Vietnam Cement Industry Report 2013Issue date: 6 November 2013 Part of StoxPlus’s Market Research Reports for Vietnam @ 2013 StoxPlus Corporation. All rights reserved. All information contained in this publication is copyrighted in the name of StoxPlus, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. 1 Table of Contents Our research contacts for this report are: Thuan Nguyen, FCCA CEO
[email protected] +84 98 389 0000 Thieu Mai Huong, MBA Research Manager
[email protected] +84 4352 6962 ext. 108 Duy Nguyen Research Assistant
[email protected] + 84 4352 6962 ext. 108 Part Content Page 1 Executive Summary 3–6 2 Construction and infrastructure development in Vietnam 3 Cement Demand and Supply 13 – 22 4 Cost structure, Financial Performance and Competition Dynamics 23 – 30 5 WHGG and Policy Developements 31 – 33 6 M&A Activities and Sector Consolidation 34 – 36 7 Appendices 37– 23 7 – 12 Appendix 1: Cement plants under construction 38 Appendix 2: Kind of products 39 Appendix 3: Key and on going projects in infrastructure Appendix 4: Full list of cement plants to be built period 2013-2030 40 – 41 42 Appendix 5: Fact sheet of listed cement companies 43 – 52 Appendix 6: About StoxPlus and research capabilities 53 – 57 DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, StoxPlus , its Directors and employees accept no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and StoxPlus makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained. 2 Contents Section 1: Executive Summary 3 Section 1: Executive Summary Executive Summary Content in this slide is intentionally removed for demo purposes 4 Section 1: Executive Summary Executive Summary (continued) Content in this slide is intentionally removed for demo purposes 5 Section 1: Executive Summary Executive Summary (continued) Content in this slide is intentionally removed for demo purposes 6 . Contents Section 2: Overview of construction and infrastructure development 7 . Inflation reached peak of 18. the Vietnam cement sector come up the situation of supply over demand and many cement plants suffered loss.596 1.8% 6. coal (40% higher).5% 9.7% 40% 7.7% in the year 2011 and declined from that to the level of 9.8% 1.070 5.8% 9.0% 8.729 7.8% 10% 441 400 200 1.0% 558 600 402 7.3% 5.4% 6.1% 18.3% the whole year.0% 731 800 3. the lowest from the year 2000.0% 8. when the wind changed. Figure 2: Vietnam CPI and Inflation rate Figure 1: Vietnam GDP per capital and GDP growth 2000 1800 1600 9.8% 1.2% 0% -1. the economy slowed down from 2011 and the trend will continue in 2013 and 2014.0% 4.8% 9. For the first 9 month of 2013.0% 3.0% 50% 1. According with the high inflation.0% 5. gas and oil (18% higher) also soared. Therefore.0% -10% CPI GDP per capita 19.Section 2: Overview of Construction and Infrastructure development The Master plan of Cement sector was built based on the assumption that GDP growth rate will reach 7% with large investment on construction and infrastructure development.10% 6. price of cement input such as electricity (15% higher).0% 6.0% 3.9% 7.7% -0. The picture for 2014 doesn’t change much with its forecast fluctuating around 5. Its development plan was built based on the assumption that the GDP growth rate would reach 7% per year like the average of the period 2006-2010.2% 7.0% 30% 8. World Bank and StoxPlus • The economy slowdown from 2011continue its trend in the year 2012 with GDP growth rate of 5%.6% 0.8% 8.2% in 2013.3% Inflation (annual %) GDP Growth Source: GSO.1% in 2012 and around 8.1% 11.96% 7.4% • The slowdown of economy negatively affected to Vietnam cement sector.7% -0. .4% 2. the GDP growth rate is around 5.0% 0 0.0% 1000 20% 3.8% 6. World Bank and StoxPlus Source: GSO.7% 8.1% 18.6% 8.4% 4.3% 1400 8.9% 12.1% 6. However.224 1200 23. • Another difficulty with cement sector is the high and unstable inflation. 8 . even some of them went to default.2% 7.1% and it is expected to be 5. The State capital Investment expenditure in which most of them are expenditure in construction and infrastructure development shrink sharply in 2013 Figure 3: State Budget and Deficit Figure 4: State Capital Investment Expenditure Content in this slide is intentionally removed for demo purposes 9 .Section 2: Overview of Construction and Infrastructure development Due to the economy slowdown. government faced to shortage in state revenue and large deficit. the economic difficulties seem not affect to the specialized construction services and the civil engineering works • The National Assembly is discussing State Investment Law which can cancel terms allowing adjustment to successful bid price.0% 10.0% 209 31. • Residential buildings and civil engineering works are two main contributors to construction gross output with their percentage being 39% and 31% in the year 2012. Figure 5: Gross output of construction by types of work Figure 6: Growth rate of construction output by types of work 800 70.8% 30.7% 60.Section 2: Overview of Construction and Infrastructure development Gross output of construction still increased in 2012.7% 21.9% 262 29. However. especially the residential buildings and non-residential building.1% 20.4% 38.0% 221 197 50.9% 0 2010 19. 