Vincom Retail Joint Stock Company 1Q2020 Performance · Vincom Center Pham Ngoc Thach reopened on 6...
Transcript of Vincom Retail Joint Stock Company 1Q2020 Performance · Vincom Center Pham Ngoc Thach reopened on 6...
28 April 2020
Vincom Retail Joint Stock Company
1Q2020 Performance
Confidential
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 Vincom Retail
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.
Disclaimer
2
Confidential Confidential
1. Key Highlights
Confidential
Financial Performance – 1Q2020
4
Revenue from Leasing
VND1,449 billion 9.4%YoY
Note: Based on VAS Consolidated Financial Statements for 1Q2020
(1) NOI for leasing investment properties and rendering of related services is calculated by taking total income from leasing activities and from other property-related services less any property-related operating expenses
which include land lease costs but exclude management expenses allocated from parent company.
Gross Profit
VND759 billion 21.9%YoY
EBITDA
VND1,068 billion 11.1%YoY
Leasing NOI(1)
VND999 billion 13.8%YoY
Confidential
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Operational And Marketing Highlights – 1Q2020
Selected Anchor tenants
(Expected opening June 2020)
2 marketing
campaigns
Vincom Center Pham Ngoc Thach reopened on
6 March 2020Occupancy 98%
Lunar New Year Campaign 2020
International Women's Day Celebration Campaign
1
2
8 million footfalls
100 million media reach
Confidential
VCC18%
VMM24%
VCP53%
VC+5%
Prime Urban and High Growth Areas in Key Cities Unique Multi-Format Retail Model
4 retail
formatsProven and scalable
retail development
platform
Vincom CenterLocation: City-center, CBD
Retail GFA: 40,000 – 60,000 sqm
No. of Malls: 7
Total GFA: 280,026 sqm
Vincom Mega MallLocation: In integrated, mixed-use projects
Retail GFA: 60,000 – 150,000+ sqm
No. of Malls: 3
Total GFA: 388,082 sqm
Vincom PlazaLocation: High-density, CDB of cities
ex. Hanoi and HCMC
Retail GFA: 10,000 – 40,000 sqm
No. of Malls: 54
Total GFA: 857,517 sqm
Vincom+Location: Medium-density, non-CBD
Retail GFA: 3,000 – 5,000 sqm
No. of Malls: 15
Total GFA: 71,936 sqm
(Segmentation by GFA)
Hanoi
10 Vincom Malls
5 Vincom Centers
2 Vincom Mega Malls
3 Vincom Plazas
Ho Chi Minh City
13 Vincom Malls
2 Vincom Center
1 Vincom Mega Mall
7 Vincom Plazas
3 Vincom+
North Vietnam (ex. Hanoi)
19 Vincom Malls
16 Vincom Plazas
3 Vincom+
Central Vietnam
20 Vincom Malls
13 Vincom Plazas
7 Vincom+
South Vietnam (ex. HCMC)
17 Vincom Malls
15 Vincom Plazas
2 Vincom+
Key Cities
79Operational
Malls
43Cities/
Provinces
~1.6mmRetail GFA
(sqm)
Note: As at 31 March 2020
Solidified Position As Dominant Retail Platform In Vietnam
Distinguished retail formats and focused on wide range of lifestyle oriented consumers
6
158+Operational
MallsBy 2026
~5.0mmRetail GFA
(sqm)
Confidential
● VinPro closure has impact of c.5.3% on blended OCC
- VCC not affected while VMM, VCP and VC+ saw
decrease in occupancy rate
● There was no material tenant contract liquidation in 1Q2020
Key Operational Metrics
7
(‘000 sqm) 1Q2019 1Q2020 Change (%)
Vincom Center 246 280 13.8
Vincom Mega
Mall(1) 395 388 1.8
Vincom Plaza 751 858 14.0
Vincom+ 63 72 15.0
Total 1,455 1,598 9.7
1Q2019 1Q2020 Change (bps)
Vincom Center 90.9% 92.1% 1.2
Vincom Mega Mall 90.5% 87.6% 2.9
Vincom Plaza 88.5% 82.2% 6.3
Vincom+ 84.5% 76.5% 8.0
Total 89.2% 84.9% 4.3
Note: As at 31 March 2020
(1) Due to re-categorizing some shop-offices from Investment Property to Inventory for sales
Retail GFA Average Occupancy
Confidential Confidential
2. Operational Update
Confidential
Timeline and Number of cases
Source: chinhphu.vn, CBRE Research, 1Q 2020
Suspended entry for
all foreign nationals
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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
8 Vincom malls in Low
risk provinces resumed
on April 18
Most Vincom
malls reopened
on April 23, and
all reopened on
April 24
Suspended all flights between
Korea and Vietnam
