No Va Land Investment Group Corp. · HOSE:NVL
No Va Land Investment — Investor Presentation (August 2020)
41 slides from No Va Land Investment's investor presentation, Aug 3, 2020
Slide 1: Investor Presentation
AVA LAND K N& INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER This document and any related presentations have been prepared by No Va Land Investment Group Corporation (“Novaland” or the “Company”) solely for use at its presentation to prospective investors and may not be taken away, reproduced or redistributed to any other person. By attending this
Slide 3: Table of Contents
TABLE OF CONTENTS I. NOVALAND GROUP II. INVESTMENT HIGHLIGHTS III. FINANCIAL HIGHLIGHTS Aqua City Project (Dong Nai) 22
Slide 4: I. Novaland Group
I. NOVALAND GROUP 33
Slide 5: The first mover and the leading, undeniable #1 residential developer in HCMC
THE FIRST MOVER AND THE LEADING, UNDENIABLE #1 RESIDENTIAL DEVELOPER IN HCMC #1 RESIDENTIAL Established in 1992 and largest real estate pure-playing listed group at the time listed on HCM Target customers in the largest DEVELOPER quartile of Vietnam’s population Stock Exchange in 2016 (HSX – NVL);
Slide 6: Development Milestones
DEVELOPMENT MILESTONES FORMATION EVOLUTION AND STRATEGIC GROWTH EXPANSION Officially listed on Ho Chi Restructured and Minh Stock Exchange with consolidated company market capitalization of into 2 Groups: US$1.2bn − ANOVA Corp.: Handed over 7 M&A and continued 2019 veterinary medicines, proj
Slide 7: Management team with intensive experiences and market understanding
MANAGEMENT TEAM WITH INTENSIVE EXPERIENCES AND MARKET UNDERSTANDING FOUNDER, CHAIRMAN AND MAJOR SHAREHOLDERS MR. BUI THANH NHON, MBA 30+ MR. BUI CAO NHAT QUAN Chairman of the Board of Directors (BOD) 15+ B.A in Business Administration, Western Washington University, USA Executive MBA, HSB-TUCK,
Slide 8: Vision, Mission and Core Values
VISION, MISSION AND CORE VALUES VISION MISSION CORE VALUES NOVALAND IS A LEADING DEVELOPING COMMUNITY EFFECTIVENESS ECONOMIC GROUP IN REAL ESTATE, FINANCE , CREATING TOURISM CREATING DESTINATION INTEGRITY DESTINATION, PROFESSIONALISM BUILDING HAPPINESS AND TRANSPORT INFRASTRUCTURE DEVELOPMENT Source
Slide 9: Strategic Road Map
STRATEGIC ROAD MAP PHASE 1 PHASE 2 PHASE 3 2007 – 2017 2018 – 2025 From 2026 Focus on developing residential products Continue focusing on central residential Develop an eco-system which focuses on: in Ho Chi Minh City with a strategy to Properties: residential with commercial real estate market i
Slide 10: Diversified Product Suite
DIVERSIFIED PRODUCT SUITE CENTRAL REAL ESTATE SATELLITE TOWNSHIP SECOND HOME PROJECTS Product suite Medium scale Grade ‘’A’’ & ‘’B’’ projects Ecological, environmental friendly and Second homes or investment properties Concept in HCMC smart technology satellite townships in desirable leisure / touri
Slide 11: Premium landbank with pronounced development potential
PREMIUM LANDBANK WITH PRONOUNCED DEVELOPMENT POTENTIAL LAND BANK & UNDER RESEARCH PREMIUM VALUE OF LANDBANK IN HCMC & DONG NAI 4,894 HECTARES ~ USD 32.86 Billion GDV ~ 30% OF TOTAL LANDBANK ~ 70% OF TOTAL GDV 45CBD Mins 66Hours Hrs Ho Chi Minh City 152 Mins Hrs 34Hours Hrs Dong Nai Mui Ne 4 Hrs 34Ho
