HA NOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

----------oOo----------

LAM SON SUGAR

JOINT STOCK CORPORATION

Date: Dec 16, 2011

Lam Son Sugar JSC

2011

ACKNOWLEDGEMENT

In the process of carrying out this report, we highly appreciate the contributions and valuable
ideas of many people. Without their help, we could not have completed this report.
Our great gratitude firstly goes to Ms Do Van Anh our lecturer and Mr. Chu Huy Anh our tutor of Financial Statement Analysis for their dedication and enthusiasm in teaching and
guiding us in every class. All the interesting examples and precious instructions they provided
have helped us very much in finishing our report.

We also thank our tutorial-mates for all their meaningful help and timely exchange of
information, as well as knowledge relating to the issue in our report.

Finally, we owe a great deal to the authors of many websites and books, especially the authors of
our current text-book Financial Statement Analysis- Clyde P.Stickney, Paul Richard Brown and
James M.Wahlen, for providing us fundamental concepts and techniques which are really
necessary for the completion of this report.

Lam Son Sugar JSC

2011

ABSTRACT
After becoming a member of the biggest commercial organization WTO, Viet Nam has been
expecting to grow in not only economic field but also cultural aspect at the high pace. Every
year, Vietnam receives many projects and plans from thousands of investors inside and outside
to invest in almost fields in Vietnam. Associating with these investments, Vietnamese stock
market has been experiencing a rapid development as well as attracts a huge amount of capital
that flows from foreign and domestic ones (more than 600 firms that quoted in Vietnamese stock
market and a large number of companies intend to join). Being one of the most developing
industries in Vietnam, sugar-cane industry also makes substantial contribution to Vietnams
GDP every year and provides a lot of employment opportunities for local residents. So, Lam Son
sugar joint stock Corporation is not an exception. Over the period of thirty-one years, the firm
builds up and promotes its image successfully by offering variety of products to customers
(sugar, alcoholic and non-alcoholic beverage, CO2 products and other agricultural products).
Throughout the deep analysis created by accurate figures as well as objective evaluations, this
report is able to provides the overall picture of Lam Son financial condition, future forecasting,
and clear recommendations to all concerned investors

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2011

TABLE OF CONTENTS
ACKNOWLEDGEMENT............................................................................................................ 2
ABSTRACT ................................................................................................................................... 3
LASUCO FINANCIAL ANALYSIS ........................................................................................... 6
Background information ................................................................................................................ 6

I.
II.

Industry analysis ......................................................................................................................... 7

1.

Buyer bargaining power .............................................................................................................. 7

2.

Supplier bargaining power .......................................................................................................... 7

3.

Rivalry among existing firms ....................................................................................................... 7

4.

Threat of new entrants ................................................................................................................. 8

5.

Threat of substitutes ..................................................................................................................... 9

III.

Company strategy analysis......................................................................................................... 9

1.

The nature of products ................................................................................................................. 9

2.

Degree of integration within the value chain............................................................................ 10

3.

Degree of Geographical Diversification .................................................................................... 10

4.

Degree of industrial diversification ........................................................................................... 11

IV.

Accounting analysis .................................................................................................................. 12

1.

Inventory..................................................................................................................................... 12

2.

Recognition of revenues ............................................................................................................ 12

3.

Fixed assets ................................................................................................................................ 12

4.

Investment in securities.............................................................................................................. 13

* Quality of financial reporting ........................................................................................................... 13

Financial analysis .......................................................................................................................... 13

V.
1.

Liqudity ananlysis ...................................................................................................................... 13

2.

Solvency analysis ....................................................................................................................... 14

3.

Profitability analysis .................................................................................................................. 15

4.

Cash flows analysis .................................................................................................................... 17

VI.

Valuation.................................................................................................................................... 18

1.

Income statement ....................................................................................................................... 18

2.

Balance sheet.............................................................................................................................. 20

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2011

3.

Statement of cash flow ............................................................................................................... 24

4.

Cash flow based valuation ......................................................................................................... 25

VII.

Conclusion and recommendations ........................................................................................... 26

References ............................................................................................................................................... 27

Appendices ................................................................................................................................... 28

Lam Son Sugar JSC

2011

LASUCO FINANCIAL ANALYSIS

Being one of the largest sugar enterprises in Vietnam, Lam Son has been providing a thousand of
tons of sugar as well as other sugar-related products (especially, the plan to build electric factory
produce electricity by using megass in Lam Son town, Thanh Hoa province) in Vietnamese
market each year. In addition, the corporation is one of 1000 the most considerable taxcontribution enterprises in Vietnam. Over thirty year period of existing and developing
(established in 1980), Lam Son sugar joint stock enterprise always tries to accomplish their own
stated visions and missions: keeping the high position in Vietnam sugar industry as well as
becoming strong economic group and building up and enhancing Lam Son as powerful image
inside as well as outside Vietnam.
This report presents not only how Lam Son applies its own strategies to retain its competitive
advantages but also analyzes its financial performance with detailed analysis of Lam Sons risk
and profitability profiles. Then, the forecast of the companys financial statement next year will
be conducted to determine value of the firms equity. Last but not least, suggesting several
recommendations about investment decision for concerned investors
I.

Background information

Lam Son sugar joint stock company, LASUCO the former is the Lam Son Sugar Factory,
established in 1980, officially entered operation in 1986, with the sugar plant, the ethanol plant
invested well equipment and modern technology. The brand Lasuco is famous in the domestic
market and abroad, is complimented by the State with a lot of the noble emulation appellation
and other national and international major awards. Date 09/01/2008: The Company was listed on
the Ho Chi Minh stock exchange with transaction code LSS, the charter capital is 300 billion,
total assets is over 1,200 billion, equity is nearly 800 billion. LSS has a stable material area from
15,000 to 20,000 hectares, 1,200 hectares of land ownership, which has two sugar plants with
total capacity of 7,000 tons per day, two ethanol plants with capacity of 27 million liters per year
that is the biggest in Vietnam. The staffs, workers are over a thousand people, a staff of
engineers accounted for 14.90%, 100% of trained workers, over 50% are skilled
workers. LASUCO intends to form a strong economic corporation, expands business, and
diversifies products and line of business with the business philosophy of "Bringing the gift to
everyone is the happiness of Lasuco". The product is cane - sugar - ethanol electric. The
6

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products of Lasuco are voted by consumers: the high quality Vietnamese products for many
consecutive years. Consistently awarded the Golden Grain Cotton, Lasuco, with great honor, is
one of 10 famous companies in Vietnam voted by the national award council and award the
Vietnam Golden Globe.
II.

Industry analysis

Within the availability of information and usefulness of the model, we chose the Posters Five
Forces to analyze the sugar industry.
1.

Buyer bargaining power

As a non-differentiated product with a relative low cost, representing a small portion of
income, domestic consumers seem quite insensitive to any change in sugar price. Sugar
price fluctuated frequently in recent year but in general the price was remarkable increased
. Though the sugar price has been kept reaching higher price, consumption level in
Vietnam still experienced quite high growth rate, about 5.1% per year from 1999 to 2009
on average. In 2010, sugar production reached 83,000 tons while the demand was about 1.2
million to 1.3 million tons, indicating a large disequilibrium between demand and supply.
Thus, it can be concluded that in this industry, the buyer bargaining power is low.

2.

Supplier bargaining power

Sugarcanes are the main component used for production, accounting for 55% to 75% of
total expense. But the sugarcane growing areas are actually small, scattered and have not
been suitably invested to match the production requirements. In addition, the supply is
greatly affected by the changes in weather in each season. As a result, sugar industry in the
country is always in severe shortage of raw materials. That is the big concern for all sugar
plants.

3.

Rivalry among existing firms

There are approximately 40 sugar manufacturing firms in Vietnamese market, but none of
them possesses a stable material supply. The competition among firms seeking for inputs
has become more intensive due to the sugar canes land was reduced recently. Besides
,competition among firms is not highly intensive cause all most firm machineries are out
of date , not catch up with new technologies , so that make the productivity is not optimal
so far . In general, the competition in Vietnam sugar industry is not as strong as that in
7

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other countries in the same region. It is due to higher production costs, attributable to 30%
higher material costs and the old production line.
4.

Threat of new entrants

In Vietnams sugar industry, there are some factors that encourage new entrants and some
discourage the potential companies. Specifically, here is an analysis about such factors and
their impacts on entrance decision.

Operating features
Firstly, sugar industry does not have a high capital intensive requirement with fixed
assets to total assets ratio for the sector is about 31.9% (Source: Rongviet securities);
the technology is also not highly specialized, which may attract new entrants. Secondly,
sugar companies debts are not considerable because of low long term debt level and low
working capital demand. Hence, the companies do not bear high borrowing costs and, as a
result, they are not affected much by the market interest rates movements.

Growth prospect
The worlds sugar industry has recovered and in the upward trend. Moreover, Vietnams
sugar production just satisfies 70% of the growing domestic demand (about 1.4 million
tons demanded in 2011). This indicates that the domestic market is still very large for
sugar companies.

Raw material
In Vietnam sugar industry, the competition in terms of raw inputs the sugar cane - is
intense. One reason is that sugar canes quality and quantity depends on the weather
conditions. In addition, the farmers are not motivated to grow sugar cane because of
unfair profit distribution and unreasonable sell and purchase contracts with sugar
companies. Consequently, the shortage of supply pushes up the input price, making the cost
of goods sold account for 70% to 80% of revenue and accordingly, shrinking profit
margins.

Government policy
Although Vietnam government makes a number of attempts to support the sugar industry,
domestic firms have some difficulties when competing with foreign ones. One reason is the
high selling price, which is due to high costs of raw material. Furthermore, under the
8

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globalization trend, from 2010, the import tax is reduced to 5% and quota is also increased.
This policy of Vietnam government leads to higher competition among domestic and
foreign sugar companies.
5.

Threat of substitutes

Substitute products
Sugar is a necessary ingredient or food for all people and no other products can replace
sugars role. Besides, other sweeteners do not receive positive perspective from customers
therefore, it can be concluded that there are no substitutes to sugar from sugar cane.

Customers propensity to price

Because sugar is a necessary product, customers sensitivity to sugar prices movements is
low.

Competition among sugar firms

LSS is one of the three largest sugar companies in Vietnam with long history and good
reputation. Although the machine and equipments in LSS are not as modern as other
companies, such as Bourbon Tay Ninh Corporation, and the productivity is not as high,
Lam Son Sugar Company has its competitive advantage thanks to greater source of raw
materials Moreover, Vietnam sugar companies also face up to competition from foreign
companies and smuggled sugar. The threat from such sources is a troublesome matter to
Vietnam sugar producers; however, up to now, the problem is somewhat negligible.

III.

Company strategy analysis

1.

The nature of products

Lasuco is pursing products differentiation strategy to maintain its leading position in
Vietnamese sugar market. The development strategy is focusing on improving and
refreshing than the main products: Sugar Alcohol Electric. Firstly, the most famous
product is Refined Sugar under the high technology production, adapt the European
quality standard and the strict requirements of some special customers such as PepsiCo,
Cocacola, Vinamilk.Especially, in the year 2004, Lasuco invested more than 10 billion
USD to build the first Alcohol in Vietnam with the latest production line under the
Algavana technology. The new investment gave Lasuco the advantage of the leader with
more than 20 billion liters of exported alcohol per year and reduced significantly the

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sugars price. Moreover, almost of Lasuco products have competitive advantage in the
domestic market, as well as in some foreign markets like France, Switzerland, the U.S
Electricity is a type of products which the company is going to invest in the near future as
the governments adjudge a reasonable for this new source of electricity. In conclusion, the
companys profit margin is high comparatively due to the differentiation in the general
strategy.
2.

Degree of integration within the value chain

Lasuco is mainly involved in the process of milling, transport and storage, shipping and
refining Sugar and its related products. In fact, the company also participating in many
activities of planning and harvesting this shows under its subsidiaries system and its
contribution in many others organizations (The appendix 1 will show the list of Lasucos
subsidiaries). Beside , Lasuco also extent the productions to some others sub products
from its production line such as electricity from the heating step under the producing
process, carbon dioxide as substance for food processing industry, shipbuilding and
engineering industry from the alcohols ferment step.
3.

Degree of Geographical Diversification

Currently, Lasuco is known as large-scale sugar enterprise in Vietnam and gets from 10%
to 12% of sugar market share in Viet Nam. Annually, its volume of production is
moderately high, about 46 tons, 50 tons and 55 tons sugar in the harvest of 2008/2009,
10

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2011

2009/2010, 2010/2011 respectively. However, its production is almost to satisfy domestic

demand and its level of export to other countries is so small as well as irregular. The
explanation for the minor level of export of Lasuco is that only 70% of domestic demand
for sugar is met and Vietnam still imports sugar from other countries. Therefore, Lam Son
is mostly used and recognized by inside customers.
Due to Lam Sons strategy of domestic diversification production, annual profit after tax
of the firm has been high (70,166 million; 158,341 million and 297,000 million in 2008;
2009; 2010 orderly). The firm is continuous to develop its technology and to expand its
operation to improve not only the volume of output but also the quality of product in eight
districts of Thanh Hoa province (for example, the company has invested about 650 billion
VND to expand productivity of the number two factory or putted nearly 300 billion to
renew the cane in Thanh Hoa and to acquire the netafin technology). Lam Son creates
effective distribution system to provides sugar to many consumers and large corporation (
Kinh Do, Pepsi, Coca Cola,Vinamilk) throughout Viet Nam, from the south to the
north.
4.

