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APPENDIX

w Listing

uy

e price: 16et price: 21

el Kokalari, CFAel.kokalari@ma 38386647

Information ption:

Issued (m): Cap (VND b):

Avg Daily Turnover x: at (%):

Shareholders: (%) reka)

n Xuan Quang et (Goldman Sachs

hanh Phong

dicators

annualised (%) sh ($ m): r (UScts): cover (x):

I FOR IMPO

6,800 1,000

A aybank-kimeng

(VND):

s)

ORTANT DI

.com.vn

NLG 95.5

1,614 n/a 480

44

16.3 14.9

9.1 8.9

8.1 n/a

16,113 4.3

ISCLOSUR

NaViet

VietnaIkea, tclass. costs compemaximlandba

“Ehomhas re60/sqmand lopractic

Blue-cIreka (regard59%. has thwith ov

AffordVietnaestate $700/sNLG hlong-teavailab

Stock NLG sbecausreal esdeliverrecognNLG aNam LFYE DeRevenuEBITDANet ProRecurriEPS GrDPS (V

PER (x)EV/EBIDiv YielP/BV (x

Net geaROE (%ROA (%Source:

ES AND AN

am Lotnam’s “am’s best athe Swedish Both compa(NLG’s co

etitors), and mise consumank which wi

me” brand aesulted in wim apartmentook like theycal designs.

chip investo(a Malaysianded local PE

Those well-he best manver 20 years

dable housinam is sufferin

prices fell 2sqm) nearly whas been sherm outlook bility of mortg

price at c.4sold off aftese of falling state. But pred to custonised. The hacquired landong Group –

ec (VND b)ue A ofit to Shareholdng Basic EPS (rowth (%)

VND)

) TDA (x) ld (%) x)

aring (%) %) %)

Company, May

NALYST CE

ong G“Ikea” offordable re maker of aanies use a nstruction cboth design

mer satisfactll generate re

apartments despread res that cost $

y came out o

ors: Goldman real estateE firm) own 3-known firmsagement an’ experience

ng: stable sng from the a0-30% in 20within reach rinking unit is bright, dr

gages, still in

45% discouer its recent

revenue in profit is set omers, and igh P/B ratio

d at low priceSummary Ea

ders VND)

ybank KE estim

ERTIFICATIO

Groupof Affordeal estate daffordable, st

systematic pcosts are mn their prodtion. Also,evenue for th

and homesecognition of$25,000-60,0of an Ikea c

an, Ireka an developer) 32% of NLGs invested innd corporate

focusing on

short-term, fafter-effects o12, bringing of middle-cl

sizes rather riven by demn their infanc

nt to NAV dt listing on FY12, a higto jump as

revenues o compared es years agoarnings Table

2009 201631 84215 24159 18

1,843 2,02 9

237 35

9.2 87.5 61.6 11.4 2

18.7 335.9 1813.6 7

ates

ONS

V

p dable Ho

eveloper. Ntylish furniturproduction pmore than ducts to min Nam Long

he next 10 ye

s. High custof NLG’s Eho000, take 1-1catalogue, w

d Mekong. and Mekong

G, and found Nam Long governance

affordable h

fantastic lonof a propertyaffordable h

lass office wthan cutting

mographics cy in Vietnam

despite impthe HCMC

gh P/B and ppreviously sfrom those to peers is , increasing e 10 2011 40 734 47 124 87 107 21 1,161 .7 -42.6

56 533

.4 14.6

.5 15.2

.3 1.3

.1 3.2

.9 26.6

.0 8.9

.8 4.0

23 Apri

Vietna

ousing Nam Long isre for the m

process to co20% below

nimise costs g has a 5ears.

omer satisfaome brand o1½ years to

with their ele

Goldman Sag Capital (a ders own anopartly becau

e in the induhousing.

ng-term outly bubble, buthousing (i.e.. workers. Noteg its prices. and the gro

m.

roving revestock excha

pessimism asold products

prior salespartially becits relative P

2012 20462 88 25

258 1-77.8 3

400

65.5 24.3

1.3 2.4

41.3 2.0 0.8

il 2013

am

s like middle ontrol w its

and 67ha

action f 40-build gant,

achs, well-other use it ustry,

look. t real sub-

e that The

owing

enue. ange about s are s are cause /B.

013F779 202 107

1,121 334.7

400

15.1 10.9 1.2 2.4

43.1 8.1 3.4

23 Aprril 2013

Project

WaterpointAquamarinNorth SaigoEast Gate Nam Long The BridgeWest SaigoCaptial TowCasa Oceana / HThe GolfvieCamellia GThe Green

Notes: 1)landbankValuationthe Comp

Land

t Township (inc ne Residences on Residences Residential Are

eview on wer

Ho Tram ew

Garden hill

Total

We have onlyk is 567ha, oven section belowpany Overview

Acquisition

An Thanh Res.

ea I, II, III

y listed the coer 85% of whicw. 3) The MBw section belo

PlanniZon

Key P

City/Provin

) Long An HCMC Binh DuongHCMC Can Tho HCMC HCMC HCMC HCMC Vung TauHCMC HCMC HCMC

mpensated lach is fully com

BKE valuation nw for maps wi

Skille

Nam L

•

•

•

•

•

ing and ning

Projects a

nce District

Ben LucBinh Cha

g Vinh PhuDist 9 Cai RanDist 7 Binh TanDist 7 Dist 9 Xuyen MDist 9 Binh ChaDist 9

and area for eampensated. 2)

numbers abovith the location

ed at the E

Long excels a

Land acqsuburban r

Planning ample amapartment constructio

Product elegant destrategy”).

ConstructLong’s owcosts and

Marketingthan cut prto maintain

More detai

Product D

and Invest

C

c Dist anh Dist u

g Dist

n Dist

Moc

anh Dist

ach of Nam LoDetails about

ve are for NLGns of the abov

Entire Affo

at each phas

uisition: thisreal estate d

and zoningmenities su

buildings mon costs dow

design: Staesigns keep

tion: An in-hwn standardquicker turn

g and salesrices in the an affordability

ils appear in

Design

tment Prop

leared Area (ha)

390 37 13 17 66 2 6

1< 6

17 1 6 1

ong’s projects t Maybank KimG’s ownership ve. All are loc

ordable Ho

se of the affo

s is where mevelopment

g: NLG’s welpport sales

make zoning wn.

andardisationcustomer sa

house team dised unitsaround time

s: the compaaftermath of Vy.

the ‘Compa

Constructio

perties

NLG Own.

100% 100% 100%

40% 100% 100% 100% 100%

45% 100% 100%

45% 100%

above. The cm-Eng valuatio

interest in theated in the so

ousing Va

ordable hous

most of the vain Vietnam.

ll-designed cs. Its 9-sto

approval qu

n keeps coatisfaction hi

experiencedensures low

es.

any shrank Vietnam’s re

ny overview

on

Nam Long G

MBKE Val

97,796 22,727 21,704 11,541 10,988 10,255 9,438 6,537 5,179 5,151 4,241 4,090 2,731

212,380Source: Nam

company’s toton appear in the project. 4) Suth of Vietnam

alue Chain

ing value cha

alue is create

communitiesorey (or louicker, and

osts down wgh (i.e. the

at building wer constru

unit sizes raeal estate bu

’ below

Sales and Marketing

2 of 25

Group

. ($k)

6 7 4

8 5 8 7 9

0

0 m Long

tal he

See m.

n

ain:

ed in

with ower) keep

while “Ikea

Nam ction

ather bble,

23 Aprril 2013

Nam L

Nam Lafforda20% bconstrbuildin

The comarginprojectNLG’sweakthose quality

This ahousinscale surroudepresbuildin

We exthe futare on

Low G

Some luxuryhousinas invewould

1)

2)

3)

Note develodevelodeveloprices.

The tybeen aprices

Long’s Strat

Long’s extenable housingbelow thoseuction busin

ng Nam Long

ompany’s sun (of c.20%ts, while pr strategy is markets by savings on

y materials, b

approach mang developmup will win

unding the ression in the ng Vietnam’s

xpect Nam Lture, given t

n.

