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PPG VIETNAM COMPANY
Friday, 10 June 2011
LIMITED
MORE Credit Rating D C CC CCC B BB BBB A AA AAA
key

Company name PPG VIETNAM COMPANY LIMITED
Identification number mFCR0004136
If you want to know more, ASKMORE
TM Country Vietnam
modeFinance’s credit report. ZIP code and city - Ho Chi Minh City
Address Flr 17, Fedeco Tower, Unit 1701, 81 - 85 Ham Nghi Str, Nguyen Thai Binh
Ward - District 1 - Ho Chi Minh City - Vietnam
Almost every day millions of people
around the world are wondering the real (84 - 8) 38233014 / 38233013 / 38274182 / 38272332
creditworthiness of the companies with http://www.ppg.com
which they are in business. Every day
these questions remain unanswered. ppgvn@hcm.vnn.vn
Legal form Foreign invested company
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modeFinance now aims to answer these
questions in a simple, complete and
Account Unconsolidated
immediate way.
Incorporation date 2000
TM TM

ASKMORE is the modeFinance NACE 2 Sector 2030 - Manufacture of paints, varnishes and similar coatings, printing ink
product which gives the chance to
and mastics
evaluate the credit risk for every company
from all around the world. Listed
Status Active
MORE Credit limit 120,000 e
TM

ASKMORE plans 2 types of reports:

31/12/2009 31/12/2008 31/12/2007

Basic Plus
Turnover (th e) 4,663 3,672 -
TM Rating CCC CC C
ASKMORE Basic:
Probability of default 15.00% 41.00% 65.00%
TM

This report includes modeFinance ’ s
MORE Credit Ratings and MORE Credit Confidence Level 100% 100% 50%
Limit to help you in the decision making.
It covers all essential information including
financial statements of the last three years Solvency ratios
and descriptive information including trade
Leverage ratio -3.17 -3.45 -3.23
description and sector analysis.
This report type is ideally suited for Total asset/Total liabilties 0.68 0.71 0.69
decisions on transactions with each level
of credit risk.
Liquidity ratios
Current Ratio 0.54 0.54 0.54
Quick Ratio 0.24 0.23 0.21

Profitability and economic equili-
brium ratios
Return on investement ROI (%) -6.00 -13.94 -
Return on equity ROE (%) -13.59 -37.25 -
Asset turnover 1.48 1.10 -
Interest paid weight 0.00 -0.09 -
Gross Profit/Operating revenue 0.25 0.19 -

Interest Coverage ratios
EBIT interest coverage ratio +Inf -1.19 -

Analysis and trend of financial
strength
modeFinance Headquarter
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Building A - AREA Science Park
Padriciano 99 - 34149 Trieste - Italy
Ph.: +39 040 375 5337
Fax: +39 040 375 6741
info@modefinance.com
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askMORETM is a registered mark of modeFinanceTM
not non return extremly pathological high weak sufficient adequate good very extremely
available pathological danger strong strong

PPG VIETNAM COMPANY
LIMITED
key

Sector Analysis

Company Healthy Balanced Vulnerable Risky
Solvency ratios
Leverage ratio -3.17 0.46 1.10 3.22 9.84
Total asset/Total liabilties 0.68 3.18 1.90 1.29 1.06

Liquidity ratios
Current Ratio 0.54 2.64 1.56 1.13 0.80
Quick Ratio 0.24 2.08 1.14 0.82 0.54

Profitability and economic equilibrium ratios
Return on investement ROI (%) -6.00 9.97 3.83 -0.56 -9.10
Return on equity ROE (%) -13.59 10.52 3.07 -6.63 -83.33
Asset turnover 1.48 1.11 1.05 1.10 1.10
Interest paid weight 0.00 0.01 0.24 -0.09 -0.10
Gross Profit/Operating revenue 0.25 0.29 0.23 0.15 0.16

Interest Coverage ratios
EBIT interest coverage ratio +Inf 87.73 3.23 -4.04 -11.29

Cash Conversion Cycle (days)
Days Sales Of Inventory (DIO) 107 34 47 43 51
Days Sales Outstanding (DSO) 55 72 77 62 75
Days Payable Outstanding (DPO) 44 38 43 54 100
Cash Conversion Cycle (DIO + DSO - DPO) 118 63 79 50 32
Numer of analyzed companies - 575 1,196 524 89
(Average) Rating CCC A BBB B CC

The sector has been chosen according to:
international companies in the sector NACE 2 2030 with financial data of year 2009.

modeFinance srl Area Science Park,
TM

VAT number 01168840328 Padriciano 99. 34149 Trieste, Italy
info@modefinance.com Tel. +39 040 3755337
www.modefinance.com Fax +39 040 3756741

PPG VIETNAM COMPANY
LIMITED
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Sector Analysis - Graphs

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PPG VIETNAM COMPANY
LIMITED
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Balance Sheet

BALANCE SHEET (th e) 31/12/2009 31/12/2008 31/12/2007
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate VND - EUR 3.869E-05 4.232E-05 4.216E-05

Total assets 3,148 3,351 1,912
Fixed assets 673 779 409
Intangible fixed assets 4 8 12
Tangible fixed assets 623 294 333
Other fixed assets 47 478 64
Current assets 2,475 2,572 1,503
Stocks 1,372 1,509 927
Debtors 705 648 432
Other current assets 398 232 17
Cash & cash equivalent 314 183 126

Shareholders funds -1,450 -1,369 -858
Capital 415 454 453
Other shareholders funds -1,865 -1,823 -1,310
Total liabilities 4,598 4,720 2,770
Non current liabilities 0 0 0
Long term debt 0 0 0
Other non-current liabilities 0 0 0
Current liabilities 4,598 4,720 2,770
Loans 3,366 3,849 2,363
Creditors 559 238 94
Other current liabilities 673 633 313
Total shareh. funds & liab. 3,148 3,351 1,912

NET DEBT (th e) 31/12/2009 31/12/2008 31/12/2007
Short term debts 3,366 3,849 2,363
Long term debt 0 0 0
Cash & cash equivalent 314 183 126
Net debt 3,052 3,666 2,237

31/12/2009 31/12/2008 31/12/2007
Working capital 1,518 1,919 1,266
Net Current Assets -2,123 -2,149 -1,267

31/12/2009 31/12/2008 31/12/2007
Days Sales Of Inventory (DIO) 107 150 -
Days Sales Outstanding (DSO) 55 64 -
Days Payable Outstanding (DPO) 44 24 -
Cash Conversion Cycle (DIO + DSO - DPO) 118 190 -

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PPG VIETNAM COMPANY
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Income Statement

INCOME STATEMENT (th e) 31/12/2009 31/12/2008 31/12/2007
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate VND - EUR 3.869E-05 4.232E-05 4.216E-05

Sales 4,705 3,672 -
Revenues growth (%) 28.1 - -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
-42 0 -
own construction capitalized
Operating revenue / turnover 4,663 3,672 -
Total operating costs 4,452 3,723 -
Costs growth (%) - - -
Service costs - - -
Material costs - - -
Costs of employees - - -
EBITDA - - -
Depreciation - - -
EBIT 210 -50 -
Financial P/L -400 -458 -
Financial revenue 9 2 -
Financial expenses 408 460 -
Interest paid 0 42 -
P/L before tax -189 -509 -
Extr. and other P/L -8 -1 -
Extr. and other revenue 0 0 -
Extr. and other expenses 8 1 -
P/L before tax + Extr. and other P/L -197 -510 -
Taxation 0 0 -
P/L for period -197 -510 -

31/12/2009 31/12/2008 31/12/2007
Costs of Good Sold 3,505 2,982 -
Gross Proﬁt 1,158 691 -
Other Operating Expenses 948 741 -

31/12/2009 31/12/2008 31/12/2007
Cash ﬂow - - -
Added value - - -

31/12/2009 31/12/2008 31/12/2007
Number of employees - - -

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PPG VIETNAM COMPANY
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Evolutions and trends

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PPG VIETNAM COMPANY
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Qualitative information

Full overview PPG VIETNAM COMPANY LIMITED (Vietnamese Name: CONG TY TNHH PPG VIETNAM)is a wholly owned foreign
company invested by PPG INDUSTRIAL SECURITIES INC based in USA (PPG Industries Inc. is a global manufacturer
and supplier of coatings, chemicals and glass that operates 120 manufacturing locations in 23 countries worldwi-
de). It is specialized in manufacturing and distributing paints for automobiles, architecture and industrial products.
Its investment ceritiﬁcate no is 472043000648 (granted on 29 Aug 2008 by Dong Nai Industrial Zones Authority).
Tax code is 3600478837. The number of total employees is 40.

History PPG was established on October, 2000. On August 29th, 2008 the subject changed investment license number
from No. 57/GP - KCN - DN to No. 472043000648. On 11 Feb 2009, the subject changed its address from “Floor
10th, Room 5, Sai Gon Centre, No. 65 Le Loi Str, Dist 1, Hochiminh City” to No. 81 - 85, Ham Nghi Str, Nguyen
Thai Binh Ward, Dist. 1, Hochiminh City. The total investment capital and the chartered capital were raised to USD
22,333,000 and USD 3,700,000 respectively on March 2010.

Primary business line The subject is specialized in manufacturing and trading paint and materials for paint production industry.

Secondary business line Not available.

Main activity Manufacture and coating.

Secondary activity Distribution.

Main products and services Paints and coatings for automobiles, architecture and industrial products.

Size estimate The total number of the employees is 40.

Strategy, organization and policy Not available.

Strategic alliances Not available.

Membership of a network Not available.

Main brand names Not available.

Main domestic country Not available.

Main foreign countries or regions PPG imports materials from Australia, USA, Japan, Malaysia, Thailand, and China (Payment method is T/T). The
subject at the moment does not export.

Main production sites The company has a factory in the following address: No. 103/5 AMATA Industrial Zone - Bien Hoa City - Dong Nai
Province - Vietnam (Tel: (84 - 61) 3936761). The premises and facilities of the subject are normal. Its main factory
is located at Amata Industrial Zone with 800m2 and production capacity about 100,000 tons/ a year. It also has
a small workshop at Bien Hoa 1 Industrial Zone, Dong Nai Province. The subject co - operates in production with
Dong Nai Paint corporation. It has a factory in Yen Phong Industrial Zone, Bac Ninh Province - Northern Province.
Besides, the subject also gets much support from the parent company. The subject has refused the local provider
to give them more detailed information about factories.

Main distribution sites Not available.

Main sales representation sites Not available.

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PPG VIETNAM COMPANY
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Main customers The subject provided products for many manufacturers such as Blue Corp Steel, Hoa Sen Steel, Pos Vina, BP, LG
gas, and Shell gas.

The products of its parent company are supplied for automobile assemblers in Vietnam such as Mercedes, Ford,
Truong Hai Auto, VMC, ISUZU, SAMCO, and Daewoo., etc.

Auditor/Advisor/Bank

name type address
CITI BANK Bank No. 115 Nguyen Hue Str, Ben Nghe Ward, District 1 - Ho Chi Minh City -
Vietnam (Tel:(84 - 8) 8242118 )
JOINT STOCK COMMERCIAL BANK FOR FO- Bank No. 29 Ben Chuong Duong - District 1 - Ho Chi Minh City - Vietnam
REIGN TRADE OF VIETNAM HO CHI MINH (Tel:(84 - 8) 3829 7245 - 3823 0310 - 3823 0311 )
BRANCH

Board

name date of birth nationality function
Mr. SEKMAKAS VIKTORAS RIMAS - Malaysian General Director
Mr. NGUYEN DINH LONG - Vietnamese Managing Director
Mr. PHAN THU DINH - - Purchasing Manager
Ms. VO THI THUY HANG - Vietnamese Chief Accountant

Sharehoders (the ﬁrst twenty shareholders ordered by Direct %))

PPG INDUSTRIES SECURITIES, INC. Rating: -
Country ISO code US Operating revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % 100.00 Number of Employees -
Total % - Information date 05/2011
Address: 1, PPG Place, 15272 PITTSBURGH, United States of America, Tel: (412) 434 - 3131

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PPG VIETNAM COMPANY
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Subsidiaries (the ﬁrst twenty subsidiaries ordered by Direct %)

Not available.

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PPG VIETNAM COMPANY
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ASKMORE rating guide

General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of
an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk
factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial
companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy
model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the
model are obtained by applying newly developed numerical methodologies, drawing together financial theory,
data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective
algorithm that produces a classification of each company, by taking into account any attributes (such as sector and
country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis
and allows to process quality information. It induces a better understanding of a company’s strength and weakness
thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the
rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium
between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic
behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

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PPG VIETNAM COMPANY
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Rating scale

Rating class Rating macro class Assessment

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
economic and financial flow and fund equilibrium.

Healthy The company has very strong creditworthiness. It also has a good capital structure and economic and financial
AA
equilibrium. Difference from AAA is slight.

The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories.

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
BBB
commitments could be affected by serious unfavourable events.
Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing
BB
uncertainties or exposure to adverse business, financial, or economic conditions.

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
Vulnerable
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial
CCC fundamentals. Adverse market events and an inadequate management could affect with high probability the
company’s solvency.

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
CC
company’s strong disequilibrium could increase.

Risky
The company shows considerable pathological situations. The company’s capacity to meet its financial
C
commitments is very low.

D The company has not any longer the capacity to meet its financial commitments.

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PPG VIETNAM COMPANY
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Fundamental Credit Rating Ratios

Analysis area Ratio Assessment

This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
This indicates company’s solvency. The company shows a level of deficit
Assets to debt
when the value of this ratio is under one unit.

This is calculated only for holdings. It measures the capital structure i.e.
Financial ratios Fixed Assets coverage ratio
whether a company covers the fixed assets with long term capital.

This measures whether a company has sufficient short-term assets to cover
Current ratio
its short-term liabilities.
Liquidity ratios
This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.

This measures the profitability of company investments without regard to
Return on Investement(ROI)
the way the investment is financed.

Return on Equity(ROE) This measures the profitability of the equity.

Profitability and economic ratios
This indicates the investments turnover with regards to sales. The level
Asset turnover assumed from the ratio depends on the sector in which the company
operates.

Profit margin This indicates the profitability of sales.

This indicate the ability of the company to cover interest expenses through
Interest coverage ratio Interest Paid coverage the economic margins (Gross profit and EBIT) and through the cash flow
from operating activities.

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PPG VIETNAM COMPANY
LIMITED
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MORE Credit Limit, Probability of default and Confidence Level
MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial
relationship with the analyzed company with an outlook of one year.

modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size;
• Years in Business;

• Average number of suppliers;
• Liquidity of the company and the comparison with its sector;
• The funds dedicated to be paid to suppliers;

• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual
public data. This value should be reviewed by paying attention to the Confidence Level value and by using other
information such as other business information, news... etc; and private information such as the relationship with
client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of
Level confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go
into default.

As the probability of default is strongly affected by the economic climate that the company is operating in,
companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Available Information
Confidence =
Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in
availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the
MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no
financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

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PPG VIETNAM COMPANY
LIMITED
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Notes and disclaimer

NOTES The present analysis was based on the company available financial statements as provided by Bureau Van Dijk
Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).

DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot
be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will
be based on information gathered in good faith from both primary and secondary sources, whose accuracy we
are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.

Contacts
Company modeFinance
Products MORE rating
Where AREA Science Park
34149 Trieste, via Padriciano 99 - ITALY
Info info@modefinance.com
web www.modefinance.com
Phone +39 040 3755337

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