Vincom Retail Jsc · HOSE:VRE
Vincom Retail Jsc — Vincom Retail Joint Stock Company — Q2 2020 Earnings Presentation
25 slides from Vincom Retail Jsc's earnings presentation, Jul 28, 2020
Slide 1: Vincom Retail 2Q2020 Performance
Vincom Retail Joint Stock Company 2Q2020 Performance 28 July 2020
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
Slide 3: 1. Key Highlights
1. Key Highlights
Slide 4: Financial Performance – 2Q2020 and 1H2020
Financial Performance – 2Q2020 and 1H2020 Pro-forma 1H2020 leasing revenue excluding Covid impact would have increased 11% YoY Revenue from Leasing Gross Profit 2Q2020: VND1,307 billion 9.8% QoQ 2Q2020: VND646 billion 14.9% QoQ 21.2% YoY 32.7% YoY 1H2020: VND2,756 billion 15.4% YoY 1H2020: VND1,405
Slide 5: Key Operational Metrics
Key Operational Metrics Retail GFA Occupancy rate Change (‘000 sqm) 1H2019 1H2020 Change (%) 1H2019 1H2020 (ppts) Vincom Center 90.0% 92.3% 2.3 Vincom Center 280 280 - Vincom Mega Mall 90.6% 87.4% 3.2 Vincom Plaza 88.6% 82.3% 6.3 (1) Vincom Mega Mall 395 388 1.8 Vincom+ 85.2% 76.2% 9.0 Total 89.2% 8
Slide 6: Tenants Recovery After Covid-19
Tenants Recovery After Covid-19 1 Footfall Phases Hanoi malls HCMC malls % effective Footfall as % % effective Footfall as % operation (1) of pre Covid (2) operation of pre Covid Phase 1: Relaxed social distancing (23 April – 8 May) 87% 60% 85% 45% Phase 2: Entertainment industry reopened (9 May – 3
Slide 7: Vincom Pham Ngoc Thach – New Shopping and Entertainment Destination in Hanoi
Vincom Pham Ngoc Thach – New Shopping and Entertainment Destination in Hanoi Revamp initiatives and results Pre and post renovation Renovation was from June 2019 to Mar 2020 Footfall growth Before After Internal and external renovation: YoY change (%) 49.0% 51.0% External renovation with golde
Slide 8: Solidified Position As Dominant Retail Platform In Vietnam
Solidified Position As Dominant Retail Platform In Vietnam Distinguished retail formats and focused on wide range of lifestyle oriented consumers Prime Urban and High Growth Areas in Key Cities Unique Multi-Format Retail Model (Segmentation by GFA) Vincom Mega Mall Vincom Center Location: In integra
Slide 9: 2. Market Update
2. Market Update
Slide 10: Vietnam Races Ahead of Its Regional Peers Amidst Covid-19
Vietnam Races Ahead of Its Regional Peers Amidst Covid-19 Vietnam Experienced The Shortest Lockdown Regionally Vietnam’s Retail Sales Grew Healthily As Compared to Its Counterparts # of weeks 2Q2020 Nominal retail sales chg, YoY % Malaysia 24 weeks 8.4% Thailand 19 weeks 0.4% Hong Kong SAR 17 weeks
Slide 11: Vietnam's Economic Outlook Remains Resilient Going Forward
Vietnam’s Economic Outlook Remains Resilient Going Forward (1) (2) Vietnam Experiences Faster Footfall Recovery amongst its Peers Retail leasing enquiry still shows positive trend during the pandemic Visit to Retail Space (% of Pre-Covid level) 100 Mobility level before Covid-19 No. of Leasing Enqui
Slide 12: Domestic Market Overview 2Q2020
Domestic Market Overview 2Q2020 Hanoi HCMC Current NLA 9.7% 5.4% 1.05m 1.00m sqm sqm 94.6% 90.3% CBD Non CBD USD/sqm/mo. USD/sqm/mo. Rent and 150.0 20% 150.0 20% vacancy rate 120.0 16% 120.0 16% 90.0 12% 90.0 12% 60.0 8% 60.0 8% Rent rate, 30.0 4% 30.0 4% Occupancy - 0% - 0% 2Q19 1Q20 2Q20 in Hanoi,
