SSI Securities Corporation

Company Overview

Listing HSX (2007)

Ticker SSI
Established year 1999
Charter capital VND 5,100.64 bn
Market Cap (as of VND 13,300 bn
01/04/2019)
Number of employees 1,026 employees at 14 branches/transaction office

Shareholder structure as at 01/04/2019

20% Daiwa Securities Group Inc.

NDH Invest Co Ltd.

9% Saigon San Linh Real Estate Co. Ltd

62% Mr. Nguyen Duy Hung & his brothers

6%
3% Others

• Daiwa Securities Group Inc: strategic investor of SSI since 2008, with Hironori Oka - Managing Director & Asia-Pacific Regional Director of Daiwa
Capital Markets Hong Kong Ltd, also being a Board Member of SSI. SSIAM and Daiwa SMBC Capital signed a business alliance agreement to establish
and co-manage DSCAP-SSIAM since 2009

• NDH Invest Co Ltd: CEO of the company is Mr. Nguyen Duy Hung, who is also Board Chairman & CEO of SSI. Together with his own shares and those
of his brothers, Mr. Nguyen Duy Hung owns 12.23% of SSI.

• Saigon San Linh Real Estate Co Ltd: Members' Council Chairman of the company is Mr. Nguyen Hong Nam, who is also SSI’s Deputy General Manager.
Financial Overview
in VND bn
3,939 as of FY 2018

3,043 2%
5%
2,541

19% Securities Services

1,803
1,565 1,500 47% Principal Investment
1,303
1,161 Treasury
840 945
745 SSI AM
418
27% IB and Others

2014 2015 2016 2017 2018 6M2019

Revenue Net Profit

Debt Schedule as at 31/12/2018 Prudential Requirements

Interest rate per
in VND bn annum Balance
▪ As per 87/2017/TT-BTC, liquid capital ratio of
Bank overdraft 0.8 - 7%
securities firms ≥ 180%.
Short-term borrowings from banks 1.75 - 8.5% 1000%
Vietcombank 2,700
Bank Sinopac (Hong Kong) (*)
140
CTBC Bank - HCM Branch 611%
115
Techcombank 509%
3,200
SeA Bank 300 326%
Agribank 350
PG Bank 450 180%
Huong Viet Real Estate JSC (**)
210 0%
(*) Loan from Bank Sinopac (Hong Kong): revolving credit with term of 3 months, was rolled
2016 2017 2018
forward with the newest interest rate of 4.58963%. The foreign exchange risk is hedged by a
foreign currency forward contract with BIDV.
SSI's LCR Required LCR
(**) The company's borrowing from OCB was transferred ownership to Huong Viet Real Estate
JSC.
Securities Services
Revenue Breakdown Strengths
88.08 17.83%
in USD mn
15.60%

13.22%
64.29 12.31%
49.55 11.15%

42.82
34.77 2014 2015 2016 2017 2018

17.20 28.60 ▪ High and growing market shares

31.14 12.38
o Low market share at HNX because institutional investors -
19.38 23.17 SSI’s major customers are not highly interested in volatile
14.56 stocks on HNX
5.81 5.77 6.68 1.09 ▪ Many institutional and foreign customers
2016 2017 2018 6M2019
▪ Capable of arranging orders of large value
Stock depository Advisory Margin lending

Brokerage Total brokerage

▪ Margin lending:
o Highest and increasing margin lending balance among the
Trading value increasing on HSX and decreasing top-4 securities firms
on HNX o Most conservative lending/equity ratio of 0.64 in 2018, much
169,201 lower than cap ratio 2.00
in VND bn
153,868 in USD thousand
300 1.8
126,949 256.65
251.00 1.6
250
100,940 1.4
82,417 200 1.2
161.00
1
63,003 150
0.8
100 0.6
0.7 0.64
18,360 0.4
12,928 14,301 50 0.5
0.2
0 0
2016 2017 2018 2016 2017 2018
SSI Margin lending balance HCM Margin lending balance

HSX HNX Account growth VCI Margin lending balance VND Margin lending balance
SSI Margin lending/equity ratio HCM Margin lending/equity ratio
Source: Company’s Corporate Presentation, Financial Statements, State Securities
VCI Margin lending/equity ratio VND Margin lending/equity ratio
Commission of Vietnam
Principal Investment
Safe Investment Strategy
▪ As a result of unpredictable market, SSI has been increasing investments in associates, bonds and deposits, and decreasing investments in
stocks.

