VINGROUP NEWSLETTER 17 August 2017 Investor & Analyst Update
Key Highlights 1. In 1H2017, Vingroup s consolidated net revenue reached VND 35.3 trillion (+47% YoY), gross profit was VND 11.7 trillion, (+62% YoY), and profit after tax registered VND 1.6 trillion. As of 30 June 2017, Vingroup s total assets were VND 192.7 trillion, an increase of VND 12.3 trillion compared to 2016 year-end, and owners equity was VND 43.8 trillion, down 1.4 trillion compared to 2016 year-end. 2. Vinhomes The Harmony and Vinhomes Imperia launched. Vinhomes The Harmony phase 2 of the Vinhomes Riverside project and Vinhomes Imperia in Hai Phong the first mega mixed-use project outside of Hanoi and HCMC were launched during 1H2017. During this period, Vinhomes also continued to deliver several projects nationwide, including Vinhomes Times City Park Hill and Vinhomes Central Park. Contracted sales in 1H2017 were 5,500 units with VND 29 trillion in contract value. 3. Vincom Retail coverage expanded to 21 cities and provinces. Vincom Retail opened nine new shopping malls, expanding the network to a total of 40 malls, with total GFA exceeding 1.1 million sqm across 21 provinces and cities, extending its leadership as a retail property developer, owner and operator. 4. Vinpearl increased capacity to 5,700 keys. Vinpearl set a new record with seven new projects launched in April 2017 across the country: Phu Quoc, Nha Trang, Da Nang, Hoi An, Nghe An, and Ha Tinh, bringing the portfolio size to 16 projects and over 5,700 keys. Vinpearl also commenced operation of Vinpearl Golf Hai Phong the first international island golf course in the North and the largest one in the network. These openings added 5 new tourist destinations to Vinpearl s network nationwide. In the same period, Vinpearl Land opened two new amusement parks, including the 2 nd phase of Vinpearl Land Nha Trang which boasts the world s largest sign made up of individually connected floats and an open zoo, as well as a new water park in Ha Tinh. 5. Vinmec Central Park awarded JCI certificate. Vinmec Central Park International Hospital became the 2 nd hospital in the Group to receive JCI certificate the highest recognition for professional facilities and services in record time after only 15 months of operation. In June 2017, Vinmec Times City International Hospital also became the first private hospital to successfully transplant a liver from a living donor one of the most challenging internal organ transplant procedures. 6. VinEco gave assistance to 500 farmers. VinEco received 2,000 applications for its Partnership and Assistance for Vietnamese Products program within 6 months from announcement and selected 500 qualified rice, vegetable, mushroom and fruit farmers for the program in April 2017. 7. Vingroup recognized as the best real estate developer in Vietnam. In April 2017, Vingroup was chosen the 2 nd time by Vietnam Report as the most reputable real estate developer in Vietnam. According to Vietnam Report, Vingroup continued to excel in key criteria and extend its lead in the real estate sector in Vietnam. In March 2017, Vingroup was also voted by Anphabe and Nielsen as the best workplace in the real estate, retail and hospitality sectors. 2
Financial Summary Revenue Gross Profit EBITDA 57,614 17,430 27,724 34,048 24,005 35,330 10,439 11,709 7,217 11,689 9,704 7,594 13,457 6,919 4,161 2014 2015 2016 1H2016 1H2017 2014 2015 2016 1H2016 1H2017 2014 2015 2016 1H2016 1H2017 Recurring Revenue Revenue from property sales Cash & Cash Equivalent & Short Term Investments (1) Total Assets Total Equity 19,845 180,451 192,790 16,847 145,495 13,822 13,552 45,266 43,828 90,070 27,463 37,577 Recurring Revenue / Interest Expense 7.12 Net Debt (2) / EBITDA (3) (times) (times) (%) 2.25 Net Debt (2) / (Total Assets Cash & ST Investments) 1.95 1.95 25% 1.68 4.06 3.31 14% 16% 16% 1.79 Source: VAS Audited Consolidated Financial Statements for 2014, 2015, 2016 and VAS Unaudited Consolidated Financial Statements for 1H2017 (1) Short-term Investments include short-term loan receivables (2) Net Debt = (Short-term Borrowings + Long-term Borrowings) (Cash & Cash Equivalent + Short-term Investments) (3) EBITDA for the last 12 months 3
