VINGROUP JOINT STOCK COMPANY. Investor Presentation September/2014 INVESTOR PRESENTATION

Transcription

1 VINGROUP JOINT STOCK COMPANY Investor Presentation September/2014 1

2 Table of contents A. Vietnam Macroeconomic Updates 3-5 B. Introduction to Vingroup 6-11 C. Business Strategy D. Key Investment Highlights E. Business Overview F. Financial Overview - VAS G. Financial Overview - IFRS H. Trading Performance

3 A. Vietnam Macroeconomic Updates 3

4 Improving Macroeconomic Conditions Supporting Growth Real GDP growth remains strong Inflation and interest rates have eased considerably (%) 8% 6% 4% 2% 0% 6.4% 6.2% 5.2% 5.4% 5.2% H1/2014 (%) 20% 15% 10% 5% 0% 13.1% 9.2% 18.6% 17.0% Driven by power & fuel price surges, devaluation of the currency in February and a minimum wage hike in October 13.5% 9.2% 10.5% 6.6% 8.7% 1.4% H1/2014 Inflation Lending Interest Rate (1) FDI (implemented) stays robust Exchange rate VND:US$ is resilient (US$bn) H1/ ,000 21,000 20,000 19,000 18,000 Currency has remained stable for the past 3 years 19,498 21,034 20,840 21,095 21, H1/2014 US$ Appreciation / (Depreciation) '12 '13 CNY 2.8% KRW 1.4% VND (1.2%) SGD (3.4%) THB (6.9%) MYR (7.1%) PHP (8.3%) INR (12.4%) IDR (24.3%) 4 Sources: Economist Intelligence Unit, CBRE reports, Vietnamese general Statistics Office, Vietnam State Bank 1.Average interest rate.

5 Favorable Long-term Outlook for Consumption and Real Estates Private consumption growth (1) (%) 10% 8.2% 8% 6% 4.9% 4.1% 4% 2% 5.4% 5.6% Catching up with Regional Peers in Urbanization (2) (%) 100 Singapore- 100% 80 Malaysia- 74% 60 Indonesia- 52% China- 53% Philippines- 49% 40 Thailand- 35% India- 32% Vietnam- 32% 20 0% H1/ Region s lowest retail space per capita (3) Asian Pacific, Retail Space per Capita (sqm), 2013 Rising income levels (4) (GDP per capita, US$) ,205 1,394 1,552 1,728 1,920 2,135 2,330 2,544 2,781 Bangkok Singapore Kuala Lumpur Jakarta Manila Hanoi Ho Chi Minh Phnom Penh Yangoon 2010A 2011A 2012A 2013A 2014E 2015E 2016E 2017E 2018E 5 Sources: 1. Economic Intelligence Unit 2. World Bank, Urbanization Data, CBRE 4. CEIC

6 B. Introduction to Vingroup 6

7 History of Vingroup Vincom Leadership in Residential, Commercial and Retail Established in May 2002 Listed on the HOSE in 2007 Opened the first commercial building Vincom Center Ba Trieu in 2004 Launched over 8,000 apartments at Royal City, Times City in 2010 and 2011 Made a conscious decision to focus on the core business in Vietnamese real estate McKinsey (2012) 3,935 Total Assets 3,557 US$ mn 2,621 1,001 1,228 1,667 Transformational Merger in 2012 to form Vingroup Expanded operations into consumer focused industry sectors such as hospitality and leisure Synergies with large land bank owned by Vinpearl Lowered overall cost of funding for the Group Economies of scale Critical mass and diversified business model and revenue streams Membership program integration across all consumer segments H1/2014 Vinpearl Leadership in Hospitality Established in 2001 Listed on the HOSE in Jan 2008 Opened the first resort, Vinpearl Resort Nha Trang in 2003 Opened Vinpearl Land in 2006 and Vinpearl Luxury Nha Trang, Vinpearl Golf Club - Nha Trang, Vinpearl Luxury Da Nang in 2011 Total Assets US$ mn Merger with Vincom to form Vingroup Summary Financials (1)(2) (US$mn) H1/2014 Revenue EBITDA Total Assets 1,667 2,621 3,557 3,935 Cash + Cash Equivalents + Short-term investments Jan Financials are prepared under VAS; Based on exchange rate of US$1 = VND 21,300 (Apply only for 2014) 2. Total assets in 2011 contains only Vincom s total assets includes Vinpearl and Vincom s total assets

8 Integrated Platform Focused on the Vietnamese Urban Consumer Uniquely positioned to benefit from Vietnam s consumption growth Consumer Expenditure on Housing (US$ bn) Consumer Expenditure on Tourism (US$ bn) Consumer Expenditure on Hospital (US$ bn) Total Consumer Spending (1) (US$ bn) E 15E 16E E 15E 16E E 15E 16E E 15E 16E Largest Developer In Vietnam Premium Brand Recognition Diversified Sector Exposure Residential Retail Office Hospitality Others Develop, Manage, Operate Quality Residential Properties in Urban Centers Manage and Operate High-end Retail Properties Manage Quality Office Buildings and Provide Asset Management Services Develop, Manage, and Operate Premium Tourism, Hospitality Properties High-end Hospital & Clinics Quality Formal Education Recreational Facilities E-Commerce 8 Source: Economist Intelligence Unit as of 31 December Total Consumer Spending equals Consumer Expenditure on Housing, on Tourism, on Hospital and others

