MIRA INFORM REPORT

Report Date :

09.05.2012

IDENTIFICATION DETAILS

Name :	UNILEVER VIETNAM INTERNATIONAL COMPANY LIMITED
Registered Office :	Lot A2-3 Cu Chi North-west Industrial zone, Tan An Hoi Village, Cu Chi District, Ho Chi Minh City
Country :	Viet Nam
Financials (as on) :	31.12.2010
Date of Incorporation :	1995
Legal Form :	One member liability limited company
Line of Business :	Manufacturing, trading, import and export) in Home Care Products, Personal Care Products, Food and Tea-based Beverages
No. of Employees :	2,100

RATING & COMMENTS

MIRA’s Rating :

A

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

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 (31.12.2011)	Current Rating (31.03.2012)
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
Registration English Name	UNILEVER VIETNAM INTERNATIONAL COMPANY LIMITED
Registration Vietnamese Name	CONG TY TNHH QUOC TE UNILEVER VIET NAM
Registration short name	UNILEVER VIETNAM
Type of Business	One member liability limited company
Year Established	1995
Investment Certificate No.	412043000288
Date of 07^th Adjustment	05 May 2011
Place of Registration	Ho Chi Minh Industrial and Export Processing Zones Authority
Current chartered capital	USD 75,570,000
Investment capital	USD 281,574,382
Investment duration (expire date)	29 March 2046
Tax code	0300762150
Total Employees	2,100
Size	Large

ADDRESSES
Registration Head office/ Factory Address
Address	Lot A2-3 Cu Chi North-west Industrial zone, Tan An Hoi Village, Cu Chi District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3892 4024
Fax	(84-8) 3892 4041
Website	www.unilevervn.com
Details of Factories in Cu Chi North- West Industrial Zone
Address	Lot A2-3 Cu Chi North-west Industrial zone, Tan An Hoi Village, Cu Chi District, Ho Chi Minh City, Vietnam
Area	60,000 m^2
Address	Lot A2-1 & Field (having map 6863^-2 KD/GD-STNMT), Cu Chi North-west Industrial zone, Tan An Hoi Village, Cu Chi District, Ho Chi Minh City, Vietnam
Area	51,250 m^2
Address	Cu Chi North-west Industrial zone (extended), Tan An Hoi Village, Cu Chi District, Ho Chi Minh City, Vietnam
Area	150,000 m^2
Transaction Office in Ho Chi Minh city
Address	Unilever Building, No. 156 Nguyen Luong Bang Street, Tan Phong Ward, 7^th District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 5413 5686
Fax	(84-8) 5413 5625
Branch in Binh Duong / Unilever Vietnam Distribution Center
Address	No. 41 Doc Lap Boulevard, Vietnam - Singapore Industrial Park, Thuan An Town, Binh Duong Province, Vietnam
Area	100,000 m^2
Branch in Ha Noi
Address	No. 233 Nguyen Trai street, Thanh Xuan District, Ha Noi City, Vietnam
Telephone	(84-4) 3858 3383
Fax	(84-4) 3858 3005
Branch in Da Nang
Address	09^th Floor, Indochina Riverside Building, 74 Bach Dang street, Hai Chau District, Da Nang City, Vietnam
Telephone	(84-511) 3565 600
Fax	(84-511) 3565 608 - 3565 609
Branch in Can Tho
Address	03^rd Floor, 131 Tran Hung Dao Street An Phu Ward, Ninh Kieu District, Can Tho City, Vietnam
Telephone	(84-710) 3834 222
Fax	(84-710) 3830 540
Branch in Bac Ninh
Address	Tan Hong - Hoan Son Industrial Zone Bat Lu Hamlet, Hoan Son Commune, Tu Son District, Bac Ninh Province, Vietnam
Telephone	(84-241) 3714238
Fax	(84-241) 3714245

