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Report[12/24/2011 11:14:36 AM]
We are one of Vietnam’...
Report[12/24/2011 11:14:36 AM]
Masan Consumer ...
Report[12/24/2011 11:14:36 AM]
Employ and incentivize a world-class exp...
Report[12/24/2011 11:14:36 AM]
Masan Consumer Acquires 50.11% of V...
Report[12/24/2011 11:14:36 AM]
… combined with increasingly efficient w...
Report[12/24/2011 11:14:36 AM]
Audited Financial Statements
Audited Fin...
Report[12/24/2011 11:14:36 AM]
Report[12/24/2011 11:14:36 AM]
Report[12/24/2011 11:14:36 AM]
Historically, Vi...
Report[12/24/2011 11:14:36 AM]
The packaged food and beverage market is...
Report[12/24/2011 11:14:36 AM]
Coming soon...
Report[12/24/2011 11:14:36 AM]
Dr. Pham Hong Son
Manufacturing Director...
Report[12/24/2011 11:14:36 AM]
Nguyen Tuan Viet
Marketing Director
Report[12/24/2011 11:14:36 AM]
Our branding and marketing stra...
Report[12/24/2011 11:14:36 AM]
We operate five distribution centers, st...
Report[12/24/2011 11:14:36 AM]
One of only a few co...
Report[12/24/2011 11:14:36 AM]
employees tasked with improving the rang...
Report[12/24/2011 11:14:36 AM]
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Masan Consumer Qwik Report


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Masan Consumer Qwik Report

  1. 1. Report[12/24/2011 11:14:36 AM] ABOUT US OVERVIEW We are one of Vietnam’s largest consumer products companies with leading market share positions in the condiments and convenience food categories. We have grown our product portfolio, domestic sales and distribution channels since 2000 to become a leader in Vietnam’s branded consumer food market in both the premium and mass-market segments. Our key brands include Chin-su (soya, fish and chili sauces), Tam Thai Tu (soya sauce), Nam Ngu (fish sauce), and Omachi and Tien Vua (instant noodles). With a reputation for quality, we are well-placed to expand our presence in other high-growth packaged food categories. Building upon our success in the food industry, we also plan to diversify our operations into other "fast moving consumer goods”, including beverages. To this end, in March 2011, we transformed Masan Food into a consumer platform and grouped our food-related businesses within a newly formed, 100%-held entity called Masan Food. Our business has grown considerably over the past several years, with particular success in our condiments and instant noodles segments. Our revenue and net profit have grown from VND571bn and VND29bn in 2006 to VND5,586bn and VND1,253bn in 2010, respectively, representing respective compounded annual growth rates of 76.9% and 156.7%. At Masan Consumer, our vision is to be: Vietnam’s leading consumer company by sales, profitability and brand recognition The destination for top talent and recognized as the best workplace in Vietnam The symbol for quality and a source of pride among Vietnamese HISTORY       
  2. 2. Report[12/24/2011 11:14:36 AM] STRATEGY SECTOR STRATEGY Masan Consumer deploys a strategic framework in deciding "where to play”. Our sector selection criteria include: Food and beverage categories where the market opportunity is large and there is a potential market size of at least US$500 million Markets where we have the ability to build a premium brand and generate high margins (typical gross margins of at least 30%) Competitive landscapes where the market is dominated by state owned enterprises or is fragmented and there is a clear path to consolidation Markets where we can create value by product localization, through focusing on local taste and health EXECUTION STRATEGY Our execution strategy is to: Come to market with a differentiated product Create a premium brand and launch with a strong marketing effort Leverage our extensive distribution platform and premium brand equity to penetrate mass market segments
  3. 3. Report[12/24/2011 11:14:36 AM] Employ and incentivize a world-class experienced management team by making them stakeholders in the business FINANCIAL STRATEGY We have a disciplined financial strategy. We: Aim to achieve 30%+ gross margins which allows us to maintain our strong marketing strategy and reinvest in acquiring and consolidating business platforms to achieve a sustainable leadership position Deploy low capital expenditure - we have an asset light entry strategy for new categories in order to focus on generating a 25%+ ROE Maintain a conservative balance sheet with leverage below 3x debt/EBITDA ratio in order to adhere to the standards of a BBB credit rated company Use a "cash on delivery” model, enabling us to optimize our working capital position and help fund our growth GROWTH STRATEGY We are focused on growing this platform to enable us to become a market leader: In our existing categories, we focus on shifting consumers to premium brands and changing consumer behavior towards higher consumption We enter into high growth adjacent categories by leveraging premium brand halo and an underleveraged platform We enter into new attractive categories that fit our sector strategy through inorganic growth OUR PARTNERS SHAREHOLDERS INVESTOR CENTER
  4. 4. Report[12/24/2011 11:14:36 AM] NEWS Masan Consumer Acquires 50.11% of Vinacafe Shares 13 October 2011 Masan Group Raises US$159 Million with 10% Sale of Masan Consumer to KKR The Largest Ever Private Equity Transaction in Vietnam 1 January 2011 EARNINGS RELEASE CORPORATE PRESENTATIONS 2010 Annual Report 25 April 2011 2009 Annual Report 29 April 2010 COMPANY RESEARCH NEWS PRESENTATIONS & REPORTS FINANCIAL INFORMATION With robust bottom line growth, combined with increasingly efficient working capital management, Masan can attain high levels of cash conversion and generate strong cash flow. Robust bottom line growth …
  5. 5. Report[12/24/2011 11:14:36 AM] … combined with increasingly efficient working capital management ... … allows Masan to attain high level of cash conversion and generate strong cash flow
  6. 6. Report[12/24/2011 11:14:36 AM] Audited Financial Statements Audited Financial Statement 2010 Audited Financial Statement 2009 AWARDS AND RECOGNITION 2010
  7. 7. Report[12/24/2011 11:14:36 AM] 2009
  8. 8. Report[12/24/2011 11:14:36 AM] 2008 2006 2005
  9. 9. Report[12/24/2011 11:14:36 AM] VIETNAM FOOD & BEVERAGE Historically, Vietnam relied primarily on agriculture as a source of output, but has shifted towards a more market-oriented economy since the initiation of the "Doi Moi” (renovation) socialist-economic reform in 1986 and joining the World Trade Organization in 2006. These market liberalizations have helped Vietnam become one of the fastest growing economies in the region with an annual GDP growth rate (CAGR) of 19.6% between 2005 and 2009. The Vietnamese population has benefitted from the strong economic growth. Their increasing affluence has stimulated consumer spending per capita, which rose by a CAGR of 19.7% between 2005 and 2009. The Vietnamese economy is projected to be one of the fastest developing economies in Asia, largely propelled by having: One of the youngest demographic profiles in Asia with high trainability; 68% of the country’s approximately 89 million people are under 40 years of age The second-largest real GDP growth in the region over the past 10 years with average growth of 7.2% One of the world’s leading markets for consumer confidence with retail sales CAGR of 14.0% over 10 years and private consumption accounting for 64.3% of GDP in 2010 An investment-intensive economy with investments accounting for 41.9% of GDP in 2010 Continued commitment from global investors with FDI disbursement increasing by 10% to US$11 billion in 2010 Structural reforms that have improved Vietnam’s business environment and have supported growth in foreign and private investment A Generous endowment of natural resources including oil, minerals and productive land Political stability and openness to foreign direct investment The Vietnamese economy recovered strongly in 2009 from the global financial crisis with real GDP growth of 5.3% per annum, the third fastest in Asia after China and India. Looking forward, Vietnam is expected to achieve stable real GDP growth rate of 6.9% in 2011, underpinned by strong growth in consumption, investment and exports coupled with measures undertaken by the State Bank of Vietnam to curtail inflation.
  10. 10. Report[12/24/2011 11:14:36 AM] The packaged food and beverage market is expected to grow to US$16 billion by 2015, from US$12 billion in 2010. Currently, local and regional companies control the market with a market share of ~80%, driven by consumers’ preference for local products. The consumer goods sector in Vietnam is under penetrated; on a per capita basis, spending on packaged foods and beverage is still relatively low compared to its emerging market peers. This is expected to grow as GDP per capita rises. In addition, other key growth drivers include: A shift from unbranded to brand products The emergence of modern trade; A continued shift to premium products Increasing demand for packaged/convenience foods The rise of cold supply chain BEVERAGES ASIAN SPECIALTY DRINKS Coming soon ....
  11. 11. Report[12/24/2011 11:14:36 AM] INDUSTRY REPORTS Coming soon... OUR PEOPLE Truong Cong Thang Chief Executive Officer Truong Cong Thang joined Masan Consumer in 2002 as Deputy General Director, and has served as CEO since 2008. Prior to joining Masan Consumer, Thang spent six years at Procter & Gamble Vietnam as Marketing Director where he successfully launched some of their global brands in the Vietnamese market.   At Masan Consumer, Thang has steered the company towards developing its domestic business and focusing its investment in building premium brands.   Thang graduated from Hanoi National Economics University. Castillo Santos Chief Operation Officer Castillo Santos is a production and supply chain expert with 31 years’ experience, including 14 years at Unilever Vietnam. He joined Masan Consumer in 2008 and oversaw the expansion of our production facilities, including the installation of the world’s first fully-automated fish sauce production line.   Castillo has a Bachelor of Science degree in Chemical Engineering from the University of the Philippines. Pham Dinh Toai Chief Financial Officer Pham Dinh Toai joined Masan Consumer in 2009 and is currently our Chief Financial Officer and a board member. Prior to joining Masan Consumer, Toai was Financial Analysis Director at Unilever Bestfoods Vietnam from 2002 to 2005, and Finance and Accounting Director at Unilever Vietnam from 2005 to 2009.   Toai has a Bachelor’s degree in Corporate Finance and Accounting from the University of Finance and Accounting in Vietnam. He also has a Bachelor’s degree in Information Technologies from Vietnam’s University of Technical Education.
  12. 12. Report[12/24/2011 11:14:36 AM] Dr. Pham Hong Son Manufacturing Director Dr. Pham Hong Son joined Masan Consumer in 2000 and is a board member. In addition to serving as our Manufacturing Director, Dr. Son is the General Director of Masan Industrial, our primary manufacturing facility located in Binh Duong province. He has also served as General Director of our other manufacturing subsidiary.   Dr. Son has a Bachelor of Science from Kharkov Polytechnic Institute, Ukraine, where he studied in the Faculty of Transportation Machine Engineering. He also holds a PhD in Engineering from Kansai University in Japan, where his laboratory focused on Fluid Dynamics & Biomechanics. Le Thi Nga Director of Masan Life Science Le Thi Nga currently is the Director of the Masan Food Life Science Team. She is also a board member of Masan Consumer. Prior to joining the company in 1997, Nga spent seven years as a Technical Supervisor at the Nam Duong Sauce Company, and three years as a Manufacturing Director at Viet Tien Food Company. She was also a Director from 2000 to 2002 at Viet Tien Food Processing Joint Venture Company, and a Research and Development Director from 2003 to 2007.   Nga has a Bachelor of Science in Food Technology specialising in the technology of microbiological processing from the Moscow Technological Institute of Food Industry. Nguyen Thi Thu Ha Supply Chain Director Nguyen Thi Thu Ha is a supply chain expert with 14 years of experience. Prior to joining Masan Consumer, Ha has held a variety of senior positions, including Planning Diretor, Supply Chain Manager and Logistics Manager across various companies, such as Tan Hiep Phat, Unilever, Effem Foods, Novatis Pharma and Procter & Gamble.   Ha has a Bachelor of Arts degree in Foreign Trade from University of Economics, Ho Chi Minh City. Ho Bao Long Chief Customer Officer Ho Bao Long brings his 16 years of experience with various multi-national food and beverage corporations to Masan Consumer. Prior to joining Masan Consumer, he held various senior positions, including Sales Manager, Sales Director at Unilever Vietnam, Johnson and Johnson Vietnam, and Kimberly Clark Vietnam. Long holds a MBA from University of Florida, U.S.
  13. 13. Report[12/24/2011 11:14:36 AM] Nguyen Tuan Viet Marketing Director Prior to joining Masan Consumer, Nguyen Tuan Viet had established a strong & solid background with Unilever Vietnam in the past 9 years. He had been with various strategic and well-loved brands such as Senior Brand Manager for P/S, Group Brand Manager for Sunsilk, Group Brand Manager for total Omo and is the name behind many successful innovations and campaigns of these brands. Viet graduated from University of Economics, major in Foreign Trade.   Truong Hoang Long Human Resources Director Truong Hoang Long has more than 14 years’ experience in Human Resources. He has worked across a range of industries for companies that include Maersk, Mead Johnson and Unilever. Before joining Masan Consumer, Long was the HR Director of the Vietnam office of Computer Sciences Corporation (CSC), the world’s third largest software development company. There, he managed all HR activities for the company’s 650 employees and was instrumental in reducing staff turnover by 17% in two years.   Long holds a Master’s of Management from Ho Chi Minh Open University and Solvay Business School of Belgium. OUR PRODUCTS FISH SAUCE SOYA SAUCE CHILI SAUCE INSTANT NOODLES BUSINESS MARKETING
  14. 14. Report[12/24/2011 11:14:36 AM] OVERVIEW Our branding and marketing strategies have been instrumental to the success of our business. As at December 31, 2010, our marketing department consisted of 45 full-time employees divided into two groups: brand development and market operations. BRANDING STRATEGY We have adopted an umbrella brand strategy to reach a broad range of consumer groups. Each of our principal product lines has a premium brand ( Chin-su brand for sauces and the Omachi brand for instant noodles) and a mass-market brand (Nam Nu brand and Tam Thai Tu for sauces and Tien Vua for noodles), meeting the demands of customers of different levels of affluence. The introduction of product variants further permits us to sell to consumers in different regions and with varying tastes. We actively defend our brands from infringement and reselling by third parties. We also monitor the products of our competitors through our distribution network. Should we learn of material infringement of our trademarks, we will take all necessary steps, including legal action, to protect our brand image. MARKETING STRATEGY Our primary means of reaching our target consumers are television advertisements, which are generally 15 or 30 second commercial spots that focus on the health benefits, taste and affordability of our products. In 2010, Masan Consumer had more than 21,700 television commercial spots nationwide. To reach rural consumers, we advertise through more than 16 newspapers and magazines with a combined circulation of approximately nine million copies in 2010, reaching more than 61% of our customer base. We also advertise through radio, building banners, bus stops in key cities and advertisement spreads on the sides of buses. Additionally, we market our products with a variety of other activities such as outdoor campaigns and in-store promotion events. PRODUCT MANAGEMENT STRATEGY Our product management strategy has been fundamental to our success. We manage our current portfolio of brands by product segment and, within each product segment, by target market. We have a common branding strategy, for instance, using Chin-su as an umbrella brand for premium soya, fish and chili sauces. This maximizes the value of our brands, establishes a reputation for premium quality across our products, and generates economies of scale in advertising and promotion. SALES AND DISTRIBUTION OVERVIEW We have developed a pan-national distribution network with over 141,000 points of sale, covering all of Vietnam’s 64 provinces. Our network includes all major modern trade channels, such as hypermarkets, supermarkets, and convenience stores, as well the traditional, primarily independent local operators. At the end of 2010, we had established exclusive relationships with 168 distributors and 1,453 dedicated salesmen throughout Vietnam.