10 .8% 7. the growth rate reduced sharply comparing with that of 2010.9% 26.residential building Civil engineering works Specialized construction services 2012 6. It can negatively affect the construction sector because many construction companies have been familiar with adjusting payment price from its approved bid price. However. • Due to the economy slowdown in 2012.5% 12. 600 72 500 59.0% 2009 2010 Total construction output Civil engineering works 6. Construction output experienced the sharp decline in growth rate.7% 280 10.0% 700 87 77 VND thousand bil.5% 2011 Residential buildings Non .0% 88 55 43 33.0% 43.0% 11. however. economic difficulties seem not affect much to the specialized construction services and civil engineering works .1% 400 300 200 55 40.8% 0.0% 2011 2012 Specialized construction services Non-residential buildings Residential buildings Source: GSO and StoxPlus Source: GSO and StoxPlus • The contribution of construction to GDP has reduced gradually for the past 5 year and its trend is forecasted to continue in the future.0% 179 41 121 168 150 100 114 146 2008 2009 132 24. the construction and infrastructure development sector has been potential in long term.Section 2: Overview of Construction and Infrastructure development Thank to the golden age population with the urbanization rate up to 3% per year and high demand for infrastructure development. Figure 7: Construction and infrastructure value Content in this slide is intentionally removed for demo purposes 11 . Section 2: Overview of Construction and Infrastructure development Government approved big investment projects in infrastructure with total capital up to USD $ 116 billions in the period 2010-2020. However. due to economy slowdown. We estimate that only 53% projects can be implemented on time Content in this slide is intentionally removed for demo purposes 12 . many projects have been delayed or even cancelled. Contents Section 3: Demand and Supply 13 . Section 3: Demand and Supply Content in this slide is intentionally removed for demo purposes 14 . 6% 1. • The North has still taken the largest market share of cement consumption.0% 0.4% compared with the year 2011. consumption in the Central continued to rise with growth rate of 2.Section 3: Demand and Supply Total cement consumption decreased by 7. However. However.2 50 Ton million 40 45.0% 50.3% -10. Consumption declined sharply in the North with growth rate of – 11.5 44.0% -12.4% 31.6%.8% 51.4% in 2012 while the rate in the South is .8% 2009 2010 2011 -7.0% 0 2007 2008 North (Hanoi) 2009 2010 Central 2011 2012 South (HCMC) Source: Cement Association and StoxPlus 2012 -8.0% 31.4%.7% 2.3% 12.4% in 2012 in which consumption in the North has the worst decline with 11. decreased by 7.5 39.1% 10.0% 30.3 33. however.6% 6.0% North Central South Whole country Source: Cement Association and StoxPlus Breakdown cement consumption by location • Cement consumption in 2012 reached 45.0% 10 51.9% 40.1%. the ratio has declined year by year while the Central has quickly increased its cement consumption 15 .3% 15.8.2 50% 50% 47.2% 15% 23.1% -11.1 35% 36.4% 11.5% 14.3% 20 14.4% 49.0% 34. consumption in the Central still increased and its market share also quickly rose up Figure 11: Breakdown cement consumption by location Figure 12: Breakdown growth rate of consumption 60 50.2% 35% 30 38.9% 10.4% -20.4% 21.9% 2008 45.5% 20.5 million tons.5% 15% 21. 