Central Retail Corporation Public Company Limited (CRC) Earnings Call Transcript & Summary

Good afternoon, everyone. [indiscernible] Head of Investor Relations of CRC. So thank you, everybody, for joining our second quarter performance update. And [indiscernible], we have a full team of management, Khun Yol Phokasub, our CEO; Khun Nicolo, President; Khun Philippe Broianigo, CEO of Vietnam, and apology for the last-minute change due to on family emergency, Khun -- our CFO cannot be here today. So on his behalf, we have Khun Ty Chirathivat, our Deputy CFO, joining. And in terms of the agenda, page up -- in terms of agenda today, we have prepared two sessions of the update. First session, Khun Yol will give you the summary and the key highlights of the second quarter. And secondly, Khun Ty will walk you through on the financial numbers. And lastly, Khun Nicolo and Khun Philippe will provide more details on our business update by segment. So without further adieu, let me pass on to Khun Yol to start. Our first part of presentation should last for the first 25, 30 minutes and in the second part of the meeting will open for Q&A in half. So before we start, I ask everybody to please mute, so you can all hear our presentation clearly. Thank you.

Hi, okay. Good afternoon. Okay. Thank you [indiscernible] and good afternoon, everyone. Thank you so much for joining our call this afternoon. If you look at the key summary in Q2, I think it was a very exciting and challenging time for everyone, including CRC. Obviously, the COVID has impacted the whole world. And you can see that the global economic growth has been revised now. And now talking about a minus -- pretty close to 5%, Italy to be around minus 12.8% and Thailand is about minus 8.1%. And then for Vietnam, now we come plus to 2.7%. It used to be about plus 4% to 5%. And you can see already that this morning, but Thailand, they just announced that Q2 GDP, it hit the lowest [indiscernible]. So it's almost to a decade. So it came down to minus 12.2%. Now also achieving Q2, Thailand retail industry actually had been affected since mid of Q1 due to a slowdown of our local consumer spending, tourist arrival and coupled with the country lockdown. Now if you look at the impact of lockdown, obviously, CRC had a major impact, okay, when you compare with other people. We have to close our store and accounted for about 80% of our total net selling spend for the first half of Q2. Now if you consider from this closing and reopening based on net selling space and the time that we can open, our sales should be almost affecting about minus 50%. However, with our omnichannel platform, we could be able to secure our customers well and serve our customers better and impacting sales already minus 21%. Our omnichannel sales continue to move from strength to strength. And Q2, omnichannel sales growth was over 265% over the last year-on-year. And yes, again, this has been a great impact to our profitability. And with our normalized EBITDA at minus THB 0.87 billion and net profit is about minus THB 2.6 billion. Okay detail we can cover in the next session. If you look at our performance to turn around in Q2. I think with our agile organization, we could turn out this very fast. And I'm pleased to inform you that in June, our country, Thailand, Vietnam, Italy, our sales returned to pre-COVID, okay? Basically go back to February sales performance and our company EBITDA turned positive in June. As said, okay, you can see that the latest forecast of 2020 GDP I already mentioned to you. And here, this is the latest forecast, okay? So it doesn't look that encouraging. Now by -- if you go to next one, okay, if you can see that by country, okay, about the cost-out impact, you can see on the screen, the stores were closed in each country. And as I mentioned to you, that a more than half of Q2, our net selling space were hit by 80% to be closed side. So next one. Now for Central Retail, whether we are close in terms of the store or not. Okay we look at store and we continue to lead and reinvest ourselves, expanding our business and also continue to transform ourselves on our to big initiative. The first one is about omnichannel and the second one department store transformation, which we will give you some update on the forecast in a few minutes. And here is our seven priorities. And you can see that here we continue to invest strategically and we doubled out in our mission transformation. We drive the synergy and transformation. At the same time, okay, we turn the crisis to sale opportunity and bring down OpEx and also strengthen our balance sheet with a better and higher liquidity. And last but not least, we continue to support our community and country that we operate. Now I can give you a quick highlight on Q2. Okay, this is what happened. You can see that we continue to expand our RBS, location lifestyle mall okay, in Chonburi and also GO! hypermarket in Vietnam. We fully launched a new innovative on omnichannel services and also accelerate omnichannel transformation. On Italy, we also brought online ahead of the game. So now we launched online in Italy. And then we executed the first part Department Store Transformation by converting Robinson to Central at [indiscernible] and has been investment very well by our customers. We also launched the New Flagship Store in Power Buy, at Central World, and then together with the synergy with B2S will be a new concept, okay? And we continue to acquire M&A, 100% of the time every month. And last but not least, as we drive the job security, live up the health standard and also help as much as we can to lock the price of our essential products until the year-end to still help the economy and for the people to have a better value in terms of money in the pocket. So this is the key highlights of the Q2. And then our next Khun Ty, our Deputy CFO. I think he will walk us through about financial results in 2020 of Q2.

