Vingroup - Corporate Presentation May 2020 PDF
Vingroup - Corporate Presentation May 2020 PDF
Corporate Presentation
May 2020
Important Notice
IMPORTANT: The information contained herein is preliminary and subject to make an independent determination of the suitability, merits and
to change without notice, its accuracy is not guaranteed, has not been consequences of investment in the Company.
independently verified and may not contain all material information
concerning Vingroup Joint Stock Company (the “Company”) and its This presentation contains “forward-looking statements”. These forward-
subsidiaries (the “Group”). You should not rely upon it or use it to form the looking statements involve known and unknown risks and uncertainties,
basis for any investment decision or commitment whatsoever. many of which are beyond the Company’s control and all of which are
based on management’s current beliefs and expectations about future
None of the Company, its shareholders, or any of their respective affiliates, events. Forward-looking statements are sometimes identified by the use of
directors, officers, employees, agents, advisers or any other person makes forward-looking terminology such as “believe”, “expects”, “may”, “will”,
any representation or warranty (express or implied) or accepts any “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “targets”,
responsibility or liability for the accuracy or completeness of this “plans”, “predicts”, “continues”, “assumes”, “positioned” or “anticipates” or
presentation or any or all of the information in this presentation or the negative thereof, other variations thereon or comparable terminology.
otherwise made available. It is not the intention to provide, and you may These forward-looking statements include all matters that are not historical
not rely on these materials as providing, a complete or comprehensive facts. Forward-looking statements are not guarantees of future
analysis of the financial or trading position or prospects of the Group. No performance. These forward-looking statements speak only as at the date
part of this presentation shall form the basis of or be relied upon in of this presentation, and none of the company, its shareholders, or any of
connection with any contract or commitment whatsoever. Further, nothing their respective affiliates, directors, officers, employees, agents, advisers or
in this presentation should be construed as constituting legal, business, tax any other person undertakes to update or revise any forward-looking
or financial advice. You should conduct such independent investigations statements as a result of new information or to reflect future events or
and analysis of the Group as you deem necessary or appropriate in order circumstances.
2
Vision and Values
Vision Values
Vingroup aims to develop into a leading Technology – Industry – CREDIBILITY INTEGRITY CREATIVITY
Services group in the region. We will continuously innovate,
create sustainable ecosystems of quality products and services,
SPEED EXCELLENCE COMPASSION
to improve the lives of the Vietnamese people, and elevate the
position of Vietnamese brands globally.
3
Comprehensive Ecosystem of Dominant Businesses Addressing
All Consumer Needs
Vingroup’s suite of offerings effectively captures the entire Vietnamese consumer’s wallet
Residential Housing(1) 17% Hospitality and Entertainment(3) 15% Retail Mall(4) 19%
● Vinhomes luxury, high-end and mid- ● Vinpearl premium resorts and hotels, ● Vincom “all-in-one” shopping,
range integrated residential properties high-end amusement parks and world- entertainment and dining malls
with comprehensive facilities class golf courses ― 79 retail malls operational
― 121,900 residential units sold(2) ― 16,800 rooms of hotels and beach
villas operational
● VinSmart advanced technology and ● Vinmec international hospitals and ● Vinschool’s high-quality K-12 school
smart devices clinics system
― 12 smartphone models launched to- ― 7 hospitals, 5 clinics ● VinUniversity’s advanced higher
date education(6)
― Sold 456,000 smartphones in ― 32 schools operational
1Q2020
DIGITAL PLATFORM
(2)
Residential
Real Estate
1993 – 2006 Retail Malls
(3)
Industrials
17.4
11.0
Hospitals and (6)
8.7 Clinics
6.9
Services
K-12 Schools and University (7)
4.6
4.1
3.3
2.5
1.7 Supermarkets/ Minimarts/
0.9 (8)
0.1 0.3 Convenience Stores
1993 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mar-20
Automobiles
Education
Residential
(1)
Consumer Retail
Retail Malls
Preserving the
start-up mindset
Hospitality and
Entertainment
7
Source: Company Information
(1) Non-controlling interest in a subsidiary of Masan Group which owns MasanConsumerHoldings (consumer products) and VinCommerce (retail)
Developing Modern Industry Technology and Innovation
Capabilities to Bring Vingroup into the
to Drive Vingroup’s Global Future
Expansion
Global technology and manufacturing leaders
Robust Macroeconomic Tailwinds have already migrated operations into Vietnam
Industry
Rapidly Increasing
Solid Education – Urbanization – 37%
Literacy rate of 95%(3) living in cities
(40% by 2025E)
US$10.0bn (1)
73.7% 51.2% 100%
Automobiles Hospitals and Clinics
Residential
US$2.3bn (1)
non- (2)
100.0% Hospitality and 80.0% Technology R&D and IT controlling
Entertainment Solution Development Consumer Retail
51.2%
Customer Base Platform
01 Largest Ecosystem in
Vietnam with Market
Leadership Across Multiple
02 Dominant Integrated Real
Estate Developer, Owner and
Operator
03 Favourable Macro-economic
Trends to Drive Vietnam’s
Consumption Growth
Businesses
10
Key Investment Highlights
11
01 Largest Ecosystem Comprising of Multiple Market Leaders
Launched In One Year After Launch Today(1) Position
Real Estate
2004 1 mall 79 operational malls
(4)
9
6
4
2
(1)
02 Transforming VinID into a Customer Base Platform
(2)
9.6mm members
(>8m customers)
(>7m customers)
Healthcare
Real Estate Education
Vingroup Agriculture
(>2m customers) Smart Device Ecosystem
(>2m customers)
Commerce Automobiles
Hospitality
(>50m users)
(>50m customers)
(>10m customers)
13
Source: Company information as of 31 March 2020, unless otherwise stated.
