Slide 1: Digiworld Investor Presentation August 2024
DIGIWORLD Investor Presentation August 2024 Ms. Le Kha Tu – IR Manager Email address: ir@dgw.com.vn Contact number: (+84) 934 053 755
Slide 2: Introduction: Vision, Executive summary
Introduction o Vision o Executive summary Company overview Business overview Growth drivers Financial overview
Slide 3: Vision
Vision Digiworld is a billion-dollar company recognized for its role in the elevation of Vietnam with everyone in the company well-rewarded and fulfilling their life purpose. 3
Slide 4: Executive summary
Executive summary Company name Digiworld Corporation Digiworld is the leading Market Digiworld is a distributor of 30+ Expansion Services provider in world-class technology brands Ticker DGW (HOSE) Vietnam Year of Establishment 1997 Digiworld provides top-notch Our core strengths are in 5 value- Mar
Slide 5: Company overview
Introduction Company overview o Business structure o Board of directors o Shareholder structure and commitment to minority shareholders o Cash dividend, M&A strategy o ESG & Sustainability Business overview Growth drivers Financial overview
Slide 6: Business structure
Business structure Market Expansion Services (MES) Market Analysis Full distribution Sales and marketing Digital After-sales 4PL Market Creating Registration Warehouse Channel Trade Brand E-distribution Customer Importation Distribution research plan and access service solutions execution strategy s
Slide 7: Board of directors
Board of directors Doan Hong Viet Dang Kien Phuong To Hong Trang Chairman Member and General Director Member and Deputy General 1993-1997 1989-1994 Director Lien Phuong Co., Ltd. Viettronic Thu Duc Co., Ltd. 1997-2000 IT Head Accountant ANSV Telecommunication Co., Ltd. 1997-2003 1995-1997 Project As
Slide 8: Shareholder structure and commitment to minority shareholders
Shareholder structure and commitment to minority shareholders Shareholder structure Commitment to minority shareholders Major shareholders (as of 31 May 2024) No. of shares % We are committed to creating value for minority shareholders and acting in Created Future Co., Ltd. (*) 53.5m 32.0 their best
Slide 9: Cash dividend, M&A strategy
Cash dividend, M&A strategy Cash dividend policy M&A history Cash dividend payment 167.1 Investment made: 2017 Investment made: 2017-2024 90.6 Digiworld’s share: 90% (indirectly) Digiworld’s share: 49%-90% 43.0 44.2 Business description: CL is an Business description: Managing 20.9 FMCG distributor
Slide 10: ESG & Sustainability
ESG & Sustainability Awards Regulation on conflict of interest Purpose: for 8 consecutive years 1. Deliver integrity in our business operations, minimize financial (from 2016-2023) and resource losses that could affect our reputation. 2. Ensure clear understanding among our employees to avoid any vi
Slide 11: Business overview
Introduction Company overview Business overview o Product portfolio o Value chain: One-stop solution o Distribution network (ICT) o Partnership with large companies (ICT) o Omnichannel fulfilling (CGHC) o Geographic footprint Growth drivers Financial overview
Slide 12: Product portfolio
Product portfolio Laptops Tablets Laptops & tablets Mobile phones Server – PC Storage devices Network & security solutions Internet of Things Office equipment Large products Small products Home Appliances Washing powder Detergent Dishwashing Toothbrush Toothpaste Healthcare Products Food & Beverage
Slide 13: Value chain: One-stop solution
Value chain: One-stop solution Brand owners DGW’s Market Expansion Services (MES) Retailers Market analysis Importation, Research & Marketing Sales and Sourcing Manufacturing & marketing warehousing After-sales service Retail development execution distribution planning logistics Single service distr
Slide 14: ICT – Distribution network
ICT – Distribution network Suppliers Customers Consumers Mom & pop shops 4,000 points of sale Consumers (TCR IND) Mobile phones Network operators Online retailer Small to Medium Businesses and Small Office – Home Office Laptops & Tablets Telecom retailer chain (TCR chain) 2,000 stores Consumer Enter
Slide 15: ICT – Partnership with large companies
ICT – Partnership with large companies VND bn o The biggest ICT Distributor ICT Revenue breakdown o Largest distribution network Achievement o CAGR 28% 25,000 o Revenue 5x in 10 years o Inventory management with ERP from 2010 Key success 20,000 o Receivable Management 14% 15% factors o Trend catchin
