Vincom Retail Jsc · HOSE:VRE
Vincom Retail Jsc — Investor Presentation (September 2022)
38 slides from Vincom Retail Jsc's investor presentation, Sep 12, 2022
Slide 1: Corporate Presentation
Corporate Presentation September 2022
Slide 2: Disclaimer
Disclaimer 2 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 Vincom Retail Joint Stock Company (the “Company”) and its subsidia
Slide 3: Vincom Retail is the Largest and Fastest Growing Retail Developer in Vietnam
Vincom Retail (“VRE”) is the Largest and Fastest growing Retail 3 Developer, Owner and Operator in Vietnam Vietnam Retail Real Estate Market 1 remains a compelling Investment 01 02 Opportunity 03 04 05 Key Unique Value Proposition of the Vingroup & 2 Dominant Retail Platform in Vietnam 2Q2022 Mid &
Slide 4: Vingroup & Vincom Retail: Market Leaders in Vietnam
CORPORATE PRESENTATION 4 Vingroup & Vincom Retail: 01 Market Leaders in Vietnam
Slide 5: Vingroup & Vincom Retail: The Best-in-Country Ecosystem
Vingroup & Vincom Retail: The Best-in-Country Ecosystem 5 LARGEST AND FASTEST • LARGEST LISTED COMPANIES IN VIETNAM GROWING RETAIL DEVELOPER, • LARGEST REAL ESTATE DEVELOPER IN VIETNAM OWNER AND OPERATOR IN • C. 168 MM SQM OF LANDBANK (1) VIETNAM Ecosystem of Complementary Businesses Vincom Retail A
Slide 6: Emergence of Vincom Retail as a Clear Market Leader
Emergence of Vincom Retail as a Clear Market Leader 6 2014 – 2020 CAGR: Leasing revenue: 20.1% GFA: 22.0% Retail GFA (‘000 sqm) (2) 1st Life-Design IEO(1) and listed on HOSE (3) Leasing Revenue (VND bn) 7,017 mall – Vincom Investment by 6,008 4,701 5,506 Mega Mall Smart Warburg Pincus 4,455 City st
Slide 7: Retail Consolidates around the Dominant Local Landlord
Retail Consolidates around the Dominant Local Landlord 7 Vincom Retail • Global examples clearly demonstrate retail consolidation around the dominant local landlord Vietnam’s largest retail developer, owner and operator • Significant parallels seen between VRE and regional retail leaders • Vietnam's
Slide 8: Vincom Retail's Key Investment Highlights
8 Vincom Retail’s 02 Key Investment Highlights Vietnam Retail Real Estate Market remains a Compelling 1 Investment Opportunity Unique Position of the Dominant Retail Platform in 2 Vietnam Ability to Harness the Best-in-Country Vingroup Ecosystem 3 Institutional level Corporate Governance and ESG 4 C
Slide 9: Vietnam is Still at the Early Stage of the Modern Retail Growth Cycle
Vietnam is Still at the Early Stage of the Modern Retail 9 1 Growth Cycle Vietnam Economy Remains a Bright Spot within Region with Fastest The Growing Middle Class Set to Drive Next Wave of Recovery and Growing Prospect Consumption Growth Real GDP growth (1) (%) Vietnam’s Disposable Income per Capit
Slide 10: Retail Real Estate Market Remains a Compelling Investment Opportunity
Retail Real Estate Market Remains a Compelling 10 1 Investment Opportunity Demand for Retail Mall Model in Vietnam Remains Strong from Both ...While Supply is Still Much Lower Compared to Other Countries Consumers & Tenants... in the Region Attractiveness of Retail Mall to Consumers Vietnam has a Lo
Slide 11: Solidified Position of VRE as Dominant Retail Platform in Vietnam
2 Solidified Position of VRE as Dominant Retail Platform 11 in Vietnam Multi – Format Retail Model VINCOM CENTER VINCOM MEGA MALL “Bright spots” of cities and provinces across the country 44 83 ~1.75 mm CITIES, PROVINCES OPERATING MALLS RETAIL GFA (sqm) NORTH VIETNAM 19 (except Hanoi) Location • Cit
Slide 12: Multi-Format Model Covers a Larger Market Opportunity
Multi - Format Model Covers a Larger Market Opportunity 12 2 Annual Income Distribution Holistic Segment Coverage Across Formats Competitors (% of population In Vietnam) Affluent Target Segment: Target Segment: LOTTE (6%) Target • City Center/CBD • Integrated AEON Segment: consumers development Targ
Slide 13: The Go-to Nationwide Platform for International and Local Brands
The “Go-to” Nationwide Platform for Well-known 13 2 International and Established Local Brands Our Prime-Location Malls Creates Significant Bargaining … and Ability to Attract Best-in-Class Tenant Portfolio, with more Power when Negotiating with Tenants than 1,000 Unique Tenants Fashion & Beauty Fir