Major Real Estate Projects Vinhomes Golden River Location: Ben Nghe, District 1, HCMC. Launched: 2,546 units (pre-sold: 86%) and 63 villas (pre-sold: 14%). Key components: Apartments : 528,332 m 2, Villas: 31,500m 2, Retail: 54,220m 2, School: 15,160m 2, Officetel: 233.959m 2, Office: 118,038m 2. Status: High-rise construction up to 49 th floor, low-rise construction in completion phase. Vinhomes Riverside 2 - The Harmony Location: Phuc Dong Ward, Long Bien District, Hanoi. Launched: 556 villas (pre-sold: 51%). Key components: Villas: 552,446m 2, School: 27,948m 2. Status: Bare shell construction of low-rise blocks. Vinhomes Green Bay Location: Me Tri Ward, Nam Tu Liem District, Hanoi. Launched: 390 villas (pre-sold: 94%) and 1,424 apartments (pre-sold: 79%). Key components: Apartments: 134,783m 2, Villas: 145,258m 2, Officetel: 77,210m 2, School: 12,320m 2. Status: High-rise construction up to 5 th floor and construction of bare shell of low-rise blocks. Vinhomes Imperia Location: Thuong Ly Ward, Hong Bang District, Hai Phong. Launched: 1,313 villas (pre-sold: 44%). Key components: Villas and Shophouses: 646,821m 2, Hotel: 69,962m 2 School: 23,166m 2. Status: Completion phase of 81 villas and bare shell construction of 400 villas. Beach Villas and Condotels Location: Nha Trang, Da Nang, and Phu Quoc. Launched: 4,969 villas (pre-sold: 97%). Project: Vinpearl Nha Trang Bay Resort & Villas, Vinpearl Golf Land Resort & Villas, Vinpearl Phu Quoc Resort & Villas, Vinpearl Da Nang Resort & Villas 2, Vinpearl Luxury Villas, Vinpearl Nha Trang Resort (Bai Tru), Vinpearl Long Beach Villas, Vinpearl Luxury Nha Trang, Empire Condotel, Beachfront Condotel and Riverfront Condotel. Status: Handing-over for villas in Nha Trang, Da Nang, Phu Quoc, and construction up to 38 th floor of Empire Condotel in Nha Trang, 28 th floor of Riverfront Condotel Da Nang. As of 30 June 2017. Townhouses & Shopoffice Location: Hai Phong, Lang Son, Son La, Ha Nam, Ha Long, Yen Bai, Tuyen Quang, Thai Binh, Thanh Hoa, Ha Tinh, Can Tho, Quang Binh, Hau Giang, Tra Vinh, Vinh Long, Tay Ninh, Long An, Rach Gia. Launched: 1,779 units (pre-sold: 76%). Status: Handing-over in Hai Phong, Lang Son, Ha Nam, Ha Long, Yen Bai, Tuyen Quang, Thai Binh, Thanh Hoa, Ha Tinh, Can Tho, Hau Giang, Tra Vinh, Vinh Long, Rach Gia and construction at other projects. 4
Recent Developments Vingroup JSC is aware of various market speculations regarding potential plans for an initial public offering for Vincom Retail JSC. Vingroup wishes to clarify that, along with the other shareholders of Vincom Retail, it is considering various strategic initiatives for Vincom Retail. These may include a capital markets offering and listing of the company or other corporate transactions, and we will make an announcement when appropriate. Vincom Retail JSC (formerly Vincom Retail LLC) was incorporated in 2012 of which Vingroup is the controlling shareholder. Vincom Retail is the largest and fastest-growing retail developer, owner and operator in Vietnam, with an expansive nationwide network of retail malls capturing the full spectrum of growing Vietnamese consumer demand. As of 31 July 2017, Vincom Retail s portfolio includes 41 retail malls across 22 cities and provinces in Vietnam, with a total Retail GFA of about 1.1 million sqm, under 4 formats Vincom Center, Vincom Mega Mall, Vincom Plaza and Vincom Plus. About VINGROUP Vingroup Joint Stock Company ( Vingroup or the Group ) is one of the largest listed companies in Vietnam, as measured by market capitalization with VND117 trillion as at 31 July 2017. Vingroup today bases its strategy on the principles of sustainability and professional management to operate in three main business segments: Property Vinhomes premium apartments, villas and shophouses, VinCity affordable real estate with integrated facilities. Hospitality and Entertainment Vinpearl hotels, resorts and beach villas, and Vinpearl Land amusement parks and conservation parks. Consumer Retail Vincom quality shopping malls, VinMart supermarkets and VinMart+ mini-marts and convenience stores, VinPro electronics and appliance stores, VinDS consumer lifestyle specialty retail stores, and Adayroi comprehensive e commerce. In addition to these core business segments, Vingroup also develops and operates businesses in Social Infrastructure Services including Healthcare under the Vinmec brand, Education under the Vinschool brand and Agriculture under the VinEco brand. These social infrastructure businesses are aimed at improving the standards of living in communities throughout Vietnam. Vingroup was listed on the HOSE on 7 September 2007. More information on the Group can be found at www.vingroup.net. 5
Prepared by Vingroup Investor and Shareholder Relations Vingroup s Head Office, No 7, Bang Lang 1 Street, Vinhomes Riverside Eco Urban Area, Viet Hung Ward, Long Bien District, Hanoi, Vietnam Tel: +84 (24) 3974 9999, ext. 9759 Fax: +84 (24) 3974 8888 E-mail: ir@vingroup.net