Vincom Retail Joint Stock Company FY 2017 Financial Results. 29 January 2018

Transcription

1 Vincom Retail Joint Stock Company FY 2017 Financial Results 29 January 2018

2 1. Key Highlights

3 Performance Overview FY 2017 Revenue from Leasing (1) VND4,605 billion 19.7% YoY Gross Profit VND3,473 billion 20% YoY Leasing NOI (2) EBITDA Total PATMI VND2,768 billion 25.2% YoY VND4,315 billion 5.5% YoY VND3,433 billion 45.9% YoY 1 Note: IFRS Management Consolidated Financial Reports for FY2017 (conversion from VAS into IFRS by management, excludes impact from IP/IPUC revaluation gain/loss); (1) Leasing revenue include other revenue and revenue from trading goods (2) NOI for leasing investment properties and rendering of related services

4 Continued Expansion of Nationwide Presence Portfolio in Prime Urban and Growth Cities Unique Multi-Format Retail Model (Segmentation by GFA) 46 60% Share (1) Malls Market Operational Key Cities Hanoi 7 Vincom Malls 3 Vincom Centers 2 Vincom Mega Malls 2 Vincom Plazas Ho Chi Minh City 11 Vincom Malls 1 Vincom Center 1 Vincom Mega Mall 7 Vincom Plazas 2 Vincom+ Malls 1.2mm Retail GFA (sqm) North Vietnam 8 Vincom Malls 6 Vincom Plazas 2 Vincom+ Mall Central Vietnam 10 Vincom Malls 6 Vincom Plazas 4 Vincom+ Malls South Vietnam 10 Vincom Malls 9 Vincom Plazas 1 Vincom+ Mall Vincom Center No. of Malls: 4 GFA: 165,876 sqm Vincom+ No. of Malls: 9 GFA: 50,199 sqm 46 malls across 24 cities / provinces VC+ 4% VC 14% VP 48% 4 retail formats for specific areas VMM 34% Vincom Mega Mall No. of Malls: 3 GFA: 395,148 sqm Vincom Plaza No. of Malls: 30 GFA: 568,170 sqm Proven and scalable retail development platform 2 Note: As at 31 December 2017 (1) Based on Colliers as at August Based on Vincom Retail s combined retail GFA in Hanoi and HCMC, and GFA of all multi-tenant shopping malls in Hanoi and HCMC. (2) As at 31 December 2017.

5 2. Operational Update

6 2017 Operational Highlights 2017 Highlights Listed on HOSE in November 15 new Vincom shopping malls H&M opened 2 stores in Hanoi and Ho Chi Minh City Zara opened first store in Hanoi Key tenants added: Inditex brands (Stradivarius, Massimo Dutti, Pull & Bear), H&M and Old Navy Contracted pipeline of c.71 projects H&M - 1 st store in Vietnam Zara and sister Inditex brands Retail GFA ( 000 sqm) 4,605 1,200 1,100 Leasing Revenue (VNDbn) (1) 3,847 1,000 2, st Retail Mall in Vietnam Vincom Center Ba Trieu 1 st Integrated Project in Vietnam Vincom Center Dong Khoi Vincom Plaza Long Bien Vincom Mega Mall Royal City 1, CAGR: Revenue: 32.4% GFA: 33.0% No. of Malls Years of Operating Experience Achieving ~1.2 mm sqm of Retail GFA (~28x Increase Since 2004) Note: As at 31 December 2017 (1) IFRS Management Consolidated Financial Reports for FY2017 (conversion from VAS into IFRS by management, excludes impact from IP/IPUC revaluation gain/loss)

7 Key Operational Metrics Average Occupancy Retail GFA FY 2016 FY 2017 Change (bps) Figure in sqm FY 2016 FY 2017 Change (%) Vincom Center 93.7% 92.8% (90) Vincom Center 165, ,876 - Vincom Mega Mall 80.2% 82.8% 260 Vincom Mega Mall 395, ,148 - Vincom Plaza 92.0% 90.7% (130) Vincom Plaza 440, , Vincom+ 72.5% 65.6% (690) Vincom+ 27,679 50, Overall 86.5% 87.2% 70 Overall 1,028,808 1,179, Note: As at 31 December 2017

