Z

GROUP 6
• PHAM HONG HANH
• NGUYEN THI MINH TRANG
• HA MINH NGOC
• PHAM VAN KHANH

BAYCÙNG GIẤC MƠ HOA 4 BÁO CÁO THƯỜNG NIÊN 2018 5

 PRESENTING CONTENT

• VIETJET INTRODUCTION (Hanh)

• FINANCIAL PERFORMANCE (Trang)
• BUSINESS MODEL + VALUE CHAIN (Khanh)
• COMPETITOR LANDSCAPE (Ngoc)
• SALE & MARKETING EFFORT (Ngoc)
• CSR PROGRAMS (Ngoc)
• RECOMMENDATION (Hanh)

BAYCÙNG GIẤC MƠ HOA BÁO CÁO THƯỜNG NIÊN 2018

Business activities
Vietjet focuses on five main business activities:

New Age Airline model low-cost airline business model Founded in 2007, with the first flight taking off in 2011, after 7 years of
operation, VJC has become the second biggest aviation company in
Vietnam.

AIR
TRANSPORT
ANCILLARY
SERVICES
DIRECT SUPPORTING
SERVi CES TO AIR
TRANSPORT
AVIATION
EDUCATION AND
TRAINING
AIRCRAFT
TRADING Geographic coverage
Vietjet has expanded the route network throughtout Southeast Asia and Northeast Asia
· Ground · For pilots. · Buy and sell
· Seat selection.
· Domestic and
international · Pre-ordered food. operation · For cabin crews. aircraft.
· Lease and
with 139 routes, including 44 domestic routes and 95 international routes. We cover over
services · For technicians
passenger, cargo · Baggage cargo leaseback.
and others.
transportation. transportation. · Technical
support. · Aircraft 70 destinations in 14 countries including China, South Korea, Japan, Hong Kong, Macau,
· Promotion, · Duty-free transfer.
shopping. · Routine and
tourism.
· Travel insurance. non-routine Taiwan, Indonesia, Malaysia, Myanmar, Thailand, India, Cambodia and Singapore.
· Shuttle bus maintenance,
between airport overhaul.
and central city. · Spare parts
supply services.
· Fuel provision.
HISTORY AND AWARDS member
Vietnam Japan

· Opened flight routes to Tokyo and

100
· Signed an agreement to
purchase 200 aircraft with
one of the largest aircraft
· Signed an agreement to
establish an Airbus Training
Center in Vietnam.
· Signed a contract for purchasing
20 new A321 CEOs and NEOs
from Airbus.
· Officially became a member of
International Air Transport
Osaka, Japan.
· Signed MOU (Memorandum of
Understanding) for long-term
engine maintenance service with
CFM International. Signed a
USD 7.3 billion agreement with
Safran - CFM, GECAS in
France.

2018
manufaturer Airbus. Association (IATA).
· Received the first aircraft · Inaugurated nine new domestic
from the firm order placed to

Airbus.
· Launched Vietjet Cargo Joint
Stock Company.
· Launched Thai Vietjet Joint
Stock Company.
· Inaugurated five new
domestic routes and two
2019
routes and two new destinations
including Can Tho, and Hue.
· Inaugurated international routes to
new destinations including China,
Taiwan, South Korea, and Malaysia.
· Inaugurated new routes between
Vietnam – Japan.
· Reached the milestone of 100

2016
new destinations including million domestic and
Thanh Hoa, and Can Tho. international passengers.
· Inaugurated three new · Expanded flight network with

· Launched Vietjet’s new slogan
“Enjoy Flying”.
· Expanded domestic flight
network to six new
2017
international routes to 139 routes including 44 domestic
Singapore, South Korea, routes and 95 international
and Taiwan. · routes. The fleet was upgraded
to 78 aircrafts with young average

2014
destinations including Vinh, Da · age. Signed a purchase contract for
· Listed company’s shares on Ho
Nang, Nha Trang, Da Lat, Phu 20 new generation A321XLR
Chi Minh Stock Exchange
Quoc, and
Hai aircrafts with Airbus.
Obtained an Air Operator · (HOSE). Groundbreaking
Phong. · Officially became a member of
Certificate Ceremony of construction of
the Japan Business

2012
No. 01/0103018458. Vietjet Aviation Academy project.
Federation - Keidanren.

2015
· Attended APEC Da Nang Summit.
· Inaugur ated new routes to
100
2007
increase the total number of million passengers
domes tic routes to 38.
· Inaugurated new international

2013
· Inaugurated Vietjet Training Center. routes to many destinations
· Achieved IATA Operational Safety in Thailand, China, Cambodia,
Audit certificate from International Taiwan, South Korea,

