VOF Q1 2013 Report Final

VinaCapital Vietnam Opportunity Fund Limited

Fund update 2 Manager comment Portfolio data

Market update 5 Macro economy Real estate market

Company and project updates 7

Note on valuation methodology 10

Historical financial information 11

Manager information 12

Investment manager’s quarterly report 31 March 2013

2


VinaCapital Vietnam Opportunity Fund AIM: VOF

Manager comment

VOF’s unaudited net asset value was USD779.5 million or USD2.76 per share as at 31 March 2013, an increase of 5.3 percent compared to an auditor reviewed USD2.62 per share as at 31 December 2012. The Company’s share price closed the period at USD2.11, up 14.7 percent from a closing price of USD1.84 at the end of December 2012. As a result, VOF’s share price to NAV discount narrowed to 23.7 percent from 29.0 percent a quarter ago.

This increase in NAV was attributable to VOF’s capital markets portfolio which increased 14.4 percent during the quarter, underpinned by shares of Vinamilk (VNM), Hoa Phat Group (HPG) and Kinh Do Corp (KDC), which rose 31.8, 23.8 and 20.5 percent, respectively. Additionally, the Company’s capital markets portfolio continued to outperform regional indices during the quarter. The MSCI Asia ex-Japan and MSCI Emerging markets indices declined by 0.7 percent and 1.9 percent, respectively.

During the first quarter, the Company bought back 4.8 million ordinary shares, which are held in Treasury. Since the onset of the share buyback programme, the Company has spent USD69.0 million in total, to buy back 42.0 million shares, representing 12.9 percent of the Company’s ordinary shares in issue.

On 7 March 2013, we presented an update of the Company to shareholders at the Edmond de Rothschild Emerging Markets Funds Conference 2013 in London, UK. Our presentation provided an update on performance over the past year and VOF’s strategy going forward. You can access the presentation on our website by clicking on this link.

Real estate project revaluations

VOF project revaluations were undertaken for the period ending 31 March 2013 with a number of projects appraised by international valuation consultants. Key appraised projects include: Century 21, My Gia, Danang Golf Course and Danang Beach Resort. The outcome was a downward market value adjustment on the majority of these projects. Results were primarily due to the continued softening in the real estate market over the past quarter, with ongoing illiquidity and a high cost of mortgage financing.

Performance history (% change on NAV)

2013 2012 2011 2010 2009 2008 2007

YTD 6.8% 17.4% -7.6% -1.6% 29.7% -46.6% 37.4%

VN Index 18.1% 18.9% -25.6% -7.2% 47.7% -68.6% 23.5%

NAV and share price performance (31 Mar 2013)

Fund background

VinaCapital Vietnam Opportunity Fund (VOF) is a closed-end fund trading on the AIM Market of the London Stock Exchange.

ISIN KYG9361Y1026 Bloomberg VOF LN Reuters VOF.L

Investment objective

Medium to long-term capital gains with some recurring income and short-term profit taking. Primary investment focus areas are: privately negotiated equity investments; undervalued/distressed assets; privatization of state-owned enterprises; real estate; and private placements into listed and OTC-traded companies.

View VOF details.

Download VOF factsheet.

Fund managing director

Andy Ho

Manager

VOF is managed by VinaCapital Investment Management Ltd (VCIM) and requires investment approvals from a four member Internal Investment Committee. More information about VCIM is available here.

SP 2.11

NAV 2.76

0.0

1.0

2.0

3.0

4.0

5.0 USD

31 March 2013

NAV 2.76 per share (↑5.3% q-o-q)

Total NAV: USD779.5 million

Performance summary

Cumulative change:

31-Mar-13

(USD) 3mth 1yr 3yr 5yr NAV per share 2.76 5.3% 17.1% 13.5% 2.9%

Share price 2.11 14.7% 35.9% 34.0% -31.7%

Premium/(Discount) (23.7%) Market cap (mln) 595.1 Total NAV (mln) 779.5

http://www.vinacapital.com/userfiles/data/VOF Fund Update - Rothschild Conference - 2013.pdf

http://www.vinacapital.com/download.php?files=VOF.Factsheet.June.2011.pdf

http://www.vinacapital.com/index.php?l1=81

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Top holdings at 31 March 2013

Top 5 listed investments

Name of Investee % of NAV Sector Description

Vinamilk (VNM) 13.2 Consumer goods Leading dairy company with dominant market share.

Eximbank (EIB) 5.5 Financial services One of the top ten commercial banks.

Kinh Do Corp (KDC) 4.4 Consumer goods Top confectionery manufacturer in Vietnam.

Hoa Phat Group (HPG) 3.2 Industrials The largest steel manufacturer by market share.

Hau Giang Pharmaceuticals 2.4 Pharmaceuticals & health care The largest domestic pharmaceutical producer in Vietnam.

Top 5 OTC investments


An Giang Plant Protection 5.0 Agriculture The largest plant protection chemicals producers.

Nam Viet Oil 0.4 Mining/Oil & Gas Major gasoline producer.

Binh Dien Fertiliser 0.3 Agriculture The largest NPK fertiliser producer.

Tam Phuoc Industrial 0.1 Infrastructure An industrial park, a subsidiary of Tin Nghia, Dong Nai's biggest state corporation.

Minh Hai Jostoco 0.1 Agriculture One of Vietnam’s largest shrimp processors and exporters.

Top 5 real estate & hospitality investments

Project % of NAV Sector Description

Sofitel Metropole 8.1 Hospitality Vietnam’s top city-centre hotel.

Century 21 2.9 Real estate HCM City residential development.

VinaLand Ltd (AIM: VNL) 2.0 Real estate VCIM-managed Vietnam real estate fund.

Dai Phuoc Lotus 1.9 Real estate Residential developer with townhouse sales underway.

Danang Beach Resort / Golf course 1.7 Real estate Resort villa sales underway.

Top 5 private equity investments


Prime Group 4.2 Industrials The largest ceramics producer with dominant market share.

IBS 1.2 Industrials Construction materials firm.

Hoan My Hospital 0.7 Pharmaceuticals & health care Private hospital chain.

International School, HCMC 0.6 Education Leading international school in Ho Chi Minh City providing world-quality education.

SSG- Saigon Pearl 0.6 Real estate One of the biggest property developers in Vietnam.

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Impact on NAV Q1 2013 (USD’000)

Recent divestment results

Portfolio by asset class

Portfolio by sector

Exit date Dec-11 Feb-12 May-12 May-12 Mar-12 Mar-13 Sep-12 Dec-12 Dec-12 Mar-13

Entry date Sep-09 Feb-07 Apr-07 Jun-04 Jul-04 Dec-03 Dec-07 Mar-10 Mar-12 Oct-05

Gross XIRR 32% 6% -38% 137% 43% 14% 17% 34% -5% 9%

Multiple 2.2 1.4 0.6 1.7 2.8 1.2 2.0 2.4 1.0 1.4

43.0%

17.3%

9.3%

9.2%

7.5%

6.0%

3.5%

3.2%

0.9%

Listed equity

Real estate

Private equity

Hospitality

Cash

OTC stocks

Others

Bonds

Overseas equity

19.9%

17.3%

10.7%

10.1%

9.2%

7.8%

7.5%

4.8%

3.9%

3.5%

3.0%

2.2%

Consumer goods

Real estate projects

Agriculture

Industrials

Hospitality

Financial services

Cash

Other sectors

Real estate equities

Others

Pharma and healthcare

Mining/Oil & Gas

0

10

20

30

40

50

Hoan My Hospital

Pho 24 Pha Lai Power Sacombank Binh Minh Insurance

REE Indochina Food

Prime group Clear Interest Group Limited

Transimex

USDm Investment Exit

(10,144)

(3,866)

52,456

(4,019)

3,503

(2,181)

1,139

(20,000) (10,000) - 10,000 20,000 30,000 40,000 50,000 60,000

Share buyback

Operating Expenses

Capital markets

Real estate projects

Hospitality projects

Cash and others

Private equity

36,889 investment

gains

5



0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Mar

-10

Jul-

10

No

v-1

0

Mar

-11

Jul-

11

No

v-1

1

Mar

-12

Jul-

12

No

v-1

2

Mar

-13

Vietnam’s consumer price index grew at an annual rate of 6.6 percent during the month of March.

Q1 2013 GDP growth slowed to 4.9 percent and was mostly attributable to exports.

Vietnam recorded a trade surplus of USD500 million during the period.

Vietnam’s currency remained stable at approximately VND20,900 per USD.

Macroeconomic update

Vietnam’s consumer price index (CPI) slowed to 6.6 percent in the first quarter, on a year-on-year basis, mainly attributable to food and foodstuff prices increasing just 1.8 percent during the same period. In March, the State Bank of Vietnam (SBV) cut main policy rates by 100bps, therefore, the refinance and discount rates have been lowered to 8.0 and 6.0 percent, respectively, while caps on deposit rates were lowered to 7.5 percent. This is a signal that the central bank is continuing to support the economy by stimulating growth.

First quarter GDP figures showed that the Vietnamese economy expanded by 4.9 percent, mainly driven by exports. The foreign direct investment sector continues to be an important driver of growth as the government implements policies to improve domestic demand. During the quarter, foreign direct investment disbursement figures reached USD2.7 billion. Additionally, registered capital soared to USD6.0 billion in 1Q 2013, mainly as a result of a commitment of USD2.8 billion for the Nghi Son oil refinery and USD2.0 billion for a new Samsung factory in Thai Nguyen. Japan remained the largest investor out of 31 countries and territories investing in Vietnam in the first quarter, having newly registered and expanded capital of over USD3.2 billion.

According to the General Statistics Office (GSO), Vietnam’s trade deficit in March was approximately USD300 million. However, for the first three months of the year, the country recorded a trade surplus of nearly USD500 million based on USD29.7 billion of exports. Many exported commodities, including seafood, coffee, crude oil, wood and wooden products, garments and footwear, recorded an export turnover of over USD1.0 billion in Q1 2013.

In March, the SBV also demonstrated its ability to stablise the foreign exchange market following the disturbance caused by an increase in demand for USD to cover imports during February’s lunar holiday season. The SBV intervened by selling sufficient official dollar reserves to maintain the longstanding exchange rate of approximately VND20,900 per USD.

Macro-economic indicators and forecast

2012 Q1 2013 YTD Y-o-Y

change

GDP growth1 5.0% 4.9% 4.9% -

Inflation 6.8% 2.4% 2.4% 6.6% FDI (USDbn)

13.0 6.0 6.0 63.6%

Imports (USDbn)

114.3 29.2 29.2 -32.9%

Exports2

(USDbn) 114.6 29.7 29.7 -30.8%

Trade surplus/(deficit) (USDbn)

0.3 0.5 0.5 -16.7%

Exchange rate3

(USD/VND) 20,855 20,960 0.3% 0.2%

Bank deposit rate (VND, %)

8.0% 7.5% 0.0% -41.7%

Quarterly GDP growth

Source: GSO

Sources: GSO, SBV, VCB. 1 Annualized rate, updated quarterly. 2 Includes gold. 3 Vietcombank ask rate

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The government has taken several measures during Q1 2013 to support the real estate market.

Condominium sales are expected to remain muted for 2013. Landed property is expected to stabilise and recover quicker than condominiums.

Foreign retailers remain interested in Vietnam.

Hotels: Local investors expected to be more active in buying luxury brand hotels.

Real estate market

The first quarter of 2013 witnessed the introduction of several new government policies to support the property market. In March, the SBV issued a draft circular to provide VND30,000 billion (USD1.4 billion) to support low interest loans for low income home buyers and developers. Short-term VND deposit rate caps were also reduced from 8.0 to 7.5 percent in an effort to divert some consumer savings into properties. The proposed establishment of a state-led asset management company (VAMC) to deal with non-performing loans (NPLs) in the banking system has not been approved, given further refinements are required from related ministries and government bodies. While the government is continuing to finalise an effective solution, NPLs continue to impact commercial banks negatively and hinder their ability to lend or reduce interest rates. As a result, lending rates are still sitting at around 15.0 percent for real estate related loans, resulting in an extremely challenging environment for financing and re-financing of real estate projects. However, we believe these initiatives are not likely to be adequate enough to materially improve the current property market. The Manager is currently working with several local banks to renegotiate existing project bank loans in addition to exploring alternative offshore debt facilities that could either be based on project companies or a facility at Fund level.

According to Jones Lang LaSalle and CB Richard Ellis (CBRE), the residential sector experienced some improvement in demand volume during the previous quarter; however, selling prices continued to either fall or remain flat at best. The majority of the apartment and landed home units purchased were lower/mid market and either completed or were scheduled to be handed over during 2013. Prices have been under pressure as developers compete across most sub sectors, causing many to continue to offer various incentives to stimulate demand. For the full year, condominium sales are expected to remain slow across the country with completed projects faring slightly better. There is growing interest in the affordable and mid-end segments (USD600 - USD1,000 per sqm) and it is expected that more products in these segments will be introduced later this year. Despite the decline in interest rates, market liquidity will take time to improve and enforce a positive impact on residential sales.

