VINGROUP JOINT STOCK COMPANY he co dong/0_Vingroup_2017/02... · Source: CBRE Vingroup is a key beneficiary of the positive Vietnam real estate outlook 0 2,000 4,000 6,000 8,000 Q1

VINGROUP JOINT STOCK COMPANY

Corporate Presentation February 2017

CORPORATE PRESENTATION2

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


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


One of the Most Attractive Southeast Asian Economies

One of the fastest growing economies in the region

258

10193

68

31

6

Indonesia Philippines Vietnam Thailand Malaysia Singapore

The third most populous country in Southeast Asia(1)

2015 population (bn)

6.6%6.2%

5.0%4.3%

3.1%

1.8%

Philippines Vietnam Indonesia Malaysia Thailand Singapore

0

20

40

60

80

1001

96

0

196

5

197

0

197

5

198

0

198

5

199

0

199

5

200

0

200

5

201

0

201

5

4550

7882 85

2012 2013 2014 2015 2016

Catching up with regional peers in urbanization(4)

(% of total population)

Increasing business confidence from foreign investors (3)

Singapore–100%

Malaysia–75%

Thailand–50%

India–33%Vietnam–34%

China–56%Indonesia–54%

Philippines–44%

Sources:

(1),(2) Economist Intelligence Unit

(3) Eurocham 2016

(4) World Bank, Urbanization Data, 2015

2016 real GDP growth (%)

Business Climate Index in Vietnam (index point)


Healthy Macroeconomic Conditions Supporting Growth

Inflation and interest rates are under control

(US$ bn)

Disbursed FDI consistently on the rise

10.5 11.5

12.4

14.5 15.8

2012 2013 2014 2015 2016

Exchange rate remains resilient

20,649 20,859 21,017 22,495 22,774

2012 2013 2014 2015 2016

(VND)

Average devaluation: 2.9% p.a

9.1%6.6%

4.1% 0.6% 2.7%

13.5%

10.4%

8.7% 8.4%9.5%

2012 2013 2014 2015 2016

Inflation Lending Interest Rate

Source: General Statistics Office of Vietnam

112.0123.7

136.4 141.3154.7

2012 2013 2014 2015 2016

(US$ bn)

Consumer spending growth


Consumer Confidence Index

Positive trends in consumer confidence(2)

Favorable Long-term Outlook for Consumption and Modern Retail

2008 2009 2010 2011 2012 2013 2014 2015 Q2 2016

Positive Neutral Negative

8964

78 79 6856 51

85 91

Region’s lowest retail space(3)

Modern retail space in SEA cities (thousand sqm), Q2 2016

0

2,000

4,000

6,000

8,000

Ba

ng

kok

Sin

ga

pore

Ma

nila

Ku

ala

Lu

mpu

r

Jakarta

Ha

noi

Ho

Chi M

inh

City

Ph

no

m P

en

h

Ya

ng

oo

n

Sources:

(1) General Statistics Office, based on exchange rate of US$1 = VND 22,790 as of 31 December 2016 (applied to 2016 number)

(2) TNS Consumer Confidence Index (4) Euromonitor

(3) CBRE, Yangoon, Kuala Lumpur and Manila: data as of 2014

5.0%

16.8%

28.9%

43.1% 45.3%

71.9%

Vietnam Indonesia Philippines Malaysia Thailand Singapore

Lowest penetration rate of modern grocery retail(4)

2015 modern grocery retail as part of total grocery retail by value (%)

Constant improvement in individual income(1)

1,749

1,933

2,0522,109

2,215

2012 2013 2014 2015 2016

Vietnam’s GDP per capita (US$)

CORPORATE PRESENTATION7Source: CBRE

Vingroup is a key beneficiary of the positive Vietnam real estate outlook

0

2,000

4,000

6,000

8,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

High-end Mid-end Low-end

2015 20162013 2014

0

2,000

4,000

6,000

8,000

10,000

12,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4


2015 20162013 2014

Vietnam Residential Market is in the Uptrend

(US$ psm)(Number of units sold)

Hanoi residential transactions on the rise with… …high- and mid-end prices reaching a 4-year high

$0

$500

$1,000

$1,500

$2,000

2013 2014 2015 2016


$0

$500

$1,000

$1,500

$2,000

2013 2014 2015 2016


(Number of units sold) (US$ psm)

HCMC residential transactions rapidly accelerating with…

…high-and mid-end prices increasing the fastest in the

last 2 years


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


Evolution of Vingroup

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

9 34 1111

92 180109

305

863

1,293

1,526

2,569

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Total Assets ($ mm)

Vinpearl Land Nha Trang

Listed on HOSE

(largest real estate co.)

