprehensive income
Items that may be reclassified to profit or loss:
Foreign currency translation (loss)/profit(3,205)939
Cash flow hedges fair value profit1,1433,721
Items not to be reclassified to profit or loss:
Listed and unlisted investment fair value gain/(loss)C830,643(62,211)
Total other comprehensive gain/(loss), net of tax28,581(57, 5 5 1)
Total other comprehensive income/(loss) attributable to:
Owners of the Company28,311(57, 8 6 2)
Non-controlling interests270311
28,581(57, 5 5 1)
Total comprehensive income220,67296,331
Total comprehensive income/(loss) attributable to:
Owners of the Company231,200109,715
Non-controlling interests(10,528)(13,384)
220,67296,331
Earnings per share
Basic (cents per share)B528.0323.19
Diluted (cents per share)B52 7. 8 723.06
The accompanying notes form part of these financial statements.
Consolidated statement of comprehensive income
for the year ended 30 June 2025
90

Consolidated statement of changes in equity
for the year ended 30 June 2025
Attributable to owners of the Company
Year ended
30 June 2025
Foreign currency translation reserve $’000 Fair value revaluation reserve $’000 Employee equity settled payments reserve $’000 Treasury shares reserve $’000 Hedging reserve $’000 Total reserves $’000 Retained earnings $’000 Share capital $’000 To t a l $’000 Non-controlling interests $’000 To t a l e q u i t y

$’000
Balance 1 July 2024(5,841)(279,027)6 7, 2 9 2(8,706)1,882(224,400)1,490,7761001,266,476(9,703)1,256,773
Profit after tax for
the period ––––––202,889–202,889(10,798)192,091
Foreign currency
translation differences
– foreign operations (3,317)––––(3,317)––(3,317)–(3,317)
Changes in cash flow
hedges taken to equity ––––4,1134,113––4,113(215)3,898
Cash flow hedges
reclassified to profit
or loss––––(3,217)(3,217)––(3,217)485(2,732)
Listed and unlisted
investment –
fair value movement –30,643–––30,643––30,643–30,643
Income tax112–––(23)89––89–89
Total comprehensive
income for the period (3,205)30,643––87328,311202,889–231,200(10,528)220,672
Transactions with
owners in their
capacity as owners:
Dividends paid––––––(61,542)–(61,542)–(61,542)
Employee withholding
tax payments––(430)––(430)––(430)–(430)
Treasury shares
transferred ––(5,323)5,323–––––––
Share-based payments ––13,545––13,545––13,545–13,545
Income tax––1,722––1,722––1,722–1,722
Total transactions
with owners ––9,5145,323–14,837(61,542)–(46,705)–(46,705)
Balance 30 June 2025(9,046)(248,384)76,806(3,383)2,755(181,252)1,632,1231001,450,971(20,231)1,430,740
The accompanying notes form part of these financial statements.
FINANCIAL
STATEMENTS
91

Attributable to owners of the Company
Year ended
30 June 2024
Foreign currency translation reserve $’000 Fair value revaluation reserve $’000 Employee equity settled payments reserve $’000 Treasury shares reserve $’000 Hedging reserve $’000 Total reserves $’000 Retained earnings $’000 Share capital $’000 To t a l $’000 Non-controlling interests $’000 To t a l e q u i t y

$’000
Balance 1 July 2023 (6,780)(216,816)61,247(13,602)(1,528)(17 7,479)1,323,1991001,145,8203,6811,149,501
Profit after tax for
the period
––––––16 7, 57 7–16 7, 57 7(13,695)153,882
Foreign currency
translation differences
– foreign operations 939––––939––939–939
Changes in cash flow
hedges taken to equity
––––(882)(882)––(882)(85)(967)
Cash flow hedges
reclassified to profit
or loss
––––5,2575,257––5,2573965,653
Listed investment
– fair value movement –(62,211)–––(62,211)––(62,211)–(62,211)
Income tax––––(965)(965)––(965)–(965)
Total comprehensive
income for the period
939(62,211)––3,410(57, 8 6 2)16 7, 57 7–109,715(13,384)96,331
Transactions with
owners in their capacity
as owners:
Employee withholding
tax payments
––(235)––(235)––(235)–(235)
Treasury shares
transferred
––(4,896)4,896–––––––
Share-based payments ––10,727––10,727––10,727–10,727
Income tax––449––449––449–449
Total transactions
with owners
––6,0454,896–10,941––10,941–10,941
Balance 30 June 2024(5,841)(279,027)6 7, 2 9 2(8,706)1,882(224,400)1,490,7761001,266,476(9,703)1,256,773
The accompanying notes form part of these financial statements.
Consolidated statement of changes in equity
for the year ended 30 June 2025
92

Consolidated statement of financial position
as at 30 June 2025
Note
2025
$’000
2024
$’000
Assets
Current assets
Cash and term deposits D31,100,171968,943
Trade and other receivables C192,24678,070
PrepaymentsC2108,52252,545
InventoriesC3139,113179,648
Other financial assetsC810,9498,739
Total current assets1,451,0011,287,945
Non-current assets
Property, plant and equipment C5216,844231,433
Right-of-use assetsD520,22625,921
Investment propertyC634,18230,845
Intangible assetsC7110,919111,093
Other financial assetsC881,95813,509
Deferred tax assetsB626,98134,129
Total non-current assets491,110446,930
Total assets1,942,1111,734,875
Liabilities
Current liabilities
Trade and other payablesC4353,5373 47, 5 6 9
Lease liabilitiesD55,3695,598
Loans and borrowingsD639,000–
Income tax payable43,99257, 3 8 4
Other financial liabilitiesC98,1826,223
Total current liabilities450,080416,774
Non-current liabilities
Trade and other payablesC4662532
Lease liabilitiesD517,60322,732
Loans and borrowingsD638,7643 7, 8 9 0
Other financial liabilitiesC94,262174
Total non-current liabilities61,29161,328
Total liabilities511,371478,102
Net assets1,430,7401,256,773
Equity
Share capital D7100100
Retained earnings 1,632,1231,490,776
Reserves D9(181,252)(224,400)
Total equity attributable to owners of the Company1,450,9711,266,476
Non-controlling interests(20,231)(9,703)
To t a l e q u i t y1,430,7401,256,773
The accompanying notes form part of these financial statements.
FINANCIAL
STATEMENTS
93

Note
2025
$’000
2024
$’000
Cash flows from operating activities
Receipts from customers1,889,8101,676,703
Payments to suppliers and employees(1,630,547)(1,382,247)
Interest received45,93440,353
Interest paid(2,692)(3,439)
Ta xe s p a i d(101,028)(75,626)
Net cash inflow from operating activities D4201,477255,744
Cash flows from investing activities
Payments for property, plant and equipmentC5(3,661)(17,0 20)
Payments for investment propertyC6(5,510)(14,405)
Payments for intangible assetsC7(310)(3,506)
Investment in listed and unlisted sharesC8(32,802)(2,205)
Payments for term deposits(750,000)(750,000)
Receipts from term deposits700,000750,000
Net cash outflow from investing activities(92,283)(3 7,13 6)
Cash flows from financing activities
Payments of lease principalD5(5,733)(4,809)
Dividends paidD8(61,542)–
Net proceeds from/(repayments of) borrowings39,000(45,000)
Net cash outflow from financing activities(28,275)(49,809)
Net increase in cash and short-term deposits80,919168,799
Cash and short-term deposits at the beginning of the year518,943352,234
Effect of exchange rate changes on cash309(2,090)
Cash and short-term deposits at the end of the yearD3600,171518,943
The accompanying notes form part of these financial statements.
Consolidated statement of cash flows
for the year ended 30 June 2025
94

Notes to the financial statements
Contents Page
A. Basis of preparation 96
B. Group performance 98
B1. Operating segments 98
B2. Revenue 101
B3. Expenses 102
B4. Finance costs 102
B5. Earnings per share (EPS) 103
B6. Income taxes 103
C. Operating assets and liabilities 107
C1. Trade and other receivables 107
C2. Prepayments 107
C3. Inventories 107
C4. Trade and other payables 108
C5. Property, plant and equipment 109
C6. Investment property 111
C7. Intangible assets 113
C8. Other financial assets 116
C9. Other financial liabilities 117
D. Financial risk and capital management 118
D1. Financial risk management 118
D2. Capital management 126
D3. Cash and term deposits 126
D4. Cash flow information 127
D5. Leases 128
D6. Loans and borrowings 131
D7. Share capital 132
D8. Dividends 133
D9. Nature and purpose of reserves 134
D10. Capital expenditure commitments 135
D11. Contingent liabilities 135
E. Group structure 136
E1. Consolidated entities 136
E2. Deed of cross guarantee 137
F. Other disclosures 139
F1. Related party transactions 139
F2. Share-based payments 140
F3. Auditor’s remuneration 142
F4. Subsequent events 143
FINANCIAL
STATEMENTS
95

Basis of preparation
for the year ended 30 June 2025
A. Basis of preparation
The a2 Milk Company Limited (the Company) is a for-profit
entity incorporated and domiciled in New Zealand. The
consolidated financial statements of the Company for the
year ended 30 June 2025 comprise the Company and its
subsidiaries (together referred to as the Group).
The Company is registered in New Zealand under the
Companies Act 1993, and is an FMC reporting entity under
the Financial Markets Conduct Act 2013. The Company is
also registered as a foreign company in Australia under the
Corporations Act 2001 (Cth, Australia). The shares of The a2
Milk Company Limited are publicly traded on New Zealand’s
Exchange (NZX), the Australian Securities Exchange (ASX) and
Cboe Australia (CXA). The Group’s reporting currency is the
New Zealand dollar.
The principal activity of the Company is the sale of branded
products in targeted markets made with milk naturally
containing only A2-type protein and no A1 protein.
The consolidated financial statements were authorised for
issue by the directors on 17 August 2025.
The consolidated financial statements:
–Have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand;
–Comply with the New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS);
–Comply with International Financial Reporting Standards
(IFRS) adopted by the International Accounting Standards
Board (IASB);
–Are presented in New Zealand dollars, which is the
Company’s functional currency, with all values rounded
off to the nearest thousand dollars, unless otherwise
stated; and
–Have been prepared in accordance with the historical cost
convention and, except for listed and unlisted investments
and foreign currency forward contracts, do not take into
account changing money values or fair values of assets.
Certain comparative amounts have been reclassified to
conform with the current period’s presentation.
Material accounting policies have been:
–Included in the relevant note to which each policy relates,
other than the accounting policy for foreign currency, set
out below; and
–Consistently applied to all periods presented in these
consolidated financial statements.
Accounting policy: Foreign currency
Transactions
Foreign currency transactions are initially translated to the
respective functional currencies of Group companies at the
rate of exchange at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are
translated to the functional currency at the exchange rate
ruling at the reporting date. Foreign exchange differences
are generally recognised in profit or loss in the consolidated
statement of comprehensive income.
Foreign operations translation to reporting currency
The assets and liabilities including goodwill and fair value
adjustments arising on consolidation of foreign operations
are translated into New Zealand currency at rates of exchange
current at the reporting date, while revenues and expenses
are translated at approximately the exchange rates ruling at
the date of the transaction. Exchange differences arising on
translation are recognised in other comprehensive income
and accumulated within equity in the foreign currency
translation reserve.
96

Judgements, estimates and assumptions
The preparation of financial statements in conformity
with NZ IFRS requires management to make judgements,
estimates and assumptions including climate-related risks
and opportunities.
–This may affect the application of policies and reported
amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
–Estimates and underlying assumptions are reviewed on
an ongoing basis.
–Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future
periods affected.
–Information about significant areas of estimation,
uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount
recognised in the financial statements are described in the
following notes:
–Note B6: Income taxes – Recoverability and recognition
of deferred tax assets and liabilities
–Note B6: Income taxes – Application of base erosion and
profit shifting (BEPS) Pillar Two Model Rules
–Note C3: Inventories – Estimation of net realisable value
–Note C5: Property, plant and equipment – Recoverability
and determination of useful lives
–Note C6: Investment property – Recoverability and
determination of useful lives
–Note C7: Intangible assets – Impairment review of
goodwill and intangibles
–Note C7: Intangible assets – Allocation of goodwill
–Note C8 and C9: Other financial assets and liabilities
– Fair value measurement of foreign currency forward
contracts
–Note D5: Leases – Determination of lease term
–The Group considers the impact of climate change when
making judgements, estimates and assumptions. This
includes a wide range of possible impacts on the Group due
to both physical and transitional risks and how these may
impact the Group.
Changes in material accounting policies
The Group has applied all new and revised Standards and
Interpretations issued by the New Zealand External Reporting
Board that are relevant to the Group’s operations and effective
for the current accounting period. Their application has not
had any material impact on the Group’s assets, profits or
earnings per share for the year ended 30 June 2025.
New standards and interpretations not yet adopted
In May 2024, the XRB issued NZ IFRS 18, which replaces NZ IAS
1 Presentation of Financial Statements. It requires disclosure
of newly defined management-defined performance measures,
subtotals of income and expenses, and includes new
requirements for aggregation and disaggregation of financial
information.
In addition, there are consequential amendments to several
other standards.
NZ IFRS 18, and the amendments to the other standards, is
mandatorily effective for annual reporting periods beginning
on or after 1 January 2027.
The Group is currently working to identify all impacts the
amendments will have on the financial statements.
There are no other new standards and interpretations that are
issued, but not yet mandatorily effective as at 30 June 2025,
that are expected to have a material impact on the Group in
current or future reporting periods.
FINANCIAL
STATEMENTS
97

B. Group performance
This section explains the results and performance of the
Group for the year, including segment information, earnings
per share and taxation.
The Group’s key performance measures are segment revenue
and segment results before interest, tax, depreciation and
amortisation (Segment EBITDA, a non-GAAP measure).
Further information and analysis of performance can be found
in the CEO’s year in review report, which forms part of the
Annual Report.
B1. Operating segments
Operating segments are identified on the basis of internal
reports about components of the Group that are regularly
reviewed by the chief operating decision maker in order to
allocate resources to the segment and assess its performance.
For management purposes, the Group is organised into
business units based on geographical location, and in the
current financial year has four reportable operating segments
as follows:
–The China and Other Asia segment receives external
revenue from the sale of infant milk formula, other
nutritional products and milk.
–The Australia and New Zealand segment receives external
revenue from the sale of infant milk formula, milk and other
nutritional products along with rent, royalty and licence
fee income.
–The USA segment receives external revenue from the
sale of milk, infant milk formula and licence fee income.
–The Mataura Valley Milk segment receives external
revenue from the manufacturing and sale of nutritional
and ingredients products.
Management monitors the operating results of its business
units separately for the purpose of making decisions
about resource allocation and performance assessment.
Segment performance is assessed on segment EBITDA
and is measured in conformity with the accounting
policies adopted for preparing and presenting the
financial statements of the Group.
Group performance
for the year ended 30 June 2025
98

B1. Operating segments (continued)
2025
China and
Other Asia
$’000
Australia and
New Zealand
$’000
USA
$’000
Mataura
Valley Milk
$’000
Eliminations
$’000
To t a l
$’000
Consolidated sales1,301,959314,458138,910143,946–1,899,273
Other revenue–1,556357797–2,710
Total external revenue1,301,959316,014139,267144,743–1,901,983
Inter-segment revenue–––50,132(50,132)–
Reportable segment revenue1,301,959316,014139,267194,875(50,132)1,901,983
Reportable segment results
(Segment EBITDA)332,41757,4 8 4(9,306)(15,033)(2,331)363,231
Corporate EBITDA(88,883)
Group EBITDA274,348
Interest income 45,457
Interest expense(4, 215)
Depreciation and amortisation(26,338)
Income tax expense(9 7,16 1)
Consolidated profit after tax192,091
2024
China and
Other Asia
$’000
Australia and
New Zealand
$’000
USA
$’000
Mataura
Valley Milk
$’000
Eliminations
$’000
To t a l
$’000
Consolidated sales1,143,069315,531113,297101,426–1,673,323
Other revenue–1,768360––2,128
Total external revenue1,143,0693 17, 2 9 9113,657101,426–1,675,451
Inter-segment revenue–––34,996(34,996)–
Reportable segment revenue1,143,0693 17, 2 9 9113,657136,422(34,996)1,675,451
Reportable segment results
(Segment EBITDA)290,12062,987(15,463)(20,457)(467)316,720
Corporate EBITDA(82,376)
Group EBITDA234,344
Interest income 40,396
Interest expense(4,401)
Depreciation and amortisation(32,199)
Income tax expense(84,258)
Consolidated profit after tax153,882
FINANCIAL
STATEMENTS
99

B1. Operating segments (continued)
Other segment information
2025
China and
Other Asia
$’000
Australia and
New Zealand
$’000
USA
$’000
Mataura
Valley Milk
$’000
Corporate
$’000
To t a l
$’000
Additions to non-current assets2696,321862,0073,55412,237
Depreciation and amortisation2,6194,85950514,6093,74626,338
2024
Additions to non-current assets2,24917,4782016,0776,49242,316
Depreciation and amortisation2,3464,84553519,2885,18532,199
Geographical information
2025
$’000
2024
$’000
Revenue from external customers based on the location of the customer
China
1, 2 7 7,0 491,125,608
Australia
305,880307,622
New Zealand
154,877111,102
USA
139,267113,657
Other
24,91017,4 6 2
1,901,9831,675,451
Non-current assets based on the geographical location of assets¹
New Zealand
221,721234,917
Australia
54,04455,220
China
2,6424,877
USA
1,4851,895
279,892296,909
1 Non-current assets exclude goodwill, financial instruments and deferred tax assets.
Group performance
for the year ended 30 June 2025
100

B2. Revenue
Disaggregation of revenue
In the following table, revenue is disaggregated by geographical location (reportable segments) and major product types.
2025
China and
Other Asia
$’000
Australia and
New Zealand
$’000
USA
$’000
Mataura
Valley Milk
$’000
To t a l
$’000
Infant milk formula:
China label632,521–––632,521
English and other labels¹559,15080,6451,582–641,377
Liquid milk²–208,986137,328–346,314
Other nutritionals³110,28824,827––135,115
Ingredients–––143,946143,946
Other revenue–1,5563577972,710
1,301,959316,014139,267144,7431,901,983
2024
China and
Other Asia
$’000
Australia and
New Zealand
$’000
USA
$’000
Mataura
Valley Milk
$’000
To t a l
$’000
Infant milk formula:
China label612,344–––612,344
English and other labels¹4 47, 8 3 498,524824–5 47,18 2
Liquid milk²–190,168112,473–302,641
Other nutritionals³82,89126,839––109,730
Ingredients–––101,426101,426
Other revenue–1,768360–2,128
1,143,0693 17, 2 9 9113,657101,4261,675,451
1 Revenue is allocated based on management responsibility and usually reflects the geographical location of the Group’s wholesale customers. It is
understood that the majority of the infant milk formula sales to customers in the Australia and New Zealand segment are ultimately consumed in China.
2 Excludes liquid milk products (plain and fortified) exported to China and Other Asia markets.
3 Comprises powdered milk products (plain and fortified), and liquid milk products (plain and fortified) exported to China and Other Asia markets.
FINANCIAL
STATEMENTS
101

B2. Revenue (continued)
Recognition and measurement
Sales of products
The Group sells branded milk products made with milk from cows that are specially selected to produce milk that naturally
contains only A2-type protein and no A1 protein, to wholesale and retail customers; and manufactures nutritional and
ingredients products for sale to wholesale customers.
A sale is recognised when control of the product has transferred, being when the product is delivered to the customer and there
is no unfulfilled obligation that could affect the customer’s acceptance of the product. Delivery occurs when the product has
been shipped to the location specified by the customer and the customer accepts the product.
Revenue from sales is recognised based on arrangements as agreed with the customer. These arrangements are applied on an order
by order basis and do not commit the customers to purchase a specified quantity or type of product; nor do they commit the Group to
deliver a specified quantity or type of product. The arrangements set out the terms and conditions that apply to the parties each time
an order is placed by a customer and accepted by the Group, creating a sale contract for that order. The terms and conditions cover,
as appropriate to the customer, pricing, settlement of liabilities, return policies and any other negotiated performance obligations.
Revenue is recognised after offsetting items of variable consideration such as rebates agreed with customers.
Settlement terms range from cash-on-delivery or prepaid terms to various credit terms generally not exceeding 60 days from
end of month. These terms reflect assessment of customer credit risk and industry practice.
Customer contract liabilities refer to payments in advance received from customers, with subsequent delivery to customers,
and recognition of revenue, generally occurring within a week of receipt of the payment. Refer to Note C4 for details of customer
contract liability balances.
For credit customers a receivable is recognised when the products are delivered, being the point in time that the consideration
is unconditional because only the passage of time is required before payment is due.
Interest revenue
Interest revenue is accrued on a time basis, by reference to the principal and the effective interest rate applicable, which is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net
carrying amount.
B3. Expenses
2025
$’000
2024
$’000
Profit before income tax includes the following significant items:
Salary and wage costs118,373103,384
Equity settled share-based payments (refer to Note F2)13,54510,727
Directors’ fees1,2071,203
Bad and doubtful debts recovery–(43)
Depreciation and amortisation26,33832,199
Net foreign exchange losses4,8038,089
B4. Finance costs
2025
$’000
2024
$’000
Interest expense – lease liabilities1,8211,493
Interest expense2,3942,908
Finance costs8196
4,2964,497
Group performance
for the year ended 30 June 2025
102

B5. Earnings per share (EPS)
20252024
Profit attributable to members of the Company used in calculating basic and diluted EPS ($’000)202,88916 7, 57 7
Weighted average number of ordinary shares (’000) for basic EPS723,840722,777
Effect of dilution due to performance rights (’000)4,1513,784
Weighted average number of ordinary shares (’000) for diluted EPS7 2 7, 9 9 1726,561
Earnings per share
Basic EPS (cents)28.0323.19
Diluted EPS (cents)2 7. 8 723.06
Recognition and measurement
Basic EPS is calculated as net profit attributable to members of the Company, adjusted to exclude any costs of servicing equity
(other than dividends), divided by the weighted average number of ordinary shares outstanding during the financial year.
Diluted EPS adjusts basic EPS for the dilutive effect of employee share rights that may be converted into ordinary shares in
the Company.
B6. Income taxes
2025
$’000
2024
$’000
Income tax recognised in profit or loss
Current:
Current year100,89797,862
Adjustment for prior years (12,695)( 7, 576)
Deferred:
Temporary differences (2,905)(7,617)
Adjustment for prior years 11,8641,589
Total tax expense9 7,16 184,258
The prima facie income tax on pre-tax accounting profit from operations reconciles to:
Accounting profit before income tax289,252238,140
Income tax expense calculated at 28% (2024: 28%)80,99066,679
Difference in income tax rates:
Australia 30% (2024: 30%), USA 27% (2024: 27%), and China 25% (2024: 25%)3,5202,368
Non-deductible expenses and non-assessable income4,042625
Prior period adjustment to tax expense(831)(5,987)
Unutilised foreign tax credits3,8154,944
Deferred tax asset not recognised5,62515,629
Total tax expense9 7,16 184,258
Income tax recognised directly in equity
Current tax––
Deferred tax(1,699)516
Tax (benefit)/expense in equity(1,699)516
FINANCIAL
STATEMENTS
103

