#1DIGIWORLD Investor Presentation October 2021 Ms. Le Yen Nhi- IR Executive Email address: [email protected] Contact number: (+84) 28 3929 0059 - Ext: 1017#2Introduction o Vision Executive summary Milestones o Investment case Company overview Business overview Growth drivers Financial overview#33 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. DIGIWORLD#44 Executive summary Company name Ticker Digiworld Corporation DGW (HOSE) 1997 Digiworld is the leading Market Expansion Services provider in Vietnam Digiworld is a distributor of 30+ world-class technology brands Year of Establishment Market Capitalization Listing date Net revenue 2020 NPAT 2020 Trailing EPS ~VND 9,909bn (USD 436mn) 3 August 2015 VND 12,535bn (USD 540mn) VND 267bn (USD 11.5mn) 110€ Digiworld provides top-notch quality services and tailor-made solutions for the most rapid and effective market penetration and market expansion for brands entering Vietnam's growing market Our core strengths are in 5 value- added services: Market analysis, Marketing, Sales, Logistics, and After-sales service VND 4,692 PE trailing 24x PE forward Industry 16x Market Expansion Services Number of employees Website Updated: 30 September 2021 440 www.digiworld.com.vn 2003 2004 VND bn 2005 2006 2007 2008 2009 2010 2011 2012 Revenue history CAGR 38% 2013 2014 2015A 2016A 2017A 2018A 8,488 15,200 12,535 DIGIWORLD#55 Milestones 1997 2008 Established Hoang Phuong Co., Ltd., the precursor of Digiworld Corp 2001 (DELL TOSHIBA MEKONG CAPITAL acer 2003 Equitized into 2004 2010 2014 PHILIPS RICOH FUJI XeroX investment of $5m 2015 Officially listed on HOSE under ticker Implementation of ERP system DGW 2012 DIGIWORLD Established DIGIWORLD Ha Noi 2006 ASUS IN SEARCH OF INCREDIBLE Awards: V1000 VNR TOP 1000 ENTERPRISE 50000 OF TAX CONTRIBUTION 2013 Established DIGIWORLD Da Nang 2006 hp D Established Care 2016 InfortrendⓇ SPO Silicon TRENDNET FAST500 Top 500wing Interprises 2017 COMPANY NOKIA Lenovo 2018 EATON NOKIA PN Kids SMART HEALTHY KIDS 2019 Awards: IR APEA 2018 IR AWARDS 0 VIVE SEAGATE Nestle HealthScience Awards: CS 100 IR SUSTAINABLE BUSINESSES 2016 IR AWARDS VIETNAM ANNUAL REPORT AWARDS Listed in the top 5 of medium-sized enterprises with the best corporate governance life. love. LG MILION Info Fabrica 2020 HUAWEI REGENFlex DIGIWORLD#66 Investment case Strong economic growth of Vietnam Benefiting from advancements in the rapidly evolving Vietnamese economy and taking advantage of the company's position at the intersection of Vietnam's developed foreign trade relationships and rising domestic middle-class consumption, Digiworld brings middle-class goods to an underserved market. 38% CAGR over 18 years of operations and continuing to grow sales and earnings 20-30% per year Stellar company growth and fundamentals О Largest distribution network covering an entire country Brand portfolio includes Apple, Huawei, HP, Dell, Lenovo, Asus, Toshiba Unique business model: B2B with Market Expansion Services (MES) Benefiting from expanding ICT infrastructure and digitization Growth during COVID-19 Penetrating the larger FMCG & HC industry Experienced management team constantly optimizing financial structure and boosting business efficiency Different from traditional distributors, Digiworld: sets up advertising; does market research; executes marketing efforts; fulfils warehousing; pushes goods to channels; receives feedback; reports sales; and coordinates goods continuously - all to create business efficiency for its partners. Consumers and businesses spend more on ICT, catching up with market trends. ICT market size in Vietnam is USD 5 billion and with support from its vast local distribution network Digiworld has a lot of room to keep growing its presence. The trend of more work and study from home additionally boosted demand for Digiworld's products. Using the existing distribution network to enter a large and emerging Consumer Goods & Healthcare sector in a country with