AIRPORTS CORPORATION OF VIETNAM November 30, 2015

PRE-IPO NOTE

Transaction summary: Airports Corporation of Vietnam Auction time 8:30 AM December 10, 2015 Number of offering shares 77,804,122 (ACV) is offering 77,804,122 shares, or 3.47 percent, for public Initial price (VND/share) 11,800 auction at an initial price of VND11,800 per share on Proposed charter capital VND22,431 bn December 10, 2015. The shares will trade OTC. No plan has Market capital (at initial price) VND26,469 bn been announced for listing on an exchange. Planned ownership structure Strong growth of Vietnam’s aviation market: According State-owned 75.00% to IATA, Vietnam will see fast industry growth during 2015- Strategic investor* 20.00% Employees, Union 1.53% 2034 for the following reasons: 1) Vietnam’s economy has Public 3.47% recovered, and income per capita is increasing rapidly; 2) (*) Strategic investor has not yet been identified. Membership of ASEAN, APEC, WTO, and TPP will foster the 2011-14 2016F 2016-2020 process of liberalizing air transport policy in Vietnam; and 3)

CAGR (VNDbn) CAGR* The development of low-cost carriers in Vietnam is promoting Parent company the growth of the aviation industry. IATA also forecasts that Net revenues 15.2% 9,351 2.9% Net income 44.0% 1,203 12.4% the Vietnamese air passenger market will surge from 33rd Forecast by ACV. (Note: Management has not largest in 2014 to ninth by 2034. published any estimates for 2015.) Monopoly position: ACV alone operates and manages all 22 Consolidated airports in Vietnam, allowing the company to benefit from Net revenues 14.6% n/a n/a Net income 42.1% n/a n/a strong growth in Vietnam’s aviation market in the long-term. Regional LTM ACV** VNI Huge capital expenditure affecting profit for the next peers several years: ACV plans to engage in many projects with P/E 10.6x 18.3x 11.4x P/B 1.3x 1.7x 1.8x significant capital requirements over the next several years. Debt/Equity 60.6% 36.2% 109.3% These projects will be funded by sources such as the State Net margin 23.8% 28.4% 11.2% budget, ODA capital, and new issuances. Fluctuations in ROE 13.3% 13.3% 15.9% interest rates, FX movements, and depreciation expenses may ROA 6.4% 8.5% 2.8% burden the company’s earnings. (**) At initial price Profitability is lower than regional peers: Though ACV’s Company description: net profit margin is comparable to its regional peers, most of The predecessor of Airports Corporation of Vietnam the company’s net profit comes from financial income which (ACV) was the Civil Aviation Administration of Vietnam, which was established in 1976. ACV was incorporated fluctuates significantly. Indeed, ACV has a lower EBITDA following a merger of the Northern, Central, and margin than its peers. However, we believe the company’s Southern Airports Corporations in 2012. ACV is the sole profit margin will improve with the restructure after IPO, and operator and manager of all 22 airports in Vietnam. the impressive prospects of Vietnam’s aviation market. Business activities: Aeronautical business (80 percent of net revenues of parent company); non-aeronautical Initial price appears to be under-valued, but business (12 percent); retail (eight percent). fluctuations in net financial income are a concern: 2014 consolidated results: Net revenue: VND10,555 billion (USD469 million); Net income: VND2,510 billion (USD112 ACV’s P/E, P/B and EV/EBITDA appear to be slightly lower than million); Total assets: VND43,692 billion (USD1,941 its regional peers, indicating ACV’s stock is under-valued at million); Total equity: VND20,662 billion (USD1,007 the initial price of VND11,800 per share. However, investors million). should consider the fluctuations in net financial income, which 1H2015 results of parent company: Net revenue: VND5,173 billion (USD230 million); Net income: VND533 have contributed a significant proportion of net profit in the billion (USD23.7 million). past, but are not guaranteed going forward.

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CONTENTS

COMPANY OVERVIEW ...... 3 History ...... 3 Subsidiaries and associates ...... 3 Business activities ...... 3 Capacity ...... 5 Strategy after equitization ...... 5 Information related to the offering ...... 7 FINANCIAL PERFORMANCE ...... 8 Growth and profitability ...... 8 Asset structure ...... 9 Liquidity and solvency ...... 10 Business plan ...... 10 VALUATION ...... 11 FINANCIAL STATEMENTS ...... 12

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COMPANY OVERVIEW History The predecessor of Airports Corporation of Vietnam (ACV) was the Civil Aviation Administration of Vietnam, which was established on November 11, 1976. On April 2, 1993, the Northern, Central, and Southern Regional Airport Authorities were established under the management of the Civil Aviation Administration. These authorities were converted to State-owned companies on December 12, 1998, and on February 8, 2012 were merged to form ACV.

Milestones 1976 Civil Aviation Administration of Vietnam was established.

1993 Northern, Central, and Southern Regional Airport Authorities were established Northern, Central, and Southern Regional Airport Authorities were converted to State- 1998 owned companies 2012 ACV was established

2015 IPO to be conducted on December 10, 2015. Source: ACV Subsidiaries and associates As of June 30, 2015, ACV had a total of four subsidiaries and five associates. The The subsidiaries contribute 25 percent of the subsidiaries are as follows: corporation’s net revenues, most of which are from  Southern Airports Service JSC (SASCO): registered capital of VND1,315 billion retail. (USD58.4 million) of which ACV owns 51 percent. Main business is commercial services in airports, with 2014 net revenues of VND2,040 billion (USD90.7 million).  Saigon Ground Service JSC (SAGS): registered capital of VND141 billion (USD6.3 million) of which ACV owns 55.51 percent. Main business is ground services, with 2014 total revenues of VND473 billion (USD21 million).  Noi Bai Aviation Fuel Service JSC (NAFSC): registered capital of VND100 billion (USD4.4 million) of which ACV owns 60 percent. Main business is aviation fuel; the company has officially operated since January 2015.  Cam Ranh Aviation Commercial JSC: registered capital is VND10 billion (USD0.4 million) of which ACV owns 51 percent. Main business is commercial services in airports. ACV divested capital in this company in July 2015. Business activities

Aeronautical business makes ACV operates under a parent-subsidiary model. The parent company is the sole up about 80 percent of net manager and operator of all 22 civil airports in Vietnam, including seven international revenues of the parent company. airports and 15 domestic airports. The main business activities of ACV include: 1) Aeronautical business (80 percent of net revenues of the parent company): passenger, landing, ground handling, and airport security charges. 2) Non-aeronautical business (12 percent of net revenues of the parent company): leasing of space, parking charges, advertising, office rentals, and first-class and VIP lounges. 3) Retail (eight percent of net revenues of the parent company): restaurants, electricity, water, and sales of local commodities, souvenirs, and duty-free goods.

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Parent company contributes The parent company contributes 75.5 percent of ACV’s net revenues and creates 93.2 76 percent of ACV’s net percent of the aeronautical and non-aeronautical revenues for the corporation. revenues.

Parent company’s aeronautical Parent company’s non-aeronautical Parent company’s revenue (VNDbn) revenue (VNDbn) revenue (VNDbn) Retails Others Leasing of space Parking charges Non-aeronautical revenues Airport security charges Advertising Office rentals Ground handling charges Aeronautical revenues VIP, First-class Others 10,000 8,000 1,000

8,000 800 6,000 6,000 600 4,000 4,000 400 2,000 2,000 200

0 0 0 2012 2013 2014 2012 2013 2014 2012 2013 2014

Source: ACV Source: ACV Source: ACV Passenger charges represented approximately 58 percent of aeronautical revenues in 2014. Revenue depends on the number of passengers passing through airports, and the charges are regulated by the government. Airport security charges constituted just four percent of aeronautical revenues. This charge is calculated based on the number of departing passengers and cargo.

Passenger charges Passenger traffic From 12/1/2012 From 10/1/2014 (Million) 2012 2013 2014 Fixed charge Min Max Passengers 37.62 44.16 50.82 International flight (USD/passenger) % growth 17.38% 15.08% Tan Son Nhat 20 10 20 - International 13.51 15.30 16.14 Phu Quoc 18 9 18 % growth 13.25% 5.49% Da Nang, Can Tho 16 8 16 - Domestic 24.11 28.86 34.68 Noi Bai % growth 19.70% 20.17% Domestic terminal (T1) 16 8 16 International terminal (T2) 13 25 Lien Khuong, Cam Ranh 14 7 14 Other airports 8 4 8 Domestic flight (VND/passenger) Class A Airport 54,545 31,818 63,636 Class B Airport 45,455 27,272 54,545 Source: ACV Source: ACV ACV collects landing charges from airlines for their use of airport infrastructures and facilities, including runways, taxiways, illumination systems, and other facilities such as meteorological stations and instrument landing systems. In 2014, these charges made up 16 percent of aeronautical revenues. Landing charges are also regulated by the government.

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Landing charges from October 1, 2014 Cargo throughput Initial charge Charge per ton afterward (Thousand tonnes) 2012 2013 2014 International flights (USD/landing) (USD/tonne) Cargos and Parcels 654.31 760.64 869.65 Up to 20 tonnes 84 0.0 % growth 16.25% 14.33% 20 - 50 tonnes 84 3.7 - International 402.77 489.14 548.47 50 - 150 tonnes 195 5.3 % growth 21.44% 12.13% 150 - 250 tonnes 725 5.7 - Domestic 307.25 328.32 371.26 Over 250 tonnes 1,295 6.3 % growth 6.86% 13.08% Domestic flights (VND/landing) (VND/tonne) Up to 20 tonnes 665,000 0.0 20 - 50 tonnes 665,000 28,000 50 - 150 tonnes 1,520,000 41,000 150 - 250 tonnes 5,620,000 45,000 Over 250 tonnes 10,170,000 51,000 Source: ACV Source: ACV Capacity The total capacity of the 22 airports in Vietnam is 69.4 million passengers per year, and actual traffic was 50.8 million passengers in 2014. The number of passengers in 9M2015 was 46.6 million, up 22.3 percent y-o-y. Seven international airports make up 84.5 percent of the total capacity, and contributed more than 90 percent of ACV’s net revenues.

Capacity of ACV airports in 2014 Designed Designed Actual traffic Utilization Actual traffic Utilization Airport capacity Airport capacity (passengers) rate (passengers) rate (passengers) (passengers) Tan Son Nhat Int. Airport 20,000,000 22,153,349 110.8% 750,000 420,520 56.1% Noi Bai Int. Airport 25,000,000 14,190,675 56.8% Pleiku Airport 600,000 300,471 50.1% Da Nang Int. Airport 6,000,000 4,989,687 83.2% 400,000 188,549 47.1% Cam Ranh Int. Airport 1,500,000 2,062,494 137.5% Tho Xuan Airport 600,000 163,270 27.2% Phu Quoc Int. Airport 2,650,000 1,002,750 37.8% 500,000 117,656 23.5% Phu Bai Int. Airport 1,500,000 1,159,499 77.3% Dien Bien Airport 250,000 81,564 32.6% Can Tho Int. Airport 2,000,000 305,015 15.3% Tuy Hoa Airport 550,000 64,037 11.6% Vinh Airport 2,000,000 1,222,698 61.1% 500,000 40,198 8.0% Cai Bi Airport 1,200,000 927,001 77.3% Rach Gia Airport 200,000 33,544 16.8% Buon Me Thuoc Aiport 1,000,000 695,149 69.5% Ca Mau Airport 200,000 30,698 15.3% 2,000,000 675,607 33.8% Na San Airport (ceised) - - - Source: ACV Strategy after equitization Industry outlook Global aviation market: According to Airbus’ 2015 Global Market Forecast, the number of air travellers will continue to double every 15 years, with.an average growth rate of 4.6 percent per year through 2034. Economic and population growth in emerging markets will help to drive traffic growth beyond more mature markets, with the middle class in emerging markets set to double in size by 2034. The Asia-Pacific region will gradually occupy the leading position in passenger traffic. Airbus also forecast air freight to grow at 4.4 percent over the next 20 years. This will be largely driven by emerging markets. Regional aviation market: In Asia, especially in North and South-East Asia, there has been an ongoing strategy of enhancing service quality to create competitive advantages on both domestic and international routes. Several traditional airlines have established subsidiaries and associated companies to operate in low-cost segments,

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such as Jetstar, Silk Air, Scoot, and Nok Air. Regional hubs for international flights are becoming overloaded, particularly long-haul hubs such as Paris, Tokyo, and London, and the more local hub in Singapore. As this crowding continues, the international air transport market will gradually shift to emerging economies. Vietnamese aviation market: According to IATA, Vietnam will see fast industry growth Vietnam’s aviation market is expected to see fast growth. during 2015-2034 for the following reasons: It will increase its market rank from 33rd in 2014 to 1) Vietnam’s economy has recovered and income per capita is increasing rapidly. ninth by 2034. 2) Membership of ASEAN, APEC, WTO, and TPP will foster the process of liberalizing air transport policy in Vietnam. 3) The development of low-cost carriers in Vietnam is promoting the growth of the aviation industry by increasing passenger numbers. IATA also forecasts that the Vietnamese air passenger market will surge in ranking from 33rd largest in 2014 to ninth by 2034. Company’s investment plan According to the Master Development Plan for Vietnamese aviation transportation ACV needs huge capital expenditure in the next few (Decision No. 21/QD-TTG, dated January 8, 2009), Hanoi, Da Nang, and Ho Chi Minh years to meet the rapid City are the three passenger and goods hubs connecting domestic and international growth of Vietnam’s aviation flights. The number of passengers will increase with an annual growth rate of 14 market. percent from 2015 to 2020, reaching 123 million passengers in 2020. The growth rate

will slow to 7.5 percent until 2030, by which time the number of passengers will have reached 260 million. The annual growth rate of cargo throughput will be 18 percent from 2015 to 2020, and 14 percent from 2020 to 2030. Annual cargo throughput will achieve 3.1 million tonnes in 2020, and 11.5 million tonnes by 2030. In other to meet the goals of the Master Development Plan, and the significant potential of Vietnam’s aviation market, ACV’s total investment capital for projects both in and beyond aircraft maneuvering areas for the period 2015-2020 is estimated at VND43,374 billion (USD1.9 billion), excluding the Long Thanh International Airport project which alone has investment of VND336,630 billion (USD15 billion). This total includes:

 Capital requirements for projects in maneuvering areas of VND24,663 billion (USD1,096 million), funded by the national budget.  Investment in projects outside maneuvering areas of VND18,711 billion (USD832 million). Equity is VND15,944 billion (USD709 million), and the remainder will be financed by Official Development Assistance (ODA) budgets, or by refundable budgets. Investment in Long Thanh International Airport The Long Thanh International Airport project was approved by the Congress of Vietnam on June 25, 2015. Goals were set for the airport to become the region’s international transit hub with a capacity of 100 million passengers and five million tonnes of cargo per year. Total estimated investment capital for the entire project is VND336,630 billion (USD16.03 billion, at 2014 exchange rates). The project is to be funded by a combination of the state budget, ODA capital, capital raised from the equitization process of the aviation industry, and ACV’s capital. The project has three major phases:

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 Phase 1: Construction of one runway and one terminal with ancillary items for a capacity of 25 million passengers and 1.2 million tonnes of cargo per year. Total estimated investment value is USD5.45 billion. Expected construction period is 2018-2025 (with target for early completion of 2022).  Phase 2: Second runway and second terminal to increase total capacity to 50 million passengers and 1.5 million tonnes of cargo per year. Investment value of phase 2 is estimated at USD4.0 billion. Expected construction period is 2030-2035.  Phase 3: Completion of project to reach a capacity of 100 million passengers and five million tonnes of cargo per year. Total investment is estimated at USD6.58 billion, scheduled to be in full operation in 2040-2050. Currently ACV is conducting a feasibility study for phase 1 of the project to submit to the Ministry of Transport for Congress’s approval. ACV expects to receive approval in Q2/2017. Information related to the offering The Prime Minister approved the company’s equitization plan on October 6, 2015; after equitization, the chartered capital of ACV is expected to be VND22,431 billion (USD996 million), of which 95 percent will belong to the State until a strategic investor can be identified to take 20 percent. Consistent with the approved plan, on December 10, 2015, the company will organize an auction at the Ho Chi Minh Stock Exchange (HSX) of 77,804,122 shares (3.47 percent of charter capital after equitization) with an initial price of VND11,800 per share. Buying registration is from November 13 to December 2, 2015. Ownership structure after equitization

Shareholder Number of shares par value Percent (shares) (VND bn) Government of Vietnam 1,682,323,878 16,823 75.00% Employees 31,347,800 313 1.40% ACV's Union 3,003,003 30 0.13% Strategic investor* 448,619,701 4,486 20.00% Public investor in the IPO 77,804,122 778 3.47% Total 2,243,098,504 22,431 100.00%

* Not yet identified Source: ACV A strategic investor has not yet been specified. Possible investors such as Aéroports de Paris (ADP) and Bank for Investment and Development of Vietnam (BIDV) have shown interest in becoming strategic investors in ACV. ACV also plans to issue additional shares from 2018 to 2020 to finance the first phase of construction of Long Thanh International Airport. The expected schedule of these additional issuances is as follows:

VND billion 2018 2019 2020 Share capital 22,431 23,900 26,847 New issuance 1,469 2,947 2,947 Share capital after issuance 23,900 26,847 29,794 Source: ACV

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FINANCIAL PERFORMANCE Growth and profitability Consolidated net revenues increased gradually over the period from 2010 to 2014, with CAGR of 14.6 percent. Net revenues were VND10,555 billion (USD469 million) in 2014, of which aeronautical and non-aeronautical constituted the biggest portion of 74 percent; aeronautical and non-aeronautical revenues came mostly from the parent company (93 percent) and SAGS (six percent). Retail revenue was contributed to by the parent company (25 percent) and SASCO (75 percent).

Net revenues (VND bn) Net profits (VND bn)

Aeronautical and non-aeronautical Retail Other services

12,000 4,000

9,000 3,000

6,000 2,000

3,000 1,000

0 0 2011 2012 2013 2014 2011 2012 2013 2014

Source: ACV Source: ACV

Net profit increased Net profit reached VND2,510 billion (USD111.6 million) in 2014, and showed dramatic dramatically, mostly due to growth over the period with CAGR of 42.1 percent, mainly due to contributions from changes in the JPY/VND net financial income. ACV has an outstanding loan in JPY, and the JPY/VND exchange exchange rate. rate decreased significantly in 2013 and 2014, leading to a huge net financial income in

these years. In 2014, net financial income was VND1,976 billion (USD87.8 million), equal to 60 percent of profit before tax. FX differences made up a major portion of net financial income in 2013 and 2014, about 88 percent and 42 percent respectively, thus any change in FX rates, especially JPY/VND and USD/VND, will definitely cause fluctuations in net profit in the future.

Profit margin ROA and ROE Gross profit margin EBITDA Margin ROE ROA EBIT Margin Net Profit Margin 40% 16%

14.4% 30% 12% 13.3% 11.1%

20% 8% 7.0% 7.1% 6.4% 10% 4% 5.7% 3.9%

0% 0% 2011 2012 2013 2014 2011 2012 2013 2014

Source: ACV Source: ACV

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Net profit margin climbed gradually from 2011 to 2014, while other profit margins FX rates cause fluctuations in net profit. declined suddenly in 2012, with slight improvements in 2013 and 2014. Net profit margin is much higher than EBIT margin as ACV recorded large financial incomes.

Asset structure Total assets have been growing significantly, with CAGR of 25.0 percent between 2011 Total assets increased significantly due to the and 2014, due to the addition of new projects. Major projects added over the period addition of new projects. were:

 Expansion of T1 International Terminal – Noi Bai International Airport  T2 International Terminal – Noi Bai International Airport  Renovation and expansion of Tan Son Nhat International Airport  Expansion of Phu Bai International Airport  Expansion of Phu Quoc International Airport

Total assets structure (VND bn) Financial leverage (VND bn)

Non-current assets Current assets Total Equity Total debt Other liabilities 50,000 50,000

40,000 40,000

30,000 30,000

20,000 20,000

10,000 10,000

0 0 2011 2012 2013 2014 2011 2012 2013 2014

Source: ACV Source: STK Financial leverage has increased slightly over the years as ACV has used more debt to finance investment in new projects. As of December 31, 2014, liabilities to assets ratio was 52.7 percent, while debt value was VND12,518 (USD556 million), for a debts to equity ratio of 60.6 percent. Long-term debts represented 98 percent of total debts. As of December 31, 2014, ACV has two long-term loans in JPY – one for expansion of Tan Son Nhat International Airport and one for investment in Noi Bai International Airport’s T2 International Terminal – with a total value of VND11,974 billion (USD532 million), making up 98 percent of total long-term debts. The value of JPY has decreased significantly against VND over the period from 2012 to 2014 – by 18.5 percent in 2013 and 11.3 percent in 2014 (based on JPY/VND rates from financial reports in 2013 and 2014) – generating huge unrealized financial income.

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Liquidity and solvency Though liquidity ratios have been on a downward trend over the past few years, they are still good, with both higher than 1x. Financial leverage is at a reasonable level and EBIT to interest expenses ratio is high, indicating a strong financial position.

Liquidity and solvency ratios

2011 2012 2013 2014

Current ratio 3.2x 2.3x 2.1x 1.8x Quick ratio 3.0x 2.2x 2.0x 1.7x Total liabilities/Total assets 44.5% 50.6% 50.8% 52.7% Total debts/Equity 48.1% 52.2% 52.1% 60.6% EBIT/Interest expense 12.1x 2.5x 6.5x 19.5x

Source: ACV Business plan ACV forecast that net revenues of the parent company will increase with CAGR of 2.9 percent over the period from 2016 to 2020, while the growth rate of net profit will be higher at 12.4 percent due to reductions in depreciation expenses. This projection does not include changes in foreign exchange rates, which created huge financial incomes in 2013 and 2014.

ACV forecast for parent company

Parent company (VND bn) 6M2015 2016F 2017F 2018F 2019F 2020F Net revenues 5,173 9,351 9,627 9,723 10,095 10,485 % growth 2.95% 1.00% 3.83% 3.86% Gross profit 582 1,687 1,662 1,808 2,035 2,318 % gross profit margin 11.26% 18.04% 17.26% 18.60% 20.16% 22.11% Financial incomes 569 561 623 683 789 908 Financial expenses 47 93 91 89 87 85 Interest expenses 39 93 91 89 87 85 Profit before tax 685 1,503 1,520 1,716 2,032 2,404 Net profit 533 1,203 1,216 1,372 1,626 1,923 % growth 1.10% 12.80% 18.50% 18.30% % net profit margin 10.30% 12.86% 12.63% 14.11% 16.11% 18.34% Dividend on par ratio N/A 5.00% 5.00% 5.00% 5.00% 5.00%

Note: the projection excludes the impact of gains/losses from foreign exchange. Source: ACV

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VALUATION

Net profit margin of ACV is similar to its regional peers at around 22-24 percent, but ACV’s EBITDA margin is significantly lower – ACV’s extraordinary financial income may be the main reason for the difference. Deducting the FX difference in 2014, net profit margin would be reduced to 16.0 percent. ACV has a slightly lower ROA, but higher ROE due to higher financial leverage. At the initial price of VND11,800 per share, the market cap of ACV is VND26,469 billion (USD1,176 million), trading at a 2014P/E of 10.6x, and relative P/E of 0.9x, which is slightly lower than its regional peers. ACV’s 2014 P/B ratio is also lower than its peers.

Method Relative VNINDEX Target ratio Target price P/E 0.96 11.35 10.88 12,173 P/B 1.09 1.76 1.92 16,959 EV/EBIDA 1.31 8.90 11.66 13,612 Fair price with 10% discount (VND/share) 12,823

We apply a median relative P/E, P/B, and EV/EBITDA of regional peers to derive a target price for ACV. In addition, as ACV’s peers are listed companies while ACV’s stock is not, and there are no specific plans for listing, we believe that ACV’s stock should be traded with a discount of ten percent. Considering this, we believe the fair price of ACV is VND12,823, making the initial price of VND11,800 per share under-valued.

Peer comparison

Net profit EBITDA Asset turn Market Debt to ROA ROE P/E P/B EV/EBITDA Company Country margin margin over cap equity LTM LTM LTM LTM LTM LTM Rel. LTM Rel. LTM Rel. Regional peers (USDmn) % % Time % % % Time Time Time Time Time Time Airports of Thailand PCL Thailand 12,189 42.60 57.72 0.27 35.63 9.85 15.31 23.35 1.31 4.25 2.33 14.32 1.57 Beijing Capital International Airport Co Ltd China 4,800 18.17 41.54 0.25 70.99 4.67 9.00 19.92 2.05 1.74 1.46 11.72 1.44 Xiamen International Airport Co Ltd China 1,023 34.40 N/A 0.39 0.00 10.98 13.70 16.70 0.93 2.22 1.13 N/A N/A HNA Infrastructure Company Ltd China 598 38.57 60.96 0.17 89.20 7.06 13.67 9.58 0.99 1.25 1.05 7.89 0.97 Shenzhen Airport Co China 2,567 9.20 N/A 0.23 36.73 3.27 4.60 35.41 0.76 1.64 0.40 N/A N/A Guangzhou Baiyun International Airport Co China 2,374 19.84 N/A 0.50 0.26 11.41 14.68 11.95 0.67 1.64 0.83 N/A N/A Shanghai International Airport Co Ltd China 8,603 37.24 N/A 0.26 13.25 10.50 12.97 22.44 1.25 2.79 1.42 N/A N/A Malaysia Airports Holdings Bhd Malaysia 2,061 22.38 35.34 0.20 85.22 4.27 9.45 11.45 0.64 1.08 0.59 11.85 1.18 Average 27.80 48.89 0.29 41.41 7.75 11.67 18.85 1.08 2.08 1.15 11.45 1.29 Median 28.39 49.63 0.25 36.18 8.45 13.32 18.31 0.96 1.69 1.09 11.79 1.31 Airports Corporation of Vietnam Vietnam 1,176 23.78 32.45 0.27 60.58 6.41 13.30 10.55 0.93 1.33 0.76 10.47 1.18 (*) ACV’s financial ratios based on 2014 consolidated FS; Data as of November 27, 2015; Source: ACV, Bloomberg

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FINANCIAL STATEMENTS

INCOME STATEMENT (VNDbn) 2011 2012 2013 2014 Net revenues 7,009 8,011 9,549 10,555 Growth rate 14% 19% 11%

COGS (excluding depreciation) 3,497 4,484 5,205 5,418 Gross profit 3,512 3,526 4,343 5,137

Selling expenses 303 328 401 418 General & admin expenses 678 1,049 1,219 1,294 EBITDA 2,531 2,150 2,723 3,425 EBITDA Margin 36% 27% 29% 32% Depreciation 1,332 1,907 2,247 2,128 EBIT 1,199 242 476 1,297

Financial income 1,073 1,765 2,767 2,481 Financial expenses 1,154 75 117 505 Income from affiliated companies 4 10 5 2 Other income 22 56 (1) 33 Pretax profit 1,143 1,997 3,130 3,308

Income tax expense 267 487 829 797 Minority interests 2 3 4 2 Net Income 874 1,507 2,297 2,510

BALANCE SHEET (VNDbn) 2011 2012 2013 2014

Cash & near cash items 4,676 2,385 2,516 3,955 Short term investments 4,763 8,697 9,955 10,611 Accounts receivables 3,316 5,965 5,408 3,315 Inventories 492 525 504 538 Other current assets 215 268 501 525 Current assets 13,461 17,840 18,885 18,945

Net fixed assets 6,229 10,377 9,694 21,027 Construction in progress 1,855 1,165 5,360 2,523 Long-term investments 440 331 254 317 Other long-term assets 381 373 468 880 Long-term assets 8,905 12,247 15,777 24,747 Total assets 22,365 30,087 34,661 43,692

Accounts payable 1,780 3,688 2,658 1,784 Short-term borrowings 306 271 261 250 Other short-term liabilities 2,155 3,763 5,988 8,709 Current liabilities 4,240 7,721 8,906 10,742 Long-term borrowings 5,663 7,487 8,639 12,268 Other long-term liabilities 56 22 48 20 Long-term liabilities 5,719 7,509 8,687 12,288 Total liabilities 9,959 15,230 17,593 23,030

Share capital & APIC 5,833 6,271 10,611 11,132 Retained earnings 401 681 1,840 3,144 Other equity 6,155 7,833 4,527 5,558 Minority Interest 17 72 91 828 Owners' equity 12,406 14,857 17,068 20,662 Total liabilities and equity 22,365 30,087 34,661 43,692

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CASH FLOW STATEMENT (VNDbn) 2011 2012 2013 2014 Cash from operation activities 2,456 2,130 4,476 2,693 Cash from investing activities 538 (6,796) (6,595) (6,601) Cash from financing activities (54) 2,372 2,247 5,336 Net changes in cash 2,941 (2,294) 128 1,429

Beginning cash balance 1,722 4,676 2,385 2,516 Effect of foreign exchange differences 13 3 3 10 Ending cash balance 4,676 2,385 2,516 3,955

RATIO ANALYSIS 2011 2012 2013 2014 Profitability Ratios Gross Margin (ex. Dep) 50.1% 44.0% 45.5% 48.7% EBITDA Margin 36.1% 26.8% 28.5% 32.4% Operating Margin 17.1% 3.0% 5.0% 12.3% Net Profit Margin 12.5% 18.8% 24.1% 23.8% Return on Avg. Assets 3.9% 5.7% 7.1% 6.4% Return on Avg. Equity 7.0% 11.1% 14.4% 13.3%

Leverage Ratios Interest Coverage Ratio (EBIT/I) 12.1x 2.5x 6.5x 19.5x Tot Debt/Capital 32.5% 34.3% 34.3% 37.7% Tot Debt/Equity 48.1% 52.2% 52.1% 60.6% Liquidity Ratios Asset Turnover (times) 0.3x 0.3x 0.3x 0.3x Accounts Receivable Turnover (day) 172.7 211.4 217.4 150.8 Accounts Payable Turnover (day) 185.7 222.5 222.5 149.6 Inventory Turnover (day) 51.4 41.4 36.1 35.1 Current Ratio 3.2x 2.3x 2.1x 1.8x Quick Ratio 3.0x 2.2x 2.0x 1.7x

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