Cp indicator

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Table of contents

Charoen Pokphand Foods Plc.

1


Section 1: Transaction Summary
“BUYER” “THE TARGET” “SELLER”

CPG and CPG and
Related Parties1) Related Parties1)
42.15%
100% 100%
C.P. Pokphand Co.,Ltd OSIL3) WAT4)
CPF Group2) 74.18% “CPP” (HKSE:43) 74.18% 68.32% 1.90%

CPI Holding Co., Ltd
3.96%

Total Consideration US$ 2,174 mm (THB 66,307 mm)
The diluted outstanding
Equity (31.4%) US$ 683 mm (THB 20,832 mm) shares post-transaction

Cash (68.6%) US$ 1,491 mm (THB 45,475 mm) 7,743 million
from 7,520 million
Consideration per share
CPP HKD 0.90 – Market Cap US$ 2,931 mm. (THB 89,396 mm)
CPF THB 30.00 – Market Cap US$ 7,397 mm. (THB 225,609 mm)

Note: 1) Charoen Pokphand Group Company Limited and its related parties (“CPG and Related Parties”) excluding Charoen Pokphand Foods Public Company Limited
2) Charoen Pokphand Food Public Company Limited and/or its subsidiaries (“CPF Group”)
3) Orient Success International Limited (“OSIL”)
4) Worth Access Trading Limited (“WAT”)
5) % represents percent holding as of Oct 11, 2011
6) USD 1 = HKD 7.78, USD 1 = THB 30.5 Charoen Pokphand Foods Plc.

3


Section 1: Transaction - Organization Structure Pre & Post

Pre – Transaction1),2) Post - Transaction1)

CPG and
Public
CPG and Related Parties3)
Public CPIH4) Public
Related Parties3) 50.10% 49.90%

42.15% 70.22% 3.96%
CPF
57.85% 25.82%
CPP 74.18%
CPF
HK: 0043
CPP
29.18% 70.82%
HK: 0043

70.82%
CPV - VIETNAM
29.18%
CPV - VIETNAM

Note: 1) Simplified organizational structure for presentation purposes
2) Organizational Structure as of October 11, 2011
3) Charoen Pokphand Group Company Limited and its related parties (“CPG and Related Parties”) excluding Charoen Pokphand Foods Public Company Limited
4) CPI Holding Co., Ltd (“CPIH”)

4


Section 1: The Target in Brief
Business Structure

C.P. Pokphand Co.,Ltd
“CPP” (HKSE: 43)
100% 70.82%1)

CHINA VIETNAM
Charoen Pokphand Vietnam (“CPV”)

Agri - Business Agri & Aqua Businesses
Other Business
Feed Feed – Farm - Food

“Market leader in feed” • Chlortetracycline (CTC) “Market leader in agri-food”
Feed Business • Feed Business: No. 1 player in the
• Industrial
• No. 2 largest feed player in – Motorcycle livestock feed and shrimp feed with
China by sales volume – Caterpillar Machinery 7 feed mills throughout Vietnam
Dealership
• Recognized brand “Chia Tai” – Automotive Accessories
• Farm Business: No. 1 player in
with 30 yrs track record commercial farming of poultry and
• 78 feedmills across 28 provinces swine in Vietnam
and municipalities
• Food Business: Growing player in
Vietnam market

Note: 1) The acquisition of CPV was completed as of July 29, 2011

5


Section 1: Transaction Rationale

Enter high-growth potential markets : China and Vietnam
High population: China 1,341 million people, Vietnam 88 million people
High economic growth
High potential for consumption growth
Opportunities in feed, farm and food
− Modernize feed and farm industry
− Food security concern
Gain controlling interests of the leading players
CPP is the No.2 feed player in China (by volume)
CPV is the No.1 in commercial feed and farm player in Vietnam (by market share)
Enhance the globalization covering 12 countries of over 3,000 million people
Diversification in revenue
Leverage economies of scale
Synergize of competencies


6


Section 1: Post -Transaction Operation Structure
CPF + CPP – Post Transaction

CPF
(Consolidated)

CPF THAILAND CPP CHINA HK:43 CPF INVESTMENT
Associate Companies
(74.18%) (Overseas)

