Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (November 2022)
47 slides from Vingroup Joint Stock's investor presentation, November 2022
Slide 1: VINGROUP Corporate Presentation
VINGROUP Corporate Presentation November 2022
Slide 2: Important Notice
2 Important Notice 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 Vingroup Joint Stock Company (the “Company”) and its subsidi
Slide 3: Table of Contents
Table of Contents 1 About Vingroup 2 Key Competitive Advantages 3 Macroeconomic Update 4 4Q2022 and 2023 Outlook 5 Financial Highlights
Slide 4: About Vingroup
About Vingroup
Slide 5: Unique and Dominant, Comprehensive Live-Work-Play Ecosystem
5 Unique and Dominant, Comprehensive Live-Work-Play Ecosystem #1 #1 Vingroup businesses are categorized into Mobility, Sustainable Energy Real Estate Development & Smart City Solutions three pillars: VinFast cars and e-motorcycles designed and manufactured to international standards. #1 Real estate
Slide 6: The Largest Conglomerate in Vietnam, Asia's Next Tiger Economy
6 The Largest Conglomerate in Vietnam, Asia’s Next Tiger Economy 1.5% Nationwide operations of nominal GDP1 in all provinces and municipalities contributed by consolidated revenue of Vingroup companies in 2021 US$20.6bn 51,200 employees combined market cap2 Largest private Vietnamese corporate emplo
Slide 7: Track Record of Developing New Businesses Into Market Leaders
7 Track Record of Developing New Businesses Into Market Leaders Total Assets (USDbn) 2 USD 5.6bn raised through equity transactions in the last 4 years1 • 1993 – Technocom was set up • 2000 – Technocom-Vingroup returned to Vietnam Sector Core Businesses Position • 2001 – Vinpearl Launch • 2002 – Vin
Slide 8: Corporate Structure
8 Corporate Structure USD 8.7bn1 INDUSTRIALS & REAL ESTATE SOCIAL TECHNOLOGY2 & SERVICES ENTERPRISES3 USD 9.2bn1 Healthcare and 51.5% Mobility 69.3% Real Estate Development 75.0%-100.0% Education USD 2.6bn1 Battery Cell Technology 51.0% 60.3% Retail Mall 100.0% Development and Manufacturing VinBus H
Slide 9: Key Competitive Advantages
Key Competitive Advantages 1 Favourable Macro-Economics in Vietnam and Across All Consumer Industries 2 Unparalleled Execution Capabilities in New Business Sectors 3 Dominant Integrated Real Estate Developer, Owner and Operator 4 Largest Ecosystem in Vietnam with Market Leadership Across Multiple Bu
Slide 10: 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
Slide 11: Strong Macro Tailwinds
1 Strong Macro Tailwinds Fastest Growing Economy Fastest Growing Middle-Income One of the Highest Private Consumption in Southeast Asia Segment in SEA in Southeast Asia Real GDP growth 2022E -2024E CAGR (%) Middle income population growth1 Private consumption as % of GDP in 2021 2021A-2026E CAGR (%)
Slide 12: Comprehensive Mobility Ecosystem with Strategic Focus on High Growth Segments
12 1 Comprehensive Mobility Ecosystem with Strategic Focus on High Growth Segments VinFast’s Planned Vehicle Lineup Targets the Highest Growth …With Features and a Price Point that Target Both ICE and Passenger Vehicle Markets1… EV Markets Annual Passenger Vehicle Shipments across VinFast Focus Mark
Slide 13: Consumer Spending to Grow Across Vingroup's Key Consumer Segments
1 Consumer Spending to Grow Across Vingroup’s Key Consumer Segments Healthcare - Increasing Household Education - Increasing Household Tourism - Domestic And International Healthcare Expenditure from Aging Education Spending as More Families Can Number of Trips Increasing at A Rapid Population And R
