HO CHI MINH CITY INFRASTRUCTURE INVESTMENT JSC. INVESTOR - PowerPoint PPT Presentation

HO CHI MINH CITY INFRASTRUCTURE INVESTMENT JSC. INVESTOR PRESENTATION AUGUST 2017

TOC TABLE OF CONTENTS 2  PART I: 2017 SNAPSHOT Page 3  COMPANY OVERVIEW Page 4  ORGANIZATION STRUCTURE Page 5  PERFORMANCE OVERVIEW Page 6  PART II: THE 2018 - 2020 GROWTH PROSPECT Page 7  INVESTMENT PLAN Page 8  FINANCIAL PROJECTION Page 9  APPENDIX: INVESTMENT PORTFOLIO Page 10  CII BRIDGE & ROAD Page 11  CII LAND Page 14  CII WATER Page 17  CII CONSTRUCTION Page 19

PART I: 2017 SNAPSHOT Hanoi Highway, HCMC

Part I COMPANY OVERVIEW 4 Ownership Structure 2001 2017 Market Recognition August 2017 7 1 Establishment: Achievement: Forbes: 10.2% 2 50 Best Listed An SPV created by local The largest and most VN Companies 9.8% reputable listed private government specifically to (2015 - 2017) attract private investment in infrastructure development 3 infrastructure projects company in Vietnam 8.8% 50.2% Member of the HOSE VN30 VND 19,465B VND 1,091B 4 (since 2012) 7.5% Total Asset 17x Increase 6.8% 6.7% VND 11,809B 6.2 VND 5,808 5 VND 700B 6 P/E* EPS (2017E) Total Debt 16x Increase Vietnam Oman Investment (VOI) 1 VND 7,656B VND 372B VND 8,874B Total Equity Market Capital* 19x Increase HCMC Finance & Investment (HFIC) 2 Ayala 3 280M 246M 30M Goldman Sachs (GS) 4 Outstanding Shares Issued Shares 9x Increase Amersham Industries 5 PYN Elite 6 10% 63% 27% 100% 70% State Foreign Local State ownership Foreign Ownership Limit Others 7 *Source: financial figures was based *Assuming average price of 1H2017 on the consolidated financial = 36,040 VND/share statement as of 30 Jun3 2017

Part I ORGANIZATION STRUCTURE 5 CII HOLDINGS Service Bridge & Road Construction Real estate Water Toll collection & Infrastructure Infrastructure Land bank Infrastructure Maintenance Property Property Status: Private HOSE ticker: LGC HOSE ticker: CEE Status: to-be-established HOSE ticker: SII Legal Cap: VND645 B Legal Cap: VND10 B Legal Cap : VND1,929 B Legal Cap: VND415 B Legal Cap: VND1,000B Market Cap: N/A Market Cap: VND4,571 B Market Cap: VND1,104 B Market Cap : N/A Market Cap: VND1,358 B Establishment : 2001 Establishment: in 2000 as a Establishment: in 2000 as Establishment : CII plans to Establishment : in 2004 as mechanical & lighting 565 construction company. acquire an already listed Viet Thanh construction equipment company. Then CII Then CII acquired and property company and company. Then CII acquired acquired and restructured it restructured it into CII E&C in restructure it into CII Land and restructured it into CII Water in 2013. into CII B&R in 2014 2013 Business: Developing, Business: Toll collection & Business: Invest in bridge and Business: Infrastructure and Business: Developing and maintenance services / tree- road infrastructure projects for real estate construction trading commercial and owning, and operating water infrastructure projects. care services toll collection right residential real estate Business model/contract : Business model/contract : Business model/contract : Business model/contract : Business model/contract : Internal service provider BOT & BT EPC BT BOO Major Shareholder: Major Shareholder: Major Shareholder: Major Shareholder: Major Shareholder:     CII – 51%  CII - 56% CII - 100% CII - 54% CII - 100%   Metro Pacific - 45% (CII is looking for strategic Manila Water - 32%  partner) VOI - 12% *All data is updated as of 30/06/2017

