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

3Q2015 Presentation Results November 2015

MK Restaurant Group PCL (“M”)

Company Presentation Strictly Confidential

1

Agenda

Company Overview 3Q2015 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: 100 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 411 290 MK Gold 6 520 Japanese Restaurant Yayoi 136 230 Miyazaki 20 250 Hakata 3 200 Thai Restaurant Na Siam 1 270 Le Siam 4 580 Coffee Shop & Bakery Le Petit 3 170

Remark: Data as of Sep 2015

4

42 61 70 79 85 22 30 43 50 51 2011 2012 2013 2014 3Q2015

Bangkok & Metropolitan area Provincial area

157 172 176 189 195 157 182 205 218 222 2011 2012 2013 2014 3Q2015

Bangkok & Metropolitan area Provincial area

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

Extensive Coverage Nationwide

North MK & MK Gold 23 Yayoi 5 West MK & MK Gold 17 Yayoi 4 North East MK & MK Gold 52 Yayoi 12 South MK & MK Gold 47 Yayoi 7 East MK & MK Gold 45 Yayoi 12 BKK & Greater BKK MK & MK Gold 195 Yayoi 85 Central MK & MK Gold 38 Yayoi 11

Branches

Japan

MK 30

Japan

an

MK 3

Vietnam

an

MK 2 / Yayoi 6

Singapore

53% 47%

354 417 314 381

37% 63%

91 64 113

407

129

Remark: Data as of Sep 2015

136

5

6%

• 3%
• 4%

0%

• 4%
• 12%

2012 2013 2014 1Q15 2Q15 3Q15

Same-Store Sales Growth

Negative Same-Store Sales Growth primarily due to the economic slowdown

15% 1%

• 4%

3% 3%

• 3%

2012 2013 2014 1Q15 2Q15 3Q15

6

Agenda

Company Overview 3Q2015 Key Financial Highlights Business Update

7

Total Revenues and Net Profit

%YoY Growth 2010 2011 2012 2013 2014 9M15 Total Revenues 13% 19% 21% 8% 6% 1% Net Profit 26% 32% 25% 0% 0%

• 2%

9,078 10,824 13,141 14,139 14,957 11,035 11,146

1,234 1,625 2,031 2,039 2,042 1,393 1,361

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 2010 2011 2012 2013 2014 9M14 9M15 Total Revenues Net Profit

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 3Q2015, revenues from sales & services dropped 6% YoY due largely to the economic slowdown

MK 82%

THB Million THB Million

3,342 3,643 3,708 3,585 3,749 3,481 10,692 10,814

1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15

+1% YoY

• 6% YoY

2,212 2,350 2,419 2,367 2,471 2,261 6,982 7,099 66% 65% 65% 66% 66% 65% 65% 66%

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

• 2,000

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

1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15

• 7% YoY

+2% YoY MK 82% Yayoi 16% Others 2%

9 SG&A

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 Expenses

3Q2015 SG&A Expenses Breakdown

THB Million

1,750 1,962 1,876 1,880 1,942 1,908 5,589 5,730 51% 52% 49% 51% 50% 53% 50.6% 51.4%

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

1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15

+3% YoY +2% YoY Personel, 51% Rental, 18% Utilities, 8% Others, 23%

10 Net Profit

THB Million

EBITDA

In 3Q2015, EBITDA & Net Profit dropped 22% and 30% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

747 689 847 800 847 664 2,282 2,311 22% 18% 22% 22% 22% 19% 21% 21%

0% 5% 10% 15% 20%

• 1,000

2,000 3,000 4,000

1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15

+1% YoY

• 22% YoY

468 403 522 480 516 365 1,393 1,361 13.5% 10.7% 13.7% 13.0% 13.4% 10.2% 12.6% 12.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% (100) 400 900 1,400 1,900 2,400

1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15

• 30% YoY
• 2% 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 (%)

2,198 1,803 12,681 12,470 0.17 0.14

• 0.05

0.10 0.15

• 5,000

10,000 15,000 20,000

31-Dec-14 30-Sep-15

Total Liabilities Shareholders's Equity D/E

4.7 5.7 31-Dec-14 30-Sep-15 13.7% 14.3% 31-Dec-14 30-Sep-15 16.2% 16.4% 31-Dec-14 30-Sep-15

12

Agenda

Company Overview 3Q2015 Key Financial Highlights Business Update

13

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

Outlet Expansion Plan

Plan

• No. of New

Outlets in 2015

• No. of New
• utlets opened

in 9M2015 4 3 5 3 1 1 4 4 4 MK Yayoi Others 1Q15 2Q15 3Q15 17 13 13 MK Yayoi Others

14

Marketing Campaign – MK Promotion

“MK Duo Soup”

Kurobuta Set Seafood Kimchi Set Original Set

“MK Fruity Smoothies”

15

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

16

MK Line Promotion

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

17

Marketing Campaign – Yayoi Promotion

18