Annual General Meeting
CEO Presentation to Shareholders
April 25, 2011
3-year leadership vision
of Vietnam's GDP and US$500 million of cashflows
5%
in each vertical
30% #1
return per annum for our shareholders
place for talent in Vietnam
#1
A: Vietnam Tomorrow Today
Q: What is the strategy and vision to achieve this?
The universe is asymmetric.
Louis Pasteur
Everyone sees Vietnam's obvious consumption story
2010 Packaged food and beverages per capita USD per annum
2010 GDP per capita USD PPP thousands
Source: Euromonitor; Global Financial Stock database; USGS; BGR Coal; Austrade; Vinacomin; Lit search
But the private sector is too fragmented
2.9%
Avg. size of top 20 private sector companies as % of 2010 GDP
2.2% 1.5%
2.2%
0.5%
Vietnam
Indonesia
Philippines
India
Thailand
Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
Capital markets are undeveloped
33,367
Avg. size of top 20 listed companies (US$ mm)
9,643 5,221
1,081
Vietnam Philippines Thailand
11,565
Indonesia
India
Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
And over competitive.
Net turnover Profit before tax Profit before tax (margins %) 5.2% = average
5.8%
State-owned enterprises Local private sector Foreign-owned/ partnerships
1.2%
12.2%
Source: EIU; Euromonitor; Global Insight; MGI; WDI; Bloomberg; IMF World Economic Outlook Database; Team analysis
A: The private sector needs a consolidator. Q: How can Masan build a consolidator?
Change before you have to.
Jack Welch
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
US$3.0bn
Financial services
US$28.3bn
Resources
US$9.0bn
US$14.5bn
US$56.1bn
US$16.2bn
US$5.5bn
US$21.0bn
US$8.2bn
Source: Bloomberg
Do less but go deep
70%+ market share of key products Fastest growing ATM and branch network, #1 ROAE
One of the largest tungsten mines outside China
Not enough to be Vietnam Plus we have to be Global Standard
Professional management
Risk management
Strategy
Reputable partners
Operational platform
Corporate governance
Consolidation
Consolidate stakes in existing businesses
Consolidate sectors of existing businesses
Consolidate Vietnam's private sector with new verticals
The Masan Way
Getting the best person for each job and partnering to deliver
Risk management & capital allocation
Local access & execution Professional operators
A: Build the best operating platforms. Q: But how do we survive the volatile macro environment?
You have to eat while you dream
Jack Welch
Businesses have to grow and make money
77%
2006-2010 Revenue CAGR #1 Vietnam
69% 43%
2010 Gross margin #1 Vietnam
25%
Return on Average Equity #1 Vietnam
2006-2010 Net Income CAGR Top in region
Investors and Partners with deep pockets access to capital
Ruthless capital allocation
Since 2009
Sources (US$ mm)
Consolidated cash raised ~555
Uses (US$ mm)
Increasing stakes in existing businesses & deleveraging Nui Phao funding commitments Masan Consumer capital expenditure Masan Consumer planned debt payments ~693 ~212
Internally generated cash
~138
~130 ~57
~49
~448
Current cash for M&A and investments: US$245mm
A: Making money is important and saving even more. Q: But is it enough to be Vietnam Plus?
We have them just where they want us
Capt James T Kirk Starship Enterprise
The world is flat the regional leaders are coming
Consumer
US$8.1bn Nestle India
US$14.5bn Tingyi US$5.5bn Indofood US$4.9bn Asia Pacific Breweries US$6.9bn CP Group US$11.2bn IOI Corp Bhd
Financial services
US$39.1bn State Bank
US$260.1bn ICBC US$21.0bn BCA US$26.9bn DBS Group US$13.0bn Siam Comm US$21.9bn Maybank
Resources
US$25.1bn NMDC
US$93.2bn China Shenhua US$8.2bn Adaro Energy US$26.6bn Wilmar US$7.0bn Banpu Pub US$7.5bn Petronas Gas
Source: Bloomberg
We benchmark ourselves to the best
We have delivered high returns and growth
2010 ROE
33%
2006-2010 net profit CAGR
29%
37%
11%
10%
155%
2006-2010 net profit CAGR
34%
30%
24%
37%
69%
28%
21%
19%
40%
Source: Bloomberg; audited reports
But we have not achieved relative scale yet ...
EV / GDP
2.2%
Market Cap US$bn
7.8%
3.7%
23.3%
6.3%
1.6
Book Value US$bn
14.5
11.9
4.1
10.2
0.5
4.8
2.1
3.8
20.3
Source: Bloomberg; audited reports
A: We have to achieve scale without sacrificing returns. Q: This is all medium term why should I buy your stock today?
Be fearful when others are greedy and greedy when others are fearful.
Warren Buffet
Liquidity is drying up
Increase in borrowing costs
Decrease in trading value
We are ready for the shakeout
3 market leading operating platforms
War chest of US$250-500mm for investing and M&A
Tested risk management platform
A: Solid fundamental businesses + capital
Q: But isn't there more than just strategy for Masan to succeed?
Talent wins games, but teamwork and intelligence wins championships.
Michael Jordan
A chairman with vision
Dr. Nguyn ng Quang
Our leadership
Mr H Hng Anh
Vice-Chairman Masan Group
Mr Nguyn c Vinh
CEO Techcombank
Mr Trng Cng Thng
CEO Masan Consumer
Mr Dominic Heaton
CEO Masan Resources
Mr Nguyn Thiu Nam
Deputy CEO Masan Group
Our team
I think this is the start of something really big. Sometimes that first step is the hardest one, and we've just taken it.
Steve Jobs
