SLIDE 1
ANALYST MEETING
2018 Results Presentation February 14th, 2019
MEETING AGENDA
Key messages and business performance 2018 Market Condition Hospitality Property and Tourism Strategy Financial Highlights Q&A Section 1 2 3 4 5
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ANALYST MEETING 2018 Results Presentation February 14 th , 2019 Key - - PowerPoint PPT Presentation
ANALYST MEETING 2018 Results Presentation February 14 th , 2019 Key - - PowerPoint PPT Presentation
ANALYST MEETING 2018 Results Presentation February 14 th , 2019 Key messages and business 1 performance 2018 Market Condition 2 MEETING AGENDA Hospitality Property and Tourism 3 Strategy Financial Highlights 4 Q&A Section 5 1 Key
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SLIDE 3
Key messages and business performance 2018
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SLIDE 4
Key Messages for 2018
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Strong construction progress and solid deliveries in 2018
- Total handed-over units: 4,591
- Major projects on deliveries: The Sun Avenue, Sunrise Riverside, Richstar, Wilton,
Orchard Parkview, Rivergate.
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Profits powered by major delivered projects include:
- Major projects on deliveries
- Transfer of a part of Con Au Ecotourism Project
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Healthy presale outlook for 2019 with further expected launches
- Projects with approval being speeded up in HCMC
- Projects in other provinces
3
Introducing strategy to develop hospitality and tourism properties NVL introduced the 2nd phase of the Group’s business strategy, implementing hospitality property projects and tourism services. Novaland will continue to spend its resources on developing housing projects and also expand to tourism property projects in Phu Quoc, Can Tho, Ho Chi Minh City, Ba Ria – Vung Tau, Phan Thiet – Binh Thuan, Ninh Thuan, Cam Ranh – Khanh Hoa, Quang Nam, Da Nang...
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SLIDE 5
2018 Results Snapshot
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Net Revenue
15,290 bn VND
Gross Profit
5,156 bn VND
Net Profit After Tax
3,280 bn VND
New presold and deposits secured
~1,700 units
Unbilled contracted sales accumulated(1)
USD 1.5 bn
Total amount invested in associates
7,548 bn VND
Note: (1) As of December 31st, 2018
SLIDE 6
Financial performance 2018 vs 2017
5
2018 (VND bn) 2017 (VND bn) Change (%) Commentary
Net revenue 15,290 11,632 31%
- Mainly contributed by Lakeview City,
RichStar, Orchard Parkview, Rivergate Residence, The Tresor Residence, Wilton Tower, Kingston Residence, The Sun Avenue, Sunrise Riverside, Golden Mansion and transfer a part of Con Au ecotourism projects.
- More projects were handed over in
2018 than in 2017 Gross profit 5,156 3,257 58% % Margin 34% 28% 20%
- Mainly contributed by the profit of
transferring a part
- f
Con Au ecotourism project Operating profit 4,722 2,568 84%
- Major change is due to the
revaluation in accordance with regulation of investment into associates relating to Victoria Village and The Grand Manhattan projects Profit before tax 4,718 2,588 82% Profit after Tax 3,280 2,062 59%
Note: (1) As of December 31st, 2018, Company’s Consolidated Financial Statements – Quarter 4 - 2018
SLIDE 7
Development Progress Of Existing Projects
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THE GRAND MANHATTAN
Location
District 1, HCMC
Site area
(hectares) 1.40
NSA (sqm)
100,306
Product type
Apartment, Commercial, Hotel
Launch date
4Q2018
Handover date
3Q2022
Takeup rate
7.4%
Location
District 2, HCMC
Site area
(hectares) 4.27
NSA (sqm)
93,861
Product
type Apartment, Villa, Shophouse
Launch
date 2Q2017
Handover
date 1Q2020
Takeup rate
84.9%
VICTORIA VILLAGE SUNRISE CITYVIEW
Location
District 7, HCMC
Site area
(hectares) 1.57
NSA (sqm)
86,247
Product type
Apartment, Officetel, Commercial
Launch date
2Q2015
Handover date
2019
Takeup rate
96.8%
BOTANICA PREMIER
Location
Tan Binh, HCMC
Site area
(hectares) 1.63
NSA (sqm)
65,183
Product type
Apartment, Officetel, Commercial
Launch date
1Q2016
Handover date
2019
Takeup rate
98.3%
SLIDE 8
Development Progress Of Existing Projects
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THE SUN AVENUE
Location
District 2, HCMC
Site area
(hectares) 3.80
NSA (sqm)
188,128
Product type
