#1Fonterra Interim Results 2022 17 March 2022#22022 Interim Results Fonterra Dairy for life 2021/22 forecast Farmgate Milk Price $9.30 – $9.90 per kgMS Profit after tax¹ $364 million Interim Dividend 5c per share $27m² Forecast normalised earnings per share³ 25-35c • Performing well, and creating the momentum needed to achieve our 2030 targets • Record forecast milk price reflects strong demand at a time of constrained global supply • Inflationary pressures both on-farm and in our operations . • COVID-19 remains a challenge, but we continue to deliver for our shareholders and customers • Solid first half earnings and confirm full year forecast earnings range 1. Total Group figures are for the six months ended 31 January 2022. This includes continuing and discontinued operations, and includes amounts attributable to non-controlling interests 23 Relative to reported profit after tax in the first six months of FY21 Attributable to equity holders of the Co-operative, excludes amounts attributable to non-controlling interests 2#3Strong demand for dairy reflected in prices Monthly price of reference products on GDT (US$/MT) 2020/2021 Season 4,000 3,000 31 May 20 30 Nov 20 31 May 21 Reference and non-reference price relativities on GDT 2021/2022 Season (US$/MT) H1 FY21 H2 FY21 H1 FY22 4,000 3,000 31 Jan 22 31 Jul 20 " Reference product shipment price 2020/2021 Season Reference product shipment price 2021/2022 Season ' Operating with significant increase in dairy prices due to strong demand and constrained supply • Average GDT WMP shipment prices in H1 were 28% higher than H1 prior year Source: GlobalDairy Trade 2. 1. The shipment price is a weighted average price of GDT contracts struck 1 to 5 months prior to the agreed shipment month. Shipment month is the month in which the sale would be deemed for financial reporting purposes to have been completed, and will normally be the month in which the sale is invoiced and the product is shipped 3. Fonterra Dairy for life 31 Jul 21 31 Jan 22 31 Jan 21 Non-reference product shipment price Reference product shipment price > • Price relativities improved in Q2 relative to Q1 Price relativities up from prior year's Q4, but less favourable than H1 last year Reference product shipment price is represented by a weighted average of the WMP, SMP, AMF and Butter prices achieved on GDT Non-reference product shipment price is represented by the cheddar prices achieved on GDT 3#4Progress in our New Zealand Operations Fonterra Dairy for life Improved planning and farm pick-up efficiencies have partially offset rising collection costs, due to our on-farm milk vat monitoring systems Enhanced milk utilisation and plant uptime has been supported by proactive asset care and people capability programmes, despite the disruption of site and shift bubbles to manage COVID-19 With only 38% of ships arriving on time in New Zealand, we are successfully minimising the impact to customers, through collaboration of our supply chain teams, including Kotahi 4#5Our people Continuing to look out for one another as we face into ongoing COVID-19 challenges Fonterra Dairy for life lite Weet-Bix Weet-Bi By caring for our people, and good management and planning, our end-to-end supply chain has continued to operate and we are getting products to our customers Each week, approximately 180,000 nutritious breakfasts are served to kiwi kids through our KickStart breakfast partnership with the Government and Sanitarium More than 3 million serves of dairy donated to families in need across Aotearoa since 2020 through our partnership with New Zealand Food Network Launched 'Adopt a Farm' to build stronger connections between Fonterra farmers and employees 5#6Solid performance with higher dairy prices Revenue 10.8 billion Gross margin 14.9% from Profit after tax¹ $364 million from from 9.9b Earnings per share² 22c 17.4% Interim dividend Net debt³ $391m 5c per share $5.6 bil billion from from 25c $6.1b Fonterra Dairy for life Note: Total Group figures for the six months ended 31 January 2022. This includes continuing and discontinued operations 1. Reported basis. Includes amounts attributable to non-controlling interests 2. Normalised basis. Attributable to equity holders of the Co-operative, excludes amounts attributable to non-controlling interests 3. Adjusted net debt. Refer to Glossary for definition 6#7Total Group business performance Fonterra Dairy for life million Sales volume ('000 MT) Revenue ($) Cost of goods sold ($) Gross profit ($) Gross margin (%) 2021² 2022 %3 1,996 1,921 (4)% 9,915 10,797 9% (8,193) (9,190) (12)% 1,722 1,607 (7)% 17.4% 14.9% (1,055) (1,062) (1)% Operating expenses ($) Other ($) 17 62 265% Normalised EBIT ($) 684 607 (11)% Normalised profit after tax ($) 418 364 (13)% 25 22 (12)% Normalised EPS5 (cents) 1. Total Group figures for the six months ended 31 January. This includes continuing and discontinued operations and are on a normalised basis unless otherwise stated 2. 2021 performance includes Ying and Yutian China Farming hubs and China Farms joint venture, which were subsequently sold • Increased revenue from higher product prices, but partially offset by lower sales volume, mainly due to lower milk production • Gross margin decreased due to significant increase in cost of goods sold, reflecting higher cost of milk ● • Gross profit and normalised EBIT reflects a diversified portfolio: o Improved margins in our Ingredients channel, particularly in the protein portfolio o Pressure in Consumer in some markets, significantly tighter margins in Foodservice across all regions Normalised profit after tax is down $54 million, due to lower earnings partially offset by favourable interest expense 3. Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures 4. Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees 5. Attributable to equity holders of the Co-operative, excludes amounts attributable to non-controlling interests 7#8Diversified across markets and products Asia Pacific AMENA Greater China Total Volume ('000 MT)¹ 635 631 568 1,834 6% 1% 4% 3% EBIT contribution¹‚² Ingredients $85m $20m Foodservice $(4)m $56m Consumer $77m $42m Total $158m $78m Note: Figures are for the six months ended 31 January 2022 $184m $44m $0m $8m $66m $14m $250m $50m $144m $53m $413m Fonterra Dairy for life EBIT by Quarter¹,2 284 200 129 96 90 (1) $117m =4 160 94 $89m $105m $85m $3m $6m $236m $58m $169m 109 71 $146m 97 97 18 27 58 87 88 23 23 20 67 79 12 $34m Q1 Q2 Q3 Q4 Q1 Q2 FY21 FY22 1. Prepared on a normalised continuing operations basis. Normalised EBIT contributions sum to $644 million, and does not align to reported continuing operations due to excluding unallocated costs and eliminations 2. Inclusive of Group Operations' EBIT attribution. Comparative information includes re-presentations for consistency with the current period 8#9performance partially offset by tighter Ingredients' Foodservice margins Asia Pacific Fonterra Dairy for life 2021 EBIT Ingredients $65m Foodservice $52m Consumer $119m $236m 2022 EBIT Change $85m 31% $(4)m $77m (35)% Product channel EBIT ($m) $158m AMENA (33)% 500 Ingredients $140m 450 $184m 31% 400 Foodservice $8m (100)% 350 Consumer $52m $66m 27% 300 $200m $250m 25% 250 Greater China 200 Ingredients $91m $144m 58% 150 Foodservice $194m $89m (54)% 100 Consumer $9m 50 $3m (67)% $294m $236m (20)% Eliminations¹ Total $(78)m $652m $(43)m 45% Ingredients $601m (8)% Note: Figures are for the six months ended 31 January and prepared on a normalised continuing operations basis. Comparative information includes re-presentations for consistency with the current period 1. Eliminations and unallocated costs Foodservice Consumer 9#10Financial discipline Net Debt¹² Gearing Ratio¹ (%) Fonterra Dairy for life 7.5 7.6 48.2 47.3 6.4 44.2 44.1 6.1 5.6 38.5 • Reduced net debt and leverage mainly due to • · retained earnings and cash proceeds from divestments in FY21 Net debt and gearing are higher at half year compared to full year due to seasonal profile of working capital Working capital days up reflecting the higher value of inventory held due to milk price, up by almost 30% on last year Operating expenditure tracking in line with last year 2018 2019 2020 2021 ■Net Debt ($ billion) 2022 2020 Working Capital 80 80 81 82 95 90 Note: Figures are for the six months ended 31 January except where otherwise stated Refer to Glossary for definition 1. 2. As at 31 January 3. On a Total Group and normalised basis 2018 2019 2020 2021 ■Working Capital Days 2021 2022 Half Year ■Full Year Operating Expenditure³ 1,263 1,232 1,092 1,055 1,062 2022 2018 2019 2020 2021 2022 ■Opex ($ million) 10#11Forecast 2021/22 Season Farmgate Milk Price Fonterra Dairy for life Forecast Farmgate Milk Price $9.30 -$9.90 per kgMS 2019/2020 Season 2020/2021 Season 2021/2022 Season Forecast (US$/MT) $9.60 4,000 • Reflects higher commodity prices at a time of strong demand and constrained global supply $7.54 $7.14 3,000 • Risks include commodity price volatility, and disruption of global markets and supply chain due to COVID-19 and geopolitical events 31 May 19 31 May 20 31 May 21 31 Jan 22 Reference product shipment price Farmgate Milk Price for the season Source: GlobalDairy Trade 1. The shipment price is a weighted average price of GDT contracts struck 1 to 5 months prior to the agreed shipment month. Shipment month is the month in which the sale would be deemed for financial reporting purposes to have been completed, and will normally be the month in which the sale is invoiced and the product is shipped 2. Reference product shipment price is represented by a weighted average of the WMP, SMP, AMF and Butter prices achieved on GDT 11#122022 earnings outlook Forecast Earnings 25-35c per share • Maintained current range: 。 Ingredients' pricing across the portfolio continues to support earnings Fonterra Dairy for life FY21 FY21 FY22 H1 H2 H1 FY22 H2 (US$/MT) 4,000 3,000 。 Pressure remains on Foodservice and Consumer margins due to higher input costs 31 Jul 20 Source: GlobalDairy Trade. Data is up to GDT event 301 on 1 February 2022 31 Jan 21 31 Jul 21 Reference product shipment price' Non-reference product shipment price¹,4 Reference product contract shipment price 31 Jan 22 30 May 22 -Non-reference product contract shipment price²,4 1. The shipment price is a weighted average price of GDT contracts struck 1 to 5 months prior to the agreed shipment month. Shipment month is the month in which the sale would be deemed for financial reporting purposes to have been completed, and will normally be the month in which the sale is invoiced and the product is shipped 2. The contracted shipment price is the weighted average shipment price of GDT contracts won 1 - 5 months