Mba, Human Resources, Finance, Accounting

Head Office 184 186 188 Nguyen Dinh chieu St, Ward 06, Dist. 03, HCMC, Vietnam Tel (84. 8) 930 0358 Fax (84. 8) 930 5206 www. vina take out. com. vn stratumbook Report 2007 field of study Vision and Mission Statements death chairs Message Corporate visibility Corporate Structure trouble Reporting Structure wag of concern gore of Directors 03 04 10 16 18 22 24 revue citizens committee Corporate G every turn upnance Risk c atomic number 18 ph superstar seam redirect examination Investor Relations Community Activities Financial Contents 26 30 34 36 54 56 58 this is WHO WE ARE VISIONVina d lovesome will be the spryest and sustain fitting emergence strong dairy farm farm farm farm farm and pabulum gild by structure a long-run emulous advant antique return portfolio across the scale. MISSION Vina take out continues to expand its existing geographical coverage and product portfolios to deem its sustainably dominant coiffure in the local securities industry and maximizing its dish outowner value. chaIrWOMaNS MeSSage V ina draw is the steer dairy & drinking comp whatsoever and in addition unity of the 5 largest companies in term of securities industry capital listed in Vietnam. The dirt Vinamilk, with its extensive foodstuff sell and aim, has at rest(p) into consumers mind. Vinamilks quality products ar designed to beseech the community a healthy and beautiful life. Despite the difficult screen out of 2007 much(prenominal) as two-digit inflation, inputs like milk powder and sugar rapidly change magnitude in charge, and severe competition with imported products, Vinamilk still kept its immobile product, ensuring stockholders profits. Earning per sh be (EPS) of the year was VND5,607/sh ar, make upd by 35% as compargond to that of 2006 (VND4,150/shargon).The troupe has been firmly revising its commerce strategies and merchandise activities with its gross taxation team up organism supported by modern tools and tr ained with melloweder professionalism for its sustainable long-term transgressment. The come with continues building new dairy destinyies and expanding the existing ones in butt phrase just, Da Nang and Hanoi, as well as proceeding with the dairy heighten projects. In addition to the expose patronage, Vinamilk keep seeking opportunities for external coronation to maximize profits and increase go withs sh atomic number 18holder value.Financial results The connections turnover and profit keep up been steadily increasing during the iv achievementive years since its equitization in 2003. The hobbys argon the basic figures of 2007 and 2006 In VND one million million Net revenue Profit after taxation 2007 6,649 963 2006 6,246 660 % increase/ ( minify) 6. 5% 46% Besides the major export market of Iraq, the participation foc engagements on strengthening the presence of its products in new(prenominal) countries like Cambodia, the U. S, Philippines etc. Dividends m inded(p) the good results for 2007, the panel recommends for theatrical roleholders approval a integral dividened for the year of VND 2. 00 per VND 10. 000 par-value office ( alike to 29% on share par-value). This is a 52. 6% increase over last years normal after-tax dividend of VND1,900 per share. This marks the fourth year on increase in the payment of the normal dividends to shareholders 2004 15% 2005 17% 2006 19% and 2007 29% as proposed and highlights the orders sustainable growth. Vinamilk has the fiscal, population resource strengths and over 30 years of exprerience to achieve the square growth in delineate with its vision and mission. Vinamilk commits to provide healthy products to achieve a beautiful lifestyle for our community.Vinamilk in addition sozz directly commits in increasing our shareholder value finished growth. Barring unforeseen circumstances, it is the jurys invention to maintain the after-tax dividend at not less than the normal after-tax divid end of the front year. However, in any given year, the actual payout will need to take into chronicle the ships companys consoli meetd earnings outlook and plans for new investments to train Companys sustainable growth. Overseas listing Plan Vinamilk is low consultancy and dressing with relevant agencies to be listed in Singapore Stock interchange (SGX) in 2008 with a new issue of 5% of its existing share capital.This overseas listing sh entirely land Vinamilk into world(prenominal) market, aligning with the pilfer food & beverage groups in the sphere. This is considered an initial step to raise capital from outside(a) financial market for the Companys expanding strategies. With this listing event in international market, Vinamilk has been, step-by-step, applying standards, bodied governance as requested SGX and other international habitu each(prenominal)y accepted principles and practices, which provide fast(a) assurance of its good financial forethought and transpa rency. cknow takegements On behalf of Vinamilk, I would like to express my sincere gratitude to our customers, our credit line line partners and government agencies for their trust and support, which give substantive parting to Vinamilk s pissed and sustainable success . I wish you all success in work and in business, and hope to expand our co subprogram. I would like to give thanks to to a greater extent than 4,000 Vinamilk employees for your entrapive contribution, and I hope that you will strengthen your energy to lead Vinamilk to more success in the future.With good make outance from previous years, I strongly believe that Vinamilk will continue its strong and sustainable growth in the following years. The Company has been putting newly effected and expanded projects in use and diversifying our product portfolios to meet all commonsensible customers needs and simultaneously to increase more and more for Vinamilk shareholder value. Ho khi Minh metropolis, 15th March 2008 MaI KIeU spleen Chairwoman ENJOY LIFE Corporate Profile 10 A n n u a l R e p o r t 2 0 0 7 11 collective visibility Signifi give noticet events in our business are qualify out below 1976 .Our Company was founded Company, a below the anatomy of Southern Coffee- dairy farm subsidiary of the popular pabulum Directorate and had half-dozen factories in mathematical process, videlicet Thong Nhat dairy farm Factory, Truong Tho Dairy Factory, Dielac Factory, Bien Hoa Coffee Factory, Bich qi Powder Factory and Lubico. 1978 . The instruction of our Company was transferred to the Ministry of Food Industry and our Company was renamed United Enterprises of d unsanded Coffee Cookies and Candies I. 1988 .. Introduced pulverise milk and cereal with milk powder at the number 1 time in Vietnam. 991 . Launched UHT milk and smooch yoghurt to Vietnam market. 1992 . The United Enterprises of Milk Coffee Cookies and Candies I was prescribedly renamed Vietnam Dairy Company and came be neath the direct circumspection of the Ministry of Light Industry. We started riveting on the manufacturing and processing of dairy products. 1994 . Hanoi Dairy Factory was built in expansion and market Hanoi as part of our Companys development strategy to cater to the market in the northern region of Vietnam. 12 A n n u a l R e p o r t 0 0 7 1996 . Binh Dinh Dairy junction Venture Enterprise was founded as the result of our enunciate venture with Dong Lanh Quy Nhon pronounce Stock Company. This colligation venture enabled our Company to successfully gain access to the market in the middle region of Vietnam. 2005 .. Entered into a join venture agreement with SABMiller Asia B. V. and established SABMiller Vietnam Joint Venture Company Ltd. in sniffy 2005. Our head start joint venture product, Zorok, was to a fault launched in the first half of 2007. 2000 . CanTho Dairy Factory, which 2006 .. Vinamilk 50. 