Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Vingroup — Investor Presentation (September 2021)
62 slides from Vingroup Joint Stock's investor presentation, September 2021
Slide 1: Vingroup Corporate Presentation
VINGROUP Corporate Presentation September 2021
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: Vingroup
Vingroup Landmark 81 - the tallest building in Vietnam (Vinhomes Central Park, HCMC)
Slide 4: Unique and Dominant, Comprehensive Live-Work-Play Ecosystem
4 Unique and Dominant, Comprehensive Live-Work-Play Ecosystem #1 #1 #1 Mobility Real Estate Development Retail Mall Vinhomes luxury, high-end and mid-range integrated Vincom “all-in-one” shopping, entertainment and VinFast cars and e-motorcycles designed and residential and commercial projects dinin
Slide 5: The Largest Conglomerate in Vietnam, Asia's Next Tiger Economy
5 The Largest Conglomerate in Vietnam, Asia’s Next Tiger Economy (1) (2) 2.2% Most profitable of nominal GDP amongst privately owned enterprises contributed by consolidated revenue of Vingroup companies in 2020 14.7%(3) Nationwide operations of VN Index (4) in all 63 provinces and municipalities (3)
Slide 6: Track Record of Developing New Businesses into Market Leaders
6 Track Record of Developing New Businesses into Market Leaders US$3.9bn raised through equity transactions in the last 3 years Total Assets (US$bn)(1) Position Real Estate #1 (2) VSMART Development Real Estate (3) Retail Mall #1 • 1993 – Technocom was set up • 2000 – Technocom-Vingroup returned to
Slide 7: Riding on an Exciting Digital Journey to Transform Experience
7 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 8: Corporate Structure
8 Corporate Structure US$15.5bn(1) REAL ESTATE INDUSTRIALS & SERVICES TECHNOLOGY 51.5% US$15.2bn (1) Mobility (2) 73.7% 75.0% Healthcare Real Estate Development 72.3% US$2.7bn (1) Smart City, Smarthomes and IoT 60.3% 100.0% Education Retail Mall 80.0% Technology R&D and IT Solution Development 98.1%
Slide 9: 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 10: 1. Favourable Macro-economics in Vietnam and Across All Consumer Industries
1. Favourable Macro-economics in Vietnam and Across All Consumer Industries VinFast Manufacturing Complex, Hai Phong
Slide 11: Strong Macro Tailwinds
11 1 Strong Macro Tailwinds Fastest Growing Economy in Fastest Growing Middle-Income One of the Highest Private One Of The Strongest Internet Southeast Asia Segment in SEA Consumption in Southeast Asia Economy Growth In SEA Real GDP growth 2020A -2022E Middle income population(1) growth Private cons
Slide 12: Robust Growth Expected for ICE in Vietnam and EVs Globally
12 1 Robust Growth Expected for ICE in Vietnam and EVs Globally 1. Significantly Low Car Penetration 3. VinFast EVs positioned to penetrate both international EV and ICE 2020 car ownership per 1,000 people segments with our product offering 15.5x North America (US & Canada) 23x VinFast target market
Slide 13: Consumer Spending to Grow across Vingroup's Key Consumer Segments
13 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 Tourist Arrivals Increasing At A Rapid Population And R
Slide 14: Experiencing Favorable Geopolitical Shifts
14 1 Experiencing Favorable Geopolitical Shifts • Beneficiary of global supply chain disruption Highest level of public investment as % of GDP Stable FDI flow due to geopolitical shifts (2020 Actual) Registered FDI (US$ bn) • Supportive government policies and robust infrastructure investment 8% 0 •
