TCDN VTO(official)

VIETNAM TANKER JOINT STOCK COMPANY(VITACO) TRAN VU TRUNG 0951050152 CONTENT  Company overview  The relationship between Vietnamese financial market and VTO’s financial management  Financial improvement  Ratio analysis  Summary COMPANY OVERVIEW  Address: 4th floor, Building number 8, Nam Ky Khoi Nghia Street, District 1, Ho Chi Minh City  Scope of business: petroleum transport logistics, petroleum and petrochemical products agent, vessel repair and maintenance service, vessel lease service, real estate intermediary  Listing date: 01/10/2007  Chartered capital: 798,666,660,000 VND  Email: vitaco@viettanker.com.vn\  Website: http://www.viettanker.com.vn The relationship between Vietnamese financial market and VTO’s financial management Vietnamese financial market - Economic downturn in 2008 - Capital outflow from stock market Effects on VTO - Force VTO to reduce its liabilities - The efficiency of business has decreased VTO’s financial policies: - Focus on its core investment - Issue 19,866,666 shares to the public - Reduce unreasonable costs and optimize the use of current assets FINANCIAL STATEMENT Balance sheet (Unit: VND)   2008 2009 2010 149,081,500,835 212,044,963,468 382,656,202,900 Long-term assets 3,263,709,642,245 3,069,731,394,041 2,683,979,138,971 TOTAL ASSET 3,412,791,143,080 3,281,776,357,509 3,066,635,341,871 Current liabilities 268,165,727,763 641,694,339,461 453,836,883,244 Long-term liabilities ,365,123,201,767 1,855,041,293,358 1,581,732,550,168 Liabilities 2,633,288,929,530 2,496,735,632,819 2,035,569,433,412 779,502,213,550 785,040,724,690 1,031,065,908,459 3,412,791,143,080 3,281,776,357,509 3,066,635,341,871 Current assets Owner's Equity TOTAL EQUITY AND LIABILITIES (Source: cafef.vn) FINANCIAL STATEMENT Income statement (Unit : VND)   2008 2009 2010 Gross sale revenues 753,110,139,102 1,165,021,362,499 1,352,092,939,389 Gross profit 166,976,935,609 275,189,307,302 402,153,784,687 Operating profit 38,723,456,133 38,735,576,508 102,070,901,668 Net profit before tax 40,238,563,162 38,567,322,492 102,011,198,096 Net profit after tax 35,992,648,141 34,294,352,667 83,097,563,413 Earning per share 657 575 1,087 (Source: cafef.vn) FINANCIAL STATEMENT CASHFLOW STATEMENT (Unit: VND)   2008 2009 2010 Net cash inflows/ (outflows) from operating activities 197,198,217,302 446,173,345,593 284,146,212,529 Net cash inflows/ (outflows) from investing activities -1,719,036,839,822 -6,212,529,084 31,225,344,420 Net cash inflows/ (outflows) from financing activities 1,498,073,048,996 -327,355,787,881 -290,469,390,502 Net increase in cash and cash equivalents -23,765,573,524 112,605,028,628 24,902,166,447 Cash and cash equivalents at the beginning of period 39,907,002,124 11,122,551,139 123,775,334,942 Effect of foreign exchange differences -5,018,877,461 47,755,175 -275,870,613 Cash and cash equivalents at the end of period 11,122,551,139 123,775,334,942 148,401,630,776 (Source: cafef.vn) RATIO ANALYSIS Liquidity ratio RATIO Current ratio Quick ratio 2008 2009 2010 56% 33% 84% 264% 223% 244% 35% 25% 73% 241% 207% 226%  Extremely high liquidity risk RATIO ANALYSIS Asset management ratio RATIO Inventory turnover 2008 2009 2010 10.76 17.72 18.32 Average collection period 25.75 7.76 35.03 Non-current assets turnover 23% 38% 50% 22% 36% 44% 53% 41% 44% Total asset turnover  Asset management: inefficient RATIO ANALYSIS Financial leverage RATIO 2008 2009 2010 77% 76% 66% 47% 50% 77% Long term debt to total capitalization 3.03 2.36 1.53 Times interest earned 1.43 1.26 1.84 Equity multiplier 4.38 4.18 2.97 Debt ratio  Face risk in solvency But take advantages of financial leverage RATIO ANALYSIS Profitability RATIO Net profit margin Returns on Total asset Returns on Equity 2008 2009 2010 5% 3% 6% 7% 7% 5% 1% 1% 3% 7% 6% 6% 5% 4% 8% 15% 13% 11%  Relatively low profitability RATIO ANALYSIS Market value ratio In 2010 VTO Industry P/E 4.04 6.4 P/B 0.39 0.45 EPS 1222 1882  Not quite good RATIO ANALYSIS Dupont analysis  ROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)  ROE (2008) = 0.0478 * 0.2207 * 4.3782 = 0.0462  ROE (2009) = 0.0294 * 0.3550 * 4.1804 = 0.0437  ROE (2010) = 0.0615 * 0.4409 * 2.9794 = 0.0806 Summary  RISK  FINANCIAL IMPROVEMENT  FUTURE ORIENTATION