Slide 1: 3Q2024 Community Day
3Q2024 COMMUNITY DAY October 25th, 2024 1
Slide 2: Table of contents
Table of contents Macro Environment & Consumer Sentiment Updates on Key Initiatives 3Q2024 Highlights and Consolidated Financial Results 3Q2024 Business Segments Commentary 4Q2024 Outlook and Guidance Update 2
Slide 3: Macro Environment & Consumer Sentiment
01 Macro Environment & Consumer Sentiment 3
Slide 4: Vietnam has shown resilience with continued economic recovery despite Typhoon Yagi
Vietnam has shown resilience with continued economic recovery despite setback from Typhoon Yagi in 3Q2024 GDP growth in 3Q2024 & 9M2024 reached …driven by robust recovering signals in …will further stimulate consumption, second-highest level in five years… export and manufacturing… coupled with favo
Slide 5: Updates on Key Initiatives
02 Updates on Key Initiatives 5
Slide 6: Masan understands investor concerns and has identified approach to create value
Masan understands investor concerns and has identified approach to create value for our shareholders… Macro themes Investor concerns MSN’s approach Actual progress De-lever balance sheet to <=3.5X Net Debts / EBITDA maintained at Higher global Higher interest expenses 3.4X in 3Q2024 Net Debt / EBITD
Slide 7: …and we are making good progress
…and we are making good progress. …and aim to deliver more in the next 12 – 18 months Listing of Masan Consumer on HOSE 2025 Closing the sales of HCS Explore alternative MHT’s 4Q2024 solution Accelerate earnings momentum ✓ SK’s put extended by 5 years ✓ WCM delivered 3Q2024 positive NPAT in 3Q2024 ✓
Slide 8: SK partnership extended and reduced overhang on MSN
SK partnership extended and reduced overhang on MSN $450mn $200mn In put amount extended For 7.1% WCM stakes from SK Group with the option to buy the 05 years remaining shares from SK at cost 85 83 SK’s put price 81 80 78 75 Extension of 70 Sep 4th: Announcement SK’s put option 65 of put extension 6
Slide 9: 3Q2024 Highlights and Consolidated Financial Results
03 3Q2024 Highlights and Consolidated Financial Results 9
Slide 10: Strong improvement in bottom-line across the subsidiaries
Our 3Q recorded strong improvement in bottom-line across the subsidiaries while sustaining the positive momentum of top-line MSN MCH WCM MML NPAT grew 15x YoY, NPAT positive for the First quarter with demonstrating Revenue sustained first full-quarter since double-digit growth positive NPAT and a re
Slide 11: Masan grew 3Q2024 revenue and EBITDA by 6.6% and 13.2% YoY
Masan grew 3Q2024 revenue and EBITDA by 6.6% and 13.2% YoY, respectively, along with ~15X improvement in NPAT Post-MI MSN consolidated results Key highlights (VND billion) 3Q2024 3Q2023 YoY growth (%) ▪ Masan Group (“MSN”)’s top-line growth increased by 6.6% in 3Q2024 vs. same period last year due t
Slide 12: Consumer business and deleveraging main catalysts for NPAT Post-MI improvement
Consumer business’ performance and deleveraging efforts were the main catalysts for NPAT Post-MI improvement of 15x NPAT Post-MI bridge (VND billion) Consumer-retail businesses Non-core/Non-operating activities NPAT Pre-MI (VNDbn) Consumer businesses is accounted The absence of one-off financial exp
Slide 13: Revenue momentum now matching economic growth
Masan Group’s revenue momentum is now matching with the momentum of economic growth, driven by the return of consumer-retail businesses GDP growth vs. Masan Group excluding MHT’s revenue growth Unit in % 10.6% 9.3% 7.4% 7.2% 6.7% 6.9% 5.9% 5.7% 5.5% 5.1% 4.6% 4.3% 3.4% 3.6% 1Q2023 2Q2023 3Q2023 4Q20
Slide 14: NPAT momentum showed on-track recovery to normalized level
NPAT’s momentum showed on-track recovery to normalized level NPAT Post-MI over the quarters since 2022 Unit in VNDbn 2024E NPAT Post-MI is expected to 1,596 approach high-case guidance for FY2024, returning to normalized FY2022’s NPAT range (1) 681 (*) 981 (1) 235 701 543 503 447 915 746 213 109 104
Slide 15: Business improvements led to healthier cash flow and balance sheet
Business improvements and corporate actions have led to healthier cash flow generation and balance sheet Higher liquidity, deleveraging and reduction in non-core businesses exposure 2022 Syndicated Loan 2023 Syndicated Loan 2023 CDPS1 2024 Sales of HCS $600 million $650 million $250 million $135 mil
Slide 16: Net debt to EBITDA maintained at 3.4X
Net debt to EBITDA maintained at 3.4X, improving compared to beginning of the year due to improved business operations and deal-related activities MSN (Cash & Debt)(1) VND billion MSN Cash Flow (Capex, FCF) VND billion 4Q2023 3Q2024 LTM 3Q2023 LTM 3Q2024 8,173 69,572 65,739 6,415 2,862 16,919 16,333
Slide 17: 3Q2024 Business Segments Commentary
04 3Q2024 Business Segments Commentary 17
Slide 18: MCH's top-line growth of 10.4% YoY
MCH’s top-line growth of 10.4% YoY was the result of continued innovations and premiumization strategies MCH’s Financial performance MCH’s Profit margins Unit in VNDbn Unit in VNDbn +10.4% YoY 7,987 7,233 46.6% 47.3% 46.7% 46.3% 46.8% 26.4% 28.3% 26.0% 27.3% 25.0% +14.5% YoY +13.8% YoY 25.2% 22.8% 2
Slide 19: MCH double-digit growth in Convenience Foods, Beverages and HPC
MCH saw double-digit growth in Convenience Foods, Beverages and HPC while Seasonings maintained steady momentum to contribute lion’s share of 3Q growth Seasonings Convenience Foods Beverages Home & Personal care Coffee ▪ Revenue: VND2,849 bn in ▪ Revenue: VND2,603 bn in ▪ Revenue: VND1,274bn in ▪ Re
Slide 20: MCH's gross margin maintained at 46.8%
MCH’s gross margin maintained at 46.8% driven by better mix and price action, offset by increases in raw material and packaging costs Gross margin remained flat due to divergent movement of premiumization and innovation focus in each category 53.8% 55.4% 51.3% 46.8% 47.6% 46.6% 40.2% 41.6% 38.3% 34.
