Mobile World Investment Corporation

ANALYSIS REPORT

MWG is currently a leading retailer of mobile phones in Vietnam with a network of

up to 306 stores nationwide and also possesses a highly recognized brand name.
Main revenue growth drivers: Based on 5 years performance of MWG (from 2014 to
2018), Net Revenue has been increasing sharply by 450 percent. In particular, Online
Revenue has been rising from 276 to 12350 billion VND and Net Profit After Tax also
has an upward trend (from 258 to 2880 billion VND during the period)
Vision,mission: Core values are applied consistently in all activities, spreading from
Board of Management to every employee of the Company. MWG continuously
innovates to offer customers outstanding experiences, based on our customer-centric
culture and integrity. MWG 2020 is the most powerful retail group of diversified
categories, the market leader in B2C e-commerce.

2015 2016 2017 2018

Net Revenue * 25,252,733 44,613,333 66,339,804 86,516,287

COGS * 21,330,302 37,399,226 55,198,025 71,224,159

Gross Profit * 3,922,431 7,214,106 11,141,779 15,292,128

Net Income * 1,075,771 1,578,251 2,206,897 2,880,309

EPS (VND) 7,305 10,246 7,162 6,689

BVPS (VND) 16,908 24,96 18,655 20,871

ROE (%) 54.16 49.88 45.24 38.66

ROA (%) 20.09 14.26 11.71 11.30

* : Millions VND
Source: Company data

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BUSINESS DESCRIPTION
Overview
“THE COMPANY Mobile World Investment Corporation is a shareholding company incorporated
under the Law on Enterprise of Vietnam pursuant to the Enterprise Registration Certificate (“ERC”)
No. 0306731335 issued by the Department of Planning and Investment (the “DPI”) of Binh Duong
Province on 16 January 2009, as amended. The Company’s head office is located at No. 222, Yersin
Street, Phu Cuong Ward, Thu Dau Mot Town, Binh Duong Province, Vietnam and operating office is
located at MWG Tower, Lot T2-1.2, D1 Street, Saigon Hi-tech Park, District 9, Ho Chi Minh City,
Vietnam. As at 31 December 2018, the Company has four (4) direct subsidiaries, one (1) indirect
subsidiary and one (1) associate. The current principal activities of the Group are trading, providing
repair and maintenance services of phones, information technology equipment and accessories,
cameras, digital equipment, electronic equipment; household appliances and related accessories; and
retailing at the Group’s chain of stores including foods, beverages, products from meats, seafood,
vegetables. The Company’s shares were listed on the Ho Chi Minh City Stock Exchange with symbol
“MWG” in accordance with the Decision No. 253/QD-SGDHCM issued by the Ho Chi Minh City
Stock Exchange on 7 July 2014.”

Business Activities
✓ Mobile World Chain - thegioididong.com:Offer mobile phones, tablets, laptops, accessories,
sim, cards and value-added services 1,032 stores.

✓ Consumer Electronic Chain - dienmayxanh.com: Offer mobile phones, tablets, laptops,

accessories, sim, cards and value-added services, electronics (TVs, sound system...), white
goods (refrigerators, washing machines, air conditioners), small appliances and kitchen wares.
750 stores. Dien may xanh: Marked an aggressive expansion with over 640 stores covering all
provinces and cities in Vietnam by end of 2017, the total number of stores in the nationwide
was 640. Dien may xanh expanded to 9 provinces and cities with 12 stores.

✓ Bachhoaxanh.com: Offer fresh produce and fast moving consumer goods (FMCGs) 405 stores
✓ thegioididong.com and dienmayxanh.com: dominated the Vietnam's technical consumer goods
retailing market with 45% and 35% market shares of phones and consumer electronics retail
sales value respectively, constantly improving the quality customer service.

Company Strategies
✓ TGDD and DMX: In 2019, consumer electronics retailing is still the main pillar for MWG’s
revenue growth, targeting to reach 40% market shares in Vietnam. Phones retailing business
continues to maintain the leading position and positive growth rate compared to the overall
market.