6 2 1.7% Year 2012 Number North 98.1 South 3 4.7 Figure 15: Number of cement plants by location Source: Cement Association and StoxPlus Figure 14: Breakdown cement plants by capacity in 2012 Number 17 Whole country Rotary Kiln Total Capacity 33 35 30 30 24 25 20 30.1 3 2.3% total capacity.7 27 48 35 20.3 million tons. Vietnam cement plants often use European technology in which plants having capacity above 1 million tons/year take 69.7% total capacity and will be closed soon according to government requirements.9 Central 7 12.8% total country capacity Figure 13: Technology of cement plants in 2012 Cement plants with Cement plants with capacity capacity > 1 mil tons/year <= 1 mil tons/year 1. Vietnam had 68 rotary kilns with capacity of 67.2% 17 15 69.3% Vertical Kiln Total Capacity 31.3 30 16. took 98.8% 10 7 3 5 3 2 0 North Plants with Capacity <= 1 mil ton/year Central South Total Plants with Capacity >= 1 mil ton/year Plants with Capacity <= 1 mil ton/year Source: StoxPlus Plants with Capacity >= 1 mil ton/year Source: StoxPlus 16 . The remaining 13 vertical kiln only took 1.Section 3: Demand and Supply At the end 2012. Section 3: Demand and Supply Total capacity increased by 5% in 2012 and expected to increased by 11% in 2013 mostly thanks to new cement plants in the Central coming into operation. most cement plants still concentrated in the North with capacity of 70% country capacity Content in this slide is intentionally removed for demo purposes 17 . However. 0 68.5 70.0 5.5 40.6 6. • In 2013.3 20.0 60.0 14.3 21. from Thailand) with higher price than domestic clinker. the Central have big increase in capacity.1 -20.0 47. leading to the surplus in supply for the Central.0 16.0 Capacity Demand Unbalance Source: Cement Association and StoxPlus Capacity Demand Unbalance Source: Cement Association and StoxPlus • The South has been in short supply until 2012 and the situation will not change much in 2013.4 10.1 15.0 65.3 South Whole -10.8 20.Section 3: Demand and Supply The South has been in short supply for a long time and the situation will not change much in 2013. The South also has to import clinker (e.4 4.0 40.2 10.5 14.9 45. Figure 18: Capacity and demand by location in 2012 Figure 17: Capacity and demand by location in 2011 70.g. Laos can be a good export market for Central cement plant due to short distance and low transportation costs. domestic clinker has been transported from the North and the Central to the South for many years with remarkably high transportation freight.0 -20.0 0.0 North 27.0 23.4 Central 23.7 10.0 Whole -7.0 80. The surplus is enough to cover the shortage in supply of the South.0 30.8 20.0 North Central South -10.3 50.0 45.9 -10. Thailand and the Central have the same distance to the South but Thailand have better logistics and lower transportation costs.1 50. Vietnam export cement and import gypsums/plaster from Laos 18 . whether the cement plant in the Central can occupy the South market is not clear.3 3.0 49. which increases the Southern cement price.0 10.0 14.2 60. However.6 0. Most of the increase in total cement capacity in 2013 will come from the Central • In fact.0 30. Content in this slide is intentionally removed for demo purposes 19 . many cement plants can not operate in full capacity.Section 3: Demand and Supply According with the high increase in cement capacity and weak domestic demand. leading to the sharply decrease in utilization rate. Post-Panamas sized vessels (60. lower by $8-$12 per ton (25% lower price) than regional price. Taiwan. Vietnamese cement producers are very weak in logistics which is an essential competitive edge in cement exporting. Dispatching port are: Hai Phong (public port). .5 5 4 7.7 8 7 2.6 6 0. Thang Long.Most of Vietnamese cement plants are located at the limestone material hubs that are very far from ports.7 5. making exporting activities unprofitable. . • In terms of cement export.000 DWT above) must be used for cement export shipping as matter of economy of scale in this business. • Popular FOB price is $40-$42 per ton clinker. Main export destinations are Bangladesh. Ha Long and Nghi Sơn (plant’s port). 20 . For example: • Export can be a good choice for many cement plants to increase production rate.3 3 2 1 5. Hong Kong and Indonesia. thus transport costs will be lifted for inland transportation. that makes cement export on CIF basis currently impossible.Section 3: Demand and Supply Although export do not bring profit. due to the constrain of transport infrastructure. however. only some players with own ports or having access to the port with lower transportation cost can make. The FOB price was even lower than domestic price. in which clinker takes a large part. There is no such Vietnamese ocean shipping vendors in operation yet. some cement plants have to push up the export volume to cover variable costs and absorb part of fixed costs Figure 21: Clinker & cement export 10 9 1.5 3 0 2010 2011 Clinker 2012 7m2013 Cement Source: Cement Association