B6. Income taxes (continued)
Deferred tax balances
2025
Opening
balance
$’000
Charge to
comprehensive
income
$’000
Charge to
equity
$’000
Closing
balance
$’000
Gross deferred tax assets
Patents69(4)–65
Provisions and accrued expenses30,127(8,291)–21,836
Tax losses46(46)––
Property, plant and equipment1,226(501)–725
Employee share scheme4,283(30)1,7225,975
Hedging instruments(623)–(23)(646)
Other(999)25–(974)
Net deferred tax 34,129(8,847)1,69926,981
Charge to profit or loss(8,959)
Charge to other comprehensive income112
(8,847)
2024
Opening
balance
$’000
Charge to
comprehensive
income
$’000
Charge to
equity
$’000
Closing
balance
$’000
Gross deferred tax assets
Patents77 (8)–69
Provisions and accrued expenses22,551 7, 576–30,127
Tax losses122 (76)–46
Property, plant and equipment1,999 (773)–1,226
Employee share scheme3,076 7584494,283
Hedging instruments342–(965)(623)
Other450 (1,449)–(999)
Net deferred tax 28,6176,028(516)34,129
Charge to profit or loss6,028
Charge to other comprehensive income–
6,028
Group performance
for the year ended 30 June 2025
104

B6. Income taxes (continued)
Tax losses
The Group companies have the following estimated gross tax losses at balance date not recognised:
2025
$’000
2024
$’000
USA98,39099,938
New Zealand249,852232,760
348,242332,698
Imputation and franking credits
The Company is a New Zealand company which has elected to maintain an Australian franking credit account. The imputation
credit and franking credit balances represent the sum of the imputation credit and franking credit account balances of all Group
companies stated on an accrual basis. The ability to use the imputation and franking credits is dependent upon the ability of
Group companies to pay dividends. The franking credit account balance is stated in AUD.
Imputation and franking credits available within the Group, and ultimately available to the shareholders of the Company as at
year end:
2025
$’000
2024
$’000
Imputation credits26,24049,725
Franking credits (stated in Australian dollars)598,9655 8 7, 5 6 2
Recognition and measurement
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current and deferred tax are recognised as an expense or income in profit or loss, except when they relate to items credited or
debited in other comprehensive income or equity, in which case that tax is recognised in other comprehensive income or equity
respectively; or where they arise from the initial accounting for a business combination.
The tax currently payable is based on taxable profit for the year. The Group’s liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date, and any adjustment to tax payable in respect of
previous years.
Deferred tax is recognised on differences between the carrying amount of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are
generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be
available in the future against which those deductible temporary differences can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance
sheet date. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
The carrying amount of deferred tax assets is reviewed at each reporting date for recoverability. Likewise, unrecognised tax
assets (not booked to balance sheet) are re-assessed at each reporting date, and recognised, to the extent that future taxable
profits are deemed likely to allow the asset to be recovered.
FINANCIAL
STATEMENTS
105

B6. Income taxes (continued)
Key estimates and judgements
Recoverability of deferred tax assets
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences,
to the extent that it is probable that future taxable profits will be available against which they can be used.
Judgement is required when deferred tax assets are reviewed at each reporting date. Deferred tax assets may be
reduced to the extent that it is no longer probable that future taxable profits will be available.
Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows.
Changes in expectations for the future performance of the business may impact the amount of deferred tax assets
recoverable and recognised on the consolidated statement of financial position and the amount of other tax losses
and temporary differences not yet recognised.
BEPS Pillar Two Model Rules
The Group is within the scope of the Pillar Two Model Rules for the year ended 30 June 2025. The Group operates in
multiple jurisdictions, some of which have enacted or substantively enacted tax legislation to implement the Pillar
Two Model Rules applying to the year ended 30 June 2025. In particular, Australia and Canada have enacted the Pillar
Two Model Rules, including domestic minimum top-up taxes, applying to the year ended 30 June 2025. Accordingly,
the Pillar Two Model Rules apply to the Group’s Australian and Canadian entities for the year ended 30 June 2025.
Under the Pillar Two Model Rules, the Group may be required to pay a top-up tax if the effective tax rate per
jurisdiction (calculated using a prescribed approach) is below the minimum rate of 15%. The Group has undertaken
a transitional country-by-country reporting safe harbour assessment based on the financial information for the
year ended 30 June 2024. Based on this assessment, all jurisdictions in which the Group operates have met the
requirements of at least one of the transitional country-by-country reporting safe harbour tests, meaning no detailed
jurisdictional calculations are required, and no top-up taxes are expected to arise. The Group has performed an
indicative assessment for the year ended 30 June 2025 and similarly deemed that no top-up taxes are expected on the
basis that there are no material changes in the legal structure or operating model arrangements impacting the Pillar
Two outcomes from the previous financial reporting period.
The Group has adopted the International Tax Reform – Pillar Two Model Rules – Amendments to NZ IAS 12 approved
by the New Zealand External Reporting Board. These amendments provide a temporary mandatory exception from
deferred tax accounting and require disclosures in the annual financial statements in relation to the implementation
of the Pillar Two Model Rules published by the Organisation for Economic Co-operation and Development. The Group
has determined that any global minimum top-up taxes arising under the Pillar Two Model Rules are considered an
income tax within the scope of NZ IAS 12. As no top-up taxes are expected to arise in Australia and Canada, and the
Pillar Two Model Rules do not apply in other jurisdictions in which the Group operates for the year ended 30 June
2025, no current tax impact has been recognised in the Group’s financial statements for the year ended 30 June 2025.
The Group has applied the temporary mandatory exception from deferred tax accounting in respect of the Pillar Two
Model Rules and will account for any top-up tax liabilities arising from the application of the rules as a current tax
when it is incurred.
Group performance
for the year ended 30 June 2025
106

C. Operating assets and liabilities
This section provides details of the Group’s operating assets, and liabilities incurred as a result of trading activities, used to
generate the Group’s performance.
C1. Trade and other receivables
2025
$’000
2024
$’000
Trade receivables from contracts with customers61,78750,726
Allowance for expected credit losses––
Goods and services tax18,15317, 579
Other receivables12,3069,765
92,24678,070
The Group’s exposure to credit risks and impairment losses related to trade and other receivables is disclosed in Note D1:
Financial risk management.
Recognition and measurement
Trade receivables from contracts with customers are recognised initially at their transaction price. Other receivables are
recognised initially at fair value. Subsequent to initial recognition, they are measured at amortised cost using the effective
interest rate method, less any lifetime expected credit losses.
C2. Prepayments
2025
$’000
2024
$’000
Prepayments 108,52252,545
108,52252,545
Prepayments predominantly relate to deposits made to inventory suppliers with respect to open purchase orders, which is
customary practice in infant milk formula manufacturing.
C3. Inventories
2025
$’000
2024
$’000
Raw materials 36,30429,783
Finished goods 102,809149,865
Total inventories at the lower of cost and net realisable value139,113179,648
At year end, $7,566,000 (2024: $9,623,000) was recognised as an expense in cost of sales for inventories written down or written off.
Recognition and measurement
Inventories are valued at the lower of cost and net realisable value. Cost is calculated using standard costing or weighted
average methods. Standard costs are regularly reviewed and, if necessary, revised to reflect actual costs.
Net realisable value represents the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale.
Key estimates and judgements
Estimation of net realisable value
Estimation of net realisable value includes assessment of expected future turnover of inventory held for sale and the
expected future selling price of such inventory. Changes in trading, inventory condition and economic conditions may
impact these estimations in future periods.
Operating assets and liabilities
for the year ended 30 June 2025
FINANCIAL
STATEMENTS
107

C4. Trade and other payables
2025
$’000
2024
$’000
Current
Trade payables75,96783,865
Rebates and promotional allowances112,42910 7, 8 4 8
Accrued charges130,809130,222
Employee entitlements31,59825,338
Customer contract liabilities2,734296
353,5373 47, 5 6 9
Non-current
Employee entitlements662532
Recognition and measurement
Trade payables are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest rate
method. They represent liabilities recognised when the Group becomes obligated to make future payments resulting from the
purchase of goods and services. The amounts are unsecured.
Variable consideration such as rebates are offset against the related revenue recognised.
Accrued charges represent amounts payable for supplies and services received but not invoiced at the reporting date.
Customer contract liabilities are payments received in advance from customers. The amount of $296,000 recognised in
customer contract liabilities at 30 June 2024 was recognised as revenue in the year ended 30 June 2025. Remaining performance
obligations at 30 June 2025 have an original expected duration of one year or less.
Employee entitlements
Provision is made for benefits accruing to employees in respect of wages and salaries, bonuses, annual leave, and long service
leave when it is probable that settlement will be required and they are capable of being measured reliably.
Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values
using the remuneration rate expected to apply at the time of settlement.
Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the
present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees
up to the reporting date.
Operating assets and liabilities
for the year ended 30 June 2025
108

C5. Property, plant and equipment
2025
Land
$’000
Buildings
$’000
Office &
computer
$’000
Furniture &
fittings
$’000
Leasehold
improvements
$’000
Plant &
equipment
& work in
progress
$’000
To t a l
$’000
Carrying amount 1 July 20248,76346,3561,9737091,253172,379231,433
Additions–101,1692111202,1513,661
Transfers –1,397780––(2,177)–
Depreciation–(1,886)(895)(202)(287)(14,830)(18,100)
Net foreign currency
exchange differences––(7)3(1)(145)(150)
Carrying amount 30 June 20258,76345,8773,0207211,085157, 3 78216,844
Cost8,76352,8377, 9 0 82,0867, 2 76215,212294,082
Accumulated depreciation–(6,960)(4,888)(1,365)(6,191)(57, 8 3 4)( 7 7, 2 3 8)
Carrying amount 30 June 20258,76345,8773,0207211,085157, 3 78216,844
2024
Land
$’000
Buildings
$’000
Office &
computer
$’000
Furniture &
fittings
$’000
Leasehold
improvements
$’000
Plant &
equipment
& work in
progress
$’000
To t a l
$’000
Carrying amount 1 July 20238,76348,9601,7345852,498182,676245,216
Additions–39045271,1298,03210,595
Disposals ––(7)–––(7)
Depreciation–(2,607)(656)(417)(2,359)(18,393)(24,432)
Net foreign currency
exchange differences––(2)14(15)6461
Carrying amount 30 June 20248,76346,3561,9737091,253172,379231,433
Cost8,76351,4305,9661,8727,157215,383290,571
Accumulated depreciation–(5,074)(3,993)(1,163)(5,904)(43,004)(59,138)
Carrying amount 30 June 20248,76346,3561,9737091,253172,379231,433
FINANCIAL
STATEMENTS
109

C5. Property, plant and equipment (continued)
Recognition and measurement
All items of property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes
expenditure that is directly attributable to the acquisition of the item.
Work in progress expenditure is capitalised only when the Group can demonstrate the potential for the asset to generate
future economic benefits on completion; and the ability to measure reliably the expenditure attributable to the asset during
its development. Depreciation commences when the asset is available for use.
Depreciation is calculated on a straight-line basis so as to write off the net cost of the asset over its expected useful life to its
estimated residual value. The estimated useful lives, residual values and depreciation methods are reviewed at each year end,
with the effect of any changes in estimate accounted for on a prospective basis. Land is not depreciated. The following estimated
useful lives are used in the calculation of depreciation:
Buildings 20-90 years
Office and computer equipment 2-25 years
Furniture and fittings 5-10 years
Leasehold improvements 2-10 years
Plant and equipment 2-50 years
The carrying value of an item of property, plant and equipment is derecognised either upon disposal or when no future economic
benefits are expected from the asset. Any gain or loss arising from the derecognition (representing the difference between the
net disposal proceeds and the carrying amount of the asset) is included in profit or loss when the asset is derecognised.
Key estimates and judgements
Recoverability and determination of useful lives
If indicators of impairment are present, property, plant and equipment will be subject to impairment testing, which
involves estimates and judgements made with respect to assessing the recoverability of the carrying amount of
property, plant and equipment. Judgement is also involved in determining the useful lives of property, plant and
equipment which are reviewed and adjusted, where required, annually.
Operating assets and liabilities
for the year ended 30 June 2025
110

C6. Investment property
Kyvalley Dairy Group Pty Ltd (Kyvalley) is the Group’s long-term fresh milk supplier in Victoria utilising the Group’s Kyabram
milk processing facility. Kyvalley continues to operate the facility under a long-term operating lease and a long-term supply
agreement. Under these agreements the Group has commenced an expansion and upgrade of the facility, to be subsidised by
increased rent.
The purchase and upgrade of the Kyabram facility is a strategic investment to ensure quality of products and processing
capacity. The related long-term product supply agreement entered into alongside the investment provides ongoing supply from
Kyvalley’s contracted A1 protein free milk pool.
2025
Land
$’000
Buildings
$’000
Plant &
equipment
$’000
Work in
progress
$’000
To t a l
$’000
Carrying amount 1 July 20244854,0146,85819,48830,845
Additions –––5,5105,510
Transfers–12,144–(12,144)–
Depreciation–(730)(989)–(1,719)
Net foreign currency exchange differences(6)(47)(73)(328)(454)
Carrying amount 30 June 202547915,3815,79612,52634,182
Cost47917,4 0 311,41512,52641,823
Accumulated depreciation–(2,022)(5,619)–( 7,6 41)
Carrying amount 30 June 202547915,3815,79612,52634,182
2024
Land
$’000
Buildings
$’000
Plant &
equipment
$’000
Work in
progress
$’000
To t a l
$’000
Carrying amount 1 July 20234834,3298,1654,95017,927
Additions –––14,40514,405
Depreciation–(330)(1,327)–(1,657)
Net foreign currency exchange differences21520133170
Carrying amount 30 June 20244854,0146,85819,48830,845
Cost4855,30611,48819,48836,767
Accumulated depreciation–(1,292)(4,630)–(5,922)
Carrying amount 30 June 20244854,0146,85819,48830,845
Profit arising from investment property
2025
$’000
2024
$’000
Rental income1,2031,160
FINANCIAL
STATEMENTS
111

C6. Investment property (continued)
Future minimum rentals receivable under operating lease
2025
$’000
2024
$’000
Not longer than 1 year2,1171,774
Longer than 1 year and not longer than 5 years10,97710,084
Longer than 5 years15,33817,12 2
Total undiscounted lease payments to be received28,43228,980
Measurement of fair value
The investment property was purchased in September 2020. The Group has not engaged an independent valuer for the current
period. At reporting date, the Directors have determined a fair value of $37,500,000 based on a capitalisation of rent valuation
approach, adopting a capitalisation rate of 7% (2024: $32,200,000, adopting a capitalisation rate of 7.5%). Directors consider
that this calculation represents a reasonable approximation of fair value as at 30 June 2025.
Recognition and measurement
Investment property
Investment property is held primarily to earn rental income and for capital appreciation. It is measured initially at cost,
including transaction costs such as transfer taxes and professional fees for legal services. Subsequent to initial recognition,
the Group elected to measure investment property using the cost model (carried at historical cost less accumulated
depreciation and impairment).
Depreciation is calculated on a straight-line basis so as to write off the net cost of the asset over its expected useful life to its
estimated residual value. The estimated useful lives, residual values and depreciation methods are reviewed at each year end,
with the effect of any changes in estimate accounted for on a prospective basis. Land is not depreciated. The following estimated
useful lives are used in the calculation of depreciation:
Buildings 4-40 years
Plant and equipment 3-25 years
The carrying value of an item of property, plant and equipment is derecognised either upon disposal or when no future economic
benefits are expected from the asset. Any gain or loss arising from the derecognition (representing the difference between the
net disposal proceeds and the carrying amount of the asset) is included in profit or loss when the asset is derecognised.
Work in progress expenditure is capitalised only when the Group can demonstrate the potential for the asset to generate
future economic benefits on completion; and the ability to measure reliably the expenditure attributable to the asset during its
development. Depreciation commences when the asset is available for use.
Rental income
Rental income arising from operating leases on investment property is accounted for on a straight-line basis over the lease term,
and is included in other revenue in the consolidated statement of comprehensive income.
Key estimates and judgements
Recoverability and determination of useful lives
If indicators of impairment are present, investment property will be subject to impairment testing, which involves
estimates and judgements made with respect to assessing the recoverability of the carrying amount of investment
property. Judgement is also involved in determining the useful lives of investment property which are reviewed and
adjusted, where required, annually.
Operating assets and liabilities
for the year ended 30 June 2025
112

C7. Intangible assets
2025
Patents &
Trade marks
$’000
Other
$’000
Goodwill
$’000
To t a l
$’000
Carrying amount 1 July 20244,845 3,865 102,383111,093
Additions–310–310
Amortisation(71)(313)–(384)
Net foreign currency exchange differences–4(104)(100)
Carrying amount 30 June 20254,7743,866102,279110,919
Cost5,5908,906102,279116,775
Accumulated amortisation and impairment(816)(5,040)–(5,856)
Carrying amount 30 June 20254,7743,866102,279110,919
2024
Patents &
Trade marks
$’000
Other
$’000
Goodwill
$’000
To t a l
$’000
Carrying amount 1 July 20234,912 1,160102,347108,419
Additions–3,506–3,506
Disposals–(60)–(60)
Amortisation(67)(740)–(807)
Net foreign currency exchange differences–(1)3635
Carrying amount 30 June 20244,845 3,865 102,383111,093
Cost5,5908,592102,383116,565
Accumulated amortisation and impairment(745)(4,727)–(5,472)
Carrying amount 30 June 20244,845 3,865 102,383111,093
Trade marks are allocated to the following cash-generating units (CGUs) for the purpose of impairment testing: Australia and
New Zealand $318,000 (2024: $318,000); China and Other Asia $3,503,000 (2024: $3,503,000); USA $174,000 (2024: $174,000).
During the year the total value of research and development costs expensed was $5,760,000 (2024: $4,540,000).
Recognition and measurement
The costs of intangible assets other than goodwill are capitalised where there is sufficient evidence to support the probability
of the expenditure generating future economic benefits for the Group. Other includes software and product development costs.
Patents
Patents are considered to have a finite life and are amortised on a straight-line basis over the lifetime of the patent.
Trade marks
Trade marks are not subject to amortisation as they are considered to have an indefinite life and are tested for impairment
annually and whenever there is an indication that the asset may be impaired.
Software
Software is amortised on a straight-line basis over two to three years. The costs of configuring or customising a supplier’s
application software in a Cloud Computing Software-as-a-Service agreement are expensed as incurred.
Product development costs
Product development costs are capitalised when these costs are expected to generate future economic benefits, the underlying
products are technically feasible with adequate resources to complete, there is an intention to complete and use or sell the
products and the costs can be measured reliably. Capitalised development costs are amortised over the expected life of the
developed product which commences at the point at which the asset is ready for use.
FINANCIAL
STATEMENTS
113

C7. Intangible assets (continued)
Recognition and measurement (continued)
Goodwill
Goodwill is recognised on business acquisitions, representing the excess of the cost of acquisition over the Group’s interest
in the net fair value of the identifiable assets, liabilities and contingent liabilities of the business recognised at the date of
acquisition.
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment
losses. For the purposes of impairment testing, goodwill acquired in a business combination is, from the date of acquisition,
allocated to the Group’s cash-generating units that are expected to benefit from the synergies of the combination.
Impairment testing for cash-generating units (CGUs) containing goodwill
Goodwill allocation
For the purposes of impairment testing, goodwill is allocated to the Group’s CGUs which represent the lowest level within the
Group at which goodwill is monitored for internal management purposes as follows:
2025
$’000
2024
$’000
Australia and New Zealand50,54950,653
China51,73051,730
102,279102,383
Recognition and measurement
Impairment testing of non-financial assets
Assets that have an indefinite useful life, such as goodwill and trade marks, are not amortised but are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to
sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units).
Impairment losses are recognised in the consolidated statement of comprehensive income. They are allocated first to reduce the
carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amount of the other assets in the CGU on
a pro-rata basis.
An impairment loss in respect of goodwill is not reversed. Non-financial assets other than goodwill that have been impaired are
reviewed for possible reversal at each reporting date. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
Key estimates and judgements
Goodwill and intangibles
Judgements are made with respect to identifying and valuing intangible assets on acquisitions of new businesses
and the allocation of goodwill to the cash-generating units.
The Group assesses whether goodwill and intangibles with indefinite useful lives are impaired at least annually.
These calculations involve judgements to estimate the recoverable amount of the cash-generating units to which
the goodwill and intangibles with indefinite useful lives are allocated.
Operating assets and liabilities
for the year ended 30 June 2025
114

C7. Intangible assets (continued)
Annual impairment testing as at 30 June 2025
The recoverable amount of CGUs containing goodwill and trade marks has been determined on a value in use basis using a
discounted cash flow approach, and projections based on financial budgets approved by the Board, and four-year forward
looking plans supplied by management.
As at 30 June 2025, the recoverable amount of the Group’s CGUs exceeds their carrying amounts. The directors believe that no
reasonably possible change in any of the key assumptions relating to current plans would cause the recoverable amount of these
CGUs to be less than their carrying values. Based on this assessment, no impairment write-downs are considered necessary.
Key assumptions
Gross margins
Gross margins are based on budgeted margins for FY26, and estimates for future years, adjusted where appropriate to account
for expected future trading conditions. Consideration has been given to the growth profile of each CGU when forecasting future
margin returns.
Discount rates
Discount rates (post-tax): 9.4% (2024: 9.6%).
Discount rates represent the risks specific to each CGU, taking into consideration the time value of money and individual risks
of the underlying cash flows expected from the CGU being assessed. CGU specific risk is incorporated by applying individual
beta factors. The discount rate calculation is based on the specific circumstances of the Group and its CGUs and is derived from
its weighted average cost of capital (WACC). The WACC considers both debt and equity. The cost of equity is derived from the
expected return on investment by the Group’s investors.
Revenue growth
Revenue projections have been constructed with reference to the FY26 budget and four-year forward-looking plans and adjusted
for recent performance trends across the regions (where necessary).
Terminal growth rate
A terminal growth rate of 2.0% (2024: 2.0%) has been used for future cash flow growth beyond the forecast period.
The terminal value (being the total value of expected cash flows beyond the forecast period) is discounted to present values
using the discount rate specific to each CGU.
Sensitivity to change in assumptions
The calculation of value in use is most sensitive to the following assumptions:
–Gross margins
–Discount rates
–Revenue growth during the forecast period
–Growth rates used to extrapolate cash flows beyond the forecast period (terminal growth rate)
FINANCIAL
STATEMENTS
115

