2Q16 Quarterly Review Berli Jucker Public Company Limited 30 August - - PowerPoint PPT Presentation

2Q16 Quarterly Review

Berli Jucker Public Company Limited

30 August 2016

1

The following presentation may contain forward looking statements by the management of Berli Jucker Public Company Limited (“BJC”), relating to financial or other trends for future periods, compared to the results for previous periods. Some of the statements contained in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. Forward looking information is based on management’s current views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be constructed as a representation as to future performance of BJC. In particular, such targets should not be regarded as a forecast or projection of future performance of BJC. It should be noted that the actual performance of BJC may vary significantly from such targets.

Notes on Forward Looking

2

Big C Acquisition transaction

3

• Recapitalize structure
• Overall Performance
• 2Q16 Performance
• Performance by Supply Chain
• Packaging Supply Chain
• Consumer Supply Chain
• Healthcare and Technical Supply Chain
• Modern Retail Supply Chain
• Q&A

Agenda

4

• Acq. Debt:

127,697 Existing Net Debt: 30,718 81,313 5,479 234,249 55,728 27,882 150,639

BJC Q1 Net Debt Consideration for 39.4% of Big C in MTO Change in Existing Net Debt BJC Q2 Net Debt BJC Rights Offering #1 BJC Rights Offering #2 Debt

Capital Structure after Big C Acquisition

5

(1)

1.5x 0.8x 0.0x 2.3x 0.5x 0.3x 1.5x Implied x PF Shareholders’ Equity (5)

1 2 3

(2) (3) (4)

Financing Structure – PF Debt Buildup and Deleveraging Components

THB MM

• BJC completed 97.74% Big C acquisition on 11th May 2016
• Pro-forma capitalization plan is expected to have leverage of 1.5x

Notes

• 1. As of 31 March 2016; post acquisition of 58.6% of Big C from Casino (consolidating Big C net debt)
• 2. 250.26 per share; 324.9MM shares (39.4% of 825MM shares)
• 3. 1:1 Rights Offering at THB35.00 per share
• 4. 2:1 Rights Offering at THB35.00 per share
• 5. PF Shareholders’ Equity (THB102.9 Bn) = Shareholders’ Equity as of 30 Jun (THB 19.3Bn) + BJC Rights Offering #1 (THB 55.7Bn) + BJC Rights Offering #2 (THB 27.8Bn)

158,415

• Recapitalize structure
• Overall Performance
• 2Q16 Performance
• Performance by Supply Chain
• Packaging Supply Chain
• Consumer Supply Chain
• Healthcare and Technical Supply Chain
• Modern Retail Supply Chain
• Q&A

Agenda

6

10,241 14,717 40,487

2Q15 1Q16 2Q16

20,734 55,204

1H15 1H16 39.9% YoY, 14.8% QoQ

2Q16 Net Profit (MB) 2Q16 Sales (MB)

• On May 11, 2016, BJC completed an acquisition of 97.94% shares in BIGC, 99.18% shares in C-Distribution

Asia Pte Ltd. and 98.80% shares in C-Distribution (Thailand) Company Limited

• Results of these companies has been consolidated into BJC since March 21, 2016

2Q16 Highlights

7

1H16 Sales (MB)

166.2% YoY

1H16 Net Profit (MB)

Overall Performance

1,273 972 930 1,231

1H15 1H16

1H16 Highlights 744 525 447 401 525 706

2Q15 1Q16 2Q16

Net profit Normalized net profit

295.4% YoY, 175.1% QoQ 23.7% YoY 76.1% YoY, 34.5% QoQ Net profit

• Norm. Net profit

32.4% YoY Net profit

• Norm. Net profit

10,241 40,487 342 (15) (54) 30,187 (214) PSC CSC H&TSC Others MSC 744 447 143 (348) 30 1838 (1960) PSC CSC H&TSC Others MSC

2Q16 vs 2Q15

• 2Q16 Sales were THB 40,487 million, an increase of THB 30,246 million or 295.4% YoY
• PSC’s sales improved by THB 342 MN thanks to growth
• f beverage segment under glass business
• Even

though international trading group reported strong sales growth 27.1% YoY, it was offset by the declined in sales of domestic consumer group