strongly expanding middle class presents a tremendous and scalable opportunity. A strong partnership pipeline is in place, with Nestle already having become a partner. DIGIWORLD#7Introduction Company overview Business structure o Board of directors o Management team Shareholder structure and commitment to minority shareholders o Development strategy Cash dividend, M&A, Mobilization of capital, ESOP, Stock Option strategy ESG & Sustainability • UN Sustainable Development Goals Business overview Growth drivers Financial overview#88 Business structure DIGIWORLD Market Expansion Services (MES) Market Analysis Full distribution 4PL Market research Creating plan Registration and access Importation Warehouse service ICT Sales and marketing Digital After-sales Distribution Channel solutions Trade execution Brand strategy E-distribution solution Customer service is (0) Consumer goods Laptop and tablet Mobile phone Office equipment Service Herbal supplements OTC/ETC products Living care Personal care DIGIWORLD#99 Board of directors Dang Kien Phuong Chairwoman and Deputy General Director 1989-1994 Viettronic Thu Duc Co., Ltd. Accountant 1995-1997 T&C Co., Ltd. Accountant 1999-2002 Hoang Phuong Co., Ltd. Accountant 2003-present Digiworld Corporation Doan Hong Viet Member and General Director 1993-1997 Lien Phuong Co., Ltd. IT Head 1997-2003 Hoang Phuong Co., Ltd. Director 2003-present Digiworld Corporation Other current positions Chairman of Members' Council of Created Future Co., Ltd. To Hong Trang Member and Deputy General Director 1997-2000 ANSV Telecommunication Co., Ltd. Project Assistant 2000-2003 Hoang Phuong Co., Ltd. Deputy Director 2003-present Digiworld Corporation Other current positions General Director of Created Future Co., Ltd. W Tran Bao Minh Independent Member 2006-2009: Vinamilk Deputy General Director 2009-2011: TH true milk General Director 2011-2012: A Chau Food Co. Deputy General Director 2012-2018: International Dairy Products (IDP) General Director 2018-2020: Diageo Vietnam General Director Other current positions Vice president of Nutifood Nguyen Duy Tung Independent Member 2007-2010 REE Corporation Vice Director - Projects 2011-2014 REE Electric Appliances Deputy Director 2015-present DOMESCO Financial Director Other current positions Financial Director cum Person-in-charge of Corporate Governance of DOMESCO DIGIWORLD#1010 Management team Dang Kien Phuong Chairwoman and Deputy General Director 1989-1994 Viettronic Thu Duc Co., Ltd. Accountant 1995-1997 T&C Co., Ltd. Accountant 1999-2002 Hoang Phuong Co., Ltd. Accountant 2003-present Digiworld Corporation Doan Hong Viet Member and General Director 1993-1997 Lien Phuong Co., Ltd. IT Head 1997-2003 Hoang Phuong Co., Ltd. Director 2003-present Digiworld Corporation Other current positions Chairman of Members' Council of Created Future Co., Ltd. To Hong Trang Member and Deputy General Director 1997-2000 ANSV Telecommunication Co., Ltd. Project Assistant 2000-2003 Hoang Phuong Co., Ltd. Deputy Director 2003-present Digiworld Corporation Other current positions General Director of Created Future Co., Ltd. DIGIWORLD#1111 Shareholder structure and commitment to minority shareholders Shareholder structure Major shareholders (as of 30 September 2021) No. of shares % Created Future Co., Ltd. (*) 29.7m 33.6 DKP Co., Ltd. (**) 4.7m 5.3 DHV Co., Ltd. (**) 3.9m 4.4 TOHT Co., Ltd. (**) 2.9m 3.3 Verdipapirfondet Odin Emerging Markets 2.5m 2.8 Public float 44.8m 50.6 Total 88.5m 100.0 Commitment to minority shareholders We are committed to creating value for minority shareholders and acting in their best interests through: 1. Consistent payment of dividends 2. All documents and communication published in both English and Vietnamese and sent to all shareholders whether major or minor, domestic or foreign ○ We will do our best to give the information to all shareholders at the same time O We will communicate with minority shareholders via email, phone, meet