#1I/VinaCapital VinaCapital Vietnam Opportunity Fund (VOF) Numis Emerging Markets / Asia Conference 2021 Andy Ho Managing Director Chief Investment Officer February 2021#2Vietnam's unique opportunity 97 MILLION POPULATION YOUNG, UPWARDLY MOBILE, SPENDING 6.5% GDP 2021 FORECAST, FASTEST GROWING IN REGION #1 FDI NEXT WAVE OF FDI, FACTORY RELOCATIONS OUT OF CHINA STABILITY STABLE, PRUDENT GOVERNMENT, ANTI- CORRUPTION EFFORTS Source: VinaCapital research, 2021#3VinaCap Investment Objective VOF's objective is to achieve medium to long-term returns through investment in assets either in Vietnam or in companies with a majority of their assets, operations, revenues or income in, or derived from, Vietnam. • About VinaCapital Founded in 2003, today is one of Vietnam's largest independent asset managers. USD3.4 billion under management, across alternative and traditional assets. Team of 70+ investment professionals, with 70+ support and middle office staff. Single-country focus, invested in over 200 business in Vietnam since inception. Investment Philosophy Provides a diversified strategy investing into public and private equities in Vietnam. Delivers superior risk-adjusted return in the medium to longer term. VinaCapital is uniquely positioned thanks to: Experienced local team Scalable operations Leading financial brand Classified: Public VinaCapital#44 Vietnam Long-Term Growth Story Improved in 2020! South China Morning Post Business NIKKEI ASIAN REVIEW Vietnam set to thrive on China's misery again as US, Japan Vietnam must turn coronavirus success goad companies to relocate manufacturing bases ASIATIMES EST 1995 Country has acquired financial and political capital in US-China trade war too South Asia v Middle East v World v Opinion ✓ Newsletters Tuesday, June 2, 2020-10:13:49 Vietnam+ TOPICS: Party Building UNSC Non-Permanent Membership Vietnam ASEAN Chairmanship Year 2020 Languages. Tiếng Việt English Français COVID-19 Español East Sea Climate Change 中文 Русский China ✓ Northeast Asia Southeast Asia Party Building Vietnam poised to be big post-pandemic winner Vietnam's 'coronavirus diplomacy REUTERS NIKKEI ASIAN REVIEW BUSINESS Vietnam to benefit from Japanese firms shifting away from China: JETRO official Vietnam is a strong candidate among the alternative investment destinations as Japanese enterprises are movi COVID-19 pandemic, according to Hirai Shinji, Chief Representative of the Japan Trade Promotion Apple to produce millions of AirPods in Vietnam amid pandemic US tech giant hastens shift away from China Business Markets World Po Samsung to shift some smartphone CNBC MARKETS BUSINESS INVESTING TECH POLITICS CNBC TV Amid virus crisis and trade war, companies are increasingly looking to production to Vietnam due to coronavirus Vietnam, says CIO Classified: Public LVinaCapital#55 Confident consumers drive domestic demand 10% 5% "V-Shaped" Recovery in Domestic Demand 9.4% 0% Jan & Feb Mar Apr May Jun July Aug Sep Oct Nov Dec -5% -10% -15% -20% -25% --23.0% Nominal Retail Sales (yoy) • Vietnam Consumer Confidence, #2 in the World after India (Nielsen) Confidence in the Government's handling of COVID, #1 in the World (IPSOS) LVinaCapital Classified: Public#66 Vietnam's next FDI wave will significantly boost GDP growth FDI companies will help build Vietnam's local suppliers by: ✓ Second executives to Vietnamese firms ✓ Transfer knowledge & Best practices ✓ Long-term procurement contracts In the past, FDI companies built up local suppliers in: Singapore, Thailand, Mexico, etc. In the 1980's, 80-90% of local companies in Singapore could not meet FDI companies' procurement quality standards! So FDI firms helped Singaporean companies improve! |VinaCapital Classified: Public#77 Apple starts building a local supply chain in Vietnam Apple will manufacture its $350, Airpods Studio Earphone product in Vietnam For the first time, Apple will manufacture in Vietnam before perfecting production in China MADE IN VIETNAM Apple is embarking on a "Multi-Year Process" to "Create a New Cluster of Component Providers" in Vietnam (WSJ) Classified: Public |VinaCapital#8Corporate Net Profit Growth Consensus net profit growth estimates for 2020 8| 20 20 10 0 -10 -20 -30 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Consensus estimates has been improving from Aug 2020 Source: Bloomberg, VinaCapital, as at 31 January 2021 Classified: Public Consensus Net Profit Growth Estimates Vietnam Philippines Indonesia Singapore Malaysia Thailand -5.3 -17.3 -35.9 -25.1 -41.6 -56.1 2020F 67.5 56.56.9 46.0 36.9 33.0 29.8 21.0 il 23.0 18.0 17.7 -2.7 2021F 2022F LVinaCapital#9Foreign Investor Flow Net foreign flow in 2020 Vietnam Indonesia Malaysia Accumulative net foreign flow into Vietnam Philippines Thailand 2,000 USD mn 1,000 -2,513 -3,220 W/o Block trade ויויי -5,782 Net foreign flow USD mn -8,287 0 (1,000) (2,000) (3,000) Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 -Total Block trade transaction -W/O Block trade transaction 9 Source: Bloomberg, Fiinpro as of 31 December 2020 Classified: Public LVinaCapital#10VNI in 2020 Performance of VN Index and Daily Turnover 2020 1,200 1200 COVID ONSET 30 Jan to 10 Apr OUTBREAK 21 Jul to 31 Aug 1,100 1000 A classic event-driven bear market: shorter duration, faster recovery 1,000 800 900 800 600 400 700 T 200 Daily Turnover in USDm (RS) 600 0 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 10 Source: Bloomberg as of 31 December 2020 Classified: Public IVinaCapital#1111| Vietnam Market Outlook ● ● For 2021: a higher VNI at year-end Key draws: ➤ Economic resiliency Greater earnings certainty ➤ A cheaper market ➤ Low foreign investor positioning ➤ MSCI upgrade watch Risk-on sentiment ➤ Support measures to remain ➤ USD weakness Source: VinaCapital LVinaCapital Classified: Public#12A Cheaper Market VN Index Indonesia 28.4 27.5 25.1 19.7 18.1 17.3 2020F ASEAN MARKET P/E (x) ■Malaysia Philippines Singapore Thailand 19.7 18.5 16.1 16.2 14.0 14.0 15.5 15.3 16.0 11.5 12.1 12.0 2021F 2022F 12 Source: Bloomberg and IMF, as at 31 December 2020. Classified: Public IVinaCapital#13MSCI Upgrade Watch MSCI FRONTIER MARKET: Pre-Kuwait's upgrade to EM COUNTRY WEIGHTS 8.39% 9.4% 11.65% 15.05% Kuwait 21.68% Vietnam 15.05% Morocco 11.65% Nigeria 9.4% Romania 8.39% Other 33.84% 13 Source: MSCI FM 100, FiinPro 33.84% • Vietnam's MSCI FM 100 weight would increase to ~29%. 21.68% Classified: Public • Vietnam upgrade to EM? Possibly 1H22... |VinaCapital#142020: VOF Performance Highlights III/ B XUẤT NS $1.1 BILLION NAV 31 DEC 2020 $6.29 PER SHARE1 THE SOUR +27% NAV TOTAL RETURN (VN INDEX +17.5%) 2 $50 MILLION SHARE BUYBACK3 DISCOUNT <8% 11CENTS DIVIDEND PAID ANNUAL YIELD 2%4 14| 2. 1234 Total NAV and NAV per share, USD terms Source: Bloomberg. VN Index total returns, NAV per share total return, USD terms. Total amount spent on share buybacks for FY2020, to acquire 8.7 million shares 4. Annual dividend paid 11 US cents (5.5 US cents paid semi-annually). Annual dividend yield represents 2.0% on share price at 31 December 2020. IVinaCapital Classified: Public#1530% 20% 10% 0% -10% -20% -30% -40% 31-Dec-19 31-Jan-20 VN Index ($TR) 29-Feb-20 31-Mar-20 30-Apr-20 1. Source: Bloomberg, VinaCapital, USD terms, total return basis (%), to 31 December 2020. 15 Classified: Public 40% 31-May-20 30-Jun-20 VOF delivers long term outperformance VOF Listed Equities VOF NAV/share ($SR) 31-Jul-20 31-Aug-20 2020 VOF performance vs. VN Index (%) 35.9% 27.3% 30-Sep-20 31-Oct-20 30-Nov-20 VOF NAV/share ($TR) VinaCapital 31-Dec-20 24.6% 17.4%#1616 VOF portfolio and Sector Allocation 1.1% 4.0% 15.5% Construction materials Real estate & construction Financial services 21.1% 20.6% 17.1% Food & beverage 8.9% Infrastructure 7.4% NAV: USD1.1bn 31 Dec 2020 Pharmaceuticals & health care 6.2% Consumer discretionary 5.8% 15.2% Information technology 2.9% Mining, oil & gas 2.4% 64.2% Industrials 2.3% Agriculture 2.1% Hospitality 1.8% ■Listed equity (64.2%) ■ Unlisted equity (15.2%) ■Private equity (15.5%) Operating assets 1.1% Utilities 0.1% ■ Bond (4.0%) Operating assets (1.1%) NAV as at 31 December 2020, excludes cash and others. Classified: Public IVinaCapital#17Private Equity: significant transactions during FY2020 PE: Ngoc Nghia USD21.4m 90000 PE: Thu Cuc International General Hospital USD26.2m 17 PE: Petrolimex Aviation USD8.5m PE: IN Holdings USD25.4m CXR 32003 FLAMMABLE KEEP CLEAR EXIT P Classified: Public ▼VinaCapital#1818 Public Equity: A concentrated portfolio of high-quality companies New names initiated... VINHOMES ACB ...while others sold Vietjet All HDBank FPT Vietcombank Vietnam Rubber Group PHR As at 30 September 2020 VPBank Classified: Public PETROVIETNAM BSR DABACO GROUP Reetech IVinaCapital#1919 Top holdings: Public Equity NAV Top 10 Public Equity Holdings Sector %NAV USDM 1 Hoa Phat Group (HPG) Construction Materials 194.9 18.2% 2 Khang Dien House (KDH) Real Estate and Construction 96.9 9.0% 3 Airports Corporation of Vietnam (ACV) Infrastructure 