Q2 2017 Opportunity Day 15 September 2017 CONFIDENTIAL AND - - PowerPoint PPT Presentation

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

Q2 2017 Opportunity Day

15 September 2017

Confidential

Disclaimer

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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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

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▪ Highlights ▪ Overall Performance ▪ Performance by Supply Chain ▪ Operations Update

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2Q and 1H 2017 Highlights

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Financial performance

• Delivered a solid second quarter results.
• Strong Consumer supply chain, and Healthcare and Technical supply chain

performance.

• Solid margin improvements across supply chains.
• Continued resilient rental income growth, and improving SSSG trend at Modern

Retail supply chain. Operations

• Consumer Supply Chain: Food and Non-Food Delivering strong performance after

various successful product launches during the first quarter of the year.

• Modern Retail Supply Chain:
• Improving SSSG trend, turning positive in July 2017.
• Continued improvements in Fresh Food and Home Line categories.
• Hypermarket and Mini Big C expansion plan on track to reach FY2017.
• Synergy target for FY2017 confirmed.

HIGHLIGHTS

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Agenda

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▪ Highlights ▪ Overall Performance ▪ Performance by Supply Chain ▪ Operations Update

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Overall Performance Q2 and H1 2017

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OVERALL PERFORMANCE

• On May 11st, 2016, BJC completed an acquisition of 97.94% shares in BIGC, 99.18% shares in C-Distribution

Asia Pte Ltd. and 98.80% shares in C-Distribution (Thailand) Company Limited

• Results of these companies has been consolidated into BJC since March 21st, 2016

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161 996 420 996

Q2 2016 Q2 2017

Net profit Normalized net profit

40,487 37,107

Q2 2016 Q2 2017

55,204 72,784

H1 2016 H1 2017

Q2 2017 Net Profit (MB) Q2 2017 Sales (MB) Q2 2017 Highlights H1 2017 Sales (MB)

31.8% YoY

H1 2017 Net Profit (MB) 663 1,961 922 1,961

H1 2016 H1 2017

H1 2017 Highlights

8.3% YoY 195.7% YoY Net profit 112.7% YoY

• Norm. Net profit
• Norm. Net profit

Net profit 519.6% YoY 137.3% YoY

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• Q2 2017 Net Profit of THB 996 million, an increase of THB 835 million or 519.6% YoY
• PSC’s net profit decreased by THB 47 MN driven by lower sales

in glass business and lower net profit from MGP and MVG.

• CSC’s net profit increased THB 56 MN. Net profit increase

came from both Food and Non-Food businesses due to higher sales and lower raw material costs.

• H&TSC’s net profit increased THB 43 MN due to higher sales

from both pharmaceutical and galvanized steel structure businesses as well as the lower SG&A expenses.

• MSC’s net profit decreased by THB 219 MN due to lower Other

Income and increased SG&A expenses.

THB MN

Q2 2017 vs. Q2 2016 – Supply Chain performance

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OVERALL PERFORMANCE

161 996 (47) 56 43 (219) 1,002 PSC CSC H&TSC Others MSC 40,487 37,107 62 (14) 50 (3,467) (11)

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• Q2 2017 Sales of THB 37,107 million, a decrease of THB 3,380 million or 8.3% YoY
• PSC’s sales improved by THB 62 MN due to higher sales in

aluminum can business especially from the energy drink segment.

• CSC’s sales decreased by THB 14 MN. While Food and Non-

Food sales grew strongly, it was offset by lower sales in international business.

• H&TSC’s sales increased by THB 50 MN due to higher sales

from pharmaceutical business from haemato products and galvanized steel structure business.

• MSC‘s sales decreased by THB 3,467 MN due to strategic

decision to discontinue unprofitable sales practices.

Q2 2016 Q2 2017

THB MN

• 8.3% YoY

+519.6% YoY PSC CSC H&TSC Others MSC

PSC: Packaging Supply Chain, CSC: Consumer Supply Chain, H&TSC: Health Care and Technical Supply Chain, MSC: Modern Retail Supply Chain

Q2 2016 Q2 2017

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• PSC’s net profit decreased by THB 72 MN due to lower sales

in glass business and lower net profit from MGP and MVG.