directly, answer all inquiries Treasury shares Foreign shareholders 0.2% 24.7% 33.6% Created Future 88.5m shares 28.5% Domestic shareholders 13.0% BOD's company (*) Created Future was established in 2014 and is owned by Mr. Doan Hong Viet. Business description: holding DGW's shares. (**) DKP Co., Ltd, DHV Co., Ltd, TOHT Co., Ltd was established in 2021 and is owned by Mrs. Dang Kien Phuong, Mr. Doan Hong Viet and Mrs. To Hong Trang respectively. DIGIWORLD#12Development strategy Brands/Suppliers D2C Online/Offline ICT hp ASUS acer IN SEARCH OF INCREDIBLE TOSHIBA (DELL) FUJITSU Lenovo alcatel Microsoft Mmotorola וח HUAWEI Office equipment EATON RICOH Logitech. TOTO LINK Genius The Smartest Network Device ASUS IN SEARCH OF INCREDIBLE SEAGATE Schneider Electric лос Infortrend וח PHILIPS I APC Legendary Reablity TRENDNET AMAZFIT Currently In future 12 HUAWEI DIGIWORLD Home Appliances וח iiii Consumers Owned brands (In-house/ M&A) OEM: - Household electrical appliances - Others products Medicines and medical equipment VSTENT Genacol® Stent Mạch Vành Phù Thuốc Sirolimus REGENFlex Studying & Research F&B Industrial Equipment DIGIWORLD#1313 Cash dividend, M&A, Mobilization of capital, ESOP strategy Cash dividend strategy 50.0 40.0 45.69 Cash dividend payment 32.48 20.90 43.0 43.0 30.0 20.0 23.43 27.72 III 2018 Total dividend (VND bn) 10.0 2015 2016 2017 2019 2020 2021 M&A history CL Investment made: 2017 Digiworld's share: 90% (indirectly) Business description: CL is an FMCG distributor with 16 years of experience in the industry B2X Since our listing on the stock exchange, Digiworld has maintained a dividend payout ratio whereby 20-40% of the net profit will be for cash dividends and the remaining 60-80% will be reinvested in working capital and business expansion. Mobilization of capital, ESOP strategy · Mobilize capital: NO (The result can dilute the value of the stock for existing shareholders) - ESOP: When PAT grows by 25% or more, DGW will issue ESOP up to 2.5% Investment made: 2017 Digiworld's share: 49% Charter capital: VND6bil Business description: Managing subsidiaries, joint ventures and affiliates which provide after-sales services to ICT brands M&A strategy - Finding target companies that help DGW expand product lines, distribution channels (scale <= 25% DGW) - Funding for M&A will mainly come from retained earnings, bank loans or bond issuance. DIGIWORLD#1414 ESG & Sustainability Awards CS 100 Certificate SUSTAINABLE (from 2016-2020) BUSINESSES GRI Empowering Sustainable This report is a result of the CSRCB Program in Vietnam Employees by gender 33% Regulation on conflict of interest Purpose: for 5 consecutive years 1. Deliver integrity in our business operations, minimize financial and resource losses that could affect our reputation. 2. 2019 2020 for Sustainable Development Report 34% 38% 67% 66% 62% 2018 2019 2020 ■Male Female 3. Ensure clear understanding among our employees to avoid any violations. Enable monitoring and updating of relationships that can lead to conflicts of interest while managing risks for better prevention. Regulations on prevention of corruption and bribery Purpose: Ensure that there is zero-tolerance stance toward corruption, that all Digiworld's business operations are transparent, protecting the reputation of the company, and that all employees are fully aware of their duty to act with integrity. DIGIWORLD#1515 UN Sustainable Development Goals 4 QUALITY EDUCATION Quality education 5 GENDER EQUALITY Promote lifelong learning opportunities for all employees. With our business in technology products, regularly updating knowledge and expertise is compulsory. Employees of all categories, including management, are required to participate in annual training. In addition, our products help the Vietnamese people get access to online learning opportunities not available in the past. Gender equality Equal remuneration for women and men. Zero-tolerance policy towards all forms of harassment and violence at work. No cases of workplace violence and harassment have been recorded. 