VinaCapital funds update · VinaCapital funds update VOF –Vietnam Opportunity Fund Ltd VNI...

June 2011

VinaCapital funds update

VOF – Vietnam Opportunity Fund Ltd

VNI – Vietnam Infrastructure Ltd

VNL – VinaLand Ltd

The information contained herein has been prepared by VinaCapital Investment Management Ltd. (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, express 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.

Past performance in relation to any of the investments contained in this presentation is not indicative of the future performance of any investment that the Company may be involved in. The performance of any investments may differ from the performance of the investments shown in this presentation and such difference may be material. There is no guarantee that any investment opportunity similar to those presented herein will materialize or that the Company will generate any favorable return or any return at all from any such investment opportunity.

Certain information contained in this presentation constitutes forward-looking statements. Such statements may be subject to a number of factors and uncertainties that could cause actual events or results to differ materially from those reflected or contemplated in such forward-looking statements.

This presentation is not an advertisement and is not intended for public use or distribution. 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 such securities laws.

Disclaimer

2

Contents

1. Vietnam in 2011: economy and real estate market

2. VNL overview

3. Exit track record

4. Portfolio breakdown and NAV movement

5. Top ten holdings

3

Introduction – VinaCapital Group

VinaCapital Group (VCG) has over 180 investment professionals in four offices in Vietnam.

Our funds:

• Vietnam Opportunity Fund (VOF)

• VinaLand Ltd (VNL)

• Vietnam Infrastructure Ltd (VNI)

• Vietnam Fixed Income Fund (VFIF)

• DFJ VinaCapital LP

The Group:

• Manages USD1.7 billion in three listed and two unlisted funds.

• Holds stakes in VinaSecurities JSC, a full-service brokerage, and in VinaProjects JSC, a real estate project and construction manager.

• Offers class-leading expertise in capital and debt markets, securities, private equity, real estate and infrastructure investment.

• In 2010, opened offices in Singapore and Phnom Penh.

VinaCapital Group is the leading asset management and investment banking firm in Vietnam.

VinaCapital Group was founded in 2003 and is based in Ho Chi Minh City, with branch offices in Hanoi, Danang, Nha Trang, Phnom Penh and Singapore.

4

Vietnam in 2011: A challenging year

Vietnam’s 2010 recovery took a step backward in 2011 due to inflation and currency pressures.

• 2010 GDP growth: 6.8% with 11.8% inflation.

• By May 2011, inflation 19.8% y-o-y, while GDP growth for Q1 at 5.4% y-o-y.

What happened?

• Premature monetary loosening in Q4 2010. Credit growth too high, public investment efficiency too low.

• Vinashin news decreased international confidence in VN debt.

• Global commodity prices rose.

• FX reserves at USD13.5bn in early 2011 (only 1.9 months import coverage).

5

Macroeconomic indicators and forecast

2010 May-11 YTDY-o-Y

change

GDP growth1 6.8% 5.4%

Inflation 11.8% 2.2% 12.1% 19.8%

FDI (USDbn)

18.6 0.7 4.7 37.6%

Imports (USDbn)

84 9.2 41.3 29.7%

Exports2

(USDbn)71.6 7.5 34.7 32.8%

Trade deficit (USDbn)

12.4 1.7 6.6 22.2%

Exchange rate3

(USD/VND)19,500 20,700 6.2% n/a

Bank deposit rate (VND %)

12.0-14.0% 12.0-14.0% n/a n/a

Vietnam in 2011: Policies to combat inflation

Other policies put in place included:

• Stabilisation funds for consumer staples.

• USD3 billion in govt spending cuts.

• Gold jewelry export tax of 10%.

• Cap put on USD deposit rates of 0.5-2.0%.

• SOEs forced to sell USD.

Result of Q4 2010 loosening and subsequent events:

• Currency under pressure in early 2011, February devaluation required.

• Four devaluations in past 18 months, 20% depreciation.

• Inflation increased rapidly; Interest rates increased, tightening policies put in place.

• Monetary and fiscal tightening actions taken to support currency, reduce inflation.

• Cost of borrowing for businesses at 23-25% makes growth financing unaffordable.

Policies options being considered:

• Subsidised loans for businesses.

• Increased VND reserve requirements.

• Mandatory treasury bills.

