Company Presentation 2Q2020 Doh ohom ome e Public lic Com - - PowerPoint PPT Presentation
Company Presentation 2Q2020 Doh ohom ome e Public lic Com ompany any Limi mited ted Table of Contents 1 Business Update during COVID-19 Situation 2 Dohome Business Overview 3 Operating Results for 2Q2020 4 Business Outlook 1
Table of Contents
Business Update during COVID-19 Situation
1
Dohome Business Overview
2
Operating Results for 2Q2020
3
Business Outlook
4
1
22 March 2020 According to the Government’s measures to deal with COVID-19, we temporarily closed 8 large branches and 6 Dohome To- Go Rangsit, Bang Bua Thong, Rama 2, Petchkasem, Korat, Udon, Khon Kaen, Chiang Mai Branch, and 6 Dohome To-Go 3 MAY 2020 The government has relaxed the control measures, we have resumed
Rama 2, Petchkasem, Korat, Udon 17 MAY 2020 The government has allowed the
stores on May 17, we have resumed
and 6 Dohome To-Go Rangsit, Bang Bua Thong, Khon Kaen, Chiang Mai, and 6 Dohome To-Go
1) Promoting and Pushing the existing service channels of online (E-Commerce) and direct phone ordering to our sales team and sales representative. 2) Adapting working processes to be in line with the situation; such as, transferring employees from other sales team to direct sales team (phone-call ordering), promoting the electronic payment, and allowing employees in some departments to work from home, etc. 3) Considering more credit customers tightly to prevent incurring bad debts. 4) Preparing the strict public heath control to all employees, customers and partners as follows;
before entering the offices or branches
areas with antiseptic at least every hour, etc.
Dohome’s Current Status and Corporate Strategy
3
1 2 3 4
Prevention Measures at Store
Set screening point and body temperature measurement for all customers at the entrance area Add service point for hand sanitizer and install the sign to advise the operation Measure daily body temperature of all staffs before working Clean the frequently exposed equipment with antiseptic
4
Require online register via QR code to check in Mark the appropriate distance in waiting line Employees must wear a face mask at all time Set the plastic barriers between cashier
5
Certificates to ensure public hygiene standards
Our 10 large branches, 8 Dohome To-Go, and Dohome head office are qualify for certificate which is granted by Department of Health to ensure public hygiene standards.
Example of certificates
Dohome Business Overview
As of 30 June 2020 7
One-stop Home Products Destination
Retail Space (230,814 sq.m.) Warehouse Space (255,178 sq.m.)
Branches Sales Team Call Center and Telesales Website
International Suppliers Domestic Suppliers Delivery Service Repair and Maintenance Service Home Installation Service Design Center Special Order
Target Customer Group Home Products Services & Solution
Resellers (Wholesale) Government Agencies and State Enterprise Contractors and Projects End-users (Retail)
Dohome Dohome To-Go branches in operation new branches within 2021 branches in operation
10 6 8 7
new branches within 2020
7
P&L Summary
2Q2019 2Q2020 Changes THB mm % THB mm % THB mm % Revenue from sales 4,442.8 98.5 4,571.6 98.5 128.8 2.9 Revenue from services 33.8 0.8 44.5 1.0 10.7 31.7 Other incomes 34.0 0.8 24.2 0.5
Total revenue 4,510.6 100.0 4,640.3 100.0 129.7 2.9 COGS 3,736.5 82.8 3,926.7 84.6 190.2 5.1 Gross profit
(1)
740.1 16.5 689.4 14.9
Selling & Administrative expenses 455.5 10.1 474.5 10.2 19.0 4.2 Other expenses
0.001 0.04 N/A EBIT 318.6 7.1 239.1 5.2
Interest expenses 75.9 1.7 57.3 1.2
Tax expenses 50.2 1.1 35.4 0.8
Net income 192.5 4.3 146.4 3.2