Apartment, Commercial, Hotel
Launch date
1Q2015
Handover date
3Q2018
Takeup rate
98.7%
Location
District 4, HCMC
Site area
(hectares) 0.67
NSA (sqm)
49,869
Product type
Apartment, Officetel, Commercial
Launch date
2Q2016
Handover
date 4Q2018
Takeup rate
98.1%
SAIGON ROYAL GOLDEN MANSION
Location
Phu Nhuan, HCMC
Site area
(hectares) 1.51
NSA (sqm)
59,406
Product type
Apartment, Townhouse Shophouse Commercial
Launch date
3Q2015
Handover
date 2Q2018
Takeup rate
99.7%
RICHSTAR
Location
Tan Phu, HCMC
Site area
(hectares) 2.78
NSA (sqm)
132,900
Product type
Apartment, Shophouse Commerical
Launch date
4Q2015
Handover date
4Q2018
Takeup rate
99.7%
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Development Progress Of Hospitality Projects
Source: Company information
NovaBeach Cam Ranh
Location
Nha Trang
Total Unit (villas)
182
GDV (USD mn)
252
NSA (sqm)
143,238
Launch date
4Q2018
Handover date
1Q2022
Take-up rate
2.7%
ASP (USD psm)
1,761
NovaHills Mui Ne
Location
Phan Thiet
Total Unit
603
GDV (USD mn)
213.7
NSA (sqm)
69,466
Launch date
4Q2018
Handover date
2Q2020
Take-up rate
41.3%
ASP (USD psm)
3,076 As of 31 December 2018
SLIDE 10
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Continued project launches allow Novaland to extend its dominant presence across HCMC
Planned new launches in 2019
Project Location Land area
Project F Dist.2, HCMC 5 Project H Dist.2, HCMC 10 Project P Dist.2, HCMC 30 Project T Dist.9, HCMC 31.6 Project X Dist.3, HCMC 0.5 Other hospitality projects Cam Ranh, Phan Thiet – Mui Ne TBU
SLIDE 11
District 7 Binh Thanh District Tan Phu District Binh Tan District Tan Binh District Go Vap District District 6 District 10 District 5 District 8 District 3 District 1 District 4 Binh Chanh District District 2 District 9 Thu Duc District Phu Nhuan District
Tan Son Nhat International Airport HCMC CBD
N
C I K Nha Be District District 11 X R Q District 12 D S P H
3 km 6 km 9 km
Land bank located in prime locations and expected to appreciate in value
Metropolitan lines
Novaland’s existing landbank has a GDV of c.USD7.4bn(1). Prime landbank is expected to further appreciate in value given proximity to upcoming metro line.
Source: Company information. Note: As of 30 Sep 2018 (1): Not included Project X and Project Y
Ho Chi Minh City
T
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Land bank Location Land area (m²) Status Project C
- Dist. 2
1,360,001 Owned Project D
- Dist. 12
91,121 MOU Project F
- Dist. 2
50,000 Owned Project H
- Dist. 2
97,055 Owned Project I
- Dist. 2
830,308 MOU Project K
- Dist. 4
31,527 Owned Project P
- Dist. 2
302,240 Owned Project Q
- Dist. 9
1,348,353 MOU Project R
- Dist. 9
1,586,407 Owned Project S
- Dist. 8
500,475 Owned Project T
- Dist. 9
316,076 MOU Project X Dist.3 4,531 MOU Project Y Dist.2 3,748 MOU Total HCMC land bank 6,521,842 Representing GDV of USD7.4 bn
D C H I K Q P R S T X Y
Y
F
F
SLIDE 12
Market Conditions
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SLIDE 13
Market conditions (condominium)
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- Healthy pricing level for HCMC condominium
- Slow licensing project challenged the launching of new projects
- Sales slowed down due to limited supply, abortion rate remained high (~80% for mid-high end
segment)
- Increasing demand from foreign buyers
Source: CBRE Vietnam Q4 2018 – Market Outlook 2019
SLIDE 14
Market conditions (landed properties)
13 Source: CBRE Vietnam Q4 2018 – Market Outlook 2019
- Land fever in HCMC and neighboring provinces
- significant drop in new supply of landed properties
- Increase in Selling price
- Decentralization
- Shophouse maintains its strong growth
SLIDE 15
Strategy for Hospitality Property & Tourism
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SLIDE 16
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Powerful multi-format, with international
- perators, in
combination with developer branded assets to cover a growing market of clientele profiles Highly scalable expansion via the systematic identification and acquisition of well- located and large- scale land parcels which can be redeveloped. Growth of the Novaland ecosystem to cater to modern lifestyle and the creation of synergy between various Novaland products. Selective focus on international and domestic tourist destinations that have strong potential to become the next regional resort hubs.
