Post on 05-Dec-2021
transcript
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The presentation is prepared by China Mengniu Dairy Company Limited(the “Company”) and is solely for the purpose of co rporate communication and general reference only. The presentation is not in tended as an offer to sell, or to solicit an offer to buy or to form any basis of in vestment decision for any class of securities of the Company in any jurisdiction. A ll such information should not be used or relied on without professional advice. T he presentation is a brief summary in nature and do not purport to be a comple te description of the Company, its business, its current or historical op erating results or its future business prospects.
This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company spec ifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentat ion.
Disclaimer
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Presentation Team
Chris Kwok Financial Controller & Company Secretary
Wu Jingshui Executive Director & Chief Financial Officer
Lu Jianjun Chief Administrative Officer
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Overview of 2009 Annual Results
RMB’MFor the year ended 31 December
2008 2009
Revenue 23,865.0 25,710.5 7.7%
Gross profit 4,669.4 6,852.2 46.7%
EBITDA / (LBITDA) (461.7) 1,997.9 N/A
Net profit / (loss) attributable to owners of the Company
(948.6) 1,115.8 N/A
Earnings per share (RMB)- Basic
(0.639) 0.681 N/A
Change in % Point
Recommended a final dividend payment of RMB0.1413 per share for the year
ended 31 December 2009
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Segment Breakdown
88.4%88.3%
10.5%11.0%
1.1%0.7%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2008 2009
+ 0.1
- 0.5
+ 0.4
RMB23,865M RMB25,710.5MYoY Growth:
+ 7.7%
+ 7.9%
+ 2.2%
+ 69.8%
Liquid Milk Ice Cream Other Dairy Products
Revenue
Liquid milk segment: revenue up 7.9% to RMB22,736.2M –strengthened the development of various high-end functional dairy products and implemented market diversification to lead the consumption trend
Ice cream segment : revenue up 2.2%to RMB2,685.1M – focused on the promotion of secondary brands SuiBian and Ice+ and created unique brand image through holding different theme campaigns
Other dairy product segment : revenue up 69.8% to RMB289.2M, representing 1.1% of Group’s revenue
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62.4%65.0%
26.6% 28.1%
8.4% 9.5%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2008 2009
Liquid Milk Segment
UHT Milk Milk Beverage Yogurt
YoY Growth:+ 7.9%
+ 3.6%
+ 21.1%
+ 14.2%
RMB21,068.1M RMB22,736.2M
+ 1.5
- 2.6
Revenue of Liquid Milk UHT MilkUHT Milk: Revenue up 3.6% to RMB14,196.2M - Improved the nutritional content of Breakfast Milk and launched the fortified version of Nutritional Set 6+1 series; Xin Ying Dao remained a flagship product of middle to high end functional milk; Milk Deluxe achieved ideal sales growth; launched upgraded versions of Future Star to expand children market
Milk BeverageMilk Beverage: Revenue up 14.2% to RMB6,387.3M - Enhanced Suan Suan Ruseries; launched Miao Miao Milk to meet rising demand for tasty drink for children; and Youyi C, Active Lactic Acid Bacteria Beverage, led the high-end market for lactobacillus beverages
YogurtYogurt: Revenue up 21.1% to RMB 2,152.7M -Built Champion as the first brand of yogurt; Red Jujube Yogurt targeted to middle-and-old aged consumers; Grain Yogurt set to become a new high-end replacement for conventional meals
+ 1.1
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2009 Financial Overview
RMB ’M
2008 2009
Gross profit 4,669.4 6,852.2 46.7%
Gross profit margin 19.6% 26.7% 7.1 ppt
Net profit / (loss) (948.6) 1,115.8 N/A
Net profit / (loss) margin (4.0%) 4.3% N/A
Improved gross profit and gross profit margin contr ibuted by:� Recovery of sales� Increased portion of revenue derived from high-end functional products � Optimised product portfolio � Stringent cost control measures exercised
Improved net profit and net profit margin contribute d by:� Recovery of sales� Operating expense decreased to a reasonable level, as business operations
resumed to normal
For the year ended 31 December Change in % Point
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Effective Cost Control
For the year ended 31 December
2008 2009
RMB’M % of
Revenue
RMB’M % of
Revenue
Change in %
Point
Cost of goods sold 19,195.6 80.4 18,858.2 73.3 7.1
