Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (November 2017)
46 slides from Vingroup Joint Stock's investor presentation, November 2017
Slide 1: Corporate Presentation
VINGROUP JOINT STOCK COMPANY Corporate Presentation November 2017
Slide 2: Clear Market Leader Across Multiple Sectors
Clear Market Leader Across Multiple Sectors Vingroup has established itself as a market leader across the full breadth of consumer related sectors from essentials to aspirational. Market share: ~24% (3) Residential Market ~50%(2) Market share: CVS Consumer Retail Integrated residential share: ~20% (
Slide 3: Preserving The Start-up Mindset
Preserving The Start-up Mindset Vingroup’s continued innovation and growth of business segments primed towards the Vietnamese consumer has been the key to its success. Total Assets (US$bn)(1) 2007 2010 – 2011 2012 – 2014 2017 Proven track record Listed on HOSE as Vinhomes Royal 2012: Vincom –
Slide 4: Vingroup Ecosystem of Complementary Businesses Under One Brand
Vingroup Ecosystem of Complementary Businesses Under One Brand 1993 – 2011 2012 – 2013 Integrated Real Estate Developer Developing Ecosystem and Operator • Diversified integrated developer across various segments • Ecosystem of complementary consumer-focused service offerings at each site – Resi
Slide 5: Vingroup's Key Competitive Advantages
Vingroup’s Key Competitive Advantages 1. Vietnam at a Favorable Macroeconomic Inflection Point 2. Undisputed Leader in the Vietnam Residential Real Estate Sector 3. Growing Recurring Revenue From Multiple Market-Leading Consumer Businesses 4. Largest Landbank Provides Pillar for Long Term Platform G
Slide 6: 1. Vietnam at a Favorable Macroeconomic Inflection Point
1. Vietnam at a Favorable Macroeconomic Inflection Point 6 CORPORATE PRESENTATION
Slide 7: Favourable Macroeconomic Indicators for Consumption Growth
Favourable Macroeconomic Indicators for Consumption Growth Fastest Growing Economy in Southeast Asia… Highest Population Proportion Among Workforce… 2018E Real GDP growth (%) Middle Class Population with age range between 25 – 44 as % of total population 6.5% No. of households (‘000) with 5.6% dispo
Slide 8: Vietnam Residential Real Estate set to Benefit from Urbanization
Vietnam Residential Real Estate set to Benefit from Urbanization Vietnam’s Residential Prices Still Lagging Behind Regional Peers Lowest Home Ownership in the Region Home ownership rate (%)(2) 360+% 160% Residential price index 150% (re-based to 100%) (1) 140% 90% 91% 130% 120% 70% 110% 100% 53% 90%
Slide 9: Residential Market a Direct Beneficiary of the Growing Middle Class
Residential Market a Direct Beneficiary of the Growing Middle Class Paradigm shift to widespread home ownership has driven huge pick-up in transaction volumes. Hanoi Residential Transactions On The Rise… …With High-end Prices Reaching A 5-year High Number of units sold Prices (US$ psm) 8,000 $2,000
Slide 10: Modern Retail Set for Explosive Growth in Vietnam
Modern Retail Set for Explosive Growth in Vietnam Low penetration of modern retail presents an opportunity for outsized growth as Vietnam’s mall space and modern retail turnover close the regional gap High Potential to Close Regional Gap in Mall GFA Compared to Regional Peers Vietnam is Starved for
Slide 11: 2. Undisputed Leader in the Vietnam Residential Real Estate Sector
2. Undisputed Leader in the Vietnam Residential Real Estate Sector 11 CORPORATE PRESENTATION
Slide 12: The Undisputed Leader in Residential in Vietnam
The Undisputed Leader in Residential in Vietnam Vingroup’s Market Cap Is c.5x of Next Player In Real Estate Industry Market capitalization (US$mm)(1) Complementary businesses under a single 7,966 brand creates synergistic value accretion Properties worth more due to Powerful complementary servic
Slide 13: Vinhomes and VinCity: A Differentiated Developer with Grade A Sites
Vinhomes and VinCity: A Differentiated Developer with Grade A Sites Not Just a Homebuilder – But A Community Creator Well-located Grade A Sites Hanoi Development Projects • c.24% market share(1) • 15,000 homes and villas sold • Highest number of residential properties sold in each of the last 5km
Slide 14: Robust Residential Sales for Recent New Projects with Strong Pipeline
Robust Residential Sales for Recent New Projects with Strong Pipeline Ongoing and Upcoming Residential Project Footprint Anticipated pre-sales by geography 3 More than 70% of projects More than 2.5x growth pre-sold with larger focus on Others Hanoi & HCMC 13% 7 Others Hanoi Hanoi 42% Hanoi 7 3 9 4 &
Slide 15: 3. Growing Recurring Revenue From Multiple Market-Leading Consumer Businesses
3. Growing Recurring Revenue From Multiple Market-Leading Consumer Businesses 15 CORPORATE PRESENTATION
Slide 16: Building The Leader in Each High Growth Consumer Sector
Building The Leader in Each High Growth Consumer Sector Vingroup has a proven track record of developing consumer focused business segments and aims to create market leaders in each high growth consumer segment it enters. Vingroup is Active In Key Segments Of Vietnam’s Economy… …With A Strong Focus
Slide 17: Vincom Retail and VinCommerce Nation-wide Modern Retail Network
Vincom Retail and VinCommerce Nation-wide Modern Retail Network 29 / 63 Vincom Retail Nationwide Retail Footprint(1) Multi-Concept Retail Malls 44 Malls Cities and Provinces Covered North Vietnam(2) 8 Vincom malls Hanoi 8 VinMart 21 VinMart+ 7 Vincom malls 6 VinPro Vincom Center Vincom Mega Mall Vin
Slide 18: Vincom Retail – Unrivalled Retail Mall Platform In Vietnam
Vincom Retail – Unrivalled Retail Mall Platform In Vietnam … with Ability to Attract Best-in-Class Tenant Portfolio, with about Retail Consolidates Around the Dominant Local Landlord… 1,000 Unique Tenants(4) • Vincom Retail is a clear Inditex Brands Vincom Retail market leader with 60% market share
Slide 19: VinMart & VinMart+ – Building the Dominant Player in Vietnam
VinMart & VinMart+ – Building the Dominant Player in Vietnam The VinMart and VinMart+ platform has established a market leading position in 3 years since they were first established in Largest Network in the Convenience Store Space… 2014 and 2015, respectively. Both brands are first-movers in Market
Slide 20: VinCommerce – Multi-Format Retailer Providing Comprehensive Products and Services
VinCommerce – Multi-Format Retailer Providing Comprehensive Products and Services Business type Convenience Store Supermarket Specialty Store Average store size 100 (primarily) – 200 sqm 1,700 – 2,500 sqm in 3 formats 500 – 2,000 sqm Largest and most extensive convenience 2nd largest supermarket
Slide 21: Creation of a Unique Hospitality Ecosystem in Nha Trang
Creation of a Unique Hospitality Ecosystem in Nha Trang Unique Model – Destination Integrated Resort Launch Date of Nha Trang Projects Future Planning: Vinpearl Phu Quy – Khanh Hoa , Vinpearl Hon Mot, • Best-in-class ecosystem – Synergy among product offerings that cover a wide spectrum of customer
Slide 22: Rolling Out the Blueprint
Rolling Out the Blueprint Under-construction Projects To Replicate Vinpearl’s Success In Nha Trang Across Other Key Hubs(1)(2) Growing Market Share Set To Capture Demand Upside Vinpearl market share in Vietnam hospitality industry (%)(1) Ha Long Bay Danang 13% 384 rooms • Unique Multi-format Ha Lo
Slide 23: 4. Large Landbank Provides Pillar for Long Term Platform Growth
4. Large Landbank Provides Pillar for Long Term Platform Growth 23 CORPORATE PRESENTATION
Slide 24: One of the Largest Landbanks in Prime Locations Across Vietnam
One of the Largest Landbanks in Prime Locations Across Vietnam Truly Nationwide Developer with Proven Ability to Secure Landbank is Vingroup’s Pillar of Growth Prime Sites in the CBD of Hanoi and Ho Chi Minh City Landbank by site area (mm sqm) 141 projects in prime cities consisting of 75 operationa
Slide 25: Fully Integrated Platform Across the Value Chain with Ability to Recycle Capital
Fully Integrated Platform Across the Value Chain with Ability to Proactively Recycle Capital Maximizing Profitability via Vingroup’s Integrated Development Ability to Recycle Capital via Opportunistic Real Estate sales and Platform Re-allocate Capital via M&A Activities Vincom Center Vincom Center p
Slide 26: 5. Experienced & Proven Management Team With Strong Track Record
5. Experienced & Proven Management Team With Strong Track Record 26 CORPORATE PRESENTATION
Slide 27: Experienced Management Team, Strong Corporate Governance and Sponsor
Experienced Management Team, Strong Corporate Governance and Sponsor Mr. Pham Nhat Vuong Chairman of the Board of Directors Holds a Bachelors Degree in Geological Economic Engineering, graduated from Moscow Geology University in Russia Long track record as an entrepreneur both in and out of Viet
Slide 28: Vietnam's Flag Bearer in the International Capital Markets
Vietnam’s Flag Bearer in the International Capital Markets c.US$2.2 bn Raised Internationally Through Several Pioneering Transactions Since 2010 Prestigious Global Awards and Accolades Euromoney Real Estate Awards 2017 Vincom Retail International Domestic Senior Private Equity Best overall real es
Slide 29: 6. Future Developments
6. Future Developments 29 CORPORATE PRESENTATION
Slide 30: VinFast – first "Made In Vietnam" automobiles
VinFast – first “Made In Vietnam” automobiles VinFast: Vietnam – Style – Safety – Innovation – Pioneer THE brand of choice for Vietnamese cars Aiming to Become Leading Producer of Motorcycles and Partnership with Renowned Designers and Leaders in Automobiles Automotive Production Production capa
Slide 31: 7. Financial Overview – VAS
7. Financial Overview – VAS 31 CORPORATE PRESENTATION
Slide 32: Income Statement Highlights – VAS
Income Statement Highlights – VAS Revenue Gross profit (US$ mm) (US$ mm) 2,528 2,511 805 765 910 878 1,552 488 519 1,511 476 1,297 579 687 333 870 278 176 1,618 1,633 1,019 932 865 694 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 Property sales Recurring revenue EBITDA Profit
Slide 33: Revenue Performance – VAS
Revenue Performance – VAS Total revenue Property sale(1)(2) Retail leasing (US$ mm) (US$ mm) (US$ mm) 2,528 2,511 1,618 1,633 146 147 118 111 1,511 1,552 103 1,297 1,019 85 932 865 870 694 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 Consumer
Slide 34: Profitability – Gross Profit and Margin – VAS
Profitability – Gross Profit and Margin – VAS Total gross profit Property sale(1)(2) Retail leasing (US$ mm) (US$ mm) (%) (US$ mm) (%) 805 61% 56% 51% 56% 765 51% 49% 36% 37% 40% 35% 37% 35% 83 519 75 488 476 574 573 60 58 55 52 333 378 371 318 249 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 20
Slide 35: Balance Sheet Highlights – VAS
Balance Sheet Highlights – VAS Total debt(1) and net debt(2) (US$ mm) Total cash and short-term 617 647 880 595 627 investments(3) 2,028 1,745 1,638 1,532 1,401 1,296 1,150 885 678 758 2013 2014 2015 2016 9M2017 Total debt Net debt Total assets & total equity Net debt(2) / EBITDA (US$ mm) As of 1H20