6

Vietnam key interest rates, 2008-2011

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Mar-

08

Jun-0

8

Sep-0

8

Dec-0

8

Mar-

09

Jun-0

9

Sep-0

9

Dec-0

9

Mar-

10

Jun-1

0

Sep-1

0

Dec-1

0

Mar-

11

Jun-1

1

Base Rate Refinancing Rate Discount Rate

Vietnam in 2011: Outlook

Outlook for end 2011 and 2012.

• Inflation to peak in Q2 at ~22%, end 2011 at ~15%.

• Current account deficit ~5% at end-2011.

• F/X stable, will only change if interest rates decline notably.

• Capital flight to gold should subside, banks will have improved liquidity.

• GDP growth expected at 5.5-6% for 2011, with potential for return to high growth in 2012.

• FDI still on pace for USD10-11bn disbursement in 2011.

Downside risks:

• Govt must maintain tightening policies!

• Commodity price surge or debt crisis in Europe are risks.

7

Vietnam’s real estate market in 2011

A challenging, high-interest rate environment.

• Commercial projects ‘under construction’ stalling as developers cannot take on high-interest loans.

• Office market oversupply to continue for 18-24 months.

• Operating hotels recovering as tourism numbers continue to rise.

• Demand exists for 200,000 new residential units, but buyers are waiting for prices to drop (and mortgage rates to decline).

• Condo oversupply; Only 50% of the 100,000 planned units likely to be built in next few years.

• Only landed property is moving (villas). Developers who can bring affordable product to market will do well.

Key is bringing landed properties to market in the USD90-150,000 range; only the top developers can do this.

Long-term demand for new housing given demographic and income/culture changes.

8

Population density (persons/sq.km)

Persons per household

VinaCapital Vietnam

Opportunity Fund Ltd

VinaLand Limited Vietnam Infrastructure Limited

Closed-end fund Closed-end fund Closed-end fund

• Opportunity fund tapping growth and development of Vietnam.

• Equity and debt in listed, OTC-traded and private companies.

• Investment in existing properties and new developments in Vietnam.

• Infrastructure and related assets in Vietnam and surrounding Asian countries.

NAV: USD745m NAV: USD687m NAV: USD206m

VinaCapital funds

VinaCapital AIM-traded fundsCombined NAV: USD1.7 billion (31 May 2011)

Diversified Real estate Infrastructure

9

Performance of listed funds – comparison to competitors

VinaCapital funds have performed at or above the peer average

VOF has outperformed peer benchmarks (capital markets funds, non-VinaCapital funds and diversified funds)

VNL has returned the best performance since 2009

10

2010Cumulative 2008-20112008 2009 YTD 2011

VinaCapitalVOF -47.1% 31.0% -1.6% -3.5% -34.2%

VNL 16.8% -9.2% 1.4% -2.8% 4.6%

VNI -36.9% 3.1% -13.4% -12.1% -50.5%

Dragon

VEIL -60.7% 12.1% -2.8% -18.0% -64.7%

VGF -61.4% 12.1% 7.6% -16.4% -60.2%

VRF -23.4% -30.9% -27.8% 3.3% -60.5%

VPF -6.0% 9.6% -6.8% -12.5% -16.0%

VEH -23.8% 44.0% -10.7% 3.4% 1.3%

SAMVPH -2.1% 16.4% -1.1% -30.0% -21.1%

PXP -70.9% 76.8% -18.1% -23.0% -67.5%

PXPVEEF -73.5% 82.6% -21.2% -23.1% -70.7%

Prudential -57.0% 47.0% 1.0% -11.1% -45.3%

Others

Mekong -67.7% 58.8% 3.5% -14.1% -54.4%

DWS -54.0% 19.6% -9.1% -12.0% -56.0%

Vietnam Holding -60.3% 57.6% -7.6% -18.7% -53.0%

VNM ETF N/A 1.8% 2.7% -21.8% -18.2%

FTSE Vietnam ETF -63.6% 39.7% -14.8% -26.4% -68.1%

VN Index -66.0% 56.8% -2.0% -13.1% -54.6%

Capital markets funds -59.8% 49.1% -7.0% -15.7% -52.8%

Non-VinaCapital funds -46.7% 33.8% -7.8% -14.3% -47.3%

Diversified funds -32.3% 14.1% -5.7% -10.2% -36.6%

All -41.9% 28.7% -7.1% -12.7% -43.2%

11

Vietnam Opportunity Fund Ltd (VOF)

Privately negotiated investments in private and listed companies, with a focus on:

- Sectors that support domestic growth

- SOE privatisations

- Selective real estate investments

Fund launch September 2003

NAV of fund (May 11) USD745m

NAV per share USD2.30

NAV gain since launch 136.8%

NAV 2010 change -1.0%

Market cap (May 11) USD510m

Investment mandate

Vietnam Opportunity Fund (VOF)

VOF overview

12

NAV and share price performance (31 May 2011)

• Share price discount 31.7% at end-May 2011, down from over 60% during Q1 2009.