Gross Margi

of NLG’s dreal estate

ng developmestment as obe. We und

In any prodifferentiatNam Long

The luxurya glut of saffordable Estate Out

According for sale isegment –market is fdemand inflipped the

that our esopment in Vopment refeopment activ.

ypical, reporas high as 4since the tim

tegy: Compa

nsive experieg. The come of its comness; its in-g’s own stand

uperior efficie%) as other roducing higto foster thesaving moto custome

better amenit

akes sense bment is a vol

market shaecent real eaftermath ofsuburbs ove

Long to be ahe trajectory

ns in Afford

etractors podevelopme

ent (c.30% vowning the stderstand that

oduct marketted products

g has chosen

y real estate supply for y

housing matlook” below)

to CBRE, onn HCMC th– but we gufor lower-pricn the luxury e wrong way

stimate of Vietnam of c

r to the grity and not to

rted gross m40-50% in recme the land w

arable Marg

ence has mapany’s cons

mpetitors du-house teamdardised, cos

ency allows idevelopers

gher-quality e sales of itsney on conrs in the forties, etc..

because lonume game.

are over timestate bubblf the bubbleer the next 1

a much largey that both th

dable Housin

oint out that nt are much

vs 20%), so Ntock of an upt argument b

t, there are ts and low man the latter

market in Vyears to comarket is act).

nly about 30%his year areess that 70%ced units. It

and affordaaround !

gross margc.20% vs abross profit o profits attrib

margins of dcent years bwas acquired

gins, but Hig

ade it an effictruction cost

ue to a vertm has yearst-efficient de

t to earn a cs on its affproducts.

s products instruction corm of better

g-term succeThose who

me – especiale subsides ) and the m0 years sets

er company he company

ng

the gross ph higher thaNam Long ispscale develout would poi

two strategieargin, mass-v

ietnam is likeme, while theually quite g

% of the newe in the aff% of the reaseems to us

able markets

gins for affoout 30% or margin for butable to an

developers ibecause of thd.

Nam Long G

gher Quality

cient products are more tically integr

rs of experiesigns.

comparable gfordable houIn other wo both strong

osts and pasr designs, h

ess in affordare equippe

ally as the(as well as

undane realin.

at some poy and the co

profit marginan for affords not as attraoper like VICnt out that:

es – high-mavolume prod

ely to suffer e outlook fogood (see “

w apartment fordable houal demand ins that supplys are compl

ordable houmore for luthe real e

n increase in

in Vietnam he run-up in

3 of 25

Group

y

cer of than

rated ence

gross using ords,

g and ssing igher

dable ed to hype s the ity of

int in untry

s for dable active C, etc

argin ucts.

from r the “Real

units using n the y and etely

using uxury state land

have land

23 Aprril 2013

ActuaProjec West SNorth SThe Br An ThaNorth S An ThaNorth SNam LNam L

al & Projectedct

Saigon Ehome Saigon ridgeview

anh ResidenceSaigon

anh ResidenceSaigon

Long ResidentiaLong Residentia

d Sales to Cu ApaEhoEhoEho

Ho

es An Nor

Lan

es An Nor

al Area NL al Area NL

Nam L

In 201Binh Tyear itlaunch

Sales the slosizes sales.day thwhich

We beout, bupick uexpectwhich quarte(in $ ‘0

stomers for 2

artments ome 3 ome 4: North Saome 5: Bridgevi

uses (includinThanh Residenrth Saigon (Binh

nd plots Thanh Residenrth Saigon (BinhResidential AreResidential Are

Total revenu

The safollowidisclosto be t

Actual Units so

ApartmeHouses Land plo

Reven

The corule chand FYdevelo

Long’s Busi

2, Nam LongTan district at will launch h Ehome 8 an

of all real eow market, band excelle For examp

he project wawas launche

elieve sentimut interest ra

up a bit mort both of thoshould help

erly sales res000).

2013, $k

aigon ew

g townhouse &nces h Duong)

nces h Duong) ea I ea I

ue

ales results/ng unit salese unit salestoo commerc

& Projected old

ents (including town

ots (sqm)

nue and Pro

ompany’s FYhange that dY12. The ru

opers to hold

ness Outloo

g launched tand Binh Duthe sales ofnd 9.

state develobut the Nam

ent brand naple: the comas launched ed in August

ment in the afates need to re for a robose conditionsupport Nam

sults/projectio

Q

2,

& Villa)

2,

6,

/projections s estimates

s by individucially sensitiv

Unit Sales to

nhouse & Villa)

ofits Reboun

Y13 and FY1depressed Nle change, wd off recogn

ok – Short te

the sales of iuong provincf Ehome 5, 6

opers in Vietm Long’s highame/reputatipany’s Ehomto the publilast year, is

ffordable houfall a bit fur

bust revival ns to be fulfm Long’s saleons for 2013

Q1 Q2

221 2,730 0

648 72252 2,14

729 93271 33381 57

0 9,52

502 16,96

in the table by product al project as

ve).

o Customers

Q1 55 62

4,325

nd in FY13

14 profits willam Long’s rwhich came nising reven

erm

its Ehome 3 ce, a suburb 6, and 7 and

tnam have bh-quality proon have heme 4 projectc, while its E90% sold.

using segmerther and sein overall milled by the es next year3 appear in

2013 2 Q3

32 3,896

0 2,0620 937

29 1,05744 4,003

37 41631 24371 57124 0

68 13,186

above are type (the co

s it considers

in 2013 2013

Q2 68 57

5,481

l be supporterevenues aninto effect i

ue on hous

Nam Long G

and 4 projecof HCMC.

d next year i

been hindereoducts, smalelped suppot sold out onEhome 3 pro

ent has bottontiment need

market sales.end of this y. The compathe tables b

Q4

6 3,8962 2,0627 2,810

7 4893 2,584

6 03 1821 3810 0

6 12,403

Source: Nam L

derived fromompany doess this inform

Q3 Q226

99 2,882

Source: Nam

ed an accoud profits in Fn 2010, reqing units so

4 of 25

Group

cts in This

it will

ed by l unit rt its n the oject,

omed ds to . We year, any’s

below

ong

m the s not ation

Q4 265 63

850 m Long

nting FY11 uired

old to

23 Aprril 2013

RRevenue and

0

500

1000

1500

2000

2500

3000

201

custombelow

Nam Lblockscause assurepurchapaymeconstr

Profit 2010 -

NLG’sabout custom

Again,and FreceiveLookinmore o

Finallyload wfor a refinanciboosts

Busin

NLG h14,000year urbaniafforda

The stto sell for affothe tabfour yefor FYtreatm

0 2011 2

Revenue(V

mers until the“Impact of N

Long believes over 2013-1

revenue aned because ase price, sents and acuction.

2014

revenue forthe revenue

mers, to subs

we would reFY14 shoulded advance ng past FY14of a guess ba

y, we wouldwith a debt/eeal estate deial expensess the profit gr

ess Outlook

has a pipeli0 apartment on averagesation, Saviable housing

trong demanthe units it p

ordable housble below thears. As dis13 and FY14

ment of reven

2012 2013E

VND Billion)

e completed New Regulati

es it will com14, comprisend profits to

customers so it is veryccept delive

recast table es derived frostantiate its c

eiterate that td be very a

customer p4, the revenuased on sale

like to note equity ratio oeveloper. Fas about 40% rowth outlook

k – Long Te

ine of projeunits over t

e. Due tlls estimates

g a year (see

nd makes usproduces – asing market the company scussed in th4 should be qnues in Viet

2014E

5

10

15

20

25

30

35

40

45

50

projects areons on Nam

mplete the coed of about 1o surge. The

have alreay likely that

ery as and

in the next som the delivclaim about i

the companyaccurate, aspayments forue projectiones progress t

that the comof approximaalling interesthis year co

k for this yea

rm

ects which whe next five o demogras that HCM“Affordable

s confident thlthough we dto remain sohas estimat

he section abquite accuranam requirin

0

0

0

0

0

0

0

0

0

0

0

2010 2

Pr

e handed ove Long”).

onstruction o1,400 apartmese revenuedy paid abt they will when NLG

section goesveries of eacncreasing re

y’s revenue fs the compar the producns in the tablthis year and

mpany has ately 0.4x, wst rates are eompared to Far.

will produce years, or ov

phics, cultuC will need Housing Out

hat the compdo expect theoft for the rested its revenbove, the revate because ong that real

2011 2012

rofit(VND Bill

Nam Long G

er to buyers

of nine apartments – whiches are fairly out 70% ofmake their

G completes

Source: Nam

s into more dch project to evenues in FY

forecast for Fany has alrcts it will dele below bec

d next.

a moderate well within reexpected to lFY12, which

around 12,ver 2,000 unural trends 70,000 unitlook” below)

pany will be e overall demst of this yeanues for the venue projecof the accouestate reve

2013E 2014

lion)

5 of 25

Group

(see

ment h will well

f the final

s the

m Long

detail final

Y13.

FY13 ready eliver. come

debt ason ower also

,000-nits a

and ts of ).

able mand ar. In

next ctions nting nues

4E

23 Aprril 2013

Actual & Project North SaigThe BridgeThe GolfviThe GreenAquamarinEast Gate Waterpoin

North SaigWaterpoinAquamarinWaterpoinAquamarinOceana An Thanh North SaigNam LongNam LongNam Long Nam LongOceana AquamarinWaterpoinCasa

Projected Re

gon eview iew

nhill ne Residences

nt

gon nt ne

nt ne

Residences gon g Residential Ag Residential Ag Residential A

g Residential A

ne nt

evenues by P ApaEhoEhoEhoEhoEhoEhoEhoEho

Ho (inNorWaAquWaAquOce

LanAn Nor

Area I NL Area III NL Area II NL

TanArea I NL

OceAquWaCasLon

only bcustomoccur f

Revenyear areasonmarkebelow.

