Financial statements analysis MSN

General comments on the company's assets over the quartersThrough analysis, due to the complicated developments of Covid-19, from the first quarter of 2020 to the second quarter of 2021,

Table of Contents

Introduction Balance sheet

01

02

Income statement Cash flow statement

Masan Joint Stock Company

November 2004: established under the name

of Ma San Maritime Joint Stock Company.

July 2015: The official name of the company is Masan Group Joint Stock Company (Masan

Group Corporation)

Company name: Masan Group Joint Stock

Masan includes 6 main industries:

Convenient food industry, spices and sauce

industry, bottled beverage industry, coffee

industry, processed meat industry, and

personal and family care cosmetic industry

Our Company

Mr Nguyen Dang Quang

Mercury is the closest planet to the Sun and the smallest one in the Solar System—it’s only a bit larger than the Moon The planet’s name has

nothing to do with the liquid metal

Balance

Sheet

MSN

•Total assets increased from

Q3/2019 to Q1/2020 but by

Q2/2020 there was a decrease

but not significantly

•After that, total assets grew

again from Q3/2020 to Q2/2021,

although it decreased in Q4/2020

Q2/2021 compared to the

same period in 2020, it can be

seen that total assets grow

relatively

Total Assets

•From Q3/2019 to Q1/2020,

current assets gradually increased,

then decreased sharply in Q2/2020

•By Q4/2020, current assets began

to increase again and peaked in

Q2/2021

Current assets are affected by

the following factors: Cash and

equivalents; Short-term

investments; Accounts receivable,

Inventory and Other-current assets

Current Assets

In general, company’s non-current

assets have a slight increase

evenly over the quarters

The reason for this steady growth

was a slight increase in short-term

assets

Non-current assets are

affected by the following

factors: Long-term receivables;

Fixed assets; Investment property;

Long-term unfinished assets,

Long-term financial investment

and Other non-current assets

Non-current Assets

Changes in asset structure

The situation of the Covid-19 epidemic is affecting the market economy The company's asset structure gradually shifting from long-term to short-term

General comments on the company's assets over the quarters

Through analysis, due to the complicated developments of

Covid-19, from the first quarter of 2020 to the second quarter of 2021, total assets were relatively volatile In general, during difficult

economic times, the company's current asset structure is

relatively stable

Looking at the graph, we see that the company's liabilities increased sharply from

increase Masan's equity In

addition, there was a positive contribution from

Techcombank

Changes in capital structure

The increase in liabilities was due to Masan's integration with VinCommerce and the acquisition of additional shares in subsidiaries, The Crown X, and VCM

General comments on the company’s capital over the

quarters

• Equity compared to the second quarter of 2021 from the third

quarter of 2019 to the first quarter of 2021, the ratio decreased The main reason for the decrease in Masan's equity is because the group also made a series of other transactions affecting hundreds of

billions of VND of undistributed profit after tax

• The increase in capital is due to this time the company is gradually recovering economically because Masan Group increased its

ownership rate in The CrownX

03 Income Statement

MSN

Gross Profit

In general, Gross Profit increased from quarter to quarter, except for Q1/2021 there was a decrease but in Q2/2021 the company also increased again

The factors that directly affect Gross profit are Net Revenue and the Cost of goods sold

Income statement

•Net profit decreased slightly in the next 2 quarters, but in Q2/2021, there was a growth again

Income statement

Financial income

The company's financial business in the second quarter

of 2020 is exciting and effective

By the beginning of 2020, financial income of Masan Group continued to decrease The main reason is due to the negative impact of COVID-

19 disrupting business activities, global industrial production and causing commodity market prices to fall

Income statement

Net operating profit

Income statement

In 2020 is a difficult year for the world consumer goods industry in general and Vietnam in particular

In Q2/2021, there were signs of growth again after

a heavy decline in Q1/2020 thanks to the development of

VinCommerce and The CrownX

Profits from affiliates

The second quarter of

2021 has the highest results of all the remaining quarters

The majority of profits from Masan Group's affiliates come from Techcombank's profit contribution

Income statement

Financial expenses & Selling

expenses

•In 2020, the operation

of thousands of VinMart sales points causes the corporation's expenses to increase sharply

•In the first 2 quarters of

2021, expenses decreased because the company had appropriate policies

Income statement

Enterprise cost management

Administrative expenses increased sharply in the second quarter of 2020 and gradually decreased until the fourth quarter of 2020

By 2021, administrative expenses will once again increase sharply

Income statement

General comment

In 2020, Q2 in 2021, the company's

business situation is quite good.

The reason: the company has

reasonable policies to help reduce

selling and administrative expenses.

04 Cash flow Statement MSN

Cash flows from financing activities

2020 is a year in which businesses face difficulties due

to the Covid-19 pandemic, Masan is still financially stable.Masan currently does not need financing, the business has paid off the loan and was able to

return a part of the contributed capital to the owner

Cash flow statement

Cash flow from investing activities

The net cash flow from investment activities has a negative value, showing that the production capacity and business capacity of the

enterprise is tending to develop, expand investment and repay a lot of loans.

Cash flow statement

Cash flows from operating activities

Net cash flow from operating activities is positive, showing the business even though in some quarters there is a decrease in the flow rate, the flow rate is positive, this shows that the total cash

inflow is greater than the total cash flow money spent, showing the cash size of the growing

business

Cash flow statement

This is a bad sign for the company, showing that the company should also

continue to invest in term investments to create compensating income

Through the above analysis,

we can see that Masan

currently has a lot of loans and the ability to pay interest is at a low level However, there is a positive side that Masan has a lot of sponsors, showing that Masan still has a good

reputation in the consumer

goods industry in Vietnam

Through the data of the chart, we can see that the company's goods consumption is

at a high average level This is a sign that goods are selling well, inventory is there but not causing much stagnation

The company's debt collection ability to decrease, receivables increased, the amount of capital occupied by

customers also increased, making it difficult for the company

to pay short-term debts.

The industry average of 1.27, showing that the company's efficiency in using its assets is not really good Due to the complicated situation of Sar-CoV-2, the company needs to take measures for its operations to

prevent the total asset turnover from

continuing to decrease.

from the Sun

•Through the profitability indicators of the company, we see that the efficiency of

capital use in the company is not good

• The reason is that the company's selling and administrative expenses increased in the first quarter of

2021, causing a sharp drop in the company's profit

06 Comment & Recommendation

MSN

• In general, there is not a big difference between the quarters.

• Masan always focuses on equipment and production lines to create quality products for consumers.

Capital

• The company's liability increased sharply from the third quarter of 2019 to the first quarter of 2021 and decreased slightly in the second quarter of 2021

Because the company promotes investment activities and business opening.

• In 2 quarters of 2019, Debt to Equity ratio < 1: company's assets are financed mainly by owners' equity

• From 2020 and 2021, the growth rate, especially from Q2/2021 to (2.8) >

industry average (1.13).

• This means that the company often uses debt to pay for its operations, making

it difficult for the company to repay the debt.

Business result

• For revenue: Masan's revenue has steadily increased over the quarters High

net in Q4/2020, then decreased slightly in early 2021 and grew again in

Q2/2021.

• For costs: Through 8 quarters, we can see that the business cannot reduce

costs Management is not really effective, especially in the production stage of input factors

• For profit: Masan’s revenue in the first quarter of 2020 continued to grow

strongly but still suffered a loss because Commerce However,

Vin-Commerce changed rapidly and in the following quarters, Masan's profit after tax has returned to positive levels and is still growing.

Company’ ability to pay

• Inventory turnover has increased and inventory days have decreased down from Q2/2021, shows that the company's goods consumption is making good progress,

• Receivable turnover from Q1/2021 to Q2/ 2021 decreased, showing that the slower the company's debt collection speed

Cash and cash equivalents:

The company needs to keep an adequate amount of cash to cover interest, expenses and capital expenditures, in addition to having reserves to keep up with emergencies.

Assets

Assets

Receivables: this is one of the items that account for a small

proportion Masan should have good contingency plans to manage receivables well:

• Set requirements when signing agreements with customers

• Stipulating that the payment must be on time and specifying the penalty for late payment

• Keep all records of transactions to avoid future loss

• Should proactively contact customers before payment is due

• Using modern technology to automate the money transfer

process to shorten the time.

Assets

Inventory: Enterprises need to consider and move the flow of

goods so that they have both enough production materials and no backlog of goods to reduce risks to a minimum.

• The company should use the supply chain mapping method to

be able to clearly outline the company's supply network,

reducing the lead time from the supplier.

• Propose effective and appropriate marketing strategies for the current situation

• Automate the ordering process

Reducing liabilities:

In 2020 and 2021, the company's short-term debt tends to decrease.

It is necessary to arrange the priority order of debts to be paid, that

easily helps the company distinguish short-term or long-term debts

based on that reasonable payment

Reducing liabilities:

In 2020 and 2021, the company's short-term debt tends to decrease.

It is necessary to arrange the priority order of debts to be paid, that

easily helps the company distinguish short-term or long-term debts

based on that reasonable payment

Reduce cost of goods sold:

• The company needs to reduce the cost of raw materials by building

material norms for each product type and product detail

• Plans should be made to periodically check the production process

Attention to customer needs:

• Businesses need to have a team to research the market to be able to

approach, learn about customers

• There should be activities to collect opinions from customers to be able to change and improve product quality better and better

Recommendation

Business result

Reduce financial costs:

• To be able to minimize financial costs, businesses need to have a plan to control interest expenses

• It is necessary to take measures to increase the capital of the enterprise and reduce the ratio of external debt

Reduce business management costs:

• Minimizing labor costs is one of the costs that account for a large proportion of business administration costs

• Reasonable work arrangements for employees to avoid the situation that employees work overtime and can make employees' health worse

Recommendation

Business result

Solvency

Solutions that can increase the company's solvency are:

• Businesses can increase inventory turnover to avoid inventory stagnation, plan, and choose the right inventory model for the business.

• Increasing the turnover of receivables will increase the speed of debt collection, reducing capital misappropriation

• It is necessary to develop a debt collection and management process,

to classify customers and apply different payment strategies and repayment periods.

Thanks for listening