A2 Corporation Presentation to RWD

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Agribusiness Outlook Australia 2015

May, 2015

Shareef Khan General Manager Group Operations

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About the Milk.

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What is a2 Milk™? • a2 Milk™ is real and naturally occurring fresh dairy milk and not a product of a technological

process or genetic engineering

• All ordinary cows’ milk is a mixture of A1 and A2 beta-casein protein - a2 Milk™ is the exception

• a2 Milk™ contains 100% A2 type of beta-casein protein

• Scientific evidence has revealed originally all cows produced milk with only the A2 beta-casein protein. However a genetic variation occurred many thousand of years ago in European dairy herds, resulting in the emergence of A1 protein that then spread around the world

• The difference in structure between the beta casein protein variants leads to a difference in their breakdown during digestion

• The a2 Milk Company™ (a2MC) DNA tests cows that naturally produce milk that’s rich in the A2 protein (and free from all A1) and then segregates their milk until it reaches consumers via proprietary know-how to ensure that a2 Milk™ only has pure A2 protein from cow to consumer

protein protein protein

a2 Milk, a2 Platinum and The a2 Milk Company are trade marks of The a2 Milk Company Limited

Ordinary milk

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What is a2 Milk™?

Originally all cows produced milk containing only

A2 protein

Genetic variation has resulted in

mixed herds

a2 Milk™ is from cows who naturally produce

milk with only 100% A2 protein

Ordinary milk is a mix of A1 and A2 proteins ~70%

~30%

A2/A2 A1/A1

A2/A2

A2/A2

A2/A2

A1/A2


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About the Milk Company.

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Hello world


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Brief company history1

2013 a2 Platinum® infant formula is

launched in China, Australia and New Zealand

2004 Listed on NZX Alternative Market

2007 JV with Freedom Foods formed

for the production and marketing of the a2 Milk™ brand in Australia

2014 a2MC fully acquires UK JV.

New management team and consumer proposition put in place

a2 Milk™ Australia extends into

thickened cream and continues to drive market share growth in the fresh milk supermarket category

a2MC commences exporting fresh

milk to China on a trial basis

First human digestion trial published in European Journal of Clinical Nutrition reporting a digestive difference between A1 and A2

protein supporting previous studies

2000 The a2 Milk Company™ was founded in New Zealand by

scientist Dr. Corran McLachlan and his business partner Howard

Paterson - armed with intellectual property and

growing belief of the effect different milk proteins have on

human health

2008 Consumer and healthcare

professional advocacy in Australia accelerates brand growth

2012 Commissioned new milk processing

facility in Sydney, Australia

Launch a2 Milk™ into the UK fresh milk market through JV with Robert

Wiseman Dairies

Listed on NZX Main Board

2015 Listed on the ASX

a2MC launches a2 Milk™ into the

California region from mid April via a wholly owned subsidiary

1Years shown are based on calendar years


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Our range around the world Australia UK

China, Australia, NZ

USA (April 2015)


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a2 Milk™ is focussed on digestive benefits

• The brand proposition has evoked a strong response from consumers, in terms of both the health and digestive benefits, in addition to the appeal of taste and freshness

‒ Consumers link a2 Milk™ with improved digestive comfort and the reduction of milk sensitivity symptoms

• A growing body of independent published scientific research has demonstrated a structural difference between the A1 and A2 proteins and the way the digestive system breaks them down

– The European Food Safety Association were asked to review the body of scientific literature in 2008 and found that fragments which are derived from the A1 protein on digestion have the ability to interact with a wide range of cells, including those involved with digestive and immune function. This does not occur with the A2 protein

– More recent animal and human studies support EFSA’s conclusions

• a2MC is bringing consumers back to the enjoyment of dairy for those who otherwise would have issues or restrict consumption


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“We have found a2 Milk to be fantastic as my

partner has a real problem with normal milk, but a2 seems to

have relieved this! Thanks!” Jilly UK

“Milk tastes very pure, not too sweet,

natural, fresh and lets me feel relieved.”

Hannah, China

“What a difference this milk makes! It tastes the same and looks the same, but it

made me feel so much better!” Ryhanne Australia

“Well we have had a2 Milk for nearly 2 weeks and I have to say I have

been pleasantly surprised. My kids are not complaining of tummy aches any more. They are actually asking for glasses of milk, whereas before they would only ask for water or

juice. My son loves the taste. I love the taste.” Adriana, Australia

“Since switching to a2 Milk, I’m able to enjoy dairy again. This has improved my overall wellbeing…and helps me to train

everyday…Thanks a2 for helping me achieve my goals!” Robert, Australia

“a2 Milk has truly changed our lives. My son, Noah, has terrible reflux and was

constantly ill. It wasn’t until I discovered a2 Milk that I realised the cause was the

A1 protein. Almost immediately his reflux stopped and he was happy again.”

Sara UK

“My whole family has suffered when we have had normal milk in the past and I

switched us to your brand and we couldn’t be happier, the kids are now

happily drinking milk again and my cup of coffee in the morning is now perfect.”

