VINGROUP JOINT STOCK COMPANY Corporate Presentation July 2016
Contents A. Vietnam Macroeconomic Updates 3 7 B. Vingroup Overview 8 14 C. Leading Real Estate Developer and Operator 15 20 D. Dominant Modern Retail Player across all Formats 21 24 E. Financial Overview VAS 25 31 F. Financial Overview IFRS 32 38 G. Trading Performance 39 40 2
A. Vietnam Macroeconomic Updates 1. One of the Most Attractive Southeast Asian Economies 4 2. Improving Macroeconomic Conditions Supporting Growth 5 3. Favorable Long-term Outlook for Consumption and Modern Retail 6 4. Vietnam Residential Market is in the Uptrend 7 3
One of the Most Attractive Southeast Asian Economies The third most populous country in Southeast Asia (1) 2015 population (bn) One of the fastest growing economies in the region (2) 2015 real GDP growth (%) 258 101 93 68 7.0% 6.3% 5.0% 4.7% 31 2.8% 2.1% 6 Indonesia Philippines Vietnam Thailand Malaysia Singapore Vietnam Philippines Malaysia Indonesia Thailand Singapore Rising private consumption (3) 9.3% Catching up with regional peers in urbanization (4) (%) 100 Singapore 100% 80 Malaysia 75% 4.1% 4.9% 5.2% 6.1% 60 40 China 56% Indonesia 54% Thailand 50% Philippines 44% Vietnam 34% India 33% 20 2011 2012 2013 2014 2015 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 4 Sources: (1),(2) Economist Intelligence Unit (3) General Statistics Office of Vietnam (4) World Bank, Urbanization Data, 2015
Healthy Macroeconomic Conditions Supporting Growth Real GDP growth acceleration (1) Inflation and interest rates are well managed (2) 13.5% Driven by power & fuel price surges, devaluation of the currency in February and a minimum wage hike in October 5.2% 5.4% 6.0% 6.7% 5.52% 10.4% 8.7% 8.4% 8.5% 2012 2013 2014 2015 1H 2016 9.1% 6.6% 4.1% 0.6% 1.7% 2012 2013 2014 2015 1H 2016 Inflation Lending Interest Rate Disbursed FDI consistently on the rise (3) Exchange rate: VND remains resilient (4) (US$ bn) 10.5 11.5 12.4 14.5 (VND) Average devaluation: 2.8% p.a Currency has remained stable for the past 4 years 20,649 20,859 21,017 22,495 22,312 7.3 2012 2013 2014 2015 1H 2016 2012 2013 2014 2015 1H 2016 5 Source: General Statistics Office of Vietnam
Favorable Long-term Outlook for Consumption and Modern Retail Positive trends in consumer confidence (1) Consumer spending growth (2) Consumer Confidence Index (US$ bn) 89 64 78 79 68 56 51 85 91 89.3 100.4 111.6 122.3 129.8 143.3 160.1 2008 2009 2010 2011 2012 2013 2014 2015 1Q2016 2011 2012 2013 2014 2015 2016E 2017E Positive Neutral Negative Region s lowest retail space (3) 8,000 Modern retail space in SEA cities (thousand sqm), 2014 Lowest penetration rate of modern grocery retail (4) 2015 modern grocery retail % total grocery retail by value (US$ bn) 71.9% 6,000 4,000 43.1% 45.3% 2,000 28.9% 0 Bangkok Singapore Manila Kuala Lumpur Jakarta Hanoi Ho Chi Minh City Phnom Penh Yangoon 16.8% 5.0% Vietnam Indonesia Philippines Malaysia Thailand Singapore 6 Sources: (1) TNS Consumer Confidence Index (3) CBRE reports (2) Economist Intelligence Unit (4) Eurimonitor
Vietnam Residential Market is in the Uptrend Hanoi residential transactions on the rise with (Number of units sold) 8,000 6,000 4,000 2,000 high- and mid-end prices increasing slightly (US$ psm) $2,000 $1,500 $1,000 $500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2016 High-end Mid-end Low-end $0 2012 2013 2014 2015 1H 2016 High-end Mid-end Low-end HCMC residential transactions rapidly accelerating with (Number of units sold) high-and mid-end prices increasing the fastest in the last 2 years (US$ psm) 12,000 10,000 $2,000 8,000 6,000 4,000 2,000 $1,500 $1,000 $500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $0 2011 2012 2013 2014 2015 1H 2016 2012 2013 2014 2015 2016 High-end Mid-end Low-end High-end Mid-end Low-end 7 Source: CBRE Vingroup is a key beneficiary of the positive Vietnam real estate outlook
B. Vingroup Overview 1. Evolution of Vingroup 9 2. Largest Listed Real Estate Company with Diversified Consumer Sector Exposure 10 3. Ecosystem of Complementary Products and Services 11 4. Significant Focus on Recurring Revenue Streams 12 5. Experienced Management Team, Good Corporate Governance and Strong Sponsor 13 6. Vietnam s Flag Bearer in the International Capital Markets 14 8
