1
1
2
3
4
CONTENT
THE GROUP
LONG TERM GROWTH
NEW MANUFACTURING
DISCUSSION
CONTENTS
2
5
BUSINESS ACTIVITIES
PART I
THE GROUP
3
Strictly ConfidentialHISTORY
4
37,20046,300
96,000
2015 2016 2017
1st factory was opened
An PhatMineral was incorporated
First entered Japan market
#1 plastic packaging in SEA
#1 plastic packaging exporter in Vietnam
#1 listed plastic packaging com. in VN2005
2009
2013
2017
GROUP HISTORYIn 2002, An Phat Plastic was established. After 15 years, under the great
leadership of Mr. Pham Anh Duong – Chairman, An Phat possesses outstanding
growth and has been listed in Vietnam Fortune 500 in the most recent 3 years.
Companies report
2018
1 0 0 h e c t a
Hai Duong province: 2
Yen Bai province: 1
• Plastic packaging
• Fi l ler master batch,
addit ives, compounds
CURRENT MANUFACTURING CAPACITY
5
2,000+ workers
9 plants,
100% plast ic
packaging exported
• Other products:
polyester, petro-
chemical…
• FIBC, PP woven &
non-woven bags
Ford Vietnam
Road 5 (AH14))
An Phat Plastics
Complex
YEN BAI
HAI DUONG
Strictly ConfidentialFOUNDERS AND KEY MANAGEMENTS GEOGRAPHICS
6
“At An Phat, 15-years is just the
beginning. An Phat will become the
market pioneer in petrochemical and
plastic industry of Vietnam,
increasing the manufacturing’s
competitive capacity of the country
to the next level”
PhD 03
MBA 12
Engineer 18
Chemical engineering
Precise mechanics
Finance & banking
Financial accounting
Company’s 15 years
experience in plastic
manufacturing
Nguyen Le Trung
Founder, Member of BOD, An Phat Holdings
CEO, An Phat Plastic
Pham Hoang Viet
Founder, Member of BOD, An Phat Holdings
Permanent Vice Director, An Phat Plastic
Vu Thanh Binh
Chairman, An Phat Mineral
Nguyen Huu Long
CEO, An Thanh Bicsol
Nguyen Duc Long
CEO, An Tin Logistics
Dinh Xuan Cuong
CEO, Anphat Holdings
Nong Huy Hoang
CEO, An Cuong Hi-tech
Building Materials
Bui Minh Hai
CEO, An Vinh PackagingDang Quang Khoi
CEO, Dai An Plastic
Strictly ConfidentialBUSINESS STRATEGY
• Provide high technology and environmentally friendly products and offer premium services to fulfill highly demanding markets
1. PRODUCTS
• Increase capacity quickly and sustainably, increase market share through new products, expand existing market share, and add new business activities to explore new market
2. MARKET
• Financial prudence is fully applied in An Phat's operations, not only in maintaining reasonable financial leverage, but also in managing bad debts, increasing capital turnover, and especially cautious investment in new business on the basis of thorough research and market preparation to protect and increase shareholders’ value.
3. FINANCIAL PRUDENCE
• Application R&D with worldwide leaders, new business incorporation or M&A to penetrate markets both vertically and horizontally, with the aim of creating the best value-chain in the industry.
