QUARTERLY UPDATE 1Q2017 Disclaimer This presentation contains - - PowerPoint PPT Presentation

QUARTERLY UPDATE

1Q2017

2

Disclaimer

This presentation contains certain forward looking statements. Such forward looking statements (the words "believe“, "anticipate“, "estimate“, "target“, or "hope",

• r that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations) are not guarantees of future performances or events and involve risks

and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors and circumstances. The views, analyses and opinions expressed herein contain some information derived from publicly available sources and third party information providers. Mudman Public Company Limited and its affiliates (“Mudman”) undertakes no representation or warranty is made as to the accuracy, completeness, or reliability

• f such information and no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or
• therwise.

Mudman makes no representation whatsoever about the opinion or statements of any analyst or other third party. Mudman does not monitor or control the content

• f third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement.

Nothing in this presentation should be construed as either an offer to sell, a solicitation of an offer to buy or sell shares or any type of securities in any jurisdiction. This presentation is not intended to be any type of investment advice and must not be relied upon as such. You must always seek the relevant professional advice before otherwise making any such financial, legal or commercial decisions.

1) What’s New in 1Q/17 to Date 2) Group Performance Appendix:

• Company Profile

TABLE OF CONTENTS

What’s New in 1Q/17 to Date

Complicated Noodle …. “You need to do a bit of work here but worth every bites” Salmon Sashimi with Thai Spicy Sauce “People always ask: Do you sell this sauce alone? I want to take it home” Tons of Crab with Fried Rice “Not Fried Rice with Crab but Reversing role between rice and crab and you get a wonderful twist of amazing tastes and textures” Grilled Meat on Skewer with Sticky Rice “One of Thailand’s popular street food breakfast”

5

Owned Brands

DOMESTIC (16 stores*):

• New store: Another Hound Café - Central Embassy (Feb-17)

Greyhound Café @ Bluport Hua Hin (Mar-17)

• Upcoming store: 1st store in Pattaya (2Q/17)

INTERNATIONAL (14 stores*):

• New store

: Singapore: 1st store (Dec-16)

• Upcoming store

: Franchising Model:

• Malaysia: 2nd store by 2Q/16
• Indonesia: 1st store by 3Q/16
• Potential partners in various countries (i.e. Taiwan, Middle East and South Korea)

Owned-Store Model:

• London: 1st Flagship store in 4Q/17

Key Highlights

Promotions / Events:

“Osaka with a Twist” (May 1 – June 30, 2017)

What’s New in 1Q/17 to Date

Note: : * As of 1Q17 ** New store includes not only new outlet, but also new location of closed store (relocation store) Birthday Gift for Greyhound Members

6

Owned Brands

• Total store: 13 stores
• New Business Concept: To leverage creativity & twist of Greyhound brands to create unique concepts

& products

Key Highlights

Promotions / Events:

• Professional cafeteria business & IPD food service
• Current operation at Ramkamheng Hospital since June 2015

What’s New in 1Q/17 to Date (cont’d)

Greyhound Life Juice @ GHC / AHC in BKK (Apr 1 – Jun 30, 2017) Note: * New store includes not only new outlet, but also new location of closed store (relocation store) Smileyhound Collection Sand Bag Collection

7

Master Franchises Key Highlights

• Total store: 295 stores (1Q/17)*
• New store**: Future Park, B Floor (Mar-17)
• Upcoming store: The Little Walk Bangna (2Q/17)

Cosmo Bazaar (2Q/17) Seacon Square (2Q/17)

Promotions / Events:

Buy 6 Get 6 FREE (6th of every month) DD Card (Available @ every stores) Note: * Exclude catering service ** New store includes not only new outlet, but also new location of closed store (relocation store) DD Beverages (Summer Refreshment)

What’s New in 1Q/17 to Date (cont’d)

8

Master Franchises Key Highlights

• Total store: 75 stores (1Q/17)*
• New store**: The JAS Urban Srinakarin (Jan-17), Vejthani Hospital (Feb-17),

Phayathai 3 Hospital (Mar-17), The Little Walk – Bangna (Mar-17)