$100 mm convertible bond

Vincom – Vinpearl merger

$300 mm convertible bond

Vinmec Times City International

Hospital (Hanoi) opened

$472 mm sale of Vincom

Center A HCMC mall

$550 mm raised from

international financial market

Completion of Royal City &

Times City projects

Vincom Center

Ba Trieu

Vinpearl Resort

Nha Trang

Vincom JSC

Vinpearl JSC

1993 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Revenues ($ mm)

$70 mm equity placement

Managed 5 Vinpearl resorts

6 Vincom shopping malls in

operation

Vinhomes Central Park

construction started

Vinmart launched

$100 mm Warburg Pincus

follow-on investment in

Vincom Retail

10 new Vincom shopping

malls & acquisition of

Maximark

2 new Vinpearl resorts

2 new Vinmec Int’l

hospitals

“Preserving the Start-up Mindset”

Technocom

Vincom Plaza Long Bien

2 new Vinpearl resorts in

Da Nang and Nha Trang

Vinpearl Golf Club Nha

Trang opened

VND 3 trillion bond

guaranteed by CGIF

US$300mm international

syndicated loan

10 new Vincom shopping

malls

1 new Vinpearl resort & 1

new Vinpearl city hotel

1 new Vinmec Int’l hospital

Vinhomes Gardenia and

Vinhomes Golden River

construction started


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)

Re

sid

en

tial Golf Courses, Gyms and Spas

Healthcare (Vinmec)

Agriculture (VinEco)Education (Vinschool)

Shopping Malls (Vincom Center, Vincom Mega Mall

and Vincom Plaza)

Supermarkets (VinMart), Convenience Stores (Vinmart+), Electronic

Retailing (VinPro), Consumer Lifestyle (VinDS) and E-commerce (Adayroi)

Ho

sp

itality

Reta

il L

easin

g,

Co

ns

. R

eta

il

So

cia

l

aâ

Infr

Infra

stru

ctu

re


Ecosystem of Complementary Products and Services

Retail & Property | Vincom quality shoppingmalls

Largest retail portfolio in Vietnam with1,000,000 sqm of retail GFA

4 Vincom Centers at prime locations inVietnam’s major cities

3 Vincom Mega Malls, large scalecommercial & entertainment developments

24 Vincom Plazas & Vincom+ in 21 cities& provinces

Property | Vinhomes premium apartments & villas

Largest residential developer in Vietnam

Quality residential properties with uncompromisingservices, located at prime locations & supportedby comprehensive facilities & amenities

Property | Vincom Office premium officeleasing

3 office developments at the centers ofHanoi & HCMC’s financial centers

As of 31 December 2016

Social Infrastructure Services |Vinschool high quality K-12 education

Comprehensive kindergarten to highschool Vietnamese curriculum

Over 14,000 students registered at 6facilities

Hospitality & Entertainment | Vinpearlresorts and Vinpearlland entertainment

Leading hospitality operator with over5,000 rooms managed

9 Vinpearl 5–star & 5– star–plus resortsand hotel at the best beaches in Vietnam

2 international-standard golf courses

3 large-scale outdoor amusement parks inVinpearl developments

6 indoor entertainment centers at Vincomcommercial developments

Social Infrastructure Services | Vinmechigh quality healthcare services

Leading healthcare provider with 500beds under operation

5 full-serviced general hospitals

2 clinics

Social Infrastructure Services | VinEco trusted source offresh food

VietGAP standard farms producing fresh vegetables, fruits,& exclusive cooperation to produce and rice and meat

Vingroup Card comprehensive loyalty program

Credit system consistently applied acrossVingroup’s ecosystem of products andservices. Points can be redeemed anywhere

Special priorities and benefits for cardholders

Consumer Retail | VinCommercemodern retail in all formats(2)

22 in 63 cities & provincescovered, VinCommerce is theleading modern retailer with oneof the largest networks inVietnam