DIRECTORS
Note: The given name of contact person (Mr. Do Duy Phi) was General Director Vietnam National Chemical Corporation (VINACHEM). He retired.
1. NAME	Mr. JAYARAMAN VAIDYARAMAN
Position	President/ General Director
Date of Birth	01 Feb 1964
ID Number/Passport	Z 1902489
ID Issue Date	04 Jun 2009
ID Issue Place	Consulate General of India in Shanghai (China)
Current resident	Room 2110 - Kumho InterContinental Asiana Saigon 39 Le Duan - Ben Nghe Ward, 1^st District, Ho Chi Minh City, Vietnam
Nationality	Indian
NAME	Mr. MARIJN VAN TIGGELEN
Education	Business Administration at University of Groningen in Holland ( 1985-1991) Modern Japanese Studies at Erasmus at University of Rotterdam in Holland (1989-1991)
Worked	1991-1992: Corporate Audit 1993-1995: Unilever Research Vlaardingen Netherlands 1996-1997: Corporate Controller Unilever Meat Group Netherlands 1997-2000: BU Director Foods – Unilever Netherlands 2001-2005: SVP, Foods, Unilever South-East Asia 2005-September 2010: Chairman, Unilever Vietnam October 2010 – current: Chairman, Unilever South Africa
Nationality	Dutch
2. NAME	Mr. TRAN VU HOAI
Position	Vice President of Corporate Affairs
Resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
3. NAME	Mr. ADAM BALARIN
Position	Vice President of Supply Chain
Education	Engineering at the University of Natal
Nationality	South African
4. NAME	Ms. KATHERINE WU
Position	Vice President of Finance
Nationality	Chinese
Education	China Europe International Business School- Master Fudan University- Bachelor, Biochemistry

BUSINESS NATURE AND ACTIVITIES

The subject specializes (manufacturing, trading, import and export) in Home Care Products, Personal Care Products, Food and Tea-based Beverages

Subject’s key brands include OMO, VISO, SURF, COMFORT, SUNLIGHT, VIM, SUNSILK, CLEAR, DOVE, LIFEBUOY, VASELINE, LUX, HAZELINE, POND'S, P/S, CLOSE UP, REXONA….

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Materials for production
· Market	Thailand, Hong Kong, China, Singapore, Korea
· Ratio	80%
· Mode of payment	L/C, T/T
EXPORT:
· Types of products	Soap powder, Shampoo
· Market	EU, Asia and Asia South East Countries
· Ratio	50%
· Mode of payment	L/C, T/T

BANKERS
1. CITI BANK
Address	No. 115 Nguyen Hue Str, Ben Nghe Ward,1^st District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 8242118
Fax	(84-8) 8242267
2. CITI BANK – HANOI BRANCH
Address	17 Ngo Quyen Str, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 38257888
Fax	(84-4) 38243960
3. HONGKONG SHANGHAI BANK CORPORATION (HSBC) – HO CHI MINH BRANCH
Address	6^th Floor, No. 235 Dong Khoi Str., Ben Nghe ward, 1^st District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38292288

SHAREHOLDERS
Current registration shareholder:
NAME	MAVIBEL (MAATSCHAPPIJ VOOR INTERNATIONALE BELEGGINGEN) B.V
Business Registration	24332352
Issued on	28 Feb 2002
Address	Rotterdam, Netherlands
Percentage	100%
Representer I
Name	Mr. Reinout van Gelder
Date of birth	28/8/1973
Passport	NY75KF709
Issued on	06/4/2009
Place of Issue	Oegstgeest
Resident	Apollolaan 7, 2341 BA Oegstgeest, Netherlands
Nationality	Dutch
Representer II
Name	Mr. Peter Hordijk
Date of birth	30/10/1966
Passport	NWDK278C5
Issued on	18/4/2008
Place of Issue	Rotterdam
Resident	Laan van Avant-Garde 376, 3059 RA, Rotterdam, Netherlands
Nationality	Dutch

