Phat Dat Real Estate Development : PDR Newsletter Q1/2022

1Q

2022

RELENTLESS

ASPIRATION

PDR WON DOUBLE PRIZES AT THE AWARD CEREMONY

PDROF VIETNAM'SCONTINUOUSLY50 BESTWINS-PERFORMINGPRESTIGIOUSCOMPANIES 2021

AND REPUTABLE AWARDS IN 2021

FITCHPHAT DRATINGSIPCONSTANTLYAFFIRMS PHATEXPANDSDAT'SITSIDR AT 'B';	PDRINCRENTERSAINGMSCIMAFRONKETIERPOSITION,MARKETS INDEX
OUTLOOKINVESTMENTSTABLEIN DONG THAP	THEIMPROVINGAFFIRMATIVEINVESTMENTATTRACTIONRELATIONSHIPSTO FOREIGN INVESTORS

CONTENT

Highlights

Market overview

Business performance

IR activities

Project information

Featured events

04

06

08

12

14

24

CGI of the Phuoc Hai project (Ba Ria - Vung Tau)

IR NEWSLETTER | 1Q2022 | RELENTLESS ASPIRATION

HIGHLIGHTS

PDR'S HIGHLIGHTED ACTIVITIES IN THE QUARTER

PDR ORGANIZED THE 2022 ANNUAL GENERAL MEETING

OF SHAREHOLDERS

On 26 March 2022, PDR held the 2022 Annual General Meeting of Shareholders (AGM) at Nikko Saigon Hotel, featuring the theme "Relentless aspiration." At the meeting, the GMS approved 6 proposals for business performance in 2021 and development orientation in 2022.

THE COMING PROJECT IN PHUOC HAI - BROUGHT BY PDR

On 23 March 2022, the Leadership of Phat Dat Real Estate Development Corporation (HoSE: PDR) held a groundbreaking ceremony for a large-scale project worth about VND 3,500 billion in Phuoc Hai Town. Backed up by PDR's renowned reputation for high-quality products, the project is expected to deliver great value to investors and tourists amid a dearth of high-quality hospitality accommodations in Ba Ria-Vung Tau Province (BR-VT).

PHAT DAT IP CONSTANTLY EXPANDS ITS

INVESTMENT IN DONG THAP

Following the Dung Quat Industrial Township project (Quang Ngai), Phat Dat Industrial Park Investment and Development JSC (PDI) continuously expands its investment into industrial park projects in Cao Lanh District (Dong Thap Province), mapping a total area of 2,000 hectares by 2030.

PDR ACCOMPANIED

HCMC FEDERATION OF BICYCLE AND MOTORBIKE SPORT

Accompanying the HCMC Federation of Bicycle and Motorbike Sport, Phat Dat Real Estate Development Corporation sponsored VND 2 billion to the Federation's activities in the New Year. To celebrate the upcoming Lunar New Year and the 1st Anniversary of Thu Duc City, in collaboration with the HCM City's Organizing Board of Major Holidays, the City's Department of Culture and Sports, and the municipal People's Committee, the Federation organized the Bicycle Racing with nearly 200 cyclists racing a 54-kilometer route. With the goal of creating a playground to improve people's health, the tournament is expected to be an annual event at a larger scale, drawing more amateur racers.

PDR JOINED TRA VINH PROVINCE

IN A TET PROGRAM FOR THE UNDERPRIVILEGED

Aiming at sustainable development with meaningful societal contributions, on 21st January 2022, Phat Dat Real Estate Development Corporation donated VND1 billion to the program "Happy Tet for the Underprivileged" through the Vietnam Fatherland Front of Tra Vinh Province.

In 2021, PDR also timely supported Tra Vinh Province in preventing and controlling the Covid-19 epidemic with a total donation value of more than VND1 billion.

PDR WON DOUBLE PRIZES AT THE AWARD CEREMONY OF VIETNAM'S 50 BEST-

PERFORMING COMPANIES 2021

Phat Dat was honored to win the Third Place in the Ranking of 2021 Vietnam's 50 Best-Performing Companies and the outstanding Billion-Dollar Enterprise Award 2020-2021, which was unveiled at the honoring ceremony hosted by Nhip Cau Dau Tu Magazine on 17th January 2022.

The awards are evaluated and ranked based on the assessment of businesses' results from 2020 to 2021, using three growth indicators: revenue, return on equity (ROE) and earnings per share (EPS).

This year's results have once again recognized Phat Dat's excellent development and governance capacity in the New Era 2019-2023.

IR NEWSLETTER | 1Q2022 | RELENTLESS ASPIRATION

PHAT DAT CORPORATION:

INCREASING MARKET POSITION, IMPROVING INVESTMENT RELATIONSHIPS

On 24 March 2022, the signing ceremony of investment cooperation between Phat Dat Real Estate Development Corporation (HoSE: PDR) and ACA Investments Pte. Ltd. (ACA) - a fund manager of Daiwa Securities Group Incorporation, was successfully held at PDR's head office. This ceremony is an important milestone that marks ACA's initial investment of 30 million USD in PDR after having strictly due diligence into Phat Dat's operations.

