http://www.everpia.vn QUARTERLY REPORT For the third quarter from 1st Jul – 30th Sep, 2012 EVERPIA VIETNAM JSC (HSX: EVE) Plan Team EVE still maintains its profitability and sound financial status, as though lower sales and profit level in compare with same period last year due to hard economic situation Unit: VND bil Q3 Q3 /2012 /2011 Bedding 105,690 139,389 -24.2% Padding 58,956 76,600 -23.0% 164,646 215,988 -23.8% Business Total +/- % Unit: VND bil Q3 Q3 /2012 /2011 Net Sales 164,820 216,027 COGS Items +/- % -23.7% 102,378 124,300 -17.6% Gross Profit 91,688 62,267 -32.1% SG&A 27,416 31,925 -14.1% NPBT 39,360 56,083 -29.8% NPAT 30,608 45,017 -32.0% Quarterly Sales & Profit performance 3rd quarter normally opens high season of bedding business which brings main revenue and profit to EVE However, instead of big promotion program for mattresses and inserts during September, due to low purchase power, sales and NPAT in this quarter was VND164.6 bil (by which bedding contributed VND105.7 bil and padding contributed VND59.0 bil.) and VND30.6 bil in turn (equal to 76.2% and 68.0% quarter-on-quarter) From year-beginning, EVE clearly defined priority of stable sales In executing this target, we have been trying to avoid increasing product price, even decreasing in such many promotion programs, in while labor cost, production cost was increasing due to high inflation through-out a year This lead Gross margin down, from 42.5% in Q3, 2011 to 37.8% in Q3.2012, and rate of SG&A to revenue also increased from 14.8% to 16.7% Accumulate from January to September, 2012, EVE has achieved total revenue of VND468.7 bil and NPAT was VND69.5 bil which shown profitability of 14.8% Stable financial status Items Debt to Equity (%) Q3 Q4 Q3 /2012 /2011 /2011 25.2% 22.7% 24.1% Current Ratio (x) 3.81x 4.55x 4.47x Acid Test Ratio (x) 1.70x 1.79x 1.75x By positive Net cash used in operating activities (VND107.8 bil instead of negative VND114.5 bil in Q3, 2011), EVE had Cash and Cash equivalent of VND143,8 bil in the end of Q3, 2012 (even during months of 2012, EVE invested big amount on the new Hung Yen factory - over VND90.9 bil.) This amount is easy to cover the short-term loan balance which was VND83.4 bil (used mainly for importing main material) Then, in the middle of hard economic situation, while many companies are struggling to avoid bankruptcy, EVE still shows its sound financial status by current ratio of 3.81x and acid test ratio of 1.70x Business operating During the 3rd quarter, 2012, the Board of Management had discussed and agreed: Unit: VND bil Business Sales Bedding Padding NPAT Initial target 900,000 690,000 210,000 160,000 Revised target 800,000 590,000 210,000 110,000 +/- % -11.1% -14.5% 0.0% -31.3% - Establish 100% invested subsidiary in Phnom-Penh, Cambodia, with total investment amount of USD500,000 All Investment application procedures have been completed, and Everpia Cambodia Co., Ltd is expected start operating from Dec, 2012 - Revised sales and profit target of year 2012 to VND800 bil and VND110 bil in turn due to tough Vietnamese business environment Business performance in Q4, 2012 Because of no promotion program for bedding during October, 2012 and it was the end of padding season, revenue in this month was quite low, equal to a half of Oct, 2011 However, as from the beginning of November, sales has been increasing significantly due to main season and big promotion program for all agents nationwide We are expecting for the achievement on secondary profit target in 2012 (VND110bil.) Recent Event On 12th Nov, 2012, EVE had organized Opening Ceremony for its 3rd Factory in Tan Quang – Van Lam – Hung Yen with the attendance of over 300 people, who were Korean Ambassador, some Vietnamese government offices, main shareholders, and closed partners For the convenience of approaching Bedding business for Hotel & Resort in Middle of Vietnam and for exportation to Laos, BOM has decided to establish Da Nang trading branch with total investment of VND10 bil As from 20th Nov, 2012, dividend stock which was issued by Resolutions of Annual Shareholder Meeting at the rate of 20% starts listing in HSX (while cash dividend at the rate of 15% had been paid on 30th May, 2012) Coming Event EVE has called for Extra General Shareholder Meeting in order to have approval on expanding business scope Meeting date is expected to be on middle of Dec, 2012 For further information, please contact: Plan Team Tel: 0321 – 3791 777 Fax: 0321 – 3791 999 Email: info@everpia.vn http://www.everpia.vn ... 210,000 160,000 Revised target 800,000 590,000 210,000 110 ,000 + /- % -1 1. 1% -1 4.5% 0.0% -3 1.3% - Establish 100% invested subsidiary in Phnom-Penh, Cambodia, with total investment amount of USD500,000... procedures have been completed, and Everpia Cambodia Co., Ltd is expected start operating from Dec, 2012 - Revised sales and profit target of year 2012 to VND800 bil and VND110 bil in turn due to tough... performance in Q4, 2012 Because of no promotion program for bedding during October, 2012 and it was the end of padding season, revenue in this month was quite low, equal to a half of Oct, 2011