ANNUAL REPORT 2013 รายงานประจำป 2556 บริษัท ออฟฟศเมท จำกัด (มหาชน) PAGE Financial Highlight 002 Corporate Vision 005 Message from Board of Director 006 Directors and Management 008 Vision and Business Structure 045 Nature of Business 050 Management Discussion and Analysis CONTENT 058 Dividend Policy 064 Shareholders 065 Risk Factors 067 Management 070 Good Corporate Governance 080 Corporate Social Responsibility 099 Connected Transactions 104 Internal Control and Risk Management 110 Report of the Audit Committee 114 General Information 116 Store Location 117 ANNUAL REPORT 2013 1 FINANCIAL HIGHLIGHTS Operating Results (unit : Bt.mil) Separated Consolidated Proforma 2011 2012 2013 2011 2012 2013 2012 Revenue from sale 1,219 1,625 2,314 5,747 6,684 8,509 8,284 Total revenues 1,273 1,694 2,601 6,113 7,177 9,120 8,844 Cost of sale of goods 954 1,258 1,850 4,434 5,157 6,560 6,396 Selling and administrative expenses 255 376 506 1,417 1,623 2,046 2,007 Total expenses 1,210 1,635 2,365 5,857 6,785 8,606 8,407 Net Profit 46 45 209 121 272 409 309 Basic Earning Per Share (Baht) 0.53 0.52 0.65 0.50 1.18 1.28 Dividen Per Share (Baht) 0.22 0.08 - - 1.21 0.50 Financial Position (unit : Bt.mil) Separated Consolidated Proforma 2011 2012 2013 2011 2012 2013 2012 Current assets 327 402 708 2,298 2,393 2,799 2,393 Non-current assets 166 9,556 9,638 583 4,012 4,162 4,012 Total assets 493 9,958 10,346 2,881 6,405 6,961 6,405 Current liabilities 235 684 946 1,545 2,078 2,311 2,078 Non-current liabilities 14 10 6 20 87 82 87 Total liabilities 249 693 952 1,565 2,166 2,394 2,166 Issued and paid-up share capital 80 320 320 1,332 320 320 320 Total Equity 244 9,263 9,394 1,316 4,239 4,803 4,239 Book Value Per Share (Baht) 3.04 28.95 29.36 0.99 13.25 14.27 13.25 2 ANNUAL REPORT 2013 Key Financial Ratios Separated Consolidated Proforma Unit 2011 2012 2013 2011 2012 2013 2012 Liquidity Ratio time 1.39 0.59 0.75 1.49 1.15 1.21 1.15 Average Collection Period days 29.50 28.80 31.48 13.82 12.87 12.40 10.38 Average Selling Period days 40.69 41.78 37.42 69.96 74.57 73.44 60.13 Average Payment Period days 69.82 65.51 71.62 96.47 100.23 97.93 80.81 Gross Profit Margin % 21.74 22.61 20.07 22.86 22.84 22.91 22.79 Net Profit Margin % 3.61 2.78 9.04 1.98 4.07 4.80 3.73 Return on Equity % 18.28 0.95 2.24 9.63 9.79 9.04 11.13 Return on Assets % 9.83 0.86 2.06 4.27 5.85 6.12 6.66 Debt to Equity Ratio time 1.02 0.07 0.10 1.19 0.51 0.50 0.51 ANNUAL REPORT 2013 3 Revenue Breakdown 2013 * Proforma Report FY2012 compared to Consolidated Report FY2013 4 ANNUAL REPORT 2013 VISION AND MISSION - Participate in social development and environment Corporate Vision protection Mission Value - To develop and integrated the new technology to the - Customer is the most valuable asset of the Company business management - To develop and enhance the staff’s learning continuously Culture - Respect and make a good relationship to the customers - Be right, transparent, and fair - Enhance the efficiency and effectiveness of procurement - Enhance the working atmostsphere with joy, happiness system to the customers and well life quality - Respect to social and environment Business Strategies - Initiate the high technology and knowledge to the use of internal process and to service the customers - Apply e-Learning to practice the Company’s human resources - Apply the Relation Management to the customers and suppliers - Customer is the learning center for the Company’s sustainable development - Launch the modern technology to increase the potential of procurement system to the customers such as e-procurement and e-Community Commerce ANNUAL REPORT 2013 5 MESSAGE FROM CHAIRMAN Following on from the Company’s merger with the comprising of 8 OfficeMate stores and 11 B2S Central Group – Thailand’s leading retail business stores. As a result, it has successfully fulfilled operator – in 2012 yearend, OfficeMate Public the Company’s vision and mission to better reach Company Limited has nowadays thrived to become and cater to the diverse demands of customers a true leader in stationery supplies, books, office nationwide. and recreation equipment. The Company’s full range Following the customers’ continuously evolving of product lines is made available through diverse shopping pattern which tends to look for more distribution channels ranging from online, call product alternatives and convenience, the year 2013 centre to physical shops which include as many as saw another milestone achievement for OfficeMate 134 OfficeMate and B2S stores covering strategic Public Company Limited – a launching of online locations nationwide. Plus, in order to best respond business via www.central.co.th and www.robinson. to the future rapid growth, OfficeMate’s expanded co.th. Indeed, these two brand-new online shopping warehouse, which was