VinaCapital Vietnam Opportunity Fund Limited AccumUSD · LSE:VOF
VinaCapital Vietnam Opportunity Fund Limited AccumUSD — VinaCapital Vietnam Opportunity Fund — Frostrow Investment Conference 2023
43 slides from VinaCapital Vietnam Opportunity Fund Limited AccumUSD's conference presentation, May 2023
Slide 1: VinaCapital Vietnam Opportunity Fund Investor Update May 2023
4 VinaCapital VinaCapital Vietnam Opportunity Fund LSE: VOF.LN 1, + Investor Update May 2023 race ee an Sy
Slide 2: Vietnam's Most Diversified Investment Manager
VinaCapital Vietnam’s Most Diversified Investment Manager
Slide 3: VinaCapital at a glance
ASSETS UNDER MANAGEMENT nines \d VinaCapital k/ VinaCapital Our mission: To enable our investors to prosper by capitalising on Vietnam’s rich opportunities. 20 Yrs INVESTING IN VIETNAM reyes” 4] PROFESSIONALS, GLOBAL IMULTI-ASSET TF 200+ EQUITY, FIXED INCOME, PRIVATE EQUITY; VENTURE CAPITAL, REAL ES
Slide 4: Partner of Choice For Global Alternative Investors
y \d VinaCapital VinaCapital: Partner Of Choice For Global Alternative Investors Real Estate / Hospitality > STARR INVESTMENT HOLDINGS WARBURG PINCUS © Classified: Internal Energy Infrastructure <*> eprF S GS Energy Venture Capital ro MIRAE ASSET Capital fa DFJ NAVER
Slide 5: Responsible Investing & ESG Integration
y \/ VinaCapital y Responsible Investing & ESG Integration Responsible Investing is at the core of what we do Collaborate Q Screening and Research Principles for Accounting for a Responsible Sustainable Future _ oo! Investment y= Investment Decision ws DIFC [EEE n Stewardship Performance Standards E
Slide 6: Empowering Our Community Through the VinaCapital Foundation
y \d VinaCapital Since 2006, Empowering Our Community — 4) yvinaCAPITAL Through the VinaCapital Foundation <7 FOUNDATION Find out more at: https://vinacapitalfoundation.org OUR ACHIEVEMENTS, We touch the lives of thousands of Vietnamese every year. Since 2006, VinaCapital Foun % (xd SG? 2) 6,315,445
Slide 7: Why Vietnam?
Why Vietnam? Invest in one of the world’s most dynamic and potentially most rewarding markets
Slide 8: Vietnam's Growth Drivers - Unchanged by Covid-19
y \d VinaCapital Vietnam's Growth Drivers - Unchanged by Covid-19 Classified: Internal Strong GDP growth with stable macro backdrop Rising manufacturing hub with strong FDI inflows Strong exports thanks to several Free Trade Agreements Government’s commitment to infrastructure development Rapid urba
Slide 9: One of the World's Fastest Growing Economies
\/ VinaCapital One of the World’s Fastest Growing Economies Strong GDP YoY Growth (%) Average Growth 8.0 8 2010 - 2019 +7% 6 5. 4 2 0) N N fo} N Sources: General Statistics Office, Bloomberg, VinaCapital research & analysis 202 a |; 2011 2012 201 2014 2016 2016 2017 2016 201¢ 2020 2021 Classified: I
Slide 10: Vietnam's GDP Growth: 8.0% in 2022, 5.25% in 2023F
Vietnam’s GDP Growth: 8.0% in 2022, 5.25% in 2023F 2022 1Q23 2023F Pre-COVID (yoy) Average* GDP +8.0% +3.3% +5.25% +7.0% Retail Sales +15.6% +10.3% +9.0% +9.0% Manufacturing +8.1% -0.4% -2.0% +12.0% Infrastructure 4%/GDP 4%/GDP 5%/GDP 3%/GDP Spending Tourist Arrivals ~20%/Pre-COVID ~60%/Pre-COVID 60
Slide 11: Stable Macro Environment Supporting Stable Prices
\d VinaCapital Stable Macro Environment Supporting Stable Prices Manageable Inflation - ASEAN CPI (y-o-y, %) 8 6 4 2 0 -2 -4 5 ° § § gq oO oO ° } oO ay a 3 fa & a & — Vietnam ---- Indonesia Malaysia ceeeee Philippines —-—-Thailand Classified: Internal S0U"Ces: General Statistics Office, Bloomberg, V
Slide 12: Stable Currency with Potential for Short-term Appreciation