C8. Other financial assets
2025
$’000
2024
$’000
Current
Foreign currency forward contracts10,9498,739
Non-current
Foreign currency forward contracts5,259255
Listed investment at fair value74,1749,754
Unlisted investment at fair value2,5253,500
81,95813,509
Shareholding in Synlait Milk Limited
The listed investment is a 19.8% holding in shares in Synlait Milk Limited (Synlait). Synlait is a dairy processing company
(listed on NZX and the ASX) with which the Group has an ongoing Nutritional Powders Manufacturing and Supply Agreement.
No dividends were received from this investment during the year (2024: $nil).
In October 2024, the Group participated in Synlait’s recapitalisation via an equity raise, acquiring a further 76,283,104 shares for
$32,802,000. For the purposes of ASX quotation requirements in respect of the new shares issued to the Group, it entered into a
voluntary escrow deed poll under which it undertook not to sell, assign, or otherwise dispose of, or transfer the effective control
of, the 76,283,104 shares acquired under the placement for a period of 12 months from the date of allotment. This restriction is
subject to certain exceptions.
There was no change to the Group’s total percentage holding in Synlait, which remains at 19.8% (2024: 19.8%).
A fair value gain of $31,618,000 (2024: $62,211,000 loss) was recognised in other comprehensive income for the year.
Movements in the period
Shares
’000
Cost
$’000
Share price at
report date
$
Market value
$’000
Mark to market
$’000
Balance 30 June 202443,353288,7810.2259,754(279,027)
Placement76,28332,802
Balance 30 June 2025119,636321,5830.6274,174(247,4 0 9)
Fair value gain in period31,618
Shareholding in Centre for Climate Action Joint Venture (AgriZero
NZ
)
The unlisted investment relates to the Group’s investment in the Centre for Climate Action Joint Venture (trading as AgriZero
NZ
)
which is a public-private partnership between the New Zealand Government and major agribusiness companies. Given this is
a strategic long-term investment, the Group made a one-time irrevocable election to measure its 1.83% interest at fair value
through other comprehensive income.
A fair value loss of $975,000 (2024: nil) was recognised in other comprehensive income for the year.
Recognition and measurement
These listed and unlisted investments are long-term investments classified as financial assets measured at fair value
through other comprehensive income. The Group does not control or have significant influence over the investees.
Unrealised gains or losses arising from changes in fair value are recognised through other comprehensive income in the
Fair Value Revaluation Reserve within equity.
Foreign currency forward contracts are stated at fair value, calculated by reference to current forward exchange rates for
contracts with similar profiles, adjusted to reflect the credit risk of the various counterparties.
Operating assets and liabilities
for the year ended 30 June 2025
116

C9. Other financial liabilities
2025
$’000
2024
$’000
Current
Foreign currency forward contracts8,1826,223
Non-current
Foreign currency forward contracts4,262174
Recognition and measurement
Foreign currency forward contracts are stated at fair value, calculated by reference to current forward exchange rates for
contracts with similar profiles, adjusted to reflect the credit risk of the various counterparties.
Key estimates and judgements
Fair value measurement of foreign currency forward contracts
The fair value of foreign currency forward contracts is measured using valuation techniques. The inputs to these
models are taken from observable markets where possible; but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of these
financial instruments.
FINANCIAL
STATEMENTS
117

Financial risk and capital management
for the year ended 30 June 2025
D. Financial risk and capital management
This section outlines how the Group manages exposure to financial risk and capital structure, and provides details of its balance
sheet liquidity and access to financing facilities.
D1. Financial risk management
Financial risk management objectives
Exposure to credit risk, market risk (including currency risk, commodity price risk, interest rate risk, and equity price risk), and
liquidity risk arises in the normal course of the Group’s business.
The Group’s financial risk management processes and procedures seek to minimise the potential adverse impacts that may arise
from the unpredictability of financial markets.
The Group’s centralised treasury department (Group Treasury) provides treasury services to the business, co-ordinates access
to domestic and international financial markets, and monitors and manages liquidity. The Group’s corporate function monitors
financial risks relating to the operations of the Group through internal risk reports which analyse exposures by degree and
magnitude of these risks.
Policies and procedures are reviewed periodically to reflect both changes in market conditions and changes in the nature and
volume of Group activities.
The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative
purposes. Specific risk management objectives and policies are set out below.
The Group uses various methods to measure different types of risk exposures. These methods include ageing analysis for credit
risk, and sensitivity analysis in the case of foreign exchange risks and equity price risk.
Credit risk management
Credit risk is the risk of financial loss to the Group if a customer or the counterparty to a financial instrument fails to meet its
contractual obligations.
2025
$’000
2024
$’000
Maximum exposures to credit risk at balance date:
Cash and term deposits (counterparty risk)1,100,171968,943
Trade receivables (customer credit risk)61,78750,726
Foreign currency forward contracts (counterparty risk)16,2088,994
1,178,1661,028,663
Counterparty risk
At balance date, the Group’s bank accounts were held with banks with acceptable credit ratings determined by recognised credit
agencies, including National Australia Bank, ANZ Bank, Westpac Bank, ASB Bank, Bank of New Zealand, HSBC Bank, Bank of
China and JP Morgan Chase Bank.
Counterparties to derivative financial instruments are large banks with which the Group has existing banking relationships, with
acceptable credit ratings determined by recognised credit agencies.
The Group does not have any other concentrations of counterparty credit risk.
118

D1. Financial risk management (continued)
Credit risk management (continued)
Customer credit risk
The Group’s exposure to customer credit risk is influenced mainly by the individual characteristics of each customer. The
majority of sales on credit are to major retailers and other significant customers with established creditworthiness and minimum
levels of default. Other sales are made as cash on delivery.
New customers are analysed individually for creditworthiness, taking into account credit ratings where available, financial
position, previous trading experience and other factors.
In monitoring customer credit risk, customers are assessed individually by their debtor ageing profile. Monitoring of receivable
balances on an ongoing basis minimises the exposure to bad debts. Historically, bad debt write-offs have been negligible.
There are no significant credit risk concentrations within the Group as at 30 June 2025. There are no other forward-looking
indicators to indicate increases in customer credit risk.
The allowance for expected credit losses is recognised based on an assessment of lifetime expected credit losses.
Ageing of trade receivables at reporting date
2025
$’000
2024
$’000
Not past due58,03147,0 5 4
Past due up to 90 days3,4133,314
Past due 91 to 180 days143358
Past due 181 days to one year200–
More than one year––
61,78750,726
Allowance for expected credit losses––
61,78750,726
The average credit period on sales is 11 days (2024: 13 days). No interest is charged on trade receivables outstanding.
Movement in impairment allowance for expected credit loss
2025
$’000
2024
$’000
Balance at beginning of year–45
Amount reversed to the consolidated statement of comprehensive income–(43)
Provisions reversed and net foreign exchange differences–(2)
Balance at end of year––
Market risk management
Market risk is the risk that changes in market prices will affect the Group’s income or the value of its holdings in financial
instruments. The Group’s activities expose it primarily to the financial risks of change in foreign currency exchange rates to
the NZ dollar, and to interest rate risk. Prices charged by manufacturers (including pricing of whole and skim milk powders)
are subject to movements in commodity milk pricing. The Group’s holding of a listed and unlisted investment also exposes it
to equity price risk.
Market risk exposures are monitored by management on an ongoing basis and there has been no change during the year to
the Group’s exposure to market risks or the way it manages and measures risk.
FINANCIAL
STATEMENTS
119

D1. Financial risk management (continued)
Interest risk management
The Group’s main interest rate risks arise from term deposits and borrowings. Term deposits and borrowings issued at variable
rates expose the Group to cash flow interest rate risk. Term deposits and borrowings at fixed rates expose the Group to fair value
interest rate risk. These risks have not been hedged given the limited exposure.
Term deposits and bank borrowings are primarily with New Zealand banks, in New Zealand dollars, at New Zealand market rates.
Fixed and variable rate exposure
2025
$’000
2024
$’000
Fixed rate instruments
Financial assets500,000500,000
Financial liabilities( 7 7,76 4)(3 7, 8 9 0)
422,236462,110
Variable rate instruments
Financial assets409,514318,674
409,514318,674
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss and does not
employ derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. A change in interest
rates at the reporting date would not affect profit or loss for the Group.
Cash flow sensitivity analysis for variable rate instruments
A reasonably possible change of 100 basis points in interest rate at the reporting date would have increased or decreased
profit or loss by $4,095,000 (2024: $3,187,000). This analysis assumes all other variables remain the same.
Foreign currency risk management
The Group’s exposure to foreign currency risk arises principally from its operations in China, Australia, and USA; and the
resultant movements in the currencies of those countries against the NZ dollar.
The Group hedges a portion of this risk using derivative financial instruments such as foreign currency forward contracts,
designated as cash flow hedges, to hedge certain highly probable foreign currency transactions. These contracts are executed
by Group Treasury in accordance with the Group’s Treasury Risk Policy.
The Group may also transfer cash balances from time to time between currencies to reduce exposure or to match
underlying liabilities.
Financial risk and capital management
for the year ended 30 June 2025
120

D1. Financial risk management (continued)
Foreign currency risk management (continued)
Hedging currency risk
On entering into a hedging relationship, the Group formally designates and documents the hedge relationship and the risk
management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging
instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging
instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the
hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are
assessed on an ongoing basis to determine that they were actually highly effective throughout the financial reporting periods
for which they are designated.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges, which hedge exposure to
variability in cash flows of a highly probable forecasted transaction, are recognised directly in other comprehensive income
and accumulated in the hedging reserve. The ineffective portion is recognised in profit or loss within other expenses. Hedge
accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised. At that point in time,
any cumulative gain or loss on the hedging instrument recognised in equity is kept in equity until the forecasted transaction
occurs or until cash flows arising from the transaction are received. The amount recognised in other comprehensive income is
transferred to profit or loss in the same period that the hedged item affects profit or loss. If the forecast transaction is no longer
going to occur the item is transferred to profit or loss when hedging is discontinued.
The gross value to be received or paid and the weighted average contracted exchange rates for foreign currency forward
contracts outstanding at year end are as follows:
Carrying amount
(asset)/liability
Te r m
Notional amount
NZ dollars
Weighted average
exchange rate
2025
$’000
2024
$’000
2025
$’000
2024
$’00020252024
RMB
Buy USD/sell RMB
(non-deliverable
forward)
174( 7, 2 8 2)One year or less385,497322,3960.14170.1421
Buy USD/sell RMB
(non-deliverable
forward)
1,881(27)More than one year166,4072,3530.14210.1426
Buy RMB/sell NZD5,6984,332One year or less182,284167,1000.23830.2337
Buy RMB/sell NZD1,67756More than one year71,8672,3710.23960.2371
USD
Buy NZD/sell USD(8,639)512One year or less296,557269,8510.59600.6105
Buy NZD/sell USD(4,555)(129)More than one year112,81433,3860.58500.6066
AUD
Buy NZD/sell AUD–(72)One year or less–47, 8 11–0.9098
Buy NZD/sell AUD–19More than one year–5,480–0.9124
Buy EUR/sell AUD–(6)One year or less–610–1.5941
The carrying amount of foreign currency forward contracts is recognised in Other financial assets (refer to Note C8) and
Other financial liabilities (refer to Note C9).
The foreign currency forward contracts are considered to be highly effective hedges. There was no significant cash flow hedge
ineffectiveness in the current year.
FINANCIAL
STATEMENTS
121

D1. Financial risk management (continued)
Foreign currency risk management (continued)
Expressed in NZ dollars, the table below indicates exposure and sensitivity to movements in exchange rates on the
pre-tax equity of the Group based on closing exchange rates as at 30 June 2025, applied to the Group’s foreign currency
forward contracts at 30 June 2025. Exchange rates and foreign currency forward contracts will fluctuate over the course
of normal operations.
2025
Impact on pre-tax equity
gain or (loss)
$’000$’000
Movement on exchange rate +10%-10%
Chinese Yuan Renminbi(33,941)2 7,6 2 1
US Dollar(42,636)34,699
2024
Impact on pre-tax equity
gain or (loss)
$’000$’000
Movement on exchange rate +10%-10%
AU Dollar(5,842)4,553
Chinese Yuan Renminbi(17, 2 10)13,270
US Dollar(33,106)26,276
Expressed in NZ dollars, the table below indicates exposure and sensitivity to movements in exchange rates on the profit or loss
of the Group based on closing exchange rates as at 30 June, applied to the Group’s unhedged financial assets/(liabilities) at 30
June. Exchange rates and assets and liabilities held in foreign currencies will fluctuate over the course of normal operations.
The analysis is performed consistently from year to year.
2025
Net exposure on
reporting date
$’000
Impact on pre-tax profit or (loss)
$’000$’000
Movement on exchange rate v NZ dollar–+10%-10%
AU Dollar(1,697)(189)154
US Dollar92,61710,291(8,420)
Chinese Yuan Renminbi(162,415)(18,046)14,765
2024
Net exposure on
reporting date
$’000
Impact on pre-tax profit or (loss)
$’000$’000
Movement on exchange rate v NZ dollar–+10%-10%
AU Dollar54861(50)
US Dollar3,097344(282)
Chinese Yuan Renminbi(141,485)(15,721)12,682
As the unhedged foreign currency denominated monetary financial instruments of the Group consist only of cash, and trade and
other receivables and payables, foreign exchange movements do not have any impact on equity, other than the above-mentioned
impact on profit or loss.
Financial risk and capital management
for the year ended 30 June 2025
122

D1. Financial risk management (continued)
Foreign currency risk management (continued)
Exchange rates
The following significant exchange rates applied during the year:
Average rateReporting date spot rate
2025202420252024
AU Dollar0.91210.92510.92680.9152
US Dollar0.59080.60680.60640.6062
Chinese Yuan Renminbi4.26234.38354.34784.4059
Equity price risk
The Group is exposed to equity price risk on its listed investment classified and measured at fair value through other
comprehensive income (FVOCI). This risk is not hedged.
The Group monitors this risk exposure by comparing the movement in the quoted share price of this long-term investment
against movements in the S&P/NZX 50 index over the same period.
As at 30 June 2025, the exposure to the listed investment at FVOCI was $74,174,000 (2024: $9,754,000). A 10% increase or
decrease in the share price of this listed investment would result in an increase or decrease of $7,417,000 (2024: $975,000)
in the fair value revaluation reserve through other comprehensive income, with no effect on profit or loss.
The Group is exposed to equity price risk on its unlisted investment classified and measured at FVOCI. This risk is not hedged.
The Group monitors this risk exposure by reviewing latest financial information for the public-private partnership in relation to
the Group’s interest.
As at 30 June 2025, the exposure to the unlisted investment at FVOCI was $2,525,000 (2024: $3,500,000). A 10% increase or
decrease in the value of this unlisted investment would result in an increase or decrease of $253,000 (2024: $350,000) in the fair
value revaluation reserve through other comprehensive income, with no effect on profit or loss.
Liquidity risk management
Liquidity risk is the risk that the Group will be unable to meet its obligations as they fall due. This risk is managed by
establishing a target minimum liquidity level, ensuring that ongoing commitments are managed with respect to forecast
available cash inflows.
The Group holds significant cash reserves which enable it to meet its obligations as they fall due, and to support operations
in the event of unanticipated external events.
Loans and borrowings within the Group are specific to the operations of Mataura Valley Milk Limited (refer to Note D6).
No other entities within the Group have borrowings (2024: $nil).
FINANCIAL
STATEMENTS
123

D1. Financial risk management (continued)
Contractual maturities of financial liabilities
The contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting
arrangements, are set out below. No interest is payable on trade and other payables.
2025
Carrying
amounts
$’000
Contractual cash flows
To t a l
$’000
6 months
or less
$’000
6 to 12
months
$’000
1 to 2
years
$’000
2 to 5
years
$’000
More than
5 years
$’000
Non-derivative financial liabilities
Secured bank loans39,00039,39939,399––––
Unsecured loan from MVM’s
non-controlling shareholder38,76440,770––40,770––
Lease liabilities22,97229,2703,6543,2054,37610,4997, 5 3 6
Trade and other payables – excluding employee
entitlements and customer contract liabilities 319,205319,205319,205––––
Derivative financial liabilities
FX hedging contracts:
Carrying amount at fair value 12,444
Outflow6 9 7, 20 3164,771290,600241,832––
Inflow(684,759)(161,532)(284,953)(238, 274)––
432,385441,088365,4978,85248,70410,4997, 5 3 6
2024
Non-derivative financial liabilities
Secured bank loans–––––––
Unsecured loan from MVM’s
non-controlling shareholder3 7, 8 9 040,872–––40,872–
Lease liabilities28,33035,5323,5663,5606,68711,65010,069
Trade and other payables – excluding employee
entitlements and customer contract liabilities 321,935321,935321,935––––
Derivative financial liabilities
FX hedging contracts:
Carrying amount at fair value 6,397
Outflow360,974190,794153,64016,540––
Inflow(354,577)(186,977)(151,235)(16,365)––
394,552404,736329,3185,9656,86252,52210,069
Financial risk and capital management
for the year ended 30 June 2025
124

D1. Financial risk management (continued)
Change in liabilities arising from financing activities
30 June 2024
$’000
Cash flow
$’000
Non-cash
$’000
30 June 2025
$’000
Secured bank loans–39,000–39,000
Unsecured loan from MVM’s non-controlling shareholder3 7, 8 9 0–87438,764
Lease liabilities28,330( 7, 5 5 4)2,19622,972
66,220 31,4463,070100,736
Carrying amounts versus fair value
The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statement of
financial position, are as follows:

Hierarchy
level
20252024
Carrying
amount
$’000
Fair Value
$’000
Carrying
amount
$’000
Fair Value
$’000
Cash and term deposits 1,100,1711,100,171968,943968,943
Trade and other receivables 92,24692,24678,07078,070
Foreign currency forward contract assets 216,20816,2088,9948,994
Listed investment 174,17474,1749,7549,754
Unlisted investment32,5252,5253,5003,500
Secured bank loans 2(39,000)(38,853)––
Unsecured loan from MVM’s non-controlling
shareholder2(38,764)(3 7,16 4)(3 7, 8 9 0)(33,367)
Trade and other payables – excluding employee
entitlements and customer contract liabilities (319,205)(319,205)(321,935)(321,935)
Foreign currency forward contract liabilities2(12,444)(12,444)(6,397)(6,397)
875,9118 7 7,6 5 8703,03970 7, 5 6 2
Fair value hierarchy
Financial instruments carried at fair value are classified by valuation method based on the following hierarchy:
–Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
–Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
–Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Carrying amount (equalling fair value) is applied consistently in the current and prior year to assets and liabilities
not recognised in the consolidated statement of financial position at fair value.
Estimation of fair value
The following methods and assumptions are used in estimating the fair values of financial instruments:
–Listed investment – closing share price on NZX.
–Unlisted investment – latest financial information from the public-private partnership.
–Foreign currency forward contracts – calculated by reference to current forward exchange rates for contracts with similar
maturity profiles, adjusted to reflect the credit risk of the various counterparties.
–Loans and borrowings – present value of future principal and interest cash flow, discounted at the market rate of interest
at the reporting date.
–Cash and term deposits, trade and other receivables and payables – carrying amount approximates fair value.
FINANCIAL
STATEMENTS
125

D2. Capital management
The Group’s objective when managing its capital is to safeguard the Group’s ability to continue as a going concern and to
generate long-term value for stakeholders. The Group is not subject to externally imposed capital requirements, and currently
has no debt, other than loans and borrowings specific to Mataura Valley Milk Limited (refer to Note D6).
The Board continuously assesses its capital position in order to deliver the optimum structure to drive shareholder returns in
line with the Company’s strategy and capital allocation framework.
In November 2024, the Company announced the establishment of a dividend policy that targets a payout ratio range between
60% and 80% of normalised net profit after tax. Subsequently, the Company announced its first interim dividend of 8.5 cents per
ordinary share in February 2025 which was paid to shareholders in April 2025. This represented a payout ratio of approximately
67% of net profit after tax, equating to approximately $61.5 million, and was fully imputed and fully franked.
On 18 August 2025, the Company announced a final dividend of 11.5 cents per ordinary share partially imputed at 78.22%
and fully franked, representing a payout ratio of approximately 75%, equating to approximately $83.4 million, to be paid on
3 October 2025.
The total dividends announced by the Company relating to the year-ended 30 June 2025 were 20.0 cents per ordinary
share representing a total payout ratio of approximately 71% which equates to approximately $145 million being returned
to shareholders.
On an ongoing basis, dividends are expected to be paid on a semi-annual basis each year at a level consistent with the payout
ratio range.
In determining future dividends, a number of factors will be taken into consideration, including market conditions, current and
future earnings, cash flows, capital requirements and the Company’s financial position.
The Company intends to impute and frank dividends to the maximum extent possible subject to available credits, noting that
imputation credits are limited.
As the Company continues to execute its strategy and risk evolves, the Board will continue to regularly assess the Group’s
balance sheet position when considering how to deliver the optimum structure to enhance shareholder value in line with the
Company’s strategy and capital allocation framework.
D3. Cash and term deposits
2025
$’000
2024
$’000
Cash at banks and on hand190,657150,269
Short-term deposits409,514 368,674
Cash and short-term deposits600,171 518,943
Other current term deposits 500,000 450,000
Cash and term deposits1,100,171 968,943
Expressed in NZ dollars, cash and term deposits comprises of the following foreign currencies:
2025
$’000
2024
$’000
AU dollars12,11510,953
US dollars66,438 38,099
Chinese Yuan Renminbi95,16284,498
Financial risk and capital management
for the year ended 30 June 2025
126

D3. Cash and term deposits (continued)
Bank balances and cash comprise cash held by the Group. Cash and short-term deposits earn interest at floating rates based
on daily bank deposit rates. The carrying value of cash assets and term deposits approximates their fair value.
Other current term deposits comprise term deposits with a maturity greater than three months and less than 12 months, having
an average maturity of seven months and a weighted average interest rate of 4.22% per annum.
Term deposits are presented as cash equivalents in the consolidated statement of cash flows if they have a maturity of less than
three months and are readily convertible to known amounts of cash with no significant risk of changes in value.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents comprise the following:
2025
$’000
2024
$’000
Cash at banks and on hand190,657150,269
Short-term deposits409,514 368,674
Cash and short-term deposits600,171 518,943
D4. Cash flow information
Reconciliation of after tax profit with net cash flows from operating activities:
2025
$’000
2024
$’000
Net profit for the year192,091153,882
Adjustments for non-cash items:
Depreciation and amortisation 26,33832,199
Share-based payments13,54510,727
Net foreign exchange (gain)/loss(2,821)2,766
Gain on termination of leases(53)(229)
Loss on disposal of software–60
Changes in working capital:
Trade and other receivables(14,176)1,146
Prepayments(55,977)(6,863)
Inventories40,53513,792
Trade and other payables6,54240,221
Tax balances(4,547)8,043
Net cash inflow from operating activities201,477255,744
FINANCIAL
STATEMENTS
127