Degree of industrial diversification

As mentioned above Lasuco is the largest sugar producers in Vietnam, accounting for
8.6%. Lasuco has two sugar production lines with the total capacity ranked third in the
country. With the determination of innovation and development, breaking down of
monoculture: sugarcane, the company has focused on expanding production and business
in a multi-disciplinary, multi-professional, multi-product. Besides sugarcane, to diversify
the products the company also established three affiliated factories: factories of raw
materials, fertilizer production - providing agricultural services, agricultural processing,
and also developed new business as animal feed business, developing gasoline business
systems...
In addition to invest directly to develop production, for the last 3 years, the Lam Son
Sugar Joint Stock Company has invested into a new area: financial investment, by buying
shares of stock companies, such as: Thanh Hoa Travel, Lam Son Paper,Vien Dong
Insurance. Or contribute capital to joint ventures with some l.t.d companies such as
11

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Golden Star Lam Son Company, Thanh Lam Company and some joint stock companies in
HCM City and provinces to expand the areas of operation, production and business,
promote the formation of a corporation agriculture - industry - services - trade, including
the parent company (JSC Lam Son Sugar - Lasuco) and 19 affiliated companies,
enterprises, factories. So far the total capital of Lam Son Sugar Joint Stock Company
invests in other enterprises in and outside province up to 155 billion VND, increasing
competitiveness and integration of the company.
IV.

Accounting analysis
LSS apply the Vietnamese Accounting System and Standards issued by Vietnamese
Ministry of Finance 15/QKT on march 20,2006 fiscal year extends twenty months from
01 January to 31 December annually.
The company uses computerized accounting and all consolidated financial statements of
LSS are carried out based on the historical cost principal.

1.

Inventory
Inventory is recored at their original cost including: purchases, processing expenses and
other directly related cost to bring the inventories to the current position and
conditions.Year-end value of inventories is calculated using the average-pricing method
and accounted for using perpetual inventory system.

2.

Recognition of revenues
Revenues are recorded when they satisfy all five conditions: firstly, all risks and benefits
associated with the goods ownership are transferred to customers; secondly, the company
no longer reserves the right to hold or control goods; thirdly, revenue is determined
relatively exactly; fourthly, business have benefit from sale transaction and finally, LSS
can calculate the cost related to the delivery sale services.

3.

Fixed assets
Fixed assets are determined by deduction between the historical cost and accumulated
depreciation. Tangible fixed assets are depreciated under straight-line method over their
estimated useful life. Intangible ones are divided into land use right and computer
software. Land use right is amortized for time of using land which is determined by
competent agencies. Computer software is amortized for five years.
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4.

2011

Investment in securities
Investments are recorded at their original costs. If an investment is liquidated, the
difference between net liquid values and book values are recorded into income or expense
during the year.

* Quality of financial reporting

Being audited by Deloitte LLP, Lasucos financial statements are considered to be completely
complied with the Vietnam Accounting Standard (VAS), Vietnam Accounting System and other
Accounting regulations in Vietnam. With the auditors opinion of being unqualified, the
information and figure on the annual report of Lam Son Sugar Joint Stock Company are
absolutely reliable, giving a true and fair view about the financial situation as well as profit result
and cash flow situation for the fiscal years ended December 31.
V.

Financial analysis

1.

Liqudity ananlysis

Current ratio
Quick ratio
CFO to current liabilities
Receivables turnover

Days receivables outstanding

Inventory turnover
Days inventory held
A/P turnover
Days A/P outstanding
Revenue to cash ratio
Days revenues held in cash
Current ratio and quick ratio

Lam Son
2008
2009
1.8
2.2
0.5
1.2
0.1
0.8
22.1
26.7
16.5
8.3
43.9
13.5
27.0
13.9
26.3

13.7
7.2
50.9
14.5
25.2
11.6
31.6

2010
4.1
2.0
0.5
27.2

Bien Hoa
2008
2009
2.5
1.6
0.6
0.5
-0.5
-0.1
20.0
18.5

2010
1.5
0.3
0.4
32.2

13.4
6.3
58.1
12.1
30.2
4.3
85.0

18.3
6.1
59.9
35.6
10.3
48.8
7.5

11.3
7.0
52.0
53.7
6.8
27.7
13.2

19.7
5.6
65.1
43.6
8.4
22.5
16.2

Both current ratio and quick ratio of LSS increased through 2008 to 2010 while its
competitor, BHS, was in contrast direction. Especially, in 2010, there was a dramatic
increase in both two ratios of LSS due to high cash holding and high inventory in
warehouse. So, LSS can deal with liability in short term.

CFO to current liability:

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2011

This ratio of LSS was high than 0.4, the benchmark for a healthy company in 2009 and
2010. Although, in 2008 CFO to current liability of Lam Son corporation was only 0.125
(< 0.4) but it was still better than its close competitor with a negative result. The company
had sufficient cash to pay off the short term debt

Net working capital day:

Lasuco had Days receivables outstanding higher than Days A/P outstanding, meaning th
company can use cash from receivables to pay off the supplier without using debt from
the outside.
In general, LSS has good short term liquidity position.

2.

Solvency analysis

2008
22.61
%

Lam Son
2009
2010
31.81 23.19
%
%

Avg
25.87
%

Liabilities to
shareholders equity ratio

29.21
%

46.66
%

30.18
%

Long-term debt to longterm capital ratio

7.42%

6.33%

Long-term debt to
shareholders equity ratio

8.02%

Interest coverage ratio

Operating cash flow to
total liabilities ratio

Ratios
Liabilities to assets ratio

2008
44.66
%

Bien Hoa
2009 2010
51.56 51.01
%
%

Avg
49.08
%

35.35
%

80.69
%

106.4
6%

104.1
4%

97.09
%

5.30%

6.35
%

32.07
%

22.49
%

18.73
%

24.43
%

6.76%

5.59%

6.79
%

47.22
%

29.02
%

23.04
%

33.09
%

14.87

14.72

41.76

23.78

-0.56

8.19

4.97

4.2

9.03%

59.35
%

42.59
%

36.99
%

4.73%

4.24%

29.96
%

10.15
%

Debt ratios
From 2008 to 2010, LSS do not have the sign of long-term solvency risk. The long-term
debt ratios of LSS are on the trend of decreasing gradually during this period. In 2008,
the total long-term debt is 8.02% to shareholders equity, but in 2010, this figure has
decreased by 2.43% to 5.59%. Meanwhile, the liabilities to assets ratio of Bien Hoa
Company increase from 44.66% to 51.01%. This shows that Lam Son Company recover
very fast from financial crisis 2008. Moreover, business activities of LSS make profit for
the company so they can amortize the loans. It is said that Lam Son Company can handle
on their debts well and be active in finance.

Interest coverage ratio

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2011

Lam Son Companys profitability increase during three-year period while debt level
decrease, resulting in a rapid increasing interest coverage ratio. For only two years, this
ratio has gone up three times from 14.87 to 41.76 so that LSS exhibited low long-term
solvency risk.

Operating cash flow to total liabilities ratio

The company has a lot of difficulties in 2008: financial crisis, high inflation or tight
monetary policy of central bank and the companys provision for bad debts is a huge
amount (80.3 billion VND), so operating cash flow of company is very low. However, in
the next two years, the company can generate the sufficient cash flow to serve debts.
Thus, LSS appears to have low long-term solvency risk.
In conclusion, the debt, interest coverage and operating cash flow ratios indicate that LSS
exhibits low long-term solvency risk from 2008 to 2010. In comparison with Bien Hoa
company, a weighted competitor, they have to face up with high long-term solvency risk.

3.

Profitability analysis

ROA
Lam Son

ROA
Profit margin
for ROA
Asset Turnover

Bien Hoa

2008

2009

2010

2008

2009

2010

9.17%

17.55%

19.94%

-3.55%

19.00%

18.74%

7.53%

15.93%

23.09%

-2.84%

11.83%

8.87%

121.92%

110.19%

86.34%

124.96% 160.63% 211.32%

From the chart it is evident that the ability of LSS to generate earnings from its asset was
stable, compared to that of its competitor, BHS. This may be explained by the size and
stage of the two corporations. With VND 2,000 billion higher in charter capital, attributed
to the earlier growth of a younger company, LSS can probably take advantage of
economies of scale in its productions.
For analysis of Lasuco in depth, its ROA demonstrated an upward trend over the 3-year
period, especially in 2009 when the figure nearly doubled 2008s. Looking closely at the

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Lam Son Sugar JSC

2011

two components of ROA, it can be seen clearly that although asset turnover slightly
decreased, the sharp rises in profit margin for ROA saved the day.
Profit margin increased as a result of the rise in interest revenue and the remarkable
decrease in cost of goods sold and financial charges, which dominated the increase in
income tax and selling & administrative expense, all in percentage relative to sales. This
demonstrates the efficiency in cutting costs of the Company. On the other hand, the
increases of approximately 2% per year in selling & administrative expense reflect the
ineffectiveness in LSSs management.
2008

2009

2010

Sales

100%

100%

100%

Interest revenue

2.38%

3.09%

3.10%

Financial charges

8.71%

1.37%

2.11%

Cost of Goods Sold

81.52%

79.32%

64.28%

Income Tax

1.54%

4.46%

7.03%

Selling and Administrative

4.29%

6.44%

8.02%

Account Receivable Turnover

6.8

6.4

4.5

Inventory Turnover

8.3

7.2

6.3

Fixed Asset Turnover

4.3

4.8

6.2

In terms of Asset Turnover, the increase in Receivable Turnover shows that it took the
Company a longer time to collect its cash, from 54 to 81 days. LSS also sold and
replaced its inventories more slowly, which is, together with the higher Fixed Asset
Turnover, possibly predicted a poor near-term outlook for Lasucos products.

ROCE
Overall, ROCE exceeded ROA in the three years, proving the ability of LSS to generate
excess return to its common shareholders. Although the differences between ROCE and
ROA of BSJC were higher than LSSs, LSS seemed to perform better at trading on equity
due to its stability.
Lam Son
16

Bien Hoa

Lam Son Sugar JSC

2011

2008

2009

2010

2008

2009

2010

ROCE

12.3%

25.7%

32.2%

-12.2%

31.6%

31.5%

Profit margin for ROCE

6.4%

14.9%

22.5%

-5.5%

10.1%

7.3%

Capital Structure Leverage

156.2%

146.8% 135.9% 178.2% 195.2% 205.4%

The increasing ROCE of Lam Son resulted from the net effect of a distinct rise in profit
margin for ROCE and a marginal fall in Capital Structure Leverage, whereas Bien Hoas
leverage went up during the period, indicating a higher financial risk during recession,
like the case of 2008.
Regarding the analysis of LSS, the on-the-rise profit margin for ROA and reduced
interest expense would account for the upward trend profit margin for ROCE. The fall in
leverage was due to excess equity from share issuances and earnings retention after
subtracting dividends (see appendix). Leverage still enabled LSSs common shareholders
to benefit, yet the decreasing Capital Structure Leverage moderated the positive effects.
In short, LSS has positive prospects in terms of profitability.
4.

Cash flows analysis

During the period 2008-2010 the cash flows generated from operating activities were
positive even in the financial crisis in 2008. In 2008 cash flow from operating activities
declined 3 folds compare with that in 2007, company paid off a significant amount for
financial expense. In 2009 the operating doubled the amount of net income, because of a
large deduction of account receivable, inventories, income tax and the increase in account
payable. In contrast with 2009, 2010 witnessed a reverse direction of operating cash flow;
account receivable, prepaid expense, income tax simultaneously rocketed, while account
payable also rocked in the reverse direction. As the result, operating cash flow decreased
but the amount was not considerable due to net profit from operating activities was very
large.
Although financial crisis affects the business of firm but company still acquired a large
amount of fixed assets, especially in 2010. Cash repayment to loan, purchase liabilities
significantly declined in 2008 and kept that direction in 2 years after. In all 4 years, the

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2011

company suffered losses in investing; means it needed more cash to buy more equipment
and expand business. As a result, operating cash flows were smaller than net income.
In terms of financing activities, payment to loans and dividend to shareholders always
kept as a huge amount during the period. On the other hand the investing activities still
took a high percentage in total capital expenditure, cash flow from operating was not
sufficient to meet that demand. As the result, company issued new shares to keep that
growth. To conclude, Lam Son Sugar Corporation is a maturing company so its financial
statements illustrated well that fact.
VI.

Valuation

1.

Income statement

Sales
LSS experienced a fluctuated sales growth from 2008 to 2009 with 18.78% increase in
2008 and 2.84% decrease in 2009 due to financial crisis. Sales revenue in 2010 increases
21.7 % comparing to 2009 due to output and price, however increase in price plays the
main role. As consumer tastes change with wealth, sugar will be a proportionately large
beneficiary. Over the last 5 years domestic sugar demand has out passed supply. Demand
has registered a 5 year average growth of 3.8% while domestic supply has only grown by
2.4% per year creating a gap of 40000 tons of sugar per year that causes of increase in
sugar output. With the continuing increase in both output and sugar price, sales of LSS in
2011 is expected to increase 23.86 %. In 2012 company plans to upgrade the existing
plants number 2 in the modern factory, operating more efficiently, with the cooperation
of one of the best suppliers of processing equipment in South Africa. Estimating sugar
output of LSS is up to 40%, 93000 tons per year. Thus, it is assumed that sales growth
rate will strongly increase about 24.15 %, 24.67% and 22.15% respectively from 2012 to
2014.

Deductions
The deductions from sales are fractional in three years. Even in 2010 the deduction is 0%
of sale. This is assumed to remain unchanged to be 0% of sales in the future.

