Fonterra Co-operative Group (FCG) Special Meeting 2025 summary

Opening remarks and agenda

• Meeting opened to consider the divestment of consumer and associated businesses, with voting procedures and quorum confirmed.

• Agenda included Chair's address, CEO's strategic overview, Co-operative Council Chair's remarks, resolution on the sale, Q&A, and voting.

• Introduction of board members, senior management, auditors, and council representatives present in person and virtually.

Board and executive committee updates

• Board unanimously recommended supporting the proposed sale to Lek Delice after extensive engagement with shareholders.

• Sale process was highly competitive, with Lek Delice's $4.22 billion offer exceeding independent valuations.

• The divestment is expected to simplify the business, focus on B2B ingredients and food service, and accelerate innovation.

Strategic initiatives and plans

• Focus will shift to global ingredients and food service businesses, leveraging competitive advantage and global reach.

• Investments underway include an advanced protein plant and new UHT cream capacity, with further $1 billion planned over 3-4 years.

• Post-divestment targets include 10%-12% average return on capital, maintaining high farmgate milk price, and a 60%-80% dividend payout policy.