Page 87 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Hardline Retailing in Vietnam

Central Retail’s Hardline retailing in Vietnam includes consumer electronics and appliances stores operated under
Nguyen Kim retail banner. Nguyen Kim opened its first store in 1996 and has since expanded to 27 provinces
throughout Vietnam. Central Retail’s partnership and subsequent success with Nguyen Kim helped establish its
credibility in Vietnam, and in June 2019 Central Retail purchased the remaining shares of Nguyen Kim and became
its wholly-owned subsidiary. Nguyen Kim is differentiated from its competitors because it offers premium products
and diverse assortments, and its large selling space allows it to carry bulk merchandise such as televisions and
refrigerators in-store.

Prior to 7 June 2019, Central Retail operated Nguyen Kim business as an associate company and its results of
operations were not consolidated into Central Retail’s total revenue. Revenues attributable to Nguyen Kim joint
venture were reflected in the share of profit from associates and joint ventures in the consolidated financial statements.

Sales and Productivity

The following table presents the total sales of goods, average sales per square meter and same store sales growth
for key retail categories under hardline segment for the periods presented.
Year ended 31 December

2019 2020 2021
Total sales of goods (THB millions) (1)

(2)
Hardline retailing in Thailand 42,768 41,295 54,576
Hardline retailing in Vietnam (3) (4) 7,815 10,937 8,990

Total 50,583 52,232 63,565
Average sales per square meter (THB / month)

(2)
Hardline retailing in Thailand 3,464 3,236 3,711
Hardline retailing in Vietnam (3) (4) 14,864 11,439 10.372

Same store sales growth (%) (5)
(6)
Hardline retailing in Thailand +2 -11 +8
Hardline retailing in Vietnam -12 -25 -17
(1)
Includes both in-store and online sales.
(2) The financial information for a period after 1 January 2021 included the operating results of COL as appeared in the consolidated financial
statements since 1 February 2021, while the financial information for a period prior to 1 January 2021 excluded the operating results of COL.
More details can be found in the Notes to Financial Statements.
(3) The sales volume of Nguyen Kim in the separate financial statements amounted to THB 14.3 billion in 2019. However, no entries occurring
between Central Retail and Nguyen Kim were deleted from separate financial statements of Nguyen Kim and from the Company’s operating
results. Moreover, the separate financial statements of Nguyen Kim were prepared according to the financial reporting standards in Vietnam,
while the Company’s separate financial statements were prepared according to Thai Financial Reporting Standards (TFRS). For this reason,
such information cannot be compared with the information as appeared in the Company’s financial statements.
(4) Nguyen Kim business is conducted through NKT New Solution and Technology Development Investment Joint Stock Company (“NKT”).
Prior to 7 June 2019, NKT was Central Retail’s associate and its results of operation were accounted for under share of profit of associates and
joint ventures. Central Retail purchased the shares of NKT held by the joint venture partner on 7 June 2019, and from such date it has been consolidated
into Central Retail’s results of operations as a wholly-owned subsidiary. More details can be found in the Notes to Financial Statements.
(5) SSSG is the change in the contribution to total gross sales between two periods made by the relevant stores on a standalone basis under
each of key retail banners.
(6)
COL is excluded for the year 2021 because Central Retail invested in COL after the beginning of the comparative fiscal year.

Sales of goods under Hardline segment are primarily comprised of in-store sales, with additional sales generated
through omnichannel. Omnichannel contributions to Hardline has increased by 31%, 73%, and 142% in 2019,
2020 and 2021, respectively.

Annual Report 2021 (Form 56-1 One-Report) 87