✓ Bach Hoa Xanh: Bach Hoa Xanh will continue to solidify its foundation in 2019 for the
aggressive expansion nationwide after BHX becomes profitable at stores and DC level.
Although revenue contribution of BHX in MWG’s top line is not significant, the grocery retail
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business is expected to achieve highest y-o-y growth. MWG targets that the gross profit
generated from BHX can entirely cover the operating expenses of all stores and distribution
centers, excluding the G&A expenses at the company level, latest by Dec 2019
✓ Online: continues to maintain the leading position in Vietnam’s online retailing.

Growth Potential
• Thegioididong: The phone manufacturers have capture the consumers' demands better,
constantly improve and launch new products. Flexible and simple financing options allow
customers easily own their favorite products.

• Dienmayxanh: The CE market is still fragmented. This creates opportunities for a few
companies to gain more market shares. The household penetration of consumer electronics
products (washing machines, refrigerators, air-conditioners ...) in Vietnam is still low

• Bachhoaxanh: Market size of grocery retailing is over US $ 60 billion, accounting for 60% of
the total retail in Vietnam. More than 90% of the market demand is served by traditional trade
channels. There are not many companies participating in mini-mart segment.

• Online shopping become a future consumption trend. Huge potential of online growth for Omni
channel for retailers with extensive physical store network.

Shareholders’ Ownership

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COMPETITIVE POSITIONING
In 2018, MWG is the number 1 retailer in VietNam with net reveue is 86,516 Billion VND

Source: Company data

FINANCIAL ANALYSIS

Net profit margin has an upward trend and it indicates

that MWG has operated very well and generated a high
level of profit during thr 4 years period.

Cash Flow in Operating has been improving through 4

years, which mean that the amount of cash inflow is
more than the amount of cash outflow. In particular,
deperciation and intersest expense has been rising
sharply which is the main cause for CFO increase. We
can notice this based on Statement of Cash Flow in thr
Appendix 5.
Cash Flow in Investing has been increasing because
MWG has strongly invested in fixed assets and
equipment, whereas Cash Flow in Financing has a
positive figures in 4 years period. CFF has risen since
MWG has focus on borrowing a huge amount of cash.

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ROE has maintained a positive figure but the rate has

decreased through 4 years. Based on the Balance
Sheet, we can see that the Equity of MWG has risen
and this is the reason for the fall of ROE (Equity is the
denominator of ROE)

Cash Conversion Cycle (CCC) has a stable figure

around 40 days. CCC measures the ability of MWG to
meet the short term obligations. In particular, total
account receivable days and inventory days minus
account payable days.

Cash Ratio has remained below 30 percent and we can

imply that MWG has some difficulty in paying short
term obligations. In addition , the leverage ratio, debt
to equity reached a peak in 2016 at 125 percent but last
year it stayed at below 80 percent, which means that
MWG used less leverage than the past.

Source: Company data

VALUATION
P/B ratios in 4 years period remain positive and greater than 1, which mean that stock price of MWG is
higher than the book value per share of MWG. This is an important indicator for investors to make
decision whether investing in MWG or not.

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APPENDIX 1: INCOME STATEMENT
Income Statement Year 2015 Year 2016 Year 2017 Year 2018
1. Revenue 25,388,072 45,612,677 67,698,541 87,738,379
2. Deduction from revenue 135,339 999,344 1,358,736 1,222,092
3. Net revenue 25,252,733 44,613,333 66,339,804 86,516,287
4. Cost of goods sold 21,330,302 37,399,226 55,198,025 71,224,159
5. Gross profit 3,922,431 7,214,106 11,141,779 15,292,128
6. Financial income 80,986 135,328 250,51 342,084
7. Financial expenses 40,666 120,086 234,287 436,573
Of which: Interest expenses 38,894 119,646 233,202 436,417
8. Share of associates and joint ventures' result -2,101
9. Selling expenses 2,351,095 4,287,696 7,017,061 9,659,741
10. General and administrative expenses 249,315 934,777 1,345,497 1,761,614
11. Operating profit 1,362,341 2,006,875 2,795,444 3,774,182
12. Other income 25,193 31,13 17,685 33,233
13.Other expenses 1,75 32,091 3,816 21,097
14. Other profit 23,443 -961 13,868 12,136
Share of associates and joint ventures' result
15. Profit before tax 1,385,784 2,005,914 2,809,312 3,786,319
16. Current corporate income tax expenses 312,611 495,801 639,744 933,837
17. Deferred income tax expenses (*) -2,598 -68,137 -37,329 -27,827
18. Net profit after tax 1,075,771 1,578,251 2,206,897 2,880,309
Minority's interest 3,878 878 1,217 1,585
Profit after tax for shareholders of parent company 1,071,894 1,577,372 2,205,680 2,878,724
19. Earnings per share (VND) 7,305 10,246 7,162 6,689

