Slide 1: Digiworld Investor Presentation May 2023
DIGIWORLD Investor Presentation May 2023 Ms. Le Kha Tu – IR Supervisor 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 December 2022) No. of shares % We are committed to creating value for minority shareholders and acting in Created Future Co., Ltd. (*) 53.5m 32.8 their
Slide 9: Cash dividend, M&A strategy
Cash dividend, M&A strategy Cash dividend policy M&A history Cash dividend payment 90.6 Investment made: 2017 Investment made: 2017 43.0 44.2 Digiworld’s share: 90% (indirectly) Digiworld’s share: 49% Business description: CL is an Business description: Managing 20.9 FMCG distributor with 16 years o
Slide 10: ESG & Sustainability
ESG & Sustainability Awards Regulation on conflict of interest Purpose: for 7 consecutive years 1. Deliver integrity in our business operations, minimize financial (from 2016-2022) 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 47% 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 General
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 o Employees: ~9
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 Owned brands (In-house/ Brands/Suppliers M&A) OEM: - Household electrical appliances - Other products Home FMCG, Medicines and Industrial Mobile phones Laptops & Tablets Office equipment 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 Adding new category Mobile phones Beverage Home Appliances Industrial Equipment Personal protective equipment Industrial products 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: 1Q23 business results
23 1Q23 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND VND bn +40% 3,960bn 7,009 3,880 2,833 5,007 -44% 2,252 3,960 1,899 1,375 1,094 Net profit +98% -63% 649 742 682 107 211 79 69 64 165 81 71 120 VND 1Q21 1Q22 1Q23 Laptops & Tablets Mobile phones Offic
Slide 24: Income statement summary and key margins
Income statement summary and key margins Income statement summary Profitability ratios Consolidated 6.4% 6.7% 6.6% VND (bn) 1Q22 1Q23 Total revenue 3.8% 7,009 3,960 2.7% 2.7% Cost of goods sold (6,542) (3,699) 3.0% Gross profit 2.1% 2.1% 466 261 Interest expense (14) (24) 1Q21 1Q22 1Q23 Selling expe
Slide 25: Balance sheet summary and key financial ratios
Balance sheet summary and key financial ratios Balance sheet summary Leverage ratios Consolidated VND bn 99% 3,500 110% VND (bn) 1Q22 1Q23 3,000 90% 70% Cash and cash equivalents 537 129 2,500 70% 2,505 Investments and advances 64 66 2,000 50% 1,979 1,995 Total assets 6,669 5,916 1,500 1,752 30% 1,0
Slide 26: Earnings guidance
Earnings guidance 2023 Business Plan 2Q23 Expectations Net revenue VND bn VND bn Net revenue Net profit -16% +38% 26,300 -40% 22,059 -16% 20,923 20,000 137 4,910 +23% 15,200 4,100 +19% +26% 12,535 82 10,200 8,493 7,150 5,943 4,700 3,960 2018 2019 2020 2021 2022 2023 2Q22 2Q23 2Q22 2Q23 Plan Actual 2
Slide 27: Thank you!
THANK YOU! Ms. Le Kha Tu- IR Supervisor Email address: ir@dgw.com.vn Contact number: (+84) 934 053 755