Opportunity Day 4 th September 2019 CONFIDENTIAL AND PROPRIETARY - - PowerPoint PPT Presentation

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Opportunity Day 4 th September 2019 CONFIDENTIAL AND PROPRIETARY - - PowerPoint PPT Presentation

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Q2 2019 and 1H 2019 Opportunity Day 4 th September 2019 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Big C Supercenter PCL is strictly prohibited Disclaimer The following presentation may contain forward

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

Q2 2019 and 1H 2019 Opportunity Day

4th September 2019

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Confidential

Disclaimer

2

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

  • bjectives. 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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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

  • f 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.

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Confidential

Agenda

3

▪ Financial Highlights ▪ Overall Performance ▪ Financial Performance and Operational Update by

Supply Chain

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Confidential

Q2 2019 Consolidated Financial Highlights

4

FINANCIAL HIGHLIGHTS

THB 40,435M

Sales up by +3.6%

  • Solid CSC and MSC performance
  • PSC sales returned back to growth
  • H&TSC continued benefitting from the consolidation of WG

19.9%

Gross Profit Margin up by +120bps

  • Improving margins at CSC and MSC
  • MSC GP% increase driven by stock management focus and

lower B2B sales contribution

21.2%

SG&A-to-Sales up by +62bps

  • SG&A expenses increase was driven by MSC
  • However YoY SG&A growth slowed down slightly from Q1 2019

THB 3,430M

Recurring Operating Profit¹ up by +6.6%

  • Solid growth at CSC, H&TSC, and MSC
  • PSC impacted by lower Aluminum Can margin

THB 1,765M

Recurring Net Profit¹ up by +26.4%

  • Lower effective tax rate due to completed corporate

restructuring and tax benefits from PSC

Note: 1 Excluding THB 306 million (THB 237 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Confidential

Agenda

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▪ Financial Highlights ▪ Overall Performance ▪ Financial Performance and Operational Update by

Supply Chain

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Confidential

Overall Performance

6

OVERALL PERFORMANCE

Sales Gross Profit 125,330 149,158 156,142 39,024 40,435

2016 2017 2018 Q2 2018 Q2 2019

(THB mm) (THB mm)

22,595 28,452 29,969 7,317 8,067

2016 2017 2018 Q2 2018 Q2 2019

18.8% 19.6% 76,093 78,824

1H 2018 1H 2019

14,331 15,487

1H 2018 1H 2019

18.0% 19.1% 19.2% 18.8% 19.9%

GP margin

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Confidential

Overall Performance

7

OVERALL PERFORMANCE

SG&A Recurring EBIT

(THB mm) (THB mm)

24,324 30,686 32,263 8,030 8,571

2016 2017 2018 Q2 2018 Q2 2019

19.4% 20.6% 20.7% 20.6% 21.2%

SG&A to Sales

15,627 16,789

1H 2018 1H 2019

9,899 12,608 13,459 3,216 3,430

2016 2017 2018 Q2 2018 Q2 2019

6,384 6,566

1H 2018 1H 2019

7.9% 8.5% 8.6% 8.2% 8.5%

EBIT margin

8.4% 8.3% 20.5% 21.3%

Note: Excluding (1) THB 306 million (THB 237 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19 (2) Gain on disposal of investment in subsidiary amount THB 191 MN (after tax) in Q1 2018

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Overall Performance

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OVERALL PERFORMANCE

Net Profit

(THB mm)

4,001 5,211 6,650 1,396 1,528 3,180 5,056 6,459 1,396 1,765

2016 2017 2018 Q2 2018 Q2 2019

Net Profit

  • Norm. Net Profit

2.5% 3.4% 4.1% 3.6% 4.4%

  • Norm. Net Profit margin

2,841 3,032 2,650 3,269

1H 2018 1H 2019

3.5% 4.1%

PSC 12% CSC 12% H&TSC 5% MSC 71% PSC 14% CSC 13% H&TSC 8% MSC 65%

Sales Gross Profit SG&A Net Profit

PSC 4% CSC 8% H&TSC 5% MSC 83% PSC 19% CSC 12% H&TSC 7% MSC 62%

Q2 2019 Performance Breakdown

Note: Excluding (1) THB 306 million (THB 237 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19 (2) Gain on disposal of investment in subsidiary amount THB 191 MN (after tax) in Q1 2018

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Q2 2019 vs. Q2 2018 – Supply Chain Contribution (Recurring)

9

Note: (1) PSC - Packaging Supply Chain (2) CSC - Consumer Supply Chain (3) H&TSC- Health Care and Technical Supply Chain (4) MSC- Modern Retail Supply Chain

  • PSC’s sales increased +2.2% driven by growth from both glass

and aluminum packaging businesses.

