Masan Group Corporation · HOSE:MSN
Masan — VAD Bangkok 2024
45 slides from Masan's conference presentation, May 2024
Slide 1: Masan Group's Corporate Profile
Masan Group’s Corporate Profile 05/2024 1
Slide 2: Masan's transformative journey to capture hypergrowth of Vietnam consumer market
01 Masan’s transformative journey to capture the hypergrowth of the consumer market in Vietnam 2
Slide 3: Vietnam presents a solid macroeconomic backdrop, with multifold growth story
Vietnam presents a solid macroeconomic backdrop, with multifold growth story Robust growth Favorable, Stable monetary Expanding Global Net beneficiary of and income urbanizing policies infrastructure connectivity supply chain and creation demographics networks through trade geopolitical shifts Vietn
Slide 4: Masan has all the components to be the leading consumer stock in Vietnam
Masan has all the components to be the leading consumer stock in Vietnam Key Statistics #1 #1 #1 #1 #1 #1 Financial Fast growing FMCG brand Modern retailer Branded fresh protein Tea chain solutions provider mobile network c.US$4bn 98% of Vietnamese 3,600+ offline retail #1 chilled fresh meat #1 tea
Slide 5: Our journey through multiple phases of transformation
Our journey through multiple phases of transformation with support from global institutions Masan 1.0 Masan 2.0 Masan 3.0 Masan 4.0 2002 - 2014 2015 – 2018 2019 - 2020 2021 onwards Branded, Point-of-Life Consumer Platform Serving Unbranded Branded Unbranded Traceable General Trade Modern Trade 80% C
Slide 6: Corporate structure focusing on consumer-businesses
Corporate structure focusing on consumer-businesses Consumer-focused businesses account for c.85% of consolidated revenue and EBITDA in 2023 100% 94.86% 19.99% 86.4% The Sherpa 25.1% 12.26% 72.65% 85.0% 70.0% 85.7% 84.25% Note: Updated by Dec 2023 simplified without intermediary companies 6
Slide 7: A consumer portfolio enabled by common logistics and technology platforms
A consumer portfolio enabled by common logistics and technology platforms… Basic Network Offline needs growth 25% wallet share Consumer data WinMart website Lifestyle 30 - 50mm needs Phuc Long website 30% wallet share WIN MEMBERS Online Membership Techcombank website Wallet T - P AY T - P AY Consume
Slide 8: …and experienced management team…
…and experienced management team… Experienced founder and management team at Masan Group managing strategy, capital allocation, and risk management… Dr. Nguyen Dang Quang Mr. Danny Le Mr. Michael H. Nguyen Ms. Doan Thi My Duyen Mr. Rahul Bhandari Ms. Nguyen Tam Thanh Chairman of Masan Group CEO of M
Slide 9: Crown jewels targeting the $90-billion FMCG and grocery retail markets
…with the crowned jewels targeting the $90-billion FMCG and grocery retail markets in Vietnam FMCG Retail Malaysia Indonesia Global Online Global and FMCG Offline Players Retailers 50,000+ 50,000+ Companies Companies Asia (Emerging) FMCG >$1 bn in revenue Top Retailers 150 Companies 250 Companies De
Slide 10: Masan's leading consumer businesses and the quest to serve unmet needs
02 Masan’s leading consumer businesses and the quest to serve the big unmet needs of Vietnamese consumers 10
Slide 11: National FMCG champion with long-term growth trajectory
National FMCG champion with long- term growth trajectory in both local and global markets 11
Slide 12: Masan Consumer Holdings: A national champion growing at 2.6x the market's pace
Masan Consumer Holdings: A national champion growing at 2.6x the market’s pace… Revenue (US$mm) Relative growth vs. market (3) Seasonings(1) #1 435 #1 fish sauce, Leading FMCG brands 290 2.1x chili sauce, and soy sauce brand FY18 FY23 Convenience Foods US$1.24bn 352 Revenue 2023 193 1.7x Well-loved,
Slide 13: 6 core competitive advantages
… driven by a unique combination of competitive advantages to accelerate its growth while enhancing its profitability 6 Core competitive advantages 1 Experienced in building nationally recognized brands, surpassing even those from international players 2 Leading R&D capabilities with short time-to-m
Slide 14: MCH built nationally recognized brands, surpassing international players
1. MCH was able to build nationally recognized brands, surpassing even those from international players Masan is among the top brand consumer brand owners in both 4 major cities1 and rural areas of Vietnam, especially in CPG… Top brand owners in rural areas Top CPG brands in 4 major cities Top CPG b
Slide 15: Brand building supported by leading R&D capabilities
2. MCH’s brand building is supported by leading R&D capabilities, invigorating organic growth with internal innovation & JV partnership Winning brands have been developed by internal R&D as well as co-developed with international partners through joint ventures Co-developed with Jinju Ham(1) /LIST N
