Vinhomes JSC 1Q2019 Financial Results...Quality land bank to fortify Vinhomes' leadership in...

Vinhomes JSC1Q20 Financial Results 28 April 2020

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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


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

20

25

0

50

100

150

200

250

300

1-M

ar

2-M

ar

3-M

ar

4-M

ar

5-M

ar

6-M

ar

7-M

ar

8-M

ar

9-M

ar

10-M

ar

11-M

ar

12-M

ar

13-M

ar

14-M

ar

15-M

ar

16-M

ar

17-M

ar

18-M

ar

19-M

ar

20-M

ar

21-M

ar

22-M

ar

23-M

ar

24-M

ar

25-M

ar

26-M

ar

27-M

ar

28-M

ar

29-M

ar

30-M

ar

31-M

ar

1-A

pr

2-A

pr

3-A

pr

4-A

pr

5-A

pr

6-A

pr

7-A

pr

8-A

pr

9-A

pr

10-A

pr

11-A

pr

12-A

pr

13-A

pr

14-A

pr

15-A

pr

16-A

pr

17-A

pr

18-A

pr

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pr

20-A

pr

21-A

pr

22-A

pr

23-A

pr

24-A

pr

25-A

pr

26-A

pr

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


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


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


1Q Market Summary – Condominium Market in HCMC


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


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


15% y-o-y

2% q-o-q

6% y-o-y

0% q-o-q

14


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


45,500

28,200


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


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


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


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

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