Business Environment Presentation

PHU NHUAN JEWELRY JOINT STOCK COMPANY

TABLE OF CONTENTS
I/ Introduction II/ Internal Business Environment III/ External Business Environment IV/ Input Factors V/ Output Factors VI/ Plan for production activities VII/ Process of making gold jewelry VIII/ Marketing Activities

COMPANY PROFILE 2010

History
March, 2009 Officially listed shares on HOSE

January, 2004 Became PhuNhuan Jewelry Joint Stock Company.

1992 Officially renamed as PhuNhuan Jewelry Company PNJ.

28/4/1988 Found as PhuNhuan Jewelry Trading Store.

Type of Business

Business activities for gold, silver, precious metals, precious and semi -precious stones, jewelry, precious metal raw materials, souvenirs, handicrafts and fine art, fashion items and fashion accessories Export and import of gold jewelry and fine art in gold, silver and other precious metals, diamonds, precious and semi-precious stones, gold bars, gold material. Export and import jewelry, imitation jewelry

Type of Business

Production and processing jewelry, production of ferrous metals and precious metals, gold bars. Sales of machinery and equipment of jewelry sector

Type of Business
Diamonds

and gemstones testing services, inspection services of gold, silver, other precious metals, semi-precious stones Pawn service Foreign currency exchange, receipt and payment of foreign currency service Trading in real estate Trading in restaurants and other related services Trading in motorbikes, cars and other related services Transporting by road Vocational service

Vision Becoming the leading jewelry fashion brand, with core attributes being Creativity, Fineness, and Reliability.

Mission
Enhancing customers satisfaction, by diversifying products and services at highest quality and reasonable price, by advancing management and manufacturing system, and improving craftsmens skills. Objectives PNJ's targets are to become a leading jewelry producer and retailers in Vietnam market, to increase the export sales of jewelry four times by the end of the tenure, to achieve the annual growth rate of jewelry sales 20% and to increase the profit of main business 15% per year.

Company Products
Phoenix PNJ-DongA Bank Gold Bar PNJ Gold PNJ Silver CAO Fine Jewelry Jemma Yabling

Phoenix PNJ - DongA Bank Gold Bar

Available on the market since 1988 under the name Phoenix PNJ gold bar. April, 2008: new models between PNJ and DongA Bank DAB hit the market. Has four different types of weight appropriate to the customers needs of usage: 1 tael, 5 chi, 2 chi, 1 chi

 Established: 1988

Target customers: mostly

females 25 55 years old with class B and higher income Products: Jewelry attaches gemstones / semi-precious made from 24K 18K, 14K, 10K gold.

 Establiashed: April, 2001. Target customers: mostly females 15 25 years old. Products: Fashion silver jewelry made from pure

 Established: June, 2005. By August

2009, CAO became an independent

company, a subsidiary of PNJ.

Target customers: successful

businesswomen 30 - 45 years old with style, elegance and confidence

Products: Luxury jewelry with unique &

sophisticated design and manufactured from materials carefully selected by top professionals.

Established: December 2009, Jemma

is under the management of CAO company Target customers: Female officers with

class B or higher income, 25 - 35 years

old with dynamic, style, confidence & bravery.
Products:
Fashion jewelry with various materials: silver
attaches semi-precious stones, alloy, etc. Stylish accessories, young designs with fresh & new color : wallet, handbags, brochette, hairpin, etc.

Establiashed: 2011 Target customers: youth females 15 25 years old. Products: jewelry and accessories for the youth

Internal business environment

Management structure of PNJ Laborers

Company structure
SHAREHOLDERS
CONTROL BOARD

BOARD OF DIRECTORS

GENERAL DIRECTOR
REPRESENTATIVES LEADERSHIP (ISO)

DEPUTY GENERAL DIRECTOR OF BUSINESS

DEPUTY GENERAL DIRECTOR OF FINANCE

DEPUTY GENERAL DIRECTOR OF TECHNOLOGY

DEPUTY GENERAL DIRECTOR OF INVESTMENT

SALES DEPT.

ACCOUNTING DEPT.

QUALITY CONTROL DEPT.

HR DEPT.

GOLD TRADING DEPT. IT DEPT. IMPORT/EXPORT DEPT. INTERNAL CONTROL PNJ APPRAISAL CENTER DEPT. COMPANY SECRETARY PNJ JEWELRY FACTORY MARKETING DEPT.

DESIGN DEPT.

ADMINISTRATION DEPT.

CAO COMPANY

EMPLOYEES Total employees : 2261 people

Standard income per person

6.1 million VND per month EMPLOYMENT POLICY Short term and long term training programs Social insurance, medical

insurance and other

requirements as stipulated by law Stable jobs and suitable compensation according to ability. Opportunity to improve professional skill abroad

External business environment

Customers
Favorable factor

Unfavorable factor

Customers
Based on the classification of customers age and income, PNJ presented suitable brands for each group.

Favorable factors
With 20 years experience in production of silver and gold jewelry, PNJs brands are well-known to the consumers and are considered a strong trademark of Vietnam

Favorable factors

Unfavorable factors

Materials: Fluctuation of the prices of

input raw materials has a great impact on the companys development strategy

Unfavorable factors
Legal: The change of
policies and laws may occur and could affect the business conditions of the enterprise

Market: The competition of others

companies in both domestic and foreign

Input Factors

Raw material Machines and Technologies

RAW MATERIAL

Output Factors

Process of making gold jewelry

design carved wax model

attach sprue to the wax

attach the sprued wax to the rubber base by using investment flask

casting process

burn out the flask to create a hollow replica of the original wax

debubblize the investment slurry for the precasting process

polish and clean

Plan for production activities

Raw materials Laborers

? The price has fluctuated abnormally the amount of storing gold should be equal to the order keeping balance the gold in store of company with the borrowed gold.

? Scarcity of skilled laborers building a strong workforce since they are still at colleges extra income from periodic awards and awards for completing plans

Marketing Activities

Market research Advertisement Public Relations (PR) Marketing Online System development

Market Research :
Cooperating with companies specializing in market research The Market Research Department also study the consumer's behavior with regard to each brand.

Advertisement:
Special occasion such as New Year, Valentines Day, International Women's Day, and Wedding seasons Via various media means: television, press and online marketing.

Public Relations
Community sponsorship, social activities
International activity: PNJ was the Official Jewelry Sponsor for the Miss Universe Contest 2008 and Miss Earth 2010 held in Vietnam

Marketing Online:
http://www.pnj.com.vn http://www.facebook.com/PNJ.COM.VN http://forum.pnj.com.vn/forum.php

new product collections fashion trends of the year information on promotions instructions for buying products online

Thank you for listening