Vinhomes JSC1Q20 Financial Results 28 April 2020
where happiness lives
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 Vinhomes 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. Forward-looking 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.
2
Key Messages
Solid revenue recognition secured by large unbilled sales, underpinned by on-schedule delivery
• Two-month ahead-of-schedule construction helped offset mandatory lockdown in April. Construction resumed on April 16
• 2020 delivery schedule secured with c.70-80% of property revenue target comes from delivery of retail units sold since 4Q2018, whilst
70% of bulk sales revenue target was secured by two bulk sales transactions pre-sold in 2019
• Delivery to start from 2020 for projects launched in 2018 including Vinhomes Ocean Park, Vinhomes Smart City, Vinhomes West Point
and Vinhomes Marina.
2
Growing recurring income contribution from Industrial and Commercial real estate in order to diversify income streams and
mitigate any volatility from residential real estate cycles
•Existing portfolio of 4 office buildings located in the prime CBD areas and central locations in Ho Chi Minh City and Hanoi, and
manufacturing and supplier park in Hai Phong
•Plan to gradually grow the office portfolio to c. 5m sqm NLA by 2035 and the industrial portfolio to c. 29m sqm of NLA/NSA for sale and
for lease
5
Ample liquidity thanks to healthy pre-sales and bulk sales secured since 2019
• Strong pre-sales proceeds since 2019 significantly deleveraged the balance sheet, strengthened liquidity
• Maintaining a conservative leverage and prudent interest coverage policy
• Bulk sales helped bring forward the cash flow and shorten the investment cycle
1
Cautiously optimistic pre-sales outlook driven by a balanced mix of retail and bulk sales
• Launched Vinhomes TV Youtube channel, Vinhomes Online platform earlier than plan with attractive promotions that helped boost sales
• Steady bulk sales momentum thanks to continued supply constraint for well-located projects. Closed a transaction with another
Japanese buyer in YTD 2020
3
Quality land bank to fortify Vinhomes' leadership in residential real estate and is a source of further liquidity
• Besides 8 projects that have been launched, Vinhomes has a pipeline portfolio of 14 projects with 138 million sqm of residential GFA that
can serve as a source of further liquidity if Covid-19 prolongs. Total GDV of projects to be launched up to 2025 is US$44bn
4
3
1Q2020 Highlights
4Note: Based on Vinhomes JSC VAS 1Q2020 unaudited consolidated financial statements. (1) Estimated pre-sale under SPAs and pre-sale bookings under deposits, including bulk sales deposits; (2) Average number of units sold in 1Q2016, 1Q2017, 1Q2018, and 1Q2019; (3) Include retail and
bulk sales value. Doesn’t include certain bulk sales transactions at advanced stage of discussion in March which was subsequently finalized in April with value of VND 4.577 trillion. Unbilled booking is VND 84.2 tn in April 2020, accordingly; (4) Converted revenue, includes both Vinhomes
and BCC projects and bulk sales under shares transfer transaction; (5) Represents gross profit of property sales only
Units Pre-sold and
Deposits secured(1)
Revenue from
Property Sales(4)
1Q20
VND
17.7 tn
4,826
units
1Q20
Gross Profit(4,5)
Unbilled Bookings(3)
1Q20
VND
10.8 tn
VND
79.6 tn
1Q20
192% yoy
Profit after Tax &
Minority Interest
VND
6.8 tn
1Q20
169% yoy
1Q19
VND
8.6 tn
1Q19
VND
3.7 tn
VND
2.5 tn
1Q19
5,452
units
1Q19 1Q19
Unbilled
11% yoy
VND
74.5 tn
7% yoy
Units Pre-sold and
Deposits secured(1)
4,826
units
1Q20
2,400
units
Average 1Qs
(2016 – 2019)(2)
101%
106% yoy
Moving into 2Q2020
5
• Continued delivery of the three mega projects, Vinhomes Ocean Park, Vinhomes Smart City and
Vinhomes Grand Park, launched in 2018/2019, which retail sales of Vinhomes Ocean Park and Smart
City has started delivery in 1Q20
• 2Q20 delivery schedule: Vinhomes Grand Park, Vinhomes Ocean Park, Vinhomes Smart City, Vinhomes
West Point and Vinhomes Marina
• Ahead-of-schedule construction helps offset mandatory lockdown in early April
Innovative
Initiatives
• Vinhomes Online platform launched on April 09 with 200 units sold on the very first day, expecting to be a
