Information Memo

Project MarCom
A Leading Tech-powered and Data-driven Mobile
and Digital Marketing Company in Vietnam.
Executive Summary
 A Top-3 Mobile Marketing Company, powered by Technology and Data
▪ For 16 years, MarCom has been a top 3 mobile marketing company Quick Facts
in Vietnam.
▪ Not only is MarCom an agency but the Company is also renowned as 35% market share in mobile marketing
a marketing technology company. MarCom has self-developed
proprietary IT platforms to support marketing activities and provided 03 top 3 market leader in mobile marketing
tailor-made mobile marketing solutions for clients.
500+ domestic and international customers
▪ In addition to mobile marketing, MarCom also provides digital
marketing, marketing platforms and marketing automation services. 95% ratio of repeat customers
▪ Markets: Vietnam, Myanmar and Laos.
1,500+ completed projects and campaigns
▪ Innovative product to debut in August 2020: “MARCOM ONE”, a
unified communication platform that integrates all messaging APIs 10 self-developed IT platforms
into one platform. As the first of its kind in Vietnam, its attractiveness
is the ability to offer customers extreme convenience and flexibility in 50 million user bandwidth
managing their communication channels in one single platform.

Shareholding Structure
20 large international partners

60 employees

Foreign Institutional
USD17+ mn 2020 net revenue
shareholders shareholders
Local
shareholders
37% Individual
shareholders
44% >17% EBITDA CAGR
63% 56%
> 22% revenue CAGR

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4
Company Vision and Strategic Growth Initiatives

“To become a leading marketing company in Southeast Asia providing management services on implementing multi-channel
marketing strategy on a single platform.”

Full integration with telcos and OTT service providers

Focus on services related to telcos and fully connect with popular
interaction platforms in Vietnam such as Zalo, Viber... on a
common platform to be efficient & sufficient for customers.

Customer value creation

Focus on quality, optimize benefits for customers to maintain
market share and expand services.

Growth via strategic acquisitions

Strategically acquire select companies operating in relevant
industries for business synergies and economy of scale.

Multimedia omnichannel approach

Consult digital marketing implementation with multimedia
platforms approach.

Regional market expansion

Myanmar market footprint has been established and Laos is next.

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Key Financial Highlights and Financial Projection
1. Clean, transparent and audited financial info
Financial statements are audited by , the sixth largest global audit firm, and ready Revenue (VND mn) Operating (1) EBITDA and NPAT (VND mn)
for easy financial consolidation. Financial accounts are clean, maintained professionally
with no unusual related party transactions, no financial commingling between company and 9,279
2019 378,685 2019
owners. These are typical issues in Vietnamese companies. 12,399

2. Consecutive years of growth in revenue and operating profit 7,632

2018 288,493 2018
Revenue, operating EBITDA (1) and operating net profit after tax increased by CAGR of 10,594
22%, 17% and 17% respectively from 2016 to 2019. Due to Covid19, these growth figures
are conservatively expected to slow down in 2020 - 2022 (see table below). 2017 252,971 2017
7,415
9,903
3. Attractive Return on Invested Capital (ROIC)
MarCom’s ROIC is very high compared to the general investment market in Vietnam. 5,784
2016 209,867 22% CAGR 2016 17% CAGR
7,758
Averaged about 18%, ROIC has increased from 15% to 21% between 2016 and 2019. The
improved ROIC resulted from increase in invested capital turnover(2). Operating NPAT Operating EBITDA

4. Cash-cow business with zero debt and abundant cash reserve

MarCom has never needed to borrow from lenders because the business is able to ROIC, ROE and invested capital turnover(2) Abundant cash reserve (VND mn)
generate excess cash. As of December 2019, MarCom had circa VND32,127 mn excess 25% Invested capital turnover (RHS) 9.0
ROIC (LHS) 64,254
cash reserve which can be used for any purpose.
ROE (LHS) 8.0
21% Total cash
20% 7.0 49,143
5. Ability to amplify ROE via financial leverage 18%
18% Excess cash
Given the high ROIC (21%), low after-tax cost of debt in Vietnam (~7% p.a.) and 15%
6.0
15% 15% 14% 36,037
MarCom’s zero debt, it’s absolutely possible to amplify and increase ROE to 3x% or 4x% 14% 13% 5.0
32,127
depending on level of financial leverage. 8.5 4.0 24,648 24,572
10% 6.8
6.3 3.0 18,019
Key Financial Projections 5.4
2.0 12,324
5%
2019(audited) 2020(audited) 2021e 2022e
1.0
Revenue 378,685 397,745 548,000 600,000
0% -
2016 2017 2018 2019 2016 2017 2018 2019
Operating EBITDA(1) 12,399 6,175 9,050 12,550