BCI ASIA AWARDS RECOGNIZED

PHAT DAT'S ACHIEVEMENT

IN BOTH 2020 & 2021

At the BCI Asia Award 2020/2021 ceremony on 19 January 2022 at Sheraton Saigon Hotel, Phat Dat was one of the three investors named in the Top 10 Developers in Vietnam for both 2020 and 2021.

BCI Asia Awards is one of the most prestigious awards in the Asia- Pacific region to honor leading developers and architecture firms that have built and designed the greatest volume of buildings throughout the year.

BCI Asia Awards is also considered an international forum of elite investors, architectural firms, contractors, manufacturers, and service providers. Seven Asian countries, including Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, hold the program each year.

PHAT DAT REAL ESTATE DEVELOPMENT CORPORATION JOINS

GREAT VISION - SUSTAINABLE DEVELOPMENT 4

5 STOCK CODE: PDR

www.phatdat.com.vn

IR NEWSLETTER | 1Q2022 | RELENTLESS ASPIRATION

MARKET OVERVIEW IN 1Q2022

APARTMENT MARKET IN HCMC AND NEARBY PROVINCES

IR NEWSLETTER | 1Q2022 | RELENTLESS ASPIRATION

INDUSTRIAL REAL ESTATE MARKET IN SOUTHERN PROVINCES

By the end of 1Q2022, along with a lower absorption rate, apartment supply in HCMC and neighboring provinces decreased, equal to only 42% of the previous quarter (8,039 units) and 62% of the first quarter of 2021 (5,515 units). HCMC and Binh Duong continued to lead the market with 85% of the new supply.

			5.039
5.515			5.767
4.416	3.994	3.516	3.398
	3.252
		2.724	2.596

Absorption totaled 2,596 units, approximately 76% of the newly launched supply, 45% of the previous quarter (5,767 units) and 59% of the same period last year (4,416 units). Grade B apartments made up 63% of the entire open-sale stock in the first quarter of 2022, mainly in the western part of the city. The primary selling price climbed by around 2% to 5% compared to the previous quarter, but the secondary selling price remained relatively unchanged.

34%

51%

Despite the pandemic, foreign investors remain optimistic about Vietnam's economy and the investment market in the new normal. The manufacturing and processing industry accounted for USD 5.3 billion, or 60% of total investment capital. There are 84 new projects with registered capital of $2.1 billion and 150 existing projects with a total capital increase of $2.8 billion. The South market dominated with 87.7% of total newly registered FDI in the manufacturing sector, followed by the North with 10.9%. According to JLL, thanks to the new wave of FDI investment flowing into Vietnam after reopening and the expanding production need of existing businesses, land prices in the South continued to reach new peaks with an average of 120 USD/m2/lease cycle, up 9% over the

same period last year. Binh Duong Province enjoys a 63% market share worth US$1.38 billion, thanks to Lego's investment in VSIP III.

Previously expected projects have officially been put into operation, significantly adding to the supply of industrial land and ready-built factories in the first quarter of 2022, reaching 26,724 hectares and 3.8 million sqm, respectively. In the southern region, aside from location and cost, the emergence of green IP models and the application of smart technology into management and operation are of great interest and projected to provide competitive advantages in the future to attract investment.

Q1/2021	Q2/2021	Q3/2021	Q4/2021	Q1/2022	15%
	S	T-	U:
					HCMC	B D	Đ N
	SUPPLY AND TAKE-UP BY QUARTER		NEW SUPPLY BY LOCALITY

HOSPITALITY PROPERTY MARKET IN NEARBY PROVINCES	Source: DKRA

The condotel market welcomed 613 units from four new developments in 1Q2022, a rise of 71% over the previous quarter but a fall of 18% over the same period in 2021. The southern region, Ba Ria - Vung Tau in particular, accounted for 52 percent of the new supply on the market. The absorption rate reached 32% of new stock or 199 units, 3.3 times higher than in the fourth quarter of 2021 but only 43% of the same period in 2021.

According to DKRA, projects operated and managed by international operators recorded a 23% higher selling price compared to domestically-run projects. Successful transactions were also higher in intenationally-run facilities, accounting for 86% of total sales in the quarter, with a sales period lasting 3-4 months. In addition, over the past time, the Ministry of Natural Resources and Environment has proposed to amend regulations governing the issue of ownership certificates for condotels, officetels, and resort villas. This adjustment is expected to solve the problem of ownership certificate issuance for hospitality real estate in the coming time.

