ANNUAL GENERAL MEETING OF SHAREHOLDERS IN 2020 Hanoi, June 2020 I. - - PowerPoint PPT Presentation

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ANNUAL GENERAL MEETING OF SHAREHOLDERS IN 2020 Hanoi, June 2020 I. - - PowerPoint PPT Presentation

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ANNUAL GENERAL MEETING OF SHAREHOLDERS IN 2020 Hanoi, June 2020 I. HOA PHAT GROUP OVERVIEW COMPANY SIZE ACHIEVEMENT Establishing in 1992 Top 10 Largest private enterprises in Vietnam Perform in 5 business segments Top 50 Best

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SLIDE 1

ANNUAL GENERAL MEETING OF SHAREHOLDERS IN 2020

Hanoi, June 2020

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SLIDE 2
  • I. HOA PHAT GROUP OVERVIEW
  • Establishing in 1992
  • Perform in 5 business segments
  • 11 subsidiaries
  • 23,000 employees
  • Top 10 Largest private enterprises in Vietnam
  • Top 50 Best listed companies in Vietnam
  • Top 50 The most effective enterprises in Vietnam
  • National branch from 2012 to the present

COMPANY SIZE ACHIEVEMENT

2010

20,000 40,000 60,000 80,000 100,000 2,000 4,000 6,000 8,000 1,0000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

14,493 18,093 17,122 19,200 25,852 27,865 33,885 46,855 56,580 64,678 86,000 1,031 2,010 3,250 3,504 6,606 8,015 8,601 7,578 9,000 1,376 1,297

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SLIDE 3

IMPORTANT HISTORICAL LANDMARK

8/1992 11/1995 1/2011 8/2012 1/2007 8/2007 9/3/2015 2/2016 8/1996 2001 2013 15/11/2007 6/2009 2/2017 2019 Quarter II/2020

  • I. HOA PHAT GROUP OVERVIEW

Establishing Hoa Phat Equipment & Accessories Co., Ltd – the fjrst company that bore the brand of Hoa Phat. Restructuring as a group with Hoa Phat Group Joint Stock Company being the Parent Company of its subsidiaries Listing HPG shares on the November 15, 2007 Vietnam Stock Market Structuring of

  • peration model of

the Parent Company by separating the steel production and trading segment. Finishing the second phase of the Hoa Phat Steel Integrated Complex, raising the total capacity

  • f Hoa Phat to

1.15 million tons per year. Hoa Phat offjcially launched Hoa Phat Hung Yen Feeds Limited Liability Company, marking a new step in the Group’s development history by penetrating the agricultural segment. Establishing Hoa Phat Dung Quat Steel JSC, initiating Hoa Phat Dung Quat Steel Integrated Complex in Quang Ngai Province with the capacity of 4 million tons per year and the total investment

  • f VND 52,000 billion,

marking a turning point in Hoa Phat Group’s development. Hoa Phat Dung Quat Steel Integrated Complex in Quang Ngai Province produce the fjrst hot rolled coil steel Establishing Hoa Phat Steel Pipe Co., Ltd Establishing Hoa Phat Furniture JSC. Establishing Hoa Phat Steel JSC, now Hoa Phat Hung Yen Steel Co., Ltd; Hoa Phat Refrigeration Engineering Co.,

  • Ltd. and Hoa Phat

Urban Development and Construction JSC. Establishing Hoa Phat Hai Duong Steel JSC to initiate the Hoa Phat Steel Integrated Complex in Kinh Mon District, Hai Duong Province. An Thong Mineral Investment JSC became a member of the Hoa Phat Group. 20th anniversary

  • f Hoa Phat

development, Third Class Labour Order awarded by the President. Establishing Hoa Phat Agriculture Development JSC, which manages and coordinates the

  • perations of all

subsidiaries in the agriculture segment (including animal feed and breeding). The fjrst two blast furnaces of the Hoa Phat Dung Quat Steel Integrated Complex Project were offjcially put into operation, bringing the total construction steel capacity of Hoa Phat to 4.4 million tons per year.