Depreciation & Amortization 102.8 2.3 117.5 2.5 14.7 14.3 EBITDA 421.4 9.3 356.6 7.7
Note: (1) Gross profit margin calculated based on revenue from sales and services
9
18,576 18,445 17,869 4,477 4,616 0.2%
2017 2018 2019 2Q2019 2Q2020
Annual Revenue from Sales and Services Growth
Revenue from Sales and Services
THB mm Key Changes
◼
SSSG was positive 0.4% YoY in 2Q2020 due to the company’s strategy to push sales through direct sales team and E-commerce during the temporary closure of retail space in the 8 large branches to compensate sale loss during the closure and the increase in revenue from all branches after the reopening
◼
In 2Q2020, total revenue from sales and services increased 3.1% YoY although there were the outbreak of COVID-19 pandemic and strict government measures to control the pandemic causing the temporary closure of retail space in 8 large branches from total of 10 large branches and all 6 Dohome To-Go branches. The revenue increase was due to: ➢ Positive SSSG of 0.4% YoY ➢ Additional revenue from new opening branches, namely Petchkasem branch and 6 Dohome To-Go branches as well as the revenue increase from the branches in the ramp-up phase
Note: (1) same store sales growth includes only the revenue from the branch that completed its full year
Quarter Revenue from Sales and Services
10
Gross Profit and Gross Profit Margin
3,017 2,684 2,958 740 689
16.2% 14.6% 16.6% 16.5% 14.9%
2017 2018 2019 2Q2019 2Q2020
Annual Gross Profit Gross Profit Margin Key Changes ◼ Gross Profit Margin of 2Q2020 decreased to 14.9% from the Gross Profit Margin of 2Q2019 at 16.5% which was mainly from the temporary closure of retail area in the 8 large branches from total of 10 large branches and all Dohome To- Go as the results of pandemic of COVID-19. The closure of retail area caused a significant decrease in retail sales which generated higher gross profit margin. However, after the branches have reopened and operated as normal, the Company’s Gross Profit Margin came back to normal level. THB mm / % to revenues from sales and services Quarter Gross Profit
11
High Quality House Brand Products
15.6% 17.1% 16.7% 16.8%
2018 2019 2Q2019 2Q2020
% to revenues from sales and services Revenue Contribution from House Brand House Brand Products
◼ The company gives high importance to
product sourcing in order to obtain quality products at competitive prices
◼ The company has a House Brand
development team to help ensure that a variety of product options are available for customers
◼ Conduct research to study the needs of
customers and the competitive landscape in the market in order to optimize product selection
◼ House Brand product procured only from
qualified suppliers, both domestically and internationally
◼ High-quality products meeting product
standards with over 115 certifications issued by Thai Industrial Standard Furnitures and Home Decorations Household Items Tools and Hardwares Light Bulbs
12
SG&A Expense
Key Changes
◼
Selling and administrative expenses of 2Q2020 increased by THB 19.0 mm or 4.2% YoY, which was mainly due to the increases of administrative employee’s expenses, depreciation from new branches (Petchkasem branch and Dohome To-Go), and delivery expense which was in line with higher revenue from direct sales.
◼
However, the allowance for doubtful accounts decreased in accordance with improved effectiveness of debt collection, as well as the expenses of utility and consumable material reduced in line with temporary branches closure and cost saving programs. THB mm / % to revenues from sales and services
623 644 643 157 157 144 223 252 65 74 333 364 369 93 99 163 162 147 34 44 85 160 93 21 28 266 353 375 85 72
