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2020 Annual Results

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• This presentation and the accompanying slides (the “Presentation”) have been prepared by WH Group Limited ("WH Group " or the "Company") solely for

information purposes.

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by the Rules Governing The Listing Of Securities On The Stock Exchange Of Hong Kong Limited or any applicable law.

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responsibility or liability based, in whole or in part, on any of the information contained herein, errors herein or omissions here from. In all cases, interested parties

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• This Presentation contains statements that reflect the Company's intentions, beliefs or expectations about the future or future events (the "forward looking

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uncertainties and other factors beyond the Company's control, and accordingly, actual results may differ materially from these forward-looking statements. You

should not take any forward-looking statements contained in this Presentation regarding past trends or activities as a representation that such trends or activities

will continue in the future. The Company expressly disclaims any obligation to update these forward-looking statements.

Disclaimer

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01

02

03

04

2020 Financial Summary

2020 Business Review

Strategies and Outlook

Appendix

Table of Contents

3

2020 Financial Summary

4

.

2020 2019 Y-o-Y Change

Packaged meats sold（000 metric tons) 3,276 3,345 -2.1%

Pork sold（000 metric tons） 3,946 4,224 -6.6%

US$ Million 2020 (1) 2019 (1) Y-o-Y Change

Revenue 25,589 24,103 6.2%

EBITDA (1) 2,279 2,671 -14.7%

Operating profit 1,729 2,031 -14.9%

Profit before tax(1) 1,500 1,946 -22.9%

Profit attributable to owners of the Company (1) 973 1,378 -29.4%

Basic earnings per share（US$ cents）(1) 6.60 9.37 -29.6%

Interim dividend per share (HK$) 0.05 0.05 -

Proposed final dividend per share (HK$) 0.125 0.265 -0.14

Consolidated Financials Overview

Key Operating Data

Key Financial Data

Note：1. Before biological asset fair value adjustments

5

%

China65.9%

US24.0%

Europe 10.1%

Packaged Meats47.5%

Pork48.1%

Others 4.4%

China42.3%

US48.3%

Europe 9.4%

%

%

Total

25,589

Segment Revenue and Operating Profit

2020 Revenue by Business Segments (1)

2020 Revenue by Region (1) 2020 Operating Profit by Region (2)

2020 Operating Profit by Business Segments (2)

US$ million US$ million


Total

25,589Total

1,729

Note：1. External sales2. Before biological fair value adjustments

As a leading consumer products company, the packaged meats segment is our core business.

Packaged Meats Pork Others Total OperatingProfit

%

86.7%

19.7%100%

-6.4%

1,499

341-111

1,729

6

Dividend Payout US$ million

94.00 94.00 93.00 95.00

236

489 505

376

597

333

2015FY 2016FY 2017FY 2018FY 2019FY 2020FY(Proposed)

US$ million

8.1%

%

Cash Flow and Capital Structure

Interest-bearing Liabilities / Total Equity

Operating Cash Flow Capital Expenditures


47% of earnings

during the year (1)

45% of earnings

during the year (1)

30% of earnings

during the year (1)

40% of earnings

during the year (1)

Note ：1. Total dividend payout / profit attributable to owners of the company after biological fair value adjustments

The Company has maintained a sound financial position with ample cash flow.

41% of earnings

during the year (1)

99 172

478 318

126

82

2019 2020

China US Europe

Total:703

Total:572

3,914

2,8783,198 3,119 3,092

2,682

58.4%

40.9% 38.9% 37.1%32.7%

24.4%

31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019 31/12/2020

1,463

2,357

2019 2020

0.94

40% of earnings

during the year (1)

2020 Business Review

8

In 2020, WH Group faced the challenges brought by COVID-19

pandemic and African swine fever (ASF).

• COVID-19 pandemic ravaged the world, severely impacting business

operations. In China, as the epidemic was brought under control

quickly, Shuanghui immediately resumed operations, with both

revenue and profit reaching record highs.

• US operations were heavily affected by the ongoing COVID-19

epidemic, which resulted in market disruptions, lower production

volume, higher expenses and a significant drop in profit.

• Continuous ASF caused a supply shortage in China. Hog prices

reached record highs and meat imports set new records.

