Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (August 2022)
48 slides from Vingroup Joint Stock's investor presentation, August 2022
Slide 1: Vingroup Corporate Presentation
VINGROUP Corporate Presentation August 2022
Slide 2: Important Notice
2 Important Notice 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 Vingroup Joint Stock Company (the “Company”) and its subsidi
Slide 3: Table of Contents
Table of Contents 1 About Vingroup 2 Key Competitive Advantages 3 Covid-19 Update 4 2H2022 Outlook 5 Financial Highlights
Slide 4: About Vingroup
About Vingroup
Slide 5: Unique and Dominant, Comprehensive Live-Work-Play Ecosystem
5 Unique and Dominant, Comprehensive Live-Work-Play Ecosystem #1 #1 Vingroup businesses are categorized into Mobility, Sustainable Energy Real Estate Development & Smart City Solutions three pillars: VinFast cars and e-motorcycles designed and manufactured to international standards. #1 Real estate
Slide 6: The Largest Conglomerate in Vietnam, Asia's Next Tiger Economy
6 The Largest Conglomerate in Vietnam, Asia’s Next Tiger Economy 1.5% Nationwide operations of nominal GDP(1) in all provinces and municipalities contributed by consolidated revenue of Vingroup companies in 2021 US$24.4bn 44,600 employees combined market cap(2) Largest private Vietnamese corporate e
Slide 7: Track Record of Developing New Businesses Into Market Leaders
7 Track Record of Developing New Businesses Into Market Leaders Total Assets (US$bn)(2) US$5.5bn raised through equity transactions in the last 4 years(1) • 1993 – Technocom was set up • 2000 – Technocom-Vingroup returned to Vietnam Sector Core Businesses Position • 2001 – Vinpearl Launch • 2002 – V
Slide 8: Riding on an Exciting Digital Journey to Transform Experience on Unprecedented Scale
8 Riding on an Exciting Digital Journey to Transform Experience on Unprecedented Scale 3 4 5 STAGE 2 Enablers Catalysts Strategies • Data-rich customer platform • Large addressable markets • Best-in-class and smart products • Strategic partnership • High rate of technology adoption • Disrupt traditi
Slide 9: Corporate Structure
9 Corporate Structure US$10.5bn(1) INDUSTRIALS & REAL ESTATE SOCIAL TECHNOLOGY(2) & SERVICES ENTERPRISES(3) US$11.2bn (1) Healthcare and 51.5% Mobility 69.3% Real Estate Development 75.0%-100.0% Education US$2.7bn (1) Battery Cell Technology 51.0% 60.3% Retail Mall 100.0% Development and Manufacturi
Slide 10: Key Competitive Advantages
Key Competitive Advantages 1 Favourable Macro-Economics in Vietnam and Across All Consumer Industries 2 Unparalleled Execution Capabilities in New Business Sectors 3 Dominant Integrated Real Estate Developer, Owner and Operator 4 Largest Ecosystem in Vietnam with Market Leadership Across Multiple Bu
Slide 11: 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
11 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
Slide 12: Strong Macro Tailwinds
12 1 Strong Macro Tailwinds Fastest Growing Economy Fastest Growing Middle-Income One of the Highest Private Strongest Internet Economy in Southeast Asia Segment in SEA Consumption in Southeast Asia Growth in SEA Real GDP growth 2022E -2024E Middle income population(1) growth Private consumption as
Slide 13: Robust Growth Expected for Car Ownership in Vietnam and EVs Globally
13 1 Robust Growth Expected for Car Ownership in Vietnam and EVs Globally 1. Significantly Low Car Penetration 3. VinFast EVs positioned to penetrate both international EV and ICE 2021 car ownership per 1,000 people segments with our product offering 14.8x North America (US & Canada) 472.0 23x VinFa
