VATF

Vietnam Advanced Technology FundOctober 2009

VISION

To be the leading equity growth fund

in Vietnam.

Focused on advanced technology

Leveraging the team’s experience,

Vietnam’s natural resources and

the strengths of the Vietnamese people.

VATF – EXECUTIVE SUMMARY

Fund size: US $200 Million

The team: Strong investment team with vast experience in investments, private equity, investment banking and industry and an emphasis on Asia Pacific

Investment objective: Earn superior returns by investing in Vietnamese or Vietnam-related companies

Investment thesis: Vietnam is one of the most promising of all emerging markets. The country’s mostly export based economy combined with growing domestic consumption, a dominant private sector and a large entrepreneurial talent pool – make it the perfect place to create value for investors

Investment sectors: Energy & Environment, Agriculture & Bio-technology, Industry & Infrastructure, Consumer, Software and Communication

Average investment per transaction: $10 million

WHY VIETNAM ?

GDP growth of over 6.5% annually since 2004 (second only to China in Asia

Pacific)

Population just under 90M, with 50% under the age of 27

Rapidly growing private sector (cumulative production capabilities grew from

$3bn in 2000 to $13bn in 2007) and SME’s expanding at phenomenal rates

Domestic consumption grew 300% from 2004-2008

Vietnam’s stock market grew from $5bn in 2005 to $25bn (with a peak of

$50bn in 2007) with 314 companies traded

1,700 companies groomed for privatization over the next few years

MANAGEMENT

Mr. Nitsan Yanovski, President and CEO Founder and managing partner in SFK Asia Pacific, KGIF and As-Pas-Yan A rich history of investment leadership in Israel and Korea with over two

decades of experience in the financial and investment sectors Track record of working with Asian governments - building KGIF together

with the Korean Ministry of Communication (MIC) Formerly President and CEO of Ampal International Ventures with $750M

under management. Initiating over 30 Exits to date, including more than 20 IPO's in NASDAQ

Mr. Eran Wagner, Executive Vice President and COO. An Entrepreneur and senior executive with over 20 years of international

experience in building businesses in the high-tech industry Proven track record in fund-raising, building, focusing and motivating

teams to bring new products and services to market Deep knowledge in the various segments of Telecommunication

Mr. Asher Sadan, Head of Vietnam Activity 

Senior Executive with over 15 years in international business, and vast

experience in South East Asia

Formerly Head of the Vietnamese subsidiary of the Fishman Group - one of

Israel’s largest and most renowned investment groups;

Formerly CEO of the Israeli subsidiary of Visual Defense  - a

leading international high-tech company in the area of Security and

Defense Systems

 Brigadier General with 25 years in the Israeli Defense Forces

(IDF) holding various senior leadership positions including a 3-years

relocation in Singapore

MANAGEMENT

TRACK RECORD

INVESTMENT STRATEGY

VATF will focus on investments in sectors defined as strategic by the

Vietnamese government including Energy & Environment, Agriculture

(including Marine Agriculture) & Bio-technology, Industry & Infrastructure,

Consumer, Software and Communication

Capitalizing on the team’s experience VATF will invest in ventures in three

main categories:

Localization of global cutting-edge technologies into Vietnam for the

purpose of domestic consumption or manufacturing and export of finished

goods

Expansion plans of proven local Vietnamese businesses ready to enter

global markets

Create synergy in the relevant sectors and cooperate with potential

Strategic partners to expand in APAC territory Exit strategy based on building valuable assets that could be sold to

strategic partners or taken public in local or foreign exchanges

EXAMPLE SECTORS

Industrial relatedmanufacturingLed packagingLogistic centers

Wind energyPower & Power ancillariesWaste ReductionWater technologies

Energy & Environment

Agriculture & Biotech

Marine Bio-technology Chemicalsfertilizers

Software & Comm.

