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

Company Presentation MK Restaurant Group PCL (“M”) 3Q2019 Presentation Results November 2019

Agenda Company Overview 3Q2019 Key Financial Highlights Business Update 1

Business Structure MK Restaurant Group Public Company Limited (M) 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 100% 100% 100% 49.75% 100% MK Service Mark One MK Interfood International Food M-Senko Logistics Training Center Innovation Center Co., Ltd. Supply Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.  Provide logistics &  Yayoi Japanese  Food manufacturer &  Research & development  Provide training services distributor warehouse services  Registered Capital: Restaurants  Registered Capital:  Registered Capital:  Registered Capital:  Registered Capital: 60 MB 35 MB 400 MB 280 MB 1,300 MB 100% 50% 12% Plenus & MK Pte. Catapult Co., Ltd. Plenus MK Co.,Ltd. Ltd.  Restaurant business  Restaurants in  MK Suki Restaurants  Registered Capital: Singapore in Japan 1 MB  Registered Capital:  Registered Capital: SGD12.5 Million 2 JPY 250 million

Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Suki Restaurant MK 444 7 MK Gold MK Live 5 Japanese Restaurant 192 Yayoi Miyazaki 22 Hakata 5 Thai Restaurant 1 Na Siam 3 Le Siam Others 3 Le Petit 6 Bizzy Box 1 Harvest 3 Remark: Data as of Sep 2019

Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage 456 Extensive Coverage Nationwide 448 435 424 419 Branches North 249 246 55% 235 225 MK / Gold / Live 24 222 Yayoi 6 North East MK / Gold / Live 62 West Yayoi 18 MK / Gold / Live 19 Yayoi 7 202 207 197 199 200 45% East MK / Gold / Live 49 Central Yayoi 20 MK / Gold / Live 44 Yayoi 16 2015 2016 2017 2018 3Q19 BKK & Greater BKK MK / Gold / Live 207 Bangkok & Metropolitan area Provincial area Yayoi 112 192 184 165 158 140 80 78 South 42% 68 MK / Gold / Live 51 59 Yayoi 13 51 Vietnam Japan an Japan 58% 112 106 99 97 89 MK 9 MK 35 Lao PDR Singapore 2015 2016 2017 2018 3Q19 an an Bangkok & Metropolitan area Provincial area 4 MK 2 / Miyazaki 1 Yayoi 8

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% 2% 2% 1% 0% 0% 0% 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 -4% 3% 2% 1% 0% 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 -3% -4% -4% -9% 5

Agenda Company Overview 3Q2019 Key Financial Highlights Business Update 6

Total Revenues and Net Profit Million Baht Total Revenues Net Profit 17,234 16,458 15,498 14,957 14,923 13,278 12,848 2,574 2,425 1,967 1,948 2,042 2,100 1,856 2014 2015 2016 2017 2018 9M18 9M19 %YoY Growth 2014 2015 2016 2017 2018 9M19 Total Revenues 6% 0% 4% 6% 5% 3% Net Profit 0% -9% 13% 15% 6% -1% 7

Revenues Growth In 3Q2019, revenues from sales & services dropped 2% from the previous year due primarily to the economic slowdown Revenues from Sales and Services Revenue Contribution THB Million +4% YoY Others, 2% 12,475 12,924 Yayoi, 19% -2% YoY 4,049 4,249 4,177 4,352 4,470 4,102 MK, 79% 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 Gross Profit THB Million +4% YoY 68.6% 68.3% 68.5% 68.5% 68.5% 69.0% 68.4% 68.4% 14,000 70% 12,000 60% 8,867 8,542 10,000 50% -2% YoY 8,000 40% 6,000 30% 2,859 3,085 2,911 2,979 2,804 2,773 4,000 20% 2,000 10% - 0% 8 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

SG&A Expenses In 3Q2019, SG&A increased 5% YoY compared to the prior year primarily due to the increase of labor cost and rent. SG&A 9M2019 SG&A Expenses Breakdown THB Million 54% 51% 51% 51% 51% 50% 51% 50% Others, 11,000 50% 14% +5% YoY Depreciation, 9,000 6,516 6,831 40% 7% 7,000 Utilities, Personel, 30% 7% +5% YoY 5,000 53% 2,114 2,233 2,168 2,218 2,344 2,269 20% Rental, 3,000 20% 10% 1,000 (1,000) 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 0% 9

EBITDA & Net Profit In 3Q2019, EBITDA & Net Profit dropped 16% and 19% YoY respectively compared to the previous year EBITDA THB Million 23.6% 23.1% 23.7% 23.8% 23.5% 22.8% 22.4% 6,000 25% 20.3% 5,000 20% -2% YoY 4,000 3,017 2,970 15% 3,000 -16% YoY 10% 2,000 1,062 1,014 1,047 982 1,021 861 5% 1,000 - 0% 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 Net Profit THB Million 15.9% 15.7% 15.2% 15.3% 4,000 15.1% 15.0% 14.7% 16% 13.0% 3,500 14% -1% YoY 3,000 12% 2,500 1,967 1,948 10% 2,000 -19% YoY 8% 1,500 6% 710 689 659 676 632 549 1,000 4% 500 2% - 0% 1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19 10

Financial Ratio Liquidity is at a comfortable level as well as strong capital base to support growth Current Ratio D/E Ratio 0.21 0.18 0.20 5.1 20,000 14,176 13,728 4.2 0.15 15,000 0.10 10,000 2,998 2,454 0.05 5,000 - - 31-Dec-18 30-Sep-19 Total Liabilities Shareholders's Equity D/E 31-Dec-18 30-Sep-19 ROA (%) ROE (%) 18.7% 18.4% 15.9% 15.4% 31-Dec-18 30-Sep-19 31-Dec-18 30-Sep-19 11

Agenda Company Overview 3Q2019 Key Financial Highlights Business Update 12

Outlet Expansion Plan Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 17 15 Plan No. of New outlets in 2019 6 MK Yayoi Others 11 10 No. of New outlets opened in 9M2019 4 MK Yayoi Others 13

Marketing Campaign in 3Q2019 – MK 14

Marketing Campaign in 3Q2019 – MK 15

Marketing Campaign in 3Q2019 – Yayoi 16

Marketing Campaign in 3Q2019 – Yayoi 17

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