4. ALLIANCE
7
Strictly Confidential
PART II
BUSINESS
ACTIVITIES
8
37 hec ta
An Dong industrial zone, Hai
Duong province
Plastic packaging
96,000 MT / year
CURRENT MANUFACTURING CAMPUS # 1
9
2,000 workers
7 plants,
100% export
Strictly ConfidentialAN PHAT PLASTIC AND GREEN ENVIRONMENT JSC (AAA)
10
Incorporated
2002
Charter capital
USD 73.3 mil
Consolidated revenue 2017
USD 180 mil
No.1 Plastic packaging manufacturer in SEA
8,000 MT/month
Listed in HOSE
Ticker: AAAMarket Cap: USD161 mil (at 10 April 2018)
(ex-rate: 22,820)
Strictly ConfidentialAN PHAT PLASTIC AND GREEN ENVIRONMENT JSC. (AAA)
11
100% plastic bags of the Company are exported to 55 countries including the EU, Japan, USA, Australia
No.1 biodegradable packaging manufacturer in Vietnam
13,080.83
18,134.91
-
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
20,000.00
QI/2017 QI/2018
MT
YOY GROWTH OF PRODUCTION Q1 2018 (MT)1.6%
48.4%
3.8%3.0%
18.6%
0.1%
24.4%
EXPORTING MARKETS BREAKDOWN 2017
Asia EU America Australia Japan Africa Others
2,500
2,050 1,450
900
900 200
MONTHLY PRODUCTION BREAKDOWN 2017 (MT)
Garbage bags Bags on roll T-shirt Shopping bagsCompostable bags Drawtape bags Others
10%
8%
10%
12%
15%
6%
4%
6%
9%
10%
4%2%
4%
6%7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2013 2014 2015 2016 2017
PLASTIC PACKAGING MARGINS 2017
EBITDA Margin EBIT Margin Net Margin
Strictly ConfidentialAN PHAT PLASTIC AND GREEN ENVIRONMENT JSC. (AAA)
12
One of the
ONLY 5
Asian
members
in European
Bioplastics
Association
Strictly ConfidentialAN PHAT PLASTIC AND GREEN ENVIRONMENT JSC. (AAA)
in term of ASSET, EQUITY, MARKET
CAP, and REVENUE among the-
same-sector listed companies
(Separated reports, Cafef.vn, Dec 2017)
13
(ex-rate: 22,735)
163.83
34.19
1.19
55.37 47.43
24.64
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
AAA CLC HBD RDP HPP TPC
Total asset as of year 2017 (audited) (USD Mil)
AAA
CLC
HBD
RDP
HPP
TPC
60.07
19.66
1.06
21.78
11.29 13.53
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
AAA CLC HBD RDP HPP TPC
Total equity as of year 2017 (audited) (USD Mil)
156.19
80.81
0.21
57.24
40.39
23.99
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
AAA CLC HBD RDP HPP TPC
Total revenue of 2017 (audited) (USD Mil)
121.71
55.85
0.84
22.27 16.30
9.82
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
AAA CLC HBD RDP HPP TPC
Market Cap as at 31 Dec 2017(USD Mil)
Strictly ConfidentialAN PHAT YEN BAI MINERAL AND PLASTIC JSC (HII)
14
Design capacity: 2 plants
372.000 ton/year
TOP 2 manufacturer of plastic raw
materials and additives of Vietnam
Incorporation
2009
Charter capital
USD 6 million More than 80 frequent customers
(Company report, 2017)
Listed in HOSE
Ticker: HII
Market Cap: USD15.7 mil
(31 Dec 2017)
58.6
2.7
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Sales Net Profit
MIL
US
D
CONSOLIDATED SALES & PROFIT 2017
Strictly ConfidentialAN THANH BICSOL JSC
15
Incorporation
2017
Charter capital
USD 4.4 mil
Main Business
Top 2 suppliers of additives, chemicals and compounds for
the plastic industry, biodegradable and plastic bags, PP and
PE products
Large and stable supply to customers upon bargaining power
In charge of export sales for customers and partners,
ensuring all outputs up to standards of An Phat and
improving reputation for made in Vietnam products
Support customers regarding technology and production
procedures
Strictly ConfidentialAN TIN INTER-TRANSPORT JSC.
16
Transportation capacity
2,600 inland trips/month
100 tractors
150 trailers
Warehouse
10,000m2
Incorporation
2016
100
152
198
256
300
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
0
50
100
150
200
250
300
350
2017 2018 2019 2020 2021
TO
NS
VE
HIC
LE
S
Current capacity
Number of vehicles Volume of transportation
Charter capital
USD 4.4 mil
17
2017 BUSINESS RESULTS - CONSOLIDATED
• During 2013 and 2017, CAGR of consolidated sales
amounted to 28.61%.
• 2017’s consolidated sales was up 90% compared
to 2016’s.
• During 2013 and 2017, CAGR of consolidated net
profit was 32.38%.
• 2017’s consolidated net profit was up 90%
compared to 2016’s.
