ANALYST MEETING 2018 Results Presentation February 14 th, 2019
1 Key messages and business performance 2018 MEETING AGENDA 2 3 Market Condition Hospitality Property and Tourism Strategy 4 Financial Highlights 5 Q&A Section 1
Key messages and business performance 2018 2
Key Messages for 2018 1 Strong construction progress and solid deliveries in 2018 Total handed-over units: 4,591 Major projects on deliveries: The Sun Avenue, Sunrise Riverside, Richstar, Wilton, Orchard Parkview, Rivergate. 2 Profits powered by major delivered projects include: Major projects on deliveries Transfer of a part of Con Au Ecotourism Project 3 Healthy presale outlook for 2019 with further expected launches Projects with approval being speeded up in HCMC Projects in other provinces 4 Introducing strategy to develop hospitality and tourism properties NVL introduced the 2nd phase of the Group s business strategy, implementing hospitality property projects and tourism services. Novaland will continue to spend its resources on developing housing projects and also expand to tourism property projects in Phu Quoc, Can Tho, Ho Chi Minh City, Ba Ria Vung Tau, Phan Thiet Binh Thuan, Ninh Thuan, Cam Ranh Khanh Hoa, Quang Nam, Da Nang... 3
2018 Results Snapshot Net Revenue 15,290 bn VND Gross Profit 5,156 bn VND Net Profit After Tax 3,280 bn VND New presold and deposits secured ~1,700 units Unbilled contracted sales accumulated (1) USD 1.5 bn Total amount invested in associates 7,548 bn VND Note: (1) As of December 31 st, 2018 4
Financial performance 2018 vs 2017 2018 (VND bn) 2017 (VND bn) Change (%) Commentary Net revenue 15,290 11,632 31% Gross profit 5,156 3,257 58% Mainly contributed by Lakeview City, RichStar, Orchard Parkview, Rivergate Residence, The Tresor Residence, Wilton Tower, Kingston Residence, The Sun Avenue, Sunrise Riverside, Golden Mansion and transfer a part of Con Au ecotourism projects. More projects were handed over in 2018 than in 2017 % Margin 34% 28% 20% Mainly contributed by the profit of transferring a part of Con Au ecotourism project Operating profit Profit before tax 4,722 4,718 2,568 2,588 84% 82% Major change is due to the revaluation in accordance with regulation of investment into Profit after Tax 3,280 2,062 59% associates relating to Victoria Village and The Grand Manhattan projects Note: (1) As of December 31 st, 2018, Company s Consolidated Financial Statements Quarter 4-2018 5
Development Progress Of Existing Projects THE GRAND MANHATTAN SUNRISE CITYVIEW District 1, HCMC Site area 1.40 (hectares) NSA (sqm) 100,306 Apartment, Product type Commercial, Hotel 4Q2018 3Q2022 Takeup rate 7.4% Site area (hectares) District 7, HCMC 1.57 NSA (sqm) 86,247 Product type Apartment, Officetel, Commercial 2Q2015 2019 Takeup rate 96.8% ICTORIA VILLAGE District 2, HCMC Site area 4.27 (hectares) NSA (sqm) 93,861 Product type Apartment, Villa, Shophouse Launch date 2Q2017 Handover date 1Q2020 Takeup rate 84.9% BOTANICA PREMIER Site area (hectares) Tan Binh, HCMC 1.63 NSA (sqm) 65,183 Product type Apartment, Officetel, Commercial 1Q2016 2019 Takeup rate 98.3% 6
Development Progress Of Existing Projects HE SUN AVENUE District 2, HCMC Site area 3.80 (hectares) NSA (sqm) 188,128 Apartment, Product type Commercial, Hotel 1Q2015 3Q2018 Takeup rate 98.7% GOLDEN MANSION Site area (hectares) Phu Nhuan, HCMC 1.51 NSA (sqm) 59,406 Apartment, Townhouse Product type Shophouse Commercial 3Q2015 Handover 2Q2018 date Takeup rate 99.7% AIGON ROYAL Site area (hectares) District 4, HCMC 0.67 NSA (sqm) 49,869 Apartment, Product type Officetel, Commercial 2Q2016 Handover 4Q2018 date Takeup rate 98.1% RICHSTAR Site area (hectares) Tan Phu, HCMC 2.78 NSA (sqm) 132,900 Product type Apartment, Shophouse Commerical 4Q2015 4Q2018 Takeup rate 99.7% 7