Thank you, Khun Yol. Good afternoon, everyone, to our analysts and our investors. Let's now dive into the financial results for Q2. Before I begin, let me make some clarification on the P&L differences between last year and this year. Last year, in June 2019, we had Kim acquisition in Vietnam and so there will be a 1-month performance included in the Q2 '19. This year, however, there is a 3-month impact for Q2 2020 and in terms of first half and second half will be 1 month versus 6 months. So let me start with the snapshot on the key performance figures. For the total revenue, actually comprised of 5 parts, one is the revenue from sales of goods at about 90% of our business, revenue services, rental, investment and also other income. For this quarter, we have THB 41.376 billion, a drop of about 21% year-on-year, mainly as Khun Yol was mentioning from the store closure from the lower consumption patterns and also the effect of tourists. If you look at the first half, our sales is about THB 95.661 billion, a drop of about 10% year-on-year. But if you add the Q1, Q1 we have about THB 54 billion or increased by 1%. For the net profit, this actually is the first time in CRC history that we reported with net profit but I assure you that this is only a temporary impact. We have already seen a good recovery in June and the sales is already about pre-COVID about February and bottom line is good. So EBITDA is already positive in June. But in Q2, however, our net profit had a loss of THB 2.519 billion or a change of about 100 -- 243% year-on-year and first half, a loss of THB 1.629 billion, year-on-year difference of about 139%. So for Store & Plaza, we have now about 3,832 point of sales. This includes the counters and department store, it hasn't increased much. But if you look at in terms of net saleable area, increased 2.2% year-on-year, mainly from Thailand. And in terms of the Retail Plaza, we are now at 64 locations and increase about 4 locations; 2 in Thailand and 2 from Vietnam. So Robinson Lifestyle in Q4 '19 opened in Lat Krabang, then we have Q2 opening this year in Borwin for Robinson Lifestyle and for GO! mall, Vietnam, one opened in Q1 and another one opened in Q2. This increases the NLA by 13% this year. In terms of sales mix, there is a big difference if you compare against first half or even more so versus last year in Q2 '19. The big decrease came from fashion because a lot of the stores closed. In the same period last year, our contribution from fashion is about 33%. This year, it's 22%. So this actually had a big increase, a big significant impacting to our GP because fashion GP is actually quite high compared to food and the hardline. In terms of the country contribution, Vietnam has increased to 26% while Italy and Thailand has reduced. Vietnam last year, Q2 '19 was actually only about 19%. This year, it's 26%. The main difference is because Italy and Thailand has a lot of store closure compared to less in Vietnam. In terms of offline and omnichannel, the omnichannel increased significantly from 5% in the Q1 this year to 13% in Q2. So in terms of pilot, actually, there is a 4x growth versus last year or about 263% growth overall. So this is actually a very positive outcome because we laid the groundwork 3 years ago, and we were able to capture the opportunities in Q2. Next slide -- Oh, sorry, one last thing about the one. Even with the economic issue and the COVID issue that we're foreseeing in Q2, we were able to increase the loyalty customers by 9% in Thailand, it's to 17 million and 5% overall to 29 million. Next, for the financial highlights, in terms of revenue, if you look at the past 3 years, our CAGR was about 9%. However, in Q1 we only experienced a 1% growth. We already saw impact from the COVID starting in February because of the tourists that has reduced from China and also, a lot of our stores started to close in March. So Italy closing on the 12th of March. Thailand closed on the 22nd of March, and Vietnam started to close in March 27. If you look at Q2, the sales starts to decrease further, mainly because as Khun Yol mentioned, 50% of our -- 50% of the operating days we closed down. Tourists actually almost zero in this period. There was a reduction in local consumption. And even after the opening of our stores, there's a lot of strict measures