2011
Launched the first commercial
flight from Ho Chi Minh City to Ha
Noi on 24 December.
· Implemented ForYourSmile program for
customer services quality management.
· Inaugurated the first international route from
Ho Chi Minh City to Bangkok (Thailand).
· Inaugurated four new domestic routes and
two new destinations including QuyNhon,
and Buon Ma Thuot.
Air Transport Association (IATA). Myanmar increasing the total
· Inaugurated nine new domestic number of international
routes and three new destinations routes to 44.
including Dong Hoi, Chu Lai, and
Pleiku.
· Inaugurated two new international
routes and one new destination to VJ
Yangon (Myanmar). C

HCM Ha Noi HCM Bangkok

 FINANCIAL PERFORMANCE

Tianjin SOU
TH JAPAN
KOR Tokyo
CHI EA Osaka
NA Wuxi Busan
Number of customer globally Number of flights plunged Chengdu Wuhan
Seoul

Chongging Shanghai
Wuhan
in 2020, dramatically Chengdu
Xian
Hefei Ningbo
impacted to Vietnam’s Kuming Changsha
Nanjing Wuxi
Guiyang Taipen | Tainan
aviation companies Hangzhou
Kaoshiung | Taichung
VIETNAM Ha
TAIWAN
Noi MAC
MYANMAR
AU HONGK
Chiangmai Thanh Hoa
Hai Phong
LA Vinh Dong Hoi
ONG
Yangoon OS Hue
Da Nang
Bangkok Chu Lai Hoang Sa

THAIL Pleiku Quy

Nhon
AND CAMBO
Siem Riep
DIA Buon Ma ThuocPhu Yen

Pnom Penh Da Lat Nha Trang

Phuket Phu Quoc Ho Chi Minh

Number of flights in Vietnam 2019-2020 Can Tho

MALAY
Truong Sa

SIA
Kuala Lummpua
Why Vietjet? one of the
few airlines in the world SINGAP
ORE
that didn’t lay off
employees but still
operated profitable in INDONE
SIA Bali

2020
FINANCIAL PERFORMANCE

MARKET CAP (Billion VND) Vietnam's Market Share- 2020 (%)

90000 Vietnam Airlines Vietjet Bamboo Airway Others
78272
80000
11%
70000 65534
59615 59485
60000
51780 12%
Vietjet
50000 45093 Vietnam Airlines 40%
41023
40000 51400

30000

20000

10000 Perception Coefficient Operating Margin

0 20.00%
4.00 38%
2017 2018 2019 2020 3.60 13.58%
15.00% 12.10%
3.50 8.27%
10.00%
3.00 5.00%
4.16% 5.32% Vietjet
0.00% 3.72%
2.50 Vietjet Vietnam Airlines
2017 2018 2019 2020
Vietnam Airlines -5.00%
2.00
1.55 -10.00%
-15.01%
1.50 1.22 -15.00%
1.11 1.01
1.00 -20.00%
0.71
0.46 0.52 -25.00%
0.50
-30.00% -26.88%
0.00
2017 2018 2019 2020

 Both “Perception Coefficient” & “Operating Margin” of Vietjet are better than Vietnam Airlines (largest
aviation company in Vietnam) → Vietjet is creating more value and more efficient than Vietnam Airlines in
turning sales into profits
 However, Vietjet needs to try more to avoid the negative effect from competition and epidemic (operating
margin is decreasing, especially in 2020)
FINANCIAL PERFORMANCE
CASH CONVERSION CYCLES VIETJET
VIETJET 2017 2018 2019 2020
(CCC)
140.00
Market Cap (Billion VND) 51.400 59.485 78.272 65.534 118.15
120.00

Sales or Revenues (Billion VND) 42.303 53.577 50.603 18.210 100.00

CCC
80.00
Perception Coefficient 1,22 1,11 1,55 3,60
60.00

Net Earnings (after tax) 5.074 5.335 3.807 70

40.00 32.18

20.00 12.49 11.48 12.30

Operating Margin 13,58% 12,10% 8,27% -15,01%
0.00
CCC 11,48 12,30 32,18 118,15 2016 2017 2018 2019 2020

CCC in detail: Inventories/ Receivable/ Payable (VIETJET)

180.00 168.47

160.00
• CCC of Vietjet is high and
140.00
increasing → It means:
120.00 Vietjet is taking more and
Inventories
100.00 Trade accounts receivable more time to collect
80.00
Trade accounts payable
Receivables, Pay its bills
64.71 and Sell its inventory,
60.00
especially for
37.95
40.00 Receivables→ need to be
14.39
20.00 15.91
5.42
13.83 14.84
10.17 improved
4.10 5.05
0.00
2016 2017 2018 2019 2020
BUSINESS MODEL