Development Progress Of Hospitality Projects NovaHills Mui Ne Phan Thiet Total Unit 603 GDV (USD mn) 213.7 NSA (sqm) 69,466 4Q2018 2Q2020 Take-up rate 41.3% ASP (USD psm) 3,076 NovaBeach Cam Ranh Nha Trang Total Unit (villas) 182 GDV (USD mn) 252 NSA (sqm) 143,238 4Q2018 1Q2022 Take-up rate 2.7% ASP (USD psm) 1,761 Source: Company information As of 31 December 2018 8
Planned new launches in 2019 Project Location Land area Project F Dist.2, HCMC 5 Project H Dist.2, HCMC 10 Project P Dist.2, HCMC 30 Project T Dist.9, HCMC 31.6 Project X Dist.3, HCMC 0.5 Other hospitality projects Cam Ranh, Phan Thiet Mui Ne TBU Continued project launches allow Novaland to extend its dominant presence across HCMC 9
Land bank located in prime locations and expected to appreciate in value Ho Chi Minh City D District 12 Tan Phu District Tan Binh District Tan Son Nhat International Airport Go Vap District District 10 Phu Nhuan District Binh Thanh District District 1 X HCMC District 3 CBD Thu Duc District Y H P F District 2 3 km 6 km 9 km District 9 T N C D F H I K P Land bank Location Land area (m²) Status Project C Dist. 2 1,360,001 Owned Project D Dist. 12 91,121 MOU Project F Dist. 2 50,000 Owned Project H Dist. 2 97,055 Owned Project I Dist. 2 830,308 MOU Project K Dist. 4 31,527 Owned Project P Dist. 2 302,240 Owned Binh Tan District District 11 District 5 District 4 K C I Q R Q R S Project Q Dist. 9 1,348,353 MOU Project R Dist. 9 1,586,407 Owned Project S Dist. 8 500,475 Owned District 6 District 8 District 7 T Project T Dist. 9 316,076 MOU S X Project X Dist.3 4,531 MOU Binh Chanh District Nha Be District Y Project Y Dist.2 3,748 MOU Total HCMC land bank 6,521,842 Metropolitan lines Representing GDV of USD7.4 bn Novaland s existing landbank has a GDV of c.usd7.4bn (1). Prime landbank is expected to further appreciate in value given proximity to upcoming metro line. Source: Company information. Note: As of 30 Sep 2018 (1): Not included Project X and Project Y 10
Market Conditions 11
Market conditions (condominium) Healthy pricing level for HCMC condominium Slow licensing project challenged the launching of new projects Sales slowed down due to limited supply, abortion rate remained high (~80% for mid-high end segment) Increasing demand from foreign buyers Source: CBRE Vietnam Q4 2018 Market Outlook 2019 12
Market conditions (landed properties) Land fever in HCMC and neighboring provinces significant drop in new supply of landed properties Increase in Selling price Decentralization Shophouse maintains its strong growth Source: CBRE Vietnam Q4 2018 Market Outlook 2019 13
Strategy for Hospitality Property & Tourism 14
DEVELOPMENT STRATEGY HOSPITALITY PROPERTY The Group will build a developer and owner business model to accelerate the growth of the hospitality platform through a high velocity capital recycling strategy via recurring income from hotel, resorts and other facilities, and proceeds from selective for-sale hospitality assets. EXPANSION STRATEGY Powerful multi-format, with international operators, in combination with developer branded assets to cover a growing market of clientele profiles Highly scalable expansion via the systematic identification and acquisition of welllocated and largescale land parcels which can be redeveloped. Selective focus on international and domestic tourist destinations that have strong potential to become the next regional resort hubs. Growth of the Novaland ecosystem to cater to modern lifestyle and the creation of synergy between various Novaland products. 15
