MK Restaurant Group PCL (M) 2 Q2020 Presentation Results August 2020 - - PowerPoint PPT Presentation

2Q2020 Presentation Results August 2020

MK Restaurant Group PCL (“M”)

Company Presentation

1

Agenda

Company Overview 2Q2020 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

Laem Charoen Seafood Co., Ltd.

 Seafood Restaurants  Registered Capital:

185 MB

65%

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 199 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 Jun 2020

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

99 97 106 116 116 59 68 78 82 83 2016 2017 2018 2019 1H20

Bangkok & Metropolitan area Provincial area

199 200 202 213 213 225 235 246 250 250 2016 2017 2018 2019 1H20

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 14 East MK / Gold / Live 50 Yayoi 22 BKK & Greater BKK MK / Gold / Live 213 Yayoi 116 Central MK / Gold / Live 44 Yayoi 16

Branches

Japan

MK 33

Japan

an

MK 9

Vietnam

an

Yayoi 9

Singapore

54% 46%

424 448

42% 58%

158 184

an

MK 2 / Miyazaki 1

Lao PDR

435

165

463

198

463

199

5

Timeline for COVID-19 Lockdown 22 Mar’20 Announcement of the Bangkok Metropolitan Administration Only delivery and takeaways are allowed 3 May’20 Relax lockdown phase I Only delivery and takeaways are allowed 17 May’20 Relax lockdown phase II Allow dine-in with strict measures 1 Jun’20 Relax lockdown phase III Allow dine-in with social distancing 15 Jun’20 Relax lockdown phase IV Allow dine-in with social distancing

6

2% 2%

• 19%
• 56%

2%

• 38%

1Q19 2Q19 1Q20 2Q20 1H19 1H20

Same-Store Sales Growth

In 2Q2020, 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.

0%

• 3%
• 21%
• 51%
• 1%
• 37%

1Q19 2Q19 1Q20 2Q20 1H19 1H20

7

Agenda

Company Overview 2Q2020 Key Financial Highlights Business Update

8

14,923 15,498 16,458 17,234 17,871 8,969 6,073 1,856 2,100 2,425 2,574 2,604 1,398 93

2015 2016 2017 2018 2019 1H19 1H20 Total Revenues Net Profit

Total Revenues and Net Profit

%YoY Growth 2015 2016 2017 2018 2019 1H2020 Total Revenues 0% 4% 6% 5% 4%

• 32%

Net Profit

• 9%

13% 15% 6% 1%

• 93%

Million Baht

9 Gross Profit Revenue Contribution Revenues from Sales and Services

Revenues Growth

In 2Q2020, revenues from sales & services dropped 52% from the previous year due primarily to the outbreak of COVID-19.

THB Million THB Million

• 32% YoY
• 52% YoY

MK, 73% Yayoi, 19% LCS, 6% Others, 2%

4,352 4,470 3,795 2,163 8,822 5,958

1Q19 2Q19 1Q20 2Q20 1H19 1H20

2,979 3,085 2,525 1,333 6,063 3,859 68.4% 69.0% 66.5% 61.7% 68.7% 64.8%

56% 58% 60% 62% 64% 66% 68% 70%

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

1Q19 2Q19 1Q20 2Q20 1H19 1H20

• 36% YoY
• 57% YoY

10 SG&A

In 2Q2020, %SG&A to total revenues increased from 51% to 75% 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 drop as much as Revenues from Sales and Services.

SG&A Expenses

1H2020 SG&A Expenses Breakdown

2,218 2,344 2,188 1,657 4,561 3,845 50% 51% 56% 75% 51% 63%

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

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

1Q19 2Q19 1Q20 2Q20 1H19 1H20

THB Million

• 29% YoY
• 16% YoY

Personel, 49% Depreciation, 22% Rental, 7% Utilities, 6% Others, 16%

11 Net Profit

THB Million

EBITDA

In 2Q2020, Both EBITDA & Net Profit dropped 76% and 136% YoY respectively compared to the previous year.

THB Million

EBITDA & Net Profit

• 42% YoY
• 93% YoY

1,062 1,047 974 256 2,109 1,229 24.0% 23.0% 25.1% 11.6% 23.5% 20.2%

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

• 500

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

1Q19 2Q19 1Q20 2Q20 1H19 1H20

• 76% YoY

710 689 340 (247) 1,398 93 16.1% 15.1% 8.8%

• 11.3%

15.6% 1.5%

• 12%
• 7%
• 2%

3% 8% 13% (300) 200 700 1,200 1,700

1Q19 2Q19 1Q20 2Q20 1H19 1H20

• 136% YoY

12 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 6,266 14,306 13,199

0.23 0.47

• 0.10

0.20 0.30 0.40 0.50

• 5,000

10,000 15,000 20,000

31-Dec-19 30-Jun-20 Total Liabilities Shareholders's Equity D/E

3.5 2.8

31-Dec-19 30-Jun-20

14.8% 7.1%

31-Dec-19 30-Jun-20

18.3% 9.4%

31-Dec-19 30-Jun-20

13

Agenda

Company Overview 2Q2020 Key Financial Highlights Business Update

14

Revise Y2020 plan to slow down the new outlet expansion due to the uncertainty from the COVID-19 outbreak.

Outlet Expansion Plan

• No. of New
• utlets opened

in 1H2020 Revised Plan

• No. of New
• utlets in 2020

2 1 3

MK Yayoi Others

3 1 4

MK Yayoi Others

15