VinaLand — Investor Presentation (June 2014)
38 slides from VinaLand's investor presentation, Jun 23, 2014
Slide 1: VinaLand Fund Update
VinaLand Fund Update David Blackhall – Managing Director 23 June 2014 1
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by VinaCapital 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 authority or any investment
Slide 3: Content
Content 1. Vietnam macroeconomic and property market update 2. Overview of VNL Fund 3. Review of the last 18 months 4. Strategy going forward 3
Slide 4: Economic prospects remain stable for the next 12 months
Economic prospects remain stable for the next 12 months Political situation • Stability continues to prevail: next Communist Party Convention not until 2016. • In spite of recent tension with China , the Vietnamese Government maintains major economic goals for 2014: GDP growth of 5.8% and inflation
Slide 5: Economic prospects remain stable for the next 12 months
Economic prospects remain stable for the next 12 months FX policy • Low FX risk : SBV is committed to keep VND depreciation at < 2% in 2014 (versus 2-3% in 2013). Note : on 19 June 2014 the SBV adjusted the exchange rate resulting in a devaluation of 1% and was previously announced by the SBV Govern
Slide 6: Vietnam macroeconomic indicators 2010 – 2014F
Vietnam macroeconomic indicators 2010 – 2014F Indicators 2010A 2011A 2012A 2013A 2014F1 GDP growth (%) 6.8 5.8 5.0 5.4 5.5 - 6.0 CPI (%) 11.8 18.1 6.8 6.0 5.0 – 5.5 Trade Deficit /Surplus (USD Bn) -12.4 -9.5 0.3 0.9 3.0 Exports (USD Bn) 71.6 96.3 114.6 132.2 157.0 Imports (USD Bn) 84.0 105.8 114.3 1
Slide 7: East Sea tensions between Vietnam and China flare-up
East Sea tensions between Vietnam and China flare-up • China’s deployment of a state-owned oil rig, accompanied by a flotilla of naval and merchant vessels, in disputed waters 120 nautical miles from the Vietnamese coast near the Paracel Islands, has increased market volatility. • Vietnam claims tha
Slide 8: Macroeconomic and regulatory impact on the property market
Macroeconomic and regulatory impact on the property market • Down-trending lending rates Vietnamese Banks have ample liquidity to lend however they are still very much concerned about existing non-performing loans. Current banks’ lending rates for real estate are in the range of 10-12% p.a. Special
Slide 9: Vietnam real estate market update – main sectors
Vietnam real estate market update – main sectors • Condominium sector – Increasing new launches, almost 4,500 units in HCMC and Hanoi in Q4 2013 alone. – More activities and transactions in low-mid end segment. Developers competing on payment terms, hand-over conditions, and additional incentives. –
Slide 10: New infrastructure completed in 2013
New infrastructure completed in 2013 Source: CBRE 10
Slide 11: New infrastructure in progress – Metro systems
New infrastructure in progress – Metro systems Hanoi’s metro system 8 lines – 306 km Line 2 (Cat Linh – Ha Dong) under construction, expected completion and operation in 2015 - 2016. Railway assembly in progress in Hanoi Source: Hanoi Urban Railway Management Authority 11
Slide 12: Content
Content 1. Vietnam macroeconomic and property market update 2. Overview of VNL Fund 3. Review of the last 18 months 4. Strategy going forward 12
Slide 13: VinaLand Limited (VNL)
VinaLand Limited (VNL) Fund summary Portfolio summary (31 May 2014) Current assets: 30 NAV: US$432.1m (31 Mar 2014) Divestments: 16 full and residential unit sales Fund level (ZDPs) : 5.8% NAV NAV per share: US$0.91 (31 Mar 2014) Debt: Project level (Bank) : 16.6% NAV Fund Cash balance: USD48.1m (in
Slide 14: Portfolio breakdown
Portfolio breakdown Portfolio breakdown (31 March 2014) Hanoi Sector NAV% 12% Hanoi region Hospitality 9.1% Township 20.4% Mixed use 27.4% Residential 43.0% Development status Danang Land banking 7.9% 26% Central region Planning stage 59.1% Development stage 27.3% Nha Trang Operating assets 5.8% Val
Slide 15: Top investments
Top 10 investments VNL Top 10 investments (31 March 2014) NAV NAV Area Investment Location Sector VNL % Status (US$m) (%) (ha) 1 Century 21 South Residential 68.7 16.0% 75.0% 30.1 Planning/licensing underway 2 Danang Beach Resort Central Residential 52.7 12.3% 75.0% 260.0 Construction and sales unde
Slide 16: NAV and share price performance
NAV and share price performance 1.75 1.50 1.25 1.00 0.91 0.75 0.55 0.50 0.25 - May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 NAV per share Share Price 16
Slide 17: Share buyback
Share buyback VNL share price and share buyback since EGM 8 Million shares 0.60 $0.55 6 0.40 4 0.20 2 - - Share Buy Back History • Since the EGM in November 2012: VNL has spent USD11.4m to buy back 21.7m shares, bringing the total number of shares outstanding to 461,727,080 (at 23 June 2014). • Sinc
Slide 18: Content
Content 1. Vietnam macroeconomic and property market update 2. Overview of VNL Fund 3. Review of the last 18 months 4. Strategy going forward 18
Slide 19: Summary of the last 18 months
Summary of the last 18 months DIVESTMENT SHARE PRICE NAV CASH POSITION • +36% since EGM Cash position highest 6 Exits since EGM Stabilizing • Discount narrowing level for more than 4 in November 2012 from 63% to 39% years BOARD DEBT (FUND) IMPROVING SALES MARKET CONFIDENCE RESTRUCTURED +$23M • Azura
Slide 20: 6 divestments completed since EGM November 2012