key sales channel during lockdown period, and a good complementary channel during social distancing
• Sales teams continued to leverage on Vinhomes TV YouTube channel and deploy sales initiatives such as
high quality streaming, off-site signing of deposit, sales contract and hand-over confirmation
• Customer satisfaction to be enhanced by the direct sales force, providing a professional, transparent and
efficient sales service
• All showrooms have reopened on April 23
Prudently
managing
liquidity
• Continue to pursue bulk sales strategy in 2020 in the mega-projects alongside retail sales to meet 2020
targets
• Payment of land use fees and corporate income tax can be deferred
• Working with suppliers to stretch payment terms
• In discussion with relationship banks to expand credit lines and maintaining conservative leverage and
coverage ratios
On-Schedule
Delivery
where happiness lives
Covid – 19 Impact Assessment
Timeline and Number of cases
Source: chinhphu.vn, CBRE Research, 1Q 2020
Confirmed COVID-19 Cases in Vietnam
7
0
5
10
15
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25
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1-A
pr
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Daily confirmed cases Total number of confirmed cases
Strict nationwide
social distancing
extended to 22 April
Strict nationwide
social distancing
easing on April 23 in
most cities and
provinces
All Vinhomes
project construction
resumed on April 16
All Vinhomes
showflats
reopened on
April 23
Suspended all flights
between Korea and Vietnam
Hanoi & HCMC shut
down bars, karaoke
Suspended all visas and
entry for travelers from 27
European countries
Suspended entry
for all foreign
nationals
HCMC closed
restaurants, gyms,
spas
Strict nationwide
social distancing
for 15 days
Patient N17
Covid -19 Impact Assessment
• In 2020, supply in HCMC and Hanoi continues to be under constraint, which helps to avoid price cut and facilitates bulk
sales strategy, allowing Vinhomes to withstand the impact from Covid-19 environment
• In this cycle, Vinhomes’ core target market is the more resilient mid-end segment, thanks to their fundamental buy-to-
live demand
• Vietnamese government cut interest rates, which should reduce borrowing costs on mortgagesPreliminary
Impact
Assessment
• Increase interaction with buyers/ prospects via non-traditional channels such as Facebook, Viber and other alternatives
and introduce Vinhomes TV online channels with marketing videos to boost sales
• Bring forward and launched Vinhomes’ online sales platform, through which customers can tour the projects/ units
online, interact with Vingroup’s sales team and place order without having to physically visit the transaction floor
• Collaboration/Ongoing negotiation with several prospective bulk sales buyers on projects such as Vinhomes Smart
City, Vinhomes Grand Park and Vinhomes Ocean Park
• Give promotions in conjunction with VinFast and VinSmart, cross sell within the ecosystem
• All showrooms reopened on April 23
Business
Initiatives
8
Delaying tax
and land fee
payment
Support for
impacted
businesses
and workers
Preferential
Credit by
Commercial
Banks
Electricity cost
subsidy
Government Support Packages
Package VND trillion USD billion Current status Details
180 8.2
Approved /
Implementation
commenced
• Value added tax, corporate income tax and land premiums payables will be
deferred for 5 months.
• Real estate developers are included in the list of eligible businesses
62 2.7
Approved /
Implementation
commenced
• Allowances for the unemployed, those under unpaid leave and family
businesses impacted by Covid – 19
• Employers in financial troubles who have continued to pay staff at least 50
per cent of the salaries will be able borrow at zero interest
600 27.7 Ongoing
• More than 10 banks in Vietnam, including the four biggest SOBs, are
implementing a credit support package for Vietnamese enterprises, including
extending debt repayment deadlines and exempting or reducing lending
rates (by 0.5 – 1%).
• Eligible borrowers are enterprises in the less impacted sectors, which need
capital for business growth such as agriculture, seafood, medical services,
electricity. More impacted businesses can borrow if they can guarantee debt
repayment.