Evolution of Vingroup 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Preserving the Start-up Mindset Total Assets ($ mm) 0 Vinpearl JSC Technocom Vincom JSC Vinpearl Resort Nha Trang $472 mm sale of Vincom Center A HCMC mall $150 mm international credit facility $200 mm international bond $200 mm Warburg Pincus investment in Vincom Retail Vincom Mega Mall Royal City & Vincom Mega Mall Times City Vinschool Royal City, Times City opened Vinpearl Land Nha Trang Vincom Center Ba Trieu Vincom Plaza Long Bien 3 new Vinpearl resorts: - Vinpearl Luxury Nha Trang - Vinpearl Golf Club Nha Trang - Vinpearl Da Nang Resort & Villas Listed on HOSE (largest real estate co.) 9 34 11 $100 mm convertible bond 11 92 180 $70 mm equity placement Vinpearl Phu Quoc Vincom Plaza Ha Long Vinhomes Central Park construction started 109 305 863 1,293 1,526 Vincom Vinpearl merger $300 mm convertible bond Vinmec Times City International Hospital (Hanoi) opened 1993 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $100 mm Warburg Pincus follow-on investment in Vincom Retail 10 new Vincom shopping malls: - Vincom Center Nguyen Chi Thanh (HN) - Vincom Mega Mall Thao Dien (HCMC) - 8 Vincom Plazas in Thu Duc, Da Nang, Can Tho, Dong Nai (HCMC), Bien Hoa, Hai Phong, etc. 3 new Vinpearl resorts: - Nha Trang Bay Resort & Villas - Ha Long Bay Resort - Phu Quoc Resort & Golf 2 new Vinmec Int l hospitals in Central Park (HCMC) and Phu Quoc VND 3 trillion bond guaranteed by CGIF 3 new Vincom Plazas in HCMC and Buon Me Thuot 1 new Vinpearl resort: - Golf Land Resort & Villas 1 new Vinmec Int l Hospital in Nha Trang Vinhomes Gardenia and Vinhomes Golden River construction started Revenues ($ mm) 9 Financials for years 2008 2015 are presented based on IFRS and financials for earlier years are presented based on VAS Revenue (US$ mn) = Revenue (bn VND)/ Exchange rate VND/US$ as of 31 December each year
Retail Leasing, Cons. Retail Residential Largest Listed Real Estate Company with Diversified Consumer Sector Exposure To create a better life for the Vietnamese people Villas, Apartments and Townhouses (Vinhomes) Resorts (Vinpearl) and Amusement Parks (Vinpearlland) Hospitality Golf Courses, Gyms and Spas Shopping Malls (Vincom Center, Vincom Mega Mall and Vincom Plaza) aâinfr Infrastructure Social Healthcare (Vinmec) Supermarkets (VinMart), Convenience Stores (Vinmart + ), Electronic Retailing (VinPro), Consumer Lifestyle (VinDS) and E-commerce (Adayroi) Education (Vinschool) Agriculture (VinEco) 10
Ecosystem of Complementary Products and Services Retail & Property Vincom quality shopping malls Largest retail portfolio in Vietnam with 950,000 sqm of retail GFA 3 Vincom Centers at prime locations in Vietnam s major cities 3 Vincom Mega Malls, large scale commercial & entertainment developments 19 Vincom Plazas in 13 cities & provinces Consumer Retail VinCommerce modern retail in all formats 50 in 63 cities & provinces covered, VinCommerce is the leading modern retailer with the largest network in Vietnam Vinmart/Vinmart + operates 49 supermarkets & 827 convenience stores VinPro/VinPro + operates 123 electronic & home appliances stores VinDS sells home furniture, apparels & cosmetics through 47 stores Adayroi!com comprehensive B2C ecommerce website VinExpress inter-city & last-mile delivery with 21 distribution hubs Social Infrastructure Services VinEco trusted source of fresh food VietGAP standard farms producing fresh vegetables, fruits, & exclusive cooperation to produce and rice and meat Property Vinhomes premium apartments & villas Leading developer with 14,000 (1) homes sold Quality residential properties with uncompromising services, located at prime locations & supported by comprehensive facilities & amenities Vingroup Card comprehensive loyalty program Credit system consistently applied across Vingroup s ecosystem of products and services. Points can be redeemed anywhere Special priorities and benefits for cardholders Property Vincom Office premium office leasing 3 office developments at the centers of Hanoi & HCMC s financial centers Hospitality & Entertainment Vinpearl resorts and Vinpearlland entertainment Leading hospitality operator with over 5,000 rooms managed 8 Vinpearl 5 star & 5 star plus resorts at the best beaches in Vietnam 5 beach villa developments 2 international-standard golf courses 3 large-scale outdoor amusement parks in Vinpearl developments 6 indoor entertainment centers at Vincom commercial developments Social Infrastructure Services Vinschool high quality K-12 education Comprehensive kindergarten to high school Vietnamese curriculum Over 17,000 students registered at 6 facilities Social Infrastructure Services Vinmec high quality healthcare services Leading healthcare provider with over 430 beds under operation 4 full-serviced general hospitals 2 clinics 11 As of 31 May 2016 (1) As of 31 December 2015
