CEO MWG`s presentation

Report
Mobile World Investment Corporation
Corporate presentation by CEO
June 2014
1
We are in the retail business of authentic mobile
phones and electronics/home appliances through our 2
chains, thegioididong.com and dienmay.com
Mobile World Investment
Corporation
Established in 2009
99.35%
99.95%
Mobile World JSC
Electronic World JSC
Established in 2004
Established in 2010
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OUR VISION
The Gioi Di Dong (Mobile World) is the leading and most
creative retailer in Vietnam, bringing to our customers the
most exciting, friendly, trustworthy experience; and is an
example of business with integrity in every market where
we have presence and make a difference in Vietnam.
This is who we are. This is what you can trust.
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3
Our key difference is the culture of positioning our
customers at the center in every of our thinking
and action.
Touchable
factors
Products /
Services
“Soft”
factors
 Store location
 Authentic products
 Staff
 Store layout
 Not selling low quality products
 Salary/bonus scheme,
 Shelves
or products that are not bringing
 Product display
good value to customers
promotion opportunities
 Service procedure
 Customer support
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4
5
5
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We are the number 1 mobile phones retailer in Vietnam,
not only in market share, but also in customer service
quality
The Gioi Di Dong(*)
25.0 %
Mobile phone
market in
Vietnam
Mom and pop shops
50.0%
Other modern
retailers
25.0%
(*) Source: Gfk April 2014
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7
We are the only Vietnamese retailer in the East Asia’s
most dynamic and high-growth companies list,
recognized by World Economic Forum (2014).
Revenue
‘000 VND
‘000 VND
12,000,000,000
300,000,000
10,000,000,000
250,000,000
8,000,000,000
200,000,000
6,000,000,000
150,000,000
4,000,000,000
100,000,000
2,000,000,000
50,000,000
0
0
2009
2010
2011
2012
2013
Net profit
2009
2010
2011
2012
2013
8
8
We are the only mobile phones
retailer that has presence in all
63 provinces of Vietnam.
250
Thegioididong.com and
Dienmay.com stores
Number of Thegioididong.com and
Dienmay.com stores
300
250
200
150
100
50
0
2009
2010
2011
2012
2013
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We are among the top online retailer in
Vietnam.
Top 5 e-commerce websites
in Vietnam with over 10
million visits per month.
‘000 VND
Online sales
500,000,000
450,000,000
400,000,000
Nationwide stores support our
own nationwide, reliable
delivery.
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
Flexible payment methods: cash
on delivery, bank transfer,
internet banking, ATM, VISA and
Master Card.
100,000,000
50,000,000
2009
2010
2011
2012
2013
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We built a corporate culture positioning our customers at
the center.
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Our commitments
1. We commit to position our CUSTOMERS AT THE CENTER of every of
our thinking and actions.
2. We commit to provide our employees a working environment based on
RESPECT and FAIRNESS.
3. MWG commit to provide our Managers a fair “PLAYGROUND” where
they can fully utilize their talents, a PROSPER personal life with
RESPECTFUL social status.
4. MWG commit to RESPECT our business partners.
5. MWG commit to INCREASE its company’s VALUE for its
shareholders.
6. MWG commit to create jobs for the society and fulfill its tax
responsibility to the national budget.
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We built a dynamic, energetic, experienced and
professional management team.
 The Board of Directors includes
members who have intensive
experience in technology and retail
industry, both locally and internationally;
as well as financial and managerial
experience.
 The Board of Directors has met and
shared experience with world renowned
technology and retail corporations in the
world.
 Result-oriented management approach.
Management bases on internal detailed
reports as well as frequently updated
market researches.
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Board of Directors: Understanding the local market,
supported by international experience
Nguyễn Đức Tài (Founder/Chairman & CEO)
Mr. Tai runs the business of MWG. Before
founding the company, he was the strategy
director of S-phone.
Trần Kinh Doanh (BOD member)
He is in charge of business, sales and
marketing. He has contributed greatly to the
expansion of The Gioi Di Dong stores.
