Company Presentation Dohome Public Company Limited 6 December 2019 - PowerPoint PPT Presentation

Company Presentation Dohome Public Company Limited 6 December 2019

Table of Contents 1 Dohome Business Overview 2 Operating Results for 9M2019 3 Business Outlook 2

STRICTLY PRIVATE & CONFIDENTIAL Dohome Business Overview

Dohome Business Overview As of 30 September 2019 Target Customer Group and Revenue One-stop Home Products Destination Breakdown by Product Group (1) International Suppliers Domestic Suppliers End-users Resellers Contractors Government and Projects Agencies and (Retail) (Wholesale) State Enterprise Home Products Services & Solution Retail Space (212,829 sq.m.) Warehouse Space (246,341 sq.m.) Branches Delivery Service Repair and Maintenance Service 9 2 Home Installation Service branches in operation branches in operation new branches within 2021 with new branches within 7 88 Design Center Petchkasem branch opening in Nov 2019 2021 Dohome Dohome To Go Special Order Sales Team Call Center and Telesales 4 Website

STRICTLY PRIVATE & CONFIDENTIAL Operating Results for 9M2019

P&L Summary 9M2018 9M2019 Changes THB mm % THB mm % THB mm % Revenue from sales and services 14,009.7 99.5 13,544.1 99.3 -465.6 -3.3 Other incomes 66.6 0.5 92.6 0.7 26.0 39.1 Total revenue 14,076.3 100.0 13,636.7 100.0 -439.6 -3.1 COGS 11,919.0 84.7 11,317.8 83.0 -601.2 -5.0 14.9 (1) 16.4 (1) Gross profit 2,090.7 2,226.3 135.6 6.5 Selling & Administrative expenses 1,432.9 10.2 1,393.2 10.2 -39.7 -2.8 Other expenses 3.0 0.0 8.1 0.1 5.1 167.0 EBIT 721.3 5.1 917.6 6.7 196.3 27.2 Interest expenses 232.4 1.7 227.6 1.7 -4.8 -2.1 Tax expenses 102.9 0.7 116.9 0.9 14.0 13.6 Net income 386.1 2.7 573.1 4.2 187.1 48.5 Depreciation & Amortization 286.6 2.0 305.3 2.2 18.7 6.5 EBITDA 1,007.9 7.2 1,222.9 9.0 214.9 21.3 6 Note: (1) Gross profit margin calculated based on revenue from sales and services

Revenue from Sales and Services THB mm 1.5% 0.2% -1.6% -1.7% -2.7% -5.5% -8.2% 18,538 18,576 18,445 14,010 13,544 4,432 4,118 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Revenue from Sales and Services SSSG (1) Key Changes in 9M2019 9M2019’s revenue from sales and services was down by 3.3% YoY mainly due to the decrease in revenues from matured branches fr om the ◼ slowdown in the country’s economic conditions and competitive landscape in the industry and the big flooding in Ubon Ratchathani in September 2019 that negatively affected the Ubon Ratchathani branch. ◼ However, revenues from branches in the ramp-up phase continue to increase, namely Rama 2 branch, Bang Bua Thong branch, Chiangmai branch and especially, Bangna branch which will completed its first full-year in operation this year. 7 Note: (1) SSSG is considered only the revenue from branch which completed its full year operation.

Gross Profit and Gross Profit Margin THB mm 16.4% 16.4% 16.2% 15.6% 15.3% 14.9% 14.6% 3,017 2,886 2,684 2,226 2,091 677 676 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Gross Profit Gross Profit Margin Revenue Contribution from House Brand Key Changes in 9M2019 Gross Profit Margin increased from 14.9% in 9M2018 to 16.4% in ◼ % to revenues from sales and services 9M2019 due to: ◼ The reversal of provision for obsolete and slow-moving inventory 16.5% 15.8% ◼ Revenue contribution from house brand expanded in 14.4% 14.4% conjunction with the company’s strategy to achieve 20% house brand revenue contribution by 2022 The increase in the gross profit margin of house brand ◼ products ◼ More efficient cost management 9M2018 9M2019 3Q2018 3Q2019 8

SG&A Expense THB mm 11.3% 11.8% 10.3% 10.2% 10.3% 8.6% 8.7% 1,907 33 1,614 1,598 334 29 1,433 (6) 1,393 274 35 150 305 23 158 83 271 274 90 162 161 121 65 364 112 118 333 321 276 272 223 144 126 499 484 167 189 15 10 113 98 41 30 37 644 42 623 565 93 96 484 477 70 54 153 158 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Selling Employee Expense Admin Employee Expense Depreciation and Amortization Delivery Expense Marketing Expense Others Allowance for bad debt (reverse ) SG&A to Revenue from Sales and Services Key Changes 9M2019 ◼ Selling and administrative expenses for 9M2019 decreased by THB 39.7 mm or down 2.8% over the same period last year which mainly driven by the decrease in marketing expenses that resulted from the company’s policy to increase marketing effectiveness, the decrease in allowance for doubtful account receivables, and the increase in operating efficiency. 9

