Inner Mongolia Yili Industrial Group Co., Ltd. Class A · SSE:600887
Inner Mongolia Yili Industrial Group Co., Ltd. Class A — FY2023 Earnings Presentation
39 slides from Inner Mongolia Yili Industrial Group Co., Ltd. Class A's earnings presentation, Apr 30, 2024
Slide 1: 2023 Annual and First Quarter 2024 Results
Inner Mongolia Yili Industrial Group 2023 Annual and First Quarter 2024 Results
Slide 2: Disclaimer
Disclaimer This material is provided by the Inner Mongolia Yili Industrial Group Co., Ltd. (the "Company"). This presentation is a simple description, which is for general reference only, not a complete version. Material involving industry, strategy, vision and other forward-looking statements is no
Slide 3: Catalogue
Catalogue 1 About Yili 2 Financial Review 3 Business Review & Outlook 4 ESG & Sustainable Development 5 Long-term Vision
Slide 4: About Yili
About Yili • Yili ranks among the Global Dairy Top 5 and has sustained an undisputable position of No. 1 in Asia for ten consecutive years. Yili is China's largest dairy producer, offering the largest number of products. Yili has now put into place a network comprising a global resource system, a gl
Slide 5: Introduction of our Leader
Introduction of our Leader PAN, Gang (The Chairman and CEO of Yili Group) By 2002, he was the youngest CEO among the 520 key industrial enterprises. Mr. Pan has been holding the position of Chairman and CEO of Yili Group since June 2005. Management Thinking • The "global networking" and the "along-t
Slide 6: Catalogue
Catalogue 1 About Yili 2 Financial Review 3 Business Review & Outlook 4 ESG & Sustainable Development 5 Long-term Vision
Slide 7: Financial Review: Total Revenue
Financial Review Total revenue in 2023 was RMB 126.18 billion, and net profit attributable to shareholders of the company was RMB 10.43 billion. Both revenue and net profit maintained growth as compared with last year and continued to rank NO.1 in the dairy industry in Asia. 140 Unit: Billion RMB 12
Slide 8: Financial Highlights
Financial Highlights RMB (million) 2022 2023 Growth rate 2023 Q1 2024 Q1 Growth rate Revenue 123,171 126,179 2.44% 33,441 32,577 -2.58% Revenue from core business 121,149 124,461 2.73% 33,115 32,220 -2.71% Gross profit1 39,275 40,726 3.69% 11,219 11,581 3.23% Gross profit margin 32.4% 32.7% 0.30 ppt
Slide 9: Core Business Revenue Segment Breakdown
Core Business Revenue Segment Breakdown 2022 2023 2023Q1 2024Q1 RMB (million) Revenue % Revenue % Growth Revenue % Revenue % Growth rate rate Liquid milk 84,926 70.1% 85,540 68.7% 0.7% 21,741 65.7% 20,261 62.9% -6.8% Milk powder and 27,598 22.2% 5.1% 7,428 23.1% -0.2% 26,260 21.7% 7,443 22.5% milk p
Slide 10: Analysis of Revenue and Profit Growth
Analysis of Revenue and Profit Growth 2023 Revenue growth attribution 2023 Profit Before Tax Growth Attribution Unit: million RMB Unit: million RMB 2.7% +4.0% 10.3% +0.1% +0.2% -1.6% 2022 Volumn Product Mix1） ASP Other Products2） 2023 2022 Gross Profit Selling Expense G&A Expense Other 2023 Note 1:
Slide 11: Gross Margin by Segment
Gross Margin by Segment 0.30 ppts 1.25 ppts 32.7 % 32.4% 29.1% 30.4 % 2022 2023 Total Liquid milk 2022 2023 2.92 ppts Milk powder and Ice cream 0.03 ppts milk products 41.1 % 38.1 % 38.5 % 38.4 % 2022 2023 2022 2023 11 Data source: Company data
Slide 12: Operating Efficiency
Operating Efficiency Notes Receivable and Accounts Receivable Turnover (Days) Inventory Turnover (Days) 7.9 9.4 51.4 58.1 2022 2023 2022 2023 Notes Payable and Accounts Payable Turnover (Days) Cash Turnover (Days) 66.8 67.2 -7.5 0.3 2022 2023 2022 2023 12 Data source: Company data
Slide 13: Cash Flow and Capital Expenditure
Cash Flow and Capital Expenditure Net cash flow from operating activities Capital expenditure Unit: million RMB Unit: million RMB Net cash from the subsidiaries Cash paid for fixed assets, intangible assets and other long-term assets 7,143 18,290 39 13,420 6,646 6,956 2022 2023 2022 2023 13 Data sou
Slide 14: EBITDA, ROIC and Dividend Rate