NOVATOURISM TOURISM DEVELOPMENT Promoting cultural programs/ festivals LODGING NovaWorld, NovaBeach, NovaHills. Hotel & resort (3 star- 6 star) (branded villas) Second home: Condotel, apartments, villas TRANSPORTATION (CUSTOMERS) Road transportation, air travel, waterway TRAVELING SERVICES Cooperation with the other local and international travel agencies NOVATOURISM LOGISTICS Transportation, storage, suppy of goods Self-organizing or alliance, association with the partners ENTERTAINMENT Water park, Theme park, Aquarium, Safari, Zoo, Golf, Entertainment center (game, racing, karaoke ) FOOD & BEVERAGE/ RETAIL Franchise or alliance, association with the partners SHOPPING +Traditional Products: local specialties, traditional village + Modern shopping: Branded store, shop 16
TOTAL LANDBANK 26% RESIDENTIAL TOTAL LANDBANK 2,650 HECTARES 74% HOSPITALITY 17
Financial Highights 18
Sales performance Accumulative sales performance (1) Handed over units (Units) (Units) 19,302 24,791 26,144 3,596 4,591 12,034 1,903 2,020 2015 2016 2017 2018 2015 2016 2017 2018 Accumulative sold NSA (1) ( 000 sqm) (USD/m 2 ) Average selling price (2) 4,324 1,733 1,883 1,322 2,141 2,095 847 1,629 2015 2016 2017 2018 Source: Company information as of Dec 30, 2018 (1) Not including Madison and Park Avenue (2) ASP for apartment was calculated by presales from Jan to Dec 2018. USD/VND: 23,303 (*) Not including selling price of Madison and Park Avenue East West South Central (*) 19
Growth of revenue and profit Revenue Gross profit (VND bn) (VND bn) 20% 22% 28% 34% 11,632 +31% 15,290 +58% 5,156 6,673 7,359 3,257 1,340 1,583 EBITDA (VND bn) 2015 2016 2017 2018 16% 37% 43% 44% NPAT 2015 2016 2017 2018 (VND bn) 18% 23% 21% +62% 4,550 +59% 3,280 1,002 2,807 442 1,659 2,062 830 2015 2016 2017 2018 2015 2016 2017 2018 Source: Financial Statements dated Dec 31, 2018 Margin ratio 20
3,800 3,300 2,800 2,300 1,800 1,300 800 300 (200) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000-3.50 3.40 3.30 3.20 3.10 3.00 2.90 2.80 2.70 2.60 2.50 2.40 2.30 2.20 2.10 2.00 1.90 1.80 1.70 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10-45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 25,000 20,000 15,000 10,000 5,000 30,000 25,000 20,000 15,000 10,000 5,000 - - 1.20 1.00 0.80 0.60 0.40 0.20-1.37 1.36 1.35 1.34 1.33 1.32 1.31 1.30 1.29 1.28 Financial highlights EBITDA / Interest expenses Net debt/ Equity (VND bn) 2.36 2,807 4,550 3.29 (VND bn) 0.68 1.01 0.85 16,289 20,473 0.80 1.16 830 1,002 863 351 2.33 1,205 1,381 6,095 4,134 10,166 10,047 11,300 13,256 31-12-15 31-12-16 31-12-17 31-12-18 EBITDA Interest expenses EBITDA/ Interest expenses 31-12-15 31-12-16 31-12-17 31-12-18 Net debt Equity Net debt/equity Debt/ Total assets Debt/ Equity (VND bn) (VND bn) 30% 7,994 26,570 36% 37% 49,467 36,527 13,503 17,950 40% 27,912 69,888 1.31 7,994 6,095 13,503 1.34 10,047 27,912 1.35 1.36 20,473 17,950 13,256 31-12-15 31-12-16 31-12-17 31-12-18 31-12-15 31-12-16 31-12-17 31-12-18 Debt Total assets Debt/Total assets Source:Company Financial Statements as of Sep 30, 2018 (*) Debt = long-term borrowings + short-term borrowings (**) Net debt = long-term borrowings + short-term borrowings cash and cash equivalent Debt Equity Debt/Equity 21
Debt Profile Payment schedule Debt breakdown by currency (mn USD) 400 350 300 VND, 53.0% USD, 47.0% 250 200 432 Type of debt 150 100 254 153 241 Bonds, 29% 50 63 Loans, 49% 0 2019E 2020E 2021E 2022E After 2023E CB, 20% CL, 2% Source: Company information, December 31 st, 2018 Exchange rate: USD/VND: 23,303 22
2019 Business Plan (to be summited to AGM) Units to be announced Handed over Revenue (units) 5,802 +44% 6,500 (units) +29% 5,900 (VND bn) 15,290 +18% 18,000 4,500 4,591 11,632 3,596 2017 2018 2019 2017 2018 2019 2017 2018 2019 23
Q&A SECTION 24
THANK YOU Contact information: Investor Relations Phone: +84 906 35 38 38 Ext. 3126 Email: ir@novaland.com.vn 25
Appendix 26