• Customer’s project delay under Technical Supply Chain

caused a decline in topline of H&TSC

• Sales of MSC was at THB 30,187 MN in this quarter

2Q15

• 2Q16 Net Profit was THB 447 million, a decrease of THB 297 million or 39.9% YoY

THB MN

• Net profit of PSC increased THB 143 MN in-line with

higher sales from glass packaging, lower energy costs and an improvement in manufacturing efficiency

• Net Profit of CSC decreased THB 348 MN due to high

base effect from one-time gain from bargain purchase

• f Thai Dairy Company equivalent to THB 343 million in

2Q15

• Net profit of H&TSC increased THB 30 MN as improving

gross profit margin in medical equipment led to higher net profit in this quarter

• Net profit of MSC was THB 1,838 MN in this quarter

2Q15 2Q16 2Q16

THB MN

+295.4% YoY

• 39.9% YoY

8

14,717 40,487 (275) (95) (150) 26,606 (316) 525 447 58 (78) 1,719 (1,777) PSC CSC H&TSC Others MSC

• 2Q16 Sales were THB 40,487 million, an increase of THB 25,770 million or 175.1% QoQ
• Sales of PSC decreased THB 275 MN from both glass

and can businesses, due to seasonality in the second quarter

• Sales of CSC decreased THB 95 MN mainly from Food

and Non-Foods businesses, due to economic slowdown and low consumer spending

• Sales of H&TSC decreased THB 150 MN due to lower

sales from Healthcare Supply Chain that mainly due to the drop in kidney dialysis related products

• Sales of MSC was at THB 26,606 MN in this quarter
• 2Q16 Net Profit was THB 447 million, a decrease of THB 78 million or 14.8 % QoQ
• Net profit of PSC increased THB 58 MN from both

glass and can business, due to an improvement in manufacturing efficiency as well as lower energy costs

• Net profit of CSC decreased THB 78 MN, in-line with

lower sales as well as higher palm oil price as a result

• f the drought
• Net profit of H&TSC was stable when comparing to

previous quarter

• Net profit of MSC was THB 1,719 MN in this quarter

1Q16 2Q16 1Q16 2Q16

THB MN THB MN

9

2Q16 vs 1Q16

+175.1% QoQ

• 14.8% QoQ

PSC CSC H&TSC Others MSC

20,734 55,204 742 20 7 33,767 (66) 1,234 972 202 (273) 30 1,957 (2,403) PSC CSC H&TSC Others MSC

• 1H16 Sales were THB 55,204 million, an increase of THB 34,470 million or 166.2% YoY
• Sales of PSC increased THB 742 MN.

This increase mainly came from glass business in beverage segment

• Sales of CSC increased THB 20 MN mainly from

logistics and international trading businesses

• Sales of H&TSC increased THB 7 MN. The higher sales

came from both pharmaceutical and medical equipment products

• Sales of MSC was at THB 3,580 MN in 1H16
• 1H16 Net Profit was THB 972 million, a decrease of THB 301 million or 23.7 % YoY
• Net profit of PSC increased THB 202 MN, in-line with

higher sales from glass packaging business, lower energy costs and an improvement in manufacturing efficiency

• Net profit of CSC decreased THB 273 MN, due to high

base effect from one-time gain from bargain purchase

• f Thai Dairy Company equivalent to THB 343 million

in 2Q15

• Net profit of H&TSC increased THB 30 MN, as

improving gross profit margin in medical equipment leading to higher net profit in 1H16

• Net profit of MSC was THB 1,957 MN in 1H16

1H15 1H16 1H15 1H16

THB MN THB MN

10

1H16 vs 1H15

+166.2% YoY

• 23.7% YoY

PSC CSC H&TSC Others MSC

2015

Performance Breakdown

11

2Q16

Sales Breakdown Sales Breakdown Net Profit Breakdown Net Profit Breakdown

PSC 41% CSC 36% H & TSC 17% Other 6% PSC 63% CSC 9% H & TSC 28% PSC 11% CSC 10% H & TSC 4% MSC 75% PSC 18% CSC 3% H & TSC 4% MSC 75%

