ECONOMIC OVERVIEW2018/H1

Value YoY Growth Rate

Evolving

SUPPLY

Unchanged QoQ

5% YoYmill ion m2

• No new project

Retail

PERFORMANCE

Dept. Store

US$ 65/m 2/ mth

(1%) QoQ 7% YoY

Shopping Centre

US$ 47 /m 2/ mth

Stable QoQ & (6%) YoY

Podium

US$ 39 /m 2/ mth

4% QoQ & 5% YoY

Gross rent

1% QoQ & (4%) YoY

/m2/mthUS$5092%

Stable QoQ

(2)ppts YoY

Occupancy

OUTLOOK

20172019

2020 20212018

2H/2018

~234,000 m2

~564,000 m2Till 2020

•Rent increased slightlyo Renew contracts/ New tenants

o Higher asking rent in the CBD

•Stable occupancyo No new supply

o Flexible short-term tenants

• 1H/’18 Retail real growth: 10% YoY

• Upscale F&B bloomed

o Premium beer growth : 15% YoY

o Restaurant chains rapidly opening

• Cinema popular

o Revenue growth 20% YoY

o Ticket sales increased 16% YoY

Retail

0

10

20

30

40

50

60

0

300

600

900

1,200

1,500

2013 2014 2015 2016 2017 1H/2018T

ho

usa

nd

m2

US

$/m

2/mth

Occupied Vacant Gross rent

Source: Department of Culture, Sports and Tourism; Vietnam Beverage Association

OUTLOOKOutlook

0

3

6

9

12

15

Personal vehicles,

excl. car

Household

equipment

Foods Garment F&B service

1H/ 2017 growth 1H/ 2018 growth

High growth in retail sales, catch up F&B

High F&B category

Future supply and expected rent

% YoY sales growth

Source: PSO, Q2/2018

Source: Savills Research & Consultancy

% F&B

0

10,000

20,000

30,000

40,000

50,000

Dist. 10 Dist. 4 Binh

Thanh

Dist. 2 Dist. 5 Dist. 7 Tan

Binh

Nha Be Dist. 6 Dist. 8 Tan

Phu

Secondary Suburban

Shopping centre Retail podiumm2

Source: Savills Research & ConsultancyRent change

Strong supply

in 2H/2018 will

impact to the

average rent

Current Projects

Future Projects

31% 31% 30%

49%

26%

0%

10%

20%

30%

40%

50%

60%

E-COMMERCE

OUTLOOK

Source: High Vietnamese quality product asssociation, 2018

US$2 billion

In Q1/ 2018

Opportunity for strong retail growth E-commerce – rapid growthRising share of total population with daily consumption of US$15

or more (in 2011 PPP terms)

Initally cooperate with domestic firms

No market place for locals yet

Vietnamese – 7th most optimistic globally

Source: Nielsen Global

Source: Viet nam GSO, Worldbank

E-commerce in totalretail sales:

Q1/2017

0.9%Q1/2018

2.7%

49% 41%Mostly spending

disposable income for:

New clothes Outdoor entertainment

Spending more for:42% 40%

Upgrading households New hi-tech devices

How much Redclawcan 1 girl eat…?

The HaiDiLao Hot Pot Experience

Children can play in colorful play rooms

while their mothers and sisters can put

their names on the list to get a free

manicure from professional nail stylists

Computer kiosks can be used to surf

the web; some locations even offer

shoe shines and massages

This HaiDiLao signature is not just a dish,

it’s a show.

The “noodle masters”train for four to six months before they’re

allowed to perform – and what a

performance!

you’ll might be offered warm towels to wash your hands, a plastic bag to protect your

cell phone, or a soft cloth to wipe your glasses if they steam up from the hot pot

Orders are placed on an iPad; almost all dishes are available in half portions, if so desired.

