VinaLand — Non-Deal Roadshow (July 2013)
26 slides from VinaLand's roadshow presentation, Jul 19, 2013
Slide 1: VinaLand Limited update
VinaLand Limited update David Blackhall – Managing Director VinaLand Shareholder meetings, 15-19 July 2013 London, Copenhagen, Zurich, Brussels, Utrecht 1
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by VinaCapital Investment Management Limited (the “Company") and is subject to updating, completion, revision, further verification and amendment without notice. The information contained herein has not been approved by any listing author
Slide 3: Contents
Contents 1. Vietnam macroeconomics 2. Vietnam real estate market 3. Strategy and update 4. Historical performance and highlights 3
Slide 4: GDP remains weak, inflation continues to trend down
GDP remains weak, inflation continues to trend down GDP growth, YTD year-on-year, % GDP remained weak in H1/13 but expected to trend up 8% • GDP growth was 4.9% for H1/13. This is below long-term trend averages in 7% the past. The slowdown in economic growth was due to weak domestic demand (high inv
Slide 5: VND stability strengthens market confidence; Interest rates trend down
VND stability strengthens market confidence; Interest rates trend down VND stability strengthens market confidence VND/USD rate, YTD Official Rate VCB Sell Free market Sell • In the FX market, supply of and demand for USD is now in balance thus VND'000 accounting for a stable exchange rate. Official
Slide 6: Economic prospects for the next 12 months
Economic prospects for the next 12 months Political situation • Continued stability. The National Assembly becoming more assertive. • First Vote of Confidence conducted on 49 top government officials in June 2013. We expect the PM to serve out his full term until 2015. Economic Policy Framework • Po
Slide 7: Select macro indicators
Select macro indicators Key Indicators 2009 2010 2011 2012 2013F 2014F GDP growth (%) 5.3 6.8 5.9 5.0 5.3 5.7 CPI (%) 6.5 11.7 18.1 6.8 6.0 7.0 Trade deficit (USD Bn) (12.2) (12.4) (9.5) 0.3 (5.0) (8.0) Exports (USD Bn) 56.6 71.6 96.3 114.6 144.2 171.0 Imports (USD Bn) 68.8 84.0 105.8 114.3 149.2 17
Slide 8: Contents
Contents 1. Vietnam macroeconomics 2. Vietnam real estate market 3. Strategy and update 4. Historical performance and highlights 8
Slide 9: Vietnam real estate market update – main sectors
Vietnam real estate market update – main sectors • Condominium sector: Affordable segment dominates – Although interest rates declined, access to borrowing for the real estate sector remains very challenging. Many developers are still facing financial shortages, leading to a decrease in completed un
Slide 10: New government policies
New government policies VAMC is officially established to resolve bad debts in the banking system • In mid May 2013, the Vietnam Government approved the establishment of VAMC with charter capital of VND500b (USD24m) after several delays. By end of May 2013, the credit growth has been merely 2.1% YTD
Slide 11: Contents
Contents 1. Vietnam macroeconomics 2. Vietnam real estate market 3. Strategy and update 4. Historical performance and highlights 11
Slide 12: 2012 Extraordinary General Meeting - Outcome
2012 Extraordinary General Meeting - Outcome An EGM was held on 21 November 2012. Shareholders supported with a two thirds majority both recommendations put forth by the Board regarding the continuation of the Company. • The Ordinary Resolution established the framework to restructure the Company in
Slide 13: Enhancement of corporate governance
Enhancement of corporate governance Post the EGM in November 2012 the VNL Board has commenced the implementation of a number of changes The total of seven Board members has now been reduced to five Initiation of new policy on re-election and appointment of Directors The first AGM will be held in Nov
Slide 14: Strategy implementation – progress with divestments
Strategy implementation – progress with divestments • Since the EGM on 21st November 2012, three projects have been divested and two additional exits are on track to close in Q3 and Q4 2013. No Project Type Current Status Conditions Precedent 1 Nguyen Du - Full exit Office • DIVESTMENT CLOSED JANUAR
Slide 15: Outgoing cash breakdown
Indicative realisation and distribution profile – Illustrative outcome Sensitivity Analysis of Cash from exits & Outgoing cash breakdown Realisation fee trigger (note 7) 250 28.2 28.2 28.2 200 25.7 Outgoing cash breakdown 20.9 Estimated realisation fee 150 15.1 126.4 135.7 120.5 Estimated distributi
Slide 16: AGM discussion – seeking feedback
AGM discussion – seeking feedback The VNL Board is proposing to convene the first Annual General Meeting in November 2013 in Europe and is seeking feedback from shareholders on the agenda items for discussion and suggested resolutions to be presented. AGM Agenda Items to include :- Presentation of t
Slide 17: Contents
Contents 1. Vietnam macroeconomics 2. Vietnam real estate market 3. Strategy and update 4. Historical performance and highlights 17
Slide 18: Fund overview
Fund overview Fund & Portfolio summary (30 June 2013) NAV $466.5 m NAV per share $0.97 Market cap $220.0 m Hanoi Shares outstanding 480,898,227 Current assets 34 8% Hanoi region Divestments 12 full, 1 partial and residential unit sales Debt level Fund: Nil Projects: 11.6% of NAV Portfolio breakdown
Slide 19: NAV vs. Share price performance
NAV vs. Share price performance 1.75 1.50 1.25 NAV 1.00 $0.97 0.75 SP 0.50 $0.46 0.25 - Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 NAV per share Share Price Since the end of 2012, VNL share price has steadily increased and the share price to NAV discount narrowed down to 52.6 percent as
Slide 20: Divestment history
Divestment history VNL projects fully divested Cost Net proceeds from exit to VNL 70 Millions 60 29% IRR 50 40 30 23% IRR 20% IRR 22% IRR 3% IRR 16% IRR 20 10% IRR 16% IRR 10 10% IRR -2% IRR -55% IRR -1% IRR 9% IRR - Hilton Hanoi Central Golden *Mandarin Bai Dong Oasis *Quoc Te Bai Dai S-Tower Legen
Slide 21: Top Investments
Top 10 Investments VNL Top 10 Investments (30 June 2013) VNL Site area % of VNL VNL NAV Investment Location Sector Current status ownership (ha) NAV (USD) 1 Century 21 South Residential 75.0% 30.1 14.2% 68.6 Planning/licensing underway 2 Danang Beach Resort Central Residential 75.0% 260.0 12.3% 59.6
Slide 22: Appendix
Appendix • Project development sites
Slide 23: Dai Phuoc Lotus site update as at July 2013
Dai Phuoc Lotus site update as at July 2013 Villas & Infrastructure completed Display Villa Recreation Club – Completion due Q3 2013 CBD Road – Completion due Q3 2013 23
Slide 24: My Gia site update as at June 2013
My Gia site update as at June 2013 Display Villa 1 Display Villa 2 and Children Playground Display Villa - Interior Phase 2.1 Infrastructure works Owners Villas under construction Owners Villas under construction 24
Slide 25: Danang Beach Resort and Golf Course & Azura site updates
Danang Beach Resort and Golf Course & Azura site updates The Ocean Villas 100% sold out The Ocean Villas Norman Estates Villas Danang Golf Course Azura 25
Slide 26: VinaCapital Group
VinaCapital Group 17th floor, Sun Wah Tower 115 Nguyen Hue, District 1, Ho Chi Minh City, Vietnam P: (84 8) 3821 9930 F: (84 8) 3821 9931 Email: ir@vinacapital.com Website: www.vinacapital.com Ho Chi Minh City Hanoi Danang Nha Trang Phnom Penh Singapore 26