Vinhomes Joint Stock Company · HOSE:VHM
Vinhomes Joint Stock — Investor Presentation (August 2019)
40 slides from Vinhomes Joint Stock's investor presentation, August 2019
Slide 1: Corporate Presentation August 2019
where happiness lives Corporate Presentation August 2019
Slide 2: 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 Vinhomes Joint Stock Company (the “Company”) and its subsidiaries (t
Slide 3: Vietnam's #1 Integrated Real Estate Developer
Vietnam's #1 Integrated Real Estate Developer Dominant market share of 18%(1) across ALL residential segments in Vietnam, 4.5x the next largest developer. In the premium segment, Vinhomes has a significant market share of c.40%(3) Key Highlights Dominant Real Estate Vietnam Residential Set Developer
Slide 4: Key Investment Highlights
where happiness lives Key Investment Highlights
Slide 5: Key Investment Highlights
Key Investment Highlights 1 Ability to Harness Vingroup Ecosystem 2 Vietnam Residential Set for Multi-year Upwards Cycle Dominant Real Estate Developer and a Community and Lifestyle 3 Creator Experiencing Accelerating Growth where happiness lives High Earnings Visibility Supported by Unrivalled c.15
Slide 6: Ability to Harness Vingroup Ecosystem
1 Ability to Harness Vingroup Ecosystem Vingroup has established itself as a market leader across the full breadth of consumer related sectors from essentials to aspirational. Market Market share: ~18%(3) share: ~60%(4) Retail Leasing Residential Integrated residential Retail mall owner, developer a
Slide 7: Unique Vietnamese Fundamentals for Home Ownership
2 Unique Vietnamese Fundamentals for Home Ownership Fastest Growing Economy in Southeast Asia with Strongest Middle Income Second Highest Population Proportion Among Workforce Growth Population with Age Range Between 25 – 44 as % of Total Population 2018 – 2020E Real GDP Growth (%) Middle Income Pop
Slide 8: Vietnam Residential Market Set to Take Off
2 Vietnam Residential Market Set to Take Off Vietnam’s Housing Significantly More Affordable Than Regional Peers Vietnam’s Mortgage Market is Significantly Underpenetrated Compared to Home Price-to-Income Ratio (x) in 2017(1) Regional Peers 7.5 Total Home Mortgage Loans Outstanding as % of GDP in 20
Slide 9: Vinhomes Poised to Benefit from Higher Condominium Absorption in Vietnam
2 Vinhomes Poised to Benefit from Higher Condominium Absorption in Vietnam Total addressable market for condominiums in HCMC & Hanoi to rise by c. 3.3x by 2022 Natural Growth in Number Accelerated Increase in Demand for Significant Multi-Year Growth of Households Condominiums in HCMC & Hanoi Potenti
Slide 10: Dominant Real Estate Developer and a Community and Lifestyle Creator
Dominant Real Estate Developer and a Community and Lifestyle Creator 3 Experiencing Accelerating Growth Dominance of Vietnam Residential Market by a Significant Margin Largest Growth Land Bank Expected to Deliver Sustainability and • ~90,700 Residential Units Sold Since 2010 (1) Land bank (mm sq
Slide 11: Unrivalled Land Bank in Strategic Locations forms Pillar of Growth
4 Unrivalled Land Bank in Strategic Locations forms Pillar of Growth for Vinhomes Significant and Sustainable Land Bank… …Allowing Vinhomes to Continue Extending its Nationwide Presence Across Prime Sites Land Bank by Site Area Gross development value(2) (2019 – 2024) (mm sqm) Translates to 88mm sqm
Slide 12: Unparalleled Execution Capabilities through End-to-end Value Chain
5 Unparalleled Execution Capabilities through End-to-end Value Chain Vinhomes’ Superior End-to-end Value Chain Evident in Industry Leading Operational Metrics Return-on-Assets(1) (%) Ability and track record in securing the best land bank in Vietnam Continuously search for and acquire new sites
Slide 13: Experienced Management Team and Robust Corporate Governance
6 Experienced Management Team and Robust Corporate Governance Vinhomes is led by a team of highly experienced board of directors who are supported by a experienced management team with average 22 – 23 years of experience Nguyen Dieu Linh Pham Nhat Vuong Nguyen Viet Quang Chairwoman Non-Executive Dir
Slide 14: Institutional Level Corporate Governance
