Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (May 2017)
44 slides from Vingroup Joint Stock's investor presentation, May 2017
Slide 1: Vingroup Joint Stock Company Corporate Presentation May 2017
VINGROUP JOINT STOCK COMPANY Corporate Presentation May 2017
Slide 2: Contents
Contents A. Vietnam Macroeconomic Updates 3–8 B. Vingroup Overview 9 – 15 C. Leading Real Estate Developer and Operator 16 – 21 D. Dominant Modern Retail Player across all Formats 22 – 26 E. Financial Overview – VAS 27 – 33 F. Financial Overview – IFRS 34 – 40 G. Trading Performance 41 – 42 2 CORPOR
Slide 3: A. Vietnam Macroeconomic Updates
A. Vietnam Macroeconomic Updates 1. One of the Most Attractive Southeast Asian Economies 4 2. Healthy Macroeconomic Conditions Supporting Growth 5 3. Favorable Outlook for Modern Retail 6 4. Vietnam Residential Market is in the Uptrend 8 3 CORPORATE PRESENTATION
Slide 4: One of the Most Attractive Southeast Asian Economies
One of the Most Attractive Southeast Asian Economies The third most populous country in Southeast Asia(1) One of the fastest growing economies in the region 2016 population (bn) 2016 real GDP growth (%) 258 6.6% 102 6.2% 94 5.0% 68 4.3% 3.1% 31 1.8% 6 Indonesia Philippines Vietnam Thailand Malaysia
Slide 5: Healthy Macroeconomic Conditions Supporting Growth
Healthy Macroeconomic Conditions Supporting Growth Inflation and interest rates are under control Exchange rate remains resilient (VND) 13.5% Average devaluation: 2.5% p.a 10.4% 9.5% 8.7% 8.4% 20,649 20,859 21,017 22,495 22,774 9.1% 6.6% 4.1% 0.6% 2.7% 2012 2013 2014 2015 2016 2012 2013 2014 2015 20
Slide 6: Favorable Outlook for Modern Retail
Favorable Outlook for Modern Retail (2) Robust improvement in individual income(1) High proportion working population drives consumption Vietnam’s GDP per capita (US$) Working to non-working ratio in SEA countries 1.99 1.98 1.97 1.97 2,215 1.78 ASEAN Average: 1.82 2,109 1.75 2,052 1.60 1,933 1.55 1,
Slide 7: Favorable Outlook for Modern Retail (cont'd)
Favorable Outlook for Modern Retail (cont’) Among the region’s lowest retail space supply(1)... …with low penetration rate of modern grocery retail (2) Modern retail space in SEA cities (thousand sqm), Q1 2017 2015 modern grocery retail as part of total grocery retail by value (%) 8,000 71.9% 6,000
Slide 8: Vietnam Residential Market is in the Uptrend
Vietnam Residential Market is in the Uptrend Hanoi residential transactions on the rise with… …high- and mid-end prices reaching a 4-year high (Number of units sold) (US$ psm) 8,000 $2,000 6,000 $1,500 4,000 $1,000 2,000 $500 0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 201
Slide 9: B. Vingroup Overview
B. Vingroup Overview 1. Evolution of Vingroup 10 2. Largest Listed Real Estate Company with Diversified Consumer Sector Exposure 11 3. Ecosystem of Complementary Products and Services 12 4. Significant Focus on Recurring Revenue Streams 13 5. Experienced Management Team, Good Corporate Governance an
Slide 10: Evolution of Vingroup
Evolution of Vingroup $70 mm equity placement “Preserving the Start-up Mindset” Managed 5 Vinpearl resorts $100 mm Warburg Pincus 6 Vincom shopping malls in follow-on investment in operation Vincom Retail Vinhomes Central Park 10 new Vincom shopping construction started malls & acquisiti
Slide 11: Largest Listed Real Estate Company with Diversified Consumer Sector Exposure
Largest Listed Real Estate Company with Diversified Consumer Sector Exposure “To create a better life for the Vietnamese people” Villas, Apartments,Townhouses and Condotels Resorts (Vinpearl) and Amusement Parks (Vinpearlland) (Vinhomes and VinCity) Golf Courses, Gyms and Spas Residential Hospitalit