9 Significant Focus on Recurring Revenue Streams Gradual shift towards a greater percentage of revenues coming from recurring income streams such as retail, hospitality and Hospital enhances the resilience of the business model. Recurring Revenue Streams Continue to Grow (1) (US$ mn) US$84mn (10%) US$75mn (9%) US$13.0mn (2%) 2013 (2) Retail Rental Income Hospitality & Tourism Hospital 176 Existing Portfolio Continues to Ramp Up (3) Vincom Center Ba Trieu Tower A&B Vincom Center Ba Trieu Tower C Vincom Center Dong Khoi Vincom Center Long Bien Total GFA = 1,307,763m 2 Vincom Mega Mall Royal City Vincom Mega Mall Times City Vinpearl Resort Nha Trang Vinpearl Land Nha Trang Vinpearl Luxury Nha Trang Vinpearl Golf Club Nha Trang Vinpearl Luxury Da Nang Vinmec International Hospital H1/2014 Targeting Significant Contribution from Recurring Income (2) % 18.5% 40.7% 32.5% 20.2% ~45.0% Medium term New Landmark Projects in & 2014 Vincom Vinpearl Mega Phu Mall Royal Quoc City Vincom Vincom Mega Mall Center Times Ha City Long (Phase 1) Q4-14 Q4-14 GFA: c. 836,972m 2 GFA (3) : c. 229,604m 2 Vinhomes Nguyen Chi Thanh Ha Vinpearl Phu Quoc Noi Jan - 14 (4) GFA: c. 37,944m 2 Vinhomes Tan Cang Aug - 14 (4) GFA: c. 169,568m 2 (5) GFA: c. 383,464m 2 (5) 9 1. Source: Audited VAS Consolidated Financial Statement for 2010, 2011; 2012 and 2013; VAS Consolidated Financial Statement for Q2 2014; 2. Based on exchange rate of US$1 = VND21,300 for GFA figures as at 30 June Break ground date 5. Mixed-Use project. The GFA provided is GFA of the recurring revenue components only

10 Vinhomes Riverside Vincom Can Tho Vinhomes Times City Vincom Hai Phong Vinhomes Royal City Vinhomes Riverside 2 Vinhomes Tan Cang Vinhomes Nguyen Chi Thanh Ha Noi Residential Cash Flows Are Resilient & Locked In Continue to ramp up our major development projects, with a substantial amount of presales locked in with cash deposits on hand. Resilient Apartment and Villa Sales with Upside to Come (US$mn) 149 Vinhomes Riverside Vinhomes Times City Vinhomes Royal City H1/2014 Unrecognized revenue as at 30 June 2014 Major Projects Being Handed Over and on Sale This Year (1) Total GFA: 1.207mn m 2 (54% residential) 3,846/4,518 (85%) units sold and leased; of which, 2,045 units delivered Total contract value: US$776mn, received US$724mn Total GFA: 2.176mn m 2 (64% residential) Phase 1: 4,888/5,694 (86%) units sold; of which, 3,400 units delivered Total contract value: US$569mn, received US$518mn Total GFA: 1.177mn m 2 (56% residential) Total contract value with 5 sub-developers and a wholesaler: US$760mn, received US$643mn 52 Progress payment for un-recognized revenue From March to July 2014, 1,547 more units were sold at Times City and from June to July 2014, 238 more units were sold at Royal City Promising Pipeline of New Projects (2) Q1-14 (5) Q3-14 (5) Mixed-use residential, retail, office and school Total GFA (3) : 225,936m 2 (49% residential) Expected completion: Q Mixed-use project in Binh Thanh District, Ho Chi Minh City Site area: c. 422,000m 2 Expected completion: Q Mixed-use project adjacent to Vinhomes Riverside in Long Bien, Hanoi Total GFA: c. 525,529m 2 (79% residential) Expected start: Q Expected completion: Q High-end retail, office & residential and parking complex Total GFA: c.144,730m 2 (56% residential) Expected start: Q Expected completion: Q Mixed-use residential, retail project in Ninh Kieu District, Can Tho City Total GFA: 30,128 m 2 (61 % residential) Expected Start: Q As at 30 June These projects are undergoing an approval process as a result of which the components and GFA are subject to change 3. Expected completion (phase 1); (4) Expected completion; (5) Construction began;

11 Understanding the Land Acquisition & Purchase Process Understanding the development and presale process is a crucial part of appreciating Vingroup s locked-in revenue streams. Land Acquisition Presales (1) Delivery 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 approvalin-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 Stage 1 Loan Agreements First Stage of Presale Via Loan Agreements The Group offers buyers option to sign a loan agreement presale Loan principal expected to be applied to initial installments due under a sale and purchase agreement (SPA) Typically loan amount is 20-40% of the purchase price 18 months at ~2% interest Stage 2 Sale & Purchase Contract Second Stage of Presale conversion to SPA When foundation work or first floor area is complete buyer has 15 days to confirm purchase On confirmation and signing of SPA - loan principal applied to the deposit and installments under the SPA Stage 3 Apportioned Pre-sales Before Completion Third Stage Installments Subsequent installment payments made depending on SPA terms Installment payments of 10-20% are made in varying stages depending on SPA 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 Vietnamese law requires the completion of either the foundation of a building or its 1st floor area for a sale and purchase agreement to be signed. Hence all sales prior to this completion are made in Stage 1 by loan agreement, upon completion they are converted to SPAs under Stage 2

