Corporate Presentation Aug 2013
Agenda I. Landscape for Tissue Industry in China II. SWOT of Vinda III. About Vinda 2
I. Landscape for Tissue Industry in China 3
Accelerating Urbanization China Tissue Market Market size (RMB) 2012 2011 Change 68.9b 66.2b +4.1% Sales Volume (tons) 5.62m 5.25m +7.1% Accelerating Urbanization Net export (tons) Per capita consumption 0.49m 0.42m +17.1% 4.20kg 3.90kg +7.7% Urbanization to be accelerated with the support of Government policy. Current per capita consumption of 4.2kg which is far below the world s average; will reach 8kg by 2015. Citizens trade up their consumption habit and thus higher demand in high quality product. China Tissue Market 2012 2011 Virgin wood pulp 71.2% 58.8% Grass pulp 9.7% 15.3% Bagasse pulp 7.6% 10.2% Bamboo pulp 6.7% 8.9% Mixed pulp 4.8% 6.8% Waste paper pulp 71.2% 58.8% 4
Bigger Influence by Modern & Online Channels China s GDP growth was slowing down. GDP growth was mainly driven by domestic consumption. China is expected to become the strongest economy by 2025. 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Bigger Influence by Modern & Online Channels 138% 105% 40000 75% 70% 66% 50% 33000 36% 21% 25% 1.1% 2.0% 2.9% 4.3% 6.2% 8.4% 10.4% 11.8% 13.0% 13040 19500 26500 7846 4610 2630 1281 2008 年 2009 年 2010 年 2011 年 2012 年 2013 年 2014 年 2015 年 2016 年 150% 100% 50% 0% -50% -100% -150% -200% Modern channel sales. China: 50%. Europe & USA: 85%. Japan & Korea: 75%. China modern channel is expected to reach 69% by 2016, according to Euromonitor. E-commence will become the growth driver in foreseeable future with approximately 500m internet users in China. E-sales in China is expected to grow 200% from 2012 to 2016. Online sales Growth 网购规模 (in RMB100million) ( 亿元 ) 增长率 Rate 占零售总额比例 As % of total retail sales 5
II. SWOT of Vinda 6
SWOT of Vinda Strength National & strong brand equity with leading market position. Extensive yet ongoing expanding distribution network (i.e. exceed 300,000 points of sales) Weakness Weaker R&D capability. Limited overseas market exposure. High production efficiency. Unified team with great loyalty and commitment to the Company. Opportunity Threat Urbanization trend boost up demand in high-quality tissue. Collaboration with SCA. Abundant supply of production capacity in China. Price-competition. 7
3 About Vinda 8
Vinda s Vision To become the consumers first choice for household hygiene products 9
Vinda s Mission Provide people with high quality household hygiene products 10
Vinda s Value Professionalism Innovation Integrity Sustainability 11
Vinda s Snapshot 2011 + 32.3% Revenue: HK$4,765 million 2007 2012 Revenue CAGR 27.7% 2007 2012 Net Profit CAGR 46.9% Established in 1985 and listed on HKEX in 2007, being the first local enterprise to use woodpulp to make household paper. Currently the 3 rd largest player in mainland China, with 11% of market share*. 9 production sites with more than 8,000 employees. Established V-care, 41% associate company in 2010, for personal care product business development. The most renowned brand with 28 years of history. * Source: Nielsen for FY2012 12
Organization Chart Chairman (Executive Director) Vice-Chairman (Executive Director) CTO (Executive Director) CEO (Executive Director) COO CFO VP of Sales & Marketing x 4 CHO Supply-chain Department IT Department Administrative Department Finance & Accounting Department Sales Department Marketing & Media Communication Department HR Department * As of 30 June 2013, Vinda Group has over 8,000 employees. 13
Extensive Distribution Network As of June 2013, the Group has 235 sales offices &1,457 distributors, covering over 300,000 points of sales. Top ranking in online sales platforms. 14
Well-covered Production Sites 9 production sites with targeted designed production capacity: 2013: 760,000 tons 2014: 890,000 tons 2015: Two-pronged development strategy (self-production + external source) Use Toscotec paper-making machineries, latest paper-making technology from Italy. Equipped with fully automated logistic and warehouse system. Production plant 15
Great Variety of Home Care Product Series High-end Medium-high end Medium end Low end 16
Adhere to Sustainable Development Jiangmen Manufacturing Base has been chosen as the Demonstration Project under the Cleaner Production Partnership Programme by Hong Kong Productivity Council. Established Vinda Environmental Conservation Scholarship with the Chinese University of Hong Kong. Committed to carbon reduction policy and collaborated with raw wood pulp suppliers who are certified by major international forest certification systems. Effectively cut emissions of sulfur dioxide with advanced filters, and improved water recycle rate from 90% last year to over 95%. 17
To Become Consumers First Choice Become a disposable hygiene product provider Diversification into 4 brands covering 4 different care-segments Home care Baby care Feminine care Elderly care Elderly care brand Consumer tissue Diapers Sanitary napkins Incontinence products Wet wipes Nappies Panty Liners Kitchen towel Baby wipes Away from home Training pants 18
THANK YOU 19