EBITDA 13,327 7,112 9,750 13,050 Source: MarCom’s audit reports

Operating NPAT 9,279 3,992 5,040 7,600 Note: (1) operating profit metrics exclude excess interest income earned from excess cash.
(2) invested capital turnover = revenue / invested capital
NPAT 10,022 4,704 5,600 8,000

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Investment Structure and Investment Thesis
Transaction Structure
▪ Investor(s) has an opportunity to acquire between 40% and 100% of the
existing shares of MarCom from existing shareholders. The expected
sales price for 40% stake is USD4.3 mn, equivalent to an equity value of
USD10.8 mn.
▪ Sales price is negotiable depending on deal terms, profile of the
investor(s), or in the event of a majority/buyout acquisition (N.B.: by law,
there is no foreign ownership limit in MarCom).
▪ Even in the event of a 40% stake acquisition, besides a major
shareholder’s statutory rights, investor(s) are entitled to appoint their own
new CEO to operate the company following the transaction.
Contact Information
Pham Ngoc Bich, Managing Director
bich.pn@hsc.com.vn
+84 9080 88987
Pham Minh Nhat, Director
nhat.pm@hsc.com.vn
+84 7689 39969
Key Investment Thesis
1. Unique opportunity to acquire one of the market leaders
As a top-3 mobile marketing company, MarCom represents an attractive unique
opportunity for investor to quickly, safely, profitably and efficiently penetrate
Vietnamese mobile marketing and digital marketing space as a market leader.
2. Large customer base, strong brand and skilled management team
MarCom has a strong brand, proven management’s ingenuity and execution
capability, and 500+ connected customers. These critical enablers allow very
quick, efficient and effective debut of new products or services at large scale
(revenue synergies).
3. Professionally managed company, good corporate governance
The business is centered on only marketing services, there are no non-core
activities. Financial accounts are audited, maintained professionally with no
unusual related party transactions, no financial commingling between company
and owners. MarCom has strict policy on financial management.
4. Robust financial performance and position (detailed in previous page)
▪ Clean, transparent and audited financial info.
▪ Consecutive years of growth in revenue and operating profit.
▪ Attractive Return on Invested Capital (ROIC).
▪ Cash-cow business with zero debt and abundant cash reserve.
▪ Ability to amplify ROE via financial leverage.
5. A lucrative industry poised for fuel growth
Adjusted by Covid19 impact, Vietnam digital adspend is expected to grow 9% p.a.
from USD259 mn in 2017 to USD390 mn in 2024. Despite lack of statistics, digital
marketing industry is anecdotally believed by industry experts to be significantly
larger than digital adspend.
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Detailed Services,
Company’s Strengths
Mobile Marketing Services
As an agency and a technology company, MarCom provides mobile marketing services in two ways:
1. One-stop marketing services from research to strategy, design, plan, implementation, evaluation and optimization.
2. Communication platform and tailored-made technical solutions for businesses to communicate with consumers across any mobile channel.

TELCO SERVICES OVER-THE-TOP (OTT) MESSAGING

BRANDED SMS Top 3 messaging
apps in Vietnam in
• ADVERTISING SMS active users
• CUSTOMER CARE SMS • BRANDED MESSAGING
• A2P SMS… • LOCATION-BASED MESSAGING
• TARGETED ADVERTISING
SMS LOCATION
• PERSONALISED ADVERTISING
• A2P MESSAGING
• GEO-TARGETING
• GEO-FENCING… • 2-WAY INTERACTIVE MESSAGING…

TECHNICAL SOLUTIONS PUSH MESSAGE IN APP

SMS GATEWAY GOOGLE RCS (COMING)

2-WAY INTERACTIVE SMS BASED ON SMS APPLE MESSAGE (COMING)