Slide 14: Experiencing Favorable Geopolitical Shifts
14 1 Experiencing Favorable Geopolitical Shifts • Beneficiary of global supply chain disruption Substantial total investment as % of GDP Stable FDI flow due to geopolitical shifts (2021 Actual) Total disbursed FDI (USD bn) • Supportive government policies and robust infrastructure investment 35 • St
Slide 15: 2. Unparalleled Execution Capabilities In New Business Sectors
2. Unparalleled Execution Capabilities In New Business Sectors
Slide 16: Our Track Record of Making the Impossible(s) Possible – Premium Auto Manufacturer
16 2 Our Track Record of Making the Impossible(s) Possible – Premium Auto Manufacturer Focused on Launching EVs into the Global Market The VinFast Journey – Building a Future of Electrification PHASE 1 PHASE 2 PHASE 3 Foundation (2017 – 2019) Acceleration (2020 – 2021) Go Global (2022+) Establishmen
Slide 17: Highly-Automated and Integrated Manufacturing Facilities
17 2 Highly-Automated and Integrated Manufacturing Facilities On-site Integrated Supplier Park System in Vietnam to Lower Sourcing and Inventory Costs of Key Components Local Sourcing Select On-site Suppliers Key Benefits Reliable and cost-effective collaboration Overheads, with tier-1 global partne
Slide 18: Development Capabilities Underpinned by Shared Expertise of Vingroup and Global Partners
18 2 Development Capabilities Underpinned by Shared Expertise of Vingroup and Global Partners Innovation-Driven, Technology-Centric Coupled with Key Advantages of “Technology for Life” Platform Leverage competitive advantage of partners Technology Ecosystem > 1,000 engineers Enjoy greater margin > 8
Slide 19: 3. Dominant Integrated Real Estate Developer, Owner and Operator
3. Dominant Integrated Real Estate Developer, Owner and Operator VINHOMES OCEAN PARK 2 VINHOMES OCEAN PARK VINHOMES OCEAN PARK 3 THE EMPIRE2 THE CROWN1 THE 1,200-HA “OCEAN DISTRICT” OF HANOI'S EASTERN RESIDENTIAL MARKET Note: 1. Formerly known as Vinhomes Dai An during development phase. 2. Formerly
Slide 20: Dominant Integrated Real Estate Developer, Owner and Operator
20 Dominant Integrated Real Estate Developer, Owner and Operator Unrivalled nation-wide land bank to support Vingroup’ s growth and sustainability couples with well-diversified coverage of real estate segments across Vietnam RESIDENTIAL, OFFICE HOSPITALITY AND AND INDUSTRIAL RETAIL MALLS ENTERTAINME
Slide 21: Vinhomes – The Leading Residential Platform
21 Vinhomes – The Leading Residential Platform Vinhomes’ Superior End-to-end Value Chain Additional Pillar of Vinhomes’ Medium Term Strategy to Diversify and Increase Recurring Revenue and Provide More Avenues for Capital Recycling Land Diversification Across the 3 Segments • Access to industrial pa
Slide 22: Vincom Retail – Largest & Fastest Growing Retail Properties Developer
3 Vincom Retail – The Largest & Fastest Growing Retail Properties Developer & Operator in Vietnam Hanoi – 12 Outstanding Indicators 5 Vincom Centers 4 Vincom Mega Malls 3 Vincom Plazas Northern Vietnam 44 Provinces/cities (except Hanoi) – 19 • 16 Vincom Plazas • 3 Vincom+ 83 Malls under operation Ce
Slide 23: Vinpearl – Leading Integrated Hospitality and Entertainment Platform
3 Vinpearl – The Leading Integrated Hospitality and Entertainment Platform with Hospitality Portfolio at Vietnam’s Most Coveted Locations Integrated Lodging and Entertainment Portfolio of 5+ Star Brands DA NANG & QUANG NAM Lang Son Quang Ninh Rooms 2,625 Facilities 72 Hai Phong Group of Ha Nam Afflu
Slide 24: 4. Largest Ecosystem in Vietnam with Market Leadership Across Multiple Businesses