11 0.48 Under review
• Prices for household consumption to be cut by 10% for Threshold 1 to 4 in
the escalating pricing schedule
• Prices for production to be cut by 10% in April, May and June 2020
• Hotels will enjoy a lower cost at the prices for production from April 2020
9Note: support measures highlighted in Orange are applicable to Vinhomes
where happiness lives
1Q20 Market Update
1Q20 Market Summary – Condominium Market in Hanoi
Source: CBRE Research, 1Q 2020
Launched Units
Sold Units
9,185 7,883 8,242
10,493
8,541
6,048 4,969
14,391
11,673
9,063
6,073
9,535
1,639
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020
Average no. of new launch units per
quarter (2017-Q1 2020): 6,900 units
6,507
8,350
5,644
8,561
6,904 5,917
4,678
11,172
9,390
7,080
4,808
7,361
2,144
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020
Luxury High-end Mid-end Affordable
Launched units: 1,639
-86% yoy
Sold units: 2,144
-77% yoy
11
Hanoi – Stable Primary Pricing across Segments
Source: CBRE Research, 1Q 2020
Note: (1) Selling price: US$ psm (excluding VAT and quoted on NSA)
Hanoi Condominium Market – Average Selling Price (1)
0
500
1000
1500
2000
2500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017 2018 2019 2020
High-end Mid-end Affordable
4% y-o-y
High-end
Mid-end
Affordable
0% q-o-q
5% y-o-y
1% q-o-q
4% y-o-y
1% q-o-q
Affordable
12
7,475 9,880
7,909 9,552 9,660
7,222 6,274 8,260
5,924 4,576
13,386
5,532 3,757
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020
Luxury High-end Mid-end Affordable
1Q Market Summary – Condominium Market in HCMC
Source: CBRE Research, 1Q 2020
Launched Units
Sold Units
5,321
9,575
7,787 9,048
9,649
6,255 6,328
8,250
4,423 4,124
13,072
4,573 3,606
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020
Average no. of new launch units per
quarter (2017-2020): 7,000 units
Launched units: 3,606
-18% yoy
Sold units: 3,757
-37% yoy
13
High-end
Mid-end
Affordable
Luxury
HCMC – Increased Pricing due to Limited Supply and Sustained Demand
Source: CBRE Research, 1Q 2020
Note: (1) Selling price: US$ psm (excluding VAT and quoted on NSA)
Hanoi Condominium Market – Average Selling Price (1)
8% y-o-y
0% q-o-q
9% y-o-y
5% q-o-q0
1000
2000
3000
4000
5000
6000
7000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020
Luxury High-end Mid-end Affordable
15% y-o-y
2% q-o-q
6% y-o-y
0% q-o-q
14
where happiness lives
Operational Updates
Launch of Vinhomes Online – 200 Units Sold on the First Day
On 9 April 2020, Vinhomes officially launched Vinhomes
Online – Vinhomes’ e-commerce platform
This platform aims to kickstart a new trend for modern and
transparent trading in the Vietnamese real estate industry
Vinhomes Online connects customers directly with the
Developer and allows them to purchase properties with
unrivalled speed, convenience and pricing
Main features include:
Browsing project and property information
Simple but efficient search engine
Calculating payment and loan options
Making online purchases and deposits securely
24/7 support channels
To date, the website had nearly 150,000 visitors and a total
of more than 460 units have been transacted successfully.
This platform’s launch coincided with the social distancing
period during the Covid-19 outbreak, thus helping
homebuyers and investors to make purchases without having
to go to the trading floor or meeting the sales staff directly
16
In March 2020, the Vinhomes TV YouTube channel was launched
The channel broadcasts high-quality videos that include project
introduction, up-to-date construction progress, on-site footage of
completed landscapes and amenities
Prospective buyers can visually learn about the projects without
having to make a visit in person
In February 2020, Vinhomes announced a package deal where
customers will receive VinFast discount vouchers with their home
purchases.
VinFast discount vouchers
Car buyers can enjoy car loans with even longer loan tenor
This special deal promotes cross-selling opportunities within Vingroup’s
eco-system
Key Marketing Events
“Buy Vinhomes – Get VinFast voucher” Promotional Package Launch of Vinhomes TV – Providing detailed project information online
Vinhomes continues to find new ways to increase customer engagement, offer better services as well as benefits to homebuyers
17
Key Projects Update
Vinhomes Ocean Park Vinhomes Smart City Vinhomes Grand Park
Location • Gia Lam District, Hanoi • Nam Tu Liem District, Hanoi • District 9, Ho Chi Minh City
NSA (sqm) (1) • 2,953,000 (3) • 2,250,000 • 3,160,000
GDV (US$mn) (2) • 3,054 (3) • 2,557 • 3,781
Estimated delivery
start date
• Low-rise delivery started since 2019
• High-rise delivery started since 2019
• Low-rise delivery started since 1Q2020
• High-rise delivery started since 2019
• High rise delivery started 1Q2020
% construction
completion
• 31 Mar 2020: 34% • 31 Mar 2020: 28% • 31 Mar 2020: 42%
Cumulative
number of units
sold by 31 Mar 20/
Total number of
unit (4)
Retail Sales Bulk Sales Total
Note: (1) NSA is size area for low-rise and gross area for high-rise (2) FX rate: 23,660 (3) Does not includes 2,395 low-rise units handed over in 2019 (4) Including retail and retail-equivalent units from bulk sales transaction and rounded to the nearest ‘00. Doesn’t include certain
bulk sales transactions at advanced stage of discussion in March which was subsequently finalized in April with value of VND 4.577 trillion. Total estimated numbers of units by projects include low rise units and are subject to change.