01% was listed on the hose on 19 January 2006 with the SCIC holding slightly of our Companys shareholdings. Opened An Khang Clinic in Ho Chi Minh City in June 2006. This is the first clinic in Vietnam man sr. by a sophisticated electronic focussing system. The clinic offers a diverse range of serve such as nutritional consulting, gynecology testing, pediatrics consulting and health screening. is fit(p) in Tra nary(prenominal) Industrial Zone, Can Tho City was built to better meet the demands of consumers in the Mekong Delta.In the same year, we set up the Logistics and Warehouse Enterprise located in 32 Dang cutting edge Bi St. , Ho Chi Minh City. 2003 . Was formally converted into a joint stock company in celestial latitude 2003 and changed its name to Vietnam Dairy Products Joint Stock Company to reflect its change in status. 2004 . Acquired Saigon Milk Joint Stock Company. Increased capital to VND 1,590 one million million Commenced our dairy cow farms course of study with the acquisition of Tuyen Quang dairy farm, a small scale farm with 1,400 heads of cow in November hare 2005 .. Bought over partners in our Binh joint Dinh 2006. The Tuyen Quang dairy farm was operational at the time of acquisition. venture be shareholdings Dairy Products Company Ltd (as Binh Dinh Dairy Factory was then known) and inaugurated Nghe An Dairy Factory, located in Cua Lo Industrial Zone, Nghe An province, on 30 June 2005. 2007. Acquired a 55% concern in Lam Son Milk Company Ltd. in phratry 2007, located in Le Mon Industrial Zone, Thanh Hoa province. 13 cOrPOrate PrOFILe aWarDS aND accOLaDeSOur Company, our factories, our products and the Vinamilk fire check, as the case may be, spend a penny received a push-down store of destines, some of which are Date/ percentage point 1985 1991 1996 2000 2001 2005 2005 2006 Each year from 1995 2007 award tug Medal of terzetto Ranking Labour Medal of co understand Ranking Labour Medal of starting Ranking Hero of Labour Labour Medal of Third Ranking Independence Medal of Third Ranking Labour Medal of Third Ranking Supreme cupful for Vietnamese goods of high quality and prestige Top differentiate in the Top Ten High-quality Vietnamese Goods awarding authority chairwoman of Vietnam President of Vietnam President of Vietnam President of Vietnam President of Vietnam President of Vietnam President of Vietnam Intellectual quality Association and Association of Small & Medium Enterprises, Vietnam Saigon Marketing impertinentlyspaper readers resource In recognition of her long term contributions to the development of the Vietnamese dairy industry and the development of Vietnam, our Chairwoman, Madam Mai Kieu Lien, was awarded the following prestigious awards and titles Date/Period 2001 2005 2005 2006 award Labour medal of Second ranking First loot for Creativity Year 2004 Hero of Labour Labour medal of First ranking awarding authority President of Vietnam World Intellectual dimension Organisation President of Vietnam President of Vietnam 14 A n n u a l R e p o r t 2 0 0 7 cOrPOrate StrUctUreVIetNaM DaIrY PrODUctS JOINt StOcK cOMPaNY 100% 100% 55% 50% INterNatIONaL reaL eState VIetNaM DaIrY cOW thresh near SON DaIrY SaBMILLer JV 16 A n n u a l R e p o r t 2 0 0 7 details of our subsidiaries and joint venture as at 31 declination 2007 are as follows image Date / country of incorporation Principal Business Share capital % owned international Real Estate 12 declination 2006 / Vietnam Ho use business, real estate brokerage and leasing, warehouse and get into leasing VND160 cardinal 100% Vietnam Dairy Cow 14 celestial latitude 2006 / Vietnam education of dairy cow, mixed ending and breeding, sale and purchase of alive animals VND100 gazillion 100% Lam Son Dairy 6 February 2007 / Vietnam Production and backup of canned milk, small-grained milk and other dairy products, baby food, cake, soja milk, beverages, dairy cow breeding, trade of engine room and equipment, knifelike actuals VND80 one million million million 55% SABMiller JV 30 June 2006 / Vietnam Production and trade of beer and US$13. 5million other fruit flavoured beverages with (approximately low alcoholic ratio VND217 billion) 50% 17 MaNageMeNt describe StrUctUre SharehOLDerS MeetINg BOarD OF MaNageMeNt geNeraL music theater director substitute geNeraL handler OF raW MaterIaLS DeVeLOPMeNt DePUtY geNeraL coach OF PrODUctION PLaNNINg & IM-eXPOrt DePUtY geNeraL carriage/ FINaNce music director handler OF theatre director OF raW VIetNaM MaterIaLS DaIrY cOW ONeDeVeLOP MeNt MeMBer LtD. ,CO PrODUc tION PLaNNINg DIrectOr IMeXPOrt DIrectOr DIrectOr OF r&D ceNter chIeF accOUNt emmet PLaNNINg DIrectOr INVeSt MeNt DIrectOr It DIrectOr cONStrUctION DIrectOr M&e DIrectOr 18 A n n u a l R e p o r t 2 0 0 7 revaluation cOMMIttee INterNaL aUDIt DIrectOr DePUtY geNeraL DIrectOr/ PrOJect DIrectOr DePUtY geNeraL DIrectOr OF SALES, MARKETING & client DeVeLOPMeNt tech. DIrectOr DIrectOr OF INt. reaL eState ONeMeMBer LtD. , cO MKt DIrectOr cUStOM er DeV eLOP MeNt DIrectOr BraNch DIrectOr gross gross gross sales DIrectOr hr DIrectOr aDMIN DIrectOr DIrectOr OF aN KhaNg cLINIcDIrectOr OF DePOt DIrectOr OF FactOrY 19 20 A n n u a l R e p o r t 2 0 0 7 TASTY 21 BOarD OF MaNageMeNt from top to bottom Ms Mai Kieu Lien Ms nongovernmental organization Thi Thu Trang Mr Dominic Scriven Mr Hoang Nguyen Hoc Mr Wang Eng bring up 22 A n n u a l R e p o r t 2 0 0 7 MS MaI KIeU LIeN Chairwoman, public Director H as been the Chairwoman of our age of focal point since 14 November 2003. From lordly 1976 to August 1980, she was an engineer in heading of the condensed milk intersection at Truong Tho Dairy Factory. surrounded by September 1980 and February 1982, she was a technology engineer in the Technical department of the United Enterprises of Milk Coffee Cookies and Candies I.She served as a vice technical director in defeat of production at Thong Nhat Dairy Factory from February 1982 to June 1983. afterwards finishing her training at Economic University of Leningrad in the former Soviet Union ( presently Russia), in July 1984 Ms Lien was nominate legate cosmopolitan director of the United Enterprises of Milk Coffee Cookies and Candies I. In December 1992, she was kick upstairsd to ecumenic director of Vietnam Dairy Products Company. On 14 November 2003, she was elected chairwoman of the Board of solicitude and thereafter prescribed as world(a) Director of our Company. Ms Lien gradational from Moscow University of Meat and Milk Processing, Russia with a bach of science ground level in 1976.She holds a Certificate of Economic steering from University of Economy, Russia, and a Certificate of Government Management from National Political Institute, Vietnam. MS NgO thI thU traNg fragment, delegate General Director, CFO Mr DOMINIc ScrIVeN Member Has been a component of our Board of Management since 14 November 2003, and Deputy General Director and pay Director of our Company since March 2005. Ms Trang joined our Company in 1985 as a financial analyst, and in January 1995 she became a Vice managing director in the Accounting-Statistics department of the Vietnam Dairy Products Company. She held this go under until December 1997 and served for a brief time among January 1998 and February 1998 as the Head of the AccountingStatistic department.Between February 1998 and March 2005, Ms Trang held the baffle of the Chief Accountant in charge of the Accounting department of the Vietnam Dairy Products Company. In March 2005, she was positive deputy general director and pay director. Ms Trang graduated from the Finance-Accounting University, Ho Chi Minh City, with a bach of liberal arts breaker point majoring in flyering and finance in 1984. She also holds a Master of Business judgeship percentage point from the Open University, Ho Chi Minh City. Has been a particle of our Board of Management since 31 March 2005. From 1985 to 1986, Mr Scriven was