D5. Leases
Group as lessee
The Group has entered into leases for office and industrial premises, motor vehicles and plant and equipment. There are no
financial restrictions placed upon Group entities by entering into these leases. The Group has the option, under some leases, to
lease the assets for additional terms. All lease contracts with options to renew contain market review clauses in the event that
an option to renew is exercised.
Right-of-use assets
Carrying amounts of right-of-use assets recognised and movements during the period:
2025
Leased
property
$’000
Office &
computer
$’000
Plant &
equipment
$’000
To t a l
$’000
Carrying amount 1 July 202415,3191410,58825,921
Additions 2,2681623262,756
Modifications(1,521)––(1,521)
Disposals(436)–(392)(828)
Depreciation(4,599)(32)(1,504)(6,135)
Net foreign currency exchange differences40(4)(3)33
Carrying amount 30 June 202511,0711409,01520,226
Cost32,18334612,74245,271
Accumulated depreciation(21,112)(206)(3,727)(25,045)
Carrying amount 30 June 202511,0711409,01520,226
2024
Leased
property
$’000
Office &
computer
$’000
Plant &
equipment
$’000
To t a l
$’000
Carrying amount 1 July 202316,4715682217, 3 49
Additions 2,981–10,82913,810
Depreciation(4,195)(41)(1,067)(5,303)
Net foreign currency exchange differences62(1)465
Carrying amount 30 June 202415,3191410,58825,921
Cost31,83218812,81144,831
Accumulated depreciation(16,513)(174)(2,223)(18,910)
Carrying amount 30 June 202415,3191410,58825,921
Financial risk and capital management
for the year ended 30 June 2025
128

D5. Leases (continued)
Group as lessee (continued)
Lease liabilities
Carrying amounts of lease liabilities and movements during the period:
2025
$’000
2024
$’000
Balance at beginning of the year28,33019,490
Additions2,75613,810
Modifications(1,521)–
Disposals(828)–
Gain on termination of lease(53)(229)
Accretion of interest1,8211,493
Payments( 7, 5 5 4)(6,302)
Net foreign currency exchange differences2168
Balance at end of the year22,97228,330
Current5,3695,598
Non-current17,60322,732
22,97228,330
Amounts recognised in profit or loss
2025
$’000
2024
$’000
Depreciation expense – right-of-use assets6,1355,303
Interest expense – lease liabilities1,8211,493
Expenses relating to short-term leases (included in administrative and other expenses)745772
Expenses relating to low-value assets (included in administrative and other expenses)174
Total amount recognised in profit or loss8,7187, 57 2
Cash flows for leases
2025
$’000
2024
$’000
Total cash outflows:
Lease interest1,8211,493
Payment of lease principal5,7334,809
7, 5 5 46,302
Non-cash additions to right-of-use assets and lease liabilities2,75613,810
FINANCIAL
STATEMENTS
129

D5. Leases (continued)
Recognition and measurement
A right-of-use asset and a lease liability are recognised at the lease commencement date.
The right-of-use asset is initially measured at cost, and subsequently at cost, less accumulated depreciation as the asset is
written off over the term of the lease, impairment losses, and any adjustments for remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments payable from the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental
borrowing rate.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It
is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate
of the amount expected to be payable, or changes in the assessment of whether a purchase or extension option is reasonably
certain to be exercised.
Key estimates and judgements
Determination of the lease term
Judgement is applied to determine the lease term for those lease contracts that include renewal or termination
options. This assessment impacts the lease term, which may significantly affect the amount of lease liabilities and
right-of-use assets recognised.
In determining the lease term consideration is given to all facts and circumstances that create an economic incentive
to exercise an extension option, or not to exercise a termination option.
Group as lessor
Refer to Note C6: Investment property.
Financial risk and capital management
for the year ended 30 June 2025
130

D6. Loans and borrowings
2025
$’000
2024
$’000
Current
Secured:
Bank loans 39,000–
39,000–
Non-current
Unsecured:
Loan from MVM’s non-controlling shareholder 38,7643 7, 8 9 0
38,7643 7, 8 9 0
All of the loans and borrowings are specific to Mataura Valley Milk Limited (MVM) and are interest bearing.
The average interest rate applicable at 30 June 2025 for the current bank loans was 4.09%.
Finance facilities available to MVM:
–Total bank debt facilities of $45 million (30 June 2024: $45 million), of which $39 million was drawn as at 30 June 2025
(30 June 2024: undrawn).
–A performance guarantee facility of $10 million, fully drawn as at 30 June 2025 (30 June 2024: $10 million, fully drawn).
The bank loans are secured against MVM’s property at Pease Street, Gore, New Zealand, and are subject to compliance with
financial covenants requiring the maintenance of specified financial ratios, related solely to MVM. All borrowing covenant ratios
and limits have been complied with as at 30 June 2025.
The unsecured subordinated loan is provided by MVM’s non-controlling shareholder. The non-current loan has an initial term
through to FY27, to be repaid thereafter at a time to be agreed by the shareholder lenders. The interest rate applicable as at
30 June 2025 was 2.56% (30 June 2024: 2.56%).
Other Group entities have access to bank guarantee facilities totalling $1,154,000 of which $907,000 was drawn as at 30 June
2025 (30 June 2024: $1,206,000 of which $457,000 was drawn).
Recognition and measurement
Interest bearing loans and borrowings are initially recognised at fair value at transaction date, less directly attributable
transaction costs, and subsequently measured at amortised cost using the effective interest rate method.
FINANCIAL
STATEMENTS
131

D7. Share capital

20252024
Number of
shares
Share capital
$’000
Number of
shares
Share capital
$’000
Movements in contributed equity:
Fully paid ordinary shares:
Balance at beginning of year722,934,808100721,976,214100
Movements in the period:
Vesting of performance rights1,084,310–958,594–
1,084,310–958,594–
Balance at end of year724,019,118100722,934,808100
Holders of fully paid ordinary shares are entitled to receive dividends as may be paid from time to time and are entitled to one
vote per share at shareholders’ meetings.
The Company does not have authorised capital or par value in respect of its issued shares.
Financial risk and capital management
for the year ended 30 June 2025
132

D8. Dividends
Dividends paid during the year are as follows:
20252024
Interim dividend
Total paid $’00061,542–
Cents per ordinary share8.50–
Imputation
Imputation percentage100%–
Imputation credit – cents per ordinary share3.31–
Franking
Franking percentage100%–
Franking credit – cents per ordinary share3.64–
Key dates
Ex-dividend date20 March 2025–
Record date21 March 2025–
Payment date4 April 2025–
Since the end of the year, the Directors have approved the payment of a final dividend amounting to approximately $83.4 million,
proposed out of retained earnings, but not recognised as a liability at 30 June 2025.
Final dividend
Cents per ordinary share11.50
Imputation
Imputation percentage78.22%
Imputation credit – cents per ordinary share3.50
Franking
Franking percentage100%
Franking credit – cents per ordinary share4.93
Key dates
Ex-dividend date18 September 2025
Record date19 September 2025
Payment date3 October 2025
FINANCIAL
STATEMENTS
133

D9. Nature and purpose of reserves
Employee equity settled payments reserve
The employee equity settled payments reserve is used to record the value of share-based payments provided to employees
and contractors, including key management personnel.
Fair value revaluation reserve
The fair value revaluation reserve is used to record movements in the fair value of listed and unlisted investments classified
as financial assets measured at fair value through other comprehensive income.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial
statements of foreign operations.
Treasury shares reserve
The treasury shares reserve comprises the cost, net of any tax effects, of the Company’s shares purchased and held by the
trustee of the a2MC Group Employee Share Trust to be available solely for participants in Group employee share plans. When
treasury shares subsequently vest to employees under employee share plans, the carrying value of the vested shares is
transferred to the employee equity settled payments reserve.
20252024
Number of
shares$’000
Number of
shares$’000
Movements in treasury shares reserve:
Balance at beginning of year1,307,5768,7062,042,94813,602
Movements in the period:
Vesting of performance rights(799,528)(5,323)(735,372)(4,896)
(799,528)(5,323)(735,372)(4,896)
Balance at end of year508,0483,3831,307,5768,706
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used
in cash flow hedges pending subsequent recognition in profit or loss when the associated hedged transactions are recognised in
profit or loss.
Movements on these reserve accounts are set out in the consolidated statement of changes in equity.
Financial risk and capital management
for the year ended 30 June 2025
134

D10. Capital expenditure commitments
2025
$’000
2024
$’000
Contracted but not yet provided for and payable
Property, plant and equipment 1,7476,545
D11. Contingent liabilities
The Company is the defendant in a group proceeding in the Supreme Court of Victoria, jointly conducted by Slater & Gordon
Lawyers and Shine Lawyers (the Australian Proceedings). The Australian Proceedings, now consolidated, were commenced in
October and November 2021 respectively. The Australian Proceedings relate to the period from 19 August 2020 to 9 May 2021
inclusive (Relevant Period) and makes allegations that the Company engaged in misleading and deceptive conduct and breached
its disclosure obligations by failing to disclose certain information to the market. The claim is said to be brought on behalf of
shareholders who acquired an interest in fully paid ordinary shares in the Company: (1) during the Relevant Period; or (2) prior to
19 August 2020 and retained those shares until a date after 28 September 2020.
The claim makes allegations under both Australian and New Zealand law. On 28 November 2022, the Supreme Court of Victoria
ruled that it has jurisdiction to hear and determine the claims brought under New Zealand law.
On 18 May 2022, the Company announced that a representative proceeding had been filed in the High Court of New Zealand
which names the Company as the defendant (the New Zealand Proceeding). The New Zealand Proceeding, filed by Thorn Law and
funded by CHC Investment Fund III Pty Limited relates to the same period (19 August 2020 to 9 May 2021) and makes allegations
under New Zealand law only which are substantially the same as those advanced in the Australian Proceedings. On 28 April 2025
the Company was notified that Hamilton Locke (NZ) Limited became solicitor on the record in the New Zealand Proceedings.
The claim is commenced on behalf of group members who acquired an interest in ordinary shares in the Company on the ASX
and/or the NZSX: (1) during the Relevant Period; and (2) prior to the Relevant Period and continued to hold some or all of those
shares for part or all of the Relevant Period; and (3) those who fall into both categories (1) and (2).
The Company filed an interlocutory application for a stay of the New Zealand Proceeding under the Trans-Tasman Proceedings
Act 2010 (NZ) on 23 June 2022. On 23 January 2023, the Auckland High Court granted the Company’s application for a stay of
the New Zealand Proceeding, pending judgment on liability or a final settlement of the Australian Proceedings, whichever occurs
first.
The Company filed its defence in the Australian Proceedings on 8 November 2022 and, in response to an amended pleading filed
on 14 March 2024, an amended defence on 10 April 2024. The Company has not filed a defence in the New Zealand Proceeding,
which is stayed.
The plaintiffs and the Company are to file their evidence in the Australian Proceedings during 2025 and early 2026 and the
matter has been listed for a further case management conference on 29 August 2025. A trial has been set for a period of seven
weeks commencing on 2 June 2026.
The Company considers that it has at all times complied with its disclosure obligations and has no present obligation in relation
to this claim, denies any liability and will vigorously defend the proceedings.
The claims of group members have not yet been and are not required to be quantified. Based on the current status of the
Australian Proceedings and the New Zealand Proceeding, it is not practicable to provide: (a) an estimate of the financial effect;
(b) an indication of the uncertainties relating to the amount or timing of any outflow; or (c) the possibility of any reimbursement.
FINANCIAL
STATEMENTS
135

E. Group structure
This section provides details of the Group structure and the entities included in the consolidated financial statements.
E1. Consolidated entities
Details of the Company’s subsidiaries at 30 June 2025 are as follows:
Parties to
Deed of
Cross
Guarantee
(note E2)
1
Principal place
of business
Proportion of
ownership interest
20252024
Parent entity:
The a2 Milk Company Limited✓New Zealand––
Subsidiaries:
The a2 Milk Company (Export) Limited –New Zealand100%100%
a2 Holdings UK Limited–New Zealand100%100%
a2 Infant Nutrition Limited✓
2
New Zealand100%100%
The a2 Milk Company (New Zealand) Limited –New Zealand100%100%
Mataura Valley Milk Limited–New Zealand75%75%
a2 Australian Investments Pty. Limited ✓Australia100%100%
a2 Botany Pty Ltd
3
–Australia100%100%
The a2 Milk Company (Australia) Pty Ltd✓Australia100%100%
a2 Exports Australia Pty Limited✓Australia100%100%
a2 Infant Nutrition Australia Pty Ltd✓Australia100%100%
The a2 Milk Company (Nutrition) Pty Ltd✓Australia100%100%
a2MC Group Employee Share Trust–Australia100%100%
a2 ESS Holdings Pty Limited–Australia100%100%
The a2 Milk Company LLC–USA100%100%
The a2 Milk Company–USA100%100%
The a2 Milk Company Limited–Canada100%100%
a2 Infant Nutrition (Shanghai) Co., Ltd–China100%100%
The a2 Milk Company (Shanghai) Limited–China100%100%
The a2 Milk Company (Singapore) Pte. Ltd–Singapore100%100%
1 Each party to the Deed of Cross Guarantee is a member of the ‘closed group’ under the ASIC Corporations (Wholly-owned Companies) Instrument
2016/785.
2 a2 Infant Nutrition Limited is the subject of an ASIC declaration under section 601 CK(7) of the Corporations Act 2001 (Cth, Australia), providing relief
from the requirement to prepare and lodge an audited financial report in Australia.
3 a2 Botany Pty Ltd was deregistered on 2 July 2025.
There were no entities over which the Company gained or lost control during the year.
All subsidiaries have a balance date of 30 June, except for The a2 Milk Company LLC, a2 Infant Nutrition (Shanghai) Co., Ltd and
The a2 Milk Company (Shanghai) Limited which have a balance date of 31 December.

Group structure
for the year ended 30 June 2025
136

E1. Consolidated entities (continued)
Recognition and measurement
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its powers over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences
until the date that control ceases.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with
those of the Group.
Transactions eliminated on consolidation
All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the
Group are eliminated in preparing the consolidated financial statements.
E2. Deed of cross guarantee
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, the Australian-incorporated wholly owned
subsidiaries listed in Note E1 as parties to the Deed of Cross Guarantee are eligible for relief from the Corporations Act 2001 (Cth,
Australia) requirements for preparation, audit and lodgement of financial reports and directors’ reports in Australia.
It is a condition of the ASIC Corporations Instrument that the Company and each of the subsidiaries listed enter into a Deed of
Cross Guarantee. The effect of the Deed is that each party guarantees to each creditor of each other party payment in full of
any debt in the event of winding up of the other party under certain provisions of the Corporations Act 2001 (Cth, Australia). If a
winding up occurs under other provisions of the Act, the guarantee will only apply if after six months after a resolution or order
for winding up any creditor has not been paid in full.
A consolidated statement of comprehensive income and a consolidated statement of financial position, comprising the Company
and controlled entities which are parties to the Deed of Cross Guarantee (each party being a member of the closed group as
listed in Note E1), after eliminating all transactions between parties to the Deed of Cross Guarantee, at 30 June 2025, are set out
as follows:
Consolidated statement of comprehensive income and retained earnings
for the year ended 30 June 2025
2025
$’000
2024
$’000
Revenue1,655,0441,493,807
Expenses(1,382,434)(1,253,516)
Finance income (net)54,02649,469
Profit before tax326,636289,760
Income tax expense(83,6 14)(73,868)
Profit after tax243,022215,892
Other comprehensive income(3,860)(1,415)
Total comprehensive income for the year239,162214,477
Retained earnings at beginning of the year1,633,0081,417,116
Dividends paid (61,542)–
Transfers to and from reserves3,8601,415
Retained earnings at end of year1,814,4881,633,008
FINANCIAL
STATEMENTS
137

E2. Deed of cross guarantee (continued)
Consolidated statement of financial position
as at 30 June 2025
2025
$’000
2024
$’000
Assets
Current assets
Cash and term deposits 989,759859,293
Trade and other receivables 146,54813 7,17 3
Prepayments106,98549,488
Inventories78,342148,826
Other financial assets9,9768,243
Total current assets1,331,6101,203,023
Non-current assets
Property, plant and equipment 19,37822,201
Right-of-use assets8,65910,540
Investment property34,18230,845
Intangible assets18,96120,050
Other financial assets793,828751,765
Deferred tax assets15,57625,986
Total non-current assets890,584861,387
Total assets2,222,1942,064,410
Liabilities
Current liabilities
Trade and other payables286,742303,763
Lease liabilities2,0132,055
Other financial liabilities8,14510,363
Income tax payable30,76348,746
Total current liabilities3 2 7,6 6 3364,927
Non-current liabilities
Trade and other payables662532
Lease liabilities8,1659,892
Other financial liabilities4,26274
Total non-current liabilities13,08910,498
Total liabilities340,752375,425
Net assets1,881,4421,688,985
Equity
Share capital 100100
Retained earnings 1,814,4881,633,008
Reserves 66,85455,877
To t a l e q u i t y1,881,4421,688,985
Group structure
for the year ended 30 June 2025
138

F. Other disclosures
F1. Related party transactions
Ultimate Parent
The a2 Milk Company Limited is the parent of the Group. The Group consists of The a2 Milk Company Limited and its subsidiaries
as listed in Note E1.
Key management personnel
Key management personnel are defined as those persons having significant authority and responsibility for planning, directing
and controlling the activities of the Group, and includes the directors, and a number of senior executives.
Key management personnel compensation:
2025
$’000
2024
$’000
Short-term employee benefits10,8119,736
Share-based payments5,8484,783
16,65914,519
Other than non-executive directors, key management personnel in FY25 include the following senior executives:
–Managing Director and CEO
–Chief Financial Officer
–Chief Executive Officer, Greater China
Transactions with key management personnel and their related parties
During the year there were no related party transactions with key management personnel or their related parties (2024: $nil).
Loans to key management personnel and their related parties
No loans were outstanding or made to key management personnel and their related parties at any time during the 2025 and 2024
financial years.

Other disclosures
for the year ended 30 June 2025
FINANCIAL
STATEMENTS
139

F2. Share-based payments
Long-term incentives (LTI)
The LTI plan is designed to retain and motivate senior management to achieve the Group’s long-term strategic goals by providing
rewards that align the interests of management with shareholders.
During the period the Board authorised the issue of 2,361,975 performance rights to senior management under the LTI plan.
The performance rights vest subject to:
–Continuing employment; and
–Achieving the following performance hurdles over the performance periods:
Performance rights grants:Performance periodEPS CAGR
Revenue CAGR hurdles
50% vest85% vest100% vest
FY25 plan
2,361,975 rights3 years to 30 June 202710%4%6%8%
Both the minimum EPS CAGR (compound annual growth in diluted earnings per ordinary share) and minimum Revenue CAGR
(compound annual growth in total external revenue) must be achieved for any vesting of performance rights. The minimum
vesting proportion is 50%; thereafter, vesting is on a straight-line basis between 50% and 85% vesting and between 85%
and 100% vesting.
EPS CAGR and Revenue CAGR are derived from the Annual Report of the Company for the relevant financial years and are subject
to adjustment to remove the impact of such items as the Board may determine in its absolute discretion to normalise results (up or
down) to more appropriately reflect underlying performance. Without limitation, adjustments may be made to exclude the impact
of unusual or one-off items, discontinued operations, impairment charges, acquisitions and disposals, and capital management.
No amount is payable upon vesting of the performance rights and conversion to shares. Each exercised right is an entitlement
to one fully paid ordinary share in the Company.
Fair value of performance rights
The fair value of services received in return for performance rights granted to employees is measured by reference to the fair
value of the rights granted. The estimate of the fair value of the services received is measured by reference to the vesting
conditions specific to the grant based on a simplified Black-Scholes option pricing model.
Fair value of performance rights granted during the period and assumptions
Grant date4 Oct 249 Dec 2424 Feb 25
Fair value at measurement date$6.90$5.72$ 7.74
Share price at grant date$6.90$6.23$8.39
Performance rights life2.9 years2.7 years2.5 years
Other disclosures
for the year ended 30 June 2025
140

F2. Share-based payments (continued)
Performance rights granted in previous years
The performance hurdles of performance rights issued in previous years are set out below.
The performance rights vest subject to:
–Continuing employment; and
–Achieving the following performance hurdles over the performance periods:
Performance rights grants:Performance periodEPS CAGR
Revenue CAGR hurdles
50% vest85% vest100% vest
FY23 plan3 years to 30 June 202510%6%8%10%
FY24 plan3 years to 30 June 202610%4%6%8%
Both the minimum EPS CAGR (compound annual growth in diluted earnings per ordinary share) and minimum Revenue CAGR
(compound annual growth in total external revenue) must be achieved for any vesting of performance rights. The minimum
vesting proportion is 50%; thereafter, vesting is on a straight-line basis between 50% and 85% vesting and between 85%
and 100% vesting.
EPS CAGR and Revenue CAGR are derived from the annual report of the Company for the relevant financial years and are subject
to adjustment to remove the impact of such items as the Board may determine in its absolute discretion to normalise results
(up or down) to more appropriately reflect underlying performance. Without limitation, adjustments may be made to exclude
the impact of unusual or one-off items, discontinued operations, impairment charges, acquisitions and disposals, and capital
management.
No amount is payable upon vesting of the performance rights and conversion to shares. Each exercised right is an entitlement
to one fully paid ordinary share in the Company.
The weighted average fair value at grant date for current year grants was $6.63 (2024: $4.24) and for previous years’ grants was
$5.02 (2024: $6.65).
LTI outstanding as at 30 June 2025NumberGrant DatesVesting DatesExpiry Dates
Performance rights – FY23 grants 1,980,29930 Sep 22
6 Dec 22
13 Jun 23
18 Aug 2518 May 26
Performance rights – FY24 grants2,893,4611 Nov 23
15 Dec 23
17 Aug 2617 May 27
Performance rights – FY25 grants2,326,8754 Oct 24
9 Dec 24
24 Feb 25
16 Aug 2716 May 28
7, 20 0,6 3 5
FINANCIAL
STATEMENTS
141