Slide 14: Consumer Spending to Grow Across Vingroup's Key Consumer Segments
14 1 Consumer Spending to Grow Across Vingroup’s Key Consumer Segments Healthcare - Increasing Household Education - Increasing Household Tourism - Domestic And International Healthcare Expenditure from Aging Education Spending as More Families Can Number of Trips Increasing at A Rapid Population An
Slide 15: Experiencing Favorable Geopolitical Shifts
15 1 Experiencing Favorable Geopolitical Shifts • Beneficiary of global supply chain disruption Substantial total investment as % of GDP Stable FDI flow due to geopolitical shifts (2021 Actual) Registered FDI (USD bn) • Supportive government policies and robust infrastructure investment 35 • Strateg
Slide 16: 2. Unparalleled Execution Capabilities In New Business Sectors
16 2. Unparalleled Execution Capabilities In New Business Sectors
Slide 17: Our Track Record of Making the Impossible(s) Possible – Premium Auto Manufacturer
17 2 Our Track Record of Making the Impossible(s) Possible – Premium Auto Manufacturer Focused on Launching EVs into the Global Market PHASE 1 PHASE 2 PHASE 3 Foundation (2017 – 2019) Acceleration (2020 – 2021) Go Global (2022+) Establishment of Manufacturing & Commercial Domestic market Global EV R
Slide 18: World-Class Automated Manufacturing Facilities to Meet Fast Growing Smart EVs Demand
18 2 World-Class Automated Manufacturing Facilities to Meet Fast Growing Smart EVs Demand The most modern factory in Vietnam and the newest, biggest automated Built with advanced technology, automation partners and established manufacturing facility in ASEAN strong partnerships with industry leaders
Slide 19: Development Capabilities Underpinned by Shared Expertise of Vingroup and Global Partners
19 2 Development Capabilities Underpinned by Shared Expertise of Vingroup and Global Partners Innovation-Driven, Technology-Centric Coupled with Key Advantages of “Technology for Life” Platform Leverage competitive advantage of partners Technology Ecosystem > 900 engineers Enjoy greater margin > 660
Slide 20: 3. Dominant Integrated Real Estate Developer, Owner and Operator
20 3. Dominant Integrated Real Estate Developer, Owner and Operator
Slide 21: Dominant Integrated Real Estate Developer, Owner and Operator
21 Dominant Integrated Real Estate Developer, Owner and Operator Unrivalled nation-wide land bank to support Vingroup’ s growth and sustainability couples with well-diversified coverage of real estate segments across Vietnam RESIDENTIAL, OFFICE HOSPITALITY AND AND INDUSTRIAL RETAIL MALLS ENTERTAINME
Slide 22: Vinhomes – The Leading Residential Platform
22 Vinhomes – The Leading Residential Platform Vinhomes’ Superior End-to-end Value Chain Additional Pillar of Vinhomes’ Medium Term Strategy to Diversify and Increase Recurring Revenue and Provide More Avenues for Capital Recycling Land Diversification Across the 3 Segments Access to industrial pa
Slide 23: Property Development Model and Payment Schedule
23 3 Property Development Model and Payment Schedule Built on Favorable Regulatory Framework for an Efficient Self-Funding Business Model 2 – 2.5 years Condo: 6 months Condo: 6 – 10 months Condo: 12 – 16 months Villa: 12 months Villa: 2 – 3 months Villa: 9 – 10 months Master Planning Construction &
Slide 24: Vincom Retail – The Largest & Fastest Growing Retail Properties Developer
24 3 Vincom Retail – The Largest & Fastest Growing Retail Properties Developer & Operator in Vietnam Hanoi – 12 Outstanding Indicators 5 Vincom Centers 4 Vincom Mega Malls 3 Vincom Plazas Northern Vietnam 44 Provinces/cities (except Hanoi) – 19 • 16 Vincom Plazas • 3 Vincom+ 83 Malls under operation