Vinmart/Vinmart+ operates 53supermarkets & 825convenience stores

VinPro operates 23 electronic,home appliances & ICT stores

VinDS sells home furniture,apparels & cosmetics through 65stores

Adayroi!com comprehensiveB2C ecommerce website

VinExpress inter-city & last-miledelivery with 20 distribution hubs


Significant Focus on Recurring Revenue Streams

Source: Audited VAS Consolidated Financial Statement for 2012, 2013, 2014, 2015 and Unaudited VAS 2016

(% of total in

2016)

44%

16%

23%

18%

Recurring revenue growthPortfolio of commercial real estate continues to ramp up(US$ mm)

Revenue diversified across retail & non-retail segments(US$ mm) CAGR: Retail = 75%, Non-Retail (NR) = 58%

176 278571

901

20.2% 21.3% 38.4% 35.0%

0

500

1,000

1,500

2013 2014 2015 2016

Recurring revenue Recurring % total revenue

Strategic shift towards a greater percentage of revenue comingfrom recurring income streams such as leasing, consumer retail,hospitality, healthcare, and schools enhances the resilience ofthe business model.

118 144

191

392 126

207

142

158

2013 2014 2015 2016

(Retail) Leasing (Retail) Consumer Retail

(NR) Hospitality & Entertainment (NR) Education, Heathcare & Others


Experienced Management Team, Good Corporate Governance and

Strong Sponsor

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.

Ms. Pham Thuy Hang

Vice Chairwoman

Ms. Mai Huong Noi

Member cum Deputy CEO

Ms. Pham Thu Huong

Vice Chairwoman

Mr. Joseph Gagnon(1)

Member

Ms. Nguyen Dieu Linh

Vice Chairwoman

Mr. Marc Villiers Townsend(2)

Independent Member

Mr. Le Khac Hiep

Vice Chairman cum Independent Member

Prof. Ling Chung Yee Roy(3)

Independent Member

Board of Directors

(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

Ms. Mai Huong Noi

Board member & Dy CEO

26 yrs experience

11 yrs with Vingroup

Ms. Nguyen Thi Diu

Dy CEO

20+ yrs experience

4 yrs with Vingroup

Ms. Nguyen Dieu Linh

Vice Chairwoman (Vingroup)

CEO (Vinhomes 1)

21 yrs experience


Ms. Vu Tuyet Hang

CEO (VinEco)

21 yrs experience


Mr. Pham Van Khuong

Dy CEO

29+ yrs experience


Ms. Duong Thi Mai Hoa

CEO

20+ yrs experience

4 yrs with Vingroup

Mr. Dang Thanh Thuy

CEO (Vinpearl)

21 yrs experience

13 yrs with Vinpearl

Ms. Le Thuy Anh

CEO (Vinmec)

17 yrs experience

5 yrs with Vinmec

Management

Ms. Le Mai Lan

Chairwoman (Vinschool)

16 yrs of experience

4 yrs with Vingroup

Ms. Tran Mai Hoa

CEO (Vincom Retail)

23 yrs experience

3 yrs with Vingroup

Ms. Thai Thi Thanh Hai

CEO (VinCommerce)

23 yrs experience

3 yrs with Vingroup

Ms. Luu Thi Anh Xuan

CEO (Vinhomes 2)

26 yrs experience

3 yrs with Vingroup

Ms. Duong Thi Hoan

Dy CEO

18 yrs experience



Vietnam’s Flag Bearer in the International Capital Markets

(1) Total of US$300 mm CBs were converted into shares by 16 March 2016

Holistic cooperation with financial institutions, including

facilitation of mortgage financings for customers and

transactional banking services at Vingroup commercial

properties

Good relationship with all leading domestic banks with

repeat loan and bond issuance

Best Capital Markets Deal 2012

Convertible Bonds

Apr & Jul 2012

US$300mm(1)

Best Vietnam Deal 2012


Secondary

Placement of

Ordinary Shares

April 2014

US$70mm

International

Syndicated Loan

October 2013

US$150mm

RegS/144A

International Senior

Unsecured Notes

October 2013

US$200mm


Vietnam Capital

Markets Deal 2013

Issuer that matter

2013 Real-estate Deal

of the Year

May 2013

US$200mm

June 2015

US$100mm

Private Equity

Investment by

February 2016

VND3,000 trln

Domestic Senior

Unsecured Notes,

guaranteed by

Prestigious awards and accolades

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 2016

Vinhomes – The most valuable real estate brand in Vietnam

Vincom Retail, VinCommerce, Vinpearl and Times City – Top 50 most valuable brands in 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

