2. 1. Brief corporate profile
2. Group structure
3. Financial Highlights
4. Share capital structure
5. Production facilities
6. Cow farm developments
7. Key investment highlights
8. Five-Year Strategic CAPEX Plan
9. Updated financial performance
10. Q & A
AGENDA:
3. “To become the leading Vietnamese
trusted brand on nutrient and
healthy products for human life”
“Vinamilk commits to bring best-quality nutrition to
communities that reflects our respect, love and
responsibility for the people, life and society”
VISION
MISSION
4. CORE
VALUES
1. Integrity: Integrity and transparency in actions and transactions.
2. Respect: To have self-respect and respecting colleagues,
Company, partners. Tocooperate with respect.
3. Fairness: To be fair with employees, customers, suppliers and
other parties.
4. Compliance: To comply with legal regulations and the
Company’s Code of Conduct, regulations and policies.
5. Ethics: To respect the established ethical standards and act
accordingly.
6. 1. Brief Corporate Profile
1991-1994
Introduced UHT
milk and spoon
yoghurt to the
Vietnam dairy
market.
1976
Company was
founded under
the Southern
Coffee Dairy
Company name
with 2 factories.
Launched
condensed milk
1988- 1989
Dielac
Powdered Milk
Factory, the
first powdered
milk in Vietnam,
came into
operation and
introduced its
first batch of
product.
2003
Company was
formally
converted into a
joint stock
company and
renamed as
Vietnam Dairy
Products Joint
Stock Company
2006
Company’s
shares were
listed on HOSE
Today
2017
Total sales reaches
US$3bn
Become the World’s
top 50 largest dairy
products companies
No.1 dairy producer in
Vietnam
The Region’s Top 200 best
Small & Midsize Companies in
Asia Pacific in 2010 (Forbes
Asia)
Top 5 largest private
companies in Vietnam
Own 19.3% stake of Miraka
Limited, New Zealand
10. 4. Share Capital Structure
As at 14 August 2013:
- Share capital: 8,339 billion VND (~US$393m)
- Market capitalization: ~ US$5.86 billion
Listed on HOSE: Jan 2006
Vinamilk is highly sought after by foreign investors, proven by
limited room left for foreign trading and significant out-performance
against the index
Trading performance (index is rebased to Vinamilk’s share
price)
11. 4. Share Capital Structure
Top 10 companies with the largest market capital in Vietnam
Market price
13-Aug-13
Seq Sticker
Outstanding
shares
Market capital in
VND billion
1 GAS 1,895,000,000 68,000 128,860
2 VNM 833,490,871 147,000 122,523
3 CTG 3,266,144,348 19,000 62,057
4 MSN 705,140,873 88,000 62,052
5 VCB 2,317,417,076 26,600 61,643
6 VIC 882,459,899 65,000 57,360
7 BVH 680,471,434 41,200 28,035
8 STB 1,142,511,590 16,900 19,308
9 EIB 1,235,522,904 14,400 17,792
10 DMP 379,934,260 40,800 15,501
12. North
1 production factory
Tien Son
1 logistics enterprise
1 sales office – Hanoi
Central
4 production factories
Nghe An
Binh Dinh
Thanh Hoa
Da Nang
1 sales office – Da Nang
South
8 production factories
Thong Nhat
Truong Tho
Dielac 1 & 2
Mega factory
Saigonmilk
Can Tho
Beverage
1 logistics enterprise
1 healthcare branch
1 sales office – Can Tho City
5. Production Facilities
As at 30 June 2013, we have 5,389 (2012: 5,000) employees nationwide.
13. 13
North Central
South Central
North
South East
Vinamilk has currently
05 farms with the total of
~ 8,200 cows
Supply chain of milk:
- Local supply from
farmers: only raw fresh
milk and ~ 25% of the
total production
demand.
- Imports: only milk
powders and ~75% of
the total production
demand. Imports are
mainly from New
Zealand, Australia and
USA.