F2. Share-based payments (continued)
Performance rights movements:
Number
2025
Number
2024
Outstanding at the beginning of the year6,884,6886,094,509
Forfeited during the period (91,116)(532,449)
Granted during the period 2,361,9753,069,769
Vested during the period (1,954,912)(1,747,141)
Outstanding at the end of the year7, 20 0,6 3 56,884,688
The weighted average remaining contractual life of performance rights is 1.2 years (2024: 1.3 years).
Amounts recognised in the consolidated statement of comprehensive income
During the year ended 30 June 2025, a $13,545,000 expense was recognised in the consolidated statement of comprehensive
income for equity–settled share-based payment awards (2024: $10,727,000).
Recognition and measurement
The grant date fair value of share-based payment awards made to employees is recognised as an employee expense with
a corresponding increase in the employee equity settled payments reserve, over the period that the employees become
unconditionally entitled to the awards. The amount recognised as an expense is adjusted over the period to reflect the number of
awards for which the related service and non-market vesting conditions are expected to be met but is not adjusted when market
performance conditions are not met.
F3. Auditor’s remuneration
The auditor of the Company is Ernst & Young Australia.
Amounts received or due and receivable by Ernst & Young for:
2025
$’000
2024
$’000
Fees to Ernst & Young (Australia):
Fees for auditing the statutory financial statements of the parent covering the Group and
auditing the statutory financial statements of any controlled entities1,5801,502
Total audit of financial statements1,5801,502
Other assurance services and other agreed-upon procedures:
Fees for other assurance and agreed-upon services285224
Total other assurance services and other agreed-upon procedures285224
Other services:
Market research
1
–156
Total other services–156
Total fees for services other than the audit of financial statements285380
Total fees for services provided by Ernst & Young (Australia)1,8651,882
1 The market research reports prepared are solely for the Group’s internal use and contents of these reports are not subject to Ernst & Young audit.
Other disclosures
for the year ended 30 June 2025
142

F4. Subsequent events
Approval of final dividend
The directors approved the payment of a final dividend of 11.5 cents per share, amounting to approximately $83.4 million.
Refer to Note D8 for details.
Acquisition of Yashili New Zealand Dairy Co., Limited (YNZ)
On 17 August 2025, the Company entered into a binding agreement to acquire 100% of the shares in YNZ, an integrated
nutritional manufacturing facility located in Pokeno, New Zealand. The Company expects the acquisition to provide greater
market access to the China Label infant milk formula (IMF) market, strategic control over IMF manufacturing and enhanced
product development capability and capacity.
Total expected consideration for the acquisition is $282 million, which is subject to a working capital and net debt adjustment
mechanism following completion.
The transaction is unconditional and is expected to complete on 1 September 2025.
Following completion, the Company intends to seek regulatory amendments to YNZ’s two existing China label IMF registrations
from China’s State Administration for Market Regulation (SAMR). If these regulatory amendments are not approved within up
to 12 months from submission, the Company has the right (but not the obligation) to unwind the transaction with the purchase
consideration returned to the Company subject to working capital and other adjustments.
Disposal of Mataura Valley Milk Limited (MVM)
On 17 August 2025, the Company entered into an agreement to dispose of its 75% controlling interest in MVM, the Group’s
nutritional products manufacturing facility, which forms the MVM operating segment. As part of the same transaction, China
Animal Husbandry Group (CAHG) will also dispose of its 25% minority shareholding in MVM.
The Company’s decision to dispose of MVM was contingent on and consequential to the Company’s acquisition of YNZ and is
expected to optimise the Company’s asset base and capacity utilisation.
The disposal of the Company’s and CAHG’s interests in MVM is conditional on CAHG completing the regulatory filing with
China’s State-owned Assets Supervision and Administration Commission (SASAC) required in connection with the disposal of its
shareholding. The transaction will complete once CAHG has completed the regulatory filing, which needs to be completed by
31 October 2025 unless such timing is extended unilaterally by the purchaser by one month to 30 November 2025.
The Company expects to receive approximately $100 million in purchase consideration for its 75% shareholding, with an
expected loss on sale of approximately $130 million. These amounts are provisional and are subject to various working capital
and other post-closing adjustments.
Other matters
Other than the events noted above, no other matters or circumstances have arisen since the end of the financial year which have
significantly affected or may significantly affect the operations, the results of these operations or state of affairs of the Group in
subsequent periods.
FINANCIAL
STATEMENTS
143

Company disclosures
for the year ended 30 June 2025
1. Principal activities
There were no significant changes to the nature of the business of the Company (or its subsidiaries) or to the classes of business
in which the Company (or its subsidiaries) had an interest during the year ended 30 June 2025.
2. Reconciliation of EBITDA to net profit after tax
Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-GAAP measure. However, the Company believes
that it provides investors with a comprehensive understanding of the underlying performance of the business.
2025
$’000
2024
$’000
EBITDA274,348234,344
Depreciation and amortisation(26,338)(32,199)
EBIT 248,010202,145
Interest income45,45740,396
Interest expense(4, 215)(4,401)
Income tax expense(9 7,16 1)(84,258)
Net profit after tax192,091153,882
Attributable to:
Owners of the Company202,88916 7, 57 7
Non-controlling interests(10,798)(13,695)
192,091153,882
3. Substantial product holders
The shares of the Company are quoted on NZX, ASX and Cboe Australia. According to substantial product holder notices and the
Company’s records, the following persons were substantial product holders in respect of the ordinary shares of the Company as
at 30 June 2025 (such disclosure being required by the Financial Markets Conduct Act 2013 (NZ)) and as at 1 August 2025 (such
disclosure being required by the ASX Listing Rules):
As at 30 June 2025As at 1 August 2025
Name
Number of
ordinary shares
in the Company
in which a
Relevant
Interest is held
% of ordinary
shares held
1
Number of
ordinary shares
in the Company
in which a
Relevant
Interest is held
% of ordinary
shares held
1
Perpetual Limited and subsidiaries42,242,084 5.83442,242,0845.834
1 Based on issue share capital of 724,019,118 as at 30 June 2025 and 1 August 2025.
The total number of voting shares on issue as at 30 June 2025 was 724,019,118 and the total number of voting shares on issue as
at 1 August 2025 was 724,019,118.
144

4. Voting rights
As at 1 August 2025, each fully paid ordinary share of the Company gave the holder the right to cast one vote per shareholder on
a show of hands and one vote per share on a poll on any resolution. All votes cast at shareholder meetings are by way of poll.
5. Twenty largest fully paid equity security holders
The names of the 20 largest holders of ordinary shares in the Company as at 1 August 2025 are listed below:
RankInvestor name
Number of
shares
% Issued
capital
1HSBC Custody Nominees (Australia) Limited169,027,42723.35
2Citicorp Nominees Pty Limited88,042,26312.16
3J P Morgan Nominees Australia Pty Limited87,912,34912.14
4Bnp Paribas Nominees NZ Limited Bpss40*39,982,7695.52
5Accident Compensation Corporation*19,325,2692.67
6Tea Custodians Limited*18,622,6682.57
7HSBC Nominees (New Zealand) Limited*17, 8 3 7,0 5 42.46
8New Zealand Superannuation Fund Nominees Limited*13,448,3261.86
9National Nominees Limited12,571,0921.74
10New Zealand Depository Nominee11,915,9191.65
11Citibank Nominees (Nz) Ltd*10,629,7941.47
12Bnp Paribas Noms Pty Ltd10,287,0731.42
13Bnp Paribas Nominees Pty Ltd9,139,8601.26
14Public Trust*8,352,1171.15
15Premier Nominees Limited*7,74 4,4 6 31.07
16New Zealand Permanent Trustees Limited*6,003,9260.83
17UBS Nominees Pty Ltd5,936,8200.82
18JBWERE (Nz) Nominees Limited5,815,6990.80
19Pt Booster Investments Nominees Limited5,688,2330.79
20HSBC Custody Nominees (Australia) Limited5,169,6580.71
To t a l553,452,77976.44
* These shares are held through New Zealand Central Securities Depository Limited (NZCSD), a depository system which allows electronic trading of
securities to members.
145
COMPANY
DISCLOSURES

Company disclosures
for the year ended 30 June 2025
6. Spread of security holders as at 1 August 2025 and number of holders
a) Fully paid ordinary shareholders
Size of Shareholding
Number of
holders%
1
Number of
shares%
1 – 1,00038,68369.5512,915,0011.78
1,001 – 5,00012,76422.9530,938,3934.27
5,001 – 10,0002,3894.3017, 8 0 6,74 42.46
10,001 – 100,0001,6622.9940,663,9755.62
100,001 shares or more1240.22621,695,00585.87
To t a l55,622100724,019,118100
1 All values subject to rounding.
As at 1 August 2025, and based on the closing market price on that date, the number of holders with 115 or less ordinary shares
(being less than a minimum holding of NZ$1,000 under the NZX Listing Rules) was 1,066 and the number of holders with 63 or
less ordinary shares (being less than a marketable parcel of A$500 under the ASX Listing Rules) was 4,656.
b) Performance rights (unlisted securities not quoted by the NZX or ASX)
Size of holding
Number of
holders
Number of
rights%
1 – 5,000 35,8240.08
5,001 – 10,000 754,8720.76
10,001 – 100,000 401,175,75616.33
100,001 performance rights or more185,964,18382.83
To t a l687,200,635100
146

7. Directors’ relevant interests and share dealings
Directors of the Company reported the following acquisitions and disposals of relevant interests in financial products of the
Company during the period 1 July 2024 to 30 June 2025:
Registered holder
Beneficial/
Non-beneficial
Acquired/
(Disposed)Class of financial
productDate
Consideration
paid/(received)
NZD
David Bortolussi
DMZSK Pty Ltd
1
Beneficial(490,906)Performance Rights30 August 2024N/A
DMZSK Pty Ltd
1
Beneficial490,906Ordinary shares30 August 2024N/A
DMZSK Super Pty Ltd Beneficial538,336Performance Rights9 December 2024N/A
1 Reflects the issue of ordinary shares to David Bortolussi following the vesting and automatic exercise of performance rights.
Directors of the Company as at 30 June 2025 held the following relevant interests in the financial products of the Company as at
that date:
1

Registered holder
Beneficial/
Non-beneficial
Balance held
No.
Class of financial
product
David Bortolussi
DMZSK Pty Ltd as trustee of D&M Bortolussi Family TrustBeneficial1,280,766Ordinary shares
DMZSK Super Pty Ltd as trustee for D&M Bortolussi
Superannuation FundBeneficial1,729,582Performance rights
Pip Greenwood
The New Zealand Guardian Trust Company Limited as the
supervisor for Craigs KiwiSaver SchemeBeneficial 30,000Ordinary shares
Kate Mitchell
Forsyth Barr Custodian LimitedBeneficial1,000Ordinary shares
1 For further information about minimum shareholding requirements for non-executive directors, see page 84.
8. Credit rating status
Not applicable.
147
COMPANY
DISCLOSURES

Company disclosures
for the year ended 30 June 2025
9. Waivers
9.1 NZX Waivers
On 23 October 2024, NZ RegCo granted the Company a waiver from the requirement under NZX Listing Rule 7.8.5(b) for the
Company to include an appraisal report with its Notice of Meeting in respect of resolution 4. The terms of this waiver can be
found on the Company’s announcement page on the NZX website (www.nzx.com/companies/ATM/announcements).
9.2 ASX Waivers
On 31 March 2015, the Company was granted a waiver from ASX Listing Rule 7.1 (waiver no. WLC150056-005). Condition 1.2 of
this waiver requires that the Company certifies to ASX on an annual basis (on or about 30 September each year) that it remains
subject to, has complied with, and continues to comply with, the requirements of NZX with respect to the issue of new securities
(Certification Condition).
On 7 January 2025, ASX advised the Company that ASX will accept for the purposes of compliance with the Certification
Condition that the Company’s Annual Report includes a disclosure that the Company has the benefit of this waiver, that a
condition of the waiver is that the Company certifies on an annual basis that it remains subject to, has complied with, and
continues to comply with, the requirements of NZX with respect to the issue of new securities, and that for the purposes of this
condition, the Company has complied with and continues to comply with the requirements of NZX with respect to the issue of
new securities for the year.
The Company confirms that it remains subject to, has complied with and continues to comply with the requirements of NZX with
respect to the issue of new securities for FY25.
148

10. Particulars of notices or statements given to or approved by the Board
10.1 Interests register
The Company is required to maintain an interests register in which the particulars of certain transactions and matters involving
the directors must be recorded. The interests register for the Company is available for inspection on request by shareholders.
Directors have declared interests during the reporting period ended 30 June 2025 as follows:
–The Company has arranged and paid for policies for directors’ liability insurance which ensure that the directors are
protected against liabilities and costs for acts or omissions by them in their capacity as directors of the Company and its
subsidiaries.
–The Company has provided Deeds of Indemnity to all directors for potential liabilities and costs they may incur for acts
or omissions in their capacity as directors of the Company and its subsidiaries.
–Directors’ relevant interests and share dealings as outlined in section 7, above.
During the reporting period ended 30 June 2025, directors advised the Company of the following initial disclosures, changes
or additional entries in the Company’s interests register:
Name of DirectorEntityPosition
Kate MitchellMyRaceLab LimitedAppointed as director
Kate MitchellLink Engine Management International (NZ) LimitedDirector
Kate MitchellLink Engine Management UK LimitedAppointed as director
Kate MitchellLink Engine Management USA IncDirector
Kate MitchellLink Engine Management EU BvDirector
Lain JagerTree Quest NZ LimitedDirector and indirect shareholder

Lain JagerEastern Gold LimitedDirector and indirect shareholder
Lain JagerOlive Hill LimitedDirector and shareholder
Lain JagerSpring Sheep Dairy NZ Management LimitedCeased as director; indirect shareholder
Lain JagerDMS Progrowers LimitedDirector
Lain JagerWillows Rd Gold LimitedDirector and indirect shareholder

Lain JagerOrigin Capital Partners GP LimitedDirector and shareholder
Lain JagerOrigin Capital Partners Management LimitedDirector and indirect shareholder

Lain JagerOrigin Capital Fund 2 GP LimitedDirector and shareholder
Lain JagerAlphagen NZ LimitedDirector

Lain JagerArepa Holdings LimitedDirector and indirect shareholder
Lain JagerOC1 LimitedDirector and indirect shareholder
Lain JagerGreener Pastures Diversified Fund GP LimitedDirector and shareholder
Lain JagerGreener Pastures New Zealand LimitedDirector
Lain JagerGreener Pastures Nominee LimitedDirector
Lain JagerNibblish GP LimitedDirector and indirect shareholder

Lain JagerAvocado Oil New Zealand LimitedDirector
Lain JagerNZNF Holdings LimitedDirector
Lain JagerRotorua Glowworm LimitedDirector
Lain JagerRedwoods Outdoor Activities NZ LimitedDirector
Lain JagerRubisco LimitedDirector
Tonet RiveraYello X Supply Chain Solutions, Inc.Director
No other entries were made in the interests registers of the Company’s subsidiaries during the reporting period.
149
COMPANY
DISCLOSURES

10.2 Directors of subsidiary companies
The following persons held office as directors of subsidiary companies during the year ended 30 June 2025.
SubsidiaryJurisdictionDirectors (or equivalent)
The a2 Milk Company (Export) Limited New ZealandDavid Bortolussi
David Muscat
a2 Infant Nutrition LimitedNew ZealandDavid Bortolussi
Ping (Chopin) Zhang
a2 Holdings UK LimitedNew ZealandDavid Bortolussi
David Muscat
The a2 Milk Company (New Zealand) Limited New ZealandDavid Bortolussi
Mataura Valley Milk LimitedNew ZealandDavid Muscat
Ping (Chopin) Zhang
Cao Siyuan
Qingchun Yang
a2 Australian Investments Pty. Limited. AustraliaDavid Bortolussi
David Muscat
a2 Botany Pty Ltd
1
AustraliaDavid Bortolussi
David Muscat
The a2 Milk Company (Australia) Pty LtdAustraliaDavid Bortolussi
David Muscat
a2 Infant Nutrition Australia Pty LtdAustraliaDavid Bortolussi
David Muscat
a2 Exports Australia Pty LimitedAustraliaDavid Bortolussi
David Muscat
The a2 Milk Company (Nutrition) Pty LtdAustraliaDavid Bortolussi
David Muscat
a2 ESS Holdings Pty LimitedAustraliaDavid Bortolussi
David Muscat
The a2 Milk Company Limited British Columbia, CanadaDavid Bortolussi
David Muscat
The a2 Milk Company Delaware, USADavid Bortolussi
David Muscat
The a2 Milk Company LLC Delaware, USADavid Bortolussi
David Muscat
a2 Infant Nutrition (Shanghai) Co., Ltd. ChinaXiao Li
The a2 Milk Company (Shanghai) LtdChinaXiao Li
The a2 Milk Company (Singapore) Pte. Ltd.SingaporeDavid Bortolussi
David Muscat
Shaun Singh
1 a2 Botany Pty Ltd was voluntarily deregistered with effect from 2 July 2025.
No employee of the Company appointed as a director of the Company or its subsidiaries receives remuneration or other benefits
in their role as a director. The remuneration and other benefits of such employees, received as employees, are included in the
relevant bandings for remuneration disclosed under Employee remuneration range in section 16.
10.3 Use of company information
The Board received no notices during the reporting period ended 30 June 2025 from directors requesting to use Company
information received in their capacity as directors which would not have been otherwise available to them.
Company disclosures
for the year ended 30 June 2025
150

11. Limitations on the acquisition of securities
The Company is not subject to chapters 6, 6A, 6B and 6C of the Corporations Act 2001 (Cth, Australia) dealing with the
acquisition of its shares (including substantial holdings and takeovers).
Limitations on the acquisition of the securities imposed by New Zealand law are as follows:
(i) In general, fully paid ordinary shares in the Company are freely transferable, and the only significant restrictions or
limitations in relation to the acquisition of fully paid ordinary shares in the Company are those imposed by New Zealand
laws relating to takeovers, overseas investment and competition.
(ii) The New Zealand Takeovers Code creates a general rule under which the acquisition of more than 20% of the voting rights
in the Company, or the increase of an existing holding of 20% or more of the voting rights in the Company, can only occur in
certain permitted ways. These include a full takeover offer, a partial takeover offer, an acquisition approved by an ordinary
resolution, an allotment approved by an ordinary resolution, a creeping acquisition (in certain circumstances) or compulsory
acquisition if a shareholder holds 90% or more shares in the Company, in each case in accordance with the New Zealand
Takeovers Code.
(iii) The New Zealand Overseas Investment Act 2005 regulates certain investments in New Zealand by overseas persons. In
general terms, the consent of the New Zealand Overseas Investment Office will likely be required where an ‘overseas person’
acquires shares or an interest in shares in the Company that amount to more than 25% of the shares issued by the Company
or, if the overseas person already holds 25% or more, the acquisition increases that holding.
(iv) The New Zealand Commerce Act 1986 is likely to prevent a person from acquiring shares in the Company if the acquisition
would have, or would be likely to have, the effect of substantially lessening competition in a market.
The Company has complied with, and continues to comply with, the requirements of the NZX Listing Rules with respect to the
issue of new securities.
12. On-market buy-back
There is no current on-market buy-back of the Company’s securities.
13. On-market purchases
During the reporting period ended 30 June 2025, no shares of the Company were purchased on-market.
14. Donations
The Company and its subsidiaries have made donations of cash and products totalling $1,750,369 during the year ended
30 June 2025 (2024: $2,972,076).
15. Directors and officers
For the purposes of NZX Listing Rule 3.8.1(c), the quantitative breakdown as to the gender composition of the Company’s
directors and officers as at 30 June 2025 and 30 June 2024 is as follows:
At 30 June
2025
At 30 June
2024
Directors66
Females33
Males33
Gender diverse––
Officers1010
Females33
Males77
Gender diverse––
151
COMPANY
DISCLOSURES

Company disclosures
for the year ended 30 June 2025
16. Employee remuneration range
The following table shows the number of employees and former employees of the Company and its subsidiaries (not being
directors or former directors of the Company) who, in their capacity as employees, received remuneration and other benefits
valued at or in excess of $100,000 during the year to 30 June 2025.
The remuneration bands are expressed in New Zealand Dollars.
Remuneration Range
$ (Gross)
Number of
employees in
the year ended
30 June 2025
(based on
actual
payments)
Value of
exercised rights
included in
remuneration
range $
$460,000 – $469,9992 194,821
$470,000 – $479,9991 143,135
$530,000 – $539,9991 –
$540,000 – $549,9992 152,474
$550,000 – $559,9991 103,001
$570,000 – $579,9991 86,458
$680,000 – $689,9991 64,898
$720,000 – $729,9991 725,423
$740,000 – $749,9991 183,932
$770,000 – $779,9991 373,829
$790,000 – $799,9991 166,270
$820,000 – $829,9991 215,135
$840,000 – $849,9991 169,602
$920,000 – $929,9991 205,419
$940,000 – $949,9991 –
$1,040,000 – $1,049,9991 206,921
$1,100,000 – $1,109,9991 311,758
$1,170,000 – $1,179,9991 237,698
$1,230,000 – $1,239,9991 394,890
$1,240,000 – $1,249,9991 –
$1,380,000 – $1,389,9991 375,665
$1,470,000 – $1,479,9991 354,884
$1,690,000 – $1,699,9991 -
$1,790,000 – $1,799,9991 554,235
$2,440,000 – $2,449,9991 554,235
$4,080,000 – $4,089,9991 1,345,942
To t a l377 8,493,027
The table includes base salaries, short-term incentives,
contributions paid to an individual’s superannuation fund, or,
if an individual is a KiwiSaver member, contributions of 3% of
gross earnings towards that individual’s KiwiSaver scheme,
and exercised performance rights. The table does not include
amounts paid after 30 June 2025 relating to FY26, and long-
term incentives that have been granted and have not yet
vested or been exercised (as applicable).
Remuneration Range
$ (Gross)
Number of
employees in
the year ended
30 June 2025
(based on
actual
payments)
Value of
exercised rights
included in
remuneration
range $
$100,000 – $109,99941 –
$110,000 – $119,99930 –
$120,000 – $129,99929 –
$130,000 – $139,99924 130,015
$140,000 – $149,99928 146,388
$150,000 – $159,99923 –
$160,000 – $169,99914 –
$170,000 – $179,99911 –
$180,000 – $189,99917 –
$190,000 – $199,99918 –
$200,000 – $209,99916 –
$210,000 – $219,99916 175,536
$220,000 – $229,9996 –
$230,000 – $239,99910 112,687
$240,000 – $249,9997 –
$250,000 – $259,9996 121,539
$260,000 – $269,9992 –
$270,000 – $279,9997 278,154
$280,000 – $289,9995 –
$290,000 – $299,9992 –
$310,000 – $319,9992 –
$320,000 – $329,9992 –
$330,000 – $339,9991 –
$340,000 – $349,9996 53,449
$350,000 – $359,9994 62,788
$360,000 – $369,9992 –
$370,000 – $379,9992 3 7, 24 6
$380,000 – $389,9991 –
$390,000 – $399,9996 9 7, 5 0 5
$400,000 – $409,9992 –
$410,000 – $419,9992 44,335
$420,000 – $429,9992 –
$430,000 – $439,9994 42,931
$450,000 – $459,9991 69,829
152