Significant Focus on Recurring Revenue Streams Portfolio of commercial real estate continues to ramp up 1,000 Strategic shift towards a greater percentage of revenue coming from recurring income streams such as retail, hospitality, healthcare, and schools enhances the resilience of the business model. 500 Recurring revenue growth 0 39.7% 20.2% 21.3% 38.4% 30.5% 121 174 276 586 207 2012 2013 2014 2015 1Q 2016 Recurring revenue Recurring % total revenue 10-10 -30-50 Revenue diversified across retail & non-retail segments (1) CAGR: Retail = 76%, Non-Retail (NR) = 62% 142 126 191 44 29 109 98 36 2012 2013 2014 2015 1Q 2016 (Retail) Leasing (Retail) Consumer Retail (NR) Hospitality & Entertainment (NR) Education, Heathcare & Others Profitability resilient through economic cycles (Gross profit, US$ mm) 21% 17% 47% 14% (% of total in Mar-16) 61 94 126 155 25 12 Source: Audited IFRS Consolidated Financial Statement for 2012, 2013, 2014, 2015 and Unaudited VAS 1Q 2016 (1) Includes negative gross profit from non-recurring revenue of (US$4.4mm) in 2012 and (US$2.7mm) in 2013 2012 2013 2014 2015 1Q 2016
Experienced Management Team, Good Corporate Governance and Strong Sponsor Ms. Pham Thuy Hang Vice Chairwoman 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 In 2012, he was recognized as Vietnam s first billionaire by Forbes Magazine, and continued to maintain this sole position from 2013 to 2015. Board of Directors Ms. Pham Thu Huong Vice Chairwoman Ms. Nguyen Dieu Linh Vice Chairwoman cum Deputy CEO Mr. Le Khac Hiep Vice Chairman cum Independent Member Ms. Mai Huong Noi Member cum Deputy CEO Ms. Duong Thi Mai Hoa CEO Over 20 years experience 3 years with Vingroup Mr. Joseph Gagnon (1) Member Ms. Mai Huong Noi Board member and Deputy CEO 25 years experience 10 years with Vingroup Management Mr. Marc Villiers Townsend (2) Independent Member Mr. Pham Van Khuong Deputy CEO Over 28 years experience 13 years with Vingroup Prof. Ling Chung Yee Roy (3) Independent Member Ms. Nguyen Thi Diu Deputy CEO Over 20 years experience 3 years with Vingroup Ms. Nguyen Dieu Linh Vice Chairwoman cum Deputy CEO (Vingroup) CEO (Vinhomes 1) 20 years experience 11 years with Vingroup Ms. Luu Thi Anh Xuan CEO (Vinhomes 2) 25 years experience 2 years with Vingroup Mr. Dang Thanh Thuy Deputy CEO (Vingroup) CEO (Vinpearl) 20 years experience 12 years with Vinpearl Ms. Tran Mai Hoa CEO (Vincom Retail) 22 years experience 2 years with Vingroup Ms. Thai Thi Thanh Hai CEO (VinCommerce) 22 years experience 2 years with Vingroup Ms. Le Thuy Anh CEO (Vinmec) 16 years experience 4 years with Vinmec Ms. Le Mai Lan Chairwoman (Vinschool) 15 years of experience 3 years with Vingroup Ms. Vu Tuyet Hang Deputy CEO (Vingroup) CEO (VinEco) 20 years experience 11 years with Vingroup 13 (1) Mr. Joseph Gagnon is a Managing Director of Warburg Pincus (2) Mr. Marc Villiers Townsend is the Managing Director of CBRE Vietnam (3) Pro. Ling Chung Yee Roy is the Managing Director of RL Capital Management
Vietnam s Flag Bearer in the International Capital Markets More than US$1.5 billion raised internationally through several pioneering transactions since 2010 Prestigious awards and accolades Domestic Senior Unsecured Notes, guaranteed by February 2016 VND3,000 trln International Syndicated Loan Private Equity Investment by 2013 Real-estate Deal of the Year May 2013 US$200mm June 2015 US$100mm Convertible Bonds Secondary Placement of Ordinary Shares April 2014 US$70mm RegS/144A International Senior Unsecured Notes Vietnam Capital Markets Deal 2013 Best Vietnam Deal 2013 Issuer that matter October 2013 US$200mm Asia Pacific Property Awards 2016 Viet Nam's Best Mixed-Used Development Vinhomes Central Park Viet Nam's Best High-Rise Development Landmark 81 Viet Nam's Best Residential Landscape Architecture Vinhomes Times City Park Hill Brand Finance Awards 2015 Vinhomes The most valuable real estate brand in Vietnam Vincom Retail & Vinpearl Top 50 most valuable brands in Vietnam October 2013 US$150mm Best Capital Markets Deal 2012 Best Vietnam Deal 2012 Best Vietnam Deal 2012 Apr & Jul 2012 US$300mm (1) Good relationship with all leading domestic banks with repeat loan and bond issuance Holistic cooperation with financial institutions, including facilitation of mortgage financings for customers and transactional banking services at Vingroup commercial properties Domestic awards in 2015 Standard and Poors 2014 Top 100 ASEAN companies Finance Asia 2014 Region s Best Borrower Vietnam Euromoney Real Estate Awards 2014 Best retail developer in Vietnam Southeast Asia Property Awards 2014 Best developer - Vietnam Vietnam Report 2015 Top 10 largest corporate tax payers Ministry of Industry and Trade Top 10 brand awards Vietnam National Administration of Tourism Top 10 5-star hotels in Vietnam 14 (1) Total of US$300 mm CBs were converted into shares by 16 March 2016