Project details (Completed) A Sunrise City B Tropic Garden Dist.7 Dist.2 Land area (sqm) 51,261 Land area (sqm) 25,028 2Q11 (1) 3Q14 4Q14 (1) 2Q16 Takeup rate 99.0% Takeup rate 100% ASP (USD) 1,598 ASP (USD) (1) 1,251 C D Lexington Residence Dist.2 Land area (sqm) 19,928 1Q14 4Q15 Takeup rate 99.9% ASP (USD) 1,256 E Icon 56 Dist.4 Land area (sqm) 2,904 1Q14 4Q15 Takeup rate 99.4% ASP (USD) 1,994 F The Prince Residence Phu Nhuan Dist. Land area (sqm) 4,644 1Q13 4Q15 Takeup rate 99.2% ASP (USD) 2,215 Galaxy 9 Dist.4 Land area (sqm) 6,228 1Q14 4Q15 Takeup rate 100% ASP (USD) 1,344 G J Lucky Dragon (2) Dist.9 Land area (sqm) 9,024 2Q14 4Q16 Takeup rate 98.7% ASP (USD) 1,126 Gardengate Phu Nhuan Dist. Land area (sqm) 4,887 4Q14 2Q17 Takeup rate 100.0% ASP (USD) 1,629 Lakeview City Dist.2 Land area (sqm) 301,060 2Q16 1Q17 to 2Q19 Takeup rate 99.8% ASP (USD) 3,144 Lucky Palace Dist.6 Land area (sqm) 3,876 3Q14 2Q17 Takeup rate 99.5% ASP (USD) 1,710 Orchard Garden Phu Nhuan Dist. Land area (sqm) 4,303 4Q14 1Q17 Takeup rate 99.8% ASP (USD) 1,453 Rivergate Dist.4 Land area (sqm) 7,069 4Q14 3Q17 Takeup rate 82.3% ASP (USD) 2,340 M The Tresor N Kingston Residence O Wilton Tower Dist.4 Phu Nhuan Dist. Binh Thanh Dist. Land area (sqm) 5,780 Land area (sqm) 4,604 Land area (sqm) 7,169 4Q14 2Q15 3Q15 3Q17 4Q17 2Q18 Takeup rate 99.7% Takeup rate 97.5% Takeup rate 100% ASP (USD) 2,312 ASP (USD) 2,326 ASP (USD) 1,537 P Golf Park Dist.9 Land area (sqm) 25,398 3Q15 1Q17 Takeup rate 100% ASP (USD) 740 Source: Company information (1) Metrics for Tropic Garden 1.2 (2) Metrics for both Lucky Dragon lowrise and apartment developments H K Q The Botanica Tan Binh Dist. Land rea (sqm) 9,028 1Q15 2Q18 Takeup rate 99.5% ASP (USD) 1,506 I L 27
Project details (Under development) A Saigon Royal B Sun Avenue C Dist.4 Dist.2 Land area (sqm) 6,669 Land area (sqm) 38,073 2Q16 1Q15 4Q18 2Q18 Takeup rate 98.1% Takeup rate 98.7% ASP (USD) 2,924 ASP (USD) 1,832 Sunrise Riverside Nha Be Land area (sqm) 39,305 3Q15 3Q18 Takeup rate 80.8% ASP (USD) 1,497 D Orchard Parkview Phu Nhuan Dist. Land area (sqm) 9,184 3Q15 4Q18 Takeup rate 99.8% ASP (USD) 1,493 E Sunrise Cityview Dist.7 Land area (sqm) 15,720 2Q15 4Q2018 Takeup rate 96.8% ASP (USD) 1,695 F Richstar Tan Phu Dist. Land area (sqm) 27,802 4Q15 4Q18 Takeup rate 99.7% ASP (USD) 1,319 G Newton Residence Phu Nhuan Dist. Land area (sqm) 2,807 2Q16 1Q19 Takeup rate 90.5% ASP (USD) 2,313 H Victoria Village Dist.2 Land area (sqm) 42,777 2Q17 3Q19 Takeup rate 84.9% ASP (USD) 2,990 I Golden Mansion Phu Nhuan Dist. Land area (sqm) 15,129 3Q15 2Q18 Takeup rate 99.7% ASP (USD) 2,016 J Botanica Premier Tan Binh Dist. Land area (sqm) 16,330 1Q16 4Q18 Takeup rate 98.3% ASP (USD) 1,691 K Grand Manhattan Dist. 1 Land area (sqm) 14,002 4Q18 1Q22 Takeup rate* 53% ASP (USD) 6,016 Source: Company information *: Based on total units sold thus far, representing 7% of the entire number of units, against the number of units launched thus far. 28
Projects expected to be delivered in 2018 and 2019 Project Launch date Expected delivery date % units pre-sold GDV (USDmn) NSA (sqm) Wilton Tower 3Q2015 2Q2018 100 55 36,897 Golden Mansion 3Q2015 2Q2018 100 104 59,372 The Botanica 1Q2015 4Q2018/1Q2019 99 55 38,327 Lakeview City 2Q2016 1Q2017 to 2Q2018 99 374 126,638 Sun Avenue 1Q2015 3Q2018 98 327 188,219 Sunrise Riverside 3Q2015 3Q2018 81 315 207,543 Orchard Parkview 3Q2015 4Q2018 100 63 45,085 Richstar 4Q2015 4Q2018 100 165 133,470 Botanica Premier 1Q2016 4Q2018/1Q2019 98 108 65,182 Sunrise Cityview 2Q2015 4Q2018/1Q2019 98 140 86,468 Newton Residence 1Q2016 4Q2018 90 39 16,761 Saigon Royal 2Q2016 4Q2018 99 146 50,643 Victoria Village 2Q2017 3Q2019 78 239 93,855 Total 2,131 1,139,216 Source: Company information, as of end of 3Q2018. Note: USD/VND: 23,303. 29