Slide 25: Vinpearl – The Leading Integrated Hospitality and Entertainment Platform
25 3 Vinpearl – The Leading Integrated Hospitality and Entertainment Platform with Hospitality Portfolio at Vietnam’s Most Coveted Locations Integrated Lodging and Entertainment Portfolio of 5+ Star Brands Lang Son Quang Ninh DA NANG & QUANG NAM Hai Phong Group of Rooms 2,625 Ha Nam Affluent/ Silver
Slide 26: 4. Largest Ecosystem in Vietnam With Market Leadership Across Multiple Businesses
26 4. Largest Ecosystem in Vietnam With Market Leadership Across Multiple Businesses
Slide 27: Leveraging Data Analytics for Deep Behavioral Understanding
27 4 Leveraging Data Analytics for Deep Behavioral Understanding and Continual Improvement of Platform Offerings Data CONSUMER DATA Analytics CONSUMER PREFERENCES CONSUMER DATA Personalized Services & Products Smart Solutions Customer Product Touchpoints Enhancements & Superior ecosystem experience
Slide 28: 5. Proven Track Record of Developing Vietnamese Brands of Scale
28 5. Proven Track Record of Developing Vietnamese Brands of Scale
Slide 29: Proven Track Record of Developing Vietnamese Brands of Scale
29 5 Proven Track Record of Developing Vietnamese Brands of Scale Most Loved and Respected Brands Best Designs Vietnam Report 2021 International Property Awards ● Top 5 Largest Enterprises in Vietnam ● The Most Intelligent District – IBcon Digie Awards (2021) – Techno Park ● The Largest Non-state-ow
Slide 30: Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs
30 5 Superior Brand Equity Fosters Consumer Trust and Lower Customer Acquisition Costs Vin-brands being a household name across sectors… Vinhomes – VinFast Vingroup Vinpearl Vincom Retail VF 5, VF 6, VF 7 Top 2 local brand Top 10 Brand The 10 Coolest Cars From Best of the Best and Travelers’ Nielsen
Slide 31: 6. Prudent Financial Policies And Strong Financial Position
31 6. Prudent Financial Policies And Strong Financial Position
Slide 32: Prudent Financial Policies and Strong Financial Position
32 6 Prudent Financial Policies and Strong Financial Position Liquidity • Minimum cash balance of US$700m or above to avoid liquidity risk management • Only Vietnamese issuer with access to multiple sources of capital, including domestic and international banks, domestic bond market, as well as inte
Slide 33: Global Reputation and Good Execution Helped Attract Top-Tier International Investors
33 6 Global Reputation and Good Execution Helped Attract Top-Tier International Investors Sovereign Wealth Funds Equity Capital Markets Banking Public Partners Markets Strategic Partners & Joint Ventures Convertible / Exchangeable Bond Markets Private Internal Markets Cash flow Private Equity Intern
Slide 34: Support from Leading International Financial Institutions for VinFast's International Expansions
34 6 Support from Leading International Financial Institutions for VinFast's International Expansions Exchangeable Bond Vingroup successfully issued USD 625mn of bonds that 625 include an option to exchange into VinFast shares following an international listing to reputable international sovereign w
Slide 35: Visionary Management with Proven Track Record
35 6 Visionary Management with Proven Track Record Board of Directors Mr. Pham Nhat Vuong • Holds a Bachelors Degree in Geological Economic Engineering, graduated from Moscow Geology University in Russia Chairman of the Board of Directors • Long track record as an entrepreneur both in and out of Vie
Slide 36: Committed to International Corporate Standards