12 C. Business Strategy 12

13 What Differentiates Vingroup? Leading Private Group In Vietnam with Premium Brand Names in Commercial, Residential, Hospitality and Education with Demonstrated Quality and Prestige Fully Integrated Real Estate Owner and Developer of Large- Scale and Mixed Properties, with Exposure in Key Consumer Segments Unique Vingroup Membership Platform that Strategically Unites Targeted High Value Consumers Effective Business Model that has been Successfully Demonstrated VINGROUP S DIFFERENTIATION CREATES COMPETITIVE ADVANTAGES Strong brand equity that attracts premium tenants & clientele Premium pricing for new projects focused on upper and middle class Vietnamese consumers A pioneering established corporation that leads the development of real estate, retail and services sectors. Maintain large market share especially with the upper and main affluent segments Expands into new retail business segments to lead consumer trends in Vietnam Realise synergies among consumers of focused segments Able to target different tiers of high value consumers through a variety of exclusive membership programs Higher percentage of recurring revenues over time thanks to adding strong growing operational properties to the Group portfolio Asset sales allow recycling capital into more consumer driven business segments; and taking advantages of presales to customers 13

14 Business Strategies Are Reinforcing 1. Focus on High-quality, Large-scale Mixed Use Developments in Major Cities and Further Expand into Selected Strategic Cities 2. Grow Recurring Revenues Across Targeted Consumer Segments 14 Leverage expertise and experience in identifying and securing prime sites Target the mid to high-end markets Deliver on the need for high-quality retail and residential space through mixed use developments which increase its appeal Develop high-quality resorts and villas 5. Expand Into New Retail Businesses to Influence Consumer Trends, Maintain Leading Position in Retail Market in Vietnam: Own local and international retail brands Develop e-commerce: Further benefit from existing advantages in retail business in Vietnam Invest in different sectors to establish a long term and sustainable competitive advantage Further Develop in-house Sales and Leasing, Project Management and Property Management Capabilities Develop internal capabilities to enhance efficiency and support its portfolio of prime commercial investment properties Sales and Leasing Project management Property management Provide high quality utility services 4 2 Develop a substantial portfolio and maintain effectiveness of commercial buildings, hotels, recreational areas, hospital and schools: Provides a source of stable, recurring income Potential for capital gains Target the growing disposable income of upper and middle class consumers by delivering on their various needs 3 3. Diversify and Enhance Property Income Stream and Efficient Capital Management Commence large-scale projects near high-growth areas Expand addressable market by providing more affordable units Stable & Defensive Two pronged approach: Develop properties for sale. Operate properties for stable, recurring income. Sell properties if foresees long-term profitability for capital recycle. Pre-sales reduces the need to raise capital.

15 D. Key Investment Highlights 15

16 Investment Highlights 1 Vietnam s Largest Listed Real Estate Developer 2 Capital Efficient Real Estate Platform with Track Record of Successful Asset Disposals 3 One of the Largest Landbank in Prime Locations Across Vietnam 4 Well-recognized Premium Brand Names in Vietnam 5 Proven Track Record of Access to Capital Markets 6 Highly Experienced Management and Good Corporate Governance 16

17 1 Vietnam s Largest Listed Real Estate Developer Vingroup is the largest listed real estate company in Vietnam by market capitalization with controlling interest in over 30 developments, which are in prime urban and high growth areas in key cities throughout Vietnam. The Largest Company (1) and the only Pure-Play Exposure US$ mn 3,800 Pure-play real estate developer High-quality commercial, residential, hospitality and mixed-used properties 843 Mass market residential builder Furniture and granite business Diversifying into agriculture, mining & hydropower Primarily industrial parks developer Infrastructure development Telecom & network development A Clear Leader In Vietnamese Real Estate Vingroup #2 #3 #4 Developer of industrial and business parks and high-end hotels Also invests in energy, mining and education Proven ability to secure prime sites in the Central Business Districts of Hanoi and Ho Chi Minh City Quality properties that operate under the Vingroup brand names Growing portfolio of investment properties: A critical contributor of recurring revenues Track record of successful project development, sales and property management Repeated successful launches of residential and commercial projects Controlling Interest In over 40 Projects (2) Across Vietnam Landbank (3) : 10.61mn m 2 Landbank (3) : 64.51mn m 2 Ha Noi 6 Completed Projects o Vincom Center Ba Trieu - Tower A&B (Shopping Mall) o Vincom Center Ba Trieu - Tower C o Vincom Center Long Bien o Vinmec International Hospital o Vincom Mega Mall Royal City o Vincom Mega Mall Times City 7 Development Projects o Vinhomes Royal City o Vinhomes Times City o Vinhomes Riverside o Vinhomes Nguyen Chi Thanh Ha Noi o Vincom Soap - Tobacco o Vincom Riverside 2 o Vincom Dan Phuong 1 Completed and Sold o Vincom Center Ba Trieu - Tower A and Tower B (Office Components) Hung Yen 1 Development Project o Vincom Hung Yen Hai Phong 1 Development Project o Vincom Hai Phong Quang Ninh 1 Development Project o Vincom Center Ha Long Ho Chi Minh City 1 Completed Project o Vincom Center Dong Khoi 2 Development Projects o Vinhomes Tan Cang o Green City 2 Completed and Sold Projects o Vincom Center A Ho Chi Minh City o Vincom Financial Tower Can Tho 1 Development Project o Vincom Can Tho Quang Ninh 1 Development Project o Vinpearl Ha Long Hoi An 1 Development Project o Vinpearl Resort Hoi An Da Nang 1 Completed Project o Vinpearl Luxury Da Nang 2 Development Projects o Lang Van o Vinpearl Villas Ngu Hanh Son Binh Dinh 1 Development Project o Vinpearl Quy Nhon Nha Trang, Khanh Hoa 4 Completed Projects o Vinpearl Resort Nha Trang o Vinpearl Land o Vinpearl Luxury Nha Trang o Vinpearl Golf Club - Nha Trang 3 Development Projects o Vinpearl Villas Hon Tre o The Beach Villas o Vinpearl Hon Mot Cam Ranh 2 Development Projects o Vinpearl Cam Ranh o Vinpearl Bai Dai Da Lat 1 Development Project o Vinpearl Da Lat Phu Quoc 1 Development Project o Vinpearl Phu Quoc Source: Vietstock.vn as of 29 August As of 30 June 2014, Vingroup has 40 projects in Vietnam, of which, Vingroup has controlling interest in 39 projects, except Green City. 3. Attributable site area based on effective interest for projects under construction and future developments