• Recapitalize structure
• Overall Performance
• 2Q16 Performance
• Performance by Supply Chain
• Packaging Supply Chain
• Consumer Supply Chain
• Healthcare and Technical Supply Chain\
• Modern Retail Supply Chain
• Q&A

Agenda

12

Packaging Supply Chain

13

592 582 690 1,164 1,272 14.3% 12.2% 15.4% 13.7% 13.7% 2Q15 1Q16 2Q16 1H15 1H16

YoY

• 2Q16 sales increased by 8.2% YoY due to the growth in glass business in

beverage segment. Gross margin improved to 21.3% thanks to lower energy costs and an improvement in manufacturing efficiency. EBIT margin and net profit margin showed a similar trend with gross margin improvement. This led to an increase in net profit of THB 143 MN, compared with the same period last year QoQ

• 2Q16 sales declined by 5.8% QoQ as the second quarter was a low season for

packaging businesses. However, gross margin surged to 21.3% thanks to lower energy costs and an improvement in manufacturing efficiency. EBIT margin and net margin showed a similar trend with gross margin improvement. This led to an increase in net profit of THB 58 MN, compared with the previous quarter

Sales and Gross Profit Margin EBIT and EBIT Margin Net Profit and Net Profit Margin

• Similar picture with 2Q16, 1H16 sales increased

THB 742 MN or 8.7% YoY thanks mainly to an increase in sales of glass business

• Gross margin declined to 20.1% in 1H16, down

from 20.9% in 1H15, mainly came from slight increase in cullet cost as well as an increase in job change in order to meet higher customer demand in 1Q16

• However, the ability to control costs led to

higher EBIT. In addition, the higher net profit contribution from glass joint venture also drove earnings and net profit margin

16.4% YoY 18.4% QoQ 9.3% YoY 36.4% YoY 12.2% QoQ 24.8% YoY

2Q16 Highlights 1H16 Highlights

8.2% YoY 5.8% QoQ 8.7% YoY 394 479 537 814 1,016 9.5% 10.0% 12.0% 9.6% 11.0% 2Q15 1Q16 2Q16 1H15 1H16 4,147 4,764 4,489 8,511 9,253 20.7% 19.1% 21.3% 20.9% 20.1% 2Q15 1Q16 2Q16 1H15 1H16

Consumer Supply Chain

EBIT and EBIT Margin Net Profit and Net Profit Margin

76.5% YoY 49.2% QoQ 47.6% YoY 84.3% YoY 54.8% QoQ 56.8% YoY 0.3% YoY 2.3% QoQ 0.3% YoY 479 222 113 637 334 11.8% 5.4% 2.8% 7.8% 4.1% 2Q15 1Q16 2Q16 1H15 1H16 413 143 65 481 208 10.2% 3.5% 1.6% 5.9% 2.5% 2Q15 1Q16 2Q16 1H15 1H16 4,048 4,128 4,034

8,141 8,162

19.1% 18.0% 15.8% 19.4% 16.9% 2Q15 1Q16 2Q16 1H15 1H16

Sales and Gross Profit Margin EBIT and EBIT Margin 14

YoY

• 2Q16 sales were relatively flat YoY due to a reduced number of product launches

during the quarter when compared to last year. Gross margin dropped from 19.1% in 2Q15 to 15.8% in 2Q16 due to higher raw material cost, e.g. sweet potato, palm oil and hard wood. EBIT margin and net profit margin decreased significantly due to high base effect from one-time gain from bargain purchase of Thai Dairy Company equivalent to THB 343 million in 2Q15. Excluding one-time item in 2Q15, EBIT margin and net profit margin were posted at 3.4% and 1.7% respectively QoQ

