VINGROUP JOINT STOCK COMPANY Corporate Presentation January 2018
Clear Market Leader Across Multiple Sectors Vingroup has established itself as a market leader across the full breadth of consumer related sectors from essentials to aspirational. Market share: ~24% (3) Residential Market share: ~50% (2) CVS Consumer Retail Integrated residential developer in Vietnam Market share: ~20% (4) Social Infrastructure Comprehensive multi-format retail operator Healthcare and education provider Market share: ~60% (1) Retail Leasing Market share: ~41% (5) Hospitality Retail mall owner, developer and operator in Vietnam Hospitality and entertainment operator Essentials Aspirational #1 loyalty program in Vietnam with 3.8 million members The Ultimate Vietnam Macro Play 2 Source: CBRE, Colliers, Vietnam National Administration of Tourism, Health Statistics Yearbook, Company estimates. Notes: (1) Based on Vincom Retail s combined retail GFA in Hanoi and HCMC, and GFA of all multitenant shopping malls in Hanoi and HCMC. As at August 2017. (2) Based on number of convenience stores for the top 7 key players in Vietnam. (3) Based on mid end units sold in Hanoi and Ho Chi Minh City in 2016. (4) Market share is for VinSchool only. Based on total number of kindergarten, elementary, secondary and high school students in selected private and international schools in Hanoi and HCMC in 2017. (5) Based on number of keys in 5-star hotels and resorts provided by Vietnamtourism.gov.vn
Preserving The Start-up Mindset Vingroup s continued innovation and growth of business segments primed towards the Vietnamese consumer has been the key to its success. Total Assets (US$bn) (1) 2007 Listed on HOSE as the largest real estate company by market capitalization 2010 2011 Vinhomes Royal City, Times City and Riverside launched 2012 2014 2012: Vincom Vinpearl merger 2013: US$550mm raised from international markets incl. US$200mm investment from WP consortium and first corporate international bond 2014: US$70mm equity placement Revenue exceeded US$$1bn for the first time 2017 Vincom Retail listed on HOSE with an initial equity offering size of US$743mm As of 31 December: 10 Vinhomes properties 46 Vincom malls 25 Vinpearl facilities 8 Vinmec facilities (2) Proven track record of successfully building & scaling businesses before starting new ones # of Projects Founded 2011 Dec 2017 3 10 8.7 9.8 Founded 2012 Dec 2017 6.8 1 8 (2) 1993 2006 1993 Technocom was set up 2000 Technocom-Vingroup returned to Vietnam 2001 Vinpearl Launch 2002 Vincom Launch 2003 1 st Vinpearl Hospitality Development (Resort Nha Trang) 2004 1 st Vincom Center (Ba Trieu) 2006 1 st VinpearlLand (Nha Trang) 0.9 0.0 0.1 0.3 1.6 2.3 3.1 3.8 4.3 Founded 2013 Founded 2014 Dec 2017 1 16 Dec 2017 9 1,005 (3) 1993 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 30 Jun-17 24 years of operating experience achieving US$9.8 bn in total assets (c.70x increase since 2007) 3 Notes: (1) Total assets from 2009 to 30 June 2017 based on IFRS financials, while total assets from 2006 to 2008 based on VAS financials. Assuming USDVND exchange rate of 22,770. (2) Includes 6 full-serviced hospitals and 2 clinics consolidated. (3) Includes both VinMart and VinMart+.
Vingroup Ecosystem of Complementary Businesses Under One Brand Diversified integrated developer across various segments Residential, commercial, hospitality, mixed-use properties Quality properties at prime locations across Vietnam Only nationwide real estate player 1993 2011 Integrated Real Estate Developer and Operator 2012 2013 Developing Ecosystem Ecosystem of complementary consumer-focused service offerings at each site Formation of ideal population catchment areas Value-accretive synergies between businesses Broaden customer segments across age groups New business initiatives to spearhead leadership in underpenetrated industries and broaden customer product offerings Capitalizing on favorable macroeconomics and industryspecific factors First-mover advantage 2015 YTD 2017 Expanding in Consumer Product Spectrum 2014 2015 Anchoring Dominant Position in Consumer Sectors Emerged as a national champion with one of the largest and widest retail network Further diversification across consumer sector exposure Strengthen market position in consumer focused sectors At least 10 years worth of development pipeline Unparalleled land sourcing expertise c.91.0mm (1) sqm of landbank ~3.8mm members Single card, nationwide access Benefits lock in repeat spending 4 Notes: (1) As of 30 Sep 2017.
Vingroup s Key Competitive Advantages 1. Vietnam at a Favorable Macroeconomic Inflection Point 2. Undisputed Leader in the Vietnam Residential Real Estate Sector 3. Growing Recurring Revenue From Multiple Market-Leading Consumer Businesses 4. Largest Landbank Provides Pillar for Long Term Platform Growth 5. Experienced & Proven Management Team with Strong Track Record 5
1. Vietnam at a Favorable Macroeconomic Inflection Point 6
Singapore Thailand Indonesia Malaysia Philippines Vietnam 2016 2017E 2018E 2019E 2020E 2021E Favourable Macroeconomic Indicators for Consumption Growth Fastest Growing Economy in Southeast Asia 2018E Real GDP growth (%) 2.0% 2.6% 4.7% 4.8% 5.6% 6.5% Middle Class No. of households ( 000) with disposable income of more than US$25,000 per annum 313 367 404 455 521 600 Highest Population Proportion Among Workforce Population with age range between 25 44 as % of total population 32.7% 32.4% 30.6% 30.4% 29.1% 27.9% Vietnam Malaysia Indonesia Thailand Singapore Philippines One of the Highest Private Consumption in Southeast Asia Private consumption as % of GDP 2016 2017E 2018E 2019E 2020E 2021E Philippines 73.6% 72.8% 72.8% 72.7% 72.3% 72.2% Vietnam 68.5% 68.8% 68.6% 67.9% 66.9% 65.9% Growing Middle Class Set to Drive Next Wave of Consumption Disposable income per capita (US$)? Vietnam 922 968 1,021 2016 2017E 2018E Future Indonesia 57.7% 58.1% 58.3% 57.2% 57.2% 57.2% Malaysia 54.9% 55.4% 56.0% 57.1% 58.2% 58.9% Thailand 50.6% 49.9% 49.1% 48.9% 48.6% 48.5% Singapore 36.5% 35.3% 35.4% 35.9% 35.9% 35.9% Philippines Thailand 1,576 930 2004 2020E 2,335 999 1990 2020E 7 Source: EIU, GSO Vietnam.
