Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Vingroup — Investor Presentation (April 2023)
49 slides from Vingroup Joint Stock's investor presentation, Apr 7, 2023
Slide 1: Vingroup Corporate Presentation
VINGROUP Corporate Presentation April 2023 VinFast Electric Vehicle – VF 8
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
VinUniversity – Vinhomes Ocean Park (Hanoi) Table of Contents 1 About Vingroup 2 Key Competitive 3 Macroeconomic 4 2023 Outlook 5 Financial Advantages Update Highlights
Slide 4: About Vingroup
About Vingroup Vinhomes Central Park – Ho Chi Minh City
Slide 5: Vingroup Is an Essential Part of the Vietnamese Economy with Comprehensive Ecosystem
5 Vingroup Is an Essential Part of the Vietnamese Economy with Comprehensive Ecosystem of Dominant Businesses Addressing All Consumer Needs 6% 17% USD 21.2bn 1.1% Green Mobility, Sustainable Energy Real Estate Development & Smart City Solutions 1 VinFast comprehensive suite of fully electric cars, e
Slide 6: Track Record of Developing New Businesses Into Market Leaders
6 Track Record of Developing New Businesses Into Market Leaders Total Assets (USD billion) 2 USD 5.5 billion 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
Slide 7: Corporate Structure
7 Corporate Structure USD 8.9 billion1 INDUSTRIALS & REAL ESTATE SOCIAL TECHNOLOGY2 & SERVICES ENTERPRISES3 USD 9.5 billion1 Healthcare and 51.5% Green Mobility 69.3% Real Estate Development 75.0%-100.0% Education USD 2.8 billion1 Battery Cell Technology 51.0% 60.3% Retail Mall 100.0% Development an
Slide 8: Proven Track Record of Developing Vietnamese Brands of Scale
8 Proven Track Record of Developing Vietnamese Brands of Scale Most Loved and Respected Brands Vietnam Listed Company Awards 2022 Best Designs ● Best Annual Report – Top 10 Large-cap Companies Category Forbes 2022 Asia Pacific Property Awards Asia Pacific Enterprise Awards 2022 ● Top 10 coolest cars
Slide 9: Vingroup and The Founders' Efforts “For a Better Life of People”
9 Vingroup and The Founders' Efforts “For a Better Life of People” Not-for-profit healthcare system An incubator of talents, high-quality The university of excellence. invested & developed by Vingroup. K-12 education system nurtures Aspires to develop talents for the Dedicated to an academic healthc
Slide 10: 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 11: 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries VinUniversity – Vinhomes Ocean Park (Hanoi)
Slide 12: Strong Macro Tailwinds
12 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 2022 2022E-2027E CAGR
Slide 13: Comprehensive Mobility Ecosystem with Strategic Focus on High Growth Segments
13 1 Comprehensive Mobility Ecosystem with Strategic Focus on High Growth Segments VinFast’s Planned Vehicle Lineup Targets the …With Features and a Price Point that Target Both ICE and EV Markets Highest Growth Passenger Vehicle Markets1… No. of Vehicle Deliveries in VinFast Focus Markets Annual Pa
Slide 14: Consumer Spending to Grow Across Vingroup’s Key Consumer Segments
14 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 An
Slide 15: Experiencing Favorable Geopolitical Shifts
15 1 Experiencing Favorable Geopolitical Shifts • Beneficiary of global supply chain disruption due Substantial total investment as % of GDP Stable FDI flow to geopolitical shifts (2023 forecasted) Total disbursed FDI (USD billion) • Supportive government policies and robust infrastructure investmen
Slide 16: 2. Unparalleled Execution Capabilities In New Business Sectors
2. Unparalleled Execution Capabilities In New Business Sectors VinFast shipped the first batch of 999 electric vehicles (VF 8) to the United States
Slide 17: The VinFast Journey – Premium Auto Manufacturer Focused on Launching EVs Globally
17 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 18: Highly-Automated and Integrated Manufacturing Facilities
18 2 Highly-Automated and Integrated Manufacturing Facilities On-site Integrated Supplier Park System in Vietnam Helps Lower Sourcing and Inventory Costs of Key Components Local Sourcing Select On-site Global Tier 1 Partners Key Benefits Axle, Chassis Overheads, Logistical economies of scale Sun Vis