C. Leading Real Estate Developer and Operator 1. Largest Residential and Commercial Developer in Vietnam 16 2. One of the Largest Landbanks in Prime Locations Across Vietnam 17 3. Robust Residential Sales: New Projects 18 4. Seamless Land Acquisition and Sale Process 19 5. Capital Efficient Model 20 15
Largest Residential and Commercial Developer in Vietnam Vingroup (rated B+ by Fitch and B by S&P) is the largest listed real estate company in Vietnam by market capitalization with controlling interest in over 83 developments, which are in prime urban and high growth areas in key cities throughout Vietnam The largest listed real estate (1) company in Vietnam (market capitalization, US$ mm) 4,540 One of the largestlisted companies in Vietnam High-quality commercial, residential, hospitality and mixed-used properties 275 255 145 Vingroup #2 #3 #4 Mass market residential builder Furniture and granite business Diversifying into agriculture, mining & hydropower Developer of industrial and business parks and high-end hotels Also invests in energy, mining and education A clear leader in Vietnamese real estate Primarily industrial parks developer Infrastructure development Telecom & network development Proven ability to secure prime sites in the Central Business Districts of Hanoi and Ho Chi Minh City Quality properties that operate under the Vingroup brand names Growing portfolio of investment properties: A critical contributor of recurring revenues Track record of successful project development, sales and property management Repeated successful launches of residential and commercial projects 84 projects across Vietnam 60 Mixed used and shopping malls projects at prime locations in key cities Hanoi Royal City Times City Vinhomes Riverside 54A Nguyen Chi Thanh 6 operational Vincom malls Vinmec Times City Int l Hospital Vinhomes Gardenia Vinhomes Smart City Vinhomes Paradise Vinhomes Skylake (Springlake) Vinhomes Riverside 2 Green City Dan Phuong Vinhomes Melodia 1 Vincom mall under development North Vietnam (Excluding Hanoi) 4 operational Vincom malls Vinmec Ha Long Int l Hospital Vinmec Hai Phong Int l Hospital Vincom Plaza Ly Thai To, Bac Ninh Vinhomes Dragon Bay Dream City, Hung Yen Vinmec Medical University, Hung Yen 3 Vincom malls under development Central Vietnam Vinmec Nha Trang Intt l Hospital 1 operational Vincom malls 2Vincom malls under development Ho Chi Minh City 8 operational shopping malls Vinmec Central Park Int l Hospital Vinhomes Central Park Vinhomes La Seine (Green City) Vincom Center District 2 Vinhomes Long Beach Can Gio South Vietnam (Excluding HCM city) 6 operational shopping malls Vinmec Phu Quoc Int l Hospital Vincom Plaza Xuan Khanh, Can Tho Vincom Plaza Rach Gia, Kien Giang Vincom Plaza Tra Vinh Vincom Plaza Tuy Hoa Operating Project Under construction and pipeline projects 24 projects at key tourist destinations North Vietnam Vinpearl Ha Long Bay Resort Vu Yen Island, Hai Phong Central Vietnam Vinpearl Da Nang Resort & Villas Lang Van, Da Nang Da Nang 2, Da Nang Vinpearl Resort Hoi An Nha Trang, Khanh Hoa Vinpearl Nha Trang Resort Vinpearl Land Nha Trang Vinpearl Luxury Nha Trang Vinpearl Golf Club Nha Trang Vinpearl Nha Trang Bay Resort & Villas Vinpearl Golf Land Resort & Villas Vinpearl Empire Condotel Vinpearl Beachfront Condotel Vinpearl Phu Quy Vinpearl Hon Mot South Vietnam (Excluding Nha Trang, Khanh Hoa) Vinpearl Land Phu Quoc Vinpearl Golf Club Phu Quoc Vinpearl Phu Quoc Resort (Phase 1) Vinpearl Phu Quoc Resort & Golf (Phase 2) Vinpearl Safari Phu Quoc Vinpearl Phu Quoc Villas (Phase 3) Vinpearl Phu Quoc Paradise Villas (Phase 4) Vinpearl Riverfront Condotel - Danang Vinpearl Cam Ranh, Khanh Hoa Vinpearl Long Beach Villas Vinpearl Da Lat Vinpearl Quy Nhon, Binh Dinh Con Au, Can Tho 16 (1) Bloomberg as of 31 May 2016
