Company

LOGO ALPHANAM JSC

INDUSTRIAL COMBINATION

Content

1. Company Overview.

2. Relationship between Vietnamese financial market and Alphanam’s financial management.

3. Company’s Profitability and Risks.

Company Overview

• Established in 1995 as Alphanam Co., Ltd• 2002: Alphanam JSC• Industry: Industrial Combination• Business Fields:- Manufacturing Industrial Equipment, Material and Products- Installation and Contruction of Industrial Infrastructure- Real Estate Business- Financial Investment• ALP was listed on HOSE on December 18, 2007• Chartered Capital: 438,203,930,000 VND

Company Overview

Company Overview

Financial Relationship

EXAMPLE #1:- In 2010, Alphanam JSC and GEM signed

a term sheet in which GEM committed to invest 30 million in Alphanam in shares, with the purchasing price at 90% of market price.

- Financial market:+ Ineffective administrative procedures+ Stock prices fell

Example #1 (cont.)

- Effects: Alphanam did not want to sell their shares at 90% market price as agreed 6 months ago.

- Financial Decision: put off the deal temporarily.

Example #2

EXAMPLE #2- 10/2010: Alphanam intended to issue 200 bil.

worth in bonds for MB purchase with a 15% annual interest rate.

- Financial Market:

+ Ineffective administrative procedures.

+ Interest rate increased from 12-13% to 19-20% after 3 months.

- Effects: High interest rate caused the bond offering to fail.

Balance Sheet

Income Statement

Liquidity Ratios

• Rather low liquidity risks.

• 2008: maintained a good capability of paying short-term debts.

Leverage Ratios

• Very low risks in insolvency.

• May have failed to take advantage of financial leverage

Efficiency Ratios

• Capital Management might have problems.

• Not a generous creditor.

Profitability Ratios

• Quite effective through years

• Relatively low profitability compared to the industry’s

Market Value Ratios

• Business Performance is getting better

• Attract investors

DuPont Analysis

• ROE = Profit Margin (NI/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)

DuPont Analysis

• Profit Margin affects ROE the most