and StoxPlus • Vietnam both exported clinker and cement. The remaining 37% is contributed by many local private companies. Chinfon and LUKS Vietnam occupying 28% of market share. foreign players including Holcim. Government still indirectly influence the cement price through Vicem. Figure 22: Market shares by key players Fico 17% Ha Long 10% Lam Thach 6% Song Gianh 11% Quang Son 12% Thang Long 23% Cam Pha 21% Others private and associate producers 37% But Son Vicem .Section 3: Demand and Supply Vietnam cement is characterized with three groups of players including Vietnam Cement Industry Corporation (VICEM) with 35% market share.Ha Tien 13% 23% VICEM 35% Foreign-owned producers 28% Lafarge 5% Nghi Son Phuc Son 16% 14% Luks 7% ChinFon 30% Holcim 28% Hoang Thach 17% Bim Son 20% Hoang Mai 10% OthersTam Diep 6% 1% Hai Van Hai Phong 3% 8% Source: Cement Association and StoxPlus 21 . 2012 Content in this slide is intentionally removed for demo purposes 22 .Section 3: Demand and Supply The South is a concentrated market with top 3 players taking 73% market share in 2012 while top 3 players in the North only take 17% market share in 2012 Figure 23: Market shares by key players in 2011 . Contents Section 4: Cost structure. Finance and Competitiveness 23 . Cement plants in the South have to use coals transported from Quang Ninh province with higher price than those peers in the North Figure 26: Average price by location Content in this slide is intentionally removed for demo purposes 24 .000 per ton due to high transportation costs. Finance and Competitiveness The cement price in the South has often been higher than that in the North by around VND 300.Section 4: Cost structure. In 9 month 2013. The increase in coal and electricity price eroded profit of cement plants because due to weak demand. coal price increased by 40% and fuel increased by 33% pushing cement cost increased by nearly 15%. the increase in sales prices have not covered the increase in coal and electricity price (coal increased by 40%. • In September 2013. cement price increased by 6% (VND 100. • Electricity is the second biggest component with 16% of total cost. the electricity price increased by 5% and it will continue to rise. electricity increased by 5%). coal/fuel is the biggest component in cost structure of clinker with 48% total cost. In 2013. followed by the electricity with 16% total cost.Section 4: Cost structure. 25 .2013 Figure 27: Cost structure of clinker 1800 7% 1537 1600 10% 1450 1300 1400 VND thousand per ton 15% 4% 16% 48% 1200 1350 1050 900 1000 800 800 600 400 200 0 Raw material Coal/fuel Electricity Labor cost Depreciation Source: StoxPlus Others 2008 2009 2010 2011 2012 2013e 2014f Source: StoxPlus • In our estimation. therefore we expect the cement price will go up more by at least 6% in early 2014. However.000 per ton). Finance and Competitiveness Coal/fuel is the biggest component in cost structure of clinker with 48% total cost. the increase in sales price is not enough to cover the increase in output price Figure 28: Cement price in the North 2008 . Finance and Competitiveness The EBITDA margin of Vietnam cement companies has been much lower than their peers in region like Thailand. The reasons lay on high fuel cost structure and low utilization rate Content in this slide is intentionally removed for demo purposes 26 .Section 4: Cost structure. Indonesia or China. Finance and Competitiveness In 2012. Most of high EBITDA margin companies belong to Vicem and foreign-owned group. Figure 30: EBITDA of listed cement companies Content in this slide is intentionally removed for demo purposes 27 . most of listed cement companies had lower EBITDA than that of 2011 due to high increase in input price like coal and electricity.Section 4: Cost structure. Section 4: Cost structure. Finance and Competitiveness The average D/E ratio of listed cement companies stood at high level of 3.9 times. Big borrowings put a burden to cement companies and some of them go to bankrupt Figure 31: D/E of listed cement companies Content in this slide is intentionally removed for demo purposes 28 . only some companies had profit Content in this slide is intentionally removed for demo purposes 29 .Section 4: Cost structure. Finance and Competitiveness 2/3 listed cement companies got loss or got break-even. Finance and Competitiveness Reasons for high manufacturing costs and low profit of Vietnam cement plants Content in this slide is intentionally removed for demo purposes 30 .Section 4: Cost structure. Contents Section 5: WHGG and policy in cement sector 31 . Section 5: WHGG and policy in cement sector Decision 1488/QD-TT approved The Master Plan in cement sector period 2011-2020 Content in this slide is intentionally removed for demo purposes 32 . Section 5: WHGG and policy in cement sector High investment costs Saving electricity consumption WHGG Bank hesitate to lend Revenue from selling CO2 quota Content in this slide is intentionally removed for demo purposes 33 . Contents Section 6: M&A opportunities 34 . foreign players are starting to take interest and invest heavy in Vietnam Cement Sector. limestone) in Vietnam Content in this slide is intentionally removed for demo purposes 35 . the Government has already allowed foreign investors to own cement factories along with materials mines (clay. The Government has permitted a number of divestments of State ownership at some large cement factories but not less than par value. In addition.Section 6: M&A Opportunities Since domestic players seem to be in a tight spot. successful M&A deal between domestic cement plant and foreign investor requires not only efforts from both sides but also supports from government.Section 6: M&A Opportunities Opportunities for M&A in cement sector are obvious. Content in this slide is intentionally removed for demo purposes 36 . however. Contents Appendix 37 . Appendix 1: Cement plants under construction Content in this slide is intentionally removed for demo purposes 38 . Appendix 2: Kind of Products There are two main types of cement in Vietnam market: Portland Cement (PC) and Portland Cement Blended (PCB). Quality standards of Vietnam cement satisfy all international standards Content in this slide is intentionally removed for demo purposes 39 . Appendix 3: Key and on going projects in infrastructure Content in this slide is intentionally removed for demo purposes 40 . Appendix 3: Key and on going projects in infrastructure Content in this slide is intentionally removed for demo purposes 41 . Appendix 4: Full list of cement plants to be built period 2013-2030 Content in this slide is intentionally removed for demo purposes 42 . Appendix 5: Fact sheet of listed cement companies Content in this slide is intentionally removed for demo purposes 43 . 375 6.8% 117.2% Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales 27.056.0% 121.6% 436.032 349.198 797.453 5.423.368 14.004 4.3% 44.098 25.144.109.345 858.051 2.457 121.676 517.805 367.504 26.300 3.530 108.880 4.798 58.366.984 2.380.940 7.253.7% 76.611.249.651 26.655 721.967 347.246 2.006 14.9% 430.608.363 5.318 627.815 11.676.7% 105.880 5.4% 119.412.014 1.718 326.063.787 9.489 340.025.5% Sales Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales Current Assets Accounts receivable Inventory Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Debt/ Total Assets 2008 BTS 49.299 2.6% 357.522 129.6% 68.046 14.182 628.649 443.776 8.070 1.3% 64.3% 180.420 Sales 830.359 (31.059 38.347 10.227 Total Liabilities Net Assets 3.2% 221.513 7.0% 68.1% 65.9% 244.862.469 355.021 5.012 52.952 15.556) -110.550 151.765 32.129 16.7% 164.8% 101.315 244.445 150.828 1.065 4.611 7.119 1.021 1.913 102.567 1.494 425.196.372 1.2% 2.422.264 863.391.9% 55.1% 63.127 347.2% 369.397 367.226 1.370 2.832 871.730 607.1% 200.815 11.3% 43.862.436 781.302 25.594.9% 64.9% 0 227.5% 75.0% 53.412 73.283 99.093.727 4.280 157.593.0% 140.045 5.347 1.884 1.9% 302.489 235.211.140.198 426.1% 60.015.318.723 22.041 11.803.5% 58.7% 65.1% 65.637 0.724.918 17.126 0 0 0.2% 311.476 71.939 975.633 21.186.340 2.200.589 526.861 1.333 24.5% 147.057 292.553 1.709 7.037 419.198 4.821 428.393 4.937 1.924.3% 65.401.431.385 699.642.2% 146.165 2.4% 92.209.018.693 609.429 1.9% 169.8% 133.1% 43.282.606 443.518 318.365.0% 63.258 308.727.147 72.Appendix 5: Fact sheet of listed cement companies VICEM BUTSON VND Millions BTS BTS BTS BTS VICEM HOANG MAI CEMENT HOM VND Millions HOM HOM HOM HOM 2009 2010 2011 2012 2008 2009 2010 2011 2012 1.3% 227.043 5.557 478.923 209.4% 178.651 1.877 3.665 103.7% 182.9% 68.835 16.088 713.305 26.248 12.140 422.516.160 152.832 20.121.9% 259.956 24.801 432.606 1.251 1.027 100.464 763.8% 141.423 98.849 685.181 2.168.203.293.4% 1.522.902 2.046 14.710 2.768 110.246.167 23.039 2.526 2.703 252.457 60.9% 103.7% (1.5% 87.2% 577.669 62.878 2.885 393.9% 157.459 112.2% 35.0% 428.122.389.803.1% 1.526.564.124 25.4% 2.846 448.858 1.467 907.925 4.896 5.828 222.576 902.195.044.837 35.059 1.6% 0 302.437 1.204 94.7% 926.515 11.613 131.9% 10.200.8% 1.431.592.918 15.581 2.483 4.288 5.051 907.577 2.240.348 4.5% 117.049 152.572 5.484 248.116 327.135 27.7% 918.376 5.209 24.070 341.578 4.566 327.426 322.081.662 20.006.267.982 585.066 1.918.672 486.360 104.491.069 1.373 132.163 931.305 146.661 4.837 150.213.477 599.5% 110.650 Total Liabilities Net Assets 1.319 525.178 889.631 823.377 293.726 30.972 29.445 2.9% 48.347 107.225 912.810 465.577 9.8% 268.138 4.821 308.770 3.896.707 346.782.342 4.662 1.767 1.553 Non-Current Liabilities Borrowings 4.2% 101.341 857.722 150.5% 64.181 528.270.7% 203.959 2.032 76.500 765.821) (31.409 18.409 358.2% 109.095 378.370 8.064.160 882.480 4.301 96.199 857.821) -1.827 2.1% 2.068.221 83.649 983.608 2.289 322.5% 78.513 58.2% 127.627.275 1.374 6.659 350.0% 54.4% Current Assets Accounts receivable Inventory Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Debt/ Total Assets 44 .300 2.756 372.980 1.5% 25.888 327.179 31.266 1.208 330.828 Non-Current Liabilities Borrowings 2.836 2.323 5.319 84. Appendix 5: Fact sheet of listed cement companies 45 . 052 7.635 18.125 204.284 9.322 65.7% 200.014 153.882 44.154 50.1% 4.1% 6.628 7.061 329.1% 3.7% Cash Flow From Operation (979) 4.476 23.525 274.371 67.014 103.771 240.4% 35.858 130.2% 16.568 193.315 108.301 53.001 70.219 1.1% 162.307 7.706 36.829 2.4% 1.4% 6.0% 8.865 54.970 4.436 76.936 8.673 31.025 Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax 3.788 2.4% 3.5% 7.306 15.872 5.237 S&M % 3.813 0 0 211.668 17.558 47.154 Net Assets 187.583 108.977 48.7% 15.147 162.6% 22.311 Debt/ Total Assets 45.494 98.559 28.741 7.148 577.997 39.6% 1.088 5.024 3.279 74.135) -23.911 108.639 86.713 165.800 96.1% 6.717 57.365 Non-Current Assets 173.292 20.217 8.966 283.916 48.866 88.3% 142.798 25.9% 1.054 3.819 19.979 8.435 27.110 6.563 1.749 9.713 447.465 47 0 147.036 60.0% 2.037 132.2% 4.7% Current Assets Accounts receivable Inventory HVX Sales & Marketing 8.5% 188.702 1.168 90.800 14.500 0 0 0 85 202 387 500 0 0 0 0 0 0 Total Liabilities 148.703 117.809 39.6% 6.744 20.400 15.9% 41.4% 2.807 57.476 2.184 315.8% 0 16.478 30.3% 1.583 45.420 229.2% 70.1% 22.077 1.711 33.039 35.184 2.142 103.993 14.189 7.557 172.466 2.254 3.174 111.630 2.949 9.229 50.903 109.864 39.480 8.820 52.6% -2.403 109.9% 13.4% 5.288 Cost of Sales 266.776 1.992 313.573 21.9% 7.904 407.809 3.356 22.320 0.941 47.655 4.124 150.429 102.412 5.131 3.952 2.3% 15.911 79.9% 4.921 12.597 14.8% 9.454 4.8% 5.5% 3.0% 0.1% 6.616 78.198 31.0% Administration 8.277 106.929 10.2% 6.616 0 9.949 9.551 16.401 2.235 17.618 30.408 16.270 122.6% 5.808 16.371 47.6% 5.500 GP Margin % Overhead Expenses 4.607 69.6% 20.0% Net Profit Margin % Current Assets Accounts receivable Inventory Current Liabilities Accounts payable Borrowings Non-Current Liabilities Borrowings Debt/ Total Assets 46 .182 12.993 766 6.3% 21.0% 0.838 148.040 Total Assets 335.064 8.294 90.890 62.102 29.143 17.309 31.1% 11.1% 9.0% 23.1% (2.6% 31.954 80.081 12.744 28.491 109.821 71.340 713.540 20.853 Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales 176.633 Gross Profit 11.234 25.473 32.5% 8.196 84.383 195.2% 4.057 133.536 12.2% 16.5% 2.9% Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Non-Current Liabilities Borrowings HVX HVX HVX HVX 2008 2009 2010 2011 2012 Sales 277.538 13.4% (52.218 0 0 221.9% 4.2% 12.623 10.966) 8.656) -1.040 32.447 9.0% 3.5% 0.678 50.0% 7.512 140.019 43.6% 3.147 112.991 22.5% 7.033 31.131 6.4% 21.872 121.254 34.225 27.173 33.167 88.095 50.735 10.Appendix 5: Fact sheet of listed cement companies CAN THO CEMENT VND Millions CCM CCM CCM CCM CCM VICEM HAI VAN VND Millions 2008 2009 2010 2011 2012 Sales 201.108 12.6% 2.937 603.017 88.260 56.931 45.014 666.641 2.8% (5.232 4.562 26.611 101.955 40.650 120 0 Total Liabilities Net Assets 65.405 4.6% 6.710 19.304 18.3% 15.0% 8.253 42.4% 3.547 CFO/Sales -0.2% 188.1% 2.599 10.704 192.098 8.737 67.2% 4.604 0 219.923 49.5% 27.903 28.359 9.546 33.084 5.991 11.805 225.644 40.535 362.257 230.4% 5.480 14.825 2.773 10.603 10.1% 9. 362 0 618 618 46.998 11.9% 94.4% 65.573 493.1% 92.1% (1.9% (4.0% 90.293 114.767 13.310.806 2.540 182.431 257.877 9.456 582.197 39.579 57.044 667.6% 93.151 6.770 57.775 2.252 1.804.649 10.4% (2.118 9.0% (4.157.410 9.595 5.795 12.5% 126.412 6.630.975 7.597 1.261 9.6% 79.576) -2.207 5.7% 189.587 37.954 69.313.244 16.744 71.439 588.5% 2.625 8.133.317 5.138.6% (11.2% 2.700 5.6% 2.0% 0 (4.0% 6 6 (3.622 8.901 14.907 19.193 1.395 10.246 958.110 6.837 7.328 1.7% 1.990 316.798 3.665 3.006 112.4% 34.674 486.918 27.154 101.3% 0 127.184 12.898 1.356 32.632 733.423 23.298 1.8% 1.058 5.769 25.400 4.3% 85.8% (7.313 4.852 1.290 1.6% (2.600.705 358.5% 3.672 0 0 0 Total Liabilities Net Assets 8.711 6.270 215.6% 2.064 10.322 2.4% 0.417 8.380 199.173 (3.4% 1.8% 154.8% 960.896) -14.701) -4.923 4.028 0 511 0 43.853 1.110 6.436 772.062) -1.586 54.629 209.815 11.873 27.537.162 799.747 328.1% (11.300) -9.1% 3.253 39.371 293.505 34.271 12.943 1.209 227.991 647.4% 0 102.9% 0 0 (898) (898) -1.671 287.4% 74.0% 1.586 16.6% 38.439 177.7% 102.385 7.004 1.211 722.0% 610.350) -10.503) -12.562 1.693) -2.0% 37.8% 62.311) -19.8% 3.1% 48.3% (12.714 5.477 9.0% 1.2% 2008 2009 2010 2011 2012 Sales 69.928 222.Appendix 5: Fact sheet of listed cement companies QUANG NINH CONSTRUCTION & CEMENT QNC SONG DA CEMENT QNC QNC QNC VND Millions VND Millions Sales Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales Current Assets Accounts receivable Inventory Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Non-Current Liabilities Borrowings Total Liabilities Net Assets Debt/ Total Assets SCC SCC SCC SCC SCC QNC 2008 2009 2010 2011 2012 744.2% 111.257 2.218 638.553 226.151 29.376 13.217 248.028 391.8% 0 0 5.0% Current Assets Accounts receivable Inventory Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Debt/ Total Assets 47 .0% 55.865 3.969 240.923 52.896) -14.220.865 17.395 4.949 Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales 59.723 10.110 6.410 6.563 585.8% 34.143 671.7% (207.3% 73.582 584.1% 11.0% 61.027) -2.8% 3.550 7.552 1.733 5.541 693.082.773 67.501 5.4% 82.443 20.201.4% (20.7% 16.389 31.396 19.950 407 0 49.304 4.885 4.074 35.0% 0.650 11.4% 3.277.490) -6.486 4.979) -0.1% 1.071 1.009 152.806 578.571.350 76.208 14.614 7.078.055) (3.322 813 1.456 4.604 1.231 84.386 74.418.4% 2.300) (3.3% 0 0 (3.541 822.960 10.629 202.198 3.446 567.134 34.498 10.847 15 2.380.178.202.322 285.320 533.930 0.361 8.704 1.196 239.0% 56.054 7.948 9.953 865.624) -6.855 211.684 7.4% 127.7% 16.396 6.466 2.283 13.516 955.176 58.4% 65.911 397.6% 42.093 4.431 518 1.765 1.4% 177.809) -8.797) -8.675 6.834 232.094 3.200 4.026 0 706 0 38.699 883.615 13.913 226.740 83.4% 1.390.021.7% 1.636 1.143 63.008 (1.006 23.998 12.435 3.638 61.4% 1.6% 3.943 7.4% 115.937 5.998 40.979.3% 61.435 13.2% 0.4% 5 0 7.262 1.598 283.435 13.6% 123.504 981.466 Non-Current Liabilities Borrowings 47.181 833.413 17. Appendix 5: Fact sheet of listed cement companies 48 . 812 84.659 88.2% 1.0% 0 0.2% 2.899 7.357 33.029 4.0% 13.969 22.348 244.5% 15.685 57.738 33.553 19.297 Non-Current Liabilities Borrowings 0 0 0 0 0 0 103.478 6.914 35.2% 6.740 30.976 208.132 32.561 6.2% 0 0 0 0 56.403 84.7% 3.177 Current Assets Accounts receivable 68.400 0.282 4.742 113.029 4.144 94.164 Debt/ Total Assets 53.0% 0 0 0 0 0.0% 17.018 11.218 8.260 3.4% Cash Flow From Operation 29.7% 937 0.0% 0 14.110 100.709 46.330 52.523 57.448 19.420 156.027 0.713 28.4% 0 0.026 220.0% (20.667 27.0% 0 0.914 45.030 31.909 37.036 195.194 95.124 261.095) -4.685 Net Assets 57.5% 9.943 28.1% 4.771 42.0% 392.345 10.454 0.8% 11.301 191.8% 944 0.155 10.136 9.637 65.315 122.427 7.0% 10.532 279.887 142.087 88.156 19.025 37.499 6.619 94.451 10.603 31.0% 0 0.310 4.5% (13.265 88.270 7.508 11.4% 13.925 50.641 45.0% 0 0 0 0 0.372 59.755 1.846 40.310 723 633 0.942 293.7% 304 304 47.937 62.074 Gross Profit 25.729 CFO/Sales 18.0% 0 0 0.914 129.8% 5.9% 177.609 76.392 78.260 11.Appendix 5: Fact sheet of listed cement companies HUU NGHI VINH SINH VND Millions Sales Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales MAX MAX MAX MAX MAX 2008 2009 2010 2011 2012 0 0 444.337 15.466 162.0% 6.022 23.407 24.1% 4.329 39.730 13.457 8.973 93.041 48.553 82.1% 0 5.076 49.0% 11.392 11.502 2.243 Non-Current Assets 109.035 31.8% 9.871 125.702 95.893 0 84.818 32.182 Profit/(Loss) before tax 14.7% 18.8% 10.0% 0 0 0.435 10.125 10.4% 14.0% 0 0.121 25.9% 5.9% 9.0% 1.3% 9.882 46.947 43.369 231.0% 3.155 47.812 6.866 26.779 96.6% 1.031 44.5% 17.3% 7.564 53.677 19.360 20.561 6.205 101.074 1.026 Net Profit/(Loss) after tax 10.827 198.898 GP Margin % Overhead Expenses 0 0.182 7.0% 0.7% 12.610 40.4% 13.330 0 0 0 26.923 123.836 94.064 8.500 20 0 216.435 10.007 20.530 0 119.458 92.9% 2.156 19.758 22.7% 24.8% 14.682 2.6% (18.021 122.315 34.248 199.1% 4.691 41.4% Borrowings Non-Current Liabilities Borrowings Total Liabilities 49 .103 62.894 36.581 249.401 23.589 0 0 0 187.206 5.570 33.0% 3.973 202.2% 31.764 Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense 3.1% 1.0% Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Debt/ Total Assets VND Millions SDG SDG SDG SDG SDG 2008 2009 2010 2011 2012 Sales 165.0% 0 0.731 23.711 122.170 15.8% 16.577 38.950 62.515 7.951 30.361 11.736 120.500 20 0 Total Liabilities Net Assets 0 0 20.711 0 0 0.934 76.884 43.500 20 0 Total Assets 177.9% 1.0% Current Assets Accounts receivable Inventory CAN THO SADICO Sales & Marketing 1.015 61.1% 1.573 8.639 0.279 99.577 2.521 15.136) 0.295 38.2% 47.103 77.0% 6.586 6.751 S&M % 0.945 116.0% 0 0 0.244 Cost of Sales 139.508 15.7% 224.337 15.9% 5.0% Administration 5.701 113.8% 40.4% 1.908 3.9% 41.7% 0 47.862 25.135 2.0% 2.341 8.122 31.592 98.716) -11.319 10.849 95.5% Net Profit Margin % Inventory Current Liabilities Accounts payable 7.8% 42.381 93.0% 114. Appendix 5: Fact sheet of listed cement companies 50 . 