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SLIDE 4
  • I. HOA PHAT GROUP OVERVIEW

GENERAL MEETING OF SHAREHOLDERS BOARD OF MANAGEMENT SUBSIDIARIES BOARD OF DIRECTORS HEAD OFFICE SUPERVISORY BOARD

  • 1. Hoa Phat Hung Yen Steel Co., Ltd t

2. Hoa Phat Hai Duong Steel JSC

  • 3. Hoa Phat Dung Quat Steel JSC

4. Hoa Phat Metal Producing Co., Ltd

  • 5. An Thong Mineral Investment JSC
  • 6. Hoa Phat Steel Pipe Co., Ltd
  • 7. Hoa Phat Steel Sheet Co., Ltd
  • 8. Hoa Phat Agriculture Development JSC
  • 9. Hoa Phat Furniture JSC
  • 10. Hoa Phat Refrigeration Engineering Co., Ltd
  • 11. Hoa Phat Urban Development and Construction JSC
  • 1. Internal control board
  • 2. Financial department
  • 3. IT department
  • 4. Legal department
  • 5. PR department
  • 6. Administration department
  • 7. R&D department

ORGANIZATION STRUCTURE

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SLIDE 5

HOA PHAT GROUP OTHER INDUSTRIAL PRODUCTION REAL ESTATE AGRICULTURE IRON AND STEEL STEEL PIPE - PREPAINTED HOT DIPPED GALVANIZED STEEL SHEET

Hoa Phat Hung Yen Steel Co., Ltd Hoa Phat Hai Duong Steel JSC Hoa Phat Dung Quat Steel JSC Hoa Phat Metal Producing Co.,Ltd An Thong Mineral Investment JSC Hoa Phat Furniture JSC Hoa Phat Refrigeration Engineering Co., Ltd Hoa Phat Urban Development and Construction JSC Hoa Phat Agriculture Development JSC Hoa Phat Steel Pipe Co., Ltd Hoa Phat Steel Sheet Co., Ltd

OPERATING MODEL

  • I. HOA PHAT GROUP OVERVIEW
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SLIDE 6

2007 2012 2014 2017 2016 2019 2008 2010 2015 2018 1,320 1,964 3,178 4,191 4,819 7,330 8,429 15,171 21,239 27,611

PROCESS OF INCREASING AUTHORIZED CAPITAL OF HOA PHAT GROUP FROM 2007-2019 (VND BIL):

  • I. HOA PHAT GROUP OVERVIEW
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SLIDE 7

2007 2012 2009 2014 2017 2011 2016 2019 2008 2013 2010 2015 2018 50% 50% 40% 30% 30% 30% 30% 30% 30% 25% 20% 20% 60%

10% cash and 40% share 30% cash 10% cash and 50% share 20% cash and 10% share 20% cash 20% share 15% cash and 15% share 10% cash and 20% share 15% cash and 15% share 50% share 40% share 30% share Expected 5% cash and 20% share

TABLE OF DIVIDEND CONTRIBUTION OF HPG FROM 2007 TO 2019 (%):

  • I. HOA PHAT GROUP OVERVIEW
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SLIDE 8

QUANTITY IN 2019 Market share

MARKET SHARE OF CONSTRUCTION STEEL

HPG 26.2% VNSteel 15.9% Vinakyoei 8.6%

Pomina 8.1%

Posco ss Vina 7.6% Others 33.6%

MARKET SHARE OF STEEL PIPE

HPG 31.50% Hoa Sen 15.25% Minh Ngoc 9.59%

TVP 8.24% Viet Duc 7.65%

Others 27.77%

  • Construction steel: 2,775,000 tons
  • Steel pipe: 750,000 tons
  • Construction steel: 26.2%
  • Steel pipe: 31.5%
  • II. STEEL
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SLIDE 9

1 2 3

4

5

When Hoa Phat Dung Quat Steel Integrated Complex in Quang Ngai Province is completed, Hoa Phat will enter The Top 50 Largest steel producing companies in the world with factory system spread across the country.