18 2 Integrate Real Estate Platform Synergies Amongst Consumer Segments & Increases Exposure Across All Brands Membership Program Allows Clear Identification of High Value Consumers Quality residential properties and uncompromising services High-quality retail, entertainment experience Quality office space at premium locations Large landbank in up-and-coming cities in Vietnam, experienced in development and management of high-end hospitality properties Managing and operating entertainment services International-standard and quality hospitals Full continual system from kindergarten through high school with modern facilities Full-serviced e-commerce for retail customers. A variety of Facilities & Service Benefits to Members VIP Vingroup offers premium services and products, with a focus on exclusive privileges to premium cardholders 3 categories of Membership Diamond Card, Gold Card and Silver Card categories offer varying range of privileges to members Program integrates a vast array of benefits and offers cardholders preferential treatment and privileges for all different ranges of products and services provided by Vingroup Tiering of VIP Members Allows Further Differentiation and Targeting of Ultra High Net Worth Consumers Consumer Retail Vincom Center Ba Trieu Vincom Center Long Bien Vincom Center Dong Khoi Vincom Mega Mall Royal City Vincom Mega Mall Times City Hospital Vinmec at Times City Vinmec International Clinics at Times City and Royal City Education Vinschool at Vinhomes Riverside Vinschool at Royal City Vinschool at Times City Hospitality Services Vinpearl Resort NT Vinpearl Luxury NT Vinpearl Luxury Da Nang Vinpearl Golf Club - Nha Trang Entertainment Services Vinpearl Land Vinpearl Water Park Royal City Vinpearl Ice Rink Royal City Vinpearl Games Royal City Royal Bowling Vinpearl Aquarium Times City VinkE Time City Targeting Vietnam s Burgeoning Upperand Middle-Class Premium Ultra High Net Worth Segment 18

19 2 Capital Efficient Business Model Integrated Development Model Royal City Recycle Capital through Opportunistic Disposals 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 Dong Khoi (office component) (2) Residential GFA 54% (1) Residential segment presales helps to lighten capital requirements in a mixed-use project. Commercial and others GFA 46% (1) Recurring revenue becomes a larger component of total project revenues over time. Sale Price (5) US$25mn US$51mn US$64mn US$472mn US$238mn Profit % (3) >150% >100% >900% >100% >200% Holding period (years) 2 0 (4) Area Sold 22,480 m 2 31,300 m 2 24,059 m 2 98,057 m 2 77,694 m 2 Acquirer Demonstrated ability to create onshore liquidity by monetizing assets even in unfavorable conditions Recycling of capital into consumer growth segments that are more defensible and higher yielding By GFA as of 30 June Long-term operating lease with Vicentra, the entire cash proceeds have been received as of 31 July % profit denotes the profit achieved from the sale, by comparing the sale price with the construction cost, taking into account depreciation, of the assets 4. Vincom Financial Tower was sold upon construction completion 5. Exchange rate at the end of the transaction years were used.

20 3 One of the Largest Landbanks in Prime Locations Across Vietnam Effective Landbank Breakdown by Construction Status (1) GFA Breakdown by Type (1)(2) (million sqm) million m million m 2 Others: 27% Villas: 38% Entertainment: 1% Hospital, School: 8% Completed Under construction Development Completed Under construction Development Hotel: 4% Commercial: 6% Apartments: 16% Planned GFA Breakdown by Construction Status (1)(2) (million sqm) 1.06 Vincom Projects Vinpearl Projects Total GFA: 31,535,976m 2 (2)(3) million m million m million square meters of effective landbank is sufficient for the next 10 years of deployment Completed Under construction Development Completed Under construction Development Land banking strategy Seek to acquire land adjacent to existing mixed-use projects to benefit from economies of scale and increase the critical mass of existing projects Only look for land at prime locations in major cities Proactive in infrastructure development to support accessibility of own projects Landbank and GFA as at 30 June Subject to change as projects are in planning phase 3. GFA includes completed, under construction and development projects