  • CSC’s sales increase was driven by solid sales performance

from all segments.

  • H&TSC’s sales increase was driven by a consolidation of White

Group sales in Technical supply chains.

  • MSC‘s sales increase was driven by new store openings (4

Hyper, 1 FoodPlace, 144 MBC, 4 Pure net openings since Q2 2018) and increasing rental income due to added rental space, rental escalation, and increasing other income, whilst same- store-sales growth slowed down to -0.3% year-on-year for the quarter (excluding B2B sales same-store-sales growth for the quarter was +0.4%). Sales performance across supply chain

PSC1 CSC2 H&TSC3 Others MSC4

Q2 2018 Q2 2019 1,396 1,396 1,422 1,485 1,504 1,578 1,765 26 63 19 74 187

(THB mm)

Normalized net profit performance across supply chain

PSC1 CSC2 H&TSC3 Others MSC4

Q2 2018 Q2 2019

  • PSC’s net profit increased due to lower effective tax rate due to

a BOI tax benefits from the new Saraburi 5 furnace and from continued instalment of additional solar rooftop during the quarter.

  • CSC’s net profit increase came from higher sales from all

segments, lower raw material prices (palm oil, and crude coconut oil), and a profitability improvement.

  • H&TSC’s net profit increase was driven by a consolidation of

White Group sales, and effective cost control.

  • MSC’s net profit increased mainly due to an improved

profitability in most of the categories due to a good summer and back-to-school related sales, good stock management, and lower B2B sales.

(THB mm)

OVERALL PERFORMANCE

39,024 39,024 39,133 39,535 39,617 40,435 40,435 109 402 82 980 (162)

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1H 2019 vs. 1H 2018 – Supply Chain Contribution (Recurring)

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Note: (1) PSC - Packaging Supply Chain (2) CSC - Consumer Supply Chain (3) H&TSC- Health Care and Technical Supply Chain (4) MSC- Modern Retail Supply Chain

  • PSC’s sales decreased -3.1% due to lower sales in aluminum

can packaging business during Q1 2019.

  • CSC’s sales increase +7.8% driven by solid sales performance

from all segments.

  • H&TSC’s sales increase +7.4% driven by a consolidation of

White Group sales in Technical supply chains.

  • MSC‘s sales increase +4.4% driven by same-store-sales growth
  • f +0.4% (+1.1% excluding B2B) for 1H2019, new store
  • penings (4 Hyper,1 FoodPlace, 144 MBC, 4 Pure net openings

since Q2 2018) and increasing rental income due to added rental space, rental escalation, and increasing other income. Sales performance across supply chain

PSC1 CSC2 H&TSC3 Others MSC4

1H 2018 1H 2019 2,650 2,650 2,696 2,802 2,880 2,922 3,269 46 106 78 42 347

(THB mm)

Normalized net profit performance across supply chain

PSC1 CSC2 H&TSC3 Others MSC4

1H 2018 1H 2019

  • PSC’s net profit increased +4.7% due to lower effective tax rate

from a BOI tax benefits from the new Saraburi 5 furnace and from instalment of additional solar rooftop during the 1H2019.

  • CSC’s net profit increase +21.7% came from higher sales from

all segments, lower raw material prices, and a profitability improvement.

  • H&TSC’s net profit increase +23.8% driven by a consolidation of

White Group sales, and effective cost control.

  • MSC’s net profit increased +1.4% mainly due to an improved

profitability, good stock management, and lower B2B sales.

(THB mm)

OVERALL PERFORMANCE

76,093 75,776 75,776 76,462 76,742 78,824 78,824 (317) 686 280 2,377 (295)

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Confidential

Agenda

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▪ Financial Highlights ▪ Overall Performance ▪ Financial Performance and Operational Update by

Supply Chain

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Packaging Supply Chain (PSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

18,948 19,447 21,093 4,880 4,989

2016 2017 2018 Q2 2018 Q2 2019

Sales and GP Margin SG&A and SG&A to Sales¹

20.7% 22.3% 22.0% 22.2% 21.1%

GP margin

1,281 1,242 1,389 311 311

2016 2017 2018 Q2 2018 Q2 2019

6.8% 6.4% 6.6% 6.4% 6.2%

SG&A to Sales

0.0% 10,202 9,885

1H 2018 1H 2019

694 690

1H 2018 1H 2019

23.0% 21.9% 6.8% 7.0%

Note: 1 Excluding THB 84 million (THB 60 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Packaging Supply Chain (PSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