Cost of goods sold

18

Lam Son Sugar JSC

2011

In 3 years, the cost of goods sold to sales had an average of 75%, however, the
companys strategy to invest more in the input resources in order to make it more active
in input materials will likely to help company achieve a small decrease in this expense
percentage. Assume that the cost of goods sold to sales percentage will average 74% for
year 2011 to 2014.

Financial income
As the notes in the prospectus of the company over 3 years, companys financial income
is unrelated to the sales and come from investing activities such as: interest on deferred
payments from customers and advance payment for sellers, dividends and profits
received and so on. The domestic economy as well as the world one is assumed to
recover and expected stable in long run. Thus, assume that financial income will be
42.3% of average short term and average long term investment between year 2011 and
2014 as the average of 3 previous years.

Financial expense
These expenses are approximately 4.56% of average total liabilities over three years. So
the average interest on all debt financing is nearly 4.56%. We assume the average interest
bearing debt will be the same through 2011-2014 (4.56%)

The selling, general and administration expense

Over three year, in average selling expense is nearly 1.76% of sale, it is expected to
stable in the next years.
In 2008, the administration expense is account for only 1.74% sale but it raise sharply in
2009 and 2010(4.66%, 6.47% respectively) due to invest in fund of developing scientific
and technology. Assume that these proportions of administration to sale will increase to
6.50%, 6.66%, 6.7% and 6.78% from 2011 to 2014 respectively.

Other income and expenses

19

Lam Son Sugar JSC

2011

These income and expenses are about 1.91% and 0.72% of sale respectively during the
last 3 years. We assume that other income and expenses will continue at this historical
data.

Corporate income tax

LSSs current corporate income tax and deferred corporate taxes has changed in recent
years. Assume current corporate income taxes continue at average rate of 23.21% net
profit before tax and deferred corporate taxes continue at 0.17% of net profit before tax.

2.

Balance sheet

Cash and cash equivalent

The cash account of the company presented a slight fluctuation in the past and was tend
to grow in the next period of time. Due to a stable increase in sale, company may have
more cash available before using them in some purpose of investment and new
production projects in the potential years of 2012, 2013, 2014 which leads to a small
downward change in companys cash account. The industry depends on some
uncontrollable natural factors, so, as the result, it holds a big percentage of cash per
assets. For the projecting goal, we assume the cash increase strongly in 2011 and then
gain a downward trend in the next 3 years.

Short term investment

The two items in short term investment were calculated in percentage of total assets to
analysis the changes and run the forecast methods. While the investment part shows an
unstable line of direction, the provision for under right of short term investment is quite
stable and stays in low level. For liquidity purpose, company prefers using cash and
avoids risk of holding securities or short term investments, so that the amount of cash is
much bigger than other substitute liquid asset.
We assume the size of these assets will stabilize in the next 5 years and each year stays at
the average rate of the last 4 years before it. The method is expected to stabilize the rate
and also reflect the view from updated historical data. There is a consistence between 2

20

Lam Son Sugar JSC

2011

divided accounts in the big account so as the forecasted investment increase, the
forecasted provision for it also goes up to prevent any risk.

Short term receivables

The sale revenue is expected to increase with a higher demand and bigger market also
leads to an extremely rise in all the receivable accounts. With trade receivable, historical
data expressed a quite stable turnover rate (around 14 days) in some recent years; we
assume this to be on going for the next 5 years with an average method for updated 4
year- data.
Advance to supplier is considered with a positive relationship to the sale activities. The
company may give advance to their supplier for framing and harvesting to strengthen the
source of input and suppliers relationship.
The provision for doubtful debt is forecasted to remain at around the range of 0.07 0.08
% of total assets, the level at which it stood for the last 4 years. On the other hand, other
receivable asset is also mentioned as a total assets base calculated item with the average
rate of historical updated from the last four years.

Inventories
The nature of product in a high level of demand market leads the inventories turnover
rate is high and stable (approximately 7 times, or near 50 days) in 4 historical years in the
analysis. Because of sale growth, the necessary of the product, and the nature of
producing process, company can probably maintain its inventory turnover for the 5 years
as above 50 days.
Provision for devaluation of inventories for next five years is keeping at 0 in the pro-fo
ma as result of lacking sugar producer in domestic market and some of companys plan to
extend business in near future.

Other current assets

Other current assets of LSS include short-term prepaid expenses, VAT to be deducted,
taxes and other receivables from State and other current assets. Assume that short-term
21

Lam Son Sugar JSC

2011

prepaid expenses and other current assets will remain at average level of 1.2% and
12.00% respectively. VAT to be deducted is VAT on input material purchases so it has a
positive relationship with purchases. In addition, tax-related accounts tend to have the
same rate as 2010s one. Thus, assume VAT to be deducted will be 0.05% and taxes and
other receivables from State will be 0% of total assets

Fixed assets
Fixed assets include 3 components: tangible fixed assets, intangible fixed assets and
construction in progress. LSS is a mature company; we assume that from 2011 to 2014,
in each year the company spend 3% of total revenue to invest in intangible fixed assets.
Furthermore, we suppose that intangible fixed assets and accumulated depreciation for
them will account for 0.2% and 0.15% of total assets respectively. In 2010, the company
has a lot of plans to run sugar and alcohol factories so we assume that expenses for
construction in progress increase to 8.56% of total assets from 2011 to 2014.

Long-term receivables and long-term financial investments

Up to now, LSS has trend to increase long-term receivable and long-term financial
investment in subsidiaries, associates, joint-ventures, stocks of other companies as well as
provisions for devaluation of these investments. We assume that long-term financial
investment will increase around 8% of total assets from 2011 to 2014.

Other non-current assets

LSSs non-current assets compose of long-term prepaid expenses, deferred income tax
assets and other long-term assets. Assume that other long-term assets is 0 from 2011 to
2014; deferred income tax assets and long-term prepaid expense will be around 0.15%
and 0.34%of total assets each year respectively.

Current liabilities
Short term loans common sized were 10.88%, 11.95%, 8.37 % from 2008-2010
respectively, its forecasted to be lower in the year after due to sugar price tend to go up
even in the harvest season.
22

Lam Son Sugar JSC

2011

Trade account payable has the opposite direction with short term loan , it tend to increase
significantly and stability in the following years at around 30% cause the bad effect of
weather , labor price , and the growing trend of sugar price all over the world .
Besides, advances from customer, payable to employee has the same direction like others
payable account, it show the unstable trend in the sugar industry. This trend can be
explained that the whole economy still not get back to stable status. Both of advances
from customer and payable to employee were expected to rock over 100% in the
following year then it will be lower when the whole economy more stable.
Tax and amount payable to state budget, other payables, accrued expense will increase
with sales as expected to keep growing from 2011.

Long term liabilities

Long term loans account has been declining when the company not lying anymore in
long term borrowing. It is forecast that the long term payable will be kept at that level till
the company had project to expand their business.
On the other hand, long term trade payable has reached 0%, it will be experienced the
same rate in the future.

Owner equity
Lam Son join stock company plans to issue shares to current shareholders to increase
legal capital by 500 billion , stand at 500 billion and keep that level in the future .
Share premiums will remarkably increase about 30% then stable at 10% growing in the
year after. Company experienced little foreign exchange different due to it mainly serve
domestic customer, this is expected in the future. In 2011 company is expected to a
significant earning, so does the retain earning. Retain earning will stand at high
percentage around 40% , it is forecasted to keep that high but the growing rate just
around 5%.

Other sources of fund

23

Lam Son Sugar JSC

2011

They are Bonus and welfare funds extracted from the net income after tax or owner s
equity that are used to motivate their employees as well as managers. It accounts for
around 2% in 2008 and 2009, and decline to around 0.2% from 2010 , it is expected to
stand at that level In the future .
3.

Statement of cash flow

Projected Statement of cash flows will be derived from the projected Balance sheet and
Income statement. For other accounts other than those appear on the two financial
reports, assumptions are cautiously made to estimate the amounts.

Cash flow from operations

Assume that from 2011 to 2015 there will be no unrealized foreign exchange differences
and the investing activities of LSS will not generate any gain or loss.

Cash flow from investing

Assume the cash flows for and recovered from lending and buying debt instruments of
other companies will be negligible in the following five years.
Next, assume that the changes of investments from other entities which are investments
and cash recovered from these will be the changes in short-term and long-term financial
investments from the Balance sheet of LSS.
Due to the lack of detailed internal information, forecasted cash flows will be slightly
different from the projected changes in cash. Therefore, the accounts named Interest
income, dividends and profit paid, and Other investing activities will be used as
balancing items to make them identical.

Cash flow from financing

Assume that LSS will not issue additional shares to its owners nor buy back any
outstanding stocks. The two first items in cash flows from financing therefore will be
zero.
Next, as the ability of LSS to repay its debts depends on its profitability, assume that the
changes in borrowing repayments will grow at an average rate of the previous repayment
of borrowings percentages to sales.
Finally, assume that there will be no effect from changing foreign exchange rates for year
2010 to 2014.

24

Lam Son Sugar JSC

4.

2011

Cash flow based valuation

Being one the most important part in the forecasting part, valuation is an useful tool to
help investors decide whether to invest in a company or not. To get the intrinsic value of
Lasuco, evaluation of cash flow to common equity is carried out in the last section.

Required rate of return on common equity

Vietnams risk-free rate of return is expected to be 12%, based on the estimated longterm average yield of Vietnamese government bond. Besides, Lasuco has a low beta,
about 0.66 at the end of 2011 (http://cafef.vn/hose). Besides, according to recent research
about market risk premium in 2010 (by two professionals: Pablo and Javier in EISE
Business school), the market risk premium is used to calculate the cost of equity of 13.3 %.

Thanks to the factors above as well as the CAPM model, we acquire the required rate of
return on common equity capital of 20.78% = 12% + 13.3%*0.66).

Free cash flow for common equity shareholders

At the beginning of process, the net cash flow from operation will be taken from
forecasted cash flow statement. And then, the cash flow is adjusted to exclude the cash
required for liquidity and operation purpose. Because Lasuco need to maintain a large
balance for operation purpose (such as: supporting 10% of total expense for farmers to
plant cane, providing low-interest debt to the farmers to help them boost cane
productivity at low cost and so on), we expect the firm will hold 60% amount of cash to
service its production and other operating activities. Hence, 60% of increase or decrease
in cash balance will be respectively subtracted or added to calculate the free cash flow
from operation. Besides, there is an adjustment that related to capital expenditure on
long-live asset. The cash flows from investment activities consist of outflow of capital
expenditure and inflow from sale of assets that comprise the productive capacity of the
operation of the firm. Therefore, we include all of net cash flow from investment into
Free Cash Flow to common equity shareholders.
In addition, we assume that there is no adjustment for financing preference stock,
repurchasing stock and providing dividend payments. Only the changes in short-term and

25

Lam Son Sugar JSC

2011

long-term borrowings (including the payment of mature debt and proceed from loans) are
added to the Free Cash Flow to common equity shareholders
In order to forecast the continuing value of Free Cash Flow in year 2015 and beyond, we
find the long run growth rate of Lasuco by using the formula g = ROE*retention ratio =
32.2%*0.2 = 6.44% (retention ratio is forecasted).
Last step is calculating the total value of Lasuco to discover each share value of the firm.
Details of each step will be presented in the appendix.
VII.

Conclusion and recommendations

From the forecasting process of financial statement and LASUCOs valuation, we made
estimation that the common shares price of the company has value at VND 25,200 at the
end of the year 2011. In fact, the market shares price of the company is VND 20,500,
which presents an underpriced of LASUCOs share by more than 13% percentage. From
the estimating result, we recommend to buy or hold the LASUCOs share at lower price
than its intrinsic value and then wait for an increase in the near future in shares price.
Moreover, Vietnamese domestic sugar market was in demand surplus during 10 years
with lacking around 500,000 tons of sugar each year. Although the Government set a
quota of sugar import is 142,000 tons, Vietnam is expected to export more than 170,000
tons sugar in the year of 2012 to China, a potential market of 1.3 billion populations.
After 10 years of sugar importing, this may start a new way to develop the industry and
give all the companies included opportunities to access to new markets with larger
demand and lots of potential investors. Domestic sugar price depends on the worlds
price and stays at the stable level of VND 18,500 19,000 / kg, in spite of changes
during the year. Gross profit margin of industry is forecasted remain unchanged in range
of 28 39 %/ year in long term. Additionally, LASUCO with the largest harvesting
square and leading in the technology using is planning to build the national trademark as
well as the global trademark in the next few years. Almost of economists estimate sugar
as the industry with the big revenue and growth rate of profit stable overtime. All these
source information expresses a potential strong and riskless growth of the industry. The
result is a big demand of holding or buying sugar shares from the smart risk adverse
investor, an ideal choice in a risky security market
26

Lam Son Sugar JSC

2011

References
1. Bo co ti chnh kim ton nm 2009 [ online ]
Available at URL:
http://finance.vietstock.vn/vi/cophieu/LSS/tai-tai-lieu/
2. Bo co ti chnh Hp nht kim ton nm 2010 [ online ]
Available at URL:
http://finance.vietstock.vn/vi/cophieu/LSS/tai-tai-lieu/
3. Bo co thng nin 2008 [ online ]
Available at URL:
http://www.lasuco.com.vn/thong-tin-co-dong/mlnews.2009-07-21.3233958347
4. Cao Anh Dng, 2007, sugarcane crop
5. Cophieu68s website [ online ]
Available at URL:
http://www.cophieu68.com/profilesymbol.php?id=lss
6. Cng ty CP ma ng Lam Sn xin cng b bo co ti chnh cho nin ti chnh kt
thc ngy 30/9/2011[ online ]
Available at URL:
http://www.lasuco.com.vn/thong-tin-co-dong/mlnews.2011-1024.5085313958?b_start:int=20
7. H Th Thanh Hon, ngnh ma ng v trin vng nm 2011
8. Lam Son sugar joint stock companys website [ online ]
Available at URL:
http://www.lasuco.com.vn/
9. Nguyn Anh Thng, 04/10/2011, Bo co tm lc ngnh ma ng
10. Stickney, CP, Financial Statement Analysis and Valuation, 6th Ed., 2007, South
Western
11. STI, 2009, Bn tin ngnh ma ng

