VCI Global Limited Q4 FY2024 earnings call

• VCI Global achieved a 41% revenue increase in fiscal year 2024, driven by solid performance across all business segments. - The technology division excelled, particularly in AI and cybersecurity services, with innovations in generative AI and AI-powered digital human technology. - V Capital Consulting Group Limited (VCCG), the capital markets advisory division, is preparing for a carve-out IPO, demonstrating confidence in the capital market advisory space. - The company expanded its regional footprint with new offices in Singapore and Hong Kong to scale cybersecurity and capital market advisory services. - VCI Global is implementing a cross-sector platform strategy, integrating AI infrastructure, CSaaS, Fintech solutions, renewable energy assets, and capital market advisory for future growth.

In fiscal year 2024, VCI Global achieved a 41% revenue increase, reaching $27.8 million. Revenue from the business strategy consultancy segment saw a 1% increase, from US$14.7 million in 2023 to US$14.8 million in 2024, accounting for approximately 53.24% of the total revenue. The technology development solutions and consultancy segment experienced remarkable growth, with revenue surging 155% to US$11.4 million in 2024 from US$4.5 million in the previous year, making up around 40.97% of the total revenue. EBITDA rose by 13% to US$8.3 million in 2024, representing a 30% margin on revenue, and net income amounted to US$7.6 million with earnings per share increasing by 143% to US$0.51.

• In 2025, VCI Global will continue to accelerate the development of its cross-sector platform strategy, seamlessly integrating AI infrastructure, CSaaS, Fintech solutions, renewable energy assets, and capital market advisory. - The carve-out IPO of VCCG is planned to occur in the third quarter of 2025. - VCI Global will further scale the AI and cybersecurity capabilities at V Gallant.

• Macro-economic challenges and volatility that could impact business performance. - Geopolitical tensions that may affect operations and supply chains. - Intense competition in the cybersecurity and AI infrastructure sectors.

Q: Can you elaborate on some of the key financial highlights for fiscal year 2024, particularly areas where VCI Global demonstrated the strongest performance?

A: In fiscal year 2024, VCI Global saw a 41% revenue increase to $27.8 million, driven by solid contributions from all segments. The technology division performed exceptionally well in AI and cybersecurity services, and net profit rose to US$7.5 million despite increased investments in talent, infrastructure, and strategy initiatives.

Q: On more strategic note, can you explain how VCI Global and its cross-sector offerings will benefit shareholders?

A: VCI Global's cross-sector strategy creates synergies, offering comprehensive bundle services to meet multiple client needs. This increases customer lifetime value, reduces customer acquisition costs, leads to higher margins and a resilient recurring revenue base, and positions the company for growth in high-growth sectors to maximize shareholder value.

Q: With the carve-out IPO of VCCG in the pipeline, is VCIG considering additional carve-out for other business segments. Could you elaborate on the broader strategy behind this approach? Additionally, can you provide more details on VCCG carve-out and its growth potential?

A: The carve-out IPO of VCCG is part of incubating high-potential business units to unlock value. VCCG has shown strong momentum in IPO and M&A services and is expected to IPO in the third quarter of 2025, providing VCCG with greater visibility and access to capital. The model will be replicated for other fast-growing segments like AI and cybersecurity.

Q: We also received a question via email asking whether VCI Global has an international expansion strategy beyond the previously mentioned expansions in Singapore and Hong Kong.

A: VCI Global established offices in Singapore and Hong Kong in the first quarter of 2025, with country CEOs to be appointed shortly. It is also in advanced talks to expand into the Middle East, aiming to become a global player in technology and consulting verticals to scale services and diversify revenue streams.

Q: Given the current geopolitical tensions and growing interest in AI infrastructure, how is your subsidiary V Gallant navigating these challenges, especially since V Gallant integrate both DeepSeek's LLM and NVIDIA's GPU and how does your AI infrastructure stand out in a crowded market?

A: V Gallant is strategically positioned to navigate geopolitical tensions by offering a flexible AI infrastructure that bridges Eastern and Western technologies through the integration of DeepSeek's LLM and NVIDIA's GPU. This hybrid approach provides resilient and region-agnostic solutions. VCI Global's AI-as-a-service model, DeepAI, is cost-efficient, fast, and scalable, allowing clients to deploy tailored AI solutions within 24 hours and supporting both NVIDIA's GPU and alternative regional hardware.

Q: VCI Global has developed a proprietary cybersecurity-as-a-service solution. Can you speak to the competitive landscape in this space and what differentiates your platform from the others in the market?

A: VCI Global's proprietary cybersecurity-as-a-service solution, CyberSecure, offers comprehensive real-time protection at hardware and software levels. It features automated OS backup for immediate data recovery and military grid encryption at the chip level. Delivered via a subscription model, it reduces upfront CapEx and ensures ongoing access to the latest security updates, setting it apart in the competitive cybersecurity space.