the government imposed. So there's some impact on the traffic. However, during this period, as Khun Yol was mentioning, we should have seen a 50% or so reduction, but we only see 21% mainly because omnichannel and new channel grew significantly. Our food in Vietnam was doing okay, which contributed about 47%. And our food in Thailand, of tops and food hall was also very, very strong. And Hardline Group in terms of [indiscernible] saw a big -- very good recovery as its were open. On the right-hand side, we see the normalized EBITDA, normalized from two items. One is the pre-TFRS and the second thing excludes the nonrecurring items. You can see that EBITDA for Q1 has dropped by 28% to THB 4.045 billion. Again, this is mainly from the reduction in top line growth, but also a reduction on the GP side as well. And on the Q2, further declined to a loss of THB 871 million or a negative actually $871 million for EBITDA a drop of minus 118%. Again, this is the first time in CRC history that we have seen a negative EBITDA in the quarter. Again, this is from lower sales of 21%, lower GP from fashion and also the higher contribution from lower-margin business in food and hardline. So this number on the left-hand side, sales is actually quite similar to the total sales -- total revenue. This one is actually just the sales of good, which contributes 90% of the total revenue. Again, in Q2, we saw a decline of 21% year-on-year. And for the first half, we saw a decline of 10% year-on-year. The mixture at the bottom is quite similar to what I mentioned just now. One thing I want to note is that for Q2, if you exclude Nguyen Kim that was 3 months this year versus 1 month last year, the sales would drop actually 25% year-on-year for Q2 instead of 21%. And for the first half, excluding Nguyen Kim, the sales would have dropped 15% and now 10% year-on-year. If you go on the right-hand side, I'll talk a little bit about the different groups. For the Food Group, we split between the Vietnam and Thailand. If you look at Vietnam, we've actually seen a positive growth of 3%. So this is actually very, very good considering the circumstances. Thailand, however, saw a decline of 17%, primarily from family mart business. In Thailand, 70% of the sales are coming from tops and food hall with the businesses okay while 30% of the sales is actually from CFM. So CFM saw a big impact. Reason being, number one, there was a curfew that was in place in April until about May for about 1 month. The curfew started about 10:00 p.m. So actually about 1/3 of the operating hours was reduced. The second is the alcohol ban for 1-month. And thirdly, many of the locations of Family Mart was in tourist location, which saw a steep decline. In terms of the first half 2020 versus last year, the total group saw a decline of about minus 3% year-on-year. For Hardline, Second quarter saw a drop of 3% year-on-year to about THB 11.642 billion. Again, the positive for Vietnam is actually from -- so let me focus on the drop of 21%, which is in Thailand. So this primarily came from the close almost all the stores in Thai watsadu and [indiscernible] for about 48 days in Thailand. However, as I mentioned earlier, starting in June, we saw a quick recovery of these 2 formats and it's reaching sales of pre-COVID already. If you look at the first half, we saw a year-on-year growth of 13% for this format. Okay, Fashion is unlike other groups. It has most significant impact in the second quarter, we see a drop of 48% year-on-year to sales of THB 8.121 billion, coming from Italy, minus 70%. And Thailand, 41%. The big issue in Italy is that number one, Italy had 48 days that will close 100% of the business is in Fashion. The second is that many locations are in tourist locations. So the impact there is quite significant. And thirdly, unfortunately, we did not have the online business there yet to support the sales from the store that decline. Our online business in Italy, just came about in June, okay? In Thailand, however, the sales dropped about 41%. Again, as I mentioned, mainly from the store closure and other reasons, you can see the big difference between Thailand and Italy mainly because of omnichannel and new channels that we're able to bring back sales that were lost in the offline stores. For the first half, of the fashion, we dropped about