MIRA INFORM REPORT

Report Date :

06.11.2008

IDENTIFICATION DETAILS

Name :	PEPSICO BEVERAGES INTERNATIONAL- VIETNAM COMPANY (PEPSI-I.B.C)
Registered Office :	Floor 5^th, Sheraton Sai Gon Hotel and Towers, No.88, Dong Khoi Str, Dist 1, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2004
Year of Establishment :	1991
Legal Form :	100% Foreign Invested Company
Line of Business :	Specializing in Production of Beverages

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	PEPSICO BEVERAGES INTERNATIONAL- VIETNAM COMPANY (PEPSI-I.B.C)
Vietnamese Name	CONG TY NUOC GIAI KHAT QUOC TE PEPSICO VIETNAM
Abbreviated Name	PEPSICO INTERNATIONAL-VIETNAM CO
Brand Name	PEPSI, MIRINDA, TWISTER, AQUAFINA, 7-UP, STING, LIPTON, POCA, LIPTON ICE TEA
Founded	1991
Start operation	1994
Type of Business	100% Foreign Invested Company
Original Investment License	No.291/GP
Issued on	December 24^th, 1991
Issued by	Ministry of Planning and Investment
Adjusted Investment License	No.291A/GP
Latest adjustment on	May 10^th 2007
Issued by	Planning and Investment Department of Hochiminh City
Current Investment capital	180,000,000 USD
Legal capital	90,000,000 USD
Investment duration	20 years
Tax Code	0300816663
Total Employees	1,000 employees
ADDRESSES
Head office
Address	Floor 5^th, Sheraton Sai Gon Hotel and Towers, No.88, Dong Khoi Str, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 3821 9437 / 3821 9438
Fax	(84-8) 3821 9436
Hanoi Branch
Address		No. 233B, Nguyen Trai Str, Thanh Xuan Dist, Hanoi City
Country		Vietnam
Tel		(84-4) 3558 9711, 35530535, 35530534, 35530523
Fax		(84-4) 33558 9591
Quang Nam Branch
Address		National road No. 1A, Dien Thang Commune, Dien Ban Dist, Quang Nam Province
Country		Vietnam
Tel		(84-510) 3869 804
Fax		(84-510) 3869 530
Can Tho Branch
Address		Tra Noc Industrial Area, Truc Chinh St., Lot 8, Binh Thuy Dist., Can Tho City
Country		Vietnam
Tel		(84-71) 3842 227, 3842226, 3842228, 3842229, 3842602
Fax		(84-71) 3842 225
Binh Duong Branch
Address		No. 3-4-5 , Block CN2, Street 02^nd, Song Than III IP, Di An District, Binh Duong Province
Country		Vietnam
Tel		(84-650) 3839776 , 3860117
DIRECTORS
1. NAME		Mr. PHAM PHU NGOC TRAI
Position		General Director / Chairman
I.D No		B0380365
Qualification		Management
Current Resident		149B, Truong Dinh Str, Ward 9, Dist 3, Hochiminh City
Nationality		Vietnamese
2. NAME		Mr. MUNDLAY SHEKHAL
Position		Managing Director
Qualification		Management
Nationality		Indian
3. NAME		Mr. PHAM TRONG BAO CHAU
Position		Marketing Manager
Qualification		Bachelor
Nationality		Vietnamese
4. NAME		Mr. MAI QUANG VINH
Position		Sales manager
Qualification		Management
Nationality		Vietnamese
5. NAME		Mr. HO TRONG KHAI
Position		Sales manager of Mekong Delta Area
Qualification		Management
Nationality		Vietnamese
6. NAME		Mr. TRAN TRONG GIA VINH
Position		HR director
Qualification		Management
Nationality		Vietnamese
7. NAME		Mr. HUYNH BUU SON
Position		Public Relation Manager
Qualification		Economic Expert
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject is specializing in production of beverages with brand names of Pepsi, 7-up, Sting, Aquafina, Twister, Mirinda, Lipton, and snack with brand Poca,
IMPORT & EXPORT ACTIVITIES
IMPORT: The principal materials source of the subject is imported from its parent company in USA and Holland.
EXPORT: Products of the subject have been exported to some regional countries like Cambodia and Philippines.
BANKERS
1. CITI BANK – BRANCH IN HOCHIMINH CITY
Address			No. 115, Nguyen Hue Str, Ben Nghe Ward, Dist 1, Hochiminh City, Vietnam
Tel			(84-8) 8242118
Fax			(84-8) 8242267
Swift			CITIVNVXHCM
2. HONGKONG SHANGHAI BANK CORPORATION (HSBC)
Address				No.235 Dong Khoi Str, Dist 1. Hochiminh City, Vietnam
Tel				(84-8) 829 2288
Fax				(84-8) 823 0530
Swift				HSBCVNVX
SHAREHOLDERS
This is a 100% Foreign Invested company. INTERNATIONAL BEVERAGES COMPANY (IBC)- Holland is registered as its investor. But in fact, the subject’s actual parent company is as follows:
Name			PEPSICO, INC
Address			700, Anderson Hill Road, Purchase, NY 10577
Country			USA
Tel			(866) 626-0633
Website			www.pepsi.com
Shares			100 percent

FINANCIAL DATA
Highlight of latest financial statements
Unit: 1,000,000 VND
Description		2007	2006		2005
Current assets & Short term Investment		229,013	250,901		319,591
Fixed assets and long-term investment		705,605	530,545		312,271
Total Assets		934,618	781,446		631,862
Payable		1,032,939	793,851		576,454
Owner’s Equity		-98,321	-12,405		55,408
Total Liability and Equity		934,618	781,446		631,862
Total Revenue		2,057,774	1,579,737		1,197,846
Deduction items		326,758	222,163		199,436
Net Revenue		1,731,016	1,357,574		998,410
Net Income From business Activities		-25,865	-36,652		-20,042
Net Income From Financial Operation		0	0		0
Irregular Profit		-1,762	5,053		0
Total pre-tax Profit		-27,627	-31,599		-20,042
Completed Financial Statement of 2004,2003
Unit: 1,000,000 VND
BALANCE SHEET
Balance sheet date	31/12/2004			31/12/2003
Number of weeks	52			52
ASSETS
A. Current assets & Short term Investment	125,109			155,385
I. Cash and cash equivalents	8,115			9,371
II. Short term investment	0			0
1. Short-term securities investment	0			0
2. Other short-term investment	0			0
3. Provision for devaluation of short-term investment	0			0
III. Receivables	44,928			37,924
1. Receivables from customers	34,473			34,089
2. Prepaid for providers	1,990			5,020
3. Value-added tax deducted	8,147			288
4. Internal receivables	0			0
5. Other receivables	1,666			580
6. Provision for bad receivables	-1,348			-2,053
IV. Inventory	69,423			45,296
1. Purchased goods in transit	13,448			8,393
2. Inventory raw materials	32,900			28,232
3. Inventory appliance	0			0
4. Cost of production and business in process	0			0
5. Inventory finished products	23,312			0
6. Inventory cargoes	0			8,701
7. Entrusted goods for sale	0			0
8. Provision for devaluation of stocks	-237			-30
V. Other current assets	2,643			62,794
1. Advances	667			60,922
2. Prepaid expenses	423			392
3. Pending expenses for transfer	0			0
4. Pending assets	0			0
5. Hypothecation, collateral and short run collateral	1,553			1,480
VI. Administrative	0			0
1. Administrative expenses for previous year	0			0
2. Administrative expenses for current year	0			0
B. Fixed assets & Long term investment:	352,239			238,499
I. Fixed assets	206,508			114,613
1. Tangible fixed assets	206,508			114,613
+ Original cost	350,819			284,999
+ Accumulated depreciation value	-144,311			-170,386
2. Fixed assets of financing credit	0			0
+ Original cost	0			0
+ Accumulated depreciation value	0			0
3. Intangible fixed assets	0			0
+ Original cost	0			0
+ Accumulated depreciation value	0			0
II. Long term investment	0			0
1. Long-term securities investment	0			0
2. Joint-venture capital contribution	0			0
3. Other long-term investment	0			0
4. Provision for long-term investment devaluation	0			0
III. Capital construction in process	14,452			14,490
IV. Other	131,279			109,396
TOTAL ASSETS:	477,348			393,884
LIABILITIES
A. Payables:	401,963			558,168
I. Short term payables	113,295			501,687
1.Short-term borrowings	32,000			439,360
2. Due long-term liabilities	0			0
3. Payable to seller	38,807			35,574
4. Prepayment of buyer	8,759			7,993
5. Taxes and accounts dutiable	4,385			647
6. Employee payments	0			18,049
7. Internal payments	27,708			0
8. Other payables	1,636			64
II. Long term payables	236,556			0
1. Long-term borrowing	236,556			0
2. Long-term loans	0			0
III. Other liabilities	52,112			56,481
1. Disbursement payable	52,112			56,481
2. Pending assets	0			0
3. Receipts long-term collateral and deposit	0			0
B. Owner’s Equity:	75,385			-164,284
I. Capital and Funds	75,385			-164,284
1. Working capital	1,115,372			728,076
2. Differences from assets revaluation	0			0
3. Exchange rate differences	0			0
4. Business development fund	0			0
5. Reserved fund	1,453			1,453
6. Retained profit	-1,041,440			-893,813
7. Construction capital sources	0			0
II. Other administrative and fund sources	0			0
1. Provident funds for unemployment	0			0
2. Welfare and reward funds	0			0
3. Management funds of higher level	0			0
4. Functional operation funds	0			0
+ Functional operation funds of last year	0			0
+ Functional operation funds of this year	0			0
5. Fund sources formed by fixed assets	0			0
TOTAL LIABILITY AND EQUITY:	477,348			393,884
PROFIT & LOSE ACCOUNTS
Description	Fiscal year 2004			Fiscal year 2003
Total revenue	860,024			N/A
Revenue from export	0			-
Deductions Items	141,668			-
- Discount	141,668			-
- Devaluation of sale price	0			-
- Return of sold goods	0			-
- Turnover tax, excise tax, import and export duties to be paid	0			-
1. Net revenue	718,356			-
2. Original rate of goods for sale	505,630			-
3. Combined Profit	212,726			-
4. Sales costs	195,785			-
5. Enterprise administrative costs	45,371			-
6. Net income from business activity	-28,430			-
Income from financial activities	0			-
Costs of financial activities	13,055			-
7. Net income from financial operation	-13,055			-
Irregular income	5,058			-
Irregular expenditure	10,600			-
8. Irregular Profit	-5,542			-
9. Total pre-tax profit	-47,027			-
10. Income tax	0			-
11. After tax profit	-47,027			-