y \d VinaCapital Stable Currency with Potential for Short-term Appreciation VND Exchange Rate (LHS) vs DXY Index (RHS) Stable Currency (VND) with Potential Short-term Appreciation 105 26,000 7 100 2 25,000 ) 107 95 24,000 \ 102 90 poh, 97 85 23,000 ae Wy 92 80 22,000 87 0 75 Mul! 21,000 hind” - 70 2
Slide 13: Strong FDI Inflows Attracted to Skilled, Low-cost Labour
\d VinaCapital Strong FDI Inflows Attracted to Skilled, Low-cost Labour Registered & Disbursed FDI by Year (USD bn) 30 USDbn ‘iii: Ca Se SHELL EK LLL KML mam FD! Disbursement mmm FDI Registered (exl. Purchased stocks) —— %yoy FDI Disbursement (RS) Sources: MPI, General Statistics Office, JETRO, Vina
Slide 14: Rising Manufacturing Hub with Strong FDI Inflows
\d VinaCapital Rising Manufacturing Hub with Strong FDI Inflows Vietnam’s Top FDI Countries (USD bn) Country's share of FDI 10,000 SG: 33.9% ON: 12.8% HK: 10.0% 8,000 KR: 9.6% TW: 8.2% 6,000 4,000 2,000 ce) t+ wo Ke} Nu ioe} D Oo w int o 6 565 56 65 5 § fs § x nN N N N N N a N a 6 Singapore China HK
Slide 15: USDbn Sources: GiHub, The World Bank, MPI, General Statistics Office Classified: Internal
USDbn Sources: GiHub, The World Bank, MPI, General Statistics Office Classified: Internal
Slide 16: Classified: Internal
13% 26% Classified: Internal
Slide 17: Classified: Internal
• • – • – • • – • – Classified: Internal
Slide 18: Declining Demand for "Made in Vietnam" Products
y \d VinaCapital Declining Demand for “Made in Vietnam” Products 30% Exports yoy 20% . 7 ll l -10% | -20% Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 2M23 Mar-23 ° Vietnam Exports to The US: * Slowing Exports in Asia: 1Q 2022 +13% — Exports in Taiwan/Korea circa -20% 1Q 202
Slide 19: Source: US Census Bureau Classified: Internal
Source: US Census Bureau Classified: Internal
Slide 20: Vietnam's Central Bank Cut Policy Interest Rates in March 2023
y \/ VinaCapital Vietnam’s Central Bank Cut Policy Interest Rates in March 2023 * Vietnam Cut Policy Interest Rates by -50bp, to 5.5% * Policy Rate Cut Enabled by: - VN Dong Appreciation, over 1% YTD - Modest CPI Inflation (~3-4% yoy) * Bond Yields Plunged...But 1Y Bank Deposit Rates only Fell 50bp
Slide 21: How to Boost Growth in 2023
y \/ VinaCapital How to Boost Growth in 2023 1) Bank Deposit Rates | circa-200bp - Would Help Revive the Real Estate Market 2) Infrastructure Spending / Fiscal Stimulus - Up Circa 20% YoY in Q1 - Vietnam has Ample Fiscal Capacity to Boost Spending Over $30b of Unspent Funds for Infrastructure Develo
Slide 22: VinaCapital Vietnam Opportunity Fund (VOF)
VinaCapital Vietnam Opportunity Fund (VOF) FTSE250 Investment Company with 20 years experience in Private Equity opportunities
Slide 23: VOF key facts: dividend yield, buybacks, independent board
% >$350M BOARD DIVIDEND YIELD SHARE BUYBACKS FULLY INDEPENDENT SINCE 2016 SINCE 2011 BOARD Classified: Internal
Slide 24: VOF's Investment Strategy
\d VinaCapital VOF’s Investment Strategy What we do? VOF invests growth equity in privately negotiated opportunities across listed, private equity and SOE assets. We look for value and invest on fundamentals. We do not take small positions or invest with a short-term view. We are an active investor
Slide 25: Investment Criteria. What we look for in businesses
\d VinaCapital Investment Criteria. What we look for in businesses Scale Gig Focusing on sectors and industries that present considerable headroom for growth, be it in manufacturing scale or market share growth Management Alignment Tél jHucUC Capability and integrity of sponsors, and alignment of in
Slide 26: What do our typical investments look like?
