VINAMILK JSC

Corporate
Presentation
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
which may cause the actual results, performance or achievements of Vietnam Dairy Products JSC (“VNM”), or industry results, to
be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements and financial information. Such forward-looking statements and financial information are based on numerous
assumptions regarding VNM’s present and future business strategies and the environment in which VNM will operate in the
future. Because these statements and financial information reflect VNM’s current views concerning future events, these
statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could
differ materially from these forward-looking statements and financial information.
VNM expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statement or financial information contained in this Presentation to reflect any change in VNM’s expectations with regard thereto
or any change in events, conditions or circumstances on which any such statement or information is based, subject to compliance
with all applicable laws and regulations and/or the rules of the Ho Chi Minh City Stock Exchange and/or any other regulatory or
supervisory 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, but there can be no assurance as to the accuracy or completeness of such included information. While VNM has taken
reasonable steps to ensure that the information is extracted accurately and in its proper context, VNM has not independently
verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein.

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Vinamilk At A Glance
2003 2006 2020 North
1976 Ha Noi 1 Factory
1 Dairy Farm
Established IPO and Listed on Ho Today, in Vietnam we are:
as Southern renamed to Chi Minh • Largest listed F&B on HOSE
Coffee Dairy Vietnam Stock Central
($8B market cap)
Company, Dairy Exchange 4 Factories
100% state Products (HOSE) • Most valuable brand by 7 Dairy Farms
owned Joint Stock Forbes Vietnam ($2.2B)
enterprise Company • Biggest dairy production
with 3 milk facilities (15 dairy factories) South USA
factories • Largest dairy cow network 8 Factories 1 Factories
(130,000 heads) 4 Dairy Farms
• Nationwide distribution
network plus 5 overseas Cambodia
subsidiaries 1 Factories
Headquarter
• Top 50 global dairy Ho Chi Minh City Healthcare
producers Clinic

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Corporate Structure
VINAMILK

Domestic Subsidiaries & Overseas Subsidiaries &

Production & Logistics
Associates Associates

13 factories in the North, Vietnam Dairy Cow One Member Driftwood Dairy Holdings Corporation
Central, and South Co., Ltd. (100%) (USA, 100%)
Thong Nhat Thanh Hoa Dairy Cow
03 sales offices in Ha Noi, One Member Co., Ltd. (100%) Vinamilk Europe Spóstkaz Ograniczona
Da Nang, and Can Tho Odpowiedzialnoscia (Poland, 100%)

02 logistics enterprises in APIS Joint Stock Company (20%) Angkor Dairy Products Co., Ltd.
Ha Noi & Ho Chi Minh City (Cambodia, 100%)
Vietnam Sugar Joint Stock Company Miraka Limited (New Zealand, 23%)
Cu Chi Raw Milk Center (65%)

Asia Coconut Processing Joint Stock Lao Jagro Development Xiengkhouang

An Khang clinic Company (25%) Co., Ltd (Laos, 51%)

GTNFoods JSC (75% since Dec-19)

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Successfully acquired 75% of GTNFoods JSC
In Dec-2019, Vinamilk completed
the acquisition of 75% ownership
of GTNFoods JSC (stock ticker:
GTN), thereby participating in
managing Moc Chau Milk.
Post-acquisition, the total cow herd
suppling raw milk for Vinamilk and
Moc Chau Milk is about 155,000
units (previously 130,000 units).
Geography facts about Moc Chau
Highland: next to Vietnam-Laos
border, average elevation of 1,050
m above sea level, average temp. of
15-20°C, low humidity of below 60%

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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)

Others (free
float), 33.37% SCIC, 36.00%

Jardine F&N Group,

(Victory 20.01%
Platinum),
10.62%

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Investment Highlights

Domestic Champion End-to-End Solid Proven Record of

with Diversified Value Chain Leadership Financial Results
Portfolio

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Domestic Champion With a 44-Year Brand Heritage
Portfolio of well- 250 SKUs Consistently
Pioneered the dairy recognized and targeting all perceived for
category in Vietnam trusted brands that segments from delivering
since 1976 resonate with local pre-natal to the quality and
consumers elderly value

Liquid Milk Yoghurt Condensed Milk Formula Milk

Fruit Juice &

Baby Cereal Plant-based Cheese Ice Cream Power Drink
Milk Smoothie

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…To Explore The Potential Of Dairy Needs In Vietnam
Vietnam annual dairy consumption per capita in 2019 was 20kg vs. 38kg average of
other Asia markets, indicating strong long-term growth potentials
Asia Dairy Consumption Per Capita
69 66
59
51
Litre p.a.

