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.

2

Sun Yiping, Executive Director & Chief Executive Officer

Bai Ying, Executive Director & Vice President

Wu Jingshui, Executive Director & Chief Financial Officer

Liu Shengli, Vice President in Sales

Jesper Fournaise Colding, Vice President in Marketing

Lu Jianjun, Chief Administrative Officer

Chris Kwok, Financial Controller & Company Secretary

Zhai Mei, Assistant Vice President in Public Relations

Wu Wennan, Investor Relations Officer

3

Results Overview

Business Overview

Future Strategies

Results Overview

Business Overview

Future Strategies

RMB million

2012 2011 Change

Revenue 36,080.4 37,387.8 ↓3.5%

Gross profit 9,054.6 9,592.2 ↓5.6%

EBITDA 2,525.0 2,812.1 ↓10.2%

Profit attributable to owners of

the Company 1,257.1 1,589.3 ↓20.9%

Basic earnings per share (RMB) 0.711 0.908 ↓21.7%

Gross profit margin 25.1% 25.7% ↓0.6ppt

Net profit margin 3.5% 4.3% ↓0.8ppt

6

Liquid Milk

• Revenue amounted to RMB32,337.0M,

decreased by 4.0% YoY

• Proportion to the total revenue decreased

by 0.5ppt YoY

7

Ice Cream

• Revenue amounted to RMB3,171.5M,

decreased by 2.7% YoY

• Proportion to the total revenue increased

by 0.1ppt YoY

Other Dairy Products

• Revenue amounted to RMB571.9M,

increased by 33.6% YoY

• Proportion to the total revenue increased

by 0.4ppt YoY

8

UHT Milk

• Revenue amounted to RMB19,706.2M,

decreased by 5.4% YoY

• Proportion to the liquid milk revenue

decreased by 0.9ppt YoY

Milk Beverages

• Revenue amounted to RMB8,038.8M,

decreased by 3.3% YoY

• Proportion to the liquid milk revenue

increased by 0.2ppt YoY

Yogurt

• Revenue amounted to RMB4,592.0M,

increased by 0.8% YoY

• Proportion to the liquid milk revenue

increased by 0.7ppt YoY

9

Key brands such as Milk Deluxe特

仑苏, Champion冠益乳, Future Star

未来星 and Fruit Milk Drink真果粒

have remained high growth since

launching into the market. These

products have achieved double-

digit growth in 2012 while Youyi C

achieved triple digit growth.

17% 19%

23% 25%

27%

0%

5%

10%

15%

20%

25%

30%

2008 2009 2010 2011 2012

Proportion of high-end products

10

25.6%

22.3%

13.8%

7.5%

30.8%

Liquid Milk Market in 2012

Mengniu A B C Others

28.0%

25.5% 17.8%

6.8%

21.5%

UHT Market in 2012

Mengniu A B C Others

Liquid milk: Includes UHT and chilled

product categories (excluding milk powder,

ice cream and cheese)

Source: AC Nielsen

19.7%

12.9%

20.6% 7.2%

39.6%

Chilled Product Market in 2012

Mengniu A B Junlebao Others

Receivables Turnover (1)

Inventory Turnover Payables Turnover (2)

Net Cash from Operating Activities

(RMB million)

11 (1) Receivables Turnover = [(Average balance of Trade and Bills receivables) / Revenue] x No. of days

0

5

10

2011 2012

6.9 8.3

0

1,500

3,000

2011 2012

2,520.1

2,006.9

(2) Payables Turnover = [(Average balance of Trade and Bills payables) / Cost of Sales] x No. of days

0

15

30

2011 2012

18.8 21.0

(Day)

(Day)

0

30

60

2011 2012

47.5 49.7

(Day)

Results Overview

Business Overview

Future Strategies

Optimised organisational structure,

improved the utilisation efficiency

of resources and aligned decisions

with market trends

Rationalised the brand category,

re-profile a new image and focused

on brands with high growth potential

Proportion of raw milk from ranches of

intensive production models and scaled

farms increased to 93%, ensuring quality of

milk sources

Introduced Arla Foods as a strategic

shareholder, expending cooperation

from ranch and milk sources

management to production

management and product R&D, etc

Established 4 divisions, through 3 ends

interaction to strengthen quality control

management across the milk sources to

production chain

Five Actions

(1) Optimise Organisational

structure

(2) Rationalise Brand Category

(5)Strategic Cooperation with

Arla Foods

(4) Quality Management System

(3) Milk Source Quality

1 Streamline Vertical Structure

• Streamlined vertical structure to reduce communications between sales headquarter and points-of-

sale to enable quick response

2 Horizontal Integration

• Strengthened the horizontal integration of internal sales functions and coordination of sales and

marketing functions

• Effectively integrated product categories and built a centralised platform to enhance the utilisation

efficiency of resources

3 Enhance Professional Capabilities

• Strengthened professional capabilities of sales and marketing management, in particular undertook

breakthrough innovations in market research, product category planning and channels marketing

