Agm 2011 Ceo Presentation(05042011)


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Agm 2011 Ceo Presentation(05042011)

  1. 1. Annual General MeetingCEO Presentation to ShareholdersApril 25, 2011
  2. 2. 3-yearleadershipvision #1 #1 30% place for talent in Vietnam 5% return per in each annum vertical for ourof Vietnams shareholdersGDP andUS$500million ofcashflows
  3. 3. A: Vietnam Tomorrow TodayQ: What is the strategy andvision to achieve this?
  4. 4. “The universe isasymmetric.” Louis Pasteur
  5. 5. Everyone sees Vietnamsobvious consumption story 2010 Packaged food and beverages per capita USD per annum 2010 GDP per capita USD PPP thousands Source: Euromonitor; Global Financial Stock database; USGS; BGR Coal; Austrade; Vinacomin; Lit search
  6. 6. But the privatesector is toofragmented 2.9%Avg. size of top20 private sector 2.2% 2.2%companies as %of 2010 GDP 1.5% 0.5% Vietnam Indonesia Philippines India Thailand Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
  7. 7. Capital markets areundeveloped 33,367Avg. size of top 20 listedcompanies (US$ 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. 8. And overcompetitive…. 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. 9. A: The private sectorneeds a consolidator.Q: How can Masan builda consolidator?
  10. 10. “Change beforeyou have to.” Jack Welch
  11. 11. Selecting only the scalable sectors wherea local private sector company can dominateLargest local private sector companies in more developedAsian 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$8.2bn Source: Bloomberg
  12. 12. Do less butgo deep 70%+ market share of key products Fastest growing ATM and branch network, #1 ROAE One of the largest tungsten mines outside China
  13. 13. Not enough to be “Vietnam Plus”……we have to be “Global Standard” Professional Strategy management Risk management Corporate Operational governance Reputable platform partners
  14. 14. Consolidation Consolidate Vietnams Consolidate private Consolidate sectors of sector stakes in existing with new existing businesses verticals businesses
  15. 15. The “Masan Way”Getting the best personfor each job and Risk management &partnering to deliver capital allocation Local access & execution Professional operators
  16. 16. A: Build the bestoperating platforms.Q: But how do wesurvive the volatilemacro environment?
  17. 17. “You have to eatwhile you dream” Jack Welch
  18. 18. Businesses have togrow and make money 25% 43% 69% Return on Average77% 2010 Gross margin 2006-2010 Net Income CAGR Equity #1 Vietnam2006-2010 #1 Vietnam Top in regionRevenueCAGR#1 Vietnam
  19. 19. Investors and Partners withdeep pockets – access to capital
  20. 20. Ruthless capital allocationSince 2009Sources (US$ mm) Uses (US$ mm)Consolidated cash raised ~555 Increasing stakes in existing ~212 businesses & deleveragingInternally 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. 21. A: Making money isimportant and savingeven more.Q: But is it enough to be“Vietnam Plus”?
  22. 22. “We have themjust where theywant us” Capt James T Kirk Starship Enterprise
  23. 23. The world is flat – theregional 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$7.5bn IOI Corp Bhd Maybank Petronas Gas Source: Bloomberg
  24. 24. We benchmarkourselves to the best
  25. 25. We have deliveredhigh returns and growth 2010 ROE 33% 29% 37% 11% 10% 2006-2010 net profit CAGR 155% 34% 30% 24% 37% 2006-2010 net profit CAGR 69% 28% 21% 19% 40% Source: Bloomberg; audited reports
  26. 26. But we have not achievedrelative scale yet ... EV / GDP 2.2% 7.8% 3.7% 23.3% 6.3% Market Cap US$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. 27. A: We have to achievescale withoutsacrificing returns.Q: This is all mediumterm – why should I buyyour stock today?
  28. 28. “Be fearful whenothers are greedyand greedy whenothers are fearful.” Warren Buffet
  29. 29. Liquidity is drying up Increase in borrowing costs Decrease in trading value
  30. 30. We are ready for theshakeout 3 market leading operating platforms Tested risk management platform War chest of US$250-500mm for investing and M&A
  31. 31. A: Solid fundamentalbusinesses + capitalQ: But isnt there morethan just strategy forMasan to succeed?
  32. 32. “Talent wins games,but teamwork andintelligence winschampionships.” Michael Jordan
  33. 33. A chairmanwith visionDr. Nguyễn Đăng Quang
  34. 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
  35. 35. Our team
  36. 36. “I think this is the startof something really big.Sometimes that firststep is the hardest one,and weve just takenit.” Steve Jobs