GATEWAY
BENEFIT OVER SMS:
MOBILE REWARDS COMMUNICATE WITH RICH MEDIA CONTENT AND
LONGER MESSAGES.
SHORTCODE FOR MOBILE REWARDS
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IT Platforms and Applications
▪ As a tech company, MarCom has developed several IT platforms
and applications to support its own or its customers’ mobile and Platform (1) Description
digital marketing activities. Since 2019, MarCom has become a
online mobile data management platform where marketers can
Golden Certified Partner of in Vietnam. Mobile-Data increase the amount of interaction with mobile device users through
supported services on mobile data.
▪ New CPaaS product: MarComOne, a unified communication
online self-service mobile ad campaign platform installed on telco’s
platform, is expected to debut in August 2020. As the first of its Telco-MobileAd-
system, where marketers can create and manage campaigns on
kind in Vietnam, it is expected to be a big hit in the coming years. Campaign telco channels such as SMS, USSD, flash SMS, MMS, etc.
online self-service SMS campaign platform where marketers can
MarComOne - Value propositions SMS-Campaign set up and manage SMS campaigns anytime, anywhere and reach
Unified Messaging Channels over 145 million subscribers in Vietnam.
Workflow Automation online Management Information Application for Brand Activation
Campaigns/Events. The app features effective inventory
Unified CRM BrandActivation- management, HR management, KPI measurements, management
Info-Management reports, customer data collection, and ability to integrate lucky
draws, mobile rewards, SMS, topup, interactive games, etc.
online influencers/KOLs intelligence platform where marketers can
InfluencerKOL- look into factual effectiveness of potential influencers/KOLs that
Info-Platform they consider engaging.

livestream solution to increase effectiveness/efficiency of livestream

MarCom LiveStream- campaigns, promote social media audience

One Solution interaction/engagement, and meet campaign KPIs via the use of
technology.
Platform-as-a-Service (PaaS) that provides a full suite of
professional modern business tools to manage sales, marketing,
customer service and content management system (CMS).
unified Communication Platform as a Service (CPaaS) where
Personalised Messaging MarCom turns multiple messaging channels into one single point of
MarComOne access, and provides one simple powerful API and tools to use it.
Broadcast Campaign Businesses can send multi-channel messages, using only one API.

Popular Platform Integration Note: (1) real names have been replaced with aliases for confidentiality purposes.
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Digital Marketing Services
▪ Leveraging its strong position in mobile marketing, wide customer/partner network and technological capability, MarCom started venturing
into digital marketing since 2014.
▪ The Company offers one-stop digital marketing services covering all digital media channels, and ranging from marketing research to
strategy, planning, execution, evaluation and optimization. In addition, MarCom started offering marketing automation service in 2019.

360-Degree Digital Marketing Services

Display Ads Creative, Content & Consultancy

Online Banners, Google Ads, Facebook
Ads, Mobile Ads Network, Wifi Digital Strategy & Planning, Media Planning, Creative
Marketing Ads, Zella DSP, Tik tok Ads Ideas, Fan page Content & PR Content, Marketing
Material Designing

OTT Marketing
Viber Ads, Zalo Ads, Skype Ads Production
Mobile App, Mini Branded Game,
Microsite Website, Facebook App,
Commercial Video, Video
Livestream, Viral Video, TVC

Social Media Marketing

Facebook Fanpage Management, Media Booking
Facebook Seeding, Forum Seeding, Online PR, Newspaper &
KOLs, Influencers, Hot Fanpage Magazines, Radio, TV Ads

Search Marketing Email Marketing

Google Search, Coc Coc Search Email Marketing Automation
Platform, E-newsletter design, E-
newsletter campaign management
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MarCom’s Strengths and Competitive Advantages
Branding
Top 3 digital marketing agency with thousands of customers in
Vietnam and international.

Local Conduit
Chosen local partner for global players such as Facebook,
Google, Hubspot… in combination with our innovative martech
solutions on a robust system (40-50 million user bandwidth).

Diverse Experience
15-year in-depth hands-on experience in crafting and executing
successful marketing strategies for startups, SMEs and large
enterprises in Vietnam, Myanmar, Laos, Cambodia and Singapore.

High Customer Satisfaction

A client-oriented team of 60 passionate professionals with diverse
performance reporting in multiple marketing service fields; 95% of
customers are repeat customers.