4. Largest Ecosystem in Vietnam with Market Leadership Across Multiple Businesses
Slide 25: Leveraging Data Analytics for Deep Behavioral Understanding
25 4 Leveraging Data Analytics for Deep Behavioral Understanding and Continual Improvement of Platform Offerings Data CONSUMER DATA Analytics CONSUMER PREFERENCES CONSUMER DATA Personalized Services & Products Smart Solutions Customer Product Touchpoints Enhancements & Superior ecosystem experience
Slide 26: 5. Proven Track Record of Developing Vietnamese Brands of Scale
5. Proven Track Record of Developing Vietnamese Brands of Scale, Demonstrated Speed to Market and Ability to Execute
Slide 27: Proven Track Record of Developing Vietnamese Brands of Scale
27 5 Proven Track Record of Developing Vietnamese Brands of Scale Most Loved and Respected Brands Best Designs Vietnam Report 2021 International Property Awards ● Top 5 Largest Enterprises in Vietnam ● The Most Intelligent District – IBcon Digie Awards (2021) – Techno Park ● The Largest Non-state-ow
Slide 28: Demonstrated Speed to Market and Ability to Execute
28 5 Demonstrated Speed to Market and Ability to Execute Proven Leading Technology and Engineering Through Rapid Product Deployment 21 months 18 months 24 months from inception to to reach a leading Expected to roll out 6 EV SUV Models start of production position in Vietnam1 across A to E segments
Slide 29: Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs
29 5 Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs Vin-brands being a household name across sectors… Vinhomes – VinFast Vingroup Vinpearl Vincom Retail VF 5, VF 6, VF 7 Top 2 local brand Top 10 Brand The 10 Coolest Cars From Best of the Best and Travelers’ Nielsen
Slide 30: 6. Prudent Financial Policies And Strong Financial Position
6. Prudent Financial Policies And Strong Financial Position
Slide 31: Prudent Financial Policies and Strong Financial Position
31 6 Prudent Financial Policies and Strong Financial Position Liquidity • Minimum cash balance of US$700m or above to avoid liquidity risk management • Only Vietnamese issuer with access to multiple sources of capital, including domestic and international banks, domestic bond market, as well as inte
Slide 32: Global Reputation and Good Execution Helped Attract Top-Tier International Investors
32 6 Global Reputation and Good Execution Helped Attract Top-Tier International Investors Sovereign Wealth Funds Equity Capital Markets Banking Public Partners Markets Strategic Partners & Joint Ventures Convertible / Exchangeable Bond Markets Private Internal International Debt Capital Markets Priv
Slide 33: Support from Leading International Financial Institutions for VinFast's International Expansions
33 6 Support from Leading International Financial Institutions for VinFast's International Expansions Exchangeable Bond Vingroup successfully issued USD 625mn of bonds that 625 include an option to exchange into VinFast shares following an international listing to reputable international sovereign w
Slide 34: Visionary Management with Proven Track Record and An Average 28+ Years of Experience
34 6 Visionary Management with Proven Track Record and An Average 28+ Years of Experience Board of Directors Mr. Pham Nhat Vuong • Holds a Bachelors Degree in Geological Economic Engineering, graduated from Moscow Geology University in Russia Chairman of the Board of Directors • Long track record as
Slide 35: Committed to International Corporate Standards
