FY2019 AGM CORPORATE ORATE PRESENTATION 21 January 2020 CONTE - - PowerPoint PPT Presentation

KIMLY LIMITED

FY2019 AGM

CORPORATE ORATE PRESENTATION

21 January 2020

CONTE NTENTS NTS

• Corporate Profile
• Strategy Recalibration
• Financial Highlights
• Outlook

CORPO PORATE P RATE PROFILE OFILE

Listed on 20th March 2017 on the SGX Catalist Board, Kimly Limited is a leading and established

• perator of coffeeshops, food courts and other

food outlets across Singapore, with a proven track record of nearly 30 years. Kimly operates a total of 70 food outlets under its Outlet Management Division and 135 food stalls under its Food Retail Division as at 26th November 2019.

KIML KIMLY LIMI Y LIMITED ED

Outlet M let Management agement Divi Division

• n

Food Food Retai Retail Divisio ision n

EXPANDIN PANDING G OUR F R FOOTPRIN OTPRINT

Location Type Drink Stall Mixed Vegetable Rice Stall Seafood Zi Char Stall Dim Sum Stall Kanaaji Blk 691, Woodlands Drive 73 Awarded under HDB PQM Blk 365, Sembawang Crescent Awarded under HDB PQM Blk 322, Sumang Walk Awarded under HDB PQM Blk 143, Teck Whye Lane Acquisition Blk 106, Bidadari Park Drive Managing Agent Under 3rd party brand Flavors @ U-Town Awarded new lease

STRATEG TEGY R RECALIBR IBRATIO ATION

Asset Ownership

• Direct ownership to enlarge revenue

streams.

• Maximizing Central Kitchen’s

capabilities with Food Retail expansion.

• Stability of Food Retail businesses

through long term leases. Asset

• wnership

STRATEG TEGY R RECALIBR IBRATIO ATION

• To further expand the Group’s network of food outlets
• To establish new food outlets and food stalls as and

when strategic locations become available

• Enable the Group to mitigate uncertainty surrounding

its private leases, which can be influenced by market competition

Rationale of Asset Ownership

STRATEG TEGY R RECALIBR IBRATIO ATION

Acquisition Consideration

S$14.0 million

Net Floor Area

224 sqm

Opening Date

In Operations

Food Retail Division

Dim Sum Stall and Mixed Vegetable Rice Stall

Characteristics

Densely Populated Matured Housing Estate, Schools and Private residential clusters. Served by 3 LRT stations.

Keat Hong LRT Station Teck Whye LRT Station Teck Whye Neighborhood Centre Blk Blk 143 T 3 Teck eck Whye hye Lane ane Phoenix LRT Station

Newly-acquired coffeeshop: Blk 143, Teck Whye Lane

STRATEG TEGY R RECALIBR IBRATIO ATION

Newly-acquired coffeeshop: Blk 143, Teck Whye Lane

*Non-binding term sheet between Jin Wei Holdings Pte. Ltd. and several

vendors for the acquisition

• f

a portfolio

• f

coffeeshop leases, coffeeshop units and industrial canteen units

STRATEG TEGY R RECALIBR IBRATIO ATION

Target Properties comprises:

• Four long term leasehold coffeeshop properties units, which are HDB commercial

units located within mature HDB estates;

• Three freehold industrial canteen units, which are located in mature and populated

industrial areas in close proximity to residential areas; and

• Three short term coffeeshop leases, which are HDB direct leases, located within

mature and populated HDB residential areas (The acquisition by the Group of interests in the entities holding the HDB leases for the three coffeeshop properties does not constitute an assignment of tenancy).

Further enlarging our footprints

*Please refer to the Group’s announcement released on 22 October 2019 for more information.

AWARDED UNDER HDB PQM: Blk 691, Woodlands Drive 73

Blk Blk 691, 1, Woodland

• dlands

s Dr Dr 73 73

Opening Date In Operations Food Retail Division

Seafood Zi Char Stall and Mixed Vegetable Rice stall.

Characteristics

Matured Housing Estate, established footfall, close proximity to industrial

• parks. More new housing estates are

being constructed in close proximity.

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

AWARDED UNDER HDB PQM: Blk 691, Woodlands Drive 73

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

AWARDED UNDER HDB PQM: Blk 365, Sembawang Crescent

Blk Blk 365, 5, Sembawan mbawang Crescent escent

Opening Date In Operations Food Retail Division

Dim Sum stall and Mixed Vegetable Rice stall.

Characteristics

Combination of a new and matured Housing Estate, near schools, close proximity to industrial parks.

