MK Restaurant Group PCL (M) 3Q2017 Presentation Results November - - PowerPoint PPT Presentation

3Q2017 Presentation Results November 2017

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 3Q2017 Key Financial Highlights Business Update

2

Business Structure



Japanese restaurant: Yayoi



Registered Capital: 400 MB



Training services for MK group



Registered Capital: 35 MB



Restaurants in Singapore



Registered Capital: SGD12.5 Million (~ 320 MB)



MK Restaurants in Japan



Registered Capital: JPY250 Million (~80 MB)

12% MK Interfoods Co.,Ltd. “MKI” MK Services Training Center Co.,Ltd. “MKST” Plenus & MK Pte.Ltd. “Plenus & MK”

(Joint Venture)

Plenus-MK Co.,Ltd. “Plenus MK”

(Joint Venture)

50% 100% 100%



Suki restaurant : MK Suki, MK Gold



Thai restaurant : Na Siam, Le Siam



Japanese restaurant : Hakata, Miyazaki



Coffee shop & Bakery : Le Petit



Franchise

MK Restaurant Group Plc. “M”



Food manufacturer & Distributor



Registered Capital: 280 MB

International Food Supply Co.,Ltd. “IFS” 100%

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand

• No. of Outlets

Average Spending (THB) Suki Restaurant MK 424 310 MK Gold 6 580 MK Live 1 590 Japanese Restaurant Yayoi 161 240 Miyazaki 26 340 Hakata 3 200 Thai Restaurant Na Siam 1 250 Le Siam 4 810 Coffee Shop & Bakery Le Petit 3 170

Remark: Data as of Sep 2017

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

70 79 89 99 97 43 50 51 59 64 2013 2014 2015 2016 3Q2017

Bangkok & Metropolitan area Provincial area

176 189 197 199 200 205 218 222 225 231 2013 2014 2015 2016 3Q2017

Bangkok & Metropolitan area Provincial area

Extensive Coverage Nationwide

North MK & MK Gold 22 Yayoi 5 West MK & MK Gold 19 Yayoi 8 North East MK & MK Gold 58 Yayoi 14 South MK & MK Gold 48 Yayoi 10 East MK & MK Gold 44 Yayoi 15 BKK & Greater BKK MK & MK Gold 200 Yayoi 97 Central MK & MK Gold 40 Yayoi 12

Branches

Japan

MK 33

Japan

an

MK 5

Vietnam

an

Yayoi 7

Singapore

54% 46%

419 424 381

40% 60%

158 113

407

129 140

an

MK 1 / Miyazaki 1

Lao PDR

431

161

5

0%

• 4%
• 12%
• 8%
• 5%

3% 2%

• 1%

2%

• 3%

3%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Same-Store Sales Growth

In 3Q2017, same-store sales growth for MK & Yayoi improved compared to the previous year. 3% 3%

• 3%
• 8%
• 1%

5% 8% 3% 1%

• 1%

8%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

6

Agenda

Company Overview 3Q2017 Key Financial Highlights Business Update

7

Total Revenues and Net Profit

%YoY Growth 2012 2013 2014 2015 2016 9M17 Total Revenues 21% 8% 6% 0% 4% 5% Net Profit 25% 0% 0%

• 9%

13% 20% Million Baht

13,141 14,139 14,957 14,923 15,498 11,637 12,228 2,031 2,039 2,042 1,856 2,100 1,561 1,879

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 2012 2013 2014 2015 2016 9M16 9M17 Total Revenues Net Profit

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 3Q2017, revenues from sales & services grew up 9% compared to the prior year due primarily to the new branch expansion as well as the same-store sale growth.

THB Million THB Million

MK, 79% Yayoi, 19% Others, 2% 3,598 4,046 3,717 3,805 4,106 4,033 11,361 11,944

1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17

+9% YoY +5% YoY

2,423 2,720 2,470 2,572 2,798 2,738 7,613 8,109 67.3% 67.2% 66.5% 67.6% 68.2% 67.9% 67.0% 67.9%

0% 10% 20% 30% 40% 50% 60%

• 2,000

4,000 6,000 8,000 10,000 12,000

1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17

+7% YoY +11% YoY

9 SG&A

In 3Q2017, SG&A slightly increased 5% YoY compared to the prior year primarily due to the increase of expenses from new branch expansion.

SG&A Expenses

9M2017 SG&A Expenses Breakdown

THB Million

1,963 2,049 1,942 1,960 2,074 2,039 5,954 6,073 53% 50% 51% 50% 49% 49% 51% 50%

0% 10% 20% 30% 40% 50%

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17

+5% YoY +2% YoY

Personel, 52% Rental, 19% Utilities, 7% Depreciation , 8% Others, 14%

10 Net Profit

THB Million

EBITDA

In 3Q2017, EBITDA & Net Profit grew 19% and 28% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

760 976 844 910 1,044 1,008 2,580 2,961 20.6% 23.6% 22.1% 23.4% 24.8% 24.4% 22.2% 24.2%

0% 5% 10% 15% 20% 25%

• 1,000

2,000 3,000 4,000 5,000 6,000

1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17

+15 YoY +19% YoY

438 613 510 553 675 651 1,561 1,879 11.9% 14.8% 13.4% 14.2% 16.0% 15.8% 13.4% 15.4%

0% 2% 4% 6% 8% 10% 12% 14% 16%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000

1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17

+28% YoY +20% YoY

11 Current Ratio D/E Ratio

Financial Ratio

Liquidity is at a comfortable level as well as strong capital base to support growth

ROA (%) ROE (%)

2,265 2,054 13,377 13,276 0.17 0.15

• 0.02

0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18

• 5,000

10,000 15,000 20,000

31-Dec-16 30-Sep-17

Total Liabilities Shareholders's Equity D/E

5.4 5.6 31-Dec-16 30-Sep-17 13.7% 16.1% 31-Dec-16 30-Sep-17 15.9% 18.5% 31-Dec-16 30-Sep-17

12

Agenda

Company Overview 3Q2017 Key Financial Highlights Business Update

13

Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide

Outlet Expansion Plan

• No. of New
• utlets opened

in 9M2017 Plan

• No. of New
• utlets in 2017

11 7 MK Yayoi Others 17 14 1 MK Yayoi Others

14

Marketing Campaign – MK

15

Marketing Campaign – Yayoi

16