Company
The a2 Milk Company Limited
New Zealand share registry
MUFG Pension & Market Services Limited
PO Box 91976
Victoria Street West
Auckland 1142
New Zealand
Telephone: +64 9 375 5998
Australian share registry
MUFG Corporate Markets (AU) Limited
Locked Bag A14
Sydney South NSW 1235
Australia
Telephone: +61 1300 554 474
Registered offices
Level 17
51 Shortland Street
Auckland 1010
New Zealand
Level 4
182 Blues Point Road
McMahons Point NSW 2060
Australia
Telephone: +61 2 9697 7000
Auditor
Ernst & Young
200 George Street
Sydney NSW 2000
Australia
Company Secretary
Jaron McVicar
Corporate website
www.thea2milkcompany.com
Corporate directory
153
COMPANY
DISCLOSURES

thea2milkcompany.com
Australian Registered Body Number 158 331 965 – Incorporated in New Zealand

---

The a2 Milk Company Limited
18 August 2025
2025 Annual results
and Supply Chain
Transformation update
We pioneer the future of Dairy for good

Disclaimer
This presentation dated 18 August 2025 provides additional
commentary on the financial results for the 12 months ended
30 June 2025 of The a2 Milk Company Limited (the “Company” or
“a2MC”) and accompanying information released to the market on
the same date. As such, it should be read in conjunction with the
explanations and views in those documents.
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 Company and
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

Agenda
FY25 Results summary4
Supply Chain transformation update33
FY26 outlook and capital management54
Appendix59

Strong FY25 operating and financial performance
Delivered record sales of $1.9 billion with double-digit growth in revenue, EBITDA
and EPS driven by execution of growth strategy
Reachedtop-4 brand position in China IMF market, a major milestone in brand
health and market penetration
Achieved English label IMF double-digit sales growth and record market share in
China label IMF driven by high new user recruitment
Launched a range of new products targeting growth opportunitiesin the infant,
kids and seniors nutrition segments, and entered the Vietnam IMF market
Initiated returns to shareholders declaring first ever dividends totalling 20.0 cents
per share for FY25
1
2
3
4
5
4

2023
a2 IMF
entry into
USA
1
Source: Company data.
1
Under Enforcement Discretion.
IP Creators
Domestic, branded fresh
milk focus
Product and geographic
expansion
China IMF focused growth strategy
2025
Top-4
China
IMF
brand
2022
MVM
Acquisition
2018
Fonterra
relationship
Entry into
SEA
markets
2015
ASX listing
a2 Milk
launched in
USA
2000
Company
founded
FY00
2007
Shift from licensing to
operating model:
a2 Milk relaunches; in AU
2012
Production agreement
for IMF with Synlait
China distribution
agreement with CSF
2013
a2 IMF
launched in
ANZ and
China
2021
COVID
disruption
Record sales of $1.9 billion in 25th year since a2MC was formed
5
Historical revenue; $ millions

1,593
1,675
1,902
FY23FY24FY25
Double-digit revenue growth with improved EBITDA margin in FY25
•Revenue up 13.5% to $1,902.0 million (2H25: up 16.8% versus pcp)
•EBITDA up 17.1% to $274.3 million (2H25: up 28.4% versus pcp)
•EBITDA margin of 14.4% up 0.4 ppts (2H25: 15.4%)
•Net profit after tax (NPAT) up 21.1% to $202.9 million
1
•Basic earnings per share (EPS) up 20.9% to 28.0 cents
•Closing net cash
2
of $1,061.2 million up $92.2 million on 30 June
2024 with cash conversion of 95%
3
•FY25 dividend of 20.0 cents per share (~71% payout) with a
final dividend of 11.5 cents per share declared (fully franked and
~78% imputed)
EBITDA; $ millions
Revenue; $ millions
Basic EPS; cents per share
Key financials
1
Excludes non-controlling interest in Mataura Valley Milk (MVM), a loss of $10.8 million.
2
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
3
Calculated as net cash flow from operating activities before interest and tax divided by EBITDA.
Group performance (FY25 versus FY24, unless otherwise noted)
219
234
274
FY23FY24FY25
21.2
23.2
28.0
FY23FY24FY25
6

English label IMF, Liquid Milk and Other Nutritionals key growth drivers
•China & Other Asia segment sales up 13.9%, led by EL IMF CBEC
& O2O channel growth (up 24.9%) and Other Nutritionals (up 33.1%)
•ANZ segment sales flat with Australian liquid milk growth (up 9.9%)
offsetting Daigou channel decline
•USA segment sales up 22.6% driven by liquid milk growth
•MVM external ingredient sales up 41.9% due to higher GDT pricing
and milk volumes processed
Segment and product sales
Segment sales; $ millions
Product sales; $ millions
Segment performance
Product performance
•IMF sales up 9.9%
−English label sales up 17.2% in a market that grew by 11.9%
1
−China label sales up 3.3% in a market that declined by 5.6%
1
•Liquid Milk sales in ANZ and USA up 9.9% and 22.1% respectively
•Other Nutritionals sales up 23.1%
1
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities) for the 52 weeks ending 13 June 2025 and similar for prior periods. Kantar had two rounds of universe updates in March and June 2025 and restated historical data.
7

Results supported by key operational achievements
•Brand health: Continued growth in China IMF brand health supported by successful marketing campaigns focused on a2 Milk superiority
•Infant Milk Formula
−China label: Achieved record market share despite market decline and temporary supply constraints, driven by new user recruitment
−English label: Significantly improved performance, benefiting from positive EL market momentum, online focus and innovation
−USA: Submitted US FDA New Infant Formula Notification (NIFN) with decision for long term approval pending
•Liquid Milk
−ANZ: Continued to grow market share in core and lactose free categories with brand health at record levels
−USA: Improved overall profitability and gained market share in core and grassfed categories
•Other Nutritionals: Delivered double-digit growth driven by core milk powder range and increasing contribution from innovation
•Product innovation
−Launched a2 Genesis with strong early market traction supported by awareness building marketing campaigns
−Introduced fortified milk powder ranges targeting growing kids and seniors nutrition segments
−Progressed establishment of a2 Global R&D Centre in partnership with China State Farm
•Emerging markets: Expanded into the Vietnam IMF market with launches of a2 Platinum

in 1H25 and a2 Gentle Gold in 2H25
•Supply chain
−Largely mitigated the impact of Synlait temporary supply constraints
−Continued to expand commercial manufacturing partnerships in New Zealand and China in the IMF and Other Nutritionals categories
8

Continued investment in making planet positive progress
1
•Developed a detailed emissions reduction roadmap and climate transition plan to track progress
against net zero GHG targets to 2040
•Reduced Scope 1 emissions by 97% in FY25, led by MVM boiler conversion completed in FY24.
This transition has resulted in MVM now operating on 100% certified renewable energy
2
•Reduced Scope 3 emissions intensity in FY25 by 33% since the Company’s 2021
baseline year, due to efforts in dairy production efficiency and supply chain energy
transition, as well as more accurate Scope 3 emissions data (due to improvements
in data collection and calculation methods)
•Funded 19 new projects through the a2 Farm Sustainability Fund totalling
$575,000 in FY25 to advance outcomes aligned to our sustainability goals
•Further development and execution against sustainable packaging action plan.
In FY25, achieved 98% recyclable packaging placed on market (by weight) and
‘Beyond Best Practice’ in Australian sustainable packaging performance
3
•Continued to support AgriZero
NZ
, a partnership between the New Zealand
Government and major agribusiness companies to reduce on-farm biogenic methane
and nitrous oxide emissions
1
Refer to pages 38-47 of The a2 Milk Company 2025 Annual Report for sustainability programme details.
2
MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have been independently verified as
producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel sources, due to the nature of the electricity transmission and distribution system.
3
Source: a2MC 2025 Australian Packaging Covenant Organisation (APCO) Annual Report and Action Plan.
9

China IMF market conditions stabilising with English label gaining share
1
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities) for the 52 weeks ending 13 June 2025 and similar for prior periods. Kantar had two rounds of universe updates in March and June 2025 and restated historical data.
2
China National Bureau of Statistics.
•China IMF market decline improved to -3.2%
1
supported by early stage
growth (Stages 1 and 2) due to increased newborns during Year of the
Dragon (up 5.8%
2
in CY24) and increased adoption of IMF at early stages
•China label IMF market value down 5.6%
1
due to lower volumes with
pricing pressure stabilising
•English label IMF market achieved double-digit growth of 11.9%
1
, driven
by early stage growth, switching from CL to EL and premiumisation
across all stages
•Key&A cities declined by 2.1%, whereas BCD cities declined by 4.3%
1
•A2-type protein segment grew 12%, now 21% of China IMF market
value (up from 18% in FY24
1
)
•Market concentration continues with top-5 brands now representing
over 58%
1
of market value, up 3 ppts vs pcp
•Government subsidies to support the costs of childcare provided by
central and local authorities are a positive initiative for families and the
industry, but it is too early to assess the potential impact
Total China IMF market value vs pcp
1
China label IMF market value vs pcp
1
10
English label IMF market value vs pcp
1

a2MC rises to top-4 brand in total China IMF market
Total China IMF market share
1
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities) for the 52 weeks ending June 2025. Kantar had two rounds of universe update in March and June 2025 and restated historical data.
2
Wyeth Nutrition is also owned by the Nestle Group.
Value % share by brand
1
; MAT June 2025
2
2
China label IMF market value share
English label IMF market value share
Value % share by brand
1
; MAT June 2025Value % share by brand
1
; MAT June 2025
Domestic
International

a2MC remains focused on its growth strategy, with supply chain
transformation a key focus
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 maintain 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
-Increase share in key
accounts, expand in lower
tier cities and further
accelerate online growth
-Invest in brand strength
and leverage across two
labels and wider portfolio
2
Ramp-up product
innovation
-Expand EL and CL IMF
product portfolios
-Develop other nutritionals
for kids, adults and seniors
-Leverage IMF and other
products into new markets
-Innovate in liquid milk
3
Transform our
supply chain
-Expand CL market access
through MVM and other
investment opportunities,
primarily in NZ and China
over time
-Develop supply capability
to enable innovation
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
-Improve USA liquid milk
losses and invest in
development of IMF
opportunity
-Increase MVM A1-free milk
pool, nutritional capability,
utilisation and efficiency
5
Bold passionOwnership & agility
Leading constructivelyDisruptive thinking
BLO
D
12

CONSUMERS
Tracking well towards medium-term goals reflected in measures
of success
12
BRAND HEALTH
3
MARKET SHARE
4
INNOVATION
5
PEOPLEPLANET
SUPPLY CHAIN
6
SHAREHOLDERS
7
13
GHG emissions
reduction
Farm environmental
plans
Animal welfare
programmes
Sustainable
packaging
China brand
health
AU household
penetration
USA household
penetration
MBS share
DOL share
CBEC share
O2O + Daigou
share
Australian fresh
milk share
USA premium
milk share
Safety
Engagement
Diversity and
inclusion
Gender pay gap
On track
Work in progress
IMF sales from
new products
China Other
Nutritionals growth
Emerging markets
development
ANZ sales from
new products
USA sales from
new products
Access to ≥3
CL registrations
CL inventory
management
EL inventory
management
Quality and
service
Supply chain
efficiency
Sales ambition of
~$2.0b (≥FY27)
EBITDA margin
ambition in the
‘teens’ targeting
year-on-year
improvement
USA profitability
by FY27
MVM profitability
by FY27

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
•Delivered record sales in the
Company’s 25
th
year of $1.9 billion,
with 12.0% CAGR since FY21
•English label IMF and ANZ liquid
milk back on track with strong
performances in FY25 and positive
FY26 outlook
•Emerging markets outlook improved
following FY25 Vietnam launch but
remains work in progress with further
growth to be realized
•Further incremental improvement in
EBITDA % margin
On track
Work in progress
Market/category
Growth ambition
(FY21 to ≥ FY27)
1
Tracking
China label IMF$0.4
English label IMF$0.3
China 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
Strong FY25 performance has moved the Company closer to its
medium-term revenue ambition of $2 billion
14
1
Incremental revenue ambition growth bridge from $1.21 billion in FY21 to ~$2.0 billion in ≥ FY27.
~
EBITDA margin target in the teens
targeting year-on-year improvement
Actual revenue and EBITDA margin

Financial overview

Strong revenue growth with modest improvement in margins
•Net sales revenue growth of 13.5% reflects strong EL IMF CBEC and
O2O channel performance, liquid milk growth in ANZ and USA,
continued double-digit Other Nutritionals growth and higher MVM
external sales
•Gross margin of 46.1%,up 0.3ppts, driven by lower IMF ingredient
costs, favourable FX and the cycling benefit of MVM accelerated
depreciation, partly offset by IMF supply constraints (mainly airfreight)
•Distribution costs flat as a % of net sales revenue with higher ANZ
rates due to distribution mix offset by improvement in USA freight rates
•Marketing expenses higher to support China growth strategy,
maintaining a similar re-investment rate to prior year
•Administrative and other expenses (SG&A) were down as a % of
sales, however higher in $ terms due to incremental investment in
capability build and innovation related costs, partially offset by lower FX
losses and cost reduction initiatives
•Interest income increased due to higher cash balances
•Effective tax rate improved due to reduced MVM and US losses
•NPATattributable to owners of the Companyincreased by 21.1% to
$202.9 million
•Basic EPS was up 20.9% to 28.0 cents per share
•Final FY25 dividend of 11.5 cents per share declared ~75% of NPAT
payout aligned to a2MC’s recently established dividend policy. The final
FY25 dividend will be fully franked and partially imputed at ~78%
16
1
All figures quoted in New Zealand Dollars (NZ$) and all comparisons are with the 12 months ended 30 June 2024 (FY24) unless otherwise stated. Numbers may
not add down due to rounding.
2
Group revenue comprises net sales revenue and other revenue.
3
Earnings before interest, tax, depreciation and amortisation (EBITDA). EBITDA is a non-GAAP measure.
$ million
1
FY25FY24% change
Net Sales Revenue
1,899.3
1,673.313.5%
Gross Margin
875.2
766.614.2%
GM %
46.1%
45.8%0.3ppts
Other Revenue
2.7
2.127.4%
Distribution
% Net Sales Revenue
(57.2)
3.0%
(50.2)
3.0%
14.0%
0.0ppts
Marketing
% Net Sales Revenue
(318.4)
16.8%
(280.1)
16.7%
13.7%
0.0ppts
Administrative and other (SG&A)
% Net Sales Revenue
(254.2)
13.4%
(236.2)
14.1%
7.6%
(0.7ppts)
Interest Income and Finance Costs
41.2
35.914.7%
Profit Before Tax
289.3
238.121.5%
Income Tax Expense
(97.2)
(84.3)15.3%
NPAT
192.1
153.924.8%
- Attributable to owners of the Company
202.9
167.621.1%
- Attributable to non-controlling interests
(10.8)
(13.7)(21.2%)
Group Revenue
2
1,902.0
1,675.513.5%
EBITDA
3
274.3
234.317.1%
EBITDA Margin %
14.4%
14.0%0.4ppts
EPS – basic (cents)
28.0
23.220.9%

Double-digit China growth driven by strategic market focus
1
MVM excludes intercompany sales.
2
EBITDA includes inter-segment eliminations related to MVM, $2.3 million in FY25 and $0.5m in FY24.
$ million
China &
Other AsiaANZUSAMVM
1
Corporate
Total
Group
FY25
Revenue
1,302.0316.0139.3
144.7-1,902.0
EBITDA
332.457.5(9.3)(15.0)(88.9)
274.3
2
EBITDA %
25.5%18.2%nmnm-14.4%
FY24
Revenue
1,143.1317.3113.7101.4-1,675.5
EBITDA
290.163.0(15.5)(20.5)(82.4)234.3
2
EBITDA %
25.4%19.9%nmnm-14.0%
%
change
Revenue
13.9%
(0.4%)
22.5%42.7%-13.5%
EBITDA
14.6%(8.7%)39.8%26.5%(7.9%)17.1%
17

Growth across all product categories well above market
1
MVM excludes intercompany sales.
2
Excludes liquid milk products (plain and fortified) exported to China and Other Asia markets.
3
Comprises powdered milk products (plain and fortified), and liquid milk products (plain and fortified) exported to China and Other Asia markets.
Net sales revenue
$ million
China &
Other AsiaANZUSAMVM
1
Total
Group
FY25
IMF
1,191.780.61.6-1,273.9
Liquid Milk
2
-209.0137.3-346.3
Other Nutritionals
3
110.324.8
-
-135.1
Ingredients
--
-143.9143.9
TOTAL
1,302.0314.5138.9143.91,899.3
FY24
IMF
1,060.298.50.8-1,159.5
Liquid Milk
2
-190.2112.5-302.6
Other Nutritionals
3
82.926.8
-
-109.7
Ingredients
--
-101.4101.4
TOTAL
1,143.1315.5113.3101.41,673.3
%
change
IMF
12.4%(18.1%)92.0%-9.9%
Liquid Milk
2
-9.9%22.1%-14.4%
Other Nutritionals
3
33.1%(7.5%)--23.1%
Ingredients
---41.9%41.9%
TOTAL
13.9%(0.3%)22.6%41.9%13.5%
18

Cash conversion remains strong and in line with expectations
1
Calculated as net cash flow from operating activities before interest and tax divided by EBITDA.
•Cash flows from operating activities: $201.5 million
‒Operating cash conversion of 95%
1
, lower than FY24 (126%)
mainly due to the following one-off working capital impacts:
•FY24 included one-off working capital benefits relating to
the China label stock build in FY23 associated with the
transition to the new GB registered product
•Synlait payments withheld in FY24 subject to dispute
resolution in accordance with contractual arrangements
which were paid in FY25 following dispute resolution
•A reduction in Synlait purchase order deposit payments
terms which commenced in FY25
•Cash flows from investing activities: ($92.3 million)
‒Incremental term deposits of $50 million and additional
investment in Synlait of $32.8 million
•Cash flows from financing activities: ($28.3 million)
‒Includes payment of interim dividend of $61.5 million, offset
by $39 million drawdown on MVM’s external banking facility
to support operational working capital needs
$ millionFY25FY24% change
Cash flows from operating activities
Receipts from customers
1,889.81,676.712.7%
Payments to suppliers and employees
(1,630.5)(1,382.2)18.0%
Net interest flows and taxes paid
(57.8)(38.7)49.3%
Net operating cash flows
201.5255.7(21.2)%
Net cash flows from investing activities
(92.3)(37.1)148.5%
Net cash flows from financing activities
(28.3)(49.8)(43.2%)
Net increase in cash
80.9168.8(52.1%)
Cash at the beginning of the period
518.9352.247.3%
Effect of exchange rate changes on cash
0.3(2.1)(114.8%)
Closing cash at the end of the period
600.2518.915.7%
Net cash comprised of:
Cash andshort-termdeposits
600.2518.915.7%
Term deposits
500.0450.011.1%
Bank borrowings
(39.0)-NM
Total net cash
1,061.2968.99.5%
19

Strong balance sheet with lower inventory levels
•Cash and term depositsbalance and consolidated net
cash position of $1,061.2 million
1
with operating cash
conversion at 95%
2
•Inventories down $40.5 million, driven by lower IMF
stock levels due to higher early stage demand and
Synlait supply constraints connected to 4Q25
manufacturing challenges
•Other current assets up $58.2 million driven by
higher prepayments for IMF stock due to delays in
stock receipts from Synlait, and change in Synlait payment
terms following dispute resolution
•Other non-current assets up $59.0 million driven by
increase in Synlait investment due to additional investment
of $32.8 million and share price gain of $31.6 million, with
total valuation of $74.2 million at June 2025
•Other current liabilities up $27.4 million mainly due to
MVM’s bank loan of $39.0 million to support MVM’s working
capital requirements
1
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
2
Calculated as net cash flow from operating activities before interest and tax divided by EBITDA.
$ millionFY25FY24% change
Cash and term deposits
1,100.2
968.9
13.6%
Trade and other receivables
92.2
78.1
18.1%
Inventories
139.1
179.6
(22.6)%
Other current assets
119.5
61.3
94.9%
Total current assets
1,451.0
1,287.9
12.7%
Property, plant & equipment
216.8
231.4
(6.3)%
Intangible assets
110.9
111.1
(0.2)%
Other non-current assets
163.4
104.4
56.5%
Total non-current assets
491.1
446.9
9.9%
TOTAL ASSETS
1,942.1
1,734.8
11.9%
Trade and other payables
353.5
347.6
1.7%
Other current liabilities
96.6
69.2
39.6%
Total current liabilities
450.1
416.8
8.0%
Total non-current liabilities
61.3
61.3
0.0%
TOTAL LIABILITIES
511.4
478.1
7.0%
NET ASSETS
1,430.7
1,256.7
13.8%
20

Regional
and product
performance

Growth driven by strong consumer demand for early stage products
•a2MC CL IMF sales grew by 3.3% to $632.5 million in a declining market
and achieved record high China label IMF market share of 5.5%
1
•Strong growth in early stage products driven by consumer demand and
successful new user recruitment activities
•Online channels maintained their upward trajectory, reflecting consumer
demand for convenience and accessibility
•Other Nutritionals growth of 32.2% supported by launch of new locally
produced seniors fortified milk powder range, and the introduction of new
kids milk powder in 2H25
China label net sales revenue
$ million
2
1
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities) values for the 52 weeks ending June 2025. Kantar had two rounds of universe update in March and June 2025
and restated historical data.
2
Subject to rounding.
China label
a2MC MAT share of total China label IMF market value %
1
Sustained China label growth despite market and supply challenges
China label IMF market share
271
299
305
289
313
328
559
612
633
FY23FY24FY25
22

Achieved record high share across MBS (offline) and DOL (online)
•China label market decline of 5.6% has improved 50%
vs FY24
1

•Pricing stabilising as market cycles GB transition (largely
completed in FY24 period)
•Channel dynamics continue to evolve, with an ongoing
shift towards online with pressure on offline channels
•Market concentration trend continues with top-10 brands
(including a2MC) now representing 78%
1
of total CL
market (77% in FY24)
Signs of stabilisation in a consolidating market
China label
China label performance driven by DOL and BCD city expansion
China label IMF market
value share (MAT)
1
Jun-24Jun-25% change
DOL26%28%+2 ppts
MBS51%51%0 ppts
Other23%21%-2 ppts
1
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). Kantar had two rounds of universe update in March and June 2025 and restated historical data.
2
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value).
3
Smart Path China IMF online market tracking: DOL platform sales (by value).
•Significant share gains in early stage products in MBS and
DOL driven by new user recruitment focus
•Achieved record high MBS market share in BCD cities
in line with strategic focus and recovered share in
Key&A cities
•Achieved record high DOL market share, particularly in JD
•Available external market share metrics:
a2MC China label IMF
market value share (MAT)Jun-24Jun-25% change
Kantar Total CL
1
4.7%5.5%+0.8ppts
Nielsen MBS
2
3.5%3.7%+0.2ppts
Key&A cities6.8%7.0%+0.2ppts
BCD cities3.0%3.2%+0.2ppts
Smart Path DOL
3
3.9%4.2%+0.3ppts
Market share metrics subject to limitations
(panel size and under or over representation of some channels or accounts)
23

