ANNUAL REPORT 2016 ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED WWW.ROBINSON.CO.TH ANNUAL REPORT 2016 CONTENTS 05 Vision and Mission 10 Message from Chairman and President 18 Financial Highlights 44 21 Dividend Policy 5 Years Major Development 45 23 Organization Chart Structure of the Company and Its Subsidiaries 46 Management Structure 111 55 Statement of Corporate Governance the Directors Responsibility 79 112 Board of Directors and Connected Transactions Managements 117 99 Management Discussion 26 Corporate Social Responsibility and Analysis Nature of Business 105 120 34 Internal Control Independent Auditor Report Risk Factors and Risk Management and Financial Statements 41 108 207 Shareholder Structure Report of the Audit Committee General Information TO PUT OUR CUSTOMERS, EMPLOYEES AND SUPPLIERS AT THE HEART OF OUR BUSINESS DECISIONS Vision To profitably grow our market share Mission To put our customers employees and suppliers at the heart 1 of our business decisions To be locally relevant in our merchandising 2 offering and our shopping experience To increase sales by attracting new customers, expanding 3 our customer base and increasing customer spend 4 To make retail more than just shopping 5 To invest in the future growth of our stores and people A Professional and Entrepreneurial 6 approach by our management team Attracting, retaining and growing the most 7 talented people in the Retail Industry Exceeding the expectations of our 8 shareholders, customers and employees AIN RETAI MORE THAN UST SHOPPING And with the rise of prevalent health trends, health and sport enthusiasts will find delight in our Fitbo - the latest trendy fitness center which is well - equipped with a team of professional trainers. Alternatively, you can always opt for a refreshing chilled drink from our vending machine. Apart from your well - being, your eyesight is of equal significance. Therefore, an eye test is available on par with a useful advisory service on choosing the right brandname eyeglasses that best suit your face shape and dressing styles. Plus, thanks to the Store’s free ear piercing service. So, let’s come and enjoy a new height of shopping experience at Robinson because here we pay attention to all aspects of your diverse demands and we do believe that you are important Come and enjoy a new height of shopping experience you would not be surprised if a waft of at Robinson because here we pay attention No you can just completely aromatic coffee greets your nostrils forget an image of an oldschool while you are browsing for your desirable to all aspects of your diverse demands shopping mall here you can products. Indeed, here at Robinson, and we do believe that you are important only see a myriad of products there is a wide selection of stylish cafes where you can just unwind midst cozy all around you as e are no light and indulge in your favorite drink inviting you to shop and chill in with a piece of tasty pastry or cake. a stylish shopping venue. Whether waiting for your shopping duo or get-gathering with friends, Robinson Thanks to a concept of bringing can also perfectly serve as your meeting together everything that can best venue. Besides, for those of you who ealth and sport responds to diverse lifestyles of every encounter mental block, you may enthusiasts generation, Robinson is guaranteed changing your working place here at will find delight Robinson and, who knows, you might in our itbox to be your ultimate shopping venue come up with brilliant ideas. What’s where your happiness will soar once more, we have on hand numerous you step in. With a firm belief that charging stations and, hence, you can customers should have the maximum keep working while listening to music, satisfaction during their shopping surfing Youtube, uploading your photos experiences, on Instagram or posting your updated Facebook status until the store closes. 