Consumer

Sector Focus

Optics Communication

High growth sectors

PIPES

JVs based upon proven Israeli and world wide technology

Pre-IPO investments

CASE STUDY SHELLCASE TECHNOLOGIES

An Israel based, leading global supplier of wafer-level electronic packaging technologies for the digital imaging and data telecommunications markets.

Although Shellcase developed superior technology, had $80M in investment and was a world-leader in its field, it was challenged to create value for its shareholders, mainly due to its choice to maintain a fabrication facility in Israel, which is far from the relevant markets.

In 2005 we led an investment of ~$18M in Shellcase, at a very low valuation, as part of a Chinese-Korean-Israeli consortium.

Immediately thereafter, Shellcase closed the fabrication facility in Israel and opened a JV manufacturing facility in China.

Today, this facility is fully operational, with an impressive client base and high volume manufacturing.

Shortly after the investment, we successfully sold Shellcase IP to Tessera Technologies, a leading US company. Investors enjoyed a significant return on a company that only a short time previously was destined for receivership.

China manufacturing facility to go public in APAC market next year at extremely high valuation (Over 250M$).

SAMPLE DEAL - CONSUMERMarket Optical Lenses

Israel

Vietnam

Existing company with unique proprietary technology expertise for producing multi-focal lens molds in a market where vertical giants such as Essilor (France), Hoya(Japan) and Carl Ziess (Germany) create technology scarcity. Company has major market share and an excellent client base in the fastest-growing, highest margins segment in the ophthalmic market with deep experience in Asia PacificEstablish and invest in JV between the Israeli company and a Vietnamese strategic partner to manufacture and market molds for manufacturers of non-branded multi-focal lenses as well as to create a new brand of multi-focal lenses for Vietnamese and world markets

SAMPLE DEAL – ENERGY

Market Wind Energy

Israel

Vietnam

Existing company with unique IP: Paradigm changing wind energy system 30% lower cost of energy than traditional solutions Scalable to meet broad application requirements Modular for easier transport

Build plant to harvest wind energy for domestic useCreate manufacturing facility for new technology and export systems globallyIn Vietnam the areas with possibility of wind power is one of the best in the world

SAMPLE DEAL – ENERGY

Market Algae based Bio Fuels

USA/Israel

Vietnam

Co Commercial – scale seaweed farms ,deploying

groundbreaking energy efficient technologies, and

recycling carbon dioxide to profitably produce sustainable

fuels and feed

Invest in building facilities that would leverage the new technology to grow and harvest Algae along the Vietnamese shorelines, and position Vietnam as a spearhead at this area

SAMPLE DEAL – AGRICULTUREMarket Marine Aquaculture

USA and other

Vietnam

The US is the world’s second largest importer of seafood. China and Japan are other important markets. Consumer demand for fresh, disease and contaminant-free healthy marine fish is growing rapidly with a new emphasis on Organic, higher value products

Vietnam is a world leader in fisheries, an industry that is rapidly growing and providing many jobs. VATF will invest in developing a new generation of marine aquaculture that is fully contained, generic and environmentally sustainable, efficiently produces high value, disease- and contaminant-free healthy marine fish with no environmental risks. Technology available today enables the development of modern hatchery technologies for the production of clean seeds year round.

TERMS OF FUND

Name of Fund: Vietnam Advance Technology Fund

Fund Size: US$200 million

minimum closing of US$50 million

Fund Life: 9 years, subject to 3 annual extensions

Draw-downs: 20% upon admission

Subsequent takedowns on 20 days

notice

Management Fee: 2.0% p.a. of committed capital

Carried Interest : 20%

Hurdle rate: 5% p.a.

CURRENT STATUS

VATF will create a management team with local partners and

a combination of local and international investors

VATF is cooperating with the Vietnamese government and

the provinces in potential support and JVs opportunities.

cooperation agreements are about to be signed

VATF has already received written commitments exceeding

$50M from local (Vietnamese) Investors (attached)