8 Tenant Update Tenant Update for 2017 Tenant Mix Comparison (2) Key Tenants Joining in 2017 Key Tenants Signed in 2017 for Expansion As at Jun % 18.4% 24.3% 15.4% 13.9% VinDS retail GFA was reduced in certain malls to accommodate certain domestic accessories, cosmetics and fashion brands VinCity, Vingroup s affordable housing brand, has leased space in Vincom Mega Mall Thao Dien, Vincom Mega Mall Times City and Vincom Mega Mall Royal City to open their real-estate trading floor (1) As at Dec % 27.4% 16.1% 13.9% 24.0% Fashion Hypermarket / Supermarket Others Food & Beverage Entertainment 5 Note: (1) Refers to sales office where developers can market their projects and have customers and sales people consult and transact. (2) Tenant mix is based on NLA at the end of each period

9 Malls Opening from 2018E 2019E 51 malls to be opened in 2018E 2019E 6 malls opened in 2H 2017 Malls Opening by Format Format 2H E 2019E Vincom Center - 5 Vincom Mega Mall - 0 Vincom Plaza 3 27 Vincom

10 3. Financials and Capital Management Update

11 Financial Performance FY 2017 vs. FY 2016 Figures in VND billion FY 2016 (1) FY 2017 (2) Change (%) Commentary Leasing of Investment Properties and Rendering of Related Services 3,847 4, Leasing revenue growth mainly driven by addition of 15 malls during the year and full operation of 10 malls previously opened in 2016 Sale of Inventory Properties 2, (68.4) In 2016, sale of inventory properties was mainly attributed to delivery of Vinhomes Nguyen Chi Thanh and Hai Phong shop-houses In 2017, sale of inventory properties mainly came from small shop-house projects and shop-offices in Royal City and Times City Gross Profit 2,893 3, Increase of leasing revenue and related services Operating Profit 3,009 3, Mainly due to gain from disposal of Tan Lien Phat Profit Before Tax 2,557 3, Due to increase in above items Profit After Tax 2,362 3, Due to increase in above items Profit after Tax and Minority Interest 2,354 3, Due to increase in above items Note: (1) IFRS Audited Consolidated Financial Reports for FY2016. Profit Before Tax, Profit After Tax, Profit After Tax and Minority Interest exclude impact from IP/IPUC revaluation gain/loss. (2) IFRS Management Consolidated Financial Reports for FY2017 (conversion from VAS into IFRS by management, excludes impact from IP/IPUC revaluation gain/loss) 7

12 Financial Performance Q42017 vs. Q42016 Figures in VND billion Q Q Change (%) Commentary Leasing of Investment Properties and Rendering of Related Services 998 1, Leasing revenue growth mainly driven by addition of 15 new malls during the year and full operation of 10 malls previously opened in 2016 Sale of Inventory Property (14.0) Total Revenue 1,302 1, In 2016, sales of inventory properties was mainly attributed to delivery of Vinhomes Nguyen Chi Thanh and Hai Phong shop-houses In 2017, sales of inventory property mainly came from small shop-house projects and shop-offices in Royal City and Times City Leasing revenue growth mainly driven by addition of 15 new malls during the year and full operation of 10 malls previously opened in 2016 Gross Profit Due to increase in above items Operating Profit / (Loss) (70) 656 n.m Profit / (Loss) before Tax (217) 660 n.m 2016 loss was mainly due to sharing loss in Tan Lien Phat, an associate, due to reclassification and allocation of expenses Additional 2016 loss was due to prepayment penalty for early repayment of international unsecured bonds Profit / (Loss) for the Period (251) 528 n.m Due to increase in above items Profit / (Loss) after Tax and Minority Interest Note: VAS Unaudited Consolidated Financial Reports for FY2017 (253) 528 n.m Due to increase in above items 8