Slide 12: Great value appreciation potential with central city landbank
GREAT VALUE APPRECIATION POTENTIAL WITH CENTRAL CITY LANDBANK BENEFITS FROM ACCESSIBLE METRO LINE TO BE OPERATED FROM THE END OF 2021 EASTERN AREA TOWARD Land bank Location Land area (m²) Estimated GDV Status (USD billion) DONG NAI PROVINCE Project C Dist. 2 1,360,000 2.7 Owned D Project D Dist. 12
Slide 13: II. Investment Highlights
II. INVESTMENT HIGHLIGHTS 1212
Slide 14: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Well positioned to benefit from Vietnam’s favorable macroeconomic fundamental and sector potential. The leading residential developer in HCMC with strong brand, established track record, and 2 focused strategy. Successful strong expansion into new markets with high quality pi
Slide 15: 01. Well positioned to benefit from Vietnam's favorable macroeconomic fundamental
INVESTMENT HIGHLIGHTS 01. WELL POSITIONED TO BENEFIT FROM VIETNAM’S FAVORABLE MACROECONOMIC FUNDAMENTAL AND SECTOR POTENTIAL. NovaWorld Phan Thiet (Binh Thuan) 1414
Slide 16: Improving macroeconomic accommodates high penetration potential
1.1 IMPROVING MACROECONOMIC ACCOMMODATES HIGH PENETRATION POTENTIAL FAST-GROWING DISPOSABLE INCOME COMPARED TO MOST ASEAN RELATIVELY STABLE VND PERFORMANCE VS. OTHER ASEAN THE FASTEST GROWING ECONOMY IN ASEAN PEERS CURRENCIES(1) GDP Growth (2019) (2018A-2029E) 7.2% 7.3% 6.5% 6.9% 6.0% 5.8% 5.0% 4.1%
Slide 17: Vietnam's residential market is poised for solid growth
1.2 VIETNAM’S RESIDENTIAL MARKET IS POISED FOR SOLID GROWTH ONE OF THE HIGHEST RATES OF URBANIZATION IN ASEAN LOWEST HOUSE OWNERSHIP RATIO (*) HCMC APARTMENT – YEARLY SALES PERFORMANCE Urbanization (share of total population living in urban areas) House owners over total population (%) 2014 2050 87%
Slide 18: 02. The leading residential developer in HCMC
II. INVESTMENT HIGHLIGHTS 02. THE LEADING RESIDENTIAL DEVELOPER IN HCMC WITH STRONG BRAND, ESTABLISHED TRACK RECORD AND FOCUSED STRATEGY Victoria Village (D.2, HCMC) 1717
Slide 19: Pure play real estate developer with focused strategy
2.1 PURE PLAY REAL ESTATE DEVELOPER WITH FOCUSED STRATEGY FOCUSED STRATEGY LAND ACQUISITIONS DEVELOPMENT & OPERATION SALES FORCE Focus on mid-end to high-end Focus on large scale projects with Project development team manages all Novaland is the unique developer residential segments at strat
Slide 20: Central real estate portfolio along HCMC's major transportation routes
2.2 CENTRAL REAL ESTATE PORTFOLIO COMPRISES OF RESIDENTIAL PROJECTS DISTRIBUTED ALONG HCMC’ S MAJOR TRANSPORTATION ROUTES NOVALAND IS ONE OF THE TOP SUPPLIERS WITH OVER 40 PROJECTS ALONG MAIN AVENUES IN THE HEART OF HCMC EASTERN AREA TOWARD GDV for completed and under DONG NAI PROVINCE development p
Slide 21: Portfolio of nearly 35 residential projects in HCMC
2.3 PORTFOLIO OF NEARLY 35 RESIDENTIAL PROJECTS IN HCMC CENTRAL REAL ESTATE IN HCMC SATELLITE URBAN DEVELOPMENT SECOND HOME PROJECTS & INTEGRATED RESORTS Source: Company information 2020
Slide 22: Current development residential projects in Ho Chi Minh City