(1) Non-controlling interest in a subsidiary of Masan Group which owns MasanConsumerHoldings and VinCommerce
(2) As of 31 Mar 2020
Key Investment Highlights
14
02 Dominant Integrated Real Estate Developer, Owner and
Operator
Unrivalled nation-wide land bank to support Vingroup’s growth and sustainability
HOSPITALITY AND
RESIDENTIAL, OFFICE AND INDUSTRIAL RETAIL MALLS ENTERTAINMENT
RESIDENTIAL
165mm US$22.9bn US$3.4bn 79 16,800
sqm of residential Addressable market(2) Unbilled bookings Operational malls Total rooms in hotels
land bank(1) and beach villas
Vinhomes 38.8%
165
Land & Houses 19.1%
7 7 5
Novaland 15.4%
Vinhomes Novaland Nam Long Khang Dien
BSD 9.6%
17
Expansion into Industrial Real Estate to Capitalize on the
Attractive Sector Tailwinds
01 Leveraging Vinhomes’ Expertise in Sourcing/ Acquiring Land 02 Additional Pillar of Vinhomes’ Medium Term Strategy to
as well as Real Estate Development Diversify and Increase Recurring Revenue and Provide More
Avenues for Capital Recycling
Vinhomes’ Superior Industrial Real Estate End-to-end Value Diversification Across the 3 Segments
Chain
18
02 Vincom Retail: Largest & Fastest-Growing Retail Mall Platform
Vincom Retail’s dominant position and nationwide scale makes it Vietnam’s “Go-to” platform for international and
established local brands
20 Ho Chi Minh
City
nts or
densely
outside the
central
Hanoi and
Ho Chi Minh
… and many more
Malls populated core of City as well
HO CHI MINH CITY
areas in key large cities as the central
CENTRAL cities core of ANCHOR
13 VIETNAM smaller
towns and
Malls provinces
17
Malls
Distinct product lines a holistic coverage across different (Total number of rooms)
46% Room
Night 68% Total Visitors
Revenue 29% Growth (2) customer segments
Growth(1) Growth(1)
DA NANG
Rooms 2,625 16,782
Young Couples Friends and Couples &
Facilities 7 & Group Family Savvy Travelers 15,986
Lang Quang Ninh
Brands Vinpearl Luxury Son Travelers
present Vinpearl Resort
Ha Nam
VinWonders
6,248
Vinpearl Golf Thanh Hoa
Vinpearl Condotel
6,248
Cua Hoi
5
Ha Tinh
NHA TRANG
Rooms 6,130 Quang
Binh 9,750
Facilities 10
Hue
Brands Vinpearl Luxury
present Vinpearl Resort DA
Vinpearl Discovery NANG
5,868
VinWonders 5
Vinpearl Golf Hoi An 5,975
Vinpearl Condotel
10,534
9,738
RESORTS & HOTELS RESORTS & HOTELS
2,781
NHA 4,029
PHU QUOC TRANG
1,500
Rooms 4,884 Tay Ninh
PHU
3,882
Facilities 9 QUOC
3,194
2,529
Others
Brands Vinpearl Luxury Can Tho
present Vinpearl Resort
Vinpearl Discovery
VinWonders Current projects 2015 2016 2017 2018 2019
Vinpearl Golf
VinOasis
Hotel rooms Beach villa rooms
21
03 Strong Macro Tailwinds
Real GDP growth 2019 - 21E CAGR Middle income population(1) growth Private consumption as % of GDP in Disposable income per capita (US$)
(%) 2019 - 21E CAGR (%) 2019
17.0% ?
