#1♡ 蒙牛 Ⓡ CHINA MENGNIU DAIRY COMPANY LIMITED (2319.HK) 2021 Annual Results March 2022 不添加盟 悠置 |荔德高利羊奶粉 鳳 蒙牛 双原生 纯 甄路 REXAND 【品控甜 #100ml 3.2 净含量:250ml 【现代妆场 鲜午 纯牛奶 *瑪哺恩 菁珀 奶酪控。 MC LC-37 蒙牛 纯牛 World-Class Quality Born For Greatness#2Legal Disclaimer 蒙ギ The presentation is prepared by China Mengniu Dairy Company Limited (the "Company") and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects. This presentation contains projections and forward looking statements that may reflect the Company's current views with respect to future events and financial performance. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.#3Management Team Mengniu Lu Minfang TM 夢半 Chief Executive Officer & Executive Director Wang Yan Vice President & Executive Director Zhang Ping Chief Financial Officer Gao Fei Senior Vice President Wen Yongping Vice President Luo Yan Vice President Li Pengcheng Vice President Chen Yiyi Vice President Chris Kwok Yashili Yan Zhiyuan Chen Limin Financial Controller & Company Secretary Chief Executive Officer & Executive Director Chief Financial Officer#4TM ♡ 蒙牛 Ⓡ Financial Overview#5Financial Highlights TM 194" 蒙ギ 2019 2020 2021 YOY RMB million Revenue (1) 79,030 76,035 88,141 15.9% Gross Profit 29,679 28,629 32,390 13.1% Gross Margin 37.6% 37.7% 36.7% -1.0ppt Operating Profit 4,346 3,514 4,862 38.4% Operating Margin 5.5% 4.6% 5.5% 0.9ppt EBITDA 7,405 5,779 7,980 38.1% EBITDA Margin 9.4% 7.6% 9.1% 1.5ppt Profit Attributable to 4,105 3,525 5,026 42.6% Owners of the Company Net Profit Margin 5.2% 4.6% 5.7% 1.1ppt Basic EPS (RMB) 1.049 0.897 1.274 42.0% Note: (1) 2021 included revenue contribution of RMB1,117 million from the consolidation of Aice, a leading ice cream brand in Southeast Asia from April to Dec, and net revenue of RMB421 million from Burra Foods from Nov to Dec.#6Revenue Breakdown by Segments TM 蒙ギ 2020 2021 YOY % of Revenue YOY RMB million Liquid Milk 67,751 76,514 12.9% 86.8% -2.3ppt Ice Cream (1) 2,634 4,240 61.0% 4.8% +1.3ppt Milk Formula 4,573 4,949 8.2% 5.6% -0.4ppt Others (2) 1,077 2,438 126.3% 2.8% +1.4ppt Total 76,035 88,141 15.9% 100.0% Note: (1) 2021 included net revenue contribution of RMB1,117 million from the consolidation of Aice, a leading ice cream brand in Southeast Asia from April to Dec; (2) 2021 included net revenue of RMB421 million from Burra Foods from Nov to Dec.#7Cash Flow And CAPEX Net Cash Inflows from Operating Activities RMB million 5,207 5,348 7,545 TM ♡蒙牛 Ⓡ Capital Expenditure - Property, Plant & Equipment RMB million 3,252 4,414 6,220 2019 2020 2021 2019 2020 2021#8SG&A Expenses Selling & Distribution Expenses RMB million ♡蒙牛 Ⓡ Admin Expenses RMB million 28.3% 27.2% 26.6% 4.3% 4.1% 4.0% 23,488 21,541 18,452 2019 2020 Expenses % of revenue 3,524 3,133 2,905 2021 2019 2020 2021 Expenses -% of revenue#9Operational Efficiency Indicators Inventory Turnover (Days) ♡ 蒙牛 Ⓡ Receivables Turnover (Days) (1) Payables Turnover (Days) (2) 40.8 39.3 36.5 ill 2019 2020 2021 16.7 15.8 14.8 2019 2020 2021 (1) Receivables Turnover = (Average Balance of Trade and Bills Receivables / Revenue) x Number of Days (2) Payables Turnover = (Average Balance of Trade and Bills Payables / Cost of Sales) x Number of Days 56.6 54.9 52.1 2019 2020 2021#10TM ♡ 蒙牛 Ⓡ 2021 Business Review#112021 Business Review PO ♡蒙牛 Ⓡ • • The rise of health awareness stimulated dairy consumption and product upgrades Growth in demand for dairy products drove an increase in raw milk prices 2 Effective measures taken to manage and digest the pressure of rising raw milk prices, maintaining stable margins 1010L 010 Focusing on dairy products, accelerated development in segments including cheese, fresh milk, adult formula, driving sales growth and product upgrades AIN • • 5 • Capitalizing on consumption upgrade trends, driving branding and product upgrades Expanding omnichannel marketing, accelerating the development of emerging channels and channel penetration Acceleration of the digital transformation initiatives Promoted digital upgrade, with "consumers, channels, supply chain and management" going online Fully grasping industry opportunities, executed on strategic upgrades, achieveded the fastest growth in five years#12Room Temperature Business Records Double- 蒙牛 digit Growth for Five Consecutive Years . • 1 Accelerated growth of premium room temperature brands, continued to outperform the market Net revenue from room temperature liquid milk up ~16% yoy, growth accelerated and continued to lead the industry Continued RTM development, deepened channel segmentation and penetration, continued to strengthen channel and sales terminals control Focusing on digital transformation and premium products upgrade and innovation, strong growth of the new dessert organic pure milk and digital membership operations drove 33% growth for Milk Deluxe • Continued optimization of Mengniu pure milk product mix, with growth over 23% 主特仑苏门 2022 FA怖 1324:250m 纯牛奶 【特仑苏) L #2215 【臻享] 浓) 醇浓 、牛奶 、牛奶 39% 净含量:250ml 30 【特仑苏 [ 更好有机·营养」 甄 ·甄綠 以得天独厚生态优势 成就有机营养新高度 品轻负 北控甜 沙漠有机 就是更好有机 有机营养新升级。 