Source: MWG’s financial statement

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APPENDIX 2: COMMON-SIZE INCOME STATEMENT
Income Statement Year 2015 Year 2016 Year 2017 Year 2018
1. Revenue
2. Deduction from revenue
3. Net revenue 100.00% 100.00% 100.00% 100.00%
4. Cost of goods sold 84.47% 83.83% 83.20% 82.32%
5. Gross profit 15.53% 16.17% 16.80% 17.68%
6. Financial income 0.32% 0.30% 0.38% 0.40%
7. Financial expenses 0.16% 0.27% 0.35% 0.51%
Of which: Interest expenses 0.15% 0.27% 0.35% 0.50%
8. Share of associates and joint ventures' result 0.00% 0.00% 0.00% 0.00%
9. Selling expenses 9.31% 9.61% 10.58% 11.17%
10. General and administrative expenses 0.99% 2.10% 2.03% 2.04%
11. Operating profit 5.39% 4.50% 4.21% 4.36%
12. Other income 0.10% 0.07% 0.03% 0.04%
13.Other expenses 0.01% 0.07% 0.01% 0.02%
14. Other profit 0.09% 0.00% 0.02% 0.01%
Share of associates and joint ventures' result 0.00% 0.00% 0.00% 0.00%
15. Profit before tax 5.49% 4.50% 4.23% 4.38%
16. Current corporate income tax expenses 1.24% 1.11% 0.96% 1.08%
17. Deferred income tax expenses (*) -0.01% -0.15% -0.06% -0.03%
18. Net profit after tax 4.26% 3.54% 3.33% 3.33%
Minority's interest 0.02% 0.00% 0.00% 0.00%
Profit after tax for shareholders of parent company 4.25% 3.53% 3.33% 3.33%
Source: MWG’s financial statement

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APPENDIX 3: BALANCE SHEET
Balance Sheet Year 2015 Year 2016 Year 2017 Year 2018
ASSETS
A. SHORT-TERM ASSETS 6,176,432 12,288,142 18,862,861 23,371,995
I. Cash and cash equivalents 343,873 996,983 3,410,983 3,749,550
1. Cash 341,112 994,084 2,189,863 3,363,717
2. Cash equivalents 2,761 2,899 1,221,120 385,833
II. Short-term financial investments 50,922
1. Available for sale securities
2. Provision for diminution in value of available for
sale securities (*)
3. Held to maturity investments 50,922
III. Short-term receivables 636,323 1,410,643 2,765,848 1,542,530
1. Short-term trade accounts receivable 76,907 243,464 1,431,777 369,574
2. Short-term prepayments to suppliers 218,453 315,21 117,942 21,007
3. Short-term inter-company receivables
4. Construction contract progress receipts due from
customers
5. Short-term loan receivables 84,7
6. Other short-term receivables 340,963 851,969 1,131,429 1,151,949
7. Provision for short-term doubtful debts (*)
8. Assets awaiting resolution
IV. Inventories 4,932,685 9,370,732 12,050,163 17,446,005
1. Inventories 5,009,708 9,513,658 12,309,955 17,821,138
2. Provision for decline in value of inventories -77,024 -142,926 -259,793 -375,132
V. Other short-term assets 263,552 509,784 635,867 582,987
1. Short-term prepayments 109,626 207,882 338,17 283,035
2. Value added tax to be reclaimed 153,923 301,9 297,598 298,109
3. Taxes and other receivables from state authorities 3 3 100 1,843
4. Government bonds
5. Other short-term assets
B. LONG-TERM ASSETS 1,089,330 2,566,121 3,959,803 4,750,537
I. Long-term receivables 112,464 179,685 242,116 313,776

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1. Long-term trade receivables

