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

6 December 2019

Dohome Public Company Limited

Company Presentation

Table of Contents

2

Dohome Business Overview

1

Operating Results for 9M2019

2

Business Outlook

3

STRICTLY PRIVATE & CONFIDENTIAL

Dohome Business Overview

As of 30 September 2019

Dohome Business Overview

4

One-stop Home Products Destination

Retail Space (212,829 sq.m.) Warehouse Space (246,341 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 and Revenue Breakdown by Product Group(1) 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 with Petchkasem branch opening in Nov 2019 branches in operation

9 7 2 88

new branches within 2021

STRICTLY PRIVATE & CONFIDENTIAL

Operating Results for 9M2019

P&L Summary

Note: (1) Gross profit margin calculated based on revenue from sales and services

6

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

Gross profit 2,090.7 14.9(1) 2,226.3 16.4(1) 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

Revenue from Sales and Services

Note: (1) SSSG is considered only the revenue from branch which completed its full year operation.

7

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 from 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.

THB mm

18,538 18,576 18,445 14,010 13,544 4,432 4,118 1.5% 0.2%

• 2.7%
• 1.7%
• 5.5%
• 1.6%
• 8.2%

2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Revenue from Sales and Services SSSG (1)

Gross Profit and Gross Profit Margin

2,886 3,017 2,684 2,091 2,226 677 676 15.6% 16.2% 14.6% 14.9% 16.4% 15.3% 16.4% 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Gross Profit Gross Profit Margin

THB mm

Key Changes in 9M2019

◼

Gross Profit Margin increased from 14.9% in 9M2018 to 16.4% in 9M2019 due to:

◼

The reversal of provision for obsolete and slow-moving inventory

◼

Revenue contribution from house brand expanded in 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 14.4% 15.8% 14.4% 16.5% 9M2018 9M2019 3Q2018 3Q2019

% to revenues from sales and services

Revenue Contribution from House Brand

8

SG&A Expense

9

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.

THB mm

565 623 644 484 477 153 158 126 144 223 167 189 54 70 321 333 364 272 276 96 93 161 162 158 118 112 42 37 90 83 150 121 65 41 30

305

274 334 271 274 113 98

1,598 1,614 1,907 1,433 1,393 499 484 8.6% 8.7% 10.3% 10.2% 10.3% 11.3% 11.8% 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 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)

29 (6) 33 35 23 15 10

EBITDA and Net Profit

Note: (1) Calculated based on par value of THB 100 per share

10

1,714 1,807 1,254 1,008 1,223 308 317 9.2% 9.7% 6.8% 7.2% 9.0% 7.0% 7.7% 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 EBITDA EBITDA Margin

EBITDA

853 931 439 386 573 92 134 4.6% 5.0% 2.4% 2.7% 4.2% 2.1% 3.2% 2016 2017 2018 9M2018 9M2019 3Q2018 3Q2019 Net Profit Net Profit Margin

Net Profit

EPS (THB) 83.14(1) 0.90 0.31 0.28 0.38 0.07 0.08 THB mm THB mm

Balance Sheet at a Glance

11

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

Key Financial Highlights

Note: (1) Calculated from last 12 months net income

12

Financial Ratios Cash Cycle

L/E Current Ratio ROE

Cash Cycle Inventory Days AP Days AR Days

◼

Inventory day increased from 147 days in year 2018 to 154 days in 3Q19 partly as a result of the company stocking up inventory for the Petchkasem branch opening in November 2019 105 126 116 111 121 128 2016 2017 2018 1Q2019 2Q2019 3Q2019 140 156 147 146 152 154 2016 2017 2018 1Q2019 2Q2019 3Q2019 19 20 18 18 18 18 2016 2017 2018 1Q2019 2Q2019 3Q2019 54 49 49 52 49 43 2016 2017 2018 1Q2019 2Q2019 3Q2019 0.8 0.8 0.8 0.8 0.6 0.9 2016 2017 2018 1Q2019 2Q2019 3Q2019 3.1 2.5 2.5 2.5 5.5 1.8 2016 2017 2018 1Q2019 2Q2019 3Q2019 25.2% 21.7% 9.2% 10.2% 15.5% 11.3% 2016 2017 2018 1Q2019 2Q2019 3Q2019

(1)

Business Outlook

Increase Inventory Management Efficiency Through Utilization of ASRS System

14

Automated Storage and 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

◼

Improvement in inventory management efficiency through lower costs to store and retrieve inventory

◼

The company could potentially consider installing the ASRS system at other large store format warehouse in the future

New Warehouse with ASRS Existing Warehouse

 Reduce required warehouse space  Reduce the number of warehouse staff  More efficient inventory management c.13 m ceiling floor 22m. *Picture for illustration only

2017 2018 Nov-19 2020F - 2021F

Dohome size L Dohome Togo

Store Expansion Plan

15

10 90

1 Dohome size L

• Petchkasem Branch (Nov)

Dohome Togo

• Charunsanitwong (Jul)
• Sathorn (Jul)
• Bangphli (Nov)

Dohome size L

• Bangna Branch (Apr)

Dohome size L

• 6 New Branches

Dohome Togo

• 87 New Branches.

8 9 16

• No. of Store

6 87

New Branch

1

3

3

Q&A