4.7%
76.5%
VIETNAM
68.2%
68.2% 1,822 1,958 2,148
4.1%
48.9%
PHILIPPINES
2,646
2.3%
36.0%
603
6.0%
1990A 2021E
2.1% 2.2%
1.7% 1.8%
THAILAND
4,289
(0.8%) (0.5%)
909
Malaysia
Vietnam
Philippines
Malaysia
Indonesia
Thailand
Singapore
Vietnam
Philippines
Indonesia
Singapore
Thailand
Malaysia
Vietnam
Philippines
Indonesia
Thailand
Singapore
1990A 2021E
Car ownership per 1,000 people Vietnamese car sales projection Smartphones per household Smartphone sales in Vietnam
(‘000 unit/year) (1) (‘000 units)
34.3x
371
4.0 19,350
790 334
18,790
306
280
2.9 18,206
255
2.6
230
17.4x 17,623
8.9x 1.4
16,440
204 1.0
23
Malaysia
Vietnam
Philippines
Indonesia
Thailand
Singapore
Vietnam Thailand Developed United 2019A 2020E 2021E 2022E 2023E 2024E 2019A 2020E 2021E 2022E 2023E 2024E
Countries States
Increasing household healthcare Increasing household education Domestic and international tourist
expenditure from aging population spending as more families can afford arrivals increasing at a rapid pace
and rising disposable income quality education
(US$bn) (US$bn) (mm)
International tourists
Total
117.4
6.1 5.1
106.0
21.5
5.5 4.6
95.4
4.9 4.1 20.1
85.4
4.4 3.7 18.8
76.2
4.0 3.3 17.6
67.6
3.5 2.9 16.4
15.2
95.9
85.9
76.6
67.9
59.8
52.5
2019A 2020E 2021E 2022E 2023E 2024E 2019A 2020E 2021E 2022E 2023E 2024E 2019A 2020E 2021E 2022E 2023E 2024E
25
04 Leading Brand With Mass Recognition
Most Loved and
Respected Brands Best Designs
Brand Finance 2019 International Property Awards 2018
● Vietnam’s Top 50 Most Valuable Brands ● World's Best Property – Vinhomes Riverside
Vietnam Report 2019 Asia Pacific Property Awards
● No.1 in Top 10 Real Estate Developers in Vietnam ● Vietnam’s Best Retail Development (2019) – Vincom Center
Vietnam Tourism Awards 2018 Landmark 81
● Top 10 Five-star Hotels in Vietnam, Vietnam Top Resort ● Best Mixed-Used Development (2019) – Vinhomes Ocean Park
and Best Hospitality Developer in Vietnam ● Vietnam's Best High-Rise Building (2017) – Vinhomes
AUTOBEST 2018 Metropolis
● “A Star is Born” Award ● Vietnam's Best Architectural Building (2017) –
Landmark 81
● Vietnam's Best Mixed-Used Development (2016) –
Vinhomes Central Park
26
04 VinFast is Vietnam’s Only Automobile Brand
VinFast delivered its first e-motorcycles within 15 months from inception and its first cars by Jun 2019
Vietnam’s Largest and Most Advanced Automobile Production Facility Nov 2018
● Launch and delivery of VinFast’s first e-motorcycle model
Mar 2020
● Introduce 18 service centers in Vincom Retail’s shopping malls
Strategic Partnership with Industry Leaders
GLOBALLY RENOWNED STRATEGIC PARTNERS
8.1% 8.5%
7.7%
2nd Bee, Star, Joy 2+ and Live (3Q2019) 6.1% 6.2%
Round
3rd Bee 3, Active 3, Joy 3 and Star 3 (Dec 2019 – Feb 2020)
Round
Week Week Week Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 6 7 8 9 10 11 12 13
02 Strategic Partnership with Industry Leaders 03 Developing an IoT and Smart Devices Ecosystem
Strategic Technology Partners
28
Source: Company information as of 31 March 2020.
(1) Market share and ranking according to GfK statistics.
