Company Presentation November 2016 Important Notice The information - PowerPoint PPT Presentation

Company Presentation November 2016

Important Notice The information in this presentation has been prepared solely by Vietnam Dairy Product Joint Stock Company (“ Vinamilk ”) and has not been independently verified, and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein or as to the reasonableness of any assumptions herein or the grounds on which they are based. The information set out herein may be subject to updating, revision, verification and amendment and such information may change materially. Vinamilk is under no obligation to update or keep current the information contained in this presentation and any opinions expressed herein are subject to change without notice. None of Vinamilk or any of its advisers or representatives, or any of their respective affiliates, shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising in connection with this presentation or any oral information provided in connection herewith. This presentation is for information purposes only. Nothing in this presentation constitutes an offer to sell or the solicitation of offers or bids to acquire any securities of Vinamilk. In particular, this presentation is not an offer of securities for sale in the United States and is not for publication or distribution in the United States (within the meaning of Regulation S under the United States Securities Act of 1933, as amended). Attending this presentation in certain jurisdictions may be restricted by law. No action has been taken by Vinamilk or any of its advisors or representatives that would permit the possession or distribution of this presentation in any jurisdiction where action for that purpose is required. Persons attending this presentation are required to inform themselves about and to observe any such restrictions. Certain statements in this presentation constitute "forward-looking statements". These statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect Vinamilk’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the management of Vinamilk. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. As a result, you are cautioned not to place undue reliance on such forward-looking statements. The management of Vinamilk disclaims any obligation to update its view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law. Moreover, certain information in this presentation (including expectations and forecasts) relating to the Vietnamese dairy industry and other industry and economic data has been sourced from third party sources that Vinamilk believes are reliable; however, Vinamilk, its advisors and representatives and their respective affiliates cannot ensure you that such information third party information has been prepared on a reasonable basis or is otherwise fair, accurate, complete or correct. 2

Ng �� i trình bày Mai Kieu Lien Le Thanh Liem Member of BOM Executive Director - Finance and Chief Accountant and CEO Tran Chi Son Le Quang Thanh Truc Company Secretariat, Director Senior Finance of Foreign Subsidiaries Manager 3 Management

Table of Content 1 Introduction 2 Key Investment Highlights 3 Financial Review 4

Section 1 – Introduction

Vinamilk at a Glance Extensive Product Offering Across Multiple Categories Liquid Milk Yogurt Condensed Milk Powdered Milk Soymilk Cheese Ice Cream Beverages Net Revenue by Channel Net Revenue by Region FY15 (%) FY15 (%) Modern Trade & Overseas Others 13% 20% US$ US$ 1.8Bn 1.8Bn General Domestic Trade 80% 87% Source Company Filings Source Company Filings 6

Vinamilk by the Numbers 40-year Heritage of Dairy in Vietnam Largest Consumer & Retail 215,000 Points of Sale Company in Vietnam Diverse Product Portfolio with ~US$1.8Bn in FY15 More than 200 SKUs Net Revenue (1) 21% Net Revenue CAGR and ~US$500MM in FY15 EBITDA (1)(2) 17% Net Income CAGR over 25% Margin last 5 years Notes 7 1. Exchange rate of VND22,260 per US$1.00 as of 14 October 2016 2. EBITDA = Net Revenue – COGS – SG&A + Depreciation & Amortization

Vietnam – One the Most Attractive Markets in ASEAN One of the Fastest-Growing Economies Globally Large and Young Consumer Base of 93MM People 2015 Total Population (MM) 2015-20E Nominal GDP CAGR Median 38 27 38 28 31 39 47 24 30 9.4 9.4 Age 8.7 7.8 1,368 1,281 6.0 4.9 4.5 4.5 322 258 208 144 127 101 93 World #1 #2 #3 #4 #5 #9 #10 #12 #14 Ranking Source Global Insight Source Industry Data Significant Potential in GDP per Capita Emerging Middle Class with Rising Income Levels 2015 Real GDP per Capita (US$) 2015 Disposable Income per Capita (US$) ~27x 2,167 56,083 52,888 1,421 776 9,555 8,048 5,813 3,346 2,904 2,070 2010 2015 2020E Industry Data Industry Data Source Source 8

Section 2 – Key Investment Highlights

Key Investment Highlights 1 Vinamilk – Vietnam’s Domestic Champion with a 40-Year Brand Heritage 2 Strong Leadership Across Diversified Product Categories 3 Extensive Nationwide Distribution Network Vertically Integrated Business Model Supported By Modern Production 4 Facilities, Innovation Capability and Long-Term Supplier Relationships Highly Visible Growth Trajectory Driven Increasing Volumes, Enhanced 5 Premiumization and Operational Efficiency 6 Proven Historical Track Record of Financial Performance 7 Highly Experienced Management Team 10

Vinamilk – Vietnam’s Domestic Champion with a 1 40-Year Brand Heritage Vinamilk’s Brand Heritage Vinamilk is among the Most Recognized FMCG Brands Vietnam Brand Ranking by Urban CRP (1) , 2015 (MM) • Pioneered the dairy category in Vietnam in 1976 • Currently the largest listed company in Vietnam by market cap 70.3 • Portfolio of well-recognized and trusted brands that resonate with local consumers 56.4 • Targeting all consumer segments from pre-natal to the elderly • Consistently perceived for delivering quality and value 39.0 0-3 2-6 6-9 9-14 15-17 18-25 50+ Pregnant years years years years years years 25-35 + years 25.0 Premium Infant Mama Kids’ Brand Youth & Beauty Elderly’s Milk Formula 23.6 Common Infant Formula Family’s Brand 22.3 Functional Infant Formula Source Kantar World Panel 11 Notes 1. Urban Consumer Reach Points measures how many urban households a brand is reaching and how often they are being purchased

Vietnam is One of the Most Attractive 1 Dairy Markets Globally Rapid Growth of Consumer Expenditure on Food Vietnam Dairy Market Valued at US$3.6Bn and Growing and Beverages at 8% Per Annum Consumer Expenditure on F&B per Capita (US$) Vietnam Dairy Market Size (US$MM) 5,254 844 3,639 555 2,633 285 2010 2015 2020E 2012 2015 2020E Source Industry Data Source Industry Data Significant Upside Potential for per Capita Consumption Dairy Consumption per Capita (kg) ~21x 314 USDA Recommendation: 220 51 34 26 22 15 13 US Malaysia Thailand China Philippines Vietnam Indonesia Source Industry Data 12

2 Strong Leadership Position… Largest Dairy Producer in Vietnam Market Share by Dairy (1) Retail Value, 2015 (%) Competitors 51.0% 49.0% (FrieslandCampina, Abbott, MeadJohnson, Nestle, Nutrifood, IDP, Moc Chau, TH, Yakult, Kinh Do, and others) Source Industry Data Notes 13 1. Includes butter and margarine, cheese, drinking milk products, yoghurt and sour milk products, and other dairy (chilled and shelf stable desserts, chilled snacks, coffee whiteners, condensed milk, cream, fromage frais and quark)

…Across Diversified Product Categories 2 Leadership Across Product Groups With a Portfolio of More Than 200 SKUs Key Product Groups Liquid Milk Infant Formula Condensed Milk Spoon Yogurt Others Others 15.9% 20.6% 23.7% Others 48.2% 2014 2014 2014 2014 51.8% Others 84.1% 76.3% 79.4% Market Positioning Others Others 15.7% 20.7% 24.9% Others 47.1% 2015 2015 2015 2015 52.9% Others 79.3% 75.1% 84.3% Sample Products 14

Extensive Nationwide Distribution Network 3 Extensive Coverage Supported by a Vast POS Network Dominance Across Traditional As Well As Modern Trade Point of Sales in Vietnam 240,000 Ha Noi 215,000 200,000 161,000 215,000 Retailers Da Nang 243 Exclusive Distributors 1,609 Supermarkets 575 Convenience Stores 200 Vinamilk Shops Ho Chi Minh City Sales Office Can Tho Logistics Enterprise (1) Vinamilk Head Office Source Company Filings Source Company Filings 15 Notes 1. Oversee warehouses and transportations of raw materials as well as finished goods