• CSC’s net profit increased THB 46 MN, driven by higher

sales and lower raw material costs in Food and Non-Food businesses.

• H&TSC’s net profit increased THB 111 MN due to higher

sales from both H&TSC businesses as well lower SG&A expenses.

• MSC’s net profit increased THB 963 MN due to full

consolidation of Big C’s results into BJC’s financial statements.

H1 2017 vs. H1 2016 – Supply Chain performance

OVERALL PERFORMANCE

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55,204 72,784 7 101 248 17,514 (290) 663 591 591 637 748 1,711 1,961 (72) 46 111 963 250 PSC CSC H&TSC Others MSC

• H1 2017 Net Profit was THB 1,961 million, an increase of THB 1,298 million or 195.7% YoY

THB MN THB MN

PSC CSC H&TSC Others MSC

• H1 2017 Sales were THB 72,784 million, an increase of THB 17,580 million or 31.8% YoY

PSC: Packaging Supply Chain, CSC: Consumer Supply Chain, H&TSC: Health Care and Technical Supply Chain, MSC: Modern Retail Supply Chain

H1 2017 H1 2016 H1 2016 H1 2017

+31.8% YoY +195.7% YoY

• PSC’s sales increased slightly by THB 7 MN due to higher sales

in aluminum can business especially from the energy drink segment.

• CSC’s sales increased by THB 101 MN from all businesses.
• H&TSC’s sales increased by THB 248 MN due to higher sales

from both H&TSC businesses.

• MSC‘s sales increased by THB 17,514 MN due to full

consolidation of Big C’s results into BJC’s financial statements.

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Performance breakdown

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OVERALL PERFORMANCE

Q2 2017 H1 2017

Sales Breakdown Sales Breakdown Net Profit Breakdown Net Profit Breakdown

PSC 14% CSC 11% H & TSC 6% Others 1% MSC 68% PSC 13% CSC 11% H & TSC 5%Others 1% MSC 70% PSC 24% CSC 6% H & TSC 7% MSC 64% PSC 23% CSC 6% H & TSC 7% MSC 63%

PSC: Packaging Supply Chain, CSC: Consumer Supply Chain, H&TSC: Health Care and Technical Supply Chain, MSC: Modern Retail Supply Chain

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122,000 150,719 (2,824) 2,342 95 28,142

BJC Q1 2017 Net Debt BJC Q1 2017 Net Debt Decrease in long term loan Increase in short term loan Increase in cash BJC Q2 2017 Net Debt Net Interest Baring Debt to

Shareholders’ Equity

Financing Structure – Net Debt and Deleveraging Components

THB MM

• BJC completed 97.94% Big C acquisition on 11th May 2016
• BJC Q2 2017 Net Interest Bearing Debt to Equity of 1.3X

1.3x 1.3x

Capital structure

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OVERALL PERFORMANCE

150,142

BJC & Big C remaining debt Debenture

On 22nd of August, TRIS maintained BJC’s A+ Stable credit rating

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Agenda

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▪ Highlights ▪ Overall Performance ▪ Performance by Supply Chain ▪ Operations Update

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• H1 2017 sales increased by +0.1% YoY, and our

gross profit margin increased by +129 basis points driven by aluminum can business.

• Our EBIT increased by +9.3% YoY, and EBIT

margin increased by +127 bps due lower COGS in aluminum can business.

• Our net profit decreased by -7.0% YoY, and net

profit margin decreased by -78 bps due to lower sales in glass business and lower net profit from MGP and MVG.

Packaging Supply Chain – Q2 and H1 2017

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PERFORMANCE BY SUPPLY CHAIN

GP% 114bps Sales 1.4% NP% 120 bps NP 8.8% EBIT% 162 bps EBIT 12.1% 690 773 1,272 1,391 15.4% 17.0% 13.7% 15.0% Q2 2016 Q2 2017 H1 2016 H1 2017

• Q2 2017 sales reached THB 4,551 MN, up +1.4% YoY due

to higher sales in aluminum can business especially from the energy drink segment.

