a2MC receives SAMR approval

The a2 Milk Company (the Company, a2MC) confirms that it has received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula (IMF) product registrations acquired in connection with the a2 Pokeno facility to a2 branded products. This represents the final step pursuant to the terms of a2MC’s acquisition of the a2 Pokeno facility for the relevant registrations to be utilised under the a2 brand. With regulatory approvals now obtained, the Company confirms that it no longer has the right to unwind the acquisition of the a2 Pokeno facility. The Company expects to launch the new products later this calendar year, with no change to the timing or estimated financial benefits provided to the market at the time of announcing the acquisition. David Bortolussi, Managing Director and CEO, said “SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.” As indicated at the time of the a2 Pokeno acquisition and following receipt of the required regulatory approvals in connection with the Company’s China label registrations, it is expected that the Board will convene soon with the intent to declare a $300 million special dividend that will be fully franked and unimputed. The timing of payment and other details will be confirmed in a separate announcement once the special dividend has been declared by the Board. Authorised for release by the Board of Directors David Bortolussi Managing Director and Chief Executive Officer The a2 Milk Company Limited