1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 (1) Residential price index (re-based to 100%) Vietnam Residential Real Estate set to Benefit from Urbanization Vietnam s Residential Prices Still Lagging Behind Regional Peers 360+% Lowest Home Ownership in the Region Home ownership rate (%) (2) 160% 150% 140% 130% 120% 110% 100% 90% 80% 30% 53% 70% 90% 91% HCMC Shanghai Bangkok Manila Vietnam Philippines Thailand China Singapore Vietnam Has the Lowest % of Home Mortgage Loans as % of GDP Total amount of home mortgage loans outstanding as % of GDP (3) Strong Uptick in Urbanization Expected Urban population, % of total (4) Vietnam s mortgage market is unpenetrated compared to regional peers 18.4% 20.0% 50.6% 34% 50% By 2020, 50% of Vietnam s population will live in urban areas/cities. An estimate of 374,000 additional housing units will be in cities every year to cope with rising demand. 1.9% 4.9% Vietnam Philippines China Thailand Singapore 2016 2020 8 Notes: (1) HCMC and Shanghai data from Savills, Bangkok and Manila from Bank of International Settlements database. (2) Vietnam home ownership statistic based on article titled Urbanisation spurs real estate development in Vietnam (2016) Oxford Business, Philippines from DHS survey (2013), Thailand from REIC (2011), China from Trading Economics (2014) and Singapore from Singapore Department of Statistics (2016). (3) Vietnam data from Agency of the Ministry of Planning and Investment (2014), Philippines from BSP & HDMF (2016), China from PBOC (2015), Thailand from Country Editor (2015) and Singapore from Monetary Authority of Singapore (2016). (4) Sourced from BMI and World Bank data.
Residential Market a Direct Beneficiary of the Growing Middle Class Paradigm shift to widespread home ownership has driven huge pick-up in transaction volumes. Hanoi Residential Transactions On The Rise Number of units sold 8,000 6,000 4,000 2.5x 2,000 With High-end Prices Reaching A 5-year High Prices (US$ psm) $2,000 $1,500 $1,000 $500 0 2013 2014 2015 2016 2017 High-end Mid-end Low-end HCMC Residential Transactions Also Accelerating Number of units sold 12,000 10,000 8,000 6,000 4,000 2,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3.0x 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 2017 High-end Mid-end Low-end With High- And Mid-end Prices Increasing The Fastest In The Last 3 Years Prices (US$ psm) $2,000 $1,500 $1,000 $500 $0 2013 2014 2015 2016 2017 High-end Mid-end Low-end Vingroup is a key beneficiary of the positive Vietnam real estate outlook $0 2013 2014 2015 2016 2017 High-end Mid-end Low-end 9 Source: CBRE.
Modern Retail Set for Explosive Growth in Vietnam Low penetration of modern retail presents an opportunity for outsized growth as Vietnam s mall space and modern retail turnover close the regional gap High Potential to Close Regional Gap in Mall GFA Compared to Regional Peers Vietnam is Starved for Modern Retail Format 2016 GFA per capita (sqm) 2016 modern grocery retail as part of total grocery retail by value (%) 2.4 71.7% 10.3x 0.8 17.2% 30.3% 41.7% 46.2% 0.2 3.5x 4.9% Hanoi/ HCMC Bangkok Metro Manila Vietnam Indonesia Philippines Malaysia Thailand Singapore Modern Grocery Retail Set to Outpace Traditional Grocery Retail Modern grocery retail growth 2016A 2021E CAGR (%) (1) Traditional grocery retail CAGR (%) (1) Convenience Store and Supermarkets Growth is Highest in SEA Convenience stores and supermarkets market growth 2016A 2021E CAGR (%) (1) Vietnam Philippines Indonesia Thailand 7.9% 9.7% 9.5% 13.4% 7.3% 5.1% 7.1% 3.7% Vietnam Philippines Indonesia Malaysia 2.6% 9.2% 8.4% 12.0% 6.6% 10.2% 17.9% 29.2% Malaysia 3.6% 3.2% Thailand 10.2% 6.8% Singapore 3.1% 1.8% Singapore (1.1%) 3.6% 10 (1) Based on market size in terms of retail sales value Source: Euromonitor, EIU, Colliers 0% 4% 8% 12% 16% (5%) 0% 5% 10% 15% 20% 25% 30% 35% Convenience stores market growth Supermarkets market growth
2. Undisputed Leader in the Vietnam Residential Real Estate Sector 11
The Undisputed Leader in Residential in Vietnam Vingroup s Market Cap Is c.5x of Next Player In Real Estate Industry Market capitalization (US$mm) (1) 8,982 Commercial, residential, hospitality and mixed-used properties developer 1,701 Southern Vietnam residential projects developer 286 282 #1 #2 #3 Industrial and business parks developer Southern Vietnam integrated low-rise projects developer Powerful Brand and Best-in-Class Ecosystem Complementary businesses under a single brand creates synergistic value accretion Properties worth more due to complementary services (schools, hospitals, retail malls) Expansive and integrated community serves to lock-in customer demand Properties in the eco-system are more resilient to business cycles and were first to be bought after a crisis Vinhomes and VinCity Quality Living For The Vietnamese Consumer Luxury High-End Middle high class families (~24% (2) of market) share) Broad product offering Apartments, Villas, Shophouses, Shop-offices, Office-tels / SOHOs Full ecosystem available Attractive Residential Presales Model Presale of residential units to develop the retail and commercial components unlike single-use developers Mid-End Affordable Singles and graduates in big cities, young families Highly accessible Direct highway or metro access to downtown Ecosystem of quality infrastructure services provided by Vingroup or partners Very Strong Cash Flow + IRR Stable through-the-cycle gross margins of 30 60+% Target unlevered IRR of ~25% for integrated mixed use projects 12 Source: CBRE. Notes: (1) As of 31 December 2017, based on USDVND exchange rate of 22,700. Other real estate players market capitalization values rounded to the nearest US$ hundred million. (2) Based on mid end units sold in Hanoi and Ho Chi Minh City in 2016
Vinhomes and VinCity: A Differentiated Developer with Grade A Sites Not Just a Homebuilder But A Community Creator c.24% market share (1) 15,000 homes and villas sold Highest number of residential properties sold in each year during 2014-2016 in Hanoi and Ho Chi Minh City Ecosystem of complementary products and services at each site Well-located Grade A Sites Hanoi Development Projects Mai Dịch 3 4 5km CBD Ngoc Thuy 1 Hoàn Kiếm Lake Ngọc Lâm Expanding coverage Central Park (HCMC) Times City (Hanoi) Residential Vinhomes Vincom Central Park: Center The Central Central Park The Park Landmark 81 > 10,000 units Vinhomes Times City & Park Hill c.13,000 units Retail / Office Medical School Vincom Mega Mall Times City Vincom Office Times City Vinmec Central Park International Hospital Vinmec Times City International Hospital Vinschool K-12 education Vinschool Kindergarten 5 schools Vinschool Elementary, Secondary and High School Hospitality / Entertainment 5-star Vinpearl Hotel Landmark 81 450 hotel rooms VinpearlLand indoor entertainment VinpearlLand Aquarium Times City 8 5 Ho Chi Minh City Development Projects Tân Bình Ho Chi Minh City Airport 6 2 3 2 5 Phú Nhuận District 10 District 5 Phú Thượng District 6 Gò Vấp 4 District 3 5km District 1 District 4 3 Bình Thạnh p. Long Biên Thủ Đức Trung Thôn Vingroup s Projects Expanding coverage 1 CBD Vingroup Projects Metro Lines Under Construction Planned Metro Lines CBD 13 Source: CBRE. Notes: (1) Based on mid end units sold in Hanoi and Ho Chi Minh City in 2016.