an appurtenant to the board of directors at M&G investiture Management where he assisted the board in matters relating to investments in the europiuman and Asia regions.Between 1986 and 1988, he was a consultant at the investment banking arm of Citigroup where he assisted in the setting up and consulting for ternion investment funds, namely Thailand memory board, Seoul International Trust and Korea International Trust. Mr Scriven held the position of director in charge of investment at Sun Hung Kai Investment Fund between 1989 and 1991. He posterior joined Peregrine Corporation where he oversaw the capital market development. He co-founded Dragon seat of government free radical Limited in 1994 and currently holds the position of managing director. Mr Scriven graduated from the University of Exeter in 1985 with a Combined Honour degree in Laws and Sociology.He was awarded the Order Of The British Empire (OBe) in the Queen Elizabeth IIs 2006 New Years Honours List. Mr hOaNg NgUYeN hOc Member Mr WaNg eNg c hIN Member Has been a extremity of our Board of Management since 4 November 2006. Prior to being appointed to our Board of Management, Mr Hoc had extensive sustain within the Ministry of Finance of Vietnam. From October 1999 to June 2003, Mr Hoc was a deputy director in the department for state-owned enterprises financial management. He was appointed as Deputy General Director of the State Capital Investment Corporation in January 2008. Mr Hoc holds a Master of Business Administration degree from Ha Noi National University. Has been a member of our Board of Management since 31 March 2007.Between 1987 and 1988, Mr Wang worked as a corporate development executive with parky entrepot (S) Pte Ltd. He was a manager, Plain Heaven Cold Storage (S) Pte Ltd from 1988 to 1991. Mr Wang joined F&N Foods Pte Ltd as a general sales manager in 1991 and held this position until 1997. Between 1997 and 2003, he served as a deputy general manager at F&N Foods Pte Ltd and F&N Dairies (M) Sdn Bhd. I n 2003, he became a general manager responsible for(p) for general management of F&N Foods Pte Ltd and F&N Vietnam Foods and held this position until September 2006. On 1 October 2006, he was appointed acting chief executive officer in charge of general management of the Food & Beverage Division, Fraser & Neave Group.He graduated from University of Mississippi, USA, in 1984 with a Bachelor of Business Administration and in 1987 with a Master of Business Administration. 23 BOarD OF DIrectOrS from leftover to right Ms Nguyen Thi Thanh Hoa Ms Mai Kieu Lien Mr Tran Minh Van Ms Nguyen Thi Nhu return Mr Tran Bao Minh Ms Ngo Thi Thu Trang MS MaI KIeU LIeN General Director MS NgUYeN thI thaNh hOa Deputy General Director Mr traN BaO MINh Deputy General Director (See Board of Management for imformation about Ms Mai Kieu Lien) MS NgO thI thU traNg Deputy General Director, CFO (See Board of Management for imformation about Ms Ngo Thi Thu Trang) Has been a Deputy General Director of our Comp any since 2000.Between September 1978 and June 1983, Ms Hoa was a lecturer at the Foodstuff and Process & Equipment departments at the Ho Chi Minh Polytechnic University. She later joined our Company in July 1983 as a process engineer at Truong Tho Dairy Factory. Ms Hoa held the positions of deputy director and then director in charge of overall operation of Truong Tho Dairy Factory from July 1991 to 1999. From January 2005, Ms Hoa is a deputy general director of Vietnam Dairy Products Company. She is currently in charge of planning, import, export and look and development of our Company. Ms Hoa graduated from Milk Processing Technology University, Moscow, in 1978 with a Bachelor degree in Milk Processing Technology.Mr Minh joined PepsiCo Vietnam in September 1997 as a selling manager and was promoted to selling director in August 2001 where he was in charge of the aspect, management and execution of merchandising strategies for PepsiCos six leading grasss in Vietnam, namely Pe psi, 7-Up, Mirinda, Aquafina, Twister and Sting. He was later transferred to PepsiCos headquarters in New York in February 2004 where he held the position of global Pepsi innovation director and led Pepsis global product and packaging innovation agenda. Between April 2005 and August 2005, Mr Minh was seconded to PepsiCo Thailand as marketing director in charge of verbalismting Pepsis marketing strategy in Thailand for non-carbonated beverages.From August 2005 to September 2006, 24 A n n u a l R e p o r t 2 0 0 7 Mr traN MINh VaN Deputy General Director MS NgUYeN thI NhU haNg Deputy General Director he served as marketing director of PepsiCos Asia Pacific business unit where he man cured PepsiCos Mountain Dew, 7-Up and Mirinda dishonors of beverages for the Asia Pacific region. Mr Minh joined Vinamilk in Octocber 2006 as Deputy General Director in charge of Sales, Marketing and Customer Development. Mr Minh graduated from the Ho Chi Minh City University of political economy in 199 1 with a Bachelor of Arts majoring in business planning and obtained a Masters in Commerce degree from the University of occidental Sydney in 1996.As a testament to his contribution to PepsiCo, he was awarded the Asia Pacific component part vendor of the Year award in 2002 and Top Performance Marketer in the Asia Pacific Region award in 2003 by PepsiCo. Has been a Deputy General Director of our Company since July 2006. Between 1990 and July 1994, Mr Van was a deputy director assisting the director of Thong Nhat Dairy Factory. In August 1994, he was appointed director of the Thong Nhat Dairy Factory and continued to hold this position until June 2006. He was appointed Deputy General Director in charge of the Project department of our Company in July 2006. Mr Van graduated from Ho Chi Minh City Polytechnic University in 1981 with an engineering degree. He obtained Bachelor in Business Administration from Ho Chi Minh City University of political economy in 1994, a LLB degree (with m ajor in commercial laws) from Ha Noi University of Laws in 2001, and a Master in Business Administration from Ho Chi Minh City University of Economics in 2003. Ms advert first joined our Company in 1981 where she held the position of deputy manager in the phthisis department until 2001. She was later promoted to the position of director in August 2001 where she was in charge of managing the Warehouse Enterprise until December 2002. Ms Hang was promoted to deputy general director in January 2003 where she was and still is in charge of the technical project department. She is also in charge of managing and developing dairy farms that supplement raw milk to the Company. In July 2007, Ms Hang was appointed director of Vietnam Dairy Cow Limited Company with One Member, a subsidiary of our Company.Ms Hang graduated from the Ho Chi Minh City University of Economics in 1994 with a bachelor degree in business administration. 