Key Partners Key Activities Value Propositions Customers Customer

Relationships segments
- Airbus and Boeing Provision of passenger Vietjet is keen on its brand Vietjet has
- Suppliers in the transport services positioning as a New Age Airline: Distributor Channels successfully
aviation value chain: offering competitive fares with attracting new
companies operating products and services of customer groups
in aircraft lease, Key Resources: outstanding quality, demonstrating - agents located both local and from other types of
airports, aviation core values: Safety – Fun and abroad. transportation (bus,
service providers Friendly - Affordable price - - Key Channel: Online channels rail, etc). 30 % of
• Aircraft: New, morden & (websites, mobile booking
- Shareholders, young Punctuality. Vietjet’s mission is to Vietjet’s passengers
investors, domestic make air travel become the application etc) the highest is first time air
• Qualify staff growth rate and be the largest
and foreign financial • Advance technology popular means of transportation in travellers
institutions Vietnam and in the world, and proportion of revenue in
• Develop E-commerce Vietjet’s sales channels
bring innovation to aviation
services

2020 Cost Structure Revenue Streams

• Cost control
• Major expenses : fuel, aircraft rental, flight operation,
ground handling, maintenance and technical expenses,
accounting for a large proportion of the Company’s cost
structure.
• Vietjet’s Cost per Available Seat-Kilometer (CASK) is
currently the best in class, capable of competing with
well-known airlines in regional and global markets.
• Vietjet’s major stream of revenue comes from : passenger transportation, charter flights and
aircraft wet lease, air freight and ancillary activities.
Presenter: Nguyen Thi Thuy Linh
• Ancillary revenue is generated from luggage services, seat selection, hot meal services, duty-
free goods and inflight advertising. Ancillary revenue with good profit margin is seen as one
of the major sources of revenue in the next stages of development.
• Vietjet also has strategies to provide passengers with diverse in-flight services in order to
increase ancillary revenue per passenger and increase the proportion of ancillary revenue in
total annual revenue
VALUE CHAIN
INPUT CORE VALUE BUSINESS ACTIVITIES SUSTAINABLE VALUE

PASSENGERS
As a low-cost carrier, Vietjet offers cheap
AIRCRAFT
LABOR flights to many passengers, meeting the needs
MANUFACTURERS · High-skilled engineers and of traveling, tourism, cultural exchange and
technicans. education.
· Experienced pilots with many
flight hours.
Young and active cabin crew.
·
BRAND AND POSITION
Vietjet continues to maintain its leading
position in the domestic market and expand
AIRPORTS its efficient international flight network
throughout Southeast Asia, Northeast Asia,
etc.
FLEET
· New generation.
· Modern and fuel efficient.
- PASSENGER AND FREIGHT AIR
TRANSPORT ENVIRONMENT
- ANCILLARY SERVICES
Along with the new-generation fleet, which helps
- AVIATION TRAINING
FUEL saving 15% - 30% of flight fuel, Vietjet also
- TECHNICAL SERVICES implements the SFCO2 program to offer specific
SUPPLIERS solutions and instructions
- COMMERCIALAIRCRAFTTRADING in flight control, optimizing the capacity of
MANAGEMENT SYSTEM
aircraft engines and reducing fuel
· Apply advanced software
consumption.
solutions for flight management,
operations and maintenance such
as AMOS, AIMS, AirFase,
Intellysis, etc.
COMMUNITY
PARTS As a technology pioneer, Vietjet has
SUPPLIERS AND trained thousands of employees
MAINTENANCE with industry knowledge and shared
professional skills and experience; career
SERVICE orientation for many young generations.
PROVIDERS Vietjet also attaches itself to the mission of
SHAREHOLDERS sharing love, bringing new good values to
· Strong financial support, society during the
accompany Vietjet in early stages development journey, enhancing position of
till sustainable long- term the country and Vietnamese people.
development.
INVESTORS
 ATL BTL

R&D AVIATION
PURCHASING AVIATION DISTRIBUTION
AND SUPPLIER LOGISTICS SERVICES

• Airports • Ticket agent

Manufacturer Supplier Vietjet



Thai Vietjet • Aviation • Selling tickets
STAKEHOLDER

Manufacturer 
VietJet Cargo • Academy

Japan Airlines
online

Qatar Airways • Leasing Company

Other Joint Venture • Aircraft
Companies (JVs) are in the •
process of establishment ...
Insurrance
• Logistics

