NEW DEVELOPMENTS VALUATION

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Randall Barton
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1 VINH SON SONG HINH HYDROPOWER JSC (VSH) Nguyen Mnh Tu Emil: Ticker: VSH - Exchnge: HSX Anlyst s opinion: BUY Trget Price: VND STOCK STATISTICS Price s of 08/23/2010: VND 9,000 Sector: Rel Estte Business Model: Hydro Power Listed since 07/18/2005 Outstnding Shres 201,529,493 Floting Shres 131,238,129 Mrket Cp (billion VND) 1, Week High (VND) 13, Week Low (VND) 9, Dy Averge Volume 193,770 % Price Chnge 1 Month 7.45% % Price Chnge 3 month 12.9% % Price Chnge 6 month N/A % Price Chnge 12 month N/A % Foreign Ownership 16.8% % Foreign Ownership Limit 49% Source: TLS ACCUMULATED DAILY RETURN OF VSH AND VNINDEX 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% 450, , , , , , , ,000 50,000 - Our 2011 trget price is estimted t VND 12,837, upside 42.6% of mrket price t August 23, 2011 with two our estimtions : (i) 2011 erning per shre of VND 1,568 nd expected P/E of 8x, (ii) book vlue per shre of VND 12,626 nd expected P/B of 1.04x. We recommend BUY. NEW DEVELOPMENTS In 2Q2011, VSH s net revenue reched VND billion, increse of 7.17% compring the sme lst period. Gross profit ws VND billion, rose by 18.8% y-o-y. Profit fter tx ws VND billion, equivlent to the sme period lst yer. In first sixmonth 2011 VSH s ccumulted revenue recorded t VND billion, incresed by 16.8% yoy nd its profit fter tx ws VND billion, incresed by 31.1% y-o-y. In July 2011, VSH s output ws 72 million Kwh, verge dily output in this period incresed 30% compred to the sme period in With this output, July VSH s revenue recorded t VND 30 billion (this is conservtive with 90% of contrct price). Currently, VSH hsn t finished negotiting the new contrct with EVN. The reservoir-wter level is higher thn it in the sme lst period. On the 21th August 2011, the VSH s reservoir-wter level ws: Vinh Son A: meters Vinh Son B: m - Vinh Son C: m nd Song Hinh: m. VALUATION Impcts to the erning model: Output Estimtion Observed wter levels in the reservoirs of VSH in recent times, we see tht wter level is higher thn it in 2010, despite still significntly below the designed norml wter level. The riny seson in the third qurter is time for VSH to improve wter level in reservoirs. Wter level A Vĩnh Sơn B C Sông Hinh Norml level by design (m) Updte dte /01/ /01/2010 Actul level (m) /01/2011 Source: TLS Volume VSH VN-Index FINANCIAL RATIO (VND Billion) E 2012F Assets 3,029 3,042 3,397 Equity 2,430 2,545 2,701 Net sles EBIT EAT EPS (VND) Dividend (VND) P/E (x) 5.09 N/A 0 P/B (x) 0.66 N/A 0 Sles growth -18% 7% 6% EPS growth -34% -12% 13% Gross mrgin 56.7% 62.8% 66.1% Net mrgin 71.2% 69.3% 73.9% ROA 10% 10% 11% ROE 12% 12% 13% Source: VSH & TLS /01/ /21/2011 Source: VSH & TLS reserch With the better wter level, VSH s output in 2Q2011 incresed 3.3% compred to the sme lst period. We estimted tht VSH s output in 2H2011 is equivlent to the sme period in The 2011 power output of VSH is expected to rech 912 million kwh, up 7.61% compred to TLS Vietnm: Level 6, Toserco Tower 273 Kim M, B Dinh, Hnoi, Vietnm Sles & Trding - Hnoi Sles & Trding - HCMC Nthn Nguyen E: Nthn.Nguyen@tls.vn

