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

<ul><li>Synlait Milk (SML) has announced its intentions to divest its Dairyworks and Talbot Forest Cheese (TFC) businesses as part of its asset/capital structure review.</li><li>We estimate potential sales proceeds of ~NZ$150m using current earnings and applying prior transaction multiples.</li><li>A sale would reduce pro-forma FY23 net debt to ~NZ$275m (versus our current forecast of ~NZ$425m).</li></ul>

Synlait Milk (SML) has announced its intentions to divest its Dairyworks and Talbot Forest Cheese (TFC) businesses as part of its asset/capital structure review.We estimate potential sales proceeds of ~NZ$150m using current earnings and applying prior transaction multiples.A sale would reduce pro-forma FY23 net debt to ~NZ$275m (versus our current forecast of ~NZ$425m).

Synlait Milk: A Baby Step; Leaps Are Required