Company Presentation Q1'2021 - Dohome Public Company Limited
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Company Presentation Q1’2021 Dohome Public Company Limited
Table of Contents
1 Q1’2021 Key Highlights
2 Business Impact from COVID-19 Situation
3 Operating Results for Q1’2021
4 Business Outlook
1
1 Q1’2021 Key Highlights
Q1’2021 Key Highlights
Business Impacts and
Outstanding Q1’2021 Result Promising Performance Outlook Competitive Strategy during
COVID-19 Situation
▪ Total sale increased from THB 4,569 ▪ The company begins to see results ▪ Minimal impact from the 2nd wave as
mn to THB 6,110 mn from Q1’2020 to from recently implemented strategies only three stores were closed for
Q1’2021, equivalent to 33.7% growth (including SKU rationalization, around 1 month in January while no
YoY and SSSG of 22.5% YoY enhancing sale team, and sourcing stores have been closed during the
product with competitive price), while ongoing 3rd wave of the pandemic
▪ Better margins in all product the margin improvement trends will still
categories due to newly implemented continue. ▪ Promoting and pushing the existing
strategies service channels of online (E-
▪ Targeted House Brand revenue Commerce) and direct phone ordering
▪ Gross profit margin (excluding contribution to be 20% of total sale in
steel) increased to 2022 ▪ Adapting working processes to be in
approximately 20.0-22.0% in line with the situation; such as,
Q1’2021, compared to 16.6-18.5% ▪ New stores has received positive transferring employees from other
in FY2018-FY2020 feedback since the opening sales team to direct sales team
(phone-call ordering), and promoting
▪ Net profit increased from THB 177 mn ▪ The plan to open 3 more new stores the electronic payment
to THB 543 mn from Q1’2020 to this year is on time, with the Bowin
Q1’2021, equivalent to 206.4% growth branch (2nd branch this year) expected ▪ Considering credit customers more
YoY, with the margin expansion from to be opened in June 2021, the tightly to prevent incurring bad debts
3.9% to 8.9% Chonburi (Amata) branch (3rd branch which results in a decrease in the
this year) expected to be opened in allowance for doubtful accounts
▪ Inventory days decreased from 180 November 2021, and the Surat Thani
days in FY2020 to 168 days in Q1’2021 branch (4rd branch this year) expected ▪ Preparing the strict public heath
to be opened in December 2021 control to all employees, customers
and partners
▪ The company is working on inventory
efficiency through inventory
replenishment system, with the
targeted inventory day of 150 days
within 2021
3
2 Business Impact from
COVID-19 Situation
Business Impact from COVID-19 Situation
22 MAR 2020 17 MAY 2020 The government has
According to the Government’s Opened additional 4 large allowed the opening;
measures to deal with COVID-19, we branches and 6 Dohome
temporarily closed 8 large branches and To-Go 27 JAN 2021
6 Dohome To-Go Map Ta Phut
Rangsit, Bang Bua Thong,
Rangsit, Bang Bua Thong, Rama 2,
Khon Kaen, Chiang Mai, 1 FEB 2021
Petchkasem, Korat, Udon, Khon Kaen,
and 6 Dohome To-Go Rama2 and Phetkasem
Chiang Mai, and 6 Dohome To-Go
3 MAY 2020 Due to the new wave of the epidemic
Opened 4 large branches of COVID-19, we temporarily closed;
including
19 DEC 2020
Rama 2, Petchkasem,
Rama2 and Phetkasem
Korat, Udon
28 DEC 2020
Map Ta Phut
5
3 Operating Results for
Q1’2021
Revenue from Sales and Services
Revenue from Sales and Services
THB mn
5.1%
-0.7%
-3.1%
18,445 17,869 18,777
6,110
4,569
2018 2019 2020 Q1'2020 Q1'2021
Annual Revenue from Sales and Services Growth
Key Changes Type Revenue Growth Q1’2021 Product Mix FY2018-Q1’2021
◼ In Q1’2021, total revenue from sales and services Construction Materials: 42-48%
increased 33.7% YoY due to: Dohome XL+L +33.0% Repair & Maintenance: 35-38%
➢ positive SSSG of 22.5% YoY, despite having the Home Decoration: 17-20%
COVID-19’s impact which temporarily closed
Construction Materials: 5-8%
Map Ta Phut, Rama2, and Phetkasem branch
Dohome To Go +122.6% Repair & Maintenance: 46-50%
➢ additional revenue from new branch expansion, Home Decoration: 44-48%
as well as the revenue increase from the
branches in the ramp-up phase Construction Materials: 9-11%
E-Commerce +129.0% Repair & Maintenance: 19-20%
Home Decoration: 70-71%
Note: (1) Same store sales growth includes only the revenue from the branches that completed its full year operation.
