Escolar Documentos
Profissional Documentos
Cultura Documentos
Disclaimer
2
Presentation Team
3
Agenda
Results Highlights
Financial Overview
Business Overview
Future Strategies
4
Results Highlights
5
Overview of 2010 Interim Results
6
Segment Breakdown
Revenue
Liquid milk segment:
Change: • Revenue up 21.1% to RMB12,462.2M
RMB12,097.6M RMB14,434.2M + 19.3%
• Focused on female and children
1.3% - 0.3 1.0% - 1.0% markets and introduced more products
100.00% with high-end functions
13.7% - 1.1 12.6% + 9.9%
Ice cream segment:
80.00% + 1.4 • Revenue up 9.9% to RMB1,821.1M
• Optimised gradually the production
lines to include low-end, mid-range and
60.00%
high-end ice-cream brands, set a long-
85.0% 86.4% + 21.1% term branding strategy to secure
sustainable development for all
40.00%
product lines
20.00%
Other dairy product segment:
• Revenue was RMB150.9M , accounting
0.00% for 1% of the Group’s revenue
1H 2009 1H 2010
Liquid Milk Ice Cream Other Dairy Products
7
Liquid Milk Segment
Revenue of Liquid Milk UHT Milk:
Milk
Change: • Revenue up 20% to RMB7,604.6M
RMB10,287.5M RMB12,462.2M + 21.1% • Launched a new product Milk Deluxe Chunxian
• Xin Yang Dao Low-Lactose Milk was awarded a
9.7% 10.4% + 30.2% gold prize at the “China International Nutrition &
+ 0.7
100.00% Health Industry Expo Shanghai”
• Upgraded Future Star Milk garnered an
Innovative Product Award at SIAL and a Monde
80.00% Selection prize by Belgian International Institute
28.7% - 1.1 28.6% + 20.6%
Milk Beverage:
Beverage
• Revenue up 20.6% to RMB3,562.4M
60.00%
• Successfully launched a new generation of milk
- 0.6 beverages with fruit fiber Fruit-fiber Milk, and a
new series of high-end fruit flavoured milk
40.00% beverages Nai Te
61.6% 61.0% + 20.0%
Yogurt:
20.00% • Revenue up 30.2% to RMB1,295.2M
• High-end yogurt product Champion obtained
national certification as a healthy product; the
0.00% Red Jujube Yogurt and Grain Yogurt were deeply
1H 2009 1H 2010 welcomed by consumers
9
2010 Interim Financial Overview
RMB ’M
1H 2009 1H 2010 Change
The net profit margin was decreased to 4.3%, but comparable with FY2009:
Improved resources allocation and utilization efficiency by optimizing its operation
and management system
Rise in price of raw materials, transportation, lease and other distribution costs
10
Effective Cost Control
11
Leverage and Financial Resources
(RMB ’M)
10% 1800 1,748.3
1600
7.6%
8% 1400
6.3% 1,168.7
1200
6%
1000
800
4%
600
2% 400
200
0% 0
2009/12/31 2010/6/30 1H 2009 1H 2010
(Days)
Receivables(1) Inventory Turnover
(Days)
Payables Turnover(2)
(Day)
60 54.8
47.4
40
20
0
1H 2009 1H 2010
(2)
Payable Turnover = [(Average balance of Trade and Bills payables) / Cost of Sales] x No. of days 13
Business Overview
14
Branding and Marketing
Put forward “High Quality for a Green Life” brand proposition. Being the 1st
China’s dairy company to go-green, complemented by a series of branding and
marketing activities
Initiated a “Special Consumer Reception Month” campaign where the CEO met
with consumers in person, and allowed them to witness the production of
MENGNIU products with natural ecological quality
Ranked 16th
Most Reliable Most
among dairy
companies in Food Brand Popular Food
the world
15
Go-Green Strategy
Green-themed promotion campaigns effectively highlight the green ecological image
of MENGNIU and commitment to social responsibility
Launched “China Ecoranch” programme and created “China Ecoranch Fund" to
arouse social awareness on protection of pasture lands and ecosystem, as well as
to promote development of ecologically friendly milk services
Lower energy consumption, minimize waste emissions, use wastewater treatment
and methane-to-energy facilities as well as recycle used packages as part of efforts
to achieve green operations
Embarked on large-scale eco-activity campaign “Eco-Action for Green China”
Promotes concept of green living through activities like “Ecological Signature” and
“Carbon Test”
16
Quality Control
17
Production and Technological R&D
18
Future Strategies
19
Future Strategies
20
Future Strategies
22