Digiworld Corp. · HOSE:DGW
Digiworld — Investor Presentation (November 2023)
29 slides from Digiworld's investor presentation, November 2023
Slide 1: Digiworld Investor Presentation November 2023
DIGIWORLD Investor Presentation November 2023 Ms. Le Kha Tu – IR Manager Email address: ir@dgw.com.vn Contact number: (+84) 934 053 755
Slide 2: Introduction
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 2023) 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 90.6 Digiworld’s share: 90% (indirectly) Digiworld’s share: 49% 43.0 44.2 Business description: CL is an Business description: Managing 20.9 FMCG distributor with 16 y
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 Beverage and liq
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 42% 25,000 o Revenue 5x in 10 years o Inventory management with ERP from 2010 Key success 20,000 o Receivable Management 13% 14% 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 Healthcare Affiliates General trade – OTC 4,000 active selling outlets Modern t
Slide 17: Geographic footprint
Geographic footprint DGW’s Office Hanoi Branch ▪ Office: Dong Da, Hanoi o Employees: ~55 people ▪ 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 Danang Branch DGW’s Warehouse ▪ Office: Thanh Khe, Danang Paracel o Emplo
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: - 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 Consumer s Currently In future 19
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 Mobile phones Consumer goods Home Appliances Office equipment 21
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: 3Q23 business results
3Q23 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND VND bn +59% 5,413bn 6,065 -11% 2,4572,398 2,399 5,413 1,854 1,774 1,381 3,825 908 907 Net profit +68% -43% 440 205 163 123 96 171 107 180 102 27 VND 3Q21 3Q22 3Q23 Laptops & Tablets Mobile phones Office
Slide 24: 3Q23 vs. 2Q23
3Q23 vs. 2Q23 Net revenue and net profit (QoQ) Revenue breakdown QoQ Net revenue Net profit VND bn VND bn 2,398 6,500 2,190 5,500 110 1,774 4,500 5,413 90 102 4,596 1,342 3,500 70 83 2,500 50 907 -2% 728 1,500 30 166 163 170 171 500 10 Laptops & Tablets Mobile phones Office Equipment Home Appliances
Slide 25: 9M2023 business results
9M2023 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND bn VND 25,000 +38% 8,982 13,969bn 20,000 17,984 -22% 6,360 15,000 5,839 5,863 13,969 10,000 13,050 4,559 4,834 -50% 2,526 2,317 +60% 1,694 Net profit 5,000 330 528 264 154 377 494 283 260 461 VND - 9M
Slide 26: Income statement summary and key margins
Income statement summary and key margins Income statement summary Profitability ratios Consolidated 7.2% 7.1% 6.7% VND (bn) 3Q22 3Q23 Total revenue 6,065 5,412 3.7% 3.5% Cost of goods sold (5,659) (5,028) 2.4% Gross profit 406 385 2.8% 3.0% 1.9% Interest expense (22) (31) Selling expense (150) (213)
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) 3Q22 3Q23 106% 4,00 0 3,500 110% 83% Cash and cash equivalents 987 1,562 3,50 0 76% 3,000 76% 90%3,00 0 Investments and advances 321 61 2,500 2,656 70% 2,656 2,50 0 2,372 50% 2,553 Total
Slide 28: Earnings guidance
Earnings guidance 2023 Business Plan 4Q23 Expectation Net revenue Net revenue Net profit VND bn -16% 26,300 6,200 140 +38% 22,028 20,923 20,000 5,413 102 +23% 15,200 +19% 13,969 +26% 12,535 10,200 8,493 7,150 5,943 4,700 3Q23 4Q23 3Q23 4Q23 2018 2019 2020 2021 2022 2023 Plan Actual 2023E Revenue bre
Slide 29: Thank you!
THANK YOU! Ms. Le Kha Tu- IR Manager Email address: ir@dgw.com.vn Contact number: (+84) 934 053 755