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Investor Presentaiton

NEW ZEALAND BIG FALL IN NZ GDP IN FIRST HALF OF CALENDAR 2020, RECOVERY UNDERWAY¹ $NZ billion (chain prices) RBNZ EXPECTED TO MOVE TO NEGATIVE RATES² $NZ billion (%) OCR 2.50 70 66 62 12 NZ GDP Electronic card transactions 2.00 10 Actual ■NAB Fcst, end qtr Mkt pricing 1.50 8 1.00 0.50 58 6 0.00 54 4 -0.50 50 50 2 -1.00 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Sep-18 Sep-19 Sep-20 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 DAIRY FARM VIABILITY HOUSING MARKET BOUNCED BACK QUICKLY FROM IMPACT OF EARLY COVID-19 RESTRICTIONS6 (Index) (yoy%) House prices Dwelling sales transacted 7.19 3500 60 6.80 3000 Auckland 40 5.95 5.85 2500 2000 ہے 20 0 -20 1500 National ex Auckland -40 1000 -60 500 -80 2012 2013 2014 2015 2016 2017 2018 2019 20203 2021 0 -100 4 Mid Point of Fonterra milk price forecast Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 5 Assessed average cost of production (per kg) * 12 14 16 18 20 12 14 16 18 20 (3) Source: Refinitiv, Statistics NZ. GDP data to Q2 2020, Electronic card transaction all industry data to September 2020 Source: Refinitiv. NAB, OCR Market pricing from Refintiv Eikon Interest Rate Probability as at 3 November 2020 2020 figure includes Milk Price of $7.14 and Dividend of $0.05 (4) Source: Fonterra (milk price) Source: Dairy NZ (Forecast cost of production) 113 (6) Source: Refinitiv, REINZ National Australia Bank
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