Domestic CPV (Vietnam) (70.82%) Turkey (100%) CPV (Vietnam) (29.18%)

India (100%) SET: CP ALL (31.25%)
Export Post Transaction2) TW:1215 CPE(Taiwan) (32%)
Malaysia (100%)
CPH (Malaysia) (50%)
UK (52%)
CP Aqua (India) (32%)
Laos (99.61%)
CP Cambodia (25%)

China (100%) CP Insurance (24%)
Arbor (50%)
Russia (99.99%)
Ross (50%)
Philippines (100%) Nava84 (25%)

Note: 1) % represent percent holding only
2) CPF will indirectly own 81.71% of CPV (Vietnam) post-transaction. Charoen Pokphand Foods Plc.

7


Section 1: Post - Transaction CPF Positioning
Post transaction........
Post Transaction………………

CPF will be, UK
Russia
• Top ranked listed livestock
and aquaculture company in
Asia-Pacific (by market cap) Lao

China
• One of the leaders in animal Taiwan
feed in the world (by volume)
Turkey
Vietnam
• One of the most fully
integrated and diversified
Philippines
agro-industrial companies in India
Asia-Pacific
Thailand Cambodia
• The World leader of
integrated shrimp business
Malaysia
• The globalized company with
operation in 12 countries
populations covered >3,000 million people


8


Section 1: Pre & Post Transaction Revenue Structure
2010 Revenue Structure by Operation
CPF at present As if CPF + CPP + CPV
(2010 Total sale US$ 6.2 billion (2010 Combined sale US$ 9.2 billion
Or THB 189,049 million) Or THB 280,465 million)

Overseas
26%
13% +48% 51%
Export
9%
61%
Thailand 40%

2010 Revenue Structure by Product
CPF at present As if CPF + CPP + CPV
(2010 Total sale US$ 6.2 billion (2010 Combined sale US$ 9.2 billion
Or THB 189,049 million) Or THB 280,465 million)

Food 13%
18%
+48% 33%
Farm 44%
Feed 37%
54%

Note: 1) USD 1 = HKD 7.78, USD 1 = THB 30.5 Charoen Pokphand Foods Plc.

9


Section 1: 1H2011 Pro-Forma Financial Highlights2), 3)
1H2011 Revenue (US$ Million) 1H2011 Gross Profit (US$ Million) and Gross Profit %

US$ Million US$ Million +52% GM%
+57% (Bt 155 bn)
6,000 900 17.2% (Bt 26 bn) 17.5%
5,084 800 17.0%
700 16.7%
16% 16.5%
4,000 3,245 (Bt 99 bn) 600
500 16.0%
400
15% 850 15.5%
2,000 1,191 300 559 15.0%
648 200
100 14.5%
192 99
0 0 14.0%
CPF CPP CPV Pro Forma CPF CPP CPV Pro Forma

1H2011 EBITDA (US$ Million) and EBITDA % 1H2011 Net Profit (US$ Million) and Net Profit % 4)

US$ Million US$ Million
+61% +25%
800 24% 25% 11%
400 12%
(Bt 21 bn)
700 350 (Bt 10 bn)
20% 8% 10%
600 300
14%
500 702 15% 250
8%
14% 5% 7%
400 9% 200 6%
300 10%
150
342
274 (Bt 8 bn) 4%
200 438 (Bt 13 bn) 100
5%
100 2%
154 50
110 64 71
0 0% 0 0%
Note: 1) USD 1 = HKD 7.78, USD 1 = THB 30.5 2) Pro Forma calculation based on 74.18% holding in CPP and 81.71% holding in CPV
3) Pro Forma calculation based on management’s estimation
4) Pro Forma adjusted net profit deducted the interests effect of the transaction assuming 5% interest rate
10


Section 1: 1H2011 Pro-Forma Financial Highlights
1H2011 EPS USD/Share, EPS THB/Share2) 1H2011Interest Bearing Debt (US$ Million) 3)

US$ Million
USD THB +13% +122% 3,534
4,000
1.42
1.60
1.25 3,000
1.40
1.20 1,592
1.00 2,000
0.80
0.60 0.04 0.05 1,000 288 363
0.40
0.20
0.00 0
CPF Pro Forma CPF CPP CPV Pro Forma