prior on the GlobalDairyTrade platform. These contracts are yet to be shipped or invoiced and the weighted average price will change closer to the actual shipment date as new contracts are written 3. Reference product shipment price is represented by a weighted average of the WMP, SMP, AMF and Butter prices achieved on GDT 4. Non-reference product shipment price is represented by the cheddar prices achieved on GDT 12#13The value we're aiming to create by 2030 through our three strategic choices PERFORMANCE 100 INVESTMENT DISTRIBUTION OF FUNDS 40-50% EBIT increase from FY21 ~9-10% Return on capital Increase dividends to ~40-45 cents per share Aspiration to be Net zero by 2050 ~$1 billion in sustainability ~$1 billion moving more milk to higher value products -$160m per annum in R&D ~$1 billion Intended to be distributed to shareholders after asset sales ~$2 billion for mix of investment in further growth and return to shareholders Note: These targets are based on assumptions and risks that are set out in the Appendix to the booklet Our Path to 2030, including the assumption of an average Farmgate Milk Price for the decade of $6.50 - $7.50 per kgMS. We are aiming to achieve these targets and they should not be taken as forecasts or guarantees of returns. They are subject to successfully completing a number of business initiatives. 13#14Progress on our three strategic choices Focus on New Zealand Milk Gall Making progress on divestment of Chile and ownership review of Australia Work with Government to enable capital structure progressing well Driving demand for New Zealand milk in our markets Be a leader in Sustainability Kowbucha TM methane reduction trial continues to show promise and moves to next stage NZMP Organic Butter - carbonzero certified TM wins two innovation awards Be a leader in dairy Innovation & Science VitaKey collaboration to unlock benefits of probiotic strains ahead of schedule and scope expanded Anlene 5XTM, providing five key mobility benefits, launched in Malaysia, Philippines, Vietnam and Thailand 14#15Appendix 15#16Fonterra™ Dairy for life Sales Volume Normalised Revenue Normalised Gross Profit 2,003 2,075 2,037 1,996 10.4 10.8 1,921 9.8 9.7 9.9 1,659 1,668 1,722 1,489 1,607 2018 2019 2020 2021 2022 2018 Sales Volume ('000 MT) 2019 2020 2021 2022 ■Revenue ($ billion) 2018 2019 2020 2021 2022 ■Gross Profit ($ million) Key financial metrics for Total Group Normalised FY22 half year¹ OPEX Normalised EBIT 1,263 1,232 1,092 1,055 1,062 458 312 Reported EBIT 684 806 584 607 657 607 312 (176) 2018 2019 2020 2021 2022 2018 2019 ■ Opex ($ million) 2020 ■EBIT ($ million) 2021 2022 2018 2019 2020 2021 2022 ■EBIT ($ million) 1. Total Group figures for the six months ended 31 January. This includes continuing and discontinued operations, and are on a normalised basis unless stated otherwise 16#17Fonterra™ Dairy for life Normalised Profit After Tax² Reported Profit After Tax² Capital Expenditure³ 248 72 418 364 293 Key financial metrics for Total Group FY22 half year¹ 2018 2019 2020 2021 Normalised PAT ($ million) Gearing Ratio³,4 (348) 2022 2018 72 501 346 391 364 316 2019 2020 2021 2022 ■Reported PAT ($ million) 180 147 112 2018 2019 2020 2021 ■Capital Expenditure ($ million) 2022 Working Capital Free Cash Flow³ 95 90 51.2 52.5 80 81 82 48.2 47.3 44.1 2018 2019 2020 2021 2022 ■Gearing Ratio (%) 369 (690) (782) 2018 2019 2020 2021 2022 ■Working Capital Days 2018 2019 2020 2021 ■Free Cash Flow ($ million) (632) (849) 2022 1. Total Group figures for the six months ended 31 January. This includes continuing and discontinued operations, and are on a normalised basis unless stated otherwise 2. Includes amounts attributable to non-controlling interests 3. Refer to Glossary for definition 4. The Group has changed the way it measures net debt. It calculates gearing ratio using the new adjusted net debt measure. Under the previous methodology the gearing ratio would be 41.4% 17#18Fonterra's New Zealand milk collections 90 90 80 60 Volume (m litres/day) 70 60 60 50 50 Fonterra Dairy for life Peak Day Milk • Fonterra's NZ season to date milk collection, June - February, was 1,160 million kgMS, 4.0% behind last season Cold and wet spring with limited sunshine affecting pasture growth and collections early in the season Very dry and warm conditions from the beginning of January have led to declining soil moisture and lack of feed in the North Island Collections in the second half of February were supported by more normal conditions. Full season forecast of 1,480 million kgMS, down 3.8% on last season 30 Season 30 Total Milk Solids (kgMS) 20 20 2019/20 1,517m (down 0.4%) 83m litres 2020/21 1,539m (up 1.5%) 83m litres 10 2021/22 1,480m (down 3.8%) 80m litres 0 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 40 40 1. Current full season forecast 18#19Reconciliation to Total Group EBIT 31 Jan 2021 31 Jan 2022 Fonterra Dairy for life Continuing Discontinued Continuing Discontinued NZD million Operations' Operations' Total Group Operations' Operations¹ Total Group Revenue 9,597 318 9,915 10.588 209 10,797 Cost of goods sold (7,946) (247) (8,193) (9,039) (151) (9,190) Gross profit 1,651 71 1,722 1,549 58 1,607 Gross margin 17.2% 22.3% 17.4% 14.6% 27.8% 14.9% Operating expenses (1,013) (42) (1,055) (1,011) (51) (1,062) Other² 14 3 17 63 (1) 62 Normalised EBIT 652 32 684 601 6 607 Normalisations (50) 23 (27) Reported EBIT 602 55 657 601 6 I CO 607 1. Refer to Note 1a and 2b of the FY22 Interim Financial Statements 2. Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees 19 19#20Earnings per share reconciliation NZD million 2021 2022 Reported profit after tax¹ 391 364 Less: Share attributable to non-controlling interests (19) (16) Reported profit after tax attributable to equity holders of the Co-operative 372 348 Reported earnings per share (cents)² 23 22 Normalised profit after tax¹ Less: Profit attributable to non-controlling interests Normalised profit after tax attributable to equity holders of the Co-operative Normalised earnings per share (cents)² Weighted average number of Co-operative shares ('000) 1. Includes amount attributable to non-controlling interests 2. Attributable to equity holders of the Co-operative 418 364 (19) (16) 399 348 25 22 1,612,857 1,613,358 Fonterra Dairy for life 20 20#21Fonterra™ Dairy for life Diversified Profile² Prudent Liquidity Bank Facilities Debt Capital Markets³3 NZD DCM Maturity Profile Maturity Profile 9% Drawn Facilities FY22 FY22 Bank Facilities 49% USD DCM $1.05bn FY23 FY23 15% 27% Diversified and prudent funding position' O CNY DCM 2% AUD DCM 11% EUR/GBP 14% FY24 FY24 FY25 FY25 FY26 FY26 FY27 FY27 FY28 FY28 FY29 FY29 Undrawn FY30 FY30 Facilities FY31 FY31 $2.86bn 73% 0.0 1.0 2.0 3.0 $ billion WATM4: 3.0 years 0.0 1.0 2.0 3.0 $ billion WATM4: 3.8 years 12 1. 2. As at 31 January 2022 and excludes amounts attributable to disposal groups held for sale Includes undrawn facilities and commercial paper. DCM is debt capital markets 34 Excluding commercial paper 4. Weighted average term to maturity (WATM) 21#22Operating expenses Fonterra Dairy for life Total Group normalised operating expenses increased $7 million: Increased investment in research & development o Increase in administration, and distribution & storage, including the impact of COVID-19 supply chain disruption o Increase in 'other' expenses reflects costs associated with discontinuing some products that are not aligned with our long-term strategy Unallocated costs favourable $63 million, mainly due to the release of a $44 million provision held at Group relating to the Holidays Act 2003 NZD million¹ 2021² 2022 Costs allocated to regions Selling & marketing (299) (305) Distribution & storage (265) (279) Administration expenses (296) (311) Research & development (34) (40) Other expenses (8) (28) Total allocated operating expenses (902) (963) Unallocated costs (111) (48) Total operating expenses (1,013) (1,011) Discontinued operations (42) (51) • Total Group operating expenses (1,055) 1,062) 1. Normalised basis. Does not align to FY22 Interim Financial Statements, predominately due to additional categories 2. $42 million of other expenses have been reclassified as administration expenses for consistency with the current period 22 22#23Unallocated costs¹ NZD million² 2021 2022 Farmer services (21) (21) Communication and community (8) (6) Fonterra Board & Co-operative (4) (3) Council Governance support (19) (18) • Group finance, property & support (21) (21) People & culture (3) (5) Other (35) 26 Total (111) (48) 1. Refer to Glossary for definition 2. Normalised basis. Comparative information has been re-presented for consistency with the current period Fonterra Dairy for life Unallocated costs are favourable $63 million predominantly due to 'Other' 'Other' is favourable $61 million, mainly due to the release of a $44 million provision held at Group following the conclusion of a judicial interpretation on the Holidays Act 2003 23 23#24Group performance by product channel Ingredients Volume ('000 MT) 1,030 From 1,096 Revenue ($ million) 6,898 From 6,016 Gross margin 11.1% From 10.6% Foodservice Volume ('000 MT) 266 From 260✰ Revenue ($ million) 1,685 From 1,569 ↑ Gross margin 15.0% From 25.2% Consumer Volume ('000 MT) 538 From 536 Revenue ($ million) 2,089 From 2,072 ↑ Gross margin 25.9% From 28.4% $ million 768 640 Gross profit 2021 2022 413 296 EBIT Fonterra Dairy for life 588 541 395 85 252 254 180 146 Gross profit EBIT Gross profit EBIT Note: Figures are for the six months ended 31 January. Does not add to Total Group as shown on a normalised continuing operations basis and excludes unallocated costs and eliminations. Comparative information includes re-presentations for consistency with the current period 24#25New Zealand sourced Ingredients product mix Fonterra Dairy for life 2021 2022 Sales Volume ('000 MT)'¹ Reference products 870 793 Non-reference products 419 415 Revenue¹ $ billion $ per MT $ billion $ per MT Reference products 4.2 4,784 4.7 5,916 Non-reference products 2.3 5,372 2.6 6,221 Cost of Milk Reference products 3.2 3,676 3.7 4,702 The average reference product sales price per metric tonne has increased 24%: WMP has been the significant contributor The average non-reference product sales price per metric tonne has increased 16%: o Casein and whey products have increased significantly Other products, such as cheese, that are typically more stable or have a non-spot pricing arrangement increased at a slower rate Non-reference products 1.4 3,294 1.7 4,144 Cost of milk increased 28% and 26% for reference products and non-reference products, respectively 1. Excludes bulk liquid milk. Bulk liquid milk for the six months ended 31 January 