In both primary and secondary markets, prices of villas and townhouses are still trending down and sales rates are slow. It is expected that the landed property sector will recover faster than the condominium sector given Vietnamese buyers generally prefer landed houses. Demand remains steady for the medium priced villa market (including bare shell products), especially for good quality projects with reputable developers, good quality, and a good living environment with green space and amenities. While some developers have been able to sell units and hold prices firm, others have reduced prices or changed their sales strategy. Additionally, land plot projects are gaining more interest due to their affordability.

New concept or strategically located retail centres such as Vincom Center A and Pandora City in Ho Chi Minh (HCMC) are still attracting tenants. Consistent leasing activity throughout new projects has slightly increased occupancy rates within the central business district (CBD). Despite the difficult economic conditions which have impacted consumer spending over the past 12 months, Vietnam still offers favorable demographics and rising consumer disposable incomes, which have maintained the interest of large foreign retail brands waiting to enter the market. Food and beverage, daily necessities, and entertainment related retailers are expected to continue driving the market in 2013.

The number of foreigners travelling to Vietnam totalled 1.8 million in Q1 2013, a 6.2 percent decline compared to the same period last year, impacted by tighter travelling budgets due to the persistent global economic slowdown. Nevertheless, CBRE expects that more international hotel brands will enter the market in 2013. They believe several merger and acquisition deals could occur, especially in the luxury segment, with local investors potentially being more active than foreign companies. Hotels situated in prime locations such as the CBD areas of Hanoi and HCMC are expected to see an improvement in their daily rates from 2012.

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Sofitel Legend Metropole Hanoi

Acquired by VOF in 2005, the Sofitel Legend Metropole Hanoi Hotel (Metropole Hotel) is located on 7,500 sqm in the prime location of Hanoi’s CBD, surrounded by various historic monuments and museums. Managed by Accor Group, the hotel operates with 364 rooms over 27,289 sqm gross floor area. In August 2011, a wartime air raid shelter was discovered hidden within the hotel grounds and is now renovated for touring.

The Metropole Hanoi’s average occupancy rate was 66.5 percent throughout FY 2012, generating USD35.2 million in revenue and USD18.9 million in gross operating profit for the year.

Management expects financial results to remain stable through FY 2013, with a target of USD37.0 million in revenue and USD19.7 million in gross profit. As of 31 March 2013, revenue reached USD10.8 million and gross operating profit of USD6.1 million, meeting 108 percent and 111 percent of management’s target, respectively.

As at 31 March 2013, VOF’s stake in the Sofitel Legend Metropole Hanoi is valued at USD63.5 million.

As at 31 March 2013, VOF’s stake in BDFC is valued at USD2.4 million.

Binh Dien Fertilizer JSC (BDFC)

Established in 1973 as private company and equitized in 2010, BDFC is the largest NPK fertilizer manufacturer in Vietnam. BDFC’s current annual production capacity is approximately 500,000 tons, accounting for 30 percent of the overall market share. The company’s main product line has nearly 100 unique stock keeping units (SKU’s) of NPK fertilizer developed and marketed under the Dau Trau brand name.

Vietnam’s southern market makes up 60.0 percent of the company’s total sales. In 2012, the company made efforts to expand into the northern region of the country, as well as Cambodia through various marketing campaigns. Management has indicated that in 2013, the company will explore opportunities in the promising Myanmar market.

In FY 2012, the company achieved solid growth in both sales and profit of 19.0 percent and 93.0 percent, respectively. BDFC’s net profit growth was largely due to a significant decline in interest expense. For FY 2013, the company expects to achieve revenue and net profit growth of 22.0 percent and 17.0 percent, respectively.

As at 31 March 2013, the company is trading at trailing P/E ratio of 4.2x and P/B ratio of 1.0x.

