NOUMI LIMITED — Investor Presentation 2012

Oct 30, 2012

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Freedom Foods Group Limited ABN 41 002 814 235 80 Box Road Taren Point NSW 2229

31[st] October 2012

Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000

Freedom Foods Group Limited A2 Corporation Limited – Strategic Review Outcomes

Freedom Foods Group Limited (ASX:FNP) notes A2 Corporation Limited (NZX: A2C) announcement today in relation to an update on the outcomes of the Strategic Review announced in April 2012.

See attached copy of the A2 Corporation NZX Release and presentation.

FNP is the largest single shareholder in A2C with a fully diluted shareholding of 25.8%.

A2C is listed on the alternative market (NZAX) of the New Zealand Stock Exchange (NZX: ATM), with a market capitalisation (based on average price of NZD$0.49 between June 30 2012 and September 30 2012) of approximately NZ$299 million (A$233million), implying a value for FNP’s 25.8% (fully diluted) investment of approximately A$60m, materially above its book value of approximately A$12.3 million and in excess of FNP’s current quoted market capitalisation.

For further information, please contact:

Rory J F Macleod Managing Director

Freedom Foods Group Limited

Tel: +61 2 9526 2555

NZAX and media release 31 October 2012

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Strategic review outcomes

MARKET UPDATE

A2 Corporation Limited (“A2C” or “the Company”) announced in April 2012 it was undertaking a strategic review of the Company in order to assess its options to accelerate growth and maximise shareholder value. Additionally, the review considered the merit of approaches received from parties interested in partnering with A2C.

The strategic review is now complete and the Company wishes to update the market on the outcomes. The Board is pleased with the work undertaken by management and the advisors during the course of the review.

The outcomes of the strategic review are that A2C will dedicate additional resources to initiatives previously announced and prioritise investment in opportunities identified during the strategic review, including:

Further developing the strong suite of intellectual property and the uniqueness of a2™ brand dairy products

A2C has developed, and is continuing to develop, a comprehensive suite of global intellectual property, including patents, trademarks, proprietary processes and know-how with respect to a2™ brand dairy products. An independent legal review of the global intellectual property undertaken during the course of the review has confirmed that the intellectual property rights are strong and of extended duration with the opportunity to further enhance and extend.

Further growing the Australia and New Zealand fresh milk businesses by investing in additional processing capability in Australia and extending the Australian sales and marketing model into New Zealand

The Australian a2™ fresh milk business continues to perform strongly. Current trends and strategy suggest a milk value share of at least 10% of grocery is achievable in Australia in the medium term. In addition, the Company contemplates further growth through route trade distribution. To support the continued growth of the business, the strategic plan envisages an investment in additional processing capability to supplement A2C’s company owned and operated facility at Smeaton Grange, New South Wales.

The Company has also decided to enter the New Zealand fresh milk market directly through the establishment of a wholly owned operating subsidiary. Discussions are underway with the sole remaining non-exclusive licensee to ensure an optimal outcome for the expansion of the business across the North and South Islands.

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Accelerating investment in the UK fresh milk market now that the Robert Wiseman joint venture is established

The 50/50 joint venture with Robert Wiseman Dairies, the largest dairy processor in the UK, has positioned A2C to enter the UK fresh milk market, where trends support the a2™ brand proposition. A launch through almost 700 supermarket outlets of three major supermarket chains is now under way. A fourth supermarket chain will offer a2™ brand fresh milk from January 2013 coinciding with the commencement of a television advertising campaign.

As in Australia, the pace of development of the UK business is dependent on building consumer awareness of the products and its potential benefits and further expanding distribution through retailers. The size of the opportunity in the UK market is significant, and A2C will continue to assess the merit of making additional investment beyond the initial capital contribution to accelerate growth in the medium term. A successful launch of a2™ brand fresh milk in the UK will provide the platform to expand the product portfolio in this market and new markets in Europe.