  • 1. HUNG YEN
  • Construction steel: 0.3 million tons/year (EAF)
  • Steel pipe: 0.4 million tons/year
  • Steel sheet: 0.4 million tons/year
  • 2. HAI DUONG
  • Construction steel: 2.0 million tons/year (BOF)
  • 3. DA NANG
  • Steel pipe: 0.2 million tons/year

4.QUANG NGAI (DUNG QUAT)

  • Construction steel: 2.0 million tons/year (BOF)
  • Hot rolled coil: 2.0 million tons/year (BOF)
  • 5. BINH DUONG
  • Steel pipe: 0.2 million tons/year
  • II. STEEL
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SLIDE 10

TABLE OF OUTPUT AND MARKET SHARE OF CONSTRUCTION STEEL OF HOA PHAT THROUGH YEARS

2019 2010

6,000,000 8,000,000 10,000,000 4,000,000 30% 2,000,000 05% 10% 15% 20% 25% 35% 0%

2011 2012 2013 2014 2015 2016 2017 2018 5 months

  • f 2020

580,000 644,000 611,000 698,000 1,001,000 1,380,000 4,806,000 12% 13% 14% 15% 19% 21% 22% 24% 24% 26% 31% 4,844,000 4,464,000 4,579,000 5,237,000 6,482,000 8,138,000 9,127,000 9,997,000 10,594,129 1,803,000 2,180,000 2,377,000 4,088,819 1,260,633 2,775,066

Consumption output of Vietnam steel association (tons) Consumption output of HPG (tons) Market share of HPG

  • II. STEEL
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SLIDE 11

CHART OF GROWTH PERCENTAGE OF MARKET SHARE OF TOP 5 CONSTRUCTION STEEL MANUFACTURING ENTERPRISES

2016 2011 2018 2013 2015 2010

PoscoSS Vina kyoei HPG POM VNSteel

2017 2012 2019 5 months

  • f 2020

2014

0% 5% 10% 15% 20% 25% 30%

12% 21% 26% 31%

  • II. STEEL
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SLIDE 12

60% 73% 67% 74% 74% 64% 67% 71% 71% 67% 74% 71% 68% 69% 74% 82% 81% 76% 67% 63% 64% 63% 63% 64% 67% 63% 59% 63% 65% 56% 58% 55% 59% 58% 52% 53%

49% 21% 14% 12% 31% 16% 3%

North Central South Export

PROPORTION OF HOA PHAT CONSTRUCTION STEEL IN REGIONAL AREAS (NORTH – CENTRAL – SOUTH) THROUGH YEARS

  • II. STEEL
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SLIDE 13
  • II. STEEL
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SLIDE 14

PROPORTION OF HOA PHAT CONSTRUCTION STEEL IN REGIONAL AREAS (NORTH – CENTRAL – SOUTH) THROUGH YEARS SOURCE: VSA)

North Central South

30% 36% 35% 35% 33% 30% 32% 35% 34% 37% 38% 35% 35% 32% 39% 34% 34% 31% 33% 33% 37% 38% 34% 31% 35% 36% 32% 37% 33% 29% 36% 30% 30% 31% 32% 31%

31% 30% 57% 51%

8% 10% 6% 10% 9% 6% 8% 10% 8% 11% 16% 8% 8% 3% 5% 4% 3% 4% 9% 10% 12% 10% 12% 13% 9% 10% 12% 12% 10% 13% 11% 13% 10% 17% 27% 22%

22% 26%

  • II. STEEL
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SLIDE 15
  • II. STEEL
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SLIDE 16

CHART OF GROWTH PERCENTAGE OF MARKET SHARE OF TOP 5 STEEL PIPE MANUFACTURING ENTERPRISES

2016 2016 2011 2018 2013 2015 2017 2012 2019 2014

Minh Ngoc

14%

23% 26% 26% 28% 32% 31%

HSG HPG Viet Duc SeAH VN 0% 5% 10% 15% 20% 25% 30%

  • II. STEEL

5 months

  • f 2020
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SLIDE 17
  • II. STEEL
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SLIDE 18

