IR NEWSLETTER

IR NEWSLETTER – QUARTER 3/2016

BUSINESS PERFORMANCE QUARTER 3/2016

Q3/2016

DGW’s total consolidated revenues and profit after tax in 3Q16 reached VND 1040 billion and

VND 23.7 billion respectively, equivalent to a decline of 10.7% and 8% year on year. The slump is

originated from the absence of sales of Nokia/Microsoft’s products while it used to contribute VND

152 billion in 3Q15. If to exclude revenues from Nokia/Microsoft, total 3Q16 revenues would

record growth of 2.8% YoY and 10.7% QoQ.

DGW OFFICIALLY DISTRIBUTES AND PROVIDES

MARKET EXPANSION SERVICES FOR FREETEL

COMPANY OVERVIEW

"By using a professional and

standardized management with

ERP-SAP system, Digiworld has

created a smart logistic system that

performs all tasks efficiently in

comparative lead time.

The Inventory system with real time

feature does a lot support in

managing inventory level and status

as well as tracking from ordering to

goods delivery. Smart logistics

system is another bonus in our

comparative advantages.“

Mr. Doan Hong Viet

CEO

(Unit: VND billion)

Thus, total revenue and profit after tax in the first 9 months of 2016 reached VND 2791 billion and

VND 56 billion respectively, equivalent to 71% of revenue and 86% of profit after tax plans. In

which, revenue of mobile phones reached VND 863 billion, contributing 30.9% to total revenue,

achieving 208% QoQ growth.

Name Digiworld Corporation

Ticker DGW

Exchange HOSE

Chartered Capital VND 306bn

The first trading day 03 August 2015

Number of shares listed 30.6mn shares

Number of outstanding shares

30.46mn shares

Industry Consumer goods

Number of employees 445

Website www.digiworld.com.vn

Market

Analysis

Marketing Sales Distribution

& Logistics

After-sales

Service

Laptops& Tablets

Smartphones Office equipment

HP

Acer

Asus

Dell

Lenovo

CinkTab *

Wiko *

Obi *

Intex *

Motorola

Apple

Infocus *

Freetel

TRENDnet *

Infortrend

Logitech

Genius

Silicon Power

Rapoo

Ricoh

APC, AOC

BenQ* Exclusive contracts

658 612

247 275

152108

153

0

200

400

600

800

1000

1200

1400

Quarter 3/2015 Quarter 3/2016

Revenue Breakdown 3Q2016

Laptop & tablet Mobile Phones

Nokia/Microsoft Office Equipment

Revenue & Net profit 3Q2016

Revenue 3Q15 2Q16 3Q16 % YoY % QoQ

Laptop & Tablet 658 462 612 -7.0% 32.5%

Mobile Phones 247 339 275 11.3% -18.9%

Nokia/Microsoft 152 0 0 -100.0% -

Office Equiment 108 139 153 41.7% 10.1%

Total 1165 940 1040 -10.7% 10.6%

Net profit 25.8 11.5 23.7 -8.1% 106.1%

IR ACTIVITIES

Digiworld’s trip to Japan Analyst Meeting

IR NEWSLETTER – Q3/2016

DGW Registered English Disclosure of Information Deploying messaging service for shareholders

Last October, Digiworld joined

the seminar "Investment

Opportunities in Vietnam's

stock market" held in Tokyo

and Saitama cities of Japan,

initially approached Japanese

investors.

This seminar was co-organized by Musashi Securities (Japan) and

Ho Chi Minh Securities (Vietnam). Digiworld took part in the seminar

as a representative from Vietnamese listed firms.

Full article

As one of the

quarterly IR

activities, Analyst

Meeting updates

DGW’s business

performance in

3Q16, 9M16

business plan of

DGW.and 4Q16 business plan. The meeting was held at company’s

office with the participation of 18 representatives from

individual and organizational brokerage, research

departments of securities companies, asset management

companies.

To ensure justice, timeliness and transparency for foreign

shareholders and contribute to lifting barriers in attracting

investment, improving access to information of Vietnam's stock

market, closer to the practices, international standards, ready to

integrate regional securities. DGW is one of the pioneering

companies registered to implement the disclosure bilingual English-

Vietnamese commitment. The information published in English,

shareholders and investors can find these documents on

digiworld.com.vn and hsx.vn English versions.

