Youcan Foods International Limited

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Youcan Foods International Limited
Corporate Presentation - HY 2006 Analysts
Briefing
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Agenda About Youcan Results Review Going
Forward
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We aim to be the Asia-Pacifics leading brand of
ice-cream and frozen food products.
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Who We Are Specialist in ice-cream and frozen
food products No.1 brand in Hangzhou and
Zhejiang Products found in 130 cities in the PRC
and the number is still growing
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Competitive Strengths

• Brand Equity
• The Youcan brand name is one of Chinas leading
  brands
• Regular On-Going Brand Building Exercise
• Profit Sustainability
• 50 of Revenue Generation by New Products
• Youcan RD Plays Key Role on Sustained
  Profitability
• Internal Feedback Mechanism with Suppliers
  Distributors keeping Youcan On-The-Ground
• Responsive to Real Demand for Youcans New
  Products

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Brand Achievements
1997 Hangzhou Branded Product
1998 Zhejiang Branded Product / Zhejiang Province Famous Brand
2003 China Top Brand for frozen dumplings and glutinous rice balls
2003 National Consumers Satisfied Product for Ice-cream
2005 Internationally recognized China Famous Trademark
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Brand Achievements
HACCP, 2004
ISO 14001, 2003
ISO 9001, 2003
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Corporate Milestones
Oct 1991 Founding of Hangzhou Youcan Food Co. Ltd by Executive Chairman and CEO, Mr Dai Tianrong
June 1992 First ice-cream marketed under Youcan brand
June 1995 Expanded product offerings to include ready-to-eat frozen food products
Nov 2004 Listed on mainboard of SGX
2005 Frozen food ice cream production plant attained export-compliant status
June 2006 First foray into Singapore export market


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Corporate Culture
Staff and Top Management Equally Motivated
Youcans Factory Entrance
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Strategic HR Policies

• Recent Appointment of Mr Li Bin of Deputy CEO
• International Outlook and Strong Financial
  Background
• Mr Li Bin, Deputy CEO
• Credentials
• Lecturer in Zhejiang University, Institute of
  Petrochemical Technology
• General Manager of Zhejiang Industrial and
  Commercial Bank
• Ran a Trademark Partnership Firm in Zhejiang
  Province
• Joined Hangzhou City High Technology Venture
  Capital Company
• Youcans HR Far-Sighted Policy Complements Global
  Outreach

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Market Data
Listing Status SGX Mainboard Listed since 22 Nov 2004
IPO Offer Price (Per Share) S0.25
Current Price (Per Share) S0.245
Post-IPO Shares in Issue 48 million
Utilization of Proceeds Expand sales and marketing network expand production capacity Product Development and Working Capital
PE Ratio (Historical 2005) 10x
Market Capitalization S47 million
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Major Shareholders
Dai Tianrong 46.45 Tony Chew Leong Chee
(Macondray Company Ltd) 16.02 Sam Goi Seng Hui
(Tee Yih Jia) Associates 16.13
Senior Management
Mr Dai Tianrong Executive Chairman and Chief
Executive Officer Mr Li Bin Deputy CEO and
Executive Director Mr Jong Voon Hoo Chief
Financial Officer
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Major Shareholders
Growing Market Presence

• Approximately 280 distributors and more than 40
  supermarket chain operators including
  
• ,
• ????,????,?? and many more around PRC. In fact,
  our market presence include 40 supermarket chains
  with 1,000 point of sales and more than 10,000
  freezers out in the streets.

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Estimated Market Share
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Distribution Networks and Channels
Traditional Distributor Network
Supermarket Network
E-Commerce Network
4 networks
Direct Retail Network
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Market Prospects Ice-cream
Total market for diary products in PRC has been
growing at 8 CAGR for the past 6 years Approx.
RMB 30 billion in annual sales for ice cream in
PRC in 2005 Approx. S 100 million in annual
sales for ice cream in Singapore in
2005 Selected consumption pattern for
comparisons - New Zealand 26.3
litres/capita - US 22.5 litres/capita - PRC
1.8 litres/capita (average) - PRC 6.6
litres/capita (Beijing)
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Market Prospects Frozen Foods
Total market for frozen food (dim sum) products
in PRC has been growing at 8 CAGR for the past 6
years Approx. RMB 1.5 billion in annual sales
for frozen foods (dim sum) in 2005 93.5 of
urban households 16.7 of rural households
already now own fridges and the trend is
increasing, thus implying increased accessibility
of our products
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Media Plant Visit
June 2006
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Analysts Plant Visit

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Marketing Activities (Singapore for HY06)
Food and Hotel Asia 2006 Singapore EXPO 25th
-28th April
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Marketing Activities (Singapore for HY06)
IE Singapore Family Day 2006
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Marketing Activities (Singapore for HY06)
12 July 2006 - Media Tasting at Intercontinental
Hotel
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Marketing Activities (Singapore for HY06)
Ad placement at MRT Stations
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Agenda Company Overview Results Review Going
Forward
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Financial Highlights
(RMB000) HY2006 HY2005 Change
Revenue 106,013 83,349 27.2
Profit from operations 8,355 7,006 19.3
Profit before tax 7,607 6,318 20.4
Net Profit attributable to shareholders 6,336 6,318 0.3
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HY06 vs HY05 Key Points

• Higher revenue due to better performance from
  both business segments
• Higher raw materials prices for sugar and higher
  selling and distribution expenses
• Corporate income tax of RMB1.3 million in HY2006
  on Groups China subsidiary

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Segmental Revenue
RMB (millions)
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EPS and NAV per share
(RMBcents) HY2006 HY2005
EPS 3.34 3.33
NAV 55.59 58.43
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Net Cash
RMB (millions)
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Proforma Revenue Trend
RMB (millions)
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Proforma Net Profit Trend
RMB (millions)
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Agenda Company Overview Results Review Going
Forward
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Strategic Initiatives
Immediate Launch of products in Singapore (July
2006), Singapore as a springboard for expansion
into rest of SEA. Next Step Expansion to
surrounding provinces of Youcans base in
Hangzhou, Zhejiang especially along the coastal,
more affluent regions. Expansion of Plants to
Capitalize on Economies of Scale Opportunities
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Strategic Initiatives
Long-term Expansion into rest of China, once the
brandname is established outside of
China Increase production capacity Make strategic
acquisitions and joint ventures Consolidate and
increase market share Strengthen product
development capabilities Build up brand equity
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Strategic Initiatives
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THANK YOU Visit our website www.youcan.com.sg