EBITDA, ROIC and Dividend Rate EBITDA & EBITDA Margin ROIC Unit: million RMB EBITDA EBITDA margin 18,345 13.5% 16,100 2023 14.5% 14,343 11,087 10,424 13.0% 13.1% Percentage of total amount of dividends 1） to net profit attributable to ordinary shareholders of parent company 11.6% 11.4% 80% 2023 2019
Slide 15: Catalogue
Catalogue 1 About Yili 2 Financial Review 3 Business Review & Outlook 4 ESG & Sustainable Development 5 Long-term Vision
Slide 16: Industry Status and Trend
Industry Industry Status and Trend Innovation is the driving force for the sustained Health awareness is continuously increasing： development： • As the national awareness of health continues to increase, • Dairy products and milk-based nutritions with health and consumers' demand for high-quality, h
Slide 17: Adhere to brand building, continuously expand brand matrix
Company Brands Adhere to brand building, continuously expand brand matrix, and comprehensively occupy consumers' minds Yili brand continues leading Yili adheres to the corporate belief that “Yili means the best quality” and follows the brand concept of “nourishing life”. Yili Group was recognized as
Slide 18: Gathering top industry resources to enhance innovation capabilities
Company Innovation Gathering top industry resources to continuously enhance innovation capabilities Innovation cooperation across the entire industry chain Adhering to the innovation strategy, the company has established 15 innovation centers globally across Asia, Europe, Oceania, and the Americas,
Slide 19: Continuously advancing digital and intelligent transformation
Company Digitalisation Continuously advancing digital and intelligent transformation to enhance operational efficiency Improve Supply chain efficiency • Improving the functionality of the four major systems: product innovation, supply chain operations, channel management, and consumer experience. •
Slide 20: Overseas business maintains sustainable growth with global supply chain network
Company Globalization Overseas business maintains sustainable growth with efficient collaboration of the "global supply chain network" Oversea business increased 10.08% yoy • The Cremo in Thailand led the market with top growth rate; The Joyday brand popularity has increased to 46% in Indonesia mark
Slide 21: Continuing digital management and robust expansion of diversified channels
Company Channels Continuing digital management and robust expansion of diversified channels Digitalisation empowers channel management Relying on digital technology innovation, the company continuously improves the operational efficiency of online and offline channels, shortens product delivery cycl
Slide 22: Liquid milk: demand for white milk continues to grow
Company Product Liquid milk: The demand for self drinking white milk continues to grow, and innovation leads the development of the industry Basic white milk Satine: No.1 in Premium white milk brand, with SHUHUA: No.1 in Cute Star：No.1 in category: steady double digit growth of lactose-free milk Chi
Slide 23: Liquid milk: Multiple categories occupying leading positions
Company Product Liquid milk：Multiple categories develop heathily, occupying leading positions in multiple segments • The sour milk beverage brand with the highest national recognition • Successively launching new flavors such as lychee and apricot, attracting the younger generation of consumers Mark
Slide 24: Liquid milk: Satine pasteurized milk grew rapidly
Company Product Liquid milk：Satine pasteurized milk grew rapidly, innovation leads the chilled dairy category development Increased in market share of multiple chilled In 2024, focus on core brands and strengthen brand categories building Satine pasteurized Satine pasteurized milk • Changqing ranked
Slide 25: Milk powder: market share of IMF category continues to increase
Company Product Milk powder and dairy products: The market share of company IMF category continues to increase 2019 2023 Jinlingguan Seine Mouiller Cute Star Growth rate over 40%, The brand grows rapidly, Jinlingguan Zhenhu has Domestic become the best-selling became No.1 in organic ranking No.1 in
Slide 26: Milk powder: silver economy drives adult milk powder