PROPORTION OF HOA PHAT STEEL PIPE IN REGIONAL AREAS (NORTH – CENTRAL – SOUTH) THROUGH YEARS

54% 47% 45% 47% 44% 48% 43% 37% 44% 43% 47%

46% 51%

16% 22% 20% 22% 21% 20% 21% 23% 19% 20% 19%

19% 15%

29% 30% 34% 30% 33% 29% 32% 37% 32% 35% 32%

32% 32%

1% 1% 2% 1% 2% 3% 5% 3% 5% 3% 2%

3% 2%

J a n

  • 1

9 F e b

  • 1

9 M a r

  • 1

9 A p r

  • 1

9 M a y

  • 1

9 J u n

  • 1

9 J u l

  • 1

9 A u g

  • 1

9 S e p

  • 1

9 O c t

  • 1

9 N

  • v
  • 1

9 D e c

  • 1

9 J a n

  • 2

F e b

  • 2

M a r

  • 2

A p r

  • 2

M a y

  • 2

North Central South Export

  • II. STEEL
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SLIDE 19

CHART OF DEVELOPMENT OF ORE PRICE AND COAL PRICE THROUGH YEARS (SOURCE: PLATT)

19/01/2015 19/02/2015 19/03/2015 19/04/2015 19/05/2015 19/06/2015 19/07/2015 19/08/2015 19/09/2015 19/10/2015 19/11/2015 19/12/2015 19/01/2016 19/02/2016 19/03/2016 19/04/2016 19/05/2016 19/06/2016 19/07/2016 19/08/2016 19/09/2016 19/10/2016 19/11/2016 19/12/2016 19/01/2017 19/02/2017 19/03/2017 19/04/2017 19/05/2017 19/06/2017 19/07/2017 19/08/2017 19/09/2017 19/10/2017 19/11/2017 19/12/2017 19/01/2018 19/02/2018 19/03/2018 19/04/2018 19/05/2018 19/06/2018 19/07/2018 19/08/2018 19/09/2018 19/10/2018 19/11/2018 19/12/2018 19/01/2019 19/02/2019 19/03/2019 19/04/2019 19/05/2019 19/06/2019 19/07/2019 19/08/2019 19/09/2019 19/10/2019 19/11/2019 19/12/2019 19/01/2020 19/02/2020 19/03/2020 19/04/2020 19/05/2020 19/06/2020 Ore price: Index Fe 62% CFR China Coal price: Premium Hard Coking Coal FOB Australia

  • 105.7

72.2 310 304 151 112 103 85.6 67

  • II. STEEL
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SLIDE 20
  • III. AGRICULTURE
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SLIDE 21

117,918 165,656 238,483

  • 50,000

100,000 150,000 200,000 250,000 300,000 2017 2018 2019 5T2020

CONSUMPTION OF ANIMAL FEED THROUGH YEARS (TONS)

23,591 136,229 314,889

  • 50,000

100,000 150,000 200,000 250,000 300,000 350,000 2017 2018 2019 5T2020

CONSUMPTION OF COMMERCIAL PIGS THROUGH YEARS (HPA)

40,212 78,422 134,157

  • 20,000

40,000 60,000 80,000 100,000 120,000 140,000 160,000 2017 2018 2019 5T2020

CONSUMPTION OF COMMERCIAL BEEF THROUGH YEARS (HPA)

20,097,911 122,158,325

  • 20,000,000

40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2017 2018 2019 5T2020

CONSUMPTION OF CHICKEN EGGS THROUGH YEARS (EGGS)

  • III. AGRICULTURE
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SLIDE 22
  • III. REAL ESTATE
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SLIDE 23

TT TARGETS NOTES LAND SIZE (ha)

Industrial Park Pho Noi A Industrial Area Pho Noi A Industrial Area Project 390ha Pho Noi A Industrial Area Project (expanded) 204ha Pho Noi A Industrial Area Project (expanded) 92.5ha Yen My II Industrial Area Yen My II Industrial Area Project – Phase 1 Yen My II Industrial Area Project – Phase 2 Yen My II Industrial Area Project (expanded) Hoa Mac Industrial Area

  • No. 6 An Thi Industrial Area

Urban housing Pho Noi Urban housing Project Pho Noi Urban housing Project (expanded) Yen So – Hoang Mai Complex Project

  • No. 173 Minh Khai street Offjce Building Project

A 1 2 3 4 B 1 2 3 4 1,509 687 390 204 93 384 98 70 216 439 308 262 32 1.70 0.06 % for rent 95% 97% 82% 66% Expected to lease at the end of 2020 Received the certifjcate of investment in 2015 Expected to lease in 2022 Be carring out proceduce Be carring out proceduce Under construction, product launch expected at the end of 2020 or early 2021 Applying for approval Applying for approval Applying for approval