Projects launched in 2018 Ongoing projects Robust Residential Sales for Recent New Projects with Strong Pipeline Ongoing and Upcoming Residential Project Footprint Anticipated pre-sales by geography 3 More than 70% of projects pre-sold More than 2.5x growth with larger focus on Hanoi & HCMC Others 13% 7 9 Hanoi Hanoi 7 3 9 5 6 4 5 4 Hanoi Hai Phong Others 42% Hanoi & HCMC 58% 2017: 1.9mm sqm 2020: 5.6mm sqm Selected Pipeline Projects Hanoi & HCMC 87% Hanoi Project City GFA (sqm) % presold (1) (US$ / Average ASP (1) sqm) 10 6 Hanoi 1 2 Vinhomes Central Park HCMC 1,700,000 99% Vinhomes Golden River HCMC 594,000 90% Apartment: $2,300(2) Villa: $7,800 Apartment: $4,100(2) Villa: $13,500 3 Vinhomes The Harmony Hanoi 706,000 63% $3,300 1 HCMC Legend Thanh Hoa 4 Vinhomes Imperia Hai Phong 688,000 67% $1,600 Project City GFA (sqm) Expected Completion (3) Ongoing Projects 5 Vinhomes Project #1 Hanoi 1,214,000 2019 HCMC Upcoming Projects 6 VinCity Project #1 Thanh Hoa 1,508,000 2019 2 10 1 2 8 HCMC 8 7 8 9 Vinhomes Project #2 Hanoi 1,023,000 2019 Vinhomes Project #3 HCMC 94,747,000 Beyond 2020 VinCity Project #2 Hanoi 6,160,000 Beyond 2020 HCMC HCMC 10 VinCity Project #3 HCMC 6,326,000 Beyond 2020 As of 31 Oct 2017, unbilled sales from all residential projects was US$4.6bn 14 Notes: Project names have been masked due to sensitivity (1) As of 31 October 2017 (2) Based on the NSA per sqm for apartment units (3) Dependent on market conditions
3. Growing Recurring Revenue From Multiple Market-Leading Consumer Businesses 15
Building The Leader in Each High Growth Consumer Sector Vingroup has a proven track record of developing consumer focused business segments and aims to create market leaders in each high growth consumer segment it enters. Vingroup is Active In Key Segments Of Vietnam s Economy 2011 2015 GDP CAGR (2011-2015) (%) Sectors where Vingroup is Active (Size of bubble represents USD value of the sector) With A Strong Focus On High Growth Consumer Categories Consumer Expenditure in Vietnam CAGR CAGR (2) By Category 2012-2016 2016-2020 Housing and Utilities 9% 10% Clothing and Footw ear 9% 10% Furnishing and Home 9% 10% Recreation and Culture 9% 10% Restaurants and Hotels 10% 11% Education 10% 11% VinCommerce and Vincom Retail: Consolidating A Dominant Position Number of VinMart and VinMart+ stores 9 356 878 Contribution to GDP as of 2015 (%) (1) 1,039 2014A 2015A 2016A 2017A 46 Number of Vincom Retail malls 31 3 5 6 21 2012A 2013A 2014A 2015A 2016A 2017A Household retail brands with top-of-mind awareness among consumers Successful integration of seamless O2O (online-to-offline) strategy Largest nationwide retail coverage from North to South Dominant retail platform with 60% market share of shopping mall GFA in Vietnam s major cities Healthcare 10% 10% Vinpearl: Strong Foothold In A Burgeoning Tourism Industry Vinpearl market share based on number of keys (%) (3) 18% 41% 2013 2017 Tailored suite of concepts capturing the full spectrum of consumer segments Key beneficiary of expanding domestic middle class with increasing consumer expenditure on the hospitality sector Demand set to grow exponentially with international tourist growth 16 Source: BMI, EIU, GSO Vietnam, Colliers International Research, Vietnam National Administration of Tourism, General Statistics Office. Notes: (1) Based on 2015 data from Vietnam General Statistics Office. (2) Based on historical and forecast data from BMI. (3) Based on number of keys in 5-star hotels and resorts provided by Vietnamtourism.gov.vn.
Vincom Retail and VinCommerce Nation-wide Modern Retail Network Nationwide Retail Footprint (1) 31 / 63 Cities and Provinces Covered Vincom Retail Multi-Concept Retail Malls 46 Malls North Vietnam (1) Hanoi 7 Vincom malls 17 VinMart 443 VinMart + 5 VinPro 8 VinDS Ho Chi Minh City 11 Vincom malls 14 VinMart 362 VinMart + 7 VinPro 3 VinDS 8 Vincom malls 9 VinMart 54 VinMart+ 7 VinPro 1 VinDS Central Vietnam 10 Vincom malls 12 VinMart 53 VinMart + 6 VinPro 1 VinDS South Vietnam (2) 10 Vincom malls 14 VinMart 61 VinMart + 11 VinPro 1 VinDS Vincom Center Vincom Mega Mall Vincom Plazas Vincom+ No. of Malls: 4 No. of Malls: 3 No. of Malls: 30 No. of Malls: 9 Retail GFA: Retail GFA: Retail GFA: Retail GFA: 165,876 sqm 395,148 sqm 567,041 sqm 50,199 sqm VinCommerce Comprehensive Multi-Format Retailer 1,005 VinMart & VinMart + 36 VinPro 14 VinDS VinMart (2 nd largest and fastest growing supermarket player) and VinMart+ (Largest and most extensive convenience store footprint) VinPro (Vietnam s leading specialized and only mallbased electronics retailer) 1,055 Stores VinDS (Vietnam s leading modern department store operator) Existing Mall Portfolio and Pipeline Aspiration: 200 Existing Store Portfolio and Pipeline Aspiration 5,000 200 356 49 878 53 1,039 66 2015 2016 2017 2021E VinMart+ stores VinMart stores 17 Vincom Retail malls to grow to 200 malls by 2021 Source: Vingroup as of 31 Dec 2017 (1) Excludes stores in Hanoi. (2) Excludes stores in Ho Chi Minh City VinMart and VinMart+ stores to grow to 5,000 stores by 2021
Anchor F&B and Vincom Retail Unrivalled Retail Mall Platform In Vietnam Retail Consolidates Around the Dominant Local Landlord with Ability to Attract Best-in-Class Tenant Portfolio, with about 1,000 Unique Tenants (4) Vincom Retail Vietnam s largest retail developer, owner and operator Vincom Retail is a clear market leader with 60% market share Inditex Brands Total Market Size (GFA sqm) (1) 1.3 mm Market Share by GFA (1) GFA (mm sqm) (1) 60% Central Pattana Thailand s largest shopping mall developer arm of Central Group Total Market Size (NLA sqm) (2) 3.9 mm 0.78 2017 4.4 mm NLA (mm sqm) (2) 0.6 0.7 2013 2016 SM Prime Market Share by NLA (2) 15% 2017 17% 2013 2016 Significant parallels seen between VRE and regional retail leaders in terms of market consolidation Investment by Warbug Pincus in 2013 a validation of Vincom Retail s platform Fastest mall roll-out since 2013 to-date, to capture lack of modern retail space in Vietnam Entertainment Fashion & Beauty Philippines largest retail real estate developer Total Market Size (GFA sqm) (3) Market Share by GFA (3) 7.8 mm 10.7 mm GFA (mm sqm) (3) 33% 3.5 28% 2.2 2007 2016 2007 2016 18 VRE s dominant position and nationwide scale makes it Vietnam s Go-to platform for international and established local brands Source: Company filings, Colliers Notes: (1) Based on Vincom Retail s combined retail GFA in Hanoi and HCMC, and GFA of all multi-tenant shopping malls in Hanoi and HCMC as at August 2017 (2) Based on Central Pattana s retail NLA in Bangkok and total shopping mall NLA in Bangkok (3) Based on SM Prime s retail GFA in Metro Manila and total retail GFA in Metro Manila (4) As of 30 June 2017.