47,300
23,700
By 31.03.2020 Est. Total units
47,000
22,100
By 31.03.2020 Est. Total units
45,500
28,200
By 31.03.2020 Est. Total units
18
Retail and Bulk Sales for mega-city projects
New Project Launch in 2020 – Vinhomes Wonder Park
Expected launch date • 2H2020 (~ 1,100 low-rise units)
Location • Tan Hoi, Lien Trung, Tan Lap and Lien Ha wards,
Dan Phuong District, Hanoi
Total project area
(including infrastructure)
• 133 ha
Total Residential GFA • 976,000 sqm
Components • High-rise apartments
• Shop-houses, villas
Featured amenities • Vietnam’s biggest swimming pool complex (indoor
and outdoor)
• 16ha grand ecological park
• Vincom Plaza
Expected delivery start • 2021
19
where happiness lives
Increasing Recurring Income with
Commercial and Industrial Leasing
Industrial Parks as the Next Engine of Growth – Key Takeaways
Beneficiary of preferential tax incentives within the Economic Zone
Strategically located with high connectivity to transportation networks – a key driver for rent escalation
Close proximity to the China-Vietnam border and major global shipping routes
Key beneficiary of the shift of manufacturing supply chains to Vietnam due to US-China trade war
Industrial parks to create a comprehensive ecosystem for producers and suppliers (including extended support facilities)
Flexible business model offering both for-sale, allowing for quick capital recycle and for-lease, enabling for recurring income stream
High growth segment with ability to quickly scale up
21
Vinhomes Industrial Real Estate Strategy
Vinhomes Industrial Real Estate Strategy
Vinhomes’ Superior Industrial Real Estate End-to-end Value Chain
Track record in securing the best land bank in Vietnam
Access to industrial park land bank through Vingroup, VinFast and
VinSmart
Track record in developing complex mega, integrated projects both at
Vinhomes and Vingroup level
Experience in master planning for integrated projects such as Hanoi, Hai
Phong, Quang Ninh, Ho Chi Minh City (Can Gio) and Phu Quoc
De-risking through ecosystem of complementary offerings such as
housing, schools
Synergy with VinFast/VinSmart – ecosystem of industrial and smart
device manufacturing, suppliers and importers
End-to-end construction management capability to ensure rapid execution
and quality control
Ability to control costs and deadlines
Diversification Across the 3 Segments
Leveraging Vinhomes’ Expertise in Sourcing/ Acquiring Land as well as
Real Estate Development
Additional Pillar of Vinhomes’ Medium Term Strategy to Diversify and
Increase Recurring Revenue and Provide More Avenues for Capital
Recycling
Land Acquisition
Master Planning and
Design
Infrastructure and
Ecosystem
Construction and
Quality Control
Identify Anchor Tenants
Ability to identify key anchor tenants based on experience and in-depth
understanding across verticals
Expansion into industrial real estate to capitalize on the attractive sector tailwinds
Residential
Office
Industrial
22
13
152
Launched Pipeline Projects
(1)
3 million sqm is under feasibility study
Hanoi12%
HCMC33%
Quang Ninh47%
Hung Yen 4%Others 3%
Hanoi
GFA: 19mm sqm
Ho Chi Minh City
GFA: 51mm sqm
Key beneficiary
of upcoming
infrastructure
developments
Land bank by GFA for sale (mm sqm) (1)(2)
45% of residential GFA is located in key cities of HCMC and Hanoi
Gross development value (3) (for projects to be launched up to 2025)
Total Residential GFA:
153mm sqm
Hanoi42%
HCMC28%
Quang Ninh9%
Hung Yen 13%
Others 8%
Hanoi:
US$18.5 bn
Ho Chi Minh City:
US$12.3 bn
70% of GDV is attributable to key cities of Hanoi and HCMC
Total GDV (up to 2025):
US$44.0bn
3
Additional projects under feasibility studies
Translates to 153mm sqm of residential GFA(1)(2)
Unrivalled Land Bank in Strategic Locations Forms Pillar of Growth for Vinhomes
Notes: (1) As of 31 March 2020. (2) Including apartments, officetel, shophouses, shop office, villa, commercial for sale, beach villa and condo-tel. Excludes completed projects. 153 mm sqm of residential GFA converts into c. 136 mm sqm of NSA. Not including GFA from Vinhomes Hoc Mon.
(3) Represents residential GDV only, excluding other for-sales components such as hospital, school, .etc which may be sold to other third parties.