Domestic awards in

2015

The Asset AAA: Vietnam Best Syndicated Loan 2016

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

More than US$1.5 billion raised internationally through

several pioneering transactions since 2010

July 2016

US$300 mm

International

Syndicated Loan

Vietnam Best

Syndicated Loan 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


Largest Residential and Commercial Developer in Vietnam

(1) As of 31 January 2017

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 108 developments, which are in prime urban and high growth areas in key cities throughout Vietnam

Proven ability to secure prime sites in the Central Business

Districts of Hanoi and Ho Chi Minh City

Landmark projects across young and dynamic cities and provinces

in Vietnam

Growing portfolio of quality properties that operate under the

Vingroup brand names: a critical contributor of recurring revenue

Track record of successful project development, sales and

property management

108 projects across VietnamThe largest listed real estate(1) company in Vietnam

A clear leader in Vietnamese real estate

(market capitalization, US$ mm)

One of the largest-

listed companies in

Vietnam

High-quality

commercial,

residential,

hospitality and

mixed-used

properties

Developer of

industrial and

business parks

Infrastructure

development

Developer of

integrated low-rise

projects with

accompanied

utilities in

Southern Vietnam

32 projects at key

tourist destinations

Operating Project

Under construction and

pipeline projects

76 Mixed used and

shopping malls projects at

prime locations in key cities

Ho Chi Minh City 9 operational shopping malls Vinmec Central Park Int’l Hospital


Vinhomes Golden River

Vinhomes Long Beach Can Gio

6 Vincom malls under construction &

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

9 Vincom malls under construction &

development

South Vietnam (Excluding HCM city) 4 operational Vincom malls Vinmec Phu Quoc Int’l Hospital

11 Vincom malls under

construction & development

Central Vietnam Vinmec Nha Trang Int’l Hospital 5 operational Vincom mall

8 Vincom malls under development

South Vietnam (Excluding Nha Trang, Khanh Hoa)Vinpearl Land – Phu Quoc Vinpearl Golf Club – Phu Quoc Vinpearl Phu Quoc Resort Vinpearl Phu Quoc Resort & Golf Vinpearl Safari Phu Quoc

Vinpearl Phu Quoc Villas

Vinpearl Phu Quoc Paradise

Villas

Con Au, Can Tho

Central Vietnam Vinpearl Da Nang Resort & Villas

Da Nang 2, Da Nang

Vinpearl Resort Hoi An

Vinpearl Cua Sot, Ha Tinh

Vinpearl Cua Hoi, Nghe An

Vinpearl Riverfront Condotel,

Da Nang

Vinpearl Da Lat

Vinpearl Quy Nhon, Binh Dinh

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

Vinpearl Bai Tru

Vinpearl Long Beach Villas

North Vietnam

Vinpearl Ha Long Bay Resort

Vu Yen Island, Hai Phong

Hanoi Royal City Times City Vinhomes Riverside 54A Nguyen Chi Thanh 7 operational Vincom malls Vinmec Times City Int’l Hospital

Vinhomes Gardenia

Vinhomes Smart City

Vinhomes Green Bay

Vinhomes Skylake

Vinhomes The Harmony (Riverside 2)

Green City – Dan Phuong

4,893

1,578

287 204

Vingroup #1 #2 #3

Developer of high-

rise residential

projects in

Southern Vietnam

CORPORATE PRESENTATION17As of 30 September 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

(mm sqm)

(mm sqm)

One of the Largest Landbanks in Prime Locations Across Vietnam

Landbank breakdown GFA breakdown(1)

Planned GFA breakdown

84.7 mm sqm 84.7 mm sqm

45.5mm sqm 45.5 mm sqm 84.7 mm sqm of landbank is sufficient for at least 10 years of

development

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

Land banking strategy

Villas,shophouse

35%

Beach Villas3%

Highrise24%

Commercial16%

Hotel6%

Hospital3%

School4%

Entertainment9%

3.4

36.0

6.1 5.5

39.9

Retail Mixed used &commercial

Hospitality Completed &Operational

Underconstruction &development

0.9

32.7

51.2

9.1

75.7

Retail Mixed used &commercial

Hospitality Completed &Operational

Underconstruction &development


Robust Residential Sales: New Projects

As of 31 December 2016

(1) Pre-Sale launched

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

2,507 units presold in 2016

97% of all launched residential units presold to date

Total contract value: US$1,566 mm, received US$1,028 mm

First delivery: Q4 2016

Vin

ho

mes

Cen

tral P

ark

Nov-14(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 contract value: US$218 mm, received US$128 mm

