Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Vingroup — Investor Presentation (June 2022)
43 slides from Vingroup Joint Stock's investor presentation, June 2022
Slide 1: Vingroup Corporate Presentation
VINGROUP Corporate Presentation June 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 FY2022 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) 1.5% Nationwide operations of nominal GDP in all provinces and municipalities contributed by consolidated revenue of Vingroup companies in 2021 (2) (4) US$28.0bn 41,500 employees combined market cap Largest private Vietnamese corpo
Slide 7: Track Record of Developing New Businesses Into Market Leaders
7 Track Record of Developing New Businesses Into Market Leaders US$5.2bn raised through equity transactions in the last 4 years(1) Total Assets (US$bn)(2) Position & Technology Mobility, Battery & Industrials (3) Automotive #1 Components • 1993 – Technocom was set up Real Estate • 2000 – Technocom-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$12.8bn(1) INDUSTRIALS & REAL ESTATE SOCIAL TECHNOLOGY(2) & SERVICES ENTERPRISES(3) US$12.5bn (1) 69.3% Healthcare and 74.9%-100% 51.5% Mobility Real Estate Development Education US$2.7bn (1) 51.0% Battery Cell Technology Development and Manufacturing 60.3% Retail Mall 100.0%
Slide 10: Key Competitive Advantages
Key Competitive Advantages 1 Favourable Macro-Economics in Vietnam and Across All Consumer Industries 2 Unparalleled Execution Capabilities in New Business Sectors 3 Dominant Integrated Real Estate Developer, Owner and Operator 4 Largest Ecosystem in Vietnam with Market Leadership Across Multiple Bu
Slide 11: 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
11 1. Favorable Macro-Economics in Vietnam and Across All Consumer Industries
Slide 12: Strong Macro Tailwinds
12 1 Strong Macro Tailwinds Fastest Growing Economy Fastest Growing Middle-Income One of the Highest Private Strongest Internet Economy in Southeast Asia Segment in SEA Consumption in Southeast Asia Growth in SEA Real GDP growth 2022E -2024E Middle income population(1) growth Private consumption as
Slide 13: Robust Growth Expected for Car Ownership in Vietnam and EVs Globally
13 1 Robust Growth Expected for Car Ownership in Vietnam and EVs Globally 1. Significantly Low Car Penetration 3. VinFast EVs positioned to penetrate both international EV and ICE 2021 car ownership per 1,000 people segments with our product offering 14.8x North America (US & Canada) 472.0 23x VinFa
Slide 14: Consumer Spending to Grow Across Vingroup's Key Consumer Segments
14 1 Consumer Spending to Grow Across Vingroup’s Key Consumer Segments Healthcare - Increasing Household Education - Increasing Household Tourism - Domestic And International Healthcare Expenditure from Aging Education Spending as More Families Can Number of Trips Increasing at A Rapid Population An
Slide 15: Experiencing Favorable Geopolitical Shifts
15 1 Experiencing Favorable Geopolitical Shifts • Beneficiary of global supply chain disruption Substantial total investment as % of GDP Stable FDI flow due to geopolitical shifts (2021 Actual) Registered FDI (US$ 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: Premium Auto Manufacturer Focused on Launching EVs into the Global Market
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 Established supply chain and partnerships with industry leaders, built automated manufacturing facility in ASEAN up extensive distribution network for
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 > 660 R&D professionals En
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 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 TOTAL LANDBANK 168 mn 81 15,600 sqm of site area Malls under operation
Slide 22: Vinhomes – The Leading Residential Platform
22 3 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 Access to industrial park land bank through Vingroup and Diversi
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 Outstanding Indicators Hanoi – 12 5 Vincom Centers Northern Vietnam 4 Vincom Mega Malls 43 provinces/cities (except Hanoi) – 19 • 16 Vincom Plazas 3 Vincom Plazas • 3 Vincom+ 81 malls under operation
Slide 25: Vinpearl – The Leading Integrated Hospitality and Entertainment Platform
25 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: 44 PROJECTS(1) DA NANG & QUANG NAM Rooms 2,625 Facilities 5 Group of Lang Son Quang
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 ba
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 • 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 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: Visionary Management with Proven Track Record
34 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 35: Committed to International Corporate Standards
35 6 Committed to International Corporate Standards 1. Seasoned Management Teams for Every Business Segment Ms. Le Thi Thu Thuy Mr. Shaun Calvert Mr. Hong Bae, PhD Dr. Nguyen Quang Huy CEO Dy CEO, Manufacturing Dy CEO, Technology Technology Director • 31+ yrs experience • Previous: Principal Archite
Slide 36: Covid-19 Update
Covid-19 Update
Slide 37: Businesses Are Back To Normal and on the Path to Recovery to Pre-Covid Level
37 Businesses Are Back To Normal and on the Path to Recovery to Pre-Covid Level Vietnam achieved herd immunity – Striving to bring the economy back to All businesses are back to normal pre-pandemic levels • The Vietnamese government • With the reopening of tourism activities, • VinFast holds various
Slide 38: FY2022 Outlook
' FY2022 Outlook
Slide 39: FY2022 Outlook
39 FY2022 Outlook Industrials and Technology • Roll out showrooms across Vietnam, the U.S., and Europe. Expand charging infrastructure for EV transition in Vietnam • Improved margins to come from higher sales and pre-order volumes, completion of showrooms expansion in international markets, better b
Slide 40: Financial Highlights
Financial Highlights
Slide 41: Income Statement Highlights
41 Income Statement Highlights Revenue(1) Gross Profit(1) EBITDA(1) (2) (3) Profit Before Tax (VNDbn) (VNDbn) (VNDbn) (VNDbn) 33.7% 24.9% 29.4% 22.6% 29.2% 40.5% 29.6% 32.0% 29.0% 33.3% 43,194 132,950 128,675 131,414 129,701 38,539 37,890 40,222 41,125 39,331 38,112 34,492 34,201 3,614 3,315 2,786 9
Slide 42: Leverage, Coverage and other Ratios
42 Leverage, Coverage and other Ratios LTM2022 FY2021 Change Leverage ratios Net debt(1)(2) / EBITDA 2.8x 2.4x 0.4x Net debt(1)(2) / (Total assets – cash & ST investments(2)) 29.5% 24.7% 4.8ppt Coverage ratios Recurring revenue / Interest expense(3) 4.4x 4.3x 0.1x EBITDA / Interest expense(3) 4.4x 4
Slide 43: Company Information
43 Company Information Vingroup Joint Stock Company (“Vingroup” or “the Group”): market capitalization of c.USD12.8 billion as at 17 May 2022. OFFICES Vingroup today bases its strategy on the principles of sustainability and professional management to operate in three major business HANOI HEADQUARTE