Page 45 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Central Retail entered the Vietnam market 8 years ago with fashion category offerings, formed joint ventures with
Nguyen Kim (and acquired the remaining shares of Nguyen Kim in June 2019) and Lan Chi Mart in 2015, then
acquired Big C Vietnam in 2016. Central Retail spent the two years following Big C Vietnam acquisition revamping
the brand and restoring customer confidence in the quality of products and services. Central Retail did this by
sourcing almost all of food products locally and cancelling the majority of the prior owner’s private label food
products, enabling Central Retail to offer customers better value for money while ensuring the freshness of food
items. Additionally, Central Retail upgraded its software and set internal limits to provide customers with a speedy
shopping experience. Central Retail also acquired and invested in an experienced team of devoted individuals to
operate each store independently. As a result, Central Retail successfully turned around Big C Vietnam, achieving
an increase in revenue every year, the first full year of results after the acquisition, to 2018. In November 2018, Central
Retail opened its first Big C location, and as a result of its strong performance, local authorities from around the
country have contacted Central Retail to discuss opening GO! stores in their respective provinces, which Central
Retail expects will help to expedite its land procurement processes in the future. Central Retail believes that Central
Retail’s market position in Vietnam is comparable to the position in Thailand, with leadership across numerous
retail banners and store formats in the most attractive retail categories, including Big C / GO! Lan Chi Mart, Tops
market, go!, Supersports, and Nguyen Kim in Vietnam.

Central Retail entered Italy in 2011 with the acquisition of Rinascente Department Store till now and was achieved
by adapting offerings in response to the demands of Italian customers to increase domestic sales while also
catering to tourist demand in key Italian tourist centers, where Central Retail has successfully applied its valuable
experience with Chinese tourists shopping in Thailand to capture the similar market in Italy. For instance, Central
Retail successfully refreshed the Rinascente Department Store brand by moving away from a predominantly
“private label” orientation to an “affordable luxury” and “luxury” position, offering brands such as Louis Vuitton,
and others, and implemented the “flagship” store concept in certain locations, which has helped Central Retail
deliver a differentiated experience for the customer while also attracting luxury and affordable luxury brands.

Central Retail also has a proven and robust track record of broadening its portfolio of retail banners through
successful acquisitions, such as Robinson Department Store and Tops, and joint ventures, such as FamilyMart
and Lan Chi Mart. Recently, in May 2020 Central Retail acquired an additional 49% interest in Central
FamilyMart Co., Ltd, increasing its ownership interest from 51% to 100%. In addition, Central Retail made a tender
offer for all COL Public Company Limited (COL) (Completed acquisition in February 2021) bringing in the strengths
of CRC’s retail portfolio as a leader of office supplies, stationaries, lifestyle products, books and e-books, to expand
Central Retail’s leading omnichannel retailing platform in hardline segment and expand customer base to corporate
customers, creating added value from synergy between Central Retail’s business units.
Annual Report 2021 (Form 56-1 One-Report) 45