AGM Attendance and Questions, page-33

Please note disclaimer: I've done my best to listen and take notes, but am only human and may have misheard/misnoted some facts and figures!!

Rob opened the meeting. Laura did the business recap and both took the questions.

- Rob thanked and acknowledged the BAL team: Board, direct employees in Lonnie and globally (approx 60), and global suppliers.
- Demand for product today is way beyond what they imagined possible when starting out 10 years ago.
- IF is a fast growing consumer environment, into which organic fits perfectly: BAL is a great company in a sweet spot: China, supply chain, knowledge and skills.

Laura talked to presentation which should be published publicly.

Key highlights:
No. 1 cereal and toddler milk brand in Australia (this was mirrored in Singapore)
- China looks to Aussie friends and family for buying guide on Aussie goods
- No. 1 status brings brand leverage, e.g. negotiations with Woolies to stock food products (response to internet question from shareholder saying their local Woolies isn't stocking BAL. Laura said they were in negotiations at the moment and #1 status might make Woolies see things differently).
- (BAL did put out that press release and Laura was really happy with the take up... I think she said it was picked up by 1,500 news outlets)

Supply and Manufacturing
- Bringing Fonterra on board has been great, enhanced ingredients, and making and even better formula
- Ambitious volumes; Fonterra taking BAL to new levels,
- Securing supply has enabled Fonterra to happen (I'm sure Laura also talked about #1 rating also provided leverage in BAL being a preferred customer of organic milk suppliers?)

China
- BIG market. All the rest of the world IF market together is still less then China alone.
- Approx 100k stores, BAL in approx 5-6k of them... plenty more growth potential
- One child policy/birth rates... Stats starting to come through - 29% birth rate growth last year
- Rob made a particular comment on China - apparently the Tassie Gov has been talking of the India market, and whilst he agrees it is a big market as well, China is where growth is at at the moment and diversifying to other markets may actually be detrimental (my words), i.e. you want to really focus on it and jumping around from market to market may be more risk then reward.

China Regulations
- Limits will reduce brands from >2000 to <250.
- Changes will support and build growth
- BAL is a priority Top 3 customer with manufacturers (registered factories: 3 brands with 3 products) (an example of leverage from #1 rating)

Global
- not discussed too much, but I think this needs to be considered in context of comment on importance of further building china marketshare.
- Singapore: 4.7% share of pharmacies, now using this to leverage into supermarkets
- Vietnam: establishing company arrangements

- Marketing
- Marketing team have been working on 11/11. We were shown a sample of their work - an internet promotional video
- I also talked with Laura after the meeting to suggest they improve the investor website to include BAL's press releasing and info/link to interviews that Laura does. She thought these were great and would take them back to market team who are currently redeveloping this site.
- Question from audience on using "Aussie" kids and models, how did this relate to China market. Laura said they do do photos with very cute chinese babies, but also noted that China wants something that is an Aussie brand, so don't this as a marketing hinderance.

Organic/Tassie Farmers:
- This was discussed and Laura's passion is obvious. Talked about not only the relevance for BAL, but the benefits to environment, animals, communities and sharing knowledge on art of farming.

Risks:
- First and foremost BAL is concerned with ensuring safe milk and food for children - nothing is more important.
- Risks were covered off and I don't think there was anything new revealed here, e.g. independent testing before product is shipped, etc. The one I hadn't heard before, BAL know how to identify their tins, and have teams that check shelves to ensure no counterfeits (I think with particular reference to stock on China shelves)

And finally - the one you all want to know the answer to.... there were no 1Q figures announced.
- Someone called Hugh from the audience pushed this question (he was obviously well known by Rob and Laura)
- Rob said this is a really good company, and they feel giving forecasts sets companies up for backlash and ramifications when these are updated.
- IMO Laura seemed to be bursting to share good news on YTD, but did say that bringing Fonterra into the mix has been great.

I've typed in a hurry - but hope I've given a feel for all key points discussed.

My over all impression: This company is in great hands and has a great future.

Louis Lane: Over and Out