Growth in China label early stages laying foundation for future stage
performance
China label
Positive MBS channel market growth in early stage productsCommentary
•China label markets experienced strong
growth in early stage (Stage 1 and 2)
sales during FY25 supported by higher
newborns
•MBS channel Stage 1 sales growth
peaked at double-digits during 2Q25 and
3Q25, with Stage 2 sales growth
accelerating through 4Q25
•a2MC’s early stage market share
increased in FY25 with sales growing well
ahead of the market. This was supported
by increased investment and focus on
early stage new user recruitment
•Early stage CL sales now represent
approximately half of a2MC’s total CL
IMF sales
1
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value).
Nielsen MBS channel quarterly marketvalue growth by stage
1
24

China label
New seniors and kids milk powder products showing positive early signs
post launch
•Seniors product range introduced before Chinese
New Year tapping into a high-value intergenerational
gifting window
•Leveraging a2 IMF brand equity with distribution into
select MBS with plans for expansion
•Strong market performance during Chinese New Year and
618, ranking high in e-commerce platform hot lists
•Recently launched new CL kids fortified powder product
with encouraging performance across both online and
offline channels with plans to scale distribution footprint
•Halo benefit from IMF brand supported by market trend of
functional milk powders leading kids category growth
•Resonating well with consumers with distinctive design,
strong formulation and well-balanced flavour
Expanding nutritional range to cater for ageing society Unlocking kids potential beyond IMF
25

176
211
258
211
237
301
386
448
559
FY23FY24FY25
1H2H
English label continues to grow, with innovation and market expansion
supporting future potential
1
Excludes USA IMF sales.
2
Circana (AU) Pty Ltd, AU Grocery Pharmacy Scan, Infant Milk Formula by Brand, Value Sales.
3
Subject to rounding.
•English label revenue growth
1
of 17.1% to $639.8 million with combined
CBEC and O2O revenue increasing 24.9%, representing 87% of total
EL sales
•a2 Genesis building on launch success, with early indicators pointing
to strong consumer demand potential over time
•Continued to expand EL reach with launch of a2 Platinum and a2
Gentle Gold

into Vietnam representing a key step in emerging
market strategy
•ANZ performance reflects ongoing category softness. Despite this, the
a2MC brand remains strong, recording the highest retail sales growth
among top AU brands over the past 12 months (up 19%)
2
•Performance in Other Nutritionals continues to maintain momentum with
sales up 17.7%
Stand out performance in English label
English label
ANZ English label IMF revenue
CBEC (including O2O) English label IMF revenue
$ million by half
1,3
$ million by half
3
109
54
40
53
45
40
163
99
81
FY23FY24FY25
1H2H
26

English label IMF momentum continued throughout second half
•English label market grew by 11.9% in FY25 driven by higher
volume and continued premiumisation, gaining share within total
IMF to 19% from a low of 14% in FY22 but below pre COVID-19
levels of 23% in FY20
1
:
•EL lower average selling price versus CL with China
macroeconomic environment contributing to consumers seeking
better value IMF alternatives
•Continued shift to online channels exposing EL IMF products to
wider consumer base
•Increased consumer choice in EL with new formula innovations
including the rapid growth of HMO and specialty product segments
Favourable English label market dynamics
English label
Strong a2 English label performance
Total IMF market value
share (MAT)
1
Jun-24Jun-25
Change
vs pcp
English label17%19%+2 ppts
China label83%81%-2 ppts
1
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). Kantar had two rounds of universe update in March and June 2025 and restated historical data.
2
Kantar CBEC tracking includes social e-Commerce platforms including Douyin/TikTok, Pinduoduo (and others).
3
Smart Path China IMF online market tracking: CBEC platform sales (by value).
•Offline and online retail POS data and a2MC reported sales
growth were stronger than Kantar and Smart Path data
•Rapid growth of competitor HMO and specialty products may have
reduced overall EL market share, however this is inconsistent with
a2MC reported sales growth versus market
•Available external market share metrics:
a2MC English label IMF
market value share (MAT)Jun-24Jun-25
Change
vs pcp
Kantar Total EL
1
19.7%19.2%-0.5ppts
CBEC
1,2
20.4%20.6%+0.2ppts
O2O & Daigou
1
18.3%17.4%-0.9ppts
Smart Path CBEC
3
20.5%18.1%-2.4ppts
Market metrics are subject to limitations (small panel size and under representation
of some a2MC high growth channels, particularly O2O)
27

Marketing investment focused on driving a2 Genesis talkability
•a2 Genesis launched in Hong Kong
CBEC channel in January 2025
•Innovative HMO formulation made with
a2 Milk and containing 3 HMOs,
probiotics and prebiotics
•Commenced major marketing
campaign in April 2025
•Integrated social and e-commerce
marketing activations to build
awareness and drive trial
•Launched across major EC Platforms
JD, Tmall and TikTok
•Achieved strong month-on-month
growth post launch, tracking ahead of
comparable recent EL IMF HMO
product launches
•Encouraging repurchase rates of
~30% in month post first purchase
2,3
English label
Gross market value of recent EL IMF HMO
New product launches in CBEC channel
1

RMB
1
Smart Path China IMF online market tracking: CBEC platform sales (by value).
2
a2 CBEC JD self-run store Shu Fang data.
3
a2 Genesis HMO Flagship store Tmall Sheng Yi Can Mou data.
Months post product launch
a2 Genesis
Online social
seeding
28
Launched a2 GenesisMarketing campaignPerformance
Competitors
Offline marketing
activations

IMF range launch in Vietnam showing positive early momentum
English label
•a2Platinum launched in
September2024
•a2 Gentle Gold and a2 Immune
fortified milk powder launched in
June 2025
•Launch events attended by over 200
key offline and online retailers
•Extensive online campaign through
50+ top tier KOL partnerships
•Focus on driving MBS store
distribution with in-store POSM and
staff training in over 100 local store
networks
•Marketing and in-store activity
supporting improving awareness of
a2 Platinum
•a2MC Vietnam sales growth in FY25
largely driven by IMF launches but also
supported by continued sales growth in
milk powder and UHT
1
a2MC internal data.
a2MC sales growth in Vietnam
1
29
Launched a2 Platinum

and a2 Gentle Gold
Marketing activationsPerformance

92
93
104
92
97
105
184
190
209
FY23FY24FY25
1H2H
ANZ liquid milk sales continue strong momentum in core and
lactose free markets
•Net sales revenue up 9.9% to $209 million, with growth across a2 Milk
and a2 Milk Lactose Free
•Total dairy milk category value declined (-0.7%
1
) driven by ongoing
elevated competitor promotional activity
•Dairy milk consumption grew slightly (0.2%
1
), led by strong growth in
lactose free subcategory (10.8%
1
)
•a2 Milk Lactose Free achieved record high MAT value share of 18.5%
2
•a2 Milk Full Cream and a2 Milk Lactose Free named 2025
ProductReview.com.au award winners, reinforcing strong consumer
endorsement and product excellence
•Brand health continues to strengthen with brand advocacy (NPS) at
record levels
3

•Final stage of commissioning of Kyabram milk processing facility with
KyValley Dairy Group expected to be completed in 1H26
Australia liquid milk net sales revenue
1
IRI Australian Grocery Weighted Scan, MAT to 22 June 2025 vs MAT to 22 June 2024.
2
IRI Australian Grocery Weighted Scan, MAT basis to 22 June 2025.
3
a2MC brand health tracking June 2025.
Note share values have been restated to reflect new methodology used by Circana for “Australia Grocery Weighted”. While the absolute numbers have changed, the direction of movement remain consistent with prior years.
ANZ liquid milk
Australia liquid milk market value share
2
a2MC liquid milk performing well in a challenging market
Australia lactose free market value share
2
$ million
30

USA improvement in profitability with IMF long term approval currently
subject to FDA review
$ million
2
USA
1
SPINS data for the Grocery channel, MAT.
2
Subject to rounding.
Revenue
$ million
2
EBITDA
Double-digit revenue growth
•Revenue increased 22.5% to $139.3 million
•Sales growth driven by continued strength in a2 Milk performance,
plus increased contributions from Grassfed and Club channel
•Profitability improvement reflected by lower EBITDA loss of $9.3 million,
achieved through revenue growth and a continued focus on optimising
trade spend, and input and distribution costs
•Market value share in the premium milk category increased to 2.2%
(up from 2.1% in FY24)
1
•IMF FDA submission for long term approval currently under review
•IMF sales not material under current
Enforcement Discretion with available
inventory managed to ED deadlines
52
57
64
53
57
75
105
114
139
FY23FY24FY25
1H2H
-12
-8
-5
-11
-7
-4
-23
-15
-9
FY23FY24FY25
1H2H
31

MVM higher internal sales and product mix reducing operating losses
•Revenue of $144.7 million, up $43.3 million driven by favourable
GDT pricing, increased milk volumes processed and higher
internal sales
•EBITDA loss reduced to $17 million reflecting higher internal
sales (timing impact), product mix and disciplined cost
management
•EBITDA losses typically weighted to the first half, partly due
to winter plant shut down and maintenance period during
July / August
•Increased internal sales driven by a2MC innovation ramp up
with launch of new a2 Genesis and CL kids and seniors
fortified products
Mataura Valley Milk
Significant uplift in revenue and EBITDA performance
32
$ million
Revenue
$ million
EBITDA
46
44
57
68
58
87
114
101
145
FY23FY24FY25
1H2H
(13)(15)
(12)
(13)
(6)
(5)
-26
-21
-17
FY23FY24FY25
1H2H
Internal sales to
a2MC eliminated
323550

Supply Chain
transformation
update

Secures market
access and strategic
control
1. Control
a2MC announced the following transactions today as part of its supply chain transformation strategy:
•Nutritional manufacturing facility acquisition: The acquisition of an integrated nutritional manufacturing facility with two CL IMF
product registrations, located in Pokeno, New Zealand, by purchasing all of the shares in Yashili New Zealand Dairy Co., Limited, from
Yashili International Group Limited (a subsidiary of China Mengniu Dairy Group Limited) for approximately $282 million on a debt and
cash free basis (hereinafter referred to as YNZ or a2MC Pokeno facility)
•MVM divestment: The divestment of a2MC’s 75% and China Animal Husbandry Group’s (CAHG) 25% shareholding in Mataura
Valley Milk Limited (MVM) to Open Country Dairy Limited (Open Country), with a2MC net proceeds of approximately $100 million on a
cash and debt free basis (conditional on China regulatory filing)
Supply chain transformation update
Transactions
announced
Combined
outcomes
•EBITDA: Neutral in FY27
1
and positive from FY28 supported by the in-sourcing of a2 Platinum from Synlait
•Investment: Internal rate of return greater than the Company’s after tax cost of capital (WACC ~10%), with return on invested capital
achieving WACC in FY29 subject to the timing of regulatory approvals and IMF production volumes
Strategic
rationale
•These transactions enable a2MC to build a better, higher growth, lower risk, end-to-end business and deliver substantial benefits to
shareholders supported by a clear strategic rationale:
Supports growth in
core infant milk
formula business
2. Growth
Accelerates integrated
manufacturing
capability
3. Capability
Optimises asset
footprint and capacity
utilisation
4. Capacity
Generates attractive
financial returns
5. Returns
34
1
Before potential transition costs.

Clear strategic rationale for combined transactions
1. Secures greater market access and strategic control
•Secures greater access to attractive China label (CL) registered IMF market valued at ~$23
1
billion
•Provides strategic and operational control over related China registrations, products and supply
2. Supports growth in core IMF business over time
•Drives growth in IMF sales through near term access to two existing CL registrations and a potential 3rd slot
•Increases scope to innovate and differentiate consumer and/or trade propositions
•Assists with unlocking growth potential in lower tier (BCD) cities and domestic online (DOL) channel
3. Accelerates development of integrated nutritional manufacturing capability
•Provides access to world-class integrated manufacturing capability with drying, blending and canning
•Utilises A1 protein free milk pool jointly developed by Fonterra and a2MC over recent years in the Waikato
4. Optimises asset footprint and capacity utilisation
•Exits MVM to optimise manufacturing footprint and capacity utilisation
•Retains access to high quality A1 protein free ingredients from MVM through commercial supply agreement
5. Generates attractive financial returns
•Minimises net investment to achieve key step in supply chain transformation
•Avoids MVM losses immediately through a clean cash exit
•Increases earnings through vertical manufacturing margin capture and CL brand contribution
•Brings YNZ proven
IMF manufacturing
experience at scale
•Builds on existing
a2MC and YNZ
success in developing
two new English label
IMF products
(a2 Gentle Gold
and a2 Genesis)
•Benefits from a2MC
Chief Supply Chain
Officer’s operational
knowledge of facility
as previous CEO of
YNZ International
High confidence in
ability to execute:
1
Source: FY25 Market size based on a2MC internal estimation approach, which may be adjusted year-to-year, and which may result in market size not being directly comparable across periods.
35

Supports delivery of a2MC’s growth strategy
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 maintain 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
-Increase share in key
accounts, expand in lower
tier cities and further
accelerate online growth
-Invest in brand strength
and leverage across two
labels and wider portfolio
2
Ramp-up product
innovation
-Expand EL and CL IMF
product portfolios
-Develop other nutritionals
for kids, adults and seniors
-Leverage IMF and other
products into new markets
-Innovate in liquid milk
3
Transform our
supply chain
-Expand CL market access
through MVM and other
investment opportunities,
primarily in NZ and China
over time
-Develop supply capability
to enable innovation
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
-Improve USA liquid milk
losses and invest in
development of IMF
opportunity
-Increase MVM A1-free milk
pool, nutritional capability,
utilisation and efficiency
5
Bold passionOwnership & agility
Leading constructivelyDisruptive thinking
BLO
D
The transactions transform a2MC’s supply chain, address MVM profitability and enable the Company to ramp up CL product innovation and
capture the full potential of its China IMF opportunity
Transaction positive impact
36

1. Vertical manufacturing margin capture (refer page 51)
•a2MC will capture vertical profit margins on IMF production
•IMF production volumes at YNZ are expected to be
significant over time, and will include 100% of a2MC English
label IMF products and new a2MC China label IMF products
•a2MC’s existing China label a2 至初

product will remain
at Synlait
2. China label brand contribution (refer page 52)
•Additional sales and profit contribution realised from the
expanded China label IMF brand portfolio over time
3. MVM divestment (refer page 53)
•Avoidance of MVM losses on divestment
Transactions deliver attractive financial returns
EBITDA benefits
•FY26 negative due to capability investment and
transformation costs associated with the transaction,
separation, integration and transition
•FY27 approximately breakeven before potential
transition costs
•FY28 onwards positive, following a2 Platinum
in-sourcing and launch of new CL products
Investment returns
•Internal rate of return exceeds Company weighted
average cost of capital WACC of ~10%
•Return on invested capital (ROIC) is expected to achieve
WACC in FY29
Three key drivers of financial benefitGenerating attractive financial returns
37

a2MC Pokeno
manufacturing
facility acquisition

a2MC Pokeno facility acquisition
Overview
Financials
Process
•a2MC has entered into an agreement to acquire 100% of the shares in YNZ, the owner of an integrated nutritional manufacturing
facility located in Pokeno, New Zealand, from Yashili International
•Purchase price of $282 million on a debt and cash free basis, subject to a working capital and net debt adjustment on completion
•$145 million to be paid on completion with the balance held in escrow pending receipt of necessary regulatory approvals to amend
the two existing China label registrations for use under a2MC brand
•If the amendments are not approved within 12 months, a2MC can elect to unwind the transaction
•a2MC will utilise the existing A1 protein free milk pool established with Fonterra
•Delivers EBITDA and EPS accretion over time through the following key drivers:
-Vertical manufacturing margin capture on production of existing English label IMF products and new China label products
-Additional brand contribution from new CL IMF product sales over time
•Capital investment programme of ~$100 million from FY26-FY28 to enhance capability, increase capacity and address potential
future regulatory changes, plus investment in working capital build and product development of ≥$120 million over time
•Total transaction costs of <$10 million in FY26
•Acquisition 100% cash funded
•New Zealand Overseas Investment Office (OIO) approval already obtained
•Transaction is unconditional and expected to close on 1 September 2025
•a2MC will commence the amendment application process for the two existing CL registered products, estimated to take up to 12
months, with potential for a third CL product registration expected to take several years
•Further updates on the status of the China regulatory approvals will be provided in due course
39

Pokeno facility is ideally positioned to meet a2MC’s needs
•Location: Pokeno is located in the highly
productive and fertile Waikato region, in New
Zealand’s North Island, providing advantages
in milk sourcing, import / export logistics and
talent access
•Capability: High quality IMF manufacturer,
already producing two ranges of EL products
for a2MC
•CL Registrations: The facility is approved to
produce two CL products, with one unregistered
slot (available for use, subject to regulatory
approval)
•Assets: The site was commissioned in 2015 and
specialises in producing IMF and nutritional
ingredients with:
-2 x raw milk receiving bays (250m
3
each)
-2 x evaporators with extended batch capability
-GEA dryer with IMF capacity of ~35k MT pa
-Multi purpose (900g/400g) high speed canning
line, ≤120 cans/minute (~38m tins pa)
-18,900m
3
dry store area
Auckland
•Access to Port
of Auckland and
Auckland Airport
terminals
•50km from YNZ
New a2MC facility
Pokeno, NZ
Port of Tauranga
•NZ’s largest
container port
•160km from YNZ
a2 Gentle Gold and a2 Genesis
currently produced at Pokeno facility
a2MC Pokeno manufacturing facility Site highlights
40

•The a2MC Pokeno acquisition secures opportunity for greater
market access to the ~$23 billion
2
CL IMF registered market,
which makes up ~81% of the total China IMF market
•Access to the CL IMF market is exclusively through SAMR
registered products, linked to approved manufacturing
facilities, with a limit of three product registrations per facility
•a2MC currently holds 5.5%
1
CL market share through a single
CL product, a2 至初

which is produced by Synlait with the
registration attaching to their Dunsandel manufacturing facility
which will remain unaffected
•The acquisition is expected to increase a2MC’s product
registrations from 1 to 3 in the near term and will allow the
Company to target market segments where it currently under
indexes, through different consumer and trade propositions,
including:
−Lower-tier (BCD) cities
−Domestic online channel (DOL)
−Super premium price point
Unlocks growth opportunities in segments where a2MC under indexes
1
Kantar data.
2
Source: FY25 Market size based on a2MC internal estimation approach, which may be adjusted year-to-year, and which may result in market size not being directly comparable across periods.
3
Price points based on Stage 1 pricing.
CommentaryChina IMF market vs a2MC business mix
27%
a2MC value share: 5.5%
a2MC 100%
a2MC 56%
a2MC 44%
a2MC value
share: 19.2%
a2MC 20%
a2MC 80%
1
2
1,3
a2MC 0%
a2MC 0%
41

Portfolio expansion will enable a2MC to compete more effectively
1
Based on value % share of total China IMF market in FY25 – Kantar Worldpanel 0-6 years old Baby & Kids panel for the 52 weeks ending June 2025.
2
Based on value % contribution to total brand level China Label sales from top 3 ranges – Nielsen MBS retail sales tracking for the 12 months ending June 2025.
Feihe
#1
Aptamil
#2
Yili
#3
a2MC
#4
Friso
#5
Estimated %
of CL sales from
top 3 ranges
2

#6
#7
#8
#9
#10
Junlebao
Mead JohnsonWyeth
Nestle
Biostime
Of the top 10 brands in China IMF, a2MC is the only one with a single CL registered product
Total China IMF brand ranking
1
Number of CL registered products
42

Mainstream
Ultra Premium
Super Premium
Premium
a2MC English label portfolio
a2MC China label portfolio
2 existing registrations at a2MC Pokeno and
potential to access 3
rd
registration
subject to regulatory approval
Targeting an expanded IMF product portfolio over time
a2MC IMF portfolio segmentation
CONCEPTUAL
Potential to
access 2
nd

registration
at Synlait
subject to
regulatory
approval
43

a2MC will seek approval to use existing CL IMF products and 3
rd
slot
Current CL product: Bellamy’s “Jing Yue”Current CL product: Mengniu Ruibuen “Jing Po”
Key product featuresKey product features
•Pure and natural a2 Milk base from NZ
•Ultra Premium, Organic product
•No artificial preservatives, colours, flavours
•DHA and ARA (brain development)
•Pure and natural a2 Milk base from NZ
•High purity lactoferrin (immunity)
•MLCT (component of breast milk)
•DHA and ARA (brain development)
Note: Current CL products Jing Yue and Jing Po will be withdrawn from the market prior to a2MC branded products being released.
Two existing China label registrations Current unregistered 3
rd
slot
•a2MC to change milk base to A1 protein free and apply for regulatory approval to amend 2
existing registrations for use under a2MC brand
•Plan to reformulate and upgrade product over medium term to enhance consumer proposition
•Targeting registration in medium term
subject to regulatory approvals
•Unregistered slot to be used to
develop new product and formulation
•Concept development informed by
extensive consumer research
•Product development process to
commence shortly
•Lengthy NPD and approval process
Branding
and design
subject to
regulatory
approval
Formulation
and branding
subject to
regulatory
approval
Branding
and design
subject to
regulatory
approval
44

FY25FY26FY27FY28FY29/30
a2 Genesis
a2 Platinum
a2 Gentle Gold
YNZ – Slot 1
YNZ – Slot 2
YNZ – Slot 3
New product launch
1
Upgrade product
1
Upgrade product
1
Indicative product transition, development and launch timeline
Note: Indicative timetable with actual sequencing and phasing of product launches to be determined closer to the time.
1
Subject to regulatory approvals.
Regulatory approvals
NPD
Regulatory approvalsContinued sales & NPD
Production & launch
Launch
New product development (NPD)
Launch
Production & launch
Continued sales (potential upgrade during period)
Continued sales
Continued sales (potential upgrade during period)
Continued sales & NPD
NPD & regulatory approval process
SAMR registration
renewal due July 2027
High level transition plan subject to regulatory approvals – timing reflects expected financial year of occurrence
45