Part I PERFORMANCE OVERVIEW 6 Dele De leve veraging ing Gr Growin wing Outst standing ing FINANCIA FINANCIAL L DEB DEBTS S (1H20 H2017) CAPITA ITAL L STR TRUCTU TURE PROFITS FITS & EA EARNIN INGS Equity (VND B) NPATMI (VND B) Total: VND 9,876B , Average cost: 8.6% p.a 6,399 Debts EPS (VND/share) Breakdown: Total assets 19,465 By lender By Currency By Maturity 15,805 15,066 11% 9% 10% 19% 3,353 20% 62% 3,245 2,959 9,035 62% 1,576 11% 8,017 69% 90% 50% 80% 70% 838 80% 768 625 38% 38% 388 31% Convertible bonds 1 year 2 year USD 30% 86 20% Bank loan 2013 2014 2015 2016* 2Q2017 2013 2014 2015 2016 2017E 3-5 year >5 years VND Corporate Bonds (*) Pro-forma: Assuming consolidation of LGC and CEE Imp mprovin ving Imp mprovin ving Ma Major r Out utst standing nding Equi Equity-linke nked De Debt DEBT REP DEBT EPAYME YMENT T CAPABILIT ILITY CASH DIVIDEN DIVIDEND EBITDA/Interest Cash dividend (VND/share) Conve Co vert rtibl ble Total USD 60M Bonds ds (US (USD) D) Debt/EBITDA Dividend yield Coupon 1%/year Duration 2017-2022 (5Y) issued to 7.6% 7.4% 7% 43.6 5.2 Strike price VND38,500/share Rhinos Asset 7% 4.5 6% Management (Korean) Convertible 35.4M shares 3.9 1) The bond was issued in 2 tranches: First tranche of USD 40M (1Q2017) and second tranche of USD 20M (3Q2017). 2.0 2,150 1,850 2) CII currently has issued a total of 279.8M shares and had bought 1,600 back 33.5M as treasury shares. These treasury shares will be used as 1,400 0.9 1,200 6.0 4.9 5.1 reserve for conversion of above CB (in a sense that they will be 13.6 cancelled as the bonds are converted into new shares). The average cost of treasury shares is 25,581 VND/share, meaning if the bond is converted, CII will effectively gain approx. 50%. 2013 2014 2015 2016 2017E 2013 2014 2015 2016 2017E

PART II: THE 2018 - 2020 GROWTH PROSPECT Thu Thiem New Urban Township 2015, HCMC

Part II INVESTMENT PLAN 8 Bridges Br idges & & Ro Road ads Real Rea l Es Estat tate CII II PARENT ARENT Seg egme ment nt Seg egme ment nt CAPITAL EX EXPECTED ECTED EXPECTED EX ECTED 3,400 1,640 1,760 INVESTMENT EQUITY UITY EQUITY UITY FOR CII INV INVES ESTMEN ENT INV INVES ESTMEN ENT VND bn VND bn VND bn Capital Capital Plan lan In Investmen vestment t Plan lan Investmen In vestment t Plan lan New shares issuance* VND 1,850 bn Binh Trieu (Phase 2) VND 300 bn Thu Thiem Riverpark* VND 950 bn Internal cash & additional debts VND 1,550 bn Hanoi Highway Expansion VND 520 bn 152 Dien Bien Phu Complex VND 310 bn Mergers and Acquisitions* VND 820 bn Thu Thiem BT (Phase 2)** VND 500 bn (*) CII expects to raise VND 1,850 bn through new share issuance to existing shareholders at the 2:1 ratio (1 new (*) M&A includes (i) purchasing shares of brownfield (*) CII will establish a JV with Hongkong Land to develop share for every 2 existing shares) by year-end 2017. The projects and (ii) increasing stakes in projects that CII has the Riverpark project, a luxurious residential project. price of new share will be 15,000 VND/share. not yet had major shares. (**) Under the Thu Thiem BT (Phase 2) Project, CII will construct the central lake in the Thu Thiem Area and will thus receive more land in the Thu Thiem area in return. Water ater & & Constr Constructi tion In Investmen vestment t Ra Rati tionale ale In Investmen vestment t Ra Rati tionale ale Seg Segmen ment ► Securing long-term growth by developing ► Obtaining prime land-bank at reasonable and increasing stakes in mega projects (such valuation by continuously investing in Water ater Segment Segment as the Trung Luong – My Thuan Expressway) “infrastructure exchange for land” BT projects CII will focus on managing existing portfolio, such as the Thu Thiem Phase 2 project. ► Increasing operation effectiveness by especially major projects (such as the Tan Hiep 2 ► Fueling medium-term growth by developing focusing on HCMC and Mekong Delta areas, and the Cu Chi Projects) just starting operation in where CII has already established a strong residential projects in prime areas such as the 2017. portfolio of BOT projects. Lakeview and Riverpark Projects in the Thu Thiem Area. Co Constr tructi tion Seg Segmen ment ► Minimizing investment risks and quickly ► Creating long-term value by developing real generating profits & cash by investing in CII E&C will focus on constructing current CII’s brownfield projects with strong revenue base. estate and infrastructure projects within the project and thus does not need to raise equity at same area (such as the combination of the the moment. Thu Thiem projects & Elevated Road No.1)