VinFast Auto Ltd. Q1 FY2025 earnings call

• Deliveries: Q1 '25 EV deliveries exceeded total first half of last year; 2-wheelers saw strong growth. - EV adoption: Varying progress in key markets; Vietnam led SE Asia in EV penetration. - Factory timelines: New factories in Vietnam, India, Indonesia expected to start operations this year, producing more affordable models. - Bus market: Started delivering buses in Vietnam, expect to deliver ~1,000 in Vietnam this year and expand to other markets. - Product lineup: Expanding into commercial vehicles, exploring bus opportunities in Asia and Europe, and preparing for India launch with CKD factory opening in July.

Net revenue for Q1 2025 was USD 657 million, an increase of 150% year-over-year. Cost of goods sold was USD 888 million, up 113% year-over-year but down 25% quarter-over-quarter. Gross margin was minus 35% in Q1 2025, improved from minus 59% in the same period last year. SG&A expenses totaled USD 151 million, a 23% year-over-year increase but 43% quarter-over-quarter decline. R&D expenses were USD 81 million, down 22% year-over-year and 25% quarter-over-quarter. EBITDA was minus USD 396 million with an EBITDA margin of minus 60%. Net loss was minus USD 712 million. Deliveries: EVs delivered 36,330 (296% y-o-y increase, 32% q-o-q decline); 2-wheelers delivered 44,904 (473% y-o-y increase, 44% q-o-q rise). B2C deliveries accounted for over 70% of total sales for 3 consecutive quarters through Q1 '25.

• Target to double vehicle deliveries in 2025. - Next-gen products: Upcoming EC lineup with enhanced tech and cost efficiency. - CapEx: Plan to spend over 50% of 2025 CapEx on R&D, remaining on CKD facilities in Asia. - Profitability: Certain vehicle models with sufficient scale are already gross profit positive, aiming for profitability with volume growth and cost optimization.

• Macro-economic and trade uncertainties. - Regulatory changes affecting EV adoption. - Market adoption challenges, particularly in regions where EV penetration is nascent.

Q: Could you remind us of the timeline on new factories in Vietnam, India, Indonesia and their impact on production capacity?

A: All facilities expected to start operations this year; majority of vehicles still manufactured in Vietnam, new facilities for more affordable models.

Q: What are key catalysts for growth in 2025 and beyond?

A: Scaling operations, accelerating product development, cost optimization.

Q: Timing and rationale for closing D2C showrooms in North America and Europe?

A: Transition to dealer-based model to improve efficiency; long-term strategy to optimize footprint.

Q: Steps to reduce BOM costs?

A: Collaborative engineering model with suppliers, simplifying design and sourcing for scale.