New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Fonterra Shareholders Fund / Equity Bottom-Up

<ul><li>Fonterra reported a strong 1H25 result, with earnings exceeding expectations and a higher interim dividend of NZ22cps compared to the forecast of NZ20cps.</li><li>The company's Ingredients gross profit saw stronger margins, while Consumer margins remained resilient despite high milk prices.</li><li>Free cash flow was notably weak at approximately -NZ$2.1bn, due in part to stronger farmer advanced payment rates.</li></ul>

Fonterra reported a strong 1H25 result, with earnings exceeding expectations and a higher interim dividend of NZ22cps compared to the forecast of NZ20cps.The company's Ingredients gross profit saw stronger margins, while Consumer margins remained resilient despite high milk prices.Free cash flow was notably weak at approximately -NZ$2.1bn, due in part to stronger farmer advanced payment rates.

Fonterra: 1H25 Result – Initial Impressions