minus 35% year-on-year. And next, for Rental and Service, CRC Rental Service comes primarily from 2 countries. Thailand last year contributed about 80% and Vietnam about 20%. This year, however, Thailand contributed only about 71% and Vietnam 29%. The increase in Thailand is because more of the spaces were closed compared to Vietnam. If you look on the left-hand side, the total NLA actually increased 17% year-on-year. We had 2 new malls that opened. I mentioned earlier Q4 '19, we opened Robinson Lifestyle in Lat Krabang. And in Q2 this year, we opened in Borwin. Borwin that was opened in April. At that time, only the food court opened because of the closing -- the government closure measure. However, when we reopened end of June, we had occupancy of 90%. So if you look at occupancy in total for Robinson Lifestyle, it is now 95%. For Tops Plaza, we have occupancy of 84% for the 5 locations. In Thailand, we also have other rental spaces in the business units, such as Central and Robinson and Tops in Thaiwatsadu. So this is about 40% of total Thailand rental. In terms of Vietnam, the NLA increased about 10%, mainly from the opening of 2 malls. The occupancy in Vietnam for the 35 GO! is 77%. The new mall that was opened in May had occupancy of 100%. On the right-hand side, you see the rental revenue. In Q2, similar to fashion, Rental also saw a significant decline of 49% year-on-year to about THB 1.077 billion. The significant drop came from Thailand. One is that for the malls that we closed and the stores that are not open, we gave 100% a rental waiver. And for stores that remain open in our closed mall, we had a discount of about 10% to 30%. So in totality, Thailand for Q2 dropped about 55%. However, in Vietnam, the story is bit different. We only gave support of about 10% to 20%, and the decline in Rental income was about 19%. However, starting in June with the opening of the malls, the rental income has started to increase significantly. In first half in 2020, on the right-hand side, you can see that the year-on-year drop was about 28% to THB 3.022 billion. Well on the SG&A, there are a lot of numbers here, so bear with me here. The red -- I'll start with the left-hand side. The red block is actually the selling OpEx and the gray is the admin. The selling primarily is from the store. So it's personnel expense at the store, depreciation, utility expense, marketing and so forth. On the admin side is mainly on the HO, including IT and other expenses, also including obsolescence and shrink that will be here. If you look at Q2, our expense dropped to THB 14.135 billion year-on-year decline of about 9%. Our admin actually increased 27% and while our selling declined minus 22%. I will give you two caveats. Number one is if you look at the other column, it excludes Nguyen Kim. Our expense actually dropped from 9% to 13%. The admin went up only 18% while our selling dropped even further to minus 25%. And if you look at the admin of 18%, if you look at the notes, you will see that this includes shrinkage and obsolescence. If we take this out, the increase in admin will be only 6%, okay? Again, Q2 versus Q1 in terms of the percentage to total sales is increased from 29.7%, up to 34.2%. If you look at the first half of 2020, the SG&A declined to THB 29.062 billion, a drop of minus 6%. I won't go into detail, but excluding Nguyen Kim, the drop would be minus 10%. If you look at the table on the right-hand side, it has more information about what has a significant change. The biggest one is personnel, which is 31% of the total SG&A. It is a THB 4.4 billion this year versus last year, about 5.3% or a drop of 17%. The drop came from -- primarily from one, there was a government support for staff that did not work during this time in Thailand. For Italy, we also have similar support but the support will be booked in Q3. The amount is about EUR 5 million. The second thing is about how we were able to manage our staff activity higher. During the COVID, we reduced part time and we reduced temp staff as well. We believe that the majority of this reduction will continue into the second half. Also, we have been able to find new ways of working more productively and with the use of more tech. So we're able to increase productivity in higher. The second part, the depreciation on Rental. I will