BIGC: Annual Report 2005
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Transcript of BIGC: Annual Report 2005
ANNUAL REPORT 2005 2548
()Big C Supercenter Public Company Limited A Central Casino Partnership
MORE THAN JUST LOW PRICES
More than 17 million bahtBig C Foundation has been supporting the educationof Thai children for brighter future
More than 2,000 million bahtBig C and our customers have been helping local developmentby paying local tax
More than 1,700 million bahtBig C has been distributing income to our local staffs
Working For Dreams, Smiles and the Happiness of Thai Society
Message from Chairman of the Board 5Honorary Chairman and Board of Directors 6Audit Committee and Audit Committee Report 7Board of Directors Report 10Executive Officers 11General Information 13Shareholders and Subsidiaries 23Business in Big C 27Significant Change and Future Trends 35Big Cs Branches and Head-to-Head Competitors 37Risk Factor 41Summary of Financial Data 43Analysis of Financial Position and Operating Result 47Management 53Related Company Transactions 75Financial Statements 114
4 5 6 10 11 12 22 26 34 36 40 42 46 52 74 84
C o n t e n t s
3 2,000 3,000 18
5 2 1 2
(30 ) 185 120,000
5 5 -
As a good Thai corporate citizen, Big C Supercenter PCL strives to constantly organize and offer activities that will improve the livesof all Thai people. We believe that education and strong moral values are the crucial building blocks of a strong and healthy Thaisociety. That is why the company founded the Big C Foundation in 2002, with the aim of to nurturing Thai youth into becoming highcaliber citizens by providing them with educational opportunities and organizing activities discouraging drug use.Our CSR projects are categorized as follows:Education and Sports for Youth
Big C has donated a total of ten buildings for schools in rural areas, including in Ubon Ratchathani, Surat Thani, Chiang Rai,Pitsanuloke, Nakon Pathom, Kon Kaen and Pattani provinces.
For the past three years, we have presented 2,000 3,000-baht scholarships, worth 18 million baht in total, to students with solidacademic backgrounds but in need.
The Foundation has built five basketball courts ; two in Bangkok, one in Nonthaburi and two in Phuket, and plans to buildmany more.
We continually provide educational materials to schools in need. Our presentation of 30-volume sets of Royal Projectencyclopedias to 185 schools is just one example.
The Big C Foundation has also donated school uniforms, shoes, books and sports equipments to more than 120,000 childrennationwide.
Social ContributionsApart from regularly arranging activities for youth, the Big C Foundation also provides aid to victims of natural disasters. When thetsunami struck southern Thailand in December 2004, we were one of the first groups to offer help to victims. Our actions include:
A donation of seven-million-baht to H.R.H. Princess Maha Chakri Sirindhorn for the construction of a school under the royalpatronage in Ban Tub Lamu, Pang Nga province.
A 500,000-baht cash donation to H.R.H. Princess Maha Chakri Sirindhorn in support of Thai Red Cross Society projects. A 500,000-baht cash donation to H.R.H. Princess Soamsawali for the Puen Pueng Pa Yam Yak Foundation (Friend in Need
Foundation). Provision of necessary medical items and equipments to Dr. Khunying Porntip Rojjanasunan and her team, as well as schools
and other charities providing tsunami victim aid. We also delivered six containers of survival packages to tsunami victims. Big C raised money to help repair fishing boats for the Ranong Fishery Association. The Foundation constructed sports courts and donated sports equipments to two schools in Phuket, and provided scholarships
to children orphaned by the tsunami in Phuket and Pang Nga provinces.The Big C Foundation has spent over 42 million baht on its CSR programs and will continue to focus on these projects to improve thequality of life for all Thais. Regardless of our success, Big C Supercenter PCL and the Big C Foundation will continue to organizeactivities that support educational and social development in Thailand.
Big C Foundation focuses on Thai youth and social development
2548 () 12
53,194.5 12.2% 47,412 2547 1,882.8 17.6% 2547 1,601.1
2549 4 49 11
2549 3 2,400 7
Big C Supercenter PLC celebrated our 12th anniversary in2005. Since our founding, Big C has been committed to offering thebest service to the public and we have focused on giving ourconsumers maximum benefit by selling a wide variety of qualityproducts at low prices. In addition, Big Cs support of communityactivities has been unwavering.
