Fonterra Shareholders' Fund Prospectus and Investment Statement
Fonterra Shareholders' Fund Prospectus and Investment Statement
Fonterra Shareholders' Fund Prospectus and Investment Statement
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6<br />
FONTERRA’s<br />
diverse<br />
OPERATIONS<br />
UNDERPIN<br />
ITS EARNINGS.<br />
<strong>Fonterra</strong> balances cash<br />
generation from its established<br />
businesses with investment<br />
in key growth areas.<br />
New investment is focused on<br />
optimising the manufacturing<br />
footprint in New Zeal<strong>and</strong> <strong>and</strong><br />
higher-growth opportunities<br />
in Asia <strong>and</strong> Latin America.<br />
NORMALISED EBIT 1<br />
RETURN ON CAPITAL EMPLOYED 1<br />
1,200<br />
10%<br />
1,000<br />
800<br />
600<br />
400<br />
904<br />
119<br />
176<br />
303<br />
1,005<br />
119<br />
193<br />
256<br />
420<br />
1,028<br />
129<br />
194<br />
204<br />
515<br />
1,079<br />
125<br />
223<br />
226<br />
517<br />
9.6%<br />
9.2%<br />
8.8%<br />
8.7%<br />
9.4%<br />
9.3%<br />
9.6%<br />
200<br />
306<br />
8.4%<br />
0<br />
8%<br />
FY2010<br />
FY2011<br />
FY2012<br />
FY2013F<br />
FY2010 FY2011 FY2012 FY2013F<br />
NZ Milk<br />
Products<br />
ANZ<br />
Asia /<br />
AME<br />
Latam<br />
Inter-segment<br />
income<br />
Source: <strong>Fonterra</strong><br />
Source: <strong>Fonterra</strong><br />
1 Figures expressed in millions of dollars. Normalised EBIT<br />
includes share of profit from equity accounted investees<br />
<strong>and</strong> excludes non-recurring items as described on pages 74<br />
<strong>and</strong> 96 in Section 4 – <strong>Fonterra</strong> Financial Information.<br />
Normalised EBIT includes inter-segment income of positive<br />
$17 million in FY2011, negative $14 million in FY2012, <strong>and</strong><br />
negative $12 million in FY2013 (forecast).<br />
1 Return on capital employed is calculated as normalised EBIT divided by capital<br />
employed. Normalised EBIT includes share of profit from equity accounted investees<br />
<strong>and</strong> excludes non-recurring items as described on pages 74 <strong>and</strong> 96 in Section 4 –<br />
<strong>Fonterra</strong> Financial Information.<br />
FONTERRA SHAREHOLDERS’ FUND PROSPECTUS AND INVESTMENT STATEMENT 33
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