1. AMERICAN DAIRY, INC.
(Feihe International)
Investor Presentation
September 2010
1

2. Safe Harbor Statement
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This presentation includes statements that constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements relate to future events or to our future financial performance, and
involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of
activity, performance, or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements. These statements
include, but are not limited to, information or assumptions about revenues, gross profit, expenses, income,
capital and other expenditures, financing plans, capital structure, cash flow, liquidity, management’s plans,
goals and objectives for future operations and growth. In some cases, you can identify forward-looking
statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable
terminology. You should not place undue reliance on forward-looking statements since they involve known
and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which
could materially affect actual results, levels of activity, performance or achievements. Certain of the
information contained herein concerning economic trends and performance is based upon or derived from
information provided by third-party consultants and other industry sources. We have not independently
verified and cannot assure the accuracy of any data obtained by or from these sources.
The forward-looking statements contained in this presentation are made only as of May 2010, and American
Dairy, Inc. is under no obligation to revise or update these forward-looking statements.
2

3. Business at a Glance
 We are a leading producer and distributor of infant formula, milk powder, soybean and walnut
powder products in China
 Headquartered in Beijing
 Over 47 years of operating history
 Processing facilities in Heilongjiang, Shanxi and Hebei provinces, with processing capacity of 1,250
tons of milk powder per day
 Packaging and distribution facilities in Kedong, Heilongjiang province and Langfang, Hebei province
 Dairy farms in Gannan and Kedong
 We are the first and only NYSE-listed Chinese dairy company
 Our brands, Feifan, Feiyue and Feihui, are among China’s most recognized brands
 History of product excellence achieved through secured source of quality milk and stringent quality
control
 Covers all market segments
 Nationwide presence, with focus on tier 2 and 3 cities
 Over 95,000 retail outlets across China
 Presence in 29 provinces, including all tier 1 cities except Shanghai
3

4. Company History
• Raised • Raised $80M of • Restructured
$18.2M of 1% Guaranteed 1% Guaranteed • Raised $63 M
• Feihe, as a • Listed 7.75% Senior Secured Senior Secured with Sequoia
SOE, began • Quoted on NYSE Convertible Convertibles Convertibles for 2.1 M
operations on OTC Arca Notes Notes due 2012 Notes due 2012 shares
1962 1997 2003 2005 2006 2007 2008 2009
• Chairman • Acquired tangible • Langfang • Began • Brought in 8000 • June 8, 2009:
Leng led assets of Nutricia, distribution construction Australian Listed on NYSE
Management wholly-owned center on two Holstein cows main board
Buy Out subsidiary of commenced international
Royal Numico in operation accredited • Melamine crisis • Began capacity
China organic dairy broke, ADY expansion project
farms in passed all gov. in Gannan and
Gannan and inspections Longjiang facilities
Kedong
4

5. Capital Market Summary
 NYSE: ADY
 Price (as of 8/19/2010): $7.35
 Shares outstanding (as of 6/30/2010): 22.3 million
 Market Cap (as of 8/19/2010): $163.7 million
300.0 Revenue Net Income
40.0 35.4
250.0
30.0
200.0
19.6
$US (millions)
$US (millions)
20.0 16.4 17
150.0
271.1 8.3
10.0
100.0 193.2
163.9 155.0 133.6 0.0
50.0 115.1
2006 2007 2008 2009 1H09 1H10
0.0 -10.0
2006 2007 2008 2009 1H09 1H10
-20.0 (15.0)
* 3Q10E revenue guidance: >$55M 5

6. Company Highlights
1 A Leading Infant Formula Brand in China
2 Large Market Opportunity with Long-Term, High-Growth Prospects
3 Vertically Integrated Business Model – High Barriers to Entry
4 Stringent Quality Control with State of the Art Equipment and Facilities
5 Nationwide Sales Force with Regional Distribution Centers
6 Experienced Management Team with Proven Track Record
7 Strong Financial Position and Profitability
6

7. Company Overview
7

8. China’s Infant Formula Market
Dairy Product Consumption China’s Drinking Milk and Infant Formula Market
120 $ 50,000 RMB 250.0
Total Dairy Consumption Per Capita1 (kg)
103 45,000
100 95 96 93 95
40,000 200.0
GDP Per Capita ($US)
87
35,000
80
RMB (billions)
30,000 150.0
60 25,000
46 44 20,000 100.0
40
15,000
17 10,000 50.0
20
12 11
6 9 5,000
2
0 0 0.0
India China Thailand Japan France U.K. U.S. 2002 2004 2006 2008 2010E 2012E
1998 2008 GDP Per Capita
Drinking Milk Infant Formula
Source: Source: Euromonitor
(1) Euromonitor. Includes aggregate consumption of milk products, cheese, yogurt, sour milk
drinks and other dairy products.
 China is the second largest infant formula market behind the U.S., but is expected to grow to
$12 billion by 2014 (surpassing the U.S.)
 Dairy consumption per capita in China is still significantly lower than in the U.S., Western
Europe and more developed Asian nations such as Japan
8

9. China’s Infant Formula Market
Milk Powder Sales By Category China’s Milk Powder Market Share (June ’10)
Others , 15.93% Dumex , 16.76%
Infant Formula
28%
Adult Milk Powder Wandashan ,
3.88%
Pregnant Women Yashili , Mead Johnson ,
1% 61%
Milk Powder 2.69% 12.06%
9%
Synutra ,
Wholesale Milk 3.27%
Powder Feihe (ADY)
4.72%
Source: AC Nielsen, Roland Berger analysis
Beingmate, Nestle , 10.58%
7.13%
Yili , 10.97% Wyeth, Abbott , 7.29%
4.72%
Source: Commercial Information Center of China (CIC)
 Infant formula accounts for the majority of milk powder sales in China
 American Dairy had the third largest market share among domestic players
9

10. Competitive Landscape –
Three Groups of Players
Market
Share
• Proven track record of more than 10 years in the Chinese
infant formula market
• Dumex • Premium and super premium pricing
• Mead Johnson
• Perceived superior product quality and superior brand
International • Wyeth *
• Abbott image
• Nestle • Strong R&D capabilities
• Limited reach in tier 2 and 3 cities due to fragmented retail
channels and the lack of modern logistics infrastructure
• Feihe
• Yili * • Dominant in tier 2 and 3 cities
Domestic
National
• Synutra • Gaining market share from foreign producers in tier 1 cities
• Yashili • Strong product mix – low to super premium pricing
• Beingmate
* • Limited brand recognition
• Nanshan
Domestic • Unstable product quality
• Wandashan
Regional
• Others • Presence in regional market with the potential to
increase scale and gain national presence
Source: Industry interviews, Roland Berger analysis 10

11. Our Competitive Advantages
Secured Access to High Quality Milk and State of the Art Production Equipment
The Heilongjiang Favorable Government Strong Relations with
Advantage Support Local Farmers
 Heilongjiang is China’s  The central government  Favorable pricing offered
premier milk-producing allows one infant milk to incentivize local
region at 47°north processing facility per farmers’ willingness to
 Situated in one of the county sign exclusive contracts
three nutrient-rich black  ADI Feihe’s well- with ADI Feihe
soil zones of the world established presence in  Contracts with local
Heilongjiang limits new farmers to access over
 Natural underground 200,000 dairy cows
entrants
water reserves with a pH
level of 8.5  Strong local and
provincial government
 Rich and fertile soil relationships
contributes to higher milk
yield and quality
11

12. ADY is China’s First Vertically Integrated
Infant Formula Company
Secured Access to Company-Owned State of the Art Nationwide
Milk Collection
Milk Stations Processing Facilities Distribution
Contracts
 Access to over  Total processing  Sales and marketing
200,000 cows  Over 200 company- capacity: 1,250 tons force of 1,500 to
 Average yield of 4 owned milk stations of liquid milk/day cover over 95,000
tons/yr per cow across Heilongjiang retail outlets
 Increasing capacity to
Province
ADI Feihe Dairy Farms 1,920 tons/day by  Packaging and
 Limited competition August 2010 and to distribution facilities
 Gannan and Kedong due to government 2,820 tons/day by in Kedong
Farms: currently regulation of station May 2011 (Heilongjiang) and
~15,000 Australian locations Langfang (Hebei)
Hostein cows  Facilities in
Heilongjiang, Shanxi
 Average yield of 8- and Hebei Provinces
10 tons/yr per cow
12

13. Our Geographic Footprint
Production Center, Gannan Production Center, Baiquan Production, Distribution & Dairy Farm, Kedong
Packaging Center, Kedong
Longjiang Heilongjiang Province
Dairy Farm, Gannan
Beijing
Hebei Province
Shanxi Province
Production Center, Qiqihaer
Shanghai
Chengdu Wuhan Tier 1 cities
Tier-1farm construction
Dairy cities
Dairy farm construction construction:
Production facility under
Guangzhou Gannan: +700 tons/day by Aug 2010
Corporate Headquarters, Beijing Shenzhen Longjiang: +900 tons/day by May 2011
Logistics Center, Chengdu and Wuhan
Packaging & Distribution Center, Production, Distribution & Packaging
Langfang Center for Walnut and Soybean
Products, Shanxi
13

14. Nationwide Marketing and Support
TV and Media Advertising Call Center and Baby Club Membership
Educational Materials Events and Displays
We are capitalizing on additional market share opportunities in today’s dynamic
market by adopting an aggressive but cautious sales and marketing strategy
14

15. Comprehensive Product Offerings
Infant Formula Products Covering Mid-to-High-End
Market Segments
AstroBaby Feifan Feiyue Feihui
Super Premium Product Premium Series Medium-High Series Medium Series
RMB 308- 368 RMB 198 - 218 RMB 148 per RMB 87 per
per 700g tin per 900g tin 900g tin 900g tin
Soft launched
RMB 52 - 78 RMB 48 per
on May 6, RMB 32 per
per 400g bag 400g bag
2010 400g bag
Adult Formula Products Other Products
Prenatal Formula Adult Formula
Rice Soybean Walnut Wholesale
Cereal Powder Powder Milk Powder
15

16. Growth Initiatives
Improving Operating
Efficiency at Each
Retail Point
Enhancing Customer
Services and Improving
Market Intelligence
Improving
Nutrition Education
Department
Strengthening
Human Resources
Development
Strengthening We are committed to become the leading
Brand Equity infant formula manufacturer
Continue Leadership
in Quality Control
16

17. Experienced Management Team
You Bin Leng  Over 20 years in the dairy industry and ADI Feihe Chairman for more
than seven years
Chairman,  Bachelor’s degree in food engineering from Northeast Agriculture
Chief Executive Officer University and an EMBA from Peking University
Roger Hua Liu  More than 16 years in C-level positions with extensive finance and
accounting experience
Vice Chairman,  Bachelor’s degree in finance and economics from Xian Jiaotong
Secretary University and Shenzhen University
Jonathan H. Chou  More than 20 years of finance and banking experience in the U.S. and
Asia Pacific
Chief Financial Officer  Former Asia Pacific CFO of Honeywell International and AP CFO Lucent
Technologies
 Awarded “China's Top Ten CFOs of 2008” award by CFO World
Magazine and holds MBA from Fuqua School of Business at Duke
Guilang Zhang  Over 15 years of experience in sales and marketing
 Former General Manager of Want-Want China Holdings' Want Zai (Hot
Special Assistant to the Kid) business, led the company to become China's number one dairy
Chairman drinks company by net profits from 2003-2006.
 Bachelor's Degree in Economics from National Chung Hsing University
in Taiwan and EMBA from Tsinghua University in Beijing
Judy Tu, Esq.  Over 10 years of experience in operating Chinese companies with
background in U.S. law
Vice President  J.D. from Loyola Law School, Attended University of California, Berkeley
A licensed attorney in the State of California.
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18. Board of Directors
You Bin Leng  Over 20 years in the dairy industry and ADI Feihe Chairman for more than seven years
Chairman, Chief Executive Officer  Bachelor’s degree in food engineering from Northeast Agriculture University and an EMBA
from Peking University
Roger Hua Liu  More than 16 years in C-level positions with extensive finance and accounting experience
Vice Chairman  Bachelor’s degree in finance and economics from Xian Jiaotong University and Shenzhen
University
Sheng Hui Liu  Over 10 years of extensive financial knowledge and experience at ADI Feihe
Director, Vice President of Finance  Degrees in economics and accounting from Northeast Agriculture University and Country
Cadre Institute of Ministry of Agriculture
Kirk G. Downing, Esq.  Over 25 years of experience practicing law
Director  Attorney licensed in the State of California
James C. Lewis, Esq.  Over 30 years of experience practicing law
Director  Attorney licensed in the State of Utah
Neil N. Shen  Founding and Managing Partner of Sequoia Capital China
 Co-founder of Ctrip .com International (Nasdaq: CTRP) and Home Inns and Hotels
Director
Management (Nasdaq: HMIN)
 Bachelor's degree from Shanghai Jiao Tong University and Master's degree from the School of
Management at Yale University
Sean Shao  Over 20 years of extensive finance and audit experience
 Extensive experience as an independent director and as an executive officer in U.S. public
Director, Audit Committee Chair
companies operating in China
 Holds a CPA license issued by the American Institute of Certified Public Accountants
 Bachelor's degree from East China Normal University and Master's degree from the 18
University of California, Los Angeles

19. Revenue Performance
Quarterly Revenue Revenue
120.0 113.8
300.0
100.0
250.0
81.4
80.0 72.1
200.0
$US (millions)
$US (millions)
60.0 52.2 150.0
43.4 271.1
41.2
40.0 100.0 193.2
163.9 155.0 133.6
20.0 50.0 115.1
0.0 0.0
Q1 2009 Q2 2009 3Q 2009 4Q 2009 1Q2010 2Q2010 2006 2007 2008 2009 1H09 1H10
* 3Q10E revenue guidance: >$55M
Achieved 40% organic growth for fiscal 2009 over fiscal year 2008
19

20. Consistent Margins and Expanding Cash Flow
Gross Margin Operating Cash Flow
60% Gross Margin
48.2% 47.2%
50% 35.0
44.2%
39.3% 30.0
40% 35.4%
25.0
29.9 19.5
30% 20.0 17.2
$US (millions)
14.6
15.0
20% 11.1
10.0
10% 5.0
0% 0.0
2007 2008 2009 1Q2010 2Q2010 -5.0 2006 2007 2008 2009 1H2009 1H2010
-4.4
-10.0
Maximize branded products mix which would improve operating cashflow and
gross margin as all branded products sales are based on “cash on delivery”
20

21. Product Portfolio: Revenue Contribution
2Q 2008 Revenue 2Q 2009 Revenue 2Q 2010 Revenue
Contribution by Product Contribution by Product Contribution by Product
Continuing to focus of product mix after Sept 2008 Melamine Crisis
21

22. Selected Balance Sheet Items
(USD in millions) As of June 30, 2010
Assets
 In September 2009, the Company paid down $34.0
Cash and Cash Equivalents $12.69 million, or 75%, of the $46.0 million outstanding of
its 1% Guaranteed Senior Secured Convertibles
Inventories, Net 58.3
Notes due 2012. The remaining payment,
Property & Equipment (1) 188.8 approximately $11.5 million, was completed at the
end of October 2009. Additionally, the Company's
Biological Assets 54.4
7.75% Convertible Notes due 2009 were fully
Total Assets $421.8 converted as of October 2, 2009 and the Company
has no convertible notes remaining.
Short Term Debt
Current Maturities of Long-Term Debt 7.3 On August 26, 2009, the Company closed private
placement transaction with Sequoia Capital,
Notes and Loans Payable 45.5 through which the Company issued 2.1 million
Long Term Debt, Net of Current Portion 28.5 shares of common stock to Sequoia Capital for an
aggregate purchase price of $63.0 million.
Shareholder’s Equity 151.4
Total Liabilities & Equity $421.8
Simplified Capital Structure with No Convertible Notes
(1) Includes Net Property and Equipment and Construction in Progress.
22

23. Company Highlights
1 A Leading Infant Formula Brand in China
2 Large Market Opportunity with Long-Term, High-Growth Prospects
3 Vertically Integrated Business Model – High Barriers to Entry
4 Stringent Quality Control with State-of-the-Art Equipment and Facilities
5 Nationwide Sales Force with Regional Distribution Centers
6 Experienced Management Team with Proven Track Record
7 Strong Financial Position and Profitability
23

24. Thank You!
24

25. Key Financial Items
Key Income Statement Items
(USD mn) Dec 31, 2008 Dec 31, 2009 June 30, 2010
Sales 193.2 271.1 133.6
Gross Profit 76.0 130.7 56.9
Sales & Marketing 50.7 105.1 57.9
G&A 19.0 20.5 12.6
Operating Income 6.3 5.1 (22.1)
Government Subsidies 6.8 21.2 9.2
Net Income 17.0 19.6 (15.0)
Diluted EPS 0.97 0.97 (0.68)
Key Cash Flow Items
(USD mn)
FY2008 FY2009 June 30, 2010
Loss on Disposal of Biological Assets 0.3 1.7 8.6
Operating cash flow 29.9 17.2 14.6
Investing cash flow (32.3) (48.4) (30.8)
Financing cash flow 0.7 65.7 (20.9)
25