• 2Q16 sales slightly declined from the previous quarter due to economic slowdown

and low consumer spending. Gross margin decreased due to higher raw material

• cost. EBIT margin and net profit margin were lower than previous quarter, in-line

with lower sales and higher raw material costs

• 1H16 sales increased THB 21 MN or 0.3% YoY from

logistics and international trading businesses

• Gross margin decreased to 16.9% in 1H16, down

from 19.4% in 1H15. The margin declining came from higher raw material costs i.e. sweet potato, palm oil and hard wood

• 1H16 EBIT margin and net profit margin showed a

negative trend comparing with 1H15 because of

• ne-time gain from bargain purchase of Thai Dairy

Company equivalent to THB 343 million in 2Q15

2Q16 Highlights 1H16 Highlights

30.8% YoY 12.1% QoQ 97 145 127 224 272 5.9% 8.3% 8.0% 6.7% 8.1% 2Q15 1Q16 2Q16 1H15 1H16 67 97 97 164 194 4.1% 5.5% 6.1% 4.9% 5.8% 2Q15 1Q16 2Q16 1H15 1H16

Healthcare & Technical Supply Chain

Sales and Gross Profit Margin EBIT and EBIT Margin Net Profit and Net Profit Margin

45.6% YoY 0.5% QoQ 1,648 1,744 1,594 3,331 3,338 30.5% 31.9% 31.4% 30.8% 31.6% 2Q15 1Q16 2Q16 1H15 1H16 0.2% YoY 3.3% YoY 8.6% QoQ 21.0%

YoY

• 2Q16 sales was reported at THB 1,594 MN, a decrease of 3.3% YoY. Even though

Healthcare Supply Chain increased, it could not offset the decline in Technical Supply Chain, due to project delays caused by customers. Gross margin improved from 30.5% in 2Q15 to 31.4% in 2Q16 due to higher gross margin from medical equipment and galvanize steel structure business. EBIT margin and net margin showed a similar trend with gross margin improvement. This led to an increase in net profit of THB 30 MN, compared with the same period last year QoQ

• 2Q16 sales declined from the previous quarter due to lower sales from Healthcare

Supply Chain that mainly came from the drop in kidney dialysis related products. Gross margin decreased from 31.9% in 1Q16 to 31.4% in 2Q16 in-line with lower

• sales. EBIT margin was quite stable QoQ

2Q16 Highlights

18.4%

• 1H16 sales increased by THB 7 MN or 0.2% YoY

mainly from Healthcare Supply Chain

• Gross margin improved to 31.6% in 1H16, up

from 30.8% in 1H15 came mainly from better GP in engineering and galvanized steel structure businesses

• These abovementioned together with our ability

to control costs led to higher EBIT margin and net profit margin in 1H16

15

1H16 Highlights

30,187 4,344 2,749 1,838 14.4% 9.1% 6.1% Sales Gross Profit EBIT Net Profit

2Q16 Performance

• On May 11, 2016, BJC completed the acquisition of 97.94%. To align reporting structure with the

current business structure, BJC added Modern Retail Supply Chain. In 2Q16, Modern Retail Supply Chain reported sales of THB 30,187 MN

• In 2Q16, MSC reported gross profit of THB 4,344 MN, with 14.4% gross profit margin
• In 2Q16, MSC reported EBIT of THB 2,749 MN, with 9.1% EBIT margin
• In 2Q16, MSC reported net profit of THB 1,838 MN, with 6.1% net profit margin

Modern Retail Supply Chain

2Q16 Highlights

16

CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Big C Supercenter PCL is strictly prohibited

Q2 2016 Earnings Presentation

30 August 2016

Confidential

This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation

• f any offer to purchase or subscribe for, any securities of Big C Supercenter Public Company Limited (the “Company”),

nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of

• perations and financial condition of the Company. Such forward-looking statements are not guarantees of future

performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its

• perating experience in recent years. The Company does not undertake to revise any forward-looking statement that may

be made from time to time by or on behalf of the Company. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information, estimates, projections and opinions contained in this presentation. Readers must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. Neither the Company nor any of its affiliates shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or part,

• r disclosed by recipients directly or indirectly to any other person. In particular, this presentation is not for publication or

distribution or release in any country where such distribution may lead to a breach of any law or regulatory requirement. The information contained herein does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities for sale. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such

• restrictions. None of the Company’s securities may be offered or sold in the United States without registration under the

U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration therefrom.