• Upcoming store: Negotiating on potential sites in Bangkok and Major provinces

Promotions / Events:

Note: * Exclude catering service ** New store includes not only new outlet, but also new location of closed store (relocation store) ABP Summer Menus ABP Premium Catering Services

What’s New in 1Q/17 to Date (cont’d)

9

Master Franchises Key Highlights

• Total store: 33 stores (1Q/17)*
• New Menus: Flavor of the month, Crepe, Waffle, Cold Brew Coffee, and more products
• Upcoming store: Negotiating on potential sites in Bangkok and Major provinces

Promotions / Events:

Note: * Exclude catering service Cold Brew Coffee FLOAT (Available @ every stores) Mango Delight Summer Menus (Available @ selected stores) 31% Off Handpacks (Available only on every 31st @ every stores)

What’s New in 1Q/17 to Date (cont’d)

Group Performance Mudman Group

Only @ Greyhound Café Hua Hin (Bluport)

11

95% 5% (6) (14) (132) (17) (16)

• Q1/16

Q2/16 Q3/16 Q4/16 Q1/17 70 59 (87) 59 63

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 737 738 762 755 738

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17

Key Takeaways

EBITDA Net Profit

Mudman Group - Key Financial Performance

Note: * Excluded international stores ** Allocating loss based on EBITDA contribution *** Excluded impairment loss

Revenues THB mm

+ 0.1% YoY

• 2.3% QoQ

Stores * 406 411 425 441 433 EBITDA margin 9.5% 8.1% 8.9%*** 7.8% 8.6% %SG&A/Revenues 58.8% 60.8% 58.4%*** 61.2% 61.0%

• 1Q/17 revenues reported THB 738 mm or flat

growth YoY, mainly due to economic slowdown and lower consumer spending

• EBITDA in 1Q/17 reported THB 63 mm (8.6%

margin) which is lower from 1Q/16 (9.5% margin) primarily due to higher SG&A in 1Q/17 (61.0%) which mainly from staff expenses, rental & services costs in accordance with expanding number of stores

• Net margin in 1Q/17 and 1Q/16 recorded (2.1%)

and (0.8%) respectively, resulting from non-cash items (Purchase Price Allocation) and high industry competition

• Going forward, MM will have no major concern on

the impairment of GHF and will continue to implement tactical strategies, marketing efforts and efficient cost control to ensure strong growth and healthy financial statement

68*** (8)***

Food & Beverage Fashion Lifestyle

Revenues Breakdown (1Q/17)

Net margin (0.8%) (1.8%) (1.0%)*** (2.3%) (2.1%)

12 (3.4%) (0.2%) 6.3% (1.9%) (2.6%) 6.3% 6.4% 11.2% (0.2%) 1.6%

• 8%
• 4%

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 SSSG - F&B TSSG - F&B 4.1 3.9 3.6 3.9 4.7

• 0.2

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 1,847 1,831 1,787 1,999 1,962 2,138 2,124 1,993 1,815 1,799 0.86 0.86 0.90 1.10 1.09

• 4.00
• 3.00
• 2.00
• 1.00
• 1.00

2.00

• 500

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Liabilities Equities D/E

SSSG & TSSG Financial Position Net Debt / LTM EBITDA**

Mudman Group - Key Financial Performance (cont’d)

Note: * SSSG is calculated based on operating stores in the same comparing period (i.e. exclude stores operating only two months in comparing quarter) ** Last-twelve-month EBITDA (without impairment loss in 3Q/16)

• 1Q/17 same-store-sale-growth (SSSG)* of F&B decreased by (2.6%)

YoY, attributable to deteriorating retail sector and economic downturn

• Total-system-sales-growth (TSSG)* of F&B reported +1.6% YoY,

primarily from the on-going store expansion at selective locations

• Debt-to-Equity is 1.09x as of Mar-17, slightly lower from 1.10x at the

year-ended Dec-16

• Net debt / LTM EBITDA in 1Q/17 reported 4.7x higher from 3.9x at

Dec-16, primarily due to higher outstanding interest bearing debt (i.e. loan for dividend payout which has been repaid by IPO proceed)