Slide 14: Ability to Harness the Best-in-Country Vingroup Ecosystem
14 3 Ability to Harness the Best-in-Country Vingroup Ecosystem c.168 mm Access to the Unrivalled Landbank from Vietnam’s 8% Market Leading Retail Brands Form sqm of Landbank(1) Biggest Real Estate Developer NLA leased to internal tenants(2) Immediate Tenant Foundations Vinhomes’s Landbank Breakdown
Slide 15: Metro and Bus Infrastructure to Accelerate Retail Mall Footfall
Metro and Bus Infrastructure to Accelerate 15 3 Retail Mall Footfall Most of VRE malls are covered by the upcoming metro lines in Ho Chi Minh City and Hanoi, and major VRE megamalls such as Vincom Mega Mall Ocean Park, Smart City and Grand Park have extra Under Construction Planned Lines Bus Route H
Slide 16: Institutional Level Corporate Governance to Protect Shareholders
16 4 Institutional Level Corporate Governance in place to Protect Interests of Shareholders Transparent Decision Making Internal tenants & Management Services Contracts Leases with internal tenants management services contract are Vingroup has been VRE’s largest shareholder. Therefore, to protect th
Slide 17: Commitment to be a Lifestyle Pioneer, Sustainability Developer & Community Builder
17 4 Commitment to be a Lifestyle Pioneer, Sustainability Developer & Community Builder 01 Sustainability Developer 03 Lifestyle Pioneer • In 2021, Vincom Center for Contemporary Art (VCCA) • Completed the installation of solar panels at ~50 hosted major exhibitions bringing together over 160 shoppi
Slide 18: 2Q2022 Key Highlights
VINCOM RETAIL CORPORATE PRESENTATION 18 2Q2022 03 Key Highlights Vincom Center Pham Ngoc Thach - Hanoi
Slide 19: Financial Performance in 2Q2022
19 Financial Performance Financial Performance– 1Q2021 in 2Q2022 Revenue and profit are on track to recovery Total revenue Leasing Revenue VND billion % compared to the same quarter last year VND billion % compared to the same quarter last year 132.1% 92.7% 44.7% 42.0% 61.5% 122.5% 118.1% 104.8% 45.
Slide 20: Vietnam's Economy is Back on Track to Growth
Vietnam’s Economy is Back on Track to Growth 20 Vietnam ranked high in post-COVID Inflation is under control, facilitating Retail market is gradually recovering, Recovery index macroeconomic stability reaffirming growth potential Vietnam ranked 2nd in post-COVID GDP 2Q2022 GDP 1H2022 Total retail sa
Slide 21: Retail Market Trends in the First Half of 2022
Retail Market Trends in the 21 First Half of 2022 1 Customers are returning to the in- person shopping experience 4 Retailers push forward their expansion strategy Hanoi’s real estate retail market Supply chain disruption and lack of 2 recorded new supply1 for the first- time after 5 consecutive qua
Slide 22: Consumers are Returning to In-store Shopping
Consumers are Returning to In-store Shopping 22 Footfall per month (Unit: million visitors) Footfall in 2Q2022 increased by 36% QoQ 13.6 13.8 13.7 12.8 12.4 12.7 10.9 9.8 9.3 8.7 8.5 8.1 8.1 6.4 5.8 5.0 4.4 2.1 2.3 Jan-21 Oct-21 Feb-21 Dec-21 Feb-22 Nov-21 Mar-21 Apr-21 Mar-22 Apr-22 Aug-21 May-21 M
Slide 23: Expansion of Our Shopping Mall and Tenant Network
23 Expansion of Our Shopping Mall and Tenant Network Successful opening of 3 new shopping malls in 2Q2022 VMM Smart City VCP My Tho & Bac Lieu • Opening date: April 28 2022 • Opening date: June 10 2022 • Committed occupancy rate: 98% • Committed occupancy rate: 98% • Occupancy rate at launch: 94% (V
Slide 24: Tailored Approach to Attract Different Customer Segments
Tailored Approach to Attract and Improve Experience for 24 Different Customer Segments Check-in with the only life-size racing Young generation car model in Vietnam (GEN Y - Z) Trending Hashtag #Lendodimo Series of events in the Vincom Mega Pioneer in trendy lifestyle Mall Smart City opening – April
Slide 25: VMM Smart City – Comprehensive Offering
VMM Smart City – Comprehensive Offering with the 25 Latest Shopping & Lifestyle Trends Entertainment Shopping Dining • VS Racing – indoor mini F1 race track over 3 supermarkets suitable for a variety of needs: • “Culinary world” with most-loved brands 3,000 sqm • Annam Gourmet with imported goods •
