The a2 Milk Company Limited (NZX: ATM) 2020 Annual Meeting presentation (including Outlook)

Wednesday 18th November 2020

The presentation is to be given at The a2 Milk Company’s Annual Meeting of Shareholders, to be held online today at 11am NZ time. The Company’s outlook statement is included at page 24 of the presentation and confirms that the guidance provided in September 2020 is being maintained.

Outlook

At the end of September, we advised of challenging market dynamics that were being experienced

We are maintaining guidance as advised in September:

‒ We expect Group revenue for 1H21 of $725 million to $775 million;

‒ Group revenue for FY21 of $1.80 billion to $1.90 billion; and

‒ FY21 EBITDA margin for FY21 in the order of 31%.

However, due to the volatility arising from COVID-19, and the difficulties this presents with forecasting, naturally there is uncertainty to this forecast.

We also acknowledge the outlook provides for a significant increase in revenue in the second half, dependent on a number of key assumptions, including an improvement in the daigou channel and continued growth in our China label business.

We continue to observe strong underlying brand health metrics, in particular in China, including market share expansion, and growth of brand awareness and loyalty measures. This gives us confidence that, notwithstanding the current headwinds, the fundamentals of the business over the medium term remain sound.

See the link below for more details:

CEO Presentation Annual Meeting 2020

Source: The a2 Milk Company Limited

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