RETAIL BUSINESS ENVIRONMENT Southeast Asia Through the Journey of A Regional Retailer

POPULATION Southeast Asia 646Million Indonesia 264 Million Philippines 104 Million Vietnam 95 Million Thailand 68 Million Myanmar 55 Million Malaysia 31 Million Cambodia 16 Million Laos 7 Million Singapore 6 Million Brunei 0.5 Million Southeast Asia 646Million Source : World Population Review

Source: Asian Development Outlook 2017 Update 2017 GDP GROWTH Myanmar 7.7% Malaysia 5.4% Cambodia 7.1% Indonesia 5.1% Southeast Asia 5% Singapore 2.7% Laos 6.9% Thailand 3.5% Philippines 6.5% Vietnam 6.3% Brunei 0% Source: Asian Development Outlook 2017 Update

PARKSON’S JOURNEY 1987 PARKSON MALAYSIA PARKSON CHINA 1994 PARKSON LAOS 2018 PARKSON VIETNAM 2005 PARKSON CAMBODIA PARKSON MYANMAR 2013 PARKSON INDONESIA 2011 PARKSON MALAYSIA 1987

MAJOR MARKETS Philippines Thailand Metro Manila 24 mil people Crowded with Local Retailers SM Group, Robinsons, Rustans, Gaisano, Brands Controlled By A Few Groups Retail Growth Very Strong SM : Mall, dept.store, grocery retailing $5.6 B Sales Dominant player, 60% market share Robinsons: Mall, dept.store $2 B Sales Rustans: High-end dept. store, agency brands Thailand 35 mil tourist arrivals Strong And Dominant Local Players Central, Siam Paragon, Emporium, CP Group CP Group : Dominant in grocery retailing Seven Eleven has 10,000 outlets Central: Dominant in mall and dept.store $4.8 B Sales Siam Paragon: premium mall and dept.store

MAJOR MARKETS Indonesia Malaysia Sogo/Metro: Medium To Medium Upper Biggest market in the region Greater Jakarta 30 million people Matahari 151 outlets, Ramayana 118 Middle to middle lower Sogo/Metro: Medium To Medium Upper Parkson: Entered In 2011 Through Centro MAP: Control 100 plus Brands Malaysia Greater Kuala Lumpur 6 mil people 27 mil tourists Good mix of local and international players Highest number of shopping malls Parkson : Started In 1987 45 outlets Leader In Premium Cosmetics

NEW MARKETS Vietnam Myanmar Cambodia Laos The most attractive with 95 mil people Hanoi 7 million, Ho Chi Minh 10 million Crowded Field But No Dominant Players Yet Vincom, Diamond, Takashimaya, Crecent Mall & Robins, and SC Vivo City Just Opened : Zara, H&M, and Old Navy High Rental Vingroup To Have 100 Shopping Malls Myanmar Mostly in Yangon 8 million people The Retail Market Is Still In Early Phase People Still Believe In Traditional Markets Limited Real Estate Supply With High Rental Existing Shopping Malls 3 Groups Monopolize Most Of The Brands Cambodia Action: Phnom Penh 3 million First Mover : Aeon Mall Next Entrant : Parkson Laos Vientiane (Capital) : 1 mil people Lack Of Modern Trade Mostly Traders Markets New Entrant : Parkson

Wet Market To Modern Trade

CHINA The Biggest E-Commerce Country In The World E-Wallet Is The Norm with Wechat Pay and Alipay 5,000 Shopping Malls, 800 New Opening In 2017/18 Local And Foreign Fast Fashion Brands Mushrooming Gourmet Supermarket and C-store The New Trend Online Going to Offline 19 Million New Babies In 2016

PARKSON Parkson Group FOOTPRINT AND FIVE YEAR PLAN In a Market of 2B People Parkson Group Year 2017 : 117 Stores 3.5 Billion USD Sales 10 Million VIP Members Year 2022 : 213 Stores 8 Billion USD Sales 20 Million VIP Members Cambodia Year 2022 4 Stores China Year 2017 47 Stores 100 Stores Vietnam 7 Stores 15 Stores Malaysia 45 Stores 55 Stores Indonesia 17 Stores 30 Stores Myanmar 1 Store 5 Stores Laos

Lifestyle Concept Retail Business STRATEGIES Lifestyle Concept Retail Business GO BIG Shopping Malls Go Online Go Niche Young Private Labels Cosmetics Go Kids Go Food

TRANSFORMATION Parkson Stores Parkson Online Parkson Mall Branding 百盛商城 FUN Peekaboo Parkson Mall Branding Parkson Food

PARKSON MALL

PARKSON BEAUTY Stand Alone Premium Cosmetics Department In High-End Mall

PARKSON YOUNG PARKSON NEWCORE City Outlet Store Targeting Millennials 100% Business Growth

PARKSON KIDS PARKSON FOOD

THE JOURNEY CONTINUES Thank You