38
32
27 23 20 18 14 10
5

Source: VNM estimates for Vietnam using Euromonitor data; CLAT.IT, FAS-USDA and FAO for others; The figures are milk equivalent converted from consumption data of
Milk, Butter, Cheese, Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) in selected countries

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Nearly 20 New Products In 2019

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Pioneer In The National School Milk Program

• Rollout year: 2016 under Degree 1340/QĐ-TTg by Vietnam’s Deputy Prime Minister
• Purpose: Improve the nutritional intakes and physique of Vietnamese children
• Success stories: Korea (1953), Japan (1959), Thailand (1985)
• Target: 70% preschool & elementary children to participate by end-2020
• Full scale: 300 million milk bottles (180ml) per month
• Progress: more than 20 cities and provinces in Vietnam have joined
• Our position: 21 joining cities and provinces signed contracts with Vinamilk via competitive bidding

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Investment Highlights

Domestic Champion End-to-End Solid Proven Record of

with Diversified Value Chain Leadership Financial Results
Portfolio

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 Vinamilk’s Domestic End-to-End Value Chain
Raw fresh Products
milk 200+
Traditional 251,000
Liquid milk Exclusive
VNM’s 12 trade Retailers
distributors
own farms
Powder
6,600+ 80 milk
contracted collection HORECA*,
farmers centers 13 Key Consumer
Yogurt hospitals,
factories accounts s
schools, IP*
Imported
milk Condensed CVS &
powder milk Supermarket
USA Modern s
trade 430 VNM
Europe Beverages
& Ice cream stores &
Oceania Website

Input Supply Production Distribution

*HORECA stands for Hotels, Restaurants & Cafeterias; IP stands for Industrial Parks

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Long-Term Relationship With Suppliers
LOCAL RAW MILK FRESH-MILK PRODUCTS
12 30,000
Vinamilk’s Cows
own farms

6,600 100,000
Contracted cows
farmers

IMPORTED MILK POWDER RECONSTITUTED & POWDER PRODUCTS

Whole Milk Skim Milk Anhydrous

Powder Powder Milk Fat

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Xiengkhouang Dairy Farm (Laos)
In May-19, Vinamilk
inaugurated a new dairy
farm complex in
Xiengkhouang province
(Laos):

• 5,000 hecta land bank

offering significant
potential for future
expansion
• Highland area, suitable
soil & weather for
organic farm
• Approved projects for
Phase 1: 24,000 cows

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 State-of-The-Art Technologies
• Automation (feeding, • Raw milk delivered by • Production lines using
scratching, cooling, chill tankers at 2-6ºC German, Italian, and Swiss
milking etc.) using Israeli technologies
technologies • Spray drying technology by
• Implanted sensors on Niro that retains high content
each cow to monitor yield of nutrients and mineral
and animal wealthfare

• Packaging technologies
• Sales & accounting system
by Tetrapak, Bencopack,
are fully integrated
and SIG Combibloc

• Inventory and spoilage loss

are controlled by Oracle ERP
• Automated shipment from
smart warehouse by LGV
robots

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Environmental-friendly Production

Note: 2018 figures audited by PwC Vietnam

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Mega Factory (Binh Duong Province, Vietnam)

Capacity 100%
800m liter automated
p.a. production

One of the
UHT milk,
largest
soya milk,
Tetra Pak
beverages
factories

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Tay Ninh Dairy Farm (8,000 cows)

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Nationwide Distribution Network In Vietnam & Beyond
• Extensive coverage on the back of nationwide POS network
• Dominant across traditional and modern channels

VINAMILK

Key Accounts
200+ Exclusive Supermarkets & 430 VNM 50+ Export
(Horeca,
Distributors CVS Stores Markets
schools, etc.)

251,000
Retailers

CONSUMERS/END-USERS
Note: Data updated as at Dec-2019

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Investment Highlights

Domestic Champion End-to-End Solid Proven Record of

with Diversified Value Chain Leadership Financial Results
Portfolio

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 Solid Leadership With A Combined 230-Year Of
Experience In Vietnam Dairy & FMCG
Mdm. Mai Kieu Lien
CEO & Board Member
• Bachelor/Engineer in Meat and Milk Processing
• Certificate of Leningrad Economic Management
• Certificate of Government Management
44

