Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (May 2016)
44 slides from Vingroup Joint Stock's investor presentation, May 2016
Slide 1: Vingroup Joint Stock Company Corporate Presentation
VINGROUP JOINT STOCK COMPANY Corporate Presentation May 2016
Slide 2: Contents
Contents A. Vietnam Macroeconomic Updates 3-7 B. Introduction to Vingroup 8 - 13 C. Business Strategy 14 - 16 D. Key Investment Highlights 17 - 26 E. Financial Overview - VAS 27 - 33 F. Financial Overview - IFRS 34 - 40 G. Trading Performance 41 - 42 2 CORPORATE PRESENTATION
Slide 3: A. Vietnam Macroeconomic Updates
A. Vietnam Macroeconomic Updates 3 CORPORATE PRESENTATION
Slide 4: Improving Macroeconomic Conditions Supporting Growth
Improving Macroeconomic Conditions Supporting Growth Real GDP growth remains strong Inflation and interest rates have eased considerably Driven by power & fuel price surges, 13.5% devaluation of the currency in February and a minimum wage hike in October 6.7% 10.4% 6.0% 8.7% 5.2% 5.4% 5.5% 8.4% 8.5%
Slide 5: Favorable Long-term Outlook for Consumption and Real Estate
Favorable Long-term Outlook for Consumption and Real Estate Private consumption growth(1) Catching up with Regional Peers in Urbanization(2) (%) 100 Singapore–100% 9.3% 80 Malaysia–74% 6.1% 60 Indonesia–52% 5.2% China–53% 4.9% Philippines–49% 4.1% 40 Thailand–35% India–32% Vietnam–32% 20 0 1960 1965
Slide 6: Integrated Platform Focused on the Vietnamese Urban Consumer
Integrated Platform Focused on the Vietnamese Urban Consumer Consumer Expenditure on Housing Consumer Expenditure on Tourism (US$ bn) (US$ bn) 14.3 14.9 13.0 13.9 11.4 11.9 12.6 13.0 10.5 11.3 9.6 10.0 8.5 8.9 2011 2012 2013 2014 2015 2016E 2017E 2011 2012 2013 2014 2015 2016E 2017E Consumer Expendi
Slide 7: Vietnam Residential Market is at the Start of an Uptrend
Vietnam Residential Market is at the Start of an Uptrend Hanoi residential transactions on the rise with… …high- and mid-end prices increasing slightly (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 2012 2013
Slide 8: B. Introduction to Vingroup
B. Introduction to Vingroup 8 CORPORATE PRESENTATION
Slide 9: Evolution of Vingroup
Evolution of Vingroup $70 mm equity placement $100 mm Warburg Pincus “Start-up spirit” Vinpearl Phu Quoc follow-on investment in Vincom Vincom Plaza Ha Long Retail $472 mm sale of Vincom Center A HCMC mall Vinhomes Central Park construction 10 new Vincom shopping malls: $150 mm inter
Slide 10: Largest Listed Real Estate Company with Diversified Consumer Sector Exposure
Largest Listed Real Estate Company with Diversified Consumer Sector Exposure “To create a better life for the Vietnamese people” Villas and Apartments (Vinhomes) Resorts (Vinpearl) and Amusement Parks (Vinpearlland) Golf Courses, Gyms and Spas Hospitality Shopping Malls (Vincom Center, Vincom Mega M
Slide 11: Significant Focus on Recurring Revenue Streams
Significant Focus on Recurring Revenue Streams Recurring revenue streams continue to grow (1)… …with profitability resilient through economic cycles(1) (US$ mm) (US$ mm) 567 (% of total in Mar-16) (% of total in Mar-16) 136 126 14% (3) 32% 142 16 32 96 47% (3) 41 24 4% 276 191 65 34 174 60 207 21 21
Slide 12: Strong Residential Sales: New Projects
Strong Residential Sales: New Projects(1) Nov-14(2) Prime location along the western bank of the Saigon River, 11,210 falling within the western border of the city center area, just 9,295 Central Park 4km from the city’s business center in District 1 7,319 6,543 8,922 Vinhomes 7,641 Total site a
Slide 13: Overview of Land Acquisition and Sale Process
Overview of 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 Stage 2 – Apporti
Slide 14: C. Business Strategy
C. Business Strategy 14 CORPORATE PRESENTATION
Slide 15: What Differentiates Vingroup?
