Dividend Policy

Fonterra's Board targets a payout ratio of 65 to 75 per cent of adjusted net profit after tax each year. In considering payment of the dividend, the Board will have regard to all relevant factors, but in particular:

• Any non-recurrent items that affect profit after tax.
• Average dividends paid over the previous three years.
• Near-term earnings projections, investment priorities and gearing targets.
• Any other factors the Board considers relevant, including existing or likely market conditions that may impact Fonterra or our Shareholders.

The Board has indicated that it will target 40 to 50 per cent of the annual dividend to be paid at the half year.

Dividends paid:

Dividend per share (cents)	2013	2012	2011
Interim Dividend	16	12	8
Final Dividend	TBA	20	22
Total Annual Dividend	TBA	32	30