2,778 3,120 3,331 846 785

2016 2017 2018 Q2 2018 Q2 2019

Recurring EBIT and EBIT Margin¹ Recurring NPAT and NPAT Margin¹

14.7% 16.0% 15.8% 17.3% 15.7%

EBIT margin

2,101 2,105 2,081 459 485

2016 2017 2018 Q2 2018 Q2 2019

11.1% 10.8% 9.9% 9.4% 9.7%

NPAT margin

1,689 1,521

1H 2018 1H 2019

975 1,021

1H 2018 1H 2019

16.6% 15.4% 9.6% 10.3%

Note: 1 Excluding THB 84 million (THB 60 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Packaging Supply Chain (PSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN Q2 2019 Sales Breakdown Q2 2019 SG&A Breakdown

Glass 56% Aluminum Can 44% Selling exp. 32% Personnel exp. 23% D&A 4% Other exp. 41%

Q2 2019 Financial Highlights

Sales increased by +2.2%

  • Driven by both glass and aluminum

packaging businesses. GP Margin declined by -114 bps

  • Driven by aluminum can business due to

lower economies of scale per can size and geographical sales mix.

Note: 1 Excluding THB 84 million (THB 60 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

Recurring NPAT¹ increased by +5.7%

  • Driven by glass packaging business due to

increased sales, improved profitability, and lower effective tax rate.

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Packaging Supply Chain (PSC) – Operational Update

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Glass Packaging

  • Solar rooftop:
  • The 1 MW solar rooftop at TMG has been operated for 8

months and is estimated to save c.5.6% of electricity cost for this year.

  • The 3 MW solar rooftop at TGI has been working for

installation and will be ready in Nov 2019. Expected savings of c.3.4% of electricity cost for this year.

  • Automation projects:
  • Completed ‘X-Par system’ testing 6 machines. Waiting BOI

approved for additional installation 6 machines at TGI in Sep

  • 2019. This project will reduce defective products in production

process and improving efficiency c.1%. Estimated cost saving in Q2 c.6 MB.

  • ‘Auto Swabbing Lubrication’ (ABL) has finished for testing 1

section at machine SB41 in August and have to install for all

  • sections. This project plan to install at 8 forming machines at

TGI and TMG by 2019-2020.

  • ‘Auto Challenge’ bottle sampling have been preparing to

install at SB4 and SB5 (36 loops) and will continually expand to all inspection machine lines at TGI and TMG. This system will automatically check the sample bottles without the need for

  • perator to work.

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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Consumer Supply Chain (CSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

16,340 16,966 17,694 4,332 4,734

2016 2017 2018 Q2 2018 Q2 2019

Sales and GP Margin SG&A and SG&A to Sales¹

2,467 2,637 2,600 585 626

2016 2017 2018 Q2 2018 Q2 2019

15.1% 15.5% 14.7% 13.5% 13.2%

SG&A to Sales

17.2% 19.0% 20.6% 20.2% 21.6%

GP margin

8,775 9,461

1H 2018 1H 2019

1,231 1,325

1H 2018 1H 2019

20.7% 21.7% 14.0% 14.0%

Note: 1 Excluding THB 50 million (THB 40 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Consumer Supply Chain (CSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

614 994 1,286 348 417

2016 2017 2018 Q2 2018 Q2 2019

Recurring EBIT and EBIT Margin¹ Recurring NPAT and NPAT Margin¹

3.8% 5.9% 7.3% 8.0% 8.8%

EBIT margin

383 727 920 251 314

2016 2017 2018 Q2 2018 Q2 2019

2.3% 4.3% 5.2% 5.8% 6.6%

NPAT margin

674 795

1H 2018 1H 2019

489 595

1H 2018 1H 2019

7.7% 8.4% 5.6% 6.3%

Note: 1 Excluding THB 50 million (THB 40 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Consumer Supply Chain (CSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN Q2 2019 Sales Breakdown Q2 2019 SG&A Breakdown Q2 2019 Financial Highlights

Food 29% Non-Foods 35% International 27% Logistic 9% Selling exp. 15% A&P exp. 25% Personnel exp. 35% D&A 2% Other exp. 23%

Note: 1 Excluding THB 50 million (THB 40 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19.

Sales increased by +9.3%

  • Driven by increased sales in all business

segments. GP Margin increased by +131bps

  • Driven by lower raw material prices of palm
  • il, and crude coconut oil.

