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DOCUMENT TITLE SUBTITLE NAME SURNAME dd.mm.yy 22.12.19 ANALYST / INVESTOR MEETING Business & Performance Updates FY 2019 2 March 2020 This presentation and all other information, materials or documents provided in connection therewith


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DOCUMENT TITLE SUBTITLE

NAME SURNAME

dd.mm.yy

22.12.19

ANALYST / INVESTOR MEETING Business & Performance Updates FY 2019

2 March 2020

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This presentation and all other information, materials or documents provided in connection therewith are being furnished to you solely for your information and may not be photocopied or reproduced or redistributed to any other person in whole or in part at any time except with a prior written consent of Central Retail Corporation Public Company Limited (“CRC”). These materials have been prepared by CRC solely for your information and for use at a presentation for this meeting. No representations, warranties, or undertakings, express or implied, are made by CRC, or any of its respective members, directors, officers, employees, agents, affiliates, advisers or representatives or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of, the information or opinions presented or contained therein. By attending this presentation, you represent and warrant that you are entitled to attend such presentation in accordance with the restrictions set forth below and agree to be bound by the restrictions contained herein. Any failure to comply with these restrictions may constitute a violation of applicable laws. The contents of these materials have not been verified by CRC and it may not contain all material information concerning CRC. None of CRC, or any of its respective directors, officers, employees, agents, affiliates, advisers or representatives accepts any liability whatsoever in negligence or otherwise for any loss howsoever arising, whether directly or indirectly, from any use of the information or opinions presented or contained therein or otherwise arising in connection therewith. The information and opinions presented or contained therein are provided as at the date

  • f this meeting based on the economic, regulatory, market and other conditions as in effect on the date hereof and are subject to verification, completion, updating, revision and change without

notice and the accuracy of the information is not guaranteed. CRC and/or persons connected with it may have acted upon or used the information and opinions herein contained, or the research or analysis on which it is based, before its publication. It should be understood that subsequent developments may affect the information and opinions presented or contained therein, which neither CRC nor its advisers or representatives are under an obligation to update, revise or affirm. This presentation may contain “forward-looking statements” including opinion, forecasts or estimates as well as “unaudited forecasts” and “projected financial information” (“Forward-Looking Statements”), which (i) address hypothetical situation, (ii) are based on current expectations and projections about future events, or (iii) include all statements other than statements of historical facts, as well as predictions, projections and forecasts of the economy or economic trends of the markets. Such Forward-Looking Statements are not necessarily indicative of the future or likely performance or projection of CRC and involve known and unknown risks, uncertainties and other important factors beyond the control of CRC that could cause the actual results, performance or achievements or industry results to be materially different from future results, performance or achievements expressed or implied by such Forward-Looking Statements. Such Forward-Looking Statements are based on forecasts and projections from CRC. Forward-Looking Statements are not guarantees of future performance and speak only as at the date of this presentation, and none of CRC, or any of its respective directors, officers, employees, agents, affiliates, advisers or representatives intends or has any obligation or undertakes to supplement, amend, update or revise any Forward-Looking Statements as a result of new information or to reflect future events or circumstances, except as required under applicable laws. You should not place undue reliance on these Forward-Looking Statements. Past performance is not necessarily indicative of future performance. No part of this presentation and the information contained in these materials shall constitute or form part of any advertisement of, commitment or offer or invitation of any offer for sale or subscription of or solicitation or recommendation or invitation of any offer to buy or subscribe for, any securities of CRC in any jurisdiction nor shall it or any part of it form the basis of or be relied

  • n in connection with any contract or commitment whatsoever.

No consideration has been given to particular investment objectives, finances or needs of any recipient. This presentation should not be treated or relied upon as advice relating to legal, taxation, financial, accounting, investment matters or advice or a credit or other evaluation of the offering for any securities of CRC. By attending this presentation you (i) acknowledge that you will be solely responsible for your own assessment of the market and the market position of CRC, and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of CRC’s business and (ii) agree to be bound by the foregoing terms. CRC and its representatives are not responsible for any costs or expenses incurred by the recipient.

DISCLAIMER

2

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2019 CRC Overview and Financial Results Strategic Directions and 2019 Business Updates 2020 Outlook

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TODAY’S AGENDA

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CENTRAL RETAIL AT A GLANCE: 2019

4

Leading Multi-format, Multi-category Omni-channel Retailing Platform Across Attractive Growth Markets

Revenue

THB 222,737 Mn

+8% YoY Growth

EBITDA

THB 25,814 Mn

+3% YoY Growth

Net Profit1

THB 12,359 Mn

+11% YoY Growth

3,833 Points of sales 3,006,181 sqm NSA (+1% YoY)

Across Thailand, Vietnam, Italy and Malaysia

29.2 Mn members across Loyalty Programs

16.9 Mn T1 members: +6% YoY Growth

61 Retail Plazas3 544,538 sqm NLA (+6% YoY)

In Thailand and Vietnam

*Normalized EBITDA THB 22,455 Mn and Normalized NPAT 9,016 Mn

  • 1. Net Profit from continuing operations; 2. Net sales of Thailand; Online sales 3.0% of total Net Sales
  • 3. Retail Plazas include Robinson Lifestyle Center, Tops Plaza and Big C/ GO! Mall

Online sales 3.2% of Net Sales2

+84% YoY Growth

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ITALY VIETNAM THAILAND

CENTRAL RETAIL AT A GLANCE: 2019

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Leading Multi-format, Multi-category Omni-channel Retailing Platform Across Attractive Growth Markets Business Segment 2019 SALES (THB Mn) 2019 EBITDA* 2019 Store1 Network

NSA (sqm) NLA (sqm)

*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim Normalized EBITDA THB 22,455 Mn and Normalized NPAT 9,016 Mn

  • 1. Exclude 1,750 shops in shops/ sales counters in Thailand & Malaysia and 8 brand shops in Malaysia as of Dec 31, 2019

144,940 Mn / 74% 35,691 Mn / 18% 14,537 Mn / 7% 18,335 Mn / 82% 2,415 Mn / 10% 1,895 Mn / 8% 1,934 stores

(51/77 provinces)

2.6 Mn sqm / 88% 0.4 Mn sqm / 73% 132 stores

(40/63 provinces)

9 stores

(8 cities)

0.3 Mn sqm / 10% 0.15 Mn sqm / 27% 0.1 Mn sqm / 2%

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CENTRAL RETAIL AT A GLANCE: 2019

6

Leading Multi-format, Multi-category Omni-channel Retailing Platform Across Attractive Growth Markets COUNTRY 2019 SALES (THB Mn) 2019 EBITDA* 2019 Store1 Network

NSA (sqm) NLA (sqm)

*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim Normalized EBITDA THB 22,455 Mn and Normalized NPAT 9,016 Mn

  • 1. Exclude 1,750 shops in shops/ sales counters in Thailand and 8 brand shops in Malaysia as of Dec 31, 2019

64,280 Mn / 33% 80,492 Mn / 41% 50,583 Mn / 26% 12,116 Mn / 54% 5,805 Mn / 26% 4,535 Mn / 20%

601 stores

1.3 Mn sqm / 42% 0.4 Mn sqm / 67%

1,248 stores 234 stores

0.6 Mn sqm / 21% 0.2 Mn sqm / 33% 1.1 Mn sqm / 37%

  • HARDLINE

FOOD FASHION

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SUMMARY FINANCIALS

4Q 2019 and FY2019

7 *Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim

Unit: THB Million 2018 2019 % YoY 4Q 2018 4Q 2019 % YoY Sales 180,614 195,355 8% 47,171 52,986 12% Rental & service income 7,828 8,654 11% 1,923 2,242 17% Other income 18,178 18,728 3% 4,399 8,176 86% Total revenue 206,620 222,737 8% 53,493 63,405 19% COGs 129,937 142,352 10% 33,212 38,713 17% SG&A 60,160 62,652 4% 16,328 16,801 3% EBITDA 25,123 25,814 3% 6,334 10,233 62% NPAT 11,105 12,359 11% 2,338 6,500 178% EBITDA* (normalized) 22,052 22,455 2% 6,608 6,608

  • NPAT* (normalized)

8,648 9,016 4% 2,558 2,943 15% Gross profit from sales % 28.1% 27.1% 29.6% 26.9% EBITDA* margin % 10.7% 10.1% 12.4% 10.4% NPAT* margin % 4.2% 4.0% 4.8% 4.6%

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SLIDE 8

SUMMARY FINANCIALS

Sales

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SALES BY SEGMENT, THB Mn SALES BY GEOGRAPHY, THB Mn

% YOY 2018-19

+28% +2% +3%

  • 7%

+41% +4% % YOY 2018-19 78,299 80,492 62,765 64,280 39,550 50,583 2018 2019 180,614 195,355 +8% +8% 139,315 144,490 25,371 35,691 15,643 14,537 2018 2019 180,614 195,355 +4% +44% Constant THB +10%

Hardline Fashion Food

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SLIDE 9

SUMMARY FINANCIALS

Sales

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SALES BY SEGMENT, THB Mn SALES BY GEOGRAPHY, THB Mn

% YOY 2018-19

+28% +2% +3%

  • 7%

+41% +4% % YOY 2018-19 78,299 80,492 62,765 64,280 39,550 50,583 2018 2019 180,614 195,355 +8% +8% 139,315 144,490 25,371 35,691 15,643 14,537 2018 2019 180,614 195,355 +4% +44% Constant THB +10%

Hardline Fashion Food 22% Mix 35% 43% 26% Mix 33% 41% 9% Mix 14% 77% 7% Mix 18% 74%

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SUMMARY FINANCIALS

EBITDA normalized

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EBITDA* BY SEGMENT, THB Mn

5,617 5,805 12,774 12,115 3,661 4,535

2018 2019

Food Fashion Hardline

% YOY 2018-19 22,052

EBITDA* BY GEOGRAPHY, THB Mn

+2% +24%

  • 5%

+3% 22,455 18,088 18,335 1,991 2,415 2,055 1,895

2018 2019

Food Fashion Hardline

+2%

  • 8%

+21% +1% 22,052 22,455 % YOY 2018-19

*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim

+4% Constant THB +4% Constant THB

Hardline Fashion Food

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SLIDE 11

SUMMARY FINANCIALS

EBITDA normalized

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EBITDA* BY SEGMENT, THB Mn

5,617 5,805 12,774 12,115 3,661 4,535

2018 2019

Food Fashion Hardline

% YOY 2018-19 22,052

EBITDA* BY GEOGRAPHY, THB Mn

+2% +24%

  • 5%

+3% 22,455 18,088 18,335 1,991 2,415 2,055 1,895

2018 2019

Th VN IT

+2%

  • 8%

+21% +1% 22,052 22,455 % YOY 2018-19

*Normalized to exclude items: Gain (loss) on disposal assets/investment/entities, FX Gain (loss), Employee benefit, Insurance claim

+4% Constant THB +4% Constant THB

Hardline Fashion Food 17% Mix 58% 25% 20% Mix 54% 26% 9% Mix 9% 82% 8% Mix 11% 81%

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SUMMARY FINANCIALS

Thailand

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% YOY 2018-19 139,280 144,940 0.7% 1.0% 1.8% 3.2% 2016 2017 2018 2019

Omni-channel % to Sales

+6%

  • 0.7%

+8% +4% 53,207 52,842 46,523 49,330 39,550 42,768 2018 2019

Sales, THB Mn

Food Fashion Hardline +2% +1% SSSG % 41% 89% 84%

Hardline Fashion Food

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SUMMARY FINANCIALS

Thailand – Retail Plaza (RBS Lifestyle Center and Tops Plaza)

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3,131 3,458 2018 2019

Rental Income, THB Mn

27 28 2018 2019

  • No. of Retail Plazas

+10% 370,461 398,572

2018 2019

Net Leasable Sqm & Occ %

+8% 98% 97%

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SLIDE 14

25,092 27,650 2018 2019

Sales, THB Mn

14% 14% 6% 8% 2018 2019

SSSG %

SUMMARY FINANCIALS

Vietnam Food

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  • 1. Occupancy rate included Big C Hypermarket as tenants

Note: Big C acquisition in 2016; performance did not record on annual basis

VND 1,095 1,169 2018 2019

Rental income, THB Mn

142,329 145,966 2018 2019

Leasable Sqm & Occupancy rate1 %

+10% +15% Constant THB THB +7% +13% Constant THB 89% 90%

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SUMMARY FINANCIALS

Italy

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15,643 14,537 2018 2019

Sales, THB Mn

11 10 9 2017 2018 2019

  • No. of Stores

Genoa closed Nov Padova closed Feb Rome Galleria closed Mar/ Rome Tritone

  • pened

Nov

6% 12% 5% 2% 2018 2019

SSSG %

THB EUR

  • 7%

+4% Constant THB

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SELLING & ADMIN (SG&A) EXPENSES

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SG&A Expenses, THB Mn & % of Total revenue 2019 SG&A Breakdown %

60,160 62,653 29.1% 28.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2018 2019 Personnel, 35% Rental & Service, 16% Depreciation , 15% Utilities, 7% Marketing, 6% Others*, 20% SG&A expense increased driven by

  • Consolidation of Nguyen Kim business
  • Increases in employee benefit expense (restructuring and

severance pay obligations pursuant to the provisions of a new Labor Protection Act)

  • Increases in rental and service expense (restructuring)

*Other items are such as Maintenance, Professional and management fees, Shrinkage, and computer expenses

+4%

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BALANCE SHEET

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177,357 187,022 110,030 146,063 67,327 40,959 2018 2019

Total assets Total liabilities Total equity

THB Mn Net Debt/Equity 0.5x 1.2x Net Debt/EBITDA 1.2x 2.0x 0.4x 1.1x Post IPO*

*Adjusted to give effect to issue of 1,331,000,000 Primary Shares at an offering price of THB 42 per share and accounting for payment of underwriting fees, advisory

Capital Structure Ceiling Leverage

  • Net Debt/Equity is 2.0x
  • Net Debt/EBITDA 3.0x
  • Total Assets increase

by 5.4%, primarily due to the consolidation of Nguyen Kim business

  • Total Liabilities and

Equity change from dividend payment

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2019 CRC Overview and Financial Results Strategic Directions and 2019 Business Updates 2020 Outlook

18

TODAY’S AGENDA

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OUR 5-YEAR STRATEGIC DIRECTIONS

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Drive profitable growth focusing on omni-channel, portfolio expansion, efficiency & strategic M&A

ITALY ITALY VIETNAM VIETNAM THAILAND THAILAND

Accelerate profitable and sustainable growth via Omni-channel Platform Accelerate profitable and sustainable growth via Omni-channel Platform Expand our network through our ecosystem of Property, Food and Non-Food Expand our network through our ecosystem of Property, Food and Non-Food Drive superior & luxury Lifestyle Experience Drive superior & luxury Lifestyle Experience

  • Develop food in multi-formats

(Superstore, Supermarket: urban & rural) to serve different customer segments nationwide

  • Extend & transform current

BigC hypermarkets into lifestyle GO! malls

  • Grow non-food category killers

(HBA, lifestyle, home improvements, family entertainment zone, etc)

  • Drive existing portfolio by

anticipating trends / customer needs and modernizing the experience through attractive product mix for locals & tourists

  • Renovations of key stores

(Milan, Mini-Flagships: Florence, Roma Fiume)

  • Launch omni-channel in

2020

  • Drive omni-channel customer

experience as first mover

  • Expand our network mainly in

upcountry

  • Enlarge our portfolio of

formats and brands

  • Drive productivity/efficiency

to increase LFL EBITDA

  • Drive consolidation – M&A

SALES

Growth

8-10%

CAGR

SALES

Growth

8-10%

CAGR Growth

10-11%

CAGR Growth

10-11%

CAGR

EBITDA

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THAILAND HIGHLIGHTS: 2019 OMNI-CHANNEL

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1.1

1.9 0.9 0.5

1.8

2.8 2.1 0.7

3.2

5.5 3.1 1.0 TOTAL Fashion Hardline Food

2017 2018 2019

Omni-channel sales growth 2018 vs. 19 Omni-channel % sales contribution to net sales

+110% Fashion +58% Hard line +51% Food

+200% +195% +160% +140%

Top performing categories1

  • 1. Sneakers, Sports and Outdoor, Health & Beauty, Home & Kitchen

7.6 (exc. TWD) 5.8

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THAILAND HIGHLIGHTS: 2019 OMNI-CHANNEL

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Track record in Converting Offline Customers to Omni-channel with Increased Sales (1)

1,385 1,451 217

2018 2019

654 936 279

2018 2019

511 554 121

2018 2019

+21% +86% +32% +8% +43% +8%

39,333 New online customers 45,316 New online customers

218 248 593

2018 2019

+286 % +14%

215,133 New online customers 28,648 New online customers

  • 1. 2018 figures refer to spending figure per customer before their first online purchase, 2019 figures refer to spending figure after their first online purchase

Sales in THB Mn in 2019 vs 2018

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SLIDE 22

THAILAND: 2019 MAJOR OPENINGS

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Ladkrabang (Q4) Patong (Q1) Record sales in Jan 2020 Huge success well above budget

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THAILAND: 2019 MAJOR OPENINGS

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5 new stores:

  • Korat (Q1)
  • Nakornpathom (Q1)
  • Rayong (Q2)
  • Srimahapho (Q2)
  • Nongchok (Q4)
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8% 6% 9% 7% Non-food Food

2019 PL penetration % to Net Sales

Non-Food brands Food brands

THAILAND: 2019 PRIVATE LABELS

12% 14% 8% Total Non-food Food

% Private Labels (PL) sales growth 2018 vs. 19

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VIETNAM HIGHLIGHTS: FOOD GAINING MARKET SHARE

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Market share gained in 2019 and Leadership in Price image & Product variety strengthened Continued to build strong relationships with local communities and the Government

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VIETNAM: 2019 MAJOR OPENINGS & RENOVATIONS

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Renovation and extension of Big C Nam Dinh with 97% occupancy (Q4) Opening of GO! Market in Hanoi (Q2) Opening of 30+ non-food category killers

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ITALY HIGHLIGHTS: MINI FLAGSHIP “TORINO” RENOVATION

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SALES (in EUR) Q4: +72% vs. LY I FY: +54% vs. LY RELAUNCHED in OCT 2019

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2019 STORE NETWORK EXPANSION ON TRACK

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  • FY new opening +188 stores/ 4Q new opening +63 stores
  • Major opening: CDS Patong, RBS Ladkrabang, +5 TWD
  • Major closing: Padova, Tops SuperKoom

2018 2019 2018 2019 Dept Store - TH 70 73 Retail Plaza - TH 27 28 Dept Store - IT 10 9 Specialty - Sports 192 219 Brandshops 284 300 Supermarket - TH 298 218 Big C/GO! mall - VN 32 33 Convenience store - TH 1,090 968 Food - VN 61 62 Electronic - TH 105 108 Electronic - VN 63 70 DIY - TH 51 56 TOTAL 2,224 2,083 TOTAL 59 61 NLA ('000 sqm) 513 545 Growth %yoy 15% 6% Occupancy rate 93% 94% # of Stores # of Retail Plazas FASHION FOOD HARDLINE

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PREPARED FOR “RIDING THE STORM” OPPORTUNITIES

Opportunities Actions Capture local shoppers opportunity and high growth categories

  • Less travel means less money spent travelling and

shopping abroad, more to spend locally

  • High growth category opportunities e.g., staples,

groceries, air-purifiers, beauty essentials Capture Online/home shopping acceleration opportunity

  • Provide convenient alternatives for shoppers that are

less willing to go to store: Web-shopping and Chat & Shop Rebase our cost structure: Existing stores productivity

  • Optimization and reorganization e.g.,
  • Multi-counter sales staff, Utility cost reduction,

HO rationalization, Marketing spend effectiveness, Purchasing & Organizational synergies Strengthen our value/ price perception

  • Improve value and price image of our stores (opp,

range reviews, visual merchandising), continue to increase the penetration of PL/ DIP

1 1 2 2 3 3 4 4

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2019 CRC Overview and Financial Results Strategic Directions and 2019 Business Updates 2020 Outlook

30

TODAY’S AGENDA

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63% 32% 5% By Country

Thailand Vietnam Italy

2020 CAPEX PLAN FOR ORGANIC EXPANSION

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Projected CAPEX 2020: THB 18 Billion

60% 30% 10%

New stores Stores renovation Supporting assets & systems

By Type of Use

2020 Major Store Expansion & Renovation

Major Store

  • pening

Major Renovation

  • +3 RBS
  • +7 Thai Watsadu
  • +6 GO! malls
  • Florence
  • Rome Fiume
  • 4 existing Big C
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32

CAPEX 2020: THB 18,000 Million

1.5-2.0x

Thailand’s GDP growth

SALES GROWTH

  • 2018-2019 total CRC’s Sales

growth is 1.8-3.3x Thailand GDP

>15%

ROE %

  • Robust ROE will be

maintained (2018, 2019 ROE’s: 16%, 23%)

TOTAL CRC: 2020 OUTLOOK

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