MIRA INFORM REPORT

Report Date :

14.06.2007

IDENTIFICATION DETAILS

Name :	UNILEVER VIETNAM JOINT-VENTURE CO., LTD

Registered Office :	Central Plaza, No.17 Le Duan Street, Ben Nghe Ward, District 1, Hochiminh City

Country :	Vietnam

Financials (as on) :	31.12.2005

Date of Incorporation :	1995

Legal Form :	Joint – Venture Company

Line of Business :	Manufacturing detergents, home and personal care products. Producing and trading in cosmetics; directly importing-exporting cosmetic products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM

Current English Name

UNILEVER VIETNAM JOINT-VENTURE CO., LTD

Current Vietnamese name

CONG TY TNHH LIEN DOANH UNILEVER VIETNAM

Current Trade name

UNILEVER VIETNAM

Former English Name

LEVER VIETNAM JOINT-VENTURE CO., LTD

Former Vietnamese name

CONG TY TNHH LIEN DOANH LEVER VIETNAM

Former Trade name

LEVER VIETNAM

Foundation

1995

Type of business

Joint – Venture Company

Current investment license

No. 1130/GPDC11

Date of Issuance

May 7^th 2004

Place of Issuance

Ministry of Planning and Investment

Former Investment license

No. 1130/GP

Date of Issuance

February 10^th, 1995

Place of Issuance

Ministry of Planning and Investment

Date of operation

January 01^st, 1996

Current invested capital

64,990,470 USD

Former invested capital

56,280,470 USD

Legal capital

38,110,000 USD

Investment duration

40 years

Tax code No.

0300762150

Total employees

2,500 employees

Qualification

Fairly Good

Note: Name of the subject is officially changed into UNILEVER VIETNAM JOINT VENTURE CO., LTD since 13^thMarch 2007.

ADDRESSES

Head Office

Address

Central Plaza, No.17 Le Duan Street, Ben Nghe Ward, District 1

City - Country

Hochiminh City - Vietnam

Tel

(84-8) 823 6607 - 8246999

Fax

(84-8) 823 6603 – 8236712 - 823 6606

nguyen-thi.hong@unilever.com
nguyen-van.anh@unilever.com

Website

www.unilevervn.com

Thu Duc Plant

Address

No. 672-673, Kien Thiet Building, Dist 9, Hochiminh City, Vietnam

Tel

(84-8) 896 1945

Fax

(84-8) 896 1943

Cu Chi Plant

Address

Tay Bac Cu Chi Industrial Zone, Tan An Hoi Village, Cu Chi District, Hochiminh City, Vietnam

Tel

(84-8) 8924024

Fax

(84-8) 8924040

Binh Duong Branch:

Address

Block J, song than I Industrial Park, Di An District, Binh Duong Province

Tel

(84-650) 790960

Hanoi Branch

Address

No. 233, Nguyen Trai Street, Thanh Xuan District

City – Country

Hanoi City – Vietnam

Tel

(84-4) 858 3383

Fax

(84-4) 858 3005

Mekong Delta Branch

Address

No. 54, Ly Tu Trong Street, Can Tho City

Tel

(84-71) 830 574

Fax

(84-71) 830 540

Da Nang Branch

Address

No. 27, Phan Dang Luu Street, Hai Chau District, Da Nang City

Tel

(84-511) 640 545

Fax

(84-511) 640 608

Bac Ninh Branch

Address

Tan Hong - Hoan Son Industrial Zone, Bat Lu Hamlet, Hoan Son Commune, Tien Son District

City – Country

Bac Ninh Province – Vietnam

Tel

(84-241) 714238

Fax

(84-241) 714245

Director

Mr. Le Khac Coi

Cell phone

++84 903 451 588

DIRECTORS

1. NAME

Mr. MARIJN VAN TIGGELEN

Position

Current General Director

Qualification

Management

Resident

Hochiminh City

Nationality

Dutch

Note: Mr. Marijn Van Tiggelen has been appointed to be the current general director since May 2005. He replaced Mr. Michel P. Dallemagne, who was appointed Senior Vice President, Hair, Unilever in Asia.

NAME

Mr. MICHEL PIERRE DALLEMAGNE

Position

Former General Director

Date of birth

1956

Qualification

Management

Resident

Hochiminh City

Nationality

Belgian

2. NAME

Mr. NGUYEN HUNG VIET

Position

Deputy General Director

Qualification

Bachelor of Economics

Nationality

Vietnamese

3. NAME

Mr. GREG SULLIVAN,

Position

Vice chairman of supply chain for Unilever Vietnam

Qualification

Bachelor of Economics

Nationality

Dutch

4. NAME

Mr. NGUYEN ANH NGUYEN

Position

Chief Information Office

Qualification

Engineer

Nationality

Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in the following activities:

· Manufacturing detergents, home and personal care products, subject’s key brands such as OMO, LUX, LIFEBUOY, DOVE, PONDS, VASELINE, HAZELINE, CLEAR, REJOY, SUNSILK, …

· Producing and trading in cosmetics; directly importing-exporting cosmetic products

IMPORT & EXPORT ACTIVITIES

IMPORT: The subject imports materials and chemicals from Korea, EU, Singapore, United States of America and from its factory in Malaysia.