Angela Australia

Source: Consumer testimonials given to a2MC from Australia, UK, China

POSITIVE CONSUMER EXPERIENCES ARE FUNDAMENTAL TO THE SUCCESS OF THE a2 MILK™


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Unique marketing and portfolio has also been a success driver

LIQUID MILK INFANT NUTRITION OTHER DAIRY PRODUCTS

FRESH MILK Australia, UK, China, USA

LONG LIFE MILK Australia, China

CREAM Australia

YOGHURT Australia

INFANT FORMULA Australia,

New Zealand, China

Unique and premium product portfolio Based around the benefits of A1 protein free products

1 EY Sweeney Brand Health Study, August 2014. Sample size 1,379

• Unique marketing programs that target both consumers and health care professionals

• Category-distinctive advertising and social media focusing on highlighting potential benefits to consumers

• Health care professional programs are a key way of introducing the brand to our consumers

• Those who have issues consuming regular milk - in Australia, this is approximately 19% of milk drinkers1

• In doing so, health conscience and premium consumers are attracted to the brand despite not having milk issues

Differentiated brand communication Our consumer


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Scalable and flexible supply chain

1. Milk supply Milk sourced from

segregated dairy herds

• Farm selection procedures • Assist farmers with breeding

and herd maintenance • Use separate storage vats

and milking procedures • Milk validated as A1 protein

free

2. Processing Milk processed at a2MC

facilities or contracted 3rd party facilities

• Milk transported in segregated tankers

• Milk stored in isolated vats

3. Distribution Contractors distribute products to outlets/

wholesalers

• Contracts with 3rd party providers, distributors and wholesalers

• Maintains quality control for storage and delivery

4. Retail/consumer Products sold through a

variety of channels

• Contracts with supermarket chains and retail outlets

• Education initiatives • Investment in brand and

trade mark portfolio

The a2 Milk Company™ value creation

a2MC advanced testing and record keeping


Australian success story.

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Australian experience

+45% 6-year CAGR 9.3% market share of total fresh milk

• a2 Milk™ accelerated sales strongly as awareness developed • Consistently commands a 150% price premium vs own label store brands • Milk category consumption declines were halted since acceleration of a2 Milk™ in 2007, a

positive trend that has not been the case in other mature milk markets (e.g. US and UK) hence believe a2 Milk™ has assisted growth of the entire dairy category


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Australian experience

• a2 Milk™ now has over 9.3% value market share of grocery milk market– bigger than lactose free, organic and the dairy alternative segments combined

• The brand also has 2 skus in total top 20 Grocery branded skus (excl cigarettes and store brands)

Rank Brand SKU

1 Coca-Cola Reg Cola, 375ml x 24

2 Coca-Cola Reg Cola, 375ml x 30

3 Coca-Cola Reg Cola, 2L

4 Coca-Cola Reg Cola, 1.25L

5 Nescafe 43 Granules, 500g

6 Quilton Reg, 3p 20’s T/Tis Clsc Wht

7 Pepsi Max Cola, 375ml x 24

8 Coca-Cola Zero Reg Cola, 375ml x24

9 Coca-Cola Reg Cola, 600mL

10 Coca-Cola Zero Reg Cola, 375ml x30

11 a2MC Full Cream Milk 2L

12 Cadbury Dairy Mlk Block, 220g

13 Quilton Reg, 3p 24’s T/Tis Clsc Wht

14 Cadbury Favourite Assorted, 600g

15 Sorbent Extra Thick, 2p 24’s T/Tis Wht

16 Doritos Reg Chs Supreme, 175g

17 Golden Crumpets 6pk 300g

18 Western Star Spread Regular Spreadable, 500g

19 Wonder White 7 Vitamin Sw, 700g

20 a2MC Low Fat Milk 2L

Source: IRI-Aztec MarketEdge National Grocery (incl. ALDI weighting) ‘What’s Hot’ Report (Rolling 12 MAT 29/06/14)


Asia in a bit more detail.

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Asia • Asia presents a considerable opportunity for a2MC

– Demand for Australasian infant nutrition and dairy products is growing

– High level of dairy sensitivities in Asian populations

• Launched a2 Platinum® infant formula into China in Nov-13 with the intention of establishing a position in China before expanding into other Asian markets

• Infant formula processed and packaged by Synlait who has an integrated facility that allows full manufacturing and packaging control

• a2MC oversees the distribution, marketing and communication activities of a2 Platinum®

• Now selling fresh milk and exploring opportunities for the sale of long life milk


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Working with, driving growth and adding value in the Australian Agribusiness sector

The a2 Milk Company™ adds maximum value to the category. Premiums flowed throughout the supply chain elevating the value of milk as a commodity and creating a positive

impact for primary producers

The a2 Milk Company™ has long standing commercial relationships with quality processing partners. Respected partners include Norco, Southern Processing, Bulla, Brownes WA, Procal and Pactum

The a2 Milk Company™ has long standing commercial relationships with the farming community. Over 30 farms, small and large throughout Australia. Ongoing support to identify, segregate and maintain certified

herds that produce only pure A2 protein, and no A1.

The a2 Milk Company™ is assisting industry growth in Australia In other western countries dairy is declining (like US and UK), Over the last ten years Australia has had both volume

and value category growth and the a2 Milk™ has contributed to this

THE a2 MILK COMPANY™ IS BRINGING PEOPLE BACK TO THE ENJOYMENT AND NUTRITION OF DAIRY


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Disclaimer

This presentation dated May 2015 is provided for 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.

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 a2MC 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 a2MC, 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 the 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 currency unless otherwise stated.

All intellectual property, proprietary and other rights and interests in this presentation are owned by a2MC

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