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

Company Presentation MK Restaurant Group PCL (“M”) 4Q2019 Presentation Results February 2020

Agenda Company Overview 4Q2019 Key Financial Highlights Business Update 1

Business Structure MK Restaurant Group Public Company Limited (M) 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 100% 100% 100% 49.75% 100% MK Service MK Interfood International Food M-Senko Logistics Catapult Co., Ltd. Training Center Co., Ltd. Supply Co., Ltd. Co., Ltd. Co., Ltd.  Provide logistics &  Yayoi Japanese  Food manufacturer &  Provide training services  Restaurant business distributor warehouse services Restaurants  Registered Capital:  Registered Capital:  Registered Capital:  Registered Capital:  Registered Capital: 35 MB 2,070 MB 400 MB 280 MB 1,750 MB 100% 50% 12% Mark One Plenus & MK Pte. Innovation Center Plenus MK Co.,Ltd. Ltd. Co., Ltd.  Research & development  Restaurants in  MK Suki Restaurants  Registered Capital: Singapore in Japan 60 MB  Registered Capital:  Registered Capital: SGD12.5 Million 2 JPY 250 million

Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Suki Restaurant MK 451 6 MK Gold MK Live 6 Japanese Restaurant 198 Yayoi Miyazaki 23 Hakata 6 Thai Restaurant 1 Na Siam 3 Le Siam Others 3 Le Petit 8 Bizzy Box 1 Harvest 3 Remark: Data as of Dec 2019

Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage 463 Extensive Coverage Nationwide 448 435 424 419 Branches North 250 246 54% 235 225 MK / Gold / Live 24 222 Yayoi 6 North East MK / Gold / Live 63 West Yayoi 18 MK / Gold / Live 19 Yayoi 7 213 202 197 199 200 46% East MK / Gold / Live 49 Central Yayoi 21 MK / Gold / Live 44 Yayoi 16 2015 2016 2017 2018 2019 BKK & Greater BKK MK / Gold / Live 213 Bangkok & Metropolitan area Provincial area Yayoi 116 198 184 165 158 140 82 78 South 41% 68 MK / Gold / Live 51 59 Yayoi 14 51 Vietnam Japan an Japan 59% 116 106 99 97 89 MK 9 MK 36 Lao PDR Singapore 2015 2016 2017 2018 2019 an an Bangkok & Metropolitan area Provincial area 4 MK 2 / Miyazaki 1 Yayoi 10

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% 2% 2% 1% 0% 0% 0% 0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 -1% -4% 3% 1% 0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 0% 0% -3% -4% -5% -7% -9% 5

Agenda Company Overview 4Q2019 Key Financial Highlights Business Update 6

Total Revenues and Net Profit Million Baht Total Revenues Net Profit 17,871 17,234 16,458 15,498 14,957 14,923 2,604 2,574 2,425 1,856 2,100 2,042 2014 2015 2016 2017 2018 2019 %YoY Growth 2014 2015 2016 2017 2018 2019 Total Revenues 6% 0% 4% 6% 5% 4% Net Profit 0% -9% 13% 15% 6% 1% 7

Revenues Growth In Y2019, revenues from sales & services grew 4% from the previous year due primarily to the branch expansion Revenues from Sales and Services Revenue Contribution THB Million Others, 3% +4% YoY 17,409 Yayoi, 19% 16,770 +4% YoY 4,049 4,249 4,177 4,295 4,352 4,470 4,102 4,485 MK, 78% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Gross Profit THB Million +4% YoY 68.3% 68.5% 68.5% 68.4% 68.4% 69.0% 68.3% 68.2% 68.5% 68.4% 16,000 70% 11,475 11,926 14,000 60% 12,000 50% 10,000 4% YoY 40% 8,000 30% 6,000 2,859 3,085 3,059 2,911 2,933 2,979 2,773 2,804 20% 4,000 10% 2,000 - 0% 8 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

SG&A Expenses 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 Y2019 SG&A Expenses Breakdown THB Million +4% YoY 50% 51% 54% 51% 51% 51% 51% 51% 50% 52% Others, 12,000 14% 50% 8,806 9,183 Depreciation, 10,000 7% 40% 8,000 Utilities, Personel, 30% 7% 6,000 52% +3% YoY 20% 4,000 Rental, 2,114 2,233 2,168 2,290 2,218 2,344 2,269 2,352 20% 10% 2,000 - 0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 9

EBITDA & Net Profit In Y2019, Both EBITDA & Net Profit grew 1% YoY compared to the previous year EBITDA THB Million +1% YoY 23.6% 23.7% 23.8% 23.1% 22.8% 6,000 22.9% 22.3% 22.0% 25% 21.3% 20.3% 5,000 3,952 3,982 20% 4,000 +8% YoY 15% 3,000 10% 2,000 1,062 1,047 982 1,014 1,013 1,021 935 861 5% 1,000 - 0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Net Profit THB Million +1% YoY 15.9% 15.2% 15.7% 13.8% 15.1% 4,000 15.0% 14.9% 14.3% 14.6% 16% 13.0% 3,500 14% 2,604 2,574 3,000 12% 2,500 10% 2,000 +8% YoY 8% 1,500 6% 710 676 689 632 659 656 606 549 1,000 4% 500 2% - 0% 10 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

Financial Ratio Liquidity is at a comfortable level as well as strong capital base to support growth Current Ratio D/E Ratio 0.23 4.2 0.21 3.5 20,000 0.20 14,306 14,176 15,000 0.15 10,000 0.10 2,998 3,315 5,000 0.05 - - 31-Dec-18 31-Dec-19 Total Liabilities Shareholders's Equity D/E 31-Dec-18 31-Dec-19 ROA (%) ROE (%) 18.4% 18.3% 14.8% 15.4% 31-Dec-18 31-Dec-19 31-Dec-18 31-Dec-19 11

Agenda Company Overview 4Q2019 Key Financial Highlights Business Update 12

Notable Events in 2019  Awarded “ Thailand Top Company Awards 2019 ” in Mar 19, 2019 “ Food & Beverage ” category from Business+ Magazine & University of The Thai Chamber of Commerce. Opened 8 th MK Branch in Hanoi, Vietnam.  Apr 26, 2019  The Company was included in “ THAIPAT Institute’s Jun 7, 2019 2019 ESG100 ”, recognized as outstanding performance in environment, social and governance aspects for 4 consecutive years.  Set up the new subsidiary “ Catapult ” to invest in food Jun 11, 2019 business with registered capital Baht 2,070 million Opened 9 th MK Branch in Ho Chi Minh City, Vietnam.  Jun 28, 2019  Awarded “ Asian Service Award 2019 ” from The Oct 23, 2019 Standards and Quality Association of Thailand (SQAT) for excellence in quality management .  Awarded “ Thailand Corporate Excellence Awards Nov 28, 2019 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. Invested in shares of “ Laem Charoen Seafood ” with  Nov 29, 2019 13 65% of shares by Catapult.

Outlet Expansion Plan Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 17 15 No. of New outlets opened 8 in Y2019 MK Yayoi Others 16 Plan No. of New 9 outlets in 2020 5 MK Yayoi Others 14

Marketing Campaign in 4Q2019 – MK 15

Marketing Campaign in 4Q2019 – MK 16

Marketing Campaign in 4Q2019 – Yayoi 17

Marketing Campaign in 4Q2019 – Yayoi 18

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