35 6 Committed to International Corporate Standards 1. Seasoned Management Teams for Every Business Segment Ms. Le Thi Thu Thuy Mr. Huy Chieu Mr. Pham Thieu Hoa Ms. Le Thuy Anh Chief Executive Officer Executive Director, Vehicle Programs Chairman Chief Executive Officer • 26+ yrs experience • 20+ yr
Slide 36: Macroeconomic Update
Macroeconomic Update
Slide 37: Sustained Recovery in Economic Activities in Response to Government's Socio-Economic Measures
37 Sustained Recovery in Economic Activities in Response to Government’s Socio-Economic Measures • Strong GDP growth: 13.7% YoY (3Q 2022) and 8.8% YoY (9M 2022) – highest 9M growth in • 10M2022 FDI disbursement reached c. USD 17.5 bn (+15.2% YoY), highest 10M spent in the past decade. Full year 2022
Slide 38: 4Q2022 and 2023 Outlook
4Q2022 and 2023 Outlook
Slide 39: 4Q2022 and 2023 Outlook
39 4Q2022 and 2023 Outlook Industrials and Technology • Commence overseas deliveries of VF 8 (to the U.S. market). Begin production of new electric models: VF 5, VF 6 and VF 7 in 2023. Accelerate and/or commence deliveries globally of VF 8 and VF 9 • Roll out showroom in Vietnam, the U.S., Canada, a
Slide 40: 4. Financial Highlights
4. Financial Highlights
Slide 41: Income Statement Highlights
41 Income Statement Highlights Revenue1 Gross Profit1 EBITDA1, 3, 4 Profit Before Tax VND bn VND bn VND bn 36.2% 26.5% 31.3% 31.2% 29.7% 39.5% 29.6% 32.0% 37.6% 43.6% 41,125 40,222 39,331 132,950 40,270 38,376 128,665 5,252 36,819 35,204 33,993 3,315 101,843 28,250 1,928 90,408 88,018 1,559 84,888 2
Slide 42: Revenue Performance – VAS
42 Revenue Performance – VAS Property sales1 Leasing Hospitality & Entertainment Services2 VND bn VND bn VND bn 7,789 99,058 84,888 6,792 6,662 69,035 5,368 5,518 4,946 58,087 53,544 4,355 3,804 2,205 1,730 2019 2020 2021 9M2021 9M2022 2019 2020 2021 9M2021 9M2022 2019 2020 2021 9M2021 9M2022 Health
Slide 43: Gross Profit and Margin – VAS
43 Gross Profit and Margin – VAS Property sales1 Leasing Hospitality & Entertainment Services2, 3 VND bn VND bn VND bn 54.0% 45.3% 63.9% 64.6% 65.2% 53.8% 49.0% 45.6% 51.8% 53.9% 39.3% -3.5% 2.3% 12.4% 37.7% 7,000 54,222 5,000 3,064 44,828 3,000 1,867 37,255 37,501 34,929 3,654 3,267 2,972 1,304 (13
Slide 44: Balance Sheet Highlights
44 Balance Sheet Highlights Debt1, 2, 3/ EBITDA4 Total Assets & Total Equity6 Breakdown of Total Assets x VND bn % 8.7% 8.1% 7.9% 8.8% 555,571 41% Increase due to USD 625mn 3.8x 23% exchangeable bonds 3.5x 3.2x 3.2x VND555.6tn 3.0x 3.0x 423,341 428,384 401,156 8% 2.5x 2.4x 2.3x 14% 10% 4% 136,365 15
Slide 45: Balance Sheet Highlights
45 Balance Sheet Highlights Total Debt Breakdown By Type Total Debt Breakdown By Currency Total Debt Breakdown By Interest Rate % % % 2 International Fixed Domestic bond bond 40.6% 28.6% 14.5% VND 1 63.0% USD Bank loans 36.9% VND182.5tn VND182.5tn Other VND182.5tn 15.8% 7.3% Exchangeable bond EUR Fl
Slide 46: Leverage, Coverage and other Ratios
46 Leverage, Coverage and other Ratios LTM2022 FY2021 Change Leverage ratios Net debt1, 2 / EBITDA 3.2x 2.4x 0.8x Net debt1, 2 / (Total assets – cash & ST investments2) 28.2% 24.7% 350 bps Coverage ratios Recurring revenue / Interest expense3 4.5x 4.3x 0.2x EBITDA / Interest expense3 4.5x 4.0x 0.5x
Slide 47: Company Information
47 Company Information Vingroup Joint Stock Company (“Vingroup” or “the Group”): market capitalization of c.USD8.7 billion as at 30 September 2022. OFFICES Vingroup today bases its strategy on the principles of sustainability and professional management to operate in three major business HANOI HEADQ
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