Ann: Updated Synlait FY18 Annual Results Report, page-40

snip from BP's update on A2M yesterday dated

"SYNLAIT OUR PREFERRED EXPOSURE
While we see some potential short term issues that may hamper stock performance, our
enthusiasm for the A2M proposition longer term and the potential changes to China supply
chains (to the benefit of A2M) has not changed. However, the vehicle for which we choose
to gain this exposure has changed. To this end we are now demonstrating a clear
preference to SM1 over A2M. The fact that A2M have not enacted their buyback (up to
NZ$40m announced in Aug’17) while they have continued to acquire SM1 stock (last
paying NZ$10.90ps (vs. current share price of NZ$10.70ps) perhaps indicates where the
Boards perception of value is in the A2M supply chain. Given the more modest multiple for
SM1 (12.8x FY19e EBITDA less committed capex vs. A2M at 20.5x FY19e EBITDA), the
potential for other product registrations to emerge over the next 12 months for SM1 (New
Hope, Bright and Munchkin), and scope for milk to be utilised in other products (thereby
given some semblance of downside protection should A2M volumes fall short of market
expectations) we see the scope for SM1 to potentially outperform A2M."