y \d VinaCapital What do our typical investments look like? $25 - $75 million TICKET SIZE Fewer investments, larger in ticket size, accretive to NAV. 12% - 25% EXPECTED (MODEL) IRR Individual investments are priced to yield at least this much. However, the portfolio as a whole, is expected to yield
Slide 27: Performance and Market Update
Performance and Market Update f
Slide 28: VOF long-term performance through volatility
VOF seeks to deliver long-term performance, particularly during \/ VinaCapital periods of volatility, through our strategy and portfolio holdings 1-year performance 0% g---------------------- 5% RE and Bond Market Crackdown 10% 15% -20% -22.9% -25% -26.6% -29.4% -30% -35% -40% -45% Jul 22 Mar 22 May
Slide 29: Performance Contribution FYTD 2023: Asset Class and Sector
\d VinaCapital Performance Contribution FYTD 2023: Asset Class and Sector i. . lo Portfolio Average Weight by Asset Class (%) VOF NAV by Sector (%) 11.0% 10% | @ Public Equity 24.4% 18.0% PEPT 20.1% Private Equity 137% B7% 8.5% Weighted Contribution to Performance by Asset Class! (%) 71% 0.0% 6.8% -
Slide 30: Fast Growing Financial Market, With Attractive Valuation
y \/ VinaCapital y Fast Growing Financial Market, With Attractive Valuation Market Size Has Grown 10x over 10 Years Market Capitalization (USD bn) 256 177 170 142 45 124 66 63 40 46 S| 40 A 44 M1 22 3s 30 20 a Wo Bee be be be ke EEREEEI i | 6 av Ro RS © © K RS ) £ > vy £ a oe & oy oe & oe oe & a § m
Slide 31: Source: Bloomberg Source: Bloomberg
Source: Bloomberg Source: Bloomberg Classified: Internal
Slide 32: Source: Bloomberg, VinaCapital
Source: Bloomberg, VinaCapital ▪ Classified: Internal
Slide 33: Source: Bloomberg Classified: Internal Source: Bloomberg
Source: Bloomberg Source: Bloomberg ▪ ▪ Classified: Internal
Slide 34: o o Classified: Internal
• • o o • • Classified: Internal
Slide 35: Investment holdings update
Investment holdings update
Slide 36: Classified: Internal
\/ VinaCapital 36 %L\ I sveuro pue YVO- yseg vce ABsauy VLE os vs oes "sig Jawnsu0g . 2 %S9 O 3 ao AQ = ns eo (oe) > WIS =z N 2 3 °° Qa fo) %S 8 syeasnpuy > WEB 2s ‘21g saLuNsuo! - RGEC ° % oc speuaye| S YWySL EUSTeIN o 02 TT ou, WoL o) >? en ayelsq |es! + WE LE ates (9) 2 a) wif 58 ¢ as Kv0- BB © g
Slide 37: Portfolio: Top Public Equity and Private Equity holdings
\/ VinaCapital Portfolio: Top Public Equity and Private Equity holdings 31 Mar 2023 (includes valuation adjustments) , . 4 NAV Top 10 Private Equity including NAV Top 10 Public Equity Investments usDm %NAV Public Equity with Private Terms? UsDm %NAV Asia Commercial Bank (ACB) 141.2 13.7% | Tam Tri M
Slide 38: Indicative Private Equity Investment Pipeline
\/ VinaCapital Indicative Private Equity Investment Pipeline Implied Instrument/ Projects Sector Equity Value DealSize Stake Classification Current Status (post-money) Equity / Privatel : 1 Houston Financials $2.1b $50m 2.3% q negotiated y Preliminary deal terms 2 Toronto Industrials TBC TBC TBC Pre
Slide 39: Sector Allocation based on Risk-Adjusted Returns
\/ VinaCapital “Target m 31-Mar-23 %G ! L— ~~ {Goj0uyoo | UOITEWOJU] »os i 1-5 Areuoljas9SIG JBWUNSUOD yoo areo yyeaH sjeLsnpu| sa|deys sewinsuog severe sjeloueul4 eyeysy yeey Sector Allocation based on Risk-Adjusted Returns Medium-to-long term view on target sector weight 1. Sector weight on AUM (i
Slide 40: Governance and Fee Reduction
Governance and Fee Reduction
Slide 41: Board of Directors
Huw Evans Julian Healy Kathryn Matthews Peter Hames Hai Trinh Chairman Audit Chair Classified: Internal
Slide 42: Reduction in Overall Fees effective July 2023 - Highlights
y \/ VinaCapital Reduction in Overall Fees effective 1 July 2023 - Highlights Fee Item Previous Effective 1 July 2023 Tiered, 1.5% for first USD500m Management Fee (Effectively 1.37% for first USD1bn) Incentive Fee 12.5% Annual Hurdle Rate 8.0% Minimum holding period for new shares purchased! Tyear
Slide 43: Contact
ANDY HO KHANH VU Managing Director and Deputy Managing Director Chief Investment Officer Investments andy.ho@vinacapital.com khanh.vu@vinacapital.com Classified: Internal
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