2016 in Review. Summary of the Company s business results

Transcription

1 2016 in Review Summary of the Company s business results

2 2016 Financial Highlights 8.8% 8.0% Unit: million THB 10,824 11,785 10,035 10, % 2,444 2, % Total Revenue Sales Revenue Gross Profit Net Profit 2016 Total Revenue Sales Revenue Gross Profit Net Profit to Company Sales Revenue by Business Unit OfficeMate B2S Online 2015: 60% 2016: 60% 2015: 37% 2016: 36% 2015: 3% 2016: 4% Gross Profit Margin 24.4% 24.8%

3 2016 Key Highlights OfficeMate (1/6) 9 New Stores Bangkok CPN Eastville CPN Pinklao Big C Huamark Big C Bangplee Big C Suksawat Upcountry RBS Supanburi RBS Kanjanauburi Tesco Phitsanulok CPN Nakornsrithammarat New 9 Stores Total 64 Stores 3 Relocated Stores Tukcom Sriracha CPN Chaengwattana Futuremart Rama3

4 E-Procurement Seminar New Catalog 2016 Key Highlights OfficeMate (2/6) New Call Center Office at Huamark

5 2016 Key Highlights OfficeMate (3/6) Thailand Best Contact Center 2016 The Best Facilities Contact Center Award รางว ลสถานท ปฎ บ ต งานและสภาพแวดล อมยอดเย ยม Content Award Winning on Social Media Corporate Awards in 2016

6 2016 Key Highlights OfficeMate (4/6) New store event at Baan & Suan Fair Click & Collect in 40 stores TOPS Hamper Project Marketing Activities & Events Partnership with others

7 2016 Key Highlights OfficeMate (5/6) Brand ONE Furniture Catalog Own Brand Business SOHO by Furradec

8 2016 Key Highlights B2S Vietnam VN VN Store Non-Store Direct Sales Rep Telesales Website B2S business in Vietnam Soft opening B2S store in Vietnam Setting up business in Vietnam - the first international business expansion

9 2016 Key Highlights B2S (1/4) New 7 Stores Total 99 Stores 7 New Stores Bangkok Tops Nanglinchee CPN Eastville JAS Srinakarin Platform Ladya Upcountry Huahin Market Village RBS Lopburi CPN Nakronsrithammarat

10 2016 Key Highlights B2S (2/4)

11 2016 Key Highlights B2S (3/4) Think Central Eastville The First Flagship B2S Store and the Largest in Southeast Asia Awarded The Best Bookshop in Bangkok by MONOCLE magazine. Awarded Top Popular Brand of Year 2016 by Famous community page of Thailand (Brand Buffet, Soimilk)

12 2016 Key Highlights B2S (4/4) Demonstration Roadshow Plentiful Varieties for Young Readers MOU signed on April 5, 2016 Sustainable read & learn support through The 1Book E-Library

13 2016 Key Highlights Online (1/2) Examples of new brands introduced in 2016 Highlighted campaigns in 2016 O2O Campaigns Online Exclusive & The 1 Card Deals New brands introduced and marketing activities

14 2016 Key Highlights Online (2/2) Available at 71 locations nationwide BKK 67% UPC 33% 21 Locations BKK 23% UPC 77% 43 Locations BTS SKYBOX BKK 100% 7 Locations Launched Click & Collect service as part of an omni-channel retailing experience

15 2016 Key Highlights Corporate Governance Received 4-star Very Good CG Rating from the Thai Investors Association Submitted application to become a member of Thailand's Private Sector Collective Action Coalition Against Corruption (CAC) Good rating and score for the 2016 Annual General Meeting of Shareholders (AGM) from the Thai Investors Association

16 2017 Business Plan Dawn of the new growth era

17 4 Key Strategies to continue sustainable growth Enhance existing logistic to serve as 3Parties Logistic with complete fulfillment service Develop new business format - FRANCHISE over countries Develop new online B2B platform New Business Fulfilment Transform to be The Total Business Solution Provider

