Company Presentation Dohome Public Company Limited 10 March 2020
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Company Presentation Dohome Public Company Limited 10 March 2020
Table of Contents
1 Dohome Business Overview
2 Operating Results for FY2019
3 Business Outlook
1
Dohome Business Overview
Dohome Business Overview
As of 31 December 2019
One-stop Home Products Destination Target Customer Group
International Suppliers Domestic Suppliers
End-users Resellers Contractors Government
(Retail) (Wholesale) and Projects Agencies and
State Enterprise
Home Products Services & Solution
Retail Space (226,029 sq.m.) Warehouse Space (255,178 sq.m.)
Branches Delivery Service
Repair and Maintenance Service
Home Installation Service
10 branches in operation 5 branches in operation
6 new branches within 2021 85 new branches within 2021 Design Center
Dohome Dohome To Go
Special Order
Sales Team
Call Center and Telesales
3
Website
3
Operating Results for FY2019
P&L Summary
FY2018 FY2019 Changes
THB mm % THB mm % THB mm %
Revenue from sales and services 18,445.4 99.5 17,868.7 99.4 -576.7 -3.1
Other incomes 89.8 0.5 103.1 0.6 13.3 14.8
Total revenue 18,535.2 100.0 17,971.8 100.0 -563.4 -3.0
COGS 15,760.9 85.0 14,910.7 83.0 -850.1 -5.4
(1)
Gross profit 2,684.5 14.6 2,958.0 16.6 273.5 10.2
Selling & Administrative expenses 1,907.0 10.3 1,879.1 10.5 -27.9 -1.5
Other expenses 1.4 0.0 26.3 0.2 25.0 1,854.1
EBIT 866.0 4.7 1,155.7 6.4 289.7 33.5
Interest expenses 320.2 1.7 298.0 1.7 -22.2 -6.9
Tax expenses 107.0 0.6 132.1 0.7 42.4 39.6
Net income 438.8 2.4 725.5 4.0 269.5 61.4
Depreciation & Amortization 387.9 2.1 407.8 2.3 19.9 5.1
EBITDA 1,253.8 6.8 1,563.4 8.7 309.6 24.7
Note: (1) Gross profit margin calculated based on revenue from sales and services
5
Revenue Breakdown by Product Group
% to revenues from sales and services
16% 17% 18%
36% 35% 37%
47% 48% 44%
2017 2018 2019
Construction Materials Repair & Maintenance Home Decoration
Key Changes
◼ In term of revenue breakdown by product group, the FY2019’s revenue from construction material dropped 10.5%
YoY while other product groups’ revenue showed growth at 2.8% - 5.7% YoY. Thus, revenue contribution from
construction material dropped from 48% in 2018 to 44% in 2019.
◼ As a result, product mix shifting towards more contribution to the repair & maintenance and home decoration
product group which have higher margin leads to overall Gross Profit Margin slightly improved.
6
Revenue from Sales and Services
THB mm
0.2% -0.7%
-3.1% -2.6% -2.5%
18,576 18,445 17,869
4,436 4,325
2017 2018 2019 4Q2018 4Q2019
Quarter Revenue from Sales and Services Annual Revenue from Sales and Services Growth
Key Changes
◼ FY2019’s total revenue from sales and services was down by 3.1% YoY, which was driven by the decrease in
revenues from matured branches due to the slowdown in the country’s economic conditions, competitive landscape
in the industry, and the big flooding in Ubon Ratchathani in September 2019 that negatively affected the sales in
Ubon Ratchathani branch.
◼ For all the reason above, same store sales growth (1) has been declined at 5.3% in 2019. Moreover, the big flooding
also affected the overall same store sales in 3Q2019 to decreased by 8.2% YoY. However, negative same store sales
growth solely comes from construction material product group revenue, whereas repair & maintenance and
decoration product group revenue sees a positive growth.
◼ Furthermore, revenues from branches in the ramp-up phase continued to increase, especially from Bangna branch
which completed its first full-year operation in 2019 and from Phetkasem Branch which opened in November 2019.
Note: (1) same store sales growth is considered only the revenue from branch which completed its full
year operation.
7
Gross Profit and Gross Profit Margin
THB mm / % to revenues from sales and services
16.9%
16.2% 16.6%
14.6%
13.4%
3,017 2,958
2,684
594 732
2017 2018 2019 4Q2018 4Q2019
Quarter Gross Profit Annual Gross Profit Gross Profit Margin
Key Changes
Gross Profit Margin increased from 14.6% in 2018 to 16.6% in 2019 due to:
◼ Revenue contribution from house brand expanded from 14.4% in 2018 to 16.0% in 2019 which is in conjunction
with the company’s strategy to achieve 20% house brand revenue contribution by 2022
◼ The increase in the gross profit margin of both house brand and non-house brand products
◼ An effectively managing inventory and internal policy results in the reversal of provision for obsolete and slow-
moving inventory
◼ An increase in revenue from distribution center which started to cover cost
◼ Higher contribution from repair & maintenance and decoration product group
8
High Quality House Brand Products
House Brand Products Revenue Contribution from House Brand
◼ The company gives high
importance to product % to revenues from sales and services
sourcing in order to obtain
quality products at
competitive prices
◼ The company has a House
Brand development team to 16.0% 16.7%
14.4% 14.6%
help ensure that a variety of
product options are available
for customers
◼ Conduct research to study
the needs of customers and 2018 2019 4Q2018 4Q2019
the competitive landscape in
the market in order to
optimize product selection House Brand Product Examples
◼ House Brand product
procured only from qualified
suppliers, both domestically
and internationally
◼ High-quality products
meeting product standards
with over 130 certifications
issued by Thai Industrial
Standard
9High Quality House Brand Products
Examples of House Brand Products with Thai Industrial Standards
10Distribution Center
Distribution Center
◼ Located in Pathum Thani and began operation in Inventory Management at the Distribution Center
June 2018
◼ Total warehouse area of 41,580 sq.m. Suppliers Store
◼ Functions:
◼ Receiving inventory
◼ Picking inventory
◼ Dispatching Inventory to customers and branches
◼ Revenue from distribution center started to be higher
than cost which would reduce COGS
Receiving Cross dock
Picking
Dispatching
Customers Stores
11Managing the Slow-Moving Inventory
In 2019, Dohome managed the slow-
moving inventory more efficient by
launching the promotions and marketing
campaigns on the slow moving goods
throughout the year and especially in
Dohome Fair big sale in December 2019.
12Increase Other Income by Managing Leasable Space
The Company efficiently managed leasable space both retail and warehouse area to increase rental income.
Retail Area: Bang Bua Thong
13Increase Other Income by Managing Leasable Space
Retail Area: Chiang Mai
14Increase Other Income by Managing Leasable Space
Retail Area: Bangna
15Increase Other Income by Managing Leasable Space
Retail Area: Udon Thani Retail Area: Nakhon Ratchasima
16Increase Other Income by Managing Leasable Space
Retail Area: Phetkasem
17Increase Other Income by Managing Leasable Space
Warehouse Area: Phetkasem
Udon Thani Rama 2 Chiang Mai
Khon Kaen Bang Bua Thong Bangna
18SG&A Expense
THB mm / % to revenues from sales and services
10.3% 10.5% 10.7% 11.2%
8.7%
1,907 1,880
33 10
1,614 353
375
(6)
266 160 93
85 162 147
163
364 369
333
223 252
144
474 486
(2) (13)
89 101
35 28
623 644 643 41 35
92 93
56 62
160 166
2017 2018 2019 4Q2018 4Q2019
Selling Employee Expense Admin Employee Expense Depreciation and Amortization
Delivery Expense Marketing Expense Others
SG&A to Revenue from Sales and Services Allowance for bad debt (reverse)
Key Changes
◼ Selling and administrative expenses for FY2019 decreased by THB 27.9 mm or down 1.5% YoY, which mainly driven
by the decrease in marketing expenses that resulted from the company’s policy to increase marketing
effectiveness, the decrease in allowance for doubtful account receivables, and the increase in operating efficiency.
19Improving Marketing Effectiveness
The marketing expenses in 2019 saw a steady decrease
from the prior year, due to company’s policy to increase
marketing effectiveness by
◼ Focusing on digital marketing and advertising on
social media such as Facebook and Line over
traditional channels.
◼ Creating multi-channel selling through offline and
online media such as Lazada and Shopee which is the
online marketplace leader in Thailand.
20Improving Marketing Effectiveness
Digital Channel
Social Commerce e-Marketplace
Dohome’s Social
Admin Chat & Shop
21EBITDA and Net Profit
EBITDA
THB mm / % to total revenue
9.7% 8.7% 7.8%
6.8% 5.5%
1,807 1,563
1,254
246 341
2017 2018 2019 4Q2018 4Q2019
EBITDA EBITDA Margin
Net Profit
THB mm / % to total revenue
5.0% 4.0% 3.5%
2.4% 1.2%
931 726 152
439 53
2017 2018 2019 4Q2018 4Q2019
Net Profit Net Profit Margin
EPS
(THB)
0.90 0.31 0.46 0.04 0.08
22Balance Sheet at a Glance
31 December 2018 31 December 2019
Assets THB mm % THB mm %
Cash and Cash Equivalents 167.2 1.0 204.1 1.1
Accounts Receivable and Other Receivables 838.9 5.0 859.9 4.7
Inventory 6,260.2 37.5 7,048.2 38.8
Property, Plant and Equipment 8,890.7 53.3 9,705.3 53.5
Others 517.7 3.1 334.3 1.8
Total Assets 16,674.6 100.0 18,151.7 100.0
Liabilities
Bank Overdrafts and Short-term Loan 6,577.0 39.4 5,731.7 31.6
Accounts Payable and Other Payables 2,128.1 12.8 2,488.2 13.7
Long-term Loan and Financial Lease Liabilities 3,048.2 18.3 3,339.1 18.4
Others 128.9 0.8 132.3 0.7
Total Liabilities 11,882.3 71.3 11,691.3 64.4
Shareholder’s Equity
Issued and Paid-Up Capital 1,456.3 8.7 4,904.8 27.0
Retained Earnings 3,330.1 20.0 1,549.7 8.5
Others 6.0 0.0 6.0 0.0
Total Shareholder’s Equity 4,792.4 28.7 6,460.4 35.6
23Key Financial Highlight
Cash Cycle Financial Ratios
0.9
0.8 0.8
20 18 17
AR
Days Current
Ratio
2017 2018 2019
2017 2018 2019
49 49 49
AP
Days 3.1
2.5
1.8
2017 2018 2019
L/E
159
156
Inventory
2017 2018 2019
Days 147
21.7%
2017 2018 2019
11.2%
126 116 127 ROE 9.2%
Cash
Cycle
2017 2018 2019 2017 2018 2019
24Business Outlook
Existing Branches and Future Branch Expansion
As of 31 December 2019
Existing: Large Future: Large
Chiang Mai
(10 stores) New (3 stores)
Ubon Ratchathani Q2/20: Surin
Udonthani
Nakhon Ratchasima Q3/20: Map Ta Phut, Rayong
Large Store Khon Kaen Rangsit Q4/20: Bang Lamung, Chon Buri
Branches Ubon Ratchathani Khon Kaen
Nakhon Ratchasima Udonthani
Rangsit
Rama II
Surin
Bang Bua Thong Bang Bua Thong
Thepharak
Phetkasem
Chiang Mai
Bangna
Rama 2 Bang Lamung, Chon Buri
Bangna
Map Ta Phut, Rayong Phetkasem
Existing: To Go Future: To Go
(5 stores) New (6 stores)
Makro Charansanitwong Jan/20: Tesco Lotus Bangna
Dohome To Go
Existing: 5 Stores Makro Sathorn Q2/20: 5 Branches
Big C Bang Phli
Tesco Lotus Korat
Pantip Ngamwongwan
26Ubon Ratchathani Branch
Ubon Ratchathani to get industrial estate
A partnership between Thai and Japanese companies plans to invest nearly THB 3 billion to build an industrial
estate in Ubon Ratchathani, focusing on agriculture processing and biotechnology. Natawatana
Lerdsurawitaya, managing director of Ubon Industry Co, announced a partnership with Kaigai Advisory Co,
Wellness Life Project Thailand Co and Asian Dynamic Communication Co.
The companies recently signed a memorandum of understanding to establish the Ubon Ratchathani Industrial
Estate, which is expected to begin construction by 2020 and conclude in 2022.
The estate is touted as a regional distribution centre connecting with Cambodia, Laos and Vietnam. The
estate will also manufacture machinery for agriculture and other industries.
Mr Natawatana said the establishment of the industrial estate is a product of collaboration among the four
partners, aiming to serve as a model of how industry-led sustainable development derives from foreign direct
investment, enhances the local economy, provides employment and creates valuable socio-economic
transformation in the region. He said the project targets generating an economic impact of more than 20
billion baht and providing 20,000 jobs by 2022.
Source: https://www.bangkokpost.com
37-47, Sri Mongkhon Road, Warin Chamrap Subdistrict, Warin Chamrap
Location
District, Ubon Ratchathani Province 34190
Opening December 1993
27Nakhon Ratchasima Branch
New Motorway Construction Linking Bangkok with Korat
A motorway from Bangkok to Nakhon Ratchasima will be constructed to lessen traffic congestion on the
current Friendship and Phahonyothin highways during long holidays or weekends. It will be a 196 km long
highway called Highway 6 and it is part of the 535 km long project motorway connecting Bangkok to Nong
Khai, a northeast Thai province bordering Laos where it will connect with its ASEAN neighbors.
The cost of this 196 km long motorway is estimated at THB 82.6 billion (USD 2.42 billion). Of this amount, THB
77.9 billion is the construction cost and THB 6.6 billion is for the land expropriation cost. The motorway
will be consisted of 2 sections with the first one covering 103 km from Bang Pa-in to Pak Chong and the other
93 km covers Pak Chong to Nakhon Ratchasima.
This motorway project is one of the 20 mega infrastructure projects initiated by the government to boost
economy and investment from 2015-2022. It is scheduled to be completed and open to service in 2020.
