MK Restaurant Group PCL (M) 4Q2018 Presentation Results February - - PowerPoint PPT Presentation

4Q2018 Presentation Results February 2019

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 4Q2018 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 438 MK Gold 6 MK Live 4 Japanese Restaurant Yayoi 184 Miyazaki 26 Hakata 4 Thai Restaurant Na Siam 1 Le Siam 3 Others Le Petit 3 Bizzy Box 4 Harvest 1

Remark: Data as of Dec 2018

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

79 89 99 97 106 50 51 59 68 78 2014 2015 2016 2017 2018

Bangkok & Metropolitan area Provincial area

189 197 199 200 202 218 222 225 235 246 2014 2015 2016 2017 2018

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 50 Yayoi 13 East MK / Gold / Live 49 Yayoi 20 BKK & Greater BKK MK / Gold / Live 202 Yayoi 106 Central MK / Gold / Live 43 Yayoi 14

Branches

Japan

MK 35

Japan

an

MK 7

Vietnam

an

Yayoi 8

Singapore

55% 45%

419 424 448

42% 58%

158 184

407

129 140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

Yayoi 1

Malaysia

5 2%

• 3%

3% 5% 3% 0% 0%

• 1%

2% 1%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

Same-Store Sales Growth

In Y2018, same-store sales growth for MK and Yayoi were 1% and flat respectively compared to the previous year.

1%

• 1%

8% 7% 3% 1%

• 4%

0% 4% 0%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

6

Agenda

Company Overview 4Q2018 Key Financial Highlights Business Update

7

14,139 14,957 14,923 15,498 16,458 17,234 2,039 2,042 1,856 2,100 2,425 2,574

2013 2014 2015 2016 2017 2018 Total Revenues Net Profit

Total Revenues and Net Profit

%YoY Growth 2013 2014 2015 2016 2017 2018 Total Revenues 8% 6% 0% 4% 6% 5% Net Profit 0% 0%

• 9%

13% 15% 6%

Million Baht

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 4Q2018, revenues from sales & services grew up 4% compared to the prior year due primarily to the new branch expansion.

THB Million

+4% YoY

3,805 4,106 4,033 4,129 4,049 4,249 4,177 4,295 16,073 16,770

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

+4% YoY 2,572 2,798 2,738 2,791 2,773 2,911 2,859 2,933 10,899 11,475

67.6% 68.2% 67.9% 67.6% 68.5% 68.5% 68.4% 68.3% 67.8% 68.4%

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

• 2,000

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

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

THB Million

+5% YoY +5% YoY

MK, 78% Yayoi, 20% Others, 2%

9 SG&A

In 4Q2018, SG&A increased 3% YoY compared to the prior year primarily due to the increase of personnel expenses related to the provision for the long-term employee benefit

SG&A Expenses

2018 SG&A Expenses Breakdown

THB Million

1,960 2,074 2,039 2,226 2,114 2,233 2,168 2,290 8,299 8,806

50% 49% 49% 53% 51% 51% 50% 52% 50% 51%

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

• 2,000

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

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

+3% YoY +6% YoY

Personel, 52% Rental, 19% Utilities, 7% Depreciation, 7% Others, 15%

10 Net Profit

THB Million

EBITDA

In 4Q2018, EBITDA & Net Profit grew 6% and 11% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

910 1,044 1,008 878 982 1,014 1,021 935 3,840 3,952

23.4% 24.8% 24.4% 20.8% 23.6% 23.1% 23.7% 21.3% 23.3% 22.9%

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

• 1,000

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

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

6% YoY +3% YoY

553 675 651 546 632 659 676 606 2,425 2,574

14.2% 16.0% 15.8% 12.9% 15.2% 15.1% 15.7% 13.8% 14.7% 14.9%

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

• 1,000

2,000 3,000 4,000

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018

11% YoY +6% 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 (%) 2,454 2,998 13,829 14,176

0.18 0.21

• 0.05

0.10 0.15 0.20

• 5,000

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

31-Dec-17 31-Dec-18 Total Liabilities Shareholders's Equity D/E

5.0 4.2

31-Dec-17 31-Dec-18

15.2% 15.4%

31-Dec-17 31-Dec-18

17.8% 18.4%

31-Dec-17 31-Dec-18

12

Agenda

Company Overview 4Q2018 Key Financial Highlights Business Update

13

Notable Events in 2018

• March 30, 2018

Set up the new joint venture company “M-Senko Logistics” to operate logistics, warehouse rental, trading and forwarding businesses.

• April 12, 2018

Launched the new concept under brand “MK Harvest” at “The Emquartier”.

• May 21, 2018

Set up the new subsidiary “Mark One Innovation Center” in order to do research and development of technology and innovation in food and beverage.

• May 21, 2018

Awarded “No. 1 Brand Thailand 2017- 2018” in Chain Restaurant category from “Marketeer Magazine”.

• June 1, 2018

Launched the new grab & go concept under brand “Bizzy Box”.

• Oct 3, 2018

Awarded “The Most Powerful Brand

• f Thailand 2018” in Chain

Restaurant category from Chulalongkorn University.

• Nov 29, 2018

Awarded “Thailand Corporate Excellence Awards 2018” in category

• f “Innovation Excellence”.

14

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

Outlet Expansion Plan

• No. of New
• utlets opened

in 2018 Plan

• No. of New
• utlets in 2019

20 20 7

MK Yayoi Others

20 20 10

MK Yayoi Others

15

Marketing Campaign in 4Q2018 – MK

16

Marketing Campaign in 4Q2018 – MK

17

Marketing Campaign in 4Q2018 – Yayoi

18

Marketing Campaign in 4Q2018 – Yayoi

19