Slide 16: Consumer Goods & Healthcare – Omnichannel fulfilling
Consumer Goods & Healthcare – Omnichannel fulfilling Suppliers Customers Consumers Consumer goods General trade Consumers D.Ps: 6,000 active selling outlets Modern trade 1,600 stores Consumer goods E-commerce Marketplace Affiliates General trade – OTC 4,000 active selling outlets Modern trade – key
Slide 17: Geographic footprint
Geographic footprint Hanoi Branch ▪ Office: Dong Da, Hanoi o Employees: ~55 people DGW’s Office ▪ Warehouse: Dong Anh, Hanoi o Capacity: 9000 m3 o Total area: 7,500 m2 o SKU: 900 o Employees: ~50 people ▪ DCare: Dong Da, Hanoi ▪ DCare: Le Chan, Hai Phong Danang Branch ▪ Office: Thanh Khe, Danang o E
Slide 18: Growth drivers
Introduction Company overview Business overview Growth drivers o Growth strategy o Competitive landscape in CGHC o New business & Investment projects Financial overview
Slide 19: Growth strategy
Growth strategy Brands/Suppliers Private label (In-house/ M&A) OEM: - Ready to drink products - Household electrical appliances - Other products Office equipment Home FMCG, Medicines and Industrial Mobile phones Laptops & Tablets F&B Appliances medical equipment Equipment D2C Online/ Offline Consume
Slide 20: Competitive landscape in CGHC
Competitive landscape in CGHC Small distributors/ Family Multinational companies companies Pros Pros ✓ Flexible operation to suit Unique competitive advantages ✓ Strong brand awareness, long experience customer requirements ✓ Thorough local understanding ✓ Strong financial capabilities & ✓ Great tra
Slide 21: New business & Investment projects
New business & Investment projects Adding new brands to existing channel M&A deal Home Appliances Business description: pawn lending services, trading secondhand products, payment services, financial consulting. Office equipment Services: ➢ Providing technical solutions for various types of electron
Slide 22: Financial overview
Introduction Company overview Business overview Growth drivers Financial overview o Segment financials o Income statement summary and key margins o Balance sheet summary and key financial ratios o Earnings guidance
Slide 23: 2023 business results
2023 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND bn VND 25,000 +5% 22,059 -15% 18,818bn 10,759 20,000 20,972 9,857 18,818 15,000 7,899 8,067 7,027 10,000 5,906 3,3203,441 +4% -48% 2,617 Net profit 5,000 657 684 354 223 556 728 376 397 676 VND - 12M202
Slide 24: 2Q24 business results
2Q24 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND VND bn 2,703 5,008bn -6% +9% 2,1902,221 4,910 5,008 1,568 4,596 1,342 1,130 876 728 858 Net profit -39% +7% 137 83 89 108 166 199 93 170 162 VND 2Q22 2Q23 2Q24 Laptops & Tablets Mobile phones Office Equ
Slide 25: 6M2024 business results
6M2024 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND bn VND 25,000 6,583 9,993bn 20,000 15,000 4,663 +17% 4,089 3,382 11,919 -28% 2,4362,707 10,000 9,993 8,556 -53% +12% 1,6181,4101,868 Net profit 5,000 348 162 181 172 331 409 164 290 346 VND - 6M2022 6
Slide 26: Income statement summary and key margins
Income statement summary and key margins Income statement summary Profitability ratios Consolidated 9.1% 8.6% VND (bn) 2Q23 2Q24 6.5% Total revenue 4,596 5,008 Cost of goods sold (4,203) (4,550) 3.6% 2.5% 2.1% Gross profit 393 458 2.8% Interest expense (45) (21) 1.9% 1.8% Selling expense (242) (286)
Slide 27: Balance sheet summary and key financial ratios
Balance sheet summary and key financial ratios Balance sheet summary Leverage ratios Consolidated VND bn VND (bn) 2Q23 2Q24 3,500 94% 110% Cash and cash equivalents 963 834 83% 3,000 90% Investments and advances 61 12 2,500 2,650 2,808 70% 2,553 Total assets 6,560 7,337 2,000 50% 2,125 1,500 30% Tot
Slide 28: Earnings guidance
Earnings guidance 2024 Business Plan 2024E Revenue breakdown Net revenue (VND bn) 2024 2023 (*) YoY Laptops & Tablets 6,550 5,906 +11% -16% Mobile phones 8,700 8,067 +8% 26,300 +38% -6% 23,000 Office Equipment 5,500 3,441 +60% 22,028 20,923 20,000 Home Appliances 1,050 728 +44% +23% 15,200 Consumer
Slide 29: Thank You!
THANK YOU! Ms. Le Kha Tu – IR Manager Email address: ir@dgw.com.vn Contact number: (+84) 934 053 755