January 2015 Summary Locally based, pure Vietnam focused investment manager • • • Co-founded in 2002 and majority-controlled by Kevin Snowball First equity specialist investment manager in Vietnam, with total AUM US$143m (31 Dec 2014) 23 staff including 11 investment professionals 10-year record of benchmark outperformance • • • Multi-year track record of index and peer group outperformance Flagship fund PXP Vietnam Fund: AUM of US$78.8m; +162.76% since inception (31 Dec 2003) PXP Vietnam Emerging Equity Fund: AUM of US$36.6m; +21.78 since inception (3 Nov 2005) Proven investment strategy • • • • Targeting the highest quality Vietnamese companies for superior long term capital appreciation Managed with the highest standards of professional integrity Fundamental, bottom-up, research-driven approach Broad coverage of Vietnamese listed equities Favourable macro environment • • • • • • Refocused monetary policy since 2011 targets sustainable economic progress Inflation at 10-year low Most stable currency in Asia for past 2 years Move up value chain driven by more sophisticated manufacturing Sustained move to trade surpluses ahead of expectations Resumption of privatisation programme and relaxation of foreign ownership limits pending 2 Index 1. Summary 2 2. Vietnam Macro 4 3. Access to the Stock Market 8 4. PXP Vietnam Asset Management 9 5. PXP Vietnam Emerging Equity Fund • Introduction • Performance 12 13 6. PXP Vietnam Fund • • 17 18 Introduction Performance 7. Proposed Merger of PXPVF and PXPVEEF 22 8. Vietnam in a Sweet Spot 24 9. Holdings: Active v Passive 26 10. Regulatory Authorities and Affiliations 28 11. Appendices 30 12. Disclaimer 39 Vietnam Macro: Introduction Demographics • Population c. 90 million • 60% < 35 years old • Literacy rate > 95% • Urban population 35% Growth Drivers • Primary exports: Garments & footwear; crude oil; electronics; rice (global #1); coffee (global #2); natural rubber (global #3) • Economic drivers: foreign direct investment, exports, domestic demand • 2014 GDP growth of 5.96% Future Growth Drivers • Higher value-add manufacturing • Burgeoning middle class • Urbanisation 4 Vietnam Macro: Economic Indicators 5 Vietnam CPI CPI y/y CPI m/m 4 20 3 CPI y/y % 25 15 2 10 1 5 0 CPI m/m % 30 -1 01/06 09/06 05/07 01/08 09/08 05/09 01/10 09/10 05/11 01/12 09/12 05/13 01/14 09/14 Source Bloomberg Balance of Trade (USD bn) 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 Vietnam GDP Growth % 9 8 2007 2008 2009 2010 2011 2012 2013 2014 7 6 5 4 3 2 1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 E Source: World Bank and PXP Estimates Viet Nam Index: The story so far 1400 1200 1000 800 VNM Mkt. Cap. $4.9bn Total 35 Stocks PXPVF launched Total 176 Stocks Total 5 Stocks Founding of PXP Vietnam Asset Management 600 400 303 Stocks Mkt. Cap. $50bn 200 0 Jul 00 PXP VEEF launched Jul 01 Jul 02 Ho Chi Minh City Stock Exchange opens (2 stocks, $35m Mkt. Cap.) Jul 03 Jul 04 Jul 05 Jul 06 Jul 07 Vinamilk (VNM) lists Jan 06, Mkt. Cap. $500m (50% of total market) Jul 08 Jul 09 Jul 10 Jul 11 Jul 12 Jul 13 Jul 14 6 Key Policy Reforms New era of monetary policy with key reforms driving a structural bull market Structural Reforms Rationalisation and reorganisation of inefficient state-owned enterprises Improving Foreign Access Monetary Policy Change in focus promoting the pursuit of long-term economic stability proving timely and effective Foreign ownership limits currently 30% for banks, and 49% for all other