Financial highlights

Profit and loss (VND bn) FY09A FY10A FY11A FY12A

Net revenue 1,067 2,030 6,233 7,423

Gross profit 282 709 436 553

Gross margin (%) 26% 35% 7.0 7.4

Net profit 267 502 72 139

Net margin (%) 25% 25% 1.2 1.9

EPS (adjusted) (VND) 3,284 6,175 1,806 3,494

DPS 3,284 6,175 1,200 1,800

Balance sheet (VND bn)

Total assets 1,869 2,305 2,685 2,557

Shareholders’ equity 1,159 1,284 482 554

ROE (%) 23.0% 39.1% 15 25

Book value per share (VND) 14,256 15,793 12,141 14,000

Valuation

PER (x) 13.2 7.0 8.0 4.2

P/B (x) 2.0 2.8 1.2 1.0

Dividend yield (%) 2.5% 4.5% 8.3 12.4


Profit and loss (USD mn) FY09A FY10A FY11A FY12A YTD

Revenue 24.5 30.9 34.3 35.2 10.8

Gross profit 10.2 15.1 17.6 18.9 6.1

Gross margin 41.6% 48.9% 51.3% 53.4% 56.5%

Net income 3.1 5.3 6.9 7.5 3.1

Net margin 12.7% 17.2% 20.1% 21.3% 28.7%

Balance sheet

Total assets 50.1 48.2 47.8 43.8 44.2

Shareholders’ equity 32 33.4 32.2 33.2 36.3

ROE (%) 10% 16% 21% 22.5% 8.5%

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As at 31 Mar 2013, VOF’s stake in VNM is valued at USD102.7 million.


Profit and loss (VND bn) FY10A FY11A FY12A FY13E Mar YTD

Revenue 160.4 164.2 170.0 173.0 43.5

Gross profit 58.9 105.7 115.3 116.4 30.0

Gross margin 36.7% 64.4% 67.8% 67.3% 69.0%

Net income 4.8 16.8 38.3 53.3 14.4

Net margin 3.0% 10.2% 22.5% 30.8% 33.1%

EPS (adjusted)


Total assets 770.2 771.2 783.2 n/a 783.4

Shareholders’ equity 264.4 285.9 342.3 n/a 356.7

ROE (%) 1.8% 5.9% 11.2% n/a 4.0%

Book value per share 10,576.0 11,436.0 13,692.0 n/a 14,268.0

As at 31 March 2013, VOF’s stake in the Hung Vuong Corporation is valued at USD10.9 million.

Hung Vuong Corporation

Hung Vuong Corporation, together with its local partner – Saigon 5, developed Hung Vuong Plaza, a commercial center located in District 5 of Ho Chi Minh City. Situated on a prime location within the district, Hung Vuong Plaza includes a 9-storey retail podium with a total leasable area of 29,966 sqm. The property sits on a 9,531 sqm site and has a land right use certificate for 50 years. The retail center was officially launched back in the middle of 2007.

Hung Vuong Plaza’s average occupancy rate was 98.7 percent throughout 2012, generating USD8.1 million in revenue and USD5.5 million in gross operating profit. A change in management at the end of 2011 resulted in a higher net margin of 22.5 percent compared to just 10.2 percent in FY 2011.

As at 31 March 2013, the company reported revenue of USD2.1 million and gross operation profit of USD1.4 million. Management expects financial results to remain stable throughout FY 2013, with a target of USD8.3 million in revenue and USD5.6 million in gross profit.

Vinamilk (VNM)

Vinamilk (VNM) is the leading dairy products manufacturer and distributor in Vietnam, with more than 30 percent of the total dairy market. The company offers a wide range of products, from fresh and powdered milk to condensed milk, yogurt and coffee. The domestic market accounts for about 90 percent of total sales. It is the first Vietnamese company to be one of Asia’ s Top 200 Small and Midsize Companies, according to Forbes, ranked 18th among the Top 200 in terms of profit and 31st in overall market value.

VNM achieved net revenue of USD1.3 billion in FY 2012, an increase of 23.0 percent year-on-year and a net profit of USD280 million, up 39.6 percent compared to FY 2011. Over the past three years, VNM has achieved a compound annual growth rate of 37.0 percent for revenue. The company expects the Vietnamese dairy industry to continue growing at an annual rate of 15-20 percent. In Q1 2013, VNM opened a new USD100 million dairy factory, one of the world largest.

As of 31 March 2013, VNM traded at VND116,000 per share, equivalent to a P/E ratio of 16.6x and a P/B ratio of 4.8x.


