Company Presentation

Dohome Public Company Limited

Table of Contents

Dohome Business Overview1

Operating Results for 1Q20202

Business Outlook3

Business Updated during COVID-19 Situation4

1

Dohome Business Overview

Dohome Business Overview

As of 31 March 2020

3

One-stop Home Products Destination

Retail Space (229,517 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

684 new branches within 2021

3

Operating Results for 1Q2020

P&L Summary

1Q2019 1Q2020 Changes

THB mm % THB mm % THB mm %

Revenue from sales 4,909.5 98.6 4,543.3 98.3 -366.2 -7.5

Revenue from services 40.3 0.8 35.1 0.8 -5.2 -12.9

Other incomes 30.5 0.6 43.5 0.9 12.9 42.4

Total revenue 4,980.2 100.0 4,621.8 100.0 -358.5 -7.2

COGS 4,139.2 83.1 3,871.6 83.8 -267.7 -6.5

Gross profit (1)

810.5 16.4 706.8 15.4 -103.7 -12.8

Selling & Administrative expenses 453.4 9.1 464.1 10.0 10.7 2.4

Other expenses 3.1 0.1 0.1 0.0 -3.0 -96.6

EBIT 384.5 7.7 286.0 6.2 -98.5 -25.6

Interest expenses 76.5 1.5 64.4 1.4 -12.0 -15.8

Tax expenses 61.4 1.2 44.3 1.0 -17.1 -27.8

Net income 246.7 5.0 177.3 3.8 -69.4 -28.1

Depreciation & Amortization 100.4 2.0 118.0 2.6 17.6 17.5

EBITDA 484.9 9.7 404.0 8.7 -80.9 -16.7

Note: (1) Gross profit margin calculated based on revenue from sales and services5

Revenue Contribution by Product Group

47.3% 48.1% 44.4% 47.0% 43.0%

36.2% 35.3% 37.5% 37.0% 39.0%

16.5% 16.6% 18.1% 16.0% 18.0%

2017 2018 2019 1Q2019 1Q2020

Construction Materials Repair & Maintenance Home Decoration

% to revenues from sales and services

Key Changes

◼ Sales from construction material and repair & maintenance product group of 1Q2020 dropped 16.0% YoY and 2.7% YoY, respectively, while sales growth from home decoration product group slightly rose 6.3% YoY.

◼ As a result, sales contribution from construction material product group dropped to 43.0% while the contribution from repair & maintenance and home decoration product group rose to 39.0% and 18.0%, respectively.

6

18,576 18,445 17,869

4,950 4,578

0.2% -0.7%-3.1%

2017 2018 2019 1Q2019 1Q2020

Annual Revenue from Sales and Services Growth

Revenue from Sales and Services

THB mm

Key Changes

◼ Revenue from sales and services of 1Q2020 was down by 7.5% YoY, which was mainly from

➢ the temporary closure of 8 large branches and 6 Dohome To-Go for 10 days in 1Q2020 due to outbreak of Coronavirus disease 2019 (COVID-19) and the government’s epidemic prevention measures. Thus, revenue from POS significantly decreased during the ten days period.

➢ the slowdown in the country’s economy.

For all the reason above, same store sales growth (1) was negative 9.9% YoY.

◼ However, revenues from branches in the ramp-up phase continue to increase, despite being affected from the outbreak of Coronavirus disease.

Note: (1) same store sales growth is considered only the revenue from branch which completed its full year operation.

Quarter Revenue from Sales and Services

7

Gross Profit and Gross Profit Margin

3,0172,684

2,958

810 707

16.2%14.6%

16.6% 16.4%15.4%

14.9% 15.4%

2017 2018 2019 1Q2019 1Q2020

Annual Gross Profit Gross Profit Margin Normalized Gross Profit Margin

Key Changes

Changing the accounting policies on the provision for obsolete and slow-moving of inventory in 1Q2019 results in the decrease of THB 73.3 mm in cost of goods sold in 1Q2019 due to the reversal of provision. However, if consider gross profit margin without the impact from change in accounting policies, normalized gross profit margin of 1Q2019 would be 14.9% which was lower than gross profit margin of 1Q2020 at 15.4%

Normalized Gross Profit Margin of 1Q2020 increased from 14.9% to 15.4% YoY due to:

◼ Increasing sales contribution from repair & maintenance and home decoration product group

◼ Increasing in house brand products revenue contribution

◼ Increasing in revenue from distribution center which started to cover cost

THB mm / % to revenues from sales and services

Quarter Gross Profit

8

High Quality House Brand Products

14.4%16.0%

14.5%17.3%

2018 2019 1Q2019 1Q2020

% 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 136 certifications issued by Thai Industrial Standard

Tools and Hardware

Bathroom

Furniture and Home Decoration

Home Appliances and Light Bulbs

Distribution Center

Distribution Center

◼ Located in Pathum Thani and began operation in June 2018

◼ Total warehouse area of 41,580 sq.m. (50% Utilization after 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 cost which would reduce cost of goods sold

Receiving

Picking

Dispatching

Suppliers

Cross dock

Store

Customers Stores

Inventory Management at the Distribution Center

10

SG&A Expense

Key Changes

◼ Selling and administrative expenses of 1Q2020 increased by THB 10.7 mm or 2.4% YoY, which was mainly due to the increase of administrative employee’s expenses according to the restructuring of organization and the increase in depreciation due to the opening of Petkasem branch.