Accelerating investment in the large and rapidly growing China infant formula market now that the China State Farm distribution agreement is established

Last week, A2C announced the appointment of China State Farm Holding Shanghai Company (“CSF”) as the exclusive distributor of a2™ brand infant formula for China. CSF is a wholly owned subsidiary of China National Agriculture Development Group Corporation, the only Chinese State Owned Enterprise that operates in the production of agriculture, animal husbandry and fisheries. CSF has the strength of local relationships and financial capacity to establish a dedicated infrastructure, distribution network and marketing activity to support the A2C infant formula business plan. CSF and its parent have demonstrated strong commitment to the a2™ product proposition. A2C’s business model, which is based on limited capital expenditure, is focused on a rapid roll-out, initially targeting the five core Tier 1 cities, progressively expanding across China, Hong Kong and Macau. Based on current business plans, a funding commitment of around USD5 million is assumed during 2013/14. Additional opportunities to distribute a2[TM] brand milk throughout China and South East Asia are being reviewed.

Entering new international markets, with an immediate focus on North America and specific markets in Europe

The Company has identified a number of attractive international markets for a2™ brand milk beverages. North America and a number of markets in Europe, including Germany, France, Italy and Spain, have been prioritised as the Company’s next market entries. The entry model will differ by market and may involve a joint venture as has been done in the UK, the use of a local contract manufacturer or an investment in regional processing assets, as in Australia.

Entering new categories, with UHT milk and Yoghurt the immediate focus

The high-growth UHT milk and Yoghurt categories have been identified by the Company as attractive opportunities for the a2™ brand. There is significant scope for A2C to enter these categories, particularly in Asia Pacific and Europe where the Company can leverage its existing infrastructure in Australia and the UK.

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Corporate Structure and Resourcing

A new organisation structure for A2C will comprise three business units - Australia and New Zealand, A2 Milk (UK) and A2 Infant Nutrition - plus a corporate capability to manage administration and new international initiatives. The financial and human resources of the Company are considered appropriate to fully support the strategic agenda.

A2C is well placed to drive strong future growth independently, with an openness to engage with potential partners who may assist with its global ambitions. By virtue of the capital light partnership model the Company is well positioned to progressively fund its development through its internally generated cash flows and strong balance sheet. The Board will continue to assess the Company’s optimal capital structure in light of the above mentioned opportunities, as well as new opportunities that may emerge.

For further information contact:

Geoffrey Babidge Managing Director A2 Corporation Limited +61 2 96977008

A2 Corporation Limited

A2C is a differentiated, premium-priced dairy company which is building a global business based on unique intellectual property relating to a2 Milk™ and related products.

A2C has operations in Australia, New Zealand, the UK and China and is pursuing growth opportunities in Asia, North America & Europe.

A2C is listed on the NZAX market and trades under the code ATM.

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A2 Corporation Strategic review outcomes

31 October 2012 Geoffrey Babidge Managing Director & CEO

Disclaimer

This presentation has been prepared by A2 Corporation Limited (“A2C”) management based on information available to them as at 30 October 2012. The purpose of this presentation is to provide general information about A2C only and is not intended to take the place of due diligence. No representation or warranty, express or implied, is made as to the fairness, reasonableness, accuracy, completeness or correctness of, and no person should rely on, the information, opinions and conclusions contained within this presentation. To the maximum extent permitted by law, neither A2C nor any other member of the A2C Group, nor any of their respective directors, employees or agents, nor any other person accepts any liability for any loss or damage arising from the use of, or in connection with, this presentation or its contents or otherwise arising from fault or negligence on the part of any of those persons.

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Table of Contents

1. Introduction

2. Market and industry overview

3. A2 science and IP

4. Current A2 Corporation capabilities 5. Strategic review outcomes a) Australia and New Zealand

5. b) UK

6. c) China

7. d) New markets

8. e) New categories

9. Summary

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Introduction

• A2 Corporation Limited (“A2C”) is a differentiated, premium price dairy Company which is building a global business based on unique intellectual property applying to a2™ brand milk and related dairy products

• Listed on the NZAX with a current market capitalisation of c.NZ$390m and achieved FY12 sales of NZ$62.5m

• a2™ brand milk has a unique proposition that delivers a tangible consumer benefit which aligns with the positive macro global consumer health trend

• Evidenced by strong customer testimonials and a deep and growing body of science

• Unique, innovative and global dairy brand, positioned at a significant price premium

