New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Thematic (Sector/Industry)

<ul><li>The Forsyth Barr Dairy Digest provides a snapshot of information relevant to New Zealand's dairy sector.</li><li>We include forecasts on the Farmgate Milk Price (FGMP), dairy production, on-farm costs and farm prices with supplementary information on lending, confidence, emissions, the infant formula market and our global analysis of the dairy industry. </li><li>This edition highlights that times are tough for farmers with volatile prices, subdued Chinese demand, and elevated operating and interest costs are pressuring on-farm profitability.</li></ul>

The Forsyth Barr Dairy Digest provides a snapshot of information relevant to New Zealand's dairy sector.We include forecasts on the Farmgate Milk Price (FGMP), dairy production, on-farm costs and farm prices with supplementary information on lending, confidence, emissions, the infant formula market and our global analysis of the dairy industry. This edition highlights that times are tough for farmers with volatile prices, subdued Chinese demand, and elevated operating and interest costs are pressuring on-farm profitability.

Forsyth Barr Dairy Digest - Edition 2 Cashflow Constraints

Equity Bottom-Up

Fonterra Shareholders Fund / Equity Bottom-Up

<ul><li>Fonterra has upgraded its FY23 earnings guidance for the fifth time.</li><li>Details are light but it expects EPS to be "at the top end" of its prior NZ65cps to NZ80cps range, well ahead of consensus expectations for what will be record earnings (prior high of NZ60cps in FY11).</li><li>The driver of the upgrade is favourable Ingredients margins (ongoing favourable product pricing relativities between reference and non-reference commodity products).</li></ul>

Fonterra has upgraded its FY23 earnings guidance for the fifth time.Details are light but it expects EPS to be "at the top end" of its prior NZ65cps to NZ80cps range, well ahead of consensus expectations for what will be record earnings (prior high of NZ60cps in FY11).The driver of the upgrade is favourable Ingredients margins (ongoing favourable product pricing relativities between reference and non-reference commodity products).

<ul><li>Fonterra has this morning provided another upgrade to FY23 earnings, with EPS guidance lifted ~+12% at the mid-point to NZ72.5cps from NZ65cps</li><li>The guidance range remains wide (NZ65-80cps) but the mid-point is ahead of both our (NZ67cps) and consensus (NZ67cps) expectations</li><li>The upgrade is consistent with trends experienced over the past 12 months and is primarily driven by the ongoing favourable product pricing relativities between reference and non-reference commodity products, and therefore is more one-off than a sustainable feature for future periods</li></ul>

Fonterra has this morning provided another upgrade to FY23 earnings, with EPS guidance lifted ~+12% at the mid-point to NZ72.5cps from NZ65cpsThe guidance range remains wide (NZ65-80cps) but the mid-point is ahead of both our (NZ67cps) and consensus (NZ67cps) expectationsThe upgrade is consistent with trends experienced over the past 12 months and is primarily driven by the ongoing favourable product pricing relativities between reference and non-reference commodity products, and therefore is more one-off than a sustainable feature for future periods

Fonterra: Q3 Business Update – Another FY23 Earnings Upgrade

<ul><li>FY23 is set to be a record year for Fonterra: 1H23 was a stellar period for Fonterra</li><li>Capital management initiatives confirmed — NZ$800m tax-free capital return in late CY23</li><li>Capital structure implementation process is nearly over</li></ul>

FY23 is set to be a record year for Fonterra: 1H23 was a stellar period for FonterraCapital management initiatives confirmed — NZ$800m tax-free capital return in late CY23Capital structure implementation process is nearly over

<ul><li>Fonterra reported a strong underlying 1H23 result.</li><li>The result was slightly below our expectations, with EPS of NZ33cps versus FB of NZ36cps, however when normalising for impairments included in Fonterra’s normalised numbers we view this as a strong operational result</li><li>Fonterra has announced a NZ$800m capital return following its recent Chile and Brazil sales (asset divestment process is now complete pending the receipt of proceeds) which is expected to take place in October 2023</li></ul>

Fonterra reported a strong underlying 1H23 result.The result was slightly below our expectations, with EPS of NZ33cps versus FB of NZ36cps, however when normalising for impairments included in Fonterra’s normalised numbers we view this as a strong operational resultFonterra has announced a NZ$800m capital return following its recent Chile and Brazil sales (asset divestment process is now complete pending the receipt of proceeds) which is expected to take place in October 2023

Fonterra: 1H23 Result – Initial Impressions

New Zealand

Fonterra Cooperative Group Ltd is a New Zealand multinational dairy co-operative and its farmer shareholders are the suppliers of milk to Fonterra in New Zealand. The Company operates Fonterra Shareholders' Fund, which provides additional financial flexibility for farmer shareholders who would have the opportunity to sell economic rights of shares to the fund.

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Fonterra Shareholders Fund (FSF NZ)

Forsyth Barr Dairy Digest - Edition 2 Cashflow Constraints

The Forsyth Barr Dairy Digest provides a snapshot of information relevant to New Zealand's dairy sector. We include forecasts on the Farmgate Milk...

Forsyth Barr

Fonterra - Upgrade-Ja Vu

The driver of the upgrade is favourable Ingredients margins (ongoing favourable product pricing relativities between reference and non-reference...

Forsyth Barr

Fonterra: Q3 Business Update – Another FY23 Earnings Upgrade

Fonterra has this morning provided another upgrade to FY23 earnings, with EPS guidance lifted ~+12% at the mid-point to NZ72.5cps from NZ65cps; The...

Forsyth Barr

Fonterra: 1H23 Result — Milking It

Fonterra's 1H23 result was a record interim earnings performance with EPS of NZ37cps; The key area of strength was its Ingredients division, driven...

Forsyth Barr

Fonterra: 1H23 Result – Initial Impressions

Fonterra reported a strong underlying 1H23 result - the result was slightly below our expectations, with EPS of NZ33cps versus FB of NZ36cps,...

Forsyth Barr

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