2 Output (mn Kwh) Q1 Q2 Q3E Q4E Totl Growth Output Output % Output 2011F % New selling price to EVN Source: VSH & TLS reserch Currently, VSH is conducting negotitions with EVN on new power purchse greement (PPA). Old contrct price with VND476/kWh in the riny seson (July to September) nd VND580/kWh in the dry seson (the rest of yer) hs expired since A lower price would hrdly be ccepted by the VSH shreholders while EVN hs incresed retil electricity prices by 6.8% from However, Vietnm s power-genertion, trnsmission nd distribution sector re controlled by EVN (the biggest shreholder of VSH), so we predict tht the bility to increse selling price to EVN in the new contrct is not high. We ssume the new price will be 90% of the old contrct price. Estimtion of Revenue Output (mn Kwh) Q1 Q2 Q3 Q4 2011E Electricity output production Electricity output commercil Selling price 2011 (VND/Kwh) Revenue (VND bn) Estimtion of Production Costs Source: TLS reserch In production costs brekdown, deprecition cost ccounts bout 75%. In 2011, deprecition cost will decline. Totl production costs rech VND billion Production Costs (VND bn) E Deprecition expenses Nturl Resources Tx Lbor costs Mteril costs Outsourcing service cost Administrtion expenses Other expenses 6 6 Totl Investment Income Source: TLS reserch In 2011, VSH still hs big short-term investment such s VND500 billion-lon to EVN with interest 8% per nnul nd round VND671 billion of csh nd csh equivlent. So Investment income minly comes from interest of short-term lon nd deposits 2 TLS Vietnm: Level 6, Toserco Tower 273 Kim M, B Dinh, Hnoi, Vietnm Sles & Trding - Hnoi Sles & Trding - HCMC Nthn Nguyen E: Nthn.Nguyen@tls.vn

3 Fiscl yer E Investment Income (VND bn) Investment Expense Source: TLS reserch Investment expense in 2011 comes from 2 prts: interest expense nd exchnge rte provision. In the first qurter of 2011, SBV devlued the dong 9.2% from 18,932 to 20,683. We ssume tht this exchnge rte will be kept unchnged till the end of So the provision will be VND27.2 billion. Investment Expenses (VND bn) E Interest Expense Exchnge rte gin/loss provision Totl Erning Model Source: TLS reserch Income Sttement (VND bn) E Sles Cost of good sles (168.04) (177.68) (184.90) (183.82) (169.9) Gross profit Operting expense Administrtion expense (7.61) (10.17) (14.92) (10.55) (10.6) Investment income Investment expense (15.98) (26.55) (19.28) (15.88) (31.7) Profit before Tx Tx (0.56) (0.74) Profit fter Tx EPS (VND) 1,950 2,696 2,179 1,478 1,568 (*) 2010, 2011 s revenue conservtive with 90% of the old contrct price Source: VSH & TLS reserch 3 TLS Vietnm: Level 6, Toserco Tower 273 Kim M, B Dinh, Hnoi, Vietnm Sles & Trding - Hnoi Sles & Trding - HCMC Nthn Nguyen E: Nthn.Nguyen@tls.vn

4 FINANCIAL SUMMARY VND Billion Erning Model E 2012F 2013F Blnce Sheet E 2012F 2013F Net sles Current Assets 1, , ,019. 2,067.8 Cost of goods sold Csh nd csh equivlents , ,093.9 Gross profit Finncil investment Gross profit mrgin 56.70% 62.75% 66.10% 56.80% Accounts receivble Other operting income Inventory Selling expenses Prepid expenses, other CA Generl dministrtion Other operting expenses Property nd equipment EBIT At cost 2, , , ,411.6 Investment income Less ccumulted deprecition -1, , ,184.0 Net interest Net property nd equipment 1, , , ,227.5 Net finncil items Other long - term ssets Ernings before tx Totl Assets 3, , ,396. 3,795.4 Income tx Current Libilities Tx/Profit before mortistion 6.89% 6.82% 5.00% 5.00% Finncil debts Profit fter txes Trde pybles Minority interest Dividend pid (VND per shre) 1,500 1,000 1,000 1,000 Other libilities Retined ernings Long-term debt Totl Liblilities Weighted verge shres (m) Stockholders' equity 2, , ,700. 2,861.4 Yer end shres (m) Common stock 2, , , ,062.4 Ernings per shre (VND) Investment, development funds Common stock dividend (VND) Retined ernings Pyout rtio (common stock) 84% 64% 56% 56% Cpitl surplus Shre bought bck Budget sources nd other funds Minority interest CshFlow Sttements E 2012F 2013F Totl libilities nd equity 3, , ,396. 3,795.4 Net profit Adjustments for: Growth nd Mrgin (%) E 2012F 2013F Deprecition nd mortistion Sles growth -18.0% 7.5% 6.1% 24.5% Chnge in inventories EBITDA growth Chnge in trde receivbles EBIT growth -22.4% 20.2% 11.9% 6.0% Chnge in trde pybles Net Income Growth -18.4% 4.5% 13.2% 1.2% Chnge in others EPS growth -33.8% -12.1% 13.2% 1.2% Csh flow from opertions Gross Mrgin 56.7% 62.8% 66.1% 56.8% EBITDA mrgin Chnge in tngible fixed ssets EBIT mrgin -52.5% -35.0% -32.3% -32.4% Chnge in intngible fixed ssets Chnge in long term Rtios E 2012F 2013F investments Cshflow from investments ROE 12.4% 12.4% 13.3% 12.7% ROA 10.0% 10.4% 10.5% 9.5% Equity issued Inventory dys Chnge in other funds Receivble dys Chnge in finncil debts Pyble dys 51.2 Chnge in long term libilities Net debt/equity 24.6% % % % 77.3 Dividends to shreholders Interest cover - EBIT(x) 12.4% 12.4% 13.3% 12.7% Csh flow from finncing Vlution (Multiples) E 2012F 2013F Net csh flow PE 5.09 N/A N/A N/A Opening csh PB 0.66 N/A N/A N/A Closing csh Dividend Yield 15% 10% 10% 10% Projected Free Csh Flow Profit fter Txes Add bck deprecition (-) increse in CA, except csh (+) increse in CL (-) increse in PEC Free Csh Flow Notes: CA = current ssets; CL = current libilities; PEC = Property nd Equipment t Cost Source: VSH & TLS s forecst 4 TLS Vietnm: Level 6, Toserco Tower 273 Kim M, B Dinh, Hnoi, Vietnm Sles & Trding - Hnoi Sles & Trding - HCMC Nthn Nguyen E: Nthn.Nguyen@tls.vn