Recurring NPAT¹ increased by +25.1%

  • Driven by food, non-food, and logistic

businesses due to increased sales, and improved profitability.

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Consumer Supply Chain (CSC) – Operational Update

19

  • Successful marketing and sales support via a thematic TVC and

new products launched leading to strong growth and increasing market share especially Tasto and Kato.

  • Tasto Potato Chips: better brand share and penetration and further

drive on brand proposition of ‘Sense of challenges make life fun’.

  • New campaign during Q2 – Tasto Regional Flavours (Tasto ถึงรส

ถึงภาค).

  • The fully promotion support also helps to drive Tasto a double

digit market share of 11.5% in Q2 2019 (vs.10% in Q2 2018).

  • Party Extruded: thematic TVC in Q2 2019 help to drive a strong brand

momentum under brand proposition of ‘Sweet complete everything’.

  • Dozo rice cracker: maintained dominant rice cracker market position

with c.84.5% market share in June 2019.

  • Kato: market leader in fruit juice with c.22% market share in Eco &

Super Eco Fruit Juice Segment.

  • Strong growth due to summer season and back to school period

with existing and NPD seasonal Kato Mystery Emoji helped driving brand momentum and created brand excitement on proposition of refreshing fun chewing juice.

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

Food

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Consumer Supply Chain (CSC) – Operational Update

  • Parrot:
  • Parrot Botanicals Bar soap continues to be #1 Best selling bar soap with

c.52% market share.

  • Introduced Parrot Oil In Bath in May to premiumise our portfolio.
  • Parrot Botanicals Thanaka Bar (launched in Jan 2019) delivered +17% growth

vs market growth of +4% during Q2 2019.

  • Parrot Hyaluron Micellar (using ‘Mew Nitha’ as brand ambassador) delivered

strong growth of +58% in Q2 2019.

  • Parrot Herbal with Organic Whitening (using ‘Janie’ as brand ambassador)

delivered +6% growth in Q2 2019.

  • DMP (Dermapon):
  • Ranked up to No.2 in baby liquid soap brand in Super/Hyper Channel with

highest growth of +30% growth vs Market Growth +12%.

  • Cellox:
  • Launch Organic Anti-bacterial Wet Wipe only on April 2019.
  • Full Communication Campaign of Cellox Facial Flower Box & Soft Pack (TV

Commercial Spot, TV Tie-in Program, Online Campaign and Engagement Activity, Out-of-home media) with growth +59% (normal SKUs).

  • Zilk:
  • Successful performance of Zilk Soft Pack with the highest growth in the Q2

2019 with +61% vs the industry average of +38%.

  • Success for Zilk Lucky Draw Campaign 2019 with new high market share in

June 2019 (facial market share 13.2% and Toilet market share 20.7%).

20

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

Non - Food

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Healthcare & Technical Supply Chain (H&TSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

7,406 8,141 8,422 1,997 2,079

2016 2017 2018 Q2 2018 Q2 2019

Sales and GP Margin SG&A and SG&A to Sales¹

31.8% 30.8% 32.2% 31.9% 31.0%

GP margin

1,703 1,681 1,683 437 453

2016 2017 2018 Q2 2018 Q2 2019

23.0% 20.6% 20.0% 21.9% 21.8%

SG&A to Sales

3,797 4,077

1H 2018 1H 2019

820 858

1H 2018 1H 2019

31.6% 31.5% 21.6% 21.0%

Note: 1 Excluding THB 20 million (THB 16 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Healthcare & Technical Supply Chain (H&TSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

698 900 1,109 209 240

2016 2017 2018 Q2 2018 Q2 2019

Recurring EBIT and EBIT Margin¹ Recurring NPAT and NPAT Margin¹

9.4% 11.1% 13.2% 10.5% 11.6%

EBIT margin

523 752 872 166 185

2016 2017 2018 Q2 2018 Q2 2019

7.1% 9.2% 10.4% 8.3% 8.9%

NPAT margin

417 529

1H 2018 1H 2019

331 409

1H 2018 1H 2019

11.0% 13.0% 8.7% 10.0%

Note: 1 Excluding THB 20 million (THB 16 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Healthcare & Technical Supply Chain (H&TSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN Q2 2019 Sales Breakdown Q2 2019 SG&A Breakdown Q2 2019 Financial Highlights

HSC 52% TSC 48% Selling exp. 19% A&P exp. 12% Personnel exp. 34% D&A 3% Other exp. 32%

Sales increased by +4.1%

  • Driven by Technical supply chain due to a

consolidation of White Group sales. GP Margin decreased by -96bps

  • Driven by lower gross profit margin at

Specialty Division and at Thai Scandic Steel due to higher raw material prices. Recurring NPAT¹ increased by +11.8%

  • Driven by higher sales and good SG&A cost

control leading to improved operating profit.