First delivery: Q4 2016 (low-rise), Q4 2017 (high-rise)Vin

ho

mes G

ard

en

ia

Jan-16(1)

9,295 10,498 10,498 10,498 10,498

7,641 9,070 9,305 9,790 10,148

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

Cumulative units launched Cumulative units presold

Villas, Shophouses & condotels in Nha Trang, Phu Quoc,

Danang, Hanoi, Ho Chi Minh City, Yen Bai, Tuyen Quang,Thai

Binh, Ha Tinh, Hai Phong, Thanh Hoa, Can Tho, Rach Gia, Hau

Giang, Tra Vinh, Vinh Long, Long An, Quang Binh, Ha Nam


81% of all launched units presold to date

Total contract value: US$2,207 mm, received US$1,827 mm


1,969

3,566

5,301

6,870 7,035

1,190 1,876

3,214

4,990 5,690



The most spectacular location in the heart of Distric 1

alongside Saigon River and Thi Nghe Canal with direct

connection to the city’s first ever underground Metro line.




Total contract value: US$513 mm, received US$375 mm


2,070

2,546 2,546

1,167

1,647 1,854



Vin

ho

mes

Go

lden

R

iver

Apr-16(1)

Villa

, S

ho

ph

ou

se

&

Co

nd

ote

lsP

roje

cts

Apr-15(1)

1,296 1,296

2,037 2,037

819

1,228 1,271

1,725




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

DeliveryPresalesLand Acquisition

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 “approval-

in-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

o Start construction of the project

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

First Stage of Presale –

Signing of SPA

When foundation work or

first floor area is complete

A deposit of c.US$10,000 is

required to be placed whilst

the SPA is being prepared

The first SPA payment is

about 25-30% of the

purchase price

Stage 1 – Sale & Purchase

Agreement (SPA)(1)

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

(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

Demonstrated ability of successful asset sales even in challenging macroeconomic conditions

(1) As of 31 December 2016

(2) Sale price and Profit to be adjusted after hand-over

(3) Exchange rate at the end of the transaction years were used.

Recycling of capital into new investments to generate high ROE

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

Integrated development model


24%

76 %

Residential GFA(1)

Residential segment

presales helps to lighten

capital requirements in a

mixed-use project

Commercial and

others’ GFA(1)

Recurring

revenue

becomes a

larger

component of

total project

revenues

over time

Recycle capital through opportunistic asset sales

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)

2006 2010 2012 2013 2015

(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

CORPORATE PRESENTATION22As of 31 December 2016

(1) Excludes stores in Hanoi

(2) Excludes stores in Ho Chi Minh City

Comprehensive multi-format retailer

Nation-wide Retail Network

cities and provinces covered

Hanoi

7 Vincom malls15 VinMart

400 VinMart+

6 VinPro16 VinDS

North Vietnam(1)

4 Vincom Plazas7 VinMart

12 VinMart+4 VinPro

10 VinDS

Central Vietnam

4 Vincom Plaza3 VinMart

35 VinMart+

2 VinPro7 VinDS

South Vietnam(2)

7 Vincom Plazas15 VinMart23 VinMart+

6 VinPro11 VinDS

Ho Chi Minh City

9 Vincom malls13 VinMart

355 VinMart+

5 VinPro21 VinDS

23 VinPro878 VinMart & VinMart+ 65 VinDS

Vinmart (>3,000 sqm

supermarkets) and

Vinmart+ (100–300 sqm

convenience stores)

VinPro (electronics and

ICT)

VinDS (Specialty retail

stores specializing in

cosmetics, shoes,

sportswear, furniture &

household appliances)

