Results Highlights
• Forecast Farmgate Milk Price $6.55 per kgMS
• Interim dividend of 10 cents per share – to be paid in April
• Full year forecast dividend range 25 – 35 cents per share
• Total forecast cash payout $6.80 – $6.90
• Revenue $9.8 billion, up 6% from the 2017 interim results
• Normalised EBIT $458 million*, down 25% from the 2017 interim results
• Beingmate investment impairment $405 million
• Normalised Net profit after tax (NPAT) $248 million*, down 36% from the 2017 interim results
• NPAT $348 million loss, down 183% from the 2017 interim results
• Normalised interim earnings per share 15 cents*
• Ingredients normalised EBIT $558 million*, up 9% from the 2017 interim results
• Consumer and Foodservice normalised EBIT $193 million*, down 38% from the 2017 interim

* Non-GAAP measures. Information on the non-GAAP financial information used by Fonterra are found at the
end of this document.

Forecast cash payout
Fonterra Co-operative Group Limited today increased its forecast Farmgate Milk Price for the
2017/18 season to $6.55 per kgMS and announced a full year forecast dividend range of 25 – 35
cents per share with an interim dividend of 10 cents per share.

Chairman John Wilson says the ongoing strong global demand for dairy and stable global supply
are continuing to support global prices, particularly for the important Whole Milk Powder category.
“Farmers will welcome a forecast cash payout of $6.80 – $6.90, which would be the third highest in
the last decade. This is also good news for New Zealand as it represents around $10 billion flowing
into the country’s economy. However, we are very aware of the challenges many of our farmers are
facing this season with difficult weather conditions impacting production.

“While the global supply and demand picture remains positive and we expect prices to stay around
current levels, we will be watching for any impact on market sentiment as spring production
volumes build in Europe,” he added.

Fonterra’s Greater China business continues to perform well overall but the Co-operative has reassessed
the value of its Beingmate investment so that it reflects a fair value at this point in time.

Commenting on this decision, Mr Wilson says the Board has assessed the carrying value of
Beingmate at $244 million and therefore taken an impairment of $405 million.

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