Hanoi & HCMC shut down
bars, karaoke
Suspended all visas
and entry for
travelers from 27
European countries
HCMC closed
restaurants, gyms, spas
Strict nationwide
social distancing for
15 days
Patient
N17
Phase 1: Beginning
Feb 5 – Mar 5
● 16 patients and all were
cured from Covid-19
● No new confirmed cases for
21 consecutive days
● On Mar 6, Patient 17 started
the second phase of Covid-
19 breakout
● Footfall: decreased 30%
compared to the same
period 2019
Phase 2: Breakout
Mar 5 – Mar 27
● # of new cases increased to
200
● Most were imported from
overseas
● Footfall: decreased 54%
compared to the same period
2019
● Reduced operating hours:
11am – 9pm
Phase 3: Social Distancing
Mar 28 – Apr 22
● Apr 1 – 15: mandatory social
distancing nationwide;
temporary closure of all 79
malls (non-essential stores
were closed). Essential-only
stores remained opened:
(VinMart supermarkets,
Medicare, and banks)
● Social distancing was extended
to Apr 22 for 10+ cities
● April 23: social distancing
order was lifted
Status of operations
● As of April 24, all 79 malls nationwide reopened
● Reduced operating hours:
Weekday: 11am – 9pm (Previously 9.30am – 10pm)
Weekend: 10am – 9pm (Previously 9.30am – 10pm)
• As the situation is more stabilized, Vincom Retail will
resume normal operating hours.
• Footfall: during April 23-26 right after reopening, average
FF is ~50% compared to the same period last year.
Updates on Impact of Covid-19
Confirmed Covid-19 cases in Vietnam9
Confidential
10
Customers
Tenants
Employees
Shareholders
Ensure a safe shopping environment:
● Disinfect stores and entire mall every week, disinfect all contact
surfaces in the mall every 2 hours. Provide hand sanitizer in all stores.
● Thermal screening of 100% staff and customers. 100% staff and
customers wearing masks in the mall
● By April 15: Total support package of VND 600b (USD 25.5m)
● Connect tenants with online service providers and online platforms:
~48,000 vouchers issued by tenants via VinID app. Supported ~170
tenants with online sale. cooperated with OneID, Grabfood, Now
● Reallocate workforces, adjust shifts
● Provide employees on leave with partial pay (70% monthly payment)
● Deploy work-from-home protocols, enforce effective work program to
reduce OT and excessive expenditures
● Preserve cash to support operations during the impacted period
● Implement maximum cost saving measures at all organization levels
● Revisit investment plan to ensure financial viability in near-term
Public engagement
Together WIN COV with
Vincom
Creative video campaign on social media
to spread positivity and inspiration
3 million media reach
Our initiatives during Covid-19
Confidential
On 24 January 2020, Vietnam activated the Public Health Emergency Operations Centre to coordinate all information and
direction to control the outbreak, right after two Covid-19 infection cases were confirmed on 23 January 2020 and much earlier
than WHO’s recommendation
Since then, the Government of Vietnam has ordered strict and vigorous application of infection prevention and control measures
since the first confirmed cases
Vietnam continues to ensure that it is well prepared for a potential increase in demand for healthcare facilities by enhancing
surveillance of its health care facilities and community
In addition, efforts to communicate the risks information on measures for the prevention and control of Covid-19 to the healthcare
and public communities have been greatly strengthened
The Government of Vietnam also continues to ensure good and transparent public communication to retain public’s trust
As of 28 April 2020, the Covid-19 situation has been relatively under control with 270 confirmed cases, 225 recovered cases and
0 death. It is also the 10th consecutive day that Vietnam does not have any new confirmed cases except for 2 new cases from
overseas. Vietnam is one of the three countries in the world that have more than 200 confirmed cases without any death so far.