group it together because the manage -- the difference lies in the TFRS. So if you look at the TFRS for depreciation and rental, TFRS for depreciation was 25%, while rent was 2%, so it's 27% in aggregate. If you look at -- excluding TFRS is 14% and rental, excluding is 13% to 27% as well. So net-net, it doesn't really have an effect. It's just a switching of the accounting. However, in terms of Rental, we did have a support in terms of locations for closed store in Central Group or Non-Central Group locations. Utilities saw a drop of about minus 33%. Again, this came from closing of our stores and also some of the discounts that we see for utilities. Marketing also declined minus 4%. One is we postponed marketing activities. Second is we shifted into social media, which is actually a lower cost channel and then lastly, other expenses and it contributes about 30%. This item actually increased 25%. Although we saw a decrease in related items such as credit cards and cleaning and maintenance. Normalized EBITDA, if you look at the left-hand side, for Q2, the audited report states THB 1.284 billion but to make it comparable, we adjusted several items. One is a foreign exchange gain of THB 230 million. The second is a gain on asset disposal impairment and one-off items, about THB 195 million. And then lastly is the impact from TFRS, up about THB 1.73 billion. So if you look on the right-hand side, table. We saw normalized EBITDA of a loss of -- a negative of THB 871 million. Again, this is the first ever for our CRCs in our history. On the right-hand side, the Food quickly. Again, we saw a considerable drop but again, still positive THB 650 million. The margin decline from 5.2% to 3.3%, primarily because of the lower sales. In terms of Hardline, our EBITDA also dropped in Q2 to THB 265 million, although still positive. However, the margin dropped further from now. Okay. So next slide. Okay. Just 2 more slides and then has done. Balance sheet. As of June 30, our total assets increased by 31.2% to THB 245 billion. Cash and cash equivalents went up about THB 13 billion, primarily coming from the loan that we took out at low interest. Our inventory reduced about THB 6 billion, mainly from clearing stocks and also reducing stock holding, again, to increase our liquidity. PPE stayed about the same, about THB 41 million and other assets increased significantly, mainly from the TFRS policy. On the right-hand side, the liabilities and equities again increased 31%. The other liability increased THB 26 billion, primarily from TFRS. Interest-bearing debt increased from THB 61.9 billion to THB 73.8 billion, up THB 13 billion from the loan that we took out and the equity increased by almost THB 20 billion, primarily from the proceeds from the IPO. On the bottom side is the table is about financial metrics. In June 2020, again, this, I believe, is a short-term number because it should be much better than this. ROA is about 3.1%. ROE is about 10.4% and as you know, we target about no less than 15%. Our net debt to EBITDA is 2.4x and our net debt to equity is about 0.8x. In terms of CapEx, on the left-hand side, the original budget we have was THB 18 billion for this year. However, with the COVID, we have revised to about THB 12 billion to THB 15 billion. We're not canceling this CapEx. We're just postponing it to first half next year. And most of the postponement are from not really items that can materially impact our sales in the future, primarily coming from back office or maintenance, small formats and minor renovations. On the right-hand side, you can see in terms of the big format. Our Roberson Lifestyle, we target to have 2 stores opened this year. We already opened one in Borwin. The other one was supposed to open in Q4, but due to it's located in Phuket, we believe that the wise thing to do is to delay this by 1 or 2 quarters. So we're opening in first half next year. In Thai Watsadu, we had planned 6 stores, 4 big and 2 small. We will only open 4 of the big formats and 2 will be postponed. In terms of the GO! and Big C, we will continue to open. We target 6 and we will open 6 this year, 3 have already been opened, 2, I mentioned before, 1 has opened -- recently opened in July and then we'll have 3 more to go. I think that's about it for the CapEx. I'll now hand it over to Khun Nicolo?

