Opportunity Day 2018 Results COL Public Company Limited The Stock - - PowerPoint PPT Presentation

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Opportunity Day 2018 Results COL Public Company Limited The Stock - - PowerPoint PPT Presentation

Opportunity Day 2018 Results COL Public Company Limited The Stock Exchange of Thailand 8 March 2019 Important Notice The information contained in this presentation is for information purposes only and does not constitute an offer or


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8 March 2019

COL Public Company Limited

Opportunity Day – 2018 Results

The Stock Exchange of Thailand

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Important Notice

  • The information contained in this presentation is for information purposes only and does not

constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in COL Public Company Limited (“COL” and shares in COL, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.

  • This presentation may include information which is forward-looking in nature. Forward-

looking information involves known and unknown risks, uncertainties and other factors which may impact the actual outcomes, including economic conditions in the markets in which COL operates and general achievement of COL business forecasts, which will cause the actual results, performance or achievements of COL to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.

  • This presentation has been prepared by COL. The information in this presentation has not

been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness

  • f the information and opinions in this presentation. None of the COL or any of its agents or

advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

  • This presentation is made, furnished and distributed for information purposes only. No part of

this presentation shall be relied upon directly or indirectly for any investment decision- making or for any other purposes.

  • This presentation and all other information, materials or documents provided in connection

therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.

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Agenda

 Business Highlights  Operating Results  Strategic Direction

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Business Highlights Operating Results Strategic Direction

2018 highlights

4

Expanding its business with new opportunities

  • Factory Supplies, the new products on OfficeMate’s

platform

  • OfficeMate Plus, the new format of Business Solution store

Creating synergy among business units under COL

  • B2S x OfficeMate, The 1st combined store to serve both

customers in B2B and B2C market

  • Boox and Pixipe, the new products by MEB at B2S store
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Business Highlights Operating Results Strategic Direction

2018 highlights (continue)

5

Aiming to be the Omni-Channel Retailing

  • Enhancing its online platform and seamlessly

connecting between front-end and back-end Upgrading logistics system with the new automated warehouse Achieving store expansion plan with 23 new stores

  • pened nationwide

Completing asset enhancement program

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Business Highlights Operating Results Strategic Direction

To be Business Solution Provider

7

New Product Launch Offering new services to fulfill customer’s needs

Factory Supply category: Safety equipment, General supply, and Manufacturing supply Parcel service delivery

Total in OfficeMate stores 65 kiosks nationwide

> 470,000

boxes in 2018 Number of SKUs

+5,000 SKUs

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Business Highlights Operating Results Strategic Direction

Introduce “New Franchise Model” to market

8

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Business Highlights Operating Results Strategic Direction

Enhance OfficeMate’s online platform

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Customer journey improvement

  • Launch new look of

OfficeMate’s website

  • +23% yoy in online sales
  • +39% yoy in number of visits,

and reached over 14 million visits New online channel Effective online marketing promotion

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Business Highlights Operating Results Strategic Direction

Push start the new automated warehouse 10

  • Launch of E-commerce B2B warehouse with

22,000 sq.m. storage area

  • Increase the company’s productivity and

efficiency

  • Improve its ability to support orders during

peak time

  • More accuracy of warehouse

management

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Business Highlights Operating Results Strategic Direction

11

New stores and Renovation in 2018

New stores in 2018

The Season Mall Phaholyothin Rangsit (1 Standard type store) Assawan Shopping Complex Nhongkai Tesco Lotus Navanakorn RCA (1 Standard type store and 1 Compact type store) Tesco Lotus Bangpakok Central Plaza Khonkaen Central PlazaChiangrai

Total number of stores: 73 stores

(as of 31 December 2018)

Store Renovation in 2018: 8 stores OfficeMate’s new stores in 2018

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Business Highlights Operating Results Strategic Direction

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Re-launch 3 Think Space stores

Bangkok

B2S Think Space

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Business Highlights Operating Results Strategic Direction

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Create synergy with OfficeMate and MEB

New Concept Store for B2B and B2C New Product Offering at B2S

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Business Highlights Operating Results Strategic Direction

15

New stores and Renovation in 2018

New stores in 2018

Lee Wiwat Superstore Tops Plaza Singburi Century the Movie Plaza Tops Plaza Phol Marketplace Nang Linchee Tops Plaza Phayao Tesco Lotus Banggruay (Sainoi) Robinson Lifestyle Chaiyapoom Tesco Lotus Klongluang Central Plaza Phuket Floresta Tesco Lotus Salaya Big C Sattahip Big C Chiangrai Robinson Lifestyle Chonburi

Store Renovation in 2018: 7 stores (3 stores under Think Space concept) B2S’ new stores in 2018

Total number of stores: 114 stores

(as of 31 December 2018)

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Business Highlights Operating Results Strategic Direction

17 Strengthen leadership position in E-Book market

Mobile Application MEB’s Website

50

499

2014 2015 2016 2017 2018 Gross Merchandise Value (GMV)

(Unit: Million Baht)

MEB 68%

Others, 32% Thai E-Book Market Share in 2018 MEB’s Platforms and Products

E-Reader readAwrite

Source: Department of Business Development (DBD) and Company estimates

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Business Highlights Operating Results Strategic Direction

18 Promote brand awareness through major events

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Agenda

 Business Highlights  Operating Results  Strategic Direction

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Business Highlights Operating Results Strategic Direction

Financial highlights

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+46% yoy +2% yoy +9% yoy 11,207 11,470 2,895 3,150 502 733 2017 2018 2017 2018 2017 2018

