Masan : MSN 1Q2022 Earnings Release

FOR IMMEDIATE RELEASE

Masan Group's Profits Up 8x in 1Q2022; TCX Continues to Power Growth for Masan

Ho Chi Minh City, 28 April 2022 - Masan Group Corporation (HOSE: MSN, "Masan" or the "Company"), today released its unaudited management accounts for the first quarter of 2022 ("1Q2022").

"Our traditional consumer-centric philosophy has evolved into a consumer-tech mindset and platform. Artificial Intelligence is core to this consumer-tech transformation and how we will serve each consumer uniquely and more cost effectively. Today, we now have a strong AI and ML platform that can drive value to our consumers' daily lives. AI and ML is the only way to serve our consumers exactly what they want whether off or online," said Dr. Nguyen Dang Quang, Chairman of Masan Group.

1Q2022 Key Takeaways:

• ◼ The CrownX ("TCX"), Masan's integrated consumer-retail platform that consolidates WinCommerce ("WCM") and Masan Consumer Holdings ("MCH"), grew net revenue year-over-year ("YoY") by 7.3% to VND13,450 billion in 1Q2022, compared to VND12,533 billion in 1Q2021, driven by strong revenue growth in MCH and new store additions at WCM.

  • ◼ WCM: Significantly expanded store count year-to-date ("YTD"), opening 109 new locations in 1Q2022. As a result, WCM revenue was up 0.8% YoY compared to 1Q2021, and up 5.7% versus 4Q2021. With 300 new stores expected to be opened in 2Q2022, in addition to growth in existing stores, WCM is on track to deliver ~6% revenue growth in 2Q2022 YoY, signaling strong growth momentum for remainder of FY2022.

  • ◼ MCH: delivered net revenue growth of 17.4% YoY in 1Q2022, reaching VND6,448 billion, driven by double-digit growth in nearly all categories. Based on accelerating product launches and growth in existing categories, MCH is on track to deliver ~30% growth in topline for 2Q2022 YoY.

• ◼ TCX's EBITDA in 1Q2022 was VND1,643 billion, up 35.1% YoY.

  • ◼ WCM: EBITDA reached VND164 billion in 1Q2022, representing an EBITDA margin of 2.2%, an improvement of 40 basis points ("bps") YoY, despite new store openings which typically take time to ramp up.

  • ◼ MCH: MCH delivered gross margin of 40.7% in 1Q2022, improvement of 100 bps versus 1Q2021. EBITDA margins were also higher at 22.7%, up 80 bps versus same period last year. As a result, MCH delivered VND1,466 billion in EBITDA, growth of 28.4% YoY. While higher raw material costs are expected to slightly pressure 2Q2022 margins, management expects greater operational efficiency, cost saving initiatives (such as optimizing sales and promotion activities), and passing on supply side cost pressures where required will result in 20%+ EBITDA margin for FY2022.

• ◼ Masan MEATLife's ("MML"): As a result of deconsolidation of feed business, revenue declined by 80.2% YoY to VND931 billion in 1Q2022, comprising entirely of sales of meat products. On a like-for-like basis, which excludes feed segment contribution, MML net revenue was only down by 5.4% due to lower pig prices offset by higher sales volume. Despite higher soft commodity prices, branded pork meat ("MEATDeli") EBITDA margins improved by 1,540 basis points ("bps") in 1Q2022 YoY, while chicken segment ("3F VIET") EBITDA margins improved by 670 bps. Management expects the trend of rising meat prices will continue thereby supporting margins, while expansion of product portfolio and increased availability (growth of WCM network and other channels) will lead to higher revenues from 2Q2022 onwards.

• ◼ Masan High-Tech Materials ("MHT"): Driven by rising commodity prices and strong demand, MHT delivered net revenue of VND3,930 billion in 1Q2022, up 32.6% YoY, EBITDA of VND878 billion, up 83.7% YoY, and net profit of VND126 billion. Expectations for revenue growth in

2Q2022 are more than 30% YoY, driven by higher commodity prices. Management is working on initiatives to go further downstream to improve profitability and unlock further value.

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Techcombank ("TCB"), Masan's associated company, delivered profit before tax growth of 23% YoY to reach VND6.8 trillion in 1Q2022. For detailed results, please refer to the bank's website.