• Investor sentiment low due to 2011 macro challenges, poor VN Index performance.

• Exits continue to demonstrate value of VOF’s holdings.

Top 5 holdings by asset class

Listed securities Stake (%) Sector

Vinamilk (VNM) 2.6% Consumer goods

Eximbank (EIB) 5.0% Financial services

Hoa Phat (HPG) 4.8% Industrial

Quoc Cuong (QCG) 11.4% Real estate

Kinh Do (KDC) 8.3% Consumer goods

OTC securities Stake (%) Sector

An Giang Plant 7.4% Agriculture

Prime Group 7.1% Materials

Nam Viet Oil 11.6% Energy

Thang Loi Land 6.4% Real estate

Lam Thao 7.1% Fertiliser

Private equity Stake (%) Sector

Hoan My Hospital 28.9% Healthcare

Cofico 25.1% Real estate

IBS 100.0% Materials

SSG Saigon Pearl 6.2% Real estate

Thang Loi Textile 100.0% Consumer goods

Real estate projects Stake (%) Sector

Sapphire 50.0% Hotel

Cambridge 21.0% Township

Jupiter 18.0% Township

Nile 15.5% Mixed use

Volta 30.0% Mixed use

VOF portfolio is highly diversified within each asset class sector (top holdings as of 31 May 2011).

13

Recent investments

HealthcareHoan My Medical Corporation is Vietnam’s top private healthcare provider. The private healthcare sector is growing at over 30 percent yearly, and Hoan My is the market leader with four operating hospitals and one under construction. VOF holds a 28.9 percent equity stake in Hoan My.

VOF remains focused on sectors that will benefit from Vietnam’s domestic economic growth, particularly the rise of an urban middle class with higher disposable income.

AgricultureThai Hoa Coffee JSC is Vietnam’s third largest coffee producer and the market leader in the high-value arabica sector. VOF holds a 10.0 percent equity stake in Thai Hoa Coffee.

MaterialsPrime Group JSC is Vietnam’s leading ceramics manufacturer. With the market for construction materials growing rapidly, Prime’s 2009 earnings of USD16 million are expected to grow at 30 percent yearly for at least the next three years. VOF invested USD15 million for a 7.0 percent equity stake.

Consumer goodsYen Viet JSC is Vietnam’s top producer and distributor of bird’s nest nutritional products, a high-cost health supplement with a huge growth market, particularly in China. VOF holds a 20.0 percent equity stake in Yen Viet.

14

Significant disposals in 2010 and 2011

Consumer goodsHanoi Liquor JSC (Halico) is Vietnam’s leading Vodka producer and distributor. VOF sold a 23.6 percent stake in Halico to Diageo plc for USD51.6 million, for a 5.3x return.

VOF remains Vietnam’s most active deal-maker, closing one of the largest-ever private equity deals (ex. infra and real estate) in January 2011.

Real estateResidential real estate sales and reservations (villas and condo units) totaling almost USD50 million at projects including Niagara and Danube in Danang, and Jupiter in HCM City. VOF has minority stakes in the largest portfolio of residential real estate developments in Vietnam.

Consumer goodsVinacafe is Vietnam’s leading instant coffee producer, focused on Robusta beans. Current investee Thai Hoa Coffee focuses on Arabica beans. VOF sold its stake in Vinacafe for an IRR of 45 percent over five years.

Upcoming divestments: Real estate, consumer goods, and food & beverage.

EducationInternational School of Ho Chi Minh City (ISHCMC) is the top international school in Ho Chi Minh City. VOF sold a majority of its equity stake to a leading international education group.