300 237.699 465.988 22.583 8.658 9.701 338.8% 26.5% 15.415 544.741) (5.690 4.567 117.8% 53.089 43.577 337.767 0.241 2.0% 6.861 6.5% 4.276 (14.0% 150.0% 24.772 45.330 258.3% 11.7% 359.5% (2.501 54.086 28.571 11.284 23.715 10.774 73.809 3.448 16.796) -15.941) -22.115 257.158 2.208 73.139 321.092 10.865 52.473 98.822 32.865) -4.501 3.2% 3.703 70.545 125.7% 333.672 23.750 189.6% 8.955 55.471 8.827 56.3% Current Assets Accounts receivable Inventory Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Non-Current Liabilities Borrowings Total Liabilities Net Assets 66.105 37.650 521.366 2.0% 9.997 17.321 102.198 52.466 2.914 20.168 8.086 (19.102 568.5% 68.2% 14.0% 135.627 78.642 67.730 138.238 105.119 23.705) -5.081 24.376) -16.976 3.905 14.202 9.0% 20.991 55.2% 0 11.256 7.426 (23.576 96.323 193.835 1.457 60.109 147.679 4.203 274.0% 166.161 8.400 167.238 126.092 127.247 49.5% 32.7% 26.084 25.856 374.122 13.115 33.4% 9.005 246.598) (1.2% Current Assets Accounts receivable Inventory Non-Current Assets Total Assets Current Liabilities Accounts payable Borrowings Non-Current Liabilities Borrowings Total Liabilities Net Assets Debt/ Total Assets 51 .006 1.580 4.7% 6.677 58.9% 30.141 7.112 263.607 101.424 37.338 115.325 9.796) -15.888 47.789 111.713 176.101 0 102.6% 13.7% 5.340 4.2% 25.243 175.4% 69.850 57.674 168.955) -52.793 283.162 25.953 74.927 46.9% 37.249 0 28.641 13.326 25.772 250.249 27.852 69.0% 0 0.8% 29.135 2.9% (23.076 5.248 50.4% 8.751 25.1% 21.376 409.642 33.267 269.697) (19.573 158.6% 61.0% 0 0 0 0 0.2% 27.827 0 23.7% 34.872 62.248 347.8% 20.954 8.2% 44.342 3.996 39.744 55.8% 29.655 146.427 50.909 14.976 3.1% 23.585 2.649 25.598) -1.900 20.0% 9.3% 313.4% (24.5% 4.108 7.758 291.127 344.840 177.1% 1.0% 0 0.2% 67.0% 299.138 4.276 44.928 58.4% (25.807 8.837 23.011 54.2% 4.051 62.734 23.5% 5.965 31.177 0 9.843 25.114 19.386 61.371 1.8% 75.372 4.420 116.744 10.7% 6.446 471.9% 0 13.582 (10.897 80.427 11.474 407.999 281.346 121.772 141.257 50.0% 0 0.939 7.2% 0 0.327 5.748 51.924 92.319 47.064 20.670 11.584 79.163) (14.151 177.647 115.4% 234 0.512 47.7% 6.614 136.762 99.834) -7.0% 3.680 2.748 161.007 2.543 260.8% 0 (23.440 11.5% 7.2% 3.074 51.0% 0 0.471 14.567 3.512 57.6% Debt/ Total Assets LANG SON CEMENT LCC LCC LCC LCC LCC VND Millions 2008 2009 2010 2011 2012 Sales Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales 0 0 0 0.827 83.020 15.955) (78.1% 67.766 146.741) -4.826 289.972 8.5% 18.2% 8.206 58.931 (1.931 266.187 55.3% 83.434 28.405 10.7% 23.0% 7.337) -1.Appendix 5: Fact sheet of listed cement companies YEN BAI CEMENT VND Millions YBC YBC YBC YBC YBC 2008 2009 2010 2011 2012 Sales Cost of Sales Gross Profit GP Margin % Overhead Expenses Sales & Marketing S&M % Administration Admin % EBIT EBIT Margin % Depreciation EBITDA EBITDA Margin % Financial Expense Interest Expense Profit/(Loss) before tax Net Profit/(Loss) after tax Net Profit Margin % Cash Flow From Operation CFO/Sales 225.680 32.0% 0 0 0.415 338.566 4.875 46.8% 29.594 4.854) 17.210 489.2% 75.690 49.154 4.5% 110.3% 66.886 341.390 22.671 (5.671 3.228 (78.274 351.931 3.070 0 309.939 7. Appendix 5: Fact sheet of listed cement companies 52 . Contents Appendix 6: Introduction about StoxPlus 53 . providing comprehensive information. corporate owners and management. financial institutions. banks. analytic solutions.Appendix 6: About StoxPlus and Research Capabilities StoxPlus is proud to be a leading business information corporation in Vietnam. StoxPlus Corporation Information Services • Pioneer in data feed services to financial sector in Vietnam • A sustainable client portfolio including top 10 brokerage firms Investing Tools • An in-house built platform for thousands of sophisticated investors • Financial IT solutions Research Services • A team of seasoned professionals delivering market research. 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