Vinh Hoan Corp · HOSE:VHC
Vinh Hoan — Investor Presentation (February 2017)
28 slides from Vinh Hoan's investor presentation, Feb 16, 2017
Slide 1: Analyst Meeting 2017
ANALYST MEETING 2017 16/02/017
Slide 2: Agenda
AGENDA The rationales and synergies of shares purchase of Thanh Binh Dong Thap Fisheries JSC., Insights into recent Europe claims over Vietnam’s pangasius Update of the USDA catfish inspection program (Farm Bill) 16/02/2017
Slide 3: The rationales and synergies of shares purchase of Thanh Binh Dong Thap Fisheries
The rationales and synergies of shares purchase of Thanh Binh Dong Thap Fisheries JSC., 3
Slide 4: Rationales: three-year sales strategies 2016-2018
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., 1. Rationales Three-year sales strategies (2016-2018) Increase foothold in Expand process capacity existing markets and develop new markets Develop value-added Ramp up production Renovate, products capacity upgra
Slide 5: Assets of Thanh Binh Dong Thap Fisheries
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., Assets of Thanh Binh Dong Thap Fisheries JSC., 1. Rationales Workshop No.1: design capacity 200 MT of raw materials/day Current utilization: 50 MT/day, expected 150MT/day by the end of 2017 Workshop No.2: design
Slide 6: Synergies
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., 2. Synergies Direct labor: stable and skilled Human resources Managerial and technical team: seasoned and diligent Also at National Highway No.30, more than 10km away from Vinh Hoan: convenient for concentrated m
Slide 7: P&L of Thanh Binh Dong Thap Fisheries 3y forecast 2017-2019
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., P&L of Thanh Binh Dong Thap Fisheries JSC (3y forecast 2017-2019) (VND billion) 2017 2018 2019 Sales 881 1,058 1,269 Deductions - - - Net sales 881 1,058 1,269 Costs of goods sold 778 934 1,120 Gross profit/ (los
Slide 8: Trimming area at Workshop No.1
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., 8 Trimming area at Workshop No.1 - Thanh Binh Dong Thap Fisheries JSC.,
Slide 9: Freezing area at Thanh Binh Dong Thap Fisheries
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., 9 Freezing area at Thanh Binh Dong Thap Fisheries JSC.,
Slide 10: Q&A session No.1
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., Q&A session No.1 Mdm. Khanh added some points on the rationales for purchasing shares at Thanh Binh Dong Thap Fisheries JSC., (“Thanh Binh”): Corporate Income Tax incentive applied to companies in the industrial
Slide 11: Q&A session No.1
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., Q&A session No.1 To fully utilize both workshops at Thanh Binh (i.e. operating at full capacity of 400MT of raw materials per day), how much is the additional capital expenditures? Depends on the products expecte
Slide 12: Q&A session No.1
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., Q&A session No.1 The expected capacity by the end of 2018 will be 300MT/day, that is nearly half of Vinh Hoan’s existing capacity, however Net Profit after Tax is forecast at merely VND 50 billion (~USD2.3m), is
Slide 13: Q&A session No.1
THE RATIONALES AND SYNERGIES OF SHARES PURCHASE OF THANH BINH DONG THAP FISHERIES JSC., Q&A session No.1 Forecast revenue of Thanh Binh will be realized from orders placed with Thanh Binh’s existing customers or Vinh Hoan’s customers? Any conflict? From Vinh Hoan’s customers. We runned out of capaci
Slide 14: Insights into recent Europe claims over Vietnam's pangasius
Insights into recent Europe claims over Vietnam’s pangasius 14
Slide 15: Insights into recent Europe claims over Vietnam's pangasius
INSIGHTS INTO RECENT EUROPE CLAIMS OVER VIETNAM’S PANGASIUS 2008 A French newspaper article described the waters where the fish are grown as “polluted Mekong” 2010 In November 11/2010, World Wildlife Fund (WWF) placed the fish on its Red List of species to avoid for consumers. • In December 2010, af
Slide 16: Insights into recent Europe claims over Vietnam's pangasius