15

Trading highlights and asset class allocation

Investment

Highlights

Exit

Highlights

Top 5 SELLING USD’000

Halico Vodka producer 40,970

Vinacafe Coffee Producer 8,044

ITA IP developer 6,938

Quoc Cuong Property developer 6,231

Kinh Do F&B and Property 4,226

Others 24,844

Total SELL 91,253

Top 5 BUYING USD’000

Quoc Cuong RE developer 12,360

An Giang Plant protection 9,643

Kinh Do F&B and Property 4,497

Thai Hoa Coffee Plantation 3,385

Binh Dien Fertiliser 2,574

Others 25,062

Total BUY 57,521

VOF transactions record from June 2010 to April 2011 VOF portfolio by asset class (31 May 2011)

33.6%

35.2%

9.2%

7.2%1.5%

13.2%

0%

20%

40%

60%

80%

100%

by asset class (%)

Cash and other assets 13.2%

Bonds 1.5%

Private equity 7.2%

OTC stocks 9.2%

Listed equity 35.2%

Real estate 33.6%

16

Fund strategy and objectives – investment

What investment strategies will be deployed to enhance NAV?

Target USD80m for the next 6 months.Capital to be

deployed

Number of

DealsTarget 5 deals, of USD10-15m/deal.

Asset

Allocation

Listed equities target allocation: reduce to 30% (current 39%) over the next 12-24 months by divestment of matured local listed shares.

OTC equities target allocation: increase to 20% (current 8%). Three OTC stocks An Giang, Cau Tre, and Lam Thao will delay listing until Q2 2011 due to current market conditions. Expected additional investment into some positions.

Private equity target allocation: increase to 20% (current 6%). Current PE pipeline of over USD100m. Expect to close at least 3 deals with total investment size of USD25m over the next 3 months.

Real estate and hospitality target allocation: reduce to 20% and 5%, respectively (current: 25% and 10%) through divestments in the next 6-12 months.

Priority

Sectors

VOF portfolio – Target allocation

Current Target

30 Apr 2011 Next

6-12

Month

Next

12-24

Month

USDm % % %

Listed Equities 280 37 32 30

OTC Equities 61 8 15 20

Private Equity 47 6 15 20

Real Estate 171 23 20 20

Hospitality 80 11 8 5

Bond 11 2 2 2

Cash & Others* 103 14 8 3

TOTAL NAV 753 100 100 100

* In which, free cash: USD27m Agriculture Education Consumer

Oil & Gas Pharmaceutical Healthcare

17

Fund strategy and objectives – portfolio management

Reduce exposure to real estate (RE) sector.

Reduce exposure to mature listed OTC stocks (post-listing).

Recycle cash for new investment opportunities, particularly for M&A opportunities.

Enhance value of current portfolio holdings to generate more upside.

Take opportunities to trade listed blue-chips for short term gains and improve performance of capital markets component.

Strategy

Divesting from mature property/hospitality projects; seeking for co-investment opportunities for on-going RE projects; and sell mature RE listed shares.

Sell down mature listed stocks when market recovers, particularly mature RE and RE-related stocks.

Target large-cap companies with leading market share, strong earning growth, effective management and reasonable valuations (listed, OTC, PE, privatisations).

Discuss potential new share issues with good discounts, focusing on non-real estate companies and expansion projectss

Buying range: VN Index < 450 (PE 9.3x). Selling range: VNIndex > 500 (PE 10.3x).

18

19

Vietnam Infrastructure Ltd (VNI)

Investment in infrastructure assets including energy, transport, industrial parks, telecoms, environment and agribusiness infrastructure in:

- Vietnam (minimum 70%)

- Cambodia and Laos.

Fund launch July 2007

Return since launch -38.7% (31 May 11)

NAV of fund (May 11) USD 206.1m

NAV per share USD 0.514

NAV 2011 change -9.8%

Discount to NAV 40.1% (31 May 11)

Investment mandate

Vietnam Infrastructure Limited (VNI)

VNI introduction

20

VNI remains the only investment fund for infrastructure assets in Vietnam and surrounding countries.

The fund is expanding to new higher beta asset classes in 2011-12 (eg. agriculture-related opportunities).

NAV and share price performance (31 May 2011)

VNI invested capital and cash balance

21

66.5% of NAV (USD137.1m) is invested at May-11

13.9% of NAV (USD28.6m) is free cash.

