FINAL ESSAY FM

However, from the quarter 1/2021 to thequarter 3/2021, the company's total assets had a positive fluctuation when increasingcontinuously.Specifically, based on Table 1.1: “The volatility

SAIGON BEER -ALCOHOL – BEVERAGE SOCIALIST REPUBLIC OF VIET NAM CORPORATION Independence - Freedom – Happiness SO/N0.: 738 /BSG-PQHCD Ho Chi Minh City, November 2021

ANALYZE BUSINESS STATEMENT IN SABECO JOINT STOCK COMPANY FROM QUARTER 1-2020 TO QUARTER 3-2021

Boss: Nguyen Thi Lan Anh

Staff Implement:

Pham Tuan Hung-19124001

Ho Quoc Lap-19124075

Le Thi Ngoc Bich-19124045

Nguyen Hoang Thuy Dung-19124062

General Information

Legal Name Tổng Công ty Cổ phần Bia - Rượu -

Nước giải khát Sài Gòn

International Name Saigon Beer – Alcohol – Beverage

Corporation

HeadQuarter

187 Nguyễn Chí Thanh Street, Ward

12, District 5, Hồ Chí Minh City, Việt Nam

-Purchase and sale of supplies raw materials and equipment for the beer-alcohol-beverage industry.

-Currently investing in Finance, Real Estate.

INTRODUCTION

The team of business staff, leading experts

in technology is still lacking compared to the requirements

The State removed the support policy for investment in beer production and

implemented the WTO commitments on tax exemption and reduction for beer products from abroad, increasing domesticcompetition

1 Economic factors:

Beer – wine is not an essential item

Alcoholic beverages are products

restricted from use by the State and subject

to special consumption tax

 Social factors:

Vietnam is a country with oriental culture

The population of Vietnam is large

People's standard of living is increasing

 Natural factors:

The environment is increasingly polluted,

requiring environmental protection

1.1 Analysis of balance sheet

1.1.1.1 Analysis of asset movements

Sabeco’s total assets in the quarter 4/2020 was 27,375 billion VND, a sharpdecrease compared to the quarter of 3/2020 by about 1.12% (equivalent to 311 billionVND) Mainly due to the sharp decrease of Short-term assets with 475 billion VND,Cash and cash equivalents with 447 billion VND Besides, Short-term investmentsalso increased significantly with 226 billion.

Unit: Billion VND

Graph 1.1: Movement of total assets in the period from the quarter 1/2020 to the quarter 3/2021According to graph 1.1: “Changes in total assets in the period of the quarter1/2020 - the quarter 3/2021”, we see that the total assets of the company from thequarter 1/2020 to the quarter 3/2020 have increased sharply, but from the quarter3/2020 - quarter 1/2021 saw a slight decrease However, from the quarter 1/2021 to thequarter 3/2021, the company's total assets had a positive fluctuation when increasingcontinuously.

Specifically, based on Table 1.1: “The volatility of assets in the quarter 3/2021 quarter 1/2020” shows that the company’s total assets in the quarter 3/2021 decreased

-by 133 billion VND, or 0.47 % compared to the quarter 2/2021, mainly due to thedecrease in Inventories and Fixed-assets with the rate of 16.30% and 2.73%respectively (equivalent to 268 billion and 127 billion)

Besides, in the quarter 2/2021 has the highest total assets of all other quarters with28,561 billion VND, which is higher than quarter 1/2021 with a difference of 1,572billion VND (equivalent to 5.82%), the relative growth of total assets In which, Short-term investment increased by 1,720 billion, equivalent to 12.67% and Short-termassets increased by 1,725 billion, equivalent to 8.97% This proves that in the quarter2/2021, businesses have focused on investing in bonds used for short-term purposes torecover capital quickly

 Short-term assets

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/202105

Graph 1.2: Movement of short-term assets in the period from the first quarter

of 2020 to the third quarter of 2021With the data that the graph shows, it is easy to see the volatility of short-termassets, from the first quarter of 2020 to the third quarter of 2020, the Short-term assetsgradually increased, then gradually decreased until the first quarter of 2020 Thehighest peak is 20,950 billion VND, 1,725 billion higher than in the first quarter of

2021, equivalent to 8.97% However, there was a slight decrease in the third quarter of

2021, a decrease of 80 billion compared to the second quarter of 2021

In order to understand the reasons for such a fluctuation, many other influencingfactors must be considered, mainly the following:

 Cash and cash equivalents

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/202101

Cash and cash equivalents

Graph 1.3: Movements of cash and cash equivalents in the period from

the first quarter of 2020 to the third quarter of 2021

In the Cash and cash equivalents account, we see a clear fluctuation in the firstquarter of 2020 - the third quarter of 2020, but then it is more stable and begins togradually increase in the fourth quarter of 2020 - the third quarter of 2021 In thesecond quarter of 2020, a rapid growth can be seen with 4,865 billion VND, 2,418billion higher (equivalent to 98.81%) compared to the first quarter of 2020, but in thefourth quarter of 2020, the amount is halved There are many factors contributing tothis rapid decline The first is because at the end of the year the company has to paydebts and some unexpected expenses In addition, due to the heavy impact of theCovid-19 pandemic, Decree 100 as well as natural disasters such as storms and floods.However, by the beginning of 2021, due to the improvement of the Covid-19 epidemicsituation, the indexes began to gradually increase, although the number was not large,but partly saw the recovery after the pandemic of enterprises

 Short-term receivables

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/2021520540

2020 accounted for the lowest receivables in all seven quarters, but then graduallyincreased until the third quarter of 2021 That shows that the business has well handledreceivables from customers and prepayments to sellers, which are receivables thataccount for a large proportion of the company's asset structure

 Inventories

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/202100.5

be more stable but gradually decreased The first quarter of 2020 had the highestnumber compared to the remaining quarters with 2,257 billion, more than half(equivalent to 694 billion) compared to the second quarter of 2020

Sabeco is a company in the beverage industry, its main products include: beer, wine,soft drinks, are popular with many people With the large demand for beer and softdrinks by customers, the demand for raw materials and inventory plays an importantrole in the company’s assets Therefore, the company should well manage its rawmaterials as well as its inventory to avoid shortages or excesses of inventory, whichwill greatly affect the company’s revenue

 Long-term assets

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/20217.47.45

98 billion lower (equivalent to 1.25%) compared to the fourth quarter of 2020, which

is the highest in the graph In the third quarter of 2021, the indexes fell to the lowestlevel, down 53 billion compared to the second quarter of 2021

 Fixed-assets

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/20214.34.4

to increase and decrease unevenly over the quarters In the period of the fourth quarter

of 2020 - the third quarter of 2021, it began to gradually decrease each quarter.Holding the highest position in the graph is the second quarter of 2020 with 4,916billion, 90 billion higher (equivalent to 1.83%) compared to the third quarter of 2020.Although in the fourth quarter of 2020 we saw a slight increase of 1.02% (equivalent

to 49 billion) compared to the third quarter of 2020, but then the company’s assets began to decrease gradually and were the lowest in the third quarter 2021 with4,517 billion, 127 billion lower (equivalent to 2.73%) compared to the second quarter

fixed-of 2021 Since the company’s tangible Fixed-assets decreased by 123 billion VND, thecompany’s Fixed-assets in the third quarter of 2021 also decreased

Graph 1.8: Changes in asset structure from the first quarter of 2020 to the third quarter of 2021.

Based on the data of Table 1.7 “Variety of asset structure in the period of thefirst quarter of 2020 - the third quarter of 2021” and graph 1.8 “The situation offluctuations in the structure of assets in the period of the first quarter of 2020 - thethird quarter of 2021”, we see that the proportion of long-term assets and theproportion of short-term assets increased and decreased unevenly over the quarters,specifically the proportion of Short-term assets in the first quarter of 2020 was 67.59%and gradually increased until the third quarter 2020 is 72.2% Then in the period of thefourth quarter of 2020 - the first quarter of 2021, the proportion remained stable, butthen continued to increase until the third quarter of 2021 with the rate of 73.41%.Although Inventories decreased by 16.30% (equivalent to 268 billion VND), but Cashand cash equivalents increased quite a lot to 143 billion VND (4.54%)

The cause of the decrease in Long-term assets in the quarters in 2021 is due tothe increasingly complicated and prolonged Covid-19 epidemic, which has had aheavy impact on the economy Therefore, the company came up with an appropriatesolution is to change the structure of Long-term assets to short-term assets, in order toensure a stable proportion of the company’s short-term assets as well as ensure thecompany’s ability to pay its debts

1.1.2 Analysis of capital fluctuations

1.1.2.1 Horizontal analysis

Unit: Billion VND

Table 1.8: Liabilities and Equity fluctuations in the period of the third quarter of 2021

- the first quarter of 2020

Source: Dstock

Because Total Liabilities and Equity is equal to total assets, the volatility of TotalLiabilities and Equity is the same as that of total assets Therefore, we only analyze theitems affecting Liabilities and Equity

 Liabilities

Unit: Billion VND

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/20215.2

5.4 5.6 5.8 6 6.2 6.4 6.6 6.8

Graph 1.9: Changes in liabilities in the period of the first quarter of 2020 - the third

quarter of 2021Looking at the graph, we see that the company’s Liabilities increase and decreaseunevenly Specifically, in the period of Q1/2020 - Q3/2020 Liabilities increasedsharply, the highest in the graph was the third quarter of 2020 with 6,641 billion VND.However, after that, Liabilities started to fluctuate and fell sharply with a value in thefirst quarter of 2021 of 5,808 billion VND In the period of Q1/2021 - Q3/2021, theindexes fluctuated continuously In the third quarter of 2021, the value was 5,861billion VND, 539 billion VND (8.42%) lower than in the second quarter of 2021 Thereason for the variation in Liabilities is due to the following items:

Graph 1.10: Movement of shortterm debt in the period of the first quarter of 2020

-the third quarter of 2021From the second quarter of 2020 short-term debt showed signs of graduallyincreasing to 5,573 billion in the third quarter of 2020, this number has increased to

gradually decreased to 4,846 billion VND in Q1 2021, this is a good sign for thecompany despite the complicated epidemic situation because in this period of the end

of 2020, Sabeco has launched a product line in the high-end segment and limitededition, loved by consumers, thanks to which the financial situation becomes morestable

At the same time, the company maintains financial prudence and acts with agility.Focus your spending on the essentials and constantly look for high-performanceopportunities

Graph 1.11: Movement of long-term debt in the period from the first quarter of 2020 to

the third quarter of 2021Sabeco’s long-term debt fluctuates and tends to decrease at the end of the cycle,looking at the chart, we see that from the first quarter of 2020 long-term debt wasrecorded at 883 billion VND but then tended to decrease gradually 804 billion in thethird quarter of 2020, this proves that the company has managed its financial well,which is a good sign, but from the third quarter of 2020 to the fourth quarter of 2020,

the company recorded a long increase in debt record term up to 987 billion, 163 billionhigher (2.12%), this is the time when the company has promoted the most activitiesafter experiencing a difficult first half of the year because of the epidemic, this is thedebt of the business businesses for sellers of materials, goods, services They areinvesting in launching new product lines, so they need a large amount of rawmaterials, so long-term debt increases After the fourth quarter of 2020, this numberhas started to decline until now, reaching 835 billion VND in the third quarter of 2021,proving that this is an extremely good sign for Sabeco in its ability to pay its debtsdebt and manage their finances.

1.1.2.2 Vertical analysis

Table 1.9: The situation of vertical capital fluctuations in the period of the third quarter of

2021 - the first quarter of 2020

Source: Dstock

Quarter 1/2020 Quarter 2/2020 Quarter 3/2020 Quarter 4/2020 Quarter 1/2021 Quarter 2/2021 Quarter 3/2021 0%

quarter of 2021 Debt tends to decrease from the first quarter of 2020 to the third quarter of

2021 Reduced from 23.57% in the first quarter of 2020 to only 20.62% in the thirdquarter of 2021 This is equivalent to a decrease of 2.95% within seven quarters Incontrast, equity tends to increase from 76.43% in the first quarter of 2020 to 79.38% inthe third quarter of 2021 That proves the company has gradually reduced debt andequity is more than 3 times higher than debt This proves that this is a company withgood financial health and higher liquidity than the industry average

1.2 ANALYSIS INCOME STATEMENT

1.2.1 The Income Statement from Quarter 1-2020 to Quarter 3-2021

1.2.2 Analyze the Movement Turnover and Profit after Tax

 The Grow of Turnover increased in 2020, but deceased dramatically in 2021 Especially in Quarter 3-2021, the turnover decreased by 40.57% compared to Quarter 2-2021

 The profit after tax of SABECO gradually increased from 700 billion in quarter

1 to 1,466 billion VND quarter 4 in 2020 This thing proved in 2020 the

decreased Especially which decreased from 999 billion in quarter 2 to 444

billion in quarter 3, by 40.57% profit

 Generally, the turnover and profit in SABECO have strong fluctuation BecauseThe 4th wave of the Covid-19 epidemic and the effects of Decree 100 on the government's ban on the use of alcohol when traveling in traffic have greatly affected Sabeco’s distribution channels, leading to a decrease in Turnover and Profit

Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020 Quarter 1-2021 Quarter 2-2021 Quarter 3-2021

Turnover and Profits in Sabeco

Turnover Profit after tax of company

 Turnover increased by 2,225 billion from Quarter 1-2020 to Quarter 2-2020, while in 2021 the turnover of Quarter 3 decreased significantly by 40.6%

compared with Quarter 3

 The turnover of Sabeco is impacted seriously by Covid-19 Pandemic and

Degree 100 Policy from Government

1.2.3 Analyze the movement structure of profit in Sabeco during period Quarter 1-2020 to quarter 3-2021.

Figure 2.1: Movement of Sabeco's revenue and profit after tax from quarter 1 -2020 to the

quarter 3 - 2021

Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020 Quarter 1-2021 Quarter 2-2021 Quarter 3-20210%

Structure of profit in Sabeco

Financial Income Net profit from operating activities Other Profits

 Sabeco's profit source comes mainly from its business activities because this is

a manufacturing business, so this is completely normal

 In addition, the company's profit source also comes from financial incomesmake up the considerable proportion in structure of profit in Sabeco Evidence

is 217 billion from financial income compare to 1,303 billion from operatingactivities by 14% in total profit in quarter 2-2021 Other profits accounts forvery small proportion

 During Quarter 1 -2020 to Quarter 3-2021, The financial income increased theproportion of profit in Sabeco The profit from financial income have stable

Figure 2.2: The Structure of Profit in Sabeco from Quarter 1-2020 to Quarter 3-2021

proportion of 54% of Sabeco's corporate asset structure.

 Meanwhile, the profit from production activities of enterprises fluctuated stop from 1,156 billion VND at the beginning of 2021 to only 598 billion VND

non-in the third quarter of 2021 Profits from busnon-iness activities are heavily affected

by the 4th wave of covid in 2021, affecting the main distribution channel thatSabeco has the main advantage of being restaurants and pubs

1.2.4 Movement structure of cost in Sabeco from Quarter 1-2020 to Quarter 2021.

3-The cost of goods sold and selling expenses have the trendy decrease from Quarter 1-2020 toquarter 3-2021 The cost of goods sold and selling expenses mainly depend on the turnover ofcompany

Financial charges over the years are very low compared to total costs, while profit from financialactivities accounts for a significant proportion in the profit structure In quarter 3-2021, thefinancial income is more than 223 billion, while the financial chart is only 3 billion

Figure 2.3: The movement structure of cost in Sabeco from quarter 1-2020 to quarter 3-2021

Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020 Quarter 1-2021 Quarter 2-2021 Quarter 3-2021 0%

Structure of Cost in Sabeco

Enterprise Cost agement

Man-Cost of Goods Sold Other Expenses Selling expenses Financial Charges

 The Cost of goods sold make up the highest proportion, about 80% in structure

of cost The company's cost of goods sold includes the cost of raw materials,transportation costs, and insurance COGS increased steadily in 2020 fromVND 3,556 billion to VND 5,397 billion in the fourth quarter, equivalent to anincrease of 34.1% The increase in COGS is due to the fact that the companysells more products, which can be seen in the increase in revenue

 By 2021, the cost of goods sold has a marked decrease, decreasing by aboutVND 1009 billion in the third quarter when compared to the first quarter of thesame year The decrease in cost of goods sold is due to the fact that thecompany has kept a relative amount of inventory However, partly because thecompany sold fewer products (revenue decreased), the cost of goods sold alsodecreased

 From quarter 1-2020 to quarter 4-2020, selling expenses increased sharply bynearly 195 billion dong, equivalent to 34.64% The increase in selling expenses

is mainly due to the increase in inventory clearance In the first quarter of 2021,selling expenses continued to increase by more than 90 billion dong, equivalent

to 12% But, in the 3rd quarter of 2021, the selling expenses decrassed to 608billion

 The Financial chart and other expenses make up the very small proportion instructure of cost in Sabeco

 General and administrative expenses increased sharply in the second quarter of

2020 and gradually decreased until the fourth quarter Specifically, in Q2-2020,administrative expenses increased by more than 70 billion VND, equivalent to

third quarter of 2021 compared to the second quarter of 2021.

 Although Revenue decreased sharply in 9 months in 2021 but advertising andpromotion expenses of Sabeco still increased by 34% to VND 1,561 billion,increasing COGS, significantly reducing the company's profit

 The company tends to invest finance outside instead of borrowing to expand itsoperations (avoiding risks) Evidence is the the increase of short term asset iscash and equivalent and the decrease of long-term asset because depreciationmachinery

1.2.5 Analyze the accounting profit and profit after tax.

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Profit of Sabeco

Accounting profit before tax Profit after corporate income tax Profit after tax of company

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Figure 2.4: The profit of Sabeco from Quarter 1-2020 to Quarter 3-2021

 Looking at the graph, we see that the profit before tax in the fourth quarter of 2020 increased

by more than VND 926 billion, an increase of 97.99% compared to Q1.2020 Despite thedifficult economic situation in 2020, the company's pre-tax profit still increased quite high,proving that the company has cut costs quite well

 In 2021, the company's pre-tax profit in Q1 again had a sharp decrease, down nearly VND640.5 billion, equivalent to a decrease of 34.22% and continued to decrease to only VND 600billion in the third quarter of 2021 Due to the impact of Covid-19 pandemic and have not beenable to cut many expenses

 In 2020, profit after corporate income tax from Quarter 1 to Quarter 4 increased by 816.7billion VND, equivalent to 113.91% But in Q1/2021, profit after corporate income tax droppedsharply, down nearly VND 548 billion, equivalent to 35.69% and continued to decrease to onlyVND 472 billion in the third quarter of 2021 effective and not well controlled costs

Comment about income statement

General comments on the company's business results over the period.

 In 2020, the company's business situation is quite good when the company's profit after taxincreases in value and proportion The reason as analyzed above is that the company has reasonablepolicies to help reduce selling and administrative expenses

 In 2021, profit after tax decreased sharply, mainly because the company's expense items increased

in both value and proportion The company needs to take reasonable measures to cut and controlcosts in order to minimize the negative impact of costs on the company's profits At the same time,the company should expand its operations to other markets because the competitive pressure in thebeer industry is increasing and the growth rate of the beer industry is slowing down because themarket has gradually saturated

 Profits from operating activities account for a much larger proportion than financial activities With

a huge amount of cash in the bank but low interest rates In recent quarters, Sabeco hardly invested

in new projects but kept a large amount of cash, accounting for 66% of total assets Maybe a part ofthe company wants to stabilize cash flow during the 4th wave of Covid-19 epidemic

 The ratio between operating profit and financial profit is changing from year to year and is movingtowards an increase in the ratio of financial activities The company tends to invest finance outsideinstead of borrowing to expand the company's operations (because the debt-equity ratio of thecompany is quite low, which means that the business has relatively few external loans to expandbusiness investment)

1.3 Analyze cash flow statement

The statement of cash flows is a part of financial statements and it shows where a business's cash flows are going, going, and coming from

But we need to take a closer look at where does the cash flow in Sabeco comes from? From a business or a loan? Or from property sales? All the reasons for making

money show us that Sabeco is strong, is it making money? Or are they just virtual

benefits? This is what the monetary statement will tell us

Table 3.1 : Cash flow statement for the period of the quarter

3/2020 - the quarter 3/2021

Consolidated Statements of Cash Flows

Items

Quarter 3-2021

Quarter 2-2021

Quarter 1-2021

Quarter 4-2020

Quarter 3-2020

Quarter 2-2020

Quarter 1-2020

I CASH FLOWS FROM OPERATING ACTIVITIES

Accounting profit before

Interest expenses 11 13 14 16 13 17 18Earning interest and

-Operating profit before

Other expenses for

Net cash inflows from

II CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of fixed assets

Proceeds from disposals of

Cash back from capital