DEVELOPMENT STRATEGY HOSPITALITY PROPERTY
The Group will build a developer and owner business model to accelerate the growth
- f the hospitality platform through a high velocity
capital recycling strategy via recurring income from hotel, resorts and other facilities, and proceeds from selective for-sale hospitality assets.
EXPANSION STRATEGY
SLIDE 17
LODGING TOURISM DEVELOPMENT TRANSPORTATION (CUSTOMERS) LOGISTICS TRAVELING SERVICES ENTERTAINMENT FOOD & BEVERAGE/ RETAIL SHOPPING
NovaWorld, NovaBeach, NovaHills. Hotel & resort (3 star- 6 star) (branded villas) Second home: Condotel, apartments, villas… Cooperation with the other local and international travel agencies Promoting cultural programs/ festivals Water park, Theme park, Aquarium, Safari, Zoo, Golf, Entertainment center (game, racing, karaoke…) Road transportation, air travel, waterway Transportation, storage, suppy of goods Self-organizing or alliance, association with the partners Franchise or alliance, association with the partners +Traditional Products: local specialties, traditional village + Modern shopping: Branded store, shop
NOVATOURISM
NOVATOURISM
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SLIDE 18
TOTAL LANDBANK
74%
HOSPITALITY
TOTAL LANDBANK
2,650
HECTARES
26%
RESIDENTIAL
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SLIDE 19
Financial Highights
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SLIDE 20
Handed over units Average selling price(2) Accumulative sales performance(1)
Sales performance
(Units)
Accumulative sold NSA(1)
(’000 sqm) (USD/m2) Source: Company information as of Dec 30, 2018 (1) Not including Madison and Park Avenue (2) ASP for apartment was calculated by presales from Jan to Dec 2018. USD/VND: 23,303 (*) Not including selling price of Madison and Park Avenue
19 2,141 2,095 1,629 4,324 East West South Central (*)
(Units)
1,903 2,020 3,596 4,591
2015 2016 2017 2018
847 1,322 1,733 1,883
2015 2016 2017 2018
12,034 19,302 24,791 26,144
2015 2016 2017 2018
SLIDE 21
Gross profit Revenue
(VND bn) (VND bn) 20%
Source: Financial Statements dated Dec 31, 2018
28% 34%
NPAT EBITDA
(VND bn) (VND bn)
20
18% 23% 21%
Margin ratio
Growth of revenue and profit
1,340 1,583 3,257 5,156
2015 2016 2017 2018
6,673 7,359 11,632 15,290
2015 2016 2017 2018
+31% +58%
442 1,659 2,062 3,280
2015 2016 2017 2018
+59%
830 1,002 2,807 4,550
2015 2016 2017 2018
+62%
22% 16% 37% 43% 44%
SLIDE 22
Debt/ Equity
Financial highlights
Source:Company Financial Statements as of Sep 30, 2018 (*) Debt = long-term borrowings + short-term borrowings (**) Net debt = long-term borrowings + short-term borrowings – cash and cash equivalent
Debt/ Total assets
(VND bn) (VND bn)
Net debt/ Equity EBITDA / Interest expenses
(VND bn)
(VND bn)
21
830 1,002 2,807 4,550
351 863 1,205 1,381
2.36 1.16 2.33 3.29
- 0.10
31-12-15 31-12-16 31-12-17 31-12-18
EBITDA Interest expenses EBITDA/ Interest expenses
4,134 10,166 11,300 16,289 6,095 10,047 13,256 20,473 0.68 1.01 0.85 0.80
- 0.20
- 5,000
31-12-15 31-12-16 31-12-17 31-12-18
Net debt Equity Net debt/Equity
7,994 13,503 17,950 27,912 26,570 36,527 49,467 69,888 30% 37% 36% 40%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%- 10,000