Profit and loss (VND bn) FY10A FY11A FY12A FY13E

Net revenue 17,184 22,264 27,101 31,780

Gross profit 5,173 6,554 9,076 11,120

Gross margin (%) 30.1% 29.4% 33.5% 35%

Net profit 3,616 4,166 5,819 6,500

Net margin (%) 21.0% 18.7% 21.4% 19.6%

EPS (adjusted) (VND) 6,845 7,632 6,981 7,800

DPS 2,000 3,000 4,000 3,400

Balance sheet (VND bn) FY10E FY11A FY12A FY13E

Total assets 10,773 15,564 19,697 22,000

Shareholders’ equity 7,964 12,412 15,493 20,000

ROE (%) 45.4% 33.6% 37.5% 32.5%

Book value per share (VND)

14,323 22,323 18,592 24,000

Valuation FY10E FY11A FY12A FY13E

PER (x) 12.6 12.0 16.6x 14.8

P/B (x) 6.0 4.0 6.4 4.8

Dividend yield (%) 2.3% 4.4% 3.5% 2.9%

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As at 31 March 2013, VOF’s stake in DPM is valued at USD17.8 million

As at 31 March 2013, VOF’s stake in PVD is valued at USD3.2 million

PetroVietnam Fertilizer and Chemicals JSC (DPM)

PetroVietnam Fertilizer and Chemicals (DPM) is a leading fertilizer producer in Vietnam, with an estimated 40 percent market share in urea fertilizer and a production capacity of 800,000 tons per annum. Its parent company, PetroVietnam, owns a 61.75 percent stake in DPM.

DPM reported total revenue and net profit for FY 2012 at USD633 million and USD143 million. Rising input cost squeezed the company’s net margin from 34.0 percent in FY 2011 to 23.0 percent in FY 2012.

For 2013, DPM’s management has set conservative guidance, with an expected USD91 million in profit before tax on USD510 million in revenue , due mainly to concerns over competition from two new urea plants in Ca Mau and Ninh Binh that were launched this year. The company looks to expand into the Cambodian and Myanmar markets in the near future.

As at 31 March 2013, shares of DPM closed at VND44,900, equivalent to a P/E ratio of 6.8x and a P/B ratio of 1.8x.

PetroVietnam Drilling and Well Services JSC (PVD)

PetroVietnam Drilling JSC (PVD) is a leading Vietnamese drilling-related services company, with its parent, PetroVietnam, owning a 50 percent stake. The company owns and operates five drilling rigs, including three jack-up rigs and one tender assist drilling rig (TAD), in addition to its leased jack-up fleet. PVD has successfully established a team of highly technical experts, as well as long term relationships with its clients, namely VietsovPetro, British Petroleum and Chevron.

PVD performance was strong in FY 2012 despite a difficult macroeconomic environment in Vietnam due mainly to high regional day-rates on drilling rigs and the launch of a fifth TAD rig in February 2012. PVD’s revenue and net profit was USD566.7 million and USD63.0 million in 2012, up 29.0 percent and 21.0 percent, respectively.

For FY 2013, management expects even stronger results amid continued demand for jack-up drilling rigs in the region, which could help increase the company’s drilling day-rates. The company expects to earn a net profit of USD76.2 million in 2013.

As at 31 March 2013, shares of PVD closed at VND42,400, equivalent to a P/E ratio of 6.3x and a P/B ratio of 1.2x.