FINANCIAL FACTORS
Description	2004	2003
Current Liquidity Ratio	1.10	0.31
Quick Liquidity Ratio	0.49	0.22
Inventory Circle	8.82	N/A
Average Receivable Period (days)	22.83	-
Utilizing Asset performance	1.50	-
Liabilities / Total Assets (%)	84.21	141.71
Liabilities / Owner’s Equity (%)	533.21	-339.76
Income before tax/Total assets (%) ROA	-9.85	N/A
Income before tax / Owner’s Equity (%) ROE	-62.38	-
Income before tax/Total revenues (%) NPM	-5.47	-
Gross profit /Total revenues (%) GPM	24.73	-

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Normal
Liquidity	Week
Payment status	Average
Financial Situation	Fairly Strong
Development trend	Normal
Litigation data	No Recorded
Bankruptcy	No Recorded
Payment Methods	Direct payment by cash or through its corresponding bank by (T/T) or credit letter (L/C)
Sale Methods	Through supermarket and agency network

INTERPRETATION ON THE SCORES

History of the subject:

The Subject was established under the Decision No. 291/GP issued on December 24th 1991 by Government Committee for Cooperation and Investment basing on the joint venture between SP. Co (Vietnam) and Macondray Company Inc (Singapore).

In 1994, PEPSICO, INC invests in the joint ventures with the contribution of 30% capital to the joint venture, SP. Co (40%) and Macondray Company Inc (30%).

In 1998, with the requirement of investment and development, the share is changed again. PEPSICO, INC takes over 97% of the share according to the Decision No291/GPDC7 issued on December 28th 1998. The joint venture has investment capital of 110 million USD and legal capital of 70 million USD.

On April 28th 2003, PEPSICO, INC bought 3% of the share from SP.Co to become 100% foreign invested company.

Pepsico Beverages International Vietnam Company is a 100% foreign invested enterprise. The subject investment capital has increased many times. The latest adjustment was on May 10th 2007. The current investment capital of the subject is 180,000,000 USD

The company has developed a wide range of products to meet the diverse taste of local consumers, such as carbonated drinks with different flavors like orange, lemon and strawberry, energy drinks, fruit juice and purified water. In Vietnam, the subject manufactures, sells and distributes various famous beverage brands namely PepsiCola, 7Up, Mirinda, Evervest, Sting, Aquafina, Twister, Lipton Ice Tea together with Body Naturals Soya milk snack foods branded Poca and Lay’s .

Since December 2005, Pepsico Vietnam has officially stepped in producing foodstuff. It has launched the Poca crisps, its first snack to enter the Vietnam food market. The Poca snack, with lobster and barbeque flavors, will be available at supermarkets and shops nationwide.

In begin 2008 the subject has inaugurated a factory processing tomato snack in Binh Duong with capacity 10,000 tons per year.

The premises and facilities of the subject are good. Its management capabilities are also good. The qualification of its staff is fair. Position of the subject in the industry is large. Pepsi and rival coca-cola account for 88 percent of the market of carbonated drinks in Vietnam. The remaining is shared by local producers. Its market share is expanded remarkably in recent years. The subject has much support from its parent company. It has prospect of development.

In overview, the subject is a big company in this field. According to the reported financial statement, the subject’s financial status is not much good. It has been lost in operation for years. However, the subject is actual strong company. It has capacity to meet financial commitments. No caution needed for small-normal business transactions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.47.67
UK Pound	1	Rs.75.47
Euro	1	Rs.61.19

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.	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