Page 44 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

subject to certain limitations. Central Group has also provided Central Retail with certain Rights of First Refusal with
respect to the JD Central JV, subject to certain limitations. HCDS has designated Central Retail as the flagship
company for its retail business, and therefore has a policy not to invest in any retail business, whether in Thailand
or abroad, which may be of the same nature as Central Retail’s business and may compete with Central Retail’s
business, except where Central Retail’s Board of Directors has resolved that Central Retail does not wish to invest,
whether in whole or in part, in such business. These benefits, combined with opportunities in overseas markets
that come with Central Retail’s global relationships, can help to further support rapid growth and scale business
to another level.

4. Success of Track Record of Acquisitions and Expansion into Other Markets
in Asia and Abroad

Central Retail has replicated the success of its retail story in Thailand in other global markets by adopting local
know-how and approaching each new location in its own right. Central Retail has a strong track record of
international expansion, primarily through acquisitions and joint ventures in Italy and Vietnam. International
revenue represented 25.0%, 27.9%, and 27.9% of Central Retail’s total revenue in the years ended 31 December
2019, 2020, 2021, respectively. The outbreak of COVID-19 periodically occurs in Vietnam and Italy since 2020
till now and all stringent control measures are implemented, thereby being inevitably affected to the Company
performance. However, Central Retail has adjusted operational plans by focusing on formulating proactive strategies
in combination with reactive ones. Moreover, the operational plans have been regularly followed up. Additionally,
the availability of the omnichannel for all segments in every country helped enable the Company to continue
providing services of product purchasing through various channels and adjusting products to meet customers’
needs, all of which contributed to the Company’s sales, i.e., 2% growth in overseas sales in 2021 compared to 2020,
despite the intermittent COVID-19 outbreak. The proven execution track record has increased confidence in being
able to apply operational excellence and adapt to other markets all around the world.

44 Annual Report 2021 (Form 56-1 One-Report)