Consolidated Financial Results

• ◼ Net Revenue: Masan's consolidated net revenue reached VND18,189 billion in 1Q2022, a decline of 8.9% versus VND19,977 billion in 1Q2021, mainly due to deconsolidation of the feed segment. Excluding 2021 feed revenue for a like-for-like1 comparison, net revenue grew by 11.9% in 1Q2022 YoY, driven by double-digit growth at MCH and MHT, and low-single digit growth at WCM.

• ◼ EBITDA: 1Q2022 consolidated EBITDA grew by 16.3% YoY to VND3,655 billion as EBITDA margin reached 20.1% in 1Q2022 versus 15.7% in 1Q2021, primarily driven by TCX increasing EBITDA by 35.1% YoY. On a like-for-like basis, consolidated EBITDA was up 28.9% in 1Q2022 YoY.

• ◼ Net Profit After Tax ("NPAT"): NPAT Pre-MI (before minority interests) grew by 452.5% to VND1,895 billion in 1Q2022, compared to VND343 billion in 1Q2021. NPAT Post-MI (after minority interests) grew by 753.5% in 1Q2022 to VND1,596 billion compared to VND187 billion in 1Q2021.

• ◼ Balance Sheet Highlights: Net Debt2 to LTM (Last 12 Months) EBITDA reached 2.7x at end of 1Q2022 compared to 2.2x at the end of FY2021, mainly due to lower cash balance.

  • ◼ Cash and cash equivalent balance reached VND12,936 billion as of end 1Q2022, lower compared to end of FY2021, mainly due to the acquisition of additional stake in The CrownX, additional stake in Phuc Long Heritage and capital expenditures in 1Q2022.

  • ◼ At the end of 1Q2022, MSN's consolidated gross debt reached VND58,436 billion, an increase of VND258 billion compared to end of FY2021.

  • ◼ Net debt was VND45,500 billion at the end 1Q2022, compared to VND35,540 billion at the end of FY2021, mainly due to lower cash balance.

  • ◼ Capital Expenditure ("Capex") in 1Q2022 reached VND843 billion, compared to VND675 billion in same period last year.

FY2022 Forecast:

On a preliminary basis, subject to change and customary corporate approvals, Masan's FY2022 financial forecast expects consolidated net revenue to be between VND90 trillion and VND100 trillion, representing a growth of 22% and 36%, compared to VND74.2 trillion (excluding feed segment revenue) in FY2021. In FY2021, revenue contribution from only consumer businesses (excluding feed and MHT) was 68%, which is expected to improve to 85% in FY2022. NPAT Pre-MI is expected to be within the range of VND6.9 trillion and VND8.5 trillion, a growth of 82% to 124% compared to VND3.8 trillion in FY2021 (which excludes one-time gains/losses and feed segment contribution in 2021).

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The Crown X expects to deliver net revenue within the range of VND68 trillion and VND76 trillion in FY2022, up 17% to 31% compared to FY2021.

• ◼ WCM is expected to deliver net revenue within range of VND38 and 40 trillion in FY2022, up 23% to 29% YoY driven by revenue growth in existing stores and expansion of store count. Expansion of new formats, focus on fresh products, private label, and expansion of CVLife model will provide further growth drivers. Target to increase profitability through better supplier terms, lower logistics costs and improved distribution capabilities.

• ◼ MCH's net revenue is expected reach between VND34 and 40 trillion in FY2022, up 18 to 39% versus FY2021, driven by premiumization, growth of core categories, innovations, and expanded availability at WCM's location and other modern trade retailers.

1

MML spun off its feed business at the end of November 2021.

2 Net debt and cash and cash equivalents include short-term investments (such as term deposits) and interest-bearing receivables related to treasury activities.

• ◼ MML expects to deliver net revenue between VND5 and 6.5 trillion, up 11 to 45% YoY (excluding feed segment), driven by expanded branded pork and chicken product portfolio and increased distribution through WCM's locations. Profitability is expected to improve with higher utilization rates and growth in processed meat sales.

• ◼ MHT expects to deliver net revenue between VND14.5 and 15 trillion, up 7 to 11% on the back of continued improvement to tungsten market fundamentals in 2022 and strength in commodity markets in general.

• ◼ TCB: Masan believes the bank will be able to deliver consistent earnings growth and has reflected this view into its preliminary forecast for FY2022.