21 21 4 Well-recognized Premium Brand Names in Vietnam Strong Brands Across Segments Secured 2 (1) out of the 20 Golden Sites in Vietnam in 2010 Vingroup develops its commercial, retail, residential and mixed-use properties under the Vincom brand name Demonstrated ability to sell residential and commercial real estate even in difficult times in 2010 and 2011 Proven execution skills: Completion of large scale projects under CBRE s estimation of construction time The properties have been selected as the headquarters of financial institution and embassies and also home to several Vietnamese and foreign organisations Successful in identifying and developing premium hospitality projects Hosted large national and international events e.g. Miss Vietnam World 2008, Miss Universe 2010 and Miss Earth 2010 World-class full-serviced general hospital and clinics at urban center in Hanoi and Ho Chi Minh city International standard facility equipped with modern test, diagnostic and operating facilities Educational philosophy behind Vinschool focuses on the overall development of students from an early stage in order to develop and shape the future generations of Vietnam Leveraging Vingroup s retail network and experience, VinEcom aims to focus on first class customer care, to create a best-in-class online retail experience in Vietnam 1. In February 2013, Vingroup transferred 100% interest in Vincom Center A Ho Chi Minh City to a real-estate investment company. As at 31 May 2013, the cash proceeds have been received in full Numerous Awards from independent media is a testimony of the Group s brand name International Shopping Centre 2013 for Vincom Center A HCMC Global RLI Awards 2013 Best Mixed-use Development (Asia) for Vinhomes Riverside Best Retail Development (Vietnam) for Vincom Mega Mall Royal City Asia Pacific Property Awards Best Retail Developer in Vietnam Euromoney Real Estate Awards 2012 Best Developer (Vietnam) South East Asia Property Awards 2012 Best Villa Development (Vietnam) for Vinhomes Riverside South East Asia Property Awards 2012 Best Condominium Development (Vietnam) for Royal City South East Asia Property Awards 2013 Vietnamese Golden Star Award

22 4 Well-recognized Premium Brand Names in Vietnam (cont ) Vingroup s brand names are instrumental in securing new sites, achieving premium pricing and attracting global brand tenants Premier Retail Malls and Offices in Key Cities Attract Global Brand Tenants (1) Hanoi Total Retail NLA (2) : 331,361m 2 Vincom Center Ba Trieu Tower A, B &C Vincom Center Long Bien Vincom Mega Mall Royal City Vincom Mega Mall Times City Ho Chi Minh City Total NLA (2) : 29,796m 2 Retail; 87,554m 2 Office Vincom Center Dong Khoi Vincom Center A HCMC (3) Golden sites Tenants for Vincom Center and Vincom Mega Mall in Ho Chi Minh City and Hanoi 2. NLAs as of 30 June Vingroup announced the sale of its 100% interested in Vincom Center A Ho Chi Minh City in March 2013

23 5 Track Record in Accessing Capital Markets Vingroup has a pioneering track record of success in the international capital markets, raising more than US$1 billion since 2009 through 6 major transactions Secondary Placement of Ordinary Shares RegS/144A International Senior Unsecured Notes International Syndicated Loan Private Equity Investment by Convertible Bonds (2) Convertible Bonds (2) April 2014 US$70mn Vietnam Capital Markets Deal 2013 Best Vietnam Deal 2013 October 2013 US$200mn Issuers that matter Best Vietnam Deal 2013 October 2013 US$150mn into Vincom Retail Best Vietnam Deal Real-estate Deal of the Year May 2013 US$200mn Best Capital Markets Deal 2012 Best Vietnam Deal 2012 Best Vietnam Deal 2012 Apr & Jul 2012 US$300mn Debt and equity-linked Deal of the year 2010 Nov 2009 US$100mn Good relationship with all leading domestic banks with repeat loan and bond issuance Holistic cooperation with local banks, including facilitation of mortgage financings for customers and transactional banking services at Vingroup commercial properties Cash & short term investments sufficient to cover any near term debt maturities independent of any new capital raising Demonstrated ability to create onshore liquidity through capital recycling of non-core assets Strong cash balance maintained to service working capital and interest payments Strong control over capital expenditures allow flexibility around liquidity management As of June 2011, The majority of the $100 millions CBs were converted into shares and a small amount were fully redeemed in June As of 06/09/2014, $46.8 millions CBs were converted into 24,511,934 shares