• Our gross profit margin increased by +114 basis points YoY, reaching 22.4% for the
• quarter. This increase was driven by higher sales and lower COGS in aluminum can

business.

• Our EBIT reached THB 773 MN, up +12.1% YoY, and our EBIT margin increased by

+162 bps YoY, reaching 17.0% for the quarter.

• Our net profit reached THB 490 MN, down -8.8% YoY, and our net profit margin

decreased by -120 bps YoY, reaching 10.8% for the quarter. This decreased was due to lower sales in glass business and lower net profit from MGP and MVG.

Sales and Gross Profit Margin EBIT and EBIT Margin Net Profit and Net Profit Margin

EBIT% 127 bps EBIT 9.3% NP% 78 bps NP 7.0%

Q2 2017 Highlights

GP% 129 bps Sales 0.1% 537 490 1,016 944 12.0% 10.8% 11.0% 10.2% Q2 2016 Q2 2017 H1 2016 H1 2017 4,489 4,551 9,253 9,260 21.3% 22.4% 20.1% 21.4% Q2 2016 Q2 2017 H1 2016 H1 2017

H1 2017 Highlights

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• H1 2017 sales increased by +1.2% YoY, and our

gross profit margin increased by +174 bps, driven by higher sales and decreased in some raw material costs such as softwood and hardwood.

• Our EBIT increased by +12.2% YoY, and EBIT

margin increased by +44 bps.

• Our net profit increased by +22.1% YoY, and net

profit margin increased by +53 bps due to abovementioned reasons.

Consumer Supply Chain – Q2 and H1 2017

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PERFORMANCE BY SUPPLY CHAIN

NP% 53 bps NP 22.1%

EBIT and EBIT Margin Net Profit and Net Profit Margin

EBIT% 172 bps EBIT 61.2% EBIT% 44 bps EBIT 12.2% NP% 139 bps NP 86.1% 113 181 334 375 2.8% 4.5% 4.1% 4.5% Q2 2016 Q2 2017 H1 2016 H1 2017 65 120 208 254 1.6% 3.0% 2.5% 3.1% Q2 2016 Q2 2017 H1 2016 H1 2017

• Q2 2017 sales reached THB 4,020 MN, down -0.3% YoY, mainly driven by lower

sales in international sales business.

• Our gross profit margin increased by +353 bps YoY, reaching 19.3% for the
• quarter. This increase was mainly driven by lower raw material costs from

hardwood, softwood, crude palm oil and crude coconut oil.

• Our EBIT reached THB 181 MN, up +61.2% YoY, and our EBIT margin increased

by +172 bps YoY, reaching 4.5% for the quarter.

• Our net profit reached THB 120 MN, up +86.1% YoY, and our net profit margin

increased by +139 bps YoY, reaching 3.0% for the quarter, due to abovementioned reasons.

GP% 174 bps Sales 1.2% 4,034 4,020 8,162 8,263 15.8% 19.3% 16.9% 18.6% Q2 2016 Q2 2017 H1 2016 H1 2017

Sales and Gross Profit Margin

GP% 353 bps Sales 0.3%

Q2 2017 Highlights H1 2017 Highlights

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• H1 2017 sales increased by +7.4% YoY, and our

gross profit margin increased by +32 bps.

• Our EBIT increased by +37.2% YoY, and EBIT

margin increased by +226 bps driven by higher sales and lower SG&A-to-sales ratio from both H&TSC businesses

• Our net profit increased by +56.5% YoY, and

net profit margin increased by +266 bps due to higher sales, together with an improvement in gross profit margin from both H&TSC businesses.