Source: Internet

2.112

												23%
752	892	626			613				52%
					359
467									25%
			68	61	199
	Q1/2021			Q2/2021		Q3/2021		Q4/2021		Q1/2022
				S		T- U:
												N	C	S
		SUPPLY AND TAKE-UP BY QUARTER				NEW SUPPLY BY REGION

Source: DKRA

MARKET OUTLOOK IN 2Q2022

New supply in 2Q2022 is projected to be 5,500 apartments from the HCMC market and 1,200 apartments from the Binh Duong market, while new supply in other provinces will be relatively scarce. Grade A and Grade B apartments will lead the market. Primary selling prices may increase because of the pressure of raw material costs, while the secondary selling price will not change much compared to the first quarter of 2022.

Source: Internet

PHAT DAT REAL ESTATE DEVELOPMENT CORPORATION JOINS

GREAT VISION - SUSTAINABLE DEVELOPMENT 6

7 STOCK CODE: PDR

www.phatdat.com.vn

IR NEWSLETTER | 1Q2022 | RELENTLESS ASPIRATION

BUSINESS PERFORMANCE IN 1Q2022

BUSINESS RESULTS

IR NEWSLETTER | 1Q2022 | RELENTLESS ASPIRATION

MAINTAINING STABLE FINANCIAL STATUS		13.147,05
		12.407,37
Capital development is an important task of real estate	10.423,21	10.495,78
developers. By late of 1Q2022, PDR raised the total

The General Meeting of Shareholders approved the 2022 business plan target at the 2022 AGM. Accordingly, 2022's revenue and profit targets are set in conformity with the accumulated pre-tax

6.000

5.000

9.592,43

capital to VND 21,535.52 billion, an increase of 4.8%	8.144,51	8.388,47
compared to the end of 4Q2021.
	6.867,63

profit target of VND 14,270 billion in the New Era Strategy from 2019 to 2023.

4.000

CAGR 51%

5.194,28

4.368,95

NET REVENUE

VND 10,700 billion

PROFIT BEFORE TAX

VND 3,635 billion

PROFIT AFTER TAX

VND 2,908 billion

In the first three months of 2022, PDR recorded a cumulative revenue of VND 625.45 billion, up 6.7% over the same period, mainly from Zone 4 of Nhon Hoi Ecotourism City, Binh Dinh Province. Profit before tax reached VND 353.64 billion, up 12.3% over the same period and 10% of the given target for 2022.

3.000

2.000

1.000

0

2019

2020

2021

2022

2023

2019-2023 CUMULATIVE PRE-TAX PROFIT AIMING AT VND 14,270 BILLION

				65%
2.500				2.344,35
2.000			39%
			1.540,22
1.500		33%
		1.105,31
1.000
					54%	57%
500					314,93	353,64
-
	2019	2020	2021	3M2021	3M2022

PROFIT BEFORE TAX (VND BILLION)

	51%
2.000	1.860,61
1.800
1.600	31%
1.400	1.220,25
1.200	26%
1.100	874,14

Entering 2022, PDR continues its debt restructuring strategy shifting from short-term to long-term and focusing on the international bond market with preferential capital costs. Specifically, short-term loans accounted for 25.4% of total liabilities, equivalent to VND 1,222.56 billion and down 6.2%. Meanwhile, long- term loans accounted for 74.6% of total liabilities, reaching VND 3,593.1 billion and up 310.7% over the same period. PDR advocates using resources from loans on a prudent basis, directly serving the purposes of project development and land bank expansion, ensuring financial safety ratios.

In 1Q2022, PDR carried a bond issue worth VND 300 billion to finance the implementation of PDR's projects. Especially on 24 March 2022, PDR signed an investment cooperation agreement with ACA Investments, a fund manager of Daiwa Securities Group Incorporation in Japan. Accordingly, ACA made an initial investment of USD 30 million in PDR through an unsecured loan with the right to convert into ordinary shares via private placement. The convertible loan has a 3-year term, a preferential interest rate of 8%year and a conversion price of VND 120,000/share, equivalent to a market cap of VND 60,000 billion. From the partnership with ACA and the stable outlook 'B' credit rating from Fitch Ratings - the world's leading prestigious credit rating agency, PDR has proven its ability to comply with strict regulation of international investment funds.

2019	2020	2021	3M2021	3M2022
	L ( VND)	O' ( VND)

RESOURCES

25%

L-

75%

S-

DEBT MATURITY STRUCTURE AS OF 31 MARCH 2022

800
600					43%	45%
400					251,07	279,39
200
-
2019	2020	2021	3M2021	3M2022

PROFIT AFTER TAX (VND BILLION)

ABOUT THE CONVERTIBLE FOREIGN LOAN

Lender: ACA Investments	Fixed interest rate: 8%/year
Loan value of $30 million with a 3-year term	Conversion price of VND 120,000/share,
No collaterals	equal to VND 60,000 billion in market cap

PHAT DAT REAL ESTATE DEVELOPMENT CORPORATION JOINS

GREAT VISION - SUSTAINABLE DEVELOPMENT 8

9 STOCK CODE: PDR

www.phatdat.com.vn