• ◼ New Businesses:

  • ◼ Phuc Long: Revenue expected to reach between VND2.5 and 3 trillion in FY2022, driven by expansion of network through own stores and WCM kiosks, and product portfolio expansion in tea and coffee categories.

  • ◼ Mobicast/Reddi: Target to reach 500K - 1 million subscribers in FY2022.

Commentary by Business Segments

The CrownX: Transforming from a traditional business into a disruptive, tech-empowered consumer organization

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Over the course of the first 4 months of 2022, Masan has achieved significant milestones to transform TCX from a traditional consumer-retail business into an O2 consumer tech ecosystem.

• ◼ Masan continued to fine-tune its mini mall concept which combines WinMart (grocery), Techcombank (financial services), Phuc Long (tea and coffee), pharmacy (health and well-being) and Reddi (telecom), all under one roof to better serve consumers and increase its addressable consumer wallet share from 25% to 60-80%. Initial success of mini mall concept has been evidenced by higher foot traffic and lower breakeven revenue for WCM locations. Masan plans to roll-out the concept nationwide.

• ◼ TCX aims to leverage AI and ML capabilities to drive cost efficiencies and business value across Masan's core business activities including retail store selection, demand & supply planning, product assortment, commercial sales & marketing and product development. Over the long-term, developing a true retail AI platform will enable Masan to deliver fintech solutions to the unbanked consumers, a personalized loyalty program, and convenient access to goods via online grocery and smart supply chain.

WCM: The only major retailer to grow store network in 1Q2022, with improving profitability

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1Q2022 Revenue Highlights: WCM delivered VND7,297 billion in net revenue for 1Q2022, up 0.8% YoY and opened 109 new stores. 1Q2022 net revenue was up 5.7% compared to 4Q2021, signaling strong growth momentum for remainder of FY2022. WCM was the only major retailer expanding store network YTD 2022. With nearly 200 stores already operational as of April 2022, management is confident of achieving its target of opening 1,000 new mini markets nationwide in 2022.

• ◼ Mini mall concept: Continued to show positive momentum with several key milestones achieved in 1Q2022 such as the expansion of an experienced management team to scale up the mini mall concept and focus on lifestyle marketing for young, savvy consumers. Pilot mini mall stores running in 5 locations during 1Q2022 witnessed, on average, a ~30% increase in foot traffic and helped to reduce breakeven revenue required per day per location from VND25 million/day to less than VND14 million/day. Mini mall stores in Tier 2 cities drew higher number of consumers opening bank accounts for the first time, underscoring the under-penetration of financial services in sub-urban and rural areas. Piloted pharmacy kiosks also continued to perform well, as average revenue/m2/month was more than 2x higher than the grocery segment in 1Q2022.

• ◼ Franchise model is a key part of WCM's strategy to scale-up its footprint and platform efficiently and drive the trend towards higher modern trade penetration in Vietnam. In 1Q2022, there were 2 operating franchise stores being piloted, with performance on par with stores operated by WCM in the similar region. WCM continues to identify the optimal business model and better understand how to best partner with the franchisees before nationwide rollout.

• ◼ Minimarket (WinMart+ or WMP) Highlights: WMP delivered net revenue of VND4,756 billion in 1Q2022, up 4.2% compared to 1Q2021. Growth in WinMart+ segment was due to higher number of stores, fresh-focus assortment, improved store concept and consumers preference for shopping in minimarkets. 2,708 minimarkets were operational as of end 1Q2022, out of which 2,138 were LFL stores. Revenue/m2 from LFL stores was down 4.4% YoY in 1Q2022, and down 1.2% compared to 4Q2021. Average bill size was up 18.0% compared to last year, though average bills per day was down 18.9%.

  • ▪ New Store Performance: 169 new minimarkets opened in first nine months of 2021 have ramped up as per expectations, with 59% of stores already delivering break-even store level EBIT. 296 minimarkets opened in 4Q2021 need more time to ramp up, though 33% had already achieved break-even as of end on 1Q2022.