27

Appendices
Balance Sheet
As of December 31

A
I.
1
2
II.
1

2
III.
1
2
3
4
IV.
1

2
V.
1
2

Current Assets.
Cash& Cash
equivalent
Cash
Cash equivalent
Short-term financial
investments
Short-term
investments
Provision for
diminution in the
value of short term
investments
Short- term
receivables
Trade accounts
receivable
Advances to suppliers
Other receivables
Provision for doubful
debts
Inventories
Inventories
Provision for
devaluation in
inventories
Other current assets
Short-term
prepayments
VAT to be deducted

Common size
Year
Year
2009
2010
58.6%
76.5%

Percentage change
Year
Year
2008
2009
Year 2010
-26.1%
58.6%
102.6%

Year 2007
499,097,229,975

Year 2008
368,797,387,225

Year 2009
585,057,706,971

Year 2010
1,185,526,562,754

Year
2008
42.5%

133,326,022,951
40,326,022,951
93,000,000,000

30,070,979,170
28,870,979,170
1,200,000,000

160,157,710,501
10,157,710,501
150,000,000,000

463,299,096,059
15,899,096,059
447,400,000,000

3.5%
3.3%
0.1%

16.0%
1.0%
15.0%

29.9%
1.0%
28.9%

-77.4%
-28.4%
-98.7%

432.6%
-64.8%
12400%

189.3%
56.5%
198.3%

94,785,850,913

29,807,841,000

162,625,181,038

104,272,860,688

3.4%

16.3%

6.7%

-68.6%

445.6%

-35.9%

96,430,761,343

52,055,385,559

6.0%

0.0%

0.0%

-46.0%

-100.0%

-1,617,910,430

-22,247,544,559

38,176,598,688

434,995,434,688

-2.6%

3.8%

28.1%

1275.1%

-271.6%

1039.4%

152,840,835,402

174,463,134,118

159,196,538,983

418,018,212,658

20.1%

16.0%

27.0%

14.1%

-8.8%

162.6%

62,555,252,867
66,496,941,379
24,270,519,404

40,067,430,135
117,701,046,487
17,396,976,334

42,185,134,309
99,160,688,953
18,748,046,647

56,148,639,612
348,329,654,503
14,606,748,557

4.6%
13.6%
2.0%

4.2%
9.9%
1.9%

3.6%
22.5%
0.9%

-35.9%
77.0%
-28.3%

5.3%
-15.8%
7.8%

33.1%
251.3%
-22.1%

-481,878,248
103,290,427,304
103,795,038,527

-702,318,838
118,578,848,641
118,578,848,641

897,339,926
124,490,232,101
124,490,232,101

1,066,830,014
149,241,128,157
149,420,837,571

-0.1%
13.7%
13.7%

0.1%
12.5%
12.5%

0.1%
9.6%
9.6%

45.7%
14.8%
14.2%

-227.8%
5.0%
5.0%

18.9%
19.9%
20.0%

504,611,223
14,854,093,405

0
15,876,584,296

0
16,764,643,036

179,709,414
94,190,699,880

0.0%
1.8%

0.0%
1.7%

0.0%
6.1%

-100.0%
6.9%

5.6%

461.8%

9,279,005,491
2,686,924,149

14,174,701,706
465,996,081

14,502,676,630
683,574,119

23,598,682,755
748,177,956

1.6%
0.1%

1.5%
0.1%

1.5%
0.0%

52.8%
-82.7%

2.3%
46.7%

62.7%
9.5%

Lam Son Sugar JSC

3
4
B.
I.
1
II.
1

III.
1
2
3

4
IV.
1
2
3

Taxes and other

accounts receivable
from the State
Others short-term
assets
Non-current Assets
Long-term receivables
Other long-term
receivable
Fixed assets
Tangible fixed assets
Historical costs
Accumulated
depreciation
Intangible fixed assets
Intial costs
Accumulated
amortization
Construction in
progress
Long-term financial
investments
Investment in
subsidiaries
Investment in joinventures, corporations
Other longer term
financial investments
Provisions for
diminution in value of
long-term security
investments
Other non-current
assets
Long-term
prepayments
Deferred tax assets
Other non-current
assets

2011

92,378,114

2,632,013

0.0%

0.0%

0.0%

-97.2%

-100.0%

2,795,785,651

1,233,254,496

1,578,392,287

69,843,839,169

4325.0%

412,870,298,307
7,295,266,981

364,352,970,607
7,539,175,762

4.5%
0.0%
23.5%
0.5%

28.0%

498,508,228,021
4,542,759,665

0.2%
0.0%
41.4%
0.7%

-55.9%

490,192,536,450
1,748,332,017

0.1%
0.0%
57.5%
0.5%

1.7%
159.8%

-17.2%
60.6%

-11.8%
3.3%

1,748,332,017
266,670,662,150
210,203,897,382
1,009,801,867,439

4,542,759,665
262,186,999,378
218,945,441,853
1,062,254,119,126

7,295,266,981
196,602,823,281
192,757,377,966
1,065,285,505,445

7,539,175,762
233,868,521,921
210,820,503,318
1,119,396,771,271

0.5%
30.2%
25.2%
122.5%

0.7%
19.7%
19.3%
106.7%

0.5%
15.1%
13.6%
72.2%

159.8%
-1.7%
4.2%
5.2%

60.6%
-25.0%
-12.0%
0.3%

3.3%
19.0%
9.4%
5.1%

-799,579,970,057
43,498,952,642
47,426,446,336

-843,308,677,273
41,797,749,482
46,278,783,869

872,528,127,479
2,801,124,796
6,437,349,921

908,576,267,953
1,716,191,040
6,192,349,921

-97.2%
4.8%
5.3%

87.4%
0.3%
0.6%

58.6%
0.1%
0.4%

5.5%
-3.9%
-2.4%

-203.5%
-93.3%
-86.1%

4.1%
-38.7%
-3.8%

-3,927,493,694

-4,481,034,387

-3,636,225,125

-4,476,158,881

-0.5%

-0.4%

-0.3%

14.1%

-18.9%

23.1%

12,967,812,126

1,443,808,043

1,044,320,519

31,331,827,563

0.2%
0.0%

0.1%
0.0%

2.0%
0.0%

-88.9%

-27.7%

2900.2%

215,489,149,328

227,291,593,134

205,608,411,719

113,044,986,379

26.2%

20.6%

7.3%

5.5%

-9.5%

-45.0%

0.0%

0.0%

0.0%

38,699,351,705

42,919,309,657

50,471,625,700

39,970,649,527

4.9%

5.1%

2.6%

10.9%

17.6%

-20.8%

176,789,797,623

243,472,408,530

163,425,891,870

85,381,686,062

28.1%

16.4%

5.5%

37.7%

-32.9%

-47.8%

-59,100,125,053

8,289,105,851

12,307,349,210

-6.8%

0.8%

0.8%

-114.0%

48.5%

6,284,392,955

4,486,875,844

3,363,796,326

8,813,626,545

0.5%

0.3%

0.6%

-28.6%

-25.0%

162.0%

3,243,509,681
3,040,883,274

4,486,875,844
0

3,363,796,326
0

7,412,803,628
1,400,822,917

0.5%
0.0%

0.3%
0.0%

0.5%
0.1%

38.3%
-100.0%

-25.0%

120.4%

1,086,660,000

0.0%

0.0%

0.1%

29

Lam Son Sugar JSC

A.
I.
1
2
3

4
5
6
8
II.
1
2
3
4

6
B.
I.
1
2
3
5
6
7

2011

TOTAL ASSETS

989,289,766,425

867,305,615,246

997,928,005,278

1,549,879,533,361

100.0%
0.0%
31.8%

100.0%
0.0%
23.2%

-12.3%

15.1%

55.3%

359,352,091,130

100.0%
0.0%
31.8%

LIABILITIES
CURRENT
LIABILITIES
Short-term loans
Trade accounts
payable
Advances from
customers
Taxes and amount
payable to the State
Buhget
Payables to employees
Accured expenses
Other current payables
LONG-TERM
LIABILITIES
Long-term trade
payables
Other long-term
payables
Long-term loans
Deferred tax liabilities
Provision for
unemployment
allowances
Funds for technology
and science
development
RESOUCES
Owner's equity
Legal capital
Share premiums
Tresury stock
Foreign exchange
difference
Investment and
development funds
Financial reserve

342,636,961,464

276,053,641,954

317,479,087,873

-19.4%

15.0%

13.2%

247,457,569,647
107,654,400,587

200,001,339,794
103,667,129,586

271,498,928,624
83,515,667,627

292,734,183,709
59,525,626,141

23.1%
12.0%

27.2%
8.4%

18.9%
3.8%

-19.2%
-3.7%

35.7%
-19.4%

7.8%
-28.7%

75,487,474,480

58,794,179,919

60,582,872,212

77,574,488,437

6.8%

6.1%

5.0%

-22.1%

3.0%

28.0%

5,686,537,412

939,365,001

13,650,106,318

39,252,162,003

0.1%

1.4%

2.5%

-83.5%

1353.1%

187.6%

17,420,787,543
8,142,406,482
6,166,549,998
26,899,413,145

925,536,997
4,134,229,647
2,737,073,119
28,803,825,525

53,645,380,563
9,502,248,245
2,484,944,887
20,310,599,226

54,194,241,281
21,804,696,407
2,727,733,459
19,674,207,879

0.1%
0.5%
0.3%
3.3%

5.4%
1.0%
0.2%
2.0%

3.5%
1.4%
0.2%
1.3%

-94.7%
-49.2%
-55.6%
7.1%

5696.1%
129.8%
-9.2%
-29.5%

1.0%
129.5%
9.8%
-3.1%

95,179,391,817

76,052,302,160

45,980,159,249

66,617,907,421

8.8%

4.6%

4.3%

-20.1%

-39.5%

44.9%

556,000,000

553,140,000

0.1%

0.1%

0.0%

-0.5%

-100.0%

578,632,133
93,854,618,522
0

1,468,464,133
72,920,251,079
357,684,538

578,632,133
22,165,643,622
0

0
5,942,111,391
0

0.2%
8.4%
0.0%

0.1%
2.2%
0.0%

0.0%
0.4%
0.0%

153.8%
-22.3%

-60.6%
-69.6%
-100.0%

-100.0%
-73.2%

746,141,162

749,902,410

922,102,701

1,654,594,776

0.1%

0.1%

0.1%

0.5%

23.0%

79.4%

0
618,022,873,885
595,656,044,829
300,000,000,000
11,499,917,000
0

0
570,558,624,041
544,995,909,515
300,000,000,000
114,994,917,000
-9,703,995,196

21,760,640,793
672,460,564,322
671,637,684,491
300,000,000,000
114,994,917,000
9,703,995,196

59,021,201,254
1,174,870,123,744
1,170,855,106,716
400,000,000,000
280,426,411,784
105,600,000

0.0%
65.8%
62.8%
34.6%
13.3%
-1.1%

2.2%
67.4%
67.3%
30.1%
11.5%
1.0%

3.8%
75.8%
75.5%
25.8%
18.1%
0.0%

-7.7%
-8.5%
0.0%
900.0%

17.9%
23.2%
0.0%
0.0%
-200.0%

171.2%
74.7%
74.3%
33.3%
143.9%
-98.9%

280,763,897

0.0%

0.0%

0.0%

97,103,165,531
12,663,506,714

106,631,439,364
16,866,355,009

111,893,296,513
19,457,219,895

127,828,935,642
27,209,004,541

12.3%
1.9%

11.2%
1.9%

8.2%
1.8%

30

-100.0%
9.8%
33.2%

4.9%
15.4%

14.2%
39.8%

Lam Son Sugar JSC

2011

funds
8
9
II.
1
2
3
4

Other owner's funds

Retained earnings (
Accumulated losses)
Other sources and
other funds
Bonus and welfare
funds
Funds
Funds raise the fixed
assets
Dividend
Total Resouces

86,868,460

340,226,757

177,486,882

291,530,458

0.0%

0.0%

0.0%

291.7%

-47.8%

64.3%

70,807,587,124

15,866,966,581

135,099,523,294

335,204,824,291

1.8%

13.5%

21.6%

-77.6%

751.5%

148.1%

22,366,828,856

25,562,714,526

822,879,831

4,015,017,028

2.9%

0.1%

0.3%

14.3%

-96.8%

387.9%

16,510,341,083
4,862,257,525

24,118,435,891
513,181,114

27,807,209,546
84,776,114

18,281,028,102
3,469,907,114

2.8%
0.1%

2.8%
0.0%

1.2%
0.2%

46.1%
-89.4%

15.3%
-83.5%

-34.3%
3993.0%

994,230,248
28,629,931,276
989,289,766,425

931,097,521
20,693,349,251
867,305,615,246

738,103,717
7,988,353,083
997,928,005,278

545,109,914
15,657,318,487
1,549,879,533,361

0.1%
2.4%
100.0%

0.1%
0.8%
100.0%

0.0%
1.0%
100.0%

-6.3%
-27.7%
-12.3%

-20.7%
-61.4%
15.1%

-26.1%
96.0%
55.3%

31

Lam Son Sugar JSC

2011

Income Statement
For the fiscal year ended 31 December
Unit VND

common size
Year
2009
Year 2010
100%
100%
0%
0%

Percentage change
Year
Year
Year
2008
2009
2010
18.78%
-2.84%
21.70%
0%
0% -100.00%
18.9000% 2.8442% 21.7051%
-5.46%
-1.37%
-1.37%
8.71% 110.20%
110.20%
44.37%
29.01%
29.01%
-115%
-287% -287.22%
-3%
-36%
-36.44%
7%
6%
5.57%

