Masan Consumer Corporation

Group 7

Masan GroupMasan Group

Masan ConsumerMasan Consumer

Masan Consumer’s SuccessesMasan Consumer’s Successes

Reasons for these SuccessReasons for these Success

Major ProblemMajor Problem

Recommendations for problemRecommendations for problem

Summary

Masan Group (HOSE: MSN)

. .

77.7% 77.7% 30.4%

Nguyen Dang Quang,Chairman & CEO

Vietnam's premier private sector group

Masan Consumer

Masan Food Corp. (MSF)

• Founded in 2000,

• Based in Ho Chin Minh City , Vietnam

Masan Consumer Corp. (MSC)

• Operates as a subsidiary of Masan Group

• Changed its name into Masan Consumer in August 2011

Masan Consumer

Masan Consumer Corporation

(Công ty c ph n hàng tiêu dùng Ma San)ổ ầ

Company type: Fast Moving Consumer Goods (FMCG)

company

Products: Food & Beverages

Revenue (in 2012): VND 10, 389 billion

Net profit (in 2012): VND 2, 850 billion

Masan Consumer Slogan: “First choice of every Vietnamese people” Logo

Number of employees: 5,298 people Headquarters: 12th Floor, Kumho Asiana Plaza Saigon,

39 Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Masan Consumer

Ownership Structure & Key Management

Madhur Maini(Chairman & CEO of

Masan Consumer Holdings)

Truong Cong Thang(CEO of Masan Consumer)Pham

Dinh Toai

Deputy CEO & Deputy

CFO

Jeremy R. Clarke

Chief Operations

Officer

Deepak Gulati

Chief Marketing

Officer

Masan Consumer

• Kohlberg Kravis Roberts (KKR) established in 1976

• Leading global alternative asset manager

• Offices: New York, Washington D.C, London, Paris, Hong Kong, Beijing, Seoul, Tokyo & Dubai, etc.

• Founded in 1913

• Products: curry, seasonings, spices, packaged foods, drinks, foods, snacks, etc.

• Offices: Japan, China, Taiwan, U.K. & U.S.

Masan Consumer

Goal

Improving Vietnamese people’s spiritual &

material lives each and every day.

Vision

To be Vietnam’s leading consumer company

To be a symbol for quality & a source of pride

among Vietnamese

Masan Consumer

Important Role in Vietnam’s Future

Products are essential items of daily Vietnam

E.g.: Sauces, instant noodles, instant coffee

Attracted to many foreign investments

Creating more jobs

Increasing GDP

Increasing more cash flows into Vietnam

Strong performance: impressive growth in instant noodles,

successful implementation of up-trading strategy in fish

sauce & strengthened market position in instant coffee.

#1 in fish sauce and soy sauce with over 75% market share

#1 in instant coffee with approximately 40% market share

Masan Consumer’s Successes

Masan Consumer is one of the leading diversified consumer

products companies in Vietnam with leading market positions.

Masan Consumer’s Successes

Masan Consumer Corporation has

got High-Quality Vietnamese Goods

award yearly from 2005 to present

All of brands in Masan Food Corporation

got Food Safety & Hygiene Gold award in

2009 from Ministry of Health

Masan Consumer’s Successes

Masan’s instant coffee and Chin-Su fish

sauce, soya sauce got the Trust & Use

Vietnam’s Product award in 2010

Masan’s instant noodles and soya

sauce get the Vietnam’s Delicious Dish

in 2010

Masan Consumer’s Successes

Reasons of These Successes

Unparalleled Brand Equity

Extensive Distribution Network

Efficient Manufacturing Facilities with the

Highest Quality Standards

Extensive Experienced Management Team

Major Problem Too many M & A deals

Having difficulties in developing sustainably and equally all profitable products as well as potential brands

KKR• Bought a 10% stake in

Masan Consumer

Masan Consumer

• Acquired a majority stake in Vinacafé Bien Hoa (50.25% stake)

Masan Consumer

• Acquired a majority stake in Vinh Hao Mineral Water (63.5% stake)

Recommendations

Focusing on the present profitable products

and brands in order to keep the leading

market share.

Advertising

Sales Promotion

Customer Service

Recommendations

Having clear & detailed market analysis to

build successful strategies for new brands and

products.

Helping to accelerate brand growth & using

customer’s insights as the basis of critical

strategic decisions.

Recommendations Issuing shares to employees (ESOP) 2013:

Issuing 17.86 million shares of ESOP for 28 employees Worth nearly 178 billion in nominal

value (10,000 VND/share). In reality, the total market value of shares:

1,950 billion.Þ Increasing the total number of shares of MSN:

from 687.2 to 705.1 million sharesÞ Net revenue 14700-18100 billion VNDÞ Profit after tax reached 3650-4600 billion VND

.

Principles for determining

the number of shares

40-50%

50 – 60%

Role

Position

Job performance

Business initiatives

Production brings positive results.

Increase sales

Reduce production costs

Recommendations

.

Benefits

For employees

For company

Increasing the percentage ownership

Encouraging teamwork and the contributions.

Noting the results of managers’ work performance,

creating motivation to complete the task

Attracting and retaining excellent employees.

Does not have to reward by cash.

The leaders avoid more than 500 billion of income tax

Recommendations

Reference IFC, ‘Masan Consumer – Environmental & Social Review

Summary’, Investment Project, last viewed 12 November 2013, World Bank Group.

<http://ifcext.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/27afb1d9e531325885257b6400539be7?opendocument>

Masan Consumer 2013, 2012 Annual Report, 20 April, Masan Group

<http://www.masangroup.com/static/uploads/downloads/msc_ar_2012.pdf>

Masan Consumer, Our people, last visited 11 November 2013, Masan Group, Ho Chi Minh City.

<http://www.masangroup.com/masanconsumer/en/our-people>

Contact

Masan Consumer

Address: 12th Floor, Kumho Asiana Plaza Saigon, 39 Le

Duan Street, District 1, Ho Chi Minh City, Vietnam

Tel: (84) 8 625 55660

Fax: (84) 8 381 09463

Website: http://www.masanconsumer.com

http://www.masangroup.com/masanconsumer