2.4 CURRENT DEVELOPMENT RESIDENTIAL PROJECTS IN HO CHI MINH CITY WITH HIGH ASORBTION RATE THE GRAND MANHATTAN PALM MARINA CENTRAL AREA – DISTRICT 1 EASTERN AREA – DISTRICT 9 GDV (USDmn) 570 GDV (USDmn) 94 Location / NSA (sqm) Dist. 1 / 14,002 Location / NSA (sqm) Dist.9 / 90,772 High-rise Product ty
Slide 23: 03. Successful strong expansion into new markets
INVESTMENT HIGHLIGHTS 03. SUCCESSFUL STRONG EXPANSION INTO NEW MARKETS WITH HIGH QUALITY PIPELINE PROJECTS AND LANDBANK AT STRATEGIC LOCATION Aqua City (Bien Hoa, Dong Nai) 2222
Slide 24: Successfully expanded to satellite township in Dong Nai - Aqua City
3.1. SUCCESSFULLY EXPANDED TO SATELLITE TOWNSHIP IN DONG NAI - AQUA CITY Project AQUA CITY Launch date 2Q2019 Expected FIRST handover date 2023 Total launched units 1,448 Take-up rate 95% GDV (USDmn) 972 With future infrastructure to be developed including Cat Lai Bridge and Country lane 2
Slide 25: Aqua City Project Overview
AQUA CITY PROJECT OVERVIEW TAKE UP RATE: ~95% AQUA CITY RIVER PARK AQUA CITY AQUA CITY PHOENIX AQUA MARINA Launch: 2Q2020 Launch: 2Q2019 Launch: upcoming Launch: upcoming Size: 91.6 ha Size: 193 ha (TBU) (TBU) Total units: 2,056 Total units: 3,390 Size: 286 ha Size: 44 ha Intro
Slide 26: Second home projects & integrated resorts - NovaWorld Ho Tram
3.2. SECOND HOME PROJECTS & INTEGRATED RESORTS ARE STRATEGIC DEVELOPMENT TO CAPTURE VIETNAM TOURISM POTENTIAL Location Ba Ria - Vung Tau Total site area (hectares) 1,000 Villa, townhouse, Product type shophouse Launch date 2Q19 Expected handover start date 1Q22 Total launched units 1,919
Slide 27: Second home projects & integrated resorts - NovaWorld Phan Thiet
3.3. SECOND HOME PROJECTS & INTEGRATED RESORTS – NOVAWORLD PHAN THIET Location Phan Thiet – Binh Thuan Total site area (hectares) 986 Product type Villa, shophouse, retail Launch date 2Q19 Expected handover start date 1Q22 Total launched units 3,967 Tourism in Phan Thiet will be further
Slide 28: 04. Robust corporate governance and well-developed corporate structure
INVESTMENT HIGHLIGHTS 04. ROBUST CORPORATE GOVERNANCE AND WELL- DEVELOPED CORPORATE STRUCTURE TOWARDS SUSTAINABLE GROWTH The Grand Manhattan(D.1, HCMC) 11 2727
Slide 29: Well-established corporate governance practices
4.1 WELL-ESTABLISHED CORPORATE GOVERNANCE PRACTICES ORGANIZATION STRUCTURE CORPORATE PRINCIPLES 1. Ensuring the rights of shareholders Shareholders’ General Meeting 2. Equitable treatment of shareholders under any circumstances Board of Directors 3. Role of stakeholders in order to create prestige f
Slide 30: Novaland's approach towards sustainable development
4.2 NOVALAND’S APPROACH TOWARDS SUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT STRATEGY AND MANAGEMENT SUSTAINABLE DEVELOPMENT STRATEGIC DIRECTIONS OF 2019-2023 1 2 3 Further implementation of its development strategy in phase 2, focusing on key businesses, namely real estate projects in the middle
Slide 31: Environment, Social, and Governance (ESG) framework
4.3 ENVIRONMENT, SOCIAL, AND GOVERNANCE (ESG) FRAMEWORK ENVIRONMENTAL SUSTAINABLE DEVELOPMENT COUNCIL (“SDC”) During project implementation, Novaland applies a variety of Electricity consumption 2019 measures for natural resource uses and environmental (million kwh) MR. PHAM PHU NGOC TRAI protecti
