VinaCapital Vietnam Opportunity Fund Limited AccumUSD · LSE:VOF
VinaCapital Vietnam Opportunity Fund Limited AccumUSD — VinaCapital Vietnam Opportunity Fund — VinaCapital 2022 Investor Conference
39 slides from VinaCapital Vietnam Opportunity Fund Limited AccumUSD's conference presentation, Oct 7, 2022
Slide 1: 2022 Investor Conference
ké VinaCapital 2022 INVESTOR CONFERENCE Ho Chi Minh City, Vietnam | 5-7 October 2022
Slide 2: VinaCapital Vietnam Opportunity Fund (VOF)
k4 VinaCapital VinaCapital Vietnam Opportunity Fund (VOF) Andy Ho, ClO Khanh Vu, Portfolio Manager 2022 Investor Conference
Slide 3: C L ASSI FI E D : PUBLIC
1 5 2 6 3 7 4 8 C L ASSI FI E D : PUBLIC
Slide 4: VOF invests with a medium to long-term view
y VOF invests with a medium to long-term view, providing investors unique access to Vietnam’s privately negotiated opportunities
Slide 5: $1.2bn AUM, 200+ investments, 20% IRR
$1.2BN 200+ 20% IRR RETURN* ASSETS UNDER INVESTMENTS SINCE AVG PE RETURNS 1 YR : -8.3% MANAGEMENT 2003 SINCE INCEPTION 3 YR : 49.3% 5 YR : 71.5% C L ASSI FI E D : PUBLIC
Slide 6: Over 200+ investments
\d VinaCapital Over 200+ investments... 2 > P NJ ASS oS | : aS © KiD0 GROUP \ZSYEARS YEARS / ! i : AN CUONG’ (wy NGOCNGHIA = Wood - Wort NOVA ials | See HE THONG Y TE Nova = 3 BAL: THUCUC DHG PHARMA 4 KHANG DIEN AIRPORTS Wi mot cue sOng khde dep ho CORPORATION © meMeuOesCnnrenCe dep hie Ke ican tin,
Slide 7: What we got right, what we didn't expect
What we got right, What we didn’t expect
Slide 8: C L ASSI FI E D : PUBLIC
1 5 2 6 3 7 4 8 C L ASSI FI E D : PUBLIC
Slide 9: Vietnam Macroeconomic Review
Vietnam Macroeconomic Review
Slide 10: Resilient GDP growth: 7% to 8% for 2022
Resilient GDP growth: 7% to 8% for 2022
Slide 11: FDI, Manufacturing and Exports, Consumer Spending
\d VinaCapital Foreign Direct Manufacturing Consumer Investment and Exports Spending * FDI disbursements $15bn + Exports +17% yoy. * Domestic consumption is +16% yoy) YTD 9M22. i : 5 y ” ies: Si * PMI consistently above 50 pts. booming. * Top 5 countries: Singapore ; * 43% yoy growth in July, and 25
Slide 12: Stable currency, low inflation, low interest rates
\/ VinaCapital Relatively Moderately Low Interest Stable Currency Low Inflation Rates FX Rate Depreciation (YTD) Inflation-Adjusted Policy Rate Vietnam -4.3% +1.1% Indonesia* -6.2% -1.3% Malaysia -10.3% -2.2% Thailand 12.8% -71% Philippines -13.3% -2.0% * Based on expected 6.5% CPI CLASSIFIED: PUBLI
Slide 13: C L ASSI FI E D : PUBLIC
C L ASSI FI E D : PUBLIC
Slide 14: Regulatory breaches, weak stock market, liquidity contraction
Regulatory breaches Bond Issuance * Investigations into bond issuances by small-cap real estate companies (e.g., Tan Hoang Minh). + Draft Decree 65 tightened bond issuance and distribution activities. Market Manipulation * Investigations and arrests relating to stock price manipulation (e.g., FLC).
Slide 15: C L ASSI FI E D : PUBLIC
C L ASSI FI E D : PUBLIC
Slide 16: Weak investor confidence, rising rates, global slowdown
\d VinaCapital Weak investor confidence Rising rate environment US Fed Rate: +3.25% Margin Lending ° 10,000 EU Central Bank: +1.25% 6.000 6,000 40% VN Interest Rate: +1.0% 9,000 4,000 20% 2,000 Hiking peak - 0% The number of central banks hiking interest rates has increased dramatically in recent mo
Slide 17: C L ASSI FI E D : PUBLIC
C L ASSI FI E D : PUBLIC
Slide 18: VOF invests growth equity in privately negotiated opportunities
VOF invests growth equity in privately negotiated opportunities across listed and private companies. We are long-term, active investors who negotiate significant minority stakes in leading companies in Vietnam.
Slide 19: Downside protections, due diligence rights, risk-adjusted returns
\d VinaCapital Downside Due Diligence Risk-Adjusted Protections Rights Returns * Negotiated terms of * Financial, legal, operational, * Sector analysis: 9 risk metrics investment include profit ESG, and management due including volatility. collateral coverage. options, diligence rights. * Portfolio
Slide 20: % NAV by Entry Method
60% % NAV* by Entry Method 50% 40% 37% 34% 30% 22% 20% 10% 6% 0% Private Equity Private Placement & PIPE Equitisations Stock purchased on Stock Exchange FY17 FY18 FY19 FY20 FY21 FY22 VOF Quickbase Deal Pipeline Dashboard as at 30 June 2022. As at June 2022, almost 80% of the portfolio by entry metho
Slide 21: C L ASSI FI E D : PUBLIC
C L ASSI FI E D : PUBLIC
Slide 22: Performance comparison (total return, USD)
3 years performance comparison (Total return, USD) 120% 100% 80% 60% VOF Public Equities (+54.9%) VOF NAV (+49.3%) 40% VN Index (+32.3%) 20% DB Xtrackers ETF (+8.9%) 0% VanEck Vietnam ETF (-8.2%) -20% -40% Dec 19 Mar 20 Dec 20 Mar 21 Dec 21 Mar 22 Jun 19 Jun 20 Jun 21 Jun 22 Sep 19 Sep 20 Sep 21 C L
Slide 23: Steady, Long-term Performance Over Years
\d VinaCapital f Steady, Long-term Performance Over 19 Years 1000% 900% 800% 700% VOF NAV +782%, 600% or +12.5% p.a 500% 400% 300% 200% 100% 0% T T T T T T T T T T T T , , , , , , Dm e® © CB LK Oo PQ > > 3 : » > J ef —VOF NAV (STR) Source: Bloomberg, VinaCapital. Annualized returns up to 30 June 202
Slide 24: Annualized return versus volatility
Higher returns 18.0% VN Index volatility: 7.7% 16.0% VOF Peer 1 14.0% $1,188m 14.3% $2,036m 14.2% Annualized return 12.0% Peer 2 $359m 11.7% 10.0% $712m Peer 3 10.6% VN Index return: 9.8% Peer 4 8.0% $303m 7.8% 6.0% 4.0% Lower returns $263m DB Xtrackers 2.9% 2.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%
Slide 25: Liquidity of underlying assets
High DB Xtracker $263m Peer 4 $303m Liquidity of underlying assets Peer 2 $359m VNM US Equity $415m Peer 1 Unlisted $2,036m VOF 3.0% Private Public Equity $1,188m Equity (10.3%) Peer 3 $712m with Listed Private… Equity Unlisted (59.4%) Listed Equity 97.0% (10.6%) Low Private Equity Capital $210m Ter
Slide 26: Portfolio Review — Investments and Divestments
Portfolio Review — Investments and Divestments
Slide 27: Hoa Phat Group (HPG) trim
VinaCapital CLASSIFIED: PUBLIC Current NAV: $101m PE investment since: 2007 IRR (realised + unrealised): 20% Investment thesis * HPG benefits from the strong growth of the domestic economy, where demand for construction materials remain high. Why did we trim? Reduced our position in HPG in 2020-2021
