MK Restaurant Group PCL ( M ) 2Q2019 Presentation Results August - - PowerPoint PPT Presentation

2Q2019 Presentation Results August 2019

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 2Q2019 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:

1,300 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:

1 MB

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Restaurant Outlets in Thailand

Type of Business Restaurants Brand

• No. of Outlets

Suki Restaurant MK 440 MK Gold 7 MK Live 5 Japanese Restaurant Yayoi 188 Miyazaki 23 Hakata 5 Thai Restaurant Na Siam 1 Le Siam 3 Others Le Petit 3 Bizzy Box 6 Harvest 1

Remark: Data as of Jun 2019

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Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

89 99 97 106 108 51 59 68 78 80 2015 2016 2017 2018 2Q19

Bangkok & Metropolitan area Provincial area

197 199 200 202 204 222 225 235 246 248 2015 2016 2017 2018 2Q19

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 61 Yayoi 18 South MK / Gold / Live 51 Yayoi 13 East MK / Gold / Live 49 Yayoi 20 BKK & Greater BKK MK / Gold / Live 204 Yayoi 108 Central MK / Gold / Live 44 Yayoi 16

Branches

Japan

MK 35

Japan

an

MK 9

Vietnam

an

Yayoi 8

Singapore

55% 45%

419 424 448

43% 57%

158 184 140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

Yayoi 1

Malaysia

452

188

5

3% 0% 2% 2% 1% 2%

1Q18 2Q18 1Q19 2Q19 1H18 1H19

Same-Store Sales Growth

In 2Q2019, same-store sales growth for MK and Yayoi were 2% and -3% respectively compared to the previous year.

3% 1% 0%

• 3%

2%

• 1%

1Q18 2Q18 1Q19 2Q19 1H18 1H19

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Agenda

Company Overview 2Q2019 Key Financial Highlights Business Update

7

14,957 14,923 15,498 16,458 17,234 8,543 9,042 2,042 1,856 2,100 2,425 2,574 1,291 1,398

2014 2015 2016 2017 2018 1H18 1H19

Total Revenues Net Profit

Total Revenues and Net Profit

%YoY Growth 2014 2015 2016 2017 2018 1H19 Total Revenues 6% 0% 4% 6% 5% 6% Net Profit 0%

• 9%

13% 15% 6% 8%

Million Baht

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 2Q2019, revenues from sales & services grew up 5% compared to the prior year due primarily to the new branch expansion

THB Million THB Million

MK, 79% Yayoi, 19% Others, 2%

4,049 4,249 4,352 4,470 8,298 8,822

1Q18 2Q18 1Q19 2Q19 1H18 1H19 +5% YoY +6% YoY

2,773 2,911 2,979 3,085 5,684 6,063 68.5% 68.5% 68.4% 69.0% 68.5% 68.7%

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

• 2,000

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

1Q18 2Q18 1Q19 2Q19 1H18 1H19

+7% YoY +7% YoY

9 SG&A

In 2Q2019, SG&A increased 5% YoY compared to the prior year primarily due to the increase of labor cost and rent.

SG&A Expenses

1H2019 SG&A Expenses Breakdown

THB Million

2,114 2,233 2,218 2,344 4,348 4,561 51% 51% 50% 51% 51% 50%

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

• 1,000

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

1Q18 2Q18 1Q19 2Q19 1H18 1H19 +5% YoY +5% YoY

Personel, 53% Rental, 20% Utilities, 7% Depreciation, 7% Others, 13%

10 Net Profit

THB Million

EBITDA

In 2Q2019, EBITDA & Net Profit grew 3% and 4% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

982 1,014 1,062 1,047 1,996 2,109 23.6% 23.1% 23.8% 22.8% 23.4% 23.3%

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

• 1,000

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

1Q18 2Q18 1Q19 2Q19 1H18 1H19 3% YoY 6% YoY

632 659 710 689 1,291 1,398 15.2% 15.1% 15.9% 15.0% 15.1% 15.5%

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

• 500

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

1Q18 2Q18 1Q19 2Q19 1H18 1H19 +4% 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 2,605 14,176 14,377

0.21 0.18

• 0.05

0.10 0.15 0.20

• 5,000

10,000 15,000 20,000

31-Dec-18 30-Jun-19

Total Liabilities Shareholders's Equity D/E

4.2 5.0

31-Dec-18 30-Jun-19

15.4% 16.1%

31-Dec-18 30-Jun-19

18.4% 18.9%

31-Dec-18 30-Jun-19

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Agenda

Company Overview 2Q2019 Key Financial Highlights Business Update

13

Notable Events in 1H2019

• March 19, 2019

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

• April 26, 2019
• June 28, 2019

Opened 8th MK Branch in Hanoi, Vietnam. Opened 9th MK Branch in Ho Chi Minh City, Vietnam.

• June 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.

14

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

Outlet Expansion Plan

• No. of New
• utlets opened

in 1H2019 Plan

• No. of New
• utlets in 2019

6 5 4

MK Yayoi Others

17 15 6

MK Yayoi Others

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Marketing Campaign in 2Q2019 – MK

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Marketing Campaign in 2Q2019 – MK

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Marketing Campaign in 2Q2019 – Yayoi

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Marketing Campaign in 2Q2019 – Yayoi

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