Page 1

Fonterra Dairy for life Market Announcement 17 March 2021 Fonterra reports a positive half year result Summary of numbers • • • Reported Profit After Tax $ 391 million , down 22 % * Normalised Profit After Tax : $ 418 million , up 43 % # Total Group normalised Earnings Before Interest and Tax ( EBIT ) : $ 684 million , up 17 % # Total Group EBIT : $ 657 million , down 18 % . • Net debt : $ 5.6 billion , down 3 % • • • Total Group normalised Gross Profit : $ 1,722 million , up 3 % Total Group normalised Gross Margin : 17.4 % , up from 16 % Total Group normalised Operating expenditure : $ 1,055 million , down 3 % Normalised Greater China EBIT : $ 339 million , up 38 % Normalised Asia Pacific EBIT : $ 190 million , up 9 % Normalised Africa , Middle East , Europe , North Asia , Americas ( AMENA ) EBIT : $ 201 million , down 7 % Full year forecast normalised earnings per share : 25-35 cents per share • • Interim dividend : 5 cents per share Forecast Farmgate Milk Price : $ 7.30- $ 7.90 per kgMS Forecast milk collections : 1,525 million kgMS , up 0.5 % * 2020 included the gain from the divestments of DFE Pharma and foodspringⓇ . # These normalised numbers reflect the underlying performance of the business . Fonterra Co - operative Group Limited today announced its 2021 Interim Results and they show the Co- operative has had a positive first half , resulting in a Total Group normalised EBIT of $ 684 million , normalised Profit After Tax of $ 418 million and a decision to pay an interim dividend of 5 cents alongside a strong forecast Farmgate Milk Price . Fonterra CEO Miles Hurrell says Fonterra is pleased with its Reported Profit After Tax of $ 391 million . " While down on this time last year at a headline level , the 2020 financial year benefited significantly from the divestments of DFE Pharma and foodspringⓇ .