  • III. REAL ESTATE
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SLIDE 24

EBITDA AND EBITDA GROWTH RATE BY QUARTERS OVER YEARS

1,163 1,862 1,719 1,385 1,665 2,914 2,364 2,801 2,832 2,444 3,141 3,432 3,336 3,302 3,667 2,824 2,995 3,393 3,128 3,355 4,572

36% 24% 19%

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 EBITDA EBITDA growth (this quarter compared to the previous quarter)

  • IV. FINANCIAL INDICATORS

0% 10% 20% 30% 40%

EBITDA increased sharply due to the contribution of Dung Quat

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SLIDE 25

80% 3% 3% 14% 60% 14% 2% 24%

PERCENTAGE OF REVENUE OF AGRICULTURE IN THE CONSOLIDATED REVENUE OF HOA PHAT GROUP IN QUARTER I/2020

  • IV. FINANCIAL INDICATORS

Steel Real Estate Others Agriculture

Beef Pigs Animal Feed Chicken

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SLIDE 26

PROPORTION OF BUSINESS SEGMENTS REVENUE

2018 2016 2019 2017 2015

0% 20% 40% 60% 80% 100% 120% 3% 3% 2% 2% 4% 5% 6% 6% 8% 9% 12% 8% 6% 4% 8%

Steel Real Estate Agriculture Others

  • IV. FINANCIAL INDICATORS
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SLIDE 27

CHART OF REVENUE, TOTAL ASSETS, EQUITY OF HOA PHAT GROUP FROM 2009 TO 2019

2009 2015 2012 2018 2010 2016 2013 2019 2011 2017 2014

8,244 10,243 4,899 14,493 14,904 6,398 18,093 17,525 7,414 17,122 19,016 8,085 19,200 23,076 9,500 25,852 22,089 11,796 27,865 25,507 14,467 33.885 33.227 19.850 46,855 53,022 32,398 56,580 78,223 40,623 64,678 101,791 47,788

Revenue Total Assets Equity

  • IV. FINANCIAL INDICATORS
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SLIDE 28

CAPITAL STRUCTURE FROM 2015 TO 2019

2015 2018

2016

2019 2017

43% 40% 39% 48% 53% 57% 60% 61% 52% 47%

Liabilities Equity

  • IV. FINANCIAL INDICATORS
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SLIDE 29

ASSETS STRUCTURE FROM 2015 TO 2019

2015 2018 2016 2019 2017

53% 45% 38% 68% 70% 47% 55% 62% 32% 30%

Current assets Long – term assets

  • IV. FINANCIAL INDICATORS
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SLIDE 30

LOCATION

HAN DAD VCL SGN 1 5 M i n u t e s D r i v i n g H O A P H A T
  • D
U N G Q U A T ( Q U A N G N G A I ) 2 H
  • u
r D r i v i n g 1 H
  • u
r fm i g h t 1 H
  • u
r fm i g h t

900km from Hanoi, 120km from Da Nang city 15km from Chu Lai airport (Quang Nam province) 850km from Ho Chi Minh city

  • V. DUNG QUAT STEEL INTEGRATED COMPLEX PROJECT
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SLIDE 31

Land size: 376 ha The deployment of deep-water seaport to allow 200,000 tons

  • f ships to dock

Design capacity:

  • Phase 1:

2 million tons of construction steel and hot rolled coils steel per year.

  • Phase 2:

2 million tons of hot rolled coils steel per year Progress of project: In June 2020, Phase 1 and 96% main construction item of Phase 2 is completed.

  • V. DUNG QUAT STEEL INTEGRATED COMPLEX PROJECT
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SLIDE 32
  • V. DUNG QUAT STEEL INTEGRATED COMPLEX PROJECT

CAPACITY OF STEEL MANUFACTURING THROUGH YEARS (TONS)

2001 400,000 700,000 1,250,000 2,000,000 4,600,000 8,000,000 12/2009 10/2013 02/2016 12/2019 9/2020

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SLIDE 33
  • V. DUNG QUAT STEEL INTEGRATED COMPLEX PROJECT
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SLIDE 34

HOA PHAT GROUP

THANK YOU!