One of the Largest Landbanks in Prime Locations Across Vietnam Landbank breakdown GFA breakdown (1) (,mm sqm) 85.6 mm sqm 85.6 mm sqm Villas, Shophouses 27% Beach Villas 15% 60.8 71.0 0.5 24.3 14.6 Entertainment 2% School 2% Hospital 7% High rise 19% Retail Mixed-use and commercial Hospitality Completed Under Construction and Development Hotel 5% Commercial 23% Planned GFA breakdown Land banking strategy (mm sqm) 35.2mm sqm 35.2 mm sqm 85.6 mm sqm of landbank is sufficient for at least 10 years of development 2.1 Retail 19.7 Mixed-use and commercial 13.4 5.4 29.8 Hospitality Completed Under construction and Development Only look for land at prime locations in major cities Proactive in infrastructure development to support accessibility of own projects Seek to acquire land adjacent to existing mixed-use projects to benefit from economies of scale and increase the critical mass of existing projects 17 As of 31 May 2016, Landbank and GFA of under-development projects are subject to change (1) GFA does not include (i) agricultural land, (ii)leased retail areas, (iii) parking, public area and infrastructure
Villa & Shophouse Projects Vinhomes Gardenia Vinhomes Times City - Park Hill Vinhomes Central Park Robust Residential Sales: New Projects Nov-14 (1) Prime location along the western bank of the Saigon River, falling within the western border of the city center area, just 4km from the city s business center in District 1 Total site area: 422,000 sqm 2,025 units sold in 5M2016 86% of all launched residential units presold to date Total contract value: US$1,403 mm, received US$878 mm First delivery: Q1 2017 11,210 11,210 9,295 9,403 9,666 7,319 7,641 6,543 4,099 1,433 1,160 1,160 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 May-16 Cumulative units launched Cumulative units sold Mar-15 (1) Located just 4 km from Hanoi City center, adopting the ecofriendly architectural design of the island country of Singapore Total site area: 140,643 sqm 1,420 units sold in 5M2016 85% of all launched residential units presold to date Total contract value: US$769 mm, received US$676 mm First delivery: Q4 2016 594268 2,446 1,455 3,867 2,987 5,723 6,299 5,019 5,345 4,548 3,925 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 May-16 Cumulative units launched Cumulative units sold Jan-16 (1) Mixed-use project in Tu Liem, Hanoi. Located in one of the most prime locations in My Dinh - Hanoi's modern commercial and administrative center, and well connected with transportation infrastructure Total site area: 176,300 sqm 1,168 units sold in 5M2016 90% of all launched residential units presold to date Total contract value: US$158 mm, received US$41 mm First delivery: Q4 2017 1,296 1,296 1,168 819 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 May-16 Cumulative units launched Cumulative units sold Apr-15 (1) Villas & Shophouses in Nha Trang, Phu Quoc, Danang, Hanoi, Ho Chi Minh City, Thai Binh, Ha Tinh, Hai Phong & Can Tho, Yen Bai. 727 units sold in 5M2016 59% of all launched residential units presold to date Total contract value: US$1,464 mm, received US$1,063 mm First delivery: Q3 2015 264138 1,016 702 1,795 1,082 3,077 2,392 1,595 1,809 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 May-16 Cumulative units launched Cumulative units sold 18 As of 31 May 2016 (1) Pre-Sale launched
Seamless Land Acquisition and Sale Process Understanding the development and presales process is a crucial part in appreciating Vingroup s de-risked business model for residential projects Land Acquisition Presales Delivery 1. Obtaining approval-in-principle Acquire an approval-in-principle from the local people s committee Indicates the approval of a specific project 2. Investment Registration Certificate Can be obtained once approvalin-principle received After the investment certificate obtained, a developer may proceed to: o Get approval on the land clearance plan o Commence the land clearance process Stage 1 Sale & Purchase Agreement (SPA) (1) First Stage of Presale Signing of SPA When foundation work or first floor area is complete A deposit of c.5,000 US$ is required to be placed whilst the SPA is being prepared The first SPA payment is about 25-30% of the purchase price Stage 2 Apportioned Pre-sales Before Completion Second Stage Installments Subsequent installment payments made depending on SPA terms Installment payments of 5-30% are made in varying stages depending on SPA Delivery of property upon completion Buyer has to pay the remaining ~30% of contract value upon delivery depending on SPA Revenue can be recognized by the Group for sale of property Property is delivered to buyer and removed from inventory Obtain and deliver the land use right certificate to buyers o Start construction of the project 19 (1) Vietnamese law requires the completion of either the foundation of a building or its 1st floor area before a sale and purchase agreement can be entered into. Sales prior to this completion may some times be made in the form of a loan agreement, which gets converted into an SPA once conditions to signing SPAs are fulfilled.