So let me update you on the business starting with the omnichannel. So our digital sales. First of all, as you know, we launched our web channels about 4 years ago. But maybe you don't -- you may not know that we also launched over the past 24 months, a number of other digital channels on top of the web. This can -- this fine in this page. So it's like Chat & Shop where you can place the order via chatting or Call & Shop where we have a 4-digit number, 1425, and you can order what you want with the mobile phone or we have actually the staff from our stores, continuing to be in touch with the best customers using the one card data and offering them, to buy for them and to deliver directly to their house, what we call, outbound call and remote personal shopper or store line or the use of Facebook Live and Brand LINE as a way to inspire and to present innovative ideas and shopping opportunities with the shopper. So all these channels together fueled by this data that we have about the customer with the one allowed us to keep a continuous relationship with the customers, even when our stores were almost entirely closed. And actually, as you've seen, they allow us to sell, for example, fashion, 100% of our stores were closed for 2 months, but we were able to sell about 1/3 of the normal sales, add lines, the vast majority of the stores were closed, but we were able to sell more than half of our normal sales. And these channels experienced a very rapid growth during the closing of the store, they grew like 10x compared to what they used to be. Now if you combine these new channels with the web, year is more or less the month, the monthly evolution of the sales, you can see in this chart. So you can see that there's been a steep increase in March and then a very, very big peak in April and May. And in June and July, despite the stores are now entirely reopened, there's been a just a modest decline. So pretty much we are keeping very high sales on the web and on these new channels and what we call omnichannel. If you look on the right, you will see by category how much the increase has been. So fashion has increased 450%, so more than a factor 5, onlines 150%, so like effect of 3.5% compared to this year. In food, of course, even despite the fact that food has always been open for our food stores have been open all the time, food has more than double. So in a way, what we've seen has been a real boost of all these digital channels in Q1, especially in Q2. And now in Q3, actually, they're not going down. They're pretty resilient, which, of course, is helping us to recover and coming back to growth in Q3. The other news in the next page, when it comes to new channels has been that after Thailand and Vietnam, we now have a very, very strong online presence for the first time also in Italy. This has been launched in June is Rinascente.it is our first -- this is actually our first omnichannel luxury experience and this is definitely the first omnichannel luxury experience for the Italian consumer. It was launched in June. In July, we've already seen significant growth and now at the beginning of August, we already see that this channel, despite very new is already representing a significant proportion of our Rinascente's sales in Italy. The other big initiative of this year started and planned before the COVID, but now in full execution is the Department Store Transformation and especially driving the synergies between our two Thai Department store banners Central and Robinson, Central has 23 branches, mostly Bangkok, Robinson 51 branches, mostly of country combining these two, 74 branches by far, the market leader in Thailand. So already Central is #1. Robinson is #2 in Department Store in Thailand, combine them together, they are like a factor 3 bigger than the next player. The objective of the synergies are four. First of all, make sure that in every location, we can leverage our best offer and not just whatever Central and Robinson can offer individually. Second is to improving the margin by basically leveraging the incredibly strong balance of power we have with the brands. The third is to deploy our talents across let's say, a larger business. And the fourth is to reduce the operating costs and especially to reduce the office cost because today, we have 12 offices and we are basically progressively moving into one. The expected synergies are in terms of extra sales, in terms of better gross margin and in terms of at office cost return. We calculated when everything is going to be implemented. So I'd say, by the full year 2023, we will gain, in terms of bottom line, about THB 1.2 billion just by the synergies between these two banners. And most of them should actually been captured already in 2022 and a significant part in 2021. Just recently, beginning of July, so technically, it was Q3, but it was almost like Q2. We rebranded our first Robinson store into Central in Mega Bangna. So Robinson Mega Bangna, Bangkok became Central Mega Bangna and the result, even with a very minor innovation are very good. The next one is going to be the Udornthani and Robinson Udornthani will be rebranded Central Udornthani in October. And then we will have a much better basis to understand how to proceed in terms of remaining. And beyond the Department Store for Thailand, the other I would say the big bright spot was Thai Watsadu. You can see from this page, in Thai Watsadu has been a similar resilient during the closure in April, most of our stores were closed but still, we were able to sell more than 50% of our usual sales, mostly using these new channels. I just referred to a minute ago. In May, despite just we were open -- we were out to open a store for less than 2 weeks, we almost recovered 100% of the sales. And in June and July, we're already ahead of our sales in June and July this year. So there was a little confirmed to be the favorite brand for DIY, for a customer and, of course, the most convenient in terms of price perception. And now, as Khun Ty just mentioned, we are going to open this year finally four stores. So we're going to fuel this growth with four stores on one end, new stores. And as you can see in the bottom of the page, also with the continuous effort to bring products from China, India, so very, very, very good quality but low price points which, of course, with the current state of the economy is very much appreciated by our customers. So we see what do the price part in Q3 and Q4. And now let me hand over to Philippe for Vietnam.