Committed and under DD(USD)

Committed 2.83m

Agribusiness 1.5m

Industrial park 0.5m

Hydropower 0.48m

General Infrastructure 0.35m

Under due diligence 27.5m

BTS/IBS 25.0m

Transport/logistics 12.5m

VNI top portfolio holdings (as of 31 May 2011)

Type Sector % NAVInvestmentdate

Description Exit strategy

Long An SEA

PE Industrial park 9.3% Mar-08

780ha IP, port and service park area located 30km south of HCM City. Land infill and resettlement in process.

Seek exit via sale to IP operator.

Nam Viet Oil

OTC Energy 5.1% Oct-09First private sector refinery in Vietnam, with 5,000 bbl/d capacity.

Expected to list on HOSE in Q4 2011.

Ba ThienIP

PE Industrial Park 4.6% Jun-08

Located 50km north of Hanoi and 20km from Noi Bai International Airport. Expected to lease out to industrial tenants in light and clean industry and high-tech sector.

Singed up first anchor tenant with 20ha, second tenant under due diligence. Will exit through selling to an IP operator.

22




PVD Listed Energy 4.5% Jun-09

Industry leader in providing Mobile Offshore Drilling Units, drilling services, oil & gas equipment/tool rental services, supporting services in oil & gas production.

Sell equity stake when VN Index recovers.

VNC-55 PE Telecom 4.1% Oct-08JSC specialised in BTS building and leasing, based in Danang. VNI holds 40%.

Consolidate into wholly owned BTS portfolio company and exit through trade sale or listing.

VALC OTCTransport & Logistics

3.7% Dec-07

First aircraft leasing company in Vietnam; 79% owned by SOEs including Vietnam Airlines, BIDV, PetroVietnam, VinaShin & Phong Phu Corp.

Seek trade sale to foreign aircraft leasing companies or exit via local listing.

MIDC PE Telecom 3.7% Feb-08JV specialised in BTS building and leasing, based in Hanoi. VNI holds 49%.

Seek sale of equity stake.

23




Phu My OTCTransport & Logistics

3.4% Sep-08

Developer and owner of the Phu My BOT Bridge, the first cable-stayed bridge in Ho Chi Minh City, and the connecting roads.

Seek exit via trade sale.

CII ListedGeneral Infrastructure

3.2% Nov-09

An investment company with focus on infrastructure assets including water treatment, toll road, industrial parks.

Sell equity stakewhen VN Index recovers.

MIS PE Telecom 2.6% Mar-08JSC specialised in BTS building and leasing, based in Hanoi. VNI holds 75%.

Consolidate into wholly owned BTS portfolio company and exit through trade sale or listing.

24

VNI pipeline (next six months)

BTS portfolio

• Additional acquisitions of new BTS companies and In-building system (IBS) companies in Vietnam to fold into a Singapore holding company.

• Potential exit to a strategic partner.

Deep sea bulk cargo port/logistics project

• Negotiating with one of the top four agricultural commodity traders in the world.

25

VNI strategy for 2011-2012

Beginning 2011, we revisited our strategy and shifted focus toward pre-listing assets, and agriculture and real estate-related infrastructure projects:

Aligns our strategy closer with VinaCapital’s core strengths in pre-IPO and RE sectors.

Pre-listing assets would provide a quicker value appreciation.

Infra-related agribusiness is a high growth sector, in high demand.

We have also adopted an integrated approach:

Combining CM and PE into an integrated portfolio approach.

Strategy is to improve sector/asset class coverage and allocation of funds to optimise liquidity.

Involves two main functions: Portfolio Management and Sector Coverage.

Deploy rest of the cash to OTC/PIPE/Pre-IPO/distressed assets for quicker value appreciation.

Aggressively rebalancing listed portfolio to take advantage of current low market cycle.

Broaden scope to include infra-related agribusiness (plantations, logistics, bulk cargo ports).

Accelerate development of existing industrial parks.

Execute good exits for at least 3 existing assets.

Resolve issues at three troubled assets: MIDC, Vietstar, Phu My Bridge.

Strategic

shift

Action Plan

26

27

VinaLand Limited (VNL)

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Sep-08

Mar-09

Sep-09

Mar-10

Sep-10

Mar-11

1.37 NAV

VNL overview

Background

• Inception: March 2006

• USD687m NAV (31 Mar 11)

• USD1.37 NAV per share

• USD1.61 high watermark

Investing highlights

• 37 assets in the portfolio.

