China Mengniu Dairy Company Limited · HKEX:2319
China Mengniu Dairy — Investor Presentation (June 2023)
27 slides from China Mengniu Dairy's investor presentation, June 2023
Slide 1: Corporate Presentation
C H I N A M E N G N I U D A I R Y C O M PA N Y L I M I T E D (2319.HK) Corporate Presentation June 2023
Slide 2: Legal Disclaimer
Legal Disclaimer 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 invest
Slide 3: Company Overview
Company Overview 3
Slide 4: Mengniu Today
Mengniu Today A leader in the China dairy industry, focuses on providing nutritious, healthy and delicious products to Chinese and global consumers. ~13mn tons annual 2022 Revenue: Founded in 1999 Global Dairy No. 7 68 global factories production capacity RMB 92.6bn 4
Slide 5: Awards & Recognitions
Awards & Recognitions Ranked No.7 in the “Global Dairy Top Ranked among Brand 10” list published by Finance Global 500 Rabobank A constituent of Hang Seng Index, the 1st blue-chip Chinese dairy product manufacturer Ranked 26th among A constituent of HSI ESG “Top 100 Most Valuable Enhanced Index and
Slide 6: Products diversity
Products diversity Provides diversified products, including liquid milk, ice cream, milk formula and cheese, etc. 2022 Sales Breakdown Other Products RMB 4.8 billion (5.2%) Milk Formula Liquid Milk RMB 3.9 billion RMB 78.3 billion (4.2%) (84.5%) Ice-cream RMB 5.7 billion (6.1%) 6
Slide 7: Investment Highlights
Investment Highlights 7
Slide 8: Investment Highlights
Investment Highlights Leader in a High quality milk sources Premium brands growing industry & products Comprehensive sales Management with strategic Excellent financial performance channels vision & shareholder returns 8
Slide 9: Leader in a Growing Industry
Leader in a Growing Industry 2021 Liquid Milk Consumption per capita (kg) 2021 Cheese Consumption per capita (kg) 01 Increasing consumers health awareness 140 20 120 driving demand for dairy products 100 80 15 10 60 40 5 20 0 0 02 Large room for growth for penetration • Liquid milk：liquid milk consu
Slide 10: Strong Product Portfolio to Capture Opportunities
Strong Product Portfolio to Capture Opportunities Room Temperature Milk, Yogurt & Beverage Liquid Milk Ice Cream Infant Formula Cheese Low Temperature Milk, Yogurt & Lactobacillus Drinks 10
Slide 11: Forward-looking Development of High Quality Milk Sources
Forward-looking Development of High Quality Milk Sources May 2013 • The first mover in the dairy industry to develop • 33 dairy farms high quality milk sources through strategic investment • 136,000 heads of dairy cows • Major shareholder of Modern Dairy, a leading • 1,777 tons of fresh raw milk and
Slide 12: Leading Position across Categories Driven by Innovation & Premiumization
Leading Position across Categories Driven by Innovation & Premiumization • Mengniu continues to innovate around product differentiation and premiumisation through launching a variety of new products in various categories such as No. 1 No. 1 liquid milk, ice cream, milk formula and cheese, in sales,
Slide 13: Powerful Branding through Strategic Partnership with Top-tier IPs & Consumer Engagement
Powerful Branding through Strategic Partnership with Top-tier IPs & Consumer Engagement Strategic Partnership with Top-tier IPs Strong Consumer Engagement World Cup Milk Deluxe Online Mini Program Membership Club Tree-planting IP Resources 13
Slide 14: Nationwide Sales Channels Development & Optimization
Nationwide Sales Channels Development & Optimization Rapid Omni-channel Development to Tap Market Potential • Nationwide sales channels, Leading in liquid milk sales on e- continuous channel expansion commerce platforms and emerging and market penetration sales channels Offline Online • Commenced th
Slide 15: Market-oriented Performance Culture
Market-oriented Performance Culture Market-oriented management team served Mengniu for 6-20 years with Mengniu diverse background, rich industry experience, forward-looking strategic veterans thinking, and strong execution capabilities. Empower & inspire Company culture talents to succeed Creative s
Slide 16: Sustainable Growth with Improving Profit Margin
Sustainable Growth with Improving Profit Margin Revenue EBITDA Net Profit RMB million RMB million RMB million 92,593 9,120 5,303 7.6% 68,977 CAGR 14.1% 14.9% 5,374 CAGR 3,043 CAGR 2018 2022 2018 2022 2018 2022 5.5% 5.9% 5.1% 5.5% 4.6% Operating Profit Margin 2018 2019 2020 2021 2022 Target to furthe
Slide 17: Outstanding Shareholder Return
Outstanding Shareholder Return Mengniu Share Price vs. HSI (1/1/2017-30/12/2022) Total Shareholder Return (1/1/2017-30/12/2022): >200% 0.381 0.402 0.268 0.181 0.181 0.12 2017 2018 2019 2020 2021 2022 Mengniu HSI Dividend per Share (RMB) Data source: Bloomberg 17
Slide 18: Mengniu's Vision
Mengniu’s Vision 18
Slide 19: Continuing to Build Up Core Competence
Continuing to Build Up Core Competence Milk Source Organization Brand Power RTM Control Assurance R&D Innovation Digital M&A Capabilities Transformation Integration 19
Slide 20: Creating A New Mengniu in Five Years
Creating A New Mengniu in Five Years First-Choice International Responsibility Spirit Technology 20
Slide 21: ESG Strategy & Progress
ESG Strategy & Progress 21
Slide 22: 2025 ESG Strategy – A More Responsible Mengniu
2025 ESG Strategy – A More Responsible Mengniu Governance – Sustainability GREEN Responsibility – Common Prosperity ► Vision: Defending the common health of people and the Earth ► Mission: More nutritious Environment – Carbon Net-Zero products, better lives, a more sustainable Earth Ecosystem – Coll
Slide 23: A More Responsible Mengniu – Establishes Dual-Carbon Goals
A More Responsible Mengniu – Establishes Dual-Carbon Goals 2020 Phase I 2025 Phase II 2030 Phase III 2050 To control the carbon To achieve the peaking of absolute value of To continue to promote 15 key initiatives, with the emission intensity per tonne Scope 1 and 2 carbon emission, and control the
Slide 24: Making Progress Against Our ESG Strategies
Making Progress Against Our ESG Strategies Received MSCI ESG rating of A, 01 the highest in the food industry in China • The HSI ESG Index Won the State Scientific and • HSI ESG Enhanced Index 02 Technological Progress Award by the State Council • Hang Seng Sustainability Corporate Index Won The 11t
Slide 25: Key Takeaways
Key Takeaways 25
Slide 26: Key Takeaways
Key Takeaways Industry • Leader in a growing industry prospects High quality milk sources & • Strong product portfolio to capture opportunities products • Forward-looking development of high quality milk sources Premium • Powerful branding through strategic partnership with top-tier IPs & consumer b
Slide 27: Thanks
Thanks 27
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