• Research, contribute to • Investing in

• Selecting suppliers • Passenger
The main activities of Vietjet

the process of updating infrastructure for flight Focus developing

who have quality transportation, freight operations at major
training training
assurance production and other aviation
distribution
documents, operating airports.
documents, and
and consumption services .. • Training to provide channels through
value chain

models towards • The partnership human resources in the website and

technical maintenance
sustainability. contract with Japan the aviation industry.
procedures with
• Supplying aircraft, the global
aircraft manufacturers. Airlines, Qatar • Provide technical
equipment, spare Airways, the airline support services. distribution
• Towards research and
development of
parts and services to joint venture project • Business and rental of systems (GDS).
other airlines. to expand the aircraft.
aerospace technology
• Supply of flying fuel. network of routes to • Fuel supply E-
(Training Center) ...
countries outside commerce towards the
Asia. aerospace ecosystem BÁO CÁO THƯỜNG NIÊN 2018 41

concept.
PESTEL ANALYSIS
Political
• Stable political environment in Vietnam
Social
• Tourist travel is part of life of middle class
• Young population with travell lifestyle trends
• E commer habit using more and more popular make air ticket book
very easily
Presenter: Nguyen Thi Thuy Linh
Legal
The Civil Aviation Law of Vietnam in 2006 has marked the significant
changes in aviation regulations in Viet Nam:
• Regulation on the establishment of private airlines and ownership
and operation of private aircraft
• Separating the State management functions from business functions
• Enhancing the protection of consumers’ interests
Economical
• GDP increase >7% in 2018-2019 (fastest in Sounth East Asia)
If GDP 1% the rate of revenue of airline incrase 1.5-2%
• Vietnam joined AFTA (Asian Free Trade area)
• Covid-19 pandemic affects
• Exchange rates tend to increase yearly
Technological
• Vietjet currently uses advanced software solutions for flight management and
operation management such as AMOS, AIMS, AirFase, SFCO2, Intellysis, etc.
• Platform for e-commerce and will continue to invest in developing ERP solutions
for corporate administration and operation under the “E-Company” model.
• low cost but with superior service quality to meet 4.0 industrial standard and
serve the needs of diverse customers
Environmental
• Airport belongs to government
• Biggest competitor is Vietnam Airlines (state onwner)
• VABA (Vietnam Aviation business association)
 • Vietnam has emerged as one of the world’s fastest growing markets
The total Vietnamese aviation market (including international traffic) has more than doubled in size, from 25 million
passengers in 2012 to 52 million passengers in 2016

S • VJ has quickly captured significant market share

In 2016 VJ captured a less than 10% share of international market and 27% share of the total Vietnamese market
• Strong local brand and distribution

• Low fares and poor yield management

Fares are unlikely to increase anytime soon, given the intense competition and capacity situation.
• Overload
W “Delay/Sorry” Airlines
• Sale and leasebacks
SWOT Airlines profiting from sale leasebacks end up paying higher than average rental rates as their aircraft age, and are saddled
with high one time costs when it comes time to return the aircraft.

• Tourism and international growth

• Network traffic 
O Vn  is well positioned geographically for passengers travelling between Southeast and Northeast Asia.

• Supporting from government

• New competitions
• Slower domestic growth VN domestic market is unlikely to continue growing at the high double digit rate (20%
T to 30%) experienced from 2012 to 2016. 
• Airport congestion due to limited capacity of Airport
• Tropical weather usually impact to quality of flights
COMPETITOR LANDSCAPE

Operation year Dec 2011 1993 2019

No. of Domestic
Routes 44 33 22
No of
International 95 60 40
Routes

No of flight in
2019 145.870 146.000 13.000

Load factor
(2019) 88.06% 80.9% 90%
COMPETITOR LANDSCAPE

Low cost carrier Modern carrier with an internationally Hybrid, mixed between low cost
Brand Positioning Dynamic and young crew recognizable brand characterized by carrier and traditional carrier
Vietnamese traditional culture

22 to 40, who enjoy the flight with Mainly customers for business Customers for vacation purpose,
Targeted customers high desire in time saving, service purpose and people who expect good connecting flight with resorts of the
quality and price conscious. in-flight services owner company (FLC)

Competitive price with outstanding 5 star service airlines Affordable price and friendly service
Message service quality

Facebook fanpage 5,4 million followers 2,1 million followers 0.2 million followers
 SALE & MARKETING EFFORT
BÁO CÁO CỦA BAN ĐIỀU
HÀNH