VinMart & VinMart+ Building the Dominant Player in Vietnam The VinMart and VinMart+ platform has established a market leading position in 3 years since they were first established in 2014 and 2015, respectively. Both brands are first-movers in locations all across Vietnam. Growth Trajectory of VinMart & VinMart+ Platform Location breakdown Rest of Vietnam 16% HCMC 38% 2017 Store count VinMart: 66 VinMart+: 973 Total: 1,039 Hanoi 46% 2017 2021 target & Aspiration: 5,000 stores Largest Network in the Convenience Store Space Market share (2016) (1) VinMart+ Circle K B's Mart Coop Food Shop & Go Satra Food Ministop.. and Leadership Position in the Supermarkets/ Hypermarkets space Market share (2016) (1) CoopMart VinMart Big C FiviMart Aeon Metro Lotte Mart 13.8% 10.1% 7.9% 6.6% 6.1% 4.4% 4.1% 8.7% 8.3% 7.9% 14.0% 22.7% 51.2% 34.3% established 2015 Revenue (US$ mm) 8x increase >4,700 >3,700 Strong Growth in Store Count and Profitability Gross Profit >15% <15% >15% margin (2) established 461 2014 2017E 2021E Store openings Same-store sales growth Increased customer base from VG ecosystem VinMart+ VinMart 19 Source: Euromonitor; USDVND exchange rate of 22,770. Notes: (1) Based on number of stores for the top 7 key players in Vietnam. (2) Segmental profit for Vincommerce based on consolidated VAS 2015, 2016 & 2017 financials, adjusted for loyalty programs
Business Pillars VinCommerce Multi-Format Retailer Providing Comprehensive Products and Services Business type Convenience Store Supermarket Specialty Store Average store size 100 (primarily) 200 sqm 1,700 2,500 sqm in 3 formats 500 2,000 sqm Positioning Largest and most extensive convenience store operator In Vietnam (1) One-stop convenience concept differentiated by hybrid minimart model Household community store with emphasis on food safety, traceable produce 2nd largest supermarket player in Vietnam (1) Wide product offering with emphasis on quality, traceable fresh produce Expansion alongside Vincom Retail malls Vietnam s leading specialized and only mall-based electronics retailer Largest presence in shopping malls complemented by Adayroi marketplace Operational KPIs Reduce average storage and operating costs Lower transportation costs Reduce spoilage and wastage Reduce average staff costs Maintain strong emphasis on quality and training Leverage Vincom Retail footfall Improve market share and local penetration E-commerce Loyalty Program Online portal with largest product offering in Vietnam with over 8,200 merchants 28 modern logistics hubs providing prompt delivery Largest loyalty programme in Vietnam with 3.1 mm members Allows customers to redeem points across Vingroup ecosystem, including Adayroi Nationwide store offerings that cater to the mass to affluent Vietnamese population 20 Notes: (1) Based on number of stores for the top 7 key players in Vietnam.
Creation of a Unique Hospitality Ecosystem in Nha Trang Unique Model Destination Integrated Resort Best-in-class ecosystem Synergy among product offerings that cover a wide spectrum of customer target groups, enhancing value Self-funding business model Villa sale and recurring revenue to finance integrated resort infrastructure development and construction In-place Infrastructure Positive network effects and predictable cost base can pose barriers of entry that most competitors cannot compete effectively Market Share (1) : 2014: 22% 2015: 38% 2016: 51% Strong Growth In Domestic And International Visitor Arrivals Visitor Arrivals in Nha Trang ( 000s) Domestic International 2,318 532 1,786 3,001 709 2,292 3,591 847 2,743 4,071 975 3,097 Strong projected international + Local Arrivals 2016 2017 Growth Total: +24% International: +65% Domestic: +10% 4,532 1,198 3,334 2017: 53% 5,628 1,978 3,651 (2) 2012 2013 2014 2015 2016 2017 Launch Date of Nha Trang Projects 2018 2017 2016 2015 2011 2007 2006 2003 Future Planning: Vinpearl Phu Quy Khanh Hoa, Vinpearl Hon Mot, Vinpearl Bai Tru Villas Completion on Sep 2018: Beach Front Condotel (959 rooms) Completion on Dec 2017: Vinpearl Empire Condotel (1,221 rooms) Nha Trang Long Beach Villas launched Vinpearl Golf Land Resort and Villas facility was built (426 rooms) Vinmec Nha Trang added Vinpearl Nha Trang Bay Resort & Villas launched (483 rooms) Vincom Plaza Thai Nguyen, Nha Trang completed Vinpearl Luxury Nha Trang opened (84 rooms) Vinpearl Golf Club Nha Trang started operations Existing Nha Trang Resort & Villas facility developed to add deluxe format VinpearlLand Nha Trang launched 1 st Vinpearl facility opened Nha Trang Resort & Villas (Executive) (476 rooms) Strong Cash Flow and Profitability of Nha Trang Projects Gross Profit <20% >20% >25% margin (3) 403 322 (4) 258 81 101 142 Vinpearl Empire Condotel Vinpearl Golf Land Resort & Villas Vinpearl Luxury Nha Trang VinpearlLand Nha Trang Vinpearl Nha Trang Resort & Villas (5) 287 157 144 2015 2016 2017E 21 Source: Vietnam National Administration of Tourism, Department of Tourism Khanh Hoa Province. Notes: (1) Based on number of keys in 5-star hotels and resorts in Nha Trang in 2017 provided by Vietnamtourism.gov.vn. (2) Based on annualised 10M 2017 figures for domestic and foreign visitors. (3) Gross profit margins include the full impact of guarantee package. (4) Recurring revenue includes both hotel operations and entertainment services. (5) Based on annualized 9M 2017 revenue and gross income.
