MC BIKER DENIM Motorcycle series MC GROUP Public Company Limited Q1 2018 Results Summary 21 May 2018 Moto-apparel Denim style Biker collar Dark blue A leading multi-brand apparel & lifestyle products retailer
DISCLAIMER The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that the our assumptions are correct. Actual results may differ materially from those projected. 1
AGENDA 01 02 03 Company Recent Financial Overview Development Result 2
COMPANY OVERVIEW 1 3
Key milestones Extended Brand Portfolio Fashionable Kid’s Ladies wear Extended Jeanswear Brand Portfolio Launched Extended Extended “Mc ” brand Set up new Brand Portfolio Premium Brand Portfolio Value-for-Money subsidiary Jeanswear Casual wear Women's’ CRM & JV with Invested 55% in Jeans & Casual membership Street wear Phetkasem menswear Expanded to Lifestyle Business program Holding to Active to distribute home revolutionize wear spa products Skin care Acquired 51% in top wear “UP” “M&C” 1975 2005 2013 2015 2017 2014 2016 2018 2008 2012 Alliance with PTT Listed on the SET Launched Expanded to online website Expanded 1 st Mc Shop Expanded Opened mc mc Revamped Iran to Vietnam shop in PTT gas to Myanmar e-commerce station & Laos platform Opened the first Expanded to Free Standing Shop Cambodia Started as manufacturing Moving forward to become Onto managing brands Emerged as a leader in and selling through a leading apparel and distribution channels denim market in Thailand traditional trade and lifestyle products retailer 4
MC GROUP structure MC GROUP PLC (“M C ”) Registered Capital 400 MB Paid-up Capital 400 MB Operations Production New Businesses 99.97% 99.98% 99.99% 99.99 % 99.9 7% Mc Jeans P.K. Garment WoWme Look Balance Mc Jeanious Manufacturing ( Import - Export ) Limited Co.,Ltd Co., Ltd. Co. , Ltd . Co. , Ltd. (“WOWME”) (“ MJM ” ) (“P K G”) • Offers quality • Manufactures • Manufactures Thai and foreign 50% of total 20% of total 99.9 7% 99.9 7% brands products production production and services • With BOI • Without BOI Winnerman MC INTER 51% 55 % 51% through online privilege privilege Co. , Ltd. LIMITED platform (“WNM”) (“MCI”) Time Deco Aromatique Top T 2015 Corporation Active Co., Ltd. Co., Ltd. Co., Ltd. • Manages sales • Incorporated for force and the future business warehouse and investment • Importer, • Supplier of top • Sales of skincare workforce for MC abroad retailer and wear with latest and aromatic exclusive fabric products • Not yet commercially distributor of technology operated famous int ’l under the brand watch brands “ McT ” 5
Comprehensive network 1. Free Standing Shops 2. Modern Trade 3. Mobile Unit 4. International Markets 304 Shops 570 PoS 6 Units 14 PoS Located mainly in Points of sales or sales New sales channel that Currently, expanded 1Q18 commercial centers or counters in department helps expand the reach through distributors with in the plaza sections of stores (both chain and to customers as well as presence in CLMV and 894 department stores as local non-chain) as well build brand recognition Iran. well as hypermarket and as hypermarket PTT gas station PoS (Songkla, Pattani) (Lampang) Points of Sales Q1/18 Q1/18 894 Geographical Analysis of Outlets Geographical Analysis of Sales International International 897 1% 2% 866 Greater 819 Bangkok 28% 694 Greater Bangkok 37% 511 Upcountry 62% Upcountry 70% 446 6
R E C E N T D E V E L O P M E N T 2 7
Y2018 priorities moving towards long term results ✓ Leverage large customer base using 1 st ever CRM & membership program under “MC Club” ✓ Segment products to suit customer preference and for efficient supply chain management ✓ Extend lifestyle product range ✓ Deliver exceptional omnichannel retail experience ✓ Nurture International market for medium to New collection MC Sneaker long term growth selvedge walker – Launched in March 2018 8
MC CLUB Examples of CRM in-store media MC Club’s members & POS Progress and indicative projection - year 2018 ints of Sale No. of 00 500,000 650 members 600 450,000 00 400,000 00 350,000 Projection 300,000 00 250,000 270 00 200,000 200 150,000 00 100,000 00 50,000 15 12,000 40,000 100,000 170,000 210,000 0 - January February March April May Membership means more… Members POS Members can enjoy special deals & offers all year. Sign up today at https://mcclub.mcshop.com/user FREE! 9
