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) reported a FY22 result largely in-line with our expectations with underlying NPAT of NZ$34.0m (FB; NZ$32.7m, consensus; NZ$33.0m</li><li>While the underlying result was largely in-line, the key positive was lower debt than forecast (NZ$340m versus our NZ$379m and consensus NZ$392m) driven by better working capital improvements</li><li>SML remains committed to its FY23/24 qualitative targets to “exit FY23 and enter FY24 with a similar level of profitability experienced before FY21” – FY20 NPAT was ~NZ$75m, us and consensus are currently taking a more conservative stance (~NZ$61m)</li></ul>

Synlait Milk (SML) reported a FY22 result largely in-line with our expectations with underlying NPAT of NZ$34.0m (FB; NZ$32.7m, consensus; NZ$33.0mWhile the underlying result was largely in-line, the key positive was lower debt than forecast (NZ$340m versus our NZ$379m and consensus NZ$392m) driven by better working capital improvementsSML remains committed to its FY23/24 qualitative targets to “exit FY23 and enter FY24 with a similar level of profitability experienced before FY21” – FY20 NPAT was ~NZ$75m, us and consensus are currently taking a more conservative stance (~NZ$61m)

Synlait Milk: FY22 Result – Initial Impressions