51.07
68.96 71.22
94.56
179.67
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
2013 2014 2015 2016 2017
US
D M
il
CONSOLIDATED REVENUES2013 – 2017 (USD Mil)
2.42 2.07
1.76
6.26
9.84
-
2.00
4.00
6.00
8.00
10.00
12.00
2013 2014 2015 2016 2017
US
D M
il
CONSOLIDATED NET PROFITS 2013 – 2017 (USD Mil)
Strictly Confidential
PART III
LONG TERM
BUSINES GROWTH
18
Strictly ConfidentialCHAIRMAN’S VISION
19
“An Phát will become the pioneer public group in Vietnam Plastics-
Petrochemicals industry. An Phat will provide big market solutions
to industry, develop and stabilize input raw materials of
petrochemical products from plastic resins to chemical and
additives, as well as manufacture high technology industrial plastic
products and high quality and ecofriendly finished products for end
users. By lengthening business chain, An Phat will create more
values to Vietnam Plastics-Petrochemical industry, while generating
revenue and profit for shareholders and employees”
Strictly Confidential
20
BUSINESS AREA – PLASTIC VALUE CHAIN
1. BIO PLASTICS 2. PACKAGING3. CONSUMER
GOODS
6. PETROCHEMICAL 5. POLYESTER4. ENGINEERING
PLASTICS
Biodegradable &
compostable bagsPlastic bags Household plastics,
kitchen utensils
Plastics for smartphone &
electronics, automotive &
home appliancePSF, DTY, chips
Refinery & petrochemical
products
Premium industrial bags for
pharmaceutical & foods Mom & baby plasticsBiodegradable
compounds
Hi-tech building plastics,
wall foam and decorationTextiles chain (dying)Chemical, additives
Lengthen to raw materials & industrial users
Lengthen to end users
Strictly Confidential
21
R&D AND INVESTMENT
MANUFACTURING RAW MATERIALS
MANUFACTURING
FINISHED PRODUCTS
ONE-STOP SHOP
MARKET
SOLUTION
LOGISTICS
ECOSYSTEM
SYNERGY
ENTERPRENEURIAL ECOSYSTEM
The hub for INVESTMENT & HOLDING new
business, R&D specializing in high quality,
high technology, eco-friendly plastics
An Phat Mineral
JSC is the TOP 2
domestic
manufacturer for
stable and low-cost
inputs, specializing
in CaCO3 nano
powder, filer
masterbatch, &
plastic additives
An Thanh Bicsol JSC provides big
corporate solution for customers,
supplying PP and PE raw
materials, plastic bags, plastic
compounds and additives,
generating value added to
customers
An Tin Logistics JSC
is in charge of
logistics with many
good services and
high reliability.
An Phat Plastic – #1 plastic
packaging manufacturer in
South East Asia, exporting
100% worldwide
BUSINESS MANAGEMENT STRUCTURE
SUPPORTING COMPANIES
Automotive
47ha
Greenfield
investment
An Phat Plastics Complex @
KENMARK VIETHOA
INDUSTRIAL ZONE
o Hi-tech injection molding
o Premium industrial bags
FIBC
o Bio-plastics
Ford Vietnam
Road 5 (AH14))
An Phat Plastics
Complex
EXPANSION PLAN: MANUFACTURING CAMPUS # 2
23
o 0% in first 04 years
o 50% of normal tax rate in
09 years after
o Tax of 10% for hi -tech such
as automotive plastics
• Already built Road
• Electric System Ready-to-Use
• 08 factory blocks Ready-to-Use
• Ready-to-Use Water Treatment System
(6500 sq. m. / blocks)
~ ¼ Total Area
Floor & Roof
MANUFACTURING CAMPUS # 2
24
Strictly Confidential
PART IV
NEW
MANUFACTURING
25
Strictly ConfidentialAN PHAT HOLDINGS
RESEARCH & DEVELOPMENT
26
GOAL
Application R&D for high quality & technology
plastic, engineering plastic and eco-friendly
products
PARTNERSHIP
Build long-term partnerships with worldwide
leading groups (BASF, SABIC, SCG,
RELIANCE, etc) and receive modern
technology transfer for high technology
products and eco-friendly products
RATIONALES*
- Higher profit margins
- Social responsibility (bio-degradable, eco-
fuel consumption, less discharge)
- Consumption trend with huge potential
demands as enacted into law
KEY ROLES: The hub for INVESTMENT & HOLDING, and for comprehensive R&D activities to facilitate
effective operation of the whole group, targeting to become a leading plastic group in Asia.
