greatview greatview aseptic packaging aseptic packaging

GreatviewGreatview Aseptic PackagingAseptic PackagingCorporate presentationCorporate presentationp pp p

000

ContentContent

Company OverviewCompany Overview

Industry OverviewIndustry Overview

Investment HighlightsInvestment Highlights

Financial InformationFinancial Information

AppendixAppendix

11

Company OverviewCompany OverviewCompany OverviewCompany Overview

2222

Public Offering SummaryPublic Offering Summary

CompanyCompanyGreatviewGreatview Aseptic Packaging Company Limited Aseptic Packaging Company Limited

Incorporated and registered in the Incorporated and registered in the Cayman IslandsCayman Islands

Listing VenueListing Venue Hong Kong Stock Exchange Main Board (Stock Code: 0468)Hong Kong Stock Exchange Main Board (Stock Code: 0468)

SharesShares Public offering shares 383.41 millionPublic offering shares 383.41 million

Listing dayListing day December 9, 2010December 9, 2010

Issue priceIssue price HK$ 4.30 per shareHK$ 4.30 per share

33

Our Products and Support ServicesOur Products and Support ServicesWh t i A ti P k i ?Wh t i A ti P k i ?What is Aseptic Packaging?What is Aseptic Packaging?

We are the leading alternative supplier of aseptic packaging in the PRC and the second largest We are the leading alternative supplier of aseptic packaging in the PRC and the second largest li f llli f ll f d ti k i l b llf d ti k i l b ll

Customised, high-quality and competitively priced aseptic packs for dairy and non-carbonated soft drink (NCSD) producers

Our Aseptic PacksOur Aseptic Packs

supplier of rollsupplier of roll--fed aseptic packaging globallyfed aseptic packaging globally

Maintain a sterile environment and allow for transport and storage without refrigerationSuitable for storing perishable foods and beverages for up to 12 months before consumption

Carton Form: “Tralin Pilo”Carton Form: “Tralin Pilo”Carton Form: “Tralin Brick”Carton Form: “Tralin Brick”

Filling Machine Support ServicesFilling Machine Support Services CustomersCustomers

Approximately 4,000 kinds of filing machines spare parts at competitive pricesOnsite technical support services team to assist

Filling Machine Support ServicesFilling Machine Support Services CustomersCustomers

Leading dairy and NCSD producers in the PRC including Mengniu, Yili, and HuierkangLeading international producers including MUH and a

44

customers to resolve technical problems global dairy conglomerate based in France

Key Milestones

O 7 f i i ti k i ith l ti d ti 10 billi kO 7 f i i ti k i ith l ti d ti 10 billi kOver 7 years of experience in aseptic packaging with cumulative production over 10 billion packsOver 7 years of experience in aseptic packaging with cumulative production over 10 billion packs

Customer base grows First order from Mengniu. Market share Incorporated Shandong

First substantial international sales.

Bain Capital becomes a major

Custo e base g o sto over 100. Market share reaches 9.6%

First order from Mengniu. CDH Investments becomes a major investor

New management team re-establishes the company

a et s a eby volume reaches 5.8%1

Incorporated Shandong Tralin Pak, our major operating subsidiary

Company rebrand from Tralin Pak to GA

Market share reaches 7.4%

jinvestor. Annual production volume reaches one billion packs

p yas a manufacturer of aseptic packs

PACK and listed on the main board of Hong Kong Stock Exchange

20022002 20032003 20042004 20072007 20082008 2010201020062006 200920092005200520012001

55

1. Annual market share figures are by volume and per Frost and Sullivan.1. Annual market share figures are by volume and per Frost and Sullivan.

Senior Management TeamSenior Management Team

Mr. Jeff BICo-founder, CEO and Executive Director

Mr. HONG GangCo-founder, Chairman and Executive DirectorCo founder, CEO and Executive Director

Industry experience: 14 years+Years with Greatview: 7 years

Mr. CHEN Guining

Co founder, Chairman and Executive DirectorIndustry experience: 22 years+Years with Greatview: 7 years

Mr. Peder BERGGRENgChief Technical OfficerIndustry experience: 20 years+Years with Greatview: 7 years

International Business DirectorIndustry experience: 25 yearsYears with Greatview: 2 years

Mr. CHANG FuquanChief Financial OfficerIndustry experience: 22 years+Years with Greatview: 5 years

Mr. Pierre GROSSENBACHERSenior Converting AdvisorIndustry experience: 30 years+Years with Greatview: 7 years

Mr. LIU JunSpecial Project AdvisorIndustry experience: 16 years+

Mr. YANG JiuxianSales DirectorIndustry experience: 12 years+

Key members of the management team possess on average 16 years of aseptic packaging industry experienceKey members have worked together for more than 10 years

Years with Greatview: 1 year Years with Greatview: 7 years

66

Key members have worked together for more than 10 years

Corporate Structure Post IPOCorporate Structure Post IPO

B&GB&G FamilyTrust

SM Trust Peder Berggren

Yang Jiuxian

Chen Guining

Chang Fuquan

Hong Gang

100% 100% 100% 100% 100% 100% 100%

Parview

58.1% 41.9% 0 8% 0 8% 0 8% 0 8% 0 8% 5 8% 22 3% 29 4% 28 8%

Schwartz Wallson Hillma Goldmap PhanronCDH

PackagingLimited

Bain Capital TPHoldings,

L.P.

PublicFosingFoxing

58.1% 41.9% 0.8% 0.8% 0.8% 0.8% 0.8% 5.8% 22.3% 29.4% 28.8%

Wiseland

9.7%

Greatview Aseptic Packaging Company Limited(Cayman Islands)

Investors’ entities

SPV/Holding companies

100%

100%

Partner One Enterprises Limited(BVI)

77

SPV/Holding companiesGreatview Holdings Limited

(HK)

Corporate Structure Post IPO (Cont’d)Corporate Structure Post IPO (Cont’d)

Greatview Aseptic Packaging Company Limited(Cayman Islands)

Partner One Enterprises Limited(BVI)

100%

100%

Greatview Holdings Limited(HK)

100%

100%

Shandong Tralin Packaging Co Ltd

Greatview AsepticPackaging (Inner Mongolia)

C d

Beijing Greatview TralinTrading Company Limited Tralin Pak Europe GmbHCo. Ltd

(PRC) Co., Ltd.(PRC)

Trading Company Limited(PRC) (Switzerland)

Beijing Tralin Packaging Drachenfelssee 845 V V

100% 100%

Beijing Tralin PackagingMachinery Co., Ltd.

(PRC)

Drachenfelssee 845. V V GmbH

(Germany)

88

Industry OverviewIndustry OverviewIndustry OverviewIndustry Overview

99

Global Market OverviewGlobal Market Overview

The fastThe fast--growing PRC aseptic packaging market is the largest single country market globally in 2009. Given its growing PRC aseptic packaging market is the largest single country market globally in 2009. Given its growth trajectory, the PRC is expected to account for 23.4% of global sales volume by 2015growth trajectory, the PRC is expected to account for 23.4% of global sales volume by 2015

Sales Volume Breakdown (%) Sales Volume Breakdown (%)

2009

Aseptic Packaging: Market Size by Sales Volume for Major MarketsAseptic Packaging: Market Size by Sales Volume for Major Markets

2005-2015ECAGR

g j y p g yg j y p g y

Billion Portion Packs 269.9 Billion Portion Packs

PRC14.2%

0.4%4.1%

7.5%

3.4%Others(1)

85.8%

2015E13.5%

359 0 Billion Portion Packs2015E

PRC23 4%

(0.1)%Others(1)

359.0 Billion Portion Packs

23.4%76.6%

Western Europe PRC Brazil Russia Mexico North America

101010101010

Source: Frost & Sullivan.

1. Others include other regions in the world except for PRC

Global Market Overview (Cont’d)

Despite the market size, per capita consumption in the PRC is low, implying tremendous room for further growth. Despite the market size, per capita consumption in the PRC is low, implying tremendous room for further growth. According to Frost and Sullivan, per capita consumption is expected to grow at a CAGR of 13.5% between 2009 According to Frost and Sullivan, per capita consumption is expected to grow at a CAGR of 13.5% between 2009 –– 2015E2015E

20092009 2015E2015E

Global Aseptic Packaging Market: Per Capita VolumeGlobal Aseptic Packaging Market: Per Capita Volume2009 vs. 2015EPortion Pack/Person

g , p p p p gg , p p p p g

•

2009-2015E CAGR

Western Europe -0.3%

Russia 5.7%

North America -0.6%

Mexico 2.4%

Brazil 2.5%

PRC 13.5%


Although Chinese market is already the biggest single country market, it will be much bigger in a much faster pace.Despite the strong expected growth from 2005 to 2015, the penetration of aseptic packaging in PRC will remain low compared to other

1111

Despite the strong expected growth from 2005 to 2015, the penetration of aseptic packaging in PRC will remain low compared to othermajor markets, including such emerging markets like Russia, Mexico and Brazil. This implies the tremendous room for further growth inPRC.

Global Competitive Landscape

A unique, highly concentrated industry protected by barriers to industryA unique, highly concentrated industry protected by barriers to industry

Barriers to Entry for Barriers to Entry for Potential CompetitorsPotential Competitors

Barriers Against Alternative Barriers Against Alternative Packaging FormatsPackaging Formats

Extensive technical and Extensive technical and operational knowoperational know--howhow

Highly Concentrated Highly Concentrated Aseptic Packaging IndustryAseptic Packaging Industry Filling systems not Filling systems not

interchangeableinterchangeableoperational knowoperational know--howhow

Access to high quality Access to high quality raw material suppliersraw material suppliers

interchangeableinterchangeable

Optimized for market Optimized for market specific conditionsspecific conditions

Tetra Tetra PakPak

SIGSIG

ElopakElopakRigorous customer Rigorous customer

qualification programsqualification programsAbility to preserve filledAbility to preserve filledcontent for 6content for 6--12 months12 months

PRC Market Share by Sales Volume (2009)PRC Market Share by Sales Volume (2009)Global Market Share by Sales Volume (2009)Global Market Share by Sales Volume (2009)(1)(1)

G t i

SIG Combibloc10.2%

Elopak1.4%

Others7.2%

G t i

SIGCombibloc

8.2%

Others (2)

12.0%

Greatview1.5%

Tetra Pak79.7%

Greatview9.6%

Tetra Pak70.2%

1212

Notes1. Market shares shown are based on the middle point of the global market share range as estimated by Frost & Sullivan. Volume is based on 250mL packs.2. Players with less than 5% market share in the PRC market.

China Specific Dairy SupplyChina Specific Dairy Supply--Demand Demand DynamicsDynamicsDynamicsDynamics

Aseptic packaging is critical to China’s Liquid Dairy market given the unique distribution of Aseptic packaging is critical to China’s Liquid Dairy market given the unique distribution of China’s population compared to the location of its Liquid Dairy production regionsChina’s population compared to the location of its Liquid Dairy production regions

Liquid Dairy Production by Province, 2009Accounts for ~40% of China’spopulation and more than 70% of Chi ’ Li id D i d ti

China’s population compared to the location of its Liquid Dairy production regionsChina’s population compared to the location of its Liquid Dairy production regions

q y y ,China’s Liquid Dairy production

Inner Mongolia21.2%

Shangdong

Others26.9%

500K

M

11.5%

Hebei10.9%Beijing

3 0%

Shanxi2.6%

3,5

Heilongjiang6.8%

Henan5.4%

Liaoning3.1% Shanxi

5.2%

3.0%

Where the Company Has Production FacilitiesM j LDP P d ti P i Oth P i

Approximately 60% of China’s population with less than 30% of China’s Liquid Dairy production

1313

Source: Frost & Sullivan, National Bureau of Statistics of China

Major LDP Production Provinces Other Provinces

Growth in Downstream MarketsGrowth in Downstream Markets

China’s Liquid Dairy and NCSD markets has been growing rapidly, however, per capita consumption remains the China’s Liquid Dairy and NCSD markets has been growing rapidly, however, per capita consumption remains the lowest among the 12 countries surveyed by Frost and Sullivan, implying tremendous room for future growth.lowest among the 12 countries surveyed by Frost and Sullivan, implying tremendous room for future growth.