13 Financial Performance Total Revenue (1) VNDbn 5,981 6,403 5,413 2, ,249 1,953 3,847 4,605 1,953 2, Leasing of Investment Properties Sale of Inventory Properties Gross Profit VNDbn Gross Profit Margin (%) 80.2% 36.4% 45.2% 64.1% 1,567 2, ,567 1,855 2, ,631 3, , Leasing of Investment Properties Sale of Inventory Properties VAS (2) Gross Profit (VNDbn) 1,226 2,007 2,642 2,781 Operating Profit VNDbn Profit After Tax and Minority Interest VNDbn 3,009 3,288 3,433 1,412 1, ,226 2, VAS (2) Operating Profit (VNDbn) 256 1,296 2,732 2, VAS (2) Profit After Tax and Minority Interest (VNDbn) 105 1,090 2,437 2,017 9 Note: Financials based on IFRS standards (exclude impacts from IP/IPUC revaluation gain/loss) unless otherwise stated (1) Leasing revenue include other revenue and revenue from trading goods (2) VAS Audited Consolidated Financial Reports for FY2014, FY2015, FY2016 and VAS Management Consolidated Financial Reports for FY2017

14 Balance Sheet Total Assets Total Inventory VNDbn (1) Re-tenanting and redevelopment exercise across Vincom Mega Mall portfolio, leading to short-term IP asset value reduction and FV loss from IP of c.us$50mm (2) Upon completion of repositioning, property values have returned to normalized levels in 1H2017 (3) Reallocation out of IP and IPUC amounting to c.us$192mm (1) 58,470 VNDbn 2,318 42,350 17,322 48,208 13,648 46,173 15,014 15,856 1,684 1,701 25,028 34,560 31,159 42, Investment Properties and Investment Properties Under Construction Other Assets Total Borrowings and Cash and Cash Equivalents Total Equity VNDbn VNDbn 42,220 5,787 2,613 33,986 2,280 1,079 3, ,842 1,698 3,252 21,456 24, Total Borrowings Cash and Cash Equivalents Receivable from short term loan Note: IFRS Audited Consolidated Financial Reports for FY2014, FY2015, FY2016 and IFRS Management Consolidated Financial Reports for FY2017 (conversion from VAS into IFRS by management, excludes impact from IP/IPUC revaluation gain/loss from 2016 to 2017) 10 (1) Includes reclassifications to inventory property, as well as disposal (amounting to US$155.9mm in 2016).

15 Liquidity Position Net Debt (1) / Total Assets % Net Debt (1) / Equity % 2.5% 3.4% -0.2% % Interest Coverage Ratio (2) (3) Times % Average borrowing cost (4) % 8.9% Note: Financials based on IFRS standards. (1) Net Debt = (Short-term Borrowings + Long-term Borrowings) (Cash & Cash Equivalent + ST Investments + Receivables of Short-term loans), and Cash &Cash Equivalent include 3-year deposit amount of VND1,830bn due to flexible withdrawal nature of the deposit. (2) Interest Coverage Ratio = Operating Profit / Net Interest Expenses, (3) Interest income include interest from BCC contracts, (4) Average borrowing cost based on outstanding loans as of 31 Dec 2016 and 31 Dec 2017 respectively

16 Appendix

17 Bridging VAS to IFRS VAS FY2017 Adjustment IFRS FY2017 Leasing revenue and other related services 4, ,514 Sale of residential inventory 950 (142) 809 Other revenue Total revenue 5,518 5,413 Cost of leasing activities and other related services (2,123) 885 (1,284) Cost of residential inventory sold (565) (42) (607) Commentary on Adjustments Depreciation of malls is included in VAS; added back for IFRS Others (50) (50) Cost of goods & services (2,738) (1,941) Gross profit 2,781 3,473 Selling expenses (246) (246) General and administrative expenses (314) 10 (304) Share of profit of associate 540 (102) 438 Other income Other expense (55) (55) Finance expense (1,166) 588 (578) Finance income 571 (17) 554 Profit before tax 2,147 3,703 Tax expense (130) (139) (269) Profit after tax 2,017 3,433 Decrease in share of profit of associate under IFRS Recorded gains from disposal of TLP under IFRS Eliminated losses from disposal of TLP under VAS Lower COGS so higher tax amount (assuming 20% CIT) 12