2. 3-year
leadership
vision
#1
#1 30% place for
talent in
Vietnam
5%
return per
in each annum
vertical for our
of Vietnam's shareholders
GDP and
US$500
million of
cashflows
3. A: Vietnam
Tomorrow
Today
Q: What is the strategy and
vision to achieve this?
5. Everyone sees Vietnam's
obvious consumption story
2010 Packaged food and beverages per capita
USD per annum
2010 GDP per capita
USD PPP thousands
Source: Euromonitor; Global Financial Stock database; USGS; BGR Coal; Austrade; Vinacomin; Lit search
6. But the private
sector is too
fragmented
2.9%
Avg. size of top
20 private sector 2.2% 2.2%
companies as %
of 2010 GDP
1.5%
0.5%
Vietnam Indonesia Philippines India Thailand
Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
7. Capital markets are
undeveloped
33,367
Avg. size of top 20 listed
companies (US$ mm)
11,565
9,643
5,221
1,081
Vietnam Philippines Thailand Indonesia India
Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
8. And over
competitive….
Profit before tax
Net turnover Profit before tax
(margins %)
5.2% = average
5.8% State-owned
enterprises
1.2%
Local private
sector
Foreign-owned/
12.2% partnerships
Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
9. A: The private sector
needs a consolidator.
Q: How can Masan build
a consolidator?
11. Selecting only the scalable sectors where
a local private sector company can dominate
Largest local private sector companies in more developed
Asian economies are multi-billion market cap businesses
Consumer Financial services Resources
US$3.0bn US$28.3bn US$9.0bn
US$14.5bn US$56.1bn US$16.2bn
US$5.5bn US$21.0bn US$8.2bn
Source: Bloomberg
12. Do less but
go deep
70%+ market share
of key products
Fastest growing ATM
and branch network,
#1 ROAE
One of the largest
tungsten mines
outside China
13. Not enough to be “Vietnam Plus”…
…we have to be “Global Standard”
Professional Strategy
management Risk
management
Corporate
Operational governance
Reputable platform
partners
14. Consolidation
Consolidate
Vietnam's
Consolidate private
Consolidate sectors of sector
stakes in existing with new
existing businesses verticals
businesses
15. The “Masan Way”
Getting the best person
for each job and
Risk management &
partnering to deliver capital allocation
Local access &
execution
Professional
operators
16. A: Build the best
operating platforms.
Q: But how do we
survive the volatile
macro environment?
18. Businesses have to
grow and make money
25%
43% 69% Return on
Average
77% 2010 Gross
margin
2006-2010
Net Income
CAGR
Equity
#1 Vietnam
2006-2010 #1 Vietnam Top in region
Revenue
CAGR
#1 Vietnam
20. Ruthless capital allocation
Since 2009
Sources (US$ mm) Uses (US$ mm)
Consolidated cash raised ~555 Increasing stakes in existing ~212
businesses & deleveraging
Internally generated cash ~138 Nui Phao funding commitments ~130
Masan Consumer ~57
capital expenditure
Masan Consumer ~49
planned debt payments
~693 ~448
Current cash for M&A and investments: US$245mm
21. A: Making money is
important and saving
even more.
Q: But is it enough to be
“Vietnam Plus”?
22. “We have them
just where they
want us”
Capt James T Kirk
Starship Enterprise
23. The world is flat – the
regional leaders are coming
Consumer Financial services Resources
US$8.1bn US$39.1bn US$25.1bn
Nestle India State Bank NMDC
US$14.5bn US$260.1bn US$93.2bn
Tingyi ICBC China Shenhua
US$5.5bn US$21.0bn US$8.2bn
Indofood BCA Adaro Energy
US$4.9bn US$26.9bn US$26.6bn
Asia Pacific Breweries DBS Group Wilmar
US$6.9bn US$13.0bn US$7.0bn
CP Group Siam Comm Banpu Pub
US$11.2bn US$21.9bn US$7.5bn
IOI Corp Bhd Maybank Petronas Gas
Source: Bloomberg
25. We have delivered
high returns and growth
2010 ROE
33% 29% 37% 11% 10%
2006-2010
net profit
CAGR
155% 34% 30% 24% 37%
2006-2010
net profit
CAGR
69% 28% 21% 19% 40%
Source: Bloomberg; audited reports
26. But we have not achieved
relative scale yet ...
EV / GDP
2.2% 7.8% 3.7% 23.3% 6.3%
Market Cap
US$bn
1.6 14.5 11.9 4.1 10.2
Book Value
US$bn
0.5 4.8 2.1 3.8 20.3
Source: Bloomberg; audited reports
27. A: We have to achieve
scale without
sacrificing returns.
Q: This is all medium
term – why should I buy
your stock today?
34. Our leadership
Mr Hồ Hùng Anh Mr Nguyễn Đức Vinh Mr Trương Công Thắng
Vice-Chairman Masan Group CEO Techcombank CEO Masan Consumer
Mr Dominic Heaton Mr Nguyễn Thiều Nam
CEO Masan Resources Deputy CEO Masan Group