Vincom Retail JSC · HOSE:VRE

Vincom Retail JSC — Vincom Retail Joint Stock Company — FY2017 Earnings Presentation

17 slides from Vincom Retail JSC's earnings presentation, Jan 29, 2018

  1. Slide 1: Vincom Retail FY 2017 Financial Results

    Vincom Retail Joint Stock Company FY 2017 Financial Results 29 January 2018

  2. Slide 2: 1. Key Highlights

    1. Key Highlights

  3. Slide 3: Performance Overview – FY 2017

    Performance Overview – FY 2017 Revenue from Gross Profit Leasing(1) VND4,605 billion VND3,473 billion 19.7% YoY 20% YoY Leasing NOI(2) EBITDA Total PATMI VND2,768 billion VND4,315 billion VND3,433 billion 25.2% YoY 5.5% YoY 45.9% YoY Note: IFRS Management Consolidated Financial Reports for FY2017 (c

  4. Slide 4: Continued Expansion of Nationwide Presence

    Continued Expansion of Nationwide Presence Portfolio in Prime Urban and Growth Cities Unique Multi-Format Retail Model (Segmentation by GFA) 46 1.2mm Vincom Center No. of Malls: 4 Vincom Mega Mall No. of Malls: 3 Operational Retail GFA GFA: 165,876 sqm GFA: 395,148 sqm Malls (sqm) VCC 14% Key Cities

  5. Slide 5: 2. Operational Update

    2. Operational Update

  6. Slide 6: 2017 Operational Highlights

    2017 Operational Highlights H&M - 1st store in Vietnam Zara and sister Inditex brands 2017 Highlights  Listed on HOSE in November  15 new Vincom shopping malls  H&M opened 2 stores in Hanoi and Ho Chi Minh City  Zara opened first store in Hanoi  Key tenants added: Inditex brands (Stradivarius,

  7. Slide 7: Key Operational Metrics

    Key Operational Metrics Average Occupancy Retail GFA Change FY 2016 FY 2017 Figure in sqm FY 2016 FY 2017 Change (%) (bps) Vincom Center 93.7% 92.8% (90) Vincom Center 165,876 165,876 - Vincom Mega Mall 80.2% 82.8% 260 Vincom Mega Mall 395,148 395,148 - Vincom Plaza 92.0% 90.7% (130) Vincom Plaza 44

  8. Slide 8: Tenant Update

    Tenant Update Tenant Update for 2017 Tenant Mix Comparison(2) As at Jun 2017 Key Tenants Joining in 2017 Key Tenants Signed in 2017 for Expansion 27.9% 18.4% 24.3% 15.4% 13.9%  UPTOWN’ retail GFA was reduced in certain malls to accommodate As at Dec 2017 certain domestic accessories, cosmetics and

  9. Slide 9: Malls Opening from 2018E – 2019E

    Malls Opening from 2018E – 2019E 51 malls to be opened in 2018E – 2019E 6 malls opened in 2H 2017 Malls Opening by Format Format 2H 2017 2018E – 2019E Vincom Center - 5 Vincom Mega Mall - 0 Vincom Plaza 3 27 Vincom+ 3 19 6

  10. Slide 10: 3. Financials and Capital Management Update

    3. Financials and Capital Management Update

  11. Slide 11: Financial Performance FY 2017 vs. FY 2016

    Financial Performance FY 2017 vs. FY 2016 Figures in VND billion FY 2016(1) FY 2017(2) Change (%) Commentary Leasing of Investment Properties Leasing revenue growth mainly driven by addition of and Rendering of Related 3,847 4,605 19.7 15 malls during the year and full operation of 10 malls Services

  12. Slide 12: Financial Performance Q4 2017 vs. Q4 2016

    Financial Performance Q42017 vs. Q42016 Figures in VND billion Q4 2016 Q4 2017 Change (%) Commentary Leasing of Investment Properties Leasing revenue growth mainly driven by addition of and Rendering of Related 998 1,261 26.4 15 new malls during the year and full operation of 10 Services malls previ

  13. Slide 13: Financial Performance

    Financial Performance Total Revenue(1) Gross Profit VNDbn VNDbn Gross Profit Margin (%) 80.2% 36.4% 45.2% 64.1% 6,403 3,473 5,981 5,413 2,893 202 2,556 809 262 2,178 3,249 1,567 323 3,271 2,631 1,953 1,567 1,855 4,605 3,847 2,732 1,953 2014 2015 2016 2017 Leasing of Investment Properties Sale of Inv

  14. Slide 14: Balance Sheet

    Balance Sheet Total Assets Total Inventory (1) Re-tenanting and redevelopment exercise across Vincom VNDbn Mega Mall portfolio, leading to short-term IP asset value VNDbn reduction and FV loss from IP of c.US$50mm (2) Upon completion of repositioning, property values have returned to normalized leve

  15. Slide 15: Liquidity Position

    Liquidity Position Net Debt(1) / Total Assets Net Debt(1) / Equity % % 2.5% 3.4% -0.3% -0.2% 2016 2017 2016 2017 Interest Coverage Ratio(2) (3) Average borrowing cost(4) Times % 175.8 9.4% 8.9% 3.2 2016 2017 2016 2017 Note: Financials based on IFRS standards. (1) Net Debt = (Short-term Borrowings +

  16. Slide 16: Appendix

    Appendix

  17. Slide 17: Bridging VAS to IFRS

    Bridging VAS to IFRS VAS FY2017 Adjustment IFRS FY2017 Leasing revenue and other related services 4,477 37 4,514 Sale of residential inventory 950 (142) 809 Other revenue 91 91 Commentary on Adjustments Total revenue 5,518 5,413 Depreciation of malls is included in Cost of leasing activities and oth

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