INSIGHTS INTO RECENT EUROPE CLAIMS OVER VIETNAM’S PANGASIUS 2011 A documentary filmed by WWF was aired on the German TV channel. In which, an expert warned “tra fish are being farmed on dirty waters.” 2012 • Vietnamese pangasius exportes strived to achieve global sustainable aquaculture certificates
Slide 17: Insights into recent Europe claims over Vietnam's pangasius
INSIGHTS INTO RECENT EUROPE CLAIMS OVER VIETNAM’S PANGASIUS • In Jan, a report broadcasted on Spanish channel’s Cuatro“ described pangasius as “being raised in 2017 unclean cages and fed with non-industrialised feed like dead fish and other food waste“, and went on to imply this was the reason for l
Slide 18: Vietnam's reaction to Spanish sensationalist TV program
VIETNAM’S REACTION TO SPANISH “SENSATIONALIST” TV PROGRAM 2017 What Cuatro TV intends to broadcast is absolutely not our pangasius industry, which has been providing safe, sustainable and delicious fish products to more than 130 countries worldwide. Mr. Truong Dinh Hoe, VASEP’s secretary general tol
Slide 19: Facts don't support Carrefour position - industry
FACTS DON’T SUPPORT CARREFOUR POSITION - INDUSTRY Pangasius has been in the media again recently, with reports that the fish is allegedly bred in dirty water and may therefore contain bacteria. We at Pittman Seafoods think this is an unfortunate case of misleading reporting. A great 2017 many norms
Slide 20: Facts don't support Carrefour position - certification bodies
FACTS DON’T SUPPORT CARREFOUR POSITION – CERTIFICATION BODIES 2017 The ASC is sorry to see that a few retailers have decided to halt sales of pangasius. When farmed responsibly, and according to robust environmental and social criteria as defined in the ASC Pangasius Standard, buyers and consumers c
Slide 21: Q&A session No.2
INSIGHTS INTO RECENT EUROPE CLAIMS OVER VIETNAM’S PANGASIUS Q&A session No.2 Ms. Nguyen Ngo Vi Tam summarized on recent negative media engulfing Vietnam’s pangasius. In the past, the industry reacted quickly to defense itself, e.g. in 2010, it worked with World Wildlife Fund to remove the fish from
Slide 22: Vinh Hoan's strategies to meet USDA's new regulatory requirements
Vinh Hoan’s strategies to meet USDA’s new regulatory requirements 22
Slide 23: Vinh Hoan's strategies to meet USDA's new regulatory requirements
VINH HOAN’S STRATEGIES TO MEET USDA’S NEW REGULATORY REQUIREMENTS Presentation Ms. Nguyen Ngo Vi Tam presented Vinh Hoan’s strategies to meet USDA’s new regulations (which will be fully implemented from September 2017) Meeting equivalency process: The responsible Vietnam’s government agency (NAFIQAD
Slide 24: Q&A session No.3
VINH HOAN’S STRATEGIES TO MEET USDA’S NEW REGULATORY REQUIREMENTS Q&A session No.3 While FSIS reviews the equivalency documentation submitted by Vietnam, the exports will go on as normal? The shipments will go on normally. During the review process, there will be frequent communications between NAFI
Slide 25: Q&A session No.3
VINH HOAN’S STRATEGIES TO MEET USDA’S NEW REGULATORY REQUIREMENTS Q&A session No.3 How is the change in farming in 2017? There has been a movement from private farming to corporate farming. After some trials with other fish, the farmers started to realize pangasius farming is the most stable and pro
Slide 26: Q&A session No.3
VINH HOAN’S STRATEGIES TO MEET USDA’S NEW REGULATORY REQUIREMENTS Q&A session No.3 Cons: The quality control is first and foremost. Vietnam government also should control border-trade transactions (e.g via issuance of Health Certificate) Payment management: no longer a great concern as many years ag
Slide 27: Q&A session No.3
VINH HOAN’S STRATEGIES TO MEET USDA’S NEW REGULATORY REQUIREMENTS Q&A session No.3 When will it be possible for China to “make it up” for the US? The question itself is wrong as we’re not evading the US. Each market has its own characteristic. Based on a target growth rate, and the potential of each
Slide 28: For further information, contact our IR department
28 For further information, contact our IR department at: ir@vinhhoan.com