Mr. Mai Hoai Anh Mr. Trinh Quoc Dung Mr. Le Thanh Liem
Executive Director – International Executive Director - Dairy Board Member, CFO anh Chief
Sales Development Accountant
• BA in Economics • Engineer of Energy and • BA in Economics, major in
• MBA Automation
26 Enterprise Financial Accounting
24 15 • MBA of International Commerce
and Finance
Ms. Nguyen Thi Thanh Hoa Mr. Nguyen Quoc Khanh Mr. Tran Minh Van
Executive Director – Supply Chain Executive Director – R&D Executive Director - Production
• BA in Milk Processing Technology • BA in Chemical Technique and • BA in Engineering
Foods • BA in Business Administration
• BA in Business Administration • BA in commercial laws
37 32 • BA in English 39 • MBA

Ms. Bui Thi Huong Mr. Phan Minh Tien

Executive Director - Human Executive Director – Marketing &
Resources Domestic Sales
Administration & PR • BA in Business Management
• BA in Russian language Institute
15 • BA in Economics 6

Years of Experience with Vinamilk All content © Vietnam Dairy Products JSC 22
Investment Highlights

Domestic Champion End-to-End Solid Proven Record of

with Diversified Value Chain Leadership Financial Results
Portfolio

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 Robust Growth & Strong Balance Sheet
Double digit CAGR over 2010-2019... …on a solid balance sheet
56.4
51.1 52.6
47.0
40.2
35.2
31.6
VND trn

VND bn
27.1 44.7
22.1 34.7 37.4
16.1 29.4
25.8 27.5
9.4 10.3 10.2 10.6
6.5 6.1 7.8
4.2 5.8
3.6 33%
24% 31% 30%
23% 24%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019
Total revenue NPAT Total liabilities/ Total assetes Total assets

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2019 Financial Highlights
4Q2019 FY2019
Net sales GPM Net sales GPM
(VND bn) (%) (VND bn) (%)

14,239 46.9% 56,318 (100% vs. guidance) 47.2%

9.5% YoY 48bps YoY 7.1% YoY 40bps YoY
EBITDA NPAT EBITDA NPAT
(VND bn) (VND bn) (VND bn) (VND bn)

3,188 2,176 14,853 10,554 (100.7% vs. guidance)

1.9% YoY 4.7% YoY 8.2% YoY 3.4% YoY
Gearing EPS (basic) Gearing EPS (basic)
(%) (VND) (%) (VND)

18.4% 1,140 18.4% 5,478

13.6% YoY 4.1% YoY 13.6% YoY 3.5% YoY

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1Q2020 Financial Highlights
Net sales Gross profit margin EBITDA
(VND bn) (%) (VND bn)

14,153 46.7% 3,956

7.3% YoY 0 basic point YoY 3.2% YoY
Net profit after tax Earnings per share (basic) Net cash¹
(VND bn) (VND) (VND bn)

2,777 1,427 9,481

0.7% YoY 1.7% YoY 11.1% YoY²
¹ Cash & Cash Equivalents less Borrowings
² As at 31 March 2020

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Appendix – 1Q2020 Financial Summary
Profit & Loss (VND bn) 1Q2020 1Q2019 +/- YoY Balance Sheet (VND bn) 31/3/2020 31/3/20219
Net sales 14,153 13,189 7.3% Cash & cash equivalents 15,750 10,876
Domestic 12,092 11,212 7.9% Accounts receivable 4,132 5,076
Direct exports 2,061 1,977 4.2% Inventory 5,734 5,354
Cost of sales 7,547 7,034 7.3% Net fixed assets & CIP 15,627 14,183
Domestic 6,388 5,964 7.1% Other long-term assets 4,831 2,816
Direct exports 1,159 1,070 8.3% Total assets 46,074 38,305
Gross profit 6,606 6,155 7.3% Account payables 4,205 3,560
Domestic 5,704 5,248 8.7% Short-term debt 6,150 2,126
Direct exports 901 907 -0.6% Long-term debt 120 218
Selling expenses 3,393 2,949 15.1% Other long-term liabilities 3,353 3,478
Other non-interest income/(expenses) 146 136 6.9% Stockholders' equity 32,247 28,923
EBITDA 3,956 3,835 3.2% Total liabilities and equity 46,074 38,305
Depreciation & Amortization 555 472 17.6%
Interest expenses 42 20 112.1%
Pretax Profit 3,358 3,343 0.5% Key ratios 1Q2020 1Q2019
Income tax 581 545 6.6% ROE 32.7% 35.7%
Net Income 2,777 2,797 -0.7% ROA 22.9% 26.9%
Earning per share (VND) 1,427 1,452 -1.7% ROIC 32.2% 35.0%

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IR contact
Trung Dong (Mr.)
Investor Relations Manager
E dqtrung@vinamilk.com.vn
T +84 028 54 155 555 / Ext 108247 All content © Vietnam Dairy Products JSC 28