listed stocks Delayed by legislative requirements but is likely in 2015 Resumption of privatisation programme of SOEs Vietnam Asset Management Company launched in 2013 to lead recapitalisation of banking sector US$ 1.5bn social housing stimulus package 7 Accessing the Bull Market Relaxation of foreign limits will provide further impetus for Vietnam’s market Closed-end Funds • Open Ended Funds Exchange Traded Funds Direct Equity Access ETFs facilitate easy access and exit but cannot hold the higher quality stocks at the foreign ownership limit and performance has suffered accordingly • Direct equity access is problematic due to the cumbersome application process and low quality of sell-side research with limited stock coverage 8 PXP Vietnam Asset Management Background • Vietnam’s first listed equity specialist investment manager, established in 2002 • 23 Staff including 11 investment professionals, all based in Ho Chi Minh City • Broadest coverage of Vietnamese listed equities in the market Approach • PXP applies a fundamental, bottom-up, research-driven approach combined with the active stock selection and allocation skills of the portfolio managers in order to achieve superior longterm returns • We aim to build portfolios of the highest quality companies for the long-term • We do not allow market noise to over-ride our fundamental views on stocks • We prefer substance over form and have always s prioritised performance over asset gathering 9 PXP Vietnam Asset Management Process • Idea generation across the investment team; daily research meetings provide a forum for origination and ongoing debate • We conduct extensive industry and company research and seek to build long term relationships with both potential and existing portfolio companies • We actively engage with over 100 companies, covering over 90% of the market capitalisation of the Ho Chi Minh and Hanoi stock exchanges combined Corporate Governance • Corporate governance standards vary widely in the Vietnamese market (as everywhere), so to the extent that we discover companies which we believe are likely to behave in a manner detrimental to the interests of minority shareholders, we mitigate these risks through our investment process 10 Process Research Analysts Idea Generation Portfolio Managers Daily Morning Meetings Meet Management Team Portfolio construction Company & Industry Research Continuous Monitoring Active Management Estimate Earnings PXP Coverage list > 100 Stocks Liquidity Management Fund Holdings Company Valuation Periodic Review of Exit Possibilities Recommendation 11 PXP Vietnam Emerging Equity Fund Objective To seek long-term capital appreciation of its assets by investing in a portfolio of the equity securities of Vietnamese companies, whether established with domestic or foreign ownership • Cayman Islands Mutual Fund • Launched on 3 November 2005, managed since inception by Kevin Snowball • Multi-year track record of index outperformance achieved without leverage • Converted from a closed end to an open-ended fund in January 2010 • Merged with Vietnam Lotus Fund December 2010; expected to merge with PXP Vietnam Fund on 2nd February 2015 • Over 95% invested in Vietnam-listed equities • Net Assets US$ 36.6 m (31 Dec 2014) • Monthly subscriptions & redemptions 12 Multi-year NAV Performance VEEF VNI Index USD FTSE Vietnam Index VEEF VNI Index USD FTSE Vietnam Index 1 Year 12.72% 6.61% 7.36% 2014 12.72% 6.61% 7.36% 2 Years 47.18% 28.43% 23.80% 2013 30.58% 