22 / 63

Key retail brands

31 retail malls across Vietnam

Prime locations in Vietnam’s major

cities with premium brandsLarge scale shopping malls combined

with the latest entertainment facilities

Modern shopping experience in

newer cities and suburban areas

stores966

sqm GFA1 million

3 Vincom Mega Malls4 Vincom Centers

22 Vincom Plazas

Small-scale shopping malls in small

towns and districts in newer cities

2 Vincom+

CORPORATE PRESENTATION23As of 31 December 2016

Well developed infrastructure

Complemented by Innovative E-commerce and Robust Infrastructure

is the growth driver for VinCommerce

Internal customers

External customers

Over 7,000 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

20 modern logistic hubs in North, Central and South Vietnam

8/53 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

Large community of

over 1.8 million

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


Growing Portfolio of Retail Properties Attracts Premium Brands

Vingroup’s brand names are instrumental in securing new sites, achieving premium pricing and attracting over 800

retail and F&B brands

(1) Tenants for Vincom Center and Vincom Mega Mall in Ho Chi Minh City and Hanoi

1 1 2 3 5 6

17

31

0

10

20

30

40

-

500,000

1,000,000

1,500,000

2004 2009 2010 2012 2013 2014 2015 2016

GFA No. of shopping malls

Fashion, beauty and accessories

Food & Beverage and others

1,000,000 sqm


E. Financial Overview - VAS

(1) Source: Audited VAS Consolidated Financial Statement 2013,2014,2015 and unaudited VAS Consolidated Financial Statement 2016

Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016


(US$ mm)

Debt profile overview

Debt maturity

Average borrowing cost

Source: 2016 unaudited VAS Consolidated Financial Statement, 2012, 2013,2014 and 2015

audited VAS Consolidated Financial Statements

As of 14 November 2016, the entire US$200mm international bonds issued in 2013 has

been repaid

11.3% 10.8%9.9% 9.4%

8.8%

Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Note: Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016

175

895

84 45

19638

95

42

29

23236

1,103

321

74

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

As of 31 December 2016:

• Average debt maturity: 2.7 years


Debt Mix Analysis

Total: VND39,537 Bn (US$1.73Bn)

Diversified funding sources(1)

Note: Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016 (applied to 2016 financials)

(1) Based on Unaudited VAS Consolidated Financial Statements for 2016

Debt breakdown(1)

By currency

By interest rate

Domestic bond, 69.1%

Convertible loan, 1.1%

Bank loans, 13.1%

Syndicated loan, 16.7%

VND, 81.9%

USD, 18.1%

Floating, 90.1%

Fixed, 9.9%

CORPORATE PRESENTATION28(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

Income Statement Highlights

Source: Audited VAS Consolidated FS for 2013, 2014, 2015 & unaudited VAS Consolidated FS for 2016

Note: CAGR from 2013 to 2016

Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016 (applied to 2016 financials)

333

488

384

788

2013 2014 Sep-14 2016

138

177 67

154

2013 2014 2015 2016

586

454

337

605

2013 2014 2015 2016

6941,019 940

1,668176

278 571

901

870

1,2971,511

2,569

2013 2014 2015 2016

Property sale Recurring revenue

(US$ mm) (US$ mm)

(US$ mm)(US$ mm)

Revenue

EBITDA

Gross profit

Profit for the year(1)(2)

Adjustment for sale of Vincom Center A HCMC

200

338


(US$ mm)(US$ mm)

(US$ mm)

Retail leasing

(US$ mm)

Property sale

Hospitality & entertainment services Healthcare & education

Revenue Performance




Consumer retail

(US$ mm)

Total revenue

870

1,2971,511

2,569

2013 2014 2015 2016

694

1,019940

1,668

2013 2014 2015 2016

85

103

118

144

2013 2014 2015 2016

020

191

392

2013 2014 2015 2016

76

99

126

207

2013 2014 2015 2016

14

41

57

79

2013 2014 2015 2016


(US$ mm) (%)(US$ mm) (%)

Retail leasingProperty sale


Profitability – Gross Profit and Margin




(US$ mm) (%) (US$ mm) (%)

Consumer retail(US$ mm) (%)

(US$ mm)

Total gross profit

249

378 381

660

36% 37% 41% 40%

2013 2014 2015 2016

52 58 6074

61% 56% 51% 51%

2013 2014 2015 2016

34 39

28

(8)

46% 40%22%

(4%)

2013 2014 2015 2016

(3)

12 17 17

(20%)