Trần Lê Quân (Founder/BOD member)
Before joining The Gioi Di Dong, Mr. Quan
is managing director of Anba, a customer
service company for Sony Ericsson
Đặng Minh Lượm (HR manager/BOD
member)
Before joining the company, he was the
HR manager of Nutifood
Điêu Chính Hải Triều (Founder/ IT manager/
BOD member)
He has greatly contributed in building the
company’s ERP system. He is also in charge of
developing supply chains and inventory
management.
Robert Alan Willett (BOD
member)
He became the company’s BOD
member in April 2013. He was exCEO of Best Buy International and
hold top positions in many
international companiesMetapack
(UK). Lighthaus Logic (Canada) và
Sabanci Holding (Turkey).
Chris Freund (BOD member)
Representing Mekong
Enterprise Fund II. He is the
chairman and founding partner
of Mekong Capital.
Prior to founding Mekong
Capital, he was a Portfolio
Manager at Templeton Asset
Management.
Dr.Thomas Lanyi (BOD
member)
Representing CDH
Investments. He is executive
director of CDH Investments.
Previously he was with Mekong
Capital as Director and
Templeton Asset Management
as Executive Director.
We control tightly to have an healthy financial position.
300
250
USD million
1.2x
1.4x
1.3x
1.3x
1.1x
1.3x
30
1.x
27
200
150
15
-
1.2x
.8x
100
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15
3
25
59
61
2010
2011
Current ratio
1.4x
1.x
21
50
1.6x
227
179
.6x
.4x
135
92
Year
2012
1,13
Year 2013
1,35
.2x
.x
2012
Non-current
2013
2014F
Current
2015F
2016F
Current ratio
Working capital management, target:
 Consolidated days in inventory: 40 to 50
days
 Payable days from 20 to 30 days
Debt/Equity (%)
Year
2012
Year
2013
85,8
64,1
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We control costs tightly and cooperate closely with
suppliers to enhance business efficiency.
Gross margin (%)
Year
2013
14,8
Q1 2014
15,6
Net profit margin (%)
Year
2013
2,7
Gross margin Q1 2014 increased
and is expected to be stable
 In 1H 2013, we restructured our
product portfolio and selling
products at discount which affected
our gross margin
 Year 2014 is expected to be good
for us to maintain a higher gross
margin compared to that of 2013
ROE (%)
Q1 2014
4,8
Year
2012
33,2
Year 2013
41,2
We completed the restructuring of
Dien May to cut costs
 Sales expenses over revenue
decreased from 9.8% in 2013 to
8.2% in Q1 2014
 Net margin Q1 2014 was 4.8%,
significantly higher than 2.7% in
2013
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We set an ambitious target for 2014
Q1 2014 result proved that we were on the right track.
Target 2014
Q1 2014 Target
Revenue
13,020
Billion VND
Net profit
435
Billion
VND
Yoy Growth
Vs. 2013
37%
2,042
3,478
Billion VND
Billion VND
Q1 2013
Q1 2014
Yoy Growth
Vs. 2014
69%
Revenue
42.1
168.6
Net
profit
Billion VND
Billion VND
Q1 2013
Q1 2014
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We see a lot of opportunities for future growth
90
Large and consumptiondriven population
Customers are switching
from mobile phones to
smart phones
mn
50
%
Of the market is served by
mom and pop stores;
market expansion
opportunity
Economies of scale
Technology is everchanging and creating new
demand
Electronics/home appliances
market: a fragmented market;
opportunities for few
dominants
Opportunities to develop
modern retail chains for
other product categories
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Growth strategy
“Fill in the
blank” at major
cities
Boosting online
sales
Approaching
rural areas
New retail chains
for new product
categories
Flagship stores
at major cities
2014
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We expect to list 62,723,171 shares on Ho Chi Minh
Stock Exchange in June or July 2014.
Stock ticker:
Information for
shareholders and
investors on:
MWG
www.MWG.vn
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Thank you for your interest in Thegioididong
Q&A
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