24 6 Experienced Management Team, Good Corporate Governance and Strong Sponsor Mr. Pham Nhat Vuong Chairman of the Board of Management Holds a Bachelors Degree in Geological Economic Engineering 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 Major shareholder of Vingroup Ms. Pham Thuy Hang Vice Chairwoman Ms. Vu Tuyet Hang Vice Chairwoman cum Deputy CEO Mr. Marc Villers Townsend (1) Independent Member Board of Management Ms. Pham Thu Huong Vice Chairwoman Mr. Le Khac Hiep Vice Chairman Mr. Joseph Gagnon (2) Independent Member Ms. Nguyen Dieu Linh Vice Chairwoman cum Deputy CEO Ms. Mai Huong Noi Member cum Deputy CEO Mr. Ling Chung Yee Roy (3) Independent Member Key Executives Ms Duong Thi Mai Hoa CEO Over 20 years experience Recently joined Vingroup Ms Nguyen Dieu Linh Vice Chairwoman & Deputy CEO 14 years experience 9 years with Vingroup Ms Vu Tuyet Hang Vice Chairwoman & Deputy CEO Over 20 years experience 9 years with Vingroup Mr Pham Van Khuong Deputy CEO Over 29 years experience 11 years with Vingroup Mr Dang Thanh Thuy Deputy CEO of Vingroup JSC and General Director of Vinpearl 18 years experience 11 years with Vinpearl Ms Nguyen Thi Huyen Tran Deputy CEO 18 years with Vinpearl Professor Do Tat Cuong Acting CEO 41 years in experience 4 years with Vinmec Ms Le Thuy Anh COO 15 years in experience 3 years with Vinmec Ms Mai Huong Noi Board member and Deputy CEO 23 years experience 8 years with Vingroup Ms Nguyen Thi Diu Deputy CEO 20 years experience Recently joined Vingroup Ms Tran Thi Khanh Van Chief Accountant 23 years in experience 7 years with Vinpearl Mr Nguyen Manh Duc Chief Accountant 14 years in 3 years with Vinmec Mr. Marc Villers Townsend is the Managing Director of CBRE Vietnam (Ho Chi Minh City) 2. Mr. Joseph Gagnon is a Managing Director from Warburg Pincus 3. Mr. Ling Chung Yee Roy is the Managing Director of RL Capital Management

25 E. Business Overview 25

26 Operational Properties Description Effective Ownership (1) Site Area (sqm) Start date of Construction/Operation GFA breakdown (m 2 ) Vincom Center Ba Trieu - Tower A&B Retail, in Hanoi Office: Tower A was sold to BIDV in 2006; Tower B was sold to Techcombank in Q1/ % 3, Nov 2004 Retail: 27,103; Parking: 7,089 Vincom Center Ba Trieu - Tower C Retail, residential, in Hanoi Residential: 208 high-end apartments have been sold in % 3, Aug 2009 Apartment: 29,646; Retail: 15,386; Parking: 7,253 Golden site Vincom Center Dong Khoi Retail, office and apartments on one of the 20 Golden Sites, in Ho Chi Minh City 95.64% 10,843 Jul Apr 2010 Apartment: 16,463; Retail: 50,784; Office: 78,463; Parking: 29,142 Vincom Center Long Bien Vincom Mega Mall Royal City Retail, in Hanoi Retail, amusement park and entertainment services, in Hanoi 95.64% 95.64% 13,150 N/A May Dec 2011 Jan 2010 July 2013 Retail: 38,060; Parking: 7,398 Retail and amusement park: 229,604; Parking: 208,209 Vincom Mega Mall Times City Retail, amusement park and entertainment services, in Hanoi 95.64% N/A Feb Dec 2013 Retail : 121,976; Parking: 106,844 Vinpearl Resort Nha Trang Vinpearl Land Vinpearl Luxury Nha Trang Description An international 5 star hotel in Vinpearl Nha Trang complex of hotel, resort, tourism, and recreation on Hon Tre Island. Hospitality and recreational complex built on an area consists of many modern and unique large-scale recreational facilities Effective Ownership (1) Site Area (sqm) Start date of Construction/Operation Components 99.90% 1,327,037 Jul Dec 2003 Hotel: 485 rooms Restaurant & bars; Meeting facilities and fitness center % 1,610,875 Nov Aug 2006 Provides a variety of indoor and outdoor games, a water park, an aquarium, a food village, a shopping street, 1,350 seat event hall and 5,056 seat amphitheater. A luxurious resort located on Hon Tre Island 99.90% 151,363 Apr May luxury hotel villas comprised of 18 Beach Front Villas, 20 Hill-top Suites, 15 Grand Hill-top Suites, 24 Pool Villas, 6 Pool-side Villas and 1 Presidential Suite. Vinpearl Golf Club - Nha Trang Vinpearl Golf Club - Nha Trang is an 18 hole, par 71 championship golf course, located on Hon Tre Island 99.90% 684,819 Nov May 2011 Golf course: 18 holes Vinpearl Luxury Da Nang Vinmec International Hospital Vinpearl Luxury Da Nang is situated on the most beautiful beachfront site on the famous Son Tra Dien Ngoc beach Description International General Hospital Start date of Construction/Operation: Feb 2011/07 Jan % 155,087 Nov Jul hotel rooms; 39 luxury villas Others: 2 restaurants, 4 bars, business center and meeting facilities. Effective Ownership (1) Facilities 86.23% International five-star hotel hospital at Times City, Hanoi. Total GFA of 77,459sqm 26 Vinschool 1. As of 30 June 2014 High quality schools in urban areas 1 st kindergarten school open in June 2013 at Vinhomes Riverside % Vinschool currently has 3 facilities in Hanoi: Vinschool Times City, Vinschool Vinhomes Riverside, Vinschool Royal City