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

AWARDED UNDER HDB PQM: Blk 365, Sembawang Crescent

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

AWARDED UNDER HDB PQM: Blk 322, Sumang Walk

Blk Blk 322, 2, Sumang mang Wal Walk

Opening Date In Operations Food Retail Division

Dim Sum stall and Mixed Vegetable Rice stall.

Characteristics

Right beside park connector, highly populated Schools and

• Condominiums. Served by 2 LRT

and 1 MRT stations. Limited F&B establishments in Sumang, Punggol estates.

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

Enhancing Tray Return Reward System

• Customers will return used cutlery and crockery to collection

device located at a convenient area within the food outlet

• Reward: QR code for discount at food stall (synchronised with

POS system to allow monitoring)

• Workload for cleaners and food outlet staff is reduced

Cashless Payment at Bukit Batok Blk 292, U-Town, Jurong West Blk 651

• Convenient alternative cashless payment methods, staying

relevant to our younger customers who are more familiar with such cashless payment methods

• More than 50% of transactions are made through cashless

payment options at Flavors@U-Town’s drinks stall.

Progressing with time

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

Launch of New Improved Taste of our Traditional Kopi & Teh Peng! Cater to consumers’ preference Progressing with time

Can Drinks

Traditional Kopi and Teh Peng

Estimated Opening Date

IN OPERATIONS (Asset enhancement done in 2019)

Food Retail Division

Drinks stall, Kanaagi Japanese food stall, Mixed Vegetable Rice stall

Characteristics

Serves a large captive population in University Town. Close proximity to student

• accommodation. Anchored by

heritage hawker, Tian Tian Chicken Rice from Maxwell.

Flavors@U avors@U-To Town wn

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

Progressing with time: Flavours @ University Town, NUS

OUTLE OUTLET MANAGE MANAGEMENT DIVIS T DIVISION

Progressing with time: Flavours @ University Town, NUS

FOO FOOD RETAIL TAIL DIVIS VISION ION Seafood afood “Zi Zi Char” ar” Stalls alls

Increase number

• f semi-

finished food items prepared at central kitchen Better consistency in food quality Tablet ordering + Food pager system + POS system + HQ ERP Reduced workload for stall workers, reduce reliance

• n highly-

skilled chefs Central Kitchen increase in productivity with machinery

Harnessing the strengths of our Central Kitchen and IT capabilities to improve productivity

• Replacing manual repetitive low value work with the help of food processing machines.

Increased productivity Improved quality and consistency control Improve revenue per worker contribution Cost savings through bulk purchase

FOO FOOD RETAIL TAIL DIVIS VISION ION Mixed xed Vegetab getable le Ric Rice Stalls alls

Harnessing the strengths of our Central Kitchen and IT capabilities to improve productivity

• Implementation of Combi-Oven

Automation of several cooking processes Freeing up precious time so our frontline staff

can do more higher value work, eg: improving customer service and hygiene management

Reduced man-hour requirements for food

preparation

Energy-saving and heat reduction capabilities

to make work environment more conducive to attract more seniors to join our industry

Automation of several cooking processes Reduced man-hour requirements for food preparation Implementation of Combi-Oven

FOO FOOD RETAIL TAIL DIVIS VISION ION Mixed xed Vegetab getable le Ric Rice Stalls alls

Harnessing the strengths of our Central Kitchen and IT capabilities to improve productivity

Bak Kwa Pau Newest product in Dim Sum menu Strong response from customers Increased reach of

• nline

delivery footprint Target Incentive Program to improve sales

FOO FOOD RETAIL TAIL DIVIS VISION ION Dim Dim Sum Sum Stal Stalls

Harnessing the strengths of our Central Kitchen and IT capabilities to improve productivity

• The Group continues to devise new attractive products catering to changing consumer preferences.

FINANCI FINANCIAL HIGHLIGHTS AL HIGHLIGHTS

97.6 111.2 113.6 111.1 74.6 80.9 88.6 97.2 FY2016 FY2017 FY2018 FY2019 Outlet Management Division Food Retail Division

172.2 192.1 202.2 208.3

43.4% 56.6% 42.1% 57.9% 43.8% 56.2% 46.7% 53.3%

REVENUE BY BUSINESS SEGMENT (S$’M)