28% 30% 22%

2013 2014 2015 2016

2431

6%

13%8%

2013 2014 2015 2016

Gross Margin

333

488 519

788

2013 2014 2015 2016


44% 41%

31% 34%

2013 2014 2015 2016

3,5854,214

6,455

7,890

8811,285

1,667 1,956

2013 2014 2015 2016

Total assets Total equity

356 356 308438

261 291

573 295

617 647

881

733

2013 2014 2015 2016

Cash and cash eq. ST investments

1,296

1,5321,638

1,735

678

885758

1,002

2013 2014 2015 2016

Total debt Net debt

(US$ mm)

(In US$m)

(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

(US$ mm)

Balance Sheet Highlights

Total cash and short-term investments

Total assets & total equity

Total debt(1) and net debt(2)


Note: Based on exchange rate of US$1 = VND 22,790 as of 31 December 2016 (applied to 2016 financials)

Net debt(2) / net debt + total equity


F. Financial Overview - IFRS(1)

(1) Source: IFRS Consolidated Financial Statement for 1H 2016

Based on exchange rate of US$1 = VND 22,345 as of 30 June 2016


88

820

25446

205

100114218

1,042

357

120

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

(US$ mm)

Debt profile overview

Debt maturity

Average borrowing cost

17.7%

11.6%10.0% 9.4% 9.5%

Dec-12 Dec-13 Dec-14 Dec-15 1H 2016

As of 30 June 2016:

• Average debt maturity: 3.4 years

Source: IFRS Consolidated Financial Statement 2015

Based on exchange rate of US$1 = VND 22,345 as of 30 June 2016 (applied to 2016 financials)


Debt Mix Analysis

Total: VND38,814 Bn (US$1.74Bn)

Diversified funding sources(1)

Notes:Based on exchange rate of US$1 = VND 22,345 as of 30 June 2016 (applied to 2016 financials)

(1) As of 30 June 2016

(2) Including Convertible loan & Loan from Associate

Debt breakdown(1)

By currency

By interest rate

Corporate bond, 69.6%

Convertible loan, 1.1%

Long-term borrowings,

22.7%

Short-term debts, 6.6%

VND, 87.7%

USD, 12.3%

Floating, 73.6%

Fixed, 26.4%


128

343

507536

207235

2012 2013 2014 2015 1H2015 1H2016

185

6941,017 940

354 423122

176

276586

231370

307

869

1,293

1,526

585

793

2012 2013 2014 2015 1H2015 1H2016

Property sale Recurring revenue

149 252

114

37

127

2012 2013 2014 2015 1H2015 1H2016

232

612

473374

159

333

2012 2013 2014 2015 1H2015 1H2016

(US$ mm) (US$ mm)

(US$ mm) (US$ mm)

Income Statement Highlights

Revenue

EBITDA(1)

Gross profit

Profit for the year(2)(3)

8

289

Adjustment for sale of Vincom Center A HCMC

(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

Source: IFRS Consolidated Financial Statements for 2012, 2013, 2014

2015 and 1H2016

Based on exchange rate of US$1 = VND 22,345 as of 30 June 2016

(applied to 2016 financials)


57

76

99

126

59

89

2012 2013 2014 2015 1H2015 1H2016

59

8597

117

49

73

2012 2013 2014 2015 1H2015 1H2016

7

14

41

57

25

36

2012 2013 2014 2015 1H2015 1H2016

185

694

1,017940

354 370

2012 2013 2014 2015 1H2015 1H2016

(US$ mm)(US$ mm)

(US$ mm) (US$ mm)

Retail leasing(1)Property sale


Revenue Performance

Source: IFRS Consolidated Financial Statements for 2012, 2013, 2014 and 2015 and 1H2016


20

191

56

188

2012 2013 2014 2015 1H2015 1H2016

(US$ mm)

Consumer retail

307

869

1,293

1,526

585

793

2012 2013 2014 2015 1H2015 1H2016

(US$ mm)

Total revenue


(US$ mm) (%)(US$ mm) (%)

Retail leasingProperty sale


Profitability – Gross Profit and Margin

Source: IFRS Consolidated Financial Statements for 2012, 2013, 2014, 2015 and 1H2016


(US$ mm) (%) (US$ mm) (%)

Consumer retail(US$ mm) (%)

128

343

507536

207235

2012 2013 2014 2015 1H20151H2016

(US$ mm)

