1.

Long-term loans:

Defination: Term loan - Debt originally scheduled for repayment in more than 1
year, but generally in less than 10 years.

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(millions VND) (millions VND) (millions VND)
Lease debt 460.632 430.262 315.844
Long-term
66.029 75.636 167.422
borrowings
Deferred tax
287.982 316.335 345.559
liabilities
Other long-term
146.486 179.369 209.954
payables
Total long-term
961.129 1.001.602 1.038.779
loans
(Sources: Consolidated financial statements in 2020)
Table 1: Long-term loans situation of Vietnam Dairy Products Joint Stock
Company from 2020 to 2022.
According to statistics given on the financial statements of Vietnam Dairy
Products Joint Stock Company in 2020, 2021 and 2022. It can be seen that
Vinamilk's long-term loans in 2021 has decreased by VND 37,177 million
compared to 2020, equivalent to a decrease of 3.58%. In 2022, this business will
continue to record a decrease in debt to VND 961,126 million.

Unit: Percentage

60

50 47.93
42.96
40
33.26 31.58
30.4 29.96
30

20

10

0
2020 2021 2022

Lease debt Deferred tax liabilities

Lease debt and deferred tax liabilites are the two factors that account for the
largest proportion of the total long-term loans of the enterprise. In 2020,
Vinamilk has a rather high deferred tax liabilities, making up 33.26% of the
total debts, in comparison with 30.4% of lease debt . However, in 2021 and
2022, the tax will be reduced to 31.58% and 29.96%, while lease debt will
increase to 42.96% and 47.93% respectively.

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(VND) (VND) (VND)
HSBC Bank USA 84.894.075.000 96.264.000.000 117.351.000.000
HSBC Bank
- - 70.735.156.050
USA(*)
Individuals - - 44.529.834
(Sources: Consolidated financial statements in 2020,2021&2022)
(*) This borrowings were unsecured.
Table 2: Statistics of outstanding long-term borrowings of Vietnam Dairy
Products Joint Stock Company from 2020 to 2022.

In 2020, Vinamilk had long-term borrowings of up to VND 188,131 millions

from HSBC Bank USA and individuals, and current portion of long-term
borrowings of VND 20.709 million. In which, the enterprise signed a loan
contract with HSBC bank USA with the amount of VND 117,351 million. This
debt was matured in 2022 and was secured by assets with carrying amount of
VND 896,805 million. In addition, this business also had an unsecured VND
70,735 million loan and more than VND 44 million from individuals. By 2021,
the secured borrowing from HSBC Bank USA has been reced to VND 96,264
million. In 2022, Vinamilk has fully paid off debt from individuals and
unsecured borrowing from HSBC Bank USA.

2. Lease financing

Defination: Lease – a contract under which one party, the lessor (owner) of an
asset, agrees to grant the use of that asset to another, the lease, in exchange for
periodic rental payments.

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(VND) (VND) (VND)
Within one year 70.716.169.179 33.407.705.100 36.565.727.595
Within two to five
219.329.158.109 97.744.848.655 93.592.232.777
years
More than five
788.339.947.001 529.551.568.253 510.017.011.707
years
1.078.385.274.289 660.704.122.008 640.174.972.079
(Sources: Consolidated financial statements in 2020,2021&2022)
 Table 3: Statistics of lease payments of Vietnam Dairy Products Joint Stock
Company from 2020 to 2022.

In the two years 2020 and 2021, in the context of the economy being affected by
the Covid 19 pandemic, the business activities of most enterprises are affected,
including Vinamilk. Therefore, the expense of leases accounts for VND
640,174 million (2020) and VND 660,707 million (2021). The period of 2022 is
the time when the business was recovering economically after 2 years of the
Covid pandemic, so lease financing was up to more than VND 1.078 million,
double the expense in 2021. During 3 years, Vinamilk's lease expenses mainly
focused on lease contracts of 5 years or more.
In general, leases have helped the enterprise reduce some of the financial
burden. The company can use assets without spending a large amount of money
to purchase, which helps them increase working capital, maintain and improve
production and business activities.