1,614 1,907 1,879 455 474 8.7% 10.3% 10.6% 10.2% 10.3%
2017 2018 2019 2Q2019 2Q2020
Selling Employee Expense Admin Employee Expense Depreciation and Amortization Delivery Expense Marketing Expense Others SG&A to Revenue from Sales and Services Allowance for bad debt (reverse) (6) 33 10 4 (11)
13
EBITDA and Net Profit
1,807 1,254 1,563 421 357 9.7% 6.8% 8.7% 9.3% 7.7% 2017 2018 2019 2Q2019 2Q2020 EBITDA EBITDA Margin
EBITDA
931 439 726 192 146 5.0% 2.4% 4.0% 4.3% 3.2% 2017 2018 2019 2Q2019 2Q2020 Net Profit Net Profit Margin
Net Profit
EPS (THB)
0.90 0.31 0.45 0.14 0.08 THB mm / % to total revenue THB mm / % to total revenue
14
Balance Sheet at a Glance
31 December 2019 30 June 2020 Assets
THB mm % THB mm %
Cash and Cash Equivalents 204.0 1.1 260.9 1.4 Accounts Receivable and Other Receivables 859.9 4.7 832.8 4.4 Inventory 7,048.2 38.8 7,262.7 38.7 Property, Plant and Equipment 9,705.3 53.5 9,968.8 53.1 Right of Use - Assets
1.9 Others 334.3 1.8 91.0 0.5 Total Assets 18,151.7 100.0 18,773.6 100.0 Liabilities Bank Overdrafts and Short-term Loan 5,731.7 31.6 5,209.4 27.8 Accounts Payable and Other Payables 2,488.2 13.7 2,912.2 15.5 Right of Use - Liabilities
1.1 Long-term Loan and Financial Lease Liabilities 3,339.1 18.4 3,578.0 19.1 Others 132.3 0.7 157.1 0.8 Total Liabilities 11,691.3 64.4 12,054.8 64.2 Shareholder’s Equity Issued and Paid-Up Capital 1,856.2 10.2 1,856.2 9.9 Premium on Share Capital 3,647.0 20.1 3,647.0 19.4 Retained Earnings 1,549.7 8.5 1,830.0 9.8 Others
Total Shareholder’s Equity 6,460.4 35.6 6,718.8 35.8 15
Key Financial Highlight
Financial Ratios Cash Cycle
L/E Current Ratio ROE Cash Cycle Inventory Days AP Days AR Days
16
128 118 130 131 123 2017 2018 2019 2Q2019 2Q2020 158 149 162 163 163 2017 2018 2019 2Q2019 2Q2020 20 19 17 18 18 2017 2018 2019 2Q2019 2Q2020 0.8 0.8 0.9 0.9 1.0 2017 2018 2019 2Q2019 2Q2020 3.1 2.5 1.8 1.8 1.8 2017 2018 2019 2Q2019 2Q2020 50 49 49 50 58 2017 2018 2019 2Q2019 2Q2020 21.7% 9.2% 11.2% 11.2% 9.1% 2017 2018 2019 2Q2019 2Q2020
Existing: Large Future: Large (10 stores) New (3 stores) Ubon Ratchathani 3Q20: Surin Nakhon Ratchasima 3Q20: Map Ta Phut, Rayong Rangsit 1Q21: Laem Chabang, Chon Buri Khon Kaen Udonthani Rama II Bang Bua Thong Chiang Mai Bangna Phetkasem Existing: To-Go Future: To-Go (8 stores) New (7 stores) Makro Charansanitwong 3Q20: Thaisomboon Market Makro Sathorn 3Q20: Ruaysub Market Big C Bang Phli 4Q20: Thairungthip Market Tesco Lotus Korat 4Q20: 4 Branches Pantip Ngamwongwan Tesco Lotus Bangna Cosmo Walk Chatchawan Market
Existing Branches and Future Branch Expansion
As of 30 June 2020
Chiang Mai Udonthani Khon Kaen Ubon Ratchathani Nakhon Ratchasima Bang Bua Thong Map Ta Phut, Rayong Bangna Rama 2 Rangsit Phetkasem Surin Laem Chabang, Chon Buri
Dohome To-Go Existing: 8 Stores
Large Store Branches
18
New: Dohome Surin Branch (Opened)
19 Location 483 Moo 10, Nok Mueang Subdistrict, Mueang District, Surin Province 32000 Store Area 26,445 Sq.m. Opening 27 July 2020
New: Dohome Map Ta Phut Branch (3Q2020)
20 Location Map Ta Phut Subdistrict, Mueang Rayong District, Rayong Opening 3Q2020
Map Ta Phut
New: Dohome Laem Chabang Branch (1Q2021)
21 Location Bang Lamung Subdistrict, Bang Lamung District, Chonburi Province Opening 1Q2021
3rd phase of the Laem Chabang Seaport
1
New: Dohome To-Go 2 Branches (Opened)
Location Cosmo Walk Opening 2 June 2020 Location Chatchawan Market Opening 24 June 2020 22
2
3 1 2
New: Dohome To-Go 3 Branches (3Q – 4Q/2020)
Location Ruaysub Market Opening 3Q2020 Location Thairungthip Market Opening 3Q2020 Location Thaisomboon Market Opening 4Q2020 23