Note: 1 Excluding THB 20 million (THB 16 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19.

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Modern Retail Supply Chain (MSC) – Performance

24

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

81,393 103,962 109,847 28,010 28,990

2016 2017 2018 Q2 2018 Q2 2019

Sales and GP Margin SG&A and SG&A to Sales¹

15.3% 16.7% 16.5% 16.1% 17.4%

GP margin

17,232 23,918 25,444 6,385 6,901

2016 2017 2018 Q2 2018 Q2 2019

21.2% 23.0% 23.2% 22.8% 23.8%

SG&A to Sales

53,660 56,037

1H 2018 1H 2019

12,323 13,397

1H 2018 1H 2019

16.0% 16.9% 23.0% 23.9%

Note: 1 Excluding THB 127 million (THB 102 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Modern Retail Supply Chain (MSC) – Performance

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FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

5,803 7,643 7,843 1,917 2,071

2016 2017 2018 Q2 2018 Q2 2019

EBIT and EBIT Margin¹ NPAT and NPAT Margin¹

7.1% 7.4% 7.1% 6.8% 7.1%

EBIT margin

3,934 5,851 6,365 1,520 1,594

2016 2017 2018 Q2 2018 Q2 2019

4.8% 5.6% 5.8% 5.4% 5.5%

NPAT margin

3,687 3,793

1H 2018 1H 2019

2,910 2,952

1H 2018 1H 2019

6.9% 6.8% 5.4% 5.3%

Note: 1 Excluding THB 127 million (THB 102 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

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Modern Retail Supply Chain (MSC) – Performance

26

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN Q2 2019 Sales Breakdown Q2 2019 SG&A Breakdown Q2 2019 Financial Highlights

Hypermarket 75% Market 5% Pure 1% B2B 6% Online 1% MBC 12% Selling exp. 9% Personnel exp. 29% D&A 18% Other exp. 29% Utility exp. 15%

Note: 1 Excluding THB 127 million (THB 102 million after tax and minority interest) expenses relating to amendment of the post-employment benefit plans in 2Q19

Sales increased by +3.5%

  • Driven by new store openings since 2Q18,

as same-store-sales growth slowed down to

  • 0.3% year-on-year for the quarter

(excluding B2B sales same-store-sales growth for the quarter was +0.4%). GP Margin increased by +136bps

  • Driven by an improved profitability in most
  • f the categories due to a good summer

and back-to-school related sales, good stock management (lower stock level and lower damage and shrinkage). Our B2B sales contribution was also lower when compared to same period last year. Recurring NPAT¹ increased by +4.9%

  • Driven by higher sales and improved

profitability.

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MSC – SSSG and Margin Trend

27 Big C’s total sales like-for-like performance and recurring gross profit margin percentage

Same-Store Sales Growth (SSSG and SSSG ex. B2B) and GP margin

  • 20.0%
  • 15.2%

9.2% 3.8% 0.3%

  • 0.5%

2.5% 1.8% 1.0%

  • 0.3%
  • 1.2%

1.3% 1.9%

  • 1.6%
  • 2.1%
  • 1.9%

1.3% 1.6% 1.8% 0.4% 16.1% 15.6% 17.7% 17.3% 15.9% 16.1% 16.8% 17.2% 16.3% 17.4% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

SSSG SSSG (ex B2B) Recurring GP Margin

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN SSSG growth slowed down during the Q2 2019, whilst Gross Margin increased

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Confidential

9.0 11.0 11.0 12.0 15.1 16.9 17.9 18.5 19.4 20.3

MSC – Big Card

28

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

58% 58% 61% 61% 60% 64% 68% 68% 68% 69%

Card Penetration (%)

Big Card No. and Penetration

(Unit: million)

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MSC – Rental and Other Income

29

Retail and Rental Area Q2 2019¹

  • Delivered solid rental income growth for the

quarter with +3.1%.

  • Occupancy remained relatively steady at

95.5% for the quarter.