Healthcare & Technical Supply Chain – Q2 and H1 2017

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PERFORMANCE BY SUPPLY CHAIN

97 139 194 304 6.1% 8.5% 5.8% 8.5% Q2 2016 Q2 2017 H1 2016 H1 2017 127 169 272 373 8.0% 10.3% 8.1% 10.4% Q2 2016 Q2 2017 H1 2016 H1 2017 1,594 1,644 3,338 3,586 31.4% 33.3% 31.6% 32.0% Q2 2016 Q2 2017 H1 2016 H1 2017 EBIT% 233 bps EBIT 33.2% NP% 238 bps NP 43.3% GP% 32 bps Sales 7.4%

Sales and Gross Profit Margin EBIT and EBIT Margin Net Profit and Net Profit Margin

EBIT% 226 bps EBIT 37.2%

• Q2 2017 sales reached THB 1,644 MN, increase of +3.1% YoY, due to higher

sales from pharmaceutical business from haemato products and galvanized steel structure business.

• Our gross profit margin increased by +188 bps YoY, reaching 33.3% for the

quarter driven by gross profit margin improvement from both H&TSC businesses.

• Our EBIT reached THB 169 MN, up +33.2% YoY, and our EBIT margin increased

by +233 bps YoY, reaching 10.3% for the quarter.

• Our net profit reached THB 139 MN, increase of +43.3% YoY, and our net profit

margin increased by +238 basis points YoY, reaching 8.5% for the quarter.

NP% 266 bps NP 56.5% GP% 188 bps Sales 3.1%

Q2 2017 Highlights H1 2017 Highlights

Confidential

• H1 2017 sales decreased by -14.0% YoY, whilst
• ur gross profit margin increased by +205bps,

this was driven by strategic sift of focus to quality of sales.

• Our EBIT decreased by -14.0% YoY, and EBIT

margin reached 8.0%, stable from previous year.

• Our recurring net profit decreased by -11.7%

YoY, while recurring net profit margin increased by 16 bps, due to lower sales, and lower other income and increased SG&A expenses.

Big C Supercenter – Q2 and H1 2017 (Standalone)

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PERFORMANCE BY SUPPLY CHAIN

EBIT% 115 bps EBIT 22.7% 2,749 2,126 4,763 4,097 9.1% 8.0% 8.0% 8.0% Q2 2016 Q2 2017 H1 2016 H1 2017

Sales and Gross Profit Margin EBIT and EBIT Margin Recurring Net Profit and Net Profit Margin¹

NP% 93 bps NP 23.2%

30,187 26,720 59,613 51,281

14.4% 15.6% 13.8% 15.9% Q2 2016 Q2 2017 H1 2016 H1 2017 GP% 205 bps Sales 14.0% GP% 123 bps Sales 11.5% EBIT% 0 bps EBIT 14.0%

• Q2 2017 sales reached THB 26,720 MN, down -11.5% YoY, driven by a negative

same-store-sales of -15.2% for the quarter due to our strategic focus on the quality of sales.

• Our gross profit margin increased by +123 basis points YoY, reaching 15.6%, due

to discontinued unprofitable sales.

• Our EBIT reached THB 2,126 MN, down -22.7% YoY, and our EBIT margin

decreased by -115 bps YoY, reaching 8.0% for the quarter. This decline was driven by lower other income and increased SG&A expenses.

• Our recurring net profit reached THB 1,629 MN, down -23.2% YoY, and our net

profit margin decreased by -93 bps YoY, reaching 6.1% for the quarter.

NP% 16 bps NP 11.7% 2,120 1,629 3,626 3,201 7.0% 6.1% 6.1% 6.2% Q2 2016 Q2 2017 H1 2016 H1 2017

1 Excluding 113 million baht impact of one-off items in Q2 2016 and -20 million baht in Q2 2017

Q2 2017 Highlights H1 2017 Highlights

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Big C Delisting

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• Board of Directors meeting of Big C on 12th of May 2017 passed a resolution to call

for EGM to consider delisting of Big C from the Stock Exchange of Thailand to:

• Resolve the issue with incompliance of free float requirement under the rules
• n qualifications on maintaining the status as a listed company on the SET.
• And to avoid the additional fees as result of this incompliance
• The tender offer price for remaining 2.0608 percent of the total issued shares

(17,001,827 shares) is 225 baht per share.

