Vincom Retail Jsc · HOSE:VRE

Vincom Retail Jsc — Vincom Retail Joint Stock Company — Q3 2018 Earnings Presentation

20 slides from Vincom Retail Jsc's earnings presentation, Nov 1, 2018

  1. Slide 1: Vincom Retail Joint Stock Company 3Q2018 Financial Results

    Vincom Retail Joint Stock Company 3Q2018 Financial Results 01 November 2018

  2. Slide 2: Disclaimer

    Disclaimer 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 Vincom Retail Joint Stock Company (the “Company”) and its subsidiari

  3. Slide 3: 1. Key Highlights

    1. Key Highlights

  4. Slide 4: Performance Overview – 3Q2018 and 9M2018

    Performance Overview – 3Q2018 and 9M2018 Revenue from Leasing(1) Gross Profit(2) 3Q2018: VND1,448 billion 27.9%YoY 3Q2018: VND954 billion 61.1%YoY 9M2018: VND4,091 billion 23.7%YoY 9M2018: VND2,508 billion 25.7%YoY Leasing NOI(3) EBITDA(4) 3Q2018: VND971 billion 27.1%YoY 3Q2018: VND1,042 billion 22.

  5. Slide 5: Continued Expansion of Nationwide Presence

    Continued Expansion of Nationwide Presence Portfolio in Prime Urban and High Growth Areas in Key Cities Unique Multi-Format Retail Model (Segmentation by GFA) 9 Malls launched in 3Q2018 Vincom Center Vincom Mega Mall 34 60 1.4mm No. of Malls: 5 GFA: 214,516 sqm No. of Malls: 3 GFA: 395,148 sqm Citie

  6. Slide 6: 2. Operational Update

    2. Operational Update

  7. Slide 7: 3Q2018 Operational Highlights and Updates

    3Q2018 Operational Highlights and Updates  Launched 9 new shopping malls between July and September, including Vincom Center Landmark 81, 6 Vincom Plazas, and 2 Vincom+  Ran 2 major marketing campaigns: “Vincom Center Landmark 81 Grand Opening”, attracting ~300,000 visits in the first week of open

  8. Slide 8: Vincom Mega Malls: Improved and Stabilized Occupancy due to Transformational AEIs

    Vincom Mega Malls: Improved and Stabilized Occupancy due to Transformational AEIs Vincom Mega Malls – Average Rental Rates Vincom Mega Malls – Average Occupancy Rates 13.6 90.5% 89.2% 88.4% 13.3 13.3 87.1% 12.9 12.4 81.1% 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 Asset en

  9. Slide 9: Vincom Plazas: Rapid Roll-out of Additional Malls

    Vincom Plazas: Rapid Roll-out of Additional Malls Vincom Plaza – Total Retail GFA (‘000 sqm) Number of Malls 28 30 30 35 41 North Vietnam 11 Total as of 3Q2018 Hanoi 698 4 Added since 3Q2017 626 535 559 559 2 Total as of 3Q2018 Central Vietnam 13 11 Total as of 3Q2018 Vincom Plaza malls 8 Added sinc

  10. Slide 10: Key Operational Metrics

    Key Operational Metrics Average Occupancy Retail GFA Change 9M2017 9M2018 Figure in sqm 9M2017 9M2018 Change (%) (bps) Vincom Center 91.9% 92.7% 80 Vincom Center 165,876 214,516 29.3 Vincom Mega Mall 80.7% 87.9% 720 Vincom Mega Mall 395,148 395,148 - Vincom Plaza 91.1% 87.4% (370) Vincom Plaza 540,9

  11. Slide 11: Sales and Marketing Activities

    Sales and Marketing Activities Tenant Update for 9M2018 Tenant Mix by NLA as at Sep 2018 Key Tenants Joining in 9M2018 10% 23% 20% 40% 15% 11% 13% 15% 17% 22% 13% 12% 39% 17% 19% 9% 36% 21% 26% 21% VMM VCC VCP VC+ Other Supermarket Entertainment F&B Fashion  Collaborated with VinID to offer ID – Re

  12. Slide 12: Malls Opening from 2018E – 2020E

    Malls Opening from 2018E – 2020E 20 malls 44 malls (*) To be opened in YE2018 To be opened in 2019E – 2020E GFA: 1.4 mm sqm GFA: 2.1 mm sqm Retail GFA by mall type FY2018E Retail GFA by mall type FY2020E Vincom Mega Mall Vincom Center No. of Malls: 3 Vincom Mega Mall No. of Malls: 6 Vincom Center GF

  13. Slide 13: 3. Financials and Capital Management Update

    3. Financials and Capital Management Update

  14. Slide 14: Financial Performance in 3Q 2018 vs. 3Q 2017

    Financial Performance in 3Q 2018 vs. 3Q 2017 Change Figures in VND billion 3Q 2017 3Q 2018 Commentary (%) Leasing of Investment Mainly came from 19 malls opened between 4Q 2017 and 3Q Properties and Rendering 1,132 1,448 27.9 2018. of Related Services(1) Sale of Inventory Increased significantly tha

  15. Slide 15: Financial Performance in 9M2018 vs. 9M2017

    Financial Performance in 9M2018 vs. 9M2017 Change Figures in VND billion 9M2017 9M2018 Commentary (%) Leasing of Investment Mainly came from 19 malls opened between 4Q 2017 and 3Q Properties and Rendering 3,306 4,091 23.7 2018. of Related Services(1) Sale of Inventory Increased significantly thanks

  16. Slide 16: Financial Performance – 9M2018

    Financial Performance – 9M2018 Total Revenue Gross Profit(1) VNDbn VNDbn Gross Profit Margin (%) 33.7% 41.4% 50.8% 49.9% 41.2% 6,386 6,083 5,958 24 5,518 47 264 2,508 112 2,556 951 1,992 2,642 2,801 1,995 3,995 74 8 48 8 3,267 2,007 411 689 623 45 472 (2) 607 318 4,455 2,011 2,342 2,028 3,805 4,044

  17. Slide 17: Balance Sheet

    Balance Sheet Total Assets Inventory VNDbn VNDbn 2,294 38,133 36,775 35,961 34,299 1,817 16,652 11,248 1,483 14,276 1,381 16,251 683 25,527 21,685 21,481 18,048 31-Dec-15 31-Dec-16 31-Dec-17 30-Sep-18 31-Dec-15 31-Dec-16 31-Dec-17 30-Jun-18 30-Sep-18 (1) Investment Properties and Investment Properti

  18. Slide 18: Leverage and Coverage ratios

    Leverage and Coverage ratios Net Debt(1) / (Total Assets – cash & cash equivalents(2)) Net Debt(1) / Equity 5.5% 7.2% 1.3% 1.6% 31-Dec-17 30-Sep-18 31-Dec-17 30-Sep-18 Interest Coverage Ratio(3) Total Debt / Equity Times 13.1 22.9% 7.5 10.0% 9M2017 9M2018 31-Dec-17 30-Sep-18 Note: Based on VAS Audit

  19. Slide 19: Appendix

    Appendix

  20. Slide 20: Bridging VAS to IFRS

    Bridging VAS to IFRS Unit: VND Billion Commentary on Adjustments VAS 30.9.2018 Adjustment IFRS 30.9.2018 Realised unearned revenue of deposit from Leasing revenue and other related services 4,044 70 4,115 customer in relation to amortisation of deposit Outright sales and impact of IFRS15 related to

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