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