FINANCIAL DATA
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2010	31/12/2009	31/12/2008
Number of weeks	52	52	52
ASSETS
A – CURRENT ASSETS	2,975,561	3,117,358	2,477,789
I. Cash and cash equivalents	664,374	1,256,242	713,574
1. Cash	62,466	274,863	699,064
2. Cash equivalents	601,908	981,379	14,510
II. Short-term investments	0	145,000	0
1. Short-term investments	0	145,000	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	808,162	438,198	567,592
1. Receivable from customers	668,967	302,000	398,059
2. Prepayments to suppliers	35,152	67,464	17,395
3. Inter-company receivable	65,251	3,544	978
4. Receivable according to the progress of construction	38,792	0	0
5. Other receivable	0	65,878	152,066
6. Provisions for bad debts	0	-688	-906
IV. Inventories	1,383,708	1,204,297	1,158,770
1. Inventories	1,411,356	1,221,657	1,178,177
2. Provisions for devaluation of inventories	-27,648	-17,360	-19,407
V. Other Current Assets	119,317	73,621	37,853
1. Short-term prepaid expenses	66,831	61,564	37,853
2. VAT to be deducted	0	0	0
3. Taxes and other accounts receivable from the State	52,486	12,057	0
4. Other current assets	0	0	0
B. LONG-TERM ASSETS	1,665,219	748,933	658,949
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	1,432,457	651,050	568,616
1. Tangible assets	765,678	471,038	472,153
- Historical costs	1,219,569	700,612	644,447
- Accumulated depreciation	-453,891	-229,574	-172,294
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	5,433	4,925	5,122
- Initial costs	16,698	14,756	14,756
- Accumulated amortization	-11,265	-9,831	-9,634
4. Construction-in-progress	661,346	175,087	91,341
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	0	0	746
1. Investments in affiliates	0	0	0
2. Investments in business concerns and joint ventures	0	0	0
3. Other long-term investments	0	0	746
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	232,762	97,883	89,587
1. Long-term prepaid expenses	88,235	68,750	73,600
2. Deferred income tax assets	128,905	18,098	15,987
3. Other long-term assets	15,622	11,035	0
TOTAL ASSETS	4,640,780	3,866,291	3,136,738
LIABILITIES
A- LIABILITIES	3,644,382	3,573,735	2,706,414
I. Current liabilities	3,448,139	3,402,336	2,551,579
1. Short-term debts and loans	1,673,209	0	0
2. Payable to suppliers	11,323	1,636,462	1,614,115
3. Advances from customers	522,119	10,960	5,453
4. Taxes and other obligations to the State Budget	1,183,824	675,767	316,072
5. Payable to employees	0	0	0
6. Accrued expenses	25,840	1,031,961	588,981
7. Inter-company payable	0	6,524	9,687
8. Payable according to the progress of construction contracts	0	0	0
9. Other payable	31,824	40,662	8,128
10. Provisions for short-term accounts payable	0	0	9,143
II. Long-Term Liabilities	196,243	171,399	154,835
1. Long-term accounts payable to suppliers	101,271	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	46,060	97,340	82,082
4. Long-term debts and loans	0	0	0
5. Deferred income tax payable	0	0	0
6. Provisions for unemployment allowances	48,912	43,022	49,598
7. Provisions for long-term accounts payable	0	31,037	23,155
B- OWNER’S EQUITY	996,398	292,556	430,324
I. OWNER’S EQUITY	996,398	292,556	430,324
1. Capital	863,072	420,439	420,440
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	0	0	0
7. Business promotion fund	0	0	0
8. Financial reserved fund	2,870	0	0
9. Other funds	0	0	0
10. Retained earnings	130,456	-127,883	9,884
11. Construction investment fund	0	0	0
II. Other sources and funds	0	0	0
1. Bonus and welfare funds	0	0	0
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	4,640,780	3,866,291	3,136,738

PROFIT & LOSS STATEMENT
Description	FY2010	FY2009	FY2008
1. Total Sales	15,461,537	12,619,657	9,624,958
2. Deduction item	1,898,569	1,325,662	833,805
3. Net revenue	13,562,968	11,293,995	8,791,153
4. Costs of goods sold	8,032,827	6,989,337	6,216,861
5. Gross profit	5,530,141	4,304,658	2,574,292
6. Financial income	138,801	74,100	71,217
7. Financial expenses	110,409	95,096	18,830
- In which: Loan interest expenses
8. Selling expenses	3,426,983	2,534,619	1,612,026
9. Administrative overheads	1,180,210	685,823	541,937
10. Net operating profit	951,340	1,063,220	472,716
11. Other income	5	5,964	0
12. Other expenses	0		2,013
13. Other profit /(loss)	5	5,964	-2,013
14. Total accounting profit before tax	951,345	1,069,184	470,703
15. Current corporate income tax	439,846	597,867	374,058
16. Deferred corporate income tax	92,931	2,111	574
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	604,430	473,428	97,219

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2010	FY2009	FY2008	Average Industry
Current liquidity ratio	0.86	0.92	0.97	1.98
Quick liquidity ratio	0.46	0.56	0.52	1.14
Inventory circle	6.21	5.80	5.37	4.57
Average receive period	21.75	14.16	23.57	74.01
Utilizing asset performance	2.92	2.92	2.80	1.52
Liability by total assets	78.53	92.43	86.28	56.31
Liability by owner’s equity	365.76	1,221.56	628.92	172.82
Ebit / Total assets (ROA)	20.50	27.65	15.01	11.85
Ebit / Owner’s equity (ROE)	95.48	365.46	109.38	32.44
Ebit / Total revenue (NPM)	6.15	8.47	4.89	7.81
Gross profit / Total revenue (GPM)	35.77	34.11	26.75	21.11
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Fair
Liquidity	Medium/High
Payment status	Normal
Financial Situation	Strong
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank
Sale Methods	Distributor