Sales Revenue* Gross Profit Net Profit

Unit: Million Baht

Liabilities 3,024 Equity 6,256

Assets 9,281 31-Dec-18

Balance Sheet

+46%

%Net profit growth

+164bps

%GPM

High Earnings Growth Profitability Expansion Healthy Financial Status

0.48x

Liability/Equity

*Excluding the online B2C business, sales revenue in 2018 increased by 5% from last year. Remark: - GPM = Gross profit margin

  • bps = Basis point

Consolidation

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Business Highlights Operating Results Strategic Direction

Revenue from sales

2017 2018

By Year By Quarter

%SSSG +2.6 +2.5 OFM +0.2 +3.0 +3.2 +4.1 +7.1 +4.5 (1.1) (0.6) (1.4) (0.6) B2S +1.0 +1.6 (0.9) (6.6) (4.3) (1.5) +2.1 +2.2

*Excluding the online B2C business, sales revenue in 2018 increased by 5% from last year. Remark: SSSG = Same store sales growth

Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

11,240 11,470 63% 37% (-) 62% 36% 2%

OFM B2S Online B2C

Unit: Million Baht

Total sales*

+2% yoy

62% 34% 4%

2,798

61% 34% 5%

2,754

64% 35% 1%

2,836

62% 38%

2,819

(-)

21

+3% yoy

65% 35%

2,892

(-) 65% 35%

2,800

(-) 63% 37%

2,867

(-)

2,912

60% 40% (-)

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Business Highlights Operating Results Strategic Direction

Gross profit and margin

Product Mix*: OfficeMate Product Mix*: B2S

% %

Office Supplies Electronic Equipment Furniture & Others

43 38 19

Stationery Books Lifestyle

48 26 26 2017 2018 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

25.8 27.5 %GPM 24.5 25.5 26.2 27.0 27.3 27.7 27.5 27.4

Unit: Million Baht

By Year By Quarter

2,895 3,150

61% 39% 61% 39% OFM B2S

+9% yoy

Unit: Million Baht

60% 40%

687 +5% yoy

60% 40%

703

62% 38%

742

*In 2018 Remark: GPM = Gross profit margin

60% 40%

763

22

63% 37%

789

62% 38%

774

61% 39%

789

58% 42%

798

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Business Highlights Operating Results Strategic Direction

EBITDA and margin

Unit: Million Baht

By Year By Quarter

Unit: Million Baht

910 1,216 2017 2018 268 169 228 246 362 274 310 270 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418

8.1 10.6 %EBITDA margin 9.6 6.1 8.0 8.7 12.5 9.8 10.8 9.3

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+34% yoy +10% yoy

Remark:

  • EBITDA = Earnings before interest and tax (“EBIT”) + Depreciation and amortization
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Business Highlights Operating Results Strategic Direction

Net profit and margin

Unit: Million Baht

By Year By Quarter

Unit: Million Baht

2017 2018 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 741 733 502 733 (-)

Net Profit

154 (86) 241 75 (96) 171

Loss from Online B2C Business Core Profit*

(238) 131 (56) 187

4.5 6.4 %NPM 5.5 2.7 4.6 5.0 8.3 5.9 6.4 5.0 6.6 6.4 %Core profit margin* 8.6 6.2 6.6 5.0 8.3 5.9 6.4 5.0

*Excludes loss from Online B2C business Remark: NPM = Net profit margin

142 142

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240 240 166 166 182 182 (-) (-) (-) (-) (-) 146 146

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Agenda

 Business Highlights  Operating Results  Strategic Direction

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Business Highlights Operating Results Strategic Direction

COL Strategic Direction

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To be the excellent leading retailer and e-tailer (online retailer) in ASEAN

Strengthening position in B2B market Aiming to be the Omni-Channel Retailing Accelerating its growth through new market Opening doors to new business

  • pportunities

Enhancing stores’ performance with Asset Enhancement Program Focusing on profitability and productivity

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Business Highlights Operating Results Strategic Direction

Enlarge OfficeMate’s products and services 27

  • Launch new

OfficeMate E-Commerce Platform

  • Offer new features
  • Search Suggestion
  • Shop by Interest
  • Pre-order
  • Product price

comparison

  • Live chat everyday

at 8:00 – 18:00 hours

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Business Highlights Operating Results Strategic Direction

To accelerate its growth with franchise 28

Compact Size Standard Size

Store size: 40-60 sq.m. Initial Investment 2.9-3.9 million Baht Store size: 80-120 sq.m. Initial Investment 4.6-5.9 million Baht

To apply our franchise, please call at 1281 ext. 6

  • r

is ready

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Business Highlights Operating Results Strategic Direction

29

Promote potential products

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Business Highlights Operating Results Strategic Direction

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Store expansion and renovation plan

Renovation/ Relocation New Stores 10 stores 8 stores 9 stores 14 stores 2019 CAPEX for new store expansion and renovation:

  • approx. Baht 400 million
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Business Highlights Operating Results Strategic Direction

31 Increase its profitability by Exclusive Brand

Office Furniture Stationery and Office Supply

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Dividend payment

Dividend policy: No less than 40% of the Company’s net profit after deduction of taxes and legal reserves

Remark: * Par spilt from Baht 1.00 per share of 320 million shares to Baht 0.50 per share of 640 million shares effective on 11 April 2018 ** Subject to 2019 Annual General Meeting of Shareholders' approval

0.25 0.28 0.28 0.28 0.40

0.55**

2013 2014 2015 2016 2017 2018

Dividend Per Share (DPS) (adjusted DPS and total number of shares due to par split*)

(Unit: Baht per Share)

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For further information & enquiries, please contact Investor Relations Department

Tel: +662 015 5557 Email: ir@col.co.th

Thank you