EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 AT A GLANCE KEY FIGURES – 3rd QUARTER 2011 Unit: VND bil Item Net Sales Gross Profit SG&A1 Net Profit Before Tax Net Profit After Tax No of Shares 36.0% 52.7% months /2011 546.5 224.0 months /2010 329.7 128.2 23.6 33.4% 80.3 58.8 36.6% 55.2 34.5 60.0% 148.6 69.4 114.1% 44.2 23,104,98 27.6 15,327,99 60.1% 118.0 55.5 112.6% Q3/2011 Q3/2010 incr./dec r 209.6 88.4 154.1 57.9 31.5 SG&A: Selling expenses, General and administration expenses HIGHLIGHTS – 3rd QUARTER 2011 • Total revenues up 36.0% to VND 209.6 bil • NPAT increases 60.1% to VND 44.2 bil incr./decr 65.8% 74.7% EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 Everpia Vietnam JSC (EVE - HSX): is pleased to report its third quarter 2011 financial performance with quarterly net revenue at VND 209.6 bil and net profit after tax (NPAT) at 44.2 bil., a growth of 36.0% and 60.1% yoy respectively These results were exceeding the revenue and NPAT budget for the period by 18.2% and 37.9% respectively Accumulated profit of months ended 30/09/2011 is VND 118.0 bil., an increase of 112.6% in comparison with the same period of last year QUARTERLY SALES PERFORMANCE Item Q3, 2008 Q3, 2009 Q3, 2010 Q3,2011 Incr./decr -Bedding Sales 42.0 51.6 100.0 146.5 46.5 46.5% -Padding Sales 35.3 31.6 54.1 63.1 9.0 16.6% Total 77.3 83.2 154.1 209.6 55.5 36.0% EVE reached revenues of VND 209.6 bil in the third quarter of 2011, increasing 36.0% compared with the same period of 2010 due to: i The increase in sales volumes for both bedding and padding products by 19.2% and 37.1% yoy respectively; ii The adjustment in pricing policies in Mar and Sep following the price increase of two main raw materials, especially fiber and fabric; iii The expansion of the distribution network to 488 shops as at September 2011 from 390 shops at the end of 2010; Entering high season, Bedding sales represented 63.4% of total sales, an increase of 46.5% from Q3, 2010 and exceeding the budget by 49.8% (VND 97.8 bil.) Padding sales in Q3 2011 increased by 16.6% yoy to reach VND 63.1 bil As the Padding season started earlier in 2011, months revenue of Padding business at the end of September was VND 210.4 bil., achieving 95.3% of the whole year target and increasing 57.8% yoy EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 Unit: VND bil Ac cu mu lat ed sal es Be ddi ng sal es Pa ddi ng sal es Tot al Ja n – S ep , 20 11 33 Ja n – S ep , 20 10 19 21 13 54 32 % I n c r % % % In months of the year, total revenues and NPAT reached VND 546.5 bil and VND 118 bil., representing 65.8% and 112.5% yoy growth respectively and achieving 68.3% of yearly sales budget and 73.7% of yearly profit budget OPERATING RESULTS Item Net Sales Gross Profit SG&A Financial Income Financial Expense NPBT NPAT Q3/2011 209.6 88.4 31.5 2.5 6.2 55.2 % to Sales 100.0% 42.2% 15.0% 1.2% 3.0% 26.4% Q3/2010 154.1 57.9 23.6 2.9 3.5 34.5 % to Sales 100.0% 37.5% 15.3% 1.9% 2.3% 22.4% incr./decr 36.0% 52.8% 33.4% -14.4% 75.7% 60% 44.2 21.1% 27.6 17.9% 60.1% Despite the increase of COGS by 23.8%, the gross profit margin was improved from 37.5% to 42.2% in Q3/2011 thanks to better management of raw material inventory as well as improving labour productivity SG&A expenses were increased 33.4% yoy mainly as the Company started Television Commercial on television from Aug 2011 Moreover, some marketing expenses were paid during this quarter even though the advertisement campaign on billboard, LCD, and magazines were started from year beginning Financial Expenses significantly increased due to negative exchange rate fluctuation but remained at low level EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 Eventually thanks to strong sales and improved gross margin, the third quarter NPAT rose 60.1% to VND 44.2 bil Current ratio and quick ratio still remained at high level at 4.51 times and 1.98 times respectively as of the end of Q3/2011 FINANCIAL STATUS During months 2011, EVE used short term financing from bank to make payments for imported goods As on 30/09/2011 short-term loans and liabilities were at VND 71 bil and should be reimbursed before end of the year The Charter Capital was increased by 52.7% from VND 153.3 bil EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 in December 2010 to VND 234 bil as at the end of September 2011 due to the issuance of bonus shares at a rate of 50% Long-term financial debt is nil, the financial structure of EVE remains very sound with leverage at 0.24 times EVE has a strong cash position at the end of Q3/2011 (VND 109.1 bil.) even though in reduction compared with January 2011 (VND 194.6 bil.) due to high seasonal working capital needs GROWTH PERSPECTIVE Due to the cycle of its businesses, the th quarter usually represents about 40% of the yearly performance of EVE for revenues and NPAT October is another successful month for EVE, with total sales of VND 85.7 bil., an increase of 38% in comparison with October, 2010 and estimated NPAT at VND 21.6 bil With current business performances, till October 2011 EVE has attained 77.9% its sale plan (VND 800 bil.) and 87.3% of its profit plan (VND 160 bil.), EVE is confident it can achieve its 2011 targets for sales and profit U n i t : V N D b i l Y e a r l y T a r g e t 1 S a l e s 0 N P A T EVE SHARES - EVE filed documents for the issuance of bonus shares to the State Securities Commission (SSC) on July 26th 2011 EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 - EVE has completed the procedures for issuing, listing, and depository Employee Stock Ownership Plan (ESOP) shares 2011 410,000 stock rights have been offered to employees shortlisted in 2010 at the par value of VND 10,000 per share • Listing date takes effect on: November 9th 2011 • Official transaction date: November 14th 2011 For more information, please contact: Ms Phan Mai Linh Planning Team Manager Tel: 04.3 827 6490 (ext: 347) Email: info@everpia.vn / mailinh@everpia.vn ...EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 Everpia Vietnam JSC (EVE - HSX): is pleased to report its third quarter 2011 financial performance with quarterly net revenue at... EVE SHARES - EVE filed documents for the issuance of bonus shares to the State Securities Commission (SSC) on July 26th 2011 EVERPIA VIETNAM JSC Quarterly Report – 3rd Quarter 2011 - EVE. .. 50% Long-term financial debt is nil, the financial structure of EVE remains very sound with leverage at 0.24 times EVE has a strong cash position at the end of Q3/2011 (VND 109.1 bil.) even though