2. Long-term prepayments to suppliers
3. Capital at inter-company
4. Long-term inter-company receivables
5. Long-term loan receivables
6. Other long-term receivables 112,464 179,685 242,116 313,776
7. Provision for long-term doubtful debts
II. Fixed assets 849,147 2,096,423 3,463,658 3,333,148
1. Tangible fixed assets 826,925 2,069,809 3,435,848 3,304,924
- Cost 1,182,770 2,784,487 4,832,700 5,788,326
- Accumulated depreciation -355,844 -714,678 -1,396,852 -2,483,403
2. Financial leased fixed assets
- Cost
- Accumulated depreciation
3. Intangible fixed assets 22,222 26,614 27,81 28,224
- Cost 26,203 31,108 32,779 33,838
- Accumulated depreciation -3,982 -4,494 -4,97 -5,614
III. Investment properties
- Cost
- Accumulated depreciation
IV. Long-term assets in progress 42,855 80,421 35,457 256,832
1. Long-term production in progress
2. Construction in progress 42,855 80,421 35,457 256,832
V. Long-term financial investments 59,938
1. Investments in subsidiaries
2. Investments in associates, joint-ventures 59,938
3. Investments in other entities
4. Provision for diminution in value of long-term
investments
5. Held to maturity investments
6. Other long-term investments
VI. Other long-term assets 72,338 207,087 218,572 234,317
1. Long-term prepayments 56,934 123,545 97,701 84,768

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2. Deferred income tax assets 15,405 83,542 120,87 149,549

3. Long-term equipment, supplies, spare parts
4. Other long-term assets
VII. Goodwill 12,526 2,505 552,527
TOTAL ASSETS 7,265,762 14,854,263 22,822,664 28,122,531
OWNER'S EQUITY
A. LIABILITIES 4,782,210 11,012,906 16,913,748 19,139,496
I. Short -term liabilities 4,782,210 11,012,906 15,713,815 17,929,433
1. Short-term trade accounts payable 1,971,272 4,680,039 7,373,230 8,244,614
2. Short-term advances from customers 19,298 20,044 22,475 38,062
3. Taxes and other payables to state authorities 174,478 152,824 137,422 217,7
4. Payable to employees 52,488 91,33 133,725 149,775
5. Short-term acrrued expenses 307,224 903,458 1,585,372 2,173,065
6. Short-term inter-company payables
7. Construction contract progress payments due to
suppliers
8. Short-term unearned revenue
9. Other short-term payables 175,362 334,546 807,31 1,208,214
10. Short-term borrowings and financial leases 2,052,946 4,788,992 5,603,506 5,836,455
11. Provision for short-term liabilities 24,193 36,722 45,825 56,569
12.. Bonus and welfare fund 4,95 4,95 4,95 4,98
13. Price stabilization fund
14. Government bonds
II. Long-term liabilities 1,199,933 1,210,063
1. Long-term trade payables
2. Long-term advances from customers
3. Long-term acrrued expenses
4. Inter-company payables on business capital
5. Long-term inter-company payables
6. Long-term unearned revenue
7. Other long-term liabilities
8. Long-term borrowings and financial leases 1,199,933 1,208,167
9. Convertible bonds

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10. Preferred stock (Debts)

11. Deferred income tax liabilities 1,896
12. Provision for long-term liabilities
13. Fund for technology development
14. Provision for severance allowances
B. OWNER'S EQUITY 2,483,553 3,841,358 5,908,916 8,983,035
I. Owner's equity 2,483,553 3,841,358 5,908,916 8,983,035
1. Owner's capital 1,468,890 1,539,509 3,169,884 4,434,962
- Common stock with voting right 1,468,890 1,539,509 3,169,884 4,434,962
- Preferred stock
2. Share premium 36,718 36,718 36,718 551,452
3. Convertible bond option
4. Other capital of owners 1,13 1,13 1,13 1,13
5. Treasury shares -2,454 -79 -79 -809
6. Assets revaluation differences
7. Foreign exchange differences -86 447
8. Investment and development fund
9. Fund to support corporate restructuring
10. Other funds from owner's equity
11. Undistributed earnings after tax 977,63 2,261,763 2,698,573 3,989,604
- Accumulated retained earning at the end of the
previous period -31,481 684,391 492,893 1,138,291
- Undistributed earnings in this period 1,009,112 1,577,372 2,205,680 2,851,313
12. Reserves for investment in construction
13. Minority's interest 1,639 2,316 2,776 6,249
14. Financial reserves
II. Other resources and funds
1. Subsidized not-for-profit funds
2. Funds invested in fixed assets
C. MINORITY'S INTEREST
TOTAL OWNER'S EQUITY AND LIABILITIES 7,265,762 14,854,263 22,822,664 28,122,531