Disclaimer

18

Confidential

19

▪ Overview ▪ Financial Performance ▪ Operations ▪ Conclusion

Agenda

▪ Appendix

Confidential

20

1 Footnote

Highlights

OVERVIEW

Financial performance

 Focus shifted to quality of sales starting from June 2016. This was one reason for

• ur SSSG decline of -4.0% during the quarter, and will continue impacting our topline

until comparison point is “rebased”.

 However due to our continued resilient Rental income growth and reduced SG&A-

to-sales ratio, we achieved solid operating margin improvement and…

 together with lower finance cost and lower effective tax rate, reached a robust Net

Income growth of +12.9% y-o-y Operations

 Introduced a fundamental change in the way we trade, as we shifted our focus to

the quality of sales rather than just the absolute sales amount.

 Strong focus on localization of offer and community engagement to better

answer to our customers’ local tastes and preferences.

 First synergies already captured.  Implementing organizational changes to become “Thai retailer who has customers

in our heart”

 Continued store expansion with opening of 1 hypermarket, 2 Big C Market, 11 Mini

Big C stores and 2 Pure drugstore.

Confidential

21

▪ Overview ▪ Financial Performance ▪ Operations ▪ Conclusion

Agenda

▪ Appendix

Confidential

22

1 Retail Sales is used as denominator in margin calculations

FINANCIAL PERFORMANCE

30,661 4,590 15.0% 2,505 2,613 8.5% 1,978 3,508 11.4%

% change

Retail Sales

Q2 2016

(THB millions)

Gross Profit Gross Profit Margin (1) Rental and Service Income

30,187 14.4% 2,581 2,749 9.1% 2,233

Net Income attributable to the parent

3,707 12.3%

• 1.6%
• 5.4%

+3.0% +5.2% +58bps +12.9% +5.7% +84bps

Recurring Operating Profit Recurring Operating Profit Margin (1) Recurring EBITDA Recurring EBITDA Margin (1)

• 58bps

4,344

Q2 2015

Financial Performance – Consolidated Q2 2016

Confidential

23

FINANCIAL PERFORMANCE

Recurring EBITDA Net Income

• Recurring EBITDA reached THB 3.7 billion up +5.7% y-o-y and recurring

EBITDA margin of 12.3% up +84bps y-o-y.

• Net income of THB 2.2 billion up +12.9% y-o-y, driven by abovementioned,

continued cost optimization and productivity enhancement initiatives, and lower finance costs and effective tax rate.

• Retail sales reaching THB 30.2 billion, slight decline of -1.5% y-o-y due to

SSSG of -4.0% for quarter due to change in company’s trading focus.

Rental Income

• Rental income reached THB 2.6 billion, a continued growth of +3.0% y-o-y,

arising from successful management of lettable space and added rental area.

• 1.5%

+3.0% +84bps

Retail sales

Recurring EBITDA margin Rental and Service Income Retail Sales

Financial Highlights Q2 2016

Confidential

24

▪ Overview ▪ Financial Performance ▪ Operations ▪ Conclusion

Agenda

▪ Appendix

Confidential

Re-focusing the business on customer-centric retail sales

OPERATIONS

• We made a strategic sift in the way we trade by:

– Discontinuation of all unprofitable sales practices, for healthier margins and business sustainability…

• Stopping the use of “big basket

coupons” we have used in the past to target professional customers

• We are now focused on quality of sales and our

retail customers by: – Executing our ‘Customer Centric’ strategy with stronger promotional prices to drive traffic… – Re-enforced through our price commitment launched at the end of March to enhance our image as the Price Leader

• Price guaranteed promotions,
• Promotional items always on stock
• 5,000 Items Cheaper than Last Year’

campaign,

• Pay what you see
• Instant coupons

Confidential

Stronger focus on localization of assortment and community engagement

26

• To better answer to our customers’ local

tastes and preferences, we reorganized our store operations teams into 4 clusters: – Northeast – North – Central – South