• Potential total transaction amount of c.3.8 billion baht
• The Extraordinary General Meeting of Shareholders voted to approve delisting on 16

June 2017.

• Tender offer period is running 45 business days from 7th of July – 12th of

September, 2017

• As of 7th of August, 994,621 shares or 0.12% of total shares has been tendered.

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Agenda

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▪ Highlights ▪ Overall Performance ▪ Performance by Supply Chain ▪ Operations Update

Confidential

PSC – Update

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OPERATIONS UPDATE

• Construction work of SB4 furnace progressing on schedule
• Construction work finished in May 2017
• Furnace is targeted to be heated up in September 2017
• Targeted to be commercialized in Q4 2017
• Construction work of SB5 furnace progression on schedule
• Targeted to be commercialized in 2018

Glass Packaging

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CSC – Update

OPERATIONS UPDATE

Food

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• Tasto Potato Chips:

– Strong growth and increasing market share of Tasto after successful relaunch in Q1. – We are continuing new exciting product launches during third quarter as we launched: – “Tasto Devil” (limited selling period) offering fun experience for consumers, to keep the positive brand momentum and generate consumer excitement. – Introduced a new pack size “Tasto BIG PACK” to load consumers pantry with larger pack size that offers more value to them.

• Party Extruded Snacks:

– Strong growth and increasing market share during 1H 2017 driven by Thematic TV commercials, large pack size and in- store promotions

• Dozo Rice Crackers:
• Strong growth and further increasing market share to

solidify position as market leader.

• As a market leader in rice cracker category, Dozo aims

to grow rice crecker market and drive consumption through introduction of Dozo Light Texture (Light and Crispy) premium product concept.

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CSC - Update

OPERATIONS UPDATE

• Cellox Decor

– Launched new Cellox Décor Facial Tissue

– A uniquely soft facial tissue with shea butter extract in stylish packaging design inspired from touch and feel of material texture to create unique touch and feel of each box including Elegant stone (Black), Timeless marble (White), and Rustic wood (Brown).

• Parrot Herbal 2 in1 Herbal Soap

– Launched new Parrot Herbal “2in1” Herbal Soap

– A high quality herbal soap infused with well selected herbs to nourish the skin and solve skin concerns. It could be used as normal soap or as whip soap to deeply cleanse and nourish the skin, available in 3 formulas including Whitening (Pink), Golden skin (Yellow), and Anti-acne (Purple).

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Non - Food

Confidential

HSC - Update

OPERATIONS UPDATE

• Wang Prom

– Wang Prom has been manufacturing well know herbal products for over 20 years. – Particularly popular in upcountry locations. – BJC has sold Wang Prom products through Pure Drugstores since January 2017 and signed exclusive contract to distribute them in June 2017. – Currently BJC distributes Wang Prom products through various channels e.g. modern trade and traditional trade, covering c.1,600 outlets.

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Pharmaceutical Division

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MSC – SSSG and Margin trend improvement continues

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Big C’s total sale like-for-like performance, recurring gross profit and EBIT margins, percentage

Rebasing Same-Store Sales Growth (SSSG) and improving margins due to strategic change

• 2.9%
• 4.0%
• 22.6%
• 22.3%
• 20.0%
• 15.2%

2.7% 13.2% 14.4% 17.8% 14.1% 16.1% 15.6% 6.8% 9.1% 8.8% 6.8% 8.0% 8.0% Q1 2016 Q2 2016 Q3 2016 Q4 2016¹ Q1 2017 Q2 2017 Jul-17 SSSG Recurring GP Margin Recurring EBIT Margin

1 Q4 2016 Excluding one-off items: GP -74 million baht, and EBIT -259 million baht

SSSG turned back to positive level in July and we expect strong SSSG performance from second half of the year.

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MSC – Category Focus

OPERATIONS UPDATE

• Fresh Food - Establish Fresh Food as destination.

