VIETNAM DAIRY PRODUCTS JSC
I N V E S T O R P R E S E N T A T I O N
J U L Y 2 0 2 1
Important Notice
Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information.Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors whichmay cause the actual results, performance or achievements of Vietnam Dairy Products JSC (“VNM”), or industry results, to bematerially different from any future results, performance or achievements expressed or implied by such forward-looking statementsand financial information. Such forward-looking statements and financial information are based on numerous assumptionsregarding VNM’s present and future business strategies and the environment in which VNM will operate in the future. Becausethese statements and financial information reflect VNM’s current views concerning future events, these statements and financialinformation necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from theseforward-looking statements and financial information.
VNM expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-lookingstatement or financial information contained in this Presentation to reflect any change in VNM’s expectations with regard thereto orany change in events, conditions or circumstances on which any such statement or information is based, subject to compliance withall applicable laws and regulations and/or the rules of the Ho Chi Minh City Stock Exchange and/or any other regulatory orsupervisory body or agency.
This Presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies,where appropriate, as well as market research, publicly available information and industry publications. Industry publications,surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, butthere can be no assurance as to the accuracy or completeness of such included information. While VNM has taken reasonable stepsto ensure that the information is extracted accurately and in its proper context, VNM has not independently verified any of the datafrom third party sources or ascertained the underlying economic assumptions relied upon therein.
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Key Highlights
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Favorable Macro Situation in Vietnam
Diversified Portfolio Leadership
Unique End-to-end Value Chain
Strong Financial Position
Agile Leadership
• Established as Southern Coffee Dairy
Company with 3 dairy factories.
• IPO and renamed to Vietnam Dairy
Products Joint Stock Company in 2003.
• Listed on Ho Chi Minh Stock Exchange
(HOSE) in 2006.
1976
100% State owned enterprise
2003-2006
Go Capitalized
• Largest listed F&B on HOSE ($9B market cap)
• Most valuable brand by Forbes Vietnam ($2.4B)
• No.1 dairy production facilities (15 dairy
factories)
• No.1 dairy cow network (150,000 heads
including Mocchau Milk)
• Nationwide distribution network plus 4
overseas subsidiaries
• Top 40 global dairy producers by revenue
2021+
VINAMILK Today
4
Ha Noi
North
1 Factory
1 Dairy Farm
Central
4 Factories
7 Dairy Farms
South
8 Factories
4 Dairy Farms
Headquarter
Healthcare Clinic
Cambodia
1 Factories
USA
1 Factories
Ho Chi Minh City
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How We Get Here
Corporate Structure
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VINAMILK
Production & Logistics
13 factories in the North, Central, and South
03 sales offices in Ha Noi, Da Nang, and Can Tho
02 logistics enterprises in Ha Noi & Ho Chi Minh City
Cu Chi Raw Milk Center
An Khang clinic
Domestic Subsidiaries & Associates
Vietnam Dairy Cow One Member Co., Ltd. (100%)*
Thong Nhat Thanh Hoa Dairy Cow One Member Co., Ltd. (100%)
GTNFoods JSC (75%)
Vietnam Sugar Joint Stock Company (65%)
Vibev F&B JV Co. Ltd. (51%)
APIS Joint Stock Company (20%)
Asia Coconut Processing Joint Stock Company (25%)
Overseas Subsidiaries & Associates
Driftwood Dairy Holdings Corporation (USA, 100%)
Angkor Dairy Products Co., Ltd. (Cambodia, 100%)
Miraka Limited (New Zealand, 23%)
Lao Jagro Development Xiengkhouang Co., Ltd (Laos, 85%)
* Percentage of Vinamilk’s ownership
Ownership• No foreign ownership limit (FOL) since July 2016
• Largest free float ($3B) for foreign investors
• 3 major shareholders: The State Capital Investment Corporation (SCIC), F&N Group (ThaiBev)Jardine C&C (Victory Platinum)
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SCIC, 36.00%
F&N Group,
20.01%Jardine (Victory
Platinum), 10.62%
Others (free
float), 33.37%
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New “Green Farm” in Quang NgaiThis dairy farm of over 100 hectares has the capacity of 4,000 heads, with the initial investment capital of up to VND 700 billion. It is a part of the eco-friendly farms network “Green Farm” that Vinamilk has been investing in and developing since the beginning of 2021.All content © Vietnam Dairy Products JSC
Investment highlights
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Domestic Champion with
Diversified Portfolio
End-to-End Value Chain
Proven Record of Financial Results
Solid Leadership
Favorable Macro Situation
Favorable Macro Trend in Vietnam
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86%
75%72%
67% 66%
46%
Philippines Vietnam Malaysia Indonesia Thailand Singapore
• The second highest Final consumption
expenditure per GDP in Southeast Asian in 2019.
Source: World Bank
• Vietnam is forecasted to be one of the fastest
growing economies in the world.
7.0
2.9
6.7 7.0
2019 2020 2021F 2022F
Indonesia Malaysia Philippines
Singapore Thailand Viet Nam
Source: Asia Development Bank
Vietnam dairy consumption per capita (CPC) in 2019 was 21.8kg – a 18% lower than regional average – implying sizable room for future growth.