• Residential sales of USD21 million during Q1 2011 (2010: USD73.8 million).

Performance highlights

• 41.7% increase in NAV/share since inception.2.3% 2010

(-9.2%) 2009 (due to unrealised writedowns)

17.1% 2008

33.8% 2007

0.84 SP

NAV vs share price performance (31 May 11)

• Share price discount 38.7% at end-May 2011, down from over 70% during March 2009.

• Investor sentiment has not recovered from 2008 low.

• Exits continue to demonstrate validity of VNL’s NAV.

• Only 10% debt across entire portfolio.

28

VNL assets exited at significant premium to NAV

Quoc Te Oasis Hilton Hanoi Opera

Central Garden Mandarin Garden

Cam Ranh Resort

Hanoi Golden Westlake

Sale Price NAV at Exit

+41% +58%

+127%

+72%

Divestment history (to June 2010)

Total and partial realisations: 7

Acquisition costs (USD’000) 115,308

Full realisations 126,420

Partial realisations 77,473

Total realised 203,893

Value created per share (i.e. profits for VNL)

USD0.18

29

Exit track record (1)

OpalInvestment date: July 2006

Ownership: VNL75%/VOF25% of 70%

VNL investment: USD33.1 million

IRR after tax: 22%

Investment rationale:

• Semi-distressed asset

• Opportunity to renegotiate Hilton management agreement and improve operations, cut costs

Exit rationale:

• Well-run hotel, requiring cap ex of USD15m.

• Received high unsolicited offers; sold at 27% premium to the international offers received.

MagnoliaInvestment date: August 2007

Ownership: VNL 100%


IRR after tax: 53%


• Land swap of a small city-centre site for a larger plot in the future second CBD of Hanoi.

Exit rationale:

• Achieved master planning approval and on-sold to a Vietnamese developer at a high valuation.

• Completed in FY2011.

30


HeatherInvestment date: March 2007

Ownership: VNL 100% for 189 apartments


IRR after tax: 48%


• Deep discount from distressed developer

• Added value through product development and marketing

• Strong alignment of interest through profit sharing structure

Exit rationale:

• Retail sales exit, completed sales.

CamelliaInvestment date: June 2006

Ownership: VNL 100% of 56 apartments


IRR after tax: 15%


• Discounted purchase of completed stock from distressed developer.

Exit rationale:

• Retail sales in improved market during 2008-09.

31


OrchidInvestment date: Q3 2008

Ownership: VNL 73.26%


IRR after tax: 22%


• District 7, main arterial road leading to Saigon South.

• Good retail exposure.

Exit rationale:

• JV partner developing adjoining land was discounting price, affected our feasibility study.

• Stalling on application process.

• Exit in 2009 with Investment Licence received.

ChromeInvestment date: Q3 2008

Ownership: VNL 100%


IRR after tax: 10%


• Private beach concept in new resort area, close to new airport.

Exit rationale:

• Project too small for VNL mandate.

• Exited in Q2 2011.

32


LavenderInvestment date: April 2007

Ownership: VNL 100%


IRR after tax: 27%


• District 9 residential project near infrastructure roll-out

Exit rationale:

• Access issues surfaced after acquisition.

• Pending supply surplus in the vicinity.

• Approached by VOF investee company wanting vertical integration of their business in HCM City

Pending exits:

• Sale of partial equity stake in CBD mixed-use development, HCM City.

• Sale of full stake in office/hotel development, HCM City.

• Operating hotel exits in early stages of negotiation.

33

27.0% Central provinces

65.2% HCM City region

7.8% Hanoi region

Office3 assets1 operating asset

Residential6 assets1 project under development

Mixed-use/retail8 assets1 project under development

Townships (large scale)7 assets3 projects under development

Hospitality13 assets9 operating assets

Portfolio breakdown

Portfolio by sector (Mar 2011) Geographic breakdown

34

38.6%

17.2%

5.0%

17.3%

21.9%

0%

20%

40%

60%

80%

100%

by sector (%)

Township 38.6%

Residential 17.2%

Office/retail 5%

Mixed use 17.3%

Hospitality 21.9%

NAV movement, Q4-10 to Q1-11

35

686,969 688,157

600000

620000

640000

660000

680000

700000

720000

740000

Opening Closing

Q1

2011

VNL net asset value movement, Q4 2010 - Q1 2011

Closing Management fees

Upward valuations Downward valuations

Tax provisions Movement in working capital

Opening

Management fees

Upward valuations

Downward valuations

Tax provisions Working capital

Note: “Opening figure” is original unaudited NAV. “Closing figure” incorporates revisions as a result of the interim review performed by Grant Thornton.