MARKETING ANDSALE

SKYBOSS–STYLE OFTHE LEADER
• Priority check-in procedures
• Luxurious lounge room
• Priority seats on aircraft
• Tickets are subject to change of schedule
• Car shuttle Skyboss guests to the plane
• Free food and drink on the flight
• Free 30 pounds of checked baggage and 1 set of golf clubs.
VietJet has main distribution channels
including
• Internet and mobile phones;
• Air ticket agent;
• VietJet Ticket Office;
• PBX VietJet customer service;
• Retailers and banks linked to more than
3,000 outlets
• GDS international distribution channel
BRANDING: image of a new-generation
low-cost airline. fun, young, and vibrant
TARGET: young and dynamic passengers.
TACTICS: aggressive marketing tactics that
created controversies, besides promotional
packages, sponsorships contracts, and
massive advertising on media platforms
• Golden hours for promotion each day “12h
rồi Vietjet thôi”
• Campaign “Kết nối yêu thương”
• Campaign “Fly for love”
 CORPORATE ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

June 2019, Vietjet joined

and became one of the
first members of the
344,16 289 150
350,000 9 300 800,000 139

300,000 700,000 c. Fuel saving results

250 600,000 120
250,000
200,000 161
200 500,000
189 20,000,000 150,000
400,000 90
150,000 124,775
150 300,000 “Say no to plastic waste 120,000
100,000 15,000,000
110 200,000 60 movement”
50,000 88 100 90,000
93,170 100,000
0 47,696 10,000,000
44
50 0 30 60,000
17,629 12 16
36,25
6 1,056 9,568 5,000,000
30,000
0 0
Flight techni- Groud Others Top Middle- Staff
Pilots Flight
manage level 0 0
attendants cordinator cians service
rs managers
June 2019, Vietjet joined 2017 2018 2019
employees
and became one of the
first members of the C02 reduction per (tons)
Average training hours Total of traning Average training hours Total of traning Union against plastic
per employees in 2019 hours in 2019 per employees in 2019 hours in 2019 Fuel saved per (kg)
waste which was chared
Traning hours by employees Training hours by level by Prime Minister Number of flights analysed
Nguyen Xuan Phuc.
RECOMMENDATION
· Increase growth of domestic market share and
01. efficient expansion of international routes.
· Ensure routes are profitable.
• Strengthen the position
of leading domestic air
05. · Commit flight safety according to IOSA with leading
indicators of Asia Pacific airlines
Commitment to high
Firmly expand and · Maintain high · Maintain LCC aviation operational standards. International standards of
· Implement cost-saving solutions. transport company
develop domestic and standards for quality, quality, safety and security
· Ultilize huge amounts of data for airport service • Increase High Customer
prepare for Service Levels as Key safety and security
quality
international flight · Prepare resources to catch up when the market Ingredients for Success
recovers (cash flow, aircraft, flight crew)

·
02. 06.
Increase brand value on the basis of
outstanding service quality (focusing on Continue to develop
loyal customer groups · Optimize operation through scientific Optimize business costs
Strengthen ground service, Skyboss and passenger cabin), Optimize organization of flight network, fleet and flight and business efficiency
Vietjet Air’s operating safety and ensuring the press has and enhance financial operation
brand crew.
correct information about VJ activities . performance
· Build brand awareness and reputation in
providing high quality services.

Continue standardizing and automating · Improve the competencies of executive

·
03. operational processes, 100% of operations
activities are based on advanced processes.
Apply Real-Time
Performance Management
07. management staff and the ability to work in
teams. Continue to implement a strategic project
Build an international
and professional working
Complete operating · Organize and operate the risk management Concentrate environment, and
system, regulations Platform as Complete on human on human resources, implementing the Aviation
process of operation system. Strict cost control. Solution for internal and resources Academy model. encourage creativity and
· passion from employees
Build and implement a comprehensive digital external control · Strengthen recruitment and training programs,
strategy. Complete IT projects for Operation, continuing to well implement the company’s
Finance, Human Resources. culture and developing succession team.

· CCC of Vietjet is high and increasing → It means: • Increase e-commerce ·

04. Vietjet is taking more and more time to collect
Receivables, Pay its bills and Sell its inventory,
site for quick booking
and payment
Focus improving especially for Receivables→ need to be improved
CCC Ratio • Offering a discount to ·
those who pay in
advance and on
ecommerce site
 THANK YOU FOR YOUR ATTENTION
BÁO CÁO TÀI
CHÍH

BAYCÙNG GIẤC MƠ HOA 142 BÁO CÁO THƯỜNG NIÊN 2018 143