THB mm / % to revenues from sales and services

623 644 643

162 158

144223 252

55 71

333

364 369

91 104

163

162 147

41 41

85

160 93

1412

266

353375

90 78

1,614

1,907 1,879

453 464

8.7%10.3% 10.6%

9.2% 10.1%

2017 2018 2019 1Q2019 1Q2020

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

6 (5)

11

EBITDA and Net Profit

1,8071,254

1,563

485 404

9.7%6.8% 8.7% 9.7% 8.7%

2017 2018 2019 1Q2019 1Q2020

EBITDA EBITDA Margin

EBITDA

931439

726 247 177

5.0%2.4% 4.0% 5.0% 3.8%

2017 2018 2019 1Q2019 1Q2020

Net Profit Net Profit Margin

Net Profit

EPS(THB)

0.90 0.31 0.45 0.18 0.10

THB mm / % to total revenue

THB mm / % to total revenue

12

Balance Sheet at a Glance

31 December 2019 31 March 2020

Assets THB mm % THB mm %

Cash and Cash Equivalents 204.0 1.1 80.4 0.4

Accounts Receivable and Other Receivables 859.9 4.7 944.6 5.2

Inventory 7,048.2 38.8 7,046.4 38.8

Property, Plant and Equipment 9,705.3 53.5 9,694.0 53.4

Right of Use - Assets - - 282.1 1.6

Others 334.3 1.8 110.3 0.6

Total Assets 18,151.7 100.0 18,157.8 100.0

Liabilities

Bank Overdrafts and Short-term Loan 5,731.7 31.6 5,139.5 28.3

Accounts Payable and Other Payables 2,488.2 13.7 2,658.3 14.6

Right of Use - Liabilities - - 179.7 1.0

Long-term Loan and Financial Lease Liabilities 3,339.1 18.4 3,413.9 18.8

Others 132.3 0.7 186.1 1.0

Total Liabilities 11,691.3 64.4 11,577.5 63.8

Shareholder’s Equity

Issued and Paid-Up Capital 1,856.2 10.2 1,856.2 10.2

Premium on Share Capital 3,647.0 20.1 3,647.0 20.1

Retained Earnings 1,549.7 8.5 1,683.6 9.3

Others -592.4 -3.3 -606.5 -3.3

Total Shareholder’s Equity 6,460.4 35.6 6,580.3 36.2

13

Key Financial Highlight

Financial RatiosCash Cycle

L/E

Current Ratio

ROECash Cycle

InventoryDays

APDays

ARDays

21.7%

9.2%11.2% 10.0%

2017 2018 2019 1Q2020

126 116 127 131

2017 2018 2019 1Q2020

156147

159 163

2017 2018 2019 1Q2020

20 18 17 18

2017 2018 2019 1Q2020

49 49 49 50

2017 2018 2019 1Q2020

0.8 0.80.9 0.9

2017 2018 2019 1Q2020

3.1

2.5

1.8 1.8

2017 2018 2019 1Q2020

14

Business Outlook

Existing: Large Future: Large

(10 stores) New (3 stores)

Ubon Ratchathani Q3/20: Surin

Nakhon Ratchasima Q3/20: Map Ta Phut, Rayong

Rangsit Q4/20: Laem Chabang, Chon Buri

Khon Kaen

Udonthani

Rama II

Bang Bua Thong

Chiang Mai

Bangna

Phetkasem

Existing: To Go Future: To Go

(6 stores) New (5 stores)

Makro Charansanitwong Q2/20: Cosmo Walk

Makro Sathorn Q2/20: Chatchawan Market

Big C Bang Phli Q2/20: Thaisomboon Market

Tesco Lotus Korat Q3/20: Ruaysub Market

Pantip Ngamwongwan Q3/20: Thairungthip Market

Tesco Lotus Bangna

Existing Branches and Future Branch Expansion

As of 31 March 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: 6 Stores

Large Store Branches

16

1 2 3

4 5

New: Dohome To Go 5 Branches

Location Ruaysub Market

Opening Q3/20

Location Thairungthip Market

Opening Q3/20

Location Cosmo Walk

Opening Q2/20

Location Chatchawan Market

Opening Q2/20

Location Thaisomboon Market

Opening Q2/20

17

Business Updated 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 DohomeTo-Go

corporate strategy to reduce the business impacts during COVID-19 situation as follows

1. Focusing on services through online channel (E-Commerce) and direct phone channel (Back Office) as well as delivery to customer’s home.

2. Maintaining profitability and financial status by reduced the expenses and delayed some expense

3. Considering credit customer more tightly

4. Taking care our employees such as

❖ Service staff needs to wear a face mark while working

❖ Providing body temperature examination

❖ Changing of appropriate working time for employee attendance, to reduce the risk of travelling in rush hours and congestion.

❖ Making life insurance (COVID-19) for employees

Dohome’s Current Status and Corporate Strategy

19

Dohome’s Current Status and Corporate Strategy

20

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

21

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

22

Certificates to ensure public hygiene standards

Our 10 large branches, 6 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

Q&A