Key Investment Highlights
29
05 Visionary Management With Proven Track Record
Mr. Pham Nhat Vuong
Chairman of the Board of Directors
● Holds a Bachelors Degree in Geological Economic Engineering, graduated from Moscow Geology University in Russia
● Long track record as an entrepreneur both in and out of Vietnam, founded Technocom Limited Company in Ukraine, which was sold to Nestle S.A. in 2010
● Established Vinpearl in 2001 and Vincom in 2002
● Founder and largest single shareholder in Vingroup
● Recognized as Vietnam’s first billionaire by Forbes Magazine (2012), and retained the position as the billionaire with the highest networth in Vietnam since then
Board of Directors
Ms. Pham Thuy Hang Ms. Pham Thu Huong Ms. Nguyen Dieu Linh Mr. Nguyen Viet Quang
Vice Chairwoman Vice Chairwoman Vice Chairwoman Vice Chairman cum CEO
Mr. Le Khac Hiep Mr. Marc Villiers Townsend(1) Mr. Prof. Ling Chung Yee Roy(2) Mr. Park Won Cheol(3)
Vice Chairman cum Independent Member Independent Member Independent Member Member
Senior Management
Ms. Thai Thi Thanh Hai Ms. Le Thi Thu Thuy Ms. Le Mai Lan
● Vice Chairwoman ● Vice Chairwoman ● Vice Chairwoman
● 26+ yrs experience ● 24+ yrs experience ● 23+ yrs experience
● 6+ yrs with Vingroup ● 12+ yrs with Vingroup ● 6+ yrs with Vingroup
Management
Mr. Nguyen Viet Quang Ms. Mai Huong Noi Mr. Pham Van Khuong Mr. Vo Quang Hue
● CEO ● Dy CEO ● Dy CEO ● Dy CEO
● 24+ yrs experience ● 29+ yrs experience ● 37+ yrs experience ● 40+ yrs experience
● 10+ yrs with Vingroup ● 14+ yrs with Vingroup ● 18+ yrs with Vingroup ● 3+ yrs with Vingroup
Ms. Nguyen Thi Diu Ms. Duong Thi Hoan Mr. James B. DeLuca Ms. Anne Pham
● Dy CEO ● Dy CEO ● Dy CEO ● CIO
● 24+ yrs experience ● 21+ yrs experience ● 41+ yrs experience with ● 15+ yrs experience
● 6+ yrs with Vingroup ● 13+ yrs with Vingroup GM as EVP of Global ● 7+ yrs with Vingroup
Manufacturing
● 3+ yrs with Vingroup
Ms. Tran Mai Hoa Ms. Vu Tuyet Hang Ms. Thai Thi Thanh Ms. Le Thi Thu
Mr. Pham Thieu
Hoa CEO CEO Hai Thuy
CEO CEO CEO
3 of 9 2 of 6 2 of 6
directors are directors are directors are
independent independent independent(1)
32
06 Access to Multiple Sources of Capital
International and domestic recognition of Vingroup’s success has led to multiple sources of funding being available to
Vingroup
Convertible /
Exchangeable Bond
Markets
Sovereign Wealth
Funds & Private Equity
International
Development Banks
Banks Local Vietnam Bond
Markets
Vingroup is continuously exploring alternative sources of capital so as to maintain an optimal capital structure
and efficient overall cost of funds for the Group
Source: Company information as of 31 March 2020. 33
06 Strong Fund Raising Track Record
US$8.2bn
raised through 18 transactions International Loan Exchangeable Bond Convertible Preference Shares
since 2013 Largest EB in South East Asia in the past Issuance
3 years
34
Source: Company information as of 31 March 2020, unless otherwise stated.
Technology Driven Growth Strategy
35
VinTech is to Become the Centre of Technological Innovation for
the Group
“Vingroup will become a leading technology company in 10 years” – Chairman Pham Nhat Vuong
Artificial Ventures,
Robotic
Intelligence/ Data Cloud Applied Software
Cyber Security Process Innovation &
Machine Analytics Computing Material Development
Automation Incubator
Learning
● Chatbot systems ● Data analytics to ● Cloud-based ● Security pentest / ● Advanced ● SAP Robotic ● System ● VinTech
save energy and Hospitality audit material research Process Integration Innovation Fund
● Computer Vision/ improve Management laboratories Automation for services for for applied
Smart Cameras customer service solutions ● Defense and Vingroup enterprise research projects
response service software and startups
Cyber security defense and protection services, and FIDO2-Certificated authenticator product, a leading security authentication technology
Successfully developed several applications to enhance productivity and optimize performance, such as computer vision technology, language processing,
construction site management app and digital signature
Wearable device Vantix-Band and software system for tracking/analysing activities and improving productivity
02 03
Research Sponsorship
AI and computer vision researches VinAI booth at NIPS in Canada. NIPS is a world-leading AI
conference
Several articles published at leading international conferences
(ICCV 19, NIPS 19 and AAAI Conference on AI 2020) Funded multiple basic science research projects, applied and
start-up research projects and granted 158 masters / PhD
Numerous Common Vulnerabilities and Exposures (CVE) scholarships
published on National Vulnerability Database of the National Institute
of Technical Standards (US) Launched the second round of applied research and start-up
sponsoring program and received 240 applications
37
Source: Company information as of 31 December 2019.
