BECAMEX INFRASTRUCTURE JSC

Stock ticker: IJC

July 2020
1 INVESTMENT HIGHLIGHTS

2 BUSINESS ACTIVITIES

3 FINANCIAL SITUATION

4 BUSINESS PLAN 2020 - 2025

2
 Becamex Infrastructure Development Joint Stock Company

Offering company BECAMEX INFRASTRUCTURE JOINT STOCK COMPANY (HSX – IJC)

Charter capital 1,370,973,230,000 VND (equivalent to 59 million USD)

Type of securities Common shares

Number of shares offered 80,000,000 shares

Total offered shares at par value 800,000,000,000 VND, equivalent to 58.4% of current capital
Type of offer Public offering through auction at Ho Chi Minh Stock Exchange

Starting price Will be determined based on book value per share in the latest Financial
Statement of the Company; or the average closing price of 30 continuous
trading days of IJC before announcement of the auction, but no less than
10,000 VND per share.
Time of issue In 2020, after SSC approval

Use of proceeds ✓ Complement of 02 real estate projects

✓ Increase operating capital

3
 Company overview Comparison
Becamex Infrastructure Development Joint Stock Company Charter capital of Becamex’s subsidiaries (USD mil)
Listing date 19/04/2010 (HSX: IJC) IJC 59
Charter capital ~ 59 USD million TDC 43 Being the largest subsidiary of
Market capitalization ~ 73 USD million
Becamex IDC, our company has been
VSIP 41
strongly supported by the Corporation in
Maximum foreign ownership 49% BCE 13 its operations
UDJ 7
Current foreign ownership 1.5%
Subsidiaries
Business segments • Business: Hotel, restaurant management, other
Becamex Hotel Limited hospitality businesses
Company (BHI)
• Charter capital: over 500.000 USD bil
• IJC ownership: 100%
Becamex Trading Limited • Business: Commercial properties management, retail, travel
Company (BTI) agency, etc
Real estate Infrastructure Construction Services
• Charter capital: over 860.000 USD bil
Operating region • IJC ownership : 100%
Ownership at 29/05/2020 Strategic
economical region We operate mainly in the province of Binh Duong, one of the
21.2% fastest-growing area of Vietnam, with many advantages :
Becamex IDC • Location: North of Ho Chi Minh city with developed
infrastructures, make it easily to connect with other
Others strategic economic regions in the southern area of Vietnam.
• Binh Duong ranks 2nd in attracting FDI in Vietnam. The city
78.8% was also listed in smart21 Communities of 2020.

4
 Binh Duong GDP 2015 - 2019
• US - China trade war has made several companies to
Dynamic relocate their facilities to other countries, including 13.20% Binh Dương
Bình Duong Nationwide
Cả nước
economic Vietnam. As a result, provinces like Binh Duong, with 9.15% 9.01% 9.50%
8.50%
zone with synchronous infrastructures, good policies could attract more
high growth FDI capital, as well as high-quality workforce, which would
6.68% 6.21% 6.81% 7.08% 7.02%
potential then lead to an increase in demand for infrastructures,
residence and commercial properties, etc.
2015 2016 2017 2018 2019
• Since the establishment, IJC has acquired more
than 195 ha of land bank in high-potential areas of Binh Duong population 2010 - 2019
Large and
Binh Duong; Growth ratedân số
potential Dân số
Population Tăng trưởng
• The Company is secondary real estate developer, 2.46
land fund 2.07 2.16
with diversified product portfolio suitable for 1.73 1.80 1.87 1.95 2.00
various types of customer 1.62 1.66
14%
9% 4% 4% 4%
4% 4% 4%
• Two BOT toll gates located on no.13 national 2% 2%
Effective way, with operating period until 2037, as well as
and stable high and stable traffic volumes has been creating a
income solid, high-margin source of income for our 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
from BOT Company.
Vietnam Top 5 province in FDI attraction 2019 (USD bil)
road toll • Forecasted traffic volume could increase due to
upcoming major infrastructure projects. Hà Nội
Hanoi

TP. HCM
HCMC
Growing • IJC has two subsidiaries operating in service
business, including: Becamex Office tower BìnhDuong
Binh Dương 3.1
income
source from (GFA: 40k sqm) and Becamex Hotel (>300 Dong
ĐồngNai
Nai
service keys) with operating efficiency improving over
Bac
BắcNinh
Ninh
business the years
Source: GSO, FIA
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1 INVESTMENT HIGHLIGHTS