1H2011 Total Equity (US$ Million) 3) 1H2011 Net Debt to Equity Ratio (Times) 3)
US$ Million +54% Times

4,000 1.23
3,194 1.40

1.20 1.04
3,000
1.00
2,083
0.80 0.61
2,000
0.60
0.32
593 0.40
1,000 289
0.20

0 0.00
Note: 1) USD 1 = HKD 7.78, USD 1 = THB 30.5
2) Pro Forma calculation based on 74.18% holding in CPP and 81.71% holding in CPV
3) The compilation of the Pro Forma statement of financial position is reviewed by KPMG
11


Section 2: Determining the transaction terms
Transaction prices were determined with reference to 60-day and 180-day volume-weighted average price
(“VWAP”) due to recent market volatility. Purchase price of HK$0.9 per CPP share is equivalent to the
acquisition price of CPP Vietnam in July 2011.
CPP (43.HK) 60-day VWAP : HK$0.82 CPF (CPF.BKK) 60-day VWAP : THB 30.57
1.20 70,000 35 140,000
180-day VWAP: HK$0.88 180-day VWAP: THB 29.47

60,000 30 120,000
1.00

50,000 25 100,000
0.80

Volume ('000 shares)

Volume ('000 shares)
Share price (HK$)

Share price (THB)
40,000 20 80,000

0.60

30,000 15 60,000

0.40
20,000 10 40,000

0.20
10,000 5 20,000

0.00 0 0 0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
Daily traded volume (' 000) CPP HSI Daily traded volume (' 000) CPF SET

Acquisition price was set at HK$0.9 per share of CPP
Share issue price was set at THB30.00 per share of CPF
Source: Bloomberg, Share price data as of 26-Sep-11

13


Section 2: Valuation Consideration - CPP
Acquisition price of HK$0.9 per share was determined with reference to 60-day (HK$0.82) and 180-day
(HK$0.88) volume-weighted average price (“VWAP”) due to recent market volatility.

HK$0.9 per CPP share implies,

LTM P/E of CPP

11.83x Comps: 12.1x – 30.3x
Acquiring a majority stake in a listed
company in Hong Kong on average
LTM P/B of CPP has a control premium of 46%
(data from 2000 to 2011)
3.94x Comps: 3.2x – 4.7x

LTM EV/EBITDA of CPP

7.80x Comps: 10.9x – 18.6x

Notes:
1) LTM numbers of CPP includes CPV business
2) Purchase price of HK$0.9 per share is equivalent to the acquisition price of CPV in July 2011
3) 60-day and 180-day VWAP as of 26 Sep 2011


14


Section 2: Indicative timetable

Extraordinary
Book Closure General Meeting
(“EGM”)

2011 21 Dec 2012 18 Jan
November December January
25 Nov

Board of Director’s
Approval of the
Transaction


15


Section 3: The Target CPP - Corporate in Brief
Position

CPP is China’s leading and respected livestock and aquaculture feed developer and producer

• 2nd largest feed player by sales volume
正大)
正大
• Premium brand : “Chia Tai” (正大 brand, a well established with 30 yr. track record in China
• Largest distribution network: 28 provinces / municipalities; 24,000 exclusive agents1)

Highlights 1H2011 Revenue Structure by Business

• Vision: To play the leading role in Others,
developing and producing high quality 5%
feed solutions

• Current Market Cap: US$ 2.9 billion as of
Feed
Nov 24,11
, 95%

1H2011 Revenue: US$ 1.2 billion
http://www.cpp.hk/en/home/main.do?method=home

Note: 1) Information as of December 31, 2010
2) USD 1 = HKD 7.78, USD 1 = THB 30.5

17


Section 3: China Market Outlook
China

Number of
Populations 1,341.4
(Million)
2011E
GDP Growth 9.5%
%Y-O-Y
GDP per Rising income, growing population, and increased urbanization lead to increasing animal
Capita protein consumption

$ US per capita 2010 – 2015E CAGR = 12.0%
7,713
8,000 6,986
6,323
5,716
6,000 5,184
4,382

