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