2 BUSINESS ACTIVITIES

3 FINANCIAL SITUATION

4 BUSINESS PLAN 2020 - 2025

6
Revenue and profit 2017 - 2019
Revenue CAGR ~ 28% Unit: USD Revenue and profit: Impressive growth with CAGR (2017 –
43.7% 2019) at approximately 28%. 2019 net profit was over 12 USD
37.6% mil, the highest since 2012.
33.6%
High profit margin: We have relatively high profit margins
69 compared with other companies in the industry. Our average
54 gross and net profit margin of 2017 – 2019 period were
42 ~40% and ~20% respectively.
18 20 23
8 10 12

2017 2018 2019

Net Revenue Gross profit NPAT Gross profit margin Revenue contribution
Inside out: 2017 - 2019
• Real estate development has been the main business of
our company since 2017. Its average contribution to total Kinh
Real doanh
estate bất động sản
development
revenue and gross profit were 46% and 41% respectively
19%
over the period of 2017 – 2019. Thu
Toll phí
roadgiao thông
collection
18%
• The portion of Toll fee collection contribution has
been stable at 20% of net revenue. But due to high 18% 32% Xây dựng
Construction
5% 46%
gross margin (up to 80%), this business segment has
13% Services
Dịch vụ (Hotel)
almost equal profit contribution as of Real estate 18% 57%
development. 25%
Partnership
Hợp tác kinh doanh
• Improving efficiency of Hotel and Office leasing 17%
20%
activities is becoming increasingly important in our
operation. While other segments remain stable. Bất động
Office sản đầu tư
leasing
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 REAL ESTATE
DEVELOPMENT

8
Operating regions Residential land bank
• Since establishment, we have been cooperating with Becamex Total Remaining
IDC, VSIP and other companies to develop our land fund nearly Project Location saleable saleable area
150ha. As of the end of 2019, IJC has 14 projects under area (m2) (m2)
development with 67.8 ha of saleable residential land. Available for sale

• In the long term, We would continue collaborating with traditional The Green River Ben Cat city 571,931 80,893
partners, as well as develop new partnerships with other large Hoa Loi Resettlement (low rise) Thu Dau Mot city 44,175 25,807
corporations. Our goal is to maintain 70-100 ha of land fund
every single year. Sunflower villa Thu Dau Mot city 53,517 39,366
IJC Aroma apartment Thu Dau Mot city 21,388 9,838

Princetown townhouse Thu Dau Mot city 6,462 490

IJC townhouse project Thu Dau Mot city 236,961 49,365

IJC Hoa Loi low rise (F1-F16) Thu Dau Mot city 146,882 138,933
D9, D3, D10, D5, D3A worker
Tan Uyen city 29,679 5,623
housing project
Bau Bang worker housing Bau Bang district 20,684 3,142
Our advantages
Developing
✓ Clean and large ready-to-sell land fund up to 67.8ha, Expanded Princetown Phase Thu Dau Mot city 36,364 36,364
all of which are part of various major urban projects Expanded Sunflower Villa Thu Dau Mot city 52,728 52,728
of Binh Duong. Hoa Loi Resettlement (low rise) Thu Dau Mot city 66,267 66,267
✓ Our projects are located in strategic areas such as 5C Bau Bang low rise residence Bau Bang district 143,424 143,424
the center of Binh Duong New City, or adjacent to Chon Thanh
several industrial parks such as VSIP 2, VSIP 3, IJC Binh Phuoc worker housing district, Binh Phuoc 26,012 26,012
province
Mapletree, etc.
✓ Low acquisition cost due to land bank acquired many TOTAL 1,475,361 678,252
years ago.

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Notable projects

Expanded Prince Town Sunflower villa Hoa Loi Resettlement (low rise)

Location New city Location New city Location New city

Size ~ 4 ha Size ~ 12 ha Size ~ 7 ha

Products Townhouse 203 villas and 5 blocks
Products Products Resettlement land
Expected of residential building
More than 30 USD Expected Expected
development
mil development approx 113 USD mil development approx 8.6 USD mil
cost
cost cost

Status Developing Available for sale (1st Status Developing

Status
stage)

10
Notable projects

5C Bau Bang residence (low rise) IJC townhouse project Becamex City Center
Location New city
Location Bau Bang district Location New city
Size ~ 6 ha
Size ~ 14 ha Size ~ 24 ha Commercial, service
Products
building
Products Blocks of land Products Villas and townhouse
Expected
Expected Expected development Approx 107 USD mil
More than 280 USD
development Approx 16 USD mil development cost
mil
cost cost BCC partnership with
Status Developing Status Available for sale Status Becamex IDC,
Available for sale

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Notable projects

Tan Binh – Suoi Tre residence Binh Phuoc worker housing VSIP worker housing
Minh Thanh Expanded VSIP 2
Tan Binh commune,
Location commune, Chon Location industrial park
Bac Tan Uyen district Location
Thanh district, Binh
Phuoc province
Size ~ 13.4 ha
Size ~ 2.6 ha Size 5.0 ~ ha
Products Blocks of land
Products Townhouse Products Townhouse
Expected
Expected Expected
development More than 7 USD mil
development Approx 8,4 USD mil development
cost Approx 17.5 USD mil
cost cost

Status Available for sale Status Available for sale Status

Available for sale 12
 Overall
Net revenue and gross profit of real estate development
segment ( USD miilion) Revenue and gross profit: Accounted for the largest portion
of our total revenue. Real estate development experienced an
45% Impressive growth from 2017 to 2019. Average CAGR for
revenue was ~ 70% while the growth rate of gross profit was
33% ~16% for the period.
38 High profit margin: We have a high profit margin as a result
20%
23
of low land acquisition cost (accounted for the highest portion
of project development cost). The average gross margin of this
12
6 8 8 business segment was more than 40% for the period 2017 -
2019.
2017 2018 2019
Growth potential
Revenue Gross profit Gross profit margin

Notable projects: • Fast urbanization pace is an important pillar for rising real
estate demand in Binh Duong. Binh Duong New City was
Development cost planned as the central district of Binh Duong Province. Aside,
No. Project Size Product
(USD mil) other districts and towns including Ben Cat, Thuan An, Di An,
1 Sunflower 12 ha 99 Villa 113 Tan Uyen, Bau Bang have been boosting urbanization to
become worthy central urban zones.
2 IJC Aroma 2.3 ha 499 apartments 39 • Thanks to manufacturing companies’ transition from China
amid the trade war and new free trade agreements (FTA)
3 IJC Hoa Loi 14.8 ha 888 townhouses 63 including EU-Vietnam FTA (EVFTA), industrial properties are
in high demand. Thus create more demand for residence
4 IJC Vinh Tan 38.9 ha 1,680 townhouses 25
housing as well as services around these areas. With our
experience and strong capacity, we would continue developing
various projects to cope with the wave of FDI shifting.
13
Road toll Business

14
No.13 national highway BOT Summary Stable and efficient
Revenue and profit (USD million) business with high profit
83%
81% 82% 80%
margin:
80%

12
8%
11
9 10 11
9 9 10 CAGR (2015 – 2019)
7 8

2015 2016 2017 2018 2019

~80%
Gross margin
Revenue Gross profit Gross profit margin
Traffic turn over (million)

✓ ETC system to ensure

18.1 19.0 20.3 no loss in fee collection.
15.2 16.5
✓ Long operating period,
until 2037.
2015 2016 2017 2018 2019

Potential
Km1+248 – Km65+355
Total length
(64km) • High growth potential: As supply
Development cost 39.6 USD mil • Located on a strategic highway chains migrate from China,
connecting many economic industrial properties, as well as
Operating period 2002 – 2037 regions with Binh Duong with infrastructures systems. This could
Manual and electronic high and stable traffic volume. result in a increasing in traffic
Technology volume in the upcoming years.
toll collection system
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4
CONSTRUCTION –
INVESTMENT –
TRADE – SERVICE
Construction Partnership Service

Infrastructure Retail
Partner with Becamex IDC to IJC’s subsidiary (BTI)
VSIP II, Becamex Tokyu,
develop Becamex City Center operates a supermarket.
My Phuoc – Tan Van
Expressway…
Commercial real estate leasing
Housing Commercial centers, office Other services
Viet – Sing public buildings in Becamex City Hospitality, asset management
housing project, Phu An Center for leasing, IJC Aroma service ... (through
residential area… Apartment... subsidiaries – BHI & BTI)

