8 May 2018
Vincom Retail Joint Stock Company
1Q2018 Financial Results
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
1
1. Key Highlights
Performance Overview – 1Q2018
Revenue from
Leasing(1)
VND1,282 billion
18.9% YoY
Gross Profit(2)
VND801 billion
7.4% YoY
3
Note: Based on VAS Unaudited Consolidated Financial Statements for 1Q2017 and 1Q2018
(1) Leasing revenue includes other revenue; (2) Gross profit includes depreciation and amortization relating to investment properties that amounted to VND 179.3bn and VND 254.3bn in 1Q17 and 1Q18, respectively
(3) NOI for leasing investment properties and rendering of related services, being calculated based on management report by taking the sum of gross rental income and other property-related income less any property-
related operating expenses including period land lease costs and amortization of prepaid land lease costs but excluding holding company expense allocations
EBITDA
VND1,090 billion
16.1% YoY
Leasing NOI(3)
VND905 billion
23.0% YoY
Continued Expansion of Nationwide Presence
Portfolio in Prime Urban and Growth Cities Unique Multi-Format Retail Model
VC14%
VMM34%
VP48%
VC+4%
46 malls
across 24
cities /
provinces
4 retail
formats for
specific
areas
Proven and
scalable retail
development
platform
Vincom CenterNo. of Malls: 4
GFA: 165,876 sqm
Vincom Mega MallNo. of Malls: 3
GFA: 395,148 sqm
Vincom PlazaNo. of Malls: 30
GFA: 568,170 sqm
Vincom+No. of Malls: 9
GFA: 50,199 sqm
(Segmentation by GFA)
Hanoi
7 Vincom Malls
3 Vincom Centers
2 Vincom Mega Malls
2 Vincom Plazas
Ho Chi Minh City
11 Vincom Malls
1 Vincom Center
1 Vincom Mega Mall
7 Vincom Plazas
2 Vincom+ Malls
North Vietnam
8 Vincom Malls
6 Vincom Plazas
2 Vincom+ Mall
Central Vietnam
10 Vincom Malls
6 Vincom Plazas
4 Vincom+ Malls
South Vietnam
10 Vincom Malls
9 Vincom Plazas
1 Vincom+ Mall
Key Cities
46Operational
Malls
24Cities/
Provinces
1.2mmRetail GFA
(sqm)
4
Note: As at 31 Marrch 2018
2. Operational Update
500
700
800
900
1,000
1,100
1,200
1Q2018 Operational Highlights
Leasing Revenue (VNDbn)(1)
Retail GFA
(‘000 sqm)
20172013 20142004 2010 2011 2012 2015 2016
1,927
Vincom Center
Ba Trieu
Vincom Center
Dong Khoi
Vincom Plaza
Long Bien
1st Retail Mall in
Vietnam
1st Integrated
Project in
Vietnam
14 Years of Operating Experience Achieving ~1.2 mm sqm of Retail GFA (~28x Increase Since 2004)
2014 – 17 CAGR:
Revenue: 32.2%
GFA: 33.0%
Note: As at 31 March 2018
(1) VAS Audited Consolidated Financial Reports for 2014, 2015, 2016 and 2017
1 2 3 3 5 6 21 31 46No. of Malls
600
2,427
3,805
4,455
Vincom Mega Mall
Royal City
6
1Q2018 Highlights Run 02 marketing campaigns: “Connecting with Gifts – Tet with Good Fortune” and “8 Flowers for March”, increased footfall by 15% and 30% vs other regular periods
Signed ~30,000 sqm NLA and over 200 advertising contracts
Key tenants signed for expansion: Tiniworld, Xiaomi, Phuc Long, Jaspal Group
Running set up for 03 Vincom Plaza malls to be opened in April in Thanh Hoa, Bao Loc, Long An
Preparing for 02 additional Vincom Plaza malls to be opened in May in Hue and Quang Binh
Average Occupancy
Key Operational Metrics
Retail GFA
1Q2017 1Q2018Change
(bps)
Vincom Center 92.6% 94.0% 135
Vincom Mega Mall 81.0% 89.0% 798
Vincom Plaza 93.3% 87.9% (544)
Vincom+ 59.6% 73.3% 1,376
Overall 87.2% 88.4% 112
Figure in sqm 1Q2017 1Q2018 Change (%)
