Corporate Presentation January 2019 Company Overview 2 One of - PowerPoint PPT Presentation

Corporate Presentation January 2019

Company Overview 2

One of Singapore’s Most Established and Largest Operators and Managers of Food Courts and Coffee Shops  16 years of F&B experience: With a history dating back to 2002, Koufu has established a reputation for serving quality food at affordable prices: - Connecting with our customers through efficient and friendly services - Brand equity amongst the younger population  Our philosophy: Modern management discipline Value for money Traditional dining in coffee shop comfortable culture environment  Our Group's mission is to provide quality food and services to our customers, while staying true to our deep roots in the Singaporean food culture  We have since expanded into Macau with the establishment of a Koufu food court in Sands Cotai Central in 2012 3 Better Food, Better People, Better Life.

Our Key Milestones Successfully tendered Achieved S$200 million in sales for our first Koufu food Successfully tendered revenue court in a hospital for the operation and (Sengkang General management of the Hospital) food court at Marina Bay Sands, Successfully tendered Singapore with our for the operation and Rasapura Masters management of a 2017 brand concept 2018 Successfully listed commercial mall, on the Main Board Punggol Plaza 2015 of the SGX-ST on 2012 18 July 2018 2016 Established our first 2010 2009 Established our central kitchen at 18 Successfully tendered for first full-service Woodlands Terrace the operation and restaurants at management of Jurong Millenia Walk Established our West Hawker Centre and and Thomson first overseas Market, as a social Plaza under 2004 Koufu food court enterprise project. our Elemen at Sands Cotai 2003 2002 brand concept Central, Macau Achieved S$100 million in sales Commenced operations with revenue two food courts and one coffee shop, including our first Koufu air-conditioned food court at HDB Hub 4 Better Food, Better People, Better Life.

Complementary Business Segments with Diversified Revenue Streams As at 31 December 2018 Outlet & Mall Management F&B Retail 47 1 15 71 2 8 Quick-Service Food Courts Coffee Shops F&B Stalls Restaurants (“QSR”) 1 1 9 1 3 Commercial Mall F&B Kiosks Full-Service Restaurants Hawker Centre Food Courts Coffee Shops F&B Kiosks, QSRs and Full Service Restaurants 5 Better Food, Better People, Better Life.

Multi-Brand Strategy Price Range Brands F&B Outlets S$20 – S$50 Full-service restaurants S$5 – S$15 Food courts and QSRs Food courts, F&B kiosks and S$4 – S$12 QSRs S$3 – S$8 Food courts and F&B kiosks S$2 – S$5 Coffee shops and Hawker centre By focusing on different market segments with different price ranges, we are able to grow our customer base, expand our market share and capture business opportunities in each market segment 6 Better Food, Better People, Better Life.

Holistic Approach to Improving Productivity Using Technology as a Key Enabler In line with the Singapore government’s emphasis on improving productivity through innovation as well as consumer experience, we have implemented: More than 40 Self-ordering RFID tray return system , smart tray return and payment robots deployed kiosks at Koufu integrated with to more than 16 of food court at the centralised our food courts Fusionopolis and dishwashing and coffee shops Happy Hawkers area and self- coffee shop at payment kiosks Block 872C at our Jurong Tampines Street West Hawker 86 Centre Mobile ordering NETS unified applications at payment selected Koufu, terminals Cookhouse , implemented Happy Hawkers across 18 food and F&B Outlets. courts and plan Intend to to roll out to all implement at food courts by Singapore Productivity Awards – most of our F&B Q1 2019 Excellence in F&B Sector outlets in the 2016 future 7 Better Food, Better People, Better Life.

Shareholding Structure Mdm Mr Pang Lim Ng Hoon Tien 50% 50% Public Investors (including Cornerstone Jun Yuan Holdings Pte. Investors) Ltd. 78.3% 21.7% Koufu Group Limited 8 Better Food, Better People, Better Life.

3Q/9M 2018 Financial Highlights 9

Revenue Revenue  Revenue growth was boosted by a 4.7% ( S$’m ) increase in revenue for the outlet & mall management segment and a 0.7% 216.7 growth in F&B retail segment revenue 215.1 198.7 166.8 162.5 FY2015 FY2016 FY2017 9M 2017 9M 2018 10 Better Food, Better People, Better Life.

Revenue Breakdown Outlet & Mall Management: By Business Segments  Revenue growth lifted by three new ( S$’m ) food courts opened in 9M 2018 – Fusionopolis, Oasis Terrace and Sengkang General Hospital Outlet & Mall Management F&B Retail  Offset partially by closure of three food courts and coffee shop and temporary closure of MBS food court for progressive refurbishment works 51.4% 52.2% 52.5% that took four months to complete 111.3 112.9 50.4% 103.6 F&B Retail: 51.4%  Revenue growth lifted by three new 84.1 83.5 F&B stalls opened in 9M 2018 – Fusionopolis, Oasis Terrace and Sengkang General Hospital 47.8% 47.5% 48.6%  Offset partially by closure of two 105.4 102.2 QSRs and seven F&B stalls in 3Q 95.0 82.7 79.0 2018, and temporary closure of MBS 48.6% food court for progressive 49.6% refurbishment works that took four FY2015 FY2016 FY2017 9M 2017 9M 2018 months to complete 11 Better Food, Better People, Better Life.