EXPORT: Subject exports about 10 percent of its products to Thailand, Korea and other members…

BANKERS

1. CITIBANK Hochiminh City

Address

No.115 Nguyen Hue Str, Ben Nghe Ward Dist 1, Hochiminh City - Vietnam

Tel

(84-8) 8242118

Fax No

(84-8) 8242114

Account No.

300.158.00

2. CITIBANK HANOI

Address

No. 17, Ngo Quyen Street, Hanoi City, Vietnam

Tel

(84-4) 825 1950

Fax No

(84-4) 824 3960

Subject’s Account No.

300158021

3. HONGKONG SHANGHAI BANKING CORP (SHBC)

Address

No. 235, Dong Khoi Str, The Metropolitan Building, Dist 1, Hochiminh City, Vietnam

Tel

(84-8) 829 2288

Fax

(84-8) 823 0530

Telex

813131 HSBCSG VT

SHAREHOLDERS

The subject is a Joint Venture company. Following is its shareholders:

FOREIGN PARTNER: 66.67 percent

Name

Maatschappu Voor International Beleggingen B.V

Nationality

Weena 455, 3013 Al, Rotterdam, Holland

66.67 percent

VIETNAMESE PARTNER: 33.33 percent

1. Name

HANOI SOAP COMPANY ( State owned enterprise)

Trade Name

VISO VIETNAM

Address

No. 233, Km No.7, Nguyen Trai Street, Hanoi City, Vietnam

Tel

(84-4) 858 4553

Fax

(84-4) 858 4486

10.37 percent

2. Name

VIETNAM NATIONAL CHEMICAL CORPORATION

Trade Name

VINACHEM

Address

No. 1A, Trang Tien Street, Hanoi City, Vietnam

22.96 percent

PAYMENT HISTORY AND EXPERIENCES

Trade Morality

Good

Liquidity

Good

Previous Payments

Prompt

Current Payment Status

Prompt

Past Financial Situation

Development

Current Financial Situation

Good

Payment Situation

Prompt

Legal Action

No record

Bankruptcy

No record

Sales methods

Sales to its agents and directly to clients

Mode of Payment

Direct payment or through its corresponding bank

FINANCIAL DATA

BALANCE SHEET

Unit: 1 VND

Balance sheet date

31/12/2005

31/12/2004

Number of weeks

ASSETS

A -

CURRENT ASSETS

1,336,581,000,000

1,063,041,000,000

Cash and cash equivalents

533,886,000,000

528,809,000,000

Cash

533,886,000,000

528,809,000,000

Cash equivalents

II.

Short-term financial investments

Short-term investments

Provisions for devaluation of short-term investment stocks

III.

Accounts receivables

289,993,000,000

137,834,000,000

Receivable from customers

140,843,000,000

62,010,000,000

Prepayment to suppliers

Inter- company receivables

65,648,000,000

36,243,000,000

Progress receipts due from construction contract

Other receivables

88,130,000,000

43,373,000,000

Provisions for bad debts

-4,628,000,000

-3,792,000,000

IV.

Inventories

446,548,000,000

361,104,000,000

Raw materials, spare parts,

468,118,000,000

388,262,000,000

Provisions for devaluation of inventories

-21,570,000,000

-27,158,000,000

Other current assets

66,154,000,000

35,294,000,000

Short-term prepaid expenses

66,154,000,000

27,191,000,000

Taxes receivables

8,103,000,000

Other current assets

B -

LONG TERM ASSETS

403,741,000,000

401,122,000,000

Long term accounts receivable

Long term accounts receivable from customers

Long term inter- company receivable

Other long term accounts receivables

Provisions for bad debts

II.

Fixed assets

374,431,000,000

375,182,000,000

Tangible fixed assets

297,808,000,000

245,581,000,000

Historical costs

455,483,000,000

437,645,000,000

Accumulated depreciation

157,675,000,000

192,064,000,000

Finance lease assets

Historical costs

Accumulated depreciation

Intangible assets

5,716,000,000

7,476,000,000

Historical costs

14,758,000,000

28,906,000,000

Accumulated depreciation

9,042,000,000

21,430,000,000

Construction in progress

70,907,000,000

122,125,000,000

III.

Investment property

Historical costs

Accumulated depreciation

IV.

Long term financial investments

746,000,000

Investments subsidiary company

Investments in business concerns and joint ventures

Other long term investments

746,000,000

Provisions for devaluation of long-term investments stock

Other long term assets

28,564,000,000

25,194,000,000

Long term prepaid expenses

11,751,000,000

11,161,000,000

Deferred income tax assets

16,813,000,000

14,033,000,000

Other long term assets

TOTAL ASSETS

1,740,322,000,000

1,464,163,000,000

LIABILITIES

A -

LIABILITIES

1,233,538,000,000

879,367,000,000

Short term liabilities

1,137,485,000,000

789,572,000,000

Short term debts and borrowings

Payable to suppliers

382,668,000,000

229,783,000,000

Advances from customers

108,294,000,000

93,602,000,000

Taxes and other accounts payable to the State Budget

500,945,000,000

303,448,000,000

Payable to employees

124,687,000,000

162,165,000,000

Accrued expenses

Payable to inter- company

Progress payments due to construction contract

Other payables

20,891,000,000

574,000,000

II.

