2022 Annual Results

Operating expenses Fonterra Dairy for life NZD million¹ 2021² 2022 Costs allocated to regions Selling & marketing 656 667 Distribution & storage 543 588 • Administration expenses 633 669 Research & development 82 83 Other expenses 16 72 Total allocated operating expenses 1,930 2,079 Unallocated costs 223 205 Operating expenses from 2,153 2,284 continuing operations · Operating expenses from 89 113 discontinued operations Total Group operating expenses 2,242 2,397 1. Normalised basis. Does not align to FY22 Annual Financial Statements, predominately due to additional categories 2. $59 million of 'Other' expenses have been reclassified to Administration expenses for consistency with the current period Total Group operating expenses increased $155 million reflecting: o inflationary pressure and supply chain disruptions increased distribution & storage, and administration expenses by $81 million o increased 'Other' expenses of $56 million reflects Asia brands impairment and costs associated with discontinuing some products that are not aligned with our strategy Unallocated costs decreased $18 million due to releasing a provision held at Group level Increased costs in discontinued operations due to higher distribution and storage costs in DPA Brazil 32 32

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