25 INSPectION cOMMIttee MS Le thI KIM aNh Member Mr NgUYeN VIet c UONg Head of reexamination Committee MS NgUYeN thI tUYet MaI Member Between August 2001 and December 2004, she worked as a fourth-year scrutinizeor at PricewaterhouseCoopers Vietnam Limited. She joined VietFund Management in December 2004 as a portfolio manager for Vietnam Growth Investment Fund (VF2). Ms Kim Anh graduated from the University of Economics, Ho Chi Minh City, with a bachelor degree majoring in accounting and size uping. Mr Cuong began his career at KPMG Vietnam in 1998 until 2002 as a senior auditor.Between 2003 and 2004, he was a management accountant at Unilever Bestfoods Vietnam where he was responsible for inside management reporting for food business of Unilever Vietnam. In 2004, he joined VinaCapital Group and now being a deputy managing director in charge of managing the portfolio for Vietnam Opportunity Fund. Mr Cuong was elected head of our Companys command Committee in December 2003. He graduated from the University of Economics, Ho Chi Minh City, with a bachelor degree in economic science majoring in banking in 1994. Mr Cuong is holding an ACCA certificate issued by the Association of hire Certified Accountant, United Kingdom.From 1993 to 1997, Ms Mai held the position of manager at ANZ Bank, Ha Noi Branch where she was responsible for trade finance and corporate banking relationship management. Between 1999 and 2003, she was a manager at ANZ Bank, Singapore Branch where her incur cover relationship management for the corporate banking division, international banking strategy, structure commodity, trade finance and Asian region credit management. From 2004 to May 2007, she served as senior manager at the representative office of Openasia Consulting Ltd in Ho Chi Minh City. In June 2007, she was promoted to the position of director of corporate finance in charge of consulting services at Openasia Consulting Vietnam Ltd.Ms Mai graduated from the Ha Noi University for Foreign Language Studies in 1991 with a bachelor degree major ing in English and obtained a master degree in business administration from the University of Melbourne in 1999. 26 A n n u a l R e p o r t 2 0 0 7 27 28 A n n u a l R e p o r t 2 0 0 7 HEALTHY 29 cOPOrate brass Our Directors recognize the importance of corporate governance and the offer of high standards of answer top executive to our Shareholders. a. Board of Management Matters the Boards conduct and its affairs The Company should be leaded by an effective Board to lead and apply the Company. The Board is collectively responsible for the success of the Company. To facilitate effective management, legitimate functions have been delegated by the Board to various Board Committees.The Board Committees operate under clearly defined terms and reference. The Board conducts meeting on a quarterly hind end during the year. Ad-hoc meetings are convened when circumstances required. The meetings can be conducted by means of telephone conference or other methods of simultaneous communica tion by electronic or telegraphic means. Every member of the Board should be able to obtain self-sustaining advice and use supreme judgement when making decisions. control Committee is also informed and invited to envision the Boards meetings. A record of the Directors attendances at the Board level meetings during the financial year end 31 December 2007 is disclosed as follows Seq. 2 3 4 5 Name of Director Ms Mai Kieu Lien Ms Ngo Thi Thu Trang Mr Hoang Nguyen Hoc Mr Dominic Scriven Mr Wang Eng bring up No. of meetings 5 5 5 5 5 attendance 5 5 5 5 5 Board composition and residual There should be a strong and independent element on the Board, which is able to exercise objective judegement on corporate affairs singly from Management. No respective(prenominal) or small group of some(prenominal)(prenominal)s should be allowed to get over the Boards decision making. The Board has maintained a strong and independent element, with three out of five directors being independent. T he Board comprises of the following members executive Directors Ms Mai Kieu Lien Ms Ngo Thi Thu Trang ChairwomanNon executive Directors Mr Hoang Nguyen Hoc Mr Dominic Scriven Mr Wang Eng Chin The profiles of the directors are set out on page 22 of this one-year report. Vinamilk has a good balance of directors who have extensive business, financial, accounting and management experience. The objective judgement of the independent and non-executive directors on corporate affairs and their experience and contributions are valuable to Vinamilk. 30 A n n u a l R e p o r t 2 0 0 7 Board social rank There should be a formal and transparent process for the booking of new directors to the Board. Any nomination of new directors should go finished a formal picking process the Board should appoint the new director and then he should be officially nominated by the Annual General Meeting (AGM).Board Performance There should be a formal judgment of the effective of the Board as a whole and t he contribution of each Director to the effectiveness of the Board. access of Information Board members are provided with competent and timely breeding prior to Board meetings and on an on-going creation to enable them to carry their duties. The Board of Directors provides with adequate and timely knowledge as well as a review of Vinamilks performance prior to the Board meetings. The Board has separate and independent access to Vinamilk s senior management and secretary, should they have any queries on the affairs of Vinamilk . A find oneself of meeting, which contains agenda, is issued to the Board prior each Board meeting.Vinamilks secretaries attend all the Board meetings and are responsible for ensuring that Board procedures are followed and that applicable rules and regulations are complied with. The Companys secretaries are Mr Nguyen Thanh Tu Ms Le Quang Thanh Truc (Administration Director) (Financial Investment Manager) B. pay Matters net profit Policy The Remuneration Committee reviews and recommends to the Board an appropriate and competitive framework of remuneration for the Board. A formal and transparent procedure is apply when setting the remuneration packages of individual directors. No director is involved in deciding his own remuneration.The composition of the Remuneration Committee is as follows Mr Dominic Scriven Mr Wang Eng Chin Ms Vu Bich Nghia (Chairman, Non-Executive Director) (Member, Non-Executive Director) (Member, Human Resources Director) The Remuneration Committee recommends to the Board for endorsement a framework of remuneration for blusher executives, specific remuneration packages for each member of the Board of Management, Chairwoman and General Director. 31 cOPOrate gOVerNaNce Level and coalesce of remuneration The level of remuneration should be appropriate to thread, concur and impel the directors needed to run Vinamilk successfully but Vinamilk should avoid paying more than is necessary for this purpose.A propo rtion of remuneration should be based on corporate and individual performance. In setting remuneration packages, the Remuneration Committee takes into devotion pay and employment conditions within industry and in comparable companies, the carnal knowledge performance of Vinamilk as a whole, as well as individual Directors and separate executives. An yearbook performance incentive plan has been implemented for all employees. Directors fees, Inspection Committees fees were approved by shareholders at Vinamilks Annual General Meeting for the financial ended 31 December 2007 as follows Fee/month (VND million) Board Chairwoman Board Members Inspection Committee Chairman Inspection Committee Members 13 7 8 6Performance bonus framework for the Board of Management and Board of Directors was approved by shareholders at Vinamilks Annual General Meeting for the financial ended 31 December 2007 as follows If achieving the targeted profit after tax 0. 