Total gross profit

63

235

358 384

141 157

34% 34% 35%

41% 40% 42%

2012 2013 2014 2015 1H2015 1H2016

4663

78 75

35 48

79% 74% 80%64% 73% 65%

2012 2013 2014 2015 1H2015 1H2016

1

24

6

19

6%

13%12%

10%

2012 2013 2014 2015 1H2015 1H2016

Gross Margin

19

35 39 29

12

(2)

34%

46%

39%

23%20%

(2%)

2012 2013 2014 2015 1H2015 1H2016(4) (3)

12 17

6 7

(63%)

(21%)

28% 30% 28% 21%

2012 2013 2014 2015 1H2015 1H2016


49%

37% 37%29%

35%

2012 2013 2014 2015 1H2016

3,325

4,0564,612

6,916

7,618

7711,103

1,5211,940

2,315

2012 2013 2014 2015 1H2016

Total assets Total equity

77

356 356 308218

181

260 284

558

269258

616 640

866

487

2012 2013 2014 2015 1H2016

Cash and cash eq. ST investments

1,005

1,268

1,5501,648

1,737

706617

870789

1,250

2012 2013 2014 2015 1H2016

Total debt Net debt

(US$ mm)

(In US$m)

(US$ mm)

Balance Sheet Highlights

Total cash and short-term investments

Total assets & total equity

Total debt(1) and net debt(2)

Net debt(2) / (Net debt + total equity)

Source: IFRS Consolidated Financial Statements for 2012, 2013, 2014, 2015 and 1H2016


(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


Share Price Performance over the Last 12 Months

Source: Bloomberg as of 31 January 2017

25,000

35,000

45,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jan-17Dec-16Nov-16Sep-16Aug-16Jun-16May-16Mar-16Feb-16

Sh

are

Pri

ce

(V

ND

)

Vo

lum

e (m

)

Vingroup Share Volume Vingroup Share Price

Price VND42,000 as of 31 Jan 2017 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 VND110,783.7bn

Market cap of US$4,893.3m

Average daily volume ('000) 661 598 672 574 680 815 931 1,255 1,459 1,394 1,213

Average daily trading value (VND'000) 27,943,542 25,312,908 28,386,064 24,360,318 28,698,812 33,508,074 36,227,749 42,756,319 46,638,323 42,694,331 36,396,888

Average daily trading value (US$'000) 1,234 1,118 1,254 1,076 1,268 1,480 1,600 1,889 2,060 1,886 1,608

Total volume traded (m) 6.6 12.0 20.2 9.8 41.5 102.7 230.8 622.6 1,086.7 1,381.5 1,512.0

% of total shares outstanding 0.3% 0.5% 0.8% 0.4% 1.6% 3.9% 8.7% 23.6% 41.2% 52.4% 57.3%

% of free float 0.6% 1.0% 1.7% 0.8% 3.5% 8.6% 19.4% 52.4% 91.5% 116.3% 127.3%

Share price

Highest traded price (VND) 43,450 43,500 43,500 43,500 44,800 45,950 45,950 45,950 45,950 45,950 45,950

Lowest traded price (VND) 41,500 41,500 41,300 41,500 40,400 33,959 32,065 26,424 23,785 23,392 20,325

Performance over the period (2.3%) 1.0% (1.1%) 0.0% (1.8%) (0.1%) 21.5% 49.7% 39.6% 59.5% 59.7%

Average closing price (VND) 42,340 42,353 42,282 42,444 42,350 41,809 39,713 35,174 32,897 31,157 29,611

Volume weighted average price (VND) 42,255 42,298 42,240 42,411 42,220 41,119 38,930 34,064 31,973 30,626 30,017

Market cap as of 31 Jan 2017 (US$ m) 4,893.3

Total number of shares (m) 2,637.7


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.

Disclaimer


Vingroup JSC

Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area

Long Bien District, Hanoi, Vietnam

Tel: +84 (4) 3974 9999 ext. 655

Fax: +84 (4) 3974 8888

Website: http://www.vingroup.net

E-mail: [email protected]

Investor Relations Department

http://www.vingroup.com.vn/

mailto:[email protected]

Documents

VINGROUP JOINT STOCK COMPANY he co dong/0_Vingroup_2017/02... · Source: CBRE Vingroup is a key beneficiary of the positive Vietnam real estate outlook 0 2,000 4,000 6,000 8,000 Q1