#1Vinda International Holdings Limited (Incorporated in the Cayman Islands with limited liability) (Stock code: 3331) 2019 Annual Results Healthy Lifestyle Starts with Vinda Vinda#23 2 Chairman's Highlights 1 Outstanding financial performance • • Significant increase in profitability (GPM & NPM) Double-digit organic revenue growth 1 Vinda Favourable growth across different segments • • Strong growth momentum in Tissue segment (in particular, premium products) Strengthened market presence in Personal Care All distribution channels recorded better than expected growth (most remarkable growth in e-commerce) New significant milestones Achieved localised production of China personal care products • South East Asia regional hub in Malaysia. 1 YoY growth at constant exchange rate 2#3Financial Highlights Vinda#4Revenue Growth Total Revenue (HK$M) 11.6%1 19% Revenue Mix (%) 2018 18% Vinda 2019 82% 81% 16,074 14,879 Tissue Personal Care 2018 2019 1 YoY growth at constant exchange rate: 11.6%, YoY growth at reported rate: 8.0%. Maintained strong growth in all regions particularly in mainland China Mainland China revenue organic growth achieved 12.5% Solid volume growth 4#5Revenue by Channels 29% 2019 25% 31% 25% 15% • Traditional channels (i.e. Distributors) • B2B (i.e. Corporate client) • Key accounts (i.e. Hypermarkets, Supermarkets) E-commerce • Vinda 34% 2018 25% 16% Double-digit sales growth in e-commerce China e-commerce contributed more than 37% of China sales 50#61000 900 800 700 600 500 400 Gross Margin Expansion Gross Profit (HK$M) Gross Profit Margin (%) 4,187 2018 19.1% 4,985 Pulp Price Movement 2019 Long Fibre Short Fibre Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 2.9ppts 31.0% 28.1% 2018 2019 Vinda Significant improvement in GPM: Decrease in pulp price • Portfolio mix enhancement Strong growth of premium products 6#7Operating Profit & EBITDA Operating Profit (HK$M) EBITDA (HK$M) 1,020 2018 53.9% Operating Margin (%) 6.9% 1,570 2019 9.8% 1,962 2018 36.5% 2,678 EBITDA Margin (%) 2019 13.2% 16.7% 2018 2019 2018 2019 Vinda 7#8Net Profit & Dividend Net Profit (HK$M) 649 2018 75.3% 1,138 Net Profit Margin (%) 2.7ppts 2019 Basic Earnings Per Share (HK cents per share) 75.2% 95.3 54.4 2018 2019 Total Dividend (HK cents per share) 28.0 Vinda 7.1% 20.0 4.4% 21.0 Proposed final dividend 14.0 6.0 7.0 Interim dividend 2018 2019 2018 2019 8#9Segment Performance Tissue 13.3%1 Personal Care Vinda Revenue (HK$M) 12,111 13,254 2,767 4.4%¹ 2,820 2018 2019 2018 2019 31.4% 30.4% 29.1% Gross profit margin 27.6% (%) 2018 2019 2018 2019 Segment results margin* (%) 11.6% 8.1% 8.0% 6.6% 2018 2019 2018 2019 Segment profit before amortisation of trademarks, licenses & contractual customer relationship 1 YoY growth at constant exchange rate 9#10SG&A SG&A as a % of Sales Vinda 21.1% 21.3% 5.1% 5.3% 湿水不易破 维达超韧大升级 16.0% 16.0% 2018 2019 Administrative expenses ratio Selling & marketing expenses ratio Vinda TENA 添學 indu 讓摯愛自主自理 延續一家快樂時光 Strong 淫水不易破 最受用家及 |照護者推薦| Vinda 成人紙尿褲品牌。 MEN 拿夜用型 每日用型 你輕巧型 女士專用 男士專用 Prioritised by investing in premium products Optimized deployment of marketing resources Disciplined cost control ·聚划算·金次聚日x 學 Tempo得宝欢聚日高定工坊 精致品位 纸定Tempo Tempo得宝德国高端纸巾品牌,始于1929 Tempo 陈伟霆 10#11Lower Effective Tax Rate & Effective Interest Rate Effective Tax Rate (%) Effective Interest Rate (%) 4.2% 4.1% 18.6% 17.0% 2018 2019 2018 2019 Vinda As at end of 2019, we had 60% of our borrowings in RMB (2018: 70%) 11#12Key Indicators (HK$M) Debtors turnover days1 Creditors turnover days² Finished goods turnover days³ Working capital to sales ratio4 (HK$M) Cash and cash equivalents Total debt Net debt Net gearing ratio Net debt/EBITDA Vinda As at 31 Dec 2019 As at 31 Dec 2018 42 43 90 87 46 49 4.5% 4.6% As at 31 Dec 2019 As at 31 Dec 2018 460 574 4,3395 5,245 3,8795 4,671 39.1%6 53.5% 1.45 2.4 1 Multiplying 12-month average account receivables by 360 days and dividing the result by the revenue for the last 12 months 2 Multiplying 12-month average account payables by 360 days, and dividing the result by the cost of sales for the last 12 months 3 Multiplying 12-month average finished goods by 360 days, and dividing the result by the cost of sales for the last 12 months 4 Total working capital (excl. cash & cash equivalents)/ total revenue 5 Including HK$183M lease liabilities 6 Net gearing ratio excluding lease liability. If included lease liability, net gearing ratio at end of 2019 was 41.0% 12#13Environmental, Social & Governance 2 Health & Safety 1 Mainland China 2019 2018 Malaysia Safety seminars 2,149 1,505 LTA (case) LTA (case) 14 14 Taiwan, China 2019 2018 LTA (case) 0 0 Green Production Mainland China • Avg. overall energy consumption per ton of paper (ton of stand coal) • CO2 emission (per 10,000 tons of product) • Water recycling rate • Wood pulp sourcing Green Loan in 2019 1st FMCG company in HK to secure a green loan Vinda 2019 2018 3 1 LTA: Lost Time Accidents 2019 2018 0.331 0.311 10,694 10,726 >95% >99% environmentally certified ¹below national standard upper limit of 0.42 HKQAA Green Finance Certificate Obtained the "Green Finance Pre-Issuance Stage Certificate" issued by HKQAA Secured a HK$300 million green loan The green loan will be used for eligible green projects, including energy efficiency, prevention and control of pollution, resource conservation and recycling, etc. Titanium Award Corporate Governance Investor Relations The Asset ESG Corporate Awards 2019 Highly Commended Initiative Environmental Responsibility The Asset ESG Corporate Awards 2019 13#14Production Capacity Plan Beijing China Pinggu Liaoning China Anshan Shandong China Jinan Vinda Tissue annual designed capacity 1.25 M tons (2019) + approx.10% (2020-2021) Sichuan China Deyang Hubei China Xiaogan Guangdong China Jiangmen (Xinhui, Shuangshui, Sanjiang) Guangdong China Yangjiang Zhejiang China Quzhou (Longyou) Taiwan China Kaohsiung +30,000 tons in 19Q2 in Hubei & +30,000 tons in 19Q3 in Hubei -30,000 tons (discontinued operation of an old and high-energy consuming machinery) in 19Q2 in Xinhui In the future CAPEX focus on premium tissue capacity Personal Care facility SEA Hub in Malaysia focus on cost reduction and capacity expansion Malaysia No.1 factory No.2 factory 14 14#15Summary of Key Opportunities - 1/2 • • Continuous growth opportunities Tissue market: Low per capita consumption, premiumization and Professional Hygiene Feminine: Driving towards double digit share Incontinence: Catering for the aging demographics Leveraging channel strength with focus on e-commerce • Consumer relevant innovations Excellent customer and consumer insight • Focused innovation strategy and execution Vinda 15#16Summary of Key Opportunities - 2/2 Profitability enhancement • Portfolio management in tissue with focus on premium • ESG • Higher contribution from Personal Care Continuous cost management Focus on sustainability: certified fiber, emission and waste reduction Developing our people: health and safety, training & career development Excellent corporate governance: code of conduct, transparency & compliance Vinda 16#17Vinda Appendix 17#18Leading Market Positions Mainland China 18.1% No.1 Tissue1 Vinda Tempo TORK Hong Kong, China 36.5% Taiwan, China 29% Germany 多康 No.1 Tissue² נורך Tempo Vinda TORK Vinda No.2 Incontinence³ 添寧 『包大人 TENA Dr. P Notes: 1. Kantar, value share in 2019 2. Nielsen, KA value share MAT Aug 2019 3. Nielsen, volume share YTD Nov 2019 123456 4. Internal estimates, value share, YTD Oct 2019 5. Internal estimates, value share, YTD Sep 2019 Kantar Worldpanel, value share YTD at 3 Nov 2019 Vinda No.1 Incontinence4 Malaysia 55% TENA 包大ãoxP 39% No.1 Baby Care6 Drypers No.1 Feminine6 30% Libresse No.1 Incontinence5 Singapore 74% TENA 包大人orP 18#19Financial Highlights Summary Vinda (HK$M) Revenue 2019 2018 YOY 16,074 14,879 +8.0% Constant exchange rate 11.6%1 +7.8% Gross profit 4,985 4,187 +19.1% Gross margin Operating profit Operating margin 31.0% 28.1% +2.9ppts 1,570 1,020 +53.9% 9.8% 6.9% +2.9ppts EBITDA EBITDA margin 2,678 1,962 +36.5% 16.7% 13.2% +3.5ppts Net profit 1,138 649 +75.3% Net margin 7.1% 4.4% +2.7ppts Basic EPS (HK cents) 95.3 54.4 75.2% Proposed total dividend per share (HK cents) 28.0 20.0 40.0% 1 Growth at constant exchange rate 19#20Quarterly Financial Highlights Revenue (HK$M) & YOY (growth at constant exchange rate) Vinda +11.5% +11.7% +13.4% +12.7% +14.6% +6.8% +4.7% +3.0% 3,781 3,553 3,413 4,131 4,079 3,812 3,838 4,346 2018Q1 2018Q2 Gross Profit Margin (%) 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 36.0% 31.0% 31.3% 30.0% 28.5% 27.1% 26.3% 26.3% 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 EBITDA Margin (%) 15.1% 2018Q1 19.6% 15.4% 15.0% 16.8% 14.8% 11.9% 10.3% 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 Operating Margin (%) 8.8% 13.2% 8.8% 3.7% 6.1% 8.3% 7.6% 9.6% 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 20#21Q&A Vinda#22Disclaimer Vinda Information contained in our presentation is intended solely for your personal reference and is strictly confidential. You may not reproduce, redistribute or pass on, directly or indirectly, this presentation to any other person or publish, in whole or in part, for any purpose. The distribution of this presentation may be restricted by law, and persons who come into possession of this presentation should inform themselves about, and observe, such restrictions. Information in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company and/or its business. We make no representation or warranty, express or implied, regarding and no reliance should be placed on the fairness, accuracy, correctness, reasonableness or completeness of, or any errors or omissions in, any information, opinions, estimates, forecasts and projections contained herein. 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