  15. 15. Report[12/24/2011 11:14:36 AM] We operate five distribution centers, strategically located in the Binh Duong, Tan Binh, Da Nang, Hung Yen and Hai Duong provinces to provide our distributors with products within 24 hours of an order being placed. These distribution centers collectively handled 455,000 pallets in 2010. To support our distributors throughout Vietnam, we provide them with regional exclusivity and work closely with them to ensure the effectiveness of their sales force and smooth coordination. DISTRIBUTION MAP The map and table below show the location of the distribution centers throughout Vietnam and provides a summary of the number of distributors, salesmen and points of sale by region as of December 31, 2010: Same day delivery of our entire product portfolio anywhere in the country
  16. 16. Report[12/24/2011 11:14:36 AM]   DISTRIBUTION FLOW One of only a few companies with direct outreach to rural areas LIFE SCIENCE OVERVIEW Our in-house research and development team, Masan Consumer Life Science is comprised of approximately 50
  17. 17. Report[12/24/2011 11:14:36 AM] employees tasked with improving the range and quality of our products. The Life Science team works closely with our marketing team to develop products that meet the demands of Vietnamese consumers, such as the Omachi dry noodles with spaghetti sauce that we introduced in 2010 to target customers in the premium segment. Masan Life Science aims to enhance Masan Consumer’s competitive position and reputation as one of the most unique and effective food companies in Southeast Asia by providing high value and superior quality products. Masan Consumer’s ability to innovate is evidenced by numerous successful developments, which include: "Low-salt” Chin-su sauce "No-urea” Nam Ngu sauce "Zero trans-fat oil” and "No color chemical dyes” for Tien Vua noodles Omachi noodles mixed with spaghetti sauce Masan Life Science Center is one of the most advanced R&D centers in Vietnam. The Life Science division has developed seven new formulas to date that do not exist in the seasoning processing industry, and has the capability to launch approximately 30 new products each year. NEAR TERM OBJECTIVES PRODUCTION We currently operate four production facilities, at Binh Duong, Tan Binh, Phu Quoc and Hai Duong, with a total of 23 production lines. These facilities allow us to manufacture products with consistent taste and texture, further strengthening the quality of our brands. We are expanding our Binh Duong facility to accommodate the increase in sales volume we have experienced since 2007 and we expect that it will become our principal production facility in 2011 once the expansion is completed. The initial phase of this expansion was completed in 2010 and was dedicated to automating the fish sauce production line. An additional facility in Hai Duong was completed in June 2009 and production of instant noodles commenced in 2009. We do not engage in contract manufacturing or outsourcing of our production to third parties. This enables us to keep strict control over the quality and output of our sauce and instant noodle products. The table below provides an overview of each of our facilities:
  18. 18. Report[12/24/2011 11:14:36 AM] MATERIAL PROCUREMENT ORGANIZATION (MPO) KEY RAW MATERIALS For sauces: anchovies, dehydrated vegetables, soy, chilies, and various flavorings and spices For instant noodles: flour, palm oil, dehydrated vegetables, and various flavorings and spices Packaging materials such as paper labels, carton boxes, polypropylene or paper-based cups/bowls, plastic bags and glasses are significant components in the production cost PROCUREMENT STRATEGY Our purchasing department (MPO) at our Ho Chi Minh City headquarters is responsible for sourcing and negotiating with suppliers for all of our raw materials. Our subsidiaries then enter into the agreements with our suppliers negotiated by the purchasing department. Our purchasing department is also responsible for developing and maintaining the optimal number of reliable suppliers to meet our requirements. The department currently procures raw materials from over 60 suppliers under long-term contracts to ensure consistency and high quality. Suppliers whose long-term performance record with us demonstrates reliability are considered "approved suppliers” and will continue to be engaged under long-term contracts. This strategy helps us to minimize the risk of working with suppliers who under-perform by missing deliveries, supplying materials of inconsistent quality or that are not in conformance to specifications, or unexpectedly increasing prices. [back to top] Contact Us | Media | Sitemap | Privacy Policy | Legal Notice | Qwik Report | © 2011 Masan Group. All rights reserved