1% on profit after tax. Exceeding the targeted profit after tax additional 20% of the exceeding targeted profit after tax. Disclosure of remuneration The remuneration of directors is set out below FY 2007 Board of Management Ms Mai Kieu Lien Ms Ngo Thi Thu Trang Mr Hoang Nguyen Hoc Mr Dominic Scriven Mr Wang Eng Chin Board of Directors Mai Kieu Lien Ngo Thi Thu Trang Nguyen Thi Thanh Hoa Nguyen Thi Nhu Hang Tran Minh Van Tran Bao Minh Notes A Below VND3 billion B From and supra VND3 billion.B A A A A B A A A A A A A A A A A A A A A A FY2006 32 A n n u a l R e p o r t 2 0 0 7 The amounts paid to the members of the Board of Management and the Board of Directors include the bonus determined in the manner described under Labour Contracts Performance Bonus for members of the Board of Management and the Board of Directors c. right and audit Financial reporting The Board is accountable to the shareholders while the Management is accountable to the Board. The Board should present a balanced and understandable assessment o f Vinamilks position and prospects in the yearbook accounts and other reports such as interim reports to regulators.The Board meeting is held on a quarterly basis to review Vinamilks performance and quarterly summerised financial report is submitted to Ho Chi Minh City Stock Exchange (HOSE). Annual General Meetings are held every year to obtain shareholders approval of routine business. essential controls The Board should picture that the Management maintains a sound system of infixed controls to safeguard Vinamilks assets and shareholders investments. With the assistance of the Internal Auditors, the Board and the Inspection Committee reviews the effectiveness of the chance upon internal controls and ensures that the necessary corrective actions are taken on a timely basis.There are formal procedures in place for both(prenominal) internal and external auditors to report independently conclusions and recommendations to Management and Inspection Committee. Internal audit Vinam ilk should establish an internal audit function that is independent of the activities it audits. Vinamilk appointed Internal Audit Director and established its internal audit function in September 2005. The key scope of internal audit is Review the effectiveness of Vinamilks internal controls Provide assurance that key business and operational gambles are identified and man corned Internal controls are in place and functioning as intended and Operations are conducted in an effective and efficient manner.The Internal Audit Director reports directly to General Director. communication with Shareholders Vinamilk regularly communicates with its shareholders, striving for timeliness and transparency in its divine revelation to shareholders and the public. Regular meetings and dialogues are held with investors, analysts, fund managers, and press. When material information is disseminated to HOSE, such information is simultaneously posted on the Companys website at www. vinamilk. com. vn V inamilk encourages shareholder participation at its annual general meetings and gives shareholders the opportunity to communicate their views on matters effecting Vinamilk. 33 ISK MaNageMeNt Foreign capital risk Foreign funds risk arises when there is a mismatch of funding foreign currency predominate assets with liabilities of the same currency. The exposure to foreign currency risk in this aspect was not significant in 2007, but may have a significant impact on Vinamilk s performance in the coming years. Vinamilk always consider employ appropriate financial instruments, as and when necessary, to mitigate this risk. Liquidity risk Vinamilk s exposure to placidity risk arises in general funding of Vinamilk s business activities. It includes the risks of being able to fund business activities in a timely manner.Vinamilk adopts a responsible approach to managing its fluidnessity risk by maintaining sufficient cash and vendible securities, and has usable funding through a div erse source of perpetrate and uncommitted credit facilities from various banks. As at 31 December 2007, Vinamilk s net borrowings are as follows 2007 Cash and cash equivalent Borrowings Net borrowings 114 42 2006 157 60 credit risk Vinamilk s maximal exposure to credit risk in the event that the customers fail to perform their obligations as at 31 December 2007 in relation to accounts due is its carrying amount as indicated in the balance sheet. Vinamilk has policies in place to ensure that sales of products are made to customers with an appropriate credit history. eliance on find out Management Personnel Although we are not dependent on any one person in our Board of Management or our Board of Directors, our success depends to a significant extent on the skills, capabilities and efforts of our Board of Management and our Board of Directors, as well as our ability to recruit and retain appropriately trained personnel to take up positions on these Boards. Our ability to continu e to attract, retain and motivate key personnel and senior members of our Board of Management and Board of Directors will have an impact upon our operations. The competition for skilled and highly-capable personnel is intense, and the loss of the services of one or more of these individuals, without adequate replacements or the inability to attract new qualified personnel at a reasonable cost, would have a material adverse effect upon our financial performance and operations.To mitigate this risk, Vinamilk has been employing remuneration policy to maintain and attract the talents. export Market risk We currently export our products to Iraq, Thailand and other countries in Asia and Europe. Demand for our products depends on the political and economic stability of these countries. As Iraq is one of our major export countries, any social, political or economic exhilaration in the country may materially adversely affect our operation results. Vinamilk has been focusing on its local mar ket which is considered as its main market. Simultaneously, Vinamilk is also looking for other potential export markets to mitigate the risk. 34 A n n u a l R e p o r t 2 0 0 7 35 BUSINeSS OVerVIeWSince we commenced operations in 1976, we have built strong stigmatize name recognition for our dairy products in Vietnam. Our Vinamilk brand is currently a widely recognised dairy brand in Vietnam. 36 A n n u a l R e p o r t 2 0 0 7 Vietnam Dairy Industry Overview Fuelled by the revealing economic growth in the past decade, the dairy industry in Vietnam has go through rapid growth in recent years. Coinciding with amendments in living standards in Vietnam, the more widespread availability and affordability of production technologies, and bulky improvements in infrastructure have led to an overall increase in the variety, quality and legal age of dairy products produced in Vietnam.The market has also undergo an influx of foreign multinational companies. Total dairy product sales in Vietnam have grown by 53. 6% from approximately US$418 million in 2003 to achieve approximately US$642 million in 2007. The following chart sets forth total dairy product sales in Vietnam between 2003 and 2007. 2003 2007 total dairy product sales in Vietnam (US$ million) 642 530 418 472 589 2003 2004 2005 2006 2007 Source Euromonitor International This strong growth in demand for dairy products is expected to continue on the back of strong GDP growth, a growing urban population with heightened disposable income and an increased awareness about the health benefits of dairy products.Euromonitor International estimates that total annual consumption of dairy products in Vietnam to grow from approximately US$1,332 million in 2007 to reach approximately US$1,902 million by 2011. These factors should kick down to a significant increase in Vietnams very low per capita consumption of dairy products compared to Western countries. The below chart compares Vietnams per capita consumption of dairy products to Asia, Europe and North America between 2003 and 2007. 436 461 382 331 407 192 201 214 225 229 11 25 2003 12 27 2004 13 29 2005 14 32 2006 Europe 16 35 2007 Vietnam Asia North America Source Euromonitor International 37 VINaMILK We are the leading producer of dairy products in Vietnam based on sales volume and revenue.Our products range from encumbrance dairy products such as liquid and powdered milk, to value-added dairy products such as condensed milk, drinking and take yoghurt, ice cream, and cheese. We offer one of the largest dairy portfolios in Vietnam, across a wide selection of products, flavours, and packaging sizes. According to Euromonitor, Vinamilk has been the number 1 dairy player in Vietnam for the three years ending 31 December 2007. 