Despite last years economic slowdown, when higher petrolprices and other factors made consumers more cautious aboutspending money, Big C was able to meet our profit targets. Sales in2005 grew by 12.2% to 53,194.5 Billion Baht compared with 47.412Billion Baht in 2004. Net earnings were 1,882.8 Billion Baht in 2005,a 17.6% increase over the 1,601.1 Billion Baht in sales in 2004.
Big C believes that this success is the result of customershaving embraced Big Cs image as low price leader, our salespromotion activities and the convenience Big C stores offer ourcustomers. These factors will continue to inspire consumers withmore confidence and trust in Big C.
Our business plan for 2006 focuses on opening new branchesto ensure nationwide coverage, which will boost revenues andearnings and improve customer service. Big C will open four newstores, increasing its extensive retail network to 49 branches by theend of the year. In addition, Big C will upgrade 11 existing stores aspart of an ongoing effort to make our outlets more modern andmore in line with customer lifestyles.
Our retail network expansion will be carried out in line withthe Stay together with the Community concept, which reflectsBig Cs commitment to social contributions. Big C aims to be agood neighbor in all of the communities in which we operate,and contributes to these communities not only through employmentand tax payments, but also by supporting community activities.
In 2006, the Big C Foundation, which was established tohelp support underprivileged youth in education, will continue toprovide buildings to needy schools in rural areas. The Foundation isalso committed to sponsoring students with financial need by awardingover 2,400 scholarships worth over 7 Million Baht to secondarystudents nationwide. In addition, the Foundation supports otheractivities for Thai society.
Big Cs success is undoubtedly the result of the dedicationand hard work of all management and staff as well as the strongsupport of our shareholders and customers. On behalf of the Boardof Directors, I sincerely thank all of these parties and hope that thiscooperation will continue to allow Big C to return positive benefits toThai society.
(Mr. Suthichart Chirathivat)Chairman of the Board
Message from Chairman of the Board
Mr. Vanchai ChirathivatHonorary Chairman
Mr. Suthichart ChirathivatChairman of the Board
Mr. Jean-Michel DuhamelDirector
Mr. Viet Hung DoDirector
Mr. Yves Bernard Braibant
Director, Chief Executive Officer &President
Mr. John Sian Zu-LinDirector
Mr. Tos ChirathivatDirector
Mr. Thierry BourgeronDirector
Mr. Jacques TiernyDirector
Mr. Jacques Dominique EhrmannDirector
Mr. Nontaphon NimsomboonIndependent Director,
Chairman of the Audit Committee
General Winai PhattiyakulIndependent Director,
Member of Audit Committee
. , Dr. Rongphol Charoenphandhu
Independent Director,Member of Audit Committee
Mr. Jean-Baptiste EMINDirector
Honorary Chairman and Board of Directors
BIG C SUPERCENTER PUBLIC COMPANY LIMITED 5
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1. 2. . 3.
The Audit Committee of Big C Supercenter PublicCompany Limited (the Company) has been appointedby the Companys Board of Directors comprising3 independent non executive directors one beingqualified in accounting and finance, one in law andone in organizational management. The three membersare :
1. Mr. Nontaphon Nimsomboon Committee Chairman2. Dr. Rongpol Charoenphandhu Committee Member3. Gen. Winai Phatthiyakul Committee Member
Mr. Nontaphon NimsomboonCommittee Chairman
Gen. Winai PhatthiyakulCommittee Member
. Dr. Rongpol CharoenphandhuCommittee Member
2548Audit Committee Report for Year 2005
BIG C SUPERCENTER PUBLIC COMPANY LIMITED 7
A N N U A L R E P O R T 2 0 0 5
The Audit Committee has performed their dutiesin accordance with the delegation as assigned by theCompanys Board of Directors. The delegation is madein accordance with the Audit Committee Charter and theRegulation of the Stock Exchange of Thailand. During thefiscal year 2005, a total of 4 Audit Committee meetingshad been held. The meetings were also attended byinvitees including the external auditor, the internalauditor and high-level operational managers from thedepartments of finance and accounting and informationtechnology to provide explanation and appropriateadditional information to the Audit Committee asneeded in making its decisions. This is to enhance theroles of the Audit Committee in discharging its dutiesand responsibilities. The substances of matters discussedin the meetin