What sets us apart One-stop Service Provider

One-stop marketing services from research to strategy, design,
from competition? plan, implementation, evaluation and optimization.

Intimate Relationships with Telcos

A long-time trusted business partner of leading telcos in Vietnam
and international.
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MarCom considers People a Key Success Factor
MarCom’s human-centric policy is to nurture and empower
employees for personal development and to become future leaders.
Recognition
KPIs, performance
evaluation, incentive,
promotion…
Empowerment
Initiative, autonomy,
accountability,
creativity…
Delegation
Assigned tasks,
instructions,
supervision…
Training
On-the-job training,
crash courses,
mentoring…
As a result, employee turnover is low, most employees have long service term.

Teamwork Corporate
Retreat
Work
Training
Environment

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MarCom has Long-standing Relationships with High-profile Clients
Client examples

Note: the list is for illustrative purposes and is by no means exhaustive.

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Industry Overview
Significant Potential for Mobile and Digital Marketing in Vietnam

Total Population Mobile Phone Internet Users Internet Users (on Active Social
9th Subscribers Mobile Phones) Media Users
fastest growing
country in
netizens.

100 MILLION 145.8 MILLION 68.2 MILLION 66 MILLION 65 MILLION

10% Urbanisation:
36%
Penetration:
150%
Penetration:
70%
Penetration:
68%
Penetration:
67%
Yoy growth of
Internet users and Smart Phone Laptop/PC Tablet Device Messaging App Online Hours per
social media users. Owners Owners Owners Users Day per Netizen

Source: Digital Vietnam 2020

- WeAreSocial, Hootsuite

63.4 MILLION 44.3 MILLION 21.8 MILLION 63.4 MILLION 6 HRS 30 MINS
Penetration: Penetration: Penetration: Penetration:
65% 46% 22% 65%

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Digital Advertising and Marketing Spending in Vietnam

▪ Vietnam digital advertising spending (1) amounted to USD259 mn in 2019.

▪ By 2024, digital advertising spending is forecasted to reach USD390 mn, accounting for circa. 25% of total media advertisingspending.
Adjusted for COVID19 impact, the market is expected to grow 9% annually between 2019 and 2024.
▪ Statistics on total digital marketing industry is not available, but anecdotally believed by industry experts to be significantly larger than
digital advertising spending.

Digital ad spending in 2019 (USD mn) Projected digital ad spending in 2024 (USD mn)

390
25
Digital ads 259 9% CAGR

37 Video ads 177

101 Classifieds 2024
USD259 mn Banner ads 2019
Social media ads 2017
42 Search ads 76
Social media ads 54

54 36

Source: Statista - Vietnam Digital Advertising June 2020 (adjusted for expected impact of COVID-19.
Note: (1) includes only Search Advertising, Social Media Advertising, Banner Advertising, Video Advertising as well as Classifieds.
Email marketing, audio ads, influencer marketing or sponsorships, product placement, affiliate marketing, etc. are not accounted.
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Key Marketing Developments in Vietnam
Traditional-to-Digital Marketing Transition
Integrated Sales-Support Platforms Rising cognition and implementation of digital
Rising PaaS providers to support small and
medium enterprises with sales, advertising,
1 marketing thanks to its better merits and
pervasive ownership of mobile devices.
2
delivery and payment.

Marketing Technology
Critical Data-driven Marketing

3
Marketers, agencies, tech
Marketing
companies are all Based on data compilation
embracing new marketing
technologies. Developments
and analytics to strategise
campaigns.
4

360-Degree Digital Marketing

5 Agencies expand to offer

full digital marketing
Marketing Automation
New but gaining momentum; 6
services. need to educate the market.
Industry Consolidation

7 Robust ambitious
agencies are looking to
expand via M&As of
smaller companies.
Marketing Digitisation
8 Marketers increasingly
digitize or outsource part
of their marketing function.
Omnichannel Marketing Service

9
Agencies expand to become a
one-stop shop offering both
traditional and digital marketing
services.
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Contact Info

Pham Ngoc Bich, Managing Director

bich.pn@hsc.com.vn
+84 9080 88987

Pham Minh Nhat, Director

nhat.pm@hsc.com.vn
+84 7689 39969