3.0% / S$6.1 m y-o-y

FY2019 Revenue S$208.3 m

Outlet Management S$111.1 m

2.2% / S$2.5 m y-o-y

• Due mainly to cessation of
• peration of a coffeeshop

Food Retail S$97.2 m

8.8% / S$8.6 m y-o-y

• Due mainly to revenue

contribution from new businesses (Tonkichi and Rive Gauche) and delivery sales

FINANCIAL HIGHLIGHTS

PROFITABILITY

37.2 38.4 40.2 40.7 21.6% 20.0% 19.9% 19.5%

10 15 20 25 30 35 40 45

FY2016 FY2017 FY2018 FY2019

Gross Profit (S$’m) & Gross Profit Margin (%)

Gross Profit Gross Profit Margin

27.5 27.1 27.4 26.0 16.0% 14.1% 13.6% 12.5%

0.00% 4.00% 8.00% 12.00% 16.00% 20.00% 7.0 11.0 15.0 19.0 23.0 27.0

FY2016 FY2017 FY2018 FY2019 EBITDA EBITDA Margin

EBITDA (S$’M) & EBITDA MARGIN (%)

FINANCI FINANCIAL HIGHLIGHTS AL HIGHLIGHTS

NET PROFIT AFTER TAX (S$’M)

NPAT S$20.1 m

8.4% / S$1.8 m y-o-y

• The increase in gross profit of

$0.5 mil was affected by higher selling and distribution expense, administrative expense and income tax expense.

24.2 21.4 21.9 20.1 14.1% 11.2% 10.8% 9.6%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 5 10 15 20 25 30

FY2016 FY2017 FY2018 FY2019 NPAT Net Profit Margin

FINANCI FINANCIAL HIGHLIGHTS AL HIGHLIGHTS

PBT (S$’M) & PROFIT MARGIN (%) BY BUSINESS SEGMENT

10.9 11.8 11.5 10.4 11.2% 10.6% 10.2% 9.4%

0.00% 8.00% 4 8 12

FY2016 FY2017 FY2018 FY2019 Profit Before Tax Profit Margin

Outlet Management S$10.4 m

11.0% / S$1.1 m y-o-y

• Due mainly to
• continued pressure
• n rents and payroll

costs

• gestation period for

new outlets located in new precincts.

FINANCI FINANCIAL HIGHLIGHTS AL HIGHLIGHTS

PBT (S$’M) & PROFIT MARGIN (%) BY BUSINESS SEGMENT

15.5 18.0 18.8 19.2 20.7% 22.2% 21.2% 19.7%

5.00% 13.00% 21.00% 7.0 11.0 15.0 19.0

FY2016 FY2017 FY2018 FY2019 Profit Before Tax Net Profit Margin

Food Retail S$19.2 m

2.2% / S$0.4 m y-o-y Lower profit margin due to:

• Continued pressure on

ingredients and payroll costs

• restaurant and confectionery

business have a lower profit margin

FINANCI FINANCIAL HIGHLIGHTS AL HIGHLIGHTS

CASH GENERATIVE BUSINESS LEADING TO STRONG OPERATING CASH FLOW

28.4 29.0 7.2 36.4

0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.0

FY2016 FY2017 FY2018 FY2019

Net Cash Generated From Operating Activities (S$’M)

Sep 2019 Cash and cash equivalents

S$87.2 m

Sep 2019 Net cash

S$53.9 m

FY2019 net cash generated from operating activities

S$36.4 m

Lower net cash generated from operating activities in FY2018 due to consideration receivable of $16.0 m pursuant to the Rescission.

FINANCI FINANCIAL HIGHLIGHTS AL HIGHLIGHTS

DIVIDENDS

FY2018 FY2019

Interim Dividend 0.28 Singapore cent per share, paid in May 2018 Final Dividend 0.68 Singapore cent per share, paid in February 2018

Final Dividend Final Dividend (subject to (subject to approval) approval)

0.84 0.84

Singapor ngapore c e cent p nt per s r share, are, pay payment date date TBA TBA

Inte teri rim m Divi vide dend nd

0.56 56

Singa Singapore re cent cent per share per share, paid in paid in July July 2019 2019

Total of 0.96 SG cent per ordinary share 50.7% payout ratio 4.36% dividend yield

Total of 1.40 SG cents per

• rdinary share

80.2% payout ratio 6.0% dividend yield

DIVIDENDS

OUTLO TLOOK OK

Recalibration of corporate strategy and leveraging on improved central kitchen and supply chain functions to pursue asset ownership Expansion of footprint in mature and populated estates with established footfalls, growing of market presence and standing as

• ne of the leading F&B operators

in Singapore Barring unforeseen circumstances, the Group expects to continue to be profitable in the financial year ahead