2022 was 34,000 MT of kgMS equivalent (the six months ended January 2021 was 36,000 MT of kgMS equivalent) Note: Figures represent Fonterra-sourced New Zealand milk only. Reference products are products used in the calculation of the Farmgate Milk Price - WMP, SMP, BMP, Butter and AMF. Milk solids used in the products sold were 441 million kgMS in reference products and 207 million kgMS non-reference products (previous comparative period 488 million kgMS reference products and 205 million non-reference products) 25#26New Zealand and Non-New Zealand Milk Fonterra Dairy for life 31 January 2021 31 January 2022 New Zealand NZD million¹ Non-New Milk Zealand Milk New Zealand Total Milk Non-New Zealand Milk Total Revenue 8,144 1,453 9,597 9,019 1,569 10,588 Cost of goods sold (6,745) (1,201) (7,946) (7,776) (1,263) (9,039) Gross profit 1,399 252 1,651 1,243 306 1,549 Gross margin 17.2% 17.3% 17.2% 13.8% 19.5% 14.6% Operating expenses (833) (180) (1,013) (819) (192) (1,011) Other² 16 (2) 14 62 1 63 Normalised EBIT 582 70 652 486 115 601 EBIT margin 7.1% 4.8% 6.8% 5.4% 7.3% 5.7% 1. Figures are for the six months ended 31 January and are prepared on a normalised continuing operations basis 2. Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees 26#27Group performance by region Asia Pacific Volume ('000 MT) 635 From 672 Revenue ($ million) 3,487 From 3,399 Gross margin 16.3% From 19.3% AMENA Volume ('000 MT) 631 From 627 Revenue ($ million) 3,733 From 3,197 Gross margin 14.3% From 14.7% Greater China Volume ('000 MT) 568 From 593⇓ Revenue ($ million) 3,452 From 3,061 ↑ Gross margin 13.3% From 16.2% $ million ■2021 2022 657 568 236 158 Gross profit EBIT Fonterra Dairy for life 535 470 496 458 200 250 294 236 Gross profit EBIT Gross profit EBIT Note: Figures are for the six months ended 31 January. Does not add to Total Group as shown on a normalised continuing operations basis and excludes unallocated costs and eliminations. Comparative information includes re-presentations for consistency with the current period 27#28Asia Pacific Fonterra Dairy for life million 2021 2022 %A¹ 1 Sales volume² ('000 MT) 672 635 (6)% Revenue ($) 3,399 3,487 3% . Gross profit ($) 657 568 (14)% Gross margin (%) 19.3% 16.3% • Operating expenses ($) (423) (423) 0% Other³ ($) 2 13 550% Normalised EBIT4 ($) 236 158 (33)% Includes EBIT attribution from Group Operations5 ($) EBIT by Quarter ($ million) 47 24 (49)% 145 91 81 77 73 Q1 Q2 Q3 ■2021 2022 (4) Q4 Lower sales volumes mainly due to lower New Zealand and Australian milk collections Improved Ingredients channel performance offset by a decline in the Foodservice and Consumer channels o Increased gross margins in Ingredients channel due to achieving higher product prices in our Australian business o Lower gross margins in Foodservice and Consumer channels due to higher cost of milk, most notable in South East Asia and New Zealand businesses Lower EBIT attribution from Group Operations due to tighter margins, particularly in our cheese portfolio Note: Figures are for the six months ended 31 January and are on a normalised continuing operations basis. Comparative information includes re-presentations for consistency with the current period 1. Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures 2. Includes sales to other segments 3. Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees 4. This includes EBIT attribution from Group Operations 5. This is included in Asia Pacific's EBIT. Refer to Glossary for explanation of Group Operations 28#29Asia Pacific channel performance Ingredients Volume ('000 MT) 251 From 280 Revenue ($ million) 1,764 From 1,636 ↑ Gross margin 11.1% From 10.7% Foodservice Volume ('000 MT) 84 From 82 Revenue ($ million) 482 From 469 Gross margin 13.5% From 25.2% Consumer Volume ('000 MT) 300 From 310 Revenue ($ million) 1,241 From 1,294 Gross margin 24.7% From 28.1% $ million ■2021 ■2022 65 175 196 55 Gross profit EBIT 85 65 52 52 118 Gross profit Fonterra Dairy for life 364 307 77 (4) 119 EBIT Gross profit EBIT Note: Figures are for the six months ended 31 January. Does not add to Total Group as shown on a normalised continuing operations basis and excludes unallocated costs and eliminations. Comparative information includes re-presentations for consistency with the current period 29#30Australia million 2021 2022 %A¹ Milk collections (kgMS) 69 68 (2)% Sales volume² ('000 MT) 174 172 (1)% Revenue ($) 899 916 2% · Gross profit ($) 103 137 33% . Gross margin (%) 11.5% 15.0% Operating expenses ($) (68) (79) (16)% Other³ ($) (3) 1 Normalised EBIT ($) 32 32 59 84% Note: Figures are for the six months ended 31 January and are on a normalised continuing operations basis. This table was prepared exclusive of Group Operations attribution 1. Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures 2. Includes sales to other segments 3. Consists of other operating income and net foreign exchange gains/(losses) Fonterra Dairy for life Lower sales volumes due to lower milk collections as a result of reduced herd sizes and weather impacting on-farm conditions Gross profit and EBIT increased due to: ○ Ingredients channel achieving higher product prices and benefiting from a weaker Australian dollar o Stable Consumer and Foodservice channels due to our in-market sales prices reflecting the rising input costs 30#31AMENA million 2021 2022 %A¹ 1 Sales volume² ('000 MT) 627 631 1% Revenue ($) 3,197 3,733 17% Gross profit ($) 470 535 14% Gross margin (%) 14.7% 14.3% Operating expenses ($) (279) (307) (10)% Other³ ($) 9 22 144% Normalised EBIT4 ($) 200 250 25% Includes EBIT attribution 17 40 135% from Group Operations ($) EBIT by Quarter ($ million) 194 ■2021 2022 131 113 69 23 56 Q1 Q2 Q3 Q4 Fonterra Dairy for life Sales volumes up due to increased milk collections and continued growth in our Chilean business Gross profit up $65 million, due to: o Improved pricing and product mix in Ingredients channel Continued volume and gross margin growth in our Chilean consumer business, offset by: o Lower gross margin due to higher cost of milk, particularly in Foodservice channel Increased EBIT attribution from Group Operations due to higher margins, particularly in the protein portfolio – such as caseinate and whey protein concentrate products - Note: Figures are for the six months ended 31 January and are on a normalised continuing operations basis. Comparative information includes re-presentations for consistency with the current period 1. Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures 2. Includes sales to other segments 3. Consists of other operating income, net foreign exchange gains/(losses) and share profit or loss on of equity accounted investees 4. This includes EBIT attribution from Group Operations 5. This is included in AMENA's EBIT. Refer to Glossary for explanation of Group Operations 31#32AMENA channel performance Ingredients Volume ('000 MT) 401 From 417 Revenue ($ million) 2,900 From 2,477 ↑ Gross margin 11.9% From 11.8% $ million Foodservice Volume ('000 MT) 36 From 30 Revenue ($ million) 197 From 163 Gross margin 7.1% From 13.5% 2021 ■2022 Consumer Volume ('000 MT) 194 From 180 ✶ Revenue ($ million) 636 From 557 ↑ Gross margin 27.7% From 27.8% Fonterra Dairy for life 345 293 140 184 EBIT Gross profit 22 14 Gross profit 8 EBIT 52 66 155 176 Gross profit EBIT Note: Figures are for the six months ended 31 January. Does not add to Total Group as shown on a normalised continuing operations basis and excludes unallocated costs and eliminations. Comparative information includes re-presentations for consistency with the current period 32#33Latin America Fonterra Dairy for life million 2021 2022 %A¹ Sales volume² ('000 MT) 182 192 5% Revenue ($) 489 538 10% . Sales volume up, driven by stronger milk collections in Chile Gross profit ($) 138 162 17% • Gross margin improved due to: Gross margin (%) 28.2% 30.1% Operating expenses ($) (97) (100) (3)% Other³ ($) Normalised EBIT ($) 41 62 51% Note: Figures are for the six months ended 31 January and are on a normalised continuing operations basis. This table was prepared exclusive of Group Operations attribution 1. Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures 2. Includes sales to other segments 3. Consists of other operating income, net foreign exchange gains/(losses) and share profit or loss of equity accounted investees o Improved product mix in Chile, reflecting growth in sales volumes of higher margin products – such as yoghurt and desserts - o Higher in-market prices due to the ability to leverage number one market share position in Chile o Improved economies of scale due to higher sales volumes. EBIT increased due to sales volumes growth and improved gross margins 33 33#34Greater China million 2021 2022 %¹ 1 Sales volume² ('000 MT) 593 568 (4)% Revenue ($) 3,061 3,452 13% Gross profit ($) 496 458 (8)% • Gross margin (%) 16.2% 13.3% Operating expenses ($) (200) (233) (17)% Other³ ($) (2) 11 Normalised EBIT4 ($) 294 236 (20)% Includes EBIT attribution from Group Operations5 ($) EBIT by Quarter 25 12 (52)% · ($ million) 193 150 101 86 88 21 Q1 Q2 Q3 Q4 Fonterra Dairy for life Improved Ingredients channel performance offset by a decline in the Foodservice and Consumer channels o Ingredients channel improved due to higher prices and sales volumes of higher margin products, particularly caseinate products 。 Consistent demand for Foodservice channel but offset by higher cost of milk reducing margins Lower EBIT attribution from Group Operations, which includes increased operating expenses related to COVID-19 supply chain challenges ■2021 2022 Note: Figures are for the six months ended 31 January and are on a normalised continuing operations basis. Comparative information includes re-presentations for consistency with the current period 1. Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures 2. Includes sales to other segments 3. Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees 4. This includes EBIT attribution from Group Operations 5. This is included in Greater China's EBIT. Refer to Glossary for explanation of Group Operations 34#35Greater China channel performance Ingredients Volume ('000 MT) 378 From 399 Revenue ($ million) 2,234 From 1,903 ↑ Gross margin 10.2% From 9.0% Foodservice Volume ('000 MT) 146 From 148 Revenue ($ million) 1,006 From 937 Gross margin 17.2% From 27.2% Consumer Volume ('000 MT) 44 From 46 ↓ Revenue ($ million) 212 From 221 Gross margin 27.4% From 31.2% $ million 2021 ■2022 227 172 144 91 EBIT Fonterra Dairy for life 89 69 58 255 173 194 9 3 Gross profit EBIT Gross profit EBIT Gross profit Note: Figures are for the six months ended 31 January. Does not add to Total Group as shown on a normalised continuing operations