Slide 16: Consumer Innovation Center: consumer insight acquisition and co-creation
2. Consumer Innovation Center: Consumer insight acquisition in simulated environment and co-creation activities Simulated experience to obtain more insights Co-creation activities with consumers Simulated Kitchen Coffee shop Simulated Simulated Simulated Group Laundry Hair salon Kitchen Discussion M
Slide 17: Extensive and localized distribution network creates high barrier to entry
3. Extensive and localized distribution network penetrates deeply into every neighborhood, creating high barrier to entry Vietnam’s grocery market is still run by small retailers (“GT”)… …and the majority of the population still resides in rural areas GT. VS MT PENETRATION (%) RURAL AS % TO TOTAL PO
Slide 18: State-of-the-art manufacturing facilities across the country
4. State-of-the-art manufacturing facilities across the country, facilitating more efficient logistics and supply chain 20 state-of-the-art facilities for different product lines Nationwide network allows efficient logistics and supply chain QNW MHD Facilities in use NET Not yet constructed MCN HNF
Slide 19: Investment in technology to digitalize operations and obtain proprietary insights
5. Investment in technology to digitalize operations and obtain proprietary insights The DMS(1) enables efficient product tracking enabling quick innovation and market … with the integration of consumer leadership through real time retail data… insights from WIN membership DMS Records Orders Distrib
Slide 20: Future-proof the business with new channels and Go Global
6. Future-proof the business with new channels, taking more share at modern trade, e-commerce, and aiming to “Go Global” Penetrate into 6,000+ MT outlets across the country “Go Global” demonstrated positive results with Chin-su brand Chin-su chili sauce is among top 8 Export revenue (VND bn) Best Se
Slide 21: Accelerate and consolidate modern trade market in Vietnam
Accelerate and consolidate modern trade market in Vietnam 21
Slide 22: WinCommerce – the leader focusing on minimarts capturing hypergrowth of MT market
WinCommerce – the leader focusing on minimarts capturing the hypergrowth of MT market Leadership Indonesia’s MT development since 2010 drew a clear roadmap for Vietnam’s in the next decade to reach $20bn in size Vietnam’s Modern Trade Penetration Indonesia’s Modern Trade Penetration VN’s MT to reach
Slide 23: WinCommerce has the pieces in place to win Vietnam
WinCommerce has the pieces in place to win Vietnam 1 2 3 4 Vietnam’s only national Scalable store formats to Consumer insights and Owned logistics platform wide retailer in position to serve Urban and Rural engagement platform to drive efficiencies from consolidate retail consumers through WinMember
Slide 24: WinCommerce - Vietnam's leading nationwide retailer to consolidate retail
1. WinCommerce - Vietnam’s leading nationwide retailer to consolidate retail Key Dominating footprints across the Milestones country… …positioned to takeKey Milestones lion share of MT like in other markets with the scalable minimart format Top 1+2 MT Penetration Top 2 MT Market Share Market (2023)
Slide 25: Scalable store formats for urban and rural areas
2. Scalable store formats to consolidate market share in both Urban and Rural areas Minimart Supermarket (Daily Shopping) (Weekend Shopping) WIN (Urban) Traditional WinMart+ WinMart+ (Rural) Standard Premium Concept Picture No. of Stores 425 1,886 1,190 132 Piloted in 2023 (2023) One-stop shop for d
Slide 26: Consumer insights and engagement platform through WIN Membership (1/2)
3. Consumer insights and engagement platform through WIN Membership (1/2) … The centrepiece of Masan’s consumer-tech platform connecting all our brands and services WIN Membership Digitalize Driving consumer tech Driving targeted marketing Personalize at scale to win Powerful targeted advertising pl
Slide 27: WIN Membership initial commercial successes and future schemes (2/2)
3. …demonstrating initial commercial successes and a clear blueprint for future schemes to engage with consumers (2/2) Future schemes to launch for membership program Revenue uplift for Masan’s products 33% revenue per WCM’s outlet1 Earn Points • Member can accrue points for their spendings • Points
Slide 28: Improve logistics and supply chain efficiency through end-to-end transformation
4. Improve logistics and supply chain efficiency through end-to-end supply chain transformation and machine-learning-driven demand forecasting End-to-end supply chain transformation Automated Demand Forecasting using Machine Learning Supply chain intelligence Strategic architecture 400+ Scenarios it
Slide 29: Customized assortments supported by AI/Machine Learning
