2012 Interim Results

August 2012

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 investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects.

This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.

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Sun Yiping, Executive Director & Chief Executive Officer

Bai Ying, Executive Director

Wu Jingshui, Executive Director & Chief Financial Officer

Ding Sheng, Executive Director

Lu Jianjun, Chief Administrative Officer

Chris Kwok, Financial Controller & Company Secretary

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Results Overview

Future Strategies

Results Overview

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RMB’M 1H2011 1H2012 Change

Revenue 18,578.6 18,360.6 ↓1.2%

Gross profit 4,824.9 4,710.5 ↓2.4%

EBITDA 1,421.7 1,299.8 ↓8.6%

Profit attributable to

owners of the Company 789.8 644.7 ↓18.4%

Basic earnings per share

(RMB) 0.454 0.365 ↓19.6%

- Gross profit margin 26% 25.7% ↓0.3ppt

- Net profit margin 4.3% 3.5% ↓0.8ppt

86.8% 11.8%

1.4%

1H2012 Revenue

(RMB18,360.6M) Liquid milk

• Revenue amounted to RMB15,940.8M,

decreased by 2.17% YoY

• Focused on promotion of high-end

product, and raised the market share of

mid to high-end product with 3ppt

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Ice cream

• Revenue amounted to RMB2,158.3M, an

increase of 3.54% YoY

• Gross profit margin of ice cream increased

3.6ppt through adjusting product price and

increasing product gross profit

Other dairy products

• Revenue amounted to RMB261.5M,

increased by 30.32% YoY

87.7% 11.2%

1.1%

Revenue

(RMB18,578.6M)

Liquid milk Ice cream Other dairy products

1H2011

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60.1%

26.1%

13.8%

Revenue of Liquid Milk (RMB16,294.9M)

UHT milk Milk beverages Yogurt

1H2011

1H2012 UHT Milk

• Revenue amounted to RMB9,621.0M,

representing a decrease of 1.8% YoY

• High-end product has enjoyed rapid

growth, and increased market share

• Milk Deluxe and Future Star realised sales

growth of approximately 14%, and its

proportion increased by 5ppt

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Milk Beverages

• Revenue amounted to RMB3,987.6M,

decreased by 6.1% YoY

• Sales of new products increased, such as

Youyi C, which has enjoyed rapid growth of

207%

Yogurt

• Revenue amounted to RMB2,332.2M,

increased by 3.54% YoY

• Continued to increase the sales of

products with high gross profit margin, e.g.

sales of Champion increased by 21%,

proportion has raised 2ppt

60.4%

25.0%

14.6%

Revenue of Liquid Milk (RMB15,940.8M)

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26.1%

22.3% 13.3%

8.1%

4.8%

25.4%

Mengniu Yili

Wahaha Brightdairy

Want Want Others

Market Share of Liquid Milk Product

in terms of sales as of June 2012

Market Share of Yogurt Product in

terms of sales as of May 2012

Source: Nielson Company

22.9%

7.8% 21.7%

17.5%

2.7% 4.0%

Mengniu Junlebao

Brightdairy Yili

Sanyuan Weiquan

The market share of Mengniu’s liquid milk and yogurt products continued to rank top in China

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5

10

15

20

1H2011 1H2012

6.8

11.4

(Day)

Receivables Turnover (1)

0

5

10

15

20

25

1H2011 1H2012

18.7 22.1

(Day)

Inventory Turnover

0

20

40

60

80

1H2011 1H2012

50.4 55.4

(Day)

Payables Turnover (2)

(1) Receivables Turnover = [(Average balance of Trade

and Bills receivables) / Revenue] x No. of days

(2) Payables Turnover = [(Average balance of Trade

and Bills payables) / Cost of Sales] x No. of days

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0

500

1,000

1,500

2,000

1H2011 1H2012

1,381.5

1,104.8

Net Cash Inflow from Operating Activities

(RMB’M)

Future Strategies

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A viable model for the development of milk sources that procures centralised feeding, vaccination, quality control, administration of veterinary drugs and feed for milk cows.

Improve the product quality and safety

from the sources

To achieve 100% raw milk sourced from ranches and

scaled farms by 2015

Continued to increase milk

sources provided by ranches

and scaled farms

Provision of entrusted loans

Investment in large-scale ranches

Investment in building of mordernised ranch facilities

Ranch management

Entered into strategic cooperation with Arla Foods; management systems with European standards introduced, which will in turn mobilize the development of the ranching segment towards international standards

Control over milk sources

Achieved effective tracking of raw milk, feeds for milk cows and the use of veteri-nary drugs

The safety of milk is assured through centra- lised bidding for feed and veterinary drugs

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Planting Breeding Primary

Processing Procu- rement

Product development

Produ- ction

Ex-warehouse

Logistics Sales Customer feedback

Establish a quality assurance system covering the entire

industry chain from sources to sales

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Review product categories

Revamp product brands

Reduce the proportion of products with low gross profit

Develop products with competitive edge specifically targeting

market segment, e.g. Awakening Youth Milk and PET

Drive the sales channels closer to the front line, and increase the

number of sales points

Develop brands with competitive advantages, concentrating

resources to build core brands

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The perfect match of strategic planning and actual business

implementation by concurrently completing six core corporate projects

through project based management

Production deployment strategy

Brand, category and product strategy

Matching of supply and demand

Comprehensive quality management

ERP/CRM System

Establish comprehensive plan of the industry chain as the guideline of the Company’s production, supply and sales operations

Optimise synergies between the brand and product structure, renovate image, and enhance brand management capabilities

Establish a market-driven production and sales management mechanism to optimise the network

Implement an effective end-to-end quality control system spanning the entire industry chain through establishment of comprehensive management of workflow

Achieve integration of the business and financial operations, and strengthen the control over channels

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Mengniu’s largest strategic

shareholder;

Establish a solid platform for

development;

Align with international

resources;

New platform for business

development

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Founded in 1863 with a history of over 140 years, collectively owned by 8,000 farmers from Sweden, Denmark and Germany;

As the largest dairy product enterprise in Europe, ranked 8th in the list of Global Dairy Enterprise;

Revenue was about USD10 billion in 2011;

Forefront market position:

No. 1 in UK

No. 1 in Sweden

No. 1 in Denmark

No. 2 in Finland

No. 2 in Netherlands

Top 3 in Germany

International quality management system; Brand value of “Closer to Nature”

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Enhancement in milk source management at the front end

and in quality management system

China-Denmark Milk Technology and Cooperation Center

Introduction and interaction of international experts

Product innovation and R&D

Long-term cooperation with suppliers

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Vision

Mission

Values

New Mengniu

Become a dairy enterprise that delivers the best quality in

the most professional and devoted manner

Deliver safe, premium and healthy dairy products to

consumers, and grow stronger along with our customers,

staff, shareholders and all stakeholders

Sunshine, Nobility, Responsibility and Innovation

THANK YOU!