• ◼ Supermarket (WinMart or WMT) Highlights: WMT delivered net revenue of VND2,510 billion in 1Q2022, down 5.0% compared to same period last year. Net

revenue for supermarket segment was up 24.5% compared to 4Q2021, due to COVID-19 related lockdowns being lifted and an early Tet holiday in 2022. LFL stores revenue/m2 was down 6.2% YoY in 1Q2022 and up 29.1% compared to 4Q2021. For supermarket located outside of Vincom Retail locations ("VRE"), revenue was down 4.2% YoY, compared to 9.5% down for supermarkets located inside. As a result, EBITDA margin for WMT supermarkets located outside of VRE shopping malls was 9.2%, 670 bps higher compared to stores located inside. Average bill size was up 17.4% compared to last year, though average bills per day was down 21.2% in the same period.

• ▪ New Supermarket Pilot Stores: with better layout, store design and focus on fresh products, continued to perform well and achieved on an average 7.9% growth in revenue/m2 compared to revenue/m2 for existing stores.

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1Q2022 Profitability Highlights: WCM delivered positive EBITDA margin of 2.2% in 1Q2022, improvement of 40 bps compared to 1Q2021, despite operating 496 new minimarkets and 2 new supermarket compared to 1Q2021.

• ◼ EBITDA margin improvement in 1Q2022 was driven by higher Total Commercial Margin ("TCM") for retail revenue, as negotiations completed with over 1,000 suppliers in 2021 continue to deliver results. TCM margin for 1Q2022 was 28.5%, increase of 260 bps compared to 1Q2021. 70 bps improvement in logistics costs as higher percentage of goods flowed through WCM's distribution centers. 50 bps deterioration in shrinkage expenses due to higher focus on fresh products.

• ◼ EBITDA margins in 2H2022 are expected to more than double compared to 1Q2022 margin, as Masan expands the mini mall concept, which improves foot-traffic and EBITDA margins at the store level.

MCH: 17% topline growth in 1Q2022; EBITDA margins strong at 22.7%

• ◼ 1Q2022 Revenue Highlights: MCH continued strong growth momentum to achieve VND6,448 billion in topline for 1Q2022, growth of 17.4% YoY. Driven by 6.8% growth in seasonings, 34.5% in convenience foods, 57.6% in processed meat and 14.8% in beer, offset by lower growth in home and personal care segment.

  • ◼ As the lockdown was over in October 2021 and Tet Holiday in 2022, revenue in 4Q2021 grew significantly. Despite a high base effect from 4Q2021, ~20% YoY growth in 1Q2022 is encouraging and bodes well for the remainder of 2022.

  • ◼ Modern trade ("MT") and urbanization strategy accelerated with 3% growth in MT sales in 1Q2022 YoY. MT sales contribution was 10% of total sales in 1Q2022 versus 10% in 1Q2021. Increased synergies with WCM were evident with sales of MCH products through WCM network growing 23% in 1Q2022 YoY.

  • ◼ Innovations contributed VND373 billion in revenue for 1Q2022 (5.8% revenue contribution), compared to VND365 billion in 1Q2021 (6.6% revenue contribution).

• ◼ 1Q2022 Category Highlights:

  • ◼ Seasonings: Category delivered VND1,918 billion in revenue for 1Q2022, up 6.8% YoY. Contribution to overall MCH sales was 30%. Premiumization continues to be a key growth driver; 15.1% sales contribution by premium fish sauce versus total fish sauce sales in 1Q2022 versus 13.5% in 1Q2021. Revenue for fish sauce down 11.5% in 1Q2022 YoY due to the effect of earlier Tet holiday. Soya sauce, chili sauce, and granules grew by 24.7%, 79.8% and 4.4%, respectively. Granules has now become a strong growth driver for the seasonings segment, with revenue contribution of 10.0% to total category sales in 1Q2022.

  • ◼ Convenience Foods: Category grew 34.5% YoY in 1Q2022 and delivered revenue of VND2,067 billion, with contribution to overall MCH sales at 32%. Premium segment contributed 45.4% of category revenue in 1Q2022 while home meal replacements (HMR") contributed 10.5% of overall category revenue in 1Q2022. HMR category sales growing at a fast rate due to successful new innovations like Pho, Hu Tieu and Mien. Expect category to continue growing in double-digits as the core brands continue to gain share and new product launches continue to perform well.

  • ◼ Processed Meat: Delivered 57.6% revenue growth in 1Q2022 to achieve revenue of VND399 billion. Contribution to overall MCH revenue increased to 6.2% in 1Q2022 versus 4.6% in 1Q2021. "Ponnie" brand leads the market in the