• Additional differentiation of tourist stores with

specialized assortment (e.g. OTOP products)

• Decentralization and “empowerment” of

stores, especially upcountry: – Regional assortment adjusted to regional culture and tastes – Buying from local farmers to support the communities our stores are in – Small budget allocated to stores for local community activities OPERATIONS

Confidential

Leverage dual retail-property model – Expansion and Renovations

Q2 2016 Progress

• Opened 1 hypermarket in Ranong.
• 2nd hypermarket was opened in late July
• Big C will also start managing 2 MM Mega Market during 2H 2016
• Opened 2 Big C Market in Pakthongchai and Somdet
• 3rd store was opened in late July + we will open 1 more store at the end of August.
• Opened 11 Mini Big C (including 3 franchise) and 2 Pure drugstore
• Alcudia renovations ongoing at Mahachai, Burirum, Lamphun, Bangyai, and Suksawat

stores, and on track for 2016 completion

• Confirming 2017 target of 10 Hypermarket, 10 Big C Market, and 200 Mini Big C

Retail and Rental Area Q2 2016¹

# of stores: 183 Total space:

• c. 1,040,000 sqm

# of stores: 178 Total space: c.799,000 sqm

Expansion

• 6 Hypermarkets
• 4 Big C Markets
• c.75 Mini Big C in combination of owned

stores and franchise stores Renovations

• 7 Alcudia renovations and 8 Right-sizing

renovations

Targets for 2016

OPERATIONS

27

1 Hypermarket and Big C Market

Confidential

28

• Good initial progress in

capturing synergies between BJC and Big C

• Continuous efforts

across companies (on arms-length basis) to drive win-win initiatives

• Part of the synergies

impact coming in earlier than expected – with THB ~300m¹ expected within 2016 (recurring EBITDA improvement)

Synergies update 2016

OPERATIONS Progress examples:

• Collaboration with Metro Vietnam in joint buying of

local fruits for import/export (Since June 2016)

• Promote BJC and TCC group products during festive

periods or special campaigns (Since Q2 2016).

• Southeast Insurance (Akane) insurance booths in Big

C stores. (Since Q2 2016)

• Migrated all emails to BJC Email system saves costs

and enables seamless email communication system within the group. (Since July 2016)

• Opening of Big C Market at TCC Land property, in

Panthip Chiang Mai (August 2016)

• Co-develop and manufacture house brand products

utilizing existing R&D capability and factory within BJC and TCC group. (First batch in September 2016)

• Conversion
• f

Ogenki drug stores to Pure Pharmacies, and management under one single team (Targeted Q4 2016)

• Migrate Big C POS system onto Asia Book (Targeted

November 2016)

• IT Integration
• f

Ogenki and MM Mega Market Thailand (Targeted September and November 2016)

1 Including Management fee and insurance premium savings

Confidential

Big C – Thai retailer who has customers in our heart

29

• Since becoming part of BJC Group, Big C

has done major adjustments to: – Reorganize organization structure to ensure that everyone is sharing common goals – Localize product assortment to match local culture and preferences. – Participate to local community activities. – Increase opportunities of Thai employees for promotion to executive level – Promote “listen and learn” culture – Improve facilities of employees and customers. – Increasing employee engagement and training activities. – Increase basic employees benefits. OPERATIONS

Confidential

Community focus

Recent CSR Activities

• 1,800 Healthy & Happy Hearts for Our Children

– To commemorate HM the King’s 90th birthday, Big C's 23rd Anniversary, and the company's new chapter as being the "Thai retailer who has customers in our heart". Big C in cooperation with the Big C and the Cardiac Foundation of Thailand, launched a campaign to support heart operations for 1,800 children with heart diseases nationwide.

• Big C will double customers' donation during 12th of

August to 5th of Dec 2016. Plus Big C Foundation will donate 4.6 million baht.