Project 2012 -

artments ome 1, 2: East Some 4: North Saome 5: Bridgeviome 6: Golfviewome 7: Greenhiome 8: Aquamaome 9: East Gaome 10: Waterp

uses ncluding townhrth Saigon (Binh

aterpoint (Long Auamarine Townaterpoint (Long Auamarine Villaeana Villa

nd plots Thanh Residenrth Saigon (BinhResidential AreResidential AreResidential Are

n Thuan Dong Residential Are

eana Hotel Lanuamarine Landaterpoint (Long Asa ng Thanh My

Other revenTotal revenu

The lodue tothe comost o

A substo its proximpointeminuterapidlymiddle

One caarea tefootwethe loc

be recognisemer – but thefor units that

nues in the fand next, bunable revenut to improve.

2016

Saigon aigon ew

w ll

arine ate point

house & Villa)h Duong) An) Townhousehouse An) Villa

nces h Duong) ea I ea III ea II

ea I d

An) Villa

ue ue

onger-term ou the strong ompany’s abi

of the compa

stantial portilarge Water

mity to the hid out that t

es’ drive) buy and every e-class worke

aveat, howevends be foc

ear and furnication of NL

ed when the company ht have alread

following yeaut so far thisue picture in e next year,

2012

4,667

1,667 e

86 0

1,700

4,952

3,333 1,952

3,657

22,014

utlook for Naoutlook for aflity to execu

any’s projects

on of the corpoint projecghway to dothis project t our responmajor city iners living in t

ver, is that thused on lowture, while t

LG’s North S

he products as a quite ac

dy been sold

ars will be qs year’s sale

2015, and was discusse

2013

1 1 1 1

9,225 2,189 1

1

2,082 765

1,714

9,524

11,605 237,106 11

am Long is hffordable houute, and becas.

ompany’s futuct in Long Aowntown HC

is far from nse to that is the world hhe suburbs.

he FDI whichwer value-add

he FDI that Saigon Ehom

are deliverccurate viewto customer

uite dependees figures sewe expect saed in “Real E

2014 201

13,883 19,715,611 27,514,269 12,913,313 2,3

23,8 14,2

11,034

0 17,450 17,4

13,2 9,7 1,8

5,044 5,0 9 2,8

5,462 19,0 20,1

22,052 21,718,119 212,6

highly favourausing in the sause of our f

ure revenuesAn (which is

MC). SomeHCMC’s C

s simple – Has a substan

h has flowed ded industriehas flowed

me project, i

Nam Long G

red to the w of when thars.

ent on saleseem to suppales of the ovEstate Overv

15 2016

753 19,567506 1,487910 349 829 37,531263 22,464

34,168

450 22,186233 15,218775 4,888

869 2,858

044 943 4,599844 4,841

048 19,048115 40,631

741 17,299673 246,784Source: Nam Lo

able, in our vsouth of Vietfavorable vie

s are attribulocated in c

e detractors CBD (circa 3HCMC is grontial portion

into the Lones like garminto Binh Dus moving up

6 of 25

Group

end-at will

s this ort a verall view”

7 7

1 4 8

6 8 8

8

9 1

8 1

9 4 ong

view, nam, ew of

table close have

35-45 owing of its

ng An ents,

uong, p the

23 Aprril 2013

value earmasophishomespayingHCMC

We haIII projattractnot as

Can TCan Tin comsurrouwant tagricucity asfarm d

The ospecificenterspeculseverathe Nasell alparticuNAV e

Finallybelow,from.

Long-T

EHEH

E

E

EE

Can T

chain. A harked for thsticated mecs in the Norg jobs locallyC for the fore

ave also visitjects in Cantive but the compelling.

Tho city has Tho bridge in mmodity priceunding provinto buy aparltural region)

s students or due to increas

verall picturic area wherr of the citylation in the al (unattractivam Long prol the units i

ular micro-maestimate belo

y, we’ve rep, to give an i

Term Project

Home 3: West SHome 4: North SEHome 5: Bridg

Ehome 6: GoEhome 7: Gre

home 8: AquamEhome 9: Easthome 10: Wateast Gate Reside

Camelia GAquam

Tho Residential AWate

high proporthe manufacchanical comrth Saigon Ey, while Wateseeable futu

ted the compn Tho city. particular ar

been growin2010 slashe

es over the nces more wrtments in C), 3) the childyoung adult

sed mechan

e for the citre Nam Lony, seems tolead-up to

ve) uncomploject. We han its Can Tarket need to

ow.

plicated the dea of wher

Plan

2012 201

SaigonSaigon

eviewolfvieweenhillmarinet Gate

erpointencesarden

marineAreas

erpoint

tion of FDI cture of promponents. WEhome projeerpoint residere.

pany’s Nam The develo

rea where th

ng rapidly foed travel timlast few yea

wealthy (our Can Tho –dren of thoses – and theyisation.

ty continuesg’s project io have beethe Can Thleted develo

ave no doubtho developmo fall more.

company’s e its future s

13 2014 2015

in the Binhoducts like

We guess resect will be aents will nee

Long Residepment is pr

he developm

or a few reases to HCMCars has mad

understandthe capital

e farmers way are no long

s to looks ps located, w

en impactedo bridge ope

opments in ct the companment, but thiWe reflect th

own long-tesales and rev

2016 2017 2

Nam Long G

h Duong areelectronics

sidents whoable to find ed to commu

ential Area Iristine and h

ment is locate

sons: 1) the C, 2) the incrde farmers ining is that mof the sout

ant to move toer needed o

romising buwhile close tod by real eening. There

close proximny will be abink prices inhis opinion in

erm project venues will c

Source: Nam

2018 2019 20

7 of 25

Group

ea is and

o buy high-

ute to

, II & highly ed is

new rease n the many thern o the n the

t the o the state e are ity to ble to n this n our

plan come

m Long

020

23 Aprril 2013

MBKE RevProject

Aquamarine Residences Camellia Gar North SaigonEhome Waterpoint Township 22Waterpoint Township 12The Golfview The Greenhil Captial Towe Nam Long Residential ANam Long Residential ANam Long Residential AThe Oceana East Gate Residences The Bridgevie West SaigonEhome An Thanh Residences Casa

valuation of NCity/ Provin

HCMC

rden HCMC

n Binh Duong

2ha Long A

3ha Long A

w HCMC

ll HCMC

er HCMC

Area 1 Can T

Area 2 Can T

Area 3 Can T

Vung T

HCMC

ew HCMC

HCMC

Long A

HCMC

NLG Key Proje

nce District

C Binh Ch

C Binh Ch

g Vinh Ph

An Ben Luc

An Ben Luc

C Dist 9

C Dist 9

C Dist 7

ho Cai Ran

ho Cai Ran

ho Cai Ran

Tau Xuyen M

C Dist 9

C Dist 7

C Binh Ta

An Ben Luc

C Dist 9

NAV E

To estprojectconsidassetslarge b

We alSavillsa yeacomprprojectpresencopy o

ects t To

A

hanh Dist

hanh Dist

hu

c Dist 2

c Dist 1

ng Dist

ng Dist

ng Dist

Moc

an Dist

c Dist

Notes: project,of the layet to b

Estimate

timate Nam ts to the va

dered what ds (an advantbank is that w

so took intos and Cushmar ago. Wrehensive NAt. This is nted below,of that work w

otal Site

Area (ha) C

Ar

37.41

5.97

15.97

222.00 2

127.00 1

1.16

0.86

0.14

6.41

15.42

43.81

16.89

17.83

n/a

6.39

n/a

5.62

1) MBKE Valu, 2) In some cand/sqm doesbe incurred for

Long’s NAVluations of c

distressed invtage of beingwe have acce

o account thman & WakefWe are in AV model baa more ambso investors

when it has b

Comp. rea (ha)

Rato

Ar28.86

5.97

13.13

12.00

12.00

1.16

0.86

0.14 4

6.41

11.95

23.69

16.89

17.83

2.30

6.39

7.21

5.62

uation is the vcases above ts not equate tor the project.

V, we compacomparable vestors woulg a stockbroess to such i

he paid valufield for most

the proceased on our bitious undes should feebeen comple

te/sqm f Site rea ($)

% O

79 10

152 4

165 10

31 10

20 10

366 10

318 10

4,669 10

97 10

33 10

29 10

31 10

208 4

509 10

148 10

146 10

205 4

value of NLG’sthe compensao the MBKE d

red each of real estate ld be willing oker under tinformation).

uation work t of NLG’s kess of deveforecast cas

ertaking thenl free to conted.