18 Enhance existing logistics to serve as 3 rd Party Logistics with complete fulfillment service 1 Improving logistics system to serve future company growth Automated warehouse with new Warehouse Management System, Transportation and Order Management System; Also strategically to act as Third-party Logistics (3PL) for last mile delivery, warehouse management. To be sustainable growth with current business and future expansion To increase warehouse capacity To improve the whole warehouse productivity To serve as 3PL in the future

19 Revolutionize logistics business with state-of-art warehouse OfficeMate Nongjok Operational since: 2006 Total Storage area: ~15,000 sqm. New OfficeMate Chachoengsao Expected operational year: 2018 Total storage area: ~20,000 sqm.

20 World-class technology Automated Storage & Retrieval Picking Tray Store-into ASRS Retrieval from ASRS Case store-into ASRS Case retrieval from ASRS for picking Order Start & Picking point Transport Picking tray to other picking area, Packing area. Case from ASRS is diverted to picking station

21 World-class technology Pick to Light Picking zone PTL on rack Picking Point Divert to picking station Main Conveyor Line Merge to Main line

22 World-class technology Automated Packing Eco-friendly Decrease the cushioning material in package by change the package height up to package internal volume. Better operational efficiencies Enable personnel cost savings by substituting manual packing process with automated packing

23 Develop new business format - FRANCHISE over countries 2 Spread the success opportunities over the countries by franchising development Unlocked the office supply and stationery market, open opportunities for interested business owner in upcountry. Penetrate in UPC area and unreachable location Customized store formats for specific customer groups Expand customer base to SMEs & B2C

24 Adaptation of small store format into a franchise store model Example of OfficeMate small store Big C Huamark

25 Develop new online B2B platform 3 A Complete B2B platform to serve business requirement Providing new online platform for matching between vendors & potential customers in various industries by utilizing our large corporate customer base Integrated business products & services to build business solutions Unlocked specialty product constraint Pool of professional business services Trusted & verified vendors

26 Transform to be The Total Business Solution Provider 4 Elevating both product and service to become total solution for business to satisfy our customers at the best Customer experience is our priority, completing product line and multi - service solution is our key strategy to become The Total Business Solution Provider Logistics Industry Printing Solution Printing on demand for name card & Leaflet Sales & Distribution Industry Service Industry: Hospitals and Restaurants Parcel Service Gift& Premium Furniture Design Service Last mile delivery service with trusted partner Made-to-order corporate gift & premium Free furniture & office design service Manufacturing Industry: Factory Click& Collect Shop online & Pick up at OfficeMate store

27 Secure necessary resources to support our new focus areas Consideration to step out of the digital and online business

28 Why phase out from the digital and online business? Industry landscape has changed as larger, more resourceful players enter the market with no near-term profitability in sight Improve return to shareholders through higher net profit Digital and online B2C businesses are more essential to and more readily supported by the Central Group x Refocusing resources to the new focus areas will allow COL to enhance the company value and provide sustainable return to shareholders

29 Lower for Longer - shift in the online industry landscape Return Original Picture Current Picture Survival of existing players is under threat from the market leader and new entrants Monthly website traffic (mn. visitors) as of 2016 as of Time Profit Loss Losses are expected to increase in both magnitude and duration due to the change in environment Factors that change the online industry environment Source: similarweb.com, ecommerceiq Cross-border competition Aggressive marketing strategy Excessive and continuous investments Peer 1 Peer 2 Peer 3 Peer 4 Central Online Peer

30 COL as the region s leading business solution center COL VISION AEC To Be The Most Essential Online Business in AEC Providing Excellent "Value" to Customers Growth BUSINESS STRATEGY 2021 > 5,000 MB on E-Commerce business solution Ready Go > 150,000 SKUs active on Web No.1 E-Market Shopping place in Thailand Fit Firm Excellence in Business Solution for both BMA & UPC Bring innovation and effective communication to stakeholders

31 Ready for more success