7
Gross Profit
Gross Profit
THB mn / % to Revenue from Sales and Services
21.7%
16.6% 16.2% 15.3%
14.6%
(1)
16.2%
2,958 3,040
2,684
1,324
698
2018 2019 2020 Q1' 2020 Q1' 2021
Gross Profit Gross Profit Margin (GPM) Normalized Gross Profit Margin (GPM)
Key Changes
Gross profit margin
The YoY Gross profit margin experienced an upward trend, increasing Period
◼
(excluding steel)
from 15.3% in Q1’2020 to 21.7% in Q1’2021 which is mainly from;
➢ improvement on gross profit margin from all product groups
➢ gross profit margin (excluding steel) increased to approximately 20.0- Q1/2021 20.0-22.0%
22.0% in Q1’2021, compared to 16.6-18.5% in FY2018-FY2020
➢ an increase in gross profit margin from both house brand and non-
house brand products FY2018 - FY2020 16.6-18.5%
➢ an increase in revenue from distribution center
Note: (1) Normalized GPM takes at the impact from changing the accounting policies on the provision for obsolete and slow-moving
of inventory in 1Q2019 which results in the decrease of THB 73.3 mm in cost of goods sold in 1Q2019 due to the reversal
of provision.
8
SG&A Expenses
SG&A Expenses
THB mn / % to total revenue
10.3% 10.5% 10.8% 9.9% 9.9%
2,038
1,907 1,879 (18)
299
33 10
353
375 104
172
160 93
162 147
440
364 369
327
223 252 606
455 (1)
87
(5) 54
12
77 120
696 41 3
644 643
106 118
71
158 215
2018 2019 2020 Q1' 2020 Q1' 2021
Selling Employee Expense Admin Employee Expense Depreciation and Amortization Delivery Expense
Marketing Expense Others SG&A to Total Revenue Allowance for bad debt (reverse)
Key Changes
◼ Selling and administrative expenses (SG&A) of Q1’2021 increased by THB 150.9 mn or 33.2% YoY which is mainly from;
➢ an increase in both selling and administrative employee’s expenses for serving major branch expansion plans in 2021
➢ an increase in commission and transportation cost due to higher sales volume
➢ an increase in operating expenses from new branches
◼ However, the percentage of SG&A to sales between Q1’2020 and Q1’2021 still indicated a stable trend at 9.9%.
9EBITDA, and Net Profit
EBITDA & Net Profit
THB mn / % to total revenue
14.2%
6.8% 8.7% 8.7% 8.7%
1,563 1,652
1,254
872
399
2018 2019 2020 Q1'2020 Q1'2021
EBITDA EBITDA Margin
8.9%
2.4% 4.0% 3.8% 3.9%
726 727
439 543
177
2018 2019 2020 Q1'2020 Q1'2021
Net Profit Net Profit Margin
EPS
0.31 0.34 0.34 0.08 0.23
(THB)
10Key Financial Highlight
Cash Cycle Financial Ratios
3.09
19 17 18 18
1.81 1.93 1.95
AR
L/E
Days
2018 2019 2020 Q1'2021 2018 2019 2020 Q1'2021
14.3%
49 49 54 55 11.2% 10.1%
AP 9.2%
ROE
Days
2018 2019 2020 Q1'2021 2018 2019 2020 Q1'2021
180 168
Inventory 149 162
Days
2018 2019 2020 Q1'2021
130 144 130
118
Cash
Cycle
2018 2019 2020 Q1' 2021
114 Business Outlook
Accelerate Growth through New Large Store Format
◼ Located in major cities with Existing Large Store New Large Store
smaller size, while maintaining Format Format
over 100,000 SKUs, and
concept of “Completed
Assortment, Competitive Price,
Good Quality” similar to
existing branches
Construction Materials
Repair & Maintenance
Construction Materials: 43-48% Construction Materials: 25-33%
Product Mix Repair & Maintenance: 35-38% Repair & Maintenance: 43-44%
Home Decoration Home Decoration: 17-19% Home Decoration: 24-31%
Retail Space
◼ Lower number of required Area per branch (1) Retail Space ~19,500 - ~30,000
~15,000 - ~20,000
employees as the new large Warehouse Space
(sq.m.) Warehouse Space
~18,000 - ~35,000
store format has smaller ~12,000 - ~15,000
branch area and utilizes
automated storage and Target area
Major cities including Bangkok
Major cities
retrieval system (“ASRS”) to vicinity
manage warehouse space
Target product Construction Material / Repair & Construction Material / Repair &
◼ Air conditioned area in retail offerings Maintenance / Home Decoration Maintenance / Home Decoration
space to increase customers
shopping experience and Approximately
ease Target revenue (2)
- THB 1,500 mn per branch
(per year)
Y1:Y2:Y3 = 60%:80%:100%
◼ Increase ability to open new
stores from lower CAPEX Approximately
requirement CAPEX per branch (3) -
THB 450 mm per branch
Note: (1) Service area excludes parking and traffic area
(2) Target revenue after 3 years of ramp-up phase
(3) Construction CAPEX per branch includes ASRS and miscellaneous expenses but excludes land and
rental expense 13Opened New Large Store Format Stores
Phetkasem Surin Map Ta Phut Laem Chabang
Q4/2019 Q3/2020 Q3/2020 Q1/2021
14Existing Branches and Future Branch Expansion
As of 31 March 2021 Existing Branches
North Region 1 branch; Chiang Mai (2015)
Chiang Mai
Northeast Region 5 branches; Ubon Ratchathani (1993), Nakhon
Ratchasima (2007), Khon Kaen (2012), Udonthani (2013), Surin
Udonthani
(2020)
Large Store Khon Kaen
Bangkok Metropolitan Region 5 branches; Rangsit (2010), Rama 2
Branches Ubon (2014), Bang Bua Thong (2015), Bangna (2018), Phetkasem (2019)
Ratchathani
Phitsanulok
Nakhon Ratchasima Eastern Region 2 branches; Map Ta Phut (2020), Laem Chabang
Distribution (2021)
Rangsit Center Surin
Bang Bua Thong
Phetkasem
Bangna Future Branch Expansion
Rama 2 Chonburi Bowin
- Laem Chabang (operated Q1’2021)
Laem Chabang, Chon Buri
- Bowin - Chonburi
Map Ta Phut, Rayong - Suratthani - Hat Yai
40 - Phitsanulok - etc.
Total 36
Focus on land lease model to get 35
better IRR 30
New large store format with lower 25 - Surin
CAPEX per store and lower operating - Map Ta Phut
expense 20
Suratthani Total 16 36
Accelerate ramp-up strategy roll- 15 Total 12
Total 10
outs 10
16
Hat Yai
Expanding our investment in 5 10 12
potential area such as Eastern
0
Economic Corridor (EEC) area
2019 2020 2021F 2022F-2025F
Create Dohome’s network to cover
all regions in Thailand
15New: Dohome Bowin Branch
Pre-research acquiring
Pinthong on the potential customers before
industrial
market opening stores
estate
Dohome
Eastern
seaboard
industrial
estate
Amata city
industrial
estate
Map Yang Phon, Pluak Daeng District, Rayong
Location
Province
Construction Progress 94%
Opening June 2021F
16Continuously Increase in Profitability
Tools and Hardware
1 House Brand Products
◼ More than 20,000 SKUs of the House Brand
products
◼ The Company targets to achieve revenue
contribution from House Brand products at
20.0% by 2022
◼ The Company focuses on product sourcing Bathroom
processes in order to obtain quality products
at competitive prices
◼ The Company has a House Brand
development team to ensure that a variety of
product options are available for customers
◼ Conduct researches to study the
requirements of customers and the
competitive landscape in the market to
optimize product selection Furniture and Home Decoration
◼ House Brand product procured only from
qualified suppliers, both domestically and
internationally