NLG wns

MBValu($ '

00% 22

45% 4

00% 21

00% 65

00% 21

00% 4

00% 2

00% 6

00% 6

00% 2

00% 2

00% 5

40% 11

00% 10

00% 9

00% 10

45% 5

Totals: 212So

s ownership inted area multi

due to addition

Nam Long G

Nam Long’sprojects, andto pay for Nhe umbrella

done by CBey projects neloping a msh flows for n what wentact us to g

BKE uation000)

NLG Val

,727 12,6

,090 1,

,704 6,

,296 33,6

,952 9,6

,241

,731

,537 3,

,205 2,6

,055 3,

,729 2,

,151 4

,541 2,4

,255 3,2

,438 7,

,548 6,

,179 6,4

,380 104,ource: MBKE, Nam

nterest in eachiplied by the v

nal costs and t

8 of 25

Group

s key d we

NLG’s of a

BRE, early more each have get a

Book lue

610

595

326

643

638

562

562

864

675

760

942

409

444

207

120

885

452

694 m Long

h value taxes

23 Aprril 2013

Projec

WaterThanh

Nam L

Aquam

North

West S

East G

Ho Tra

The B

Capita

Casa

Came

The G

The G

ct Name

rpoint Townshh residences)

Long Resident

marine Reside

Saigon

Saigon

Gate Residenc

am/Oceana

ridgeview

al Tower

llia Garden

Golfview

Greenhill

C

ip (inc An

tial Area

ences

ces

MBKE (USD ‘0 MBKE VNLG BoCapital G MinorityNet Pre- Cap GaNet Cap NLG OvMBKE BAdjusted Shares Share PBVPS (VDisc-to-

Nam

Comp Site Are(ha)

390

66

37

13

6

17

17

2

1<

6

6

1

1

NAV Analysi000s)

Valuation of Keyook Value of KeyGain on Project

y Shareholders P-Tax Gains

ins Tax (@ 25%pital Gain on Pro

verall Book ValuBook Value Adjud Book Value

(m)

PriceVND)NAV

Long Com

ea

NLG’s la

Apts, detcenter lo

Apts, det10km fro

Apts, det

14 apart

Detacheschools,

Resort wtargeted

Apt build

Nam Lon

High-clas10km fro

Mid to hi

5 apartm

Apt build

is

y Projects y Projectsts

Portion of Gain

%) ojects

ue per Balance Sustment

mpany Ov

argest townshi

tached and seocated in Can

tached and seom CBD

tached and se

ment buildings

d houses, hig9 km from CB

with hotels, detat the upper-i

ding with 983 u

ng's HQ office

ss detached hom city center

gh-end apartm

ment buildings,

ding with 275 u

Sheet

verview

Project Des

p project, 30k

emi-detached Tho, the 2nd la

emi-detached

emi-detached

s in Binh Tan

h-end apartmBD

tached housesincome marke

units in Dist. 7

e building, 12 s

houses and ap

ments in Binh

, 10km from C

units, 15km fro

212,380 104,694 107,686

6,353

101,333

25,333 75,999

60,604 75,999

136,604

96

16,800 30,039

-44%

cription

km from CBD

houses, hospargest city in t

houses in Bin

houses 19km

Dist., 13 km fr

ents, commer

s and service et

7, 5 km from C

stories, 80% le

partments loca

Chanh Dist.,

CBD

om CBD

Nam Long G

pital and rec, the south of VN

nh Chanh Dist.

North of CBD

rom CBD

rcial areas and

apartments

CBD

eased out

ated in Dist. 9,

10 km from C

Source: Nam

9 of 25

Group

N

.,

D

d

,

BD

m Long

23 Aprril 2013

Afford

The pathis realignedhigh-q

The coyears,HCMCprevio

There such command Qfor luxVietnathat dacompa

We unpoor qTo be qualityaffordaan ove

Unfortaffordatiny mhas a

Skilled

In addpreviothemsreal esthe ma

Theseto the the typtypicalscalingcustom

Nam Ldeveloapartmdue towhich typicalare ninand alknow various

dable Housin

arallels we dport are not d its culture uality afforda

ompany has with some m

C’s D7, and lusly sold pro

are other was HAG,

odity/resourcQCG a develoxury automoam’s real estabbled in reaany, and PNJ

nderstand thquality with s

clear, we ay affordable hable housingersupply of h

unately for inable housingarket caps (market cap o

d Developer

dition to theus section, welves towardstate market arket which is

developers drawing boa

pical 80-90sly offered byg back the qmers in order

Long has buiopers cannotment buildingo standardisa

also gives a 36 months ne stories hlso makes itthat taller bus complicatio

ng is in the

drew betweestretched. and busine

able housing

focused on minor side aleases out 8ojects, has on

well-known afwhich see

ces businessoper run by obiles that htate bubble al estate sucJ, a jewelry c

at many affoshoddy constre not sayinhousing, butg units in Vieigh-quality u

nvestors, sog units are eit(one popularof $20m).

r of Affordab

e affordable we are also ds affordableis supporteds more linked

are reorientard to shrink

sqm offeringy NLG. Somquality of ther to lower sel

lt a core comt match. Itsgs are more ation of desia quicker turn

for other deigh, which mt easier to guildings creaons in the zo

Fabric of Na

en Nam LongNam Long m

ess activitiesg.

developmenactivities: it o80% of the flne resort pro

ffordable hoems to havses such as a mother-an

has been halso produch as HPG, acompany.

ordable apartruction, leakg that NLG t while there etnam (morenits.

me of the otther unlistedr affordable

ble Housing

housing deaware of dee housing bd by real demd to real esta

ting their prok the unit sizs of most dme developeeir interiors olling prices.

mpetency in constructionthan 20% bgn and vertinaround time

evelopers. Amakes the bget zoning aate more ecooning process

am Long’s D

g and Ikea inmade a series around the

nt of affordabowns its HQ oors, it man

oject, etc..

using develove switchedrubber, sug

nd-son team it by a ser

ced a streama steel compa

rtment units ky roofs andis the only pcurrently is

e on that bel

ther produce, or are listedhousing stoc

g

evelopers mevelopers whbecause thismand, unlike ate speculati

oduct offeringzes of their

developers, ters are also or delivering

affordable hon costs of celow those ocally integrae of 12-18 m

Also, most ofbuildings simpproval (locaonomic valus).

Nam Long G

DNA

n the headlines of choicese developme

ble housing fooffice buildinages some

opers in Vietd its focusar, iron ore, with a penc

ries of scanm of corporaany, KDC, a

in HCMC a uneven flooproducer of an oversupplow), there is

ers of high-qud companiesck is TDH, w

mentioned inho are reorie segment othe upper eon.

gs by going apartments to the 40-60cutting cost

g empty she

ousing that t.$270/sqm foof its compe

ated construcmonths vs a mf NLG’s build

mpler to consal zoning boe, which cre

0 of 25

Group

ne of s that ent of

or 20 ng in of its

tnam s to etc.,

chant dals.

ations food

are of oring. high-ply of s not

uality s with which

n the nting f the nd of

back from

0sqm ts by lls to

these or its titors ction, more dings struct oards eates

23 Aprril 2013

The hibrand in the associtheir q

Focus

Anothethe soduringinitiatethat mdevelomarke

In conpredombelow.

Skilled

Most Vietnaproceslandowand inprotracare resausag

Fund politicaacquiswhich “landocountr

Can 3 projects

igh satisfactithe only othmarket next

iated with theuality).

sed on the S

er decision touth of Vietn the real es

ed projects inmany of thopers that rut.

ntrast, NLG hminantly in t.

d at Land Ac

of the valueam occurs atss by whichwners and thnvolves entancted compeneminded of ges, but no o

managers nal power in sition and co

can take fwners” in V

ry’s land).

