Synlait Milk (SML) AGM 2025 summary

Opening remarks and agenda

• Meeting held in Christchurch and online, with clear instructions for voting and Q&A participation provided to attendees.

• Chair and CEO addresses opened the meeting, followed by resolutions, voting, and other business.

• Four ordinary resolutions on the agenda: two Director elections, Auditor's remuneration, and the sale of North Island assets.

Board and executive committee updates

• Board includes independent and Bright Dairy-appointed directors, with Paul Washer retiring and Julia Zhu joining.

• Board remains at six Directors, with two Independent Directors; no immediate search for a replacement after Paul Washer's departure.

• Audit and Risk Committee now chaired by Julia Zhu, with a commitment to review governance structure in May 2026.

• Audit & Risk and People, Environment & Governance committees chaired by Julia Zhu and George Adams, respectively.

• Board acknowledges current structure does not fully align with NZX Corporate Governance Code but is considered appropriate for now.

Financial performance review

• FY2025 described as a period of intense challenge, including solvency issues, disputes, equity raising, and manufacturing setbacks.

• $43.5 million in costs from manufacturing challenges in FY2025, with some costs expected to continue into FY2026.

• $130m Bright Dairy shareholder loan and equity raise in 2024 supported survival and debt reduction.

• $180m bond redemption completed by end of 2024.

• Return to profitability signaled in March 2025, with new milk premiums and secured supply.

• Sale of North Island assets to Abbott for NZD 307 million will significantly reduce debt and reset the balance sheet.

• Peak debt projected to drop from $550 million to $250 million after asset sale, with only working capital debt remaining.