Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (September 2017)
42 slides from Vingroup Joint Stock's investor presentation, September 2017
Slide 1: Vingroup Joint Stock Company Corporate Presentation
VINGROUP JOINT STOCK COMPANY Corporate Presentation September 2017
Slide 2: Contents
Contents A. Vietnam Macroeconomic Updates 3–7 B. Vingroup Overview 8 – 14 C. Leading Real Estate Developer and Operator 15 – 20 D. Dominant Modern Retail Player across all Formats 21 – 24 E. Financial Overview – VAS 25 – 31 F. Financial Overview – IFRS 32 – 38 G. Trading Performance 39 – 40 2 CORPOR
Slide 3: A. Vietnam Macroeconomic Updates
A. Vietnam Macroeconomic Updates 1. One of the Most Attractive Southeast Asian Economies 4 2. Healthy Macroeconomic Conditions Supporting Growth 5 3. Favorable Outlook for Modern Retail 6 4. Vietnam Residential Market is in the Uptrend 7 3 CORPORATE PRESENTATION
Slide 4: One of the Most Attractive Southeast Asian Economies
One of the Most Attractive Southeast Asian Economies The third most populous country in Southeast Asia(1) One of the fastest growing economies in the region 2016 population (bn) 2016 real GDP growth (%) 258 6.6% 102 6.2% 94 5.0% 68 4.3% 3.1% 31 1.8% 6 Indonesia Philippines Vietnam Thailand Malaysia
Slide 5: Healthy Macroeconomic Conditions Supporting Growth
Healthy Macroeconomic Conditions Supporting Growth Inflation and interest rates are under control Exchange rate remains resilient (VND) 13.5% Average devaluation: 2.5% p.a 10.4% 9.5% 8.7% 8.4% 20,649 20,859 21,017 22,495 22,774 9.1% 6.6% 4.1% 0.6% 2.7% 2012 2013 2014 2015 2016 2012 2013 2014 2015 20
Slide 6: Favorable Outlook for Modern Retail
Favorable Outlook for Modern Retail (2) Robust improvement in individual income(1) High proportion working population drives consumption Vietnam’s GDP per capita (US$) Working to non-working ratio in SEA countries 1.99 1.98 1.97 1.97 2,215 1.78 ASEAN Average: 1.82 2,109 1.75 2,052 1.60 1,933 1.55 1,
Slide 7: Vietnam Residential Market is in the Uptrend
Vietnam Residential Market is in the Uptrend Hanoi residential transactions on the rise with… …high- and mid-end prices reaching a 4-year high (Number of units sold) (US$ psm) 8,000 $2,000 6,000 $1,500 4,000 $1,000 2,000 $500 0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015
Slide 8: B. Vingroup Overview
B. Vingroup Overview 1. Evolution of Vingroup 9 2. Largest Listed Real Estate Company with Diversified Consumer Sector Exposure 10 3. Ecosystem of Complementary Products and Services 11 4. Significant Focus on Recurring Revenue Streams 12 5. Experienced Management Team, Good Corporate Governance and
Slide 9: Evolution of Vingroup
Evolution of Vingroup $70 mm equity placement “Preserving the Start-up Mindset” Managed 5 Vinpearl resorts $100 mm Warburg Pincus 6 Vincom shopping malls in follow-on investment in operation Vincom Retail Vinhomes Central Park 10 new Vincom shopping construction started malls & acquisiti
Slide 10: Largest Listed Real Estate Company with Diversified Consumer Sector Exposure
Largest Listed Real Estate Company with Diversified Consumer Sector Exposure “To create a better life for the Vietnamese people” Villas, Apartments,Townhouses and Condotels Resorts (Vinpearl) and Amusement Parks (Vinpearlland) (Vinhomes and VinCity) Golf Courses, Gyms and Spas Residential Hospitalit
Slide 11: Ecosystem of Complementary Products and Services
Ecosystem of Complementary Products and Services Retail & Property | Vincom quality shopping Property | Vinhomes premium apartments & villas Property | Vincom Office premium office malls Largest residential developer in Vietnam with 15,000 leasing Largest retail portfolio in Vietnam with 41(1) u
Slide 12: Significant Focus on Recurring Revenue Streams
Significant Focus on Recurring Revenue Streams Portfolio of commercial real estate continues to ramp up Recurring revenue growth (US$ mm) Strategic shift towards a greater percentage of revenue coming 1,500 20.2% 21.3% 38.4% 35.3% 32.6% from recurring income streams such as leasing, consumer retail,
Slide 13: Experienced Management Team, Good Corporate Governance and Strong Sponsor
Experienced Management Team, Good Corporate Governance and Strong 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
Slide 14: Vietnam's Flag Bearer in the International Capital Markets
Vietnam’s Flag Bearer in the International Capital Markets More than US$1.5 billion raised internationally through several pioneering transactions since 2010 Prestigious awards and accolades Domestic Senior Private Equity Asia Pacific Property Awards 2016 International Secondary Syndicated Loan Unse
Slide 15: C. Leading Real Estate Developer and Operator
C. Leading Real Estate Developer and Operator 1. Largest Residential and Commercial Developer in Vietnam 16 2. One of the Largest Landbanks in Prime Locations Across Vietnam 17 3. Robust Residential Sales: New Projects 18 4. Seamless Land Acquisition and Sale Process 19 5. Capital-efficient Model 20
Slide 16: Largest Residential and Commercial Developer in Vietnam
Largest Residential and Commercial Developer in Vietnam Vingroup (rated B+ by Fitch and B by S&P) is the largest listed real estate company in Vietnam by market capitalization with controlling interest in over 128 developments, which are in prime urban and high growth areas in key cities throughout
Slide 17: One of the Largest Landbanks in Prime Locations Across Vietnam
One of the Largest Landbanks in Prime Locations Across Vietnam Landbank breakdown GFA breakdown(1) (mm sqm) Hospital, 2% School, 3% Entertainment, 3% 77 mm sqm 77 mm sqm Hotel, 7% Beach villas, 2% Highrise, 30% 60.9 48.3 28.1 16.3 0.8 Commercial, 26% Retail Mixed used & Hospitality & Completed & Und
Slide 18: Robust Residential Sales: New Projects
Robust Residential Sales: New Projects Apr-16(1) One of the best locations in the heart of District 1. The only 2,546 2,546 2,546 2,546 2,195 project located between 2 bridges, Thu Thiem 1 and Thu 2,070 2,016 Golden River 1,854 1,647 Vinhomes Thiem 2, with the first Metro Line from Ben Thanh to Su
Slide 19: Seamless Land Acquisition and Sale Process
Seamless Land Acquisition and Sale Process Understanding the development and presales process is a crucial part in appreciating Vingroup’s de-risked business model for residential projects Land Acquisition Presales Delivery 1. Obtaining approval-in-principle Delivery of property upon Stage 2 – Appor
Slide 20: Capital-efficient Business Model
Capital-efficient Business Model Integrated development model Recycle capital through opportunistic asset sales 2006 2010 2012 2013 2015 Vinhomes Central Park Vincom Center Vincom Center Vincom Center Ofice Tower in Ba Trieu – Ofice Tower in Ba Trieu – A HCMC Dong Da Tower A District 1, Tower B (sho
Slide 21: D. Dominant Modern Retail Player across all Formats
D. Dominant Modern Retail Player across all Formats 1. Nationwide Retail Network 22 2. Growing Portfolio of Retail Properties Attracts Premium Brands 23 3. Complemented by Innovative E-commerce and Robust Infrastructure 24 21 CORPORATE PRESENTATION
Slide 22: Nation-wide Retail Network
Nation-wide Retail Network 29 / 63 cities and provinces covered Vincom Retail Key retail brands A Premier shopping mall operator 41 Malls(3) North Vietnam(1) 7 Vincom malls 8 VinMart Hanoi 17 VinMart+ 7 VinPro 7 Vincom malls 6 VinDS 16 VinMart 410 VinMart+ 6 VinPro Vincom Center Vincom Mega Mall Cen
Slide 23: Growing Portfolio of Retail Properties Attracts Premium Brands
Growing Portfolio of Retail Properties Attracts Premium Brands Vingroup’s brand names are instrumental in securing new sites, achieving premium pricing and attracting about 1,000 unique international and domestic tenants Fashion, beauty and accessories (1) Food & Beverage and others Tenants for Vinc
Slide 24: Complemented by Innovative E-commerce and Robust Infrastructure
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 management system
Slide 25: E. Financial Overview – VAS
E. Financial Overview – VAS(1) (1) Source: Audited VAS Consolidated FS for 2013,2014,2015, 2016 and unaudited VAS Consolidated FS for 1H 2017 25 Based on exchange rate of US$1 = VND 22,770 as of 30 June 2017 CORPORATE PRESENTATION
Slide 26: Debt profile overview
Debt profile overview Debt maturity (US$ mm) As of 30 June 2017: 971 • Average debt maturity: 2.56 years 82 474 419 775 7 263 197 74 211 216 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Syndicated loan Convertible loan Bank borrowings Average borrowing cost 10.8% 9.9% 9.4%
Slide 27: Debt Mix Analysis
Debt Mix Analysis Diversified funding sources(1) Debt breakdown(1) By currency USD, Others, 7.0% 16.2% Syndicated loan, 15.0% VND, 83.8% Bank loans, 12.7% By interest rate Domestic bond, 64.3% Fixed, Convertible 17.8% loan, 1.0% Total: VND44,123 Bn (US$1.94Bn) Floating, 82.2% Note: Audited VAS Conso
Slide 28: Income Statement Highlights
Income Statement Highlights Revenue Gross profit (US$ mm) (US$ mm) 2,528 765 892 1,551 488 519 513 1,511 1,297 571 1,074 505 333 323 870 278 176 1,636 412 1,019 940 1,046 694 662 2013 2014 2015 2016 1H2016 1H2017 2013 2014 2015 2016 1H2016 1H2017 Property sales Recurring revenue EBITDA Profit for th
Slide 29: Revenue Performance
Revenue Performance Total revenue Property sale Retail leasing (US$ mm) (US$ mm) (US$ mm) 2,528 1,636 146 118 1,511 1,552 103 1,297 1,019 1,046 89 940 85 1,074 73 870 694 662 2013 2014 2015 2016 1H2016 1H2017 2013 2014 2015 2016 1H2016 1H2017 2013 2014 2015 2016 1H2016 1H2017 Consumer retail Hospita
Slide 30: Profitability – Gross Profit and Margin
Profitability – Gross Profit and Margin Total gross profit Property sale Retail leasing (US$ mm) (US$ mm) (%) (US$ mm) (%) 61% 56% 51% 51% 53% 49% 765 36% 37% 41% 39% 39% 42% 75 519 513 640 488 60 58 443 52 333 47 323 378 381 36 249 259 2013 2014 2015 2016 1H2016 1H2017 2013 2014 2015 2016 1H2016 1H
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights Total cash and short-term investments(1) Total debt(2) and net debt(3) (US$ mm) (US$ mm) 881 740 1,938 647 1,745 617 594 1,638 1,532 573 314 1,296 291 163 1,150 1,198 261 885 678 758 431 426 356 356 308 2013 2014 2015 2016 1H2017 2013 2014 2015 2016 1H2017 Cash and cash eq.
Slide 32: F. Financial Overview - IFRS
F. Financial Overview - IFRS(1) (1) Source: IFRS Consolidated Financial Statement for 2016 32 Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016 CORPORATE PRESENTATION
Slide 33: Debt profile overview
Debt profile overview Debt maturity (US$ mm) 1,116 As of 31 December 2016: 107 • Average debt maturity: 3.46 years 895 333 268 242 54 94 48 174 194 84 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Syndicated loan Convertible loan Bank borrowings Average borrowing cost 17.7%
Slide 34: Debt Mix Analysis
Debt Mix Analysis Diversified funding sources(1) Debt breakdown(1) By currency USD, EUR, 16.0% 0.5% Syndicated loan, 14.8% Bank loans, 15.4% VND, 83.5% Convertible By interest rate loan, 1.0% Fixed, Corporate bond, 10.1% 68.8% Total: VND44,649 Bn (US$1.95Bn) Floating, 89.9% Notes:Based on exchange r
Slide 35: Income Statement Highlights
Income Statement Highlights Revenue Gross profit (US$ mm) (US$ mm) 2,265 683 507 536 1,526 915 1,293 586 343 870 276 176 1350 1017 940 694 2013 2014 2015 2016 2013 2014 2015 2016 Property sale Recurring income EBITDA(1) Profit for the year(2)(3) (US$ mm) (US$ mm) 612 289 583 8 252 473 374 114 105 20
Slide 36: Revenue Performance
Revenue Performance Total revenue Property sale Retail leasing(1) (US$ mm) (US$ mm) (US$ mm) 2,265 147 1,350 117 1,526 1,017 940 97 1,293 85 694 869 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Consumer retail Hospitality & entertainment services Healthcare & education (US$ mm) (US$ m
Slide 37: Profitability – Gross Profit and Margin
Profitability – Gross Profit and Margin Total gross profit Property sale Retail leasing (US$ mm) (US$ mm) (%) (US$ mm) (%) 41% 40% 74% 80% 68% 34% 35% 64% 683 537 507 536 100 358 384 78 75 343 63 235 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Consumer retail Hospitality & entertainm
Slide 38: Balance Sheet Highlights
Balance Sheet Highlights Total cash and short-term investments Total debt(1) and net debt(2) (US$ mm) (US$ mm) 866 1,959 616 640 1,648 1,550 551 1,436 558 1,268 260 284 101 1,005 870 789 706 617 450 356 356 308 2013 2014 2015 2016 2012 2013 2014 2015 2016 Cash and cash eq. ST investments Total debt
Slide 39: G. Trading Performance
G. Trading Performance 39 CORPORATE PRESENTATION
Slide 40: Share Price Performance over the Last Months
Share Price Performance over the Last 36 Months 50,000 14.0 12.0 40,000 Share Price (VND) 10.0 Volume (m) 8.0 30,000 6.0 20,000 4.0 2.0 10,000 0.0 7/27/2014 10/25/2014 1/23/2015 4/23/2015 7/22/2015 10/20/2015 1/18/2016 4/17/2016 7/16/2016 10/14/2016 1/12/2017 4/12/2017 6/30/2017 Vingroup Share Volum
Slide 41: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Represe
Slide 42: 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] 42 CORPORATE PRESENTATION
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