fully completed in mid 2013, channels are believed to better cater to the demands is currently able to better cater to market’s demand thanks to an over 15,000-sq.m. area which can comfortably accommodate over 40,000 first-rated products. Against an unpromising backdrop of economic recession, coupled with effects caused by reorganisation during an initial stage of business integration, OfficeMate Public Company Limited has managed to attain a satisfactory working performance. As of 2013 yearend, the Company was able to achieve total revenues of 9,120 million baht, an increase by 3% and net profit of 409 million of modern-day consumers and hence enabling baht, a rise by 32% from the previous annum. This them to choose and shop their desirable products resounding success is a fruitful outcome of the from Thailand’s leading department store at their Company’s implementation of Customer Relationship fingertips. During an initial stage, the Company plans Management (CRM) with both customers and to have on offer over 8,000 products ranging from alliances, on par with its continuous technology cosmetics, clothes to kitchen electrical equipment. development so as to enhance purchase order Besides, through this new online shopping channel, efficiency. As such, OfficeMate Public Company customers will also enjoy the free delivery service Limited is able to precisely respond to customers’ for 499-baht spending. In doing so, OfficeMate demand in products, prices, on par with adopting Public Company Limited strongly believes that it suitable marketing campaigns. Furthermore, the will be able to generate increasing revenues in the merger not only have solidified the Company both future. in terms of business competitiveness and financial Aside from its commitment in business excellence, status, but have also enabled a more efficient OfficeMate Public Company Limited has also placed expense management thanks to its advantageous a key emphasis on social responsibility. As such, Economies of Scale (EOS). Besides, taking a closer the year 2013 saw the Company’s implementation look at the Company’s stores expansion plan, the of numerous worthwhile campaigns in education, year6 2013ANNUAL saw an REPORTinauguration 2013 of 19 new outlets, environment, public health and community highest level of integrity, transparency and fairness development. For instance, through the “OfficeMate for all stakeholders concerned. & B2S Delivery” campaign, which has been Looking ahead in 2014, OfficeMate Public Company consecutively organised for the 7th year running, Limited also aims to continue its clear, focused the Company has presented a library for Wat Bua Roi School in Samut Prakan Province. Besides, OfficeMate Public Company Limited, in partnership with a radio station under the aegis of the Nation Group, business expansion plan. To this end, new product introduction, along with distribution channel will be adjusted so that the Company will be able also participated in presenting audio files for to maintain its leadership position in online retail visually-impaired children. Having continuously business and digital content, on par with gearing committed to social responsibility, on par with towards becoming the electronics resource centre in encouraging members of the management team both education and entertainment. In keeping with and staff to take part in returning benefits and that, the Company also plans to constantly develop contributing to Thai society, OfficeMate Public its organisation in order to better cater to future Company Limited believes that it will help pave changes and economic expansion upon the launch way for the Company’s future sustainable growth. of ASEAN community. This is not to mention its Furthermore, OfficeMate Public Company Limited strong emphasis on service quality enhancement so has always committed to continuously pushing as to enable customers, traders and the Company forwards its business excellence strictly as per good to enjoy the maximum benefits. corporate governance. As such, in 2013, the Company Finally, on behalf of the management team, was rated at a “Very Good” level, for the second may I extend my warm thanks for shareholders, consecutive year, from the Corporate Governance esteemed customers, every business partner, along Report of Thai Listed Companies organised by with every staff for your confidence and continued the Thai Institute of Directors Association (IOD). kind supports. Thank to our efficient management, Besides, the Company also received an “Excellent” constant development and good corporate rating in the assessment of quality of the Annual governance, the Company firmly believes that it Ordinary General Meeting of Shareholders by the will be able to thrive towards becoming a firmly- Thai Investors Association.