By Lifestyle Segment… BIKERS Booth display for bike lover at ‘Naked City’ free concert held by Yamaha REV community 10
By Lifestyle Segment… FAMILY “Thai Loincloth Jeans” inspires traditional dress 11
By Lifestyle Segment… TEENS Booth display for collaboration marvel products with Disney (Thailand) at leading movie theatre 12
By Lifestyle Segment OFFICE WORKERS Exclusive concert “MusicJam MusicJeans” by MC Group 13
Skincare “Aromatique Active” Own points of sales and extending product lines Hello Beauty at Robinson To be launched… ▪ Hand cream ▪ Sun body lotion ▪ Whitening body booster ▪ Body Moist 14
Skincare “Aromatique Active” Brand building activities Style Asia’s Most Stylish Fair 2018 ‘Hand wash’ campaign – Pop-up Store 15
Strengthen omnichannel (offline <> online) Outlet numbers adjusted to align with strategy Q1/2018 End of 2017 # Points of sales # Points of sales 894 894 Free- Modern Free- Modern Brand Mobile unit Total Brand Mobile unit Total International International Standing Trade Standing Trade 267 488 6 13 774 272 491 6 14 783 18 18 18 18 14 79 93 15 87 102 Total 304 570 6 14 894 Total 300 575 6 13 894 + 8 Mc, -9* Timedeco + 1 Mc International Remark : *Closed 9 small points of sale due to brand management and efficiency of stock control of Timedeco Online channels # Points of sales 6 16
Newness on mcshop.com – Products & blogs 17
Newness on mcshop.com – Campaign 18
Newness on mcshop.com – New feature Ship to shop feature available now in mcshop.com 19
Nurture international market for medium to long term growth… Lao PDR Iran Equalize promotional Total 4 stores as of Q1 2018 ▪ ▪ campaigns between Thailand and Lao PDR 3 rd Store Bam land shopping mall, Tehran 4 th Store Aren shopping center, Tehran 20
Nurture international market for medium to long term growth Myanmar To continue building brand awareness among young ▪ customers Costume Sponsorship TV Program The Voice Myanmar Contestant Thaw Di Teen Talk Master Ceremony Zaw Htet and Wutt Yi 21
Q1/2018 F I N A N C I A L R E S U L T 3 22
Results headlines Stronger as expected margin performance amid softening spending Q1/17 Q1/18 % YoY (THB millions) 1,220 1,113 -9% Sales Revenue 1,232 1,145 -7% Total Revenue 624 634 +2% Gross Profit 292 295 +1% EBITDA 232 232 +0% Net Profit 51.1% 57.0% Gross Profit Margin 18.8% 20.3% Net Profit Margin 0.29 0.29 EPS (THB) 23
Sales decreased from lessen degree of promotion campaign and high base in 1Q2017 Quarterly Sales Revenue Annual Sales Revenue (THB millions) 1,220 1,187 1,113 919 903 5,000 4,442 4,228 4,500 3,895 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 4,000 3,470 Sales revenue by channel 3,500 2,973 3,000 1Q2017 1Q2018 2,500 Others 5% 2,000 6% 1,500 1,000 Modern 500 trade 57% 38% Free standing 35% 0 FY13 FY14 FY15 FY16 FY17 59% Others = E-Commerce, International, Mobile, Outside promotion, Factory sales 24
Distribution channels performance Free standing shop 15,000 THB 12,145 13,000 10,094 9,845 11,000 9,547 9,297 9,158 8,742 8,966 8,715 8,338 8,145 8,152 7,678 9,000 7,420 7,000 5,000 FY13 FY14 FY15 FY16 FY17 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY16 FY17 FY18 Average sales per SQM / month Modern trade (1) 750 700 ’000 THB 650 600 493 550 403 500 373 365 348 346 342 450 333 294 400 273 265 268 350 224 209 300 250 200 150 FY13 FY14 FY15 FY16 FY17 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY16 FY17 FY18 Average sales per PoS / month Remark: (1) Figures are calculated based on modern trade sales revenue, before GP. Excluded sales from international markets and other source (i.e., exhibition etc.) 25
Same-store sales growth (SSSG) Quarterly SSSG (YoY) SSSG 28% (1%) 11% 10% 6% 4% 4% 0.4% (2%) (7%) (8%) (9%) (12%) (17%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY13 FY14 FY15 FY16 FY17 Y16 Y17 Y18 Remark: Hypermarkets are not included in the calculation in SSSG. 26
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