NAV NAV

Top ten investments by NAV

No Investment Location in Vietnam

Development type

Site area (ha)

NAV% Current NAV

(USDm)

Value increasesince

acquisition (%)

Current status

1 Cambridge South Mixed-use 30 11% 83m 84% Planning underway

2 Niagara Centre Mixed-use 260 10% 73m 159% Construction and sales underway

3 Jupiter South Township 200 9% 67m 23% Construction and sales underway

4 Nile South Mixed-use 3.1 6% 44m 71% Planning underway

5 Mekong South Mixed-use 1.4 6% 44m 194% Land compensation underway

6 Tiber North Mixed-use 4.0 5% 35m 35% Construction underway

7 Venus Centre Township 158 5% 35m 13% Construction and sales underway

8 Aquarius South Township 250 5% 34m -24% Planning underway

9 Mars South Residential 32 4% 27m 0% Planning underway

10 Leo South Township 126 3% 23m 130% Planning underway

Total NAV of top 10 investments: USD466 million (approx. 62% of total portfolio NAV)*

(*) Note:The valuation of each project is determined following the VNL valuation policy. Pertinent details of this policy include:

• Assets are held at cost until they receive an investment licence or certificate of business.• Assets with an investment licence or a certificate of business are assigned a fair value that is

determined by procuring two valuations from independent property valuation consultants.• All assets in the portfolio with an investment licence or certificate of business are revalued at

least once yearly.• All assets are subject to desktop reviews or independent appraisals if there is evidence of

impairment.

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The primary factors in determining the value of each project include total investment costs, with adjustments for

1) Shareholder loans (if any)2) Gain/(loss) on acquisition cost3) Acquisition-related costs written off (IFRS 3)4) Fair value adjustment5) Deferred tax asset/liability6) Working capital at project company

Projects carried at cost (31 Mar 2011)

Total NAV of projects retained at cost (pending master planning and investment licence approval): USD68 million

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No. Investment Location Type Site Area

1 Mars South Residential 33ha

2 Gemini Centre Township 1,538ha

3 Chrome South Hospitality 10ha

4 Lily South Residential 20ha

5 Libra South Township 1,935ha

6 Jasmine South Residential 5ha

7 Jade South Hospitality 238ha

Cambridge Township, HCM City

Project summary:

• In January 2008, the HCM City People Committee granted the site to the project company. The land was fully compensated and cleared. The project will build and transfer 4,200 resettlement apartment units in Binh Khanh site at investment cost.

• Investment Licence submitted, pending approval.

Project background

Type Mixed-use residential and retail.

Location District 2, Ho Chi Minh City.

Area Site Area: 30ha. Estimated GFA: 570,000sq.m.

Legal Status • Cleared and fully compensated site.

• Investment Licence application was submitted in Dec 2010.

• Masterplan submitted and awaiting approval.

Project update

• 1:500 Masterplan awaiting approval prior to securing financing for development of the first phase of residential development. The second phase being the retail component.

• Excellent location in District 2, HCM City, with major infrastructure now under construction including freeway to District 1 (approx. 10-15 min by car).

Mid-range housing project developed in conjunction with municipal government.

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Niagara Mixed-use (resort)

Project summary:

• Ground breaking in Jan 2008.

• The first 18-hole golf course now fully operational (opened in April 2010).

• Beach Clubhouse opened in Aug 2011; golf clubhouse opened in Mar 2011.

• Phase 1-2 villas handed over to owners. Villa rental pool is operational.

• Construction on new villa phases underway. Display villas open.

• High-end branded Norman Estate villas launched sales on 5 June 2011.

• The Cham Condominium tower block A superstructure completed.

Development update

Type Integrated resort with golf courses, hotel, retail centre including recreational amenities, resort residences (villas and condominiums) and supporting facilities.

Location Danang, Central Vietnam (10km from international airport).

Area Site area: 260ha. Phases 1-6: estimated GFA of 250,000sq.m.