• Although European operations faced the overlapping effects of the

COVID-19 pandemic and ASF, its operating performance was again

the best in history due to effective prevention and control measures.

The management team of WH Group took extensive measures to

prevent the epidemics, ensure safety, control costs, promote operations,

mitigated the risks and responded effectively to challenges. As a result,

the Group maintained sound fundamentals, and laid the foundation for

the recovery of its production and operations.

Operating Environment

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• In 2020, the hog price in China continued to hit historical

highs. The average hog price was RMB33.91 per kilogram

(“kg”), a significant increase of 60.3% year-on-year.

• In the US, the average hog price during 2020 was US$1.0

per kg, a decrease of 10.7% year-on-year.

Hog Supplies and Prices in China and US

• The number of slaughtered hogs in China fell 3.2% year-on-

year to 527 million heads in 2020. By the end of 2020, hog

inventory in China reached 407 million heads, an increase of

31% over the end of 2019.

• The number of slaughtered hogs in the US increased by

2.5% to 132 million heads in 2020.

USD/Kg RMB/Kg

Hog Prices in China and USNumber of Slaughtered Hogs in China and US

Million heads

Source: Chicago Mercantile Exchange and Ministry of Agriculture of the People’s Republic of ChinaSource: National Bureau of Statistics of China and USDA

199.8

134.4

161.6

198.0188.4

125.0

96.3

134.4 131.3119.7

110.8

165.2

30.929.7 30.2

32.6 32.130.8 31.4

34.434.2

29.0

32.736.1

20

30

40

50

60

70

80

0

50

100

150

200

250China US

0

5

10

15

20

25

30

35

40

0

1

2

3

4

5

6

US China

10

Response to Market Changes, Integration of Global Resources, Adjustments to

Product Mix and Price while Controlling Cost, Revenue and Profit Hit Record Highs

Remarkable results seen from new product launches and

product mix optimization for packaged meats business, with

profitability seeing significant increase

Completed fund raising with an aim to improve vertically

integrated pork value chain, expand poultry business and

enhance comprehensive competitiveness

Deepened synergies by increasing meat imports and

value-added processing to lower costs

Formation of Food Services Division,

new businesses start to take off

11

Operating Profit and Margin (1) Packaged Meats (2) Pork (2)

US$ million US$ million US$ million

Note：1. Percentage marked in white on the bars represent Operating Profit Margin = operating profit / external sales2. Percentage marked in white on the bars represent Operating Profit Margin = operating profit / internal and external sales

673

836

18.6%

20.7%

2019 2020

957

1,140

10.9% 10.5%

2019 2020

Operating Profit

Operating Profit Margin

249271

4.4%3.8%

2019 2020

Response to Market Changes, Integration of Global Resources, Adjustments to

Product Mix and Price while Controlling Cost, Revenue and Profit Hit Record Highs

12

US Operations Record High Costs and Charges with Sharp Decline in Profit

due to COVID-19

Proactively expanded retail channels to compensate for

the decreased demand for food services

Leveraged synergies to expand exports,

effectively supporting pork business performance

Ensured the health of our employees and stable

operations, recording approximately US$820 million in

costs and charges related to COVID-19

Adopted effective hedging strategies to ease the

impact of COVID-19

13


Operating Profit and Margin (1) Packaged Meats(2) Pork (2)


US Operations Record High Costs and Charges with Sharp Decline in Profit

due to COVID-19

847

57110.8%

8.0%

2019 2020

233

-33

2.8%

-0.4%

2019 2020

932

4157.1%

3.4%

2019 2020

Operating Profit


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Increased investment and accelerated integration to

expand business scale

Expanded sales volume and increased prices for

packaged meats by leveraging market and channel

advantages. Segment profits increased significantly

Expanded the scale of pork business and increased

profits considerably with the integration of newly

acquired capacity

Exports of European business were restricted due to

animal epidemics

European Operations Prevented Epidemics Effectively, Leveraging

Vertically Integrated Value Chain, Achieving Record Operating Results

15

142

174

6.5%7.3%

2019 2020

Operating Profit



Operating Profit and Margin (1) Packaged Meats (2) Pork (2)


European Operations Prevented Epidemics Effectively, Leveraging

Vertically Integrated Value Chain, Achieving Record Operating Results

54

92

5.7%

9.0%

2019 2020

88

103

6.3% 6.7%

2019 2020

16


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• The COVID-19 pandemic continues to pose

challenges in the US. It will take a long time for

the economy to fully recover.