Vincom Center 165,876 165,876 -
Vincom Mega Mall 395,148 395,148 -
Vincom Plaza 451,531 568,170 25.8
Vincom+ 31,729 50,198 58.2
Overall 1,044,284 1,179,393 12.9
7
Note: As at 31 March 2018
Tenant Update
Key Tenants Joining in 2017 Key Tenants Signed for
Expansion (1)
Note: (1) In 1Q2018, key tenants signed for expansion included Tiniworld, Xiaomi, Phuc Long, Jaspal Group
(2) Tenant mix is based on NLA at the end of each period
Tenant Update for 2017 and 1Q2018 Tenant Mix Comparison(2)
24.0%
13.9% 16.1%
18.6%
27.4%
Fashion Food & Beverage
Hypermarket / Supermarket Entertainment
Others
Repositioning, re-tenanting, and implementing new concepts to certain
malls in order to attract footfall from adolescences
Applying new technology (i.e. thermal counter, heat map, etc) in
counting footfall in order to effectively co-ordinate with tenants during
daily operation
As at Mar 2018
8
Format 1H 2018E 2018E – 2019E
Vincom Center - 5
Vincom Mega Mall - 0
Vincom Plaza 5 26
Vincom+ 1 16
Malls Opening by Format
Malls Opening from 2018E – 2019E
6 malls To be opened in 2Q2018
47 malls to be opened in 2018E – 2019E
9
+ 3VC+ (Tây sơn, Yên Nghĩa,
3. Financials and Capital
Management Update
Figures in VND billion Q1 2017 Q1 2018Change
(%)Commentary
Leasing of Investment
Properties and Rendering
of Related Services1,079 1,282 18.9
Approximately 50% was attributed to the 15 malls opened in
2017.
Sale of Inventory Property 315 335 6.5
In Q1 2018: delivery of shop-houses in southern and south
central provinces
In Q1 2017: delivery of shop-offices in Hanoi and shop-houses in
southern provinces
Total Revenue 1,394 1,618 16.1 Due to increase in above items
Gross Profit 746 801 7.4
Operating Profit / (Loss) 617 647 4.9
Profit / (Loss) before Tax(1) 620 702 13.3
Profit / (Loss) for the
Period (1) 554 541 (2.3)
Effective tax rate was low in 2017 due to offsetting of previous
losses carried forward. In 2018, VRE does not have losses
carried forward
Profit / (Loss) after Tax and
Minority Interest (1) 554 541 (2.3)
Financial Performance Q1 2018 vs. Q1 2017
11
Note: VAS Unaudited Consolidated Financial Reports for Q1 2018
(1) Excluded one-off gain from Shares of profit of associates resulted from divestment of Tan Lien Phat JSC
1,651
2,5903,089
736 905
2015 2016 2017 1Q2017 1Q2018
68.0% 68.1% 69.3% 69.9% 71.5%
Leasing NOI Margin (%)
1,401 2,011 2,342
579 677
607
623 411
159 117
(2)
8 48
8 7
2,007
2,642 2,801
746 801
2015 2016 2017 1Q2017 1Q2018
Leasing of Investment Properties Sale of Inventory Properties Other revenue
2,427
3,8054,455
1,053 1,266
3,267
2,556 951
315 335
26424
112
26 17
5,9586,386
5,518
1,394 1,618
2015 2016 2017 1Q2017 1Q2018
Leasing of Investment Properties Sale of Inventory Properties Other revenue
Financial Performance
VNDbn
Total Revenue Gross Profit(1)
33.7% 50.8%41.4% 53.5%
VNDbn
Leasing Net Operating Income (NOI) (2)
VNDbn
Profit After Tax and Minority Interest(3)
1,090
2,437
1,882
554 541
2015 2016 2017 1Q2017 1Q2018
VNDbn
12
Note: Based on VAS Audited Consolidated Financial Statements for 2015, 2016, 2017 and VAS Unaudited Consolidated Financial Statements for 1Q2017 and 1Q2018
(1) Gross profit in VAS includes depreciation and amortization. Depreciation and amortization relating to investment properties is laid down below the graph and should be added back for IFRS