Company Product Milk powder and dairy products: The silver economy drives the rapid development of adult milk powder Leading adult milk powder development For Senior For Female Goat Milk Powder No.1 in industry Market share expanded to 23.3% Sales revenue grew double digit YoY • The Xinhuo brand con
Slide 27: Milk powder and dairy products: cheese business
Company Product Milk powder and dairy products: The cheese business grasps the trends in the catering and baking markets, and toB business grew steadily 2023 Cheese Business Performance The market share of KA channels is about 16.9%, an increase of 0.6 percentage points from the previous year Yili h
Slide 28: Ice cream: Products continuous to upgrade
Company Product Ice cream: Products continuous to upgrade, leading the consumer market trend No.1 in No.1 in market Leading market for market share penetration 29 consecutive years • By focusing on consumers, company rapidly innovates products, meets new consumption scenarios, and combines effective
Slide 29: Business Outlook
Company Forecast Business Outlook 2024 Total revenue to be Profit before tax to be Business Outlook RMB：130 billion RMB：14.7 billion Adhere to the corporate belief of "Yili means the best quality" and "consumer-centered mindset ", deeply promote 1 "value innovation", and continue to lead the healthy
Slide 30: Catalogue
Catalogue 1 About Yili 2 Financial Review 3 Business Review & Outlook 4 ESG & Sustainable Development 5 Long-term Vision
Slide 31: Honors and awards granted to Yili on sustainable development
Honors and awards granted to Yili on sustainable development Awards Issuing Authority Yili's carbon reduction case has been selected for the "Progress Report on China's Implementation of the 2030 Agenda for Sustainable Development (2023)", making it the only food enterprise selected and the China In
Slide 32: Yili's sustainable development ratings in 2023
Yili’s sustainable development ratings in 2023 and collaborated external institutes Signatory of the Members of the United Member of the Roundtable Convention on Biological Nations Global Sustainable Palm Oil Diversity “Corporate and Compact Organization Initiative Biodiversity Commitment” In 2023 Y
Slide 33: Corporate Governance
Corporate Governance Independence and diversity of the board of directors Anti-corruption management Yili has established a company-wide anti-corruption management system, Yili values the diversity of the board of directors, and takes into adhering to the principle of combining punishment and preven
Slide 34: Environmental Protection
Environmental Protection 41 subsidiary companies have obtained national level "green factory" certification Energy consumption reduced by 19.1k tons of standard coal 1,153 energy-saving and emission reduction projects (excluding water-saving projects) Annual water savings exceeding 1.77 million tons
Slide 35: Social Responsibility
Social Responsibility Yili insists on keeping up with the pace of social development, by using the own advantages, Yili actively participates in public welfare, and giving back to society. Relying on representative public welfare projects such as "Yili Ark", "Yili Nutrition Collaborate with "Yixin X
Slide 36: Catalogue
Catalogue 1 About Yili 2 Financial Review 3 Business Review & Outlook 4 ESG & Sustainable Development 5 Long-term Vision
Slide 37: Corporate culture
Corporate culture Belief Vision “Yili” means the best quality Be the most trusted global healthy food provider Core Values The Spirit of Yili Excellence Accountability Innovation Ownership Strong sense of mindset responsibility Win-win Respect Powerful execution capability 37
Slide 38: Long-term Strategic Goals: Value Leading
Long-term Strategic Goals “Value Leading” Consumer value Social value Employee value Corporate value Strategic Goal leading leading leading leading Continue to focus on the field of healthy food and lead the development of the industry based on the needs 1 of consumers and by relying on the global t
Slide 39: Thanks!
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Inner Mongolia Yili Industrial Group — FY2023 Earnings Presentation on 6ix