Net revenue 6,619 9,226 13,321 10,700

Gross profit 2,382 4,035 4,324 3,600

Gross margin 36% 44% 32% 34%

Net profit 1,703 3,104 3,016 2,500

Net margin 26% 34% 23% 23%

EPS (adjusted) (VND) 4,533 8,287 8,000 6,600

DPS (VND) 2,000 3,500 4,500 3,500


Total assets 7,418 9,295 10,580 11,000


ROE (%) 29% 43% 35% 27%

Book value per share (VND) 16,400 21,780 23,730 23,900

Valuation

PER (x) 8.5 2.9 4.5 6.8

P/B (x) 2.3 1.1 1.5 1.8

Dividend yield (%) 5.3% 14.7% 10.5% 8.3%



Net revenue 7,572 9,210 11,930 12000

Gross profit 1,758 2,057 2,683 3,000

Gross margin 23% 22% 22% 26%

Net profit 906 1,075 1,324 1,600

Net margin 12% 12% 12% 13%

EPS (adjusted) (VND) 4,400 5,160 6,260 6,400

DPS (VND) 2,000 1,487 - 2,000


Total assets 14,640 18,535 19,083 22,000


ROE (%) 19% 18% 20% 20%

Book value per share (VND) 24,900 29,600 33,300 32800

Valuation

PER (x) 11.8 6.3 6.0 6.6

P/B (x) 2.1 1.1 1.1 1.3

Dividend yield (%) 3.8% 4.6% 4.2% 5.0%

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Valuation and NAV calculation The accurate and fair valuation of assets held in fund portfolios is a central component of successful fund management. VOF follows international best practice whenever possible in its valuation process. Relevant dates VOF’s financial year-end is 30 June. Audited annual results must be announced within six months of this date. Interim results at 31 December receive a review from auditors and must be announced within three months of this date. VOF calculates its unaudited NAV monthly and this is normally announced within ten days of month-end. Update reports on the fund’s performance are issued on a monthly and quarterly basis, in addition to an annual report with the audited final results. The methods used to value different assets: Listed equities The value of listed securities is based on the last traded price of the security on the stock exchange where it trades, or if there is more than one stock exchange on which the security trades, that which is considered the principal stock exchange for that security. OTC equities The market price of OTC equities is determined based on a sample of closing prices obtained from a minimum of three leading securities companies in Vietnam. The price used is normally the average of the sample, with outlying prices removed to avoid bias.

Private equities Unquoted securities will initially be valued at cost. Revaluations of unquoted investments are conducted at 30 June annually in accordance with the guidelines issued by the British Investment Fund Association. Real estate holdings Real estate projects are initially valued at cost. Once an investment license is obtained, or by way of other arrangements VOF has a legal entitlement to an investment property, the investment property is revalued. Investment properties are revalued at least annually and may be revalued more frequently if the investment manager or valuation committee believes there has been a material change in the value of a property. The valuation process consists of obtaining two or more valuations for each property from independent third-party valuation companies. The valuations are reviewed by the valuation committee as the basis for the final valuation approved by the Board. At the end of each quarter, the manager also reviews all real estate investments for possible impairment based on internal calculations. If there is evidence of impairment an independent valuation will be obtained to assess the need for any adjustment in the value of the property. All other assets and liabilities are recorded at their respective fair values or cost, as required by the International Financial Reporting Standards and as set out in the Notes to the Consolidated Financial Statements.

More information on valuation is available on the Investing policy page of the VOF website: VOF Investing policy. Audit and Valuation committees VOF has both an audit and valuation committee composed of independent non-executive members of the board of directors of the fund, and chaired by an independent director. The committees meet at least quarterly.

VOF Audit Committee Michael G. Gray (Chairman) Martin Glynn William Vanderfelt VOF Valuation Committee Martin Glynn (Chairman) William Vanderfelt Michael G. Gray

The manager update section provides investors with information on the policies and practices of VinaCapital Investment Management Ltd (VCIM), as well as updates on VinaCapital relevant to the performance of its investment funds.

http://www.vinacapital.com/index.php?l1=85&l2=92&l3=93&l4=111

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Fund summary

VinaCapital Vietnam Opportunity Fund Ltd (“Vietnam Opportunity Fund” or “VOF”) is a closed-end fund trading on the AIM Market of the London Stock Exchange. Download the VOF factsheet at www.vinacapital.com

Fund launch 30 September 2003

Term of fund Five years with continuation, subject to shareholder vote for liquidation

Fund domicile Cayman Islands

Legal form Exempted company limited by shares

Structure Single class of ordinary shares trading on the AIM market of the London Stock Exchange plc.

Auditor PricewaterhouseCoopers (Hong Kong)

Nominated adviser (Nomad) Grant Thornton Corporate Finance

Custodian and Administrator HSBC Trustee

Brokers Edmond de Rothschild Securities (Bloomberg: LCFR) Numis Securities (Bloomberg: NUMI)

Lawyers Lawrence Graham (UK) Maples and Calder (Cayman Islands)

Management and performance fee Management fee of 2 percent of NAV. Performance fee of 20 percent of total NAV increase after achieving the higher of an 8 percent compound annual return and the high watermark

Investment manager: VinaCapital Investment Management Ltd

Investment policy: Medium to long term capital gains with some recurring income and short term profit taking. Primary investment focus areas are: Privately negotiated equity investments; Undervalued/distressed assets; Privatization of state-owned enterprises; Real estate; and Private placements into listed and OTC-traded companies.

Investment focus by geography: Greater Indochina comprising: Vietnam (minimum of 70 percent), Cambodia, Laos, and southern China.