Good afternoon, everyone. Thank you for all of you for joining. We have 10 minutes, I would like to go through Vietnam, but also speak a little bit about the opening and the food business in general. So something that you are probably waiting was Nguyen Kim and definitively, that's why our home work. So we have decided to share with you a little bit detail about where we are on Nguyen Kim. And you have seen probably with the explanation of our competitor on the stock market that the market in electronic has been down, but we have actually decided even though we were impacted by COVID to continue our plan as explained to you during the launching of the IPO. So here is the six points that we have actually laid down for you. And we focus mainly on the top 10 stores which are today 40% to 50% of the business of Nguyen Kim. And those top 10 stores since June already starting to turn around, which is for us quite a good positive point. We have also just for your information, our Q2 in Nguyen Kim was much better than Q1. And you can see that step by step, we are actually coming back. The good news is also that despite this plan, which is ongoing, we have actually starting to gain market share. This is the first time in June. This is -- July has actually confirmed and it's true that despite the market is down, we are actually starting to gain market share, especially in consumer electronics, which is the equipment. So Aircon, for example, Fridge as well, which is quite a good news for Nguyen Kim. We have also opened stores. We wanted to be cautious on the opening, and we have opened two stores, especially in our GO! mall. We continue to fix our omnichannel. It was mainly technical parts that we have to work out. And our omnichannel role is actually on par with our competitor with 8.5% to 9% of sales contribution. But we definitively have much more leverage on some of the category. The back of the half has been also worked out. We have closed almost all our DC to keep three DC, two in Ho Chi Minh and one in Hanoi. We have plenty of DC in the countryside. We decided to use our stores at the DC, which is more than enough and deliver our customer from the store, which has been quite a good saving. And then we are starting commercially to launch new commitment, new services and to close some of the stores. That's why the top line is always impacted because we have closed some stores, but at the same time, the like-for-like is stronger and stronger. On the next slide, I'd like to sorry, the next slide. I'd like to present the food. And this is something you probably don't see often. But today, the full ecosystem of food between Thailand and Vietnam, we have actually expertise on all the formats. Just to give you an idea and a snapshot on the food. Obviously, our main format is the supermarkets with Food Hall and of course Food Hall in Rinascente, the top supermarket as well, the mini go that we spoke -- we spoke later on, which is 46% of the sales breakdown in the first 6 months. But we are pretty good in hypermarket in Vietnam, mainly at 40% with two concepts [indiscernible] and Big C. And actually 15% on the convenience store. So as you can see, even though FamilyMart is having some turnaround process and action plan, which is ongoing and I will share with you what's happening. You can see that our exposure to convenience store is not that big. And all the other formats are actually very profitable. On the next slide, to give you a little bit of idea we shared with you last quarter the market share. We share it with you again. And you can see that the Big C group versus Top food and WinMart [indiscernible], we are actually continuing to grow. Definitively, WinMart is also growing, that's probably imposed now. And we are actually now a significant #2 and going forward to the #1, which is Tops mart. This is quite a good achievement by the Vietnam team on the -- during this difficult time during the COVID. On the next slide. Here, I wanted to show that despite the fact that the economy has been slowing down in Thailand, the Thai team in food has been pretty active on innovation. And I think this is also necessary. I mean our Tops brand has been very successful and our brand equity is very strong. But we are now confirming our presence in terms of lifestyle, in terms of [indiscernible] on each of the category. And you can see that no matter, if it's the pet, the snack, the bakery or the health or even the food and beverage, Tops is going to the next level and that's going to be a clear differentiation compared to our competitor in Thailand, which are Big C and Tesco. In other hands, you have seen presented by Khun Yol, that we now have 100% of FamilyMart. And we are also starting to be a bit more independent in our action plan. And you can see on the right side that we have actually a lot of franchisee or potential franchisee list. And the plan is definitively to operate 100 store to be operated at the end of 2020 on the -- by franchise, which is going to definitively lessen the burden that we have on the bottom line of this concept. On the next slide, a little bit of a surprise even though it's not open, is going to upsale open in a few days. You remember that in Vietnam, we have a concept in the rural area, we decided to start something on the stalls with this rural concepts. You remember that we spoke about it and it's a huge potential because the rural area is 70% of the population. We already have a model in the north [indiscernible] and we wanted to test the model in the south. This is going to happen in the next few days now. And so we have a lot of hope on this model and we will keep you updated on this model, which is basically a lower cluster than Big C but able to drive all the small cluster that we have in Vietnam. And obviously, this is only traditional trade. Next, on the -- similar to what Nicolo explained on the food give you the progression of the food, both in Thailand and also in Vietnam. You can see that the partnership that we have actually done during the COVID is actually paying off both in Thailand and in Vietnam, no matter if some partnership with Australia electronic supplier or grab basically in Vietnam or in Thailand. But you can see that even in Vietnam that we start basically 3 or 4 months ago, the number of the percentage to sales of Big C is already 2%, which shows this -- the capability of our team, but also the possibility to serve on this huge potential. On the next slide, I'd like to share with you a little bit of what is the plan of opening. I think Khun Ty has already explained the opening of Robinson Lifestyle. We opened one Robinson in Q2. And obviously, we will see the second one probably next year because he was supposed to open in the tourist area, and we want to be cautious but on other hand, in Vietnam, the three malls that you have seen here that we actually commit to you have actually opened, Buon Me Thuat has been the last one. I think Khun Ty also remind you that even though the occupancy of 55 Big C is 77%, or those malls actually cruising around 85%, 95% or 100%, which is quite good, even though it was during the COVID. We mentioned in our plan. Ben Tre will open in one month, Ba Ria and Thai Nguyen will open both October and December. So the plan of six that we come into you in Vietnam is actually happening, which is going to give us quite a significant boost on the square meter. Besides those openings, we are also starting to continue our energy and utility savings. You know that Vietnam electricity is very expensive. We have already started to install solar panel. We have already one store. The plan is actually to have 12 mall installed at the end of the year, which is 1/3 of our portfolio and to make sure we got significant energy saving. We also prepare next year and we will share with you the plan probably of the next meeting we got together. Next slide will be the opening of Robinson, share with you a little bit of a photo or look and feel of the opening. So this is Borwin open in Q2 with GFA of 30,000 square meter and 90% of occupancy rate. This is #24 of Robinson lifestyle. And you can see that, that is actually pretty amazing. On the second slide, we share with you a little bit the opening of GO! Buon Me Thuat just to give you a flavor of the number of customers we have, the store has been -- even though in the province has been very, very successful as well as all the GO! we opened and you can see that nobody were wearing a mask and 2, 3 weeks after the new -- the second wave of COVID was actually coming back, but it was quite interesting. We have also a new mascot now as a teddy bear on the go. On the next slide, just to update you on the category pillar. You remember, we shared that with you that we create our own specialty store to be anchored in our mall. So look cool has been totally redesigned. We have now 40 stores, and this is the look and feel on the store and Kubo, which is our education and entertainment for kids is actually also doing very, very well. And we plan to have another 17 stores open by the end of the year. But that's finished on the photo. This is also a question you have and that will be my last slide. The question you always have on when are you going to change the whole Big C portfolio to GO!. I wanted to give you a bit more detail and share with you the stores. And basically, this is the road map that we have. So by 2023, we will have only GO! Mall which is quite important because the Big C brand, as you know, has been getting old. And we will finish the remodeling five by 2020. And we will obviously continue this road map that you have in front of you, seven in 2021, six in 2022 and six in 2023. We are also looking at other big mall that we have to see if we can do something a bit more big, but we will update you in the coming meetings that we have. That's for Vietnam and for food. And of course, now thank you very much for your attention.