MIRA INFORM REPORT

Report Date :

05.01.2012

IDENTIFICATION DETAILS

Name :	PIAGGIO VIET NAM COMPANY LIMITED
Registered Office :	Lot M Binh Xuyen Industrial Zone - Binh Xuyen District - Vinh Phuc Province
Country :	Vietnam
Financials (as on) :	31.12.2009
Date of Incorporation :	02.10.2007
Com. Reg. No.:	192023000057
Legal Form :	Foreign Invested Company – Liability Limited Company
Line of Business :	Specializes in manufacturing and assembling luxurious scooters and related spare parts.
No. of Employees :	650

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 :	Satisfactory
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Viet Nam	B1	B1

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	PIAGGIO VIET NAM COMPANY LIMITED
Vietnamese Name	CONG TY TNHH PIAGGIO VIET NAM
Trade name	PIAGGIO VIETNAM CO.,LTD
Type of Business	Foreign invested company – liability limited company
Year Established	2007
Investment Certificate No	192023000057
Date of Issuance	02 Oct 2007
Place of Issuance	Vinh Phuc Industrial Zones Authority
Registered Investment Capital	45,000,000 USD
Chartered capital	4,000,000 USD
Investment Duration	50 years
Status	Unlisted
Tax code	2500288968
Total Employees	650

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Board Of Director: ROBERTO CRISTIANI – Director Changed to: COSTANTINO BALBO BERTONE DI SAMBUY - General director	Jan 2011
2	Subject has got former Representative office in Hanoi: 15th Floor Vit Tower - No. 519 Kim Ma Street - Ba Dinh District - Hanoi City - Vietnam Changed to: Floor 12th BIDV Tower - No. 194 Tran Quang Khai Street - Hoan Kiem District - Ha Noi City - Vietnam	Jan 2009

ADDRESSES
Head Office & Factories
Address	Lot M Binh Xuyen Industrial Zone - Binh Xuyen District - Vinh Phuc Province - Vietnam
Telephone	(84-211) 3593 666
Fax	(84-211) 3593 466
Email	customer.service@piaggio.com.vn
Website	www.piaggio.com.vn
Representative office in Ha Noi
Address	Floor 12th BIDV Tower No. 194 Tran Quang Khai Street - Hoan Kiem District - Ha Noi City - Vietnam
Telephone	(84-4) 3935 2030/ 3974 3001
Fax	(84-4) 3935 2036
Land-use Right	Leased
Representative office in Ho Chi Minh
Address	Suite 2003 - Floor 20th - Saigon Trade Center No. 37 Ton Duc Thang Street - 1 District - Ho Chi Minh City - Vietnam
Telephone	(84-8) 3911 8850
Fax	(84-8) 3911 8853

PARENT COMPANY
PIAGGIO & C.S.P.A
Address	Viale Rinaldo Piaggio, 25 56025 - Pontedera (PI) - Italy
Tel	0039 0587 272111
Fax	0039 0587 272344
Website	http://www.piaggiogroup.com

DIRECTORS
1. NAME	Mr. COSTANTINO BALBO BERTONE DI SAMBUY
Position	General Director
Date of Birth	18 Aug 1969
Nationality	Italian
Qualification	Bachelor of Science
2. NAME	Mr. MARIO DI MARIA
Position	Marketing Director
Nationality	Italian
3. NAME	Ms. NGUYEN THU HA
Position	Financial Director
Nationality	Vietnamese
4. NAME	Ms. PHAM THI THU HUONG
Position	Chief Accountant
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in manufacturing and assembling luxurious scooters and related spare parts.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Spare parts
· Market	Italy, China
· Mode of payment	TT, L/C
EXPORT:
· Types of products	Scooters
· Market	Southeast Asian countries, Japan, Korea, Hong Kong, Taiwan, China
· Mode of payment	TT, L/C

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Address	No. 198 Tran Quang Khai Street - Hoan Kiem District - Ha Noi City - Vietnam
Telephone	(84-4) 3934 3137 / (84-4) 3814 8919
Fax	(84-4) 3826 9067 / (84-4) 3825 1322

SHAREHOLDERS
1. NAME	PIAGGIO & C.S.P.A
Address	Viale Rinaldo Piaggio, 25 56025 - Pontedera (PI) - Italy
Tel	0039 0587 272111
Fax	0039 0587 272344
Percentage	100%
FINANCIAL HIGHLIGHT
Note: We are sorry for trying best but could not collect the update financial data.
BALANCE SHEET
Unit: Million VND
Balance sheet date		31/12/2009
Number of weeks		52
ASSETS
A. Current Asset		500,060
Receivables		13,027
Inventory		295,260
Cash and other current assets		191,773
B. Long term Asset		670,810
1. Long term account receivable		0
2. Fixed assets		447,868
Tangible fixed assets		358,101
+ Original cost		398,650
+ Accumulated depreciation value		40,549
Financial leasehold assets		0
Intangible fixed assets		89,767
Construction in progress and other long term asset		0
TOTAL ASSETS		1,170,870
LIABILITIES
Payable loans		885,602
Owner’s Equity		285,268
TOTAL LIABILITY AND EQUITY		1,170,870
PROFIT & LOSS STATEMENT
1. Total Sale		1,476,896
2. Deduction item		44,421
3. Net revenue		1,432,475
4. Costs of goods sold		894,210
5. Gross profit		538,265
6. Financial income		9,064
7. Financial expenses		69,006
8. Selling expenses and Administrative overheads		144,470
9. Net operating profit		333,853
10. Other income		751
11. Other expenses		223
12. Other profit /(loss)		528
13. Total accounting profit before tax		334,381
14. Current corporate income tax		-4,959
15. Deferred corporate income tax		0
16. Interest from subsidiaries/related companies		0
17. Profit after tax		339,340

FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2008
Number of weeks	52
ASSETS
A – CURRENT ASSETS	31,306
I. Cash and cash equivalents	1,616
1. Cash	1,616
2. Cash equivalents	0
II. Short-term investments	0
1. Short-term investments	0
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	4,900
1. Receivable from customers	0
2. Prepayments to suppliers	4,571
3. Inter-company receivable	328
4. Receivable according to the progress of construction	0
5. Other receivable	1
6. Provisions for bad debts	0
IV. Inventories	5,025
1. Inventories	5,025
2. Provisions for devaluation of inventories	0
V. Other Current Assets	19,765
1. Short-term prepaid expenses	906
2. VAT to be deducted	13,011
3. Taxes and other accounts receivable from the State	5,848
4. Other current assets	0
B. LONG-TERM ASSETS	420,379
I. Long term account receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	347,313
1. Tangible assets	203,539
- Historical costs	203,644
- Accumulated depreciation	-105
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	4,965
- Initial costs	4,986
- Accumulated amortization	-21
4. Construction-in-progress	138,809
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
V. Other long-term assets	73,066
1. Long-term prepaid expenses	73,066
2. Deferred income tax assets	0
3. Other long-term assets	0
TOTAL ASSETS	451,685
LIABILITIES
A- LIABILITIES	422,967
I. Current liabilities	422,967
1. Short-term debts and loans	243,135
2. Payable to suppliers	106,666
3. Advances from customers	149
4. Taxes and other obligations to the State Budget	310
5. Payable to employees	0
6. Accrued expenses	447
7. Inter-company payable	72,151
8. Payable according to the progress of construction contracts	0
9. Other payable	109
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	0
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	0
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	28,718
I. OWNER’S EQUITY	28,718
1. Capital	64,752
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	-6,441
6. Foreign exchange differences	0
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	-29,593
11. Construction investment fund	0
II. Other sources and funds	0
1. Bonus and welfare funds	0
2. Sources of expenditure	0
3. Fund to form fixed assets	0
MINORITY’S INTEREST	0
TOTAL LIABILITIES AND OWNER’S EQUITY	451,685

PROFIT & LOSS STATEMENT
Description	FY2008
1. Total Sale	0
2. Deduction item	0
3. Net revenue	0
4. Costs of goods sold	0
5. Gross profit	0
6. Financial income	145
7. Financial expenses	8,375
- In which: Loan interest expenses	0
8. Selling expenses	388
9. Administrative overheads	20,525
10. Net operating profit	-29,143
11. Other income	1
12. Other expenses	452
13. Other profit /(loss)	-451
14. Total accounting profit before tax	-29,594
15. Current corporate income tax	0
16. Deferred corporate income tax	0
18. Profit after tax	-29,594

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2008	Average Industry
Current liquidity ratio	0.07	1.29
Quick liquidity ratio	0.06	0.60
Inventory circle	-	85.58
Average receive period	-	48.01
Utilizing asset performance	-	1.73
Liability by total asset	93.64	56.47
Liability by owner equity	1,472.83	204.08
Ebit / Total asset (ROA)	-6.55	12.31
Ebit / Owner's equity (ROE)	-103.05	35.70
Ebit / Total revenue (NPM)	-	3.66
Gross profit / Total revenue (GPM)	-	12.34
Note: The Average Industry was calculated by Vietnam Credit based on our owned statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	Average
Payment status	Average
Financial Situation	Above average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C, T/T
Sale Methods	Wholesaler
Public opinion	Well-known

Credit inquiry: 125,000 USD Against DA in terms

Acceptable

INTERPRETATION ON THE SCORES

Founded in 2007, PIAGGIO VIETNAM CO., LTD is foreign invested company from PIAGGIO & C.S.P.A of Italia. Since its establishment, the subject has operated under investment certificate No. 192023000057, granted by Vinh Phuc Industrial Zones Authority.

Head office and factory are located in Lot M Binh Xuyen Industrial Zone - Binh Xuyen District - Vinh Phuc Province – Vietnam. Besides, the subject also has representative offices in Hanoi and Hochiminh cities. Piaggio focuses on manufacturing fashion and luxurious scooters. The products are preferred by young people such as: Vespa, Liberty, Fly, Zip and Beverly.

With domination in the line of luxury and fashion scooters, Piaggio Vietnam has officially expanded the factory in Vinh Phuc province since April last year. This project will improve capacity of factory to 300,000 scooters per year.

According to data from the General Statistics Office, ten months of year 2011, production and assemblage vehicles in domestic market has exceeded 3.37 million units, up 20.2% over the same period last year. However, rate of consumption rose slowly more, reaching 18%. Report of the General Statistics Office said, on 1^st Oct, 2011, stock index of the motorcycle industry increased to 49.5% over the same period last year.

Overall, Piaggio seems to make quite impression on the scooter market. Since 2008 the amount of imported Piaggio motorbikes sold here has decreased from just over 12,000 units to 2,600 ones, and the amount produced and sold in Vietnam has increased from fewer than 17,000 units in 2009 to over 78,000 ones in 2011. Incidentally, Piaggio’s share of the total scooter market in Vietnam has grown from 9.9% in 2009 to 14.2% in 2010 and to 21.1 percent in 2011. (Source of The Word magazine in Aug 2011). These figures show that Vietnam is a potential market for developing this industry.

With current financial situation, PIAGGIO VIETNAM CO., LTD has ability to meet credit inquiry as 125,000 USD Against da in terms.

------------ 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.53.14
UK Pound	1	Rs.83.08
Euro	1	Rs.69.25

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%)

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