Full article

Digiworld consecutively received two Awards

On 11/11/2016 - Digiword Corporation - "DGW" is

honored to receive two major awards: 100 Sustainable

Business in 2016 and Top Brands 2016 - Vietnam's

leading brand.

"100 Vietnam Sustainable Business 2016" award by

Vietnam Business Council for Sustainable Development

(VBCSD) under Vietnam Chamber of Commerce and

Industry (VCCI) and Ministry Of Labour – Invalids and Social

Affairs (MOLISA), Ministry of Industry and Trade (MOIT),

Ministry of Natural Resources and Environment (MONRE),

Vietnam General Confederation of Labour (VGCL) and the

State Securities Commission (SSC) co-organized.

In September, Digiwolrd was in the top

20 shares grow up to 25%

Full article

(only available in Vietnamese)

Awards are evaluated, support counseling by leading experts Vietnam Chamber of Commerce and Industry (VCCI) and the

organization of domestic and international on the basis of Corporate Sustainability Index (CSI). CSI includes 151 high quantitative

criteria revolve around the sustainable development of enterprises in the fields of economy, environment and society.

Full article

(only available in Vietnamese)

STT Company Margin ratio

1 SSI 70%

2 HSC 50%

3 MBS 60%

4 VNDS 70%

5 BSC 50%

6 ACBS 70%

7 SHS 50%

Margin ratio for DGW

Source: Securities Companies, November 2016

From Q4 2016, Digiworld deploys

messaging service to shareholder’s

mobile phones, to inform important

events as well as important

information related to DGW’s

business performance and activities.

Recipients are those listed on shareholder book closing on the

last date of the previous quarter with registered mobile phone

number. This service aims to ensure shareholders’ benefit and

to enhance transparency, timeliness and accuracy in Investor

Relations at Digiworld.

“…In total, we estimate that sales and net

profit in 2016 might reach VND 3.964bn (-

5.7% YoY) and VND 71bn (-31% YoY),

resulting in EPS of VND 2.334.

In 2017 we see that DGW might experience a

certain level of recovery thanks to (1) an

expected stable IT segment, (2) diminished

impact from declining sales of Nokia and (3)

Lenovo and Freetel will fully contribute to

revenue in 2017. We expect that sales and net

profit growth rates will be 8.8% and 17.1%

YoY. 2017 EPS is estimated to be VND

2.731.…”

Full Report pdf

“All bad things have ended”

Nguyen Trung Kien, CFA

Manager of Institutional Research & Investment Advisory

Saigon Securities Incorporation

“…DGW is one of the leading enterprises in the

field of wholesale distribution of electronic goods.

Although DGW’s revenues and profit are currently

decreasing, we believe that the development

strategy of the leadership is very positive in the

long term.

In the medium term, exclusive distribution

segment mid-range phones and cheap

smartphones will quickly offset the decline from

Nokia/Microsoft, and be a new growth driver. We

expect this growth will be reflected gradually from

Q3/2016. In the long term, DGW will proceed to

expand the business model which provides

logistics services and marketing for other brands

not only in the field of electronic technology….”

Full Report pdf

(only available in Vietnamese)

“Distribution - Retail Technology Industry”

Lam Tran Tan Si

Analyst

MB Securities

“…Conclusion: DGW is in the

process of restructuring the

business phone distribution

segment as complete elimination

Nokia products. At this point, we

believe that this is a company that

investors should watch in the future.

EPS 2016 is 2.134 VND….”

Full Report pdf

(only available in Vietnamese)

“Update Report:

Digiworld Corporation- DGW”

Individual Clients

Research Deparment

HCMC Securities Corporation

DGW Trading Statistics

Quarter 3/2016

Highest price: VND 22.500

Lowest price: VND 14.800

Aver. trading vol.: 67,839 shares/day

Most trading vol.: 369,560 shares

Least trading vol.: 640 shares

“Update Report:

Digiworld Corporation- DGW”

Nguyen Tien Dung

Analyst

Bao Viet Securities

“…We estimate DGW’s 2016

revenues to reach VND 3,970

billion, declining 5.6% YoY, Profit

after tax of parent company is

estimated at VND 84 billion,

declining 18.4% YoY, EPS 2016

may reach 2744 EPS / share. As

DGW’s selling expenses should rise

to facilitate new services, profit may

fall at a faster pace. In our opinion,

the effectiveness will be reflected in

the business results in the coming

years….”

