MIRA INFORM REPORT

Report Date :

17.05.2011

IDENTIFICATION DETAILS

Name :	PROCTER AND GAMBLE VIETNAM CO., LTD

Registered Office :	6^th Floor, Diamond Plaza, 34 Le Duan Str, Ben Nghe Ward - District 1- Ho Chi Minh City - Vietnam

Country :	Viet Nam

Financials (as on) :	31.12.2009

Year of Establishment :	1994

Legal Form :	Joint venture

Line of Business :	Producing beauty care products

RATING & COMMENTS

MIRA’s Rating :

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

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Viet Nam

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name		PROCTER AND GAMBLE VIETNAM CO., LTD
Vietnamese Name		CONG TY TNHH PROCTER AND GAMBLE VIETNAM
Trade name		P&G VIETNAM
Type of Business		Joint venture
Year Established		1994
Investment Certificate No		1052/GP
Date of investment		23 Nov 1994
Place of investment		Ministry of Planning and Investment
Registered Investment Capital		83,000,000 USD
Chartered capital		83,000,000 USD
Investment Duration		40
Tax code		3700232756
Total Employees		900
Size		Large

Historical Identification & Legal form

List

Changed Items

Date of changes

Subject has got former General Director (Country Manager): Mr.RAUL FALCON

Replaced by Mr. ORMA CHANNAWI


ADDRESSES

Head Office
Address		6^th Floor, Diamond Plaza, 34 Le Duan Str, Ben Nghe Ward - District 1- Ho Chi Minh City - Vietnam
Telephone		(84-8) 38225 678 - 38163 054
Fax		(84-8) 38225 578
Email		honglt@pg.com
Website		www.pg.com

DIRECTORS

1 . NAME		Mr. ORMA CHANNAWI
Position		General Director
Resident		Geneva - Switzerland
Nationality		Swiss
Qualification		Management

2 . NAME		Mr. NGUYEN PHUONG ANH
Position		Vice General Director
Nationality		Vietnamese
Qualification		Management

3 . NAME		Ms. LE THI THANH HA
Position		Financing and External Relations Manager
Nationality		Vietnamese
Qualification		Management

4 . NAME		Mr. VU DONG HIEP
Position		Factory Director
Nationality		Vietnamese

BUSINESS NATURE AND ACTIVITIES

Producing beauty care products , laundry & cleaning ans paper products such as Pantene, Head & Shoulders, Rejoice, Pert, Febreze, Ivory, Swiffer, Camay, Coast, Safeguard, Tide, Olay, Downy, Whisper, Pampers, ...

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market		The imported markets of the subject are USA, France, Germany and some countries in Europe and Asia

EXPORT:
· Types of products		Products( including Rejoice, Head & Shoulders, Pantene, Pert, Febreze, Ivory, Camay, Swiffer and Downy)
· Market		United States, Canada, Europe, All countries in ASIAN, Australia and New Zealand
· Ratio		40%


BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH
Address		No. 29 Ben Chuong Duong -District 1- Ho Chi Minh City - Vietnam
Telephone		(84-8) 3829 7245 - 3823 0310 - 3823 0311
Fax		(84-8) 3829 7228

2. CITY BANK - HOCHIMINH CITY BRANCH
Address		No.115, Nguyen Hue Str, Ben Nghe Ward -District 1- Ho Chi Minh City - Vietnam
Telephone		(84-8) 38242118
Fax		(84-8) 38242114

3. HSBC BANK (VIETNAM) LTD
Address		Floor 06^th, The Metropolitan Building 235 Dong Khoi Street - District 1- Ho Chi Minh City - Vietnam
Telephone		(84 8) 3829 2288
Fax		(84 8) 3299 0018

SHAREHOLDERS

1 . NAME	PROCTER AND GAMBLE HOLDINGS SINGAPORE PTE., LTD.
Business Registration	199708622N
Date of Registration	18 Dec 2003
Place of Registration	Singapore
Address	No.95 South Bridge Road, #10-10 Pidemco Center, Singapore
Value of shares	77,100,000 USD
Percentage	93%