Vietnam is Well Placed to Overcome Any
Headwinds from Covid-19
38
Stable Vietnam Macroeconomic Developments
Vietnam enjoys strong and stable macroeconomic fundamentals which will not only give it considerable flexibility to absorb
any external or fiscal shocks due to Covid-19 impact, but also enable the Government to provide necessary concession or
subsidy to help the companies and its people to withstand the present situation
Vietnam’s exchange rate has been among the most stable in the region Continued strong trade surpluses
(Indexed chart) (Trade surplus, US$ bn)
9.9
6.8
1.6 1.9
Steady growth in foreign exchange reserves Improving fiscal position over the years with falling % of public debt
(Foreign exchange reserves, US$ bn) (Public debt as % of GDP, %)
72.9 50.3
48.4
55.5
49.1
45.9
36.5
42.2
39
Source: FactSet, EIU, public information.
Effective Management of the Covid-19 Situation in Vietnam
Early, decisive, and effective actions by the Government of Vietnam has led to Vietnam being able to start easing social
distancing measures on 23 April 2020
● On 24 January 2020, Vietnam activated the Public Health Emergency Operations Centre to coordinate all information and provide
direction to control the outbreak, immediately after two Covid-19 infection cases in Vietnam were confirmed on 23 January 2020
● Since then, the Government of Vietnam has ordered strict and aggressive application of infection prevention and control measures
since the first confirmed cases
● Vietnam continues to ensure that it is well prepared for a potential increase in demand for healthcare facilities by enhancing the
readiness of its health care facilities and community
● The Government of Vietnam has also implemented various measures aimed at containing the spread of the virus, such as
enforcing social distancing, putting a stop to social events and gatherings of over 20 people, and regular disinfection of public
places such as shopping centers, parks, and tourist areas
● Vingroup has been in compliance with these preventive measures to help minimize the spread of the virus within its facilities /
locations / operations
● The Covid-19 situation has been relatively under control with 261,004 tests conducted, 314 confirmed cases in 30 / 63 cities and
provinces, 260 recovered cases and 0 deaths.
Source: WHO, Public information, Vietnam’s Ministry of Health. Information obtained as of 16 May 2020. 40
Supporting Policies by the Government of Vietnam for Corporates
The Government of Vietnam and commercial banks have rolled out a series of measures to help corporates weather the
Covid-19 situation
• Value added tax, corporate income tax and land premiums payables will
01 Delaying tax Approved / be deferred for 5 months. As a result, Vingroup will be able to defer
and land fee 180 8.2 Implementation corporate tax payment of VND7.2tn in total
payments commenced
• Real estate developers are included in the list of eligible businesses
• 5 February – 5 March: Beginning – Footfall VND300bn support package has been spent by Vincom Retail in Reopened all 79 shopping malls after the
decreased 30% YoY. Tenants’ revenue 1Q2020 to support tenants and a similar package will be provided in social distancing order was lifted on 23
decreased 11% - 47% YoY 2Q2020 April
• 5 March – 27 March: Breakout – Footfall Connect tenants with online service providers and online From 23-26 April, average footfall
decreased 54% YoY. Tenants’ revenue platforms: Issued 47,814 vouchers via VinID app. Supported 167 stores/ recovered to ~75% of March levels
decreased by 46 – 90% YoY tenants with online sales, cooperated with 3 partners: OneID, Grabfood, (before mandatory social distancing was
• 28 March – 22 April: Social distancing – Now implemented)
Temporary closure of 79 malls, only VinMart Ensure a safe shopping environment for customers with thermal
supermarkets, Medicare, and banks remained temperature screening and increased sanitation/ disinfecting measures
open Implement cost saving measures such as reducing overtime pay, utility
costs and advertising/ promotion expenses, deferring constructions and
renovations and deferring VAT, CIT and annual land fee payments
Revisit plans for new malls openings to ensure financial viability in near-
term
• 4 March – Temporary closure of 7 hotels / Implement cost-saving measures: Reopened 13 hotels and resorts, 2
resorts ‒Negotiate with the suppliers on price reduction and payment-term Vinpearl Golf facilities and 2 amusement
• 21 – 31 March – Temporary closure of another extension parks on 28-29 April in time for the 30
12 hotels / resorts April – 3 May vacation
‒ Negotiate with banks on interest rate reduction and repayment
• April – All hotels / resorts temporarily closed deferral Reopen an addition of 9 hotels and
to adhere with the social distancing policy resorts and the remaining Vinpearl Golf
‒ Suspend outsourced services such as medical and entertainment
issued by the Government facilities and amusement parks by the
services
end of May
‒ Minimize administrative expenses
Assist customers to reschedule their bookings
Integrate Vinpearl and agents’ booking systems to accelerate
booking processes when the situation improves
Working on post-impact promotional packages with all three domestic
airlines in anticipation of pent-up demand for domestic tourism
42
Source: Company information as of 8 May 2020.
