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VINH HOAN
THE WORLD’S LEADING
PANGASIUS COMPANY
INDUSTRY DYNAMICSTop 10 companies accounted for 54% value of Vietnam pangasius industry in 2016
US$m
251
134
102 10180
61 58 54 45 45
0
50
100
150
200
250
300
Top 10 pangasius companies in Vietnam in 2016
VINH HOAN (VHC)15%
BIENDONG8%
HUNG VUONG (HVG)
6%
Golden Quality
6%
NAVICO (ANV)
5%
I.D.I (IDI)3%
AGIFISH (AGF)
3%
HUNGCA3%
TRUONG GIANG
3%
GODACO2%
Over 190 other companies
46%
2016 Market share (%)
VINH HOAN: LEADING PANGASIUS COMPANY SINCE 2010
2008 2009 2010 2011 2012 2013 2014 2015 2016
Navico
188
Hung
Vuong
122
VHC
126
VHC
151
VHC
155
VHC
166
VHC
207
VHC
228
VHC
251
Hung
Vuong
169
VHC
115
Hung
Vuong
101
Hung
Vuong
101
Hung
Vuong
120
Agifish
113
Hung
Vuong
140
Biendong
117
Biendong
134
VHC
101
NamViet
85
Anvifish
62
Agifish
84
Agifish
92
Hung
Vuong
106
NAVICO
109
Hung
Vuong
96
Hung
Vuong
102
Agifish
90
Anvifish
57
Agifish
59
Anvifish
83.1
Anvifish
83
IDI
98
AGIFISH
85
Navico
93
Golden
Quality
101
Top pangasius exporters by value (USD mn)
COMPARABLES
Source: Capital IQ
Attractive multiples and lower leverage compared to peer companies
0.0x2.0x4.0x6.0x8.0x
10.0x12.0x14.0x16.0x18.0x
EV/EBITDA
0.0x
5.0x
10.0x
15.0x
20.0x
25.0xP/E
0%10%20%30%40%50%60%70%80%
Total Debt/Capital %
Note: Last twelve month basis
NM NM
20 YEARS OF GROWTH
Vinh Hoan
was
founded
The first
workshop’s
capacity:
100MT/day
Total
processing
capacity:
450MT/day
Listed on
HOSE
Total
processing
capacity:
150MT/day
Became the
#1 pangasius
company
Purchased Van
Duc Tien Giang
Total
processing
capacity:
550MT/day
Total processing
capacity: 750MT/day
New kabayaki line in
VDTG, with capacity:
approx. 2,000 MT of
finished products p.a
Started production
of collagen &
gelatin
Design capacity:
approx. 2,000 MT
of finished products
p.a
Purchased
Thanh Binh
Processing
capacity
expected by
end of 2017:
900 MT/day
1997 1999 2007 2008 2010 2014 2015 2016 2017
OUR CORE VALUES
1. INTEGRATED BUSINESS MODEL
2. DIVERSIFIED PRODUCT PORTFOLIO
3. RENOWNED REPUTATION FOR QUALITY
4. SOLID AND EXPANDING CUSTOMER BASE
5. DEDICATED MANAGEMENT TEAM
CORE VALUES | 1. INTEGRATED BUSINESS MODEL
Hatchery Farm ProcessingMarketing and
Sales
Hatchery area: 75 ha
Self-supply: approx.
40% of fingerlings
Grow-out farming area:
400 ha
Raw materials self-
supply ratios (approx.):
• Pangasius: 60%
• Barramundi: 100%
• Tilapia: 50%
7 processing facilities for
fillets and value-added
products
3 fish meal and fish oil
facilities
1 collagen & gelatin
factory
Pangasius processing
capacity: aprrox. 800 tons
of raw materials/day
Complete traceability along the supply chain to ensure
food safety, quality and sustainability
Ho Chi Minh City sales
office
International
subsidiaries/branches
in China, Singapore,
and the US.