2 . NAME	PHUONG DONG COMPANY
Address	40 Kim Bien Str, Ward 13, - District 5- Ho Chi Minh City - Vietnam
Tel	(84-8) 38557 750 – 38551 667
Fax	(84-8) 38554723
Value of shares	5,900,000 VND
Percentage	7%

FINANCIAL HIGHLIGHT

BALANCE SHEET
Unit: million VND
Balance sheet date		31/12/2009
Number of weeks		52
ASSETS
A. Current Asset		757,058
Receivables		90,860
Inventory		285,872
Cash and other current assets		380,326
B. Long term Asset		42,069
1. Long term account receivable and other long term asset		32,758
2. Fixed assets		9,311
Tangible fixed assets		7,184
+ Original cost		22,477
+ Accumulated depreciation value		-15,293
Financial leasehold assets		0
Intangible fixed assets		1,951
Construction in progress		176
TOTAL ASSETS		799,127

LIABILITIES
Payable loans		681,846
Owner’s Equity		117,281
TOTAL LIABILITY AND EQUITY		799,127

PROFIT & LOSS STATEMENT
1. Total Sale		2,983,220
2. Deduction item		498,814
3. Net revenue		2,484,406
4. Costs of goods sold		2,122,363
5. Gross profit		362,043
6. Financial income		23,742
7. Financial expenses		23,146
8. Selling expenses and Administrative overheads		102,667
9. Net operating profit		259,972
10. Other income		2,930
11. Other expenses		-9,127
12. Other profit /(loss)		12,057
13. Total accounting profit before tax		272,029
14. Current corporate income tax		45,782
15. Deferred corporate income tax		0
16. Interest from subsidiaries/related companies		0
17. Profit after tax		226,247

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2008	31/12/2007
Number of weeks	52	52
ASSETS
A – CURRENT ASSETS	769,665,186,311	457,063,620,782
I. Cash and cash equivalents	197,752,699,580	61,823,123,277
1. Cash	197,752,699,580	47,311,675,357
2. Cash equivalents	0	14,511,447,920
II. Short-term investments	0	0
1. Short-term investments	0	0
2. Provisions for devaluation of short-term investments	0	0
III. Accounts receivable	227,528,388,478	156,258,485,011
1. Receivable from customers	162,603,393,933	119,948,544,451
2. Prepayments to suppliers	7,510,138,751	2,828,418,111
3. Inter-company receivable	0	0
4. Receivable according to the progress of construction	0	0
5. Other receivable	57,414,855,794	33,481,522,449
6. Provisions for bad debts	0	0
IV. Inventories	325,948,561,850	199,960,057,208
1. Inventories	325,948,561,850	199,960,057,208
2. Provisions for devaluation of inventories	0	0
V. Other Current Assets	18,435,536,403	39,021,955,286
1. Short-term prepaid expenses	9,574,569,871	30,256,322,456
2. VAT to be deducted	8,860,966,532	3,966,724,420
3. Taxes and other accounts receivable from the State	0	4,798,908,410
4. Other current assets	0	0
B. LONG-TERM ASSETS	371,479,530,471	357,541,660,649
I. Long term account receivable	628,012,812	477,894,596
1. Long term account receivable from customers	0	0
2. Working capital in affiliates	0	0
3. Long-term inter-company receivable	0	0
4. Other long-term receivable	628,012,812	477,894,596
5. Provisions for bad debts from customers	0	0
II. Fixed assets	348,123,086,745	334,571,903,941
1. Tangible assets	308,469,868,825	297,289,454,834
- Historical costs	607,618,512,879	565,404,517,775
- Accumulated depreciation	-299,148,644,054	-268,115,062,941
2. Financial leasehold assets	0	0
- Historical costs	0	0
- Accumulated depreciation	0	0
3. Intangible assets	4,560,197,822	6,034,587,399
- Initial costs	11,666,676,026	11,515,633,326
- Accumulated amortization	-7,106,478,204	-5,481,045,927
4. Construction-in-progress	35,093,020,098	31,247,861,708
III. Investment property	0	0
Historical costs	0	0
Accumulated depreciation	0	0
IV. Long-term investments	0	0
1. Investments in affiliates	0	0
2. Investments in business concerns and joint ventures	0	0
3. Other long-term investments	0	0
4. Provisions for devaluation of long-term investments	0	0
V. Other long-term assets	22,728,430,914	22,491,862,112
1. Long-term prepaid expenses	6,152,187,724	4,467,743,636
2. Deferred income tax assets	16,576,243,190	18,024,118,476
3. Other long-term assets	0	0
VI. Goodwill
1. Goodwill
TOTAL ASSETS	1,141,144,716,782	814,605,281,431

LIABILITIES
A- LIABILITIES	588,330,933,781	325,121,217,062
I. Current liabilities	572,500,292,276	309,197,664,573
1. Short-term debts and loans	0	0
2. Payable to suppliers	424,670,715,565	208,162,271,328
3. Advances from customers	0	0
4. Taxes and other obligations to the State Budget	22,693,997,022	15,433,865,472
5. Payable to employees	40,618,793	0
6. Accrued expenses	85,802,433,249	71,777,993,313
7. Inter-company payable	0	0
8. Payable according to the progress of construction contracts	0	0
9. Other payable	39,292,527,647	13,823,534,460
10. Provisions for short-term accounts payable	0	0
II. Long-Term Liabilities	15,830,641,505	15,923,552,489
1. Long-term accounts payable to suppliers	0	0
2. Long-term inter-company payable	0	0
3. Other long-term payable	0	0
4. Long-term debts and loans	0	0
5. Deferred income tax payable	0	0
6. Provisions for unemployment allowances	15,830,641,505	15,923,552,489
7. Provisions for long-term accounts payable	0	0
B- OWNER’S EQUITY	552,813,783,001	489,484,064,369
I. OWNER’S EQUITY	552,813,783,001	489,484,064,369
1. Capital	1,046,535,108,327	1,046,535,108,327
2. Share premiums	0	0
3. Other sources of capital	0	0
4. Treasury stocks	0	0
5. Differences on asset revaluation	0	0
6. Foreign exchange differences	0	0
7. Business promotion fund	0	0
8. Financial reserved fund	0	0
9. Other funds	0	0
10. Retained earnings	-493,721,325,326	-557,051,043,958
11. Construction investment fund	0	0
II. Other sources and funds	0	0
1. Bonus and welfare funds	0	0
2. Sources of expenditure	0	0
3. Fund to form fixed assets	0	0
MINORITY’S INTEREST	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	1,141,144,716,782	814,605,281,431


PROFIT & LOSS STATEMENT

Description	FY2008
1. Total Sale	2,758,655,740,471
2. Deduction item	338,896,488,536
3. Net revenue	2,419,759,251,935
4. Costs of goods sold	1,660,685,767,237
5. Gross profit	759,073,484,698
6. Financial income	29,348,891,502
7. Financial expenses	37,946,133,644
- In which: Loan interest expenses	37,946,133,644
8. Selling expenses	393,926,592,175
9. Administrative overheads	273,666,994,373
10. Net operating profit	82,882,656,008
11. Other income	3,884,517,724
12. Other expenses	4,083,647,563
13. Other profit /(loss)	-199,129,839
14. Total accounting profit before tax	82,683,526,169
15. Current corporate income tax	17,905,932,251
16. Deferred corporate income tax	1,447,875,286
17. Interest from subsidiaries/related companies
18. Profit after tax	63,329,718,632


PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		Medium
Payment status		Prompt
Financial Situation		Above Average
Development trend		Positive
Litigation data		No
Bankruptcy		No
Sale Methods		Wholesaler
Public opinion		Excellent

INTERPRETATION ON THE SCORES

The subject, PROCTER AND GAMBLE VIETNAM CO., LTD (P&G Vietnam) is a Joint Venture Company which was established in 1994. Head office of the subject is located at 6^th Floor- Diamond Plaza- 34 Le Duan Str-Ben Nghe Ward - District 1 - Ho Chi Minh City – Vietnam.

