Synlait Publishes FY21 Result; Appoints CEO

Synlait Milk Limited (Synlait) today published its financial result for the 12 months ended 31 July 2021. Please find the following materials attached: 1. Synlait FY21 Annual Report 2. Synlait FY21 Investor Presentation 3. Synlait FY21 Media Release 4. NZX Results Template Key financial highlights: o Revenue up 5% to $1,367.3 million. o EBITDA down 78% to $37.3 million. o NPAT down 138% to ($28.5) million. o Nutritionals sales down 35% to 34,362 MT. o Ingredient sales up 29% to 125,914 MT. o Dairyworks revenue was $229 million. Final 2020/2021 total average milk price of $7.82 per kgMS: The total average milk payment for the 2020/2021 season is $7.82 per kgMS. This is made up of a base milk price of $7.55 per kgMS and $0.27 of incentives (including Lead With Pride(TM)). This is the second highest milk price Synlait has paid and is a result of strong and consistent demand for dairy products, especially from Southeast Asia. Strong demand continues for dairy and has resulted in our forecast milk price remaining at $8.00 per kgMS for the current 2021/2022 season. FY22 guidance statement: Synlait expects its Net Profit After Tax result to return to robust profitability in FY22 based on: o a return to normal trading conditions and tighter management of its Ingredient business; o improved infant base powder volumes; o a growing contribution from its Liquids and Consumer Foods business units; and o targeted and significant cost savings from Synlait, Dairyworks and Talbot Forest Cheese. FY22 will also include a one-off gain on sale of approximately $17 million from the sale and leaseback of the land and building at Synlait Auckland. Synlait's performance will build into FY23 as its new multinational customer at Synlait Pokeno ramps up, and its Liquids and Consumer Foods businesses continue to grow. Planned reductions in inventory at Synlait and Dairyworks will generate operating cashflows in excess of earnings. These strong cashflows will enable Synlait to complete its capital expenditure programme and reduce debt to comfortable levels over the next two years. By the end of FY23, the recovery plan will have seen Synlait return to similar levels of profitability, operating cash flows, and debt ratios as the years leading into FY21. Conference call details: Synlait CEO John Penno and CFO Rob Stowell will hold a briefing on the result at 11.00am NZDT / 8.00am AEST time today. Participants can register for the briefing at: https://s1.c-conf.com/DiamondPass/10014713-dj95s2.html For further information please contact: Hannah Lynch Corporate Affairs Manager P: +64 21 252 8990 E: hannah.lynch@synlait.com End CA:00379820 For:SML Type:FLLYR Time:2021-09-27 08:30:39