Fonterra CFO on Full-Year Earnings, Dividend, China Strategy

The transcript discusses the FY18 annual results, highlighting a $196 million loss due to one-time events and disappointing operational performance. Despite a strong milk price, the company plans a strategic review of assets, considering all options for improvement. Dividend resumption depends on earnings and debt management. China remains a key market, with mixed results in consumer business and farms. The company aims to improve performance and capital structure, focusing on realistic earnings forecasts and value-added products.

What were the main reasons for the company's $196 million loss in FY18?

• One-time events like the Danone arbitration settlement

• Increased competition

• High operational costs

• Decreased milk production

What is the company's approach to improving its future earnings?

• Focusing on divestments only

• Going back to basics and improving forecasting

• Increasing milk prices

• Expanding into new markets

How important is the China market to the company?

• It represents 10% of the business

• It is not a significant market

• It represents 25% of the business

• It is a declining market

What is the company's strategy for dealing with its investment in Beingmate?

• Sell the investment

• Increase the stake

• All options are on the table

• Exit the investment

What is the company's stance on its capital structure?

• Reducing capital investments

• Planning to change it soon

• Switching to a different structure

• No plans to change it

What is the company's target improvement in earnings for the next year?

• 30 to 40 cents

• 15 to 25 cents

• 25 to 35 cents

• 10 to 20 cents

What percentage of milk is being sold as high-value products?

• 30%

• 50%

• 42%

• 45%