2016 in review - listed companycol.listedcompany.com/misc/presentations/20170407-ofm...enhance...
TRANSCRIPT
2016 in Review
Summary of the Company’s business results
2016 Financial Highlights
Total Revenue Sales Revenue Gross Profit Net Profit
10,824 11,785
10,035 10,840
2,444 2,685
394 384
Unit: million THB 8.8%
8.0%
9.9%
2.4%
2015 2016 2015 2016 2015 2016 2015 2016
Total Revenue Sales Revenue Gross Profit Net Profit to Company
Sales Revenue
by Business Unit
Gross Profit Margin
2015 2016
24.4% 24.8% OfficeMate
B2S
Online
2015: 60% 2016: 60%
2015: 37% 2016: 36%
2015: 3% 2016: 4%
2016 Key Highlights – OfficeMate (1/6)
9 New Stores
•Bangkok
• CPN Eastville
• CPN Pinklao
• Big C Huamark
• Big C Bangplee
• Big C Suksawat
•Upcountry
• RBS Supanburi
• RBS Kanjanauburi
• Tesco Phitsanulok
• CPN Nakornsri-
thammarat
3 Relocated Stores • Tukcom Sriracha
• CPN Chaengwattana
• Futuremart Rama3
New
Stores 9
Total
Stores 64
2016 Key Highlights – OfficeMate (2/6) E
-Pro
cure
me
nt
Se
min
ar
Ne
w C
ata
log
New Call Center Office at Huamark
2016 Key Highlights – OfficeMate (3/6)
The Best Facilities
Contact Center Award
รางวลัสถานที่ปฎบิัตงิานและสภาพแวดล้อมยอดเยีย่ม
Thailand Best Contact Center 2016
Content Award Winning
on Social Media
Corporate Awards in 2016
2016 Key Highlights – OfficeMate (4/6)
Marketing Activities & Events
Partnership with others TOPS Hamper Project
New store event at Baan & Suan Fair
Click & Collect in 40 stores
2016 Key Highlights – OfficeMate (5/6)
Own Brand Business
Brand ONE SOHO by Furradec Furniture Catalog
2016 Key Highlights – B2S Vietnam
Setting up business in Vietnam - the first international business expansion
Store Non-Store
Telesales Website Direct
Sales Rep
VN
VN
Soft opening B2S store in Vietnam “B2S” business in Vietnam
2016 Key Highlights – B2S (1/4)
New
Stores 7
Total
Stores 99
7 New Stores
•Bangkok
• Tops Nanglinchee
• CPN Eastville
• JAS Srinakarin
• Platform Ladya
•Upcountry
• Huahin Market Village
• RBS Lopburi
• CPN Nakronsrithammarat
2016 Key Highlights – B2S (2/4)
2016 Key Highlights – B2S (3/4)
Think Space @ Central Eastville The First Flagship B2S Store and the Largest in Southeast Asia
• Awarded “The Best Bookshop in Bangkok” by MONOCLE
magazine .
• Awarded Top Popular Brand of Year 2016 by Famous
community page of Thailand (Brand Buffet , Soimilk)
2016 Key Highlights – B2S (4/4)
Demonstration Roadshow
Plentiful Varieties for Young Readers
MOU signed on April 5, 2016
Sustainable read & learn support through “The 1Book E-Library”
2016 Key Highlights – Online (1/2)
Highlighted campaigns in 2016 Examples of new brands introduced in 2016
O2O Campaigns
Online Exclusive & The 1 Card Deals
New brands introduced and marketing activities
2016 Key Highlights – Online (2/2)
Available at 71 locations nationwide
Locations
BTS
SKYBOX
Locations
Locations
21
43
7
UPC
33% BKK
67%
UPC
77%
BKK
23%
BKK
100%
Launched “Click & Collect” service as part of an omni-channel retailing experience
2016 Key Highlights – Corporate Governance
Received 4-star “Very Good” CG Rating from the Thai Investors
Association
Submitted application to become a member of Thailand's Private
Sector Collective Action Coalition Against Corruption (CAC)
“Good” rating and score for the 2016 Annual General Meeting of
Shareholders (AGM) from the Thai Investors Association
2017 Business Plan
Dawn of the new growth era
• New Business Fulfilment
Enhance existing logistic to serve as “3Parties Logistic with complete fulfillment service”
Develop “new online B2B platform”
Develop “new business format - FRANCHISE” over countries
Transform to be “The Total Business Solution Provider”
1
2
3
4
4 Key Strategies to continue sustainable growth
Enhance existing logistics to serve as “3rd Party Logistics with complete fulfillment service”
Improving logistics system to serve future company growth Automated warehouse with new Warehouse Management System, Transportation and Order Management
System; Also strategically to act as Third-party Logistics (3PL) for last mile delivery, warehouse management. 1 To increase warehouse capacity
To serve as 3PL in the future
To improve the whole warehouse productivity
To be sustainable growth with current business and future expansion
Revolutionize logistics business with state-of-art warehouse
OfficeMate Warehouse
@ Nongjok
Operational since: 2006
Total Storage area: ~15,000 sqm.