Land Bank by Site Area
(mm sqm)
23
Overview of Land BankReal Estate for Sale
Location Effective Stake Launch Delivery Start Delivery End
NSA(1)
(‘000 sqm)
GDV(2)
(US$mn)
Cumulative
Pre sold (%)(3)
Hanoi 84.0% – 100.0% 2019 2019 – 2020 2020 – 2027 5,710 6,540 24.9% – 79.7%
HCMC 90.1% 2019 2020 2027 3,130 3,700 24.9%
Others 90.0% – 100.0% 2019 2019 2021 – 2027 3,010 2,380 1.2% – 58.7%
Total Launched Projects 11,850 12,620 34.7%
Hanoi 43.3% – 100.0% 2020 – 2021 2021 – 2022 2024 – 2027 5,780 9,140
HCMC 88.2% – 99.9% 2021 2022 – 2022 2027 – 2037 41,790 25,900
Others 95.8% – 100.0% 2021 – 2022 2022 – 2023 2025 – 2040 79,850 49,850
Total Pipeline Projects 127,420 84,890
Total Real Estate for Sale 139,270 97,510
Source: Management projections. Notes: All NLA/NSA and GDV/RNAV/TDC figures have been rounded to the nearest 10, where applicable. As of 31 December 2019. All figures in US$mm (with FX rate: 23,660) unless otherwise stated
(1) Represents net saleable area for the project's lifetime, including residential and office for sale, excluding other for-sale components. (2) Represents gross development value (product of net saleable area and average selling price) for the project’s lifetime. (3) as of 31 December 2019. (4) Represents net leasable area. (5) RNAV based on management’s estimates for operational properties. (6) TDC
represents total development costs which include construction costs and land costs, calculated for pipeline properties. (7) Schools and hospitals for lease. (8) Represents gross development value (product of net saleable area and average selling price) for the project’s lifetime, subject to adjustments based on approvals to be received in later phrases, calculated for for-sale component. (9) Represents
total development costs which include construction costs and land costs, calculated for for-lease component.
1
24
Office and Social Infrastructure for Lease
Location Effective Stake
Operational
Start
NLA(4)
(‘000 sqm)
RNAV(5)
/ TDC(6)
(US$mn)
Occupancy
Rate(3)
Hanoi 100.0% 2014 – 2019 40 70 88.1% – 100.0%
HCMC 100.0% 2010 – 2019 80 370 96.6% – 100.0%
Total Operational Projects 120 440 95.7%
Hanoi 57.9% – 100.0% 2020 – 2029 2020 – 2024 990 650
HCMC 60.8% – 90.0% 2021 – 2035 2021 – 2023 3,200 1,960
Others 98.6% – 100.0% 2020 – 2035 2020 – 2023 30 30
Supporting infrastructure(7) 2024 2020 660 360
Total Pipeline Projects 4,880 3,000
Total Office and Social Infrastructure for Lease 5,000 3,440
2
Industrial Projects
Location Effective Stake Launch Delivery / Operation Start Delivery / Operation End
NSA(1)
/ NLA(4)
(‘000 sqm)
GDV(8)
/ TDC(9)
(US$mn)
Hai Phong 90.0% – 100.0% 2022 onwards 2022 – 2025 8,330 550
Quang Ninh 90.0% – 100.0% 2023 onwards 2024 – 2026 2,550 320
Others 90.0% – 100.0% 2023 onwards 2025 – 2032 11,200 2,180
Total Pipeline Projects – Sale 22,090 3,050
Hai Phong 90.0% – 100.0% 2021 onwards 2020 – 2022 3,490 1,710
Quang Ninh 90.0% – 100.0% 2023 onwards 2023 640 240
Others 90.0% – 100.0% 2023 2,800 1,050
Total Pipeline Projects – Leasing 6,930 2,990
Total Industrial Projects 29,010 6,070
3
Overview of Land Bank
where happiness lives
Financial Highlights 1Q2020
1Q2020 Highlights
26
Revenue from
Property Sales1
Gross Profit &
Margin(1)2
• Total: VND 5.7 tn
• Key contributors:
−VH Marina: VND 2.5 tn
−VH Smart City: VND 1.7 tn
−VH Ocean Park: VND 1.4 tn
• Total amount: VND 1.0 tn
• Key contributors:
−VH The Harmony: VND 0.4 tn
−VH Star City: VND 0.4 tn
−VH Imperia: VND 0.2 tn
• Gross profit: VND 2.8 tn
• Gross profit margin: 48%
• Gross profit: VND 0.6 tn
• Gross profit margin: 53%
• Total number of pre-sold units : 4,786 units
• Pre-sales value: VND 6.0 tn
• Unbilled pre-sales: VND 78.0 tn
• Total number of pre-sold units: 40 units
• Pre-sales value: VND 0.4 tn
• Unbilled pre-sales: VND 1.6 tn
Pre-sales (3)(4)5
Notes: Based on Vinhomes JSC VAS 1Q2020 unaudited consolidated financial statements. Yoy comparison is with Vinhomes JSC VAS 1Q2019 unaudited consolidated financial statements. (1) Represents gross profit of property sales only (2) Includes the recognition of bulk sales at
Vinhomes Grand Park project (3) Estimated pre-sale under SPAs and pre-sale secured under non-cancellable deposits under both retail and bulk sales. Doesn’t include certain bulk sales transactions at advanced stage of discussion in March which was subsequently finalized
in April with value of VND 4.577 trillion.