Slide 28: Divestment: Ngoc Nghia Industry (UPCoM: NNG)
y \d VinaCapital Divestment: Ngoc Nghia Industry (UPCoM: NNG) CLASSIFIED: PUBLIC Exit Proceeds: $26m Invested period: 2019 - 2022 IRR (realised): 18% Investment thesis * NNG was a PE investment into the leading privately-owned PET producer in VN. Why did we exit? Operational, capital and governance
Slide 29: Investment: Project Norfolk II
y \d VinaCapital Investment: Project Norfolk Il (Public Equity with Private Terms) Ni vA LAND CHO CUOc SONG BUNG SANG CLASSIFIED: PUBLIC Current NAV: $57.1m Invested since: 2020 (2yr) IRR (expected): 20% to 25% Investment thesis + Norfolk is a leading residential developer. + Follow-on investment af
Slide 30: Investment: industrial logistics, $100m total
VinaCapital CLASSIFIED: PUBLIC Investment: $100m total $55m VOF (2yr) Investment type: Public Equity with Private Terms Expected IRR: 17% - 25% Investment thesis + Public Equity with Private Terms investment into leading VN industrial logistics company, with downside protections. * Strong recovery i
Slide 31: Portfolio Sectors and Top Holdings
Portfolio Sectors and Top Holdings
Slide 32: Sectors: Rebalancing key sectors based on risk-returns
y \d VinaCapital Sectors: Rebalancing key sectors based on Risk-Returns m Current Allocation * W Aug 2022 (2021 - 24) 9g ) 30% 26% 50 25% 500% 22% 20% 19% 15% 15% 15% 10% 10% 9 10% ° ° 2% 8% 50 5% 6% 6% 6% 6% 5% 3% 3% 2% 2% 0% 0% 0% o $ 2 > a g > < & 5S 2 Ss 3 3 ¢ @ ki 5 = S é 3 a s 5 uw g = 5 x E a
Slide 33: VOF's weight and sector returns FY22
VOF’s weight Sector Return FY22 (%) Weighted Contribution to (%) Performance (%) 27.0% Real Estate -3.2% (with share price change %) 19.3% Financials -17.6% PNJ 15.5% 15.4% Materials -20.8% FPT 18.7% 9.8% Consumer Staples 19.2% QNS 16.4% 8.2% Industrials 1.8% ACG 16.3% 6.5% Consumer Discretionary 12
Slide 34: Top 10 Public Equities and Private Equities
NAV Unaudited Top 10 Private Equities and NAV Unaudited Top 10 Public Equities Investments1 USDm %NAV Public Equities with Private Terms2 USDm %NAV 1 Asia Commercial Bank (ACB) 136.4 11.5% 1 Norfolk II (NVL) 58.0 4.9% 2 Khang Dien House (KDH) 126.6 10.7% 2 An Cuong Wood Working (ACG) 45.9 3.9% 3 Hoa
Slide 35: Dividends and Discount Management
Dividends and Discount Management
Slide 36: Historical VOF share price discount and dividends
USD Historical VOF Share price discount Dividend per share Dividend amount Record date 10.0 50% (US cents) (USDm) 25 August 2017 4.8 9.6 8.0 40% 3 November 2017 4.8 9.5 6 April 2018 5.5 10.8 6.0 30% 2 November 2018 5.5 10.4 5 April 2019 5.5 10.2 4.0 20% 1 November 2019 5.5 10.1 14 April 2020 5.5 9.8
Slide 37: Outlook: How We Invest in a Challenging World
Outlook: How We Invest in a Challenging World
Slide 38: Volatility in markets, negotiated terms, quality and growth
\d VinaCapital Volatility in Negotiated Quality & markets terms growth s L TCl age HE THONG Y TE THUCUC = ACB >PNJ CLASSIFIED: PUBLIC
Slide 39: Disclaimer
DISCLAIMER The information contained herein has been prepared by VinaCapital (the “Company") and is subject to updating, completion, revision, further verification and amendment without notice. The information contained herein has not been approved by any listing authority or any investment regulato
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