36 6 Committed to International Corporate Standards 1. Seasoned Management Teams for Every Business Segment Ms. Le Thi Thu Thuy Mr. Shaun Calvert Dr. Nguyen Quang Huy Ms. Tran Mai Hoa CEO Dy CEO, Manufacturing Technology Director CEO • 31+ yrs experience • Previous: Principal Architect, • 5+ yrs wit
Slide 37: Covid-19 Update
Covid-19 Update
Slide 38: Covid-19 Phased out Gradually – Economy Recovered Strongly
38 Covid-19 Phased out Gradually – Economy Recovered Strongly with Impressive GDP Growth Rate Vietnam’s GDP grew 7.7% in 2Q2022 – the highest level during the last 10 years Activities resumed – All businesses showed signs of recovery • Vietnam ranks 2nd on the post-Covid recovery index1. Administere
Slide 39: 2H2022 Outlook
VINFAST 2H2022 Outlook” ne
Slide 40: 2H2022 Outlook
40 2H2022 Outlook Industrials and Technology • Roll out showrooms across Vietnam, the U.S., and Europe • Expand charging infrastructure for EV transition in Vietnam • Improve brand equity throughout various marketing campaigns globally Real Estate and Services • Robust pre-sales outlook supported by
Slide 41: Financial Highlights
Financial Highlights
Slide 42: Income Statement Highlights
42 Income Statement Highlights Revenue1 Gross Profit1 EBITDA1, 3, 4 Profit Before Tax VND bn VND bn VND bn 35.5% 26.5% 31.3% 27.1% 24.5% 40.5% 29.6% 32.0% 36.1% 45.5% 41,125 40,222 39,331 132,950 40,270 128,665 35,206 35,204 3,614 3,315 99,233 1,928 1,404 84,888 99,058 21,893 22,026 66,425 60,694 16
Slide 43: Revenue Performance – VAS
43 Revenue Performance – VAS Property sales1 Leasing Hospitality & Entertainment Services2 VND bn VND bn 7,789 99,058 84,888 6,792 6,662 66,425 5,368 3,804 3,383 3,463 38,460 2,953 2,205 25,823 1,349 2019 2020 2021 1H2021 1H2022 2019 2020 2021 1H2021 1H2022 2019 2020 2021 1H2021 1H2022 Healthcare Ed
Slide 44: Gross Profit and Margin – VAS
44 Gross Profit and Margin – VAS Property sales1 Leasing Hospitality & Entertainment Services2, 3 VND bn VND bn VND bn 53.7% 45.3% 63.9% 57.8% 62.5% 53.8% 49.0% 45.6% 53.9% 53.1% 39.3% -3.5% 2.3% 2.7% 34.9% 7,000 54,222 5,000 44,828 3,000 3,064 35,643 3,654 1,030 3,267 1,304 (135) 50 37 1,000 22,219
Slide 45: Balance Sheet Highlights
45 Balance Sheet Highlights Debt1, 2, 3/ EBITDA4 Total Assets & Total Equity6 Breakdown of Total Assets x VND bn % 8.7% 8.1% 7.9% 8.2% Increase due to $625mn 39% 22% exchangeable bonds 3.8x 508,609 3.5x 3.2x VND508.6tn 3.0x 3.0x 423,341 428,384 401,156 9% 2.7x 2.5x 2.4x 2.3x 11% 15% 4% 136,365 159,5
Slide 46: Balance Sheet Highlights
46 Balance Sheet Highlights Total Debt Breakdown By Type Total Debt Breakdown By Currency Total Debt Breakdown By Interest Rate % % % Domestic bond Fixed 2 31.1% International 36.3% bond 15.4% VND 1 60.7% USD 39.3% Bank loans VND166.6tn VND166.6tn Other VND166.6tn 9.4% 7.3% Exchangeable bond Floatin
Slide 47: Leverage, Coverage and other Ratios
47 Leverage, Coverage and other Ratios LTM2022 FY2021 Change Leverage ratios Net debt1, 2 / EBITDA 2.7x 2.4x 0.3x Net debt1, 2 / (Total assets – cash & ST investments2) 24.4% 24.7% (0.3ppts) Coverage ratios Recurring revenue / Interest expense3 4.5x 4.3x 0.2x EBITDA / Interest expense3 4.2x 4.0x 0.2
Slide 48: Company Information
48 Company Information Vingroup Joint Stock Company (“Vingroup” or “the Group”): market capitalization of c.USD10.5 billion as at 29 July 2022. OFFICES Vingroup today bases its strategy on the principles of sustainability and professional management to operate in three major business HANOI HEADQUART
Vingroup Joint Stock Company — Investor Presentation (August 2022) on 6ix