Historical financial information

Years ended 30 June 2008 2009 2010 2011 2012

Statement of Income (USD’000)

Total income from ordinary activities -381,067 29,075 134,263 -8,420 54,556

Total expenses from ordinary activities -34,465 -25,869 -29,047 -27,214 -25,424

Operating profit before income tax -415,532 3,206 105,216 -35,634 29,132

Income tax expense -125 -108 211 545 700

Profit for the year -415,657 3,098 105,005 -36,179 28,432

Minority interests 1,347 -3,684 311 106 0

Profit attributable to ordinary equity holders -417,004 6,782 104,694 -36,285 28,432

Statement of financial position (USD’000)

Total assets 723,614 718,023 793,820 764,603 775,455

Total liabilities 54,727 36,111 11,319 12,697 9,810

Net assets 668,877 681,912 782,501 751,906 765,645

Share information

Basic earnings per share (cents per share) -141 2 32 -11 9

Share price as 30 June 2.16 1.43 1.40 1.57 1.50

Ordinary share capital (thousand shares) 324,610 324,610 324,610 324,610 312,536

Market capitalization at 30 June (USD’000) 699,535 462,569 455,428 509,313 468,803

Net asset value per ordinary share (USD) 2.06 2.10 2.41 2.32 2.45

Ratio

Return on average ordinary share holder’s funds -67.8% 1.1% 17.0% -6.0% 4.0%

Total expense ratio (% of NAV) 2.18% 2.24% 2.16% 2.13% 2.13%

http://www.vinacapital.com/

12



VinaCapital

VinaCapital Investment Management Ltd (VCIM) is the BVI-registered investment manager of VOF.

Don Lam Chief Executive Officer

Brook Taylor Chief Operating Officer

Andy Ho Managing Director, Head of Investment

Dang P. Minh Loan Deputy Managing Director, Private equity

Contact

David Dropsey Investor Relations/Communications [email protected] +848-3821-9930 www.vinacapital.com

Vietnam Opportunity Fund (VOF)

Brokers Edmond de Rothschild Securities +44 (0)20 7845 5960 or [email protected]

Numis Securities + 44 (0)20 7260 1327, www.numiscorp.com

Nominated adviser Grant Thornton Corporate Finance

Auditor PricewaterhouseCoopers (Hong Kong)

Internal auditor KPMG (Vietnam)

Custodian and Admin

HSBC Trustee

Important Information

This document, and the material contained therein, is not intended as an offer or solicitation for the subscription, purchase or sale of securities in Vietnam Opportunity Fund Limited, VinaLand Limited or Vietnam Infrastructure Limited (each a “Company”). Any investment in any of the Companies must be based solely on the Admission Document of that Company or other offering document issued from time to time by that Company, in accordance with applicable laws.

The material in this document is not intended to provide, and should not be relied on for accounting, legal or tax advice or investment recommendations. Potential investors are advised to independently review and/or obtain independent professional advice and draw their own conclusions regarding the economic benefit and risks of investment in either of the Companies and legal, regulatory, credit, tax and accounting aspects in relation to their particular circumstances.

The securities of the Companies have not been and will not be registered under any securities laws of the United States of America nor any of its territories or possessions or areas subject to its jurisdiction and, absent an exemption, may not be offered for sale or sold to nationals or residents thereof.

No undertaking, representation, warranty or other assurance, express or implied, is given by or on behalf of either of the Companies or VinaCapital Investment Management Limited or any of their respective directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this document and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise.

No warranty is given, in whole or in part, regarding the performance of either of the Companies. There is no guarantee that investment objectives of any of the three Companies will be achieved. Potential investors should be aware that past performance may not necessarily be repeated in the future. The price of shares and the income from them may fluctuate upwards or downwards and cannot be guaranteed.

This document is intended for the use of the addressee and recipient only and should not be relied upon by any persons and may not be reproduced, redistributed, passed on or published, in whole or in part, for any purposes, without the prior written consent of VinaCapital Investment Management Limited.

VOF Board of Directors VinaCapital Vietnam Opportunity Fund Ltd (VOF) is led by a Board of Directors composed of a majority of independent non-executive directors.

William Vanderfelt Chairman (Independent)

Michael G. Gray Director (Independent)

Martin Glynn Director (Independent)

Steven Bates Director (Independent)

Martin Adams Director (Independent)

Don Lam Director

http://www.vinacapital.com/

mailto:[email protected]

http://www.numiscorp.com/

Documents

VOF Q1 2013 Report Final