8 GOOD JOBS AND ECONOMIC GROWTH Decent work and economic growth Promote sustained, inclusive and sustainable economic growth. Guarantee fairness and transparency among employees. Offer suitable jobs, attractive compensation policies and benefits, cater for personal development and long-term career growth at Digiworld. INNOVATION AND INFRASTRUCTURE infon 11 SUSTAINABLE CITIES AND COMMUNITIES Industry, Innovation, and Infrastructure The Group's core business of expanding digital product distribution and IT infrastructure helps improve essential products and services available to the Vietnamese society at large. Sustainable cities and communities Smart buildings. Energy efficiency in buildings. DIGIWORLD#16Introduction Company overview Business overview o Product portfolio o Value chain: One-stop solution o Distribution network (ICT) ○ Partnership with large companies (ICT) o Omnichannel fulfilling (CGHC) • Geographic footprint ○ Risk management 。 COVID-19 impact Growth drivers Financial overview#1717 Product portfolio Laptops & tablets Mobile phones Office equipment Consumer goods - healthcare Laptops Server - PC Storage devices Network & security solutions Toothbrush 9:41 Tablets Internet of Things Home appliances 00 " Toothpaste Washing powder and liquid Detergent liquid Dishwashing liquid короно короно ZACT ZACT Bio ZP ESSENCE ESSENCE busbi king Healthcare Products NestléHealthScience NestiHealthScience Nutren DIABETES Peptamen Net Weight 40 REGENTEX DIGIWORLD#1818 Value chain: One-stop solution BRAND Brand owners Sourcing Research & development Manufacturing Market analysis & marketing planning DIGIWORLD DGW's Market Expansion Services (MES) Retailers Marketing execution Importation, warehousing logistics Sales and distribution After-sales service Retail Single service distributor, wholesaler, and trading company DIGIWORLD#19ICT - Distribution network Suppliers 19 וח HUAWEI Mobile phones hp ASUS IN SEARCH OF INCREDIBLE TOSHIBA acer (DELL) וח HUAWEI FUJITSU Lenovo Laptops & Tablets Logitech EATON RICOH MI TOTO LINK The Smartest Network Device ASUS Genius PHILIPS APC OC Schneider Infortrend וע Electric Legendary Reliability TRENDNET SEAGATE Synopsys® AMAZFIT HUAWEI Office equipment DIGIWORLD Sale of mobile phones Sale of laptops and tables Sale of office equipment Customers Mom & pop shops (TCR IND) 4,000 points of sale Network operators vinaphone, mobifone LAZADA S Shopee .VN Online retailer TİKİ.VN Telecom retailer chain (TCR chain) 2,000 stores thegioididong FPT Shop.com.vn Hruar cellphone HOANGHAMOBILE METTEL Lore Consumer electronic stores IT resellers guyenKim SIEU THE DIEN MAT NOE THAT CHOLONE Din mady XANH R/Ben COMPUTER www.ben.com.a ADG Major Minor Value-added retailers Group of Companies INFOTECH ០០០ System integrator CMC LẠC VIỆT Consumers 4 Consumers Small to Medium Businesses and Small Office - Home Office Enterprises Government and Education DIGIWORLD#20ICT - Partnership with large companies VND bn 16,000 14,000 20 20 12,000 10,000 8,000 6,000 ICT Revenue breakdown CAGR 40% 13% 17% 52% 19% 47% 15% 51% 4,000 40% 15% 20% 28% 20% 34% 35% 2,000 36% 57% 60% 41% 2016 2017 2018 ■Laptops & Tablets 2019 2020A Mobile Phones 03 Q Achievement Key success factors o Top 2 ICT Distributor ○ Largest distribution network O CAGR 44% o Revenue 5x in 10 years ○ Inventory management with ERP from 2010 o Receivable Management o Trend catching The market has been well-consolidated: MES Single service 2021P ■Office Equipment Small scale DIGIWORLD PETROSETCO PSD JI SYNNEX FPT Large scale DIGIWORLD#2121 Consumer Goods & Healthcare - Omnichannel fulfilling Suppliers life. love. Customers General trade D.Ps: 6,000 active selling outlets Consumers Consumers LION CL Consumer goods KINGSMEN POWER FOR MEN PN8Kids SMART HEALTHY KIDS Nestle HealthScience REGENFlex Healthcare Modern trade 1,600 stores * ELEVEN | concung