basis and excludes unallocated costs and eliminations. Comparative information includes re-presentations for consistency with the current period 35#36Monthly milk prices (NZD/kgMS) 11.00 9.00 7.00 30 Nov 31 May 31 May Monthly Milk Prices for 2020/2021 Season Farmgate Milk Price of $7.54/kgMS Indicative Monthly Milk Prices for 2021/2022 Season Farmgate Milk Price forecast of $9.60/kgMS Fonterra Dairy for life Monthly cost of milk has been on average around $2 per kgMS higher than the previous year for the first six months of the financial year Increased cost of milk has placed pressure on margins in our Foodservice and Consumer channels 36#372022 Board Statement of Intentions In accordance with the Constitution of Fonterra, the Board Statement of Intentions sets out the Board's intentions for the performance and operations of Fonterra. The table below provides an update as at 31 January 2022, of Fonterra's performance against these targets. Healthy People Total recordable injury frequency rate (TRIFR) per million work hours Female representation in senior leadership Employee engagement Farmer sentiment (Net Promoter Score for Fonterra in New Zealand) Healthy Environment Number of farms with Farm Environment Plans (New Zealand) Reduction in water used at sites in water-constrained regions versus FY18 Reduction in greenhouse gas emissions from manufacturing versus FY18 Healthy Business Fonterra % kgMS of New Zealand milk collected for the season ended 31 May New Zealand Farmgate Milk Price (per kgMS) Return on capital Debt/EBITDA Adjusted Net Debt Gearing Ratio Normalised earnings per share FY21 Fonterra Dairy for life FY22 Q2 YTD FY22 FY Target 5.7 32.4% 4.09 6.2 34.4% 5.6 35.8% Top Quartile 23 23 30 53% 61% 67% (2.6)% (8.5)%4 (8.0)% (6.5)% (10.2)%4 (6.5)% 79% 79.5%5 $7.54 $9.30-$9.906 79.3% $7.25-$8.75 6.6% On track? 6.5% to 7.0% 2.7x On track? 38.5% On track? 2.4x 34.5% 34c On track? 25c to 40c 1. Part of zero harm philosophy which also includes target 0 serious harm/0 fatalities 2. Senior leadership defined as Band 14+ 3. Under ongoing management review of the provider and means of determining engagement, measurement of this metric may not be completed during the FY22 financial year 4. Calculated using a combination of actual data and estimates. FY22 GHG target flat reflecting improved efficiencies offset by increased volumes 5. Season to 31 January 2022. Prior comparable season to 31 January 2021: 79.5% 6. Latest publicly announced Forecast Farmgate Milk Price (24 February 2022) 7. FY22 Q2 reflects a full year forecast basis#38Glossary Fonterra Dairy for life Asia Pacific Represents the Ingredients, Foodservice and Consumer channels in New Zealand, Australia, Pacific Islands, South East Asia and South Asia AMENA Represents the Ingredients, Foodservice and Consumer channels in Africa, Middle East, Europe, North Asia and Americas Capital expenditure Capital expenditure comprises purchases of property (less specific disposals where there is an obligation to repurchase), plant and equipment and intangible assets (excluding purchases of emissions units), net purchases of livestock, and includes amounts relating to disposal groups held for sale Consumer Represents the channel of branded consumer products, such as powders, yoghurts, milk, butter, and cheese Debt/EBITDA Is adjusted net debt divided by Total Group normalised earnings before interest, tax, depreciation and amortisation (Total Group normalised EBITDA) excluding share of profit/loss of equity accounted investees and net foreign exchange gains/losses Earnings before interest and tax (EBIT) Is profit before net finance costs and tax Farmgate Milk Price Means the average price paid by Fonterra for each kilogram of milk solids (kgMS) supplied by Fonterra's farmer shareholders under Fonterra's standard terms of supply. The season refers to the 12-month milk season of 1 June to 31 May. The Farmgate Milk Price is set by the Board, based on the recommendation of the Milk Price Panel. In making that recommendation, the Panel provides assurance to the Board that the Farmgate Milk Price has been calculated in accordance with the Farmgate Milk Price Manual Foodservice Represents the channel selling to businesses that cater for out-of-home consumption; restaurants, hotels, cafes, airports, catering companies etc. The focus is on customers such as; bakeries, cafes, Italian restaurants, and global quick-service restaurant chains. High performance dairy ingredients including whipping creams, mozzarella, cream cheese and butter sheets, are sold in alongside our business solutions under the Anchor Food Professionals brand Free cash flow Is the total of net cash flows from operating activities and net cash flows from investing activities 38#39Glossary Gearing ratio (adjusted net debt) Is adjusted net debt divided by total capital. Total capital is equity excluding hedge reserves, plus adjusted net debt Greater China Represents the Ingredients, Foodservice and Consumer channels in Greater China, and the Falcon China Farms JV Group Operations Comprises functions under the Chief Operating Office (COO) including New Zealand milk collection and processing operations and assets, supply chain, Group IT, Sustainability and Innovation; Fonterra Farm Source TM retail stores; and the Central Portfolio Management function (CPM) Ingredients