5. Increasing customized and refined assortments for different consumer segments, supported by technology and AI/Machine Learning capabilities Core 1 Core 2 - Regional Core 3 – Customized for store characteristics NORTHERN Customer Profile Store size Others Customized by stores Available at all stor
Slide 30: Strategic and trusted partner to national and international brands
6. Strategic and trusted partner to national and international brands Strategic and Trusted Partners Banking Partners Owned Brands (13% revenue) Private Global Brands National & Regional Brands Labels (4% revenue) 30 30
Slide 31: Technology and intelligence at the core of our operation
7. Technology and intelligence at the core of our operation Utilizing AI/ML for demand planning, optimizing store merchandising management and supply chain management Seamless UX for store operation with automatic task/notification Centralized control tower with single source of information to optim
Slide 32: Significant upside: Modernize general trade market in Vietnam
8. Significant upside: Modernize general trade (“GT”) market in Vietnam – still ~90% of grocery retail A significant opportunity to modernize GT Leverage WCM sourcing power, logistics network and WIN Membership Large addressable market that Masan already had experience in GT operates within 5km-radi
Slide 33: Masan is also incubating new drivers for future growth
Masan is also incubating new drivers for future growth in consumer business 33
Slide 34: Masan MEATLife (MML)
Masan MEATLife (“MML”) #1 branded integrated protein platform in Vietnam Market Leadership Production Capacity Distribution Network Financial Highlights #1 Chilled fresh meat Pioneer of branded 2.8mm heads/year c.4,000 Minimal additional brand in Vietnam fresh meat in Vietnam pork slaughter facility
Slide 35: Phuc Long Heritage JSC (Phuc Long)
Phuc Long Heritage JSC (“Phuc Long”) The only tea company of scale in Vietnam known for its unique high-quality, bold-taste tea drinks Deep brand heritage Proven, Scaled Concept Leading Profitability Significant Runway 55+ years of heritage 2022 EBITDA margin2 Store count expansion1 • Founded in 196
Slide 36: Our blueprints to generate best-in-class shareholder returns
03 Our blueprints to generate best-in-class shareholder returns and create a leading consumer - tech ecosystem 36
Slide 37: Clear blueprints to enhance shareholder returns and create synergies
Clear blueprints to enhance shareholder returns and create more synergies among business portfolio… Profitable Growth ▪ MCH to deliver double-digit revenue growth and maintain high profitability ▪ WCM to focus on profitable growth by accelerating LFL growth & improving gross margin Deleveraging ▪ Ta
Slide 38: Building technology and logistics capabilities for the leading consumer platform
…while building up the technology and logistics capabilities to build the leading consumer platform in Vietnam Operation data & insights Member Data & Insights Network Growth X Member Growth X Wallet Share Growth Growth Engines Fulfillment and logistic services THE SUPRA AI & TECHNOLOGY Key Drivers
Slide 39: Masan Consumer Holding's Building Blocks
Masan Consumer Holding’s Building Blocks New FMCG Business Marketing spending Go Global Export revenue to grow Model optimization 25 – 30% per annum • Obtain direct consumer insights via (i) CIC (with clear KPIs established) • 10-year key growth pillar: Build a platform to bring Vietnamese culture a
Slide 40: WinCommerce's Building Blocks
WinCommerce’s Building Blocks KEY BUILDING BLOCKS LFL Growth Winning WIN Improved Upside with 5-7% p.a formats Membership gross margin Win+ • Winning the South market: • 30-50m WIN Members with • Private label: • To win 48,000 small and • Minimart to develop clear Turnaround HCM & Mekong WCM as anch
Slide 41: Financial Snapshot and 2024 Guidance
04 Financial Snapshot and 2024 Guidance 41
Slide 42: Financial Snapshot
Financial Snapshot Revenue (US$mn) EBITDA (US$mn) Key highlights: MCH WCM MML Others (1) MCH WCM MML TCB Others (1) ▪ In 2020, MSN made the strategic 114 decision to acquire modern retail 420 161 117 47 network from Vingroup and 256 506 787 581 54 159 effectively turned it around 672 291 69 180 199
Slide 43: 2024 Preliminary Guidance
2024 Preliminary Guidance 2024 Budgets (VND billion) 2023 Growth vs FY23 Base Case High Case Base Case High Case Revenue 78,252 84,000 90,000 7% 15% The CrownX 57,684 63,000 68,000 9% 18% MCH 29,066 32,500 36,000 12% 24% WCM 30,054 32,500 34,000 8% 13% MML 6,984 7,100 7,800 2% 12% MHT 14,093 15,000
Slide 44: Disclaimer
Disclaimer This Presentation has been prepared by Masan Group Corporation and/or its affiliated companies (collectively, “MSN”; together with any officer, director, employee, advisor or agent of MSN, collectively, the “Preparers”) for the purpose of setting out certain information in respect of MSN’
Slide 45: Thank You!
Thank You ! 45