6. Cow Farm Developments
14. 7. Key Investment Highlights
Vinamilk possesses the critical qualities to succeed:
Leading market position in Vietnam’s fast-growing dairy market
Diversified product portfolio
Extensive sales and distribution network
Strong “win-win” supplier relationship
Strong market-oriented research and development capabilities,
combined with modern production facilities
Highly experienced management with proven track record
Proven track record of robust financial growth
1
2
3
4
5
6
7
15. Presentation2
The Vietnamese dairy market exhibits strong growth potential…
Vietnamese dairy product market sales (US$mm)
CAGR = 11.8%
Vietnamese fresh milk output (mt)
CAGR = 18.9%
Key drivers of the Vietnamese dairy product market
Dairy sales growth 2010-2015E (%)
Continued strong growth of GDP (targeted 7.0-7.5% growth in the next 5 years) and increasing disposable income
Heightened desire for healthy living and greater demand for nutritional products
Increased awareness of the health benefits of dairy products
Supportive government programs encouraging the consumption of dairy products
Source: Euromonitor International report 2009, Food and Agriculture Organization of the United Nations, GSO, DairyVietnam
1
5
52 48
37
16
24
32
China India Vietnam Indonesia Thailand Mexico US
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Per capita production of dairy products in 2010E (kilo)
Source: Food and Agriculture Organization of the United Nations, DairyVietnam
665 698
877
980 1039
2005 2006 2007 2008 2009
16. …and we have established 1 ourselves as one of the leading dairy brands in Vietnam
Achieved dominant market position through our focus on:
Advertising and marketing Product innovation Quality assurance
Received numerous prestigious awards…
Vietnamese high quality product
Strong brand, Trusted brand
National Brand 2011-2012
One of the best annual report 2008-2012
The Region’s Top 200 best Small & midsize
companies in Asia Pacific 2010
(by Forbes Asia)
Top 5 largest private companies in Vietnam 2011
Top 50 companies with the best performance in VN
Top 500 companies with the strongest growth in
VN
…on the back of well-defined business
strategies
Expansion of market share in existing and new markets
Broaden consumer base while maintaining
competitiveness in core products
Development of raw material sources to ensure a
reliable and consistent fresh milk supply base
Develop modern cow farms in Vietnam
Import cows from New Zealand, Australia and Thailand to
increase the number of cows in Vinamilk’s farms
Develop cow farms overseas, e.g. Cambodia, New
Zealand
17. Diverse product portfolio capturing a larger share of the consumer wallet
Proves our market dominance in all core products of our diverse portfolio
2
Liquid milk Powdered milk
Condensed milk
Contributed 22% of 2010 revenue
One of VNM’s core products since 1976
Market share: >80%
Competitors: Dutch Lady
Include fresh, pasturized and
UHT milk
Main competitors: Dutch Lady
27% Including Powdered milk and
8 lines Mama, Nutrition of products, including Dielac
Dielac Alpha Powder
and Dielac Sure
Market share: ~20%
Competitors: Competitors: Abbott, Dutch MeadJohnson
Lady,
Abbott, MeadJohnson,
Nutrifood, Dumex, Nestle
Our traditional products
Competitors: Dutch Lady
18. Diverse product portfolio capturing a larger share of the consumer wallet (cont’d)
Proves our market dominance in all core products of our diverse portfolio
2
Spoon Yoghurt Cheese and ice cream
Healthy beverages
Contributed 22% of 2010 revenue
One of VNM’s core products since 1976
Market share: >80%
Competitors: Dutch Lady
With various flavors
Main competitors: Dutch Lady
27% Ice cream is offered with
8 lines Mama, various of products, including Dielac
Dielac flavors
Alpha and Dielac Sure
Market share: ~20%
Competitors: Cheese Abbott, is produced MeadJohnson
from
French production line and has
very high nutritious value
Main competitors: Kinh Do
A strong brand, which
specializes in pure fruit
juice, green tea, milk mixed
fruit juice, soft drinks and
soya-bean milk
Main competitors: Tan Hiep
Phat, URC, Uni-president,
Tribeco
21. We have developed one of Vietnam’s most extensive sales and distribution networks
in the dairy industry
A historically strong export business…
On average, approximately 15% of our revenue is generated from exports to 16 countries.