6 Institutional Level Corporate Governance Corporate governance principles emphasize a quality Board, sound internal controls, transparency and accountability to all shareholders Controls put in Place • All transactions must be entered into on commercially reasonable basis as a statutory requiremen
Slide 15: Business Strategy & Operational Updates
where happiness lives Business Strategy & Operational Updates
Slide 16: Driving Growth with New Brand Vinhomes Sapphire
Driving Growth with New Brand Vinhomes Sapphire Total addressable market of US$22.9bn(2) per annum Average Selling Prices (US$ / sqm)(5) Leverage Vinhomes’ dominant market leadership of c.40%(1) across high-end and luxury segments… Luxury where happiness lives Vinhomes Diamond 1.3%(4) Phu My 0.4mm
Slide 17: Wholesale Strategy to Boost Execution and Pull Forward Revenue
Wholesale Strategy to Boost Execution and Pull Forward Revenue and Profit Recognition Key Strategy where happiness lives • Focus on the development of VHM mega projects • Master developer in mega projects, which entails master planning, develops infrastructure and attracts sub-developers and institu
Slide 18: Operational Highlights of 2Q2019
Operational Highlights of 2Q2019 Launching of long-awaited Vinhomes Grand Park • Vinhomes Grand Park’s kick-off event was held on 22 June 2019 and soft launched in July 1 • Booking secured for c.10,000 units up to 21 Jul 2019, 100% of retail units launched • Vinhomes Grand Park’s bulk sales: c. 6,90
Slide 19: 2Q2019 Key Events at Vinhomes
2Q2019 Key Events at Vinhomes Vinhomes Grand Park’s Kick-Off Event Successful marketing campaign resulted strong pre-sales performance On June 22, the long-awaited kick-off event for The 24.5 ha reservoir – the project’s highlight – was Vinhomes Grand Park mega project, called “Light Up introduced f
Slide 20: Pre-Sales Momentum Continues
Pre-Sales Momentum Continues Annual pre-sales (VND trillion) Pre-Sale NSA (mm sqm) Breakdown by launched year Unbilled bookings 27.7 60.8 79.3 69.8 77.7 2.6 2.0 65.2 67.6 1.5 53.2 53.9 1.2 35.6 0.8 2015 2016 2017 2018 7M2019 2015 2016 2017 2018 7M2019 Vinhomes Ruby/Diamond Apartments Vinhomes Sapphi
Slide 21: Development Status and Upcoming Launches Of Mega Cities
Development Status and Upcoming Launches Of Mega Cities Mega-city projects Vinhomes Ocean Park Vinhomes Smart City Vinhomes Grand Park Location • Gia Lam District, Hanoi • Nam Tu Liem District, Hanoi • District 9, Ho Chi Minh city Product size area • 420 ha • 280 ha • 271 ha Construction start date
Slide 22: Update on Project Injection Into Vinhomes
Update on Project Injection Into Vinhomes Vinhomes Dream City Vinhomes Grand Park Vinhomes Marina Location Hung Yen Ho Chi Minh City Hai Phong Total project area 456 ha 271 ha 49.2 ha (including infrastructure) Injection status • Transferred from Vingroup to • Vinhomes’ interest to be increased • To
Slide 23: Delivery of Completed Units in 2019
Delivery of Completed Units in 2019 Units Delivered or to be Delivered in 2019 Delivery in 2019 Units (#) 3,000 Vinhomes Star City Vinhomes The Harmony Vinhomes Metropolis Vinhomes Green Bay Vinhomes Sky Lake 1,760 1,500 1,250 ~610 ~2,110 140 50 ~180 10 290 858 318 90 167 0 Vinhomes Star City Vinhom
Slide 24: Moving into 2H2019
Moving into 2H2019 • To launch of 8,000 units of Sapphire and Ruby at Vinhomes Ocean Park and 7,000 units of Vinhomes Smart City (Hanoi). Launches(1) – • 1st time launch of luxury product line - Vinhomes Diamond in Vinhomes 1 3 mega cities Smart City continue to be • Further bulk sales transfers on
Slide 25: Financial Highlights
where happiness lives Financial Highlights
Slide 26: Financial Performance Overview
Financial Performance Overview Total Revenue Gross Profit and Gross Profit Margin (VND bn) (VND bn) 38,664 10,061 302 290 10,618 2,079 26,770 244 186 816 1,317 489 15,297 15,527 5,167 4,335 4,454 11,217 10,130 2,254 898 9,527 328 356 163 1,745 404 263 4,101 4,281 4,281 133 9,339 12,780 35,769 14,795
Slide 27: Financial Performance Overview (cont'd)
Financial Performance Overview (cont’d) Total Revenue Gross Profit and Gross Profit Margin (VND bn) (VND bn) 40.3% 50.8% 32.6% 40.4% 38.0% 41.3% 38.9% 33.9% 30.9% 43.0% 75,009 40,547 34,769 24,641 17,991 14,657 2,130 2,130 46,798 23 12,363 302 916 328 1,317 298 21,705 886 8,887 (2) 483 186 952 404 4
Slide 28: Balance Sheet Overview
