PNJ GOLD - Gateway to Vietnam Conference

COMPANY PROFILE 2010
Core principles
Reaffirming the
leading position
on creativity,
sophistication
and reliability in
Jewelry and
Fashion
industry.
History
March, 2009
Officially listed
shares on HOSE
January, 2004
Became PhuNhuan
Jewelry Joint Stock
Company.
1992
Officially renamed as
PhuNhuan Jewelry Company
PNJ.
28/4/1988
Found as PhuNhuan
Jewelry Trading Store.
Company structure
SHAREHOLDERS
CONTROL BOARD
BOARD OF DIRECTORS
GENERAL DIRECTOR
REPRESENTATIVES
LEADERSHIP
(ISO)
DEPUTY GENERAL DIRECTOR
OF BUSINESS
SALES DEPT.
DEPUTY GENERAL DIRECTOR
OF FINANCE
ACCOUNTING DEPT.
DEPUTY GENERAL DIRECTOR
OF TECHNOLOGY
DEPUTY GENERAL DIRECTOR
OF INVESTMENT
QUALITY CONTROL
DEPT.
HR DEPT.
PNJ JEWELRY
FACTORY
MARKETING DEPT.
GOLD TRADING DEPT.
IT DEPT.
IMPORT/EXPORT DEPT.
PNJ APPRAISAL
CENTER
DESIGN DEPT.
CAO COMPANY
INTERNAL CONTROL
DEPT.
COMPANY
SECRETARY
ADMINISTRATION
DEPT.
Board of Directors
Mr. Le Huu Hanh
Mr. Nguyen Tuan Quynh
Deputy General Director of
Business
Deputy General Director of
Investment
Mrs. Cao Thi Ngoc Dung
Chairman
General Director
Mrs. Nguyen ThiCuc
Mr. Nguyen Vu Phan
Deputy General Director of
Finance
Deputy General Director of
Technology
Human resource
HR growth chart
1884 employees
1860
employees
 Highly capable leaders
1765
Professional and
employees
knowledgeable
Employees
2008
2009
Mid-year 2010
STRUCTURE OF LABOR BY LEVEL
Creative and
0.5%
12%
25%
5%
professional design
11%
team.
47%
Postgraduate
University
Diploma
Certificate
High School
Under High School
Resource assets and equity
Unit: billion VND
1,902
2,000
1,800
1,452
1,600
1,400
1,036
1,200
800
865
784
1,000
669
600
400
200
2008
Short-term assets
2009
Long-term assets
Equity
Technology and machinery
o Manufacturing process
observed from
European technology
(Italy, Germany ...) with
productivity of two
million products per
year.
o Professional managers
and more than 1,000
skillful goldsmiths to
ensure refined and
qualified products
delivered to the market.
Distribution system
North: 22 stores
Central: 7 stores
HCMC & Southeast 90 stores
Mekong delta: 7 stores
Export markets
Germany
U.S
Australia
2%
Denmark
6%
34%
58%
TURNOVER RATE IN THE MARKET
Comprehensive quality management program
Implementing ERP (Enterprise
Resources Planning) project to
TQM since early 2009
TQM
comprehensively computerize
management system.
5S
ERP
Successfully applied 5S program on
October 2008
Environmental
Management
System ISO 9.000
Quality Control
Management System
ISO 9.000
Got ISO 14001: 2009 certification on
Continuously got ISO certification since 2000.
February 2010
PNJ is currently operating under ISO 9001:
2008 standard.
Associates
Capital
Percentage holding
(bil. VND)
of PNJ (%)
Saigon Energy Limited Company (SFC)
81
23
Dong A Real Estate Limited Company (DongA Land)
300
31
3.400
8
Que Huong Hotel Limited Company
320
3
Kinh Do Real Estate Limited Company
600
3
523
5
Company name
Dong A Bank
Saigon M&C Real Estate Limited Company
Shareholder Structure
BRANDS
PNJ GOLD
• Established: 1988
•Target customers: mostly
females 25 – 55 years old with
class B and higher income
•Products: Jewelry attaches
gemstones / semi-precious
made from 24K
18K, 14K, 10K gold.
• Establiashed: April, 2001.
• Target customers: mostly
females 15 – 25 years old.
• Products: Fashion silver
jewelry
made
silver Ag 92.5
from
pure
• Established: June, 2005. By August
2009, CAO became an independent
company, a subsidiary of PNJ.
•Target customers: successful
businesswomen 30 - 45 years old with
style, elegance and confidence
• Products: Luxury jewelry with unique &
sophisticated design and manufactured from
materials carefully selected by top
professionals.
•
Established: December 2009, Jemma
is under the management of CAO
company
•
Target customers: Female officers with
class B or higher income, 25 - 35 years
old with dynamic, style, confidence &
bravery.

