MK Restaurant Group PCL (M) 3Q2015 Presentation Results November - PowerPoint PPT Presentation

Company Presentation MK Restaurant Group PCL (“M”) 3Q2015 Presentation Results November 2015 Strictly Confidential

Agenda Company Overview 3Q2015 Key Financial Highlights Business Update 1

Business Structure MK Restaurant Group Plc. “M” Suki restaurant : MK Suki, MK Gold  Thai restaurant : Na Siam, Le Siam  Japanese restaurant : Hakata, Miyazaki  Coffee shop & Bakery : Le Petit  Franchise  100% 100% 100% 50% 12% MK Interfoods Co.,Ltd. MK Services Training International Food Plenus & MK Pte.Ltd. Plenus-MK Co.,Ltd. “MKI” “ Plenus & MK” “ Plenus MK” Center Co.,Ltd. Supply Co.,Ltd. “MKST” “IFS” (Joint Venture) (Joint Venture) Restaurants in Singapore Training services for MK Food manufacturer & Japanese restaurant:  MK Restaurants in Japan     Registered Capital: group Distributor  Yayoi Registered Capital:  SGD12.5 Million (~ 320 Registered Capital: 35 Registered Capital: 100 Registered Capital: 400   JPY250 Million (~80 MB)  MB MB MB) MB 2

Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Average Spending (THB) Suki Restaurant MK 411 290 6 520 MK Gold Japanese Restaurant 136 230 Yayoi Miyazaki 20 250 Hakata 3 200 Thai Restaurant 1 270 Na Siam 4 580 Le Siam 3 170 Coffee Shop & Le Petit Bakery 3 Remark: Data as of Sep 2015

Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage 417 Extensive Coverage Nationwide 407 381 354 Branches 314 North 222 218 53% MK & MK Gold 23 205 182 Yayoi 5 157 North East MK & MK Gold 52 West Yayoi 12 MK & MK Gold 17 Yayoi 4 195 189 176 47% 172 157 East MK & MK Gold 45 Central Yayoi 12 MK & MK Gold 38 Yayoi 11 2011 2012 2013 2014 3Q2015 BKK & Greater BKK MK & MK Gold 195 Bangkok & Metropolitan area Provincial area Yayoi 85 136 129 113 51 South 50 91 37% 47 MK & MK Gold 43 Yayoi 7 64 30 Vietnam Japan Singapore 22 85 an Japan an 63% 79 70 61 42 MK 30 MK 2 / Yayoi 6 MK 3 2011 2012 2013 2014 3Q2015 Bangkok & Metropolitan area Provincial area 4 Remark: Data as of Sep 2015

Same-Store Sales Growth Negative Same-Store Sales Growth primarily due to the economic slowdown 6% 0% 2012 2013 2014 1Q15 2Q15 3Q15 -3% -4% -4% -12% 15% 3% 3% 1% 2012 2013 2014 1Q15 2Q15 3Q15 -3% -4% 5

Agenda Company Overview 3Q2015 Key Financial Highlights Business Update 6

Total Revenues and Net Profit Total Revenues Net Profit 16,000 14,957 14,139 13,141 14,000 11,146 12,000 11,035 10,824 10,000 9,078 8,000 6,000 4,000 2,031 2,039 2,042 1,625 1,393 1,361 1,234 2,000 - 2010 2011 2012 2013 2014 9M14 9M15 %YoY Growth 2010 2011 2012 2013 2014 9M15 Total Revenues 13% 19% 21% 8% 6% 1% Net Profit 26% 32% 25% 0% 0% -2% 7

Revenues Growth In 3Q2015, revenues from sales & services dropped 6% YoY due largely to the economic slowdown Revenues from Sales and Services Revenue Contribution THB Million Others +1% YoY 2% Yayoi 10,692 10,814 16% -6% YoY 3,749 3,643 3,708 3,585 3,481 3,342 MK MK 82% 82% 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 Gross Profit THB Million 66% 66% 66% 65% 65% 65% 66% 65% 12,000 60% 10,000 +2% YoY 50% 8,000 7,099 6,982 40% 6,000 -7% YoY 30% 4,000 2,419 2,471 2,350 2,367 20% 2,212 2,261 2,000 10% - 0% 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 8

SG&A Expenses In 3Q2015, SG&A increased 2% compared to the previous year primarily due to the increase of the rent, depreciation as well as salaries and wages. SG&A 3Q2015 SG&A Expenses Breakdown THB Million 53% 52% 51% 51% 51.4% 50.6% 50% 10,000 49% 50% 9,000 Others, 23% 8,000 +3% YoY 40% 7,000 5,589 5,730 6,000 Personel, 51% 30% Utilities, 8% 5,000 +2% YoY 4,000 20% Rental, 18% 3,000 1,750 1,962 1,876 1,880 1,942 1,908 2,000 10% 1,000 - 0% 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 9

EBITDA & Net Profit In 3Q2015, EBITDA & Net Profit dropped 22% and 30% YoY respectively compared to the previous year EBITDA THB Million 22% 22% 22% 21% 4,000 22% 21% 19% 18% +1% YoY 20% 3,000 2,282 2,311 15% -22% YoY 2,000 10% 847 847 800 747 689 664 1,000 5% - 0% 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 Net Profit THB Million -2% YoY 2,400 16.0% 13.5% 13.7% 13.4% 13.0% 12.6% 14.0% 12.2% 1,900 10.7% 10.2% 12.0% 1,393 1,361 10.0% 1,400 8.0% -30% YoY 900 6.0% 522 516 480 468 403 365 4.0% 400 2.0% (100) 0.0% 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 10

Financial Ratio Liquidity is at a comfortable level as well as strong capital base to support growth D/E Ratio Current Ratio 0.17 20,000 5.7 0.14 0.15 4.7 15,000 12,681 12,470 0.10 10,000 0.05 5,000 2,198 1,803 - - 31-Dec-14 30-Sep-15 31-Dec-14 30-Sep-15 Total Liabilities Shareholders's Equity D/E ROA (%) ROE (%) 16.4% 16.2% 14.3% 13.7% 31-Dec-14 30-Sep-15 31-Dec-14 30-Sep-15 11

Agenda Company Overview 3Q2015 Key Financial Highlights Business Update 12

Outlet Expansion Plan Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 17 13 13 Plan No. of New Outlets in 2015 MK Yayoi Others 5 4 4 4 4 No. of New 3 3 outlets opened in 9M2015 1 1 MK Yayoi Others 1Q15 2Q15 3Q15 13

Marketing Campaign – MK Promotion “MK Fruity Smoothies” “MK Duo Soup” Kurobuta Set Seafood Kimchi Set Original Set 14

Marketing Campaign – MK Mother’s Day  MK MOTHER’S DAY (I LOVE YOU MOM)  Placemat  Coaster  Hanging  Window Sticker  Photo Frame  Mother’s day Promotion  Premium Bag for MOM  Dine-in every 1,200 baht Get FREE MK Mom’s bag (Limited Edition) 1 bag.  12 August 2015 (until out of stock) MK I Love you MOM BAG 15

MK Line Promotion  To promote MK News & Activities and MK Promotion.  To build brand awareness continuously. 16

Marketing Campaign – Yayoi Promotion 17

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