Slide 12: Ecosystem of Complementary Products and Services
Ecosystem of Complementary Products and Services Retail & Property | Vincom quality shopping Property | Vinhomes premium apartments & villas Property | Vincom Office premium office malls Largest residential developer in Vietnam leasing Largest retail portfolio in Vietnam with Quality residenti
Slide 13: Significant Focus on Recurring Revenue Streams
Significant Focus on Recurring Revenue Streams Portfolio of commercial real estate continues to ramp up Recurring revenue growth (US$ mm) Strategic shift towards a greater percentage of revenue coming 1,500 20.2% 21.3% 38.4% 35.3% 33.6% from recurring income streams such as leasing, consumer retail,
Slide 14: Experienced Management Team, Good Corporate Governance and Strong Sponsor
Experienced Management Team, Good Corporate Governance and Strong Sponsor Mr. Pham Nhat Vuong Chairman of the Board of Directors Holds a Bachelors Degree in Geological Economic Engineering, graduated from Moscow Geology University in Russia Long track record as an entrepreneur both in and out of
Slide 15: Vietnam's Flag Bearer in the International Capital Markets
Vietnam’s Flag Bearer in the International Capital Markets More than US$1.5 billion raised internationally through several pioneering transactions since 2010 Prestigious awards and accolades Domestic Senior Private Equity Asia Pacific Property Awards 2016 International Secondary Syndicated Loan Unse
Slide 16: C. Leading Real Estate Developer and Operator
C. Leading Real Estate Developer and Operator 1. Largest Residential and Commercial Developer in Vietnam 17 2. One of the Largest Landbanks in Prime Locations Across Vietnam 18 3. Robust Residential Sales: New Projects 19 4. Seamless Land Acquisition and Sale Process 20 5. Capital-efficient Model 21
Slide 17: Largest Residential and Commercial Developer in Vietnam
Largest Residential and Commercial Developer in Vietnam Vingroup (rated B+ by Fitch and B by S&P) is the largest listed real estate company in Vietnam by market capitalization with controlling interest in over 108 developments, which are in prime urban and high growth areas in key cities throughout
Slide 18: One of the Largest Landbanks in Prime Locations Across Vietnam
One of the Largest Landbanks in Prime Locations Across Vietnam Landbank breakdown GFA breakdown(1) (mm sqm) Hospital, 1% School, 4% 80 mm sqm 80 mm sqm Entertainment, 8% Highrise, 22% Hotel, 7% 63.8 50.8 Beach villas, 2% 28.6 16.2 0.6 Retail Mixed used & Hospitality Completed & Under commercial Oper
Slide 19: Robust Residential Sales: New Projects
Robust Residential Sales: New Projects Apr-16(1) One of the best locations in the heart of District 1. The only 2,546 2,546 2,546 project located between 2 bridges, Thu Thiem 1 and Thu 2,070 2,016 Golden River 1,854 1,647 Vinhomes Thiem 2, with the first Metro Line from Ben Thanh to Suoi Tien runs
Slide 20: Seamless Land Acquisition and Sale Process
Seamless Land Acquisition and Sale Process Understanding the development and presales process is a crucial part in appreciating Vingroup’s de-risked business model for residential projects Land Acquisition Presales Delivery 1. Obtaining approval-in-principle Delivery of property upon Stage 2 – Appor
Slide 21: Capital-efficient Business Model
Capital-efficient Business Model Integrated development model Recycle capital through opportunistic asset sales 2006 2010 2012 2013 2015 Vinhomes Central Park Vincom Center Vincom Center Vincom Center Vincom Center Ba Trieu – Vincom Ba Trieu – A HCMC Nguyen Chi Tower A Financial Tower B (shopping Th