2016 AIN RETAI MORE THAN UST SHOPPING And with the rise of prevalent health trends, health and sport enthusiasts will find delight in our Fitbo - the latest trendy fitness center which is well - equipped with a team of professional trainers. Alternatively, you can always opt for a refreshing chilled drink from our vending machine. Apart from your well - being, your eyesight is of equal significance. Therefore, an eye test is available on par with a useful advisory service on choosing the right brandname eyeglasses that best suit your face shape and dressing styles. Plus, thanks to the Store’s free ear piercing service. So, let’s come and enjoy a new height of shopping experience at Robinson because here we pay attention to all aspects of your diverse demands and we do believe that you are important Come and enjoy a new height of shopping experience you would not be surprised if a waft of at Robinson because here we pay attention No you can just completely aromatic coffee greets your nostrils forget an image of an oldschool while you are browsing for your desirable to all aspects of your diverse demands shopping mall here you can products. Indeed, here at Robinson, and we do believe that you are important only see a myriad of products there is a wide selection of stylish cafes where you can just unwind midst cozy all around you as e are no light and indulge in your favorite drink inviting you to shop and chill in with a piece of tasty pastry or cake. a stylish shopping venue. Whether waiting for your shopping duo or get-gathering with friends, Robinson Thanks to a concept of bringing can also perfectly serve as your meeting together everything that can best venue. Besides, for those of you who ealth and sport responds to diverse lifestyles of every encounter mental block, you may enthusiasts generation, Robinson is guaranteed changing your working place here at will find delight Robinson and, who knows, you might in our itbox to be your ultimate shopping venue come up with brilliant ideas. What’s where your happiness will soar once more, we have on hand numerous you step in. With a firm belief that charging stations and, hence, you can customers should have the maximum keep working while listening to music, satisfaction during their shopping surfing Youtube, uploading your photos experiences, on Instagram or posting your updated Facebook status until the store closes. 2016 ROBINSON SUUI GREEN RUN i n i o is nss in os s onsion ROBINSON SKI GREEN RN In addition, over 20 volunteers, oisin o nn n ss o Con o no nni n i o i soin o Si Moo Tin Co L s s sos o nni oin n in o Sio i Soo oin n sins n os s Wn i n i o is nss in os s Yi n M N Noi Nion os ss Sio isi onsion oinson in nsi i Si Moos Kanchanaburi Province. The campaign, organised with an aim to Tin Co L onis oinson Si n n siios osion o Ms n Siiis inion sssion in ooin Mos Fooin on o “Run for the Tree: One Runner is Birthday on 12 August 2016, was largely enjoy by all. Not only Equal to One Tree”, is CS ii ini i nns oi in osion iiis nioni o ii in 5 n 10 nnin so onsi n o oninin o o sion o sssion sinos on Sn 10 2016 17 Ti os s in oi o Robinson Suzuki Green nnin s oss ino A in s n o on on i s oin sin Run in on o 17000 nnin nsiss Ls o n 1 Runner 1 Tree ROBINSON SUUI GREEN RUN i n i o is nss in os s onsion ROBINSON SKI GREEN RN In addition, over 20 volunteers, oisin o nn n ss o Con o no nni n i o i soin o Si Moo Tin Co L s s sos o nni oin n in o Sio i Soo oin n sins n os s n i n i o is nss in os s Yi n M N Noi Nion os ss Sio isi onsion oinson in nsi i Si Moos Kanchanaburi Province. The campaign, organised with an aim to Tin Co L onis oinson Si n n siios osion o Ms n Siiis inion sssion in ooin Mos Fooin on o “Run for the Tree: One Runner is Birthday on 12 August 2016, was largely enjoy by all. Not only Equal to One Tree”, is CS ii ini i nns oi in osion iiis nioni o ii in 5 n 10 nnin so onsi n o oninin o o sion o sssion sinos on Sn 10 2016 17 Ti os s in oi o Robinson Suzuki Green nnin s oss ino A in s n o on on i s oin sin Run in on o 17000 nnin nsiss Ls o n 1 Runner 1 Tree Message from Chairman and President For the past 37 years, the Company has remained steadfast in our commitment to profitably grow our market share whilst investing in our people and local communities. During 2016 we were continually challenged by a slowing economy, natural disasters in the south of Thailand and threats to our business from new Retail Players and On Line business. However, we were able to meet our Annual Business Objectives and continue The Transformation of our business to exceed the expectations of our Shareholders, Customers and Employees. We have a much clear vision of the future by structuring our Retail Business into 4 Segments: 1. Department Stores 2. Lifestyle Malls 3. Brand Management 4. Vietnam Each of the above Business Units is effectively managed by key professionals with experience in their relevant business field and Financial KPI’s to achieve.