– Continue investing in price of key categories/items while improving quality and freshness of our offer. – New product innovation, adding new items in bakery, delica and RTE

• Dry Food - Define clear category roles

– Differentiate through offer especially in Tourist range, Imports, and Private label. – Create value and improve shopping experience through promotions and shop-in- shop concept.

• Home Line - Strengthening assortment

– Strengthen Home Line by establishing Home Décor & Housewares as destination categories, and increase private label penetration. – Focus on key categories in smaller stores and drive bigger seasonal events.

• Soft Line – Reinventing range

– Improve our range by building in-house design capabilities and improve sourcing know how.

• Hard Line – Reposition category

– Focus on shopping experience, store ambience, and before & after sales services. – Expand range through e-Commerce, and establish appliance DC to reduce backroom inventory and save on transportation.

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Confidential

MSC – Home Line Update

OPERATIONS UPDATE

• Improving Home Line

– Currently implementing Home Decor range update with new fixtures and

• assortment. All stores are targeted to be completed by the end of September

– Launched new Private Label: – In Q2 2017 we launched new Besico private label for Home Line. – Replacing old Home Line private labels. – Besico is divided in 7 sub-brands for different categories of products: – Besico and Besico Collection: home décor, home textile, bathroom accessories, kitchenware, plasticware, cleaning and laundry – Besico Stationery: stationery – Besico Tools: hand tools, gardening, car accessories, lighting – Besico Sport: sport equipment – Besico Travel: luggage – Besico Outdoor: camping. – Currently over 500 SKUs with target to reach c.1,000 SKUs by the end of the year.

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Confidential

MSC – Home Line Update

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Confidential

MSC – (Re)Launching Big Card CRM-Loyalty Program Increase customer participation by extending accumulation period Different point redemption schemes for Hyper / Market and MBC to increase Big Card sales participation (Launch 29th June) Acquisition plan to achieve 10M+ members Added over 771k members by 20th of August. Points can be donated to BJC- Big C foundation

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Confidential

MSC – Online

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Online

• Big C Shopping Online

– Launched Big C Fresh Express in July 2017 – Large offer of 5,000 fresh food SKUs – Delivery in Bangkok area with motorcycles from hub stores – Launched new Big C Shopping Online App in July 2017 – Started partnership with Shoppee in July 2017 – Big C Shopping online range available through Shoppee.co.th

• Awards

– Big C Shopping Online and Cmart were awarded as

The Best E-Commerce Website, and Big C Shopping

Online App as Top 8 Mobile App in Thailand by the Department of Business Development

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MSC – New Business Development

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Business Development

• Big C Co-branded Credit Card

– Launched in May 2017 with integrated communication plan with AEON. – Received good response from our customers. – As of 31 July, there were 84,917 cards issued and we expect to reach 100,000 cards by end of August.

• Big Service Counter

– Relaunched “Big C Big Service” to reinforce our Thai Retailer with Customer at Heart proposition by focusing on delivering great new services at one-stop-center. – Current services include Bill payment, Top up, Book & Pay, Money transfer and Pick up point for online shopping – Currently in 15 stores in Bangkok and Upcountry, with plans to cover all stores by end of 2018

• AirAsia Book & Pay

– Launched AirAsia book and pay service in 15 Big Service counters. – Apart from flight ticket booking, customers can also order special add-on services such as baggage allowance, inflight meal, priority seat selection, etc.

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MSC - Expanding store footprint and improving existing assets

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Retail and Rental Area Q2 2017¹

Total space:

• c. 1,101,000 sqm

Total space: c.847,000 sqm

Expansion

• 9 Hypermarkets
• 1 Big C Markets
• 200 Mini Big C in combination of owned stores

and franchise stores. Renovations

• 4 - 5 Extension renovations, 2 - 3 Right-

sizing renovations, and 3 Full Renovations.

• Store improvement renovations in 42 stores.

Targets for 2017

Q2 2017 Progress

• Opened 1 hypermarket (Korat), 1 Big C Market (Bangkok), and 37 Mini Big C including 20

franchise stores.