Slide 36: Balance Sheet Highlights – VAS (cont'd)
Balance Sheet Highlights – VAS (cont’d) Diversified funding sources – breakdown of total debt Breakdown of total assets Others Total assets 3.9% Domestic bond US$9.0bn Syndicated 69.2% loan 14.4% Residential 55.3% Total debt US$2.0bn Bank loans 12.5% (1) Others 13.4% Breakdown by currency Breakdown
Slide 37: Debt profile overview – VAS
Debt profile overview – VAS Debt maturity (US$ mm) 1,074 As of 30 September 2017: 29 Average debt maturity: 2.38 years 113 505 932 378 249 28 45 134 71 25 211 216 45 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Syndicated loan Bank borrowings Average borrowing cost 10.8%
Slide 38: Appendix
Appendix 38 CORPORATE PRESENTATION
Slide 39: Retail Consolidates Around the Dominant Local Landlord
Retail Consolidates Around the Dominant Local Landlord dominant local landlord Vincom Retail Global examples clearly demonstrate retail consolidation around the Vietnam’s largest retail developer, owner and operator Total Market Size (GFA sqm)(1) Market Share by GFA(1) Significant parallels seen
Slide 40: Vincom Retail Poised to Enjoy Market Dominance in Retail Space
Vincom Retail Poised to Enjoy Market Dominance in Retail Space Mall Evolution Of Peers In The Last 10 Years 2006 2016 Mall Count 67 Market Cap 62 Market Cap 2006 – 2016 53 55 SM Prime 51 US$2.2 bn 46 SM Prime 7.5x increase 43 US$16.5 bn (Philippines) 36 39 (Philippines) CAGR of 22.4% 30 29 31 27 25
Slide 41: Metro Infrastructure Will Accelerate Retail Mall Footfall
Metro Infrastructure Will Accelerate Retail Mall Footfall Most of VRE malls are covered by the upcoming metro lines in Ho Chi Minh City and Hanoi – significant boost in connectivity and footfall expected. Ho Chi Minh City Gò Vấp Thủ Đức Hanoi Trung Thôn VINCOM PLAZA Tân Bình SAIGON RES VINCOM CENTER
Slide 42: Vinpearl: Capturing The Full Spectrum of Customer Segments
Vinpearl: Capturing The Full Spectrum of Customer Segments Vinpearl’s integrated resort model clearly differentiates itself from other competitors Vinpearl has who only offer a standalone hotel product access to addressable Holistic Coverage Across Room Rate Segments market segment of over US$7.4bn(
Slide 43: VinCommerce – Competitive mapping
VinCommerce – Competitive mapping Amongst modern retailers, only Vingroup is active in all stages of the value chain Production Processing Distribution and retail Key players Input Grow Harvest Packaging Storage Logistics Distribute Retail Domestic modern retailers VinMart VinEco Domestic Co
Slide 44: VinCommerce Complemented by Innovative E-commerce and Robust Infrastructure
VinCommerce Complemented by Innovative E-commerce and Robust Infrastructure is the growth driver for VinCommerce Well developed infrastructure 28 modern logistic hubs in 13/63 cities and provinces nationwide Fleet of delivery trucks, vans and motorcycles equipped with automated, real-time manage
Slide 45: Disclaimer
Disclaimer IMPORTANT: The information contained herein is preliminary and subject to change without notice, its accuracy is not guaranteed, has not been independently verified and may not contain all material information concerning Vingroup Joint Stock Company (the “Company”) and its subsidiaries (t
Slide 46: Investor Relations Department
Investor Relations Department Vingroup JSC Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area Long Bien District, Hanoi, Vietnam Tel: +84 (24) 3974 9999 ext. 9759 Fax: +84 (24) 3974 8888 Website: http://www.vingroup.net E-mail: [email protected] 46 CORPORATE PRESENTATION
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