Items
1. sales
2. Less: Deductions

Year 2008
1,131,771,306,750
2,727,273

Year 2009
1,099,587,215,179
8,571,429

Year 2010
1,338,243,077,296
0

Year
2008
100%
0%

3. Net sales
4. Cost of goods sold
5. Gross profit
6. Financial income
7. Financial expenses
Including: Interest expenses
8. Selling expenses
9. General and administration
expenses
10. Operating profit/ (loss)
11. Other income
12. Other expenses
13. Profit/ (loss) from other
activities
14. Net profit/ (loss) before tax
15. Current coporate income tax
16. Deferred coporate income tax
17. Net profit/ (loss) after taxes
18. Earnings per share

1,131,768,579,477
922,580,773,629
209,187,805,848
27,997,985,664
98,631,273,049
16,328,528,626
18,379,015,227

1,099,578,643,750
872,161,855,003
227,416,788,747
40,420,081,826
(15,107,839,702)
15,815,760,756
19,586,392,372

1,338,243,077,296
860,214,846,740
478,028,230,556
52,144,216,568
28,284,907,974
10,052,560,689
20,678,243,975

99.9998%
81.52%
18.48%
2.47%
8.71%
1.44%
1.62%

99.9992%
79.32%
20.68%
3.68%
-1.37%
1.44%
1.78%

100.0000%
64.28%
35.72%
3.90%
2%
0.75%
1.55%

30,202,326,536
89,973,176,700
5,614,456,337
1,568,470,836

51,289,417,644
212,068,900,259
17,493,613,320
18,907,196,752

86,564,232,015
394,645,063,160
6,986,014,376
6,729,199,852

2.67%
7.95%
0.50%
0.14%

4.66%
19.29%
1.59%
1.72%

6.47%
29.49%
0.52%
0.50%

70%
136%
212%
1105%

69%
86%
-60%
-64%

68.78%
86.09%
-60.07%
-64.41%

4,045,985,501
93,698,225,450
17,453,256,474
3,323,631,697
72,921,337,279
2,456

(1,413,583,432)
211,981,556,347
49,020,352,789
(357,684,538)
163,318,888,096
5,366

256,814,524
394,084,353,943
94,014,137,544
(1,400,822,917)
301,471,039,316
9,647

0.36%
8.28%
1.54%
0.29%
6.44%

-0.13%
19.28%
4.46%
-0.03%
14.85%

0.02%
29.45%
7.03%
-0.10%
22.53%

-135%
126%
181%
-111%
124%

-118%
86%
92%
292%
85%

-118.17%
85.91%
91.79%
291.64%
84.59%

32

Lam Son Sugar JSC

ITEMS

2011

Cash flow statement

For the fiscal year ended 31 December
Year 2007
Year 2008

Year 2009

Year 2010

I. Cash flow from operating activities

1. Profit before tax
2. Adjustments for:

116,507,428,829

93,698,225,450

211,981,556,347

394,084,353,943

* Fixed asset depreciation

66,699,078,789

48,055,502,145

45,440,367,767

42,337,986,346

* Provisions

818,517,506

80,007,404,703

(35,508,957,031)

9,686,278,861

* Unrealized foreign exchange differences

1,246,478,587

(1,430,738,155)

218,567,046

6,418,892,406

* Gain/ (loss) from investing activities

(7,448,113,700)

(26,967,298,726)

(33,983,310,253)

(41,512,033,494)

* Interest expenses

13,998,980,379

16,328,528,626

15,815,760,756

10,052,560,689

3. Operating income before movements in

working capital

191,822,370,390

209,691,624,043

203,963,984,632

421,068,038,751

* (Increase)/ Decrease in accounts receivable

(46,900,858,373)

(55,506,927,892)

51,448,978,590

(129,990,580,294)

* (Increase)/ Decrease in inventories

39,168,665,059

(20,513,748,641)

(6,751,648,619)

(24,930,605,470)

* (Increase)/ Decrease in prepaid expenses

137,484,530

(4,403,238,950)

795,104,594

(84,129,885,935)

* Increase/ (Decrease) in accounts payable

(55,675,979,263)

(45,983,251,611)

(53,747,236,130)

94,949,765,142

* Interests paid

(14,399,644,521)

(16,543,193,413)

(16,004,675,928)

(9,607,792,605)

33

Lam Son Sugar JSC

2011

* Coporate income tax paid

(15,708,416,493)

(33,948,253,692)

(1,480,818,918)

(99,973,611,037)

* Other cash inflows

4,774,345,862

9,145,718,365

1,560,365,213

* Other cash outflows

(3,571,547,660)

(14,019,768,678)

(3,655,376,462)

(23,258,987,286)

Changes of other cash inflows/ (outflows)

1,202,798,202

(4,874,050,313)

(2,095,011,249)

(23,258,987,286)

Net cash flow from (used in) operating activities

99,646,419,531

176,128,676,972

144,126,341,266

27,918,959,531

II. Cash flow from investing activities

1. Acquisition of fixed assets and other long-term
assets

(20,161,510,031)

(35,927,181,686)

(47,072,298,060)

(191,542,337,439)

2. Proceeds from fixed assets and other long-term

assets disposal

65,017,386,552

1,171,885,071

8,688,793,777

5,681,790,519

Changes of fixed assets (1+2)

44,855,876,521

(34,755,296,615)

(38,383,504,283)

(185,860,546,920)

3. Cash outflow for lending, buying debt

instruments of other companies

(218,600,000,000)

(23,376,400,000)

(48,906,870,350)

(1,189,768,117)

4. Cash recovered from lending, buying debt

instruments of other companies

219,000,000,000

77,600,000,000

18,653,789,093

53,847,137,270

5. Investment in other entities

(164,181,840,000)

(54,367,550,000)

(6,678,840,000)

(20,796,620,000)

6. Cash recovered from investment in other

entities

22,727,384,400

25,000,000

10,218,855,814

91,710,180,200

Changes of investments in other entities(5+6)

(141,454,455,600)

(54,342,550,000)

3,540,015,814

70,913,560,200

34

Lam Son Sugar JSC

7. Interest income, dividends and profit paid

11,978,308,103

Net cash flow from (used in) investing activities

(84,220,270,976)

2011

25,939,725,389

31,992,281,357

37,160,844,596

(8,934,521,226) (33,104,288,369)

(25,128,772,971)

- -

275,135,489,980

III. Cash flow from financing activities

1. Proceeds from issuing stock, receiving capital
from owners

51,148,000,000

2. Capital withdrawal, buying back issued stocks

(9,703,995,196)

3. Proceeds from borrowings

177,543,526,108

205,037,636,469

313,274,305,407

206,497,209,317

4. Repayments of borrowings

(231,087,755,684)

(223,644,015,943)

(302,849,205,955)

(247,010,783,034)

Changes in borrowings (3+4)

(53,544,229,576)

(18,606,379,474)

10,425,099,452

(40,513,573,717)

5. Dividends paid

(10,028,669,930)

(93,930,334,400)

(23,394,895,666)

(50,478,099,000)

Net cash flow from (used in) financing activities

(12,424,899,506)

(122,240,709,070)

(12,969,796,214)

184,143,817,263

Net increase/ (decrease) in cash and cash

equivalents

3,001,249,049

(103,256,270,765)

130,054,592,389

303,141,385,558

Cash and cash equivalents at beginning of year

130,330,949,603

133,326,022,951

30,070,979,170

160,157,710,501

Effect from changing foreign exchange rates

(6,175,701)

1,226,984

32,138,942

Cash and cash equivalents at end of year

133,326,022,951

30,070,979,170

160,157,710,501

463,299,096,059

35

Lam Son Sugar JSC

2011

Balance Sheet
For the fiscal year 31 December
Actuals
ASSETS

Year 2007

A. CURRENT ASSETS
Common size

499,124,229,975
50.45%

Percentage change
I. Cash and equivalents
Common size

133,326,022,951
13.48%

Common size

Common size

Common size

Year 2011

Year 2012

Year 2013

Year 2014

year 2015

368,797,387,225

585,057,697,971

1,185,526,562,754

1,767,115,033,387

1,881,421,365,722

1,886,672,590,445

1,919,997,675,820

2,043,645,526,143
70.25%

42.52%

58.63%

76.49%

72.09%

72.43%

71.42%

70.25%

-26.11%

58.64%

102.63%

49.06%

6.47%

0.28%

1.77%

6.44%

30,070,979,170

160,157,710,501

463,299,096,059

1,120,008,274,100

1,075,203,445,776

828,966,342,480

651,326,879,586

693,272,330,632

16.05%

29.89%

45.69%

41.39%

31.38%

23.83%

23.83%

432.60%

189.28%

141.75%

-4.00%

-22.90%

-21.43%

6.44%

94,812,850,913

29,807,841,000

124,448,582,350

60,777,426,000

117,867,737,259

131,722,918,052

188,381,486,857

198,966,655,279

211,780,107,879

9.58%

3.44%

12.47%

3.92%

7.11%

6.40%

7.34%

6.35%

7.28%

-68.56%

317.50%

-51.16%

93.93%

11.75%

43.01%

5.62%

6.44%

52,055,385,559

162,625,181,038

104,272,860,688

175,231,185,239

206,649,378,219

266,678,241,030

274,089,034,699

291,740,368,533

96,430,761,343
9.75%

6.00%

16.30%

6.73%

7.15%

7.96%

10.10%

10.03%

10.03%

-46.02%

212.41%

-35.88%

68.05%

17.93%

29.05%

2.78%

6.44%

(1,617,910,430)

(22,247,544,559)

(38,176,598,688)

(43,495,434,688)

(57,363,447,979)

(74,926,460,167)

(78,296,754,173)

(75,122,379,420)

(79,960,260,655)

-0.16%

-2.57%

-3.83%

-2.81%

-2.34%

-2.88%

-2.96%

-2.75%

-2.73%

1275.08%

71.60%

13.93%

755,864,464,680

Percentage change
2.Provisions for devaluation
fo short-term investment

Year 2010

3.47%

Percentage change
1.Short-term investments

Year 2009

-77.45%

Percentage change
II. Short-term financial investments

Forecasts

Year 2008

Percentage change

% of total assets

III. Short-term receivables

152,840,835,402

174,463,134,118

159,196,529,983

418,018,212,658

335,970,898,892

422,848,294,754

557,771,592,437

710,131,966,065

Common size

15.45%

20.12%

15.95%

26.97%

13.71%

16.28%

21.12%

25.98%

14%

-9%

163%

-20%

26%

32%

27%

6%

62,555,252,867

40,067,430,135

42,185,134,309

56,148,639,612

75,879,072,892

80,472,826,917

115,456,177,413

126,890,445,889

135,062,190,605
4.64%

Percentage change
1. Trade accounts receivables
Common size

6.32%

4.62%

4.23%

3.62%

14

14

14

-35.95%

5.29%

33.10%

35.14%

6.05%

43.47%

9.90%

6.44%

66,496,941,379

117,701,046,487

99,160,688,953

348,329,654,503

301,232,524,681

402,731,610,086

544,269,862,118

579,320,841,239

6.72%

13.57%

9.94%

22.47%

217,244,791,729
% of sales
13.11%

14.64%

15.70%

17.37%

17.37%

77.00%

-15.75%

251.28%

-37.63%

38.66%

33.69%

35.14%

6.44%

17,396,976,334

18,748,046,647

14,606,748,557

44,614,632,337

43,168,128,769

41,623,191,194

40,994,802,382

43,634,867,655

1.66%

1.58%

1.50%

1.64%

Percentage change
2. Adavances to suppliers
Common size
Percentage change
3. Other receivables
Common size

24,270,519,404
2.45%

2.01%

1.88%

0.94%

-28.32%

7.77%

-22.09%

(481,878,248)

(702,318,838)

(897,339,926)

(1,066,830,014)

(1,767,598,066)

(2,025,185,613)

(2,039,386,255)

(2,023,144,324)

(2,153,434,818)

-0.05%

-0.08%

-0.09%

-0.07%

-0.07%

-0.08%

-0.08%

-0.07%

-0.08%

45.75%

27.77%

18.89%

Percentage change
4. Provisions for doubtful debts
Common size
Percentage change

turnover days 15

36

1.82%
% of total assets

% of total assets

( average rate of historical data)

6.44%

Lam Son Sugar JSC

IV. Inventories
Common size

103,290,427,304

118,578,848,641

124,490,232,101

149,241,128,157

193,268,123,136

251,646,707,140

311,553,168,670

359,572,174,890

382,728,622,953

10.44%

13.67%

12.47%

9.63%

7.88%

9.69%

11.79%

13.16%

13.16%

14.80%

4.99%

19.88%

29.50%

30.21%

23.81%

15.41%

6.44%

103,795,038,527

118,578,848,641

124,490,232,101

149,420,837,571

193,268,123,136

251,646,707,140

311,553,168,670

359,572,174,890

382,728,622,953

10.49%

13.67%

12.47%

9.64%

turnover days 50.9

53.3

54.1

52.8

14.24%

4.99%

20.03%

30.21%

23.81%

15.41%

Percentage change
1. Inventories
Common size
Percentage change
2. Provisions for devaluation of
inventories
Common size