Source: Thai PBS, Thailand Board of Investment
412 Moo 2, Ratchasima - Chokchai Road, Nong Bua Sala Subdistrict, Muang
Location
District, Nakhon Ratchasima Province 30000
Opening September 2007
28Rama ll Branch
Samut Sakhon
Industrial Estate
Key Information
88/8 Moo 2, Rama II Road, Chai
• Rama II Road is under construction to widen
Location Mongkol Subdistrict, Mueang District,
both inbound and outbound road into eight
Samut Sakhon Province 74000
lanes
Opening December 2014
29Bang Bua Thong Branch
Key Information
88 Moo 5 Outer Ring Road, Lahan
• Short distance to the Bang Bua Thong
Location Subdistrict, Bang Bua Thong District
intersection between Highway No.9 and No.345.
Nonthaburi Province 11110
(completed in September 2019)
• Highway No. 345 and 340 was widen both
Opening October 2015
inbound and outbound road (completed in
November 2019)
30Chiangmai Branch
Key Information
88 Soi 8, Saraphi Subdistrict, Saraphi • Super Highway Chiangmai – Lampang was
Location
District, Chiang Mai Province 50140 widen both inbound and outbound road into
eight lanes (completed in October 2019)
Opening December 2015
31Phetkasem Branch
Phetkasem Road
88/88 Village No. 11, Om Noi Subdistrict, Key Performance
Location Krathum Baen District Samut Sakhon ▪ Gross Profit Margin: 18% – 20%
Province 74130 ▪ Positive EBITDA: approximately at THB 1.XX
mm per month
Opening November 2019 Key Information
• Rama II Road is under construction to widen
both inbound and outbound road into eight
lanes
32Phetkasem Branch
Automated Storage and Utilization of ASRS System to
Retrieval System (ASRS)
Increase Inventory Management Efficiency
◼ Phetkasem branch
◼ Improvement in
inventory management
efficiency through
lower costs to store
and retrieve inventory
◼ The company could
potentially consider
installing the ASRS
system at other large
store format warehouse
in the future
◼ Being installed at the
Reduce required
warehouse space
Reduce the number of
warehouse staff
More efficient inventory
management
33Surin Branch
Location 483 Moo 10, Nok Mueang Subdistrict, Mueang District, Surin Province 32000
Store Area 30,516 Sq.m.
Construction Period 15 December 2019 – 31 May 2020
34Map Ta Phut (Rayong) Branch
Map Ta Phut Subdistrict,
Location Mueang Rayong District,
Rayong
Construction 1 November 2019 – 31 July
Period 2020
Business Opportunities
EEC Infrastructure:
Investment Completion
Value Date
High-speed rail
THB 220
which connects 3 2023
billion
airports
U-tapao aviation
THB 300
city and MRO 2023
billion
center
Map Ta 3rd phase of the
Phut THB 55
Map Ta Phut 2025
billion
Seaport
The Pattaya-Map THB 14
2020
Ta Phut Motorway billion
35Bang Lamung (Chonburi) Branch
Bang Lamung Subdistrict, Bang
Location Lamung District, Chonburi
Province
Construction 1 February 2020 – 30
Period September 2020
Business Opportunities
EEC Infrastructure:
Investment Completion
Value Date
High-speed rail
THB 220
which connects 3 2023
billion
airports
U-tapao aviation
3rd phase of THB 300
the Laem city and MRO 2023
billion
Chabang center
Seaport
1st phase of the
THB 0.5
Laem Chabang 2020
billion
Seaport (Port A)
2nd phase of the
THB 0.6
Laem Chabang 2019
billion
Seaport (SRTO)
3rd phase of the
THB 110
Laem Chabang 2025
billion
Seaport
36Eastern Thailand
Dohome plans to capture all strategic area in Eastern Thailand
Bang Lamung
Map Ta Phut
37Eastern Thailand Outlook
38Dohome To Go 6 Branches
1 2 3
Makro Charansanitwong Makro Sathorn Big C Bang Phli
4 5 6
Tesco Lotus Korat Pantip Ngamwongwan Tesco Lotus Bangna-Trad
Key Information
• Adjusted product assortment to be more Household and Repair & Maintenance Service category
• Higher Gross Profit Margin than large store format
39Dohome To Go – Cosmo Walk
Dohome Togo
Key Information
• The area is surrounded by a huge
community including accommodation, office
building, IMPACT Exhibition and Convention
Center, and educational institutes such as St.
Francis Xavier School, Sukhothai
Thammathirat Open University, and Silpakorn
University City Campus (SUCC).
Cosmo Bazaar Building, Popular 3 Rd, Banmai, • Population in Muang Thong Thani is over
Location
Pak Kret District, Nonthaburi 11120 300,000 people and more than 30 million
visitors / year.
Opening Q2 / 2020
40Q&A
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