◼ High-quality products meeting product
standards with over 115 certifications issued
by Thai Industrial Standard
Home Appliances and Light Bulbs
Revenue Contribution from House Brand
% to revenues from sales and services
targets revenue
contribution from House
Brand products
20%
14% 16% 17% 17% 16%
2018 2019 2020 Q1'2020 Q1'2021 2022F
17Continuously Increase in Profitability
2 Distribution Center Inventory Management at the Distribution Center
◼ Located in Pathum Thani and began operation in June 2018
◼ Total warehouse area of 41,580 sq.m. (60% Utilization after Suppliers Store
ASRS is fully operating)
◼ Functions:
◼ Receiving inventory
◼ Picking inventory
◼ Dispatching Inventory to customers and branches
◼ Installing the ASRS system to increase inventory
management efficiency
◼ Revenue from distribution center started to be higher than Receiving Cross dock
cost which would reduce cost of goods sold
Picking
Dispatching
Customers Stores
18Continuously Increase in Efficiency
1 More Efficiency through Inventory Replenishment System
▪ Start Implementing in January 2021
▪ A reduction in replenishment lead time to reduce
safety stock
▪ Target inventory days to 150 days within 2021
➢ Better serve customers’ needs
(Right product at the right amount)
➢ Lower stock levels
➢ Improve inventory turnover
➢ Increase cash flows
2 Implement Learning Management 3 Implement Robotic Process Automation
system (LMS) (RPA)
Virtual The Company implement Robotic
Process Automation to manage day
Employee
to day operation more efficiency
The Robotic Process Automation
Robot can be equal to human workforce
of 8 people
19Continuously Improve in Competitive Advantage
1 CRM and Loyalty Program 2 Introduce New Product Categories
Marketing Communication and Brand Awareness
Enhancement through SMS and Direct Mail to Customer
Technology
Register Channel SMS Membership Products
1 Web ERP @CS
DOHOME
ยินดีต้อนรับสู่
สมาชิกดูโฮม
หมายเลขสมาชิก
ของคุณ
100906xxx เริ่ม ECO Friendly
2 QR Code–Self service สะสมคะแนน and Aging
รับสิทธิพิเศษ Products
เพี ยงแจ้งเบอร์
โทรศัพท์ เมื่อซื้อ
สินค้าครั้งต่อไป
3 ID Card reader @CS
Professional
Tools
Number of Membership
2019 2020 Q1'2021
20Dohome Activities during COVID-19 Situation
1 Dohome Activities to Support Our Customer during COVID-19
21Marketing Activities
1 Dohome (Existing Store)
Construction
Material
Promotion
Other
Marketing
Activities
22Marketing Activities
2 Dohome (New Store)
Laem
Chabang
Branch
Opening
Event
23Marketing Activities
3 E-Commerce
24Marketing Activities
3 E-Commerce
25Q&A
Appendix
Dohome’s History
2019 OCT-NOV 2020 FEB 2021
Converted to Opened new Opened new
publicly traded Dohome To Go Dohome To Go
company in the SET branches branches
“Thai Somboon” “Thap Yao Market”
as “DOHOME” with JUL 2020 “Ruay Sub”
first day trading on 6
Opened new “Thairungthip Market”
August 2019
branch “Surin”
SEP 2020 JAN 2021 2H 2021
Opened new Opened new branch Open new
branch “Map Ta “Laem Chabang” branches
JUN 2020 Phut” “Bowin”
DOHOME was
w
“Chonburi”
listed in SET100 “Suratthani”
28Dohome Business Overview
As of 31 March 2021
One-stop Home Products Destination
38 years experience
International Suppliers Domestic Suppliers in retail and wholesale
business of construction
materials and home
decoration items
Branches
Home Products Services & Solutions
Delivery Service
Dohome: Dohome To Go: E-Commerce:
13 Branches 12 Branches 4 Channels Repair and Maintenance Service
▶ Ubon Ratchathani ▶ Makro Charan ▶ Dohome’s Website
▶ Nakhon Ratchasima ▶ Makro Sathorn ▶ Chat&Shop
▶ Rangsit ▶ Big C Bang Phli (Line&Facebook) Home Installation Service
▶ Khon Kaen ▶ Tesco Lotus Korat ▶ Lazada
▶ Udonthani ▶ Pantip ▶ Shopee
▶ Rama II ▶ Tesco Lotus Bangna ▶ NocNoc Design Center
▶ Bang Bua Thong ▶ Cosmo Walk ▶ JD Central
▶ Chiang Mai ▶ Chatchawan Market
▶ Bangna ▶ Thaisomboon Market
▶ Phetkasem ▶ Ruaysub Market Special Order 29
▶ Surin ▶ Thairungthip Market
▶ Map Ta Phut ▶ Thap Yao Market
▶ Laem Chabang
Sales Team
Call Center and Telesales
29Key Corporate Strategy
We focus on offering a completed range of products and services under concept of
“Completed Assortment, Competitive Price, and Good Quality”
“Completed Assortment” “Competitive Price” “Good Quality”
We offer a variety of products with over 100,000 We are known for providing competitive price with We offer product with good quality and high-
SKUs and meet customers’ demand of both retail various price levels according to the designs and standard services, such as product consultants,
and wholesale customers by displaying products brands delivery and installation services, and maintenance
from piece to box and repair services
30P&L Summary
Q1’2021 Q1’2020 Changes
THB mm % THB mm % THB mm %
Revenue from sales 6,062.6 98.9 4,534.2 98.4 1,528.4 33.7
Revenue from services 47.4 0.8 35.1 0.8 12.3 35.1
Other incomes 22.1 0.4 38.2 0.8 -16.1 -42.1
Total revenue 6,132.0 100.0 4,607.4 100.0 1,524.6 33.1
COGS 4,786.0 78.0 3,871.6 84.0 914.5 23.6
(1)
Gross profit 1,323.9 21.6 697.7 15.1 626.2 89.8
Selling & Administrative expenses 605.9 9.9 455.0 9.9 150.9 33.2
Other expenses 0.2 0.004 0.1 0.002 0.1 111.5
EBIT 739.9 12.1 280.8 6.1 459.1 163.5
Financial income 7.3 0.1 5.3 0.1 2.0 37.5
Interest expenses 63.5 1.0 64.4 1.4 -0.9 -1.4
Tax expenses 140.5 2.3 44.3 1.0 96.2 217.1
Net income 543.2 8.9 177.3 3.9 365.9 206.4
Depreciation & Amortization 132.5 2.2 118.0 2.6 14.5 12.3
EBITDA 872.3 14.2 398.7 8.7 473.6 118.8
Note: (1) Gross profit margin calculated based on revenue from sales and services
31Balance Sheet at a Glance
31 March 2021 31 December 2020
Assets THB mm % THB mm %
Cash and Cash Equivalents 223.02 0.99 99.52 0.48
Accounts Receivable and Other Receivables 1,095.90 4.85 903.19 4.35
Inventory 9,523.45 42.13 8,559.71 41.22
Property, Plant and Equipment and Intangible 10,712.05 47.39 10,381.62 50.00
Right of Use - Assets 673.26 2.98 523.90 2.52
Others 376.74 1.67 297.21 1.43
Total Assets 22,604.41 100.00 20,765.16 100.00
Liabilities
Bank Overdrafts and Short-term Loan 7,143.02 31.60 6,852.31 33.00
Accounts Payable and Other Payables 3,742.04 16.55 2,845.06 13.70
Right of Use - Liabilities 288.13 1.27 261.32 1.26
Long-term Loan and Financial Lease Liabilities 3,478.85 15.39 3,539.37 17.04
Others 315.47 1.40 177.35 0.85
Total Liabilities 14,967.50 66.21 13,675.40 65.86
Shareholder’s Equity
Issued and Paid-Up Capital 2,165.52 9.58 2,165.52 10.43
Premium on Share Capital 3,646.99 16.13 3,646.99 17.56
Shortage from business combination under common control 2,431.84 10.76 1,888.69 9.10
Retained Earnings -9.05 -0.04 -13.05 -0.06
Others -598.39 -2.65 -598.39 -2.88
Total Shareholder’s Equity 7,636.91 33.79 7,089.76 34.14
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