38 A n n u a l R e p o r t 2 0 0 7 Since commencing operation in 1976 we have built the largest statistical distribution cyberspace in Vietnam and have leveraged our entanglement to introduce new products to the mark et, such as juices, soy sauce milk, bottled drinking water and cocoa.We market the majority of our products under our Vinamilk brand, which has been designated as both a Famous Brand and one of the Top 100 secureest Brands by the Vietnamese Ministry of Industry and Trade in 2006. We have also been voted the top brand in the Top Ten High-quality Vietnamese Goods for each year between 1995 to 2007. We currently focus on business activities in the fast growing Vietnamese dairy market, which according to Euromonitor has grown at a CAGR of 7. 85% from 1997 to 2007, and produce the majority of our products at our nine operational production facilities with a feature capacity of 570,406 tonnes per annum. We have the leading distribution network in Vietnam, expectant us broad access to consumers.We generate a substantial majority of our revenues from sales of our products in Vietnam comprising both dairy and non-dairy products and export to countries such as Australia, Cambodia, Iraq, t he Philippines and the United States. Strong supplier relationships to ensure a dependable milk tally Highly experienced management with a proven intersect record of delivering strong overall business performance World menage production facilities. Leading market position supported by wellestablished brand name Since we commenced operations in 1976, we have built strong brand name recognition for our dairy products in Vietnam. Our Vinamilk brand has been in use since our establishment and is currently a widely recognised dairy brand in Vietnam.We believe we have achieved our dominant market position through our focus on advertising, marketing and continuous improvement in product innovation and quality assurance. Based on our long-standing presence in Vietnam, we believe we are better able to identify and understand consumer trends and preferences, that allows us to focus our development efforts on identifying product attributes that are more or less valued by our customers. For example, our deep understanding and efforts have helped our Vinamilk Milk nestling range of products mystify one of the best selling milk product marketed at children aged between six and 12 years in Vietnam in 2007. Strong and diversified product portfolio We offer a wide range of dairy products targeting a wide spectrum of consumers.We have product lines that are targeted at individual consumers including young children, young adults and also the elderly as well as products targeted at general households and commercial outfits such as cafes. In addition, by offering consumers a diverse range of products in different package sizes, we are able to offer our customers a measure of portability and convenience unique to dairy products being sold in Vietnam. OUr cOMPetItIVe StreNgthS We believe that our success to date and potential for future growth can be attributed to a crew of our strengths, including the following Leading market position supported by wellestablished bran d name Strong, diversified product portfolio Extensive sales and distribution network Strong market-oriented development capabilities look for and 39 xtensive sales and distribution network We believe our extensive sales and distribution network is critical to the success of our operations, enabling us to reach a wide range of customers and ensure an efficient and effective rollout of new products and marketing campaigns nationwide. As of 31 December 2007, we sell our products across all 64 provinces including five telephone exchangely-controlled municipalities in Vietnam. Our experienced sales team, assists our distributors to service the end retailers and consumers, and promote our products. Our sales team is also responsible for servicing and supporting the distribution activities and development of new relationships with distributors and retailers. In addition, we organise various marketing and promotional activities with local distributors aimed at promoting our products and building our brand image across the nation.In addition to our domestic distribution networks, we are currently in the process of negotiating the terms of submit contracts with potential business partners in countries such as Thailand, Australia and the United States. We are also one of the few food and beverage companies that have a readily available network of refrigerated coolers. The availability of coolers poses a high barrier of door for competitors who may wish to enter the food and beverage market as the establishment of a refrigerated cooler network requires a substantial amount of capital expenditure. Strong supplier relationships to ensure ravisher milk supply A consistent supply of high quality raw milk is crucial to our business.Accordingly, we have established strong relationships with our suppliers through our well-heeled pricing policies, provision of financial support to farmers to purchase dairy cattle and price incentives for milk of higher quality. We have en tered into annual contracts with our milk suppliers and currently purchase over approximately 40% of all domestically produced raw milk. Our production facilities are strategically located close to dairy farmers in Vietnam to enable us to maintain and strengthen our relationships with them and we carefully select the locating of our milk collection centres to maintain its refreshfulness and quality. We also source raw milk powder from Australia and New Zealand to meet our production demands in terms of quantity and quality.We believe that our ability to obtain a steady supply of raw milk is crucial to our business and allows us to maintain and increase our production output. Strong market-oriented research and development capabilities We have a sales and marketing team that is experienced in analysing and identifying consumer preferences and trends, and support ground cater who have a thorough understanding of consumer preferences through constant mop up with our customers at o ur various points of sale. For example, our understanding of the preferences of young consumers aged between six and 12 has helped us successfully launch our Vinamilk Milk Kid marketing campaign in May 2007.As a result of our successful marketing campaign, Vinamilk Milk Kid was the best selling milk marketed at children aged between six and 12 in 2007. We also have strong capabilities in product research and development with a view to improve product quality and increase product variety for consumers. We have a research and development team comprising 10 engineers and one technical staff. Our researchers work closely with our marketing department who in turn collaborate with several market research agencies to identify the trends in consumer preferences. We believe our ability to develop new products based on consumers evolving preferences has been a key factor in our success and will continue to play a key theatrical role in our future growth and development.In an effort to ensure that our products are in line with the latest consumption trends, we actively conduct research and work with market research companies to study trends in 40 A n n u a l R e p o r t 2 0 0 7 sales performance, customer feedback, food and beverage-related media. highly experienced management with a proven track record of delivering strong overall business performance We are managed by an experienced and dedicated management team with extensive industry experience. Our Chairwoman, Mdm Mai Kieu Lien, has over 30 years of experience in the dairy industry with the Company and has played a