6 divestments completed since EGM November 2012 Project: Nguyen Du Project: Sheraton Project: Signature 1 Project: Hao Khang • Location: Hanoi • Location: Nha Trang • Location: HCMC • Location: HCMC • Size: 2,240 sqm NLA • Size: 284 rooms • Size: 6,351 sqm land • Size: 49,655 sqm land • Type: Operat
Slide 21: VinaLand residential portfolio – 2012 to 2014 (YTD) sales
VinaLand residential portfolio – 2012 to 2014 (YTD) sales • 2012 – 6 villas sold Sold units each year • 2013 – 18 villas sold 18 • 2014 – 11 villas sold to date, with 145 homes now handed over to buyers. 11 Extensive list of events planned for remainder of year, specifically 6 targeting end users. 2
Slide 22: Development – re-activation of projects and re-launching
Development – re-activation of projects and re-launching Past design in 2010 Present design in 2014 The Cham The Ocean Apartments • Launched in 2010 • Re-launched in 2014 • Only 12 sales • New name, new design, new life • Project moth balled until market recovers • 32 reservations in 3 weeks The Oce
Slide 23: International recognition – Development Awards in 2014
International recognition – Development Awards in 2014 VNL projects and VinaCapital were recognised internationally in winning property awards for several VNL projects as follows: 1. Best (5 star) High-rise Residential Development in Vietnam - Azura Danang Luxury Apartments 2. Highly Commended Award
Slide 24: Content
Content 1. Vietnam macroeconomic and property market update 2. Overview of VNL Fund 3. Review of the last 18 months 4. Strategy going forward 24
Slide 25: Indicative realisation and distribution profile – Illustrative outcome
Indicative realisation and distribution profile – Illustrative outcome Estimated Distribution Profile (USDm) Total Nov 2012- May 2014 2014 2015 Actual Future Future Opening cash balance 4.9 4.9 7.7 3.9 Collection from Outstanding Receivables 8.3 4.1 3.0 1.2 Cash from exits/ Return from projects 233.
Slide 26: Strategy for the next 18 months
Strategy for the next 18 months KEY OBJECTIVES FOR THE NEXT 18 MONTHS DIVESTMENT DISTRIBUTIONS to NARROW share price to of assets shareholders NAV discount LICENSING of projects to DEVELOPMENT of MAXIMISE facilitate divestment & selected key projects Profit development 26
Slide 27: Appendix - Key project profiles
Appendix APPENDIX - Key project profiles 27
Slide 28: Century 21, HCMC Project summary
Century 21, HCMC Project summary Project Summary Type Residential and commercial Existing roads District 2, Ho Chi Minh City. Fast-growing, most desirable residential suburb of Future roads Location HCMC. Area 30ha History • Acquired in June 2006. Century 21 • Site cleared and compensated in June 20
Slide 29: Danang Beach Resort, Danang Project summary
Danang Beach Resort, Danang Project summary Project Summary Hotel Site Type Residential (integrated resort and residential) Location Danang, Central Vietnam (10km to Intl’ airport, 27km to Hoi An ancient town) Norman Estates The Point Area 260 ha History • Acquired in June 2006, Investment license r
Slide 30: Site photos Danang Beach Resort, Danang
Danang Beach Resort, Danang Site photos The Ocean Villas 100% sold out The Ocean Villas The Dunes Residence Villas Danang Golf Course 30
Slide 31: Dai Phuoc Lotus, Dong Nai Project summary
Dai Phuoc Lotus, Dong Nai Project summary Project Summary Type An integrated island residential development project on Dai Phuoc Island, HCMC suburb Location Dong Nai province (half way between the City Centre and the future Long Thanh International Airport) Area 200.7ha, approved GFA 1.7m sqm Histo
Slide 32: Dai Phuoc Lotus – facilities and marketing events
Dai Phuoc Lotus – facilities and marketing events Completed villas and Marketing events Display Villa - Interior Community space amid villas Lotus Sports Center completed in Q4 2013 32
Slide 33: VinaSquare, HCMC Project summary
VinaSquare, HCMC Project summary Project Summary Type Mixed-use (residential, retail, office and hotel) Location District 5, Ho Chi Minh City CBD Area 3.1ha; estimated GFA 278,748 sqm History • Acquired in May 2007 • Investment license received in October 2008 • 1:500 Master plan approved in October
Slide 34: Times Square, Hanoi Project summary
Times Square, Hanoi Project summary Project Summary Type Mixed-use (residential, retail, hotel and office) Location • Pham Hung Road, My Dinh area – future second CBD • Strategic location with excellent exposure opposite the National Convention and Exhibition Centre Area 4.0ha, estimated GFA 308,510
Slide 35: My Gia Township, Nha Trang Project summary
My Gia Township, Nha Trang Project summary Project Summary Type Township with villas/townhouses, apartments, hospital, school, retail centre and entertainment facilities in Nha Trang City Area Site Area: 153 ha. Estimated GFA: 2.4m sqm Development • First phase commenced with Parcel 2, a 28.5ha parc
Slide 36: My Gia – Nha Trang – construction and delivery
My Gia – Nha Trang – construction and delivery My Gia Show Villas My Gia Show Villa Internal View Landscape works in the main entry Phase 2.1 + Family Park Phase 2.1 Internal works Phase 2.2 Road No. 4 Resettlement Area – Road work Tac River Project 36
Slide 37: World Trade Center Danang, Danang Project summary
World Trade Center Danang, Danang Project summary Project Summary Type Mixed-use (commercial and residential) Location Danang City, on the river side opposite City Centre Area 9.0ha; approved GFA 519,000 sqm History • Acquired in Q3 2006 • Investment licence received in July 2007 • Phase 1 (2.5ha) p
Slide 38: 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 Singapore Yangon 38