EBITDA and Net Profit EBITDA THB mm 9.7% 9.2% 9.0% 7.7% 7.2% 7.0% 6.8% 1,807 1,714 1,254 1,223 1,008 317 308 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 EBITDA EBITDA Margin Net Profit THB mm 4.6% 5.0% 4.2% 2.4% 3.2% 2.7% 2.1% 931 853 573 439 386 134 92 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Net Profit Net Profit Margin EPS 83.14 (1) 0.90 0.31 0.28 0.38 0.07 0.08 (THB) 10 Note: (1) Calculated based on par value of THB 100 per share

Balance Sheet at a Glance 31 Dec 2018 30 Sep 2019 Assets THB mm % THB mm % Cash and Cash Equivalents 167.2 1.0 143.2 0.7 Accounts Receivable and Other Receivables 836.4 5.0 902.6 5.9 Inventory 6,260.2 37.5 6,679.7 37.1 Property, Plant and Equipment 8,865.7 53.2 9,524.3 52.0 Others 545.2 3.3 707.6 4.4 Total Assets 16,674.6 100.0 17,957.4 100.0 Liabilities Bank Overdrafts and Short-term Loan 6,577.0 55.4 5,381.5 52.8 Accounts Payable and Other Payables 2,128.1 17.9 1,923.1 20.1 Long-term Loan and Financial Lease Liabilities 3,101.5 26.1 4,254.7 24.7 Others 75.6 0.6 72.8 2.3 Total Liabilities 11,882.3 100.0 11,632.1 100.0 Shareholder’s Equity Issued and Paid-Up Capital 2,054.7 42.9 5,520.4 87.8 Retained Earnings 3,330.1 69.5 1,397.3 21.7 Others -592.4 -12.4 -592.4 -9.4 Total Shareholder’s Equity 4,792.4 100.0 6,325.3 100.0 11

Key Financial Highlights Cash Cycle Financial Ratios 0.9 19 20 18 0.8 18 18 18 0.8 0.8 0.8 AR 0.6 Days Current Ratio 2016 2017 2018 1Q2019 2Q2019 3Q2019 2016 2017 2018 1Q2019 2Q2019 3Q2019 54 49 49 52 49 43 AP Days 5.5 2016 2017 2018 1Q2019 2Q2019 3Q2019 3.1 156 154 2.5 2.5 2.5 152 L/E 1.8 147 146 Inventory 140 Days 2016 2017 2018 1Q2019 2Q2019 3Q2019 2016 2017 2018 1Q2019 2Q2019 3Q2019 (1) 128 126 25.2% 116 121 111 105 Cash 21.7% Cycle 15.5% 11.3% 10.2% 9.2% ROE 2016 2017 2018 1Q2019 2Q2019 3Q2019 Inventory day increased from 147 days in year 2018 to 154 days in ◼ 2016 2017 2018 1Q2019 2Q2019 3Q2019 3Q19 partly as a result of the company stocking up inventory for the Petchkasem branch opening in November 2019 12 Note: (1) Calculated from last 12 months net income

Business Outlook

Increase Inventory Management Efficiency Through Utilization of ASRS System Automated Storage and Existing Warehouse New Warehouse with ASRS Retrieval System (ASRS) ◼ Being installed at the Petch Kasem branch and the distribution center, which have been operated in 4Q2019 for Petchkasem branch and expected to be operated in 1Q2020 for the distribution center ceiling ◼ Improvement in inventory management efficiency 22m . through lower costs to store and retrieve inventory c.13 m ◼ The company could potentially consider installing the ASRS system at other large store format warehouse in the future floor  Reduce required warehouse space  Reduce the number of warehouse staff  More efficient inventory management *Picture for illustration only 14

Store Expansion Plan 90 Dohome size L Dohome Togo New Branch No. of Store 16 87 6 10 9 1 8 1 3 3 2017 2018 Nov-19 2020F - 2021F Dohome size L Dohome size L Dohome size L - Petchkasem Branch (Nov) - 6 New Branches - Bangna Branch (Apr) Dohome Togo Dohome Togo - Charunsanitwong (Jul) - 87 New Branches. - Sathorn (Jul) - Bangphli (Nov) 15

Q&A