Message from the Chairman On the occasion of CII’s 15th anniversary

December 27, 2016

Dear valuable stakeholders and collective of CII Group’s employees,
Every 24th day of December is an especially important and significant occasion for our company. It was the date that brought the birth of Ho Chi Minh City Infrastructure Investment JSC as a result of the municipal policy to socialize infrastructure investment and development by establishing a channel to draw medium-to-long term funding from financial institutions as well as untapped funding from the public and other economic community. 15 years (24/12/2011 – 24/12/2016) have come to past ever since CII started its journey, and every passing year marked the progress of the company’s strong advancement.
Looking back to before the end of 2001, CII was just established with a charter capital of VND 300B and only one project to collect tolls on the Dien Bien Phu and Kinh Duong Vuong streets. At the time, the company had only 8 people, most of whom are transfers from the 03 founding shareholders. The first few years of establishment was particularly difficult for the company due to its inadequate manpower and capital, especially considering CII’s core business being infrastructure investment which essentially requires intensive long-term capital. Acknowledging that human resources are the backbone of the company’s survival and long-term growth, we have soon had plans to recruit talents for the company. However, being such a new and young player who had barely enough capital to operate, CII could only offer the new recruits its enthusiasm and absolute belief in future success.
Having on hand many capable people, over the last 15 years (2001-2016), the company has been able to multiply its number of projects and increase its charter capital by 10 times. Revenue and profits also increased by 20 times. As the company was growing rapidly, its requirement for employed capitals has also expanded substantially. As a result, in order to enhance its capital mobilizing capability, on May 18th 2016, the company listed its whole 30 million shares for the first time on the Ho Chi Minh Stock Exchange (HOSE) and become the first company mobilizing fund from the stock market for infrastructure investment. Given great supports and trusts from shareholders, the company has had many successful issuances of new share and convertible bonds over the past 10 years to increase its charter capital and has now become one of the “top 30” listed companies with the largest market capital.
Upon employing the plentiful shareholder’s capital, CII has ever since been able to develop many significant projects. Believing that shareholder’s capital should be used with utmost prudence, we always exert our best effort at every stage of the project investment and development process, such as conducting project’s feasibility, choosing contractors, negotiating with creditors, managing construction progress, etc…to make sure that our projects will always be delivered at the highest quality and in the least possible time. Successful projects such as Binh Trieu Bridge 2, Expansion of Hanoi Highway, Expansion of National Highway 1, BOO Thu Duc Water Production Plant, Kenh Dong Water Production Plant, Tan Hiep Water Production Plant, etc., among others have signified CII’s brand name and reputation as the leading infrastructure developing company in Vietnam.
Given our current leading position and reputation, CII has been receiving much more attention and exceptional appraisal from investors. Apart from the presence of original long-term investors such as HFIC and Dragon Capital, the company’s issuance of USD 40M in convertible bonds to a reputable and hard-to-please investor such as Goldman Sachs amidst the 2011 financial crisis has perhaps affirmed the attraction of CII’s brand name. Following the success, in 2012, Vietnam Oman Investment (VOI), a fund under the State General Reserve Fund of Oman, and Ayala Corporation, a leading conglomerate in Philippines, have put their faith and confidence in CII and become our largest shareholders. In 2013, after CII was restructured into a group holding company with 5 separate subsidiaries specializing in different businesses, we have welcomed new strategic partners, such as Manila Water investing in Saigon Water and Metro Pacific Tollway Corp (MPTC) investing in CII Bridges & Roads. The company has focused more on its IR activities and organized many road shows in the world during the 2014-2015 period, aiming to bring CII’s brand name to the global market. Foreign investors have been purchasing more CII’s shares since the mid of 2015 as the available foreign ownership head room went from 10% at yearend 2014 to 0% at yearend 2015. By October 2016, CII increased its foreign ownership limit from 49% to 70%, and, as a result, foreign investors continued to purchase CII’s shares as their country of origin expanded. Recently, PYN Elite Fund has officially become one of CII’s major shareholders by purchasing and holding more than 5% stakes in the company.
Upon our continuous growth and achievement, CII has been proudly recognized as one of “50 Best Vietnam’s listed companies” by Forbes, “Vietnam’s 50 Best Performing Companies” by The Business Review, and “Top 10 most prestigious Vietnam’s listed companies” by Vietnam Report and Vietnam Net News, etc. The company was also awarded with the Third-class Labor Medal, Second-class Labor Medal, etc. Above all, my proudest reward and happiest feeling is the value and meaning created by what we, as employees and shareholders of CII, are doing. We, by our everyday work and contribution, are constructing new bridges and new roads, which then contributes to the overall wellness of our economy and country. By any chance, getting to see the beautiful new Saigon Bridge that leads to the spacious Hanoi Highway with tall buildings on the side while recalling the old and narrow Saigon Bridge and Hanoi Highway of 10 years ago, I believe, as shareholders and employees of CII, we can feel really proud of our contribution to the construction of these infrastructures! Our capitals are being used not only to make profits but also to create values and bring prosperity for our country.
On the occasion of CII’s 15th anniversary, I would like to express my deepest appreciation to the collective of the company’s employees and shareholders, whom have given CII true companionship, trust, and dedication to build a CII brand name as strong as it is today. I am proud of the values created by our doings. I believe what we currently have, being the shareholder’s plentiful capital and trust, CII’s reputation and brand name, and the enthusiasm and professionalism of our employees, will be so much more in the future, and our contribution to the country’s development will also be much more significant.
Wish all the shareholders and the employees good health and prosperity.

Le Vu Hoang

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