11Source: WHO, MOH, public information.
1
2
3
4
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6
Early, decisive and effective actions by the Government of Vietnam is expected to help Vietnam resume its normal operations
sooner than other countries
Effective Management of the Covid-19 Situation in Vietnam
Confidential
12 Source: FactSet, EIU, public information.
(Indexed chart)
1.6 1.9
6.8
9.9
2016 2017 2018 2019
(Trade surplus, US$ bn)
50.3
48.4
45.9
42.2
2016 2017 2018 2019
(Public debt as % of GDP, %)
36.5
49.155.5
72.9
2016 2017 2018 2019
(Foreign exchange reserves, US$ bn)
Vietnam enjoys strong and stable macroeconomic fundamentals which will not only give it considerable flexibility to absorb any
external or fiscal shocks due to Covid-19 impact, but also enable the Government to provide necessary concession or subsidy
to help the companies and its people to withstand the present situation
Vietnam’s exchange rate has been among the most stable in the region Continued strong trade surpluses
Stable Vietnam Macroeconomic Developments
Steady growth in foreign exchange reserves Improving fiscal position over the years with falling % of public debt
80
90
100
110
Apr-19 Jun-19 Jul-19 Sep-19 Oct-19 Dec-19 Jan-20 Mar-20 Apr-20
Vietnam Dong per U.S. Dollar Malaysia Ringgit per U.S. DollarThailand Baht per U.S. Dollar Singapore dollar per U.S. DollarIndonesia Rupiah per U.S. Dollar Philippines Peso per U.S. Dollar
(2.29%)(0.95%)
(5.21%)(4.63%)
(8.99%)
1.69%
Confidential
13
Potential benefits from government’s supporting policies
Tax Interest Rate ElectricityTAX
April 8, 2020
Government issued Decree 41/2020 / ND-CP
on extension of payment of Value-Added
Tax (VAT), Corporate Income Tax (CIT),
Personal Income Tax and land rental:
1. Deferred tax payment of CIT and VAT for
the months of April-July and the following
5 months.
2. Deferred land rental payment in the first
period of 2020 (due on May 31, 2020) for
5 months.
March 13, 2020
The State Bank of Vietnam issued Circular
01/2020-TT-NHNN on exemption and
reduction of interest rates to support
businesses affected by Covid-19 pandemic.
1. VCR now has outstanding debt of VND 2.6
trillion (USD 110.6m) with interest rate of
9.8% p.a.
2. VCR has sent official request letter to the
bank to sign up for 1.5% pa reduction in
interest rate
.
April 12, 2020
The government announced its agreement
with the Ministry of Industry and Trade's
proposal to reduce electricity price for the
period of April - June
Estimated increase in cashflow of
VND 483b (USD 20.5m) during the
4 months April-July of deferred tax
payment and land rental payment
Expected at least 0.5% pa
reduction in interest rate.