31-12-15 31-12-16 31-12-17 31-12-18
Debt Total assets Debt/Total assets
7,994 13,503 17,950 27,912 6,095 10,047 13,256 20,473 1.31 1.34 1.35 1.36
1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37- 5,000
31-12-15 31-12-16 31-12-17 31-12-18
Debt Equity Debt/Equity
SLIDE 23
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Debt Profile
Payment schedule Debt breakdown by currency Type of debt
432 254 153 63 241 50 100 150 200 250 300 350 400
2019E 2020E 2021E 2022E After 2023E (mn USD)
USD, 47.0% VND, 53.0%
Bonds, 29% CB, 20% CL, 2% Loans, 49%
Source: Company information, December 31st, 2018 Exchange rate: USD/VND: 23,303
SLIDE 24
2019 Business Plan (to be summited to AGM)
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Units to be announced
5,802 4,500 6,500
2017 2018 2019
+44%
(units)
Handed over
3,596 4,591 5,900
2017 2018 2019
+29% (units) 11,632 15,290 18,000
2017 2018 2019
(VND bn) +18%
Revenue
SLIDE 25
Q&A SECTION
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SLIDE 26
THANK YOU
Contact information:
Investor Relations Phone: +84 906 35 38 38 Ext. 3126 Email: ir@novaland.com.vn
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SLIDE 27
Appendix
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SLIDE 28
Lucky Dragon(2)
Location
Dist.9
Land area (sqm)
9,024
Launch date
2Q14
Handover date
4Q16
Takeup rate
98.7%
ASP (USD)
1,126 Sunrise City
Location
Dist.7
Land area (sqm)
51,261
Launch date
2Q11
Handover date
4Q14
Takeup rate
99.0%
ASP (USD)
1,598 Tropic Garden
Location
Dist.2
Land area (sqm)
25,028
Launch date (1)
3Q14
Handover date (1)
2Q16
Takeup rate
100%
ASP (USD) (1)
1,251 The Prince Residence
Location
Phu Nhuan Dist.
Land area (sqm)
4,644
Launch date
1Q13
Handover date
4Q15
Takeup rate
99.2%
ASP (USD)
2,215 Lexington Residence
Location
Dist.2
Land area (sqm)
19,928
Launch date
1Q14
Handover date
4Q15
Takeup rate
99.9%
ASP (USD)
1,256 Icon 56
Location
Dist.4
Land area (sqm)
2,904
Launch date
1Q14
Handover date
4Q15
Takeup rate
99.4%
ASP (USD)
1,994 Galaxy 9
Location
Dist.4
Land area (sqm)
6,228
Launch date
1Q14
Handover date
4Q15
Takeup rate
100%
ASP (USD)
1,344 Lakeview City
Location
Dist.2
Land area (sqm)
301,060
Launch date
2Q16
Handover date
1Q17 to 2Q19
Takeup rate
99.8%
ASP (USD)
3,144 Orchard Garden
Location
Phu Nhuan Dist.
Land area (sqm)
4,303
Launch date
4Q14
Handover date
1Q17
Takeup rate
99.8%
ASP (USD)
1,453 Gardengate
Location
Phu Nhuan Dist.
Land area (sqm)
4,887
Launch date
4Q14
Handover date
2Q17
Takeup rate
100.0%
ASP (USD)
1,629 Lucky Palace
Location
Dist.6
Land area (sqm)
3,876
Launch date
3Q14
Handover date
2Q17
Takeup rate
99.5%
ASP (USD)
1,710 Rivergate
Location
Dist.4
Land area (sqm)
7,069
Launch date
4Q14
Handover date
3Q17
Takeup rate
82.3%
ASP (USD)
2,340 The Tresor
Location
Dist.4
Land area (sqm)
5,780
Launch date
4Q14
Handover date
3Q17
Takeup rate
99.7%
ASP (USD)
2,312 Kingston Residence
Location
Phu Nhuan Dist.
Land area (sqm)
4,604
Launch date
2Q15
Handover date
4Q17
Takeup rate
97.5%
ASP (USD)
2,326 Source: Company information (1) Metrics for Tropic Garden 1.2 (2) Metrics for both Lucky Dragon lowrise and apartment developments
A B C E F G I J D K L M N O
Wilton Tower
Location
Binh Thanh Dist.
Land area (sqm)
7,169
Launch date
3Q15
Handover date
2Q18
Takeup rate
100%
ASP (USD)
1,537 Golf Park
Location
Dist.9
Land area (sqm)
25,398
Launch date
3Q15
Handover date
1Q17
Takeup rate
100%
ASP (USD)
740
H
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Project details (Completed)
P
The Botanica
Location
Tan Binh Dist.
Land rea (sqm)
9,028
Launch date
1Q15
Handover date
2Q18
Takeup rate
99.5%
ASP (USD)
1,506
Q Q
SLIDE 29
Newton Residence
Location
Phu Nhuan Dist.
Land area (sqm)
2,807
Launch date
2Q16
Handover date
1Q19
Takeup rate
90.5%
ASP (USD)
2,313 Sun Avenue
Location
Dist.2
Land area (sqm)
38,073
Launch date
1Q15
Handover date
2Q18
Takeup rate
98.7%
ASP (USD)
1,832 Orchard Parkview
Location
Phu Nhuan Dist.
Land area (sqm)
9,184
Launch date
3Q15
Handover date
4Q18
Takeup rate
99.8%
ASP (USD)
1,493 Sunrise Cityview
Location
Dist.7
Land area (sqm)
15,720
Launch date
2Q15
Handover date
4Q2018
Takeup rate
96.8%
ASP (USD)
1,695 Richstar
Location
Tan Phu Dist.
Land area (sqm)
27,802
Launch date
4Q15
Handover date
4Q18
Takeup rate
99.7%
ASP (USD)
1,319 Victoria Village
Location
Dist.2
Land area (sqm)
42,777
Launch date
2Q17
Handover date
3Q19
Takeup rate
84.9%
ASP (USD)
2,990 Botanica Premier
Location
Tan Binh Dist.
Land area (sqm)
16,330
Launch date
1Q16
Handover date
4Q18
Takeup rate
98.3%
ASP (USD)
1,691 Sunrise Riverside
Location
Nha Be
Land area (sqm)
39,305
Launch date
3Q15
Handover date
3Q18
Takeup rate
80.8%
ASP (USD)
1,497 Saigon Royal
Location
Dist.4
Land area (sqm)
6,669
Launch date
2Q16
Handover date
4Q18
Takeup rate
98.1%
ASP (USD)
2,924 Source: Company information *: Based on total units sold thus far, representing 7% of the entire number of units, against the number of units launched thus far.
A B C E F G J D H
Golden Mansion
Location
Phu Nhuan Dist.
Land area (sqm)
15,129
Launch date
3Q15
Handover date
2Q18
Takeup rate
99.7%
ASP (USD)
2,016
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Project details (Under development)
I
Grand Manhattan
Location
- Dist. 1
Land area (sqm)
14,002
Launch date
4Q18
Handover date
1Q22
Takeup rate*
53%
ASP (USD)
6,016
K
SLIDE 30
Projects expected to be delivered in 2018 and 2019
Source: Company information, as of end of 3Q2018. Note: USD/VND: 23,303 .
Project Launch date Expected delivery date % units pre-sold GDV (USDmn) NSA (sqm) Wilton Tower 3Q2015 2Q2018 100 55 36,897 Golden Mansion 3Q2015 2Q2018 100 104 59,372 The Botanica 1Q2015 4Q2018/1Q2019 99 55 38,327 Lakeview City 2Q2016 1Q2017 to 2Q2018 99 374 126,638 Sun Avenue 1Q2015 3Q2018 98 327 188,219 Sunrise Riverside 3Q2015 3Q2018 81 315 207,543 Orchard Parkview 3Q2015 4Q2018 100 63 45,085 Richstar 4Q2015 4Q2018 100 165 133,470 Botanica Premier 1Q2016 4Q2018/1Q2019 98 108 65,182 Sunrise Cityview 2Q2015 4Q2018/1Q2019 98 140 86,468 Newton Residence 1Q2016 4Q2018 90 39 16,761 Saigon Royal 2Q2016 4Q2018 99 146 50,643 Victoria Village 2Q2017 3Q2019 78 239 93,855 Total 2,131 1,139,216
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