Fonterra Shareholders' Fund (NZX: FSF) Annual Meeting materials

Monday 9th November 2020

FSF MANAGEMENT COMPANY CHAIRMAN’S ADDRESS

Fonterra’s reported Profit after Tax was $659 million, up $1.3 billion on last year, and net debt was reduced significantly, down $1.1 billion. Normalised earnings per share came in at the top of the forecast range at 24 cents per share, and with these improved earnings and a stronger balance sheet, Fonterra has recommenced paying a dividend, which was one of the Fonterra Board’s priorities for the 2020 financial year. Fonterra declared a final dividend of 5 cents per share and as a result, unit holders have received a final distribution of 5 cents per unit – which was paid on the 15th of October.

It is positive to see Fonterra has continued to focus on financial discipline. In the financial year this resulted in improved cash flows and improved gearing and debt payback ratios. Fonterra’s free cash flow, being the cash flow that is available to pay interest and dividends and to reduce debt, increased by $733 million to $1.8 billion.

Looking to the 2021 financial year, there is uncertainty as to how the global recession and new waves of Covid-19 may impact dairy demand globally. It is something Fonterra’s management team will be monitoring closely throughout the financial year – and they will provide more colour on this shortly.

See the links below for more details:

FSF Annual Meeting presentation

FSF Chairman's address

Fonterra Chairman's address

Fonterra CEO's address

Source: Fonterra Shareholders' Fund

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