Capital Efficient Business Model Integrated development model Vinhomes Central Park Recycle capital through opportunistic asset sales 2006 2010 2012 2013 2015 Vincom Center Ba Trieu Tower A (office component) Vincom Financial Tower (office) Vincom Center Ba Trieu Tower B (office component) Vincom Center A HCMC (shopping mall, hotel) Vincom Center Nguyen Chi Thanh (office component) (2) Residential GFA (1) Residential segment presales helps to lighten capital requirements in a mixed-use project 76 % 24% Commercial and others GFA (1) Recurring revenue becomes a larger component of total project revenues over time Sale Price (3) US$25mm US$51mm US$64mm US$472mm US$110mm Profit % (4) >150% >100% >900% >100% >130% Holding period (years) 2 0 (5) 8 1 0 (5) Area Sold 22,480 sqm 31,300 sqm 24,059 sqm 98,057 sqm 64,700 sqm Acquirer Demonstrated ability of successful asset sales even in challenging macroeconomic conditions Recycling of capital into new investments to generate high ROE 20 (1) As of 31 May 2016 (2) Sale price and Profit to be adjusted after hand-over (3) Exchange rate at the end of the transaction years were used. (4) % profit denotes the profit achieved from the sale, by comparing the sale price with the construction cost, taking into account depreciation, of the assets (5) Sold upon construction completion
D. Dominant Modern Retail Player across all Formats 1. Nationwide Retail Network 22 2. Complemented by Innovative E-commerce and Robust Infrastructure 23 3. Largest Portfolio of Retail Property for Lease 24 21
Nation-wide Retail Network 50 / 63 cities and provinces covered Nation-wide Key Retail Brands Comprehensive multi-format retailer 1,056 stores 3 Vincom Centers, 3 Vincom Mega Malls, 19 Vincom Plazas VinMart & VinMart + VinPro & VinPro + VinDS 49 VinMart, 827 VinMart +, 17 VinPro, 116 VinPro +, 47 VinDS stores Hanoi 6 Vincom malls 13 VinMart 430 VinMart + 4 VinPro 7 VinPro + 9 VinDS North Vietnam (1) 4 Vincom Plazas 6 VinMart 3 VinPro 21 VinPro + 10 VinDS Vinmart (>3,000 sqm supermarkets) and Vinmart + (100 300 sqm convenience stores) VinPro (electronics and appliances) VinDS (Specialty retail stores specializing in cosmetics, shoes, sportswear, furniture & household appliances) Central Vietnam 1 Vincom Plaza 1 VinMart 26 VinMart + 2 VinPro 33 VinPro + 3 VinDS 25 retail malls across Vietnam Vincom Centers Vincom Mega Malls 950 000 sqm Vincom Plazas Ho Chi Minh City 8 Vincom malls 13 VinMart 356 VinMart + 5 VinPro 29 VinPro + 16 VinDS South Vietnam (2) 6 Vincom Plazas 16 VinMart 15 VinMart + 3 VinPro 26 VinPro + 9 VinDS Golden Sites Prime locations in Vietnam s major cities Large scale shopping malls combined with the latest entertainment facilities Modern shopping experience in newer cities and suburban areas 22 As of 31 May 2016 (1) Excludes stores in Hanoi (2) Excludes stores in Ho Chi Minh City
Complemented by Innovative E-commerce and Robust Infrastructure is the growth driver for VinCommerce Well developed infrastructure 21 modern logistic hubs in North, Central and South Vietnam 11/53 cities and provinces covered Fleet of delivery trucks, vans and motorcycles equipped with automated, real-time management system Commitment to provide B2C-logistics service with the shortest lead time to customers, and advanced delivery services for business partners Exceptional offerings for Vingroup Card users Internal customers External customers Over 4,000 merchants and suppliers Launched in August 2015, adayroi!com already offers the widest range of products than any e-commerce operator in Vietnam To seamlessly connect offline with online retailing, and with the nationwide logistic network Full suite of services to merchants, from content, image design to delivery and customer care To become the No.1 retailer in Vietnam and to expand into regional and international market Credit system consistently applied across Vingroup s ecosystem of products and services First and only card in Vietnam that is able to connect and integrate advantages and benefits Points can be redeemed anywhere Special priorities and benefits for cardholders 23 As of 31 May 2016
Largest Portfolio of Retail Property for Lease Vingroup s brand names are instrumental in securing new sites, achieving premium pricing and attracting over 800 retail and F&B brands Fashion, beauty and accessories Food & Beverage and others 1,500,000 1,000,000 500,000-36 17 1,000,000 sqm 1 1 2 3 5 6 2004 2009 2010 2012 2013 2014 2015 2016E GFA No. of shopping malls 40 30 20 10 0 24 (1) Tenants for Vincom Center and Vincom Mega Mall in Ho Chi Minh City and Hanoi
E. Financial Overview - VAS 25 (1) Source: VAS Consolidated Financial Statement for 1Q 2016 Based on exchange rate of US$1 = VND 22,325 as of 31 March 2016
Debt profile overview Debt maturity As of 31 Mar 2016: Average debt maturity: 3.6 years 952 219 491 133 733 128 20 188 107 343 56 26 132 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Convertible bond Convertible loan Long-term borrowings Short-term debts Average borrowing cost 11.3% 10.8% 9.9% 9.4% 9.5% Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 26 Source: 1Q2016 VAS Consolidated Financial Statement As of 16 March 2016, Total of CBs have been converted to equity. Note: Based on exchange rate of US$1 = VND 22,325 as of 31 March 2016