Saving of VND 6.5b (USD 277k)
interest expenses in minimum
Estimated saving of VND 10.8b
(USD 460k) electricity cost
Confidential Confidential
3. 2020 Strategy Plan
Confidential
0%
4%
8%
12%
16%
20%
0
30
60
90
120
150
2019 2020FBefore
Covid-19
2020FCase 1
2020FCase 2
Rent CBD Rent Non CBD
Vacancy Rate - CBD Vacancy Rate - Non CBD
0%
10%
20%
20
25
30
35
2019 2020FBefore Covid-
19
2020FCase 1
2020FCase 2
Rental rate Occupancy rate
6.7%6.2%
3.0%
5.1%
1.4%
4.4%5.0%
2.0%
-1.0%
3.8%
-1.2%-2.0%
Vietnam Philippines Thailand Indonesia Singapore Malaysia
Pre Covid-19 Post Covid-19
15
2020 Market Outlook
Key retail trends
2020 GDP growth forecast Hanoi retail and vacancy forecast HCMC rental and vacancy forecast
● Brick and mortar remains
the primary way to
reach consumer
● Retailers will continue to
invest in physical stores
● Several new overseas
brands are expected to
enter Vietnam in 2020
● Entertainment and
experienced based
retailers are expected to
be a stronger demand
in 2020
● Malls are seen to
incorporate features
such as virtual
reality zones, smart
pick-up, experienced
based restaurants
● Live streaming is an
increasingly popular
strategy to market
products
● Retailers are required to
make significant
investments in technology
and logistics facilities to
improve fulfilment
capacity
● This segment of
population drives the
increasing spending in
entertainment, fashion
and F&B
● This trend is expected
to continue in the
coming years
● Building management are
expected to continue to
ensure high standard of
cleanliness post outbreak
● Features like temperature
check may become
standard procedure
during the flu season
● Retailers are advised to
invest in customer
analytics tools to better
understand customer
behaviour and tailor
service offerings
Brick and
mortal retail
remains upbeat1
Retailers venture
into omni-channel
strategy2
Shopping malls
continue to evolve
into activity centres3
Young population
to drive lifestyle
retail expansion4
Customisation
set to emerge as
key focus5
Stronger emphasis
on hygiene and
sanitation6
Note: Rental rate recorded on ground & first floor, exclusive of VAT and service charge
Case 1: COVID-19 contained by June 2020
Case 2: COVID-19 contained by September 2020
Source: CBRE Research, Q1 2020
COVID-19 impact
Rental rate (US$/sqm)/month Vacancy rate(%)Rental rate (US$/sqm)/month Vacancy rate(%)
Vietnam economy remains resilient amidst Covid-19 outbreak and projected to be the least impacted in the region
COVID-19 impact
Confidential 16
2Q 2020 Plan
Tenants review and lease plan
● Engage in tenant discussion regarding
difficulties after resuming businesses in
order to offer appropriate policies
● Continue lease plan for 3 projects
including Vincom Mega Mall Ocean
Park.
Large stimulus and promotional
campaign post-Covid-19
● Launch stimulus and promotional
campaign “Victory presents –
Proudly Vietnam” (May 2020)
● Launch Summer Campaign (June
2020) and Vietnam Red Sales
Carnival 2020 (July 2020)
Upgrade IT infrastructure
● CRM: Management of centralized
database and leasing activities,
Management of operational activities
● FM: Assets management, Maintenance
and Renovation, Supplies
management and Mobile App,
Management of warranty information
Tenants Mix
Chain tenants commit to expand in
Vincom malls in 1Q2020New tenants
Chain tenants in negotiation for
network expansion
ACFC+3 +1+1
+3+3 +3 +5
+5 +2 +4
Confidential
2020
2026
17
2020 Plan and Development Roadmap Until 2026
2017
(IPO)2019 2020 … 2026
2017-20
CAGR
2020-26
CAGR
# of malls 40 79 82 … 158 27% 12%
GFA
(‘000
sqm)
1,120 1,600 1,770 … 5,000 17% 19%
Cities/
provinces
covered
24
(38%)
43
(68%)
43
(68%)…
63
(100%)
Target mall network
Strategy
In light of the current pandemic, we will delay the launch of 7 out of 10 malls originally scheduled to open in 2020 to 2021
For-sale business is expected to quickly pick up due to pent-up demand after Covid-19
Vincom Retail has identified a strong pipeline to follow nationwide expansion strategy, anchored around marque mega mall projects
1. Nationwide expansion strategy to reach 158+ malls, representing 5m sqm GFA and cover all of 63 cities and provinces by 2026
2. Solid pipeline of 79+ projects, all of which have been identified and paperwork are under way
3. Portfolio expansion anchored around 18 mega malls located in Hanoi, HCMC and select top tiers cities, and Vincom plazas in CBD area of 2nd tier cities
4. Selected upgrades (from VC+ to VCP and VCP to VCC) when supported by local market conditions
5. Opportunistic M&A strategy to complement organic development by securing attractive locations in top-tier cities
VCC10%
VMM51%
VCP37%
VC+2%
Expected format breakdown by 2026
Total GFA
(sqm):
5.0 mm
Confidential
Liquidity Position is Healthy, Management is Focused On Preserving Cash
18
Based on VAS Audited Consolidated Financial Statements for respective years and VAS Consolidated Financial Statements for 1Q2020
Note: (1) i. EBITDA is accumulated EBITDA in 12 months up to the reporting date; ii. Interest expense is accumulated interest expense in 12 months up to the reporting date; iii. Net Debt =Total Debt – Total Cash, Cash equivalents
&ST investment where ST investment includes termed deposits under VAS
Healthy Credit Metrics(1)
● Credit metrics remain healthy, reflecting the
company's low leverage and stable earnings
● VRE is fully compliant with outstanding borrowings
which often contains standard customary covenants.