Thos (72 ha)

Lo3 proje

ion of Nam her widely rect to industry e affordabilit

South of Viet

the companynam where istate bubblen the then-hohose projectushed in did

has focused he greater H

cquisition

e created int the land ach land is achen re-zonednglements wnsation negothe analogy

one wants to

new to VietnVietnam is

mpensation rom 5-10 y

Vietnam (eve

Binh 1 projec

ong An ects (384ha)

Long’s custocognised affgiant HAG

ty of that com

tnam

y made whict has clear

e, there wasot Danang mts were nonot have a

its efforts oHCMC area,

n suburban cquisition stacquired fromd into use fowith local govotiations withy to sausago know how t

nam should ts more diffuin Vietnam ears becaus

en though th

Duongct (16ha)

HCMC8 projects (78

omers has mfordable hou(whose bran

mpany’s prod

ch we applauexpertise. As a rush of

market. Our ot successfa deep unde

on the south as can be s

real estate age. We und

m farmers anor housing isvernment of all the involes – everyohey are mad

take note thuse than in is a more prse of the she state tech

1 p

8 ha)

Nam Long G

made its “Ehosing brand nnd name is mducts rather

ud is to focuA few years

developers understandiul because

erstanding of

of Vietnam,seen in the m

developmederstand thand/or other s intricate, mfficials as welved parties.one likes to

de.

hat the natuChina, so

rotracted prouperior righhnically own

Vung Tauproject (17 ha

of 25

Group

ome” name more than

us on s ago

that ng is

the f that

, and maps

nt in at the local

messy ell as We

o eat

re of land

ocess ts of

ns all

a)

23 Aprril 2013

NLG’smade with atownshand Bgoverncompaprofita

Towns

Townscenterpolitica40ha t

After aas roadevelohousinactual the infis a mu

Since the pomost othe redevelodevelolast seof infrapro qu

Major

AnotheproximtownshCBD a

The cois locafrom da few openeof the road s

Nam LCan Tbetweeagricuprices,(which

Finallyinfrast

long track it one of the

a strong enhip developmCI or real e

nment deparany) have tble township

ship Develo

ship developred aroundal connectioto 500ha (or

acquiring theads, sewersopers or indng; the origi

building of hfrastructure duch easier b

township deortion of the sof the value ieason the opment is opment. All ection have astructure de

uo between th

Infrastructu

er source of mity of its lahip developmare particular

ompany’s larated in Longdowntown HC

years ago d, but that hcity, so the dystem inside

Long’s large ho bridge when HCMC alture area. T, including in

h is not close

y, we would ructure deve

record of ne few private nough land ment. Usuaestate develortments (NBBthe political p developme

opment – a P

pment is higland acquisns to securlarger) direc

e land, the ds, etc. and ividuals. Thnal townshihouses and/odevelopmentusiness than

evelopment suburban reais created, thgovernmentto facilitateof the othe

construction evelopment he township

ure Develop

f value creatandbanks toment and orly geared to

rgest projectAn, 30km f

CMC. This dbefore the r

highway endsdrive time we HCMC is g

Can Tho tohich opened and this keyThat bridge len the areas w to this new

like to mentielopment in

navigating tsector real eacquisition

ally only SOopers like NB came from

connectionsnt projects.

Profitable Bu

ghly profitabsition. In shre large swatly from the g

eveloper buthen sells

hose plots ap developeror apartment is not neglign building and

is focused oal estate devhis is a highlyt allows hige suburbanr township dbusinesses

(the whole adevelopers a

pment Benef

tion for Namo major infraother project

infrastructur

t, The Waterrom HCMC rive time is arecently builts currently eill improve evradually imp

ownship devin 2010 and

y city in the ed to a mini-

where Nam Lbridge).

on that we’vHCMC rece

he land acqestate develo

competencOE developerNBB which wm the SOE rs needed t

usiness

ble because hort, the devaths of landgovernment.

ilds basic inplots of la

are ultimatelyr may also t blocks as wgible (c. $50d selling hou

on land acqvelopment vay profitable bgh profitabin and othedevelopers m focused on

arrangementand the gove

fit Nam’s Lo

Long’s projastructure pts). Land prre developme

rpoint townshand about aa vast improt Trung Luonds abruptlyven more in roved.

velopment bed dramatically

heart of th-boom in Caong’s develo

ve noticed a ently. This is

Nam Long G

quisition proopers in Vietcy to unders like DIG,

were spun oroad construto secure h

the businesveloper use

d anywhere

frastructure and on to oy developeddo some ofwell. The co-70/sqm) bu

uses/apartme

uisition, whicalue chain wbusiness. Pality in towner infrastrucmentioned in

n various asp is a sort of ernment).

ong’s Projec

jects is the crojects (for

rices outsideent.

hip developma 45-minute ovement fromong highway y at the perip

the future a

enefited fromy cut travel t

he Mekong Dn Tho real eopment is loc

distinct picks something

2 of 25

Group

ocess tnam rtake SJS

out of uction highly

ss is es its

from

such other

d into f the ost of t this ents.

ch is where art of nship cture n the pects quid

cts

close both

e the

ment, drive

m just was

phery s the

m the times Delta state cated

up in g that

23 Aprril 2013

H

W

Highways Van Linh, 1

1

Highway 1A, Tand Vinh Lo

Western Bus S

Nguyen 1A and 50

1) Binh Chan

other also co

One tinfrastway foturn suvia dire

Local effectivdirectlythe pamethocausesmake Hanoi,

A maplabels

Tan Tao c IPs, Station2) Binh Tan

nh

analysts andommented o

theory we hructure boom

or the governupport the baect lending a

real estate pve method oy buying reaast. Infrastrud of suppors high inflatioland and a

, where price

p of Nam Loidentifying n

d fund manan in informal

have heard m because inment to supanks which hand/or via loa

prices benefiof supportingal estate projucture deverting real eson. And thispartment bu

es fell the mo

ng’s projectsnew/impendin

5) CBD

agers basedl discussions

is that Vietnfrastructure

pport the prohave large eans backed b

t from new rg real estatejects, an idelopment woustate prices s method wouildings on tost, more des

s in HCMC ang infrastruct

Thu Thiem East Wes

Road

EasRoad,

4) District

3) D

D

d in HCMC s at social ga

tnam is on e developmeoperty markeexposure to rby real estate

roads, so thise prices thana which hasuld also be than printin

ould be espethe periphersirable.

appears beloture in close

Tunnel, t Ring d

HighwaHCMC H

P

st West Ring Phu My HunBridge

t 7

District 9

Nam Long G

and Hanoi atherings, etc

the cusp oent is an effiet, which woureal estate pe collateral.

s is a more n the governs been mootea more targ

ng money, wecially effectivry of HCMC

ow, togetherproximity.

ay Hanoi, High Tech ark,

ng

3 of 25

Group

have c..

of an icient uld in prices

cost-ment ed in geted which ve to and

r with

23 Aprril 2013

Real

Afford

Severathe afftrendsurbanideveloprefereand 5)

As canyoungmean familietownho

Vietnam

Furthecities,year gemergwill live

One tefficienfertilisethe Meongoinand HC

Vietnameansplethophoneof twoattractindustr

A simiestima

0

5

10

15

20

25

30

35

40

45

Estate Ma

dable Housin

al factors mafordable hou will lead tosation and d

opment), 3)ence of Vietn) the growing

n be seen in . A mass ofthat these

es and preouses in the

m Age Profile

ermore, only so the urba

going forwaging Asian coe in its major

thing contribncy of Vietners/pesticideekong Delta ng inflow of CMC.

am’s continus that manyra of high-ts. Binh Duo

o suburbs oting FDI to itsrial parks is D

lar story is hate that the

below20

Tota

arket Over

ng Outlook

ake us verysing market

o a shortagedevelopmen) Vietnam’s namese to h

g availability o

the diagramf young peopcouples no fer instead suburbs.

e

about 30% anisation rateard. If Vietnountries, thar cities 10 ye

buting to unam’s agricues, more me

will need feyoung adult

ued inflow oy of these stech factorie

ong, where soof HCMC thas industrial pDong Nai).

happening incountry wil

20-

al Population

rview

– Long Term

y optimistic ain Vietnam:

e of affordat of the cou

populationhold their savof retail mort

below, the aple are gettinlonger wantto live in

of Vietnam’se is expectenam follows an its likely tears from now

rbanisation ulture (i.e. bechanisation)wer workersts from agric

of FDI into emi-skilled wes assemblome of NLGat have bee

parks (the oth

Hanoi, whicll actually h

-40

(%)

m (5 years)

about the lon1) demogra

ble housinguntry (includin density, vings in goldtgages.

age structureng married, bt to live with their own

s population ed to remain

in the foothat about hw.

is the gradbigger farms). This meas in the futureculture famili

the manufaworkers will ing electron’s projects aren particularher HCMC s

ch has led thhave a 900s

above 45

Nam Long G

ng-term futuaphic and cu, 2) the onging infrastruc4) the cu

d and real es

e of the counbut cultural sh their exte apartment

lives in its mn well over 3otsteps of oalf of its citi

dually impro, greater us

ans that farme, reinforcingies into Can

acturing indfind jobs in

nics and mre located, isrly successfsuburb with m

he governmesqm shortag

4 of 25

Group

re of ltural going cture ltural

state,

ntry is shifts nded s or

major 3% a other izens

oving se of ms in g the Tho

ustry n the

mobile s one ful in many

ent to ge of

23 Aprril 2013

housinafforda

Vietna

We wosurprisper cacountrprefereestate

Some that a than ountil thapartmown re

PopulaCountryKorea, SJapan PhilippiVietnamChina IndonesThailanMalaysi

We woFrenchc.8m p

One obulk ofHCMCupper

Growi

The mhome family.producLong.

About buyerspredomAlso, mTheseVietna

The mlending

ng by 2015,able housing

am – a Crow

ould like to msed at how hapita. The firry, as can ence of the , which is a c

visiting fundluxury apar

ne in HCMChey considerments in Thaieal estate.

ation DensitieySouth

ines m

sia d ia

ould also likeh designed population; d

f the criticismf its landban

C will is now end housing

ing Availabi

mortgage marpurchases in. A nascent cts in the p

50% of Nas who get a mminately paidmortgages a figures ind

am.

mortgage mag to SOEs,

, ¾ of whicg the country

wded Countr

make two othhigh real estarst point is thbe seen inVietnamese

cultural artifa

d managers trtment in Ba

C, despite Thr factors like iland and the

es in Asia Population (

49 127 94 88

1,347 242 68 29

e to mention Saigon to bowntown, th

ms some obsnk is far from

too expensg products m

lity of Mortg

rket in Vietnan Vietnam wmortgage m

primary mark

am Long’s amortgage frod for in cashre not availa

dicate the up

arket is alsocorporate

ch will be aneeds.

ry that Love

er points to ate prices in

he relatively hn the table e to hold theact of the cou

to HCMC initangkok is noailand’s mucpopulation d

e cultural pre

(m) Per Ca

one point thbe a much se streets are

servers havem the center

ive for affordake econom

gages

am is still in were financedmarket existsket by recog

affordable apom the bank, h (i.e. with “frable yet for spside poten

o set to takebuccaneers

a shortfall in

es Gold and

investors whVietnam are

high populatibelow. The

eir savings untry’s long h

tially find it st that much

ch higher perdensity, the eference of th

apita Income 23,067 46,407

2,370 1,392 5,439 3,495 5,318 9,977

hat is specificsmaller city e small, quain

e made abouof HCMC. dable housinic sense the

its infancy. d with loans s for purchasgnised deve

partments arbut house p

riends and fasecondary mtial for mort

e off becausand other

Nam Long G

n the amoun

Real Estate

ho are somete relative to ion density oe second isin gold and

history of war

surprising to more expen

r capita incogreater supphe Vietname

Pop per sq.486 334 316 267 141 127 135 87

Source: United N

c to HCMC. than the cunt, and packe

ut NLG is thaBut the centng – only mire.

In the past,from friends

ses of real eelopers like

re purchasepurchases areamily” financ

market purchatgage lendin

se after yeaspeculators

5 of 25

Group

nt of

e

times GDP

of the s the real rs.

learn nsive me – ply of se to

. km

Nations

The urrent ed.

at the ter of id-to-

most s and state Nam

ed by e still cing). ases. ng in

rs of who

23 Aprril 2013

createcome third oproducthe fuincludi

Past eeasterwhen m

Afford

We besufficieprobabto cleathe gobrokerthe unproduc

(Note CBREcentra

We extheir cagain. affordaofficer year, 2stabilismeasusome

We exhousinbumpiworst i

Is the

The rewe expa glut vacancfall fro

The rereal, itenantand atrobustindustr

We dosegme

d an NPL disto recognise

of Vietnamescts are signifture for theng mortgage

experiences rn Europe smortgage fin

dable Housin

elieve that pently such tbly take up toar. Estimates

overnment anrs are arounnsold real escts.

that the job and Savillslised official

xpect prices current levels

The reasonable housing

workers, wi2) we see pased, and theures will act areal support

xpect the resng market anng along theis over for th

Office Mark

ecent stabilispect to happof office spacy rate in HCm $80/sqm t

ecent stabilisntrinsic dem

ts moving out the same tit interest in tries has caus

o not expect ent this year

saster for thee the huge ose hold a baficantly highee banking ines.

in the housinshow that pnancing beco

ng Outlook

prices in thehat the maro 2-3 years fs of the ovend professiond $4-5b, althtate inventor

of professioin Vietnam iland registry

in the affords, then stay ns we expecg is nearly with falling intarallels betwee affordable as a catalystto the marke

st of 2013 tond for Vietnae bottom bute low end of

ket a Preview

ation of the open in the afface came ontCMC to shooto about $30/

ation of the Gmand for offut of inferior me, the contthe country bsed the take

the same thbecause inte

e banking indopportunity ofank account,er than on condustry in V

ng markets oroperty price

omes widely a

– Short Ter

affordable hrket is near for the curre

erall real estnal real estahough our ury in Vietnam

onal real estis complicatey).

dable housinfirm for the

ct price stabwithin reachterest rates seen the offichousing mat to improve et.

o be slow aam’s economt with a cleaf the real esta

w of the Affo

office leasingfordable housto the markeot up to 25%/sqm.

Grade A & Bfice space.office space

tinued inflowby multinatio-up rate for n

hing to happerest rates n

dustry, Vietnf retail banki and NIMs o

orporate and Vietnam is in

of countries es are signavailable.

rm (1 year)

housing segmequilibrium

ent supply-detate inventorte research

understandinm is compris

tate researched by the fac

ng segment next 2-3 ye

ility in the neh of a massset to close

ce market, wrket, 3) govesentiment a

and steady fomy as a whor upward biaate market.

ordable Hou

g market is asing market.

et, causing th% and Grade

B office leasinThere has

e into better w of FDI into onal compannew office sp

pen in the afeed to fall a

Nam Long G

am’s banks ing. Less thon retail banSOE lendin

n retail ban

like Brazil anificantly boo

ment have f, although it

emand imbalry overhang firms/commeg is that mo

sed of higher

hers at firmsct that there

to stabilise ears before rear future ars of middle-c

the gap withhich has recernment stimnd may also

or the affordole, which isas. We think

using Marke

a preview of Two years

he Grade A oe A office ren

ng rates is dbeen a rusquality buildVietnam andies in a rang

pace to soar.

ffordable houbit more to r

6 of 25

Group

have han a nking g, so

nking,

nd in osted

fallen t will ance from

ercial ost of r-end

s like is no

near rising re: 1) class hin a

cently mulus give

dable s still k the

et?

what ago,

office nts to

ue to sh of dings d the ge of .

using reach

23 Aprril 2013

the afftheir ahousin

Falling

We exlendingup thedeman

We beOur vicentralike to

Inflatiohorizocorrec

Inflatio

Afford

The fowithin understhat thgross

We hamanagwho hand in like thefor inc35%.specia

0%

5%

10%

15%

20%

25%

30%

fordability crappetite for ng is probably

g Interest R

xpect interesg again by their NPL‘s. nd.

elieve lendiniew is predicl bank, inclusee lending

on is currentln that cloud

ction in the pr

on Under Con

dable Housin

ollowing tabreach of a m

standing, thehe monthly mmonthly inco

ave identifiedger in a Vietnas a wife windustries li

e “Big Four”comes in this Note that t

al loan progra

%

%

%

%

%

%

%

2006 2007

riteria we outlending (als

y not quite a

ates

st rates fall he end of theThis should

g rates shoucated on rep

uding SBV gorates fall to

y running at ds the inflatrices of oil an

ntrol

ng is Almos

le illustratesmass of emee standard temortgage paome.

d what we thnamese com

working as a ke finance o” audit firms,s bracket is the 6% inteamme descri

7 2008

Y/Y CPI

tlined belowso, the pen

as strong as t

a bit more te year as thed trigger a

uld fall to c.peated comovernor Binh10% if inflatio

6.6% and wtion picture, nd other com

st… Afforda

s that afforderging middleest of affordaayment shou

hink a realistmpany with fiv

secretary (sr for workers etc.). Notec.20%; the rest rate in ibed in the ne

2009 20

, and banks nt-up demanthat for qualit

this year aney make prosurge in aff

10% by the ments from h, that the goon remains b

we do not seeespecially g

mmodities.

ble

dable housine-class officeability by mould be no m

tic salary forve years’ wosalaries are s in professioe that the taxmaximum inthe table a

ext section.

010 2011

Nam Long G

need to resnd for affordty office spac

nd banks to gress in cleafordable hou

end of the ymembers o

overnment wbelow 7%.

e anything ogiven the re

ng is now ne workers. Inortgage officeore than 30

r a typical mrking experiehigher at M

onal service x rate in Vietncome tax rabove refers

2012 2

7 of 25

Group

sume dable ce).

start aning using

year. of the would

n the ecent

early n our ers is % of

middle ence,

MNCs firms tnam

ate is to a

2013

23 Aprril 2013

AffordaProfessSecreta

ApartmDown P Loan PrTerm (y InterestLoan PmLoan Pm

Gover

The goend ofearmaborrow

The pfixed fpropersmallemarke

We arehave ofeatureborrowfor theloans, only fixproper

Also, wgovernmarkepurchathings distant

New R

The finmarkeimpactbubblethe lon

Thesefinanciwho hunders

ability Analyssional Salaryary Salary

ent/Home CosPayment

rinciple yrs)

t Ratemt mt / Gross Inco

rnment Supp

overnment hf the real estarked $1.4bwers of low-c

rogramme wfor the first trties must coer than 70 st.

e not clear hon the marke of the prowers’ intereste first three

linked to baxed for six mrties, given th

we believe tnment annout. We do ases of real

like minor tt) future.

Regulations

nal topic to t are a fewted the mare, helped defnger term.

measures ing needs, shave recentlstand how th

sis, in USD

t

ome

port Measur

has come outate market, in soft loan

cost housing.

will provide three years

ost below VNsqm – which

how much imket vis-à-vis ogramme, int rates (and tyears. Most

anks’ depositmonths at mohe wide swin

that this andunced should

not expect estate signi

tax cuts and

Decrease R

cover in thisw key regularket. The mflate prices b

impacted rso it is partiy started lo

hese changes

1,000400

50,00010,000

40,00015

6%338

24%

res

t with some the most ims to provide

subsidised lof the mort

ND15m/$715 h is exactly

mpact this suthe supply

n addition totheir monthlyt mortgages t rates, so b

ost. That incngs in interes

d the other sd help suppo

the other mificantly – thd REITs at

Revenues, In

s discussion atory changemeasures, ebut will also l

real estate icularly impoooking at Vis have affect

104

31

measures toportant of whe cheap mo

loans at a 6gage’s 15-yeper sqm, anNam Long’s

bsidised loanoverhang, b

o a low intey loan payme

in Vietnam orrowers’ loa

creases their st rates in rec

support meart sentiment measures to

hose other insome point

ncrease Fina

about Vietnes in 2010 enacted in tlead to a hea

firms’ finanortant for ovietnam’s proted local rea

Nam Long G

0% 30

1%

o support thehich is that it

ortgages for

6% interest ear life. Eli

nd have unit ss segment o

n programmebut one attrarest rate, is ents) will be are floating

an paymentshesitancy to

cent years.

asures whichin the real e

o support ancentives incin the (prob

ancing Need

nam’s real ethat signific

the wake ofalthier indust

cial results verseas inveoperty markel estate firms

8 of 25

Group

15% 560

40%

e low t has end-

rate, igible sizes

of the

e will active

that fixed rate s are o buy

h the state

actual clude bably

ds

state cantly f the try in

and stors et to s.

23 Aprril 2013

The m

•

•

•

Impac

The acLong’sand prafter tstop rewere c

This cbooke(remema proje

There customrevenualreadhando

Thosebalancleveracompapaymerevenu

most importan

Decree 71projects wbubble, sdownpaympayments was compcompletion

Real estatavoid havinot been mthe post-bleveraged advance c

Decree 69land earmcompensadid not afflandbank came intosuch as BC New Revein Vietnamrecognitionrevenues are now owere prevare comple

ct of New Re

ccounting rus profits dipprofits will shohe revenue ecognising rcompleted.

caused revend now thamber that NLect).

is little chamers becausue recognitioy paid 70-8ver.

advance pace sheet, givged than it

anies). It aents on Namue.

nt rule chang

: This rule lwith advance

peculators bments of c

when constrleted), with t

n.

te developerng to borrowmore distressubble years due to their

customer pay

9: This rule rmarked for ation processfect Nam Lonhad already effect, but CI.

enue Recognm previouslyn accountingas they colleonly able toviously sold eted and han

egulations o

ule change mped 43% in Foot up this yrecognition

revenues on

nues and proat some of LG has a tur

ance that the the paymeon policy ch80% of the

ayments are ving the firm

really is (aalso means

m Long’s bala

es are:

imited real ecustomer pa

bought mult.20%, and ruction startethe hope of

rs used advw from the bsed real estais that many

r previous abyments.

aised taxes acquisition

s had not beng much bec

y been fully Decree 69

nition Treatmy had a widg. Many fected payme

o recognise to customernded over to

on Nam Long

mentioned abFY11 and 78year and nexpolicy was newly sold

ofits to plungthe produ

rnaround tim

he products ent schedulesange. This cost of the

sitting on ththe superficia commonthat the c.$

ance sheet is

estate firms’ ayments. Atiple apartm

then maked (but befor“flipping” the

vance customanks. One rate activity iny developersbility to fund

that developn but for een completecause a highcompensatedid affect s

ment: Real ede latitude firms previoents from curevenues fro

rs at the timthe custome

g

bove helps e8% FY12, anxt. In the yechanged, deprojects un

ge, but the ructs cominge of about 1

will not be s never chanmeans that

e apartment

e liability sidial appearanproblem for

$15m of ads all nearly g

Nam Long G

ability to finAt the peak oments by pu

ing even mre the founde properties

mer paymenreason theren Vietnam ds were not hthemselves

pers must pawhich the

ed yet. Thish proportion ed when thesome develo

estate develoin their reve

ously recognustomers. Fom projects

me those proer.

explain why nd why reveears immedievelopers hatil those pro

revenues cag to compl2-18 to com

handed ovenged, despitecustomers by the tim

de of Nam Loce that it is mr all real e

dvance custoguaranteed fu

9 of 25

Group

ance of the utting more ation upon

nts to e has uring

highly with

ay on full

s rule of its rule

opers

opers enue nised Firms

that ojects

Nam nues ately

ad to ojects

an be etion plete

er to e the have

me of

ong’s more state omer uture

23 Aprril 2013

Finallymost rlongerThis hmarkefinanciWe woin a se

y, we note threal estate cr able to fundelps explain t; we expecting within theould encouraecondary issu

hat Decree 7companies i

d themselveswhy Nam Lo

t that the firme next year age any clienue to contact

71 has increin Vietnam

s with advancong recently m will need in the form onts that may t us.

eased the finbecause thoced customelisted its shato raise ano

of CBs and/obe intereste

Nam Long G

nancing needose firms arer payments.ares on the sother $10-20or straight eqed in particip

0 of 25

Group

ds of re no

stock 0m of quity. ating

23 Apr

PROFIFYE D Sales COGSGross OperatEBIT Net finNet IncNet exPBT IncomeMinoritNet prEBITDEPS

CASH FYE D Opera

Net DepChaOthe

InvestNet ChaCha

Cash fFinanc

ChaNet OtheDiv

Net ca

Sourc

ril 2013

IT AND LOSS (VND bec

profit ting exp.

ancial incomes (loss) come (loss) fr. jv traodinaries

e tax ty interest ofit A

FLOW (VND b) ec

ting cash flow profit

preciation ange in working capitaers ment cash flow capex

ange in investment ange in other assets flow after Investment cing cash flow ange in share capital change in debt ers paid

ash flow

ce: Company, M

b) 2009

630.6

-330.2 300.4 -90.6 209.9

6.9 6.8 3.3

226.9 -37.4 -30.8 158.6 215.1

1,842.6

2009

31.7 158.6

5.3 al -714.3

582.1 -197.2 -59.1

-151.1 13.0

-165.5 180.9 120.0 73.3 -0.0

-12.4 15.3

Maybank KE est

2010

839.8 7

-490.4 -4349.4 2

-112.6 -1236.8 1

-9.0 10.3 7.8

245.9 1-64.2

4.9 186.6 1246.7 1

2,020.8 1,1

2010

-13.4 -1186.6 1

9.9 -182.7 -4-27.2 1-4.5 -2.1

-20.6 18.3

-17.9 -2102.8 1167.9 -58.8 1

- -6.3 84.9

timates

2011 2012

734.0 461.7 459.4 -260.0 274.6 201.7 159.9 -126.1 114.7 75.7 -11.2 -68.8

1.8 0.4 87.9 52.4

193.3 59.6 -56.1 -29.0 -30.0 -5.9 107.2 24.6 124.4 88.0 160.7 258.0

2011 2012E

198.5 -202.7 107.2 24.6

9.7 12.3 476.7 -280.7 161.3 41.0 -29.2 2.2 -3.6 -10.5

-51.6 5.8 26.1 6.9

227.7 -200.6 163.1 172.4

- 6.5 175.1 172.7

- 0.0 -12.0 -6.8 -64.6 -28.1

BA2013F FY

779.2 To

-449.3 Cu330.0 Ca

-139.9 ST190.1 Inv-28.4 Tra

- Ot- Ot

161.7 LT-37.4 Ne-17.2 Ot107.1 To202.1 Cu

1,121.5 Tra Ad

STOt

Lo Lo Ot Sh Pa Re Mi KE

2013F FY

79.9 Gr107.1 Sa12.0 Op11.5 EB

(50.6) Ne-202.0 EP-14.6 Pr

-180.2 Gr-7.2 Op

-122.1 EB121.4 Ne12.4 RO68.3 RO2.4 St

38.2 Gr-0.7 Ne

Int Int Ca Ca Cu Qu Ne Pe EP CF BV SP EB DP

ALANCE SHEET (VNYE Dec

otal assets urrent assets ash T investment ventories ade receivable thers ther assets T Investment et fix assets thers otal liabilities urrent liabilities ade payable dvance from customerT borrowings thers ong-term liabilities ong-term debts thers hareholders' equity aid in capital eserve nority interests

EY RATIOS YE Dec

rowth (% YoY) ales perating profit BITDA et profit PS rofitability (%) ross margin perating margin BITDA margin et margin OA OE ability ross debt/equity (%) et debt/equity (%) t. coverage (X) t. & ST debt coverageash flow int. coverageash flow int. & ST deburrent ratio (X) uick ratio (X) et cash/(debt) (VND ber share data (VND ) PS FPS VPS PS BITDA/share PS

ND b) 200

2,3301,781

1215

1,342303

9548500

938

1,2451,160

68

rs 585219288857212

1,084649233200

200

nnnnn

473334251335

331833

e (X) 1

(X) 5

bt (X) 010

b) -165

1,84

1710,26

7,322,49

23

09 2010

0.0 2,470.3 2.8 1,925.6 2.3 206.2

5.0 2.7 1,411.0 23.6 289.4 9.2 19.0 8.2 544.7 0.7 453.9 9.5 49.1 8.0 41.7 5.7 1,100.9 10.7 1,018.2 18.1 91.9 5.1 501.6 9.5 195.8 8.0 228.9 5.0 82.7 2.4 56.4 2.6 26.3 4.3 1,369.4 19.7 945.2 13.8 244.6 0.8 179.6

09 2010

n/a 33.2 n/a 12.8 n/a 14.7 n/a 17.7 n/a 9.7

7.6 41.6 3.3 28.2 4.1 29.4 5.2 22.2 3.6 7.8 5.9 18.0

3.0 21.2 8.7 3.9 3.5 13.9 .8 1.1

5.1 -0.8 0.3 -0.1 .5 1.9

0.4 0.5 5.6 -46.0

43 2,021 78 919 62 12,882 125 9,093 99 2,671 37 356

Nam Long G

2011 2012

2,894.7 3,069.8 2,403.7 2,604.5

141.6 113.5 1.8

2,059.0 2,197.8 179.2 264.9 23.9 26.5

491.0 465.2 352.7 328.7 53.3 60.1 85.0 76.4

1,382.2 1,514.5 ,183.8 1,357.6

72.9 100.8 369.8 306.8 295.4 518.1 445.7 431.9 198.4 156.9 172.7 122.7 25.7 34.2

1,512.5 1,555.2 ,029.4 1,078.4 200.2 194.3 282.9 282.5

2011 2012E

-12.6 -37.1 -51.6 -34.0 -49.6 -29.2 -42.6 -77.0 -42.6 -77.8

37.4 43.7 15.6 16.4 16.9 19.1 14.6 5.3 4.0 0.8 8.9 2.0

38.1 50.4 26.6 41.3 5.2 1.0 0.4 0.2

-9.0 -2.7 -0.7 -0.4 2.0 1.9 0.3 0.3

-326.5 -525.6

1,161 258 -699 -294

13,314 13,325 7,947 4,834 1,347 922

533 400

of 25

Group

2013F

68.8 151.2 129.6 334.7 334.7

42.3 24.4 25.9 13.7 3.4 8.1

51.4 43.1 4.3 0.4 1.8 0.2 2.1 0.3

-594.5

1,121 -7

14,446 8,158 2,116

400

23 Apr

P K BARegion(65) 64

WONG Acting (603) 2

ONG SRegion(65) 64

WONG C(603) 2 Stra Co

Desmo(603) 2 Ban

LIAW T(603) 2 Oil Aut Shi

ONG Ch(603) 2 Pla

Mohsh(603) 2 Avi Pet Pow

YIN Sha(603) 2 Ga Me Pow

TAN CH(603) 2 Co Pow

WONG W(603) 2 Pro

LEE Ye(603) 2 Bui Ma Tec

LEE Chchengh Tec

Edward(852) 2 Co

Ivan CH(852) 2 Pro Ind

Ivan LI(852) 2 Ban

Jacque(852) 2 Co

Andy P(852) 2 Tel

Alex YE(852) 2 Ind

Warren(852) 2 Tec

Karen (852) 2 Ch

Jeremy(852) 2 Ga

Jigar S(91) 22 Oil Aut Cem

Anubh(91) 22 Me Ca Pro

Ganesh(91) 22 Tel Co

ril 2013

ASU nal Head, Research &432 1821 pk.basu@mChew Hann, CA Regional Head of In

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ond CH’NG, ACA 297 8680 desmond.chnking - Regional hong Jung 297 8688 tjliaw@mayb& Gas tomotive ipping hee Ting, CA 297 8678 ct.ong@may

antations hin AZIZ 297 8692 mohshin.aziation trochem wer ao Yang, CPA 297 8916 samuel.y@mming – Regional dia wer

HI WEI, CFA 297 8690 chiwei.t@manstruction & Infrastructwer Wei Sum, CFA 297 8679 weisum@ma

operty & REITs en Ling 297 8691 lee.yl@maybilding Materials nufacturing chnology heng Hooi Head of [email protected]

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AVANANANDA 1398 pongrat.R@mayl Caps

VIETNAM , CFA Head of Researmichael.kokalari@may

Tuyen x 8081 tuyen.nguyen@erage

x 8084 van.ngo@mayb

ep x 8242 diep.trinh@may

oa x 8083 thoa.dang@ma

a x 8088 hoa.nguyen@m

Nam Long G

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ch 399

ybank-ke.co.th

bank-ke.co.th

aybank-ke.co.th

ybank-ke.co.th

maybank-ke.co.th

maybank-ke.co.th

ybank-ke.co.th

ybank-ke.co.th

rch bank-kimeng.com.vn

@maybank-kimeng.com

bank-kimeng.com.vn

ybank-kimeng.com.vn

aybank-kimeng.com.vn

maybank-kimeng.com.v

2 of 25

Group

m.vn

vn

23 Apr

APPE DISCLAThis resoffer to each seTechnicinformainvestedtake intshould recomm

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AIMERS search report is psell or a solicitatecurity’s price ocal ratings may dation extracted frd. Past performato account the sptherefore seek f

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as specifically pT accepts no liab

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MS FOR PROV

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or value may risdiffer from fundarom the relevant ance is not necepecific investmenfinancial, legal aeport. ned herein has bad, its subsidiary d it should not bntatives”) shall no opinions or reco

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permitted, no parility whatsoever f

repared by MKEct of 1934, as aon 15 of the Secby Maybank KESdirected at you if

before reading ons.

g distributed by is for InformationAct 2000 within

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VISION OF R

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he Thai Institute Commission. The

ment disclosed ton evaluation of oListed Compani

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Maybank Kim Enal Purposes onlythe UK. Any incuracy, and that ice, and that for a

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person or entity e would be contrescribed herein mat additional disc

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ND DISCLOS

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who is a citizen orary to law or regmay not be eligibclaimers, warning

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of this report, md in this report, psuch securities on this report. MKbefore the materiort.

ansmitted to, cop Representatives

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nge. Maybank Kn in Singapore, rthe recipient of t

ures Act), Mayba

orate governanceof a company listeral public invesn.The survey resfter that date. M

manner without t

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rough a registereon from making itng investments

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rest s Representativesy have assumedother services fopril 2013, Maybay have a businesore, Investors shes may from time

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d in the securitiesay also perform

ny companies rewarrants on the s

decisions. MBKEecurities mentionred to as definedd Futures Commmended in this reecurities for, or cuhe previous 12 m for the services

nd all of the subjemendations or vie

or sale only to soaffected by chanket conditions ans own analysis o

edistributed with

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a Participating sia. Singapore: ority of Singaporated by the BAPtry of Finance ange and is regul71/UBCK-GP) iss and Futures CoINF/INB 231452

lso registered wiby the FINRA –

s referred to hereor seek to perfo

commended in tsecurities /compaET, its associatened in this reportd by the requirem

mission. esearch report. urrently may ma

months, significan provided from th

ect securities or ews expressed in

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Nam Long G

Organization of This material is re. Indonesia: PPEPAM LK. Thaand the Securitielated by the Secs licensed undeommission. India2435) and the Both SEBI as CateBroker ID 2786

ein and may furthrm investment b

his research repoanies mentioneds, directors, connt. ments under Para

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issuers; and no n the report.

estors who are cac, financial and pthe credit quality nd consult with it

onsent of MKE.

ment ratings are rry investment ra

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23 Aprril 2013

Nam Long G

5 of 25

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