27 F. Financial Overview - VAS 27

28 Debt Maturity As of 30 June 2014, Vingroup has USD 613 million cash and cash equivalents and short term investment which is adequate to cover the near term debt maturities. (in US$m) Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Corporate Bonds Convertible Bonds Convertible loan Long-Term Borrowings Short Term Borrowings Source: VAS Consolidated FS for 9M Source: 6M 2014 VAS Consolidated Financial Statement 1. There is a high possibility that bonds are converted to equity. Yield to maturity is 1.4% to 1.14%, lower than 5.5% coupon at time of issuance

29 Debt Mix Analysis Diversified Funding Sources (1) Debt Breakdown (1) Others 2.3% By Currency Bank loans 23.3% Domestic bond 42.1% USD 43.4% VND 56.6% By Interest Rate Convertible bond 19.4% International bond 12.9% Fixed 34.6% Total: VND32,767 Bn (US$1.54Bn) Floating 65.4% 29 Notes: Based on an exchange rate of US$1=VND21,300 (Apply only for 2014) 1. As of 30 June 2014

30 Income Statement Highlights Revenue 863 Gross Profit Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H1-14 EBITDA (1) Recurring income Sales of inventory properties Profit for the Year (2) Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H1-14 Note: (1) EBITDA excludes valuation gains / losses of investment property and investment property under construction. Note: (2) Includes profit after tax of discontinued operations. 30 Source: Audited VAS Consolidated Financial Statements for 2010, 2011, 2012, 2013 and 6M//2014 Note: CAGR from 2010 to 2013 Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

31 Revenue Performance Total Revenue Rental Sale of Inventory Properties ( H1-13 H1-14 Hospitality & Entertainment Services H1-13 H1-14 Hospital H1-13 H1-14 NA NA NA NA H1-13 H H1-13 H Source: Audited VAS Consolidated Financial Statements for 2010, 2011, 2012, 2013 and 6M//2014 Note: CAGR from 2010 to 2013 Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

32 Profitability Gross Profit and Margin Total Gross Profit Rental Sale of Inventory Properties % 24 65% 67% % Hospitality and Entertainment Service 52 70% 61% H1-13 H1-14 Gross Profit Margin 80% % % 41% 36% 29% H1-13 H1-14 Hospital H1-13 H % 47% 48% 34% H1-13 H1-14 Gross Profit Margin 29% 4 2 (4) (3) (53%) (21%) (63%) H1-13 H1-14 Gross Profit Margin 32 Source: Audited VAS Consolidated Financial Statements for 2010, 2011, 2012, 2013 and 6M//2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

33 Balance Sheet Highlights Total Cash and Short-Term Investments Total Assets ,557 3, ,228 1,667 2,621 Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Total Equity Cash and cash eq. ST investments Total Debt (1) and Net Debt (2) 1, , , , Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Source: Audited VAS Consolidated Financial Statements for 2010, 2011, 2012, 2013 and 6M/2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014) Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Total Debt Net Debt Note: (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..

34 Key Credit Metrics Recurring Income / Interest Expense (1) (x) 1.62x EBITDA / Interest Expense (1) (x) 3.93x 3.83x 1.04x 1.26x 2.53x 0.57x 0.55x 1.04x 1.58x Dec-10 Dec-11 Dec-12 Dec-13 H Note: (1) Interest expense includes capitalized interest. Dec-10 Dec-11 Dec-12 Dec-13 LTM June Note: (1) Interest expense includes capitalized interest. Debt (1) / EBITDA Net Debt (1) / Net Debt + Total Equity (x) (%) 5.60x 5.60x 60% 4.20x 3.60x 44% 45% 39% 3.00x 36% 2.60x 2.40x 1.96x 1.80x 1.20x 34 Dec-10 Dec-11 Dec-12 Dec-13 LTM Jun-14 Note: Debt / EBITDA Net Debt / EBITDA (1) Total debt is equal to interest-bearing loans and borrowings, plus financial liabilities designated as at fair value through profit or loss. Net debt is equal to total debt less cash and cash equivalents and short-term investments. Source: Audited VAS Consolidated Financial Statements for 2010, 2011, 2012, 2013 and 6M/2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014) Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Note: (1) Net Debt is equal to total debt less cash and cash equivalent and short term investment

35 G. Financial Overview - IFRS (1) 35

36 Debt Maturity As of June 2014, Vingroup has USD 605 million cash and cash equivalents and short term investment which is adequate to cover the near term debt maturities. (US$mn) Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Corporate Bonds Convertible Bonds Convertible loan Long-Term Borrowings Short Term Borrowings Source: VAS Consolidated FS for 9M Source: IFRS Consolidated Financial Statement for June There is a high possibility that bonds are converted to equity. Yield to maturity is 1.4% to 1.14%, lower than 5.5% coupon at time of issuance 2. Based on Exchange rate of US$1 = VND 21,300

37 Debt Mix Analysis Diversified Funding Sources (1) Debt Breakdown (1) Others 1.0% By Currency Bank loans 24.2% USD 40.8% Convertible loan 1.4% Domestic bond 44.0% By Interest Rate VND 59.2% Convertible bond 16.2% Fixed 31.8% International bond 13.2% Total: VND31,022 Bn (US$1.46Bn) Float 68.2% 37 Notes: Based on an exchange rate of US$1=VND21, As of 30 June 2014