Preliminary Impact Assessment of Covid-19 on Vingroup (Cont’d)
Impact assessment Business initiatives Recovery status
• VinFast plant – operations are temporarily Research innovative marketing campaigns and special promotions to All showrooms and authorized dealers
suspended from 6 April to 30 April due to be launched post easing of social distancing measures were reopened on 23 April
compulsory lockdown order from the
Conduct in-depth training for skill upgrades and technology transfer to Production resumed from 4 May
government
gradually reduce operational costs
• Showrooms and authorized dealers – ordered Accelerate development of VinFast’s supporting industry (i.e.
to temporarily close following the issuance of
Supplier Park) to mitigate supply chain risks and reduce costs
the Government’s social distancing policy
Optimize inbound/ outbound transportation costs, reduce outsourced
expenses, stricter monitoring of energy consumption
• Limited impact to VinSmart’s supply chain Prepare sales plan with different scenarios but stocking sufficient parts Minimal impact
due to higher level of stock parts vs. peers to avoid disruption in the event of any surge in demand
• Products are competitive and continue to enjoy Mitigate supply risk by using seaway transportation to supplement
good absorption rates in line with growth in logistics transportation via land and air
market share
Join forces with major retailers to organize major retail sales events.
• Production capacity of c.23 million phones/ year Customers will enjoy complementary delivery services and discounts for
is sufficient for internal use and contract online purchases
manufacturing, minimizing need for
Collaborate with VinFast R&D institutes to help manufacture invasive
additional capex
ventilators. VinSmart has sent the first two trial ventilator models for
feedback from the Ministry of Health in order to get certified for mass
production in mid-May
• Positive impact as customers adopt / increase Actively onboard and collaborate with partners to promote O2O No disruption
usage of online channels shopping
• Number of transactions surge due to social Promote online shopping through the Grocery and Shopping features on
distancing measures the VinID app; expand offerings/ functions to allow customers to shop
directly on the VinID app (not just claim vouchers and accumulate
points)
Offer VinID Pay e-wallet service that allows electricity, water and cable
TV online payments to help customers avoid direct contact with cash
43
Source: Company information as of 8 May 2020.
Key Initiatives for 2020
44
Key Initiatives for 2020
01 Real Estate and Social Services
● Continue to sell units in 3 launched mega projects and consider launching low rise component at Vinhomes Wonder Park through direct and online channels
● Commence a 10-year roadmap of developing commercial property (office) and industrial parks to help Vinhomes generate stable recurring income
● Reduce crowds at Vinhomes sales premises by enabling remote signing of contracts/ delivery notes
● Push in-house digital transformation, i.e. township management, and digitalize back office functions such as accounting and HR
● Leverage land bank as a further source of liquidity if Covid-19 prolongs
● Support tenants as much as possible, through support package/ rent waivers and connecting tenants with online platforms and providers
● Ensure Vincom malls continue to be preferred shopping destinations post Covid-19 through promotional campaigns
● Manage pipeline expansion with longer term nationwide expansion strategy to reach 158+ malls (representing 5 million sqm GFA) located in all 63 cities and provinces
by 2026
● Opened 16 facilities on 28-29 April and target to gradually open the rest until August, coupled with flexible booking to stimulate demand
● Minimize capex spending by keeping only essential capex while deferring spending as long as possible to reduce burden on cashflow, coupled with cost cutting
initiatives such as implementing shift work for staff, reducing spending on training, traveling, and transportation, and renegotiating with banks to lower interest rates
and accept longer payment schedules
● Promote digital transformation to enhance customer experience, leverage on key products such as stem cell, gene technology
● Develop new models and products to shift from cure to prevention
● Launch 4 new Vinschool campuses and digitalize all curriculum into blended learning of online and offline channels
● Inaugurate VinUni at Vinhomes Ocean Park; with plans for the first enrolment in Fall 2020
● Launch new phone models to cover more segments, targeting market share whilst continuing to explore exporting opportunities
45
Source: Company information.
