Professional Documents
Culture Documents
May 2015
Client Highlights
The group is a family run business with 15 years combined experience within brewing and EPC contract business lines.
The Group operates a flat hierarchy with key operating decisions made by Mr Son (Managing Director and Majority Equity
Owner) within a group that currently has a combined staff of 35.
Key managerial staff hold in excess of 25 years professional experience between them and hold cross functional
responsibilities.
The Group are recognised internationally for their high quality design and manufacturing of distillery equipment, produced
under the sister company Eresson Electro Mechanical Refrigeration JSC, and for their production of Beer and Spirits under
the Eresson Beer & Alcohol One Member Co. Ltd.
Business relationships are strong with Government bodies and are extensive within the Banking community.
The group hold the only privately held license for production of Spirits in the Country.
They own a 50 year lease to their production land with ample room to develop and rollout enhancements to production.
Current production : 10 million litres of beer, 5 million litres of Cognac and Whisky and 3 million litres of Vodka are
produced each year.
We seek to facilitate an increase in beer production to 50 million litres, a doubling of the spirits production and to develop
the ASEAN footprint for the client. These increases in production are already matched by market demands domestically
and regionally (China and ASEAN).
Additional funding is desired to establish a canning production facility, currently all cans are imported to the country as
there are no production facilities in Vietnam, therefore opportunities to supply other breweries as a stand alone business
line is considered in addition to the proprietary volume requirements.
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Options exists for a strategic Operating partner, sale of an equity stake in the business or sourcing for an expansion loan.
Investment amount : USD 50 million USD 65 million to acquire new operating equipment and technology to expand
existing facilities within Vietnam
Strategic partner to provide access to maximise production, grow footprint within Vietnam and also within ASEAN
Exit strategy for investors - Convertible option subject to IPO
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Strategic Benefits
The proposition is not a zero sum investment structure, instead it seeks to jointly collaborate by penetrating and
developing the fast growing beverage sector within ASEAN, MENA and China.
Specific benefits include :
Beer
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Actual
Net Revenues:
2012
2014
2013
in USD
Projected
Net Revenues:
2015
Receipts
US$ 20.8m
Sales
Ad Revenue
0.3m
Garage Rental
0.3m
Total
US$ 21.4m
2016
22.3m
0.3m
0.3m
22.9m
2017
24.2m
3.4m
0.3m
0.3m
28.2m
2018
24.3m
1.0m
0.3m
0.3m
25.9m
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Vietnam Alcohol
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Competitive landscape
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Despite the rate of beer drinking in Vietnam increasing by more than 200 percent over the past 10 years, the per capita
volumes are still moderate according to the World Health Organisation (WHO).
For now Vietnam barely makes it into the world's top 100 per capita alcohol consumers, according to WHO statistics, far
behind big-drinking Russia, Britain and France.
With the increase in consumption beer remains the alcohol of choice, 97% again as provided by the WHO.
Source : WHO
Source : WHO
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Vietnam Growth
With more than 88 million people, Vietnam has the third highest population after Indonesia and the Philippines in ASEAN, which
has a combined population of more than 600 million. Vietnam has embarked on economic reforms for more than two decades,
and attempts to liberalise and open up the domestic market for foreign companies have accelerated since the country joined the
World Trade Organisation (WTO) in 2007.
Robust economic growth, helped to a good extent by continued inflows of foreign direct investment (FDI), has led Vietnams per
capita disposable income to rise by 21% each year from 2006-2011, with per capita consumer spending rising at a similar rate.
Apart from being an alternative production base in Asia, Vietnam is increasingly emerging as a lucrative market for international
brands, targeting the countrys expanding middle class which has a growing appetite for higher-end consumer goods and services.
Vietnam is a development success story.
Political and economic reforms (Doi Moi) launched in 1986 have transformed Vietnam from one of the poorest countries in the
world, with per capita income below $100, to a lower middle income country within a quarter of a century with per capita income
of over $2,000 by the end of 2014.
The external sector continues to be an important engine of growth. Export value in US dollar terms is estimated to have grown by
11.6% in 2014, outperforming other countries in the region.
Vietnams traditional labor-intensive manufacturing exports such as garments, footwear and furniture, continue to grow at a rapid
clip.
Recent additions to the export basket such as hi-tech and high-value products (cell phones, computers, electronics, and
automobile parts) have also maintained rapid growth, and have now become the largest share of export.
The Government has recently paid more attention to improving the business environment, with two Resolutions issued in March
2014 and March 2015, setting out concrete actions to remove obstacles to doing business in Vietnam, with a goal of achieving a
business environment comparable to the average of the ASEAN-6 group.
Business Excellence Partner
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Risks
In certain markets in Asia, governments have been steadily clamping down on alcohol marketing.
The latest one to implement such rules is Vietnam.
Late last year, Vietnam established strict procedures on alcohol. Under the new rules, before distributing alcoholic
beverages, a producer must now submit to authorities, along with the application for a production license, documents
concerning trademarks and conformity with technical and food safety standards.
Organisations and individuals engaged in small-scale liquor production in a liquor trading village will be exempt from the
license requirement. Our client holds all the necessary permits and licenses.
Could Government clamp down on alcohol production?
Various measures have been rolled out to control consumption, however rapidly rising income levels and influx of foreign
brands are only further fuelling demand. It is unlikely further measures will be rolled out whilst Vietnam pursues its open
door policies
Could the Group fail to repay?
Vietnam is extremely sensitive to negative foreign press and any hint of possible default on foreign borrowings would be
quickly dealt with. The Group Holding Company may offer additional guarantees if needed.
Can consumption tastes change?
Yes, we believe tastes will only develop and that the Client is in the position to adapt to changing tastes. The client has
learnt his trade from European distilling practice and is fully aware how to adapt outputs.
In our opinion, Political risk remains the key risk and is one that is readily available from the insurance providers.
Business Excellence Partner
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Summary
The alcohol industry within Vietnam and South East Asia is booming, increasing disposable incomes and developing tastes
for brands are only fuelling the demand surge.
Our client is in an enviable position of holding one of the only privately held licenses in Vietnam, has a strong brand and
distribution network and has an internationally recognised production capacity for producing and installing distillery
hardware.
Operating margins are very strong with all earlier sunk costs for existing operations already written off.
The Group are seeking either a strategic partner OR sale of an equity stake within the business.
Upon confirmation of interest and non disclosure agreements a data room is available with full due diligence materials, a
financial model and 3 years of audited financials. We look forward to meeting you again and introducing the principals.
Thank you
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Disclaimer
This Confidential Presentation (the Presentation) is furnished on a confidential basis to a selected number of
sophisticated investors for the purpose of providing certain information about an investment in Al Million Taxis, its assets,
loans or securities (the Company). This Presentation is intended for the use of the persons to whom it is given and is
not to be redistributed, reproduced or used, in whole or in part, for any other purpose.
Neither this Presentation nor any information contained herein (i) is intended to provide the basis of any investment or
other evaluation or (ii) should be considered as a recommendation by the Company that any recipient of this Presentation
should make an investment in the Company. Each investor contemplating making an investment in the Company should
make its own independent investigation of the financial condition and affairs of the Company.
No representations or warranties of any kind are intended or should be inferred with respect to the economic return or the
legal and/or tax consequences from an investment in the Company. In making an investment decision, investors must rely
on their own examination of the Company and the terms of any investment, including merits and risks involved.
Prospective investors should not treat the contents of this Presentation as advice relating to legal, taxation or investment
matters and are advised to consult their own professional advisors concerning the acquisition, holding or disposal of
securities or loans.
Prospective investors should inform themselves as to the legal requirements and tax consequences within the countries of
their citizenship, residence, domicile and place of business with respect to the acquisition, holding or disposal of debt, and
any foreign exchange restrictions that may be relevant thereto.
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Contact Us
The
Group
operates
across
the
heart
of
South
East
Asia,
we
are
ideally
placed
to
help
you
grow
your
Asian
business.
With
local
talent,
local
knowledge
and
feet
on
the
street
we
offer
highly
personalised
solutions.
Contact
Details
Hong
Kong
Indonesia
40 44 Wyndham Street
Central
Hong Kong
Jakarta 12920
Indonesia
Singapore
United Kingdom
47 Hill Street
Singapore 179365
St Johns, Woking
United Kingdom
Website : www.one-asia.biz
Email : enquiries@one-asia.biz
Additional Representation
Australia
Vietnam
Business Excellence Partner
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Asia Representatives
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