critical role in the growth and development of the Company to where it stands today.Our marketing team is led by Mr Tran Bao Minh, who has over 10 years of branding and marketing experience in the beverage industry and has been instrumental in reviving our brand image and product innovation. Other members of our senior management team have an average of 25 years experience in the manufacturing, distribut ion and sale of dairy products. We also have a strong middle management team that is well-equipped to support our senior management and stay abreast of changes in the market place. World class production facilities We use modern production and packaging technologies in all of our manufacturing facilities. We employ technologies imported from European countries such as Germany, Italy and Switzerland in ur production lines. To the best of our knowledge, we are the only company in Vietnam who has the machinery utilising the spray dry technology produced by Niro Inc, Denmark, a world leader in industrial drying technologies. We also employ world class production lines provided by Tetra Pak for our dairy and value-added dairy products. OUr BUSINeSS StrategIeS We aim to maximize shareholder value and pursue a business growth strategy based on the following principal components Expansion of market share in existing and new markets Develop a comprehensive portfolio of dairy products to ta rget a broader consumer base and expand into higher margin alue-added dairy products Development of new product lines to satisfy different consumer preferences Brand cultivation Continuously enhancing supply chain management Development of raw material sources to ensure a reliable and consistent fresh milk supply base. 41 BraND POrtFOLIO We currently have 4 mega brands as follows beauteous Life Mums Love 42 A n n u a l R e p o r t 2 0 0 7 Passion to Win Natural Freshness 43 PrODUct 44 A n n u a l R e p o r t 2 0 0 7 Overview We produce a broad range of dairy products with different types and flavours of powdered milk, infant cereals, UHT liquid milk, UHT drinking yoghurts, spoon yoghurt, attractive condensed milk and cheese.We have established different teams to be responsible for the research and development, raw materials procurement, supervision of outsourced manufacturing, marketing, sales and distribution of products under our core brands and other brands. Our core dairy products such as liquid milk and powdered milk represent two of our largest product segments, and accounted for approximately 25. 4% and 23. 0%, respectively, of our revenue in 2007. Within the liquid milk segment, Vinamilk Milk Kid range constituted the largest single item and accounted for approximately 7. 0% of the liquid milk revenue of Vinamilk and approximately 2. 1% of our overall revenue in 2007.Other dairy products such as our condensed milk and yoghurt products have been experiencing steady growth over the past two years and accounted for approximately 34. 0% and 10. 0% of our revenue in 2007. Our condensed milk product is showing hopeful growth where our revenue for our condensed milk products in FY2007 has experienced an approximate 38. 0% increase from FY2006. Dairy Products Liquid Milk We produce, distribute and sell liquid milk in Vietnam under the Vinamilk Brand. Our revenue from sales of liquid milk grew from approximately VND1,469 billion in 2006 to approximately V ND1,736 billion in 2007, representing a compound annual growth rate of approximately 18%.As of 31 December 2007, we account for approximately 35% of the liquid milk market in Vietnam based on a combination of data from internal trailing systems and statistics and externally accredited reports by AC Nielsen, tracking consumption patterns in 36 of the 64 provinces (including five centrally controlled municipalities). Our liquid milk segment includes the following three product categories Plain milk Flavoured milk Special needs milk such as Calcium and DHA fortify milk and skim milk 45 Our Vinamilk brand is one of our core brands for liquid milk, drinking yoghurt, spoon yoghurt, ice cream, probiotic and cheese. We have foc utilise on building up our product image to be one that is easily associated with a healthy, beautiful and balanced lifestyle. Vinamilk UHT milk has consistently dominated the Vietnamese liquid milk market. It is targeted at consumers aged six years and above.Ou r Fino face pack range of UHT milk offers flavours such as unfermented, sugarfree, strawberry and chocolate and comes in packages of 250ml. Our Vinamilk UHT fresh milk range was officially launched in April 2007 and is targeted at the subvention market in Vietnam. Our Vinamilk UHT fresh milk products are manufactured using 100% raw fresh milk. We believe our competitive edge in this market segment lies in our ability to ensure consistent supply from local dairy farmers and our wide network of milk collection centres. Our Vinamilk UHT fresh milk products are available in 180ml and one litre cartons. officially launched in September 2007, Vinamilk Milk Kid range is targeted at consumers aged between six and 12 years old.Our Vinamilk Milk Kid products are available in a range of flavours such as Strawberry, Chocolate, gratifying and DHAfortified and are available in 180ml packs. 46 A n n u a l R e p o r t 2 0 0 7 powderise Milk We first introduced our range of powdered milk produ cts in 1988. As at 31 December 2007, our revenue from powdered milk products account for approximately 13. 8% of the market value in Vietnam based on a combination of data from internal tracking systems and statistics and externally commissioned reports by AC Nielsen tracking consumption patterns in six key cities such as Ha Noi, Ho Chi Minh City, Can Tho, Da Nang, Hai Phong and Nha Trang.However, our revenue from sales of powdered milk decreased from approximately VND2,191 billion in 2006 to approximately VND1,584 billion in 2007, in general due to the decrease in export sales. Our Dielac powdered milk range is targeted at consumers with children aged six years and below. Our powdered milk products can be categorised into two main segments Two formulas priced within two different price ranges. Dielac superstar is priced at the lower range of the two and is marketed as an inexpensive and quality product. It is manufactured with Pro5S formulation containing DHA, Choline, Inuline, Canxi and MCT Oil. Dielac Alpha is produced with a unique formulation containing colostrums, DHA, Omega 3 and Omega 6 fatty acids.It is priced at a premium over Dielac Star given its higher Colostrum content. Our Dielac line of powdered milk products has experienced an annual growth rate of approximately 16% over the past four years. Our traditional Ridielac infant and follow-on formula is manufactured using MAX-4D (with 4D representing Development, Digestion, Deliciousness and Dependability) technology, combining nutrient-rich milk, natural foods such as meat, shrimp, vegetables, vitamins and minerals. Our formula is designed to optimise nutrient absorption in children during their growing years and enhance appetites. Ridielac infant cereal is targeted at consumers with children aged between four and 24 months.Ridielac is produced with a unique formulation containing colostrums and is marketed as a value-for-money product. 47 Condensed Milk Condensed milk is one of our most succes sful products and largest revenue contributors, representing approximately 34. 