(504,611,223)

(179,709,414)

-0.05%

0.00%

0.00%

-0.01%

0.00%

0.00%

0.00%

0.00%

0.00%

14,854,093,405

15,876,584,296

16,764,643,036

94,190,699,880

325,922,210,536

342,615,821,062

349,746,387,484

365,484,974,920

389,022,207,305

1.50%

1.83%

1.68%

6.08%

13.30%

13.19%

13.24%

13.37%

13.37%

6.88%

5.59%

461.84%

246.02%

5.12%

2.08%

4.50%

6.44%

9,279,005,491

14,174,701,706

14,502,676,630

0.94%

1.63%

1.45%

1.52%

52.76%

2.31%

62.72%

2,686,924,149

465,996,081

683,574,119

748,177,956

0.27%

0.05%

0.07%

0.05%

-82.66%

46.69%

9.45%

Percentage change
V. Other current assets
Common size

-100.00%

Percentage change
1. Short-term prepaid expenses
Common size
Percentage change
2. VAT to be deducted
Common size
Percentage change
3. Taxes and other
accounts receivables from State
Common size

Common size

Common size

Common size

Common size
Percentage change

29,517,483,218

31,029,357,379

1.20%

31,675,144,527

33,100,526,031

35,232,199,907

1.19%

1.20%

1.21%

1.21%

1229895134

1,292,889,891

1319797689

1379188585

1,468,008,329

0.05%

0.05%

0.05%

0.05%

0.05%

% of total assets

% of purchase

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

-97.15%

-100.00%

2,795,785,651

1,233,254,496

1,578,392,287
0.16%

#DIV/0!
69,843,839,169

0.28%

0.14%
-55.89%

27.99%

4325.00%

490,192,536,450

498,508,228,021

412,870,298,307

364,352,970,607

49.55%

57.48%

41.37%

23.51%

1.70%

-17.18%

-11.75%

1,748,332,017

4,542,759,665

7,295,266,981

7,539,175,762

0.18%

0.52%

0.73%

0.49%

159.83%

60.59%

3.34%

266,670,662,150

262,186,999,378

196,602,823,281

26.96%

30.23%

19.70%

-1.68%

-25.01%

Percentage change
II. Fixed assets

23,598,682,755

2,632,013

Percentage change
I. long-term receivables

#DIV/0!

0.01%

Percentage change
B. NON-CURRENT ASSETS

#DIV/0!

92,378,114

Percentage change
4. Other current assets

2011

4.51%

295,174,832,183
12.04%

310,293,573,792

316,751,445,268

331,005,260,305

352,321,999,069

11.94%

11.99%

12.11%

12.11%

684,148,572,230

716,301,296,282

754,821,777,804

812,978,637,130

865,334,461,361

27.91%

27.57%

28.58%

29.75%

29.75%

87.77%

4.70%

5.38%

7.70%

6.44%

% of total assets

22914303028

22914303028

24,389,984,143

0.93%

0.88%

0.87%

0.84%

0.84%

233,868,521,921

437,442,556,260

469,595,280,312

508,115,761,834

566,272,621,160

602,740,577,963

15.09%

17.85%

18.08%

19.24%

20.72%

20.72%

18.95%

87.05%

7.35%

8.20%

11.45%

6.44%

37

22,914,303,028

22,914,303,028

Lam Son Sugar JSC

1. Tangible fixed assets

Common size

210,203,897,382

218,945,441,853

192,757,377,966

210,820,503,318

21.25%

25.24%

19.32%

13.60%

4.16%

-11.96%

9.37%

Percentage change
Historical costs
Common size

#############
102.07%

Percentage change
Accumulated depreciation

(799,597,970,057)

Common size

-80.82%

Common size

47.69%

47.38%

49.51%

51.29%

See PPE assumptions in forecast

(947,158,278,771)

(987,777,606,718)

##############

##############

#############

-38.64%

-38.02%

-39.03%

-39.41%

-39.41%

2,801,124,796

1,716,191,040

4,919,580,536

5,171,559,563

5,279,190,754

5,516,754,338

5,872,033,318

0.28%

0.11%

0.20%

0.20%

0.20%

0.20%

-3.91%

-93.30%

-38.73%

0.20%
0.2% of total
assets

46,278,783,869

6,437,349,921

6,192,349,921

4.79%

12,967,812,126

Common size

1.31%

9,050,229,236

9,238,583,820

9,654,320,092

10,276,058,306

0.65%

0.40%

0.35%

0.35%

0.35%

0.35%

0.35%

-86.09%

-3.81%

39.03%

5.12%

2.08%

4.50%

6.44%

(4,481,034,387)

(3,636,225,125)

(4,476,158,881)

(3,689,685,402)

(3,878,669,672)

-0.52%

-0.36%

-0.29%

-0.15%

14.09%

-18.85%

23.10%

Growth with % of initial cost

1,443,808,043

1,044,320,519

21,331,827,563

0.10%

1.38%

-27.67%

1942.65%

215,489,149,328

227,291,593,134

205,608,411,719

113,044,986,379

21.78%

26.21%

20.60%

7.29%

5.48%

-9.54%

-45.02%

0.00%

0.00%

0.00%

0.00%

#DIV/0!

#DIV/0!

38,699,351,705

42,919,309,657

50,471,625,700

3.91%

4.95%

5.06%

Percentage change

8,609,265,939

5.34%

0.17%

Percentage change

See depreciation for PPE

-2.42%

-88.87%

Percentage change

Common size

1,401,837,406,549

4.82%

3. Construction in Progress

3. Other long-term investments

(908,576,267,953)

1,307,824,064,719

41,797,749,482

-0.40%

Common size

############

1,230,858,578,162

4.40%

Common size

Percentage change
2. Investment in associates, jointventures

############

1,169,123,207,537

43,498,952,642

Percentage change

Common size

5.08%

1,492,115,735,531

See PPE assumptions in forecast

4.13%

(3,927,493,694)

1. Investment in subsidiaries

72.22%

0.29%

345,545,518,642

-58.62%

Accumulated amortization

Common size

106.75%

5.19%

324,638,781,137

3.46%

Percentage change

III. Long-term financial investments

122.48%

276,887,206,788

-87.43%

47,426,446,336
Common size

1,119,396,771,271

243,080,971,444

5.47%

Percentage change
Initial costs

############

221,964,928,766

-97.23%

Percentage change
2. Intangible fixed assets

############

2011

#DIV/0!
39,970,649,527

210,558,046,957
8.59%

17.60%

-20.81%

176,789,797,623

243,472,408,530

163,425,891,870

85,381,686,062

17.87%

28.07%

16.38%

5.51%

38

221,342,749,305

-0.15%

225,949,364,291

(4,137,565,754)
-0.15%

236,117,085,684

(4,404,024,988)
-0.15%

251,323,026,003

8.52%

8.55%

8.64%

8.64%

210,673,364,995

210,673,364,995

210,673,364,995

210,673,364,995

224,240,729,701

8.59%

8.11%

7.98%

7.71%

7.71%

86.36%

0.00%

0.00%

0.00%

6.44%

8.56% of total assets

97,220,431,848
3.97%

97,220,431,848
3.74%

97,220,431,848
3.68%

97,220,431,848
3.56%

103,481,427,659
3.56%

% of total assets
37,080,520,000

2.58%

10.90%

-0.15%

(3,959,393,066)

1.51%

37,080,520,000
1.43%

37,080,520,000
1.40%

37,080,520,000
1.36%

39,468,505,488
1.36%

Decreasing
7.23%,
124,834,387,004
5.09%

124,834,387,004
4.81%

124,834,387,004
4.73%

124,834,387,004
4.57%

132,873,721,527
4.57%

Lam Son Sugar JSC

Percentage change

37.72%

-32.88%

-47.76%

(59,100,125,053)

(8,289,105,851)

(12,307,349,210)

0.00%

-6.81%

-0.83%

-0.79%

-85.97%

48.48%

4. Provisions for devaluation

of long-term investments
Common size
Percentage change
IV. Other non-current assets
Common size

#DIV/0!

Common size

Common size

(48,461,973,857)

(51,582,924,973)

-1.83%

-1.77%

-1.77%

% of total assets

3,363,796,326

9,900,286,545

13,118,347,947

13,118,347,947

13,118,347,947

13,118,347,947

13,963,169,555

0.34%

0.64%

0.54%

0.50%

0.50%

0.48%

0.48%

-28.60%

-25.03%

194.32%

32.50%

0.00%

0.00%

0.00%

6.44%

4,486,875,844

3,363,796,326

7,412,803,628

3,243,509,681
0.33%

0.31%

0.34%

0.48%

38.33%

-25.03%

120.37%

% of total assets

1,400,822,917

4,063,323,408

989,316,766,425

0.00%

0.00%

0.09%

-100.00%

#DIV/0!

#DIV/0!

0
0.00%

0
0.00%

0.07%

#DIV/0!

#DIV/0!

#DIV/0!

867,305,615,246

997,927,996,278

1,549,879,533,361

100.00%

100.00%

100.00%

Percentage change

-12.33%

15.06%

55.31%

9,055,024,539

0.37%

9,055,024,539

0.35%

0.33%

4,063,323,408

0.15%
0

9,638,168,119

0.33%

4,063,323,408

0.16%
0

9,055,024,539

0.34%

4,063,323,408

0.17%

1,086,660,000

0.00%

check between formulas

100.00%

9,055,024,539

0.52%

3,040,883,274

Percentage change

Common size

(48,461,973,857)

-1.87%

0.52%

3. Other long-term assets

TOTAL ASSETS

(48,461,973,857)

-1.98%

4,486,875,844

Percentage change
Common size

(48,461,973,857)

0.64%

Percentage change
2. Deferred income tax assets

Increasing 46.21%

6,284,392,955

Percentage change
1. Long-term prepaid expenses

2011

4,325,001,435

0.15%
0

0.15%
0

0.00%

0.00%

0.00%

0.00%

0.00%

2,451,263,605,617

2,597,722,662,005

2,641,494,368,248

2,732,976,312,950

2,908,979,987,504

2,451,263,605,617

2,597,722,662,005

2,641,494,368,248

2,732,976,312,950

2,908,979,987,504

100.00%

100.00%

100.00%

100.00%

100.00%

58.16%

5.97%

1.69%

3.46%

6.44%

2,459,790,268,193

2,585,779,781,603

2,639,595,377,235

2,758,377,169,211

500,879,974,860

501,806,307,984

557,533,551,617

RESOURCES
A. LIABILITIES
Common size

342,636,961,464
34.63%

Percentage change
I. CURRENT LIABILITIES
Common size

247,457,569,647
25.01%

Percentage change
1. Short-term loans
Common size
Percentage change

107,654,400,587
10.88%

276,053,641,954

317,479,087,873

31.83%

31.81%

23.19%

17.74%

19.28%

19.00%

20.40%

-19.43%

15.01%

13.19%

21.03%

15.16%

0.18%

11.11%

200,001,339,794

271,498,928,624

23.06%

27.21%

18.89%

14.69%

16.43%

16.18%

17.14%

-19.18%

35.75%

7.82%

23.02%

18.50%

0.14%

9.65%

103,667,129,586

83,515,667,627

359,352,091,130

292,734,183,709

59,225,626,141

434,938,414,136

360,111,739,234

56,264,344,834

426,722,756,668

53,451,127,592

427,339,680,569

50,778,571,213

468,561,485,756

48,239,642,652

593,438,712,342
20.40%
6.44%
498,736,845,439
17.14%
6.44%
51,346,275,639

11.95%

8.37%

3.82%

2.30%

2.06%

1.92%

1.77%

1.77%

-3.70%

-19.44%

-29.08%

-5.00%

-5.00%

-5.00%

-5.00%

6.44%

39

Lam Son Sugar JSC

2. Trade accounts payable

Common size

75,487,474,480
7.63%

Percentage change
3. Advances from customers
Common size
Percentage change
4. Taxes and accounts payable to the
State budget
Common size

5,686,537,412
0.57%

17,420,787,543
1.76%

Percentage change
5. Payable to employees
Common size

8,142,406,482
0.82%

Percentage change
6. Accrued expenses
Common size

6,166,549,998
0.62%

Common size

2.72%

Percentage change
II. LONG-TERM LIABILITIES
Common size

95,179,391,817
9.62%

Percentage change
1. Long-term trade payables
Common size

0
0.00%

Percentage change
2.Other long-term payables
Common size

578,632,133
0.06%

Common size

9.49%

Percentage change
4. Deferred tax liabilites
Common size
Percentage change
5. Provisions for unemployment
allowances
Common size

0
0.00%

125,670,671,268

138,237,738,395

165,885,286,074

4.27%

4.84%

5.23%

6.07%

-22.11%

3.04%

28.05%

35.00%

20.00%

10.00%

20.00%

939,365,001

13,650,106,318

39,252,162,003

62,803,459,205

84,784,669,926

76,306,202,934

176,568,298,497
6.07%
6.44%

68,675,582,640

73,098,290,162

0.11%

1.37%

2.53%

2.56%

3.26%

2.89%

2.51%

2.51%

-83.48%

1353.12%

187.56%

60.00%

35.00%

-10.00%

-10.00%

6.44%

925,536,997

53,645,380,563

54,194,241,281

62,323,377,473

68,555,715,220

71,983,500,981

82,781,026,129

88,112,124,211

0.11%

5.38%

3.50%

2.54%

2.64%

2.73%

3.03%

3.03%

-94.69%

5696.14%

1.02%

15.00%

10.00%

5.00%

15.00%

6.44%

4,134,229,647

9,502,148,245

21,804,696,407

52,331,271,377

73,263,779,928

69,600,590,931

83,520,709,117

0.48%

0.95%

1.41%

2.13%

2.82%

2.63%

3.06%

-49.23%

129.84%

129.47%

140.00%

40.00%

-5.00%

20.00%

2,727,733,459

2,973,229,470

2,737,073,119

28,803,825,525

2,484,944,887
0.25%

0.18%

-9.21%

0.12%

9.77%

20,310,599,226

0.12%

9.00%

19,674,207,879

3,240,820,123

0.13%

9.00%

18,690,497,485

3,564,902,135

2.04%

1.27%

0.76%

0.68%

0.64%

0.56%

-3.13%

-5.00%

-5.00%

-5.00%

-10.00%

45,980,159,249

66,617,907,421

74,826,674,902

74,157,218,192

74,466,627,415

6.44%

15,181,356,582

-29.49%

4,553,378,199
0.16%

20.00%

16,868,173,980

7.08%
76,052,302,160

6.44%

0.16%

10.00%

17,755,972,611

88,899,442,785
3.06%

4,277,882,562

3.32%

16,159,035,946
0.56%
6.44%

88,972,065,861

94,701,866,903

8.77%

4.61%

4.30%

3.05%

2.85%

2.82%

3.26%

-20.10%

-39.54%

44.88%

12.32%

-0.89%

0.42%

19.48%

556,000,000

553,140,000

0.06%

0.06%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

#DIV/0!