Key export markets are Middle East, Cambodia, Laos and Philippines
… and the leading local distribution network
3
VVIINNAAMMIILLKK
EXCLUSIVE
DISTRIBUTORS
RREETTAAIILLEERRSS
SUPERMARKETS
, METRO,…
CONSUMERS/END USERS
22. Presentation2
Vinamilk gives… …and receives strong support from our
suppliers
Steady supply of high quality raw
milk
Substantial pricing power for
Vinamilk
Consistent, fresh supply of raw milk
4 Strong “win-win” supplier relationship
Competitive
pricing
policies
Financial
support to
farmers
Purchases over approximately
50% -60% of domestically
produced raw milk in Vietnam
Offer farmers seasonal
subsidies when prices of raw
milk experience sharp changes
Milk collection centers located
within 30 minutes from farms
Proximity of
facilities
Close relationships with suppliers allow us to maintain and increase production output
23. Strong marke 5 t-oriented product development capabilities….
Marketing team
Experienced in analyzing consumer
preferences and trends
Conduct consumer research with market
research companies
Product R&D team
Dedicated R&D team of over
10 members
Committed to improve product
quality and expand product
portfolio.
Signed agreement with 3
leading companies named
DSM, Lonza and Chr. Hansen
for R&D for research,
application and product
development
Sales team
Thorough understanding of
consumer preferences through
constant contact at various
outlets
Ability to develop new products based on evolving consumer preferences
24. 5 … combined with modern production facilities
Production lines Technologies imported from Germany, Italy, and
Switzerland for manufacturing
Packaging Packaging technologies provided by Tetrapak,
Bencopack and SIG Combibloc
Spray drying Spray dry technology produced by Niro Inc.
Inventory
management
of Denmark
Retains high content of nutrients and minerals
ERP technology powered by Oracle manages
inventory and minimizes spoilage loss
Our state of the art facilities ensure high quality products
25. Highly experienced management with a proven track record of delivering strong
business performance
Core management team with extensive industry experience in Vietnam
Solid platform and expertise to drive sustainable future growth
6
Vinamilk has a strong management team: CEO and 7 Executive Directors in charge of
different areas, inclusive of Sales, Marketing, Finance, Production and R&D, Supply Chain,
Raw Materials Development, Project.
The management team has strong education background and industry experiences. Most
of them have been growing with the Company for more than 20 years.
26. 759189-001 8. Five- Year Strategic CAPEX plan:
In billion dong
Total
investment
to 2016
Already
paid
Disbursement
in 2013
Disbursement
in 2014 - 2016
TOTAL 10,539 5,605 2,599 2,335
The CAPEX plan is mainly to increase the production capacity and develop dairy
cow farms.
27. 759189-001
DIELAC 2 -
(Powdered milk
plant)
Was put into
operations since
April 2013.
33. 759189-001
DISCLAIMER
This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of
assumptions about the operations of Vietnam Dairy Products Joint Stock Company (the “Company”) and factors beyond
the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ
materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking
statements for events or circumstances that occur subsequent to such dates.
The information in this presentation should be considered in the context of the circumstances prevailing at the time of its
presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of
this presentation. The information is not intended to provide, and you may not rely on these materials as providing a
complete or comprehensive analysis of the Company's financial or trading position or prospects. This presentation also
contains information and statistics relating to the dairy industry and related industries. The Company has derived such
information and data from unofficial sources, without independent verification. The Company cannot ensure that these
sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness
as are found in other industries. You should not place undue reliance on statements in this presentation regarding the dairy
and related industries. No representation or warranty, express or implied, is made as to, and no reliance should be place
on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. None of the
Company, any underwriter of securities of the Company, or any of their respective directors, officers, employees, agents or
advisers shall be in any way responsible for the contents hereof, or shall be liable for any loss arising from use of the
information contained in this presentation or otherwise arising in connection therewith.