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APPENDIX 4: COMMON-SIZE BALANCE SHEET
Balance Sheet 2015 2016 2017 2018
ASSETS
A. SHORT-TERM ASSETS 85.00% 82.73% 82.65% 83.11%
I. Cash and cash equivalents 4.73% 6.71% 14.95% 13.33%
1. Cash 4.69% 6.69% 9.60% 11.96%
2. Cash equivalents 0.04% 0.02% 5.35% 1.37%
II. Short-term financial investments 0.00% 0.00% 0.00% 0.18%
1. Available for sale securities 0.00% 0.00% 0.00% 0.00%
2. Provision for diminution in value of available for
sale securities (*) 0.00% 0.00% 0.00% 0.00%
3. Held to maturity investments 0.00% 0.00% 0.00% 0.18%
III. Short-term receivables 8.75% 9.50% 12.12% 5.49%
1. Short-term trade accounts receivable 1.06% 1.64% 6.27% 1.32%
2. Short-term prepayments to suppliers 3.00% 2.12% 0.52% 0.07%
3. Short-term inter-company receivables 0.00% 0.00% 0.00% 0.00%
4. Construction contract progress receipts due from
customers 0.00% 0.00% 0.00% 0.00%
5. Short-term loan receivables 0.00% 0.00% 0.37% 0.00%
6. Other short-term receivables 4.69% 5.74% 4.96% 4.10%
7. Provision for short-term doubtful debts (*) 0.00% 0.00% 0.00% 0.00%
8. Assets awaiting resolution 0.00% 0.00% 0.00% 0.00%
IV. Inventories 67.89% 63.09% 52.80% 62.03%
1. Inventories 68.95% 64.05% 53.94% 63.37%
2. Provision for decline in value of inventories -1.06% -0.96% -1.14% -1.33%
V. Other short-term assets 3.63% 3.43% 2.79% 2.07%
1. Short-term prepayments 1.51% 1.40% 1.48% 1.01%
2. Value added tax to be reclaimed 2.12% 2.03% 1.31% 1.06%
3. Taxes and other receivables from state authorities 0.01%
4. Government bonds 0.00% 0.00% 0.00% 0.00%
5. Other short-term assets 0.00% 0.00% 0.00% 0.00%
B. LONG-TERM ASSETS 14.99% 17.27% 17.35% 16.89%
I. Long-term receivables 1.54% 1.21% 1.06% 1.12%

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1. Long-term trade receivables 0.00% 0.00% 0.00% 0.00%

2. Long-term prepayments to suppliers 0.00% 0.00% 0.00% 0.00%
3. Capital at inter-company 0.00% 0.00% 0.00% 0.00%
4. Long-term inter-company receivables 0.00% 0.00% 0.00% 0.00%
5. Long-term loan receivables 0.00% 0.00% 0.00% 0.00%
6. Other long-term receivables 1.54% 1.21% 1.06% 1.12%
7. Provision for long-term doubtful debts 0.00% 0.00% 0.00% 0.00%
II. Fixed assets 11.68% 14.11% 15.18% 11.85%
1. Tangible fixed assets 11.38% 13.94% 15.05% 11.75%
- Cost 16.28% 18.74% 21.18% 20.58%
- Accumulated depreciation -4.90% -4.81% -6.12% -8.83%
2. Financial leased fixed assets 0.00% 0.00% 0.00% 0.00%
- Cost 0.00% 0.00% 0.00% 0.00%
- Accumulated depreciation 0.00% 0.00% 0.00% 0.00%
3. Intangible fixed assets 0.30% 0.18% 0.12% 0.10%
- Cost 0.36% 0.21% 0.14% 0.12%
- Accumulated depreciation -0.06% -0.03% -0.02% -0.02%
III. Investment properties 0.00% 0.00% 0.00% 0.00%
- Cost 0.00% 0.00% 0.00% 0.00%
- Accumulated depreciation 0.00% 0.00% 0.00% 0.00%
IV. Long-term assets in progress 0.59% 0.54% 0.15% 0.91%
1. Long-term production in progress 0.00% 0.00% 0.00% 0.00%
2. Construction in progress 0.59% 0.54% 0.15% 0.91%
V. Long-term financial investments 0.00% 0.00% 0.00% 0.21%
1. Investments in subsidiaries 0.00% 0.00% 0.00% 0.00%
2. Investments in associates, joint-ventures 0.00% 0.00% 0.00% 0.21%
3. Investments in other entities 0.00% 0.00% 0.00% 0.00%
4. Provision for diminution in value of long-term
investments 0.00% 0.00% 0.00% 0.00%
5. Held to maturity investments 0.00% 0.00% 0.00% 0.00%
6. Other long-term investments 0.00% 0.00% 0.00% 0.00%
VI. Other long-term assets 0.99% 1.39% 0.96% 0.83%
1. Long-term prepayments 0.78% 0.83% 0.43% 0.30%

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2. Deferred income tax assets 0.21% 0.57% 0.53% 0.53%

3. Long-term equipment, supplies, spare parts 0.00% 0.00% 0.00% 0.00%
4. Other long-term assets 0.00% 0.00% 0.00% 0.00%
VII. Goodwill 0.18% 0.02% 0.00% 1.97%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
OWNER'S EQUITY
A. LIABILITIES 65.81% 74.14% 74.11% 68.05%
I. Short -term liabilities 65.81% 74.14% 68.85% 63.75%
1. Short-term trade accounts payable 27.13% 31.51% 32.31% 29.32%
2. Short-term advances from customers 0.26% 0.13% 0.10% 0.14%
3. Taxes and other payables to state authorities 2.39% 1.03% 0.60% 0.78%
4. Payable to employees 0.72% 0.61% 0.59% 0.53%
5. Short-term acrrued expenses 4.23% 6.08% 6.94% 7.73%
6. Short-term inter-company payables 0.00% 0.00% 0.00% 0.00%
7. Construction contract progress payments due to
suppliers 0.00% 0.00% 0.00% 0.00%
8. Short-term unearned revenue 0.00% 0.00% 0.00% 0.00%
9. Other short-term payables 2.41% 2.26% 3.54% 4.30%
10. Short-term borrowings and financial leases 28.25% 32.24% 24.55% 20.75%
11. Provision for short-term liabilities 0.33% 0.25% 0.20% 0.20%
12.. Bonus and welfare fund 0.07% 0.03% 0.02% 0.02%
13. Price stabilization fund 0.00% 0.00% 0.00% 0.00%
14. Government bonds 0.00% 0.00% 0.00% 0.00%
II. Long-term liabilities 0.00% 0.00% 5.26% 4.30%
1. Long-term trade payables 0.00% 0.00% 0.00% 0.00%
2. Long-term advances from customers 0.00% 0.00% 0.00% 0.00%
3. Long-term acrrued expenses 0.00% 0.00% 0.00% 0.00%
4. Inter-company payables on business capital 0.00% 0.00% 0.00% 0.00%
5. Long-term inter-company payables 0.00% 0.00% 0.00% 0.00%
6. Long-term unearned revenue 0.00% 0.00% 0.00% 0.00%
7. Other long-term liabilities 0.00% 0.00% 0.00% 0.00%
8. Long-term borrowings and financial leases 0.00% 0.00% 5.26% 4.30%
9. Convertible bonds 0.00% 0.00% 0.00% 0.00%

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10. Preferred stock (Debts) 0.00% 0.00% 0.00% 0.00%

11. Deferred income tax liabilities 0.00% 0.00% 0.00% 0.01%
12. Provision for long-term liabilities 0.00% 0.00% 0.00% 0.00%
13. Fund for technology development 0.00% 0.00% 0.00% 0.00%
14. Provision for severance allowances 0.00% 0.00% 0.00% 0.00%
B. OWNER'S EQUITY 34.19% 25.86% 25.89% 31.94%
I. Owner's equity 34.19% 25.86% 25.89% 31.94%
1. Owner's capital 20.22% 10.37% 13.89% 15.77%
- Common stock with voting right 20.22% 10.37% 13.89% 15.77%
- Preferred stock 0.00% 0.00% 0.00% 0.00%
2. Share premium 0.51% 0.25% 0.16% 1.96%
3. Convertible bond option 0.00% 0.00% 0.00% 0.00%
4. Other capital of owners 0.01% 0.01% 0.00% 0.00%
5. Treasury shares -0.03% 0.00%
6. Assets revaluation differences 0.00% 0.00% 0.00% 0.00%
7. Foreign exchange differences 0.00% 0.00%
8. Investment and development fund 0.00% 0.00% 0.00% 0.00%
9. Fund to support corporate restructuring 0.00% 0.00% 0.00% 0.00%
10. Other funds from owner's equity 0.00% 0.00% 0.00% 0.00%
11. Undistributed earnings after tax 13.46% 15.23% 11.83% 14.19%
- Accumulated retained earning at the end of the
previous period -0.43% 4.60% 2.16% 4.05%
- Undistributed earnings in this period 13.89% 10.62% 9.67% 10.14%
12. Reserves for investment in construction 0.00% 0.00% 0.00% 0.00%
13. Minority's interest 0.03% 0.01% 0.01% 0.02%
14. Financial reserves 0.00% 0.00% 0.00% 0.00%
II. Other resources and funds 0.00% 0.00% 0.00% 0.00%
1. Subsidized not-for-profit funds 0.00% 0.00% 0.00% 0.00%
2. Funds invested in fixed assets 0.00% 0.00% 0.00% 0.00%
C. MINORITY'S INTEREST 0.00% 0.00% 0.00% 0.00%
TOTAL OWNER'S EQUITY AND LIABILITIES 100.00% 100.00% 100.00% 100.00%
Source: MWG’s financial statement

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APPENDIX 5: CASH FLOW STATEMENT

CashFlow Indirect Year 2015 Year 2016 Year 2017 Year 2018
I. CASH FLOWS FROM OPERATING
ACTIVITIES
1. Profit before tax 1,385,784 2,005,914 2,809,312 3,786,319
2. Adjustments for:
Depreciation of fixed assets and properties
investment 197,056 386,635 689,714 1,222,869
(Reversal of provisions)/provisions 32,187 78,431 125,969 126,084
Foreign exchange (gain)/loss from revaluation of
monetary items denominated in foreign currencies -139 -91 912 -107
Loss/(profit) from investment activities -856 2 -35,337 -84,857
Interest expense 38,894 119,646 233,202 436,417
Loss/(profits) from disposal of fixed asset
Interest income and dividends
Allocation of goodwill
Adjustments for
3. Operating profit before changes in working
capital 1,652,926 2,590,537 3,823,772 5,486,723
(Increase)/decrease in receivables -476,685 -989,518 -1,322,949 1,246,647
(Increase)/decrease in inventories -2,756,192 -4,503,949 -2,796,298 -4,672,944
Increase/(decrease) in payables (other than interest,
corporate income tax) 1,235,357 3,124,565 3,970,337 1,331,043
(Increase)/decrease in prepaid expenses -63,387 -164,867 -96,806 126,753
Changes in available for sale securities
Interest paid -37,443 -112,395 -223,724 -427,564
Corporate income tax paid -196,048 -530,854 -690,668 -829,523
Other receipts from operating activities
Other payments for operating activities
NET CASH FLOWS FROM OPERATING
ACTIVITIES -641,471 -586,482 2,663,664 2,261,135
II. CASH FLOWS FROM INVESTING
ACTIVITIES
1. Payment for fixed assets, constructions and other
long-term assets -586,518 -1,278,789 -2,065,070 -1,495,932

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 Mobile World Investment Corporation
2. Receipts from disposal of fixed assets and other
long-term assets 952 180 1,34
3. Loans, purchases of other entities' debt instruments -210,28 -85,922
4. Receipts from loan repayments, sale of other
entities' debt instruments 125,58
5. Payments for investment in other entities -72,24 -828,166
6. Collections on investment in other entities
7. Dividends, interest and profit received 914 1,799 29,375 64,287
8. Increase/(Decrease) in term deposit
9. Purchases of minority shares of subsidiaries
10. Other receipts from investing activities
11. Other payments for investing activities
NET CASH FLOWS FROM INVESTING
ACTIVITIES -657,844 -1,276,038 -2,120,215 -2,344,394
III. CASH FLOWS FROM FINANCING
ACTIVITIES
1. Receipts from equity issue and owner's capital
contribution 92,466 703,84
2. Payment for share repurchases -2,154 -315 -730
3. Proceeds from borrowings 8,129,262 19,961,551 29,465,789 31,893,805
- - -
4. Principal repayments -6,695,006 17,225,505 27,456,000 31,690,849
5. Repayment of financial leases
6. Dividends paid, profits distributed to owners -1,834 -220,13 -231,719 -485,862
7. Other receipts from financing activities
8. Other payments for financing activities 1,515
NET CASH FLOWS FROM FINANCING
ACTIVITIES 1,430,268 2,515,600 1,870,537 421,719
Net cash flows during the period 130,952 653,081 2,413,986 338,46
Cash and cash equivalents at beginning of the
period 212,921 343,873 996,983 3,410,983
Exchange difference due to re-valuation of ending
balances 30 14 107
Cash and cash equivalents at end of the period 343,873 996,983 3,410,983 3,749,550
Source: MWG’s financial statement

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 Mobile World Investment Corporation

APPENDIX 6: KEY FINANCIAL ANALYSIS

Valuation ratios 2015 2016 2017 2018
Trailing EPS 8,373 10,736 9,286 8,672
Book value per share (BVPS) 16,908 24,96 18,655 20,871
P/E Times - 14.53 14.11 10.03
P/B Times - 6.25 07.02 4.17
P/S Times - 0.51 0.47 0.33
Dividend yield % - - - -
Beta 0.91 01.07 - -
EV/EBIT Times 7.37 10.00 14.36 7.12
EV/EBITDA Times 6.47 8.46 11.71 5.52
Profitability ratios 2015 2016 2017 2018
Gross profit margin % 15.53 16.17 16.80 17.68
EBIT margin % 5.64 4.76 4.59 4.88
EBITDA/Net revenue % 6.42 5.63 5.63 6.29
Net profit margin % 4.26 3.54 3.33 3.33
ROE % 54.16 49.88 45.24 38.66
Return on capital employed (ROCE) % 71.82 67.21 55.57 48.81
ROA % 20.09 14.26 11.71 11.30
Growth rates 2015 2016 2017 2018
Net revenue % 60.27 76.67 48.70 30.41
Gross profit % 63.70 83.92 54.44 37.25
Profit before tax % 59.62 44.75 40.05 34.78
Profit after tax for shareholders of the parent
company % 60.44 47.16 39.83 30.51
Total assets % 113.25 104.44 - -
Long-term liabilities % - - - 0.84
Liabilities % 148.66 130.29 53.58 13.16
Owner's equity % 68.38 54.67 53.82 52.03
Charter capital % 31.20 4.81 105.90 39.91
Year Year Year Year
Liquidity ratios 2015 2016 2017 2018
Cash ratio Times 0.07 0.09 0.22 0.21
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 Mobile World Investment Corporation

Quick ratio Times 0.26 0.26 0.43 0.33

Quick ratio (except: Inventories, Short-term
receivables - reference) Times 0.07 0.09 0.22 0.21
Short-term ratio Times 1.29 1.12 1.20 1.30
Interest coverage Times 36.63 17.77 13.05 9.68
Year Year Year Year
Efficiency ratios 2015 2016 2017 2018
Receivables turnover Times 416.07 278.51 79.20 96.06
Days of sales outstanding 1 1 5 4
Inventory turnover Times 5.98 5.23 5.15 4.83
Days of inventory on hand 61 70 71 76
Payables turnover Times 14.45 11.25 9.16 9.12
Number of days of payables 25 32 40 40
Fixed asset turnover Times 39.35 30.29 23.86 25.46
Total asset turnover Times 4.73 04.03 3.52 3.40
Equity turnover Times 12.76 14.11 13.61 11.62
Year Year Year Year
Leverage ratios 2015 2016 2017 2018
Short-term liabilities to total liabilities % 100.00 100.00 92.91 93.68
Debt to assets % 28.26 32.24 29.81 25.05
Liabilities to assets % 65.82 74.14 74.11 68.06
Equity to assets % 34.18 25.86 25.89 31.94
Short-term liabilities to equity % 192.56 286.69 265.93 199.59
Debt to equity % 82.66 124.67 115.14 78.42
Liabilities to equity % 192.56 286.69 286.24 213.06
Source: MWG’s financial statement

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