Slide 26: Mid and Long-term Strategic Plan
VINCOM RETAIL CORPORATE PRESENTATION 26 Mid and 04 Long-term Strategic Plan Vincom Mega Mall Ocean Park - Hanoi
Slide 27: Continue Our Expansion Plan, Focusing on New Generation Vincom Mega Mall Model
Continue Our Expansion Plan, Focusing on the New 27 Generation Vincom Mega Mall Model Different design theme for each 2022 2023 2024 - 2026 2026 onwards mall 1.75 million ~ 2 million Gross floor area (sqm) Gross floor area (sqm) Vincom Mega Mall Vincom Mega Mall Smart City (April 2022) Ocean Park 2
Slide 28: Continuously Improving Mall Design & Customer Experience
Continously Improving Mall Design & Customer 28 Experience Affirm reputation in regional and international markets VMM Ocean Park, honored as the best shopping mall in Vietnam 2022 at the Asia Pacific Property Awards (APPA) and is continuing to compete for international awards (International Propert
Slide 29: Outlook for 2H2022
Outlook for 2H2022 29 01 Favourable market outlook & strong domestic demand 02 Resumption of retailers’ expansion plan in Vietnam 03 Opportunity for VRE to capture the recovery momentum • Resumption of expansion activities from big chain • Leverage big events and holidays in 2H2022 to create • Vietn
Slide 30: Financial Update
VINCOM RETAIL CORPORATE PRESENTATION 30 Financial 05 Update Vincom Center Metropolis - Hanoi
Slide 31: Financial Performance in 2Q2022
Financial Performance in 2Q2022 31 Figures in VND billion 2Q2021 2Q2022 YoY (%) Note • 2Q2021 recognized a significant support package due to social distancing Revenue from Leasing of Investment Properties • In 2Q2022, tenants returned to relatively normal business, thus the support 1,370 1,822 33.1
Slide 32: Financial Performance in 2Q2022
Financial Performance in 2Q2022 32 Total Revenue Gross Profit(1) VND bn VND bn Gross Profit Margin (%) 50.8% 39.9% 47.6% 45.9% 40.6% 41.7% 57.4% 4,404 9,124 9,259 3,821 8,329 3,641 735 2,027 1,034 3,433 2,149 5,891 2,801 806 5,518 48 2,392 411 951 1,004 509 3,752 7,017 2,882 2,951 1,061 5,506 6,008
Slide 33: Financial Performance in 1H2022
Financial Performance in 1H2022 33 Total revenue Gross Profit(1) VND bn VND bn Gross Profit Margin (%) 50.8% 39.9% 47.6% 45.9% 40.6% 49.3% 52.0% 4,404 9,124 9,259 (84) 8,329 (47) 3,821 185 215 3,641 735 (164) 172 2,027 2,801 3,433 806 1,034 2,149 5,891 48 5,518 2,392 (116) 186 112 1,004 548 411 951
Slide 34: Balance Sheet
Balance Sheet 34 Total Assets Total Borrowings, Cash and Cash Equivalents VND Bn VND Bn 5,726 5,194 39,816 38,672 4,945 38,684 37,873 35,839 3,782 3,133 3,158 3,174 2,780 2,785 10,911 7,121 11,125 10,349 10,504 2,177 27,773 28,718 28,691 27,525 28,168 (2) 31/12/2018 31/12/2019 (2) 31/12/2020 31/12/2
Slide 35: Appendix
VINCOM RETAIL CORPORATE PRESENTATION 35 05 Appendix Vietnam Center for Contemporary Art (VCCA) - a non-profit art center, sponsored by Vingroup, with a mission to connect artists to the community, artworks to the public, and Vietnamese contemporary art to the global art scene, located at Vincom Mega
Slide 36: Bridging VAS to IFRS
Bridging VAS to IFRS 36 VAS IFRS Adjustments 1H2022 1H2022 Leasing revenue and other related services 3,069 37 3,106 Sale of inventory properties 93 - 93 Other revenue 58 - 58 Total revenue 3,219 37 3,256 Cost of leasing activities and other related services (1,442) 663(1) (779) Cost of inventory pr
Slide 37: International Brands Remain Committed to Vietnam
International Brands Remain Committed to Vietnam 37 New brands to Vietnam in 2021 New brands to Vietnam in 2022 – 2023 F&B Fashion, Accessories, Cosmetics Others Source: CBRE 2022 market outlook report
Slide 38: Investor Relations Department
VINCOM RETAIL CORPORATE PRESENTATION 38 Investor Relations Department Vincom Retail JSC 7 Bang Lang 1, Vinhomes Riverside, Viet Hung Ward, Long Bien District, Hanoi, Vietnam Tel: +84 (24) 3974 9999 ext. 9391 Fax: +84 (24) 3974 8888 Website: ir.vincom.com.vn/en E-mail: [email protected] Vincom Plaza I
Vincom Retail JSC — Investor Presentation (September 2022) on 6ix