Legal Status • Cleared site, under development. Investment Licence received Dec 2008.• Construction permit received for villa phases 1-3 and condominium block.• 1:500 revised Masterplan approved

Investment Strategy

Integrated residential development with resort facility situated on the beach with panoramic views of surrounding mountains, pristine beaches and the golf course.

Sales update

• Phases 1-3 villas, totaling 115 villas and beach houses, have been launched with 92% sold to date.

• Condominium tower has 41 units in first block, 40% sold to date, official launch in Apr 2011.

• First seven (of 33) branded luxury villas now pre-sold.

Vietnam’s first truly integrated, world-class resort community.

Features a golf course listed as one of top 15 new courses in the world by golf.com.

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Jupiter Township

Project summary:

• Construction and sales of Zone 5 townhouses underway. Total of 332 villas, ground floor concrete slabs 60% complete.

• Show village opened in Mar 2011.

Development update

Type Township (integrated residential).

Location Dong Nai Province, near HCM City.

Area Site area: 200ha. Approved GFA: 1,758,975sq.m.

Legal Status • Investment Licence received in May 2007

• Land Use Rights issued for all zones, except for Zone 8 and CBD.

• 1:500 Master plan and construction permit for Zone 5 received.

Investment Strategy

Development of six zones over period of 5-7 years and early partial divestment to co-investor.

Sales update

• Released 232 out of 332 villas in soft launch, 123 villas sold to date.

• Zone 5 officially launched in early Apr 2011.

• Market has slowed, therefore implemented land lot sale strategy on Phase 4 lots only.

ZONE 5

Unique island township in fast-growing suburban region.

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Nile Mixed-use

Project summary:

• Relocation of the factory in progress.

• Site clearance underway.

• Expected key milestones: Construction (residential) – Q3 2011; Sales launch –Q4 2011; Completion – 2015.

Development update

Type Mixed-use residential, retail, office and hotel.

Location District 10, HCM City.

Area Site area: 3.1ha. Estimated GFA: 278,748sq.m

Total units Over 1,200 apartments.

Legal Status • Factory to relocate during 2011.

• Investment Licence received Oct 2008.

• 1:500 Master plan approved Oct 2010.

Investment Strategy

Commence residential apartments first and seek co-investor and major tenants for retail/office space.

A landmark development in central HCM City.

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Project summary:

Tiber Mixed-use

Landmark development in strategic new urban centre in western Hanoi

Type Mixed-use residential, retail, hotel and office.

Location Hanoi

Area 40,000sq.m. Estimated GFA: 351,140sq.m.

Legal Status • Investment Licence received May 2008 and revised IL received Feb 2010.

• Planning Approval No.763/QHKT-P1 dated 17 Mar 2010 from Hanoi Department of Planning and architecture

InvestmentStrategy

Seeking co-investment to develop the office and retail.

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Development update

• Ground breaking in Dec 2010.

• Commencement of structural piling in Q3 2011.

• Commencement of basement construction in Q4 2012.

Venus Township

Project summary:

• Infrastructure design completed.

• Display village under construction (completion due Sept 2011).

• Site being filled and leveled.

• Five-unit display village to open in September 2011.

Development update

Type Township.

Location Nha Trang City, Khanh Hoa Province.

Area Site Area: 158ha. Estimated GFA: 962,982sq.m.

Legal Status • Investment approval in 2008.• Investment Licence and construction permit obtained.

Investment Strategy

Development of infrastructure and residential components to commence first. Seeking partial divestment to co-investor for remaining phases.

Sales update

• Soft sales launches in Hanoi and HCM City in Dec 2010.

• To date, 587 lots reserved out of 638 released.

• Official launch planned for Sept 2011 under VinaLiving brand.

The first modern township in Nha Trang – a fast-growing coastal resort city.

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We remain bullish on this exciting market

Vietnam’s urban landscape is low-rise and over-crowded.

86m population in 201026m urban dwellers

100m population in 202045m urban dwellers

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Ho Chi Minh City Hanoi Danang Nha Trang Phnom Penh Singapore

VinaCapital17th Floor, Sun Wah Tower115 Nguyen Hue, District 1, Ho Chi Minh City, Vietnam

P: (84 8) 3821 9930 F: (84 8) 3821 9931

Email: [email protected]

Website: www.vinacapital.com

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