4,000

2,000

0
2010 2011E 2012E 2013E 2014E 2015E

Source: International Monetary Fund


18



China
Poultry 2011 Poultry Consumption Per Capita (kg) 2011-2020 Estimated Poultry
Consumption 43.3
Consumption Per Capita (kg) in China
+ 20.6%
11.7
12.0 10.1 10.3 10.7
9.7
10.0
17.5 8.0
12.9 6.0
9.7
4.0
2.0
0.0

China Thailand US EU 2011E 2012E 2013E 2015E 2020E

Pork 2011 Pork Consumption Per Capita (kg) 2011-2020 Estimated Pork
Consumption 40.9 Consumption Per Capita (kg) in China
38.2 + 25.1%
47.8
26.0 50.0 40.3 42.6
38.2 39.3
40.0
30.0
10.0 20.0
10.0
0.0

China Thailand US EU 2011E 2012E 2013E 2015E 2020E

Source: The Food and Agricultural Policy Research Institute (“FAPRI”) 2011

19


China
Feed and Government’s efforts to modernize the feed industry and to raise efficiency and safety
Food Safety standards, thus, feed producers and scaled farms require higher feed quality.
Awareness
Feed Volume 2009 – 2015E CAGR = 6.3%
(mm Tons) 201
156 167
139
Increasing
penetration
48% rate of
38% commercial
feed

2009 2010 2012E 2015E

Industry Market consolidation and increasing proportion of scaled farms lead to more demand for
Consolidation commercial feed products.
Feed Volume
Number of China Commercial Feed Producer (mm Tons)
137 139
15,376 123
13,612 111
12,291 11,000

Top 10
Players
24% 29% Market
Share
2007 2008 2009 2010 2006 2007 2008 2009

Source: China and Vietnam Feed Industry Statistics, Rabobank, 2010

20


Section 3: CPP – Financials Highlights
Total Revenue US$ Million

Revenue Developments US$ Million Feed Others 1,951
2,000 + 63.3%
•1 Since feed business Feed 1
business 1,191
acquisition, total revenue 1,500
injection
increased significantly in 729
1,000
2010 2
95%
500 64 74
• Majority (~ 95%) of revenue
2
is attributed to the feed 0
business in 1H2011 2008 2009 2010 1H2010 1H2011

Gross Profit (US$ Million) and Gross Profit %
US$ Million Feed Others GM% 3 GM%
Gross Profit Developments
350 15.7% 16.2% 18.0%
15.9%
•3 Gross margin continues to 300 16.0%
12.8%
increase over the years 250
14.0%
+ 68.4% 12.0%
9.4%
200 10.0%
150 310 8.0%
6.0%
100
4.0%
50 6 10 114 192 2.0%
0 0.0%
2008 2009 2010 1H2010 1H2011

Note: USD 1 = HKD 7.78, USD 1 = THB 30.5 Charoen Pokphand Foods Plc.

21


Section 3: CPP – Financials Highlights
Capital Expenditure EBITDA (US$ Million)
US$ Million
US$ Million
34 250.0 218
35.0
30.0 200.0
25.0 22
150.0 110
20.0
11 83
15.0 100.0
10.0 2
2 50.0 14 15
5.0
0.0 0.0
2008 2009 2010 1H 2010 1H2011 2008 2009 2010 1H 2010 1H2011

Net Profit (US$ Million) and Net Profit % Interest Bearing Debt and Net D/E (Times)
US$ Million NP % US$ Million
140 133 14.0% 450 427 0.70
11.6%
120 12.0% 400 0.59 0.60
350
100 10.0% 288 0.50
300
80 7.0% 8.0% 240 0.40
64 250
6.8% 0.32 0.30
60 4.6% 6.0% 200
51 5.4% 0.18
150
40 4.0% 0.20
100
20
3 9 2.0%
50 18 0.05 10 0.10
0 0.0% 0.03
0 0.00
2008 2009 2010 1H 2010 1H2011 2008 2009 2010 1H 2010 1H2011

Note: USD 1 = HKD 7.78, USD 1 = THB 30.5 Charoen Pokphand Foods Plc.

