MK Restaurant Group PCL (M) 3Q2019 Presentation Results November - - PowerPoint PPT Presentation

3Q2019 Presentation Results November 2019

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 3Q2019 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

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand

• No. of Outlets

Suki Restaurant MK 444 MK Gold 7 MK Live 5 Japanese Restaurant Yayoi 192 Miyazaki 22 Hakata 5 Thai Restaurant Na Siam 1 Le Siam 3 Others Le Petit 3 Bizzy Box 6 Harvest 1

Remark: Data as of Sep 2019

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

89 99 97 106 112 51 59 68 78 80 2015 2016 2017 2018 3Q19

Bangkok & Metropolitan area Provincial area

197 199 200 202 207 222 225 235 246 249 2015 2016 2017 2018 3Q19

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 62 Yayoi 18 South MK / Gold / Live 51 Yayoi 13 East MK / Gold / Live 49 Yayoi 20 BKK & Greater BKK MK / Gold / Live 207 Yayoi 112 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

42% 58%

158 184 140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

456

192

5

3% 0% 0% 2% 2%

• 4%

1% 0%

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

Same-Store Sales Growth

In 3Q2019, same-store sales growth for MK and Yayoi were -4% and -9% respectively compared to the previous year.

3% 1%

• 4%

0%

• 3%
• 9%

2%

• 4%

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

6

Agenda

Company Overview 3Q2019 Key Financial Highlights Business Update

7

Total Revenues and Net Profit

%YoY Growth 2014 2015 2016 2017 2018 9M19 Total Revenues 6% 0% 4% 6% 5% 3% Net Profit 0%

• 9%

13% 15% 6%

• 1%

Million Baht

14,957 14,923 15,498 16,458 17,234 12,848 13,278 2,042 1,856 2,100 2,425 2,574 1,967 1,948

2014 2015 2016 2017 2018 9M18 9M19 Total Revenues Net Profit

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 3Q2019, revenues from sales & services dropped 2% from the previous year due primarily to the economic slowdown

THB Million THB Million

4,049 4,249 4,177 4,352 4,470 4,102 12,475 12,924

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

• 2% YoY

+4% YoY MK, 79% Yayoi, 19% Others, 2%

2,773 2,911 2,859 2,979 3,085 2,804 8,542 8,867 68.5% 68.5% 68.4% 68.4% 69.0% 68.3% 68.5% 68.6%

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

• 2,000

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

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

• 2% YoY

+4% YoY

9 SG&A

In 3Q2019, SG&A increased 5% YoY compared to the prior year primarily due to the increase of labor cost and rent.

SG&A Expenses

9M2019 SG&A Expenses Breakdown

THB Million

2,114 2,233 2,168 2,218 2,344 2,269 6,516 6,831 51% 51% 50% 50% 51% 54% 51% 51%

0% 10% 20% 30% 40% 50% (1,000) 1,000 3,000 5,000 7,000 9,000 11,000

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 +5% YoY +5% YoY

Personel, 53% Rental, 20% Utilities, 7% Depreciation, 7% Others, 14%

10 Net Profit

THB Million

EBITDA

In 3Q2019, EBITDA & Net Profit dropped 16% and 19% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

982 1,014 1,021 1,062 1,047 861 3,017 2,970 23.6% 23.1% 23.7% 23.8% 22.8% 20.3% 23.5% 22.4%

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

• 1,000

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

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

• 16% YoY
• 2% YoY

632 659 676 710 689 549 1,967 1,948 15.2% 15.1% 15.7% 15.9% 15.0% 13.0% 15.3% 14.7%

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

• 500

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

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

• 19% YoY
• 1% 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 (%)

15.4% 15.9%

31-Dec-18 30-Sep-19

18.4% 18.7%

31-Dec-18 30-Sep-19

4.2 5.1

31-Dec-18 30-Sep-19

2,998 2,454 14,176 13,728

0.21 0.18

• 0.05

0.10 0.15 0.20

• 5,000

10,000 15,000 20,000

31-Dec-18 30-Sep-19

Total Liabilities Shareholders's Equity D/E

12

Agenda

Company Overview 3Q2019 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 9M2019 Plan

• No. of New
• utlets in 2019

11 10 4

MK Yayoi Others

17 15 6

MK Yayoi Others

14

Marketing Campaign in 3Q2019 – MK

15

Marketing Campaign in 3Q2019 – MK

16

Marketing Campaign in 3Q2019 – Yayoi

17

Marketing Campaign in 3Q2019 – Yayoi

18