PBT, PAT &
PATMI4
• Profit before tax was VND 10.1 tn, +201% yoy, in which VND 9.7 tn (2) was Vinhomes projects and VND 0.4 tn was from BCC
projects
• Consolidated profit after tax was VND 7.6 tn, +185% yoy
• Consolidated PATMI was VND 6.8 tn, +169% yoy
Vinhomes Projects (Consolidated) BCC Projects (Equity Accounting)
Financial Performance 1Q2020 vs 1Q2019
27
Figures in VND bn 1Q2019(1) 1Q2020 (1) Change (%) Key Commentary
Sale of Inventory Properties (2) 4,837 5,717 18%
Other Revenue 1,016 802 -21%
Total Revenue 5,853 6,519 11%
Gross Profit 1,329 2,949 122%
% Margin 23% 45% 2,253 bps• Significant increase thanks to Vinhomes Ocean Park, Vinhomes Smart City
and Vinhomes Marina with high margin
Profit sharing from BCC projects 999 411 -59%
• Profit distribution from BCC projects mainly contributed by Vinhomes The
Harmony and Vinhomes Star City
• Due to smaller number of handed over units compared to that of 1Q2019
Other finance income 1,941 8,180 321% • 1Q2020 recognized a significant gain of bulk sales at Vinhomes Grand Park
Operating Profit 3,335 10,128 204%
Profit before Tax 3,358 10,124 201%
Profit for the Period 2,687 7,645 185%
Profit after Tax and Minority Interest 2,540 6,844 169%
Note: (1) Based on Vinhomes JSC VAS 1Q2020 unaudited consolidated financial statements. Yoy comparison is with Vinhomes JSC VAS 1Q2019 unaudited consolidated financial statements; (2) Does not include BCC projects which is recorded as finance Income
Summary BCC Project Performance and Reconciliation
Adding Performance of BCC into Vinhomes P&L Assuming Full Consolidation
Financial Performance 1Q2020 (Vinhomes Projects & BCC Projects)
28
Figures in VND bn
The Harmony
(Hanoi, low-rise)
Imperia
(Hai Phong, low-rise)
Thanh Hoa
(Thanh Hoa, Low-rise)
Skylake
(Hanoi, High-rise) Total BCC projects
Revenue 383 198 379 78 1,038
Cost of Sale (221) (68) (162) (32) (483)
Gross Profit 162 130 217 46 555
% Margin 42% 66% 57% 59% 53%
SG&A (19) (15) (56) (10) (100)
Profit attributable 142 115 129 29 415
Profit attributable to Vinhomes (99%) 141 114 127 29 411
Figures in VND bn Adjusted 1Q2020 VHM (1) 1Q2020 BCC Projects Total Adjusted 1Q2020
Sale of Inventory Properties 16,695 1,038 17,733
Other Revenue 802 - 802
Total Revenue 17,497 1,038 18,535
Cost of Sale (7,040) (483) (7,523)
Gross Profit 10,457 555 11,012
Profit sharing from BCC projects 411 (411) -
Operating Profit 10,128 - 10,128
Profit before Tax 10,124 - 10,124
Profit for the Period 7,645 - 7,645
Profit after Tax and Minority Interest 6,844 - 6,844
Note: Based on Vinhomes JSC VAS 1Q2020 unaudited consolidated financial statements and management accounts of the BCC projects. (1) Adjusted finance performance includes gain from bulk sales in the form of share transfer transaction, which was recognized as financial
income in financial statements into Sale of Inventory Properties and Cost of Sale.
(*) Due to delays in regulatory approval processes, a number of pipeline projects may have to be developed under BCC format.
