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>We upgrade our rating to NEUTRAL.</li><li>Synlait Milk (SML)’s FY25 result was the sideshow to the sale of its North Island assets to Abbott for NZ$307m.</li><li>We see this as a clear positive for two reasons: (1) removal of balance sheet risk (we estimate SML will be net cash at FY26); and (2) removal of material losses (FY25 EBIT losses of ~-NZ$20m versus total group EBIT of ~+NZ$50m).</li></ul>

We upgrade our rating to NEUTRAL.Synlait Milk (SML)’s FY25 result was the sideshow to the sale of its North Island assets to Abbott for NZ$307m.We see this as a clear positive for two reasons: (1) removal of balance sheet risk (we estimate SML will be net cash at FY26); and (2) removal of material losses (FY25 EBIT losses of ~-NZ$20m versus total group EBIT of ~+NZ$50m).

Synlait Milk FY25 Result—The Power of Deleverage