3,895 3,955 3,780 3,814 3,761

13 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 Net sales 716.4 716.2 737.2 719.4 705.9 COGS (289.8) (287.0) (308.4) (295.2) (285.4) Gross profit 426.6 429.2 428.8 424.2 420.6 GPM 59.5% 59.9% 58.2% 59.0% 59.6% Selling exp (351.3) (376.8) (369.9) (375.8) (366.9) Administrative exp (81.9) (71.3) (75.3) (85.8) (82.8) Other inc / (exp) 20.7 21.3 25.2 35.2 31.7 Impairment loss

• (154.9)
• EBIT

14.0 2.4 (146.2) (2.2) 2.5 Interest exp (15.1) (14.1) (13.7) (13.4) (16.2) EBT (1.1) (11.7) (159.9) (15.6) (13.7) Tax (4.9) (1.9) 28.3 (1.7) (1.9) Net profit (6.0) (13.5) (131.6) (17.2) (15.6) NPM (0.8%) (1.8%) (17.3%) (2.3%) (2.1%) PPA 17.7 17.7 17.8 16.8 16.7 Net profit - excl PPA 11.8 4.2 (113.8) (0.4) 1.1 NPM - excl PPA 1.6% 0.6% (14.9%) (0.1%) 0.1% EBITDA 69.9 59.5 (87.2) 58.8 63.2 EBITDA margin 9.5% 8.1% (11.4%) 7.8% 8.6% EBITDA - operating 69.9 59.5 67.8 58.8 63.2 EBITDA margin 9.5% 8.1% 8.9% 7.8% 8.6%

Mudman Group - Key Financial Performance (cont’d)

• Purchase Price allocation (PPA) is

an amortization of identifiable intangible assets (foreseeable useful life) at fair value after the acquisition

• For example, trademark, franchise agreement,

contractual agreement and order backlog

• There are three brands associating with PPA:
• Dunkin’ Donuts
• Au Bon Pain
• Greyhound Cafe
• PPA is an accounting impact only on

“Consolidated” financial statement

• Without PPA impact, net profit would turn

to positive with NPM of 1% - 2%

Key Takeaways PPA Implication to Our Brands

Note: Disregard tax implication in calculating net profit - excl PPA

14

Impact of Purchase Price Allocation (PPA) on Income Statement

• PPA will have an accounting impact on future cost and profit recognition on Mudman’s performance on the consolidated financial

statements

• Mudman will have the amortization on PPA of ~THB 65 - 70 mm for the next five years
• However, it will not affect ability to pay dividend as those expenses doesn’t affect separated financial statement

THB mm 2016 2017 2018 2019 2020 Total 71 67 67 66 65

25 25 25 25 25 7 7 7 7 7 35 35 35 34 33

2025

(9Yr)

2027

(11Yr)

2021/1

(5Yr)

4

• /2
• Note : /1 After 2021, Greyhound Café will recognized PPA expense of THB 5 mm until 2030

/2 GHF has impaired most of goodwill and intangible assets in 3Q2016; thus, there will be minimal PPA amortize for GHF in the future

Company Profile - Appendix

16

Overview

To be great, enduring company, with appealing food & lifestyle brands, proving a healthy and quality work environment

Successful International Food & Lifestyle Brands Trend Setters Developing & Caring for Our People

17

Key Milestones

2007 - 2011 2006 2015 2014 2013 2012

Sub Sri Thai PCL acquired 100% stakes in Mudman

Acquisition of Thailand operation

• f Baskin Robbins

Khon Kaen Sugar Industry PCL subscript capital increase (9.3% stake) Capital increase to THB 843 mm Capital increase to THB 525 mm Company registration

Sub Sri Thai PCL (SST) A documentary/goods storage service provider with attractive cash flow streams enabling SST to continuously raise fund via property funds/REIT to fuel growth with market capitalization of ~THB 4,500 mm Khon Kaen Sugar Industry PCL (KSL) One of the largest Thailand’s sugar producers with vision to diversify into many business ventures with market capitalization of ~THB 24,000 mm

Capital increase to THB 300 mm

Create catering services at Ramkamheng hospital (cafeteria and IPD) Open in Mar 2015 Acquisition of Greyhound Original & Cafe Master franchisee of Dunkin Donuts (1981) Au Bon Pain (1996)