Slide 22: D. Dominant Modern Retail Player across all Formats
D. Dominant Modern Retail Player across all Formats 1. Nationwide Retail Network 23 2. Accelerated Roll-out of Vincom Retail Malls 24 3. Complemented by Innovative E-commerce and Robust Infrastructure 25 4. Largest Portfolio of Retail Property for Lease 26 22 CORPORATE PRESENTATION
Slide 23: Nation-wide Retail Network
Nation-wide Retail Network 24 / 63 cities and provinces covered VinMart, VinMart+, VinPro, VinDS Key retail brands A Comprehensive multi-format retailer 983 stores 876 VinMart & VinMart+ 29 VinPro 78 VinDS Hanoi North Vietnam(1) 7 Vincom malls 6 Vincom malls 16 VinMart 7 VinMart 405 VinMart+ 12 VinM
Slide 24: Accelerated Roll-out of Vincom Retail Malls
Accelerated Roll-out of Vincom Retail Malls Expansion of nationwide mall footprint Via multiple product formats Number of Vincom Retail Malls [pic] [pic] [pic] [pic] 1,200,000 37 ~1,100,000 sqm 1,000,000 Vincom 32 Vincom Plus Vincom Centre Mega Mall Vincom Plaza Brand Transforming A Symbol of A Symb
Slide 25: Complemented by Innovative E-commerce and Robust Infrastructure
Complemented by Innovative E-commerce and Robust Infrastructure is the growth driver for VinCommerce Well developed infrastructure 28 modern logistic hubs in 13/63 cities and provinces nationwide Fleet of delivery trucks, vans and motorcycles equipped with automated, real-time management system
Slide 26: Growing Portfolio of Retail Properties Attracts Premium Brands
Growing Portfolio of Retail Properties Attracts Premium Brands Vingroup’s brand names are instrumental in securing new sites, achieving premium pricing and attracting over 800 retail and F&B brands Fashion, beauty and accessories Food & Beverage and others 26 (1) Tenants for Vincom Center and Vincom
Slide 27: E. Financial Overview – VAS
E. Financial Overview – VAS(1) (1) Source: Audited VAS Consolidated FS for 2013,2014,2015, 2016 and unaudited VAS Consolidated FS for 1Q 2017 27 Based on exchange rate of US$1 = VND 22,790 as of 31 March 2017 CORPORATE PRESENTATION
Slide 28: Debt profile overview
Debt profile overview Debt maturity (US$ mm) 1,140 As of 31 March 2017: 86 • Average debt maturity: 2.4 years 453 940 42 298 196 123 74 175 215 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Syndicated loan Convertible loan Bank borrowings Average borrowing cost 10.8% 9.9% 9.
Slide 29: Debt Mix Analysis
Debt Mix Analysis Diversified funding sources(1) Debt breakdown(1) By currency USD, Syndicated loan, 16.5% 14.8% Bank loans, 14.2% VND, 83.5% Convertible loan, 1.0% By interest rate Fixed, Domestic bond, 11.9% 70.0% Total: VND44,781 Bn (US$1.96Bn) Floating, 88.1% Note: Based on exchange rate of US$1
Slide 30: Income Statement Highlights
Income Statement Highlights Revenue Gross profit (US$ mm) (US$ mm) 2,528 765 892 488 519 1,511 1,297 571 333 870 278 660 693 214 245 176 1,636 1,019 940 195 233 694 465 460 2013 2014 2015 2016 1Q2016 1Q2017 2013 2014 2015 2016 1Q2016 1Q2017 Property sales Recurring revenue EBITDA Profit for the year
Slide 31: Revenue Performance
Revenue Performance Total revenue Property sale Retail leasing (US$ mm) (US$ mm) (US$ mm) 2,528 1,636 146 118 1,511 103 1,297 1,019 85 940 870 694 660 693 465 460 46 37 2013 2014 2015 2016 1Q2016 1Q2017 2013 2014 2015 2016 1Q2016 1Q2017 2013 2014 2015 2016 1Q2016 1Q2017 Consumer retail Hospitality &
Slide 32: Profitability – Gross Profit and Margin
