MK Restaurant Group PCL (M) 4Q2019 Presentation Results February - - PowerPoint PPT Presentation

4Q2019 Presentation Results February 2020

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 4Q2019 Key Financial Highlights Business Update

2

Business Structure

MK Restaurant Group Public Company Limited (M)

Plenus & MK Pte. Ltd. Plenus MK Co.,Ltd. 100% MK Service Training Center Co., Ltd. 100% 50% 12%

 Yayoi Japanese

Restaurants

 Registered Capital:

400 MB

 Provide training services  Registered Capital:

35 MB

 Food manufacturer &

distributor

 Registered Capital:

280 MB

 Restaurants in

Singapore

 Registered Capital:

SGD12.5 Million

 MK Suki Restaurants

in Japan

 Registered Capital:

JPY 250 million MK Suki, MK Gold and MK Live restaurants Thai restaurants – Na Siam and Le Siam Japanese restaurants – Miyazaki and Hakata Others – Le Petit, MK Harvest, Bizzy Box Overseas franchise

 Provide logistics &

warehouse services

 Registered Capital:

1,750 MB

International Food Supply Co., Ltd. 100% M-Senko Logistics Co., Ltd. 49.75% Mark One Innovation Center Co., Ltd. 100%

 Research & development  Registered Capital:

60 MB

Catapult Co., Ltd. 100% MK Interfood Co., Ltd.

 Restaurant business  Registered Capital:

2,070 MB

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand

• No. of Outlets

Suki Restaurant MK 451 MK Gold 6 MK Live 6 Japanese Restaurant Yayoi 198 Miyazaki 23 Hakata 6 Thai Restaurant Na Siam 1 Le Siam 3 Others Le Petit 3 Bizzy Box 8 Harvest 1

Remark: Data as of Dec 2019

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Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

89 99 97 106 116 51 59 68 78 82 2015 2016 2017 2018 2019

Bangkok & Metropolitan area Provincial area

197 199 200 202 213 222 225 235 246 250 2015 2016 2017 2018 2019

Bangkok & Metropolitan area Provincial area

Extensive Coverage Nationwide

North MK / Gold / Live 24 Yayoi 6 West MK / Gold / Live 19 Yayoi 7 North East MK / Gold / Live 63 Yayoi 18 South MK / Gold / Live 51 Yayoi 14 East MK / Gold / Live 49 Yayoi 21 BKK & Greater BKK MK / Gold / Live 213 Yayoi 116 Central MK / Gold / Live 44 Yayoi 16

Branches

Japan

MK 36

Japan

an

MK 9

Vietnam

an

Yayoi 10

Singapore

54% 46%

419 424 448

41% 59%

158 184 140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

463

198

5

3% 0% 0%

• 1%

2% 2%

• 4%

0% 1% 0%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

Same-Store Sales Growth

In Y2019, same-store sales growth for MK and Yayoi were 0% and -5% respectively compared to the previous year.

3% 1%

• 4%

0% 0%

• 3%
• 9%
• 7%

0%

• 5%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

6

Agenda

Company Overview 4Q2019 Key Financial Highlights Business Update

7

Total Revenues and Net Profit

%YoY Growth 2014 2015 2016 2017 2018 2019 Total Revenues 6% 0% 4% 6% 5% 4% Net Profit 0%

• 9%

13% 15% 6% 1%

Million Baht

14,957 14,923 15,498 16,458 17,234 17,871 2,042 1,856 2,100 2,425 2,574 2,604

2014 2015 2016 2017 2018 2019 Total Revenues Net Profit

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In Y2019, revenues from sales & services grew 4% from the previous year due primarily to the branch expansion

THB Million THB Million

4,049 4,249 4,177 4,295 4,352 4,470 4,102 4,485 16,770 17,409

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 +4% YoY +4% YoY

2,773 2,911 2,859 2,933 2,979 3,085 2,804 3,059 11,475 11,926 68.5% 68.5% 68.4% 68.3% 68.4% 69.0% 68.3% 68.2% 68.4% 68.5%

0% 10% 20% 30% 40% 50% 60% 70%

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 4% YoY +4% YoY MK, 78% Yayoi, 19% Others, 3%

9 SG&A

In Y2019, SG&A increased 4% YoY compared to the prior year primarily due to the increase of rent, operating expenses and personnel expenses .

SG&A Expenses

Y2019 SG&A Expenses Breakdown

THB Million

+3% YoY +4% YoY

2,114 2,233 2,168 2,290 2,218 2,344 2,269 2,352 8,806 9,183

51% 51% 50% 52% 50% 51% 54% 51% 51% 51%

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

• 2,000

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

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

Personel, 52% Rental, 20% Utilities, 7% Depreciation, 7% Others, 14%

10 Net Profit

THB Million

EBITDA

In Y2019, Both EBITDA & Net Profit grew 1% YoY compared to the previous year

THB Million

EBITDA & Net Profit

982 1,014 1,021 935 1,062 1,047 861 1,013 3,952 3,982 23.6% 23.1% 23.7% 21.3% 23.8% 22.8% 20.3% 22.0% 22.9% 22.3%

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

• 1,000

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

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 +8% YoY +1% YoY

632 659 676 606 710 689 549 656 2,574 2,604 15.2% 15.1% 15.7% 13.8% 15.9% 15.0% 13.0% 14.3% 14.9% 14.6%

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

• 500

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

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 +1% YoY +8% 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 (%) 2,998 3,315 14,176 14,306

0.21 0.23

• 0.05

0.10 0.15 0.20

• 5,000

10,000 15,000 20,000

31-Dec-18 31-Dec-19 Total Liabilities Shareholders's Equity D/E

4.2 3.5

31-Dec-18 31-Dec-19

15.4% 14.8%

31-Dec-18 31-Dec-19

18.4% 18.3%

31-Dec-18 31-Dec-19

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Agenda

Company Overview 4Q2019 Key Financial Highlights Business Update

13

Notable Events in 2019

• Mar 19, 2019

Awarded “Thailand Top Company Awards 2019” in “Food & Beverage” category from Business+ Magazine & University of The Thai Chamber of Commerce.

• Apr 26, 2019

Opened 8th MK Branch in Hanoi, Vietnam.

• Jun 7, 2019

The Company was included in “THAIPAT Institute’s 2019 ESG100”, recognized as outstanding performance in environment, social and governance aspects for 4 consecutive years.

• Jun 11, 2019

Set up the new subsidiary “Catapult” to invest in food business with registered capital Baht 2,070 million

• Jun 28, 2019

Opened 9th MK Branch in Ho Chi Minh City, Vietnam.

• Oct 23, 2019

Awarded “Asian Service Award 2019” from The Standards and Quality Association of Thailand (SQAT) for excellence in quality management.

• Nov 28, 2019

Awarded “Thailand Corporate Excellence Awards 2019” in the category of “Marketing Excellence” and “Corporate Improvement Excellence” organized by Thailand Management Association (TMA) and Sasin Graduate Institute of Business Administration of Chulalongkorn University.

• Nov 29, 2019

Invested in shares of “Laem Charoen Seafood” with 65% of shares by Catapult.

14

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

Outlet Expansion Plan

• No. of New
• utlets opened

in Y2019 Plan

• No. of New
• utlets in 2020

16 9 5

MK Yayoi Others

17 15 8

MK Yayoi Others

15

Marketing Campaign in 4Q2019 – MK

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Marketing Campaign in 4Q2019 – MK

17

Marketing Campaign in 4Q2019 – Yayoi

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Marketing Campaign in 4Q2019 – Yayoi

19