RATINGS & CREDIT RECOMMENDATIONS
Factor	Criterion	Evaluated Score	Total Score
Management Factors		22	30
	· Organization	8	10
	· Facilities	7	10
	· Management capabilities	7	10
Financial Factors		27	40
Other Factors		23	30
	· Trademark	8	10
	· Current position in the industry	7	10
	· Future prospect	8	10
Total Evaluated Scores		72	100
With total scores of 72, the Subject is graded at: A
CREDIT INQUIRY: US$125,000, D/A terms
Reliable!

INTERPRETATION ON THE SCORES

The subject, UNILEVER VIETNAM INTERNATIONAL COMPANY LIMITED has a long history. It was established in 1995 as a joint venture between Unilever and the Vietnam National Chemical Corporation (Vinachem). In June 2009, Unilever announced the acquisition of 33.33% of the shares in Unilever Vietnam Joint Venture Company from Vietnam National Chemical Corporation (Vinachem). The value of the deal was not announced. Unilever Vietnam Joint Venture Company has accordingly become 100% foreign-owned and been renamed Unilever Vietnam International Company Limited, or Unilever Vietnam since the adjustment on 11 June 2009 of its Investment Certificate. On 05 April 2010, Unilever Vietnam International Company Limited and Unilever Vietnam Company Limited signed a merger contract. Since 22 April 2010, Unilever Vietnam Company Limited has been officially merged into the subject.

The subject specializing in Home Care, Personal Care, Foods and Tea-based Beverages. The subject has manufactured and provided to Vietnam market a large range of products. It’s apparent that the company must cope with numerous powerful and relentless competitors (not only domestic competitors but also big foreign ones) such as Coca-Cola; Colgate-Palmolive; Kraft Foods, Inc.; L’Oreal; PepsiCo.; Nestlé S.A.; Procter & Gamble and the list continues to go on. Position of Unilever is Vietnam market is strong. Many of Unilever Vietnam’s brands have been in the top leading household brands in Vietnam, including Omo, Sunlight, Dove, Sunsilk, Lifebuoy, Clear, Lux, Close-up, Lipton, Viso, Sunsilk, P/S, Comfort and Knorr. It has developed an extensive local network of distributors and retailers. One of the key exported products of the subejct is toothpaste. The subject has been exporting Close-up toothpaste to Thailand and the Republic of Korea since 2002. Another export destination is Germany. The product was also shipped to Japan and Singapore. Besides Close-up, UNV also exports OMO and Viso detergent to Australia, Malaysia, Singapore and Phillippines. The subject is the biggest advertiser on offline media in Vietnam (April 2010 – March 2011). Unilever Vietnam has continuously achieved strong and solid growth, averaging at double digit figure and resulting in total revenues of nearly 1% of the country’s GDP as of 2010.

Premises and facilities of the subject are standard. Annual capacities of its current production lines are 250,373 tons of home care products, 48,935 tons of personal care products, 65,743 tons of food and beverage and 18,240 tons of oral care products. Since Oct 2011, the subject has invested in the new 150,000 square meter facility locating at Cu Chi North-west Industrial zone (extended). As expected, this new project cost US$100,000,000 and started manufacturing in Sep 2013 with annual capacity of 300,000 tons of home care products.

The competition in Vietnam consumption market has become fierce. The name list of Unilever’s competitors has been longer. With the comfortable target customers, suitable promotion campaigns and long development investments, the subject is expected continue its dominant player status in the Vietnam consumption market.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2009		Total employees 2010 (Thous.pers.)	Annual average capital of enterprises 2009 (billion dongs)
	2010	2009
Agriculture, Forestry and Fishing	2.78	1.82	8,749		23,896.3	81,559
Industry and Construction	7.70	5.52	85,115		10,630	2,751,975
Trade and Services	7.52	6.63	154,978		14,522	4,939,069
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			72.2	57.1		62.7
Imports			84.8	69.9		80.7
Trade Balance			-12.6	-12.8		-18

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.85
UK Pound	1	Rs.85.44
Euro	1	Rs.68.80

INFORMATION DETAILS

Report Prepared by :

PDT

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.