682,773
in USD thousand 150,545 142,741
135,717
9,129
502,035 26,058
524
371,835
123,134
126,451
101,896
236,118 351,490 540,032

135,717 150,545 142,741 6,880 16,211 10,912

2016 2017 2018 2016 2017 2018

Stocks & bonds Deposits Total principal investment Stock revaluation Stock sales
Bond sales Derivatives sales
Dividend & interest income Stocks & bonds

Charter capital Ownership interest Ownership interest Ownership interest

Ticker Company name Sector (VND mn) 2014 2015-2017 2018
1 PAN The Pan Group JSC Agriculture 1,176,936 20.11% 20.02% 19.93%
2 PDN Dong Nai Port JSC Seaport operations 123,480 20.01% 20.00% -

3 VFG Viet Nam Fumigation JSC Agricultural materials 237,682 20.06% 20.00% -
4 GIL Gilimex Co Textile 139,246 20.15% -

5 SSC Southern Seed JSC Agricultural materials 149,924 20.13% -

6 LAF LAFOOCO Agricultural trading 147,280 20.02% -
7 ELC Elcom Corp Telecommunications 379,399 20.01% -
8 TMS Transimex Corp Logistics 230,738 20.00% -
9 BBC Bibica Corp Confectionary 15,421 20.00% -
Principal Investment
SSI AM - unique competitive advantage of SSI SSI AM’s Revenue
▪ Most SSI’s investments have been transferred to SSIAM,
enabling specialization of investment capabilities.
SSI Asset Management Co Ltd (SSIAM)
in VND bn 1060.8 1092.9
933.98
861.98
735.39
Open-ended funds Member funds ETF fund

Private equity
Equity investment fund
investment fund ETF SSIAM VNX50
SSI-SCA
DAIWA-SSIAM II

Special investment fund

Investment member fund 2014 2015 2016 2017 2018
SSIAM SIF – Vietnam Active
SSI IMF
Value Portfolio
Asset Management
Equity investment fund
SSIAM UCITS - Vietnam Value
Income & Growth Fund 7%
Fund Management
Bond investment fund 25% Total AUM of
SSIBF Institutional Managed
VND 5,573 bn
Account

▪ Thanks to SSI's 100% ownership in SSIAM, SSI is not restricted by 68% Private Wealth
Management
investment regulations, capable of turning strategic investments into
their own associates.
o SSI does not have to make provisions as a result of the reduction
in stock prices; SSI only records Original Price in Separate ▪ Further diversification of investment product distribution
Financial Statements and Owner's Equity in Consolidated channels
Financial Statements.
▪ Successful deployment of SSIAM On The Go (SSIAM OTG)
trading platform
o SSI has stable financial income under the forms of net income
from associates, dividend payments and sales of investments,
▪ Total asset under management was VND 5,573 billion at the
without subjection to fluctuations in stock prices.
end of 2018
Investment Banking
Services Revenue Breakdown
• Equitization/IPO in USD thousand 5,586
4,966
4,811 101
• Listing advisory 311
507
• Capital raising services (ECM/DCM)
5,485
4,304 4,655
• Financial restructuring

• M&A

• Business valuation 2016 2017 2018

Corporate finance Underwriting & agency
Total investment banking

Major Deals

Deal size: USD 94 mn Deal size: USD 1.35 bn Deal size: USD 35 mn Deal size: USD 742 mn
Private placement & listing Secondary offering & listing Private placement IPO

Deal size: USD 120 mn Deal size: USD 48 mn Deal size: USD 300 mn Deal size: USD 400 mn
Private offering Treasury offering Share offering Divestment advisory
Financial Summary
in VND bn 2016 2017 2018 6M2019 in VND bn 2016 2017 2018 6M2019

Operating Current assets 12,664 17,228 22,270 25,347

Income 2,446 2,898 3,673 1,480
Operating In which: Financial
Expenses 989 1,137 1,651 508 assets 12,565 17,092 22,238 25,294

Financial Income
95 145 266 19 Non-current assets 1,343 1,536 1,555 1,894
Financial
Expenses 269 345 547 382
Total Assets 14,007 18,764 23,826 27,241
General &
Administrative
141 168 174 193
Expenses Current liabilities 5,842 9,354 13,469 16,534
Operating Profit
1,144 1,405 1,623 507 In which: ST debt 4,819 8,504 8,504 11,193
Other Operating
Profit 3 13 56 3 Non-current
liabilities 258 794 1,201 1,219
Profit Before Tax
1,144 1,405 1,623 510 Total Liabilities 6,100 10,148 14,670 17,753
Profit After Tax
945 1,161 1,303 418 Owner's Equity 7,907 8,616 9,156 9,488