Slide 19: Access to Extensive Network of Global Technologies
19 2 Access to Extensive Network of Global Technologies Development Capabilities Strengthened by Shared Expertise of Vingroup and Global Partners Key battery partner providing battery packs for VinFast vehicles Technology Ecosystem > 1,100 engineers > 800 R&D Professionals USD 8.2 billion Leading In
Slide 20: 3. Dominant Integrated Real Estate Developer, Owner and Operator
3. Dominant Integrated Real Estate Developer, Owner and Operator VINHOMES OCEAN PARK VINHOMES OCEAN PARK 22 VINHOMES OCEAN PARK 31 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 known as Vinhomes Dr
Slide 21: Dominant Integrated Real Estate Developer, Owner and Operator
21 3 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 ENTERTAIN
Slide 22: Vinhomes – The Leading Residential Platform
22 3 Vinhomes – The Leading Residential Platform with Superior End-to-end Value Chain and Diversified Product Offerings • Ability and track record in securing the best land bank in Vietnam Land Vinhomes’ Diversification Across 3 Segments to Increase Recurring • Continuously search for and acquired n
Slide 23: Vincom Retail – Vietnam’s Largest Retail Properties Developer & Operator
23 3 Vincom Retail – Vietnam’s Largest & Fastest Growing Retail Properties Developer & Operator Hanoi – 12 Outstanding Indicators with Unique Multi Format Model 5 Vincom Centers 4 Vincom Mega Malls 3 Vincom Plazas Northern Vietnam 44 Provinces/cities (except Hanoi) – 19 • 16 Vincom Plazas • 3 Vincom
Slide 24: Vinpearl – The Leading Integrated Hospitality Platform
24 3 Vinpearl – The Leading Integrated Hospitality Platform with Lodging and Entertainment Portfolio at Vietnam’s Most Coveted Locations Integrated lodging and entertainment portfolio targets customers across DA NANG & QUANG NAM Rooms 2,625 all segments: Affluent/silver hair, Business travelers, Fam
Slide 25: 4. Largest Ecosystem in Vietnam with Market Leadership Across Multiple Businesses
4. Largest Ecosystem in Vietnam with Market Leadership Across Multiple Businesses Vinhomes Ocean Park – Hanoi
Slide 26: Largest ecosystem in Vietnam with market leadership across multiple businesses
26 4 11AM Largest ecosystem in Vietnam Book hotel/ Entertainment services with market leadership across multiple businesses 9AM 1PM • The only company in Vietnam with extensive University Health check-up presence across the consumer ecosystem • Leadership position across multiple consumer sectors de
Slide 27: Leveraging Data Analytics for Deep Behavioral Understanding
27 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 28: 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 VinFast Electric Vehicle – Model VF 5, VF 6, VF 7, VF 8 and VF 9
Slide 29: Demonstrated Speed to Market and Ability to Execute
29 5 Demonstrated Speed to Market and Ability to Execute: Making the Impossible(s) Possible Challenge #1 In-Production Platforms by Year (# of vehicles) Build a world-class automotive OEM in Vietnam Electric Vehicles E-Buses 6 Challenge #2 ICE Vehicles 3 1 1 E-motorcycles 1 Achieve #1 market share i
Slide 30: Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs
30 5 Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs Vin-brands being a household name across sectors… VF 5, VF 6, VF 7 The most livable Leisure Development “A Rising Star” Award projects in Vietnam in the Asia Pacific The 10 Coolest Cars Paris Motor Show 2022 From
Slide 31: 6. Prudent Financial Policies And Strong Financial Position
6. Prudent Financial Policies And Strong Financial Position TechnoPark Tower – Vinhomes Ocean Park (Hanoi)
Slide 32: Prudent Financial Policies and Strong Financial Position
32 6 Prudent Financial Policies and Strong Financial Position Liquidity management • Minimum cash balance of USD 700 million or above to avoid liquidity risk. As at 31 December 2022, Vingroup’s cash balance was USD 1.3 billion1 • Only Vietnamese issuer with access to multiple sources of capital, inc
Slide 33: Global Reputation and Good Execution Helped Attract Top-Tier International Investors
33 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 34: Visionary Management with Proven Track Record