Profitability – Gross Profit and Margin Total gross profit Property sale Retail leasing (US$ mm) (US$ mm) (%) (US$ mm) (%) 61% 56% 51% 51% 51% 52% 765 41% 39% 38% 44% 36% 37% 75 519 640 488 60 58 52 333 378 381 214 245 249 203 24 178 19 2013 2014 2015 2016 1Q2016 1Q2017 2013 2014 2015 2016 1Q2016 1Q
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights Total cash and short-term investments Total debt(1) and net debt(2) (US$ mm) (US$ mm) 881 736 1,965 647 1,745 617 594 135 1,638 1,532 573 1,296 163 1,150 1,229 261 291 885 678 758 601 431 356 356 308 2013 2014 2015 2016 1Q2017 2013 2014 2015 2016 1Q2017 Cash and cash eq. ST
Slide 34: F. Financial Overview – IFRS
F. Financial Overview - IFRS(1) (1) Source: IFRS Consolidated Financial Statement for 2016 34 Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016 CORPORATE PRESENTATION
Slide 35: Debt profile overview
Debt profile overview Debt maturity (US$ mm) 1,116 As of 31 December 2016: 107 • Average debt maturity: 3.46 years 895 333 268 242 54 94 48 174 194 84 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Syndicated loan Convertible loan Bank borrowings Average borrowing cost 17.7%
Slide 36: Debt Mix Analysis
Debt Mix Analysis Diversified funding sources(1) Debt breakdown(1) By currency USD, EUR, 16.0% 0.5% Syndicated loan, 14.8% Bank loans, 15.4% VND, 83.5% Convertible By interest rate loan, 1.0% Fixed, Corporate bond, 10.1% 68.8% Total: VND44,649 Bn (US$1.95Bn) Floating, 89.9% Notes:Based on exchange r
Slide 37: Income Statement Highlights
Income Statement Highlights Revenue Gross profit (US$ mm) (US$ mm) 2,265 683 507 536 1,526 915 1,293 586 343 870 276 176 1350 1017 940 694 2013 2014 2015 2016 2013 2014 2015 2016 Property sale Recurring income EBITDA(1) Profit for the year(2)(3) (US$ mm) (US$ mm) 612 289 583 8 252 473 374 114 105 20
Slide 38: Revenue Performance
Revenue Performance Total revenue Property sale Retail leasing (US$ mm) (US$ mm) (US$ mm) 2,265 147 1,350 117 1,526 1,017 940 97 1,293 85 694 869 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Consumer retail Hospitality & entertainment services Healthcare & education (US$ mm) (US$ mm)
Slide 39: Profitability – Gross Profit and Margin
Profitability – Gross Profit and Margin Total gross profit Property sale Retail leasing (US$ mm) (US$ mm) (%) (US$ mm) (%) 41% 40% 74% 80% 68% 34% 35% 64% 683 537 507 536 100 358 384 78 75 343 63 235 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Consumer retail Hospitality & entertainm
Slide 40: Balance Sheet Highlights
Balance Sheet Highlights Total cash and short-term investments Total debt(1) and net debt(2) (US$ mm) (US$ mm) 866 1,959 616 640 1,648 1,550 551 1,436 558 1,268 260 284 101 1,005 870 789 706 617 450 356 356 308 2013 2014 2015 2016 2012 2013 2014 2015 2016 Cash and cash eq. ST investments Total debt
Slide 41: G. Trading Performance
G. Trading Performance 41 CORPORATE PRESENTATION
Slide 42: Share Price Performance over the Last Months
Share Price Performance over the Last 36 Months 14.0 45,000 12.0 Share Price (VND) 10.0 Volume (m) 35,000 8.0 6.0 25,000 4.0 2.0 15,000 0.0 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Jan-17 Apr-17 Vingroup Share Volume Vingroup Share Price VN Index rebased Price VND
Slide 43: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Represe
Slide 44: Investor Relations Department
Investor Relations Department Vingroup JSC Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area Long Bien District, Hanoi, Vietnam Tel: +84 (4) 3974 9999 ext. 655 Fax: +84 (4) 3974 8888 Website: http://www.vingroup.net E-mail: ir@vingroup.net 44 CORPORATE PRESENTATION
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