Slide 15: 2. Unparalleled Execution Capabilities in New Business Sectors
2. Unparalleled Execution Capabilities in New Business Sectors VinFast electric car – VF e35 model
Slide 16: Successfully Created State-Of-The-Art Mobility Solutions Platform in Record Time
16 2 Successfully Created State-Of-The-Art Mobility Solutions Platform in Record Time PHASE 1 PHASE 2 PHASE 3 Foundation Establishment of Acceleration Smart Technology & Go Global Global EV Rollout (2017 –2019) Manufacturing & (2020 –2021) Electrification (2022+) Commercial Infrastructure 6 new smar
Slide 17: VinFast Sustaining Stellar Track Record of Market Penetration
17 2 VinFast Sustaining Stellar Track Record of Market Penetration #1 across all segments with dominant market share in 2Q2021 E-Motorcycle E-segment E-segment A-segment Sedan SUV Best-seller across all car models for 2 consecutive months 1 E-motorcycle segment 1 A-segment hatchbacks Sedan: #1 in pr
Slide 18: Established Manufacturing Capabilities and Commercial Infrastructure
18 2 Established Manufacturing Capabilities and Commercial Infrastructure Record time to market • State-of-the-art Manufacturing Complex 12 months • Launched three car models 18 months Established supply Lithium ion battery factory with LG Chem Extensive distribution network for both automobiles cha
Slide 19: Strategic Partnerships with Industry Leaders Complement In-house R&D Capabilities
19 2 Strategic Partnerships with Industry Leaders Complement In-house R&D Capabilities Integrated in-house product development capability Electrification 400 AI / Big Data Experience Design Engineers Automobiles / Motorcycles Smart Vehicle 730 Application Center VinFast R&D Industrial Design Automot
Slide 20: 3. Dominant Integrated Real Estate Developer, Owner and Operator
3. Dominant Integrated Real Estate Developer, Owner and Operator Vinhomes Grand Park (HCMC)
Slide 21: Dominant Integrated Real Estate Developer, Owner and Operator
21 3 Dominant Integrated Real Estate Developer, Owner and Operator • Unrivalled nation-wide land bank to support Vingroup’s growth and sustainability RESIDENTIAL, OFFICE AND INDUSTRIAL RETAIL MALLS HOSPITALITY AND ENTERTAINMENT RESIDENTIAL 164mn US$22.9bn US$2.2bn 80 17,500 sqm of residential GFA Ad
Slide 22: Vinhomes – The Dominant Residential Platform
22 3 Vinhomes – The Dominant Residential Platform Largest Land Bank Delivers Sustainable Growth Superior Returns Land bank(1) (mm sqm) Return-on-Equity(2)(%) Translates to 164mm sqm of ~24x the land bank of our next largest Vinhomes 30.4% residential GFA competitors Land & Houses 18.8% 168 Ayala Lan
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: Expansion into Industrial Real Estate to Capitalize on Sector Tailwinds
24 3 Expansion into Industrial Real Estate to Capitalize on the Attractive Sector Tailwinds Leveraging Vinhomes’ Expertise in Sourcing/ Acquiring Land as Additional Pillar of Vinhomes’ Medium Term Strategy to Diversify well as Real Estate Development and Increase Recurring Revenue and Provide More A
Slide 25: Industrial Real Estate as a New Growth Driver
25 3 Industrial Real Estate as a New Growth Driver Major Infrastructure Investments and Industrial Park Expansion To Capture Manufacturing Shifts The Van Don – Mong Cai (Quang Ninh province) and Ninh Binh – Hai Phong expressways will bridge the connectivity with China to capitalize on manufacturin
Slide 26: Vincom Retail – Largest & Fastest Growing Retail Properties Operator
26 3 Vincom Retail – The Largest & Fastest Growing Retail Properties Developer & Operator in VN Outstanding Indicators Hanoi – 11 5 Vincom Centers Northern Vietnam 3 Vincom Mega Malls 43 provinces/cities (except Hanoi) – 19 • 16 Vincom Plazas 3 Vincom Plazas • 3 Vincom+ 80 malls under operation Cent
Slide 27: Vinpearl – The Leading Integrated Hospitality and Entertainment Platform
27 3 Vinpearl – The Leading Integrated Hospitality and Entertainment Platform Premium Hospitality Portfolio at Vietnam’s Most Coveted Locations Integrated Lodging and Entertainment Portfolio of 5+ Star Brands TOTAL: 47 PROJECTS(*) DA NANG Rooms 1,225 Facilities 3 Quang Ninh Young couples & group Cou
Slide 28: 4. Largest Ecosystem in Vietnam with Market Leadership
4. Largest Ecosystem in Vietnam with Market Leadership Across Multiple Businesses
Slide 29: Largest Ecosystem in Vietnam with Market Leadership Across Multiple Businesses
29 4 Largest Ecosystem in Vietnam 11AM Book hotel 1PM Health check-up with Market Leadership Across Multiple Businesses 10AM 2PM • The only company in Vietnam with extensive Conference Pay for coffee call presence across the consumer ecosystem • Leadership position across multiple consumer sectors d
Slide 30: Leveraging Data Analytics for Deep Behavioral Understanding
30 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 ba
Slide 31: One Mount Group is Creating Vietnam's Largest Digital Ecosystem
31 4 One Mount Group is Creating Vietnam’s Largest Digital Ecosystem One Mount’s integrated ecosystem across multiple platforms is developing an expansive and fast growing O2O network starting with three main economic sectors: Retail, Real Estate and Financial Services. TAM: $4bn1 TAM: $45bn2 TAM: $
Slide 32: 5. Proven Track Record of Developing Vietnamese Brands of Scale
5. Proven Track Record of Developing Vietnamese Brands of Scale
Slide 33: Proven Track Record of Developing Vietnamese Brands of Scale
33 5 Proven Track Record of Developing Vietnamese Brands of Scale Most Loved and Respected Brands Best Designs Vietnam Report 2020 International Property Awards ● Top 10 largest enterprises in Vietnam ● Best Retail Development – Asia Pacific (2019) – Vincom Center Landmark 81 ASEAN NCAP 2020 ● Best
Slide 34: Superior Brand Equity Fosters Consumer Trust and Lower Acquisition Costs
34 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 Top 2 local brand Top 10 Brand “A Star is Born” Award Top 10 Five-star Hotels Vietnam Nielsen 2020 Forbes Vietna
Slide 35: 6. Prudent Financial Policies and Strong Financial Position
6. Prudent Financial Policies and Strong Financial Position
Slide 36: Prudent Financial Policies and Strong Financial Position
36 6 Prudent Financial Policies and Strong Financial Position • Minimum cash balance of US$700m or above to avoid liquidity risk Liquidity • Only Vietnamese issuer with access to multiple sources of capital, including domestic and international banks, domestic bond market, as management well as inte
Slide 37: Global Reputation Helped Attract Top-tier International Investors
37 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 38: Visionary Management with Proven Track Record
38 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 39: Committed to International Corporate Standards
39 6 Committed to International Corporate Standards 1. Seasoned Management Teams for Every Business Segment Ms. Tran Mai Hoa Mr. Pham Thieu Hoa CEO Ms. Nguyen Thi Diu Mr. Michael Lohscheller CEO President CEO • 27+ yrs experience • 25+ yrs experience • 34+ yrs experience • 7+ yrs with Vingroup • 7+
Slide 40: Covid-19 and 2Q2021 Performance Update
Covid-19 and 2Q2021 Performance Update One Mount Group headquarters
Slide 41: Vietnam is on Track to Achieve Herd Immunity
41 Vietnam is on Track to Achieve Herd Immunity The 4th outbreak had negatively impacted Q2. However, the Vietnamese Government has been swift and decisive to increase vaccination rate in order to achieve “herd immunity”. Since then, close to 20 million Vietnamese have been vaccinated (1). Overall p
Slide 42: Businesses are Nimbly Adapting to the New Normal
42 Businesses are Nimbly Adapting to the New Normal Business impact • No material impact on sales • Moderate impact to retail sales. • Moderate impact in 2Q as malls near • Material impact – indoors No impact on bulk sales and industrial clusters accounted for minor facilities are closed except when
Slide 43: VinFast Operational Highlights in 2Q2021
43 VinFast Operational Highlights in 2Q2021 2Q2021 Performance Highlights Unveiling new EV models 01 2Q2021 performance (units sold) 01 Cars Recorded 25,000 pre-orders as of July 2021 for VF e34 9,700(1) 16,800 Pre-order started on 24 March 2021 2022 Launch 2022 Launch Cars E-motorcycles +41% QoQ +1
Slide 44: VinFast Going Global
44 VinFast Going Global 01 VinFast Global Showroom Design Competition Results 03 Fortify senior management with industry veterans with global experience 9 best designs honored at 1,000 designs from 90 Times Square countries • 20+ years of leadership in global car industry Michael Lohscheller CEO, Vi
Slide 45: VinFast's International Presence
45 VinFast’s International Presence Netherlands Germany Amsterdam Vietnam Frankfurt Canada Amsterdam Hai Phong Vancouver Paris Hanoi U.S. Frankfurt Hai Phong France Hanoi U.S. – California Headquarters Manufacturing facilities Paris Showrooms Phase 1 Phase 2 Australia
Slide 46: Vinhomes Implementing Connected Smart City Solutions
46 Vinhomes Implementing Connected Smart City Solutions Highly advanced comprehensive smart city solutions developed by VinSmart integrated into Vinhomes existing mega projects Pioneer of the smart city concept, first in SEA to implement comprehensive smart city of this scale, providing an unrivalle
Slide 47: Vinhomes 2Q2021 Highlights
47 Vinhomes 2Q2021 Highlights 01 Retail sales Retail units pre-sold and deposits secured(1) Retail contracted value(1) remained units VND bn 8,918 strong 2,476 momentum in 5,985 2Q2021 1,592 despite resurgence of Covid-19 1Q2021 2Q2021 1Q2021 2Q2021 02 Continue O2O Metrolines Launch Livestream kick-
Slide 48: Vincom Retail 2Q2021 Highlights
48 Vincom Retail 2Q2021 Highlights 01 Leasing revenue(1) Leasing NOI(1) EBITDA(1) Recovery VND bn VND bn VND bn % of previous year level % of previous year level % of previous year level momentum continued from 91% 79% 89% 84% 118% 105% 86% 81% 91% 87% 132% 101% 89% 73% 94% 111% 141% 111% the 3rd qu
Slide 49: Vinpearl 2Q2021 Highlights
49 Vinpearl 2Q2021 Highlights Hospitality Operational Highlights Revenue (VNDbn) Quarterly Room Nights Sold (‘000) Opening of new super complex Phu Quoc United Center 809 240 753 729 217 207 604 173 3Q2020 4Q2020 1Q2021 2Q2021 3Q2020 4Q2020 1Q2021 2Q2021 Positioning Highlights VinWonders New “touris
Slide 50: One Mount Group Continues to Solidify Platform
50 One Mount Group Continues to Solidify Platform VinID reaffirmed its #1 10.8mn largest loyalty platform online grocery app in users Vietnam(1) (+8.1% YoY) (+2.1% YTD) VinShop has rapidly Hanoi Nationwide presence and verified shops captured and modernized traditional retail markets Bac Ninh 54,900
Slide 51: Vinschool Pioneered in Online Education During Covid
51 Vinschool Pioneered in Online Education to Facilitate Teaching and Learning During Covid > 20,000 students LMS platform (Learning Management System) used LMS / took online exam in • First educator in Vietnam to roll out an online platform in significant scale school year 2020-21 • Developed based
Slide 52: Key Initiatives for 2021
Key Initiatives for 2021
Slide 53: Key Initiatives for 2021
53 Key Initiatives for 2021 01 Industrials & Technology • Launch 5 e-motorcycle models and prepare to launch 3 new smart EV & ICE car models • Start commercial operation of VinBus in 2H2021 • Prepare for international expansion: manpower, establishment of commercial infrastructure • VinID: Promote a
Slide 54: Financial Summary
Financial Summary VinFast electric car – VF e35 model
Slide 55: Income Statement Highlights
55 Income Statement Highlights Revenue(1) Gross Profit(1) EBITDA(1) (2) Profit After Tax(1) (VNDbn) (VNDbn) (VNDbn) (VNDbn) 27.3% 33.7% 24.9% 25.3% 24.8% 25.9% 36.0% 25.9% 33.5% 29.9% 137,380 36,778 35,639 34,492 34,201 107,794 102,254 13,815 29,376 27,943 99,058 11,399 66,425 18,698 88,497 62,472 1
Slide 56: Revenue Performance – VAS
56 Revenue Performance – VAS Property sale(1) Leasing Hospitality & Entertainment Services(2) (VNDbn) (VNDbn) (VNDbn) 99,058 88,497 7,789 6,792 6,662 6,670 66,425 5,559 38,460 3,156 3,383 3,711 34,439 2,031 1,349 2018 2019 2020 1H2020 1H2021 2018 2019 2020 1H2020 1H2021 2018 2019 2020 1H2020 1H2021
Slide 57: Gross Profit and Margin – VAS
57 Gross Profit and Margin – VAS Property sale(1) Leasing Hospitality & Entertainment Services(2) (VNDbn) (VNDbn) (VNDbn) 13.4% 41.7% 45.1% 53.7% 57.8% -5.0% 1.6% 45.3% 50.6% 31.2% 51.1% 53.8% 49.0% 53.9% 45.1% 44,828 3,654 3,249 35,643 3,267 2,838 27,623 1,304 32 609 891 22,219 1,825 (945) 17,440 1
Slide 58: Balance Sheet Highlights
58 Balance Sheet Highlights Debt(1)(2)(3) / Operating EBITDA(4) Total Assets & Total Equity(6) Breakdown of Total Assets (x) (VNDbn) (%) 8.9% 8.7% 8.1% 7.9% 25% 3.1x 3.1x 422,504 418,948 3.0x 401,156 2.8x 30% 2.6x VND418.9tn 13% 2.3x 2.3x 2.2x 267,381 11% 16% 5% 144,388 135,853 118,443 85,591 Proper
Slide 59: Balance Sheet Highlights
59 Balance Sheet Highlights Breakdown of Total Debts Total Debt Breakdown By Currency Total Debt Breakdown By Interest Rate (%) (%) (%) Domestic bond 32.4% Bank loans Fixed (2) 3.3% VND (1) 43.6% 73.1% VND138.2tn USD VND138.2tn VND138.2tn 26.9% Exchangeable bond 8.2% Syndicated loan Other 51.0% Floa
Slide 60: Leverage, Coverage and Other Ratios
60 Leverage, Coverage and Other Ratios 1H2021 FY2020 Change Leverage ratios Net debt(1)(2) / Operating EBITDA(3) 2.3x 2.2x 0.1x Net debt(1)(2) / (Total assets – cash & ST investments(2)) 26.2% 23.5% 2.7 ppts Coverage ratios Recurring revenue / Interest expense(3) 4.5x 3.4x 1.1x Operating EBITDA / In
Slide 61: Company Information
Company Information ..”
Slide 62: Vingroup
62 Vingroup Vingroup Joint Stock Company (“Vingroup” or “the Group”) is the largest listed companies in Vietnam, as measured by market OFFICES capitalization with VND358.1 trillion (c.USD15.5 billion) as at September 1, 2021. HANOI HEADQUARTERS Vingroup today bases its strategy on the principles of