Revenue by business activities

Unit: USD million
2017 2018 2019
7.8 7.5 7.6

3.6 3.8
3.0
2.0
0.7 0.8 0.7 0.9 0.9

Construction Partnership Investment porperty Other services

(*) Hospitality revenue not included 17
Services offered
Becamex Hotel
• BHI operates a 3-star hotel and a 4-star hotel in premium 230 Binh Duong Avenue,
locations in Thu Dau Mot City, e.g. on Binh Duong Avenue Thu Dau Mot City, Binh Duong
(National Route 13) and in the center of Binh Duong New
City. 3-star hotel, 172 rooms
• High-quality services offered at the location include:
Average occupancy rate: >85%
• Hotel
• Restaurant
Becamex New City Hotel
• Convention center
Hung Vuong Street, Thu Dau
• BHI’s hotels are near Industrial Parks such as VSIP II, Mot City, Binh Duong
Maple Tree... and serve primarily high-skilled
specialists coming to work in Binh Duong on a regular 4-star hotel, 323 rooms
basis, bringing a stable flow of revenue for BHI.
Average occupancy rate: > 65%
Revenue and profit of BHI
Unit: USD million • Impressive revenue growth: the 2015 – 2019 CAGR is ~ 40%
Revenue NPAT • Increasing profit margin: reaching as high as ~ 20% in 2019
• Business results fluctuate less than an average hotel thanks
9.5 to serving mostly travel-for-business guests; there is still
7.4
5.4 2.0 potential for growth resulting from the ongoing trend of foreign
4.2 1.4
2.7 0.3 0.4 0.8 investment to local industrial parks.

2015 2016 2017 2018 2019

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1 INVESTMENT HIGHLIGHTS

2 BUSINESS ACTIVITIES

3 FINANCIAL SITUATION

4 BUSINESS PLAN FOR 2020 - 2025

19
Assets Current Assets on 31/12/2019

81 80
76 Tiền
Cashvà tương
and cashđương tiền
equivalent
15%
Financial
Đầu tư tài investment
chính

264 270 Phải

249 Shortthu ngắn
term hạn
receivables

Hàng tồn kho

Inventories
83%
2017 2018 2019 Tài sảncurrent
Other khác assets

Current Assets Non-current Assets

Liabilities & Shareowner’s Equity Liabilities

0.79 0.79
0.76
12% 9%
30%

67% 67%
274 275
49% 246
0.23 0.20
0.07
21% 21% 24% 78 71 22

2017 2018 2019 2017 2018 2019

Shareowner’s
Vốn chủ sở hữu Short
Nợ ngắnterm
hạn NợLong term
dài hạn Liabilties Debts
Equities Liabilities Liabilities
Liabilties to Assets ratio Debts to Assets ratio 20
Profitability
43.7% 15.9%
37.6% 13.7%
33.6%

19.1% 8.0%
18.7% 17.8%
2.9% 3.6%
2.2%

2017 2018 2019 2017 2018 2019

Biên
Grosslợiprofit
nhuận gộp
margin Biên
Net lợi nhuận
profit ròng
margin ROEA ROAA

IJC’s profitability versus other companies’ in the same industry Cash flows
The positive cash flow from operations has
Unit: USD million
been used to reinvest as well as service debts.
Charter capital Revenue
Ticker ROE
(USD mil) (USD mil)
DXG 224 250 15.8%

IJC 59 69 15.9% 63
46
20
TDC 43 84 12.0%
2017 2018 (13) 2019
LCG 43 109 12.5%
(51)
(63)
BCE 13 27 10.2%

CFO CFI
21
1 INVESTMENT HIGHLIGHTS

2 BUSINESS ACTIVITIES

3 FINANCIAL SITUATION

4 BUSINESS PLAN 2020 - 2025

22
Business Plan for 2020 – 2025 (subsidiaries excluded)
Unit: USD million
87 Revenue’s CAGR ≈ 16%
79 33.7%
32.8%
63 28.0% 64 28.9% 65
60