• Engaging with communities:

– Total budget of 16 million baht allocated to Big C stores to

• rganize

activities to foster tighter relations with local communities.

• MIS

team visited Srisangwan School for Disabled Children in Nonthaburi to offer donate for students’ tuition fees to the Foundation for the Welfare of the Crippled under the Royal Patronage of HRH the Princess Mother. OPERATIONS

30

Confidential

31

▪ Overview ▪ Financial Performance ▪ Operations ▪ Conclusion

Agenda

▪ Appendix

Confidential

Strategic change to focus on quality of sales will lead to improved margins and operating income, and create more sustainable trading environment. Increased focus on our customers, communities, and associates to be the Thai retailer who has customers in our heart Built up good momentum in synergy teams in Big C and BJC, with first synergies captured during the quarter. Strong operating results and robust net income growth achieved during the quarter.

Conclusion

CONCLUSION

32

Confidential

33

▪ Overview ▪ Financial Performance ▪ Operations ▪ Conclusion

Agenda

▪ Appendix

Confidential

60,429 8,505 14.1% 4,882 4,603 7.6% 3,418 6,431 10.6%

% change

Retail Sales

1H 2016

(THB millions)

Gross Profit Gross Profit Margin (1) Rental and Service Income

59,613 13.8% 5,026 4,763 8.0% 3,739

Net Income attributable to the parent

6,683 11.2%

• 1.4%
• 3.2%

+3.0% +3.4% +37bps +9.4% +3.9% +57bps

Recurring Operating Profit Recurring Operating Profit Margin (1) Recurring EBITDA Recurring EBITDA Margin (1)

• 26bps

8,233

1H 2015

Financial Performance – Consolidated 1H 2016

APPENDIX

34

1 Retail Sales is used as denominator in margin calculations

Confidential

Profit and Loss Statement – Q2 2016 and Q2 2015

In THB m Q2 2016 Q2 2015 Sales 30,187 30,661 Gross Profit 4,344 4,590 Rental Income 2,581 2,505 Other Income 1,029 993 Total Income 7,953 8,088 Selling Expenses

• 4,659
• 4,831

Administration Expenses

• 546
• 644

Operating Income 2,749 2,613 Finance cost

• 129
• 167

Earnings Before Tax 2,619 2,446 Corporate Tax

• 400
• 466

Net Income 2,219 1,980 Minority Interest 13

• 2

Net Income Atributable to the Parent 2,233 1,978 Recurring EBITDA 3,707 3,508

APPENDIX

35

Confidential

Profit and Loss Statement – 1H 2016 and 1H 2015

In THB m 1H 2016 1H 2015 Sales 59,613 60,429 Gross Profit 8,233 8,505 Rental Income 5,026 4,882 Other Income 2,047 2,107 Total Income 15,306 15,493 Selling Expenses

• 9,334
• 9,552

Administration Expenses

• 1,209
• 1,339

Operating Income 4,763 4,603 Finance Cost

• 257
• 356

Earnings Before Tax 4,505 4,247 Corporate Tax

• 785
• 827

Net Income 3,721 3,420 Minority Interest 19

• 2

Net Income Atributable to the Parent 3,739 3,418 Recurring EBITDA 6,683 6,431

APPENDIX

36

Confidential

Consolidated Statement of Financial Position

APPENDIX

37

In THBm 30-Jun-16 31-Dec-15 Cash and cash equivalents 1,729 2,368 Trade and other receivables 657 766 Inventories - net 11,175 10,918 Supplier receivables and tenant receivables 2,698 2,612 Other current assets 1,012 996 Investment properties - net 15,816 16,003 Property, plant and equipment - net 26,798 27,036 Intangible assets - net 185 146 Goodwill 26,722 26,722 Other non-current assets 6,591 7,004 Total Assets 93,384 94,571 Short-term loans from financial institutions 6,780

• Trade accounts payable

19,728 28,320 Other current liabilities 8,171 8,208 Total non-current liabilities 10,963 11,372 Total shareholders' equity 47,743 46,671 Total Equity and Liabilities 93,384 94,571