Financial Performance Overview
29
2,109
19,719
29,746
3,358
10,124
2017 2018 2019 1Q2019 1Q2020
1,410
14,284
21,747
2,540
6,844
2017 2018 2019 1Q2019 1Q2020
12,780
35,769
48,162
4,837 5,717
263
816
1,114
299 278
2,254
2,079
2,352
717524
15,297
38,664
51,627
5,853 6,519
2017 2018 2019 1Q2019 1Q2020
Sale of Inventory Properties Leasing Others (1)
4,281
9,527
26,662
1,028 2,751
(12)
244
603
106 94
898
290
191
195104
5,167
10,061
27,456
1,329 2,949
2017 2018 2019 1Q2019 1Q2020
Sale of Inventory Properties Leasing Others(1)
48.1%
Note: Based on VAS Audited Consolidated Financial Statements for 2017, 2018, 2019 and Unaudited Consolidated Financial Statements for 1Q2020 (1) Includes revenue from general contractor services, shared profit from VCR, Vinschool, Vinpearl (until such components are
completely transferred to those respective Vingroup’s subsidiaries) and others
Profit before Tax Profit after Tax and Minority Interest
Total Revenue Gross Profit and Gross Profit Margin
(VND bn) (VND bn)
(VND bn)(VND bn)
Margin for Sale of
Inventory PropertiesMargin for Leasing
33.8%35.5%
21.3%
13,82222,363
32,475
3,93710,834
552
1,136
322
15,83222,363
32,475
3,937
10,834
2017 2018 2019 1Q2019 1Q2020
Financial Performance Overview (adjusted)
30
44,960
71,96863,618
8,61117,733
952
8161,114
299
278
886
2,0792,352
717
524
46,798
74,863 67,084
9,627
18,535
2017 2018 2019 1Q2019 1Q2020
Sale of Inventory Properties Leasing Others
17,48522,425
34,487
3,68710,815
483
244
603
106
94
23
290
191
195
104
17,99122,959
35,281
3,98811,013
2017 2018 2019 1Q2019 1Q2020
Sale of Inventory Properties Leasing Others
33.8%(3)Margin
9,601
14,284
21,747
2,540
6,844
552
909
257
11,319 14,284
21,747
2,540
6,844
2017 2018 2019 1Q2019 1Q2020
Margin for Sale of
Inventory PropertiesMargin for Leasing
29.9%
PATMI PATMI Attributable to Block Sale of 6 Buildings in Vinhomes Central Park
Sponsorship & Donation Sales Consulting Fees Trademark Fees
Notes: The financials as presented above are illustrative and based on the arithmetic aggregation of (i) Vinhomes JSC audited general purpose financials for FY2017-2019, (ii) Excluded Projects financials for FY2017-2019 and (iii) Unaudited Consolidated Financial Statements 1Q2020. (1): Adjusted for Revenue and Gross profit of BCC projects and bulk sales
recognized as finance income. (2) Others principally comprises revenue from general contractor services, shared profit from VCR, Vinschool and Vinpearl and others. (3) Includes other operating income and other operating expenses and adjusted for (i) sponsorship & donation, (ii) sales consulting fees (not expected to be incurred post acquisition of Vinhomes
Property Management (“VHPM”) in 2018; however, this excludes any in-house costs at VHPM that may be incurred by Vinhomes JSC) and (iii) trademark fees previously paid to Vingroup JSC, which are not expected to be incurred going forward. (4) Adjusted for (i) sponsorship & donation, (ii) sales consulting fees (not expected to be incurred post acquisition of
VHPM in 2018; however, this excludes any in-house costs at VHPM that may be incurred by Vinhomes JSC) and (iii) trademark fees previously paid to Vingroup JSC which are not expected to be incurred going forward
48.4%
(1)
45.7%
38.9% 31.2% 54.2% 61.0%42.8%
50.8% 29.9% 54.1% 33.8%35.5%
(2)
61.1%
Adjusted EBITDA Margin
EBITDA EBITDA Attributable to Block Sale of 6 Buildings in Vinhomes Central Park
Sponsorship & Donation Sales Consulting Fees Trademark Fees
(VND bn) (VND bn)
(VND bn)(VND bn)
Adjusted EBITDA and Margin Adjusted PATMI(4)
Total Adjusted Revenue Adjusted Gross Profit and Gross Profit Margin
(1) (2)
15,327
31,909
26,505 26,626
1,562 4,525
13,693
4,794
31-Dec-2017 31-Dec-2018 31-Dec-2019 31-Mar-2020
Total Borrowings Cash and Cash Equivalents
10,124
48,145
64,715 72,339
31-Dec-2017 31-Dec-2018 31-Dec-2019 31-Mar-2020
17,006
36,858
60,297 61,642
31-Dec-2017 31-Dec-2018 31-Dec-19 31-Mar-20
Balance Sheet Overview
31
44,421
91,203
139,555 141,421
6,883
28,486
57,686 61,586
51,304
119,689
197,241
31-Dec-2017 31-Dec-2018 31-Dec-2019 31-Mar-2020
Current Assets Non-current Assets
203,007
Note: Based on VAS Audited Consolidated Financial Statements for 2017, 2018, 2019 and Unaudited Consolidated Financial Statements for 1Q2020.
(1) Cash and cash equivalents includes short-term investments.