Rolling Out the Blueprint Under-construction Projects To Replicate Vinpearl s Success In Nha Trang Across Other Key Hubs (1)(2) Phu Quoc 1,941 rooms 73% market share Pipeline: Vinpearl Phu Quoc 5 Phase 1 (2018) 1,373 rooms Vinpearl Phu Quoc 5 Phase 2 (2018/19) 555 rooms Vinpearl Phu Quoc Villa 4 (2018) 373 villas Ecosystem: Hotels, villas, amusement park, integrated resort, safari, golf and hospital Phu Quoc Existing Projects Upcoming Projects Hanoi Can Tho Ha Long Bay Nghe An Ha Tinh Da Nang Hoi An Ha Long Bay 384 rooms 28% market share Da Nang 361 rooms 13% market share Pipeline: River Front Condotel (2018) 864 rooms Nha Trang Nha Trang 2,302 rooms 53% market share Pipeline: Empire Condotel (2018) 1,221 rooms Beach Front Condotel (2018) 959 rooms Ecosystem: Hotels, villas, amusement park, golf and hospitals Growing Market Share Set To Capture Demand Upside Vinpearl market share in Vietnam hospitality industry (%) (1) 18% Danang 13% Ha Long 28% Nha Trang Phu Quoc 25% 37% Key Market Growth Drivers In Place International Tourist Arrivals Set for Strong Growth International Tourist Arrivals Growth (mm) (3) 39% 41% 2013 2014 2015 2016 2017 10 2016A 14 2020E 53% 73% 9% Unique Multi-format model captures full breath of customer income and age segments Leadership in scale and depth of auxiliary hospitality services Along with Domestic Hospitality Consumption Strong Projected Growth in Consumer Expenditure in Key Segments (4) CAGR 2012 2016 CAGR 2016 2020 11% 10% Recreation and culture 10% Restaurants and hotels 22 Notes: (1) Based on number of keys in 5-star hotels and resorts provided by Vietnamtourism.gov.vn. (2) Data as at 2017. (3) Based on Collier's independent modern retail research report. (4) Based on historical and forecast data from BMI.
4. Large Landbank Provides Pillar for Long Term Platform Growth 23
Vingroup Industrial RE Developer #1 Industrial RE Developer #2 Residential & Urban Developer Industrial RE Developer #3 Residential & Commercial Developer One of the Largest Landbanks in Prime Locations Across Vietnam Landbank is Vingroup s Pillar of Growth Landbank by site area (mm sqm) At least 10 years worth of development pipeline for Vingroup 16.3 Under construction & development Landbank (mm sqm) 91.0 37.6 74.7 91.0 Land reserves Largest 3 Total landbank landbank among Vietnam property developers out of 5 competitors are industrial real estate developers with landbank outside prime areas 22.0 21.7 19.9 (1) 10.0 Truly Nationwide Developer with Proven Ability to Secure Prime Sites in the CBD of Hanoi and Ho Chi Minh City 141 projects in prime cities consisting of 75 operational projects and 66 under development Hanoi 4 completed Vinhomes projects 7 operational Vincom Retail malls 1 operational Vinmec hospital 7 Vinhomes developments 5 VinCity developments 1 VinCity developments 1 Vinmec developments Ho Chi Minh City 1 completed Vinhomes project 11 operational Vincom Retail malls 1 operational Vinmec hospital 4 Vinhomes developments 1 VinCity developments 4 Vincom Retail mall developments Rest of Vietnam 28 operational Vincom Retail malls 4 operational Vinmec hospital 3 Vinhomes development 3 VinCity development 20 Vincom Retail mall developments 2 Vinmec developments Operating Project Under construction and pipeline projects Residential & commercial Hospitality Largest Landmark Proactive Hanoi Da Nang landbank across key urban and tourism centers of Vietnam projects nationwide Ho Chi Minh City North Vietnam 1 operational Vinpearl resorts 2 Vinpearl developments Central Vietnam 6 operational Vinpearl resorts & 1 Vinpearl city hotel 5 Vinpearl developments Nha Trang, Khanh Hoa 4 operational Vinpearl resorts 2 operational Vinpearl entertainment projects 4 Vinpearl developments South Vietnam 1 operational Vinpearl hotel Vinpearl development Phu Quoc, Kien Giang 4 operational Vinpearl resorts 3 operational Vinpearl entertainment projects 1 Vinpearl development in infrastructure development to support accessibility of own projects 24 Source: CBRE, Savills, JLL, PwC Research and analysis Notes: (1) As of 30 Sep 2017.
Opportunistic Monetization Dominant platform to drive long-term profits Economies of scale and track record in project management Nationwide project sourcing capability Fully Integrated Platform Across the Value Chain with Ability to Proactively Recycle Capital Maximizing Profitability via Vingroup s Integrated Development Platform Ability to Recycle Capital via Opportunistic Real Estate sales and Re-allocate Capital via M&A Activities Landbank & Land Acquisitions Vincom Center Ba Trieu Office Tower A Office Tower in Hanoi Vincom Center Ba Trieu Office Tower B Vincom Center A HCMC Office Tower in Hanoi Planning, Construction & Development Year 2006 2010 2012 2013 2015 Sale Price (1) US$25 mm Confidential US$64 mm US$472 mm Confidential Profit % (2) >150% >100% >900% >100% >130% Holding period 2 yrs 0 (3) yrs 8 yrs 1 yr 0 (3) yrs Recurring Income Property Sales Business Operations Capital Recycling / Divestments Vingroup creates value via its real estate platform before recycling capital into higher ROE projects Year Oct 2014, Apr 2015 Oct 2015 Dec 2016 Details Acquisition of both Oceanmart and Vinatexmart at cost Supply and distribution synergies with VinMart & VinMart+ network Acquisition of 5 Maximark malls, (>70,000sqm GFA) Expanded retail mall network, promoting Vietnamese brands Successfully integrated VinLinks infrastructure with the VinCommerce delivery platform VinLinks entire stake subsequently sold to Sagawa Express Vingroup has demonstrated its ability to proactively recycle, reinvest and divest assets 25 Source: CBRE, Savills, JLL, PwC Research and analysis Notes: (1) Exchange rate at the end of the transaction years were used. (2) % profit denotes the profit achieved from the sale, by comparing the sale price with the construction cost, taking into account depreciation, of the assets (3) Sold upon construction completion
5. Experienced & Proven Management Team With Strong Track Record 26