Long term liabilities

96,053,000,000

89,795,000,000

Long term account payable to suppliers

Long term inter-company payables

Other long term payables

96,053,000,000

89,795,000,000

Long term debts and borrowings

Deferred income tax liabilities

B -

OWNER’S EQUITY

506,784,000,000

584,796,000,000

Owner’s equity

506,784,000,000

584,796,000,000

Owners' Investment capital

420,440,000,000

Share premiums

Treasury shares

Differences upon asset revaluation

Foreign exchange differences

Business promotion fund

125,600,000,000

Financial reserved fund

Other funds

Undistributed earnings

-39,256,000,000

38,756,000,000

II.

Other sources and funds

Bonus and welfare funds

Sources of expenditure

Funds used to acquire fixed assets

TOTAL LIABLITIES AND OWNER’S EQUITY

1,740,322,000,000

1,464,163,000,000

PROFIT & LOSE ACCOUNT (INCOME STATEMENT)

Description

F/Y 2005

F/Y 2004

Revenue from sales of goods and rendering of services

5,769,134,000,000

N/A

Deductible items

474,033,000,000

Net revenue from sales of goods and rendering of services

5,295,101,000,000

Costs of goods sold

3,370,767,000,000

Gross profit

1,924,334,000,000

Income from financial activities

26,987,000,000

Expenses from financial activities

5,560,000,000

- In which: Loan Interest expenses

Selling expenses

1,263,141,000,000

General & administration expenses

298,581,000,000

10.

Net operating profit

384,039,000,000

11.

Other incomes

12.

Other expenses

102,044,000,000

13.

Other profits

-102,044,000,000

14.

Profit (loss) before tax

281,995,000,000

15.

Income tax

129,303,000,000

16.

Profit (loss) after tax

152,692,000,000

FINANCIAL FACTORS

Description

FY 2005

FY 2004

Current Liquidity Ratio

1.18

1.35

Quick Liquidity Ratio

0.78

0.89

Inventory Circle

8.35

N/A

Average Receive Period

19.99

Utilizing Asset Performance

3.04

Liability / Total Asset (%)

70.88

60.00

Liability / Owner's Equity (%)

243.41

150.37

Income Before Tax / Total Asset (%) ROA

16.20

N/A

Income Before Tax / Owner's Equity (%) ROE

55.64

Income Before Tax / Total Revenue (%) NPM

4.89

Gross Profit / Total Revenue (%) GPM

33.36

INTERPRETATION

Unilever is one of the largest consumer products companies in the world. It mainly manufactures detergents, home & personal care products and foodstuff including some of the world’s top brands such as Lipton, Knorr, Cornetto, Paddle Pop, Omo, Lux, Lifebuoy, Dove, Close-Up, Sunsilk, Clear, Pond’s, Vim, Vaseline, Hazeline, …etc.

Unilever started its business in Vietnam since 1995. The subject has many manufacturing sites in Hanoi, Cu Chi, Thu Duc and Bien Hoa Industrial Zone.

The subject is a big joint venture of Unilever in Vietnam. (There are 02 member companies in Vietnam including Unilever Vietnam Joint Venture Co., Ltd, and Elida P/S and Unilever Best Foods Vietnam).

In 2005, the subject was awarded certificate by Vietnam economic times for its excellent business performance and significant contribution to the development of foreign invested sector in Vietnam for four consecutive years 2001-2004.

The subject’s products was chosen “the Vietnam high quality products” and award for raising the standard of environment. Unilever Vietnam is the first of seven companies in Vietnam which was awarded the “environmental standard” by Vietnam Ministry Of Science, Technology & Environment.

The premises and facilities of the subject are good. The subject takes many advantages such as the supports from its group, human resource and convenient location for production.

The management capability of the subject is quite good. The director is known by his reputed sentence: “Think Vietnamese”. Its production operations are busy now.

The position in the industry and in the market of the subject is good. Its market share is stable due to its high quality products and business strategy. The competitive capability of the subject is good. Annual revenue of the subject is large and the profitability is remarkable.

As part of its business strategy, Unilever Vietnam has natured a close and mutually beneficial cooperation relationship with local small and medium enterprises, and committed to high product quality, as well as to world class safety and environmental standards.

Recently, Vietnam Unilever Company officially opened the distribution centre, with US $12 billion capital for construction, located in Vietnam-Singapore industrial zone of Binh Duong province.

Although being one of the strongest producers in this business field in Vietnam, the subject still faces with the strong development of other competitors as well as the hard competitive market. Its financial status is strong. It has capacity to meet financial commitments. No caution needed for the big business transaction.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions