Vingroup Joint Stock Company · HOSE:VIC
Vingroup Joint Stock — Investor Presentation (January 2022)
66 slides from Vingroup Joint Stock's investor presentation, January 2022
Slide 1: Vingroup Corporate Presentation
VINGROUP Corporate Presentation January 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 Vingroup 2 Key competitive advantages 3 Covid-19 update 4 ESG initiatives in 2021 5 Performance update – 3Q2021 6 Financial highlights
Slide 4: Vingroup
Vingroup ral By fa gee
Slide 5: Unique and dominant, comprehensive live-work-play ecosystem
5 Unique and dominant, comprehensive live-work-play ecosystem #1 #1 Mobility, Sustainable Energy Real Estate Development & Smart City Solutions Vinhomes luxury, high-end and mid-range integrated residential and commercial VinFast cars and e-motorcycles designed and manufactured to international stan
Slide 6: The largest conglomerate in Vietnam, Asia's next tiger economy
6 The largest conglomerate in Vietnam, Asia's next tiger economy (1) 2.2% Most profitable (2) of nominal GDP amongst privately owned enterprises contributed by consolidated revenue of Vingroup companies in 2020 12.9%(3) Nationwide operations of VN Index (4) in all 63 provinces and municipalities (3)
Slide 7: Track record of developing new businesses into market leaders
7 Track record of developing new businesses into market leaders US$4.7bn raised through equity transactions in the last 3 years(1) Total Assets (US$bn)(2) Position Real Estate Development, (3) SmartCity, #1 Real Estate Smarthomes & IoT • 1993 – Technocom was set up (4) • 2000 – Technocom-Vingroup re
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$15.8bn(1) REAL ESTATE INDUSTRIALS & SERVICES TECHNOLOGY(2) US$15.6bn (1) 69.3% 74.9% Healthcare Real Estate Development 51.5% Mobility US$3.0bn (1) 60.3% Battery Cell Technology Development and Manufacturing 99.6% 51.0% Education Retail Mall 51.2% Digital Ecosystem 97.7% Hos
Slide 10: Key Competitive Advantages
Key Competitive Advantages 1 Favourable Macro-Economics in Vietnam and Across All Consumer Industries 2 Unparalleled Execution Capabilities in New Business Sectors 3 Dominant Integrated Real Estate Developer, Owner and Operator 4 Largest Ecosystem in Vietnam with Market Leadership Across Multiple Bu
Slide 11: 1. Favorable macro-economics in Vietnam and across all consumer industries
11 1. Favorable macro-economics in Vietnam and across all consumer industries
Slide 12: Strong macro tailwinds
12 1 Strong macro tailwinds Fastest Growing Economy Fastest Growing Middle-Income One of the Highest Private One Of The Strongest Internet in Southeast Asia Segment in SEA Consumption in Southeast Asia Economy Growth in SEA Real GDP growth 2020A -2022E Middle income population(1) growth Private cons
Slide 13: Robust growth expected for ICE in Vietnam and EVs globally
13 1 Robust growth expected for ICE in Vietnam and EVs globally 1. Significantly Low Car Penetration 3. VinFast EVs positioned to penetrate both international EV and ICE 2020 car ownership per 1,000 people segments with our product offering 15.3x 13.0x 410 North America (US & Canada) 349 23x VinFast
Slide 14: Consumer spending to grow across Vingroup's key consumer segments
14 1 Consumer spending to grow across Vingroup’s key consumer segments Healthcare - Increasing Household Education - Increasing Household Tourism - Domestic And International Healthcare Expenditure From Aging Education Spending As More Families Tourist Arrivals Increasing At A Rapid Population And R
Slide 15: Experiencing favorable geopolitical shifts
15 1 Experiencing favorable geopolitical shifts • Beneficiary of global supply chain disruption Highest level of public investment as % of GDP Stable FDI flow due to geopolitical shifts (2020 Actual) Registered FDI (US$ bn) • Supportive government policies and robust infrastructure investment 8% 0 •
Slide 16: 2. Unparalleled execution capabilities in new business sectors
16 2. Unparalleled execution capabilities in new business sectors VinFast electric car – VF e35 model
Slide 17: Vietnam's leading manufacturer of premium automobile launching EVs in global market
17 2 Vietnam’s leading manufacturer of premium automobile launching EVs in global market PHASE 1 PHASE 2 PHASE 3 Foundation (2017 – 2019) Acceleration (2020 – 2021) Go Global (2022+) Establishment of Manufacturing & Commercial Global EV Rollout Domestic market Infrastructure Smart tech and Electrifi
Slide 18: Proven track record in capturing #1 market share in Vietnam across all present segments
18 2 Proven track record in capturing #1 market share in Vietnam across all present segments VinFast e-motorcycles are currently the best-selling models in Vietnam with more than 80,000 e-scooters on the road Fadil – BEST selling car across ALL segments in Feb, May – Sep ‘21 E-Motorcycle E-segment E
Slide 19: World-class automated manufacturing facilities to meet fast growing smart EV demands
19 2 World-class automated manufacturing facilities to meet fast growing smart EV demands The most modern factory in Vietnam and the newest, biggest Established supply chain and partnerships with industry leaders, automated manufacturing facility in ASEAN built up extensive distribution network for
Slide 20: Strategic partnerships with industry leaders complement in-house R&D capabilities
20 2 Strategic partnerships with industry leaders complement in-house R&D capabilities VinFast in-house capability … …leveraging Vingroup technology ecosystem Integrated development capability Fully utilized the smart device research and manufacturing capability in the ecosystem with c.1,800 R&D eng
Slide 21: 3. Dominant integrated real estate developer, owner and operator
21 3. Dominant integrated real estate developer, owner and operator
Slide 22: Dominant integrated real estate developer, owner and operator
22 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 168mn US$22.9bn US$1.9bn 80 17,700 sqm of residential GFA Ad
Slide 23: Vinhomes – the leading residential platform
23 3 Vinhomes – the leading residential platform Largest Land Bank Delivers Sustainable Growth Superior Returns Land bank(1) (ha) Return-on-Equity(3)(%) Vinhomes 30.4% 16,800 ~3x the land bank of our next largest developers Novaland Land & Houses 18.8% 22.4% Ayala Land 7.4% 5,000 650 600 BSD 3.2% (2
Slide 24: Property development model and payment schedule built on favorable regulatory framework
24 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 25: Expansion into industrial real estate to capitalize on the attractive sector tailwinds
25 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 26: Vincom retail – the largest & fastest growing retail properties developer & 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 & QUANG NAM Rooms 2,625 Group of Affluent/ Silver Business Fa
Slide 28: 4. Largest ecosystem in Vietnam with market leadership across multiple businesses
28 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 and continual improvement
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
32 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 Best Designs Brands International Property Awards ● The Most Intelligent District – IBcon Digie Awards (2021) – Techno Park Vietnam Report 2020 Tower, Vinhomes Ocean Park ● Top 10 largest enterprises in Vietna
Slide 34: Superior brand equity fosters consumer trust and lower customer 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
35 6. Prudent financial policies and strong financial position VinFast President
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 and good execution 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 Dr. Vu Ha Van Ms. Le Thi Thu Thuy Mr. Pham Thieu Hoa Ms. Le Mai Lan CEO CEO CEO President • 24+ yrs experience • 7+ yrs with Vingroup • Percey F. Smith Chair of • 25+ yrs experience • 34+ yrs
Slide 40: Covid-19 Update
Covid-19 Update One Mount Group headquarters
Slide 41: Acceleration of vaccination rate underpinning the new normal
41 Acceleration of vaccination rate underpinning the “new normal” Speed up vaccination plan The Govt. accelerated its vaccination roll-out… ..with high vaccination rate achieved in 2 largest cities, and take-up rate expected to catch up with the world average (mn doses) mn Minimum vaccine doses requ
Slide 42: Businesses are nimbly adapting to the new normal
42 Businesses are nimbly adapting to the new normal Business impact • Minor negative growth QoQ due to • Moderate impact to retail sales. • Material impact in 3Q21 as only • Material impact, widespread lockdown in 3Q which No impact on bulk sales and necessity stores remained open • 28/34 hotels/ re
Slide 43: ESG Initiatives in 2021
ESG Initiatives in 2021
Slide 44: ESG initiatives in 2021
44 ESG initiatives in 2021 Established a sustainability corporate culture, principles of conduct to The fight against Covid guide member companies and each of its employees, and Sustainable Finance Framework to guide fund-raising activities and reporting • Organized community Covid testing and parti
Slide 45: Performance Update – 3Q2021
Performance Update – 3Q2021
Slide 46: VinFast operational highlights
46 VinFast operational highlights Performance Highlights 01 In 3Q2021, VinFast sold closed to 9,600(1) cars, bringing the quarterly 02 VinBus completed digitalization to start average sales across 3 key models achieved record high YTD2021 operation in 4Q2021 9,000 monthly avg quarterly avg • Started
Slide 47: VinFast transformation with new VF e34 launch and charging network roll-out
47 VinFast transformation with new VF e34 launch and charging network roll-out 01 VF e34 was launched in mid October, equipped with 02 Charging station network with superfast charge technology advanced technologies available • Click to learn more about ViVi – • More than 10,000 charging ports has be
Slide 48: VinFast blueprint for go-to-market success: hybrid marketing strategy
48 VinFast’ blueprint for go-to-market success: hybrid marketing strategy that combines engaging digital marketing and data-driven traditional marketing Product launch >> Customer events >> Test drive events >> Roadshow >> Store openings >> Influencer marketing New-age experiential marketing approac
Slide 49: VF e35, VF e36 successful launch at the Los Angeles Automotive Show
49 VF e35, VF e36’s successful launch at the Los Angeles Automotive Show global premier 01 Unveiled 2 new electric vehicle models 02 Impressive media coverage result thanks to unique marketing strategy. VinFast adopted of a hybrid marketing strategy that combines the best VF 8 of both traditional ad
Slide 50: One Mount Group continues to solidify platform
50 One Mount Group continues to solidify platform VinID reaffirmed its #1 11.2mn position as the largest online grocery app in users loyalty platform Vietnam(1) (+6.9% YoY) (+3.9% YTD) VinShop has rapidly Hanoi Growing network of verified shops nation-wide captured and modernized traditional retail
Slide 51: Vinhomes implemented connected smart city solutions
51 Vinhomes implemented connected smart city solutions Functions Launched 4Q2021 target In 3Q2021, VinSmart integrated highly advanced self-developed comprehensive smart city solutions 85% >> 100% into Vinhomes existing mega projects – TechnoPark Tower at Vinhomes Ocean Park Security Home Smart • Sm
Slide 52: Vinhomes operational updates
52 Vinhomes operational updates New launches at Vinhomes Ocean Park and Vinhomes Smart City were well received amidst Retail units pre-sold and deposits social distancing thanks to online events secured reached close to 2,000 units quarterly(1) Unit 5,453 2,476 1,592 1,385 • Online launching event o
Slide 53: Vincom Retail operational updates
53 Vincom Retail operational updates Leasing revenue(1) Leasing NOI(1) EBITDA(1) Vincom Retail VND bn VND bn VND bn implemented % of previous year level % of previous year level % of previous year level tenant support package, resulting 79% 89% 84% 118% 105% 45% 81% 91% 87% 132% 101% 37% 73% 94% 111
Slide 54: Vinpearl operational updates
54 Vinpearl operational updates Hospitality Operation Revenue (VNDbn)(1) Quarterly Room Nights Sold (‘000) • 28/34 hotels/ resorts stayed open by September(2) • Focused on long stay customer and utilized most of the facilities as quarantine hotel 240 753 729 217 221 604 173 417 Upgraded system • Add
Slide 55: Financial Highlights
Financial Highlights
Slide 56: Income statement highlights
56 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% 22.0% 29.4% 25.9% 36.0% 25.9% 30.3% 29.8% 137,380 36,778 35,639 34,492 34,201 107,794 102,254 13,815 29,376 27,943 27,591 92,584 27,175 25,932 99,058 85,619 1
Slide 57: Revenue performance – VAS
57 Revenue performance – VAS Property sale(1) Leasing Hospitality & Entertainment Services(2) (VNDbn) (VNDbn) (VNDbn) 7,789 99,058 88,497 6,792 6,662 6,670 5,559 66,425 4,942 60,397 58,087 4,355 3,711 2,931 1,730 2018 2019 2020 9M20 9M21 2018 2019 2020 9M20 9M21 2018 2019 2020 9M20 9M21 Healthcare E
Slide 58: Gross profit and margin – VAS
58 Gross profit and margin – VAS Property sale(1) Leasing Hospitality & Entertainment Services(2),(3) (VNDbn) (VNDbn) (VNDbn) 31.2% 53.7% 45.3% 44.1% 64.6% 51.1% 53.8% 49.0% 48.6% 51.8% 34.0% 39.1% 0.6% -10.7% 15.8% 44,828 3,034 35,643 37,501 3,654 2,270 3,267 27,623 26,657 2,838 1,304 2,400 891 21
Slide 59: Balance sheet highlights
59 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% 7.4% 26% 3.1x 3.0x 2.9x 433,603 2.8x 422,504 32% 401,156 2.6x VND433.6tn 2.3x 12% 2.2x 2.3x 267,381 11% 15% 4% 164,297 135,853 118,443 85,591 Proper
Slide 60: Balance sheet highlights
60 Balance sheet highlights Breakdown of Total Debts Total Debt Breakdown By Currency Total Debt Breakdown By Interest Rate (%) (%) (%) Domestic bond International bond Fixed (2) 31.1% VND (1) 8.1% 44.5% 71.4% Bank loans 6.4% USD VND138.4tn Other VND138.4tn VND138.4tn 28.6% 5.5% Syndicated Exchangea
Slide 61: Leverage, coverage and other ratios
61 Leverage, coverage and other ratios 9M21 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)) 25.7% 23.5% 2.2 ppts Coverage ratios Recurring revenue / Interest expense(3) 4.4x 3.4x 1.0x Operating EBITDA / Inte
Slide 62: Appendix
Appendix
Slide 63: Vinschool pioneered in online education to facilitate teaching and learning during Covid-19
63 Vinschool pioneered in online education to facilitate Teaching and learning during Covid-19 > 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 ba
Slide 64: VinFast international presence
64 VinFast 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 Source: Company information as at
Slide 65: Key initiatives for 2021
65 Key initiatives for 2021 01 Industrials & Technology • Launch 4 e-motorcycle models and prepare to launch 3 new smart EV & ICE car models • Start commercial operation of VinBus in 4Q2021 • Prepare for international expansion: manpower, establishment of commercial infrastructure • VinID: Promote a
Slide 66: Company information
66 Company information Vingroup Joint Stock Company (“Vingroup” or “the Group”) is the largest listed companies in Vietnam, as measured by market OFFICES capitalization with c.USD15.8 billion as at December 31, 2021. HANOI HEADQUARTERS Vingroup today bases its strategy on the principles of sustainab
Vingroup Joint Stock Company — Investor Presentation (January 2022) on 6ix