Mega MORNOT LOTTE Mart GO! Citimart FamilyMart CIRCLE K guardian coopmart Me. Be COC VinMart DIGIWORLD Marketplace Affiliates E-commerce S Shopee TIKI.VN LAZADA Sendo AAD eway General trade - OTC 4,000 active selling outlets General trade - key acct. 16 chains (270 stores) 100 107 hospitals NHÀ THUỐC LONG CHAU Vistar PHARMAST PHARMACY Pharmacity Phano pharmacies 104 private clinics DIGIWORLD#22Geographic footprint 22 9 0 0 0 0 00 Hanoi Branch Office: Dong Da, Hanoi о Employees: ~55 people Warehouse: Hoang Mai, Hanoi Capacity: 900 m³ о O о Total area: 1,800 m² о SKU: 900 о Employees: ~36 people DCare: Dong Da, Hanoi Danang Branch Office: Thanh Khe, Danang о Employees: 9 people Warehouse: Thanh Khe, Danang о Capacity: 100 m³ Total area: 300 m² ° O SKU: 436 о Employees: ~5 people DCare: Thanh Khe, Danang DGW's Office DGW's Warehouse Headquarters Office: District 3, HCMC о Employees: 180 people Warehouse: District 12, HCMC Capacity: 3,200 m³ DGW's Service Centers о о Total area: 8,200 m² о SKU: 1,430 о Employees: ~75 people DCare: Districts 1, 3 and 12 in Ho Chi Minh City 510-436. 50-40747-> 510-037.47 DIGIWORLD#2323 Risk management Type of risk Macroeconomic Legal Financial Business sector Others Risk Mitigation Measures The Company proactively conducts detailed research on macro trends and relevant trade policies before making business decisions and negotiating with suppliers. Legal and Compliance Department takes charge of a regular study on laws and regulations and follows up guidelines and policies of the Communist Party and the State for setting the Company's appropriate development strategies and plans accordingly. Interest rate risk: DGW has access to low-interest loans from leading banks and financial institutions, thus the interest rate risk is not high. Currency risks: DGW is always able to timely access foreign currency from the banks to buy goods in foreign currency. ○ Price risks: DGW has set up a supply chain (purchase department) that specializes in negotiating and controlling prices with suppliers, ensuring that DGW always buys goods at the most competitive prices. ○ Risks on Receivables: DGW regularly monitors creditworthiness of our customers through assessment of their financial capacity, reputation and solvency. ○ Liquidity risk: The BOM approved maintaining a sum of working capital and strict import plans, ensuring the fastest inventory turnover. ○ Technology Risks: DGW always looks for new opportunities, seizes market demand timely and sufficiently, and comes up with appropriate business solutions in order to stimulate domestic consumption. ○ Inventory Risks: DGW has gradually improved its operational processes through ERP-SAP system allowing quick and accurate management of each dealer's inventory, which helps minimize inventory status and improve efficiency of DGW and suppliers. ○ Competitive Risks: DGW is focusing more on the core competency of a comprehensive MES provider, thereby improving efficiency and strengthening its position and role as a distributor. As a result, the risk of substitution from the supplier or retailer can be minimized. There are some unforeseeable and unavoidable risks such as extreme natural events (droughts, floods, earthquakes, etc.), war or serious diseases on a large scale. DGW regularly participates in buying insurance for employees as well as assets, goods, insurance for business interruption of the Company and customers in order to mitigate these risks. DIGIWORLD#2424 COVID-19 impact Health Business Measures taken to protect employees, and to prevent the spread of the virus: Work from home for those who are not required to be in the office. ○ Split management team to minimize risk, no more than 10 people in a room. ○ Ensure 2-meter distance in direct communication, face masks are required at all times. From the supply side, Digiworld has limited issues as we have had air and sea transportation running continuously, only a bit more time-consuming