2016

Public Conversion

2017

Capital increase to THB 1,055 mm

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799 857 987 1,036 1,150 1,421 1,627 1,855 2,235 2,889 2,992

170 188 207 224 240 258 301 349 370 389 401

98 92 104 109 135 192 224 232 216 253 255

• 50
• 50

100 150 200 250 300

• 500

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

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Revenues (THB mm)

• No. of Stores

EBITDA (THB mm)

Solid Operational Platform & Strong Growth Capabilities

Acquisition of Thailand operation

• f Baskin Robbins

ORGANIC INORGANIC

Global Brand Acquisition Selective International Franchising Operational Excellence Consolidation of Systems and Infrastructures Intensive International Expansion

Create catering services at Ramkamheng hospital (cafeteria and IPD)

Note: (1) Excluded international stores & some types of local stores (catering / booth / convention stores) (2) Included Greyhound in 2014 onward

Acquisition of Greyhound Original & Cafe Master franchisee of Dunkin Donuts (1981) Au Bon Pain (1996)

19

64.3% 7.5% 4.9% 23.4%

Others Strategic SHs*

Mudman at a Glance

Shareholding Structure Management Team Business Overview

Note: Please see details in the following page Note: * Strategic SHs are individual investors who are defined per SEC regulation As of April 2017

Nadim Xavier Salhani CEO

• A proven track record of successful turnaround
• Over 15 years experience in Food & Beverage retail business

with leading international brands including Starbucks, Auntie Anne’s Pretzel, Au Bon Pain and Dunkin Donuts

• Joined Mudman Group in 2003

Hansa Sermsri CFO

• Over 20 years in accounting and finance
• Joined Mudman Group in 2006
• Previously with Excel Distribution, Motorola, Taylor Nelson

Sofres Wimonrat Asawachavisit Vice President (Supply Chain)

• Over 19 years solid experience in supply chain management
• Joined Mudman Group in 1996
• Previously with Asia Food & Machinery

Lapaporn Tiasakul Vice President (Business Development)

• Over 18 years in F&B retail business
• Joined Mudman Group in 2003
• Previously with Starbucks, Auntie Anne’s Pretzel, The

Brooker Group and IMRS Nobklao Trakoolpan Vice President (Operation)

• Experiences in the management of hospitality industry for
• ver 18 years
• Strong experiences in Food & Beverage, both kitchen and

dining area

• Experience for operating F&B, Culinary, Room Division,

Engineering and Security

• Previously with Holiday Inn Express Bangkok Siam

Food & Beverage

Owned brand Master Franchisee

Premier Asian Player Lifestyle

1 2 4 5 3 1 2 4 5 3

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Mudman at a Glance (cont’d)

Golden Donut (Thailand) Co.,Ltd. ABP Café (Thailand) Co.,Ltd. Greyhound Co.,Ltd. Golden Scoop Co.,Ltd.

100% 100% 100% 100% 100%

Greyhound Café Co.,Ltd. GHC Café (UK) Co.,Ltd.

100%

21

Mudman at a Glance (cont’d)

Brands Key Concepts Outlets (1Q/17)

Owned Brands Fashion café in a stylish casual dining experience with food concept …. “Basic with a Creative Twist” Thailand (16) Hong Kong (6) China (6) Malaysia (1) Singapore (1) Liftstyle brand with “Stylish + Sophisticate + Creative + Contemporary” concepts …. Simple, but Never Boring 13 Catering services business with current operation at Ramkamheng hospital (cafeteria and IPD) 1 Master Franchisee Premium imported ice-cream from the USA 33 “Healthy café bakery” in premier locations of leading department stores, hospital and office/residential buildings 75 “Enjoy Your Moment” with a leading American donut brand from numerous stores nationwide 295

Mudman Public Company Limited

209/1 KKP Tower B, 25th Floor, Sukhumvit 21 Road (Asoke), Klongtoey Nua, Wattana, Bangkok 10110, Thailand Tel: +662 261 5363 - 75 Fax: +662 261 5359 - 60 Website: www.mudman.co.th