Experienced Management Team, Strong Corporate Governance and Sponsor Ms. Pham Thuy Hang Vice Chairwoman Mr. Nguyen Viet Quang Member Ms. Duong Thi Mai Hoa CEO 25 yrs experience 5 yrs with Vingroup 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 retained the position as the billionaire with the highest networth in Vietnam from 2013 to 2017 Ms. Thai Thi Thanh Hai Vice Chairwoman Ms. Pham Thu Huong Vice Chairwoman Mr. Joseph Gagnon (1) Member Ms. Mai Huong Noi Dy CEO 27 yrs experience 12 yrs with Vingroup Board of Directors Ms. Nguyen Dieu Linh Vice Chairwoman Mr. Marc Villiers Townsend (2) Independent Member Senior Management Ms. Le Thi Thu Thuy Vice Chairwoman Management Mr. Pham Van Khuong Dy CEO 31 yrs experience 15 yrs with Vingroup Management of Subsidiary Businesses Ms. Le Mai Lan Vice Chairwoman Ms. Nguyen Thi Diu Dy CEO 24 yrs experience 5 yrs with Vingroup Mr. Le Khac Hiep Vice Chairman cum Independent Member Prof. Ling Chung Yee Roy (3) Independent Member Ms. Duong Thi Hoan Dy CEO 19 yrs experience 11 yrs with Vingroup Ms. Nguyen Dieu Linh Vice Chairwoman (Vingroup) CEO 22 yrs experience 13 yrs with Vingroup Ms. Tran Mai Hoa CEO 24 yrs experience 4 yrs with Vingroup Ms. Thai Thi Thanh Hai CEO 24 yrs experience 4 yrs with Vingroup Ms. Le Thuy Anh CEO 18 yrs experience 6 yrs with Vinmec Ms. Vo Thi Phuong Thao CEO 20+ yrs experience 8 yrs with Vingroup Mr. James B. DeLuca CEO 30+ yrs experience with GM as Executive VP of Global Manufacturing Ms. Vu Tuyet Hang CEO 22 yrs experience 13 yrs with Vingroup Ms. Phan Ha Thuy CEO 17 yrs of experience 5 yrs with Vingroup 27 (1) Mr. Joseph Gagnon is a Managing Director of Warburg Pincus (2) Mr. Marc Villiers Townsend is the Chairman of CBRE Cambodia (3) Pro. Ling Chung Yee Roy is the Managing Director of RL Capital Management
Vietnam s Flag Bearer in the International Capital Markets c.us$2.2 bn Raised Internationally Through Several Pioneering Transactions Since 2010 Prestigious Global Awards and Accolades Vincom Retail Initial Equity Offering Frontier Markets Issue of the Year International Syndicated Loan Vietnam Best Syndicated Loan 2016 Domestic Senior Unsecured Notes, guaranteed by Private Equity Investment by 2013 Real-estate Deal of the Year Euromoney Real Estate Awards 2017 Best overall real estate developer in Vietnam Best retail developer in Vietnam Best mixed-used developer in Vietnam Best Leisure / Hotel Developer Best Private Equity Deal Nov 2017 US$743 mm Secondary Placement of Ordinary Shares July 2016 US$300 mm RegS/144A International Senior Unsecured Notes Vietnam Capital Markets Deal 2013 Best Vietnam Deal 2013 February 2016 VND3,000 bn International Syndicated Loan May 2013 US$200 mm June 2015 US$100 mm Convertible Bonds Best Capital Markets Deal 2012 Best Vietnam Deal 2012 Asia Pacific Property Awards 2016 Vietnam's Best Mixed-Used Development Vinhomes Central Park Vietnam's Best High-Rise Development Landmark 81 Vietnam's Best Residential Landscape Architecture Vinhomes Times City Park Hill Brand Finance Awards 2016 Vinhomes The most valuable real estate brand in Vietnam Vincom Retail, VinCommerce, Vinpearl and South Hanoi JSC Top 50 most valuable brands in Vietnam April 2014 US$70 mm Issuer that matters October 2013 US$200 mm October 2013 US$150 mm Best Vietnam Deal 2012 Apr & Jul 2012 US$300 mm (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 The Asset AAA: Vietnam Best Syndicated Loan 2016 Standard and Poors 2014: Top 100 ASEAN companies Finance Asia 2014: Region s Best Borrower Vietnam Southeast Asia Property Awards 2014: Best developer - Vietnam Vietnam Report 2017: Ranked 1 st in Top 10 Reputable Real Estate Developers category 2015: Top 10 largest corporate tax payers Forbes Vietnam 2016: Top 50 best listed companies on the Vietnam Stock Exchange Ministry of Industry and Trade 2015: Top 10 brand awards Vietnam National Administration of Tourism 2015: Top 10 5-star hotels in Vietnam 28 Note: (1) Converted into shares in 1Q2016
6. Future Developments 29
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Malaysia Thailand Philippines Indonesia Vietnam VinFast first Made In Vietnam automobiles VinFast: Vietnam Style Safety Innovation Pioneer THE brand of choice for Vietnamese cars Aiming to Become Leading Producer of Motorcycles and Automobiles Partnership with Renowned Designers and Leaders in Automotive Production Production capacity ( 000) E-scooters 1,000 5-seat Sedan & 7-seat SUV 500 Reputable strategic and production consultants 300 250 Renowned Italian design partners First year of launch (From 2H 2018) Vietnam Passenger Car Sales Expected to Grow Significantly Sales ( 000) 2025 First year of launch (From 4Q 2019) 2025 Low Automobile Penetration Compared to Regional Peers Share of households that own a car (%) 80% of car owners plan to buy new cars; car ownership expected to increase by 40% (1) 238 263 367 429 490 547 595 651 711 774 836 904 976 1,055 82% 51% 6% 4% 2% 30 1. Based on customer survey results, interviewing >500 people in Hanoi and Ho Chi Minh City conducted by BCG Source: EIU, Vietnam Ministry of Industry and Trade, Pew Research Centre (2014), HIS, IFM Research and BCG analysis
7. Financial Overview VAS 31
Income Statement Highlights VAS Revenue (US$ mm) Gross profit (US$ mm) 2,528 2,511 765 805 870 176 1,511 1,297 278 579 910 1,618 1,552 687 878 1,633 333 488 519 476 694 1,019 932 865 2013 2014 2015 2016 9M2016 9M2017 Property sales Recurring revenue EBITDA (US$ mm) 2013 2014 2015 2016 9M2016 9M2017 Profit for the year/period (2) (US$ mm) 586 (1) 590 338 (1) 454 414 469 337 177 154 139 121 67 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 32 Source: Audited VAS Consolidated FS for 2013, 2014, 2015, 2016 and Interim/Unaudited VAS Consolidated FS for 9M2017 Note: CAGR from 2013 to 2016. Based on exchange rate of US$1 = VND 22,770 (applied to 2017 financials) (1) Includes fair value adjustment of US$200mm realized when the Group sold Vincom Center A Ho Chi Minh City (2) Includes profit after tax of discontinued operations
Revenue Performance VAS Total revenue (US$ mm) Property sale (1)(2) (US$ mm) Retail leasing (US$ mm) 2,528 2,511 1,618 1,633 146 147 870 1,297 1,511 1,552 694 1,019 932 865 85 103 118 111 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 Consumer retail (1) (US$ mm) Hospitality & entertainment services (2) (US$ mm) Healthcare & education (US$ mm) 200 434 322 454 76 99 126 177 151 173 41 57 79 58 81-20 14 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M20169M2017 2013 2014 2015 2016 9M2016 9M2017 33 Source: Audited VAS Consolidated FS for 2013, 2014, 2015, 2016 and Interim/Unaudited VAS Consolidated FS for 9M2017 Note: CAGR from 2013 to 2016 Based on exchange rate of US$1 = VND 22,770 (applied to 2017 financials) (1) Includes adjustment for certain trading activities in consumer retail (2) Includes adjustment impact due to Vinpearl beach villa revenue guarantee scheme