34 6 Visionary Management with Proven Track Record and An Average 29+ 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. Stuart Ian Taylor Mr. Pham Thieu Hoa Ms. Le Thuy Anh Managing Director and Global CEO Deputy CEO, Smart Services Chairman Chief Executive Officer • 23+ yrs experience •
Slide 36: Macroeconomic Update
Macroeconomic Update VinFast electric vehicle – VF 8
Slide 37: Vietnam Led Growth Among Major SEA Economies in 2022
37 Vietnam Led Growth Among Major SEA Economis in 2022 with Low Inflation and Relative Currency Resilience Allowing More Flexible Monetary Policies in 2023 • Strong GDP growth: 8.02% YoY (FY2022) – highest growth in ASEAN and since 1997 • Low inflation and currency fluctuation allow more flexible mo
Slide 38: 2023 Outlook
2023 Outlook VinFast electric vehicle – VF 8
Slide 39: 2023 Outlook (1)
39 39 2023 Outlook (1) • Accelerate EV sales and product delivery of VF 8 and VF 9 in the • Scale vehicle production to ensure timely delivery to customers who Industrials and Technology U.S., and implement global marketing campaign by opening more placed orders in 2022 and for upcoming production o
Slide 40: 2023 Outlook (2)
40 40 2023 Outlook (2) Real Estate and Services • 2023 revenue prospects secured thanks to elevated • Expected extended recovery in both rental • Further recovery in business operation to pre- unbilled bookings at VND 111 trillion as of December rate and occupancy, driven by rental pandemic level, w
Slide 41: 2023 Outlook (3)
41 2023 Outlook (3) Social Enterprises • Operational improvement and enhanced efficiency • Vinschool to continue its pioneering and • Continue promoting international expected across all hospitals. Sharpen core leading role in innovation in general education partnerships, exchange programs, build cl
Slide 42: Financial Highlights
Financial Highlights VinBus depot complex at Vinhomes Smart City (Hanoi)
Slide 43: Income Statement Highlights
43 Income Statement Highlights Revenue1 Gross Profit1 EBITDA1, 3, 4 Profit Before Tax VND billion VND billion VND billion 36.2% 26.5% 31.3% 27.9% 39.5% 29.6% 32.0% 37.2% CAGR 8.7% CAGR 6.5% 22 vs. 21: +4.0x 22 vs. 21: +1.7% 22 vs. 21: +18.2% 81.6% pre-pandemic level 132,950 40,270 128,665 130,818 2
Slide 44: Revenue Performance by Business
44 Revenue Performance – The Majority of Businesses Exceeded Pre-Pandemic Level While Industrial Stayed Strong During Transition Year Property sales1, 1.2x pre-pandemic level Leasing, 1.1x pre-pandemic level Hospitality & Entertainment Services2, 75.9% pre- pandemic level VND billion VND billion VND
Slide 45: Gross Profit and Margin – VAS
45 Gross Profit and Margin – VAS Property sales1, 1.4x pre-pandemic level Leasing, 1.2x pre-pandemic level Hospitality & Entertainment Services2, 3 VND billion VND billion VND billion 54.0% 45.3% 63.9% 61.3% 53.8% 49.0% 45.6% 55.4% 7,000 39.3% -3.5% 2.3% 28.4% CAGR: 5.1% 5,000 CAGR: 11.5% 22 vs. 21:
Slide 46: Balance Sheet Highlights (1)
46 Balance Sheet Highlights (1) Debt1, 2, 3/ EBITDA4 Total Assets & Total Equity6 Breakdown of Total Assets x VND billion % 8.7% 8.1% 7.9% 9.6% Increase due to USD 625 million 43% exchangeable bonds 25% 3.5x 577,407 3.2x VND577.4 trillon 3.0x 3.0x 2.8x 2.5x 423,341 428,384 2.4x 401,156 8% 2.3x 11% 3
Slide 47: Balance Sheet Highlights (2)
47 Balance Sheet Highlights (2) Total Debt Breakdown By Type Total Debt Breakdown By Currency Total Debt Breakdown By Interest Rate % International % % 2 Fixed bond Domestic bond 40.1% 14.6% 23.3% 1 VND 57.8% USD Bank loans 42.1% VND177.9 19.0% VND177.9 VND177.9 Other 5.0% trillion trillion trillion
Slide 48: Leverage, Coverage and Other Ratios
48 Leverage, Coverage and Other Ratios FY2022 9M2022 Change (LTM/9M2022) FY2021 Change (YoY) Leverage ratios Net debt1, 2 / EBITDA 2.8x 3.2x (0.4)x 2.4x 0.4x Net debt1, 2 / (Total assets – cash & ST 25.4% 28.2% (280) bps 24.7% 70 bps investments2) Coverage ratios Recurring revenue / Interest expense
Slide 49: Company Information
49 Company Information Vingroup Joint Stock Company (“Vingroup”), Vinhomes Joint Stock Company (“Vinhomes”), and Vincom Retail Joint Stock Company ‘s OFFICES combined market capitalization: USD 21.2 billion as at 31 March 2023. HANOI HEADQUARTERS Vingroup today bases its strategy on the principles o