Debt Mix Analysis Diversified funding sources (1) Debt breakdown (1) Others (2), 1.3% USD, 12.1% By currency Bank loans, 25.7% Domestic bond, 57.6% VND, 87.9% By interest rate International bond, 10.9% Fixed, 25.6% Total: VND39,390 Bn (US$1.76Bn) Floating, 74.4% 27 Note: Based on exchange rate of US$1 = VND 22,325 as of 31 March 2016 (applied to 2016 financials) (1) Based on VAS Consolidated FS as of 31 March 2016 (2) Including Convertible loan & Loan from Associate
Income Statement Highlights Revenue 1,500 1,297 278 567 868 176 679 373 1,019 207 933 297 121 692 98 472 252 199 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Gross profit 488 508 332 180 193 104 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Property sale Recurring income EBITDA Profit for the year (1)(2) 401 338 184 288 290 63 130 87 200 138 177 63 17 46 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Adjustment for sale of Vincom Center A HCMC 28 Source: Audited VAS Consolidated Financial Statements for 2012, 2013, 2014 and Unaudited VAS 2015 & 1Q 2016 Note: CAGR from 2012 to 2015 Based on exchange rate of US$1 = VND 22,325 as of 31March 2016 (applied to 2016 financials) (1) Dec-13 includes fair value adjustment realized when the Group sold Vincom Center A Ho Chi Minh City (2) Includes profit after tax of discontinued operations
Revenue Performance Total revenue Rental (1) Property sale 1,500 867 1,297 679 102 136 145 692 1,019 933 373 297 62 24 46 252 199 472 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Consumer retail Hospitality & entertainment services Healthcare & education 191 125 57 99 41 19 5 98 56 75 30 44 7 14 12 18 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 29 Source: Audited VAS Consolidated Financial Statements for 2012, 2013, 2014 and Unaudited VAS 2015 & 1Q 2016 Note: CAGR from 2012 to 2015 Based on exchange rate of US$1 = VND 22,325 as of 31 March 2016 (applied to 2016 financials) (1) Include rental from Group s Subsidiaries
Profitability Gross Profit and Margin Total gross profit 488 508 Rental (1) Property sale (%) (%) 67% 50% 57% 58% 40% 49% 49% 42% 36% 37% 38% 36% 332 180 104 193 41 58 66 71 14 19 126 248 377 373 76 168 Dec-12 Dec-13 Dec-14 Dec-15 Mar-15 Mar-16 Gross margin Gross margin Consumer retail (%) Hospitality & entertainment services Healthcare & education (%) (%) 6% 13% 11% 34% 46% 40% 17% 21% (4) (3) 25% 12 30% 28% 31% 17 4 4 1 24 2 1% 1 19 34 39 21 7 0% 0 (63%) (21%) Gross margin Gross margin Gross margin 30 Source: Audited VAS Consolidated Financial Statements for 2012, 2013, 2014 and Unaudited VAS 2015 & 1Q 2016 Note: CAGR from 2012 to 2015 Based on exchange rate of US$1 = VND 22,325 as of 31 March 2016 (applied to 2016 financials) (1) Include rental from Group s Subsidiaries
Balance Sheet Highlights Total cash and short-term investments Total debt (1) and net debt (2) 259 616 647 260 291 880 541 786 552 1,030 771 1,292 676 1,532 885 1,640 760 1,764 978 183 355 356 339 234 76 Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 Cash and cash eq. ST investments Total debt Net debt Total assets & total equity Net debt (2) / net debt + total equity (In US$m) 6,480 6,750 2,634 513 3,575 878 4,205 1,276 1,662 1,826 60% 44% 41% 31% 35% Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 Dec-12 Dec-13 Dec-14 Dec-15 Mar-16 Total assets Total equity 31 Source: Audited VAS Consolidated Financial Statements for 2012, 2013, 2014 and Unaudited VAS 2015 & 1Q 2016 Note: Based on exchange rate of US$1 = VND 22,325 as of 30 December 2015 (applied to 2015 financials) (1) Total debt is equal to interest-bearing loans and borrowings, plus financial liabilities designated as at fair value through profit or loss (2) Net debt is equal to total debt less cash and cash equivalents and short-term investments
F. Financial Overview - IFRS (1) 32 (1) Source: IFRS Consolidated Financial Statement for 2015 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015
Debt profile overview Debt maturity As of 31 December 2015: Average debt maturity: 3.7 years 1,399 307 103 989 45 108 27 88 66 18 20 66 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Convertible bond Convertible loan Long-term borrowings Short-term debts Total Average borrowing cost 17.7% 11.6% 11.0% 10.0% 9.4% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 33 Source: IFRS Consolidated Financial Statement 2015 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 (applied to 2015 financials)
Debt Mix Analysis Diversified funding sources (1) Debt breakdown (1) Others, 1.3% USD, 19.5% By currency Bank loans, 31.2% Domestic bond, 49.2% VND, 80.5% By interest rate Convertible bond, 16.8% Fixed, 20.3% International bond, 11.9% Total: VND36,459 Bn (US$1.62Bn) Floating, 79.7% 34 Notes:Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 (applied to 2015 financials) (1) As of 31 December 2015 (2) Including Convertible loan & Loan from Associate