• Animal epidemics in Europe have not eased,

affecting exports and operations.

• Loose monetary policy is pushing up asset

prices and commodity prices globally, raising

inflation expectations, which will result in higher

business operating costs.

Business Environment Outlook

▪ COVID-19 and African swine fever continued in 2021, and there are still many uncertainties ahead which may

impact the development of the Group, such as global economic trends, geopolitical relations and trade tensions.

• If the vaccine rollout goes well, global economic activity will

pick up sharply in 2021 and consumption demand will

recover.

• China’s economy is expected to continue its strong growth

momentum in 2021 with continued improvement in

consumption.

• The rapid growth in hog production capacity in China will

lead to increased supply and lower hog prices, which is

favorable for the pork business in terms of increasing

slaughtering volumes and lowering costs.

• The price difference between US and China hogs remain

large, creating favorable conditions for achieving higher

synergies and expanding international trade business.

Challenges Opportunities

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WH Group will fully utilize its vertically integrated business model and global platform to cope with various risks, seize

industry opportunities, enhance the scale of its operations, maintain its leading position in the industry and ensure the

sustainable development of the Group.

• Committed to its strategy of launching new products,optimizing product portfolios, expanding its market networkand promoting marketing innovation to achieve volumegrowth;

• Maximizing synergies by expanding meat imports andvalue-added processing;

• Actively developing food service channels and householdconsumption, cultivating new businesses and expandinginto new streams;

• Further enhancing its integrated business model bydeveloping hog production business and expanding poultrybusiness to enhance its overall competitiveness.

In China In US and Europe

• Leveraging the advantages of its integrated business model to

achieve greater economies of scale;

• Improving management practices and tapping internal potential;

• Reducing costs and improving hog production efficiency through

science-based feeding and improved management;

• Accelerating the transformation of the pork business, optimizing

product mix and channels, improving the output ratio and

increasing the variety and scale of exports;

• Further increasing the volume and profits of packaged meats by

giving full play to market advantages, utilizing potential

production capacity and optimizing product mix;

• Continuing its efforts in epidemic prevention and control,

reducing losses and ensuring the stable development of the

Group;

• European business will continue to effectively prevent animal

diseases, focus on local markets and increase sales volume of

packages meats.

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Appendix

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Low temperature products

American-style products / Hunter Sausage

Smithfield-branded products

Shuanghui thick cut bacon

Marco Polo low temperature series

Product Innovation

High temperature products

Spicy Sausages

Shuanghui cooking sausage

Coobi cod sausage

Shuanghui new starch-free ham Sausage: King of the King

Leisure Products：Snack sausages / Hot

spicy sausages

Chinese Style Products：

Deli / Preserved meat / Braised vegetables series

Plant-based protein products

“SoyFit” plant-based meat

Plant-based sausages

Plant-based burger steaks

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Innovative Marketing Approach

Promoted new products across different channels

through livestream marketing

• Our video livestreaming activities in partnership with top KOL

Viya, Lin Yilun and Wu Xin generated over one hundred

million views in total. Online flagship store traffic surged by

3.31 million with the sales volume reaching 335 metric tons;

• During the live streaming with top KOL Viya, Shuanghui Spicy

Sausages were sold out in 3 seconds after they went online,

with the sales volume exceeding 100 metric tons.

Rejuvenated the brand through marketing campaigns

on TikTok

• Became a tile sponsor of the “In City” Happy Life Festival by

TikTok and initiated a challenge on TikTok which generated

880 million views;

• Sponsored an outdoor sports reality show “Keep Running”

and appointed actor Zheng Kai as a brand ambassador to

boost sales of the new product “Huoxuanfeng” sausage.

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Ribs

Premium Sausages

Seasoned Pork

Tenderloin

Bacon

Ham

Plant-based

Products

Pulled

Pork

Product Innovation

Breakfast Bites

23

Ham Slices

Product Innovation

Dry Sausages

Chicken

Products

Smoked

Meats

Sausages

Sous-vide

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Investor RelationsTel: (852) 2922 0736

Email: [email protected]

mailto:[email protected]

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