• We confirm our hypermarket and Mini Big C expansion targets, while reducing Big C Market
• penings to 1 from previous 2.
• Slight change on renovation targets as we have reduced our Extension and right-sizing

targets, but at the same time we will add 3 Full Renovations for 2017.

• We have finished 11 store improvement renovations during 1H 2017
• Further 13 store improvement renovations finished by end of August 2017

Operations update

1 Including Hypermarket, Big C Market, Mini Big C, and Pure Drugstores

Confidential

Foodcourt Renovation

MSC - Example of This Year’s Renovation Plan

Interior (Rama 4)

Beverage / Coffee

Full Renovation

HBA Fresh Food Pet Zone

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Confidential

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MSC – Introducing new 3K Low Cost Concept

‘Simpler to operate and cheaper to build’

• Optimized building size to be able to serve smaller community.
• No impact to customer shopping experience
• No compromise on building safety and engineering standard.
• Reduced space of back room and more space allocated to the sale area.
• Concept of ‘Market Upgrade’ not ‘Hyper Downgrade’

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Synergies – Update Q2 2017

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OPERATIONS UPDATE

We have reached our 2016 goals for synergies – now 2017 is a key year to keep up the momentum to reach our target of THB1.7Bn(1) recurring synergies in 2019 (Targeting to reach 1/3rd in 2017)

Economies of scale through leveraging manufacturing capability for private brands Leveraging BJC’s leadership in consumer supply chain and logistics and improving Big C’s current backend infrastructure

• Completed e-Commerce warehouse

transition to BJL warehouse in Bangna

• Construction of 2nd Mini Big C DC for

increased capacity to serve expansion as well as stronger integration between BJL and Big C Logistics



Potential to increase penetration of private label with BJC products

• During 1H we completed development
• f new food SKUs (Batter mix -, and

seasoning for fried chicken) with 23 food SKUs under different stages of development



IT Synergies between BJC and Big C

• All integration projects between BJC’s retail

units and Big C on track for Q4 completion



Utilizing Big C’s superior expertise in retail to improve performance of BJC’s smaller retail banners

• Starting the process of joint buying

between Thailand and Vietnam Retail BUs in non-food categories

• Leveraging Udonthani store network to

serve M-Point Mart Laos



Leveraging resources across companies

• Utilising Big C’s procurement team for

BJC non-merchandise sourcing (i.e. IT equipment sourcing for BJC Group)

• Continuing the organizational

integration by aligning job grades



Combine purchasing power and

• ptimize retail operations

Fully integrate logistics operations across entire value chain Cross-utilize IT and back office infrastructure

Synergies: c.THB1.7Bn

Note

• 1. Projected annual recurring EBITDA level synergies upon full implementation

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Community focus

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Recent CSR Activities

• Joining Hands for the Community

– On 25th April 2017. Big C Supercenter donated rafts to “Tha Ka-Ngan Community”, Trang province to support and promote eco-tourism activities which can stimulate people’s incomes and help to conserve local natural resources and environment.

• The Wisdom Society – Children’s Magazine “Tonfun”

– On 4th April 2017 BJC Big C Foundation arranged the

• pening

event

• f

Children’s Magazine “Tonfun” at 45th National Book Fair & Bangkok International Book Fair 2017.

• Pracharat Project

– Big C Supercenter Ayudhya committed the school in Pracharat Project (The Connext ED Program) By Wat Kai Tia (witthayanusorn) School presented hydroponics project and Wat Hun Tra (wetsamarnrachanukul) School presented Mushroom Farm. OPERATIONS UPDATE

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Conclusion

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Big C’s SSSG trend continued improving with underlying SSSG (excluding base effect) returning positive in Q2 2017 Hypermarket and Mini Big C expansion plan on track with full year targets confirmed. Continued good momentum in synergy teams in Big C and BJC, with confidence in achieving synergy targets. Continued solid performance across most supply chains.

Confidential

Q&A

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Q&A

Confidential

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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. Tanaporn Teachaviwat

Tanaport@bjc.co.th +66 2 367 1189 For more information

Thank You