2009 Business Review & 2009 Year Plan 9 July 2009

Objective : - Understand PDM business - Align 2009 Goal and strategies Develop action plans

2009 Market Overview – Open Trade 1.1 Milk Powder 1.2 UHT AGENDA 2009 Market Overview – Open Trade 1.1 Milk Powder 1.2 UHT 2. PDM Performance Review 3. 2009 Goal & Strategy 4. Action Plans

2009 Market Overview MILK POWDER

1.1 2009 Market Overview Milk Powder Open Trade - Category Volume declined while value was consistent from product price increase. - Economics segment was a category driver.

1.1 2009 Market Overview Milk Powder - Dumex business declined while total category was consistent. - FO segment was a category driver.

2008 Market Overview UHT

1.2 2008 Market Overview UHT Dumex grew beyond category significantly , driven by HiQ.

PDM 2009 Performance Review

2. PDM – 2009 Performance Review SHIP IN -10.7%(G) -16.5%(G) -15.5%(G) Ship in growth was in line with Central.

2. PDM – 2009 Performance Review SHIP OUT by Brand PDM YTD growth was in line with Central. However, opportunites to have higer growth were Dupro, Dugro 1P, HiQ UHT1P and Dugro UHT3P.

2. PDM – 2009 Performance Review SHIP OUT by Shop type To have more growth, opportunities were turn around business in Tang Hua Seng and MBD/MWS.

2. PDM – 2009 Performance Review SHIP OUT by MBD/MWS store

Economics segment and Follow on were category drivers in open trade. Key Findings Economics segment and Follow on were category drivers in open trade. Dumex UHT has had significant growth (70%) so far which driven by HiQ. PDM Ship in and out were in line with Central. Dupro, Dugro 1P and HiQ&Dugro UHT 1P were opportunities to build higher growth in PDM. PDM did very well in Van and Pharmacy channel while opportunities were Tang Huo Seng and Sri Ngam.

2009 Goal & Strategy

“To achieve sales out 108 MB (Jul-Dec) and maintain inventory at 9MB.” 3. 2009 Goal & Strategy Goal : “To achieve sales out 108 MB (Jul-Dec) and maintain inventory at 9MB.”

3. Drive F.UHT Consumption 3. 2009 Goal & Strategy 2009 Strategy Win in Store 2. Win in Premium 3. Drive F.UHT Consumption 4. Strengthen Standard Range 5. Penetrate New Entry Users

Drive F.UHT Consumption PDM Plan Y2009 4. Action Plans July Aug Sep Oct Nov Dec Excellent execution Promotion implementation (Fast & Accurate) Price competitive Stock weight Best location of 2nd display Win in Store HiQ re-launch with excellent execution NPD maximization Win in Premium 3. HiQ old pack liquidation & accelerate new packaging on shelf Drive F.UHT Consumption Roll out carton pack Price competitive in market Double sit plan o gram Deeper discount for UHT1P

Strengthen Standard Range Penetrate new entry users PDM Plan Y2009 4. Action Plans July Aug Sep Oct Nov Dec Best location of 2nd display for Dupro and Dugro Special discount for Dugro Cross promotion with diapers category Strengthen Standard Range School Program Factory Program Penetrate new entry users 3. Co-operate with NA

Penetrate new users = 0.5 MB Source of Growth Est. Sales 2009 2nd half = 109 MB Penetrate new users = 0.5 MB Target 2009 2nd half = 108 MB Strengthen Standard = 1.5 MB Drive F.UHT = 1 MB Win in Premium = 1 MB Win in store = 3 MB AVG. Sales 2009 = 102.18 MB

Set up price structure for UHT carton packs. Next Step Deploy joint goal, strategies and action plans to Sales team and PC girls. Set up price structure for UHT carton packs. Set up double sit plan o gram. Prepare coupon for cross promotion with diaper category. Prepare one staff for school and factory program. Fulfill PDM team.

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