22


Section 3: CPV - Corporate in Brief
Position

C.P. Vietnam Corporation (“CPV”) is a vertically integrated agri-business and food company
in Vietnam.

• The “market leader” in commercial feed production and commercial farming
• Fully integrated business, from feed production, breeding, farming, processing and branded food sale
• One of the largest distribution networks

Shareholding Structure 1H2011 Revenue Structure

Revenue by product Revenue by
CPP Business Line
CPF Food, 6
HK:0043 %
Aquaculture
, 20%

Modern State Bangkok Food Farm, 3
Investments (“MS”) Product (“BFP”) 8% Feed, 5
Livestock, 80
Livestock
6%
% , 80%

70.82% 29.18%
CPV
1H2011 Revenue: US$ 0.65 billion


23


Section 3: CPV - Integration across food production value chain
CPV’s fully integrated operating platform across the value chain.

Adding Value
Feedmill Breeding Farming Processing Retailing
& Branding
Farm

Feed Farm Food

• CPV is No.1 in • CPV is No.1 in commercial • CPV is a growing player
commercial farming production of in the processed food
livestock and shrimp poultry and swine by market and packaged meat
feed production share market

• 7 feedmills • ~ 2,300 livestock farms • Food processing
throughout Vietnam1) (mostly contract farming), ~6 production capacity
aquatic farms1) ~12,000 tons1)
• Swine, broiler, layers, d
uck, cattle, shrimp, and • Swine, broiler, layer, shrimp • Chilled and frozen
fish and fish products to
wholesalers, retailers
and export
Note: 1) Information as of December 31, 2010

24


Section 3: Vietnam Market Outlook
Vietnam

Number of
Populations 88.3
(Million)

2011E
GDP Growth 5.8%
%Y-O-Y
GDP per Rising income, growing population, and increased urbanization lead to increasing animal protein
Capita consumption
$ US per capita

2,500 2010 – 2015E CAGR = 11.6%
2,028
1,855
2,000 1,686
1,521
1,362
1,500 1,174

1,000

500

0
2010 2011E 2012E 2013E 2014E 2015E

Source: International Monetary Fund


25


Vietnam

Poultry 2011 Poultry Consumption Per Capita (kg) 2011-2020 Estimated Poultry
Consumption Consumption Per Capita in Vietnam (kg)
43.3
+ 16.1%
7.6
7.2
7.2
6.7
17.5 6.8 6.5
6.4
12.9 6.4
6.2
6.2
6.0

5.6

Vietnam Thailand US EU 2011E 2012E 2013E 2015E 2020E

Pork 2011 Pork Consumption Per Capita (kg) 2011-2020 Estimated Pork
Consumption Consumption Per Capita in Vietnam (kg)
40.9 + 6%
21.5 21.1
26.0 21.0
19.9 20.4
20.5
20.0 20.1
19.9
10.0 20.0
19.5

19.0

Vietnam Thailand US EU 2011E 2012E 2013E 2015E 2020E

Source: The Food and Agricultural Policy Research Institute (“FAPRI”) 2011

26



Vietnam
Industry Industry consolidation and increasing proportion of scaled farms lead to more demand for
Consolidation commercial feed products

Livestock Feed Production
(mm Tons)

16.0
Commercial
10.5 Feed
9.2
7.5

7.3 6.5 6.3
4.0 Home - mix

2009 2010 2011E 2015E

Source: Estimated from public available information


27


Section 3: CPV – Financials Highlights
Revenue (US$ Million)

US$ Million
2008-2010 CAGR 12%
1,200 1,047
+ 33.9%
1,000 835 868
800 648
600 483
400
200
0
2008 2009 2010 1H2010 1H2011

Gross Profit (US$ Million) and Gross Profit %

US$ Million
140 14.6% 15.3% 18%
120 12.9% 12.6% 15%
100 9.8% 12%
80
9%
60 127 132
108 99 6%
40
20 47 3%
- 0%
2008 2009 2010 1H 2010 1H2011

Note: 1) USD 1 = HKD 7.78, USD 1 = THB 30.5 Charoen Pokphand Foods Plc.

28

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