Slide 32: 05. Best-in-class sales forces, quick turnover development process
INVESTMENT HIGHLIGHTS 05. BEST-IN-CLASS SALES FORCES, QUICK TURNOVER DEVELOPMENT PROCESS ACCOMMODATE STRONG CASH FLOW GENERATION Aqua City Project (Dong Nai) 3131
Slide 33: Accelerated payments by customers support strong cashflow generation
4.1 ACCELERATED PAYMENTS BY CUSTOMERS SUPPORT STRONG CASHFLOW GENERATION PAYMENT SCHEDULES ACCELERATED – HIGHER UPFRONT PAYMENTS WITH DISCOUNT Standard Option 2 Option 3 Option 4 FOUNDATION Up to 30% 45-55% 50-90% >90% SUPERSTRUCTURE Up to 70% Up to 70% – – DELIVERY Up to 95% LAND USE RIGHTS CERTIFI
Slide 34: Best-in-class sales forces, quick turnover development process
4.2 BEST-IN-CLASS SALES FORCES, QUICK TURNOVER DEVELOPMENT PROCESS ACCOMMODATE HEALTHY CASH FLOW FAST TURNOVER DEVELOPMENT PROCESS MONTHS 1 2 3 4 5 6 7 8 9 10 11 12 24-30 30~ Dedicated acquisition team that proactively searches for project sites in prime locations that costs lower than market LAND
Slide 35: III. Financial Highlights
III. FINANCIAL HIGHLIGHTS 3434
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS NET REVENUE, VND billion GROSS PROFIT, VND billion CAGR 2016 – 2019: 14% CAGR 2016 – 2019: 26% 22% 28% 34% 29% 33% 27% 35% 15,290 14,877 5,158 11,632 4,857 10,931 8,044 3,257 3,153 7,359 4,165(*) 2,163 1,583 583 1,664 2016 2017 2018 2019 2020F 1H2019 1H2020 2016 2017 2018 2019 2
Slide 37: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT TOTAL ASSETS, VND billion INVENTORIES, VND billion CAGR 2016 – 2019: 35% CAGR 2016 – 2019: 54% 98,780 59,188 Long-term Asset 57,206 89,979 Others 5,807 5,972 Short-term Asset 22,109 Landbank 69,122 18,784 19,041 31,123 48,619 8,274 25,471 53,381 36,527 12,026 51,234 71,195 76,
Slide 38: Key Credit Metrics
KEY CREDIT METRICS PROFITABILITY RATIO REMAINED HIGH, % FINANCIAL LEVERAGE RATIOS COMPLY WITH INTERNATIONAL PRACTICE, times Net profit margin Gross profit margin Total debt/Total assets Total debt/Equity Net debt/Equity 1.55 1.41 1.40 1.41 1.34 71 36 1.31 34 28 29 1.15 22 1.01 0.85 0.89 31 23 21 14
Slide 39: Presales performance in 1H2020
PRESALES PERFORMANCE IN 1H2020 Unbilled contractual value recorded a 14% Q-o-Q increase during the period from March 2020 to June 2020, with strong presales from Aqua City and other residential projects. SOLID PRESALES IN 1H2020 MOSTLY FROM AQUA CITY WITH AVERAGE TAKE-UP RATE ~ 95% STRONG UNBILLED B
Slide 40: Project pipelines and handover target in 2020
PROJECT PINELINES AND HANDOVER TARGET IN 2020 TARGET HANDOVER PROJECTS IN 2020 PROJECT PIPELINE PROJECT NAME LOCATION Project P District 2 Project T District 9 Other second home & integrated Binh Thuan, Ba Ria – Vung resort projects Tau NOVAWORLD HO TRAM Note: Approved by the GMS at 2020 AGM (June 0
Slide 41: Thank You
THANK YOU NOVALAND GROUP 65 Nguyen Du Street, Ben Nghe Ward, District 1, HCMC, Vietnam Tel. : +84 906 35 38 38 Email : ir@novaland.com.vn Website : www.novaland.com.vn
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