Slide 13: 3. Operational Update
3. Operational Update
Slide 14: Business Highlight 2Q2020 – Recovery Post-Pandemic
Business Highlight 2Q2020 – Recovery Post-Pandemic 2Q2020: Finished 2 June: Haidilao 5 June: UNIQLO 26 May: 2020 AGM of go-live CRM/FM opened for the first opened at VCC Events Vincom Retail phase 1 time in Hanoi at VCC Landmark 81 Pham Ngoc Thach 70% has been leased, of which all anchor tenants hav
Slide 15: Marketing Activities in 2Q2020
Marketing Activities in 2Q2020 After social distancing measures were lifted at the end of April 2020, several marketing activities were successfully launched to welcome back customers to the malls Reunification Day & Labor Day Campaign (30 Apr – 3 May) Summer Campaign 2020 (1 – 14 June 2020) Safe Sh
Slide 16: 3Q2020 Plan
3Q2020 Plan Sales 1 Large international tenants in Chain tenants in negotiation to expand Finalize key discussion and anchor tenants following chain Leading Popular Vincom Retail is in negotiation with multiple Popular home development fashion beauty fashion, F&B, entertainment chains and appliances
Slide 17: 3Q2020 Plan (cont.)
3Q2020 Plan (cont.) Marketing Red Sale 2020 2020 Mid-autumn Festival Independence Day Campaign Co-operate with Ministry of Industry and August: Prepare to launch Mid-Autumn 2 Sep: Celebrates Vietnam Independence Trade to hold “Vincom 2020 Red Sale” (4 Festival campaign with large decoration Day with
Slide 18: 4. Financial Update
4. Financial Update
Slide 19: Financial Performance in 2Q2020 vs 2Q2019
Financial Performance in 2Q2020 vs 2Q2019 Figures in VND billion 2Q2019 2Q2020 YoY (%) Commentary QoQ (%) Commentary - Issue additional VND375 billion - Slightly higher support (USD16.3m) of support package compared to 1Q Leasing of Investment for tenants - Decreased ancillary revenue, Properties an
Slide 20: Financial Performance in 1H2020 vs 1H2019
Financial Performance in 1H2020 vs 1H2019 Figures in VND billion 1H2019 1H2020 Change (%) Commentary In 1H2020 VRE issued a supporting package of VND675bn Leasing of Investment (USD29.3m) for tenants affected by Covid-19. Ancillary Properties and Rendering of 3,258 2,756 15.4 revenue from utilities
Slide 21: Financial Performance
Financial Performance (1) Total Revenue Gross Profit VNDbn VNDbn Gross Profit Margin (%) 50.8% 39.9% 47.6% 45.3% 42.4% 9,124 9,259 4,404 185 215 2,027 3,641 735 3,433 (47) 5,518 2,801 806 112 4,267 48 1,931 951 411 3,316 (39) 1,405 105 7,017 903 3,752 (84) 269 495 65 2,882 (96) 5,506 245 4,455 2,342
Slide 22: Balance Sheet
Balance Sheet Total Assets Total Borrowings, Cash and Cash Equivalents VNDbn VNDbn 5,974 38,133 38,684 38,761 35,839 10,423 4,095 4,170 10,911 7,121 3,804 16,652 3,133 2,780 2,785 2,177 27,773 28,718 28,338 21,481 (2) 31-Dec-17 31-Dec-18 31-Dec-19 (2) 30-Jun-20 31-Dec-17 31-Dec-18 31-Dec-19 30-Jun-2
Slide 23: Appendix
Appendix
Slide 24: Bridging VAS to IFRS
Bridging VAS to IFRS Unit: VND Billion VAS Adj. IFRS Commentary on Adjustments 1H2020 1H2020 Leasing revenue and other related Realized unearned revenue of deposit from customer in relation to 2,756 66 2,822 services amortization of deposit Sale of inventory properties 495 495 Other revenue 65 65 To
Slide 25: Thank You!
THANK YOU!
Vincom Retail Joint Stock Company — Q2 2020 Earnings Presentation on 6ix