Company Presentation 2Q2020 Dohome Public Company Limited
Company Presentation2Q2020
Dohome Public Company Limited
Table of Contents
Business Update during COVID-19 Situation1
Dohome Business Overview2
Operating Results for 2Q20203
Business Outlook4
1
Business Update during COVID-19 Situation
22 March 2020According to the Government’s measures to deal with COVID-19, we temporarily closed 8 large branches and 6 Dohome To-Go
Rangsit, Bang Bua Thong, Rama 2, Petchkasem, Korat, Udon, Khon Kaen, Chiang Mai Branch, and 6 Dohome To-Go
3 MAY 2020The government has relaxed the control measures, we have resumed opening 4 large branches including
Rama 2, Petchkasem, Korat, Udon
17 MAY 2020The government has allowed the opening of all construction material stores on May 17, we have resumed opening additional 4 large branches and 6 Dohome To-Go
Rangsit, Bang Bua Thong, KhonKaen, Chiang Mai, and 6 Dohome To-Go
1) Promoting and Pushing the existing service channels of online (E-Commerce) and direct phone ordering to our sales team and sales representative.
2) Adapting working processes to be in line with the situation; such as, transferring employees from other sales team to direct sales team (phone-call ordering), promoting the electronic payment, and allowing employees in some departments to work from home, etc.
3) Considering more credit customers tightly to prevent incurring bad debts.
4) Preparing the strict public heath control to all employees, customers and partners as follows;
- Set screening point and body temperature measurement before entering the offices or branches
- Support campaign of often hand washing by sanitary gel
- Wear the face masks during work at the office or branches
- Keep social distancing 1 meter in all areas
- Keep clean for the frequently exposed equipment and risk areas with antiseptic at least every hour, etc.
Dohome’s Current Status and Corporate Strategy
3
1
2
3
4
Prevention Measures at Store
Set screening point and body temperature measurement for all customers at the entrance area
Add service point for hand sanitizer and install the sign to
advise the operation
Measure daily body temperature of all staffs
before working
Clean the frequently exposed equipment with antiseptic
4
Require online register via QR code to check in
Mark the appropriatedistance in waiting line
Employees must wear a face mask at all time
Set the plastic barriers between cashier
5
Certificates to ensure public hygiene standards
Our 10 large branches, 8 Dohome To-Go, and Dohome head office are qualify for certificate which is granted by Department of Health to ensure public hygiene standards.
Example of certificates
Dohome Business Overview
Dohome Business Overview
As of 30 June 2020
7
One-stop Home Products Destination
Retail Space (230,814 sq.m.) Warehouse Space (255,178 sq.m.)
Branches
Sales Team
Call Center and Telesales
Website
International Suppliers Domestic Suppliers
Delivery Service
Repair and Maintenance Service
Home Installation Service
Design Center
Special Order
Target Customer Group
Home Products Services & Solution
Resellers(Wholesale)
Government Agencies and
State Enterprise
Contractorsand Projects
End-users(Retail)
Dohome Dohome To-Go
branches in operation
new branches within 2021
branches in operation106
87 new branches within 2020
7
Operating Results for 2Q2020
P&L Summary
2Q2019 2Q2020 Changes
THB mm % THB mm % THB mm %
Revenue from sales 4,442.8 98.5 4,571.6 98.5 128.8 2.9
Revenue from services 33.8 0.8 44.5 1.0 10.7 31.7
Other incomes 34.0 0.8 24.2 0.5 -9.8 -28.8
Total revenue 4,510.6 100.0 4,640.3 100.0 129.7 2.9
COGS 3,736.5 82.8 3,926.7 84.6 190.2 5.1
Gross profit (1)
740.1 16.5 689.4 14.9 -50.7 -6.9
Selling & Administrative expenses 455.5 10.1 474.5 10.2 19.0 4.2
Other expenses - - 0.04 0.001 0.04 N/A
EBIT 318.6 7.1 239.1 5.2 -79.5 -25.0
Interest expenses 75.9 1.7 57.3 1.2 -18.6 -24.5
Tax expenses 50.2 1.1 35.4 0.8 -14.8 -29.4
Net income 192.5 4.3 146.4 3.2 -46.1 -24.0
Depreciation & Amortization 102.8 2.3 117.5 2.5 14.7 14.3
EBITDA 421.4 9.3 356.6 7.7 -64.8 -15.4
Note: (1) Gross profit margin calculated based on revenue from sales and services9
18,576 18,445 17,869
4,477 4,616
0.2% -0.7%-3.1%
2017 2018 2019 2Q2019 2Q2020
Annual Revenue from Sales and Services Growth
Revenue from Sales and Services
THB mm
Key Changes
◼ SSSG was positive 0.4% YoY in 2Q2020 due to the company’s strategy to push sales through direct sales team and E-commerce during the temporary closure of retail space in the 8 large branches to compensate sale loss during the closure and the increase in revenue from all branches after the reopening
◼ In 2Q2020, total revenue from sales and services increased 3.1% YoY although there were the outbreak of COVID-19 pandemic and strict government measures to control the pandemic causing the temporary closure of retail space in 8 large branches from total of 10 large branches and all 6 Dohome To-Go branches. The revenue increase was due to:
➢ Positive SSSG of 0.4% YoY
➢ Additional revenue from new opening branches, namely Petchkasem branch and 6 Dohome To-Go branches as well as the revenue increase from the branches in the ramp-up phase
Note: (1) same store sales growth includes only the revenue from the branch that completed its full year operation.