What Differentiates Vingroup? Leading Privately Sponsored Listed Company In Vietnam Fully Integrated Real Estate Leverage Vingroup's Network, with Premium Brand Names in Owner and Developer of Financial Capacity and Established and Demonstrated Commercial, Residential, Large-Scale and Mixed-Used Res
Slide 16: Business Strategies Are Reinforcing
Business Strategies Are Reinforcing 1. Focus on High-quality, Large-scale Mixed Use Developments in 2. Grow Recurring Revenues Across Targeted Major Cities and Further Expand into Selected Strategic Cities Consumer Segments Leverage expertise and experience in identifying and securing Develop a
Slide 17: D. Key Investment Highlights
D. Key Investment Highlights 17 CORPORATE PRESENTATION
Slide 18: Investment Highlights Vietnam's Largest Listed Real Estate Developer
Investment Highlights 1 Vietnam’s Largest Listed Real Estate Developer Capital Efficient Real Estate Platform with Track Record of Successful Asset 2 Disposals 3 One of the Largest Landbank in Prime Locations Across Vietnam 4 Ecosystem of Complementary Products and Services 5 Nation-wide Retail Netw
Slide 19: Largest Vietnamese Developer Offering 'Pure-play' Exposure
1 Largest Vietnamese Developer Offering ‘Pure-play’ Exposure 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 40 developments, which are in prime urban and high growth areas in key cities through
Slide 20: Capital Efficient Business Model
2 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 Vincom Center Ba Trieu – Vincom Ba Trieu – A HCMC Nguyen Chi Tower A Financial Tower B (shopping
Slide 21: One of the Largest Landbanks in Prime Locations Across Vietnam
3 One of the Largest Landbanks in Prime Locations Across Vietnam(1) Landbank Breakdown by Construction Status GFA Breakdown(2) (,mm sqm) Villas, 13.2 mm sqm 76.8 mm sqm Shophouses Beach Villas 27% 26% 53.2 Entertainment 1% School 3% 18.8 10.1 Hospital 9% 4.9 High rise 23% 2.2 0.9 Hotel 5% Completed
Slide 22: Ecosystem of Complementary Products and Services
4 Ecosystem of Complementary Products and Services Synergies Amongst Property and Consumer Segments Prestigious awards and accolades Quality residential properties and uncompromising Asia Pacific Property Awards 2016 services Viet Nam's Best Mixed-Used Development – Vinhomes Central Park High-
Slide 23: Nation-wide Retail Network
5 Nation-wide Retail Network Robust investment in supermarkets, convenience stores, department stores at central locations throughout Vietnam. Leveraging Vingroup’s financial capacity and relationships with suppliers to build brand equity. Retail network at the end of April 2016 Key Retail Brands 49
Slide 24: Well-recognized Premium Brand Names in Vietnam
6 Well-recognized Premium Brand Names in Vietnam Vingroup’s brand names are instrumental in securing new sites, achieving premium pricing and attracting global brand tenants Prime Retail Malls Strategically Located in Key Cities …with a High Quality and Diversified Tenant Base(1) Hanoi Ha Long Hai P
Slide 25: Track Record in Accessing International Capital Markets
7 Track Record in Accessing International Capital Markets More than 1 billion USD raised internationally through 6 pioneering transactions since 2009 Domestic Senior Private Equity Secondary RegS/144A International Unsecured Notes, Investment by Placement of International Senior Syndicated Loan Conv
Slide 26: Experienced Management Team, Good Corporate Governance and Strong Sponsor
Experienced Management Team, Good Corporate Governance and 8 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
Slide 27: E. Financial Overview - VAS
E. Financial Overview - VAS (1) Source: VAS Consolidated Financial Statement for 1Q 2016 27 Based on exchange rate of US$1 = VND 22,325 as of 31 March 2016 CORPORATE PRESENTATION
Slide 28: Debt profile overview
Debt profile overview Debt maturity (US$ mm) As of 31 Mar 2016: 952 • Average debt maturity: 3.6 years 219 491 128 133 733 20 188 107 343 56 26 132 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Convertible bond Convertible loan Long-term borrowings Short-term debts Average b
Slide 29: Debt Mix Analysis
Debt Mix Analysis Diversified Funding Sources(1) Debt Breakdown(1) By Currency Others(2), 4.7% USD, 12.1% Bank loans, 25.7% VND, 87.9% Domestic bond, 57.6% By Interest Rate Fixed, International 25.6% bond, 10.9% Total: VND39,390 Bn (US$1.76Bn) Floating, 74.4% Note: Based on exchange rate of US$1 = V
