Company Presentation

Dohome Public Company Limited 05 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 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% 14.6% help ensure that a variety of 14.4% 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

9 High Quality House Brand Products

Examples of House Brand Products with Thai Industrial Standards

10 Distribution Center

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. 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

11 Managing 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.

12 Increase 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

13 Increase Other Income by Managing Leasable Space

Retail Area:

14 Increase Other Income by Managing Leasable Space

Retail Area: Bangna

15 Increase Other Income by Managing Leasable Space

Retail Area: Retail Area:

16 Increase Other Income by Managing Leasable Space

Retail Area: Phetkasem

17 Increase Other Income by Managing Leasable Space

Warehouse Area: Phetkasem

Udon Thani Rama 2 Chiang Mai

Khon Kaen Bang Bua Thong Bangna

18 SG&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 10 353 1,614 375 (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.

19 Improving 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 .

20 Improving Marketing Effectiveness

Digital Channel

Social Commerce e-Marketplace

Dohome’s Social Admin Chat & Shop

21 EBITDA 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 0.90 0.31 0.46 0.04 0.08 (THB)

22 Balance 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

23 Key Financial Highlight

Cash Cycle Financial Ratios

0.9 0.8 20 18 17 0.8 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 Inventory 156 Days 147 2017 2018 2019

21.7%

2017 2018 2019 11.2% 9.2% 126 116 127 ROE Cash Cycle

2017 2018 2019 2017 2018 2019

24 Business 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,

Large Store Q4/20: Bang Lamung, Chon Buri

Branches Ubon Ratchathani Khon Kaen

Nakhon Ratchasima Udonthani Rama II Rangsit Surin Bang Bua Thong Bang Bua Thong Thepharak Chiang Mai Phetkasem 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

26 Ubon 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

27 Nakhon Ratchasima Branch

New Motorway Construction Linking 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

28 Rama 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 Province 74000 lanes Opening December 2014

29 Bang 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. 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)

30 Chiangmai Branch

Key Information 88 Soi 8, Saraphi Subdistrict, Saraphi Location • Super Highway Chiangmai – was District, Chiang Mai Province 50140 widen both inbound and outbound road into eight lanes (completed in October 2019) Opening December 2015

31 Phetkasem Branch

Phetkasem Road

88/88 Village No. 11, Subdistrict, Key Performance ▪ Location Samut Sakhon Gross Profit Margin: 18% – 20% ▪ Province 74130 Positive EBITDA: approximately at THB 1.XX mm per month Opening 1 November 2019 Key Information • Rama II Road is under construction to widen both inbound and outbound road into eight lanes 32 Phetkasem 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

33 Surin 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

34 Map 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 THB 55 Phut Map Ta Phut 2025 billion Seaport The -Map THB 14 2020 Ta Phut Motorway billion

35 Bang 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 city and MRO 2023 the Laem billion Chabang center Seaport 1st phase of the THB 0.5 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

36 Eastern Thailand

Dohome plans to capture all strategic area in Eastern Thailand

Bang Lamung

Map Ta Phut

37 Eastern Thailand Outlook

38 Dohome 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

39 Dohome 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, Location • Population in is over District, Nonthaburi 11120 300,000 people and more than 30 million visitors / year. Opening Q2 / 2020

40 Q&A