38 Income Statement Highlights Revenue Gross Profit Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H1-14 EBITDA (1)(2) Recurring income Sales of inventory properties Profit for the Year (1)(2) Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H1-14 Dec-10 Dec-11 Dec-12 Dec-13 H1-13 H1-14 Note: (1) EBITDA excludes valuation gains / losses of investment property and investment property under construction. (2) Margins greater than 100% primarily due to share of profits / losses of associates and other operating income resulting from disposition of interest in associates / joint ventures and gain from disposal of investment properties and other assets. Note: (1) Margins greater than 100% primarily due to valuation gains / losses of investment property and investment property under construction. (2) Includes profit after tax of discontinued operations. 38 Source: IFRS Consolidated Financial Statements for 2010, 2011, 2012, M/2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

39 Revenue Performance Total Revenue Rental Sale of Inventory Properties ( H1-13 H H1-13 H1-14 Hospitality & Entertainment Services Hospital H1-13 H1-14 NA NA H1-13 H1-14 NA NA H1-13 H Source: IFRS Consolidated Financial Statements for 2010, 2011, 2012, M/2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

40 Profitability Gross Profit and Margin Total Gross Profit Rental Sale of Inventory Properties % 26 Hospitality and Entertainment Services Hospital 77% 35 79% 46 74% 62 80% 80% H1-13 H1-14 Gross Profit Margin % 48% 48% % 29% 19 36% 36% % 27 36% H1-13 H % % (4) (3) (21%) (3) H1-13 H H1-13 H1-14 Gross Profit Margin (63%) (54%) H1-13 H1-14 Gross Profit Margin 40 Source: IFRS Consolidated Financial Statements for 2010, 2011, 2012, 2013, 6M//2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

41 Balance Sheet Highlights Total Cash and Short-Term Investments Total Assets ,024 4, ,707 2,435 3,229 Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Cash and cash eq. ST investments Total Equity Total Debt (1) and Net Debt (2) 1,425 1,259 1, , Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Source: IFRS Consolidated Financial Statements for 2010, 2011, 2012, M/2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014) Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Total Debt Net Debt Note: (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..

42 Key Credit Metrics Recurring Income / Interest Expense (1) (x) EBITDA / Interest Expense (1) (x) 1.62x 4.37x 1.26x 3.69x 1.05x 2.85x 0.55x 0.54x 1.40x 1.98x Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Dec-10 Dec-11 Dec-12 Dec-13 LTM June-14 Note: (1) Interest expense includes capitalized interest. Note: (1) Interest expense includes capitalized interest. Debt (1) / EBITDA Net Debt (1) / Net Debt + Total Equity (x) (%) 4.04x 4.33x 49% 3.15x 1.90x 2.21x 3.22x 2.07x 1.06x 2.79x 1.66x 30% 25% 37% 38% Dec-10 Dec-11 Dec-12 Dec-13 LTM June -14 Dec-10 Dec-11 Dec-12 Dec-13 H1-14 Note: Debt / EBITDA Net Debt / EBITDA (1) Total debt is equal to interest-bearing loans and borrowings, plus financial liabilities designated as at fair value through profit or loss. Net debt is equal to total debt less cash and cash equivalents and short-term investments. Note: (1) Note: Net Debt is equal to total debt less cash and cash equivalent and short term investment 42 Source: IFRS Consolidated Financial Statements for 2010, 2011, 2012, M/2014 Note: Based on exchange rate of US$1 = VND21,300 (Apply only for 2014)

43 H. Trading Performance 43

44 Share Price (VND) Share Price Performance over the Last 12 Months 70,000 60,000 50,000 40,000 Sep-13 Oct-13 Dec-13 Jan-14 Mar-14 Apr-14 Jun-14 Jul Aug-14 Volume (m) Vingroup Share Volume Vingroup Share Price VN Index rebased Price VND58,500 as of 31 Aug Day 20 Day 30 Day 1 mth 3 mth 6 mth 12 mth 24 mth 36 mth 48 mth 60 mth Market cap of VND80,870.4bn Market cap of US$3,908.1m Average daily volume ('000) Average daily trading value (VND'000) Average daily trading value (US$'000) Total volume traded (m) 20,0 41,2 49,9 42,1 65,3 112,9 159,7 315,7 408,0 514,4 636,7 % of total shares outstanding 1,4% 3,0% 3,6% 3,0% 4,7% 8,2% 11,5% 22,8% 29,5% 37,2% 46,1% % of free float 3,1% 6,3% 7,7% 6,5% 10,0% 17,4% 24,6% 48,6% 62,8% 79,2% 98,0% Share price Highest traded price (VND) Lowest traded price (VND) Performance over the period 11,5% 11,5% 23,4% 15,2% 27,0% 18,4% 39,2% 63,5% 19,5% 133,3% 313,6% Index outperformance over the period (1) 6,3% 5,2% 17,5% 8,0% 13,7% 6,7% 4,5% 2,7% (26,8%) 94,5% 297,3% Average closing price (VND) Volume weighted average price (VND) Market cap as of 31 Aug 2014 (US$ m) 3.908,1 Total number of shares (m) 1.382,4 44 Source: Bloomberg as of 31 August Performance against the VN Index.

45 Disclaimer 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. 45

46 Investor Relations Department Vingroup JSC Vingroup Office Tower, Vinhomes Riverside Eco-Urban Area Long Bien District, Hanoi, Vietnam Tel: +84 (4) ext. 926 Fax: +84 (4) Website: