MK Restaurant Group PCL (M) 1Q2020 Presentation Results May 2020 - - PowerPoint PPT Presentation

1Q2020 Presentation Results May 2020

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 1Q2020 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:

1,750 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:

2,070 MB

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand

• No. of Outlets

Suki Restaurant MK 451 MK Gold 6 MK Live 6 Japanese Restaurant Yayoi 198 Miyazaki 23 Hakata 6 Thai Restaurant Na Siam 1 Le Siam 3 Others Le Petit 3 Bizzy Box 8 Harvest 1

Remark: Data as of Mar 2020

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

89 99 97 106 116 51 59 68 78 82 2015 2016 2017 2018 2019

Bangkok & Metropolitan area Provincial area

197 199 200 202 213 222 225 235 246 250 2015 2016 2017 2018 2019

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 63 Yayoi 18 South MK / Gold / Live 51 Yayoi 14 East MK / Gold / Live 49 Yayoi 21 BKK & Greater BKK MK / Gold / Live 213 Yayoi 116 Central MK / Gold / Live 44 Yayoi 16

Branches

Japan

MK 34

Japan

an

MK 9

Vietnam

an

Yayoi 10

Singapore

54% 46%

419 424 448

41% 59%

158 184 140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

463

198

5

3% 0% 0%

• 1%

2% 2%

• 4%

0%

• 20%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Same-Store Sales Growth

In 1Q2020, same-store sales growth for MK and Yayoi dropped significantly compared to the previous year mainly due to the prohibition of dine-in in order to protect the spreading of Corona virus disease.

3% 1%

• 4%

0% 0%

• 3%
• 9%
• 7%
• 21%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

6

Agenda

Company Overview 1Q2020 Key Financial Highlights Business Update

7

Total Revenues and Net Profit

%YoY Growth 2015 2016 2017 2018 2019 1Q2020 Total Revenues 0% 4% 6% 5% 4%

• 12%

Net Profit

• 9%

13% 15% 6% 1%

• 52%

Million Baht

14,923 15,498 16,458 17,234 17,871 4,421 3,877 1,856 2,100 2,425 2,574 2,604 710 340

2015 2016 2017 2018 2019 1Q19 1Q20 Total Revenues Net Profit

8 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 1Q2020, revenues from sales & services dropped 13% from the previous year due primarily to the outbreak of COVID-19.

THB Million THB Million

14,478 15,146 16,073 16,770 17,409 4,352 3,795

2015 2016 2017 2018 2019 1Q19 1Q20

• 13% YoY

9,534 10,193 10,899 11,475 11,926 2,979 2,525 65.9% 67.3% 67.8% 68.4% 68.5% 68.4% 66.5%

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

• 2,000

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

2015 2016 2017 2018 2019 1Q19 1Q20

• 15% YoY

MK, 74% Yayoi, 18% Others, 8%

9 SG&A

In 1Q2020, %SG&A to total revenues increased from 50% to 56% compared to the prior year primarily due to the decrease of Revenues from Sales and Services while some expenses such as rent, labor cost and depreciation did not vary by Revenues from Sales and Services.

SG&A Expenses

1Q2020 SG&A Expenses Breakdown

THB Million

7,660 7,942 8,299 8,806 9,183 2,218 2,188 51% 51% 50% 51% 51% 50% 56%

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

• 2,000

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

2015 2016 2017 2018 2019 1Q19 1Q20

• 1% YoY

Personel, 48% Depreciati

• n, 19%

Rental, 12% Utilities, 7% Others, 14%

10 Net Profit

THB Million

EBITDA

In 1Q2020, Both EBITDA & Net Profit dropped 8% and 52% YoY respectively compared to the previous year.

THB Million

EBITDA & Net Profit

3,139 3,468 3,840 3,952 3,982 1,062 974 21.0% 22.4% 23.3% 22.9% 22.3% 24.0% 25.1%

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

• 1,000

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

2015 2016 2017 2018 2019 1Q19 1Q20

1,856 2,100 2,425 2,574 2,604 710 340 12.4% 13.5% 14.7% 14.9% 14.6% 16.1% 8.8%

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

• 500

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

2015 2016 2017 2018 2019 1Q19 1Q20

• 52% 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 (%) 3,315 6,597 14,306 14,647

0.2 0.4

• 0.05

0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45

• 5,000

10,000 15,000 20,000

31-Dec-19 31-Mar-20 Total Liabilities Shareholders's Equity D/E

3.5 3.0

31-Dec-19 31-Mar-20

14.8% 11.5%

31-Dec-19 31-Mar-20

18.3% 15.1%

31-Dec-19 31-Mar-20

12

Agenda

Company Overview 1Q2020 Key Financial Highlights Business Update

13

Marketing Campaign in 1Q2020 – MK

14

Marketing Campaign in 1Q2020 – MK

15

Marketing Campaign in 1Q2020 – Yayoi

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Marketing Campaign in 1Q2020 – Yayoi

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