• A2C is one of the fastest growing Australian FMCG businesses

• A2C announced in April 2012 it was undertaking a strategic review of its options to accelerate growth and maximise shareholder value

• This review was being undertaken in light of the Company’s strong growth options as well as approaches received from parties interested in partnering with A2C

• The Company remains open to discussions with third parties who may assist with its global ambitions

• The strategic review is now complete and this presentation provides the outcomes of the process

4

2 Market and industry overview

5

Global fresh and UHT milk market exceeds US$120bn

Global Fresh Milk Market (2011)

Global UHT Milk Market (2011)

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US$bn
16.0
14.5
14.0
12.0
10.0
8.0 7.2
6.2
6.0 5.0
4.0 3.1 2.9 2.8 2.5
1.8 1.8
2.0
0.0
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US$bn
10.0
9.0 8.6
8.0
7.0
6.0 5.6
5.0
4.0 3.4
3.0
2.3
2.0 1.6 1.8 1.7 1.3 1.2
0.7
1.0
0.0
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Total World Fresh Milk Market $85bn

Total World UHT Market $38bn

Source: Euromonitor (2011)

6

Scope for innovation in mature and commoditised global dairy markets

Consumer Trends

Generic milk share of Grocery

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Less More
Price conscious 70%
4%
Health focused 66%
2%
Avoiding additives 4% 56%
Responsible 1% 52%
Smarter choices 2% 49%
45%
Interested in promotions 12%
43%
Planned ahead 9%
41%
Buying to please others 12%
38%
Environmentally friendly 5%
38%
Frugal 13%
0% 20% 40% 60% 80%
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UK 86%
Germany 64%
US 63%
Australia 52%
France 42%
Spain 41%
0% 20.0% 40.0% 60.0% 80.0% 100.0%
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Source: SheSpot Consumer Survey (2012)

Source: Symphony IR (2009), Australia National Scan Chains (2009)

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Asia—the major growth market for drinking milk

• Asian growth is being driven by the adoption of more Western eating patterns, rising living standards and an increasing focus on health

• At a forecast size of c.US$61bn in 2016, emerging Asian countries are expected to account for 29% of the broader Drinking Milk category[(1)]

Global Growth ex-Asia—Drinking Milk[(1) ]

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US$bn
200
180
CAGR: 3.8%
160
CAGR: 2.2%
140
120
100
80
60
40
20
0
2008A 2009A 2010A 2011A 2012F 2013F 2014F 2015F 2016F
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Source: Euromonitor (2011)

Asian Growth—Drinking Milk[(2) ]

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US$bn
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70
CAGR: 9.4%
60
50
CAGR: 9.9%
40
30
20
10
0
2008A 2009A 2010A 2011A 2012F 2013F 2014F 2015F 2016F
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Source: Euromonitor (2011)
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Notes:

1. Drinking Milk includes Fresh, UHT, Flavoured Milk, Powder Milk, and Soy Milk

2. Excludes Japan and Taiwan

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Asia—also the major growth market for infant formula

• The global market for infant formula is at least US$17bn and is expected to grow at c.8% CAGR (mostly driven by China at c.12% CAGR)

• The China infant formula market is the largest at around US$6bn in 2011. Estimated tonnage of 400,000 p.a. (up from 106,000 in 2000)

• The China infant formula market is growing at an average rate exceeding 12% per annum and is undersupplied. The growth is likely to continue due partly to the ‘one child’ policy being relaxed

Global Infant Formula Market (US$bn)

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South
America
$0.8bn
China 5% North
$6.0bn America
36% $3.2bn
19%
Western
Europe
$1.2bn
7%
Eastern
Europe
$1.0bn
6%
SE Asia Middle East
$3.0bn Japan $0.7bn
18% $0.8bn 4%
5%
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China Infant Formula Market (US$bn)[(1) ]

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Low-End CAGR: 8% Medium-End CAGR: 15% High-End CAGR:
18.3
20.0
16.0
Total CAGR: 12% 5.9
5.2
12.0 4.8
4.3
3.8
3.5
8.0 3.2 8.9
4.0 5.21.71.9 2.12.2 2.22.5 2.52.9 2.93.3 3.8 4.5 5.1 5.9 6.7 7.6
1.6 1.6 1.7 1.9 2.1 2.2 2.4 2.5 2.9 3.0 3.2 3.5
0.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Source: InterChina’s bottom-up estimation based on interviews with category insiders (March 2011) Note:

1. Market values have been converted from CNY to USD using rate of 6.29/USD as at 3 May 2012

9

There is an increasing global consumer focus on health and wellbeing

Global Health and Wellness Market (US$bn)

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625.9
462.9
2006 2011
Source: Euromonitor (2011)
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• Foods that are capable of providing “health” characteristics can command a significant price premium

• Digestive health

• Growing awareness and understanding that digestive health is important

• Strong association in probiotic type products—a belief that digestive health is achieved via dairy (with something added to it)

• Allergies and intolerances

• Allergies are a growing concern, particularly for children

• – Significant buying influence on young families

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Consumer and industry trends strongly favour growth of a2™ brand products

 a2™ brand products respond Consumer directly to the increasing global focus on focus on digestive health, health and allergies and intolerances wellbeing

 a2™ brand milk is a differentiated Scope for and innovative product innovation in  Able to command and maintain a commoditised markets premium price position

• a2™ brand niche shares can deliver significant revenues given the large size of the markets

Global milk deliver significant revenues given market the large size of the markets exceeds US$120bn  A2C can directly access high Asia is the growth Asian dairy markets, major growth including infant formula market

 Target consumer is a high value shopper Retailer  a2™ brand milk delivers attractive margin benefit margin to retailers

 Premium prices paid by A2C to A2 farmers at farmgate (without Dairy farmers additional costs to farmers) benefit

 Ability to transition A2C into Other dairy cheese, yoghurt and ice cream categories are  US$272bn potential market and large and high growing at c.5.0% p.a.[(1) ] growth  Industry consolidation creates the Global opportunity to partner with strong partnership local players in key global opportunities markets

Note:

1. Euromonitor (2011), forecast CAGR 2011-2016

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3 A2 science and IP

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What is a2™ brand milk?

• a2™ brand milk is naturally produced cow’s milk, not a product of genetic engineering

• Comparable in composition to conventional cow’s milk, however the beta casein protein component differentiates a2™ from other milk

• As a result of natural genetic variation, beta casein may be present as one of two primary variant types, A1 or A2 in all cows milk

• A2 is recognised as being the original or ancestor beta casein gene in modern cattle

• Originally all domesticated cows produced milk containing only the A2 type of beta casein

• a2™ brand milk contains only the original A2 form of the protein beta casein

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

• Anecdotal and consumer reports link a2™ brand milk with improved digestive comfort relative to A1 beta casein containing milk (in addition to other benefits relating to adverse milk responses)

• “..one in four American adults say they experience physical discomfort (lactose intolerance symptoms) after consuming dairy products, and 61 per cent of these people, representative of 15 per cent of American adults ages 15 to 70, say they do not drink milk”[(1) ]

• There is a deep and growing body of science supporting these health benefits

Note:

1. Milk Opportunities Study, Phase I General Population (March 25, 2009)

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The science of a2™ brand milk

Key Difference of A1 vs. A2 Health Effects A1 and A2 Definitive Science Definitive Science Growing Body of Scientific Research A1 Release of • Potential for BCM-7 to interact with a range of tissues and c.70% of cows produce established impart biological effects on some individuals leading to: A1 variant of the beta exorphin BCM-7 - Digestive and Immune dysfunction casein protein in their during digestion - Increased risk of Heart Disease milk owing to difference in structure - Increased risk of Type 1 Diabetes (Different in structure to - Symptoms of Neurological Conditions (ASD) A2 owing to one amino (exorphins are acid) food/environment • Supported by wide ranging and growing lines of research: derived molecules Epidemiology; animal feeding trials; human studies; and studies on A1 derived BCM-7 that bind opiate receptors) A2 No release of BCM• No known or potential issues c.30% of cows produce 7 during digestion A2 and not A1 in milk • Protein fragments released from A2 associated with positive health effects (Original beta casein protein. More comparable to every other mammalian beta casein)

Consumer Testimonials Fact Consumers report various adverse responses and health effects when drinking standard milk containing A1 beta casein