-0.51%

-100.00%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

1,468,464,133
153.78%

93,854,618,522

104,725,559,390

5.01%

0.17%

Percentage change
3. Long-term loans

77,574,488,437

6.07%

-55.61%
26,899,413,145

60,582,872,212

6.78%

0.32%

Percentage change
7. Other current payables

58,794,179,919

2011

72,920,251,079

578,632,133
0.06%
-60.60%

8.41%

2.22%

-22.31%

-69.60%

357,684,538

0
0.00%
-100.00%

22,165,643,622

5,942,111,391
0.38%

6.44%
0

0.00%

0.00%

0.00%

0.00%

0.00%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

1,188,422,278
0.05%

-73.19%
0

3.26%

-80.00%
0

237,684,456

237,684,456

237,684,456

252,991,335

0.01%

0.01%

0.01%

0.01%

-80.00%
0

0.00%
0

0.00%
0

6.44%
0

0.04%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

#DIV/0!

-100.00%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

746,141,162

749,902,410

922,102,701

0.08%

0.09%

0.09%

1,654,594,776
0.11%

40

2,812,811,119
0.11%

3,094,092,231
0.12%

3,403,501,454
0.13%

3,743,851,600
0.14%

3,984,955,643
0.14%

Lam Son Sugar JSC

Percentage change
6.Fund for technology and science
development
Common size

0.50%
0
0.00%

Percentage change
RESOURCE
Common size

618,022,873,885
62.47%

Percentage change
B. OWNER'S EQUITY
Common size

595,656,044,829
60.21%

Percentage change
1. legal capital
Common size

300,000,000,000
30.32%

Percentage change
2. share premiums
Common size

11,499,917,000
1.16%

Percentage change
4. Treasury stocks
Common size

0
0.00%

Percentage change
6. Foreign exchange difference
Common size
Percentage change
7. Investments and development funds
Common size

97,103,165,531
9.82%

Percentage change
8. Financial reserve funds
Common size

1.28%

Common size
Percentage change
10. Retain earnings( Accumulated
losses)
Common size

86,868,460
0.01%

70,807,587,124
7.16%

Percentage change
II. Other sources and other funds

22,366,828,856

21,760,640,793

70.00%

59,021,201,254

10.00%

70,825,441,505

10.00%

70,825,441,505

10.00%

70,825,441,505

6.44%

84,990,529,806

90,463,919,925

2.18%

3.81%

2.89%

2.73%

2.68%

3.11%

3.11%

#DIV/0!

#DIV/0!

171.23%

20.00%

0.00%

0.00%

20.00%

6.44%

570,558,624,041

672,460,564,322

1,174,870,123,744

1,997,279,210,365

2,396,735,052,438

2,876,082,062,925

3,451,298,475,510

3,673,562,097,333

65.79%

67.39%

75.80%

81.48%

92.26%

108.88%

126.28%

126.28%

-7.68%

17.86%

74.71%

70.00%

20.00%

20.00%

20.00%

6.44%

544,995,909,515

671,637,684,491

1,170,855,106,716

2,011,306,420,196

2,092,325,792,989

2,136,526,234,355

2,172,280,935,423

2,312,175,827,664

62.84%

67.30%

75.54%

82.05%

80.54%

80.88%

79.48%

79.48%

-8.50%

23.24%

74.33%

71.78%

4.03%

2.11%

1.67%

300,000,000,000

300,000,000,000

34.59%

30.06%

25.81%

18.36%

17.32%

17.04%

16.47%

16.47%

0.00%

0.00%

33.33%

12.50%

0.00%

0.00%

0.00%

6.44%

114,994,917,000

114,994,917,000

13.26%

11.52%

18.09%

14.87%

15.44%

15.18%

14.67%

899.96%

0.00%

143.86%

30.00%

10.00%

0.00%

0.00%

(9,703,995,196)

(9,703,995,196)

-1.12%
#DIV/0!
0

400,000,000,000

280,426,411,784

450,000,000,000

364,554,335,319

450,000,000,000

401,009,768,851

450,000,000,000

401,009,768,851

401,009,768,851

426,834,797,965
14.67%
6.44%

105,600,000

-0.97%

0.01%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

-101.09%

0.00%

-100.00%

#DIV/0!

#DIV/0!

#DIV/0!

478,980,000,000

105,600,000

280,763,897

6.44%

450,000,000,000

0.00%

0.03%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

#DIV/0!

#DIV/0!

-100.00%

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

106,631,439,364

111,893,296,513

12.29%

11.21%

9.81%
12,663,506,714

Percentage change
9. Other owner's funds

79.44%

0.00%

0
0.00%

22.96%

2011

16,866,355,009

4.93%
19,457,219,895

127,828,935,642
8.25%
14.24%
27,209,004,541

115,046,042,078
4.69%
-10.00%
42,173,957,039

103,541,437,870
3.99%
-10.00%
46,391,352,742

93,187,294,083
3.53%
-10.00%
46,391,352,742

93,187,294,083
3.41%
0.00%
46,391,352,742

99,188,555,822
3.41%
6.44%
49,378,955,859

1.94%

1.95%

1.76%

1.72%

1.79%

1.76%

1.70%

1.70%

33.19%

15.36%

39.84%

55.00%

10.00%

0.00%

0.00%

6.44%

340,226,757

177,486,882

291,530,458

291,530,458

291,530,458

291,530,458

291,756,517

310,545,637

0.04%

0.02%

0.02%

0.01%

0.01%

0.01%

0.01%

0.01%

291.66%

-47.83%

64.25%

0.00%

0.00%

0.00%

0.08%

6.44%

1,039,134,955,302

1,091,091,703,067

1,145,646,288,221

1,181,400,763,230

1,257,482,972,382
43.23%

15,866,966,581

135,099,523,294

335,204,824,291

1.83%

13.54%

21.63%

42.39%

42.00%

43.37%

43.23%

-77.59%

751.45%

148.12%

210.00%

5.00%

5.00%

3.12%

822,879,831

4,015,017,028

5,018,771,285

25,562,714,526

41

4,516,894,157

3,161,825,910

3,161,825,910

6.44%
3,365,447,498

Lam Son Sugar JSC

Common size

2.26%

Percentage change
TOTAL RESOURCES
Common size
Percentage change

989,289,766,425
100.00%

2011

2.95%

0.08%

0.26%

0.20%

0.17%

0.12%

0.12%

14.29%

-96.78%

387.92%

25.00%

-10.00%

-30.00%

0.00%

6.44%

867,305,615,246

997,928,005,278

1,549,879,533,361

2,451,263,605,617

2,597,722,662,005

2,641,494,368,248

2,732,976,312,950

2,908,979,987,504

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

-12.33%

15.06%

55.31%

58.16%

5.97%

1.69%

3.46%

6.44%

42

0.12%

Lam Son Sugar JSC

2011

Income Statement
6.44%
ITEMS
1. Sale
Common size
Percentage change
2. Less:
Deductions
Common size
Percentage change
3. Net sales
Common size
Percentage change
4. Cost of good
sold
Common size
Percentage change
5. Gross profit
Common size
Percentage change
6. Financial
income
Common size
Percentage change
7. Financial
expenses
Common size

Year 2007
952,815,443,604
100.00%
18.78%

Actual
Year 2008
Year 2009
1,131,771,306,750 1,099,587,215,179
100.00%
100.00%
-2.84%
21.70%

Year 2012
2,057,845,687,481

Forecast
Year 2013
2,565,516,218,583

Year 2010
1,338,243,077,296
100.00%
23.86%

Year 2011
1,657,547,875,539

Year 2014
3,133,778,060,999

24.15%

24.67%

22.15%

6.44%

921,703,601
0.10%
0.10%
951,893,740,003
99.90%
18.90%

2,727,273
0.00%
0.00%
1,131,768,579,477
100.00%
-2.84%

8,571,429
0.00%
0.00%
1,099,578,643,750
100.00%
21.71%

0
0.00%
0.00%
1,338,243,077,296
100.00%
23.86%

0
0.00%
as % of sales
1,657,547,875,539
100.00%
as % of sales

0
0.00%

0
0.00%

0
0.00%

2,057,845,687,481
100.00%

2,565,516,218,583
100.00%

3,133,778,060,999
100.00%

779,690,654,856
81.83%
18.33%
172,203,085,147
18.07%
21.48%

922,580,773,629
81.52%
-5.46%
209,187,805,848
18.48%
8.71%

872,161,855,003
79.32%
-1.37%
227,416,788,747
20.68%
110.20%

860,214,846,740
64.28%
42.59%
478,028,230,556
35.72%
-9.85%

1,226,585,427,899
74.00%
as % of sales
430,962,447,640
26.00%
24.15%

1,522,805,808,736
74.00%

1,898,482,001,752
74.00%

2,318,995,765,139
74.00%

535,039,878,745
26.00%
24.67%

667,034,216,832
26.00%
22.15%

814,782,295,860
26.00%
6.44%

18,234,476,723
1.91%
53.54%

27,997,985,664
2.47%
44.37%

40,420,081,826
3.68%
29.01%

52,144,216,568
3.90%
166.52%

138,972,886,254
42.30%

144,833,627,729
42.30%

168,800,202,333
42.30%

173,277,728,576
42.30%

184,436,814,296
0
0

17,283,571,596
1.81%

98,631,273,049
8.71%

(15,107,839,702)
-1.37%

28,284,907,974
2.11%

19,833,191,685
4.56%
as % of total
liabilities

22,840,126,854
4.56%

22,882,367,644
4.56%

21,404,863,187
4.56%

22,783,336,376
0

2,619,846,180
4.56%
as % of average
short term and
average long term
financial loans
29,172,842,609

2,448,209,829
4.56%

2,326,341,258
4.56%

2,210,566,116
4.56%

2,352,926,574
0

36,218,084,100

45,153,085,447

55,154,493,874

0
58,706,443,279

Percentage change
Including: intersest
expenses
Common size

470.66%

-115.32%

-287.22%

-29.88%

13,998,980,379
1.47%

16,328,528,626
1.44%

15,815,760,756
1.44%

10,052,560,689
0.75%

Percentage change
8. Selling

16.64%
22,595,794,081

-3.14%
18,379,015,227

-36.44%
19,586,392,372

-73.94%
20,678,243,975

43

Year 2015
3,335,593,368,128
0
0
0
0
0
3,335,593,368,128
1
0
2,468,339,092,414
1
0
867,254,275,713
0
0

Lam Son Sugar JSC

2011

expenses
Common size
Percentage change
9.General and
adminsistration
expenses
Common size
Percentage change
10. Operating
profit/(loss)
Common size
Percentage change
11. Other income
Common size
Percentage change
12. Other
expense
Common size
Percentage change
13. Profit/(loss)
from other
acitvities
Common size
Percentage change
14. Net
profit/(loss)
before tax
Common size
Percentage change
15. Current
coporate income
tax
Common size
Percentage change
16. Deferred
coporate tax
Common size