CORE VALUES | 2. DIVERSIFIED PRODUCT PORTFOLIO
Frozen fillets
Value-added products
By-products
Hydrolyzed proteins
extracted from fish
skin
Pangasius Barramundi Tilapia
Ready-to-cook Ready-to-eat
Fish oil Fishmeal Fish fins Fish nuggets
Collagen Gelatin
First pangasius
farm to receive ASC
certificate in 2012
The largest ASC-
certified farming
area: 142ha
First pangasius
company to obtain
BAP 4 star in 2015
Total BAP-certified
farming area: 155ha
Responsible &
sustainable
certifications
Environmental, social
responsibility and
food safety standards
Products quality is ensured by strict compliance with international farming standards and modern processing facilities
CORE VALUES | 3. RENOWNED REPUTATION FOR QUALITY
Total GAP-certified
farming area: 180ha
15%
EU
37% 6%
28%
34%
Australia
Canada
US China (*)
Over 180 customers in over 40 countries
% of VHC export value over
total Vietnam export value 2016
(*) Growing markets
CORE VALUES | 4. SOLID AND EXPANDING CUSTOMER BASE
Europe
15%
Hong Kong
30%
Japan (*)
19%
Latin America (*)
2%
CORE VALUES | 4. SOLID AND EXPANDING CUSTOMER BASE
42%
52%
Sales contribution of Top 10 customers
Reduced reliance on key customers
2016
2015
No. of
customers
% of sales
12
9
28
252016
2015
180
170
50% 70% 100%
The Founder and Chairwoman – Mdm. Truong Thi Le Khanh- whose vision, innovations, and commitment hasbeen the driving force behind the relentless growth of Vinh Hoan since its inception.
A visionary, experienced and focused management team.
CORE VALUES | 5. DEDICATED MANAGEMENT TEAM
Vinh Hoan Corp.
General Director Nguyen Ngo Vi Tam
Vinh
Welness
Director
Director of
system and
developme
nt*
Finance
DirectorVinh Foods
3 Directors
VDTG
DirectorProduction
Director
Global sales
and
marketing
Director
Relationship
Director
Vinh
Aquaculture
Director of
Sustainability
Shareholders
Board of management
Chairwoman Truong Thi Le Khanh
Supervisory
Board
Internal control
Accounti
ng
Finance*
*
Mechanic
al
engineeri
ng
HR
Factories,
farms and
departme
nts of
VDTG
HR**
IR
Legal*
IT
System
(ERP)**
Seafood
sales
Directors
Sales
offices
overseas
Octogone
Singapore
Thanh
Binh
Director
Farm
certificati
on
Farm
R&D
Productio
n planning
Factories Collagen
sales
Marketing
New
product
developme
nt
M&A**
Fish
quality
Relations
hip team
Admin
Procurement
Committee
Remuneration
Committee
Accountin
g
**
Operation
al
engineeri
ng
Raw
material
purchase
Sub-
material
purchase
Farms
Lab
Quality
control
Warehous
es
Constructi
on
GOING FORWARD....
GROWTH POTENTIALS
World population 2050: 9.1bn
Food supply: + 70% (*)
Charts data source:
OECD/FAO (2016), “OECD-FAO Agricultural Outlook”,
OECD Agriculture statistics (database),
http://dx.doi.org/10.1787/agr-data-en.
Increasing demand for farmed freshwater fish as an affordable and sustainable source of protein
(*) FAO, “How to feed the world in 2050” paper
50% 53%
50% 47%
Avg 2013-15est 2025
Fish Production Projections: Aquaculture vs Capture
Aquaculture Capture for human consumption
48%40% 39% 37%
30%21%
CATFISH, EELS AND MILKFISH
(INCL. PANGASIUS)
CARP SHRIMP TILAPIA SALMON AND TROUT
MOLLUSCS
Growth in world aquaculture production by species (2025 vs 2013-15)
GROWTH POTENTIALS
(1) Urner Barry Publications and U.S. Department of Commerce and Census Bureau
6th most consumed seafood in the US in 2015(2)
(2) Source: The National Fisheries Institute, 2016
213 224.52 214.23237.12
288220236.82 229.06
247.62
299
2012 2013 2014 2015 2016
Vietnam accounts for > 95% of the US catfish
imports(1)
Vietnam pangasius (US mn) Total US catfish imports (US mn)
Percentage of pangasius consumption/total seafood
consumption per capita in the US in 2015:
5%
CAGR of pangasius consumption (2011-2015): 20%
GROWTH POTENTIALS
Pangasius is native to sustainable aquaculture: Native to Mekong River Delta;
Disease resistance;
Low feed conversion ratio;