3. Issue common stock

Defination: Preferred Stock – a type of stock that promises a (ussally) fixed

dividend, but at the discresion of the board of directions.

a) Stocks

On January 19, 2006, Vietnam Dairy Products Joint Stock Company - Vinamilk
listed VNM stock symbol at Ho Chi Minh City Stock Exchange. This is the first
launch of Vinamilk shares on the stock market after two years of implementing
the joint stock company management model and achieving many great
successes in production and business.
General information about the stock symbol:
- Stock symbol: VNM
- Stock exchange: HOSE
- Industry: the food process

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Numbe Number Number
r of VND of VND of VND
shares shares shares
Authorised
2.089.9 20.899.55 2.089.9 20.899.55 2.089.9 20.899.55
share
55.445 4.450.000 55.445 4.450.000 55.445 4.450.000
capital
Issued 2.089.9 20.899.55 2.089.9 20.899.55 2.089.9 20.899.55
shares 55.445 4.450.000 55.445 4.450.000 55.445 4.450.000
(ordinary
shares)
Shares
2.089.9 20.899.55 2.089.9 20.899.55 2.089.6 20.887.90
currently in
55.445 4.450.000 55.445 4.450.000 45.346 9.493.880
circulation
(Sources: Consolidated financial statements in 2020,2021&2022)
Table 4: Statistics of stocks issued by Vietnam Dairy Products Joint Stock
Company from 2020 to 2022.

From 2020 to 2022, Vinamilk issues 2,089,055,445 common shares per year.
All ordinary shares have a par value of 10.000VND. Each share is entitled to
one vote at meetings of the Comapany.
In 2022, VNM stock of Vietnam Dairy Products Joint Stock Company is a
bright spot of the stock market. On November 8, 2022, VNM stock recorded an
increase of 18% in the past 1 month, while the stock market continuously
dropped sharply. The increase of this stock was recorded by positive business
results in the third quarter as well as the first 9 months of the year. However,
from the beginning of 2023 to April, the stock price has decreased by 7.32%
and the highest price recorded was VND81,300 per share on January 19.

b) Dividends

In 2022, Vinamilk has conducted 2 times dividend distribution, totaling 29% in

cash. In August, this company made an advance of the first dividend of 2022 in
cash, at the rate of 15%, corresponding to shareholders owning each share will
receive 1,500 VND. By the end of 2022, Vinamilk will continue to pay the
second advanced distribution for the fiscal year 2022. The payout ratio is 14%,
corresponding to shareholders owning each share will receive 1,400 VND. In
which, State Capital Investment Corporation (SCIC) is the largest shareholder
when holding nearly 752.5 million shares (36% of authorized apital) receiving
more than VND 1,000 billion, F&N group owns 20 .4% of authorized capital
will receive nearly VND 600 billion and Platinum Victory fund holding 10.6%
of authorized capital will receive more than VND 300 billion in dividends.

4. Bonds

Defination: A corporate bond is a debt security issued bt a corporation and sold

to investors.

In previous years (2016 and 2017), Vinamilk's held-to-maturity investments

also included short-term and long-term bond investments. Vinamilk said that is
an investment in bonds issued by Ho Chi Minh City Development Joint Stock
Commercial Bank (HDBank) with an original maturity of 36 months from the
date of purchase. The bonds are unsecured and receive an annual interest rate of
8.075% - 8.175% (in 2017). However, from 2018 onwards, Vinamilk no longer
invests in bonds, but instead invests in short-term and long-term deposits. In
which, short-term deposits still account for the highest proportion.

31/12/ 31/12/ 31/12/2020 31/12/2019 1/1/2019

2022 2021 (VND) (VND) (VND)
Held-to-
maturity
200.000.000. 200.000.000. 500.000.000.
investments - -
000 000 000
– long-term
deposits
(Sources: Consolidated financial statements in 2020,2021&2022)
Table 5 : Long-term bank deposits of Vietnam Dairy Products Joint Stock
Company from 2019 to 2022