(2) NOI for leasing investment properties and rendering of related services, being calculated based on management report by taking the sum of gross rental income and other property-related income less any property-related
operating expenses including period land lease costs and amortization of prepaid land lease costs but excluding holding company expense allocations
(3) PATMI of 2017 and 1Q2017 excluded one-off gain from Share of profit of associates resulted from divestment of Tan Lien Phat JSC
49.5%
Gross Profit Margin (%)
Depreciation & amortization of investments properties (VNDbn)
414 642 829 158 232
Balance Sheet
14,240
5,961 5,974 5,981
396
1,698 1,482 1,465
31-Dec-15 31-Dec-16 31-Dec-17 31-Mar-18
Total Borrowings Cash and Cash Equivalents
VNDbn
Total Assets Inventory
VNDbn
VNDbn
Total Cash and Cash Equivalents
VNDbn
Total Equity
14,884
24,683 26,094 26,636
31-Dec-15 31-Dec-16 31-Dec-17 31-Mar-18
13
2,613(2)
Receivable from
short term loan
Note: Based on VAS Audited Consolidated Financial Statements for 2015, 2016, 2017 and VAS Unaudited Consolidated Financial Statements for 1Q2017 and 1Q2018
(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) Receivable from short-term loans, which was subsequently collected in April 2018
21,685 18,048
21,481 21,477
14,276 16,251
16,652 16,643
35,961 34,299
38,133 38,120
31-Dec-15 31-Dec-16 31-Dec-17 31-Mar-18
Investment Properties and Investment Properties Under Construction Other Assets
1,483
683
1,817 1,969
31-Dec-15 31-Dec-16 31-Dec-17 31-Mar-18
2,613 (2)
(1)
7.2
9.5
1Q2017 1Q2018
Leverage and Coverage ratios
(1) Net Debt = (Short-term Borrowings + Long-term Borrowings) – (Cash & Cash Equivalent + ST Investments + Receivables of Short-term loans). Receivable from short-term loans was subsequently collected in full amount in April 2018
(2) Cash and cash equivalent refers to cash, cash equivalent + short-term investments + receivables of short-term loans
(3) Interest Coverage Ratio = Leasing revenue/ Interest Expenses
4.9% 5.0%
31-Dec-17 31-Mar-18
Net Debt(1) / (Total Assets – cash & cash equivalent(2)) Net Debt(1) / Equity
7.2% 7.1%
31-Dec-17 31-Mar-18
Times
Interest Coverage Ratio(3)
14
Note: Based on VAS Audited Consolidated Financial Statements for 2017 and VAS Unaudited Consolidated Financial Statements for 1Q2017 and 1Q2018
Total Debt / Equity
22.9% 22.5%
31-Dec-17 31-Mar-18
Appendix
VAS 1Q2018 Adjustment IFRS 1Q2018
Leasing revenue and other related services 1,266 (3) 1,263
Sale of residential inventory 335 335
Other revenue 17 17
Total revenue 1,618 1,615
Cost of leasing activities and other related services (589) 232 (357)
Cost of residential inventory sold (218) (218)
Others (10) (10)
Cost of goods & services (817) (585)
Gross profit 801 1,030
Selling expenses (60) (60)
General and administrative expenses (96) 1 (95)
Share of profit of associate - -
Other income 8 8
Other expense (6) (6)
Finance expense (132) (132)
Finance income 187 2 189
Profit before tax 702 934
Tax expense (161) (1) (162)
Profit after tax 541 772
Bridging VAS to IFRS
Commentary on Adjustments
Depreciation of malls is included
under VAS; added back for IFRS
16
Note: Based on VAS Unaudited Consolidated Financial Statements for 1Q2018 and conversion to IFRS by management, excluding impact from Investment Property and Investment Property Under Construction (IP/IPUC)
revaluation gain/loss