8 slide presentation vinamilk

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 wa

November 2016

Company Presentation

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

representatives, or any of their respective affiliates, shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoeverarising 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 toacquire any securities of Vinamilk In particular, this presentation is not an offer of securities for sale in the United States and is not forpublication or distribution in the United States (within the meaning of Regulation S under the United States Securities Act of 1933, asamended)

Attending this presentation in certain jurisdictions may be restricted by law No action has been taken by Vinamilk or any of its advisors orrepresentatives 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 anduncertainties 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 adverselyaffect 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 sounder applicable law Moreover, certain information in this presentation (including expectations and forecasts) relating to the Vietnamese dairyindustry 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 hasbeen prepared on a reasonable basis or is otherwise fair, accurate, complete or correct

Important Notice

Người trình bày

Mai Kieu Lien

Member of BOM and CEO

Tran Chi Son

Senior Finance Manager

Le Thanh Liem

Executive Director - Finance and Chief Accountant

Le Quang Thanh Truc

Company Secretariat, Director

of Foreign Subsidiaries Management

Section 1 – Introduction

Overseas 20%

General Trade 87%

Modern Trade &

Source Company Filings Source Company Filings

Diverse Product Portfolio with

1,368 1,281

322 258

208 144 127 101 93

2015 Total Population (MM)

2015 Disposable Income per Capita (US$)

Large and Young Consumer Base of 93MM People

Emerging Middle Class with Rising Income Levels

Source Industry Data

Median Age

2015-20E Nominal GDP CAGR

One of the Fastest-Growing Economies Globally

Source Global Insight

Source Industry Data

56,083 52,888

9,555 8,048

5,813 3,346 2,904

2,070

2015 Real GDP per Capita (US$)

Significant Potential in GDP per Capita

Source Industry Data

~27x

Vietnam – One the Most Attractive Markets in ASEAN

Section 2 – Key Investment Highlights

1

Notes

• Currently the largest listed company in Vietnam by

market cap

• Portfolio of well-recognized and trusted brands that

resonate with local consumers

• Targeting all consumer segments from pre-natal to

the elderly

• Consistently perceived for delivering quality and value

Source Kantar World Panel

Mama Premium Infant Formula Kids’ Brand Youth & Beauty Elderly’s Milk

9-14 years

18-25 years 25-35 +

50+

years 15-17

years

Vinamilk – Vietnam’s Domestic Champion with a

40-Year Brand Heritage

Consumer Expenditure on F&B per Capita (US$)

Rapid Growth of Consumer Expenditure on Food

Vietnam Dairy Market Size (US$MM)

Source Industry Data

Source Industry Data

Dairy Consumption per Capita (kg)

Significant Upside Potential for per Capita Consumption

~21x

Dairy Markets Globally

Largest Dairy Producer in Vietnam

Source Industry Data

Notes

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

49.0%

Competitors 51.0%

(FrieslandCampina, Abbott, MeadJohnson, Nestle, Nutrifood, IDP, Moc Chau, TH,

Yakult, Kinh Do, and others)

79.4%

Others 20.6%

52.9%

Others 47.1%

24.9%

Others 75.1% 79.3%

Others 20.7%

84.3%

Others 15.7%

51.8%

Others 48.2%

Sample

Products

2

Leadership Across Product Groups With a Portfolio of More Than 200 SKUs

…Across Diversified Product Categories

Key Product Groups

2015

Dominance Across Traditional As Well As Modern Trade

Source Company Filings

Extensive Coverage Supported by a Vast POS Network

Source Company Filings

Point of Sales in Vietnam

Sales Office

Ha Noi

Da Nang

Can Tho

Vinamilk Head Office

Ho Chi Minh City

Logistics Enterprise (1)

Notes

Ho Chi Minh City

Vertically Integrated Infrastructure and Management Systems

The only FMCG player

to have facility in Central Vietnam

13 Production Facilities Across Vietnam

Germany, Italy, and Switzerland

• Spray dry technology by Niro– retains high content of nutrients and minerals

inventory and minimizes spoilage loss

Clinic

Modern Production Facilities…

Strong Track Record of Product Innovation and Successful Products Overview of Innovation Capabilities

• Qualified R&D team with deep

knowledge of local tastes and

preferences

• Partnership with 3 leading biotech

companies DSM, Lonza, and Chr

Hansen for research, application and

product development

Optimum Gold powdered milk

RTD nutrition milk, i.e

Dielac Grow, Dielac Alpha Gold, Dielac Grow Plus, and Optimum Gold

Ozé–flavored iced juice

Four-Season Twin Cows ice cream

Dielac Alpha Organic Fresh milk

(made in USA)

Drinking yoghurt: Aloe, Pomegranate, Orange, Strawberry

Spoon yoghurt – Pomegranate

2015 New Products Launched

2016 New Products Launched

• Currently has 10 cow-farms producing ~600 tons of

raw milk each day

with a total designed capacity of ~24,000 cows

• Industrialized farms also serve as technical

support centres for milk cow farmers in the

region

currently accounting for ~30% of the total production

demand

• Domestic supply of raw milk expected to reach

40% in the next five years

total production demand Imports are mainly from

New Zealand, Australia, USA and Europe

Commitment to Increasing Raw Material Self-Reliance and Developing Local Dairy Farm Communities

Source Company Filings

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Continue to Drive the Volume Growth Over and

Above the Market Growth

Best-in-class marketing, sales, and R&D

capabilities drive sales growth

Vinamilk Organic

First organic milk in Vietnam, manufactured in accordance with international standards

Optimize the Product Mix to Drive Premiumization

Targeting the growing upper-middle income class

product portfolio

Product R&D Team

trends

research companies

Marketing Team

through constant contact at various outlets

Sales Team

5

Vinamilk Twin Cows

Premium quality milk manufactured and imported from New Zealand

Optimum Gold

20% increase in DHA derived from pure microalgae, combined with Lutein

Highly Visible Growth Trajectory

Selectively Expand Overseas Market

Potential export markets in Africa

and especially high-end markets like

Continued Improvement in Operational Efficiency to Drive Margins

EBITDA Margin (%)

Strong 20%+ Revenue Growth over the L5Y

Robust Operating Leverage Translating in Consistently Attractive EBITDA Margins

Source Company Filings

Source Company Filings

Mrs Mai Kieu Lien

Chief Executive Officer and Board Member

• Bachelor/Engineer in Meat and Milk Processing

• Certificate of Leningrad Economic Management

• Certificate of Government Management

Mr Trinh Quoc Dung

Executive Director - Dairy Development

• Engineer of Energy and Automation

Mrs Bui Thi Huong

Executive Director - Human Resources Administration & PR

• Bachelor in Russian language

• Bachelor in Economics

Mr Mai Hoai Anh

Chief Operating Officer and Executive Director – Sales

• Bachelor in Economics

• MBA

Mrs Nguyen Thi Thanh Hoa

Executive Director – Production and R&D

• Bachelor in Milk Processing Technology

Mr Nguyen Quoc Khanh

Executive Director – Research & Development

• Bachelor in Chemical Technique and Foods

• Bachelor in Business Administration

• Master of International Commerce and Finance

Mrs Ngo Thi Thu Trang

Executive Director – Project

• Bachelor in Finance - Accounting

• MBA

Mr Phan Minh Tien

Executive Director - Marketing

• Bachelor in Business Management Institute

Mr Tran Minh Van

Executive Director - Production

• Bachelor in Engineering

• Bachelor in Business Administration

• Bachelor of Law with major in commercial laws

Section 3 – Financial Review

Attractive Sales Growth with Strength in Volumes

Source Company Filings

Robust Sales Growth through the Cycle

Source Company Filings

Strong Operating Leverage Driving Superior Margins

Average Inventory Days Increased to 56 in 2015 Average Receivable Days Decreased to 19 in 2015

Average Payable Days Increased to 31 in 2015 Stable Cash Conversion Cycle Stable at ~40 in the L5Y

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Prudent Working Capital Management

Notes

1 Inventory turnover days and trade payable days assuming average of beginning and ending balances divided by cost of goods sold and multiplied by 365

Prudent Working Capital Management

Source Company Filings Source Company Filings

Notes

1 Exchange rate of VND22,260 per US$1.00 as of 14 October 2016

2 Includes cash and cash equivalents and short-term financial investments

30/06/2016Gross Debt

Capex as % of Net Revenue Remained Low at 2.7% in 2015

Source Company Filings

Improved Capital Intensity over Time

Q&A

Appendix

Income Statement Summary

Source Company Filings

Financial Summary

Notes

1 Exchange rate of VND22,260 per US$1.00 as of 14 October 2016

2 EBITDA = Net Revenue – COGS – SG&A + Depreciation & Amortization

3 EBIT = Net Revenue – COGS – SG&A

Balance Sheet Summary

Source Company Filings

Financial Summary (Cont’d)

Notes

1 Exchange rate of VND22,260 per US$1.00 as of 14 October 2016

2 Includes cash and cash equivalents, and short-term financial investments

3 Includes accounts receivables from customers and allowance for doubtful debts

4 Includes inventories and allowance for inventories

Balance Sheet Summary (Cont’d)

Source Company Filings

Financial Summary (Cont’d)

Financial Summary (Cont’d)