Vietnam Retail

Restaurants under30 brands

Source: https://e.vnexpress.net/news/business/two-ventures-at-the-top-of-the-food-chain-in-vietnam-3767803.html

Got any Redclaw…?

>300

Golden Gate Revenue2010-2018

4,415

223

Convenience store density (,000/store)

The Disconnect...

Sustainable retail development. When revenue exceeds gross occupancy cost. (GOC).ECONOMIC RENT:

Rent to sales Ratio

>30% likely to lead

to failure

<20% for F&B, with 8%

to 12% targeted

~12% to 15%for fashion retailers

MARKET

PIONEER

GEO-TARGETING

MARKETING

PREMIUM

DATABASE

OFFER 1st RETAIL

MEMBERSHIP

PROGRAM

THE FIRST EVER MOBILE-BASED

RETAIL MEMBERSHIP PROGRAM

5

6

7

8

4

2

7

8

5

4

6

5

4

3

5

1

1

2

5

7

7

6

5

1

2

1

2

3

8

7

7

5

1

1

0

1

5

6

7

8

6

1

0

1

2

,Views

4

6

5

4

6

5

1

1

2

5

7

7

6

1

1

2

1

2

3

8

7

7

5

1

1

0

1

5

6

7

8

5

1

0

1

2

,Response

4

6

5

4

1

5

1

1

2

5

7

7

6

3

1

2

1

2

3

8

7

7

2

1

1

0

1

5

6

7

8

0

1

0

1

2

,

22% redemption rate (traditional paper voucher is average 1%)

Conversion

1k

2k

3k

4k

5k

6k

7k

8k

9k

10k

11k

F&B Jewelry/

Watches

Entertainment Children’s

Fashion

Women’s

Fashion

Crescent

Mall

Furniture &

Homeware

Shoes & Bags Toys Accessories

App Engagement (Jan – Jun 2018)

Top Categories by Views

Noticeable upcoming shopping malls in CBD

SPECIFICATIONS

Location87 Cong Quynh, Nguyen

Cu Trinh, Dist.1, HCMC

Land Area 8,320 sqm

Description

4 basements for parking

8 storeys of retail

40 storeys of high-end

residential

Retail GFA 33,300 sqm

Retail NLA 23,330 sqm

Design consultant Benoy

Expected opening date Q2 2020

Alpha Mall

Endless Excitement

H O W

A L P H A M A L LDIFFERENTIATE

FROM

THE OTHERS

Golden location in the centre of HCMC

Excellent tenant mix

Iconic landmark with innovative design

Experienced Mall management

Cutting-Edge Technology

Noticeable upcoming shopping malls

SPECIFICATIONS

Location101 Ton Dat Tien, Tan Phu,

District 7

Land Area 8,589 sqm

Description

3 basements for parking

6 storeys of retail

24 storeys of office

Retail GFA 61,200 sqm

Retail NLA 52,300 sqm

Expected opening date Nov 2019

Crescent Mall

A fresh shopping Experience

H O W C R E S C E N T M A L LDIFFERENTIATE FROM

THE OTHERS

Tech-savvy shopping mall

True shopping destination, excellent tenant mix

Prime location in expat area – District 7

Mall management by Savills

Average monthly traffic: 600,000 people

Noticeable upcoming shopping malls

SPECIFICATIONS

Location 182 Le Dai Hanh, Dist 11

Land Area 11,067sqm

Description

2 basements for parking

3 storeys of retail including

Basement 1

300 apartments and

30,000sqm of office

Retail GFA 15,000 sqm

Retail NLA 10,000sqm

Expected opening date 05/2019

Flemington

A repositioning case study

H O W F L E M I N G T O NDIFFERENTIATE FROM

THE OTHERS

Strong retail traffic, leading to

superior sales for retailers

The intersection among Dist 10, Dist 5,

Dist 6 and Tan Phu

Prime location in crowded existing

residential area

Consulted by Savills Vietnam

Complete repositioning, with

rebranding, new tenancy mix and

capex