• Deployed more sales and marketing resources in major regions to speed up market responses and

bolster effective decision-making

14

4 Bolster Regional Efforts

•Future Star未来星

• XinYangDao新养道

• Awakening Youth Milk焕轻

• Champion冠益乳

• Youyi C优益C

• Mengniu Arla欧世蒙牛

Luxurious, exclusive, pure

nutritional choice

Satisfy needs for daily

nutrition

• Pure Milk纯牛奶

• Basic Yogurt基础酸奶

• Breakfast Milk早餐奶

• Flavoured Milk风味奶

A wide variety for

great enjoyment Tailor-made for

special needs

15

• Milk Deluxe特仑苏

• Arla Foods爱氏晨曦

Luxurious

Nutrition

Daily

Nutrition

Leisure

Nutrition

Professi-

onal

Nutrition • Suan Suan Ru

酸酸乳

• Fruit Suan Suan Ru

果蔬酸酸乳

• Latte奶特

• Sui Bian随变雪糕

• Deluxe蒂兰圣雪

16

Investment Method

Investment

Self-built and self-operated

Management Method

Strategic partnership

Entrusted management

Upgrade

Quality Administration

Centre in Milk Sources

Quality Administration

Centre in Operation

Quality

Administration

Centre in Sales

Quality and Safety Management System

17

Planting

Breeding

Primary Processing

Product Development

Procurement

Production

Ex-warehouse

Logistics

Sales

Customer Feedback

18

Supported by agricultural departments of China and Denmark — China-Denmark Milk Technology and Cooperation Centre

Advanced ranch and quality management system

Introduction and interaction of international experts

Product innovation and R&D

Long-term cooperation with suppliers

International quality management system

Brand value of “Closer to Nature”

Results Overview

Business Overview

Future Strategies

9%

12%

9%

21%

17%

15%

13%

8%

22%

UHT product Chilled product Frozen product

Market size by categaory

%, RMB100 million

CAGR %

11%

15%

8%

7%

36%

30%

55%

23%

7%

21%

2010-2011

12%

2011-2017

2%

25%

27%

1%

Soy milk

2,051

0% 4%

20%

9%

1% 3%

23%

26%

2011

1,845

0% 4%

20% 22%

3%

10%

2% 4%

23%

23%

2012

Cheese

1%

Infant milk formula

Ice cream

Yogurt

Probiotic drink

Fresh milk

Milk beverage

UHT milk

2017E

3,525

2%

Milk powder

3%

23%

27%

2010

1,600

0% 4%

19%

7% 8%

1%

12% 16%

Other products 20

0

100

200

300

400

500

600

Comparison of liquid milk expenses per capita (yuan)

0

20

40

60

80

100

120

Comparison of liquid milk consumption per capita (kg/person)

Source: China Dairy Industry Yearbook, USDA, CITIC Securities

21

Source: China Dairy Industry Yearbook, Euromonitor, CITIC Securities

1 Foundation

2 Steps

3 Strengths

4 Breakthroughs

Cross-departmental collaboration

Upgrade and transformation, achieving

balanced development

Strengthen in supply-chain, chilled

products and high-end products

Breakthrough in star products, channel

expansion, milk powder and imported

products

22

Brand

Focused Standards

Establishment

Network

Exploitation

Selling Power

Enhancement

23

跃动真我

Profit Contributor

Brand

Quality

+ Happiness

Opportunity

Brand

Backbone Brand

Star Brand

冰淇淋

Beyond

2013

24

Integration

Production

25

Marketing

Milk Source

奶粉

26

Infant and Adult

Formula

Expansion

Sales Channel

Expansion

Imports

Expansion

27

Comprehensive Quality

Management

Public Relations System

Human Resources Planning

ERP and CRM

Information Management

文化

Culture

系统 System

人 Talent

Sunshine, nobility, responsibility and innovation

Transparent communication and highly effective implementation capability

Capable teams of international professionals

Innovative thinking and practices

SAP information system

Supply chain management

Advanced management procedures and outstanding operational management

Communication

Integration

●

28

29

Products of the Best Quality

Most Professional

Most Devoted

Century-old

Mengniu

Thank You！

30

Values：Sunshine, Nobility, Responsibility and Integrity