Full Report pdf

(only available in Vietnamese)

ANALYSIS

No Shares Growth

... ... ...

12 SMC 29%

13 DL1 27%

14 HAX 27%

15 TMX 26%

16 DGW 25%

... ... ...

Digiworld is authorized to distribute FREETEL in Vietnam

Hochiminh City, October 5th 2016, Digiworld (Digiworld Corporation -

“DGW”) has been appointed by FREETEL from Japan as the authorized

distributor and being in charge of market expansion services (MES). The

milestone proves that Digiworld unceasingly pours and diversify portfolio of

Mobility division, even is the best choice in partnership for new brands in

Vietnam.

With long-term history over 18-year experience in ICT distribution and certain

achievements as the sole distributor of several mobile brands such as Obi

Worldphone, Wiko, Intex, Digiworld possesses a distribution network of 6,000

selling points nationwide, 5 service centers, 3 warehouses, 13 sub-warehouses,

and 13 service points. Hence, it is the reason that FREETEL has decided to

partner with Digiworld to guarantee the best service to end-users.

In the debut, FREETEL launches 5 smartphone brands: FREETEL Samurai Rei,

FREETEL Musashi, FREETEL Priori 3S, FREETEL Ice 2+ and FREETEL Ice 2.

These products are strongly stated “made by Japan” through the sophisticated

design in details at the affordable price from only VND 990,000. Possessed the

highest price - VND 5,990,000 in this launch, FREETEL Samurai gets attraction

by its perfect outlook in an elegant metal body design, 5.2” Full HD display

covered along with sharp edges 7.2mm, which guarantees the most vivid

experiencing space in hand. In addition, other 04 products are definitely unique:

FREETEL Musashi specifically features Japanese flip phone with design of

spectacular dual touch screens. FREETEL Priori 3S is equipped with 4000mAh

battery capacity, ready for unlimited experiences. Phablet FREETEL Ice 2+ and

FREETEL Ice 2 feature outstanding specifications to compared with others in the

same segment.

See more

SAMURAI REI

Outer shell perfectly beautiful,

crafted from metal monolithic,

ultra luxury and exquisite

Retail price: VND 5.990.000

MUSASHI

Clamshell design with two

4.0-inch screen is extremely

unique and fancy

Retail price: VND 4.190.000

PRIORI 3S

8.0 MP rear camera to record the

most memorable and vivid

moments

Retail price: VND 2.690.000

ICE 2 PLUS

Ultra chic styling, fashionable

colors and elegant

Retail price: VND 1.790.000

ICE 2

Clamshell design with two 4.0-inch

screen is extremely unique and

fancy

Retail price: VND 990.000

BUSINESS ACTIVITIES

The content of IR Newsletter is to merely provide information for institutional and individual investors of Digiworld Corporation. Digiworld constantly

endeavors to ensure the correctness and completeness of information covered in IR Newsletter; we however cannot guarantee that there would be

no errors or omissions. Digiworld hereby excludes all liabilities relating to the information whether incorrect, incomplete or outdated provided in the

newsletter. Digiworld reserves the right to modify or update IR Newsletter at any time without prior notice. IR Newsletter is displayed in PDF A4 only.

No liability is accepted for information which may appear in any format other than PDF A4. Digiworld do not allow to copy, modify, issue or use the

whole or a part of IR Newsletter for any purpose whatsoever without the written consent of Digiworld. Please indicate the cited source in case using

the information adapted form the newsletter.

DISCLAIMER

Contact:

Email: haikhoi@dgw.com.vn

Mobile: +84 936 377 177

Add: 8th Floor, Nam A Bank Tower

201-203 Cach Mang Thang 8 St, Ward 4, District 3, HCMC, Vietnam

Freetel launching event in Vietnam

PGs of Digiworld show 5 mobile phone models of Freetel