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Source: Euromonitor data
25.721.8
33.5
9.0
42.9
22.326.7
Malaysia Vietnam Thailand Indonesia South Korea China
Kg
per
cap
ital
CPC of each comparable Avg. CPC of comparables
Strong Dairy Demand In Vietnam
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Investment highlights
Domestic Champion with
Diversified Portfolio
End-to-End Value Chain
Proven Record of Financial Results
Solid Leadership
Favorable Macro Situation
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Liquid Milk Yoghurt Condensed Milk Formula Milk
Baby Cereal Plant-based CheeseFruit Juice & Milk Smoothie Ice Cream Power Drink
Since 1976Well-perceived and
Trusted Brands
250 SKUs
All Segments From Pre-natal To The Elderly
Consistently Deliver High Quality And Value
U N R I VAL L E D L E AD E R I N T H E D AI RY C AT E G O RY I N V I E T N AM
Leverage the 44-Year Brand Heritage
Balance Heritage with Innovation
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Refresh the portfolio annually with 10-15 new products
Pioneer The National School Milk Program
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• Rollout year: 2016 under Degree 1340/QĐ-TTg by Vietnam’s Deputy Prime Minister• Purpose: Improve the nutritional intakes and physique of Vietnamese children; Increase dairy
penetration among young generations• Reference stories: Korea (1953), Japan (1959), Thailand (1985)• Full scale: 300 million milk bottles (180ml) per month• Achievement: >30 cities and provinces already signed contracts with Vinamilk via competitive
bidding
Domestic Champion with
Diversified Portfolio
End-to-End Value Chain
Proven Record of Financial Results
Solid Leadership
Favorable Macro Situation
Investment Highlights
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Domestic operation
International Operation
~200Distributors
240.000Points of Sales
Conventional channels
465“Giac Mo Sua Viet” Stores
2.400Points of Sales – Convenience Stores
5.400Points of Sales – Supermarkets
08E-Commerce Partners
Vinamilk E-shop giacmosuaviet.com
Online Shopping app – “Giac Mo Sua Viet”
Export to 5 Continents
55Countries and Territories
TRADING 03Sales
Branches
02Logistics
Enterprises
DISTRIBUTION
13Factories
01Moc Chau
Factory
01DriftWood Factory -
USA
01AnkorMilk -
Cambodia
MANUFACTURING AND
PROCESSIG
BEVERAGES AND
DAIRY PRODUCTS
01Polyclinic
01Nutrition
Center
13Farms
01Raw Milk Centre – Cu Chi
83Raw Milk Collection Stations
01Raw Material Production and
Supply Factory (Sugar)
01Vinamilk Lao-
Jagro Dairy
Farm Complex
FARMING AND MILK PROCESSING
HEALTH CARE,
NUTRITION
VINAMILK’s End-to-End Value Chain
From The Long-Term Relationship With Suppliers
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14Vinamilk’sown farms
6K+Contracted farmers
34K+Cows
110K+cows
LOCAL RAW MILK
IMPORTED MILK POWDER
Whole Milk Powder
Skim Milk Powder
Anhydrous Milk Fat
FRESH-MILK PRODUCTS
RECONSTITUTED & POWDER PRODUCTS
Xiengkhouang Dairy Farm (Laos)
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In May-19, Vinamilk inaugurated anew organic dairy farm complex inLaos:
• 5,000 hectare land bank offeringsignificant potential for futureexpansion
• Highland area, suitable soil &weather for organic farm
• Approved projects for Phase 1: 24,000cows
• Estimated time of milking: 1H2022
COW WELFAREDigitalize disease history and cow
milk yield dataImproving the method of breeding
cows to not affect cows’ psychology
WASTEBiogas system applied at all
Vinamilk’s farms to reuse and reduce waste and greenhouse gas emissions,
while using organic fertilizers as renewable energy for water heating
system
WATEREnvironmental management system according to ISO 140015.15% of water used in production was circulated and reused
SOIL & BIODIVERSITYCrop Rotation Use of organic fertilizers for soil in replacement of chemicals and inorganic fertilizers, minimizing waste to the environment
FARMERSPolicy on reasonable purchase priceAdvice on improvement of farming techniquesImprovement of cohesion and service quality
Continued Progress Towards ESG
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Strengthen The Chain through M&A
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MCM’s Positive Sales Growth
MCM’s Improved NPAT MCM’s Corporate Governance and Business
Operation
• Listed on UpCom in 12/2020.
• Integrated ERP in operation business.
• The size of Moc Chau Milk’s herdreached an average growth rate of14% per year and the averageyield was 25 liters/head/day.
VND 2,562 bn
VND 2,823bn
2019 2020
VND 167 bn
VND 281 bn
2019 2020
68% 59.3%
8.9%
VILICO-SOJITZ Beef Project
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51% 49%
USD 2 mn
JOINT VENTURE
Available Resources in Vietnam:
• Long track record in Vietnam market.
• A massive industrial infrastructure with270-ha area.
• The compound feed production andsales business overseas.
• A food value chain: MINISTOPConvenience Stores, Japan Best Food.