19.2%
13.3% 22
17 18 19 20
10

2020F 2021F 2022F 2023F 2024F 2025F

Net Revenue NPAT Net Profit margin

1% • Real estate development continues to be the most

important business activity of our company, leading in both
Real estate development revenue and profit.
6%
• Profitability is expected to improve, with an average
15% annual profit growth of ~ 16% thanks to receiving revenue
Traffic fee collection
from high-profit-margin real estate projects.
2020 • Other activities including traffic fee collection, construction
Construction
and commercial real estate leasing is estimated to grow
stably and contribute steadily to our total revenue.
78%
Investment property • Two subsidiaries’ business results are projected to
remain solid and contribute approx. 10%-20% of our
consolidated revenue.
23
Profitability forecast (in the event that this secondary offering is successful)

93

12% 12% 12% 12% 12% In the coming years, we commit to keep the
59
ratio of dividend payout relative to
charter capital stable, 10% at a minimum.

10% 10%

2019 2020F 2021F 2022F 2023F 2024F 2025F

Charter captial (USD million) Dividend payout ratio

15.52%
13.77% 13.70% 13.87% 14.37%
13.49% We plan to use the raised capital effectively
and aims at growing its net profit after tax
every year as well as increasing the future
9.03%
EPS and ROE at least to the same level as
10.09 before the issuance.
8.52 9.12
8.03 7.64 8.16
4.84

2019 2020F 2021F 2022F 2023F 2024F 2025F

EPS (Cent) ROE
24
PLANNED USE OF THE
RAISED CAPITAL

25
SUNFLOWER VILLAS
PROJECT 26
Project overview Progress
In the center of Binh Duong New City
2011 – 2019 ✓ ~180 VND billion has been invested for
~8 ha, ~100 detached and semi-detached high-end construction.
villas (with swimming pool and garden) ✓ 39 villas have been sold.

~1,180 VND billion

2020 – 2025 ✓ An estimated of 1,000 VND billion more is
needed to complete the project.
Construction on progress and partly sold
✓ Share of the raised capital used for this
project: 570 VND billion
Illustration

Profitability

Projected revenue 1.551 VND billion

Projected profit 203 VND billion
NPV 24 VND billion
IRR ~18%
Payback period 13 years

Location of
the project
27
Transportation links Investment highlights

Easy assess to Ho Chi Minh City Center

which is only 30 km away and linked to
the project by major road networks

The project is located in the center of

Binh Duong New City with a set of
amenities nearby such as green
space, international hospitals…

Elegant design in harmony with natural

3km My Phuoc - Tan Van Expressway landscape, targeted at high-end
5km Binh Duong Avenue (National Route 13) customers
30km Tan Son Nhat International Airport
60km Long Thanh International Airport
28
IJC AROMA APARTMENT
PROJECT
29
Project overview Progress
In the center of Binh Duong New City (adjacent to
Sunflower Villas) 2010 – 2014 ✓ ~426 VND billion has been invested and the
4 blocks of residential apartments (A-B-C-D) and 1 construction of Block A & B were finished.
block for commercial use (E), in total ~500 flats, 1,500 ✓ 332 flats have been sold.
m2 of commercial space and 56 kiosks for leasing

~900 VND billion

2020 – 2024 ✓ An estimated of 474 VND billion more is
needed to complete Block C, D & E.
Construction on progress and partly sold
✓ Share of the raised capital used for this
Illustration project: 230 VND billion

Profitability

Projected revenue 1,106 VND billion

Projected profit 83 VND billion
NPV 16 VND billion
IRR ~43%
Payback period 13 years

30
Location advantages Investment highlights

The real estate market in Binh Duong

has been growing, especially in the area
of Binh Duong New City, thanks to high
urbanization rate and demand for
residential real estate.

The infrastructure in the area is evenly

developed, modern and connected.

CENTRAL PARK MAPLE TREE HIGHTECH PARK

300m 1.3km

SUNFLOWER VILLAS PROJECT BECAMEX HOTEL NEWCITY This project, along with the Sunflower
1.3km
300m
Villas project, create a convenient and
CULTURAL CENTER
FINANCIAL CENTER
1km 1.5km first-rate residential area targeted to
INTERNATIONAL HOSPITAL
customers with middle-to-high income.
ADMINISTRATIVE CENTER
1km 3km

EASTERN INTERNATIONAL SHOPPING COMPLEX

UNIVERSITY 3km
1km
31