76.9 7.2% 4 Phu Nhuan Jewelry (PNJ) Consumer Discretionary 54.2 5.1% LO 5 Asia Commercial Bank (ACB) Financials Services 54.1 5.0% 6 Eximbank (EIB) Financials Services 50.9 4.8% 7 Orient Commercial Bank (OCB) Financial Services 40.8 3.8% 8 Vinamilk (VNM) Food and Beverage 40.3 3.8% 9 Quang Ngai Sugar (QNS) Food and Beverage 39.8 3.7% 10 Vinhomes (VHM) Real Estate and Construction 37.7 3.5% Total 686.4 64.0% As at 31 December 2020, unaudited. Classified: Public IVinaCapital#20Recap: VOF's investment strategy 01 · Growth Capital • • Capital to support expansion and growth Sectors benefitting from the growing domestic economy Long term investment horizon, excess returns to market 02 • Minority Protections • Volatility and weak corporate governance is pervasive Downside protections coupled with clear exit mechanisms Due diligence rights (on listed equities too), performance commitments, minority protections 03 Active Investing • Actively engage, provide access to expertise Participate at the board and/or managerial level to enhance growth and shareholder value. 04 • • Sell Discipline • Large stakes in companies to command an exit premium International buyers: strategic or financial investors, bankers Exit when below minimum targeted return or dilute the performance of the underlying portfolio 20 20 Classified: Public IVinaCapital#21VOF's Private Equity approach to investing 21 21 Due diligence rights Management involvement Corporate governance / ESG Performance commitment Downside Target IRR +20% protection Exit plan Classified: Public Milestone disbursement |VinaCapital#22Environmental, Social and Governance factors into our investment process 13% of Asia-Pacific investors incorporate ESG factors into their decisions or take concrete actions to improve their portfolio's ESG performance PRI Principles for Responsible Investment VinaCapital is a signatory to the UN's Principles for Responsible Investing IFC International Finance Corporation WORLD BANK GROUP Private investments follow the ESG evaluation and assessment framework set by the IFC / World Bank Ⓡ AN CƯỜNG Wood - Working Materials TCLI THUCUC INTERNATIONAL GENERAL HOSPITAL TMMC TAM TRI NHA TRANG GENERAL HOSPITAL BỆNH VIỆN ĐA KHOA TÂM TRÍ NHA TRANG 22 22 Source: Bain Asia-Pacific Private Equity Survey, 2019 (n=114) We focus on 2 areas of sustainability: 1. Water management 2. Clean energy Classified: Public TÂM TRÍ NHA TRANG anndeathonE.COM LVinaCapital#23Risks, opportunities and resiliency Exogenous Risks: COVID-related issues (global 2nd wave; virus mutation; vaccine rollout) Geopolitical tensions • Leadership or political transition Opportunities: • Investing into future leaders Access to a deep pipeline of deals Strong domestic economy and consumer Endogenous Risks: . 23 23 Resiliency: Local economy and businesses Access to vaccines, or a new COVID outbreak • Sector-specific risks Slow progress on key economic decisions & policies Slower domestic economic growth . Quality of VOF's portfolio • Earnings forecast higher than market Classified: Public LVinaCapital#24DISCLAIMER The information contained herein has been prepared by VinaCapital Group Limited (the "Company") and is subject to updating, completion, revision, further verification and amendment without notice. The information contained herein has not been approved by any listing authority or any investment regulator. The information does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained herein 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 for any other communication written or otherwise. The information herein may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose. By accepting receipt of this document, you agree to be bound by the limitations and restrictions set out above. Neither these pages nor any copy of them may be taken or transmitted into or distributed in any jurisdiction where the distribution of such material would be prohibited under the jurisdiction's applicable securities laws. Any failure to comply with this restriction may constitute a violation of national securities laws. Past performance is not a guarantee of future returns. ANDY HO Managing Director and Chief Investment Officer [email protected] KHANH VU Deputy Managing Director Investments [email protected] VinaCapital 17th Floor, Sun Wah Tower 115 Nguyen Hue, District 1, Ho Chi Minh City, Vietnam Tel: +84 28 3821 9930 Fax: +84 28 3821 9931 Email: [email protected] Website: www.vinacapital.com