Liquid Dairy Market GrowthRevenue 2005–2015ERMB Billion

lowest among the 12 countries surveyed by Frost and Sullivan, implying tremendous room for future growth.lowest among the 12 countries surveyed by Frost and Sullivan, implying tremendous room for future growth.

PRC NCSD Market GrowthRevenue 2005–2015ERMB Billion

Per Capita Liquid Dairy Consumption2009Liters per Year

Per Capita NCSD Consumption2009Liters per Year

1414Source: Frost & Sullivan.

PRC: Rapid Growth in the World’s Largest Single Country Market

Market Drivers

Largest Single Country Market

Aseptic Packaging: Market Size Breakdown by Revenue Aseptic Packaging: Per Capita Sales Volume

2005–2015EPacks/Person

2005–2015ERMB BillionStable Demand

for Ambient Liquid Dairy

Growing Demand for NCSD

Rising Concernsfor Food Safety

More Efficient Packaging Material

Production Process

Supportive Government

PoliciesLiquid Dairy NCSD Others

1515


Liquid Dairy CS Ot e s

Investment HighlightsInvestment HighlightsInvestment HighlightsInvestment Highlights

1616

Investment HighlightsInvestment Highlights

Leading PRC alternative Leading PRC alternative supplier in a highly supplier in a highly attractive industryattractive industry

11

Trusted supplier to Trusted supplier to leading PRC and leading PRC and

international beverage international beverage producersproducers

22Experienced Experienced management team management team

with superior with superior execution capabilityexecution capability

66

3355

yy

44

Strong growth prospects Strong growth prospects in international marketsin international markets

Significant scale of Significant scale of operations and proven operations and proven expansion capabilityexpansion capability

WorldWorld--class product and class product and service offeringservice offering

17171717

Leading PRC Alternative Supplier in a Highly Leading PRC Alternative Supplier in a Highly Attractive IndustryAttractive Industry11 yy

One of a select few aseptic packaging providersOne of a select few aseptic packaging providersp p g g pp p g g p

Second largest rollSecond largest roll--fed supplier globallyfed supplier globally~30%OthersTetra

Pak

SIG

Leading PRC alternative supplierLeading PRC alternative supplier

~70%

ChinaAseptic

Packaging Market

Highly Attractive Aseptic Packaging IndustryHighly Attractive Aseptic Packaging Industry

B i t E t f Lack of Alternati es for St M i

Extensive technical and operational know-how

Barriers to Entry for Competitors

Limited supplier choice Required for ambient

Lack of Alternatives for Customers

Increasing urbanization Rising purchasing power

Strong Macroeconomic Backdrop in the PRC

p Rigorous qualification

process Access to raw materials

Required for ambient distribution of dairy

Food safety considerations

Rising purchasing power Strong growth in

downstream dairy and beverage markets

1818

Trusted Supplier to Leading PRC and Trusted Supplier to Leading PRC and International Beverage ProducersInternational Beverage Producers

22International Beverage ProducersInternational Beverage Producers

Our Value Proposition to CustomersOur Value Proposition to Customers We are trusted by leading dairy and beverage producers… We are trusted by leading dairy and beverage producers…

Global DairyGlobal DairyGlobal Dairy Global Dairy Conglomerate Conglomerate

Based in Based in FranceFrance

Perfect compatibility with Standard RollPerfect compatibility with Standard Roll--Fed Fed Filling MachinesFilling Machines

2008200820052005 20062006 2009200920072007Superior product durabilitySuperior product durability

More than 100 customers today More than 100 customers today

…which has lead to our growing market share…which has lead to our growing market share% of market share in terms of sales volume% of market share in terms of sales volume

Requisite scale to managed large and unplanned Requisite scale to managed large and unplanned orders with minimal lead timeorders with minimal lead time

% of market share in terms of sales volume% of market share in terms of sales volume

Wide range of product variationsWide range of product variations

20072007 20082008 20092009

Filling machine support services and spare partsFilling machine support services and spare parts

19191919

Strong Growth Prospects in International Strong Growth Prospects in International MarketsMarkets

33MarketsMarkets

Our Highly Experienced International Sales TeamOur Highly Experienced International Sales TeamRapid Growth in International SalesRapid Growth in International Sales

Peder BerggrenInternational Business Director

Johan Bergman Francois Hugot Gareth Foggon

Howard ChowCoert Grosse Hamberg

Oscar González Paul HachigianLuiz Magalhaes

>100 years cumulative experience

Historically, our international sales have followed an exportmodel.However, given the demand for a credible alternativesupplier of aseptic packs in Europe, as well as our growingreputation as a trusted supplier of high quality aseptic packs,

2020

p pp g q y p pa number of our customers have requested for us to enterthe market locally, which will reduce our lead time andexpand our addressable market.

44 WorldWorld--Class Product and Service OfferingClass Product and Service Offering

Our worldOur world--class product is made with high quality raw materials, processed with high precision class product is made with high quality raw materials, processed with high precision i d li h k d f h d ii d li h k d f h d i

Mounting of paperMounting of paper P i tiP i ti Creasing and holeCreasing and hole

equipment and quality checked at every stage of the production process equipment and quality checked at every stage of the production process

Mounting of paper Mounting of paper board onto printerboard onto printer PrintingPrinting Creasing and hole Creasing and hole

punchingpunching

AluAlu--foil in feedingfoil in feedingLamination Lamination

(paper + aluminum (paper + aluminum foil + polyethylene)foil + polyethylene)

SlittingSlitting

Doctoring Doctoring (if necessary)(if necessary)( y)( y)

Packing andPacking and

2121

Packing and Packing and palletisationpalletisation

WorldWorld--Class Product and Service OfferingClass Product and Service Offering44

CompatibilityCompatibility

Minimize filling machine

adjustments

Packaging DurabilityPackaging Durability

Retain shape and avoid spoilage

Service CapabilityService Capability

Ability to adjust packaging

ifi ti idladjustments

Minimize waste rate

Maximize product versatility

Optimize raw material inputs

Precision in production

specifications rapidly

Comprehensive pre-sale and

after-sales servicesMaximize product versatility

Keep up with new filling

machine introductions

R&D

Cost Effectiveness and Cost Effectiveness and Production EfficiencyProduction Efficiency

Zero Margin for Error in Zero Margin for Error in Food SafetyFood Safety

Value Enhancing and Quality Value Enhancing and Quality AssuranceAssurance

Unrivalled Technical KnowUnrivalled Technical Know--How and Stringent Quality AssuranceHow and Stringent Quality Assurance

2222

Significant Scale of Operations and Significant Scale of Operations and Proven Expansion CapabilityProven Expansion Capability55

We have a proven track record of implementing capacity expansion and benefit from accumulated We have a proven track record of implementing capacity expansion and benefit from accumulated experience and an accelerated learning curveexperience and an accelerated learning curve

p p yp p y

experience and an accelerated learning curve experience and an accelerated learning curve

Production CapacityProduction Capacity Annual and Cumulative ProductionAnnual and Cumulative Production

15.215s(2

) 10.312

3.0 4.5 5.19.4

0

5

10

15

Billi

on P

acks

2 63.9

6.4

3.82 04

8

ion

Pack

s(2)

2007 2008 2009 2010E 2012E

20102003 2012E2009

Gaotang Helingeer Additional Gaotang

2.61.8

1.2

2.0

0

4

2006 2007 2008 2009

Bill

i

Annual Production Cumulative Production

Offer customers meaningful cost savings through sizable ordersOffer customers meaningful cost savings through sizable orders

Scale Is a Key Component of our ValueScale Is a Key Component of our Value--Proposition Proposition

Factory(Line 2)

Factory Investments (1)Factory(Line 1)

Annual Production Cumulative Production

Offer customers meaningful cost savings through sizable ordersOffer customers meaningful cost savings through sizable orders

Satisfy unplanned orders quickly when customers experience unexpectedly high sales during peak seasonsSatisfy unplanned orders quickly when customers experience unexpectedly high sales during peak seasons

U l di hi hU l di hi h lit t i l li th t l l t l l f tlit t i l li th t l l t l l f t

Give customers confidence that we will be able to continue to serve their growing aseptic packaging requirementsGive customers confidence that we will be able to continue to serve their growing aseptic packaging requirements

2323

Use leading, highUse leading, high--quality raw material suppliers that only supply to large scale manufacturersquality raw material suppliers that only supply to large scale manufacturersSource: Company Prospectus1. Capacity growth from 2010 to 2012 is driven by expansion at existing factories and initial phase of European factory.2. Unless otherwise stated, all references to volume or capacity are in terms of 250ml packs.

23

Experienced Management Team with Superior Execution Capability6 p p y

Mr. Jeff BICo-founder, CEO and Executive Director

Mr. HONG GangCo-founder, Chairman and Executive Director


Mr. CHEN GuiningChief Technical Officer


Mr. Peder BERGGRENInternational Business Director


Mr. CHANG FuquanChief Financial Officer

Industry experience: 25 yearsYears with Greatview: 2 years

Mr. Pierre GROSSENBACHERSenior Converting Advisor


gIndustry experience: 30 years+Years with Greatview: 7 years

Mr. LIU JunSpecial Project Advisor

Mr. YANG JiuxianSales Director

Board of Directors Senior ManagementS f fi i l h h ld

p jIndustry experience: 16 years+Years with Greatview: 1 year


Extensive experience and professional knowledgeKey members of the management team possess on average 16 years of global aseptic packaging industry experience

Sound corporate governanceStability and commitment

K b h k d t th f th 10

Strong support from financial sponsor shareholders Bain Capital and CDH Packaging

Financial and capital market insights, as well as substantial industry contacts

2424

p gIndependent Non-Executive DirectorsShare Option Schemes

Key members have worked together for more than 10 years

Financial InformationFinancial InformationFinancial InformationFinancial Information

2525

Overview of Financial Performance

Revenue Gross Profit

268.724.1% 25.6%

34.8% 32.9%34.8%

300

400

30

40

525.0

771.9

503 2600

800

1,000

RMB Million Margin %RMB Million

91.8134.4 131.8

165.7

0

100

200

0

10

20380.4525.0

378.7503.2

0

200

400

600

2007 2008 2009 1H 2009 1H 20102007 2008 2009 1H 2009 1H 2010

Operating Profit Net ProfitRMB Million

Margin %

RMB Million

Margin %

189.215.4% 15.4%

26.6% 24.6%24.5%

200

300

400

20

30

164 914.7% 16.7%

23.1% 21.7%21.4%

200

300

400

20

30

RMB Million

58.6 80.7 100.8 123.6

0

100

200

2007 2008 2009 1H 2009 1H 20100

1056.1

87.8

164.9

87.3 109.3

0

100

200

2007 2008 2009 1H 2009 1H 20100

10

2626

2007 2008 2009 1H 2009 1H 2010

Revenue ContributionRevenue Contribution

Revenue by GeographyRevenue by GeographyRevenue by Customer TypesRevenue by Customer TypesRMB MillionRMB Million

40.2mm40.2mm5.2%5.2%

RMB MillionRMB Million

256 5mm256 5mm

15.5 mm15.5 mm3.0%3.0%

5.1 mm5.1 mm1.3%1.3%

731.7mm731.7mm94.8%94.8%

13.7mm13.7mm3.6%3.6%

37.7mm37.7mm7.6%7.6%

256.5mm256.5mm33.2%33.2%

185.6 mm185.6 mm35.4%35.4%

127.4mm127.4mm25.3%25.3%

509.5 mm509.5 mm97.0%97.0%

375.3 mm375.3 mm98.7%98.7%

365.1mm365.1mm96.4%96.4%

465.5mm465.5mm92.4%92.4%

515.4mm515.4mm66.8%66.8%

339.4 mm339.4 mm64.6%64.6%

136.2 mm136.2 mm35.8%35.8%

244.2 mm244.2 mm64.2%64.2%

135.9mm135.9mm35.9%35.9%

242.8mm242.8mm64.1%64.1%

375.9mm375.9mm74.7%74.7%

The PRC market is and will continue to be ourprimary focus. However, we have also rapidlypenetrated to international market.

Dairy producers accounted for approximatelytwo-thirds of our revenues while beverageproducers accounted for around one-third. p

We have seen very strong demand for ourproducts from the international customers andexpect to grow this business as our reputationgrows.

producers accounted for around one third.A strong focus on dairy producers because thissegment has the highest entry barriers and themargins are higher.Will continue to focus on dairy segment whilealso increasing sales to high growth beverage

2727

also increasing sales to high growth beveragecustomers.

Effective Cost ControlEffective Cost Control

LPB is the largest component of raw material costs LPB is the largest component of raw material costs ––its price has historically been stableits price has historically been stable

OverheadOverhead costs have decreased as a percentage of costs have decreased as a percentage of revenue due to effective cost managementrevenue due to effective cost management

Raw MaterialsRaw MaterialsRMB MillionRMB Million Raw materials as % of revenueRaw materials as % of revenue

OverheadOverheadRMB MillionRMB Million OverheadOverhead as % of revenueas % of revenue

its price has historically been stableits price has historically been stable revenue due to effective cost managementrevenue due to effective cost management

67.0%64.6%

57.8% 56.7% 55.9%

600

700

60%

80%

76.9

8.4%9.4%10.0%

12.1%13.5%

75

100 15%

84.4

135.8

254 8

339.0

446.2

281.4300

400

500

40%

60%

51.3

42.235 6

63.3

50

75

0%

140.3111.1

231.4163.8

115.7

75.1

84.4

66.1

76.3254.8

214.7

100

20020%

35.6

25

(15.0%)

90.7 78.937.5 64.864.0

02007 2008 2009 1H 2009 1H 2010

0%

Polyethylene LPBOther Raw Materials TotalRaw Materials as % of Revenue

(1)

02007 2008 2009 1H 2009 1H 2010

(30.0%)

Overhead Cost Overhead % of Revenue

28

Raw Materials as % of Revenue

28

Notes1. Other raw materials include aluminum foil, product packaging materials and ink.

Operating Expenses AnalysisOperating Expenses Analysis

Distrib tion CostsDistrib tion Costs Administrati e E pensesAdministrati e E pensesDistribution CostsDistribution Costs Administrative ExpensesAdministrative Expenses

5.1% 4.2% 4.8%4.6%5.2%50 10%

RMB MillionRMB Million % of Total Revenue% of Total Revenue RMB MillionRMB Million % of Total Revenue% of Total Revenue

8.7%7.2%4.1%4.4%5.6%60 10%

3.2

7.1

0.31

24.4

39.8

30

40

(10)%

0%

3 2

12.2 10.3

45.443.4

40

50

(10)%

0%

21.9

3.62.5

1.7

1.9

3.23.5

7.3

2.64.3

4.7

2.6

2.62.1

0.040.01

0.05

17.3

22.219.6

10

20

(40)%

(30)%

(20)%

2.4

3.2 3.8

1.8 2.44.96.6

0 5

7.0

6.96.72.1

9.03.7

5.3

27.5

16.520.6

10

20

30

(40)%

(30)%

(20)%

10.7 13.710.4

13.6

02007 2008 2009 1H 2009 1H 2010

(50)%

(40)%

Freight Expenses Sales Personnel Out of

11.0 14.018.5

7.511.70.53.5

(1.2) (0.7)0

10

2007 2008 2009 1H 2009 1H 2010(50)%

(40)%

Salaries and Social Amortization and Freight Expenses Pocket Expenses

Salaries and Social Security Expenses

Others(1)

Advertising and Promotional Expenses

Distribution as % of Revenue

Security Expenses DepreciationProvision for Impairment of Accounts Receivables and Inventory

Others(2)

Travel and Office Expenses

Administrative Expenses as % of Revenue

2929

Notes1. Exporting fees and technical support fees2. Including (i) office and lodging rental expenses; (ii) third party service charges; (iii) research and development expenses related to the opening of

our R&D Centers; (iv) local tax and governmental fees; and (v) miscellaneous expenses

Working Capital ManagementWorking Capital Management

Effective Working Capital Management Ensures Healthy Cash FlowEffective Working Capital Management Ensures Healthy Cash Flow

Inventory Turnover DaysInventory Turnover Days(3)(3)Trade Receivable DaysTrade Receivable Days(1)(1) Trade Payable DaysTrade Payable Days(2)(2)

DaysDays DaysDays DaysDays

Trade receivable days decreasedbetween 2007 and 2009 mainly dueto tightened credit management.

Trade payable days decreasedsignificantly between 2007 and 2009due to increased purchases of imported

As production volumes increasedbetween 2007 and 2009, inventoryturnover days increased as weto tightened credit management.

It increased in 1H 2010 due toincreased credit periods extended toseveral key customers.

p praw materials which require advancepayment .It increased in 1H 2010 due to our newHelingeer factory, as we needed to buildour stock of raw materials extended toseveral key customers.

yprepared for business expansion.It decreased in 1H 2010 due to furtherimprovements in stock and inventorymanagement.

3030

Notes1. Net trade receivable days = (365 for full year or 182 for half year) x (average of the period beginning and ending net trade receivable balances)/revenue2. Net payable days = (365 for full year or 182 for half year) x (average of the period beginning and ending net trade payable balances)/cost of sales3. Inventory turnover days = (365 for full year or 182 for half year) x (average of the period beginning and ending inventory balances)/cost of sales

y

Capex and Use of ProceedsCapex and Use of Proceeds

Historical Capital ExpendituresHistorical Capital Expenditures Use of ProceedsUse of ProceedsRMB MillionRMB Million

Domestic Capacity

Expansion Repayment of p(Gaotang or New

Facility)25%

p yBank

Borrowings30%

Domestic Capacity E i

European Capacity

ExpansionPotential Future

Acquisitions

Expansion(Helingeer)

15%

p20% 10%

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AppendixAppendix

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Glossary

Aseptic packaging: Sealed, sterile containers filled by sterile food and beverage products under an aseptic environmentenvironment.

Aseptic packs: Reels of packaging materials for aseptic packaging of dairy products or NCSD

LPB: Liquid packaging board, one of the core raw materials used in aseptic packs

LDP: Liquid Dairy Products includes UHT fresh milk and yogurtLDP: Liquid Dairy Products, includes UHT, fresh milk, and yogurt

NCSD: Non-carbonated soft drinks

RTD: Ready-to-drink

Roll: Cylindrical spool of aseptic packs, before slittingy p p p , g

Reel: Smaller division of a roll, after slitting

Standard roll-fed filling machines: industry standard roll-fed filling machines commonly used among dairy and NCSD customers

Shelf stable: Products that remains sterile for longer than 6 months without refrigeration and preservatives

Former and New Company Logos:

Our original brandNew trademark for products manufactured at

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Helingeer factory

Aseptic Packaging SystemsAseptic Packaging SystemsBlankBlank--FedFedRollRoll--FedFed

At aseptic packaging material manufacturer’s site At aseptic packaging material manufacturer’s site At aseptic packaging material manufacturer’s site At aseptic packaging material manufacturer’s site

The aseptic packaging material is produced at the materialmanufacturer site as rolls. Then it’s shipped to dairy andb d ’ it

Blank material is produced at the material manufacturer siteas individual flattened cartons. Then it’s shipped to dairy andb d ’ itbeverage producer’s site.

At dairy and beverage producer’s site At dairy and beverage producer’s site

beverage producers’ site.

At dairy and beverage producer’s site At dairy and beverage producer’s site

Material rolls are fed into filling machines and go throughcertain functional process, such as tension control, stripapplication and sterilization.The material is then made into a moving vertical cylindricaltube after sterilization. Simultaneously, already sterilized milkor beverage is filled into the tube

The flattened cartons are fed into filling machineFirst the cartons are expanded and erected on the fillingmachine. After the bottom is sealed, inner surfaces of thecarton will be sterilized.After the sterilization, milk or beverage is filled from the open

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or beverage is filled into the tube.It’s sealed horizontally below the liquid level to make intoindividual packaging and formed into desired shapes.

top.At last, the top is sealed and made into desired shapes.

Thank you!Thank you!Thank you!Thank you!

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greatview greatview aseptic packaging aseptic packaging

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