Significant investment planned to increase capacity and enhance capability
A multi-year ~$100 million capital investment programme is planned to increase capacity, enhance capability and address potential future
regulatory changes to align more closely to China domestic regulatory requirements
Investment requiredObjectives
•Additional multi-purpose canning line,
capable of canning 150g to 900g tins
•New electrode boiler installation
•Laboratory upgrade
•Office building extension
•Warehouse expansion
•Regulatory related upgrades
•Operational improvements
•Manufacture products for trial and new user recruitment in China, reduce change
over times on current line to improve efficiency, and to provide redundancy
•Support a2MC’s net zero emissions ambition
•Provide faster turnaround for testing, minimise risk and reduce outsourcing cost
•Prepare building and amenities for required increase in team in line with capacity
•Allow installation of additional canning line and medium care dry storage
•Ensure compliance with expected future regulatory requirements
•Assist with achieving full operational potential of facility
a2MC also intends to significantly increase the size of the team at a2 Pokeno, expecting to add more than 100 new roles
over time providing development opportunities for existing and new team members
46

Supported by long term milk supply arrangements with Fonterra
•a2MC and Fonterra have entered into a long-term agreement for A1
protein free raw milk supply from the North Island in New Zealand,
conditional on completion of the a2MC Pokeno transaction
•It will leverage the milk pool which has been developed by Fonterra
and a2MC over recent years in Waikato
•The supply agreement provides a2MC with an A1 protein free milk
pool sufficient for a2MC’s needs and flexibility within the milk
season to adjust milk utilisation based on production requirements
•The collaboration will be mutually beneficial for key stakeholders:
−Fonterra A1 protein free farmer suppliers to a2MC to receive
higher premiums
−All Fonterra farmer shareholders through the potential for
increased returns from the exclusive buy back and processing of
unused bulk liquid cream by Fonterra
−a2MC through the supply of high quality A1 protein free raw milk
to enable the production of its premium infant milk formula
products at the a2MC Pokeno facility
Overview of milk supply agreement
47

Mataura Valley Milk
divestment

MVM divestment transaction summary
•As part of a2MC’s supply transformation, the Company has also announced the divestment of
MVM in order to optimise its asset footprint, capacity utilisation and financial performance
•The divestment will see all of a2MC’s and CAHG’s ownership interests transfer to Open Country
•Completion of the transaction is conditional on CAHG completing the requisite SASAC filings by
31 October 2025, unless extended by the purchaser by one month to 30 November
•a2MC’s net proceeds are expected to be approximately $100 million on a debt and cash free basis
after transaction and other costs
•The divestment is expected to result in a loss on sale of approximately $130 million
•MVM will be treated as discontinued operations in a2MC’s financial statements
•a2MC will remain a significant customer of MVM for A1 protein free ingredients through a
commercial supply agreement
a2MC appreciates the commitment that MVM farmer suppliers, our team members, the local Gore community
and CAHG have made over many years to develop the facility and business from a greenfield site in 2016
49

Financial benefits

ProductFY26FY27FY28FY29/30
a2 Genesis
a2 Gentle Gold
a2 Platinum
New CL products
Significant vertical margin capture driven by IMF production volumes
•a2MC to capture vertical manufacturing profit margins on
IMF production
•The amount of margin capture depends on facility economics, which
is primarily a function of IMF volume throughput, product mix and
complexity, conversion efficiency and fixed cost absorption
•Financial benefit scales over time with increased production:
−Facility loss making in FY26 ($30 to 35 million EBITDA loss)
due to low IMF production, capability build and transformation
costs of ~$10 to 15 million related to transaction, separation,
integration and transition
−Approximately EBITDA breakeven in FY27 before potential
transition costs at ~10 to 15k MT IMF production. Year on year
improvement mainly driven by a2 Platinum insourcing
−Targeting >$1,500 EBITDA per MT at ~25 to 30k MT of IMF
production in FY30
•a2MC Pokeno external revenue to be significantly less than MVM at
~$20 million per annum (at nil or low gross margin)
•a2MC Pokeno brings >$180 million of pre-acquisition tax losses
<510-1525-30
IMF Vol
(MT’000)
Growth
Vertical margin captureIndicative IMF production timeline
3 labels2 products
Supported by investment in capital upgrades and working capital
•Investment in facility upgrades and working capital over time:
−Capital upgrades of ~$100 million with majority spent in
FY26-FY28
−Working capital build and product development costs of
≥$120 million over time, funded from operating cash flows
3 products
51

ProductFY26FY27FY28FY29/30
Slot 1 – existing
Slot 2 – existing
Slot 3 – new
Meaningful China label IMF brand contribution
•Acquisition provides up to 3 new China label products, expanding
a2MC’s reach to a wider consumer base securing greater market
share over time
•Expanded China label portfolio is expected to generate incremental
sales of >$100 million by FY30
•EBITDA % margin on incremental sales (excluding vertical
margin capture) is expected to be similar or above China &
Other Asia segment’s current EBITDA margin (ie ≥26%), including
marketing investment
•Key assumptions:
−Launches subject to regulatory approval and timings
−Two China label products launched in market in FY27 and a
third product in FY29/30
−a2 至初

production remains at Synlait following CY27
registration renewal (subject to regulatory approval)
−New products expected to have a lower gross margin than
a2 至初

(excluding vertical margin benefit) due to smaller
scale and market positioning
Indicative incremental revenue growth from new CL products
Increased China label portfolio brand contributionIndicative China label IMF in market timeline
52
0
20
40
60
80
100
120
140
FY26FY27FY28FY29FY30
Volume / Revenue
Time

MVM losses avoided on divestment
1H25 proforma financials excluding MVM (unaudited)FY25 proforma financials excluding MVM (unaudited)
53
$ million
1H25
Reported
Less
MVM
1H25
Continuing
Operations
Net Sales Revenue892.857.4835.4
Gross Margin400.0(17.8)417.7
GM %44.8%(31.0%)50.0%
Other Revenue1.10.01.1
Distribution
(26.9)(0.1)(26.9)
Marketing
(145.9)(0.0)(145.9)
Administrative and other (SG&A)
(124.2)(4.0)(120.2)
Interest Income and Finance Costs23.3(1.4)24.7
Profit Before Tax127.3(23.3)150.5
Income Tax Expense(43.3)4.8(48.1)
NPAT84.0(18.5)102.5
Minority Interest(7.7)(7.7)-
Attributable to owners91.7(10.8)102.5
Group Revenue893.857.4836.5
EBITDA118.9(12.0)130.9
EBITDA Margin %13.3%(21.0%)15.6%
EBIT103.9(21.9)125.8
$ million
FY25
Reported
Less
MVM
FY25
Continuing
Operations
Net Sales Revenue
1,899.3143.91,755.3
Gross Margin
875.2(21.1)896.3
GM %
46.1%(14.7%)51.1%
Other Revenue
2.70.81.9
Distribution
(57.2)(0.8)(56.5)
Marketing
(318.4)(0.0)(318.4)
Administrative and other (SG&A)
(254.2)(10.8)(243.3)
Interest Income and Finance Costs
41.2(3.3)44.5
Profit Before Tax
289.3(35.2)324.5
Income Tax Expense
(97.2)7.0(104.2)
NPAT
192.1(28.2)220.3
Minority Interest(10.8)(10.8)-
Attributable to owners202.9(17.4)220.3
Group Revenue
1,902.0144.71,757.2
EBITDA
274.3(17.4)291.7
EBITDA Margin %
14.4%(12.0%)16.6%
EBIT
248.0(32.0)280.0

FY26 outlook and
capital management

FY26 outlook
a2MC will continue executing its growth strategy in FY26, with an emphasis on capturing its full potential in the China market whilst expanding into adjacent
categories and new markets. With respect to the transactions announced today, the Company will be mainly focused on securing regulatory approvals,
progressing the future insourcing of a2 Platinum and commencing a multi-year capital investment programme
The following outlook is prepared on the basis that both transactions complete as expected and excludes any potential special dividend payment.
Continuing operations
1,2
On a continuing operations basis, the Company expects the following for FY26:
•Revenue growth of high single-digit percent versus FY25 continuing operations
3
•EBITDA % margin to be approximately 15% to 16%
•Depreciation and amortisation to be approximately $20 million to $24 million
•Interest income to be lower due to lower market rates and net transaction cash outflows
•NPAT similar to FY25 reported
3
•Cash conversion of approximately 80% to 90%
•Capital expenditure of approximately $50 million to $70 million
For external reporting purposes, a2MC Pokeno will be included in a2MC’s China & Other Asia segment, given that it will primarily benefit that segment.
Discontinued operations
1,2
MVM will be treated as discontinued operations, including operating losses prior to completion of the divestment and an expected loss on sale of
approximately $130 million.
Key risks
A range of risks could materially impact expected revenue and earnings outcomes including, but are not limited to, trading upside and downside,
challenging macroeconomic conditions, China IMF category dynamics and competitive intensity, product and supply related risks, cross border trade,
foreign exchange movements, changes in interest rates, farmgate milk pricing and other commodity prices, and regulatory risk.
1
Continuing operations represents the a2MC Group excluding MVM and including a2MC Pokeno from the expected completion date of 1 September 2025. Discontinued operations comprises of MVM.
2
Refer to following page for full breakdown of FY25 continuing operations and for separate outlook commentary related to a2MC Pokeno.
3
FY25 continuing operations revenue was $1,757 million and FY25 reported NPAT was $203 million. Refer to following page for further commentary.
55

Breakdown of FY26 continuing operations outlook
FY25 proforma results
1
The following sets out the Company’s FY26 outlook in more detail to illustrate the impact of the MVM’s reclassification to discontinued operations
on FY25 proforma results, and the impact of the a2MC Pokeno acquisition on the Company’s FY26 continuing operations outlook.
56
$ million
FY25
reported
Less
MVM
(unaudited)
FY25
continuing
(unaudited)
Continuing operations
excluding a2MC Pokeno
Plus
a2MC Pokeno
3
(1 Sep 2025 to 30 Jun 2026)
Continuing operations
including a2MC Pokeno
Revenue
1,9021451,757
•Revenue growth of
high single-digit percent
•~$20m external sales
•Revenue growth of
high single-digit percent
EBITDA
% margin
274
14.4%
(17)
-12.0%
292
16.6%
•EBITDA % margin to increase
•$30m to $35m EBITDA loss
including ~$10 to $15m of
transformation costs
4
•EBITDA % margin to be
~15% to 16%
D&A
(26)(15)(12)•D&A of ~$12m•D&A of ~$8m to $12m•D&A to be ~$20m to $24m
NPAT
5
203(17)220
•Interest income lower due to
lower market rates
•NPAT to increase
•Interest income impacted by
net transaction cash outflows
•Interest income to be lower
due to lower market rates and
net transaction cash outflows
•NPAT similar to FY25 reported
Other
n/an/an/a•Capital expenditure of ~$10m
•Capital expenditure of
~$40m to $60m
•Capital expenditure of
~$50m to $70m
•Cash conversion of
~80% to 90%
FY26 continuing operations outlook
2
(comparisons are to FY25)
1
Refer to slide 53 for full breakdown.
2
Continuing operations represents the a2MC Group excluding MVM and including a2MC Pokeno from the expected completion date of 1 September 2025. Discontinued operations comprises of MVM.
3
a2MC Pokeno expectations are provisional and may be impacted by acquisition accounting to be completed during the financial year.
4
Includes transaction, separation, integration and transition costs.
5
NPAT attributable to owners of the Company.

Transactions enable intent to declare a $300 million special dividend
•The combined transactions announced today help to clarify the
Company’s future capital needs
•As a result, the Board intends to declare a $300 million special
dividend subject to:
−Regulatory approvals being received in connection with
amendments to the two existing a2MC Pokeno China label
registrations for use under a2MC brand; and
−MVM divestment completing
•The dividend is expected to be unimputed (due to lack of available
imputation credits) and fully franked
•The Board also:
−Re-affirms the Company’s ordinary dividend policy of 60-80%
of normalised NPAT
−Confirms its intention to maintain a strong and flexible balance
sheet, continue to assess growth opportunities and capital
needs, manage risk and consider further shareholder returns
Available capital + operating cash flow
Investment
Grow core business in existing markets
Expandtheboundaries
Balance sheet strength and flexibility
Excess capital
Capital allocation framework
Shareholder returns
Special dividend
57

Questions

Appendix

Reconciliation of non-GAAP measures
1
EBITDA and EBIT are non-GAAP measures. However, the Company believes they assist in providing investors with a comprehensive understanding of the underlying performance of the business.
$ millionFY25FY24
Australia & New Zealand segment EBITDA
57.563.0
China & Other Asia segment EBITDA
332.4290.1
USA segment EBITDA
(9.3)(15.5)
MVM segment EBITDA
(15.0)(20.5)
Eliminations EBITDA
(2.3)(0.5)
Corporate EBITDA
(88.9)(82.4)
EBITDA
1
274.3234.3
Depreciation/amortisation
(26.3)(32.2)
EBIT
1
248.0202.1
Net interest income
41.236.0
Income tax expense
(97.2)(84.3)
Net profit for the period
192.1153.9
60

a2MC glossary of terms
AcronymMeaning
A1PFA1 protein free
a2MCThe a2 Milk Company Limited
ANZAustralia and New Zealand
ARAArachidonic acid
AUAustralia
BCDLower tier cities in China
CAHGChina Animal Husbandry Group
CBECCross-border e-commerce
CLChina label
CYCalendar year
DHADocosahexaenoic acid
DOLDomestic online channel
ECE-commerce
EBITEarnings before interest and tax
EBITDAEarnings before interest, taxes, depreciation and
amortisation
EDEnforcement discretion
ELEnglish label
EPSEarnings per share
FDAFood & Drug Administration
AcronymMeaning
FXForeign exchange
FYFinancial year
GAAPGenerally accepted accounting principles
GBGuo Biao, national standards of China
GDTGlobal Dairy Trade
GHGGreenhouse gas
GMGross margin
HMOHuman milk oligosaccharides
IMFInfant milk formula (Stage 1-4)
JDJingdong
Key&AUpper tier cities in China
KOLKey opinion leader
MATMoving annual total
MBSMother & baby stores
MLCTMedium and long-chain triacylglycerol oil
MVMMataura Valley Milk Limited
NIFNNew Infant Formula Notification
NPATNet profit after tax
NPDNew product development
NZD/NZ$New Zealand Dollar
AcronymMeaning
NZNew Zealand
OIONew Zealand Overseas Investment Office
O2OOffline to online
PCPPrior corresponding period
POSPoint of sales
POSMPoint of Sale Marketing
R&DResearch and development
RMBOfficial currency of China
ROICReturn on invested capital
SAMRState Administration for Market Regulation
SEASouth East Asia
SASACState-owned Assets Supervision and Administration
Committee
SG&ASelling, general and administrative expenses
TmallTaobao Mall
UHTUltra high temperature treated milk
USAUnited States of America
WACCWeighted average cost of capital
YNZYashili New Zealand Dairy Co Ltd
61

www.thea2milkcompany.com

---

The a2 Milk Company
2025 Climate
Statement
We pioneer the future of Dairy for good

2025 Climate statement
Important information for readers
This disclosure is intended to inform readers about
The a2 Milk Company Limited’s (the Company or a2MC)
climate-related governance, strategy, risk management, and
metrics & targets for the financial year ended 30 June 2025.
It should not be interpreted as an offer of financial products
or as capital growth, earnings or any other legal, financial,
tax or other advice or guidance for investors and other
primary users or any other reader.
This disclosure contains forward-looking statements and
information, including climate-related scenarios, climate-
related risks and opportunities, projections, metrics, targets,
estimates, and assumptions about future climate-related
conditions.
Forward-looking statements are not facts, but rather
estimates and judgements regarding possible future actions,
events and results that are based on current estimates
and strategies, developed using methodologies, views and
assumptions currently considered by a2MC to be most
suitable. They are necessarily subject to risks, limitations,
uncertainties and/or assumptions and change.
Accordingly, no forward-looking statements, or other
information presented in this disclosure that is based on
estimates, assumptions or judgements, should be taken as
a guarantee of future outcomes or performance on the part
of a2MC. In particular, actual results, outcomes, risks and
opportunities may materially differ from those which have
been described in this disclosure due to various factors
such as socioeconomic and macroeconomic trends, climate
change, customer behaviour, policy, legislative and regulatory
change, geopolitical risks and events, and other events or
conditions that are unforeseen as at the date of publishing
this disclosure.
a2MC has sought to provide accurate and correct disclosures
as at the date of publication (including all relevant material
information as at the date of publication that could reasonably
be expected to influence decisions that primary users make
on the basis of this disclosure), but readers are cautioned not
to place undue reliance on the information presented in this
disclosure that is forward-looking or that is otherwise based
on estimates, assumptions or judgements.
Given the novel and developing nature of the information
contained in this disclosure, as well as the inherent
uncertainty of the subject matter, “accurate and correct”
does not entail certainty of outcome. It means that a2MC has
undertaken appropriate measures and implemented adequate
controls such that the information presented is believed to
be free from material error or misstatement and is otherwise
fairly presented.
Net Zero targets
In this Statement, all references to ‘net zero’ GHG emissions
means the achieving of a balance (i.e. netting off) between the
greenhouse gas (GHG) emissions released to the atmosphere
by the Company’s direct activities and activities in the
Company’s value chain (ie Scope 1, 2 and 3 emissions) and the
GHGs captured and fixed by a2MC’s activities or investments.
The timeframe for the Company’s net zero target is 2030 for
Scope 1 and 2 emissions and 2040 for Scope 3 emissions.
The Company aims to achieve net zero by reducing released
GHG emissions as far as practicable within its value chain
(i.e. in accordance with the targets explained in the Metrics
and Targets section in this document), and balancing out
the remaining GHG emissions released by investing in
carbon capture and fixation activities. This balance may be
through in-setting carbon capture activity within the value
chain or through the purchase of credible carbon credits
or certificates. The Company’s policy for determining the
credibility of carbon credit/certificate offsets is yet to be
developed, as we are not yet relying on offsets for the net zero
targets.
The methods and pathways for endeavouring to meet the
Company’s net zero targets are set out in the Emissions
Reduction Plan information in the Strategy section in this
document. Achieving the net zero targets may be difficult
and is dependent on a number of assumptions and external
factors described in the Emissions Reduction Plan section,
including the pace of policy and technology developments, as
well as cost and other commercial constraints on the ability to
decarbonise. The Company currently considers there are good
grounds to believe that those dependencies and assumptions
can be relied on, but we continuously monitor this and may
change the targets and plans relating to net zero in the future
if necessary.
Monetary values
All values in this Statement are expressed in New Zealand
dollars unless otherwise stated.
Materiality
In line with NZCS 3, the Company has defined information
as material if omitting, misstating or obscuring it could
reasonably be expected to influence decisions that primary
users make on the basis of an entity’s climate related
disclosures. Primary users are defined as existing and
future shareholders, lenders and other creditors.
Cross-referencing
Unless otherwise expressly stated, where external documents
are referred to in this Climate Statement, these do not
form part of the disclosures but are simply general and/
or contextual information to direct the reader to further
information, should they wish to read more.
THE a2 MILK COMPANY
2025 CLIMATE STATEMENT
2

Climate related disclosures
The directors of The a2 Milk Company Limited are pleased
to present the second annual group Climate Statement for
The a2 Milk Company Limited and its subsidiaries (together,
a2MC or the Company or the Group) for the year ended
30 June 2025, including Mataura Valley Milk Limited (MVM),
which owns a purpose-built milk processing facility in
Southland, New Zealand.
The a2 Milk Company Limited is a Climate Reporting Entity
under the Financial Markets Conduct Act 2013. The directors
consider this Climate Statement of the Group to have been
prepared in accordance, and to be compliant, with the
Aotearoa New Zealand Climate Standards (NZCS) issued
by the External Reporting Board (XRB). For more general
information relating to the Company’s climate-related
efforts, sustainability considerations, and ESG reporting,
refer to the Company’s Annual Report and ESG reporting
library on its website.
Since FY22, the Company has aligned its reporting suite with
the recommendations of the Taskforce on Climate-Related
Financial Disclosures (TCFD) and it has incorporated elements
of the TCFD recommendations within this statement where
they cross over with the requirements in the NZCS.
In line with its goal to enhance reporting with a more
comprehensive view of its ongoing efforts to create and
preserve long-term value, the Company, as a Climate
Reporting Entity, is committed to continuously increasing
the depth and breadth of its disclosures in this area in future
reporting periods.
Disclosure provisions
The Company has applied the following adoption provisions
available under the NZCS 2 – Adoption of Aotearoa New
Zealand Climate Standard:
–Adoption Provision 2: Anticipated Financial Impacts
(paragraphs 12-14 of NZCS 2) which provides a second
year extension to the exemption in the first NZCS
reporting period from the requirements to disclose the
anticipated financial impacts of climate-related risks and
opportunities, a description of the time horizons over
which the anticipated financial impacts could reasonably
be expected to occur, and (if relevant) an explanation as to
why quantitative information cannot be disclosed.
–Adoption Provision 6: Comparatives for metrics
The Company has relied on adoption provision 6 to allow
it to provide only one year of comparative information for
each metric disclosed in the FY24 reporting period and in
the FY25 reporting period.
–Adoption Provision 7: Analysis of trends
In this second year of disclosures, the Company has applied
this adoption provision and has not disclosed an analysis of
the main trends evident from a comparison of metrics.
Pip Greenwood
Chair
David Bortolussi
Managing Director and CEO
3

GHG emissions profile
Methane
65%
On-farm
(Scope 3)
On-farm GHG emissions
Nitrous oxide
On-farm
(Scope 3)
81%
9%
9%
0.1%
1%
20%
Other (Scope 3)
Third Party
Facilities (S
[TRUNCATED]

Appointment of new independent NED – Grant Dempsey SPH Notice - Challenger Limited

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Other issuers discussed similar conditions around this time

Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.

NZX — NZX Limited: NZX H1 2025 Results & Interim Report Published
2025-08-21
“Results announcement 22 August 2025 Results for announcement to the market Name of issuer NZX Limited Reporting Period 6 months to 30 June 2025 Previous Reporting Period 6 months to 30 June 2024 Currency NZD Amount (000s) Percentage change Revenue from continuing…”
CEN — Contact Energy Limited: FY25 powered by geothermal expansion and resilience
2025-08-17
“Results announcement (for Equity Security issuer/Equity and Debt Security issuer) Results for announcement to the market Name of issuer Contact Energy Limited Reporting Period 12 months to 30 June 2025 Previous Reporting Period 12 months to 30 June 2024 Currency NZD Am…”
SML — Synlait Milk Limited: FY25 Results, North Island Assets Sale & Annual Meeting
2025-09-28
“Notice of Meeting – Friday 21 November 2025 Synlait Annual Meeting will be on Friday 21 November at 1:00pm (NZT). The Annual Meeting will be held in person at the Bealey Rooms 4 and 5, Te Pae Christchurch Convention Centre, 188 Oxford Terrace Christchurch, New Zealand, and onli…”