due to disinfection process. From the demand side, we have seen lower demand for mobile phones due to postponed expense for the non- necessity and office equipment as IT investment and replacement was delayed. We had to postpone new product launches and sales for FMCG until end of June; however our sales in Q2 2020 still increased strongly. O Postponed every annual pay raise and subject to be reviewed after the outbreak. Employees Stakeholder Support О Stopped new recruitment and replacement are selected and subject to BOD approval. Provided financial flexibility to customers, suppliers, or business partners: ○ We do have receivable deadline extended for some retailers. О Also successfully requested suppliers to extend our payable. Made donations to help fight the pandemic: 10 tons of basic necessities and VND 18m from the company and employees. DIGIWORLD#25Introduction Company overview Business overview | Growth drivers o Macroeconomic environment o Industry drivers Competitive landscape and market share ○ New business & Investment projects ○ Business outlook Financial overview#2626 Macroeconomic environment Vietnam's GDP growth by quarter 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Source: GSO Vietnam Total retail sales of goods by months (Unit: Billion VND) 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 May-19 Jun-19 Jul-19 Source: GSO Vietnam Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Value --% growth GDP growth in 1Q21 improved strongly compared to the previous quarters at 4.48%. The macroeconomic indicators in the first quarter of 2021 showed that the recovery momentum was still maintained. The Industrial Production Index (IIP) in 1Q21 was estimated to increase by 6.65% YoY, the highest compared to the previous quarter 1Q: 5.1%; 2Q: 1.1%; 3Q: 2.34%; 4Q: 4.8%. DGW maintained its impressive growth. Purchasing Managers Index increased to 53.6 in March from 51.6 in February. Industrial production continued to recover thanks to: 1) COVID- 19 continued to be effectively controlled; 2) Economic activity gradually returned to normal, along with increasing numbers of people vaccinated; 3) The growth of new orders, along with new increases in production, employment, and purchases; and 4) PMI's main trade partners of Vietnam to improve on the level on 50 points, showing improvement in the health of the manufacturing sector. DIGIWORLD 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0%#2727 Industry drivers Information and Communication Technologies (ICT) Laptop segment in Vietnam market by price Consumer Goods & Healthcare (CGHC) O Large population but starts ageing % population above the age of 35 in Vietnam 13.8% 12.4% The trend of working from home due to COVID-19 45.0% 44.3% 30.5% 37.6% The trend of shifting to the mid- & high-end segment 43.7% 43.0% 42.4% 55.7% 50.0% The trend of switching to 5G devices 11M2019 11M2020 <14milVND > 14-20 milVND > 20 milVND Digital transformation proposal by MIC 2019-2020 Digitization SME Digitization 10% 2020 50% 2015 2016 2017 2018 2019 Emerging middle-income class 2021-2025 Integrated digital ecosystem 2026-2030 O Comprehensive digital socio-economy O Number of Digital SMEs Middle class & Wealthy segments growing by 88% (2010 to 2020) Health awareness: Health is the #1 biggest concern Vietnamese consumers (Source: Nielsen) among the О 950,000 Fragmented picture as there are >550 distributors (Source: FPTS) 507,000 +87% 174,000 +191% The largest international player has only 14% market share in OTC (Source: Industry expert) 2025 2012 2017 2020 DIGIWORLD#2828 Growth strategy Information and Communication Technologies (ICT) Laptops & Tablets о Increasing market share with non-exclusive brands O Enhancing distribution in the high-end segment Mobile phones Adding more brands Organic growth of the current brands Office equipment Adding more brands in Office equipment and lots Consumer Goods & Healthcare (CGHC) Expanding distribution network