Profitability Gross Profit and Margin VAS Total gross profit Property sale (1)(2) Retail leasing (US$ mm) (US$ mm) (%) (US$ mm) (%) 765 805 61% 56% 51% 51% 49% 56% 36% 37% 40% 35% 37% 35% 333 488 519 476 249 378 371 574 318 573 52 58 60 75 55 83 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 2013 2014 2015 2016 9M2016 9M2017 Consumer retail (1) Hospitality & entertainment services (2) Healthcare & education (US$ mm) (%) 16% 14% 14% 18% 6% 80 60 43 33 (US$ mm) (%) (US$ mm) (%) 46% 40% 24% 11% 22% 31% 34 39 Margin decline in FY16 due to 7-month closure of Nha Trang Resort and pre-opening costs incurred for 3 hotels 30 19 33 54 (20%) 28% 30% 12 17 16 20% 23% Margin decline due to two new schools and one new hospital built 14 10% 8 1 2013 2014 2015 2016 9M2016 9M2017 Gross Margin (includes depreciation and amortization under VAS) 2013 2014 2015 2016 9M2016 9M2017 (3) 2013 2014 2015 2016 9M2016 9M2017 34 Source: Audited VAS Consolidated FS for 2013, 2014, 2015, 2016 and Interim/Unaudited VAS Consolidated FS for 9M2017 Note: CAGR from 2013 to 2016 Based on exchange rate of US$1 = VND 22,770 (applied to 2017 financials) (1) Includes adjustment for certain trading activities in consumer retail (2) Includes impact of reclassification of gross profit due to sale of Vinpearl beach villas from hospitality & entertainment services to property sale; correspondingly, revenue recognized under the revenue guarantee scheme is reflected in the property sale segment
Balance Sheet Highlights VAS Total debt (1) and net debt (2) (US$ mm) Total cash and short-term investments (3) 1,296 617 647 880 595 627 2,028 1,745 1,638 1,532 1,150 885 678 758 1,401 2013 2014 2015 2016 9M2017 Total debt Net debt Total assets & total equity Net debt (2) / EBITDA (US$ mm) As of 1H2017 7,918 9,825 9,000 2,692 1.9x 2.2x 1.9x 2.1x (4) 6,455 3,585 4,214 1.2x 881 1,285 1,667 1,986 2,183 2013 2014 2015 2016 9M2017 Total assets (VAS) Total equity (VAS) Total assets (IFRS) Total equity (IFRS) 2013 2014 2015 2016 9M2017 35 Source: Audited VAS Consolidated FS for 2013, 2014, 2015, 2016, Interim/Unaudited VAS Consolidated FS for 9M2017, and (2) Net debt is equal to total debt less cash and cash Interim/Unaudited IFRS Consolidated FS for 1H2017 equivalents and short-term (ST) investments Based on exchange rate of US$1 = VND 22,770 (applied to 2017 financials) (3) ST investments include short-term loan receivables (1) Total debt is equal to interest-bearing loans and borrowings, plus financial liabilities designated as at fair value through profit or loss (4) Based on LTM EBITDA
Balance Sheet Highlights VAS (cont d) Diversified funding sources breakdown of total debt Breakdown of total assets Syndicated loan 14.4% Others 3.9% Total debt Domestic bond 69.2% Total assets US$9.0bn Residential 55.3% US$2.0bn Bank loans 12.5% Others 13.4% (1) Breakdown by currency Breakdown by interest rate USD 14.5% EUR 1.3% Fixed 13.6% Retail trading 6.6% VND 84.2% Floating 86.4% Hospitality & entertainment services 10.7% Leasing of retail area 14.1% 36 Source: Interim/Unaudited VAS Consolidated FS for 9M2017 Based on exchange rate of US$1 = VND 22,770 Note: As of 30 September 2017 (1) Includes assets relating to hospital operations and education operations, as well as cash & cash equivalents, short-term investments, receivables, investments in associates, and other adjustments
Debt profile overview VAS Debt maturity (US$ mm) As of 30 September 2017: Average debt maturity: 2.38 years 1,074 29 113 505 932 378 249 28 45 134 71 25 211 216 45 Less than 1 year 1-3 years 3-5 years More than 5 years Corporate bonds Syndicated loan Bank borrowings Average borrowing cost 10.8% 9.9% 9.4% 8.8% 8.7% Dec-13 Dec-14 Dec-15 Dec-16 Sep-17 37 Source: Audited VAS Consolidated FS for 2013, 2014, 2015, 2016 and Interim/Unaudited VAS Consolidated FS for 9M2017 Based on exchange rate of US$1 = VND 22,770 (applied to 2017 financials)
Appendix 38
Retail Consolidates Around the Dominant Local Landlord Vincom Retail Vietnam s largest retail developer, owner and operator Total Market Size (GFA sqm) (1) Market Share by GFA (1) 1.3 mm 60% GFA (mm sqm) (1) 0.78 Global examples clearly demonstrate retail consolidation around the dominant local landlord Significant parallels seen between VRE and regional retail leaders Vietnam's current position at an early, higher growth stage of the retail cycle translates to a stronger growth profile and a more dominant market share 2017 2017 Central Pattana Thailand s largest shopping mall developer arm of Central Group Total Market Size (NLA sqm) (2) 3.9 mm 4.4 mm Market Share by NLA (2) NLA (mm sqm) (2) 15 17% % 0.6 0.7 2013 2016 2013 2016 Vietnam Thailand Philippines Singapore Indonesia SM Prime Philippines largest retail real estate developer Total Market Size (GFA sqm) (3) 7.8 mm GFA (mm sqm) (3) 2.2 10.7 mm 3.5 2007 2016 Market Share by GFA (3) 28 % 33% 2007 2016 Scentre Group Australia s largest retail owner and operator Market Share by GLA (6) 25% 19% 2002 2008 Total Market Size (GLA sqm) (6) 11.1 mm 14.9 mm CapitaLand Lippo Karawaci Simon Property Singapore s largest retail mall owner and manager Indonesia s largest mall owner and operator arm of Lippo Group US s largest shopping mall operator Market Share by NLA (4) 13% 17% Market Share by GFA (5) 32% 39% Australia United States Market Share by GLA (7) 3.4% 2.1% 2008 2013 Total Market Size (NLA sqm) (4) 3.2 mm 3.5 mm 2012 2017 Total Market Size (GFA sqm) (5) 6.8 mm 8.5 mm 1996 2007 Total Market Size (GLA sqm) (7) 502 mm 657 mm 39 Source: Company filings, Colliers, Statista, Urban Redevelopment Authority, Savills, Urbis. 1. Based on Vincom Retail s combined retail GFA in Hanoi and HCMC, and GFA of all multi-tenant shopping malls in Hanoi and HCMC. As at August 2017 2. Based on Central Pattana s retail NLA in Bangkok and total shopping mall NLA in Bangkok 3. Based on SM Prime s retail GFA in Metro Manila and total retail GFA in Metro Manila 4. Based on CapitaLand s retail NLA in Singapore, and total retail NLA in Singapore. Includes only operational malls and retail space of integrated developments of CapitaLand 5. Based on Lippo Karawaci s retail GFA in Indonesia, and combined shopping mall GFA of Jakarta, Greater Jakarta and Surabaya. Total Indonesian Retail GFA unavailable 6. Based on Westfield Holdings GLA in Australia in 2002 and 2008, divided by total Australia shopping center GLA in 2001 and 2007. Westfield Holdings was restructured into Scentre Group in 2014 7. Based on Simon Property s retail GLA in the U.S, and total shopping mall GLA in the U.S.
