Slide 1: Digiworld Investor Presentation September 2022
DIGIWORLD Investor Presentation September 2022 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 o Milestones o Investment case 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 Management team o Shareholder structure and commitment to minority shareholders o Cash dividend, M&A, Mobilization of capital, ESOP o ESG & Sustainability o UN Sustainable Development Goals Business overview Growth drivers Fin
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 August 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 b
Slide 9: Cash dividend, M&A, Mobilization of capital, ESOP strategy
Cash dividend, M&A, Mobilization of capital, ESOP strategy Cash dividend policy M&A history Cash dividend payment 90.6 Investment made: 2017 43.0 44.2 Digiworld’s share: 90% (indirectly) Business description: CL is an FMCG distributor with 16 years of 20.9 experience in the industry 2019 2020 2021 2
Slide 10: ESG & Sustainability
ESG & Sustainability Awards Regulation on conflict of interest Purpose: for 6 consecutive years 1. Deliver integrity in our business operations, minimize financial (from 2016-2021) 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 o Risk management o COVID-19 impact 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 Home appliances Office equipment Toothbrush Toothpaste Washing powder and liquid Detergent liquid Dishwashing liquid Healthcare Products Consumer goods – heal
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 14% o Inventory management with ERP from 2010 Key success 20,000 o Receivable Management 13% 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 Macroeconomic environment o Industry drivers o Growth strategy o Competitive landscape and market share o New business & Investment projects o Business outlook Financial overview
Slide 19: Growth strategy
Growth strategy Owned brands (In-house/ Brands/Suppliers M&A) OEM: - Household electrical appliances - Other products Mobile phones Laptops & Tablets Office equipment Home Appliances FMCG, Medicines and Study & Research medical equipment D2C - F&B - Industrial Equipment Online/ Offline Consumer s Cu
Slide 20: Competitive landscape and market share
Competitive landscape and market share DGW’s market share Unique competitive advantages 40% 12% 18% 11% 0.3% o Strong financial capabilities & Great transparency o Local understanding and vast distribution network o Data-driven – ERP and DMS to serve clients’ goals o Tailor-made solutions to fulfil
Slide 21: Financial overview
Introduction Company overview Business overview Growth drivers Financial overview o Financial highlights o Segment financials o Income statement summary and key margins o Balance sheet summary and key financial ratios o Earnings guidance
Slide 22: 2Q22 business results
2Q22 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) 8,500 VND bn VND 7,500 VND bn 2,703 4,910bn 6,500 5,500 +16% 2,146 +63% 4,500 4,910 3,500 4,218 1,330 1,080 1,130 1,146 984 2,500 663 Net profit 1,500 2,583 +142% +18% 298 116 137 59 79 93 48 VND 500 (500) Laptops
Slide 23: 6M2022 business results
6M2022 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND bn VND bn VND 13,000 11,000 +88% +29% 11,919 6,583 11,919bn 9,000 7,000 9,225 4,979 3,382 2,705 2,288 5,000 4,894 1,871 1,790 3,000 +139% +56% 1,381 613 Net profit 1,000 93 223 348 122 160 164 6M2020 6M2021
Slide 24: Accumulated business results
Accumulated business results Accumulative net revenue for the last 4 quarters Accumulative net profit for the last 4 quarters VND bn VND bn 23,666 22,974 761 785 20,972 17,067 657 16,866 15,231 12,535 429 11,018 397 9,43210,009 329 8,493 267 7,553 6,0506,680 183 195 218 117 130 145 162 37
Slide 25: Income statement summary and key margins
Income statement summary and key margins Income statement summary Profitability ratios Consolidated 7.2% 6.7% 6.5% VND (bn) 2Q21 2Q22 Total revenue 4,218 4,910 3.5% 3.6% Cost of goods sold (3,912) (4,590) 2.4% Gross profit 305 320 2.8% 2.8% 1.9% Interest expense (5.9) (22) Selling expense (164) (117
Slide 26: Balance sheet summary and key financial ratios
Balance sheet summary and key financial ratios Balance sheet summary Leverage ratios Consolidated VND bn 3,000 58% 70% VND (bn) FY21 2Q22 60% 2,500 44% 50% Cash and cash equivalents 1,494 156 40% 2,000 2,151 30% Investments and advances 65 63 1,500 20% Total assets 6,544 6,137 1,394 10% 1,000 1,243
Slide 27: Earnings guidance
Earnings guidance 2022 Business Plan 3Q22 Expectations Net revenue VND bn VND bn Net revenue Net profit +70% +87% 26,300 6,500 +38% 20,923 200 +23% 3,825 15,200 +19% 107 +26% 12,535 11,919 10,200 8,493 7,150 5,943 4,700 2018 2019 2020 2021 2022 3Q21 3Q22 3Q21 3Q22 Plan Actual 2022E Revenue breakdown
Slide 28: Thank you!
THANK YOU! Ms. Le Kha Tu- IR Supervisor Email address: ir@dgw.com.vn Contact number: ((+84) 934 053 755