Consumers report health issues are not present when drinking milk containing only A2 type of beta casein

14

A2C’s intellectual property—a strong and growing suite of rights

• A2C’s Intellectual Property (“IP”) includes patents, trade marks and trade names (“brands”), proprietary processes and know-how that is codified in the A2 System©

• The IP has been subjected to an independent legal review which concluded that the portfolio is strong and well balanced to deliver commercial value in both the short and long term:

• “ A2C’s intellectual property is balanced across a variety of rights, with strength throughout the supply chain. Chain of title and rights are well documented, allowing a solid basis for exploitation and enforcement” Simpson Grierson

• The strength of A2C’s intellectual capital will increasingly be driven by brand and know-how, in addition to patents

• A2C has rights to seven families of patents and patent applications in various combinations

• Ongoing R&D is continuing to enhance the scope and duration of existing patent rights

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Animal Testing /
Therapeutic Herd
Uses
Management
A2 Name /
Milk Testing
Brands
A2 milk
Milk and
Enforcement
Product
Capability
Composition
Quality Control A2 Know-How
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Patent and / or trade mark registrations or pending
applications
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15

A2C owns rights to seven families of patents across key global markets

Genotyping, herd formation and use

Phenotyping and use

Family	Patent Title(s)	Expiry(1)	Territories
1	- Food Product and Process - Bovine Genotype Testing for Beta-caseins - Breeding and Milking Cows for Milk Free of Beta Casein 1	9 May 2016	Australia, Canada, Denmark, Finland, France, Germany, Switzerland, The Netherlands, Ireland, UK, NZ, USA
4	- Animal Genotyping Method	23 May 2023	Australia, Canada, China, Hong Kong, India, Japan, NZ, Singapore, South Korea, USA, Vietnam
2	- Method of Selection(2) - Non-diabetogenic Milk or Milk Products and Milk or Milk Products so Selected(2)	3 Nov 2015	Australia, Canada, UK, The Netherlands, Ireland, Finland, NZ, Norway, USA

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Note:
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1. Earliest expiry date indicated. The actual date will vary between territories 2. Jointly owned patent

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A2C owns rights to seven families of patents across key global markets

Use and compositions	Family	Patent Title(s)	Expiry(1)	Territories
	3	- Prophylactic dietary supplement based on Milk	29 June 2020	Australia, China, New Zealand
	5	- Method for Altering Fatty Acid Composition of Milk	3 July 2023	Australia, China,Canada, Europe, Hong Kong,India, Japan, NZ, Singapore, South Korea, USA,Vietnam
	6	- Therapeutic Use of Beta Casein A2 and Dietary Supplement Containing Beta Casein A2	3 October 2023	Canada, China, India, Japan, NZ, Singapore, South Korea, Vietnam, UK, The Netherlands, Switzerland, Sweden, Spain, Italy, Ireland
	7	- Beta casein and Methods of Use	Up to 29 May 2033	All Patent Convention territories currently nominated.

Note:

1. Earliest expiry date indicated. The actual date will vary between territories Italics = Territories where the patent application is still pending

17

4 Current A2 Corporation capabilities

18

A2C’s current global infrastructure

Australia / NZ

Europe

Americas

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Certified Animal Testing Labs Certified Milk Testing Labs Certified Milk Supply 3[rd] Party Processing A2C Processing Plant

Offices (including JV) Head Office

19

Australian dairy supply chain model is a template for other markets

		Proprietary processes
Proprietary		Supply contract restrictions	Protects A2C’s position as provider of A2 milk
		Ownership of testing outcomes
		Experience and know-how
Highest Quality	 	Quality assurance procedures Farmer selection procedures	Delivers highest quality products known for freshness,
		Farmer incentives for overall milk quality	taste consistency and longevity
		Distribution capability (e.g. direct to distribution centres)
		Attractive farmer proposition	Provides scalability on low cost,
Scalable		Established and efficient practices / procedures	efficient and capital light basis
	 	Management of supply / demand “Plentiful” supply of A2 cows	(demonstrated in Australia and being applied in the UK)

• Attractive farmer proposition

• Established and efficient practices / procedures  Management of supply / demand  “Plentiful” supply of A2 cows  Economic proposition (testing)  Ability to leverage existing infrastructure

20

A2C senior management — substantial FMCG and dairy industry experience

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Managing Director & CEO
Geoffrey Babidge
25 years as FMCG chief executive
Chief Financial Officer
Sarah Kolkman
15 years in senior FMCG finance roles
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A2 Milk (UK) CEO
Sean Uprichard
Senior FMCG sales & marketing
executive
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Chief Scientific Officer Dr Andrew Clarke 10 years managing A2C R&D and IP

GM Infant Nutrition, Operations Simon Hennessy Experienced operational executive

Chief Supply Chain Officer Shareef Khan 13 years in senior supply chain roles

CEO Australia/NZ Peter Nathan Senior FMCG sales & marketing executive

China Market Manager Xu (Joseph) Pengqi Former General Manager CSF

21

5 Strategic review outcomes

22

Strategic review confirms A2C is well-positioned for growth

• Further developing the strong suite of intellectual property and the uniqueness of a2™ brand dairy products

• Further growing the Australia and New Zealand fresh milk businesses by investing in additional processing capability in Australia and extending the Australian sales and marketing model into New Zealand

• Accelerating investment in the UK fresh milk market now that the Robert Wiseman JV is established

• Accelerating investment in the large and rapidly growing China infant formula market now that the China State Farm distribution arrangement is established

• Entering new international markets with an immediate focus on North America and specific countries in Europe

• Entering new categories, with UHT milk and Yoghurt the immediate focus

• Financial and human resources are considered appropriate to support the strategic agenda

23

a2™ brand milk is the fastest growing and largest brand in the Australian premium segment

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% Share of Fresh Milk (Latest Quarter—by value)
% Market Share
Sep-2011 Sep-2012 % Growth
46.3%
7.0
6.4
6.0
5.0
4.3 15.0%
(5.3%)
4.0
15.4%
(16.7%) 25.0%
3.0
2.3
2.0
1.9
2.0 1.8
1.0
0.9
1.0
0.6
0.5 0.5
0.4
0.0
A2 Lactose Free Organic Plant Sterol Goatmilk Fresh Soy
Source: Aztec Scan Data (week ending 2/9/12)
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a2™ milk is now a c.A$50m brand in Australia

• A2C has generated significant and sustained growth over the last three years with effectively no change in wholesale price

• Commissioned a state of the art modular processing facility in NSW to support growth

Quarterly Gross Sales of a2™ Brand Fresh Milk in Australia (FY08–FY12) (A$’000)

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15,387
12,358
11,259 [11,655]
10,053
8,466 8,373 8,512
7,641
6,353 6,520 6,640
5,338
4,216 4,200 4,122
3,644
2,802 2,871
1,668
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2008 2008 2009 2009 2010 2010 2011 2011 2012 2012
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a2™ brand positioned at a premium in Australia

• Since inception, a2™ brand milk has retailed at the top end of branded milks, and from early 2011 has been at a c.150% premium over generic milks

• Despite the 2011 grocery-led “price-war” which saw most of its branded competitors reduce prices, A2C retail prices remained broadly unchanged while still enjoying strong growth in sales

Fresh Milk Shelf Price (Coles)[(1) ]

Retail Sales Growth (Latest Quarter)

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Coles Shelf
Price of 2L A2 Homebrand Paul's Dairy Farmers
Full and Lite
Cream Milk
5.00
4.00
3.00
2.00
26 Jan 2011: Coles initiates "price war" by
reducing homebrand milk to $1/L
1.00
Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12
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60.0%
52.4%
50.0%
40.0%
30.0%
20.0%
10.9%
10.0%
1.8%
0.0%
(10.0)% (6.2)% (3.3)%
(10.0)%
(20.0)%
Total A2 Total Rev Total Total Dairy Total Total Pura
Brand Brand Pauls Farmers PhysiCAL Brand
Brand Brand Brand
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Source: Aztec Scan data (June 2012) Note:

Source: Aztec National Scan data (week ending 2/9/2012)

1. For A2C Full and Light Cream milk

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Current trends and strategy suggest value share of at least 10% of Australian grocery is achievable