Financial Summary
46
Income Statement Highlights – VAS
01 Revenue 02 Gross Profit 03 EBITDA(2) 04 Profit After Tax
(VNDbn) (VNDbn) (VNDbn) (VNDbn)
30.1% 24.7% 29.1% 25.9% 12.9% 18.5% 19.3% 24.2% 39.2% 62.0%
121,894
130,036
37,551
31,507
64,505
28,951 7,717
89,350
26,554
83,272
23,532 6,238
5,655
62,482
16,552
65,531
9,528
1,942
38,623
5,805
15,368
26,868
14,797 3,826
6,883 1,986 505
8,430
8,485
6,367
2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020
Gross profit margin(1) EBITDA margin
Recurring revenue
Property sales
Source: Audited VAS Consolidated Financial Statements for 2017, 2018 and 2019, Unaudited VAS Consolidated Financial Statements for 1Q2020. 47
Note: 1Q2019 numbers are pro-forma, excluding the retail segment and assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
(1) Adjusted gross profit margin removing one-off / extraordinary projects, such as Landmark 81 (Vinhomes Central Park) and Vinhomes Thang Long.
(2) Adds back foreign exchange losses/ (gains).
Revenue Performance – VAS
01 Property Sale 02 Leasing 03 Hospitality & Entertainment Services(1)
(VNDbn) (VNDbn) (VNDbn)
7,759
6,792
83,272 6,670
5,559
62,482 64,505
4,410 4,960
2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020
3,025
2,631
2,063
1,852 3,259
1,450
1,013
669 582 1,232
512 362 556
2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020
Source: Audited VAS Consolidated Financial Statements for 2017, 2018 and 2019, Unaudited VAS Consolidated Financial Statements for 1Q2020. 48
Note: 1Q2019 numbers are pro-forma, assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
(1) Adjusted for the sales of beach villas to reflect underlying business performance.
Gross Profit and Margin – VAS
01 Property Sale(1) 02 Leasing 03 Hospitality & Entertainment Services(2)
(VNDbn) (VNDbn) (VNDbn)
54.7% 51.1% 53.8%
52.4% 51.1% 51.5%
38.9% 39.1% 41.5%
32.0%
22.5% 19.4%
15.5% 13.4% 16.4%
34,518
3,654
(246) 25 (5.6%)
(1,146)
308
205
(44.1%)
107 117 (5,039)
80
60 (54.8%)
(82)
2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020
(11)
(68) (106) Cash gross profit
Source: Audited VAS Consolidated Financial Statements for 2017, 2018 and 2019, Unaudited VAS Consolidated Financial Statements for 1Q2020. 49
Note: 1Q2019 numbers are pro-forma, assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
(1) Adjusted gross profit margin removing one-off / extraordinary projects, such as Landmark 81 (Vinhomes Central Park) and Vinhomes Thang Long.
(2) Adjusted for the sales of beach villas to reflect underlying business performance.
Balance Sheet Highlights – VAS
01 Debt(1)(2) / EBITDA(3) 02 Total Assets & Total Equity 03 Breakdown of Total Assets(5)
(VNDbn)
25%
34%
288,127
VND413.6tn
12%
213,792
11%
4.1x 15%
3.9x 4%
3.2x 3.4x
3.1x 120,589 122,112
3.0x 2.8x
2.4x 99,167
Property sale
Leasing
Total Debt / EBITDA Net Debt / EBITDA Total assets Total equity
Source: Audited VAS Consolidated Financial Statements for 2017, 2018 and 2019, Unaudited VAS Consolidated Financial Statements for 1Q2020.
(1) Total debt is equal to interest-bearing loans and borrowings.
(2) Net debt is equal to total debt, less cash and cash equivalents and short-term investments. 50
(3) On a LTM basis for recurring revenue, EBITDA and interest expense, calculated using pro-forma 2019 figures, assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
(4) Inclusive of hedging expenses.