Slide 21: WCM grew revenue 9.1% YoY and achieved positive NPAT
WCM grew revenue 9.1% YoY and achieved NPAT positive full- quarter for first time since COVID-19, supported by 8.1% LFL(1) network growth Healthy top-line growth and positive NPAT margin Highlights +9.1% YoY Unit in VNDbn ▪ Net revenue increased +9.1% YoY in 3Q2024 driven by the net impact of LFL gr
Slide 22: Minimart sustained robust top-line momentum
Minimart sustained its robust top-line momentum, achieving an annual peak like-for-like growth rate at 10.2% year-over-year Revenue from Minimarts (“WMP”) Unit in VNDbn Revenue from Supermarket (“WMT”) Unit in VNDbn +14.1% YoY 6,201 -0.8% YoY 598 5,434 2,326 2,307 349 42 132 5,603 5,085 2,194 2,265
Slide 23: Double-digit LFL growth in new store formats
Double-digit LFL growth and significant jump in NPAT margin of new store formats, testament to their winning models 731 stores as of 3Q2024 1,273 stores as of 3Q2024 Target consumers: Urban Target consumers: Rural One-stop shop for daily needs, addressing 80% of consumer wallet Grocery in rural area
Slide 24: Profitability uplift in Minimart and Supermarket formats
Profitability witnessed strong uplift in both Minimart and Supermarket formats WMP LFL(2) margins WMT LFL margins +90bps YoY Unit in % YoY Unit in % YoY +120bps YoY 7.2% 6.3% +120bps YoY 5.2% 4.0% 3.6% +190bps YoY 2.4% 1.8% Store-EBITDA margin Store-EBIT margin -0.1% Store-EBITDA margin Store-EBIT m
Slide 25: NPAT of whole network recorded VND20 billion in 3Q2024
As a result, NPAT of the whole network recorded VND20 billion in 3Q2024 WCM’s network margins have improved significantly YoY, with significant NPAT improvement Unit in % 23.9% 23.9% +91bps YoY +139bps YoY +215 bps YoY 3.8% 2.9% 1.0% 0.2% -0.4% -1.9% Gross margin EBITDA margin EBIT margin NPAT Pre-M
Slide 26: MML's strategic shift to meat drives profitability improvement
MML’s strategic shift to meat is the main driver of profitability improvement MML performance Revenue by segments Unit in VNDbn +1.7% YoY Unit in in VNDbn Chick farm rationalization & 1,903 1,936 higher internal farm pig sales Meat revenue increased 13.6% YoY decreased by 28.2% +46.6% YoY +19.3% YoY
Slide 27: MML 3rd consecutive quarter of positive EBIT
MML recorded 3rd consecutive quarter of positive EBIT and 1st quarter of positive NPAT since 2023 ▪ Gross margin improved significantly as the result of Gross margin by segment margin improvement across all segments and 59.9% increased porker utilization. ▪ Farm pig not only saw an overall uplift of
Slide 28: MML improving operational efficiency in farm businesses
MML has been consistently improving operational efficiency in farm businesses and porker utilization for meat segments -7% -8% -8% 7.4% Pork farm unit Chicken farm unit Unit conversion Porker utilized for production cost production cost cost of fresh pork processed meat (vs. 3Q2023) (vs. 3Q2023) (vs
Slide 29: PLH's revenue grew ~13% YoY
PLH’s revenue grew ~13% YoY while NPAT Pre-MI improved by VND30 billion YoY in 3Q2024 Kiosk footprints rationalized to protect profitability Performance of PLH outside-WCM(1) +12.8% YoY Store count Unit in VNDbn 153 174 Unit in VNDbn 425 377 336 301 -11.3% YoY 78 69 67 62 26 (3) Revenue EBITDA Reven
Slide 30: MHT's profit impacted by Typhoon Yagi
MHT’s profit was negatively impacted by Typhoon Yagi in 3Q2024 due to low market demand MHT performance ▪ MHT saw a 3.8% YoY increase in revenue, supported by favorable market price Unit in VNDbn but offset by lower quantity sold due to lower overall demand coupled with supply chain disruption cause
Slide 31: 4Q2024 Outlook and Guidance Update
05 4Q2024 Outlook and Guidance Update 31
Slide 32: Base-case NPAT Post-MI achieved in 9M2024
Base-case NPAT Post-MI has been achieved in 9M2024, with positive momentum toward our high-case target Unit in VND billion ~130% of base-case NPAT Post-MI has been achieved 9M2024 VND 1,308 Base case High case VND 1,000 VND 2,000 32
Slide 33: 4Q2024 initiatives to approach high-case NPAT guidance
4Q2024 initiatives to enhance profitability and approach high-case’s NPAT guidance Accelerate top-line growth Enhance NPAT margin: Invest in long-term profit Enhance sales productivity: Improve earnings on the in 4Q2024: ▪ Continue LFL growth drivers: ▪ Improve SSSG with local back of higher commodi
Slide 34: Thank you!
Thank you! 34
Slide 35: 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’