Australia Growth Strategy

Media and Marketing

Distribution

• Increased investment in • Plan launch in the “route media and marketing trade” through distribution

• • Maintain spend at c.6% of partnerships

• Maintain spend at c.6% of strongly growing sales

• Expand SKU count

• Maintain high consumer engagement through creative excellence

• Broaden non-chain distribution

Health Care

• Health Care Professional recommendation through an expansion of the effective HCP programme

Processing Facilities

• Additional processing capability to cater for rising domestic demand and effectively manage the supply chain

Operational Improvement

New Products

• Evaluate market potential for launch of other dairy products

• Margin enhancement in existing plants due to volume expansion

• •

• Options to reduce freight to Enhance yoghurt offering WA

Source: Management Forecasts

27

Commoditisation of the UK milk market has created a need for innovation to restore profitability for participants

• Competitive pricing pressures have driven conventional milk margins to unprofitably low levels for most producers

UK Fresh Milk Prices

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£ per litre 4 Pints 6 Pints
0.70
0.65
0.60
0.55
0.50
0.45
0.40
Source: Nielsen Scantrack, £ per litre (Rolling 4 weeks)
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UK business model

• In November 2011, A2C established a Sales and Marketing JV with Robert Wiseman Dairies in the United Kingdom and Ireland

• Launch of a2™ brand milk into the UK underway, with three major supermarket chains listing a2™ brand milk in approximately 700 outlets nationwide (Tesco, Morrisons and Budgens)

• Performance expected to follow Australian experience – a ‘slow build’ driven by effective consumer marketing, engagement with health care professionals and broadening distribution

• Opportunity exists to expand the product portfolio in the UK and Europe

Robert Wiseman

• UK’s largest and most efficient liquid milk processor

• Provides over 30% of fresh milk delivered to every postcode in Britain

• Annual sales of c.£950m

• Substantial investment in plant equipment over the past decade

• Subsidiary of Müller which has 5,400 employees

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50%
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50%
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Initial Equity
contribution of
£4m, split 50/50
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A2 Milk UK JV
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Provides intellectual property,
know-how and marketing
services
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• Provides processing, distribution, sales and associated support services

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UK creative direction

Before

• “I’ve been dairy

• intolerant for years” Jessica, 29, Manchester

• “I thought it was soya milk or nothing”

• Jerome, 34, Brighton

• “Tummy cramps were a constant pain” Sam, 32, Cardiff

• “Daily discomfort was really getting to me” Emma, 38, London

‘My children’s eczema was terrible” Faisal, 40, London

“My diabetes was a constant worry” Kate, 25, Edinburgh

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After

• “At last an answer to my problems!” Jessica, 29, Manchester

“Dairy tastes great again” Jerome, 34, Brighton

• “No more bloated tum!”

• Sam, 32, Cardiff

• “Thank you for giving me my life back”

• Emma, 38, London

‘They are like different kids” Faisal, 40, London

“After a month I was feeling 100%” Kate, 25, Edinburgh

• Initial brand position will be largely similar to that originally in Australia, tailored as appropriate for the UK market

• Key positioning as “The Natural Answer” (as compared to “Feel the Difference”), supported by market research

• Clear communication of the a2™ product benefit (the natural answer to A1 milk intolerance) and the a2™ product health benefits (expressed through testimonials)

The Natural Answer

Source : Sample testimonials

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China business model

• A2C will source shelf-ready packaged, 100% New Zealand a2™ brand infant formula and sell FOB to its distribution partner in China, who will then on-sell to 3rd party distributors and retailers

• A2C has secured New Zealand supply through a manufacturing agreement with Synlait (NZ)

• A2C has appointed China State Farm (“CSF”), a leading Chinese SOE, which has the local relationships and financial resources to build distribution and market premium priced a2™ brand infant formula to major cities in Greater China (including Hong Kong and Macau)

Business Model

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A2 cows milk sourced from A2C’s suppliers in New Zealand

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Infant formula manufacturing agreement with Synlait in New Zealand

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A2C to sell 100% New Zealand made infant formula to CSF

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CSF to distribute to 3[rd] party distributors and retailers in Greater China Marketing spend to be jointly managed

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Expected roll-out of a2™ infant formula in China