Balance Sheet Overview Total Assets Inventory VND bn VND bn 138,695 36,858 119,689 36,074 27,058 28,486 17,006 51,304 37,521 6,883 91,203 102,621 8,475 21,029 44,421 16,492 31-Dec-2016 31-Dec-2017 31-Dec-2018 30-Jun-2019 31-Dec-2016 31-Dec-2017 31-Dec-2018 30-Jun-19 Current Assets Non-current Assets
Slide 29: Key Credit Metrics
Key Credit Metrics Net Debt(1) / (Total Assets – Cash & Cash Equivalent) Net Debt(1) / Equity 27.7% Average Debt Maturity: 1.17 years 136.0% 23.8% 56.9% 9.2% 19.4% 31-Dec-2017 31-Dec-2018 30-Jun-19 31-Dec-2017 31-Dec-2018 30-Jun-19 Total Debt / Total Assets Interest Coverage Ratio Times 12.3 12.6 29
Slide 30: Appendix
where happiness lives Appendix
Slide 31: Market Summary for 1H2019
Market Summary for 1H2019 Hanoi – supply and demand No. of units 14,000 12,000 Launched units: 17,700 10,000 8,000 +25% yoy 6,000 4,000 2,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Sold units: 16,300 2016 2017 2018 2019 +27% yoy Launched units Sold units Hanoi – pricing Q2 2019: $2,345 Price (U
Slide 32: Market Summary for 1H2019
Market Summary for 1H2019 HCMC – supply and demand Market Summary for 1H2019 No. of units 10,000 7,500 Launched units: 8,547 5,000 -42% yoy 2,500 Sold units: 10,500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 inventory 2017 2018 2019 Launched units Sold units 88% Sold out in newly (1) (1) launched projects HCMC
Slide 33: Vinhomes: Not Just a Homebuilder but a Community Creator
Vinhomes: Not Just a Homebuilder but a Community Creator Ecosystem of Complementary Products and Services At Each Site where happiness lives Retail / Hospitality / #1 dominant integrated Office Medical School Entertainment Residential residential and commercial • Vinhomes • Vincommerce • Vincom Ce
Slide 34: Continued Support from Customers and Mortgage Lenders
Continued Support from Customers and Mortgage Lenders Proportion of sold units with a mortgage was 55% on average (cumulative for all projects sold by Vinhomes as of June 30, 2019) FOREIGN BUYERS(1) MORTGAGES 9% 55% • Projects with highest number of sold units with a mortgage were Percentage of Vinh
Slide 35: Valuable Land Bank Proximate to Upcoming Metro and Highway Infrastructure
Valuable Land Bank Proximate to Upcoming Metro and Highway Infrastructure Significant boost in connectivity will accelerate demand for pipeline projects Ho Chi Minh City Hanoi New Eastern Bus Station Project F Suoi Tien Long Binh Project D Depot Hi-Tech Park Thu Duc District 251 ha Thu Duc Vinhomes
Slide 36: Case Study: Vinhomes Competitive Positioning
Case Study: Vinhomes Competitive Positioning Vinhomes mega projects well poised for future growth given unrivalled brand equity and positive spill-over effects Vinhomes Properties Command a Premium Over Comparable Hanoi Projects … Validated through Assessment by International Experts Vinhomes Ecopar
Slide 37: Infrastructure Development Underway
Infrastructure Development Underway Visible and meaningful progress on infrastructure developments will boost real estate capital values and greatly increase connectivity for Vinhomes projects Hanoi Road Metro Line # 2 Metro Line # 3 Expansion Cat Linh – Ha Dong Nhon – Hanoi Station Vinhomes Project
Slide 38: Infrastructure Development Underway
Infrastructure Development Underway Visible and meaningful progress on infrastructure developments will boost real estate capital values and greatly increase connectivity for Vinhomes projects Quang Ninh HCMC Van Don – Mong Cai HCMC – Moc Bai highway Metro Line # 1 Connecting the highway Ben Thanh –
Slide 39: Low Risk Capital Effective Business Model
Low Risk Capital Effective Business Model Vinhomes Property Development Business Model and Payment Schedule Preparation of Construction Unit Site for Completion Construction Construction and Handover Preparation Marketing Execute Purchase Pre-sales Handover of Projects Process Commence Confirmation
Slide 40: Investor Relations Department
where happiness lives Investor Relations Department Headquarters: No.7, Bang Lang 1, Vinhomes Riverside, Viet Hung Ward, Long Bien District, Hanoi, Vietnam Tel: +84 (24) 3974 9999 ext. 9594 Website: http://ir.vinhomes.vn/en Fax: +84 (24) 3974 8888 E-mail: [email protected]
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