New OfficeMate Warehouse
@ Chachoengsao
Expected operational year: 2018
Total storage area: ~20,000 sqm.
World-class technology – Automated Storage & Retrieval
Order Start &
Picking point
Picking Tray
Store-into ASRS
Retrieval from ASRS
Case from ASRS
is diverted to
picking station
Case retrieval
from ASRS for
picking
Case store-into
ASRS
Transport Picking
tray to other picking
area, Packing area.
World-class technology – Pick to Light
Main Conveyor Line
Picking
Point
Picking zone
PTL on rack
Divert to
picking
station
Merge to
Main line
World-class technology – Automated Packing
Eco-friendly
Decrease the cushioning material in
package by change the package height
up to package internal volume.
Better operational efficiencies
Enable personnel cost savings by
substituting manual packing process
with automated packing
Develop “new business format - FRANCHISE” over countries
Spread the success opportunities over the
countries by franchising development Unlocked the office supply and stationery market, open opportunities for
interested business owner in upcountry.
2
Expand customer base to SMEs & B2C
Penetrate in UPC area and unreachable location
Customized store formats for specific customer groups
Adaptation of small store format into a franchise store model
Example of OfficeMate small store format @ Big C Huamark
Develop “new online B2B platform”
A Complete B2B platform to serve business requirement Providing new online platform for matching between vendors & potential customers in various industries by
utilizing our large corporate customer base 3
Trusted & verified vendors
Unlocked specialty product constraint
Integrated business products & services to
build business solutions
Pool of professional business services
Transform to be “The Total Business Solution Provider”
Elevating both product and service to become total solution for
business to satisfy our customers at the best Customer experience is our priority, completing product line and multi - service solution is our key strategy to
become “The Total Business Solution Provider”
4
Gift &
Premium
Furniture
Design
Click &
Collect
Printing
Solution
Parcel
Service
Gift&
Premium
Furniture
Design Service
Click&
Collect
Printing on demand for name card & Leaflet
Last mile delivery service with trusted partner
Made-to-order corporate gift & premium
Free furniture & office design service
Shop online & Pick up at OfficeMate store
Logistics Industry
Service Industry:
Hospitals and
Restaurants
Manufacturing
Industry: Factory
Sales &
Distribution
Industry
Secure necessary resources to
support our new focus areas
Consideration to step out of the digital and online business
Why phase out from the digital and online business?
x
• Industry landscape has changed as larger, more resourceful players enter the
market with no near-term profitability in sight
• Improve return to shareholders through higher net profit
• Digital and online B2C businesses are more essential to and more readily
supported by the Central Group
• Refocusing resources to the new focus areas will allow COL to enhance the
company value and provide sustainable return to shareholders
”Lower for Longer” - shift in the online industry landscape
-260
-210
-160
-110
-60
-10
40
90
140
190
Return
Time
Original Picture Current Picture
Loss
Profit
Factors that change the online industry environment
Cross-border competition Aggressive marketing strategy Excessive and continuous investments
Losses are expected to increase in both magnitude and duration due
to the change in environment
Survival of existing players is under threat from the market
leader and new entrants
Source: similarweb.com, ecommerceiq
1.6
0.7
3.9
6.2
0.0
20.1
0.0
1.8
3.4
4.9
7.6
41.6
Peer 5
Central
Online
Peer 4
Peer 3
Peer 2
Peer 1
Monthly website traffic (mn. visitors)
as of 2016 as of 2014
Fit Firm
AEC
Ready
Go
Growth
COL as the region’s leading business solution center
“To Be The Most Essential Online Business in AEC Providing Excellent "Value" to Customers”
COL VISION
BUSINESS STRATEGY 2021
Bring innovation and effective communication to stakeholders
> 5,000 MB on E-Commerce business solution
No.1 E-Market Shopping place in Thailand
> 150,000 SKUs active on Web
Excellence in Business Solution for both BMA & UPC
Ready for more success