Quarter Revenue from Sales and Services
10
Gross Profit and Gross Profit Margin
3,0172,684
2,958
740 689
16.2%14.6%
16.6% 16.5%14.9%
2017 2018 2019 2Q2019 2Q2020
Annual Gross Profit Gross Profit Margin
Key Changes
◼ Gross Profit Margin of 2Q2020 decreased to 14.9% from the Gross Profit Margin of 2Q2019 at 16.5% which was mainly from the temporary closure of retail area in the 8 large branches from total of 10 large branches and all Dohome To-Go as the results of pandemic of COVID-19. The closure of retail area caused a significant decrease in retail sales which generated higher gross profit margin. However, after the branches have reopened and operated as normal, the Company’s Gross Profit Margin came back to normal level.
THB mm / % to revenues from sales and services
Quarter Gross Profit
11
High Quality House Brand Products
15.6%17.1% 16.7% 16.8%
2018 2019 2Q2019 2Q2020
% to revenues from sales and services
Revenue Contribution from House Brand
House Brand Products
◼ The company gives high importance to product sourcing in order to obtain quality products at competitive prices
◼ The company has a House Brand development team to help ensure that a variety of product options are available for customers
◼ Conduct research to study the needs of customers and the competitive landscape in the market in order to optimize product selection
◼ 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
Furnitures and Home Decorations
Household Items
Tools and Hardwares
Light Bulbs
12
SG&A Expense
Key Changes
◼ Selling and administrative expenses of 2Q2020 increased by THB 19.0 mm or 4.2% YoY, which was mainly due to the increases of administrative employee’s expenses, depreciation from new branches (Petchkasem branch and Dohome To-Go), and delivery expense which was in line with higher revenue from direct sales.
◼ However, the allowance for doubtful accounts decreased in accordance with improved effectiveness of debt collection, as well as the expenses of utility and consumable material reduced in line with temporary branches closure and cost saving programs.