Revenue Breakdown By Geography  Revenue contribution from ( S$’m ) Macau increased by $1.1m 216.7 while revenue contribution 215.1 from Singapore increased 198.7 7.7% 7.0% 16.6 15.1 by $3.2m in 9M 2018 6.7% 13.4  Revenue contribution from 166.8 162.5 92.3% 93.3% 93.0% Macau correspondingly 14.1 13.0 8.5% increased 0.5% in 9M 2018 8% 200.1 200.0 185.3 152.7 149.5 92% 91.5% FY2015 FY2016 FY2017 9M 2017 9M 2018 Singapore Macau 12 Better Food, Better People, Better Life.

EBIDA and EBITDA margin EBITDA and EBITDA margin  Excluding one-off IPO ( S$’m ) expenses and finance income from convertible loan EBITDA EBITDA margin % Adjusted 1 notes amounting to a total of S$1.6 million, the adjusted 18.7% 18.5% 18.3% EBITDA increased 18.5% 18.9% 50 17.0% marginally by 3.7% to S$30.9 18.0% 45 million 40.2 40.1 17.7% 16.0% 40 14.0% 33.9 35 30.7 30.9 29.8 29.6 12.0% 30 10.0% 25 8.0% 20 6.0% 15 4.0% 10 2.0% 5 0 0.0% FY2015 FY2016 FY2017 9M 2017 9M 2017 9M 2018 9M 2018 (Adj) (Adj) 1 Adjusted EBITDA is derived from the Group's Profit before income tax, after adding back depreciation and amortisation expenses, finance costs and finance income from convertible loan notes and one-off IPO expenses 13 Better Food, Better People, Better Life.

Net Profit After Tax Net Profit After Tax (attributable to owners of the Company)  Excluding one-off IPO ( S$’m ) expenses and finance income from convertible notes NPAT NPAT margin % Adjusted 1 amounting to a total of S$1.6 40.0 13.0% 12.0% 12.1% million, the Group’s adjusted 12.4% 11.0% NPAT declined 2.1% to 35.0 11.0% 11.5% S$18.3 million 10.4%  Mainly due to higher rental 30.0 10.2% 9.0% 26.8 costs incurred during the fit- 25.9 out period for the three new 25.0 7.0% food courts opened in 2018, 20.6 19.6 compared to costs incurred 18.7 20.0 18.3 17.0 for only one food court and 5.0% one coffee shop recorded in 15.0 2017 3.0% 10.0 1.0% 5.0 0.0 -1.0% FY2015 FY2016 FY2017 9M 2017 9M2017 9M 20189M 2018 (Adj) (Adj) 1 Adjusted NPAT is derived from the Group's Profit after income tax, after excluding the one-off IPO expenses of S$1.3 million (Q3 2018 and 9M 2018) and finance income from convertible loan notes of S$0.3 million (Q3 2017) and S$0.9 million (9M 2017), reflecting the true operating performance of the Group 14 Better Food, Better People, Better Life.

Healthy Cashflows and Balance Sheet Business is resilient through economic cycles S$55.8m Cash-generative Strong operating cash flow Healthy balance sheet Cash and cash equivalent as at 30 September 2018 Net Cash Generated from Operating Activities (S$’000) S$51.1m 51.0 Net Cash as at 30 September 2018 34.1 33.5 29.8 25.0 S$0.01 Interim Dividend in line with Prospectus’ recommendation of paying out at least 50% of NPAT generated in FY2018 and FY2019 FY2015 FY2016 FY2017 9M 2017 9M 2018 15 Better Food, Better People, Better Life.

Our Expenses Breakdown Breakdown of expenses (S$’000 or %) 190,197 179,499 190,028 143,546 150,659 1.2% 1.1% 1.1% 3.0% 3.0% 2.7% 2.5% 3.1% 2.7% 2.5% 1.0% 1.2% 0.9% 1.0% 1.2% 50.7% 50.7% 49.9% 52.2% 50.4% 5.8% 5.4% 4.7% 4.7% 6.0% 19.9% 20.4% 19.6% 20.1% 18.8% 18.9% 18.9% 18.6% 18.6% 17.6% FY2015 FY2016 FY2017 9M 2017 9M 2018 Cost of inventories consumed Staff costs Depreciation Property rentals and related expenses Distribution and selling expenses Adminstrative expenses Other operating expenses Better Food, Better People, Better Life.