MK Restaurant Group PCL (M) 1Q2019 Presentation Results May 2019 - - PowerPoint PPT Presentation

1Q2019 Presentation Results May 2019

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 1Q2019 Key Financial Highlights Business Update

2

Business Structure

MK Restaurant Group Public Company Limited (M)

Plenus & MK Pte. Ltd. Plenus MK Co.,Ltd. MK Interfood 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

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand

• No. of Outlets

Suki Restaurant MK 441 MK Gold 7 MK Live 4 Japanese Restaurant Yayoi 188 Miyazaki 26 Hakata 4 Thai Restaurant Na Siam 1 Le Siam 3 Others Le Petit 3 Bizzy Box 6 Harvest 1

Remark: Data as of Mar 2019

4

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 1Q19

Bangkok & Metropolitan area Provincial area

197 199 200 202 204 222 225 235 246 248 2015 2016 2017 2018 1Q19

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 7

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 2%

• 3%

3% 5% 3% 0% 0%

• 1%

2%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

Same-Store Sales Growth

In 1Q2019, same-store sales growth for MK and Yayoi were 2% and flat respectively compared to the previous year.

1%

• 1%

8% 7% 3% 1%

• 4%

0% 0%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

6

Agenda

Company Overview 1Q2019 Key Financial Highlights Business Update

7

Total Revenues and Net Profit

%YoY Growth 2014 2015 2016 2017 2018 1Q19 Total Revenues 6% 0% 4% 6% 5% 7% Net Profit 0%

• 9%

13% 15% 6% 12%

Million Baht

14,957 14,923 15,498 16,458 17,234 4,164 4,456 2,042 1,856 2,100 2,425 2,574 632 710

2014 2015 2016 2017 2018 1Q18 1Q19 Total Revenues Net Profit

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 1Q2019, revenues from sales & services grew up 7% compared to the prior year due primarily to the new branch expansion as well as same-store sale growth.

THB Million THB Million

14,492 14,478 15,146 16,073 16,770 4,049 4,352

2014 2015 2016 2017 2018 1Q18 1Q19

+7% YoY MK, 79% Yayoi, 19% Others, 2%

9,507 9,534 10,193 10,899 11,475 2,773 2,979

65.6% 65.9% 67.3% 67.8% 68.4% 68.5% 68.4%

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

• 2,000

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

2014 2015 2016 2017 2018 1Q18 1Q19

+7% YoY

9 SG&A

In 1Q2019, SG&A increased 5% YoY compared to the prior year primarily due to the decrease of labor cost, depreciation and marketing expenses.

SG&A Expenses

1Q2019 SG&A Expenses Breakdown

THB Million

7,428 7,660 7,942 8,299 8,806 2,114 2,218

50% 51% 51% 50% 51% 51% 50%

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

• 2,000

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

2014 2015 2016 2017 2018 1Q18 1Q19

+5% YoY Personel, 52% Rental, 20% Utilities, 7% Depreciation, 7% Others, 14%

10 Net Profit

THB Million

EBITDA

In 1Q2019, EBITDA & Net Profit grew 8% and 12% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

3,290 3,139 3,468 3,840 3,952 982 1,062

22.0% 21.0% 22.4% 23.3% 22.9% 23.6% 23.8%

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

• 1,000

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

2014 2015 2016 2017 2018 1Q18 1Q19

8% YoY

2,042 1,856 2,100 2,425 2,574 632 710

13.7% 12.4% 13.5% 14.7% 14.9% 15.2% 15.9%

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

• 500

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

2014 2015 2016 2017 2018 1Q18 1Q19

+12% 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 2,411 14,176 14,885

0.21 0.16

• 0.05

0.10 0.15 0.20

• 5,000

10,000 15,000 20,000 25,000

31-Dec-18 31-Mar-19

Total Liabilities Shareholders's Equity D/E

4.2 5.6

31-Dec-18 31-Mar-19

15.4% 15.7%

31-Dec-18 31-Mar-19

18.4% 18.1%

31-Dec-18 31-Mar-19

12

Agenda

Company Overview 1Q2019 Key Financial Highlights Business Update

13

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

Outlet Expansion Plan

• No. of New
• utlets opened

in 1Q2019 Plan

• No. of New
• utlets in 2019

4 4 3

MK Yayoi Others

20 20 10

MK Yayoi Others

14

Marketing Campaign in 1Q2019 – MK

15

Marketing Campaign in 1Q2019 – MK

16

Marketing Campaign in 1Q2019 – Yayoi

17

Marketing Campaign in 1Q2019 – Yayoi

18