(5) Others refers to agriculture and others. Assets managed on a Group basis refers to assets such as long term investment, deposits for transfer investment and financial obligation guarantee, among others.
Balance Sheet Highlights – VAS (cont'd)
Diversified Funding Sources –
01 Breakdown of Total Debt 02 Total Debt Breakdown By Currency 03 Total Debt Breakdown By Interest Rate
VND
74.4%(1)
Domestic bond
Fixed
34.7% (2)
33.4%
Bank loans,
9.3% USD
25.2%
Exchangeable
bond, 7.7%
EUR
0.4% Floating
Syndicated loan 66.6%
44.5%
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Source: Unaudited VAS Consolidated Financial Statements for 1Q2020.
(1) Includes US$ debt which is hedged for foreign exchange rate purposes.
(2) Includes floating rate debt which is hedged for interest rate purposes.
Key Credit Metrics and Debt Maturity Profile – VAS
01 Recurring Revenue / Interest Expense(1) 02 EBITDA / Interest Expense(1) 03 Debt Maturity
(VNDbn)
Average debt
maturity:
3.51 years
3,618
Vinhomes’ debts):
42,353
4.16 years
Decreased due
13,778
to the absence
33,868
9.8x
of retail
23,528
segment
9.2x
10,935
8.6x
4,025
6.0x
5.3x
4.9x
4.4x
4.6x
13,409
20,971
128
24,551
19,829
12,247
1,962 1,034
2017 2018 2019 1Q2020 2017 2018 2019 1Q2020 Less than 1 1-3 years 3-5 years More than 5
year years
Syndicated loan
Corporate bond
52
Source: Audited VAS Consolidated Financial Statements for 2017, 2018 and 2019, Unaudited VAS Consolidated Financial Statements for 1Q2020.
(1) On a LTM basis for recurring revenue, EBITDA and interest expense, calculated using pro-forma 2019 figures, assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
Leverage, Coverage and Other Ratios – VAS
Leverage ratios
Net debt(1) /
29.5% 26.2% 3.3 ppts
(Total assets – cash & short-term investments)
Coverage ratios
Others
Source: Audited VAS Consolidated Financial Statements for 2017, 2018 and 2019, Unaudited VAS Consolidated Financial Statements for 1Q2020.
(1) Net debt is equal to total debt, less cash and cash equivalents and short-term investments.
53
(2) On a LTM basis for recurring revenue, EBITDA and interest expense, calculated using pro-forma 2019 figures, assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
(3) FY2019 pro-forma numbers assuming VinCommerce and VinEco were disposed and VinPro was dissolved from 1 January 2019.
(4) Inclusive of hedging expenses.
VINGROUP OFFICES
HANOI HEADQUARTERS
Vingroup Joint Stock Company (“Vingroup” or “the Group”) is the largest listed companies in Vietnam, as measured by market Number 7, Bang Lang 1, Vinhomes Riversides
capitalization with VND328.1 trillion (c.USD14.0 billion) as at 15 May 2020. Long Bien District
Hanoi, Vietnam
Vingroup today bases its strategy on the principles of sustainability and professional management to operate in three major business
segments:
Industrials
HO CHI MINH CITY BRANCH
− VinFast, the first and largest domestic comprehensive automobile-maker and electric scooter producer in Vietnam Vincom Dong Khoi – 4th Floor
72 Le Thanh Ton, District 1
− VinSmart smart electronic devices including smartphones under the Vsmart brand
Ho Chi Minh City, Vietnam
Technology
− VinTech conduct research on AI, automation and next-generation materials and employ applications of technologies accordingly
− VinID, the largest customer base platform serving the Vingroup ecosystem
− Residential Vinhomes premium apartments, villas and shophouses, mid-end real estate with integrated facilities, Happy Town –
affordable housing
− Hospitality-focused Vinpearl hotels, resorts and beach villas, and VinWonders amusement parks and conservation parks
CONTACTS
− Healthcare service provider, Vinmec (including hospitals and clinics)
Investor Relations Department
− Quality education provider Vinschool featuring the K-12 education system and VinUni non-profit private university Address: Vingroup Hanoi Office (Headquarters)
Vingroup was listed on the HOSE on 07 September 2007. More information on the Group can be found at www.vingroup.net. Email: [email protected]
Tel: +84 (24) 3974 9999 (Ext. 9462)
Fax: +84 (24) 3974 8888
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