• Modern cold chain logistics services.
MCM’S New Resort Farm Project
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USD 2 mn
270 hectare
4,000 cow heads
To The State-of-The-Art Technologies
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• Raw milk delivered by chill tankers at 2-6ºC
• Production lines using German, Italian, and Swiss technologies
• Spray drying technology by Niro that retains high content of nutrients and mineral
• Packaging technologies by Tetrapak, Bencopack, and SIG Combibloc
• Inventory and spoilage lossare controlled by Oracle ERP
• Automated shipment from smart warehouse by LGV robots
• Sales & accounting system are fully integrated
• Automation (feeding, scratching, cooling, milking etc.) using Israeli technologies
• Implanted sensors on each cow to monitor yield and animal wealthfare
All content © Vietnam Dairy Products JSC 24Completely Automated Factory in Binh Duong Province.
Our Largest Factory (Binh Duong, Vietnam)
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100% AUTOMATED PRODUCTIONCapacity: 800 million liter p.a
One of the Largest TETRA PAK
Factories Globally
Production of UHT Milk, Soya
Milk and Beverages
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Vinamilk Cow “Resort” Tay NinhThe first facility to be fully governed by 4.0automated technology, augurated from 2019. Thecomplex expanding over 685 hectares houses nearly8,000 cows, with initial investment reaching VND1,200 billion.All content © Vietnam Dairy Products JSC
Improved Milking Production over years
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51,790
73,334
102,384124,255
148,831
194,874 185,979 187,800 193,690 187,410
2016 2017 2018 2019 2020
Amount of milk purchased from local dairy farmers (tons)
Total amount of raw milk production (tons)
12.25 12.48 13.17 13.63 13.43
24.425.61 26.22
27.23 27.45
2016 2017 2018 2019 2020
Average milk yield of dairy farmers (kg/head/day)
Vinamilk's Average milk yield (kg/head/day)
Be the Leading Distributor in Vietnam and Expanding Across the Boundaries
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VINAMILK
200+ Exclusive Distributors
240K+ Retailers
Supermarkets & CVS
Key Accounts (Horeca,
schools, etc.)
500+ VNM Stores
50+ Export Markets
CONSUMERS/END-USERS
• Extensive coverage on the back of nationwide POS network
• Dominant across traditional and modern channels
Note: Data updated as at Dec-2019
Investment Highlights
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Domestic Champion with
Diversified Portfolio
End-to-End Value Chain
Proven Record of Financial Results
Solid Leadership
Favorable Macro Situation
Experienced Leadership Team with Deep Industry Expertise
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Mdm. Mai Kieu LienCEO & Board Member• Bachelor/Engineer in Meat and Milk Processing• Certificate of Leningrad Economic Management• Certificate of Government Management
Mr. Mai Hoai AnhExecutive Director – International and Domestic Sales• BA in Economics• MBA
24
Mr. Nguyen Quoc KhanhExecutive Director – R&D• BA in Chemical Technique and
Foods• BA in Business Administration• BA in English32
Mr. Tran Minh VanExecutive Director - Production• BA in Engineering• BA in Business Administration• BA in commercial laws• MBA39
44
Mr. Trinh Quoc DungExecutive Director - Dairy Development• Engineer of Energy and
Automation
Ms. Nguyen Thi ThanhHoaExecutive Director – Supply Chain• BA in Milk Processing
Technology37
15
Ms. Bui Thi HuongExecutive Director - Human Resources Administration & PR• BA in Russian language• BA in Economics
15
Mr. Le Thanh LiemBoard Member, CFO anh Chief Accountant• BA in Economics, major in
Enterprise Financial Accounting• MBA of International Commerce
and Finance
26
Mr. Nguyen Quang TriExecutive Director – Marketing• Dr, DBA• MBA
1
Years of Experience with Vinamilk
Investment Highlights
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Domestic Champion with
Diversified Portfolio
End-to-End Value Chain
Proven Record of Financial Results
Solid Leadership
Favorable Macro Situation
22.1
27.1
31.6
35.2
40.2
47.0
51.152.6
56.4
59.7
4.25.8 6.5 6.1
7.89.4 10.3 10.2 10.6 11.2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
VN
D t
rilli
on
Double digit CAGR in the last 10 years
Total revenue Profit after tax
Robust Growth & Strong Balance Sheet
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24% 24%31% 30%
33% 31%
27.5 29.4
34.7 37.4
44.7 48.4
2015 2016 2017 2018 2019 2020
VN
D t
rilli
on
on top of a healthy Balance Sheet
Total debt/Total assets Total assets
2020 Consolidated Financial Highlights
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Net sales(VND bn)
Gross profit margin(%)
59,636 46.4%5.9% YoY 79 basic points YoY
Net profit after tax(VND bn)
Earnings per share (VND)
11,236 4,7706.5% YoY 4.5% YoY
10,690
59,600
11,236
59,723
NPAT
Total revenue
Completed 100% sales guidance and 105% NPAT guidance
Accumulated figures Annual guidance
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IR contactTrung Dong (Mr.)Investor Relations ManagerE [email protected] +84 028 54 155 555 / Ext 108247
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