Slide 1: Digiworld Investor Presentation November 2024
DIGIWORLD Investor Presentation November 2024 Ms. Le Kha Tu – IR Manager E khatu@dgw.com.vn
Slide 2: Introduction
Introduction o Vision – Core values 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 Digiworld is the leading Digiworld is a distributor of Market Expansion Services 30+ world-class technology Company name Digiworld Corporation provider in Vietnam brands Ticker DGW (HOSE) Digiworld provides top-notch Our core strengths are in 5 Year of Establishment 1997 quality se
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 execution strategy solution service research plan and access se
Slide 7: Board of directors
Board of directors Doan Hong Viet Dang Kien Phuong To Hong Trang Member and Deputy General Chairman Member and General Director Director 1993-1997 1989-1994 Lien Phuong Co., Ltd. Viettronic Thu Duc Co., Ltd. 1997-2000 IT Head Accountant ANSV Telecommunication Co., Ltd. Project Assistant 1997-2003 19
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 16 Sep 2024) No. of shares % We are committed to creating value for minority shareholders and acting in their best interests through: Created Future Co.,
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 Digiworld’s share: 90% (indirectly) Digiworld’s share: 49%-90% 90.6 Business description: CL is an FMCG Business description: Managing 43.0 44.2 distributor with
Slide 10: ESG & Sustainability
ESG & Sustainability Awards Regulation on conflict of interest Purpose: for 8 consecutive years (from 2016-2023) 1. Deliver integrity in our business operations, minimize financial and resource losses that could affect our reputation. 2. Ensure clear understanding among our employees to avoid any Ce
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 Industrial Equipment Office equipment Large products Small products Home Appliances Washing powder Detergent Dishwashing Toothbrush Toothpaste Healthcare Prod
Slide 13: Value chain: One-stop solution
Value chain: One-stop solution Brand owners DGW’s Market Expansion Services (MES) Retailers Market Importation, Research & analysis & Marketing Sales and After-sales Sourcing Manufacturing warehousing Retail development marketing execution distribution service logistics planning Single service distr
Slide 14: ICT – Distribution network
ICT – Distribution network Suppliers Customers Consumers Mom & pop shops (TCR IND) 4,000 points of sale Consumers Mobile phones Network operators Online retailer Small to Medium Businesses and Small Office – Laptops & Tablets Telecom retailer Home Office chain (TCR chain) 2,000 stores Consumer Enter
Slide 15: ICT – Partnership with large companies
ICT – Partnership with large companies VND bn ICT Revenue breakdown o The biggest ICT Distributor 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 15% factors 14% o Trend catchin
Slide 16: Consumer Goods & Healthcare – Omnichannel fulfilling
Consumer Goods & Healthcare – Omnichannel fulfilling Suppliers Customers Consumers Consumer goods General trade D.Ps: 6,000 active selling outlets Modern trade 1,600 stores Consumer goods Consumers Horeca E-commerce Marketplace Affiliates General trade – OTC 4,000 active selling outlets Modern trade
Slide 17: Geographic footprint
Geographic footprint Our Offices 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 Our Warehouses ▪ Office: Thanh Khe, Danang o Employees: ~9 p
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Slide 19: Our service centers
Our service centers B2X - SAMSUNG SERVICE CENTER DISTRICT 7 56 Street No. 10, Himlam Residential Area, Tan Hung Ward, District 7, HCMC Multibrand Service Center: B2X - SAMSUNG SERVICE CENTER DISTRICT 5 Ho Chi Minh City: 308 - 312 Hong Bang Street, Ward 12, District 5, HCMC - 65A Ho Xuan Huong Street
Slide 20: 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 21: Growth strategy
Growth strategy Brands/Suppliers Private label (In-house/ M&A) OEM: - Ready to drink products - Household electrical appliances - Other products Laptops & Office equipment Home FMCG, Medicines and Industrial Mobile phones F&B Tablets Appliances medical equipment Equipment D2C Online/ Offline Consume
Slide 22: Competitive landscape in CGHC
Competitive landscape in CGHC Small distributors/ Multinational companies Family companies Pros Pros ✓ Flexible operation to suit ✓ Strong brand awareness, long Unique competitive advantages customer requirements experience ✓ Thorough local ✓ Strong financial capabilities & ✓ Great transparency unde
Slide 23: New business & Investment projects
New business & Investment projects Adding new brands to existing channel Laptop + Office Equipment Office Equipment Home Appliances Adding new channel Consumer Goods – F&B F&B Horeca/ Modern trade General trade On premise 25
Slide 24: 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 25: 3Q24 business results
3Q24 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND VND bn VND bn 6,226bn -11% +15% 6,226 2,4572,3982,428 2,399 6,065 2,230 5,413 1,774 1,151 Net profit -43% +19% 908 907 VND 180 102 122 205 163 220 96 171 197 122bn 3Q22 3Q23 Net revenue 3Q24 Laptops & Tablets
Slide 26: 9M2024 business results
9M2024 business results Revenue Net revenue and net profit (YoY) Revenue breakdown (YoY) VND 25,000 VND bn VND bn 16,219bn 20,000 8,982 +16% 15,000 17,984 -22% 6,893 16,219 5,839 5,863 10,000 13,969 4,8345,135 +15% 2,5262,3173,019 -50% Net profit 5,000 528 264 303 377 494 629 260 461 543 VND - 9M202
Slide 27: Income statement summary and key margins
Income statement summary and key margins Income statement summary Profitability ratios Consolidated 9.7% VND (bn) 3Q23 3Q24 6.7% 7.1% Total revenue 5,413 6,226 Cost of goods sold (5,028) (5,624) 3.7% 2.4% 2.5% Gross profit 385 602 3.0% Interest expense (31) (30) 1.9% 1.9% Selling expense (213) (428)
Slide 28: Balance sheet summary and key financial ratios
Balance sheet summary and key financial ratios Balance sheet summary Leverage ratios VND bn Consolidated 3,500 0.96 VND (bn) 3Q23 3Q24 1.10 3,000 0.76 0.90 Cash and cash equivalents 1,562 1,177 2,500 2,726 2,841 2,656 0.70 Investments and advances 61 12 2,000 0.50 2,022 Total assets 7,003 7,871 1,50
Slide 29: Earnings guidance
Earnings guidance 2024 Business Plan 4Q24 Expectation Net revenue Net revenue Net profit -16% 26,300 +38% -6% 22,028 23,000 6,800 20,923 9m2024 20,00018,817 150 +23% 16,219 4,849 15,200 12,535 90 10,200 2020 2021 2022 2023 2024 4Q23 4Q24 4Q23 4Q24 Plan Actual 2024E Revenue breakdown Net profit (VND
Slide 30: Thank you
Thank you Contact info Ms. Le Kha Tu IR Manager E khatu@dgw.com.vn For more information, please visit our website at Digiworld.com.vn