Easy boneless filleting
Highly commercial: White fillets, firm and flaky flesh;
Non-fishy, non-muddy taste, pleasing all ages;
Easy to cook, fits every cuisine;
Competitive price
Pangasius remains in the top growth of farmed species thanks to its high productivity,
competitive price, good taste, and vast applications
1.61 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.67 1.7
3.052.98
2.9 2.92.83
2.68 2.65 2.65 2.65 2.65 2.65 2.65
1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9
3.052.98
2.9 2.92.83
2.68 2.65 2.65 2.65 2.65 2.65 2.65
2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15
3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.13.02 3
4.5 4.5 4.5 4.5 4.54.38 4.35
4.3 4.3 4.3
4.094
2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.35 2.35
3.13.03
2.952.9
2.752.7 2.7 2.7 2.7 2.7 2.7 2.7
1.5
1.75
2
2.25
2.5
2.75
3
3.25
3.5
3.75
4
4.25
4.5
4.75
JAN-16 FEB-16 MAR-16 APR-16 MAY-16 JUN-16 JUL-16 AUG-16 SEP-16 OCT-16 NOV-16 DEC-16 Pangasius, Vietnam, Fillet, Fz, 5-7 oz Haddock, Atl, IQF, Skin-on, 8/10 oz Tilapia Fil, Fz (IVP) Shall/Stand Skin, Chem Free, CN, 5-7 oz Haddock, Atl, IQF, Skin-on, 6/8 oz Tilapia Fil, Fz (IVP) Shall/Stand Skin, Chem Free, CN, 7-9 oz Saithe, Pollock, Sknls/Bnls, Iceland, Shatt 8-16 oz Cod Shatt (FAS), Skls/Bnls, Atlantic 16-32 oz Pollock, Fil, AK, Pacific, Sin Fz, Sknls/Bnls, Shatt, 4-6 oz
Source: Urner Barry. All rights reserved
USD/lb
GOAL AND STRATEGIES
Environmental and Economic Sustainability
Branding
Sales & Value-added Products
Capacity
Promote Free Trade
Business Diversification
STRATEGIES | 1. BRANDING
In Aug 16, adopt new corporate identity with clear three-arm hierarchy to prioritize on each core business
Deploy more efficient and consistent communication assets (e.g. company websites and social media assets)
STRATEGIES | 2. SALES AND VALUE-ADDED PRODUCTS
Increase footholds in
existing markets and
develop new markets
Develop value-added
products (VAP)
Develop other strategic
sales channels
Sales Strategies
62%
58%
17%
16%
7%
10%
5%
5%
5%
4%
2015(USD)
2016(USD)
Market Breakdown 2016 vs 2015
USA EU China & Hong Kong
Canada Australia Latin America
Japan ASEAN Israel
In 2016, forged into 5 new markets in 2016, expanding sales network to 180
customers over 40 nations
Entered Spain’s largest supermarket chain - Mercadona’s shelves in Dec 16
STRATEGIES | 2. SALES AND VALUE-ADDED PRODUCTS
Increase footholds in
existing markets and
develop new markets
Develop value-added
products
Develop other strategic
sales channels
Sales Strategies
EU
Increase market
share in high-end
segments
Direct sales
Branding
Improve reputation
US
Promote free trade
of Vietnam
pangasius
Develop sales for
barramundi and
tilapia
Australia
Direct sales
Branding
Expand sales of
barramundi
STRATEGIES | 2. SALES AND VALUE-ADDED PRODUCTS
Increase foothold in
existing markets and
develop new markets
Develop value-added
products
Develop other strategic
sales channels
Sales Strategies
China
Direct sales of
premium products
to retailers and
restaurant chains
Sales to
foodservices
Japan
Develop high-end
segments
Develop value-
added products
Latin America
Direct sales
Promote product
quality and food
safety
STRATEGIES | 2. SALES AND VALUE-ADDED PRODUCTS
Increase footholds in
existing markets and
develop new markets
Develop other strategic
sales channels
Develop value-added
products (VAP)
VAP Sales forecast
Sales Strategies
• 7 new VAD products in 2016: 1 ready-to-eat and 6 ready-to-cook.
• 2 ready-to-cook products made into final list for “New Products” award
at 2 largest seafood tradeshows in Boston and Brussels.
• In Oct 16, launch new ready-to-eat (kabayaki grilled pangasius)
processing facility in VDTG with capacity of nearly 2,000MT FPs p.a.
• On-going projects of developing families of kabayaki-related ready-to-
cook products.