VND bn
Total Assets Inventory
VND bn
VND bn
Total Cash & Cash Equivalents(1) and Total Borrowings
VND bn
Total Equity
Key Credit Metrics
7.8
17.4
1Q2019 1Q2020
23.8%
7.0%
11.0%
31-Dec-2018 31-Dec-19 31-Mar-20
56.9%
19.8%
30.2%
31-Dec-2018 31-Dec-19 31-Mar-20
26.7%
13.4% 13.1%
31-Dec-2018 31-Dec-19 31-Mar-20
32Notes: Based on VAS Audited Consolidated Financial Statements for 2017, 2018 , 2019 and Unaudited Consolidated Financial Statements for 1Q2020
(1) Net Debt = (Short-term Borrowings + Long-term Borrowings) – Cash & Cash Equivalent. (2) Cash and cash equivalents includes short-term investments. (3) Interest coverage ratio = EBIT/Interest Expense
Times
Net Debt(1) / (Total Assets – Cash & Cash Equivalent(2)) Net Debt(1) / Equity
Interest Coverage Ratio(3)Total Debt / Total Assets
where happiness lives
Appendix
Case Study 1: Chinese Property Sales Showed Strong Recovery Trend in March 2020
Notes: Based on data provided by China Real Estate Information Corporation (CRIC)
34
0.0
50.0
100.0
150.0
200.0
250.0
Jan-20 Feb-20 Mar-20
Top 5 Developers in China - Contract Sales (RMB Bn) in January, February and March 2020
Evergrande Vanke Country Garden COLI Sunac
1Q is typically the low season
Seasonal 1Q Pre-Sales
YoY contraction also due to 1Q2019 being supported by the first
full quarter sales of Vinhomes Ocean Park and Vinhomes Smart
City
1Q pre-sales is seasonally lower historically, largely due to
homebuyers and tenants moving in before the Lunar New Year,
while 2H would experience stronger sales
2016 – 2020 quarterly pre-sales 1Q 2016 – 2020 pre-sales
Q1-2
016
Q2-2
016
Q3-2
016
Q4-2
016
Q1-2
017
Q2-2
017
Q3-2
017
Q4-2
017
Q1-2
018
Q2-2
018
Q3-2
018
Q4-2
018
Q1-2
019
Q2-2
019
Q3-2
019
Q4-2
019
Q1-2
020
Units sold Contracted sales (VND bn)
Q1-2016 Q1-2017 Q1-2018 Q1-2019 Q1-2020
Units sold Contracted sales (VND bn)
VND6,354tn
4,826 units
35
VND6,354tn
4,826 units
Case Study 2: Vinhomes Experience During the Real Estate Market Trough in 2010 – 2013
What Did We Do?
Did We Reduce Prices?
How Is This Time Different?
• Offered more value instead of cutting prices
• Ensured on-schedule delivery to enhance reputation while competitors defaulted or missed delivery deadlines
• Launched non-cash cross-selling promotions (Vinschool, Vinmec) to stimulate demand
• Won customers and recovered faster than competition
• Did not cut prices as homebuyers would wait for lower prices
• Offered more value for money by leveraging cross-selling
opportunites (Vinmec, Vinschool)
• On-schedule delivery was critically important as many
developers defaulted for missed delivery deadlines
• The situation is much harder to predict, as specially when vaccine for Covid-19 has not yet been found
• Homebuyers hold on to cash and wait for good pricing opportunities but supply is limited
• Mortgage homebuyers have been asking for credit support from banks as a part of the US$12.2bn credit support package
• Launch Vinhomes Online to promote sales and cut costs. Offer cross-selling promotions with VinFast and VinSmart
36
PERCENTAGE OF FOREIGN BUYERS DECLINED BY 127 BPS FROM 31 DEC 18
BECAUSE BUYERS OF VINHOMES SAPPHIRE APARTMENT UNITS ARE MOSTLY
DOMESTIC BUYERS
• Projects with high number of sold units with A mortgage were
• Proportion of sold units with a mortgage depends on clients’ preferences,
locations and sales policy
• Vinhomes homebuyers often enjoy favorable interest rates relative to the
market thanks to good relationships between vinhomes (as the project
developer) and large banks
• Interest supports offered to homebuyers by developers for 18 to 24
months, and a grace period for principal payments during the period of
interest support
• Vinhomes ocean park, vinhomes smart city and vinhomes grand park
buyers can take out a mortgage of up to 35 years.
FOREIGN BUYERS(1)
8%
MORTGAGES
65%
Project Selling pointsPercentage of
foreign buyers
Vinhomes Golden
River (HCMC)
Vinhomes Golden River is constructed
along the Saigon river, in the heart of
District 1. The area is expected to become
home to new office skyscrapers,
commercial centers, and beautiful
riverside walks
30%
Vinhomes West
Point (Hanoi)
Situated in the West of Hanoi, Vinhomes
West Point has been developed to set a
new standard of living, with its harmonious
combination of water, trees and “All-in-
one” facilities
23%
Vinhomes
Skylake
(Hanoi)
A mixed use development in Nam Tu Liem
new administrative area of Hanoi. It is
adjacent and looks over the 32-hectare
Cau Giay park, with 19-hectare water
surface reservoir
14%
Vinhomes
Ocean Park
Vinhomes Smart
City
Vinhomes Grand
Park
Percentage (%) 68% 64% 79%
Notes: Data as of 31 march 2020 (1) for all units sold in vinhomes projects from the incorporation of the residential business in vingroup until 31 march 2020, excluding projects launched before 2015 (i.E. Vinhomes royal city and vinhomes times city)
Proportion of sold units with a mortgage
Continued Support from Customers and Mortgage Lenders
37