Currently, the subject is specialized in trading beauty care, laundry, cleaning and paper products. The subject has many famous brand such as Pantene, Head & Shoulders, Rejoice, Pert, Febreze, Ivory, Swiffer, Camay, Coast, Safeguard, Tide, Olay, Downy, Whisper, Pampers, ...

Being established in the year 1994, P&G Vietnam has operated officially with the investment capital US$14.3 million. Its investment is increased to US$83 million now. The Subject is a joint venture between Procter and Gamble Holdings Singapore Pte. Ltd - a member of Procter & Gamble Group and Phuong Dong Company - a member of Vinachem. Both of partners are famous corporations.

Procter & Gamble is the leading group in the world for products of beauty care, healthy care, food & beverages and laundry & cleaning, paper products, At present, P&G is one of the leading groups in manufacturing cosmetic and it has factory in 60 countries all over the world with annual turnover over US$50 billion. Vinachem is the biggest chemical corporation of Vietnam.

Management capability of the subject is good. The subject’s sales are very good. It is one of the leading suppliers of beauty care, laundry, cleaning and paper products in Vietnam market. The biggest competitor of the subject in Vietnam market is Unilever Vietnam. P&G products are well known not only as high-class products but also as good products and affordable for popular people. A half of volume of the company’s products are sold outside major cities and directly distributed in provinces and cities. P&G Vietnam has thought about long-term and potential benefits by maximizing the number of partners, distributors and suppliers. Besides, the subject has taken advantages and strong supports from its parent.

In Vietnam, P&G Vietnam and P & G Indochina are located at the same address. In terms of legal the subject as an independent business activities with P & G Indochina. In fact, P&G Indochina is specialized in manufacturing and P&G Vietnam is specialized in trading product. This is a form of transformation function.

According to information we collected, P & G Vietnam has primary responsibility for the delivery of P&G Indochina’s products. Besides, P& G Vietnam also imports products of P& G from foreign market to supply for retail market. The subject has a large market share in Vietnam and its future prospect seems to be bright.

According to its finance statements, financial situation of the subject is good although most of its businesses have been influenced by the world economic crisis. Total revenue of the subject in year 2009 was over VND2,983 billion, showing an increase by 8.1% compared with the prior year. Its profit after tax increased from VND 63,330 billion (year 2008) to VND226,247 billion (year 2009). In 2009, the subject had a sharp cut in Selling expenses and Administrative overheads.

The A credit rating on this subject reflects that finance capacity and potential development of this subject are strong.

APPENDIXES

INDUSTRY DATA

Industry code	Growth speed (%)		Total employees 2009 (Thousand)		Total enterprises	Annual average capital of enterprises
	Predict 2010	2009
Agriculture, Forestry and Fishing	2.8	3.0	24,788.5		2,399	50,530
Trade and Services	7.5	11	10,517.9		79,181	1,754,973
Construction	7	11.3	2,692.8		17,783	248,268
Manufacturing	12	7.6	7,591.2		30,786	967,068

ECONOMIC INDICATORS

			2010	2009		2008
Population (Million person)			86.93	86.02		86.1
Gross Domestic Products (US$ billion)			102.2	91		84.9
GDP Growth (%)			6.78	5.32		6.2
GDP Per Capita (US$)			1,160	1,080		1,040
Inflation (% Change in Composite CPI)			11.75	6.88		24.4

SERVICE TRADE PERFORMANCE

Billion USD			2010	2009		2008
Exports			71.6	56.6		62.9
Imports			84	68.8		76.6
Trade Balance			-12.4	-12.2		-14.6

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

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	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
--	NB	New Business	--

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

ADDRESSES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL HIGHLIGHT

Unit: million VND

ASSETS

LIABILITIES

PROFIT & LOSS STATEMENT

FINANCIAL DATA

Unit: One VND

ASSETS

LIABILITIES

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

APPENDIXES

Unit