Strictly Confidential
27
REALIZE NEW BUSINESS BY NEW MANUFACTURING
Strictly Confidential
BIODEGRADABLE PACKAGING & RAW MATERIALS
28
o Produce biodegradable bags, increase
production volume and exports, upto at
least 2,000 tons per month
o Produce raw material for biodegradable
products (compounds)
Greenfield Project
RATIONALES:
o Profit margins higher than ordinary plastic bags;
o Committed to Corporate Social Responsibility
(degradable, environmental-friendly);
o Promising market demand as enacted by law
NEW BUSINESS ON PROGRESS - EXPANSION
http://goumbook.com/plastic-bags-charges-taxes-bans-list-countries/ FMI, 2014
Global bio-based biodegradable plastic consumption
by region (‘000 tons)
Strictly Confidential
HI-TECH BUILDING MATERIALS
o Period 1: 37,000 m2/month
o Period 2: 54,000 m2/month
o Period 3: 70,000 m2/month
Production: high tech plastic wall
panel used in construction
Rationales:
o Growing domestic demand for building
materials; high and stable growth rate;
o Majority of products are imported;
o Meeting the demand arising from
apartments, hotels, resorts and middle-
class offices
o Highly profitable.
NEW BUSINESS ON PROGRESS
29
704
886
1,103
1,360
1,664
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2018 2019 2020 2021 2022
DOMESTIC MARKET DEMAND (thousand m2)
CAGR:18.8%
Strictly Confidential
30
RATIONALES:
o Take advantage of domestic raw
material supply;
o Take advantage of low labor,
utilities cost, already-accessible
market;
o Take advantage of resources and
experience in packaging industry;
o High profitability and promising
market: pharmaceuticals & foods
NEW BUSINESS ON PROGRESS
FIBC – PREMIUM INDUSTRIAL PACKAGING
MAIN PRODUCTIONS:
Premium industrial Packaging
• PP Bags
• Jumbo Bags
• Sling Bags
• Capacity: 2,000 tons/month
Strictly Confidential
31
300 highly trained employees
Investment in
production lines
Area
6,500m2
Qualified Engineers
RATIONALES
o Huge market demand in the North
o Apply high tech in production
o AIM to become primary vendor of Samsung Vietnam
NEW BUSINESS ON PROGRESS
An Phat Plastics
Complex
INJECTION MOLDING PLASTICS
o 0% in first 04 years
o 50% of normal CIT in 09 years after
(*) According to IDC reports, (IDC, 2017), (Su, 2016), (Graziano, 2017), (Statista, 2017)
(**): 35% of Samsung mobiles are produced in Vietnam (Duc, 2016)
NEW BUSINESS ON PROGRESS
INJECTION MOLDING PLASTICS
Strictly Confidential
33
Green field
investment
RATIONALES:
o Huge domestic demand for premium products, highly
profitable
o Mom & baby plastics are almost imported, popular
brands are Pigeon, Chicco, Avent, Medela, NUK
PROJECT ON EARLY DEVELOPMENT - CONSUMER GOODS
An Phat Plastics
Complex
MOM & BABY PLASTICS & HIGH QUALIFY CONSUMER GOODS
o 0% in first 04 years
o 50% of normal CIT in 09 years after
R&D
o Need more research on suitable raw materials
o Market positioning, pricing strategy
Branding
o Targeted customers
o Developing An Phat’s own brands
Strictly Confidential
PART V
DISCUSSION
34
Strictly Confidential
THANK YOU!
35
Nguyen Le Hang (Ms.)
Deputy Chief Executive Officer
AN PHAT HOLDINGS - Aspiration & Prosperity
A | 17th floor, PV OIL Building, No.148 Hoang Quoc Viet str.,
Cau Giay dist., Ha Noi, Viet Nam
M | +84 93 111 7576 T | +84 243 206 1199 F | +8424 3200 8921
W | anphatholdings.com