Vincom Retail Poised to Enjoy Market Dominance in Retail Space Mall Evolution Of Peers In The Last 10 Years Market Cap SM Prime (Philippines) CPN (Thailand) Metrics 2006 US$2.2 bn US$1.4 bn Mall Count 36 27 30 10 10 12 39 43 15 15 62 51 53 55 46 29 18 20 23 25 6 21 3 5 67 31 30 Market Cap SM Prime (Philippines) CPN (Thailand) Metrics 2016 US$16.5 bn US$7.1 bn 2006 2016 7.5x increase CAGR of 22.4% 5.1x increase CAGR of 18.0% GDP per capita (US$) Philippines 1,390 Thailand 3,370 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 SM Prime Central Pattana Vincom Retail GDP per capita (US$) Philippines 2,947 Thailand 5,913 VRE has Superior Growth Profile Compared to Regional Peers (CAGR by no. of malls) 2011 2016 CAGR 2017E 2021E CAGR (2) 59.5% and Has a Portfolio Much Larger than Domestic Peers (no. of malls) (1) Retail GFA (1) (mm sqm) 1.2 0.3 0.1 0.4 44 10.8% 7.8% 44.4% 13 6 4 VCR Lotte Parkson Aeon Poised to Enjoy Long-Term Market Dominance in Retail Space Commanding Lead over Competitors in Vietnam 40 Source: Company filings, EIU, FactSet. 1. Refers to large-scale retail properties that include multi-tenant (shopping malls) and predominantly single-tenant formats (department stores). 2. Assuming all remaining pipeline projects are completed by 2021
Metro Infrastructure Will Accelerate Retail Mall Footfall Most of VRE malls are covered by the upcoming metro lines in Ho Chi Minh City and Hanoi significant boost in connectivity and footfall expected. Ho Chi Minh City Ho Chi Minh City Airport 6 Tân Bình 2 VINCOM PLAZA 3/2 3 District 6 5 Phú Nhuận District 5 4 District 10 District 3 Gò Vấp VINCOM PLAZA SAIGON RES Bình Thạnh CBD District 1 District 4 5km ` VINCOM CENTER DONG KHOI Thủ Đức VINCOM MEGA MALL THAO DIEN 1 7 Hanoi Nhổn 6 VINCOM CENTER NGUYEN CHI THANH Phú Đô Đại Mỗ Dương Nội 3 Mai Dịch phường Xuân Đỉnh 8 4 Trung Văn VINCOM MEGA MALL ROYAL CITY Phú Thượng CBD 5 Nhật Tân VINCOM CENTER BA TRIEU 2 5km Bách Khoa Giáp Bát Ngoc Thuy Trung Thôn Đông Ngàn 1 Ngọc Lâm 3 p. Long Biên VINCOM MEGA MALL TIMES CITY Thanh Trì District 8 District 7 Khu đô thị Xa La Văn Điển 41 Metro Lines With the opening of urban metro lines in Ho Chi Minh City and Hanoi, the shift from street retail to organized retail malls will accelerate Under Construction Vingroup Planned Lines mixed-use & VRE mall models are able to tap on this trend, given the targeted positioning and proximity to stations
Holistic Segment Coverage Room Rate Segments Vinpearl: Capturing The Full Spectrum of Customer Segments Average Daily Room Rate More than US$300 US$120 $300 Vinpearl s integrated resort model clearly differentiates itself from other competitors who only offer a standalone hotel product Holistic Coverage Across Room Rate Segments Family Destinations Integrated facilities with a diverse range of entertainment at renowned resort destinations Vinpearl Premium Resorts: High-end international and domestic tourists Families and frequent visitors Vinpearl Resorts: Upper-mid income international and domestic travelers Tour group-friendly Corporate retreats Small families and couples Exclusive Getaways Exotic adventures/new destinations with direct connectivity to integrated resorts Vinpearl Villas: Multi-generation international and domestic tourists Exclusive beach villas directly connected to integrated facilities or stand-alone hotels Situated at newly launched / innovative / exotic locations Prioritizes exclusivity and tailored services Savvy Travelers Centrally located and highly accessible city hotels and condotels in established tourist cities Vinpearl has access to addressable market segment of over US$7.4bn (1) of tourist spending International Brand Hotels Target Segment: Upper middle income Lower than US$120 Others Vinpearl Oasis: Mid-income domestic travellers and tour groups Small families and couples Vinpearl Golf Affluent, upper-mid income regional and domestic travelers Business Travelers Individuals, small families and friends VinpearlLand / Safari Across all income levels and age groups Mainly upper income locals Vinpearl Hotels and Condotels: Business executive and business travelers Small families Local Brand Hotels Target Segment: Middle/Upper Middle income Competitors 42 Source: EIU. Notes: (1) Based on 2016 International tourism receipts in Vietnam.
Foreign retailers Domestic modern retailers VinCommerce Competitive mapping Amongst modern retailers, only Vingroup is active in all stages of the value chain Production Processing Distribution and retail Key players Input Grow Harvest Packaging Storage Logistics Distribute Retail VinMart VinEco Domestic retailer #1 Cooperatives & individual farmers, wholesalers Domestic retailer #2 Cooperatives & individual farmers, wholesalers Foreign retailer #1 Sourcing from farms in Vietnam Foreign retailer #2 Cooperatives & individual farmers, wholesalers Foreign retailer #3 Cooperatives & individual farmers, wholesalers Foreign retailer #4 Cooperatives & individual farmers, wholesalers 43 Source: PwC research
VinCommerce Complemented by Innovative E-commerce and Robust Infrastructure is the growth driver for VinCommerce Well developed infrastructure 28 modern logistic hubs in 13/63 cities and provinces nationwide 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 8,300 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 Vietnam s largest community of 3.8 mm members First and only card in Vietnam that is able to connect and integrate advantages and benefits Points can be redeemed everywhere within the Vingroup ecosystem Special priorities and benefits for cardholders 44 As of 31 December 2017
Disclaimer 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 subsidiaries (the Group ). You should not rely upon it or use it to form the basis for any investment decision or commitment whatsoever. None of the Company, its shareholders, or any of their respective affiliates, directors, officers, employees, agents, advisers or any other person makes any representation or warranty (express or implied) or accepts any responsibility or liability for the accuracy or completeness of this presentation or any or all of the information in this presentation or otherwise made available. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial or trading position or prospects of the Group. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Further, nothing in this presentation should be construed as constituting legal, business, tax or financial advice. You should conduct such independent investigations and analysis of the Group as you deem necessary or appropriate in order to make an independent determination of the suitability, merits and consequences of investment in the Company. This presentation contains forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company s control and all of which are based on management s current beliefs and expectations about future events. Forwardlooking statements are sometimes identified by the use of forward-looking terminology such as believe, expects, may, will, could, should, shall, risk, intends, estimates, aims, targets, plans, predicts, continues, assumes, positioned or anticipates or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are not guarantees of future performance. These forward-looking statements speak only as at the date of this presentation, and none of the company, its shareholders, or any of their respective affiliates, directors, officers, employees, agents, advisers or any other person undertakes to update or revise any forward-looking statements as a result of new information or to reflect future events or circumstances. 45
Investor Relations Department Vingroup JSC Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area Long Bien District, Hanoi, Vietnam Tel: +84 (24) 3974 9999 ext. 9759 Fax: +84 (24) 3974 8888 Website: http://www.vingroup.net E-mail: ir@vingroup.net 46