Income Statement Highlights Revenue Gross profit 863 1,293 276 1,526 586 341 507 536 175 1,017 305 940 688 109 121 45 64 184 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 53 127 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Property sale Recurring income EBITDA (1) Profit for the year (1)(2) 287 52 164 531 389 291 136 148 8 279 239 114 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Adjustment for sale of Vincom Center A HCMC 35 Source: IFRS Consolidated Financial Statements for 2011, 2012, 2013, 2014 and 2015 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 (applied to 2015 financials) (1) EBITDA excludes valuation gains / losses of investment property and investment property under construction (2) Dec-13 EBITDAs and Profits include fair-value adjustment realised when the Group sold Vincom Center A HCMC (3) Includes profit after tax of discontinued operations
Revenue Performance Total revenue Rental (1) Property sale 1,293 1,526 134 148 1,017 940 109 305 863 46 62 102 64 184 688 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Consumer retail Hospitality & entertainment services Healthcare & education 126 57 191 99 41 75 56 19 NA NA 7 13 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 36 Source: IFRS Consolidated Financial Statements for 2011, 2012, 2013, 2014 and 2015 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 (applied to 2015 financials) (1) Include rental from Group s Subsidiaries
Profitability Gross Profit and Margin Total gross profit Rental (1) Property sale (%) (%) 341 507 536 78% 77% 68% 60% 57% 36% 36% 36% 37% 41% 53 127 Dec-11 Dec-12 Dec-13 Dec-14 Thg12-15 80 84 69 48 36 Thg12-11 Thg12-12 Thg12-13 Dec-14 Dec-15 Gross margin 381 381 247 19 66 Thg12-11 Thg12-12 Thg12-13 Dec-14 Dec-15 Gross margin Consumer retail (%) Hospitality & entertainment services Healthcare & education (%) (%) 13% 34% 46% 41% 30% 30% 6% 23% (4) (3) 12 17 1 24 19 34 41 29 (63%) 26% Thg12-11 Thg12-12 Thg12-13 Dec-14 Dec-15 Gross margin Thg12-11 Thg12-12 Thg12-13 Dec-14 Dec-15 Gross margin Thg12-11 Thg12-12 Thg12-13 Dec-14 Dec-15 Gross margin 37 Source: IFRS Consolidated Financial Statements for 2011, 2012, 2013, 2014 and 2015 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 (applied to 2015 financials) (1) Include rental from Group s Subsidiaries
Balance Sheet Highlights Total cash and short-term investments Total debt (1) and net debt (2) 866 1,550 1,648 612 640 558 258 284 213 256 155 180 354 356 308 58 76 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 1,259 997 909 741 647 782 468 256 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Cash and cash eq. ST investments Total debt Net debt Total assets & total equity Net debt (2) / net debt + total equity (In US$m) 6,916 2,435 3,299 783 765 4,024 1,095 4,612 1,521 1,940 25% 49% 37% 37% 29% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Total assets Total equity 38 Source: IFRS Consolidated Financial Statements for 2011, 2012, 2013, 2014 and 2015 Based on exchange rate of US$1 = VND 22,540 as of 31 December 2015 (applied to 2015 financials) (1) Total debt is equal to interest-bearing loans and borrowings, plus financial liabilities designated as at fair value through profit or loss. (2) Net debt is equal to total debt less cash and cash equivalents and short-term investments
G. Trading Performance 39
Share Price (VND) Share Price Performance over the Last 12 Months 50,000 45,000 40,000 35,000 30,000 Jun-15 Aug-15 Sep-15 Nov-15 Jan-16 Feb-16 Apr-16 9 8 7 6 5 4 3 2 1 0 May-16 Volume (m) Vingroup Share Volume Vingroup Share Price VN-Index rebased Price VND47,297.30 as of 31 May 2016 10 Day 20 Day 30 Day 1 mth 3 mth 6 mth 12 mth 24 mth 36 mth 48 mth 60 mth Market cap of VND91,749,896.8m Average daily volume ('000) 824 820 952 820 1,003 1,250 1,261 1,406 1,320 1,085 967 Average daily trading value (VND'000) 38,843,577 38,907,769 45,144,998 38,907,769 44,649,638 53,311,815 50,966,158 53,304,922 47,834,321 38,727,830 33,862,070 Total volume traded (m) 8.2 16.4 28.6 16.4 61.2 151.2 317.9 700.0 983.3 1,078.9 1,205.1 % of total shares outstanding 0.4% 0.8% 1.5% 0.8% 3.2% 7.8% 16.4% 36.1% 50.7% 55.6% 62.1% % of free float 0.9% 1.9% 3.3% 1.9% 7.0% 17.3% 36.4% 80.1% 112.5% 123.5% 137.9% Share price Highest traded price (VND) 49,099 50,000 50,450 50,000 50,450 50,450 50,450 50,450.45 50,450.45 50,450.45 50,450.45 Lowest traded price (VND) 45,496 45,496 44,775 45,496 39,730 36,036 34,144 30,099.93 28,655.13 24,897.75 22,663.47 Performance over the period (1.9%) 2.9% 1.0% 0.0% 15.6% 23.2% 35.6% 43.4% 44.4% 61.1% 43.0% Index outperformance over the period (1) (1.2%) (0.3%) (5.7%) (3.4%) 7.2% 15.6% 28.1% 33.3% 25.1% 16.9% 1.1% Average closing price (VND) 47,117 47,387 47,273 47,387 44,683 42,718 40,408 37,622.5231 36,000.1802 34,353.7405 33,420.1691 Volume weighted average price (VND) 47,149 47,467 47,421 47,467 44,503 42,656 40,407 37,925.0016 36,242.8741 35,681.1640 35,010.4435 Market cap as of 31 May 2016 (VND m) 91,749,897 Market cap as of 31 May 2016 (USD m) 4,098 Total number of shares (m) 1,940 40 Source: Bloomberg as of 31 May 2016. (1) Performance against the VN Index.
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, cost of construction, availability of real estate properties and land, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events. 41
Investor Relations Department Vingroup JSC Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area Long Bien District, Hanoi, Vietnam Tel: +84 (4) 3974 9999 ext. 759 Fax: +84 (4) 3974 8888 Website: http://www.vingroup.net E-mail: ir@vingroup.net 42