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 has this morning provided a material upgrade to FY23 earnings, with EPS guidance lifted ~+40% at the mid-point to NZ52.5cps from NZ37.5cps</li><li>Fonterra has provided a wide guidance range (NZ45-60cps) but the mid-point is significantly ahead of both our and consensus expectations</li><li>The upgrade is primarily driven by 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 a material upgrade to FY23 earnings, with EPS guidance lifted ~+40% at the mid-point to NZ52.5cps from NZ37.5cpsFonterra has provided a wide guidance range (NZ45-60cps) but the mid-point is significantly ahead of both our and consensus expectationsThe upgrade is primarily driven by 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 Shareholders Fund

Fonterra: Material FY23 Earnings Upgrade