THB mm / % to revenues from sales and services
623 644 643
157 157
144223 252
65 74
333
364 369
93 99
163
162 147
34 44
85
160 93
2128
266
353375
85 72
1,614
1,907 1,879
455 474
8.7%10.3% 10.6% 10.2% 10.3%
2017 2018 2019 2Q2019 2Q2020
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)
(6)
33 10
4 (11)
13
EBITDA and Net Profit
1,8071,254
1,563
421 357
9.7%6.8% 8.7% 9.3% 7.7%
2017 2018 2019 2Q2019 2Q2020
EBITDA EBITDA Margin
EBITDA
931439
726 192 146
5.0%2.4% 4.0% 4.3% 3.2%
2017 2018 2019 2Q2019 2Q2020
Net Profit Net Profit Margin
Net Profit
EPS(THB)
0.90 0.31 0.45 0.14 0.08
THB mm / % to total revenue
THB mm / % to total revenue
14
Balance Sheet at a Glance
31 December 2019 30 June 2020
Assets THB mm % THB mm %
Cash and Cash Equivalents 204.0 1.1 260.9 1.4
Accounts Receivable and Other Receivables 859.9 4.7 832.8 4.4
Inventory 7,048.2 38.8 7,262.7 38.7
Property, Plant and Equipment 9,705.3 53.5 9,968.8 53.1
Right of Use - Assets - - 357.4 1.9
Others 334.3 1.8 91.0 0.5
Total Assets 18,151.7 100.0 18,773.6 100.0
Liabilities
Bank Overdrafts and Short-term Loan 5,731.7 31.6 5,209.4 27.8
Accounts Payable and Other Payables 2,488.2 13.7 2,912.2 15.5
Right of Use - Liabilities - - 198.1 1.1
Long-term Loan and Financial Lease Liabilities 3,339.1 18.4 3,578.0 19.1
Others 132.3 0.7 157.1 0.8
Total Liabilities 11,691.3 64.4 12,054.8 64.2
Shareholder’s Equity
Issued and Paid-Up Capital 1,856.2 10.2 1,856.2 9.9
Premium on Share Capital 3,647.0 20.1 3,647.0 19.4
Retained Earnings 1,549.7 8.5 1,830.0 9.8
Others -592.4 -3.3 -614.4 -3.3
Total Shareholder’s Equity 6,460.4 35.6 6,718.8 35.8
15
Key Financial Highlight
Financial RatiosCash Cycle
L/E
Current Ratio
ROECash Cycle
InventoryDays
APDays
ARDays
16
128 118 130 131 123
2017 2018 2019 2Q2019 2Q2020
158149
162 163 163
2017 2018 2019 2Q2019 2Q2020
20 19 17 18 18
2017 2018 2019 2Q2019 2Q2020
0.8 0.80.9 0.9 1.0
2017 2018 2019 2Q2019 2Q2020
3.1
2.5
1.8 1.8 1.8
2017 2018 2019 2Q2019 2Q2020
50 49 49 50 58
2017 2018 2019 2Q2019 2Q2020
21.7%
9.2%11.2% 11.2%
9.1%
2017 2018 2019 2Q2019 2Q2020
Business Outlook
Existing: Large Future: Large
(10 stores) New (3 stores)
Ubon Ratchathani 3Q20: Surin
Nakhon Ratchasima 3Q20: Map Ta Phut, Rayong
Rangsit 1Q21: Laem Chabang, Chon Buri
Khon Kaen
Udonthani
Rama II
Bang Bua Thong
Chiang Mai
Bangna
Phetkasem
Existing: To-Go Future: To-Go
(8 stores) New (7 stores)
Makro Charansanitwong 3Q20: Thaisomboon Market
Makro Sathorn 3Q20: Ruaysub Market
Big C Bang Phli 4Q20: Thairungthip Market
Tesco Lotus Korat 4Q20: 4 Branches
Pantip Ngamwongwan
Tesco Lotus Bangna
Cosmo Walk
Chatchawan Market
Existing Branches and Future Branch Expansion
As of 30 June 2020
Chiang Mai
Udonthani
Khon Kaen
Ubon Ratchathani
Nakhon Ratchasima
Bang Bua Thong
Map Ta Phut, Rayong
Bangna
Rama 2
Rangsit
Phetkasem
Surin
Laem Chabang, Chon Buri
Dohome To-GoExisting: 8 Stores
Large Store Branches
18
New: Dohome Surin Branch (Opened)
19
Location 483 Moo 10, Nok Mueang Subdistrict, Mueang District, Surin Province 32000
Store Area 26,445 Sq.m.
Opening 27 July 2020
New: Dohome Map Ta Phut Branch (3Q2020)
20
Location Map Ta Phut Subdistrict, Mueang Rayong District, Rayong
Opening 3Q2020
Map Ta Phut
New: Dohome Laem Chabang Branch (1Q2021)
21
Location Bang Lamung Subdistrict, Bang Lamung District, Chonburi Province
Opening 1Q2021
3rd phase of the Laem Chabang
Seaport
1
New: Dohome To-Go 2 Branches (Opened)
Location Cosmo Walk
Opening 2 June 2020
Location Chatchawan Market
Opening 24 June 2020
22
2
31 2
New: Dohome To-Go 3 Branches (3Q – 4Q/2020)
Location Ruaysub Market
Opening 3Q2020
Location Thairungthip Market
Opening 3Q2020
Location Thaisomboon Market
Opening 4Q2020
23
Q&A
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