Slide 30: Income Statement Highlights
Income Statement Highlights Revenue Gross Profit (US$ mm) (US$ mm) 1,500 488 508 1,297 278 567 868 332 176 679 180 193 373 1,019 207 933 297 104 121 692 98 472 252 199 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Sales of properties Recurring income EBITDA Prof
Slide 31: Revenue Performance
Revenue Performance Total Revenue Rental(1) Sale of Properties (US$ mm) (US$ mm) (US$ mm) 1,500 1,297 145 136 1,019 933 867 102 692 679 62 472 373 46 297 252 24 199 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Consumer
Slide 32: Profitability - Gross Profit and Margin
Profitability –Gross Profit and Margin Total Gross Profit Rental(1) Sale of Properties (US$ mm) (US$ mm) (%) (US$ mm) (%) 50% 67% 57% 58% 40% 38% 508 49% 49% 36% 37% 36% 488 42% 332 180 193 71 58 66 377 373 104 41 248 126 168 14 19 76 Dec-12Dec-13Dec-14Dec-15Mar-15Mar-16 Dec-12 Dec-13 Dec-14 Dec-15
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights Total Cash and Short-Term Investments Total Debt(1) and Net Debt(2) (US$ mm) (US$ mm) 880 1,764 786 1,640 1,532 616 647 1,292 541 1,030 552 978 260 291 885 771 760 676 259 183 355 356 339 234 76 Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 Cash and c
Slide 34: F. Financial Overview - IFRS
F. Financial Overview - IFRS(1) (1) Source: IFRS Consolidated Financial Statement for 2015 34 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 CORPORATE PRESENTATION
Slide 35: Debt profile overview
Debt profile overview Debt maturity (US$ mm) 1,444 As of 31 December 2015: • Average debt maturity: 3.7 years 317 107 1,020 46 111 28 91 68 18 20 68 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Convertible bond Convertible loan Long-term borrowings Short-term debts Total Av
Slide 36: Debt Mix Analysis
Debt Mix Analysis Diversified Funding Sources(1) Debt Breakdown(1) By Currency USD, Others(2), 1.3% 19.5% Bank loans, 31.2% Domestic bond, 49.2% VND, 80.5% By Interest Rate Fixed, 20.3% Convertible bond, 16.8% International bond, 11.9% Total: VND37,681 Bn (US$1.73Bn) Floating, 79.7% Notes:Based on e
Slide 37: Income Statement Highlights
Income Statement Highlights Revenue Gross Profit (US$ mm) (US$ mm) 1,526 536 507 1,293 586 276 341 863 175 305 1,017 940 127 688 53 109 121 45 184 64 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Sales of properties Recurring income EBITDA(1) Profit for the Year(1)(2) (US$ mm
Slide 38: Revenue Performance
Revenue Performance Total Revenue Rental(1) Sale of Properties (US$ mm) (US$ mm) (US$ mm) 1,526 148 134 1,017 1,293 940 102 688 863 62 46 305 184 109 64 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Consumer Retail Hospitality & Entertainmen
Slide 39: Profitability - Gross Profit and Margin
Profitability – Gross Profit and Margin Total Gross Profit Rental(1) Sale of Properties (US$ mm) (US$ mm) (%) (US$ mm) (%) 41% 78% 77% 37% 68% 36% 36% 36% 60% 57% 507 536 341 80 84 127 69 381 381 53 48 247 36 19 66 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 D
Slide 40: Balance Sheet Highlights
Balance Sheet Highlights Total Cash and Short-Term Investments Total Debt(1) and Net Debt(2) (US$ mm) (US$ mm) 866 1,648 1,550 612 640 1,259 558 997 258 284 909 741 782 647 256 468 213 180 354 356 256 155 308 58 76 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Cash and cash e
Slide 41: G. Trading Performance
G. Trading Performance 41 CORPORATE PRESENTATION
Slide 42: Share Price Performance over the Last Months
Share Price Performance over the Last 12 Months 62,000 8.0 6.0 Share Price (VND) 52,000 Volume (m) 4.0 42,000 2.0 32,000 0.0 May-15 Jun-15 Aug-15 Sep-15 Nov-15 Dec-15 Jan-16 Mar-16 Apr-16 Vingroup Share Volume Vingroup Share Price VN Index rebased Price VND52,500 as of 30 Apr 2016 10 Day 20 Day 30 D
Slide 43: 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 44: Investor Relations Department
Investor Relations Department Vingroup JSC Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area Long Bien District, Hanoi, Vietnam Tel: +84 (4) 3974 9999 ext. 759 Fax: +84 (4) 3974 8888 Website: http://www.vingroup.net E-mail: [email protected] 44 CORPORATE PRESENTATION
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