(USDm) 2015 2016 16 vs 15 2017F 17F vs 16
Value-added products 2.5 3.4 36% 15 441%
STRATEGIES | 3. CAPACITY EXPANSION
Raw material capacity
Production capacity
Maintain self-supply ratio at approx 65%, in 2016: 64%.
Prioritize expanding farming area certified with international farming standards
(ASC, Global GAP, BAP):
• Vinh Aquaculture division specializes in training and supporting contracted farms to
meet certification standards.
2016’s capacity: approx. 750 MT/day, up 11% yoy
Expand processing capacity for VAP:
• Kabayaki grilled pangasius line in VDTG: approx. 2,000MT p.a.
• Ready-to-cook products line in Dong Thap: approx. 120MT of raw materials/day
In Jan 2017, purchased 100% shares of Thanh Binh Dong Thap
(MT of raw materials per day)2017
Workshop No.1
2018
Workshop No.2
2019
Both workshops
Additional capacity of Thanh Binh
Dong Thap’s 2 workshops150 150 50-100
STRATEGIES | 4. BUSINESS DIVERSIFICATION
Collagen & Gelatin
The first company
produces single-source
collagen peptide and
gelatin from pangasius
skin
Other seafood M&A
Synergies:
• Location
• Human resources (direct labor,
technical and managerial team)
In Jan 2017, purchased 100% shares of
Thanh Binh Dong Thap
STRATEGIES | 5. PROMOTE FREE TRADE
Promote free trade • Track record of campaigning against unfair trade defence
• The only Vietnamese pangasius company enjoys 0% anti-
dumping duty in the U.S market.
• Coordinator between NAFIQAD and professional consultant
supporting NAFIQAD during the preparation phase for
submitting equivalency documentation to USDA.
Promote the industry• Public education, digital marketing campaign, and other efforts to
develop understanding about the industry
BUSINESS PERFORMANCE AND FORECAST
4,228 5,095
6,307 6,493 7,304
9220
2012 2013 2014 2015 2016 2017F
Net revenue (VND bn)
334 331
552 576
832 950
2012 2013 2014 2015 2016 2017F
EBITDA (VND bn)
CAGR: 15%
(+12% yoy)(+44% yoy)
174 196233 250 274
335
2012 2013 2014 2015 2016 2017F
Total export value (USD mn)
CAGR: 26%26% 14%
CAGR: 12%22%
2017F
Expansion of farming area VND 260bn~USD 11.3mnExpansion of processing
capacity VND 439bn~USD 19.1mn
Total VND 699bn~USD30.4mn
Capital Expenditure Plan
BUSINESS PLAN
Revenue and Gross Profit Margin by Products
Product Name Revenue (VND bn) Revenue (USD mn) Gross Profit Margin
(%)
Frozen pangasius fillets 6,682 291 17%
Fishmeal, fish oil and other by-
products 1,577 69 1%
Value-added products 198 9 27%
Collagen, Gelatin 118 5 13%
Fish feed 345 15 6%
Other aquatic products (Shrimp,
barramundi, tilapia)300 13 14%
Total 9,220 401 14%
SHARE INFO & SHAREHOLDERS STRUCTURE Outstanding shares: 92.3m
Treasury shares: 0.2m
Foreign ownership limit: 100%
Current foreign ownership: 28%
SHAREHOLDERS STRUCTURE(as of Nov 21, 2016)
Mdm. Khanh, 49.32%
Dragon Capital, 6.52%
Others, 44.16%
Contact Vinh Hoan IR at: [email protected]
Disclaimer
This presentation contains “forward-looking” statements regarding the business operations and prospects of
Vinh Hoan Corporation (the “Company”) and industry factors affecting it. These statements are identified by
words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,” “planned,”
“potential,” “continue,” “momentum,” “forecast,” and other words referring to events that may occur in the future.
These statements reflect the Company’s current view of future events and are based on its assessment of, and
are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual results to
differ materially from those indicated in the forward-looking statements. These factors could negatively impact
the Company's results of operations. Among other things, future profitability may be affected by the Company’s
ability to grow its business, which faces competition from companies that may have substantially greater
resources than the Company. Other risks and uncertainties regarding the Company, its business and the
industries in which it operates are referenced from time to time in the Company’s filings with the Ho Chi Minh
City Stock Exchange. The Company is under no obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