No covenants related to EBITDA
0.52x
0.11x
0.54x
Debt/EBITDA Net Debt/EBITDA
31-Dec-19 31-Mar-20
18.0x 17.0x
EBITDA/Interest Expense
18
1. Covenants • Local loans and bonds do not carry any covenants linked to EBITDA
2. Cost Initiatives ● Reduce non-essential expenses such as Advertising & Promotion and variable expenses such as utility costs
● Reduce operating hours of retail malls nationwide
● Rotate shifts to utilize human resources
● Apply for deferral in VAT, CIT, annual land fee payments, and lower interest rate from bank as a part of the government’s support on
Covid-19 impact
3. Capex • Defer new mall construction and mall renovation
• Delay non-essential maintenance and renovation
• Delay some non-essential digitalization/transformation phases that do not affect operations
-0.06x
Confidential Confidential
4. Financial and Capital
Management Update
Confidential
Figures in VND billion 1Q 2019 1Q 2020 Change (%) Commentary
Leasing of Investment
Properties and Rendering of
Related Services1,599 1,449 9.4
In 1Q2020 VRE issued part of the supporting package of
VND300 billion (USD12.7m) for tenants in our retail malls
nationwide who are impacted by Covid-19.
Sale of Inventory Properties 601 201 66.6In 1Q2019, VRE delivered units in a big project Shophouse
Ca Mau.
Other revenue 83 36 57.3
Total Revenue 2,284 1,686 26.2
Gross Profit(1) 972 759 21.9 Decreased in accordance with decreased in revenue
Operating Profit / (Loss) 771 575 25.4
Profit / (Loss) before Tax 778 619 20.4
Profit / (Loss) after Tax for
the Period611 492 19.5
Profit / (Loss) after Tax
and Minority Interest612 492 19.6
Financial Performance In 1Q 2020 vs 1Q 2019
20
Note: VAS Consolidated Financial Statements for 1Q2020
(1) Gross profit already subtracted D&A relating to investment properties under VAS.
Confidential
1,905
2,4042,851
612 492
2017 2018 2019 1Q2019 1Q2020
3,089
3,829
4,955
1,159 999
2017 2018 2019 1Q.2019 1Q.2020
21
Note: Based on VAS Audited Consolidated Financial Statements for respective years and VAS Consolidated Financial Statements for 1Q2020
(1) Depreciation and amortization relating to investment properties is below the graph and should be added back (to Gross Profit) under IFRS. Since 2018, “Other” segment includes results from management of Da Nang condotels
which was incurring loss as the property was still ramping up after launch in May 2018.
(2) NOI for leasing investment properties and rendering of related services is calculated by taking total income from leasing activities and from other property-related services less any property-related operating expenses which
include land lease costs but exclude management expenses allocated from parent company.
VNDbn
Total Revenue Gross Profit(1)
VNDbn
Financial Performance
4,4555,506
7,017
1,599 1,449
951
3,4332,027
601 201
112
185 215
8336
5,518
9,124 9,259
2,284 1,686
2017 2018 2019 1Q2019 1Q2020
Leasing of Investment Properties Sale of Inventory Properties Other revenue
2,342 2,882
3,752
870 668
411
806
735
140 135
48
(47)
(84)
(38)(44)
2,801
3,641
4,404
972 759
2017 2018 2019 1Q2019 1Q2020
Leasing of Investment Properties Sale of Inventory Properties Other revenue
50.8% 39.9% 47.6% 42.6% 45.0%
Gross Profit Margin (%)
Leasing Net Operating Income (NOI)(2) Profit After Tax and Minority Interest
VNDbn VNDbn
Depreciation & amortization of investment properties (VNDbn)
829 1,042 1,331 320 339
Leasing NOI Margin (%)
69.3% 69.5% 70.6% 72.5% 69.0%
Confidential
22
VNDbn
Total Assets Total Borrowings, Cash and Cash Equivalents
Balance Sheet
Total Equity (Net Debt / (Net Cash))(4) / Equity
VNDbn
VNDbn VNDbn
21,481 27,773 28,718 28,677
16,652 10,911 7,121 8,238
38,133 38,684 35,839 36,916
31-Dec-17 31-Dec-18 31-Dec-19 31-Mar-20
Investment Properties and Investment Properties Under Construction Other Assets
5,974
2,780 2,785 2,786
4,095
3,133
2,177
3,093
31-Dec-17 31-Dec-18 31-Dec-19 31-Mar-20
Total Borrowings Cash and Cash Equivalents
26,094 28,509
26,954 27,446
31-Dec-17 31-Dec-18 31-Dec-19 31-Mar-20
7.2%
-1.2%
2.3%
-1.1%
31-Dec-17 31-Dec-18 31-Dec-19 31-Mar-20
(3)
(3)
(2)
(2) (2)
(1)
Note: Based on VAS Audited Consolidated Financial Statements for respective years and VAS Consolidated Financial Statements for 1Q2020
(1) Investment Properties and Investment Properties Under Construction (IP/IPUC) are valued at development cost minus depreciation and amortization and are not fair valued
(2) Decline in other assets, cash and cash equivalents, total equity as well as increase in gearing ratio as of 31 December 2019 was due to the payment of cash dividends of VND 2,445bn declared in April 19 and buy back 56.5
mil treasury shares completed in December 2019
(3) Cash and Cash Equivalents include loan receivables
(4) Net Debt / (Cash) = (Short-term Borrowings + Long-term Borrowings) – (Cash & Cash Equivalents + ST Investments + Loan receivables).
Confidential Confidential
Appendix
Confidential
Bridging VAS to IFRS
Note: Based on VAS Consolidated Financial Statements for 1Q2020 and conversion to IFRS by management, excluding impact from Investment Property and Investment Property Under Construction (IP/IPUC) revaluation
gain/loss
Unit: VND Billion
VAS
1Q2020
Adj. IFRS
1Q2020
Commentary on Adjustments
Leasing revenue and other related
services1,449 34 1,483
Realized unearned revenue of deposit from customer in relation to
amortization of deposit
Sale of inventory properties 201 201
Other revenue 36 36
Total revenue 1,686 34 1,720
Cost of leasing activities and other related
services(781) 361 (421) Mostly depreciation of malls included in VAS; excluded under IFRS
Cost of inventory properties sold (66) (66)
Others (79) (79)
Cost of goods & services (927) 361 (566)
Gross profit 759 395 1,153
Selling expenses (61) (61)
General and administrative expenses (90) 18 (72) Amortization of Goodwill included in VAS; excluded under IFRS
Other income 45 45
Other expense (1) (1)
Finance expense (79) (142) (222) Amortization of deposit from customer
Finance income 47 127 174 Amortisation of deposit under BCC and deposit from customer
Profit before tax 619 398 1,018
Tax expense (127) (2) (129)
Profit after tax 492 396 889
24
Confidential
25
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