20.47% 11.21% 3 Years 83.85% 52.69% 35.88% 2012 24.91% 18.89% 13.80% 4 Years 27.63% 2.67% -34.14% 2011 -30.58% -32.76% -51.53% 5 Years 7.77% -4.68% -44.57% 2010 -15.56% -7.16% -15.83% 6 Years 96.61% 41.37% -23.45% 2009 82.43% 48.31% 38.11% 7 Years -48.07% -55.91% -75.60% 2008 -73.59% -68.81% -68.13% 8 Years -35.25% -45.49% - 2007 24.68% 23.61% - 9 Years 21.32% 32.11% - 2006 87.37% 142.38% - Inception 21.78% 25.78% Source: PXP & Bloomberg data as at 31 Dec 2014 13 Performance VEEF v VNI & FTSE Vietnam USD Jan 2011 - Dec 2014 VEEF v Van Eck Market Vectors & DB-X Tracker ETF Jan 2011 Dec 2014 60% 60% 40% 40% 20% 20% 0% 0% -20% -20% -40% -40% -60% Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 -60% Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 VEEF Return VNI USD Return FTSE Vietnam Return VEEF Return V.Eck VN Return DB-X Tracker Return Source: PXP & Bloomberg data to Dec 2014 14 NAV Performance v Peers 40% 2013 NAV Performance 16% 35% 14% 30% 12% 25% 10% 20% 8% 15% 6% 10% 4% 5% 2% 0% 2014 NAV Performance 0% PXP VEEF PXP VEEF (Lead Series) (Series 1A) VN Index V.Eck VN DB-X PXP VEEF PXP VEEF (Lead Series) (Series 1A) VN Index V.Eck VN DB-X As at 31 Dec 2014 15 Multi-year Performance 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jan Feb 1.71% 26.67% -10.13% -1.52% -1.12% -0.13% 7.40% 12.06% 9.03% 13.32% 8.16% -22.07% -13.41% -0.95% -15.76% 14.12% -2.03% 5.42% VEEF monthly net asset value performance since inception (USD) Mar Apr May Jun Jul Aug Sep 12.12% -0.97% -25.84% 8.25% 3.51% -1.69% 2.05% 4.05% 4.93% 4.59% -8.81% 0.00% 17.56% 7.14% -0.48% 10.29% 0.59% -2.98% -1.81% 9.76% -19.64% 21.30% -7.28% -7.41% -5.26% 5.93% -3.21% -0.72% -4.93% -11.94% 11.48% -5.25% 2.92% -3.70% -4.41% 1.63% -5.28% -9.25% 3.69% 9.81% -1.08% -0.75% 0.19% 1.47% 3.75% 8.84% 2.28% 25.09% 16.81% -10.28% 4.95% -3.86% -0.59% 4.87% 5.28% 10.12% -15.49% 11.44% 0.54% -1.87% -3.74% 5.31% -1.03% Oct 0.25% 1.21% -17.28% 0.65% -4.74% -3.69% 0.60% 2.23% -1.75% Nov -0.40% 16.38% -3.36% -7.40% -14.67% -2.66% -8.88% -2.47% 2.89% -3.91% Dec 0.78% 12.29% -3.39% -14.40% 1.25% 6.95% -1.37% 9.13% 0.43% -3.67% Year 0.38% 87.37% 24.68% -73.59% 82.43% -15.56% -30.60% 24.95% 30.57% 12.72% Source: PXP as at 31 Dec 2014 16 PXP Vietnam Fund The fund is expected to merge with PXP Vietnam Emerging Equity Fund on 2nd February 2015. The following charts are for information purposes only. 10 PXP VIETNAM FUND Premium/Discount to NAV (%) 5 0 -5 -10 -15 -20 -25 -30 -35 17 Performance Consistent outperformance from a fundamental, bottom-up, research driven approach Multi-Year NAV Performance Calendar NAV Performance PXPVF * VNI Index USD 2014 8.07% 6.61% FTSE Vietnam Index 7.36% 2013 38.37% 20.47% 11.21% 2012 33.70% 18.89% 13.80% 2011 -21.89% -32.76% -51.53% -34.14% 2010 -17.17% -7.16% -15.83% -4.68% -44.57% 2009 76.62% 48.31% 38.11% 128.47% 41.37% -23.45% 2008 -70.86% -68.81% -68.13% 7 Years -33.43% -55.91% -75.60% 2007 37.95% 23.61% - 8 Years -8.17% -45.49% - 2006 149.40% 142.38% - 9 Years 129.02% 32.11% - 2005 20.67% 27.33% - 10 Years 176.37% 68.22% - 2004 -3.84% 42.15% - Inception 165.76% 139.12% - PXPVF * VNI Index USD FTSE Vietnam Index 1 Year 8.07% 6.61% 7.36% 2 Years 49.54% 28.43% 23.80% 3 Years 99.94% 52.69% 35.88% 4 Years 56.18% 2.67% 5 Years 29.36% 6 Years * Net of all fees; Cum Dec 2014 dividend Source: PXP & Bloomberg data as at 31 Dec 2014 18 Performance PXPVF v VNI & FTSE Vietnam in USD Feb 2011 - Dec 2014 100% 100% 80% 80% 60% PXPVF v Van Eck Market Vectors & DB-X Tracker ETF Jan 2011 Dec 2014 60% 40% 40% 20% 20% 0% 0% -20% -20% -40% -60% -40% -80% Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 -60% Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 PXPVF Return VNI USD Return FTSE Vietnam Return PXPVF Return V.Eck VN Return DB-X Tracker Return Source: PXP & Bloomberg data (Dec 2014); Cum Dec 2014 dividend 19 Closed-End Funds Peer Group NAV Performance Jan 2012 - 31 Dec 2014 120% 100% 80% 60% 40% 20% 0% PXPVF PXP VEEF Vietnam Holding Vietnam Equity Vietnam Holding Growth Fund Vietnam Enterprise Investments Limited Vietnam Opportunities Fund DB-X tracker Market Vectors Vietnam ETF Vietnam ETF Infrastructure Fund 20 Monthly NAV Performance Since Inception 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jan -0.52% -1.66% 3.79% 38.89% -10.01% -2.13% -2.71% -0.24% 6.26% 13.41% 10.15% PXP Vietnam Fund monthly net asset value performance since inception (USD) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2.77% 2.31% -3.29% -1.62% -0.68% -2.51% -1.00% 0.46% -0.38% -1.34% 2.08% 0.47% 1.94% -0.70% -0.62% 0.96% -0.46% 2.21% 7.95% 4.95% 5.07% -0.68% 22.05% 24.52% 10.69% -7.07% -1.38% -11.37% 15.00% 6.45% -0.62% 23.70% 16.86% 13.17% -3.68% -12.31% 15.05% -6.42% -11.13% 4.77% 12.08% 1.40% -5.42% -3.57% -22.08% -23.82% 0.62% -21.83% -10.30% 5.98% 27.24% -16.48% -23.04% -7.73% -3.36% -15.35% 8.39% 18.61% 21.67% 9.50% 9.65% 18.92% 12.03% 0.68% -15.79% 0.51% 0.20% 1.00% 6.49% -6.63% -4.20% -2.62% -8.46% -0.35% -4.00% -2.70% 6.43% -14.99% -1.88% -1.10% -7.46% 2.69% -0.27% 7.35% -2.11% -1.52% -4.22% 1.03% 13.96% 2.41% 8.57% -4.45% -2.13% 0.69% -1.42% -1.35% 1.71% -1.63% 8.39% -1.59% 5.65% 1.07% 9.69% -5.17% 1.89% -2.21% 6.54% 1.28% 3.75% 0.07% 5.76% 2.95% -4.73% -4.21% 1.04% 4.62% 5.34% -1.75% -1.64% -4.72% -3.68% Year -3.84% 20.67% 149.40% 37.95% -70.86% 76.62% -17.17% -21.89% 33.70% 38.37% 8.07% Source: PXP as at 31 December 2014; Cum Dec 2014 dividend 21 Proposed Merger of PXPVF and PXPVEEF • • • • • • • • • US$ 36.6m Open-Ended Cayman Island Mutual Fund Management Fee 1.5%, Performance Fee 15% over 8% per annum with high watermark US$ 78.8m Closed-End Listed on LSE Main Market Management Fee 2% 31st Dec 2014: Valuation Date 30st Jan: Suspension of listing of PXPVF shares 2nd Feb: 1 PXPVF share will be exchanged for 1.07883 shares of PXPVEEF • • • • • c. US$ 115.4m Open-Ended Cayman Island Mutual Fund Management Fee 1.5%, Performance Fee 15% over 8% per annum with high watermark 22 Proposed Merger of PXPVF and PXPVEEF Top 10 Holdings Post Merger Top 10 Holdings Pre Merger (as at 31 December 2014) % of net assets (as at 31 December 2014) % of net assets Vinamilk (VNM) 16.5 Vinamilk (VNM) 18.7 Hoa Phat Group (HPG) 13.4 Hoa Phat Group (HPG) 10.3 HCMC Securities (HCM) 11.0 HCMC Securities (HCM) 9.3 FPT Corporation (FPT) 8.8 Sacombank (STB) 6.7 Sacombank (STB) 7.2 FPT Corporation (FPT) 6.4 PetroVietnam Drilling (PVD) 5.9 Refrigeration and Electrical Engineering Corporation (REE) 5.3 Hoang Anh Gia Lai (HAG) 4.9 PetroVietnam Drilling (PVD) 5.1 Danang Rubber (DRC) 3.6 Hoang Anh Gia Lai (HAG) 4.4 Dong Phu Rubber (DPR) 3.6 Dong Phu Rubber (DPR) 4.3 Military Bank (MBB) 3.0 VN Direct (VND) 2.5 23 Vietnam in a Sweet Spot A switch in monetary policy in 2011 from ‘growth above everything’ to the pursuit of long-term economic stability heralded a new era providing a compelling case for further gains in 2014 and beyond • A benign and improving macroeconomic environment • Anticipated relaxation of foreign ownership limits expected in 2015 • Ongoing recapitalisation of the banking sector and rationalisation of SOEs • Formation of domestic institutions to diversify investment base • Resumption of privatisation process to provide greater breadth to stock market More access at close to the low-end of the historic trading range to more (and bigger) stocks A broader market More scale More interest encouraging further inflows More upside in 2015 and beyond 24 Valuation Portfolio Valuation Comparison by Weighted Average PE 25.0 20.2 PE Multiple 14.6 11.6 10.3 10.0 14.4 13.3 12.8 2014 PE 2015 PE Viet Nam Index 13.8 12.5 SE THAI 16.6 14.1 FTSE Malay KLCI 15.8 15.3 Jakarta Comp 21.0 14.9 PSEi - Philippines 20.8 18.4 20.2 20.0 15.0 Market 13.3 10.9 9.4 9.2 Source: Bloomberg Consensus January 2015 PXP Coverage Universe Forward PE Ratios 5.0 2014E 2015E 2016E Mkt inc financials 11.7 10.7 9.8 Mkt ex-financials 10.5 9.2 8.8 Mkt exMSN/BVH/VIC 10.7 9.8 9.1 0.0 PXPVF VEEF PE 2014 DB-X Tracker PE 2015 V.Eck VN PE 2016 Source: PXP Research January 2015 Source: PXP Research January 2015 25 Holdings: Active vs Passive Viet Nam Index Top -10 Viet Nam Index VNI DB-X Tracker ETF XVTD Van Eck Market Vectors ETF VNM PXP Vietnam Fund Vietnam Emerging Equity Fund PetroVietnam Gas Vinamilk Masan Group Vingroup Vietcombank BIDV Bao Viet Holdings Sacombank VietinBank PetroVietnam Drilling 26 Top Picks Stock Name Industry VNI Weight PE 2014 PE 2015 VNM Vinamilk Consumer Staples 10.1% 15.9 13.8 HCM HCMC Securities Financials 0.5% 10.7 8.9 MBB Military Bank Financials 1.5% 5.9 5.3 PVD PetroVietnam Drilling Energy 2.0% 9.2 7.3 FPT FPT Corporation Information Technology 1.7% 10 8.6 Source: PXP Research December 2014 27 Strong Governance Regulatory Authorities and Affiliations • PXP Vietnam Asset Management is licensed by the BVI Financial Services Commission (FSC) and is a member of the Alternative Investment Management Association (AIMA) • Our Representative Office in Ho Chi Minh City is licensed & regulated by the State Securities Commission (SSC) of Vietnam • PXP Vietnam Emerging Equity Fund is regulated by the Cayman Islands Monetary Authority (CIMA) Transparency • Publication of daily NAV estimates • All historic Offering Documents, Annual & Interim Reports and Newsletters are freely available at www.pxpam.com 28 Operational Risk Management Day to day Operational Control Places orders Authorised Trader Provides daily cash & position reports Emails trade details Brokers Notifies result Emails trade confirmation External Reconciliation Back office •Trade Reconciliations •Data Input into PMS Uploads trade details Custodian and Administrator 29 Appendices 30 Key Personnel Kevin Snowball (CEO & Portfolio Manager). Co-founder in 2002 • • • 29 years investment experience Portfolio manager of PXP Vietnam Fund & PXP Vietnam Emerging Equity Fund since inception Responsible for investment policy and strategy Nguyen Thi Hien, CFA, MBA (Head of Research). Joined Oct 2006, left Dec 2009, re-joined Oct 2014 • • 9 years experience in finance and investment management in Vietnam Responsible for management of PXP Equity Research Team John Gavin (CFO & Compliance Officer). Joined Aug 2008 • • 17 years with PwC including nine in Vietnam Responsible for financial reporting, internal controls and compliance Joelle Daumas-Snowball (COO, Legal Counsel & MLRO). Joined Oct 2006 • • • 20 years experience in international commercial, corporate and financial law Extensive experience of Vietnam’s regulatory framework Responsible for all legal matters Hoang Hong Hanh (Head of Back Office). Joined Sep 2007 • • • Promoted to Head of Back Office in 2011 Responsible for all Back Office activities; leads a team of 3 Preparation of daily Net Asset Value estimates 31 Investment Professionals Strong, cohesive and stable team Portfolios managed since inception by Kevin Snowball. PXP prides itself on its low staff turnover Kevin Snowball Chief Executive Officer & Portfolio Manager Nguyen Thi Hien, CFA, MBA Head of Research • Nguyen Tam Trinh, CFA • Dinh Thi Van Anh Associate Director. Joined Nov 2006 Research Manager. Joined Jan 2010 • • Nguyen Hoang Nam, CFA Ngo Bich Van Senior Investment Analyst. Joined Nov 2009 Senior Investment Analyst. Joined July 2014 • Hoang Thi Lan Anh Investment Analyst. Joined July 2012 • Nguyen Le Nguyen Phuong Investment Analyst. Joined July 2012 • Nguyen Ngoc Dao Chi Assistant Portfolio Manager. Joined Sep 2006 • Lawrence Brader Assistant Portfolio Manager. Joined Jan 2013 • Douglas Barnett, CAIA Business Development. Joined Jan 2013 32 Appendix C: Vinamilk (VNM) Sector Consumer, Non-cyclical Mkt Cap $m 4,662 Mkt Price VND 99,500 52 week H 126,667 52 week L 98,000 LAST UPDATE 08/12/2014 PXP Research: VNM Foreign % owned Performance YTD Trailing Year Debt/EBITDA 2012 Dividend Yield BETA VNI 49.00 P/E 2013 -8.52 P/E 2014 -11.91 P/E 2015 -0.77 P/E 2016 3.8% P/E 2017 0.92 EV/EBITDA 2014 15.24 15.68 13.56 11.20 9.53 11.21 140% 120% 100% 80% 60% 40% 20% 11/14 09/14 07/14 05/14 03/14 01/14 11/13 09/13 07/13 05/13 03/13 01/13 11/12 09/12 07/12 05/12 03/12 -20% 01/12 0% -40% • • • • • Dominates the dairy market in Vietnam with 50% liquid milk market share in 2012, 75% in condensed milk, 90% in yoghurt Net Profit CAGR of 43% over the last 5 years 2 new factories (powdered milk Apr 2013 & liquid milk September 2013) with leading technology and automation Strong balance sheet and cash generation with limited capex. in coming years, promising higher dividend Largest holding in PXPVF Source: PXP Research Dec 2014 33 Appendix C: Ho Chi Minh City Securities (HCM) Sector Mkt Cap $m Mkt Price VND 52 week H 52 week L LAST UPDATE Financial 210 35,200 44,200 22,200 08/12/2014 PXP Research: HCM Foreign % owned Performance YTD Trailing Year Debt/EBITDA 2012 Dividend Yield BETA VNI 49.00 P/E 2013 49.54 P/E 2014 57.92 P/E 2015 0.00 P/E 2016 4.3% P/E 2017 1.17 EV/EBITDA 2014 15.71 10.51 8.80 7.34 N/A N/A 350% 300% 250% 200% 150% 100% 50% • • 11/14 09/14 07/14 05/14 03/14 01/14 11/13 09/13 07/13 05/13 03/13 01/13 11/12 09/12 07/12 05/12 03/12 -50% 01/12 0% Leading broker in Vietnam with 12% market share in HCMC and 8.4% market share in Hanoi Will be a major beneficiary of relaxation of foreign ownership limits Source: PXP Research Dec 2014 34 Appendix C: Military Bank (MBB) Sector Mkt Cap $m Mkt Price VND 52 week H 52 week L LAST UPDATE Financial 712 13,100 16,408 12,039 08/12/2014 PXP Research: MBB Foreign % owned Performance YTD Trailing Year Debt/EBITDA 2012 Dividend Yield BETA VNI 10.00 P/E 2013 11.79 P/E 2014 10.92 P/E 2015 0.00 P/E 2016 11.5% P/E 2017 0.76 EV/EBITDA 2014 6.38 6.02 5.25 4.54 3.95 N/A 70% 60% 50% 40% 30% 20% 10% • • • 11/14 09/14 07/14 05/14 03/14 01/14 11/13 09/13 07/13 05/13 03/13 01/13 11/12 09/12 07/12 05/12 03/12 -10% 01/12 0% Retail and corporate banking services One of the top 5 banks in Vietnam Compelling valuation at 0.8x book value, 2014 P/E of 6.8x and ROE 21% Source: PXP Research Dec 2014 35 Appendix C: PetroVietnam Drilling (PVD) Sector Mkt Cap $m Mkt Price VND 52 week H 52 week L LAST UPDATE PXP Research: PVD Foreign % owned Performance YTD Trailing Year Debt/EBITDA 2012 Dividend Yield BETA VNI Energy 987 69,500 110,000 53,182 08/12/2014 40.39 P/E 2013 27.65 P/E 2014 25.59 P/E 2015 1.97 P/E 2016 2.1% P/E 2017 1.12 EV/EBITDA 2014 11.18 8.28 6.63 6.31 5.87 4.95 300% 250% 200% 150% 100% 50% • • • 11/14 09/14 07/14 05/14 03/14 01/14 11/13 09/13 07/13 05/13 03/13 01/13 11/12 09/12 07/12 05/12 03/12 -50% 01/12 0% PetroVietnam subsidiary provides drilling services, drilling-related services and trading services Strong operating cash flow, focus on core business and good management team 50% market share in Vietnam Source: PXP Research Dec 2014 36 Appendix C: FPT Corporation (FPT) Sector Mkt Cap $m Mkt Price VND 52 week H 52 week L LAST UPDATE PXP Research: FPT Foreign % owned Performance YTD Trailing Year Debt/EBITDA 2012 Dividend Yield BETA VNI Communications 778 48,300 59,500 37,120 08/12/2014 49.00 P/E 2013 33.72 P/E 2014 31.22 P/E 2015 -0.04 P/E 2016 4.1% P/E 2017 1.15 EV/EBITDA 2014 8.25 9.93 8.55 7.25 6.11 4.65 60% 50% 40% 30% 20% 10% 11/14 09/14 07/14 05/14 03/14 01/14 11/13 09/13 07/13 05/13 03/13 01/13 11/12 09/12 07/12 05/12 03/12 -10% 01/12 0% -20% -30% -40% • • • FPT is primarily an IT and system integration service provider Also operates ISP and content hosting, mobile telephony and hardware distribution businesses Market leader in IT, stable growth story, strong balance sheet, good cash-flow Source: PXP Research Dec 2014 37 Appendix D: Contacts Kevin Snowball John Gavin Chief Executive Officer Chief Financial Officer Email: [email protected] Phone: (848) 3827 6040 Mobile: (84) 918 299 980 Email: [email protected] Phone: (848) 3827 6040 Mobile: (84) 903 973 100 Lawrence Brader Douglas Barnett Assistant Portfolio Manager Business Development Email: [email protected] Phone: (848) 3827 6040 Mobile: (84) 909 697 318 Email: [email protected] Phone: (848) 3827 6040 Mobile: (84) 902 682 197 38 Appendix E: Disclaimer The information contained in this presentation and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection with the presentation are only being made, supplied or directed to persons who are investment professionals, high net worth companies or others who are entitled to be given the presentation under the law of the jurisdiction in which it is given (Qualified Investors). In member states of the European Economic Area, Qualified Investors falls within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC). In addition, in the United Kingdom, this document is limited to and intended for distribution only to persons who (i) are qualified investors (within the meaning of the Prospectus Directive 2003/71/EC) and (ii) who have professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO") and/or to high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2)(a) to (d) of the FPO or to those persons to whom it may otherwise be lawfully communicated. In Singapore, Qualified Investors included (a) institutional investors (as defined in the Singapore Securities and Futures Act (SFA)) pursuant to Section 304 of the SFA, (b)relevant persons (as defined in the SFA) pursuant to and in accordance with the conditions specified in Section 305(1) of the SFA and (c) persons who acquires the Shares as principal on terms that the Shares may only be acquired at a consideration of not less than S$200,000 (or its equivalent in a foreign currency) for each transaction pursuant to and in accordance with the conditions specified in Section 305(2) of the SFA. Pursuant to Section 305 of the SFA read in conjunction with Regulation 32 and the Sixth Schedule to the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 (the “SFR”), the MAS has been notified in relation to the offer of the Shares. In accordance with the SFA and the SFR, the Scheme has been entered into the list of restricted schemes maintained by the MAS for the purposes of the offer of Shares made or intended to be made pursuant to Section 305 of the SFA. It is the responsibility of every person reading this document to satisfy himself as to the full observance of laws of any relevant country, including obtaining any government or other consent which may be required or observing any other formality which needs to be observed in that country. This document does not and is not intended to constitute, and should not be construed as, an offer, inducement, invitation or commitment to purchase, subscribe to, provide or sell any securities, services or products of the company in any jurisdiction, or any part of any solicitation of any such offer, inducement, invitation or commitment, or to provide any recommendations for financial, securities, investment or other advice or to take any decision. You are encouraged to seek individual advice from your personal, financial, legal, tax and other advisers before making any investment or financial decisions subscribing for or purchasing any securities. Nothing contained herein should be relied upon as a promise or representation as to the future. There is no obligation or responsibility to advise any person of changes in the information set forth herein after the date hereof. None of the members, directors, officers, employees, agents or representatives nor any other person accepts any liability whatsoever for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with the subject matter of this presentation or any transaction. The information contained in this document is not to be relied upon for any purpose whatsoever. Certain statements in this presentation may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties and assumptions about the company and investments that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by applicable law or regulation, there is no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not rely on forward looking statements, which speak only as of the date of this presentation. The information contained in this presentation is not intended to be viewed by, or distributed or passed on (directly or indirectly) to, and should not be acted upon by any class of persons other than Qualified Investors. This presentation is strictly confidential and may not be copied or distributed or passed on by any recipient. None of the company or person acting on its behalf shall (without prejudice to any liability for fraudulent misrepresentation) have any liability whatsoever for loss however arising, directly or indirectly, from the use of information or opinions communicated in relation to this presentation. By accepting a copy of this document, you agree to be bound by the foregoing limitations and, in particular, will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice including without limitation the obligation to keep this document and its contents confidential. 39
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