Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (March 2022)
49 slides from Vingroup Joint Stock's investor presentation, March 2022
Slide 1: Vingroup Corporate Presentation
VINGROUP Corporate Presentation March 2022
Slide 2: Important Notice
2 Important Notice 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 subsidi
Slide 3: Table of Contents
Table of Contents 1 About Vingroup 2 Key Competitive Advantages 3 COVID-19 Update 4 2022 Outlook & Key Initiatives 5 Financial Highlights
Slide 4: About Vingroup
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Slide 5: Unique and Dominant, Comprehensive Live-Work-Play Ecosystem
5 Unique and Dominant, Comprehensive Live-Work-Play Ecosystem #1 #1 Vingroup businesses are categorized into Mobility, Sustainable Energy Real Estate Development & Smart City Solutions three pillars: Vinhomes luxury, high-end and mid-range integrated residential and commercial projects VinFast cars
Slide 6: The Largest Conglomerate in Vietnam, Asia's Next Tiger Economy
6 The Largest Conglomerate in Vietnam, Asia’s Next Tiger Economy (1) 1.5% Nationwide operations of nominal GDP in 62/63 provinces and municipalities contributed by consolidated revenue of Vingroup companies in 2021 (4) 11.9% (3) 41,500 employees of VN Index (4) Largest private Vietnamese corporate e
Slide 7: Track Record of Developing New Businesses Into Market Leaders
7 Track Record of Developing New Businesses Into Market Leaders US$4.7bn raised through equity transactions in the last 3 years(1) Total Assets (US$bn)(2) Position & Technology Mobility, Battery & Industrials (3) Automotive #1 Components • 1993 – Technocom was set up Real Estate • 2000 – Technocom-V
Slide 8: Riding on an Exciting Digital Journey to Transform Experience
8 Riding on an Exciting Digital Journey to Transform Experience on Unprecedented Scale 3 4 5 STAGE 2 Enablers Catalysts Strategies • Data-rich customer platform • Large addressable markets • Best-in-class and smart products • Strategic partnership • High rate of technology adoption • Disrupt traditi
Slide 9: Corporate Structure
9 Corporate Structure US$12.9bn(1) INDUSTRIALS & REAL ESTATE SOCIAL TECHNOLOGY(2) & SERVICES ENTERPRISES(3) US$14.8bn (1) 69.3% Healthcare and 74.9%-100% 51.5% Mobility Real Estate Development Education US$3.3bn (1) 51.0% Battery Cell Technology Development and Manufacturing 60.3% Retail Mall 100.0%
Slide 10: Key Competitive Advantages
Key Competitive Advantages 1 Favourable Macro-Economics in Vietnam and Across All Consumer Industries 2 Unparalleled Execution Capabilities in New Business Sectors 3 Dominant Integrated Real Estate Developer, Owner and Operator 4 Largest Ecosystem in Vietnam with Market Leadership Across Multiple Bu
Slide 11: Favorable Macro-Economics in Vietnam and Across All Consumer Industries
11 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
Slide 12: Strong Macro Tailwinds
12 1 Strong Macro Tailwinds Fastest Growing Economy Fastest Growing Middle-Income One of the Highest Private Strongest Internet Economy in Southeast Asia Segment in SEA Consumption in Southeast Asia Growth in SEA Real GDP growth 2022E -2024E Middle income population(1) growth Private consumption as
Slide 13: Robust Growth Expected for Car Ownership in Vietnam and EVs Globally
13 1 Robust Growth Expected for Car Ownership in Vietnam and EVs Globally 1. Significantly Low Car Penetration 3. VinFast EVs positioned to penetrate both international EV and ICE 2021 car ownership per 1,000 people segments with our product offering 14.8x North America (US & Canada) 472.0 23x VinFa
Slide 14: Consumer Spending to Grow Across Vingroup's Key Consumer Segments
14 1 Consumer Spending to Grow Across Vingroup’s Key Consumer Segments Healthcare - Increasing Household Education - Increasing Household Tourism - Domestic And International Healthcare Expenditure From Aging Education Spending As More Families Tourist Arrivals Increasing At A Rapid Population And R
Slide 15: Experiencing Favorable Geopolitical Shifts
15 1 Experiencing Favorable Geopolitical Shifts • Beneficiary of global supply chain disruption Substantial total investment as % of GDP Stable FDI flow due to geopolitical shifts (2021 Actual) Registered FDI (US$ bn) • Supportive government policies and robust infrastructure investment 35 • Strateg
Slide 16: Unparalleled Execution Capabilities In New Business Sectors
16 2. Unparalleled Execution Capabilities In New Business Sectors VinFast electric car – VF 8 model
Slide 17: The 1st OEM in the World to Cease ICE Production and Go EV-Only
17 2 The 1st OEM in the World to Completely Cease ICE Productions by the End of 2022 and Transform to EV-Only Company PHASE 1 PHASE 2 PHASE 3 Foundation (2017 – 2019) Acceleration (2020 – 2021) Go Global (2022+) Establishment of Manufacturing & Commercial Domestic market Global EV Rollout Infrastruc
Slide 18: Proven Track Record in Capturing #1 Market Share in Vietnam
18 2 Proven Track Record in Capturing #1 Market Share in Vietnam Across All Present Segments Fadil – Vietnam’s best-selling model in 2021 Lux A2.0 – Car of the year by Car Awards 2021 78% 55% 18 months to reach 18 months to reach #1 position #1 position 1 #1 in premium mid-size sedans 1 A-segment ha
Slide 19: World-Class Automated Manufacturing Facilities
19 2 World-Class Automated Manufacturing Facilities to Meet Fast Growing Smart EVs Demand The most modern factory in Vietnam and the newest, biggest Established supply chain and partnerships with industry leaders, built automated manufacturing facility in ASEAN up extensive distribution network for
Slide 20: Strategic Partnerships With Industry Leaders Complement In-House R&D
20 2 Strategic Partnerships With Industry Leaders Complement In-House R&D Capabilities VinFast in-house capability … …leveraging Vingroup technology ecosystem Integrated development capability Fully utilized the smart device research and manufacturing capability in the ecosystem with c.1,700 R&D eng
Slide 21: Dominant Integrated Real Estate Developer, Owner and Operator
21 3. Dominant Integrated Real Estate Developer, Owner and Operator Vinhomes Ocean Park (Hanoi)
Slide 22: Dominant Integrated Real Estate Developer, Owner and Operator
22 3 Dominant Integrated Real Estate Developer, Owner and Operator • Unrivalled nation-wide land bank to support Vingroup’ s growth and sustainability RESIDENTIAL, OFFICE AND INDUSTRIAL RETAIL MALLS HOSPITALITY AND ENTERTAINMENT TOTAL LANDBANK 168 mn 80 17,700 sqm of site area Malls under operation
Slide 23: Vinhomes – The Leading Residential Platform
23 3 Vinhomes – The Leading Residential Platform Unparalleled Execution Capabilities Diversified Product Offerings (1) Land Acquisition • Ability to secure the best land banks in Vietnam US$22.9bn total addressable market per annum Average Selling Prices (US$ / sqm)(3) Master Planning and • Master p
Slide 24: Property Development Model and Payment Schedule
24 3 Property Development Model and Payment Schedule Built on Favorable Regulatory Framework for an Efficient Self-Funding Business Model 2 – 2.5 years Condo: 6 months Condo: 6 – 10 months Condo: 12 – 16 months Villa: 12 months Villa: 2 – 3 months Villa: 9 – 10 months Master Planning Construction &
Slide 25: Expansion into Industrial Real Estate
25 3 Expansion into Industrial Real Estate to Capitalize on the Attractive Sector Tailwinds Leveraging Vinhomes’ Expertise in Sourcing/ Acquiring Land as Additional Pillar of Vinhomes’ Medium Term Strategy to Diversify well as Real Estate Development and Increase Recurring Revenue and Provide More A
Slide 26: Vincom Retail – Largest Retail Properties Developer & Operator in Vietnam
26 3 Vincom Retail – The Largest & Fastest Growing Retail Properties Developer & Operator in Vietnam Outstanding Indicators Hanoi – 11 5 Vincom Centers Northern Vietnam 3 Vincom Mega Malls 43 provinces/cities (except Hanoi) – 19 • 16 Vincom Plazas 3 Vincom Plazas • 3 Vincom+ 80 malls under operation
Slide 27: Vinpearl – The Leading Integrated Hospitality and Entertainment Platform
27 3 Vinpearl – The Leading Integrated Hospitality and Entertainment Platform Premium Hospitality Portfolio at Vietnam’s Most Coveted Locations Integrated Lodging and Entertainment Portfolio of 5+ Star Brands TOTAL: 46 PROJECTS(1) DA NANG & QUANG NAM Rooms 2,625 Group of Affluent/ Silver Business Fa
Slide 28: Largest Ecosystem in Vietnam With Market Leadership
28 4. Largest Ecosystem in Vietnam With Market Leadership Across Multiple Businesses Vinhomes Grand Park (HCMC)
Slide 29: Leveraging Data Analytics for Deep Behavioral Understanding
29 4 Leveraging Data Analytics for Deep Behavioral Understanding and Continual Improvement of Platform Offerings Data CONSUMER DATA Analytics CONSUMER PREFERENCES CONSUMER DATA Personalized Services & Products Smart Solutions Customer Product Touchpoints Enhancements Superior ecosystem experience ba
Slide 30: Proven Track Record of Developing Vietnamese Brands of Scale
30 5. Proven Track Record of Developing Vietnamese Brands of Scale Vinhomes Golden River (HCMC)
Slide 31: Proven Track Record of Developing Vietnamese Brands of Scale
31 5 Proven Track Record of Developing Vietnamese Brands of Scale Most Loved and Respected Best Designs Brands International Property Awards ● The Most Intelligent District – IBcon Digie Awards (2021) – Techno Park Vietnam Report 2020 Tower, Vinhomes Ocean Park ● Top 10 largest enterprises in Vietna
Slide 32: Superior Brand Equity Fosters Consumer Trust and Lower Acquisition Costs
32 5 Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs Vin-brands being a household name across sectors… Vinhomes – VinFast Vingroup Vinpearl Vincom Retail Top 2 local brand Top 10 Brand “A Star is Born” Award Top 10 Five-star Hotels Vietnam Nielsen 2020 Forbes Vietna
Slide 33: Prudent Financial Policies And Strong Financial Position
33 6. Prudent Financial Policies And Strong Financial Position VinFast electric car – VF 9 model
Slide 34: Prudent Financial Policies and Strong Financial Position
34 6 Prudent Financial Policies and Strong Financial Position • Minimum cash balance of US$700m or above to avoid liquidity risk Liquidity • Only Vietnamese issuer with access to multiple sources of capital, including domestic and international banks, domestic bond market, as management well as inte
Slide 35: Global Reputation Helped Attract Top-Tier International Investors
35 6 Global Reputation and Good Execution Helped Attract Top-Tier International Investors Sovereign Wealth Funds Equity Capital Markets Banking Public Partners Markets Strategic Partners & Joint Ventures Convertible / Exchangeable Bond Markets Private Internal Markets Cash flow Private Equity Intern
Slide 36: Visionary Management with Proven Track Record
36 6 Visionary Management with Proven Track Record Board of Directors Mr. Pham Nhat Vuong • Holds a Bachelors Degree in Geological Economic Engineering, graduated from Moscow Geology University in Russia Chairman of the Board of Directors • Long track record as an entrepreneur both in and out of Vie
Slide 37: Committed to International Corporate Standards
37 6 Committed to International Corporate Standards 1. Seasoned Management Teams for Every Business Segment Dr. Vu Ha Van Ms. Le Thi Thu Thuy Mr. Pham Thieu Hoa Ms. Le Mai Lan CEO CEO CEO President • 24+ yrs experience • 7+ yrs with Vingroup • Percey F. Smith Chair of • 25+ yrs experience • 34+ yrs
Slide 38: COVID-19 Update
COVID-19 Update =~ -
Slide 39: High Vaccination Rates Allowed Vietnam to Open up the Economy
39 High Vaccination Rates Allowed Vietnam to Open up the Economy and Create Optimism for Higher GDP Growth in 2022 Vietnam’s transition from “zero Covid” to “co-existing safely with the virus” Vietnam has one of the highest the highest COVID-19 Hence, business activities in major cities re-opened si
Slide 40: Businesses Saved Cost during COVID Thanks to Quick Initiatives
40 Businesses Were Able to Save Cost on Operational Activities during COVID Thanks to Quick Initiatives and Are Nimbly Adapting to the New Normal Impact from COVID • Extended #1 market share across • Moderate impact to retail sales. • Material impact in 4Q21 as only • Material impact • Moderate impa
Slide 41: 2022 Outlook & Key Initiatives
2022 Outlook & Key Initiatives
Slide 42: 2022 – 2023 Outlook
42 2022 – 2023 Outlook 01 Industrials and Technology • 2022 is a watershed year for VinFast as it transitions from ICE towards EV • Profitability to come from higher volumes, completion of showroom expansion in international markets, better brand recognition and the launch of new models 02 Real esta
Slide 43: Key Initiatives for 2022
43 Key Initiatives for 2022 01 Industrials and Technology • E-motorcycles: upgrade current models’ battery capacity and efficiency • EV: Roll out 3 EV models across Vietnam, the U.S., and Europe. Prepare charging infrastructure for EV transition in Vietnam, to be installing 150,000 charging ports •
Slide 44: Financial Highlights
Financial Highlights’ .*
Slide 45: Income Statement Highlights
45 Income Statement Highlights Revenue(1) Gross Profit(1) EBITDA(1) (2) (3) Profit After Tax(1) (3) (VNDbn) (VNDbn) (VNDbn) (VNDbn) 27.3% 33.7% 24.9% 29.2% 25.9% 36.0% 25.9% 22.1% 30.5% 137,380 130,752 39,884 36,778 13,815 38,154 35,659 107,794 102,254 34,492 11,399 34,201 84,202 28,985 99,058 29,37
Slide 46: FY2021 Underlying Business Performance
46 FY2021 Underlying Business Performance Revenue 170,000 NPAT Breakdown of Covid-related and Charitable (VND bn) (VND bn) Expenses (%) 97% 12% 1,737 4,373 4,500 2021 target 29% 130,752 125,306 170,000 4,060 VND6.1tn 77% 9% 32% 5,446 130,752 2021 target 125,306 9% 9% Financial aid Test kit Covid med
Slide 47: Leverage, Coverage and Other Ratios
47 Leverage, Coverage and Other Ratios FY2021 FY2020 Change Leverage ratios Net debt(1)(2) / EBITDA 3.4x 2.5x 0.9x Net debt(1)(2) / Operating EBITDA(3) 2.3x 2.2x 0.1x Net debt(1)(2) / (Total assets – cash & ST investments(2)) 24.8% 23.5% 1.3 ppts Coverage ratios Recurring revenue / Interest expense(
Slide 48: Appendix
Appendix
Slide 49: Company Information
49 Company Information Vingroup Joint Stock Company (“Vingroup” or “the Group”)’s market capitalization: USD12.9 billion as at February 28, 2022. OFFICES Vingroup today bases its strategy on the principles of sustainability and professional management to operate in three major business HANOI HEADQUA
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