• A2C, together with its distribution partner, plans to progressively roll-out the a2[™] infant formula product across c.45 Tier 1 and 2 cities in the Greater China region (including Hong Kong and Macau)

China—Indicative Roll-out of Distribution

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CSF advised that a2™ branded infant formula was the only unique infant formula product offering at the July 2012 Child Baby Maternity Exhibition in Shanghai

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Tier 1
Tier 2
Harbin
Urumqi
Changchun
Hohhot Shenyang
Beijing
Tianjin Dalian
Xining Yinchuan Shijiazhuang
Taiyuan Jinan
Lanzhou Qingdao
Xi’an Zhengzhou
Nanjing Wenzhou
Hefei Nantong
Lhasa Chengdu Shanghai
Wuhan Wuxi Suzhou
Chongqing Ningbo
Hangzhou
Nanchang
Changsha
Fuzhou
Guiyang
Kunming Xiamen
Nanning
Guangzhou Dongguan
Shenzhen
Zhanjiang
Haikou
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New markets for the a2™ brand

A2C’s Key Market Selection Criteria

White milk market Per capita milk Existing top end in Health conscious / size consumption the market intolerances Perceived Likely entry cost / Cost effective A2C IP registered regulatory speed of return distribution options environment

Tier 1 Tier 2 Tier 3 USA Spain Japan China Italy India UK France Mexico Germany Korea Canada Brazil

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New categories for the a2™ brand

• The high growth UHT and Yoghurt categories have been identified as attractive opportunities for the a2™ brand

• Other potential products include dietary supplements, cheese and milk powders

Yoghurt UHT Target Markets Global growth potential with a number of potential target markets Chinese market for UHT milk is c.US$8bn with demand growing rapidly – Discussions with Chinese distributors are currently underway Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups China France Germany Spain Australia(2) France Germany Spain UK USA	Yoghurt UHT Target Markets Global growth potential with a number of potential target markets Chinese market for UHT milk is c.US$8bn with demand growing rapidly – Discussions with Chinese distributors are currently underway Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups China France Germany Spain Australia(2) France Germany Spain UK USA	Yoghurt UHT Target Markets Global growth potential with a number of potential target markets Chinese market for UHT milk is c.US$8bn with demand growing rapidly – Discussions with Chinese distributors are currently underway Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups China France Germany Spain Australia(2) France Germany Spain UK USA	Yoghurt UHT Target Markets Global growth potential with a number of potential target markets Chinese market for UHT milk is c.US$8bn with demand growing rapidly – Discussions with Chinese distributors are currently underway Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups China France Germany Spain Australia(2) France Germany Spain UK USA	Yoghurt UHT Target Markets Global growth potential with a number of potential target markets Chinese market for UHT milk is c.US$8bn with demand growing rapidly – Discussions with Chinese distributors are currently underway Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups China France Germany Spain Australia(2) France Germany Spain UK USA	Yoghurt UHT Target Markets Global growth potential with a number of potential target markets Chinese market for UHT milk is c.US$8bn with demand growing rapidly – Discussions with Chinese distributors are currently underway Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups China France Germany Spain Australia(2) France Germany Spain UK USA
	Yoghurt		Target markets have a combined market size c.US$20bn(1) The fastest growing segments are those that offer functional benefits Strategic agenda would likely leverage licensing arrangements with international groups		Australia(2) France Germany Spain UK USA

Note:

1. Euromonitor (2011)

2. A2C has a non-exclusive licence and supply agreement with Jalna Dairy Foods to manufacture, market and sell a range of A2 branded yoghurts in Australia

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6 Summary

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Summary

• There is an increasing consumer focus on heath and wellbeing which strongly favours a2[TM] brand dairy products

• Large global drinking milk markets exceed US$120bn with scope for innovation in mature, commoditised markets

• A2C can directly access high growth Asian dairy markets, including infant formula and UHT

• A2C has a strong suite of global intellectual property supported by a growing body of knowhow and developing brand equity

• A2C’s proven Australian dairy supply chain model provides a scalable technical & commercial template for other markets

• The strategic review confirms that A2C’s capital light, partnership focused model will facilitate the Company’s global expansion into new dairy markets and categories

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Feel the Difference™

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