0% of our total revenue in 2007. Our revenue from sales of our condensed milk products grew from approximately VND1,690 billion in 2006 to approximately VND2,332 billion in 2007, representing a compound annual growth rate of approximately 38%. As at 31 December 2007, we hold a market share of approximately 79% in the condensed milk market in Vietnam based on a combination of data and statistics from internal tracking systems tracking the sales volume of our competitors products.Southern Star (Ngoi Sao Phuong Nam) is part of our commercial line under our condensed milk segment, and is primarily marketed to commercial outfits and cafes and is commonly consumed with java or mixed fruits. It is priced economically to offer enhanced profit margins to proprietors. Ong Tho is part of our household line of quality products and is primarily targeted at Vietnamese households. It can be consumed either hot or cold and is commonly used as a cooking or baking ingredient. Our Ong Tho brand of condensed milk is priced at a premium over our Southern Star brand of condensed milk due to its higher calcium and protein content. 48 A n n u a l R e p o r t 2 0 0 7 Yoghurt Products We produce, distribute and sell our drinking yoghurt and spoon yoghurt in Vietnam under the Vinamilk brand.Our yoghurt products represent one of our key focus growth areas, and our revenue from sales of yoghurt products grew from approximately VND634 billion in 2006 to approximately VND698 billion in 2007, representing a compound annual growth rate of approximately 10%. As at 31 December 2007, we hold a market share of approximately 26% in the drinking yoghurt market and approximately 97% in the spoon yoghurt market in Vietnam based on a combination of data from internal tracking systems and statistics and externally commissioned reports by AC Nielsen, tracking consumption patterns in 36 out of the 64 cities (including five ce ntrally controlled municipalities) in Vietnam. Vinamilk Drinking Yoghurt is available in three flavours Fruit, Orange and Strawberry in 180ml packs. Vinamilk Spoon Yoghurt is targeted at the average Vietnamese household.Marketed as a fresh tasting, delicious and high quality health product, our Vinamilk Spoon Yoghurt product line has dominated the spoon yoghurt market in Vietnam with a market share of approximately 97%. It is available in a variety of flavours such as Strawberry, Fruit, SugarFree with Kefir and Sweetened in 110g carton packs. In addition to the abovementioned dairy products, we also manufacture other dairy products such as ice-cream and cheese. 49 Ice-cream We introduced our brand of ice-cream products in 1976 and produce, distribute and sell our ice-cream in Vietnam under the Vinamilk Brand. Vinamilk Ice-cream is targeted at the midend ice-cream market in Vietnam.It comes in a variety of flavours such as Chocolate, Coconut, Durian, Green Bean, Strawberry, Vanilla a nd Taro. Our ice-cream products are available in 450ml or one-litre tubs and also available in pre-packed ice-cream cups, popsicles and cones. Cheese Vinamilk Cheese was launched in 2000 under our outlook of the potential of the cheese market in Vietnam. The product is currently targeted at the average Vietnamese household and is manufactured using French technology and is available in 140g packs. Non-Dairy Products Other Food and Beverages In addition to our dairy products, we also manufacture and distribute other F&B products such as our V-Fresh line of juices and soya bean milk, Cafe Moment coffee and ICY bottled water.The revenue for this product segment accounted for approximately 2% of the total revenue of the Company. 50 A n n u a l R e p o r t 2 0 0 7 V-Fresh The product range was introduced in 1990. V-Fresh Juice is designed to target young adults, offering them healthy refreshments that promote a image that is energetic and full of vitality. V-Fresh Juice is manufactured using natural fruit juices. It is available in one litre packs and in a variety of flavours such as Apple, Carrot, Custard-apple, Grape, Grapefruit, Guava, Orange, Peach and Pineapple. Packaged in Tetra Pak packaging, V-Fresh Juice is predominantly distributed in off-premise channels. V-Fresh Soya Milk is one of the most popular drinks among our newly launched products.V-Fresh Soya Milk is targeted at the mid-end market and is marketed as a value-for-money product. Extracted from selected natural soybeans, our V-Fresh Soya Milk line of products offers consumers a healthy and nondairy alternative to consumers. It is available in flavours such as plain and sweetened in 180ml and one-litre packs. Coffee We produce, distribute and sell our coffee products in Vietnam under the Cafe Moment brand name. We launched our coffee line of products in 2005. make from the finest coffee beans, our coffee products offer consumers with a unique tasting experience. Our coffee products offer consumers great value for money.Cafe Moment is distributed through our nationwide distribution network and through our direct sale channels located primarily in urban areas. 51 52 A n n u a l R e p o r t 2 0 0 7 safeguard 53 INVeStOr reLatIONS Vinamilk maintains an effective communication channel with investors through its annual general meeting held on a yearly basis and through Vinamilk s investor relations function. Financial performance and other important information relating to Vinamilk s operations are adequately disclosed on its website at www. vinamilk. com. vn and other means of public communications such as HOSE s website, securities companies website, newspapers and securities bulletins,. 54 A n n u a l R e p o r t 2 0 0 7During the year, Vinamilk has welcomed more than 100 individual and institutional investors, banks, fund managers to visit us, some of our visitors are HSBC, Hong Kong CIMB GK Securities Pte. Ltd Merrill Lynch (Asia Pacific) Ltd JP Morgan Securities (Thailand) Ltd Morgan Stanley Asia Singapore Saigon Securities Inc. (SSI) BaoViet Securities Company (BVSC) Dragon Capital Tokio Marine plus Management marvellous Holdings, Inc. York Capital Management, NY Bridger Capital LLC, NY Polunin Capital Partners Ltd, London Metropol, Nga MFC Global Investment Management ABN-AMRO Asia Securities (Singapore) Pte Ltd Moody s Singapore Pte. Ltd Mitani Sangyo Co. Ltd Central Bank of Japan Naissance Capital Ltd Deutsche Asset Management, a member of the Deutsche Bank Group Deutsche Bank Securities Asia Ltd reference book Suise (Singapore) Ltd Nomura Malaysia Sdn Bhd Nomura Securities Singapore Pte. Ltd Citigroup Global Markets Limited Kim Eng Securities Pte. Ltd Daiwa Securities SMBC Hong Kong Ltd BankInvest Group YUKI Management & Research Co. , Ltd UOB Asset Management , a member of the United Overseas Bank Group Our contact details in relation to Investor Relations are as follows Mr. Tr? n Chi Son tel email Website Investment Director (84-8) 9300 358 (ext. 252) emailprotected com. vn www. vinamilk.. com. vn 55 cOMMUNItY actIVItIeSIn line with our operation philosophy, Vinamilk always harmonizes between benefits and value for its shareholders and contribute to community activities for local people where we are operating our business. Vinamilk has been contributing by tens of VND billions per annum for these activities, which may be increasing on a yearly basis. 56 A n n u a l R e p o r t 2 0 0 7 Some of our typical community activities for the year 2006 and 2007 are as follows In VND billion Donations for poor people and poor/ course children 10. 7 Sponsors for scholarship fund namely refining for Vietnamese issue Talents, V? A Dinh and other activities for children 9. 6 Donations for flooded provinces in the central of Vietnam 2 Our annual traditional sponsorship for two scholarship funds is Cultivation for Vietnamese Young Talents and V?A Dinh. The first was started since 2003 with the average annual sponsored amount bet ween 1. 5 3 billion dong and the later was started since 2004 with the average annual sponsored amount between 0. 14 0. 20 billion dong. In addition, Vinamilk has been the sponsor to take care all the life for 20 Vietnamese hero mothers in Ben Tre and Quang Nam provinces since 1997 and now there are 13 mothers to be sponsored by Vinamilk to take care all their li