Represents the channel comprising bulk and specialty dairy products such as milk powders, dairy fats, cheese and proteins manufactured in New Zealand, Australia, Europe and Latin America, or sourced through our global network, and sold to food producers and distributors kgMS Means kilograms of milk solids, the measure of the amount of fat and protein in the milk supplied to Fonterra Net debt (adjusted) Fonterra Dairy for life Is calculated as total borrowings, plus bank overdraft, less cash and cash equivalents, plus a cash adjustment for 25% of cash and cash equivalents held by the Group's subsidiaries, adjusted for derivatives used to manage changes in hedged risks on debt instruments. Amounts relating to disposal groups held for sale are included in the calculation Normalised earnings per share (EPS) Normalised earnings per share is calculated as normalised profit after tax attributed to equity holders of the Co-operative divided by the weighted average number of shares on issue for the period Return on capital Is Total Group normalised EBIT including finance income on long-term advances less a notional tax charge, divided by average capital employed Season New Zealand: A period of 12 months from 1 June to 31 May Australia: A period of 12 months from 1 July to 30 June Chile: A period of 12 months from 1 August to 31 July Unallocated costs and eliminations Represents corporate costs including Co-operative Affairs and Group Functions; and any other costs that are not directly associated to the reporting segments; and eliminations of inter-segment transactions 39#40Important information and disclaimer This presentation may contain forward-looking statements, financial targets and ambitions ("Forward Statements"), each of which is based on a range of assumptions, including (in the case of our 2030 strategy) the assumptions noted in the Appendix of the booklet titled Our Path to 2030 which is available on our website. None of the Forward Statements is intended as a forecast, estimate or projection of the outcome that will, or is likely to, eventuate. They should not be taken as forecasts or a guarantee of returns to shareholders. There can be no certainty of outcome in relation to the matters to which the Forward Statements relate. Our ability to achieve the outcomes described in the Forward Statements is subject to a number of assumptions, each of which could cause the actual outcomes to be materially different from the events or results expressed or implied by such Forward Statements. The Forward Statements also involve known and unknown risks, uncertainties and other important factors that could cause the actual outcomes to be materially different from the events or results expressed or implied by such Forward Statements. Those risks, uncertainties, assumptions and other important factors are not all within the control of Fonterra Co-operative Group Limited ("Fonterra") and its subsidiaries (the "Fonterra Group") and cannot be predicted by the Fonterra Group. The Forward Statements in this presentation reflect views held only at the date of this presentation. While all reasonable care has been taken in the preparation of this presentation, none of Fonterra, the Fonterra Group, or any of their respective subsidiaries, affiliates and associated companies (or any of their respective officers, employees or agents) (together "Relevant Persons”) makes any representation or gives any assurance or guarantee as to the accuracy or completeness of any information in this presentation or the likelihood of fulfilment of any Forward Statement or any outcomes expressed or implied in any Forward Statement. Accordingly, to the maximum extent permitted by law, none of the Relevant Persons accepts any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of any Forward Statements or for any loss, howsoever arising, from the use of this presentation. Statements about past performance are not necessarily indicative of future performance. Except to the extent (if any) as required by applicable law or any applicable Listing Rules (including the Fonterra Shareholders' Market Rules), the Relevant Persons disclaim any obligation or undertaking to update any information in this presentation. This presentation does not constitute investment advice or opinions, or an inducement, recommendation or offer to buy or sell any securities in Fonterra or the Fonterra Shareholders' Fund. Fonterra Dairy for life 40#41Non-GAAP Measures Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures are not defined or specified by NZ IFRS. Management believes that these measures provide useful information as they provide valuable insight on the underlying performance of the business. They may be used internally to evaluate the underlying performance of business units and to analyse trends. These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may not be comparable with similarly titled measures used by other companies. Non- GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP measures are not subject to audit unless they are included in Fonterra's audited annual financial statements. Please refer to the non-GAAP measures section in Fonterra's 2022 Interim Report for reconciliation of NZ IFRS to non-GAAP measures, and the Glossary for definitions of non-GAAP measures referred to by Fonterra. Fonterra Dairy for life 41