2.37%

1.62%

1.78%

1.55%

1.76%

41.08%

1.76%
Assume 1.76% of
sale

-18.66%

6.57%

5.57%

25,431,302,176
2.67%
18.76%

30,202,326,536
2.67%
69.82%

125,126,894,017
13.13%
-28.09%
61,025,550,990
6.40%
-90.80%

51,289,417,644
4.66%
68.78%

86,564,232,015
6.47%
24.46%

107,740,611,910
6.50%
as % of sales

137,052,522,786
6.66%

171,889,586,645
6.70%

212,470,152,536
6.78%

226,153,230,359
0
0

89,973,176,700
7.95%
135.70%
5,614,456,337
0.50%
211.58%

212,068,900,259
19.29%
86.09%
17,493,613,320
1.59%
-60.07%

394,645,063,160
29.49%
4.70%
6,986,014,376
0.52%
353.18%

413,188,687,690
24.93%
17.08%
31,659,164,423
1.91%
as % of sales

483,762,772,735
23.51%
23.18%
39,304,852,631
1.91%

595,909,379,429
23.23%
17.30%
49,001,359,775
1.91%

699,030,514,839
22.31%
6.44%
59,855,160,965
1.91%

744,048,079,995
0
0
63,709,833,331
0
0

69,421,914,349
7.29%
-97.74%

1,568,470,836
0.14%
1105.45%

18,907,196,752
1.72%
-64.41%

6,729,199,852
0.50%
77.35%

11,934,344,704
0.72%
as % of sales

14,816,488,950
0.72%

18,471,716,774
0.72%

22,563,202,039
0.72%

24,016,272,251
0
0

(8,396,363,359)
-0.88%
-148.19%

4,045,985,501
0.36%
-134.94%

(1,413,583,432)
-0.13%
-118.17%

256,814,524
0.02%
7580.57%

19,724,819,719
1.19%
24.15%

24,488,363,681
1.19%
24.67%

30,529,643,001
1.19%
22.15%

37,291,958,926
1.19%
6.44%

39,693,561,081
0
0

116,507,428,829
12.23%
-19.58%

93,698,225,450
8.28%
126.24%

211,981,556,347
19.28%
85.91%

394,084,353,943
29.45%
9.85%

432,913,507,409
26.12%
17.40%

508,251,136,416
24.70%
23.25%

626,439,022,430
24.42%
17.54%

736,322,473,765
23.50%
6.44%

783,741,641,075
0
0

31,723,563,564
3.33%

17,453,256,474
1.54%

49,020,352,789
4.46%

94,014,137,544
7.03%

117,965,088,762
23.21%

145,396,497,106
23.21%

170,900,446,161
23.21%

181,906,434,894
0

-44.98%

180.87%

91.79%

6.88%

100,479,225,070
23.21%
as % of Net profit
before tax

(2,732,107,680)
-0.29%

3,323,631,697
0.29%

(357,684,538)
-0.03%

(1,400,822,917)
-0.10%

735,952,963
0.17%

864,026,932
0.17%

44

1.76%

1.76%

0
0

0
1,064,946,338
0.17%

1,251,748,205
0.17%

1,332,360,790
0

Lam Son Sugar JSC

Percentage change
17. Net
profit/(loss) after
taxes
Common size
Percentage change

-221.65%

-110.76%

291.64%

-152.54%

82,051,757,585
8.61%
-11%

72,921,337,279
6.44%
124%

163,318,888,096
14.85%
85%

301,471,039,316
22.53%
11%

45

2011

as % of Net profit
before tax

333,170,235,302
20.10%
17%

391,150,074,586
19.01%
23%

482,107,471,662
18.79%
18%

566,673,775,810
18.08%
6%

603,167,566,972
0
0

Lam Son Sugar JSC

2011

Lam Son Sugar Joint Stock Corporation - CASH FLOW STATEMENT

(Indirect method)
For the fiscal year ended 31 December
Actuals
ITEMS
I. Cash flow from
operating activities
1. Profit before tax
2. Adjustments for:
* Fixed asset
depreciation
* Provisions
* Unrealized foreign
exchange differences
* Gain/ (loss) from
investing activities
* Interest expenses
3. Operating income
before movements in
working capital
* (Increase)/ Decrease
in accounts receivable
* (Increase)/ Decrease
in inventories
* (Increase)/ Decrease
in prepaid expenses
* Increase/ (Decrease)
in accounts payable
* Increase/ (Decrease)
in other current
liabilities
* Interests paid
* Coporate income tax
paid
* Other cash inflows
* Other cash outflows
Changes of other cash

Year 2007

Year 2008

Year 2009

Year 2010

Year 2011

Forecasts
Year 2012

Year 2013

736,322,473,765

783,741,641,075

93,698,225,450

211,981,556,347

394,084,353,943

432,913,507,409

66,699,078,789

48,055,502,145

45,440,367,767

42,337,986,346

38,582,010,818

40,619,327,947

43,159,251,213

46,261,767,481

69,371,591,477

818,517,506

80,007,404,703

9,686,278,861

(104,780,208,782)

(122,319,527,406)

(125,394,612,831)

(121,863,646,001)

(129,711,664,804)

6,418,892,406

(41,512,033,494)

1,246,478,587

(1,430,738,155)

(7,448,113,700)

(26,967,298,726)

13,998,980,379
191,822,370,390

218,567,046
(33,983,310,253)

16,328,528,626

15,815,760,756

209,691,624,043

203,963,984,632

2,619,846,180

2,448,209,829

421,068,038,751

369,335,155,624

(129,990,580,294)

82,047,313,766

(86,877,395,862)

(24,930,605,470)

(44,026,994,979)

(84,129,885,935)

2,326,341,258

2,210,566,116

2,352,926,574

662,931,161,361

725,754,494,322

(134,923,297,683)

(152,360,373,628)

(45,732,498,615)

(58,378,584,004)

(59,906,461,530)

(48,019,006,220)

(23,156,448,063)

(5,918,800,463)

(1,511,874,161)

(645,787,148)

(1,425,381,504)

(2,131,673,876)

428,999,146,787

546,530,002,070

(46,900,858,373)

(55,506,927,892)

39,168,665,059

(20,513,748,641)

137,484,530

(4,403,238,950)

(55,675,979,263)

(45,983,251,611)

(53,747,236,130)

94,949,765,142

27,151,070,953

20,945,111,878

12,567,067,127

27,647,547,679

10,683,012,423

(14,399,644,521)

(16,543,193,413)

(16,004,675,928)

(9,607,792,605)

(2,619,846,180)

(2,448,209,829)

(2,326,341,258)

(2,210,566,116)

(2,352,926,574)

(15,708,416,493)

(33,948,253,692)

(1,480,818,918)

(99,973,611,037)

(99,743,272,107)

(117,101,061,830)

(144,331,550,768)

(169,648,697,955)

(180,574,074,104)

4,774,345,862
(3,571,547,660)

51,448,978,590

10,052,560,689

626,439,022,430

Year 2015

116,507,428,829

(35,508,957,031)

508,251,136,416

Year 2014

(6,751,648,619)
795,104,594

9,145,718,365

1,560,365,213

(14,019,768,678)
(4,874,050,313)

(3,655,376,462)
(2,095,011,249)

(23,258,987,286)

46

342,813,726,396

411,503,763,463

Lam Son Sugar JSC

inflows/ (outflows)
Net cash flow from
(used in) operating
activities
II. Cash flow from
investing activities
1. Acquisition of fixed
assets and other longterm assets
2. Proceeds from fixed
assets and other longterm assets disposal
Changes of fixed
assets (1+2)
3. Cash outflow for
lending, buying debt
instruments of other
companies
4. Cash recovered
from lending, buying
debt instruments of
other companies
5. Investment in other
entities
6. Cash recovered
from investment in
other entities
Changes of
investments in other
entities(5+6)
7. Interest income,
dividends and profit
paid
8. Other investing
activities
Net cash flow from
(used in) investing
activities

1,202,798,202

99,646,419,531

(20,161,510,031)

27,918,959,531

(35,927,181,686)

176,128,676,972

(47,072,298,060)

65,017,386,552

1,171,885,071

8,688,793,777

44,855,876,521

(34,755,296,615)

(38,383,504,283)

(218,600,000,000)

219,000,000,000
(164,181,840,000)

(23,376,400,000)

77,600,000,000
(54,367,550,000)

(48,906,870,350)

18,653,789,093
(6,678,840,000)

25,000,000

10,218,855,814

2.39%

0.00%

0.93%

(141,454,455,600)

(54,342,550,000)

3,540,015,814

25,939,725,389

31,992,281,357

22,727,384,400

11,978,308,103

(84,220,270,976)

(8,934,521,226)

(33,104,288,369)

(23,258,987,286)

(369,689,883,969)

144,126,341,266

325,869,898,269

2011

184,319,108,450

216,860,689,886

509,463,113,132

533,677,090,590

315,807,009,016

336,144,980,396

(191,542,337,439)

336,144,980,396

5,681,790,519
(185,860,546,920)

(203,574,034,339)

(32,152,724,053)

(38,520,481,521)

(58,156,859,326)

(36,467,956,803)

(1,189,768,117)

53,847,137,270

(20,796,620,000)

(154,718,689,875)

(13,855,180,793)

(56,658,568,804)

(10,585,168,422)

(26,380,817,306)

91,710,180,200

42,142,575,713

53,128,627,465

82,780,157,232

119,114,123,523

101,334,049,862

6.85%

2.54%

2.58%

3.23%

70,913,560,200

(112,576,114,162)

39,273,446,672

26,121,588,427

108,528,955,101

74,953,232,556

37,160,844,596

1,384,823,164,526
(66,436,682,210)

(125,483,466,458)

(91,141,279,102)

(81,879,994,487)

(59,315,959,590)

(137,882,359,552)

(40,769,183,327)

(43,394,718,733)

(25,128,772,971)

III. Cash flow from

financing activities

47

1,068,673,016,025

3.80%

3.04%

Lam Son Sugar JSC

1. Proceeds from
issuing stock,
receiving capital from
owners
2. Capital withdrawal,
buying back issued
stocks
3. Proceeds from
borrowings
4. Repayments of
borrowings
Changes in
borrowings (3+4)
5. Dividends paid
6. Other financing
activities
Net cash flow from
(used in) financing
activities
Net increase/
(decrease) in cash
and cash equivalents
Checking the changes
of cash
Cash and cash
equivalents at
beginning of year
Effect from changing
foreign exchange rates
Cash and cash
equivalents at end of
year

51,148,000,000

177,543,526,108

(9,703,995,196)

275,135,489,980

205,037,636,469

313,274,305,407

(231,087,755,684)
24%

(223,644,015,943)
20%

(302,849,205,955)
28%

(53,544,229,576)

(18,606,379,474)

10,425,099,452

2011

206,497,209,317

224,981,785,707

264,144,153,242

265,560,196,997

283,038,195,822

301,265,855,633

(247,010,783,034)
18%

(373,004,641,077)
23%

(454,083,478,694)
22%

(580,892,436,442)
23%

(484,868,404,607)
21%

(516,093,929,864)

(40,513,573,717)

(148,022,855,370)

(189,939,325,452)

(315,332,239,445)

(201,830,208,786)

(214,828,074,231)

(10,028,669,930)

(93,930,334,400)

(23,394,895,666)

(50,478,099,000)

(589,810,880,884)

20,131,348,269

(9,883,194,184)

(250,847,079,797)

(35,976,736,386)

(12,424,899,506)

(122,240,709,070)

(12,969,796,214)

184,143,817,263

(737,833,736,254)

(169,807,977,183)

(325,215,433,629)

(452,677,288,583)

(250,804,810,618)

3,001,249,049

(103,256,270,765)

303,141,385,558

656,709,178,041

(44,804,828,323)

(246,237,103,296)

(177,639,462,894)

41,945,451,045

656,709,178,041

(44,804,828,323)

(246,237,103,296)

(177,639,462,894)

41,945,451,045

463,299,096,059

1,120,008,274,100

1,075,203,445,776

828,966,342,480

651,326,879,586

130,330,949,603
(6,175,701)

133,326,022,951

130,054,592,389

133,326,022,951

30,070,979,170

1,226,984

32,138,942

30,070,979,170

160,157,710,501

160,157,710,501
-

463,299,096,059

48

1,120,008,274,100

1,075,203,445,776

828,966,342,480

651,326,879,586

693,272,330,632

Lam Son Sugar JSC

2011

Valuation of Lam Son Sugar Joint Stock Corporation using Free Cash Flow to Common
Equity Shareholders through year 2011 and beyond
Continuing Value
2011

Free cash flow for common equity

2012

2013

2014

2015

Net cash flow from operation

325,869,898,269

184,319,108,450

216,860,689,886

315,807,009,016

336,144,980,396

Cash required for operations

(525,456,097,929)

38,961,705,955

141,812,345,467

90,438,170,105

96,262,388,260

Net cash flow from investing

1,068,673,016,025

(59,315,959,590)

(137,882,359,552)

(40,769,183,327)

(43,394,718,733)

Net cash flow from debt financing

(148,022,855,370)

(189,939,325,452)

(315,332,239,445)

(201,830,208,786)

(214,828,074,231)

Net cash flow into asset financing

Net cash flow for preferred stock

Free cash flow for common equity

721,063,960,995

Present value factor

0.827951648

Present value of free cash flow

Sum of present value of free cash flow from year 2011 through year
2014

597,006,094,548

Present value of continuing value in year 2015 and beyond

570,795,371,099

Total present value of common equity

1,173,237,180,190.72

(25,974,470,637)
0.685503931
(17,805,601,722)

602,441,809,092

Number of share outstanding

50,000,000,000

Value of each share

23.46

Current share price

20.5

Percentage difference

-12.63%

underpricing

49

(94,541,563,645)
0.567564109
(53,658,398,330)

163,645,787,008
0.469915639
76,899,714,596

174,184,575,692

Lam Son Sugar JSC

2011

Depreciation Calculation
Year

Annual

Capital expenditures

Ending Balance

2010

1,338,243,077,296

2011

1,657,547,875,539

49,726,436,266

1,169,123,207,537

2012

2,057,845,687,481

61,735,370,624

2013

2,565,516,218,583

2014

3,133,778,060,999

Depreciation

1,119,396,771,271

Accumulated

Ending

-908,576,267,953

210,820,503,318

38,582,010,818

-947,158,278,771

221,964,928,766

1,230,858,578,162

40,619,327,947

-987,777,606,718

243,080,971,444

76,965,486,557

1,307,824,064,719

43,159,251,213

-1,030,936,857,931

276,887,206,789

94,013,341,830

1,401,837,406,549

46,261,767,481

-1,077,198,625,412

324,638,781,137

2010 Depreciation expense

-36,048,140,474

average useful life

30.3

50