Disclaimer

This document is prepared by Yashili International Holdings Ltd (the “Company”) for corporate communications and general reference only. The document does not constitute an offer to sell or subscribe for any securities of the Company in any jurisdiction or serve as the basis of related investment decisions. All information included herein should not be used or relied on before obtaining professional advice. This document is a brief overview of the Company and does not constitute a complete description of the Company and its business activities, current and historical operating results or future operating prospects. Any information contained herein is provided without any express or implied representation or warranty. The Company disclaims any liability for any loss or damages howsoever arising from the use of this document or reliance upon any financial or other information in this document.

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Financial Summary

RMB million 1H 2015 1H 2016 VS 1H 2015

Revenue 1,464.8 1,146.5 -21.7%

Gross profit 721.8 580.5 -19.6%

Gross profit margin 49.3% 50.6% 1.4%

EBITDA 100.9 4.5 -95.5%

EBITDA margin 6.9% 0.4% -6.5%

Profit attributable to equity holders of the Company

109.3 15.1 -86.2%

Net profit margin 7.5% 1.3% -6.1%

Basic earnings per share (RMB cents)

2.4 0.3 -87.5%

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Sales Revenue Breakdown

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Yashily infant formula • Revenue amounted to RMB486.0 million, down by 37.2% year-on-year and 28.4% period-

on-period • Percentage of total revenue down by 10.5 percentage points from the same period last

year

Arla infant formula • Revenue amounted to RMB67.7 million, up by 219.3% year-on-year and 79.0% period-

on-period • Percentage of total revenue up by 4.5 percentage points from the same period last year

Scient infant formula • Revenue amounted to RMB59.2 million, down by 46.9% year-on-year and up by 31.1%

period-on-period • Percentage of total revenue down by 2.5 percentage points from the same period last

year

Oushi Mengniu infant formula • Revenue amounted to RMB162.7 million, up by 5.2% year-on-year and down by 3.5%

period-on-period • Percentage of total revenue up by 3.6 percentage points from the same period last year

Nutrition food products and others • Revenue amounted to RMB321.3 million, down by 20.3% year-on-year and 12.4% period-

on-period • Percentage of total revenue up by 0.5 percentage point from the same period last year

Dumex infant formula • Revenue amounted to RMB49.6 million, which was added to Yashili Group since June 2016

52.9%

1.4% 7.6%

10.6%

0.0%

27.5%

1H 2015

RMB1,464.8million

1H 2016

43%

6% 5%

14%

4%

28%

Yashili infant formula Arla infant formula Scient infant formula Oushi Mengniu infant formula Dumex infant formula Nutrition food products and others

RMB1,146.5million

(RMB million) (RMB million) (RMB million)

Sales, Administrative Expenses and Income Tax Expenses

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14.1

-27.7

11.4%

-218.1% -250.0%

-200.0%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

-40

-30

-20

-10

0

10

20

1H 2015 1H 2016

Income Tax

Effective Income Tax Rate

Sales and Distribution Expenses Administrative Expenses Income Tax Expenses

628.8

493.4 42.9%

43.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

100

200

300

400

500

600

700

1H 2015 1H 2016

Sales and Distribition Expenses

Marketing Expenses Rate

84.6

159.9

5.8%

13.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

0

100

200

300

400

500

600

700

1H 2015 1H 2016

Administrative Expenses

Management Fees Rate

Operation Efficiency Indicators

(1) Inventory balances at year end divided by cost of sales for the year and multiplied by 180 days. (2) Balances of trade and bills receivables at year end divided by turnover for the year and multiplied by 180 days. (3) Balances of trade and bills payables at year end divided by cost of sales for the year and multiplied by 180 days.

171

239

1H 2015 1H 2016

8

25

1H 2015 1H 2016

50

123

1H 2015 1H 2016

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Inventory turnover days (1) Trade receivable turnover days (2) Trade payable turnover days (3)

Cash Flow and Capital Expenditure

14.9

-107.5 (120.0)

(100.0)

(80.0)

(60.0)

(40.0)

(20.0)

0.0

20.0

40.0

1H 2015 1H 2016

RMB: million

207.4

48.7

-

50.0

100.0

150.0

200.0

250.0

1H 2015 1H 2016

RMB: million

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Note: Not including equity investment

Net operating cash flow Capital expenditure

Challenges, Opportunities and Strategies

Challenges Opportunities

The Administrative Measures for Registration of Recipes of Infant Formula Powder Products (the “Recipe Registration Requirement”) will be duly implemented on 1 October 2016, which will have significant impact on the industry. In principle, the Recipe Registration Requirement provides that each enterprise shall have no more than 3 product series (9 product recipes).

In 2016, the “nationwide two-child” policy has been officially implemented. The National Health and Family Planning Commission of the PRC preliminarily estimated that against this backdrop, the number of newborn babies would reach 17.5 million to 21.0 million each year during the 13th Five-Year-Plan Period. This has created a favorable condition for stable market demand for infant formula milk powder.