ANALYST DECLARATION Conflicts of interest might exist s ThngLong Securities ( TLS ) nd its clients might hve stkes in the trget firm through investments nd/or dvisory services in the pst, t present

5 ANALYST DECLARATION Conflicts of interest might exist s ThngLong Securities ( TLS ) nd its clients might hve stkes in the trget firm through investments nd/or dvisory services in the pst, t present or in the future. PRODUCT This product covers the ltest developments on the trget firm. Detils on the firm cn be obtined by contcting our nlyst(s) or the sles persons nmed bove. We thnk clients for comments nd feedbcks on our product. TLS publishes this product, but ll errors if ny re the uthors. Anlyst s opinion: BUY expected to gin more thn 15% compred to the price on report issue dte; SELL expected to drop more thn 15% compred to the price on report issue dte; HOLD expected to chnge between -15% to 15% compred to the price on report issue dte. TLS RESEARCH TEAM We offer economic nd equity reserch. The Economic Reserch Tem offers periodic reports on mcroeconomics, monetry policies nd fixed income mrkets. The Equity Reserch Tem offers reports on listed firms, privte equities nd sector reviews. TLS Reserch Tem lso offers regulr mrket commentries - The Investor Dily. THANGLONG SECURITIES (TLS) Estblished in 2000, TLS ws one of the first securities firms operting in Vietnm. TLS provides full rnge of services including brokerge, reserch nd investment dvisory, investment bnking nd cpitl mrkets underwriting. With 500 employees locted throughout n expnsive network of offices in Hnoi, Ho Chi Minh City, Hi Phong, D Nng nd other strtegic loctions, TLS is one of the best known securities firms in Vietnm. Our client bse consists of retil nd institutionl investors, finncil institutions nd corportions. As member of the MB Group, including MB Bnk, MB Lnd, MB Asset Mngement nd MB Cpitl, TLS is ble to leverge substntil humn, finncil nd technologicl resources to provide its clients with tilored products nd services tht few securities firms in Vietnm cn mtch. Since its estblishment, TLS hs become widely regrded throughout Vietnm s: A leding brokerge firm rnked No.1 in terms of brokerge mrket shre since 2009; A renowned reserch firm with tem of experienced nlysts tht provides mrket-leding reserch products nd commentries on equity mrkets nd the economy; nd A trusted provider of investment bnking services for corporte clients. OFFICES Hedqurter: Level 6, Toserco Tower, 273 Kim M, B Dinh District, Hnoi. Phone: HCMC Office: Level 2, Petro Vietnm Tower, 1-5 Le Dun, District 1, Ho Chi Minh City. Phone: Reserch Office: Level 4, Vinconex Tower, 34 Lng H, Dong D District, Hnoi. Phone: E: reserch@tls.vn 5 TLS Vietnm: Level 6, Toserco Tower 273 Kim M, B Dinh, Hnoi, Vietnm Sles & Trding - Hnoi Sles & Trding - HCMC Nthn Nguyen E: Nthn.Nguyen@tls.vn

BOUYGUES GROUP CONSOLIDATED FINANCIAL STATEMENTS

BOUYGUES GROUP CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET ( million) ASSETS 30/09/2018 net 31/12/2017 net restted 30/09/2017 net restted Property, plnt nd equipment 11 7,143 6,658 6,428 Intngile ssets 11 2,072 2,132 2,161 Goodwill 3.1