Exploiting technology in field sales management 2019 80 2020 90 2021 100 150 Longer term Developing a dedicated sales team Aiming to cover 63/63 provinces in Vietnam 2019 2020 2021 6,000 ASO *ASO: Active Selling Outlet 10,000 ASO 12,000 ASO 40% total market Longer term M&A potential brands/business O There are opportunities in fragmented market to M&A with other companies Synergy creating and/or succeed from previous owners Continuous process of sourcing suppliers Additionally focus on green/all-natural products DIGIWORLD#2929 Competitive landscape and market share DGW's market share Unique competitive advantages 41% 6% 17% 5% 0.01% O Strong financial capabilities & Great transparency Laptops Tablets Mobile phones Office Equipment Consumer Goods - Healthcare Updated: June 2021 Source: GfK, IDS, Canalys О Local understanding and vast distribution network ERP and DMS to serve clients' goals O Data-driven Tailor-made solutions to fulfil clients' needs Staying focused and growing with Client's brands DIGIWORLD#3030 New business & Investment projects Adding new brands to existing channel Laptops & Tablets HUAWEI Mobile phones Laptops Office equipment Tablets Desktop & network solutions lots 9:41 HUAWEI Smart monitor SAMSUNG Smart Monitor M5 HUAWEI Consumer Goods Medicine BIO-PLUS REGENFlex 753 0 DIGIWORLD#3131 Business outlook DGW's revenue breakdown 2020-2025 CAGR 24% 2,012 5,703 1,342 4,387 894 3,375 398 596 2,596 21,935 265 1,997 17,137 13,388 1,536 10,460 8,172 6,384 4,350 4,698 5,074 5,480 5,918 6,392 2020 2021 2022 2023 2024 2025 ■Laptops ■Mobile phones Office Equipment CGHC ■Laptops Mobile phones Office Equipment CGHC 2020 2025 Outlook О О О О Digiworld expects revenue growth of at least 20% and profit growth of at least 25% per year in the next 5 years. Supported by the trends of digital transformation, increased use of high- end products and 5G networks, DGW targets the mobile phones segment to grow by 28% per year, and OE to grow by 30% per year. Due to a more saturated market, laptops & tablets expected to grow 8% per year. Consumer Goods & Healthcare (CGHC) is the main growth driver for DGW in the coming years, with growth expected at 50% per year. Leverage to remain at safe levels. DGW aims to keep improving inventory turnover and reducing operating costs, thereby increasing sustainable profits. DGW aims to keep Improving distribution channels and facilities, and developing human capital, to improve market share, revenue and profit. DGW will prioritize high-performing businesses in line with the Firm's long- term development direction. DGW will strive to maximize shareholder value, maintain shareholder interaction and transparency. 2% 5% 12% 21% 15% О 35% VND 12,535 VND 36,042 billion billion 51% 59% DIGIWORLD#32Introduction Company overview Business overview Growth drivers Financial overview Financial highlights • Segment financials o Income statement summary and key margins ○ Balance sheet summary and key financial ratios • Earnings guidance#3333 Financial highlights KKil ༣། Revenue in 3Q21 reached VND 3,825 billion, increasing 6% YoY, completing 25% of the year plan. Profit after tax in 3Q21 reached VND 107 billion, up 43% YoY, completing 36% of the year plan. Core business segment has strong growth: Revenue in 3Q21 for Laptops +45% YoY, Handset -26% YoY, and Office Equipment 13% YoY. Gross margin in good shape at 7.2% in 3Q21. Superior working capital management, evidenced by record all-time low cash conversion cycle. DIGIWORLD#3434 3Q21 business results Net Revenue I VND 3,825bn VND bn Net revenue and net profit (YoY) Net profit میرا VND 107bn Revenue growth N 6% 2,615 Revenue breakdown (YoY) VND bn CAGR +17%. +39% 3,624 +6% CAGR +28% 1,854 1,868 3,825 1,280 1,381 1129 1015 CAGR +7% +43% 107 405 414 467 CAGR +37% 66 62 123 Laptops & Tablets Mobile phones 3Q19 3Q20 3Q21 Office Equipment Consumer goods 52 +45% 75 3Q19 3Q20 3Q21 Net revenue ■Net profit Consumer goods 3Q21 Revenue breakdown 