Total operating expenses 5,926.2 24.8 5,630.3 21.9 2.9
Selling & distribution costs 4,428 18.5 4,653.5 18.1 0.4
Administrative & other
operating expenses
1,498.2 6.3 976.8 3.8 2.5
Finance cost 39.39 0.2 61.15 0.2 -
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Leverage and Financial Resources
36.5%
7.6%
0%
10%
20%
30%
40%
31/12/2008 31/12/2009
(RMB ’M)
(1) Debt to Equity Ratio = Total Bank Loans / Total Equity
Debt to Equity Ratio (1)Net Cash Flow from Operating Activities
586.9
2,131.6
0
700
1,400
2,100
2,800
2008 2009
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Working Capital
6.65.5
0
2
4
6
8
2008 2009
16.2 14.9
0
10
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2008 2009
37.745.8
01020304050
2008 2009
(1) Receivable Turnover = [ (Average balance of Trade and Bills receivables) / Revenue] x No. of days
(Days) (Days)
(Day)
(2) Payable Turnover = [(Average balance of Trade and Bills payables) / Cost of goods sold] x No. of days
Receivables Turnover (1) Inventory Turnover
Payables Turnover (2)
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Branding and Marketing
Implemented various brand value enhancement and marketing activities with “Every Day for Tomorrow” as slogan and heightening consumer awareness of health and nutrition as underlying goal
Launched a series of advertisements, specifically focusing on raw milk supply, quality production, quality control and quality research and development
International Awards
19th in the Report of Global Dairy
Companies 2009
Top 500 Asian Brands
Top 3 dairy producer in Asian for four
consecutive years
China’s Most Valuable Brands
Brand value surged more than Brand value surged more than
50% compared to last year50% compared to last year
Domestic Awards
Top 10 Brands for the Year
The 60 Most Influential Brands
in the 60 Years of the PRC
My favorite Food Brand
Favorite Milk of Beijing’s Residents
Become a milk brand beloved Become a milk brand beloved
by Chineseby Chinese
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Quality Control
Adhering to strict quality control standards
Launched the “Mengniu 360° Panoramic View Website” where, consumers and all sectors of the society can employ high technology to explore Mengniu Industry Park and the operating procedures in every work area
The Group's quality control measures have obtained certifications from fivekey safety regimes: ISO9001 (quality management sys tem), ISO14000
(environment management system),OHSAS18001 (occupat ional health andsafety management system), GMP and HACCP (food safe ty control system),
indicating its well recognized quality control
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Production and Technological R&D
Continued to expand production capacity bringing it to an aggregate of 5.76 million tons a year
Set up a state-of-the-art R&D centre with the objective of creating the “Silicon Valley of Dairy Products” through combining the strengths of 16 dairy R&D institutions around the world
Through collaboration with overseas R&D centres, the Group has imported technologies as yet not developed within China
Established collaborative partner relationships with leading enterprises within a variety of industries.
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Future Strategies
Accelerate the integration of supply chain
Internationalisation of food safety monitoring systems
Globalisation of utilising strategic resources
Efficiently allocate sale resources, improve its domestic sales coverage and accelerate opening ofinternational markets
Strategic partnership with COFCO
Increase weighting of milk source from ranches
Continue to promote standardization of ranches
Promote cooperation with raw milk suppliers and milk collection centres
Strengthen monitoring and guidance on raw milk production
Speed up the development of advanced internationalized dairy farms as well as small and medium ranches
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Future Strategies
Development of high-endfunctional dairy products
Achieve objectives of "Every Day for Tomorrow"
Launch highly enjoyable products with high nutrition value and quality to fulfill the demand of modern consumers for health and nutrition
Strive to become one of the top ten companies in the global dairy industry
Committed to implement a guiding concept of “Eco-friendly, Green, Environment Protection and Recyclable Development”