又不是所有牛奶都叫特仑苏、 (特仑苏广 ( (特 TM#13Fresh Milk & Cheese Businesses Maintain Strong Growth Momentum • • • 2 Fresh milk business continued to expand market share Net revenue up 85% yoy • Market share increased from 11.1% to 13.4% No. 1 sales in JD.com, Sam's Club and Yonghui Superstore Shiny Meadow grew 80%, strengthened its leading position in the premium fresh milk market Continued product innovation, launching Shiny Meadow A2 fresh milk, 4.0g milk protein fresh milk ♡ 蒙牛 Ⓡ SHINY MEADO 每日鲜语 高端鲜奶 新标杆 优于欧盟标准生牛孙* 数百万精英家庭的品质。20 04 鮮牛奶 • Accelerated development of digitalized supply chain, completing basic layout of "fresh" capabilities # * *TURN TO ♡ 蒙牛 Ⓡ 自由式滑雪 世界冠军 谷爱凌 冰雪迎新年 奶酪助成长 • . 3 41% net revenue growth for cheese Launched ASCX additive-free organic cheese sticks and new room temperature leisure cheese products, exploring new consumption scenarios Exploration of opportunities in market segments such as new food services, new bakery and new tea beverages, offering professional dairy product solutions Completed strategic investment in Milkground's share placement 13 in July, developing leading position in the cheese market#14Breakthrough for Ice Cream & Chilled Product Businesses with Strong Results 【优益C适合中国人的益生菌 优益口 很红退中国 XC LC-37 500 -163.C 4 蒙ギ Chilled product business outperformed market Net revenue grew ~3% yoy while the market was down 7.6%, expanded lead in market share Promoted probiotics products, Yoyi C grew ~22%, LC37 series grew 98% Continued to upgrade Champion yogurt product portfolio, launched zero sucrose and reduced sugar new products, saw over 5% growth for the brand Exploration of new sales models and channels: collaborated with Sam's Club for the 1st time to provide new customized yogurt products, direct operations at some outlets Improvement in efficiency through refined channels and brand investment • • . • 5 Innovation of Ice Cream Products, promoted through multiple channels 61% yoy growth in net revenue, with domestic business growing 19% Innovation and upgrade for the entire product lines of brands such as Suibian, Mood for Green, and Deluxe, lifting gross margin significantly Expansion of modern and new retail channels, further strengthened sales infrastucture Strategic investment in Aice, a leading ice cream brand in Southeast Asia in March 2021, to further expand the Southeast Asia market 兰圣雪 DELUX9 绝 花機 新一代高端冰淇淋 韵力 LESS IS MORE 越纯粹 越珍贵#15Milk Formula Business Accelerates Development of Sub-segments . 6 Strong growth in adult milk powder for Yashili, outperforming market Net revenue grew 21.5% yoy TM 194" 夢半 • 76% growth in adult milk powder revenue, becoming a new growth driver • Focusing on the development of the Reeborne brand, continued to upgrade and optimize the infant formula product portfolio • Launching premium adult functional milk powder products against the backdrop of aging population, building a leading position in the industry Strengthening product development for specific needs, launched M8 children's growth milk formula 蒙牛 啓瑞 高端中老年奶船全国销量领先* 补充营养新选择 高端奶粉选悠瑞* (2021*** BELLAMY'S 真有机 我只选贝拉米 源自塔斯马尼亚—世界尽头的真实有机牧场 CAN 04490674) #IGERS. 3.SATUR 17ERBANS 三维国际有机认证 • 7 Bellamy's actively expanded its brands and channels to strengthen its foundation Accelerated deployment of domestic cross-border channels, increased market share in cross-border e-commerce channels; Australian daigou channels affected by epidemic ⚫ Chinese-labelled organic Equi-pure infant milk formula continued to promote offline channels deployment and strengthened its channel foundation Launching the new brand positioning and advertisements of "True Organic", to increase exposure and popularity of the brand and create momentum • Established the global innovation unit to integrate global resources, refine product structure and accelerate development of new products 15#162025 ESG Strategy TM ♡ 蒙牛 Ⓡ GREEN ► Vision: Defending the common health of people and the Earth Mission: More nutritious products, better lives, a more sustainable Earth Governance - Sustainability O Responsibility - Common Prosperity ● Environment - Carbon Net-zero ○ Ecosystem - Collaborative & Accountable O Nutrition - Supreme & Inclusive 500+ capital market ESG indicators 178 Mengniu sustainable development indicators 15 sustainable development issues & 28 initiatives 5 sustainable development pillars GREEN Sustainable development strategy 16#17Comprehensive Execution of ESG Strategy Environment Society TM #4" Completed group carbon audit, launched the first independent carbon emission data management system in the industry, will announce carbon-neutral goals & roadmap in 1H2022 Passed audit by UNGC, and became an official enterprise member The 1st Chinese dairy company to join the global "Pathways to Dairy Net Zero (PDNZ)" climate initiative China Shengmu and Modern Dairy, Mengniu's two major raw milk suppliers, have commenced carbon-neutral strategic initiatives Room temperature & chilled product businesses started the PP turnover boxes project, replacing traditional corrugated boxes The inclusive nutrition project donated 4.8 million boxes of student milk to underdeveloped regions in the country Commenced employee voluntary activities including reducing food waste, checking in with empty plates, and cleaning beaches Won the "Most Comfortable Workplace 2021" award, with training programs to help employees grow and develop Held 50 training sessions for farms, covering all partner farms, to help farms reduce costs and increase efficiency • • • • Governance Included ESG goals in management KPIs Board re-composition adding a female Director and improving the diversity of independent Directors Added 2 female senior management members, which now accounts for 25% of senior management • Further improved the Company's compliance governance system Established ESG strategies and implementation review mechanism, with the Board and the management deeply involved in ESG governance#18Wide Recognition of ESG Efforts TM ♡蒙牛 Ⓡ 01 Won the "China Charity Award", the highest government award in the philanthropic field of China Efforts in low-carbon development recognized by China Electronic Energy-saving Technology 03 Association, invited to participate in the formulation of General Rules for Corporate Carbon Label Evaluation Five factories were awarded the title of "National Green Supply Chain Management Enterprise". 02 Currently, has 22 national green factories in total MSCI ESG Rating upgraded from "BB" to "BBB" 04 Included in the HSI Enhanced Index & the HSI 05 Enhanced Select Index, effective from 7 March 2022 Ranked 1st among Chinese dairy enterprises in the Collar FAIRR Protein Producer Index 参编证书 内蒙古蒙牛乳业(集团)股份有限公司: 青单位为中国电子节能技术协会低碳经济专业委员会《企业 磁标签评价通则》(标准编号: T/DZJN002-2021)号填单位。 书缘人员;张占裔、黄常伟、为行业低碳发展做出了积极贡献。 特照此证! 中华慈薈奖 06 18.#19TM ♡ 蒙牛 Ⓡ 2022 Strategies & Outlook#20Proactively Grasps Industry Opportunities ♡蒙牛 Ⓡ Macro Trends Increasing health awareness of consumers benefits dairy products, with a forecasted CAGR of 6%-8% between 2021-24 for the dairy industry Strong dairy product demand driving raw milk prices to remain elevated Continued aging population, huge potential of "silver economy" ர் Our Strategies Strengthening digital and overall channel management, grasping online and offline opportunities Accelerating development of categories such as fresh milk, cheese and organic milk Proactive costs control Improving product mix and driving product portfolio upgrade Collaboration with strategic suppliers to strengthen the layout of milk sources Strengthening product portfolio and marketing investment of middle-aged and elderly formula The cheese market is growing rapidly under the backdrop of consumption upgrade of dairy products, low penetration of cheese consumption, and emerging consumption scenarios like home baking Accelerating innovation of foodservice and retail cheese products Empowering Milkground and realize comprehensive synergies 20#21Continues to Build up Core Competence - Creating A New Mengniu TM 蒙半 R&D innovation capabilities Brand Power RTM Digital transformation G Milk source control M&A integration Organization assurance 21#2222-Year-Old Mengniu Renews Logo, Commences Branding Upgrade ♡蒙牛 Ⓡ Remembers Our Origin New TM MENGNIL 図 蒙牛 門 蒙牛 Ⓡ 1999 2021 Embarks on A "New" Journey Chinese characters represent the core, the green color represents the grasslands of Inner Mongolia; Breaking through boundaries, surpassing ourselves with a firm footing, looking to the stars, from grassland to the world PO Created by Rob Janoff, logo designer of Apple Inc. "Green grassland" as the new logo's basic color, represents nature, health, and quality; indicating that Mengniu will not forget its original intention to go from the grasslands of Inner Mongolia towards the world "Yellow River - the Mother River" represents Mengniu's development in the golden milk source belt, bringing high quality to consumers with the mission of "every drop of nutrition makes every life thrive" A "Cow's horn" is the spiritual symbol of Mengniu, represents the corporate spirit of "born to excel, constantly strive for self- improving" 22#23Creating A New Mengniu in Five Years 9 4" 牛 TM First- Choice International Responsibility Spirit Technology 23-#24TM ♡ 蒙牛 Ⓡ Q&A