3Q21 Revenue breakdown (VND bn) 3Q21 3Q20 YOY 3% Office equipment Laptops & Tablets 1,854 1,280 45% 12% Mobile phones 1,381 1,868 -26% Office Equipment 467 414 13% Consumer goods 123 62 98% Mobile phones 36% Net revenue 3,825 3,624 6% Net profit 107 75 43% Laptops & tablets 49% DIGIWORLD#3535 Revenue growth of same brands VND bn 3Q21 business results Net revenue Revenue contribution 3,260 7% 3,045 3Q20 3Q21 (same brands) 9M2021 business results Net revenue 8,518 9M2020 +15% New brands 20% 9,758 New brands 25% 9M2021 (same brands) New brands Current brands 80% HUAWEI SAMSUNG Revenue contribution Current brands 75% CHOETECH REGEN-Lex VSTENT Stant Mạch Vành Phủ Thuốc Sirolimus Laptop & Tablet Mobile phone Office Equipment Office Equipment Consumer Goods DIGIWORLD#3636 Accumulated business results Accumulative net revenue for the last 4 quarters VND bn 6,050 CAGR 11% 15,231 12,535 11,018 9,432 210,009 8,493 7,553 6,680 16,866 17,068 ✓ Accumulative net profit for the last 4 quarters VND bn 429 CAGR 14% 397 329 267 218 183 195 162 117 145 130 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 DIGIWORLD#3737 9M 2021 business results Revenue Ki VND 13,050bn VND bn Net profit VND 330bn 5,993 Revenue growth N 53% Net revenue and net profit (YoY) +53% 13,050 +42% 8,518 112.3 +50% 168 Revenue breakdown (YoY) VND bn CAGR +42% 4,559 3,151 2,251 CAGR +57% 6,360 4,156 2,566 CAGR +36% 1,848 994 1,027 CAGR +25% 182 184 283 +96% 330 Laptops & Tablets Mobile phones Office Equipment Consumer goods 9M2019 ■9M2020 ■9M2021 9M2019 9M2020 9M2021 ■Net revenue ■Net profit 9M 2021 Revenue breakdown 9M 2021 Revenue breakdown (VND bn) 9M2021 9M2020 YOY %Plan 2% Consumer goods Laptops & Tablets Office equipment 4,559 3,151 45% 91% 14% Mobile phones 6,360 4,156 53% 85% 35% Laptops & tablets Office Equipment 1,848 1,027 80% 84% Consumer goods 283 184 54% 57% Mobile phones Net revenue 13,050 8,518 53% 86% 49% Net profit 330 168 96% 110% DIGIWORLD#3838 Income statement summary and key margins Income statement summary Profitability ratios Consolidated 6.9% 7.2% 6.4% VND (bn) 3Q20 3Q21 Total revenue 3,624 3,825 3.5% Cost of goods sold (3,393) (3,551) 2.6% 2.7% Gross profit 231 274 2.8% 1.9% 2.1% Interest expense (6) (8) 3Q19 Selling expense (125) (151) -O-Gross Margin 3Q20 3Q21 Operating Margin --Net Margin General and administrative expense (18) (27) Earnings before tax 101 134 Tax expense (26) (27) Net profit 75 107 DIGIWORLD#3939 Balance sheet summary and key financial ratios Balance sheet summary Leverage ratios Consolidated VND (bn) FY20 3Q21 Cash and cash equivalents 878 570 Investments and advances 60 66 Total assets 3,069 3,761 Total liabilities 1,910 2,303 Total equity 1,158 1,457 Total interest-bearing debt 27 8 Net debt (249) (498) Net debt-to-equity (0.21) (0.34) Debt-to-equity 0.54 0.73 VND bn 474 45% 73% 1,457 1,059 1,067 3Q20 3Q21 Short term Debt (BilVND) Equity Debt/Equity Operating ratios 34 30 35 0 24 24 22 19 16 15 3Q19 3Q20 3Q21 O-Inventories Days Receivable Days Payable Days DIGIWORLD#4040 Earnings guidance FY2021 Revenue plan VND W 15,200bn FY2021 Net profit plan VND 300bn Revenue growth plan N 21% Revenue & net profit YoY (with 2021E) VND bn 8,488 5,937 12,535 15,200 Revenue breakdown YoY (with 2021E) VND bn CAGR +19% CAGR +24% 6,384 7,500 110 163 267 300 2018A 2019A Net revenue 2020A ■Net profit 2021P 5,000 4,350 3,896 2,975 Laptops & Tablets CAGR +17% 2,200 1,362 1,536 CAGR +25% 255 500 265 Mobile phones Office Equipment ■2019A 2020A 2021 P Consumer goods 2021E Revenue breakdown 2021E Revenue breakdown Consumer goods (VND bn) 2021 2020 YOY 3% Laptops & Tablets Office equipment 5,000 4,350 15% 15% Mobile phones 7,500 6,384 17% 33% Laptops & tablets Office Equipment 2,200 1,536 43% Consumer goods 500 265 89% Mobile phones Net revenue 15,200 12,535 21% 49% Net profit 300 267 12% DIGIWORLD#41THANK YOU! A Ms. Le Yen Nhi- IR Executive Email address: [email protected] Contact number: (+84) 28 3929 0059 - Ext: 1017