Brand Upgrade

Product Structure Optimization

Channels Transformation

Resources Consolidation

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1H

2016

2H

2016 • Make continuous efforts to

build up image as “New Domestic Products”

• Original products manufactured in NZ make greater contribution, targeted at specific distribution channels

New Domestic Products, New Vitality

“Immunity” Utmost pureness,

totally organic, the only ultra high-end

Domestically manufactured,

organic and high-end

Original products manufactured in NZ launched in foreign and domestic markets with multi-dimensional promotion

• Re-shape Dumex brand • Enhance promotion on

“Immunity” • Expand on high-end

“Diamor”

Brand Upgrade Strategies

• Extend growth in the first half and increase share in high-end organic market

Brand recognition rapidly built up leveraging on celebrities and resources

• Greatly promote “Rui Bu En” and build up organic product lines

Multi-Brands, New

Breakthroughs

• Channel Cooperation: Achieve rapid growth of Mengniu’s adult powder by leveraging on Yashili’s channels

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“Re-shape Yashily and accelerate Arla brand building”

“Stabilize Yashily, develop Dumex and organic Oushi, and expand Arla’s contribution”

Products Deployment and Structure Optimization

Core market

First- and second-tier cities

Eastern coastal region Central China region

Clear brand positioning and complete product portfolio Price differentiation and full price ranges Different claims to cater for different maternal needs

Third- and fourth-tier market: Penetration into Central region Yashily to leverage on new original products with continuous

channel transformation Oushi Mengniu to promote “Rui Bu En” for organic high-end growth Capture the market opportunities for adult powder First- and second-tier market: Focus on Eastern region Arla to extend growth and expand the share of the organic market Dumex to increase share in MBS and expand sales of high-end

product

Ultra high-end

Mid and low-end

400+

100+

Pure and organic

Global milk sourcing

Originally packaged and

imported

Innovative immunity

Third- and fourth-tier cities

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Differentiated market and precise deployment

1H

Acceleration of Channel Transformation — MBS

2H

Establish the Project Department dedicated to directly-managed MBS, launch universal marketing and explore new market

Introduce Partnership Program to deepen cooperation with MBS, and unleash potential of the teams by encouraging their own career with directly managed MBS

Emphasis on enhancing sales turnover and sales per point of distribution.

Focused on MBS expansion, and established the KMBS team that focused on domestic large and medium-sized MBS chains and mainly promoted original products imported from New Zealand

New account information reported by the KMBS team involved hundreds of MBS chain systems covering thousands of stores

Focus on Yashily

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Acceleration of Channel Transformation — EC

Completed transformation from a single sales platform into a multi-dimensional business platform Emphasized cooperation with three major customers, namely Tmall, Suning and JD.com, with year-on-year growth of 65% for JD.com’s “618” sales

Fostered social media vertical business and effectively attracted new customers via campaigns such as trial use of products invited by posts

Enhance the depth of cooperation with Tmall, Suning and JD.com Explore projects such as Village Taobao and downward channel penetration and build a new, sound model for cross-border e-commerce

Actively prepare for e-commerce campaigns and strive to be a leading domestic brand

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1H

2H

Major Customers’ Synergy

Resources Integration — Production Capacity Planning and Utilization

Yashili New Zealand Factory • First overseas infant formula factory

established by PRC company

Mengniu Helin Factory

• Top domestic model factory close to milk sources

Dumex Shanghai Factory

• Dumex’s production base with Danone’s global standards

Yashili Shanxi Factory

Yashili Chaozhou Factory

Longjiang Factory (Closed)

Guangzhou Factory (Closed) Proactively foster global synergy with

Danone to further enhance production capacity utilization

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Resources Integration — Supply Chain System Optimization

Realize the uniform vertical reporting mechanism for all factories

Scientifically rationalize production and reasonably match capacity with

products in demand in accordance with equipment capacity and packaging line

configurations, so as to increase utilization of equipment and production capacity,

save costs and also satisfy specific products’ mass production requirement

Establish the “Planning and Logistics Management Center”, which organizes

production plans, storage and order services for all factories

Establish the “Procurement Management Center”, which is responsible for the

consolidation of the Group’s procurement business and procurement

management with a view to realizing centralized procurement and reducing

procurement costs

Consolidate quality management resources of each company, including drawing

upon the extensive experience on quality management of Dumex which previously

was under Danone Group and the quality management rationale of Mengniu

Group; unify various standards within the Group, including raw material standards

and supplier audit standards, etc.

Production

Procurement

Quality Control

Planning , Storage and

Transportation

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Combining Global

Resources

The Group will continue to leverage on strong support and more advanced platforms rendered by COFCO, Mengniu

Group, Danone Group and Arla, so as to sufficiently create synergetic effect and achieve support and cooperation

among different parties in respect of branding, resources, management and technology to the largest extent, for

example, by leveraging on its strong bargaining power to save purchase costs, by exploring cooperation in production

to further improve capacity utilization, etc. The Group is devoted to building up an entire value chain for the dairy

industry covering production capacity synergies, complementary advantages and resources sharing.

More

Opportunities

Leading Research and

Development Results

Global Top Class Raw

Materials

Bargaining Power

in Purchase

Extensive Quality

Control Experience

New Domestic

Products Great Potential

Resources Integration — External Synergy

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