Products:

Fashion jewelry with various materials: silver
attaches semi-precious stones, alloy, etc.

Stylish accessories, young designs with fresh &
new
colors:
hairpin, etc.
wallets,
handbags,
brochette,
Phoenix PNJ - DongA Bank Gold Bar
 Available on the market
since 1988 under the name
“Phoenix PNJ” gold bar.
 April, 2008: new models
between PNJ and DongA
Bank – DAB hit the market.
 Has four different types of
weight appropriate to the
customer’s needs of usage:
1 tael, 5 chi, 2 chi, 1 chi
Gemstone and Gold bar appraisal
 PNJ appraisal services provide
gemstones and diamonds
appraisal based on GIA
standards - United States
Institute of Gemology.
 Capable, experienced
professional team & modern
appraisal technology and
machinery.
BUSINESS PERFORMANCE
Sales Performance
Revenue through years – Unit: Billion VND
10.466
12,000
9.625
10,000
8,000
Other Profits
Exports
6,000
PNJ Silver
3.500
PNJ Gold
4,000
2,000
2008
2009
9 months of 2010
Growth rate of profits 2008 - 2009
Billion VND
250
217
200
149
150
100
50
0
2008
2009
ACHIEVEMENTS
 Top 500 Retailers in Asia-Pacific Award
2004-2009.
 Top 10 Vietnamese Prestige & Qualified
Product Cup 2007.
 Top 200 Largest Vietnamese Companies
Award 2008.
 National Brand 2010.

Vietnamese Quality Award of the year
2006-2007-2008
 Asia - Pacific Quality Award 2010.
 High Quality Vietnamese Products
Trademark for 12 consecutive years
from 1998 to 2009.
 Vietnam Gold Star Award from 2003 to
2009.
 Top 10 Standardized Shopping Places
2010.
 National Quality Gold Award 2009
 Asia-Pacific Quality Award 2010
STRATEGIES
PNJ outstanding competitive advantages
PNJ has:

22 rich experienced years in Jewelry industry. Top Of Mind of VN citizens
regarding to Jewelry.

Wide distribution network across the country owned and operated by
PNJ. Including 15 branches and 126 retail stores and more than 3,000
wholesalers.

Stable export market and is expanding.

Jewelry factory that has top modern technology in Southeast Asia with an
experienced team of jewelry artisans who have won many awards, and
more than 1,000 skilled goldsmiths.

Designing Department of PNJ are evaluated on a par with international
level. Designers have been trained overseas and in conjunction with
designing equipments using advanced and modern IT.
PNJ outstanding competitive advantages
PNJ has:

Owning brands such as PNJ Gold jewelry, PNJSilver, CAO Fine Jewelry,
JEMA, Phoenix-DongA Bank gold bar, PNJ Diamond Appraisal
Certificate. All of them are professionally managed brand image and
brand value.

Inventory is easily and quickly converted into money even with gold
products.

Human resource of high and medium manager-levels is stable and
sustainable, who has rich experience in jewelry, fashion, financial
management, investment and especially system administrating of PNJ’s
complex retail stores.

Human and sustainable enterprise culture with high commitments of all
employees through union activities and movements.
Encountered risks and Risk management
Risks
Risk Management
Risks of gold price and foreign
currency:
• Risk of gold price is the biggest risk in
• PNJ has no investment policy in the gold
business.
a
specific
division
business. Foreign exchange rates also • Having
monitoringchanges in gold price and a
often change.
organizational networking system
to
balance on time the purchase everyday.
• Ensuring the balance of inventory with the
gold loan from banks.
• Foreign currencies are balanced
long/short term purchasing contracts.
by
Product strategy
Diversify
product
structure
Consecutively
invest in
modern
equipment and
technology
Focus on
investing and
developing
creative
design work
force
Commit to
ensure
proper
quality of
gold age
Being the
leader in the
jewelry trend
Develop and expand
distribution network
throughout Vietnam
Consistency of
Satisfy demands of
target customers
policy and flexibility
in handling
DISTRIBUTION STRATEGY
CSR ACTIVITIES
PNJ’s core values in social activities:
“It matters not what you give but how.”
From the silent contribution…..
PNJ’s core values in social activities:
“It matters not what you give but how.”
…. To many big fund-raising activities