Note: 1 As of June 2019, including Hypermarket, Big C Market, Mini Big C (excluding Franchise stores), and Pure Drugstores

Rental Income

(THB Million)

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

10,099 10,671 11,302 2,856 2,946

2016 2017 2018 Q2 2018 Q2 2019 Retail 56% Rental 44% 1,183,433 sq.m. 943,816 sq.m.

Other Income Q2 2019 Progress

3,670 3,517 3,853 929 950

2016 2017 2018 Q2 2018 Q2 2019

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Confidential

MSC – Expansion Update

30

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

  • Hypermarket: 3+1 (Thailand + International)
  • Market: 1 store (Big C Food Place)
  • Mini Big C: c.300 stores
  • Opened 63 Mini Big C (all own stores), and

closed down 25 Mini Big C stores (including 8 franchise stores). Targets for FY 2019 Progress during Q2 2019

  • No. of Stores

131 140 147 143 147 59 60 61 60 61 465 642 783 691 835 142 135 140 136 140

2016 2017 2018 Q2 2018 Q2 2019

Hypermarket Market MBC Pure 797 977 1,131 1,183 1,030

Ticket No. and Basket Size

845 1,030 1,183

Q2 2017 Q2 2018 Q2 2019

399 379 349 939 831 819

Total No. of Stores

294 308 319

  • Avg. Basket Size (Baht)
  • Avg. Ticket/Store/Day
  • Avg. Total sales/Day (MB)
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MSC – Category Developments

3 1

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN New Private Label Launch

  • Launched new private label during the quarter:

Maxa

  • Launched new household category White label ‘Maxa’ brand in

June 2019.

  • Currently 7 SKU’s with new SKUs scheduled to be launched during

2H 2019. Ka-La

  • Launched new HB&A category White label ‘Ka-La’ brand in June

2019.

  • Currently 19 SKU’s with new SKUs scheduled to be launched

during 2H 2019

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SLIDE 32

Confidential

MSC – Format Developments

32

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

  • Completed

first Big C Market to Foodplace conversion: Big C Market Sukhapibal 5

  • One of the highest selling Big C Market

stores, opened since May 2010.

  • Location suitable for Big C Foodplace

concept targeting medium-to-high- income customer segment.

  • Store size maintained at c.1,800 sqm

with main chances:

  • Add

Wok-in (Dine in counter), Organic and Healthy corner, and upscale HBA area.

  • Relocate

and reflow Hardline, Homeline and Softline areas.

  • Significantly extending rental area from

c.2,300 sqm to c.5,200 sqm by moving car parking area to adjacent land plot.

Foodplace Conversion

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SLIDE 33

Confidential

Big C Foodplace Concept Applied to Big C Market Sukhapibal 5

33

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

MSC – Format Developments (cont.)

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SLIDE 34

Confidential

Community Focus Update

34

  • Education Promotion
  • The Company has provided employees’ kids with tuition fund to lighten

parents’ burdens and promote their education.

  • The Foundation donated money to support the ‘Library for Kids’

Project of ASIA BOOKS for the purpose of encouraging reading and reading activities for students in underprivileged schools.

  • Well-being, Quality of life and Social Support
  • The Foundation donated money to support Friend in Need (of “PA”)

Volunteers Foundation.

  • The Company organized the ‘SME@Heart’ Project to provide SME

groups with business guide and trading with Big C.

  • The Foundation donated products to support the children heart

disease examination organized by the Cardiac Children Foundation of Thailand and Big C staff helped support its activity.

  • Big C Stores cooperated with government units within their areas to
  • rganize activities to enhance

community’s well-being, quality of life and relations.

  • Religion, Tradition and Culture Conservation
  • The Company provided Muslim communities with Islamic calendars in
  • rder to enhance community relations.
  • Environment
  • The

Company and its subsidiaries

  • rganized

“No plastic bag” campaign and organized training ‘how to separate waste properly’ in

  • rder to promote environmental conservation.

FINANCIAL PERFORMANCE AND OPERATIONAL UPDATE BY SUPPLY CHAIN

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SLIDE 35

Confidential

Q&A

35

Berli Jucker Public Company Limited Berli Jucker House 99 Soi Rubia, Sukhumvit 42 Road, Phrakanong, Klongtoey, Bangkok 10110, THAILAND Website: www.bjc.co.th IR contacts Investor Relations Department E-mail: IR@bjc.co.th Website: www.bjc.co.th/en/investor-relations/investor-relations.php

  • 1. Rami Piirainen

Ramip@bjc.co.th +66 2 367 1047

  • 2. Rawipa Boonyu

RawipaB@bjc.co.th +66 2 367 1913

For more information

Thank You