MK Restaurant Group PCL (M) 3Q2017 Presentation Results November - PowerPoint PPT Presentation

Company Presentation MK Restaurant Group PCL (“M”) 3Q2017 Presentation Results November 2017

Agenda Company Overview 3Q2017 Key Financial Highlights Business Update 1

Business Structure MK Restaurant Group Plc. “M” Suki restaurant : MK Suki, MK Gold  Thai restaurant : Na Siam, Le Siam  Japanese restaurant : Hakata, Miyazaki  Coffee shop & Bakery : Le Petit  Franchise  100% 100% 100% 50% 12% MK Interfoods Co.,Ltd. MK Services Training International Food Plenus & MK Pte.Ltd. Plenus-MK Co.,Ltd. “MKI” “ Plenus & MK” “ Plenus MK” Center Co.,Ltd. Supply Co.,Ltd. “MKST” “IFS” (Joint Venture) (Joint Venture) Restaurants in Singapore Training services for MK Food manufacturer & Japanese restaurant:  MK Restaurants in Japan     Registered Capital: group Distributor  Yayoi Registered Capital:  SGD12.5 Million (~ 320 Registered Capital: 35 Registered Capital: 280 Registered Capital: 400   JPY250 Million (~80 MB)  MB MB MB) MB 2

Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Average Spending (THB) Suki Restaurant MK 424 310 6 580 MK Gold MK Live 1 590 Japanese Restaurant 161 240 Yayoi Miyazaki 26 340 Hakata 3 200 Thai Restaurant 1 250 Na Siam 4 810 Le Siam Coffee Shop & 3 170 Le Petit Bakery 3 Remark: Data as of Sep 2017

Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage Extensive Coverage Nationwide 431 424 407 419 381 Branches North 54% 231 225 MK & MK Gold 22 222 218 Yayoi 5 205 North East MK & MK Gold 58 West Yayoi 14 MK & MK Gold 19 Yayoi 8 197 199 200 46% 189 176 East MK & MK Gold 44 Central Yayoi 15 MK & MK Gold 40 Yayoi 12 2013 2014 2015 2016 3Q2017 BKK & Greater BKK MK & MK Gold 200 Bangkok & Metropolitan area Provincial area Yayoi 97 161 158 140 129 59 64 South 113 40% MK & MK Gold 48 51 Yayoi 10 50 43 Vietnam Japan Singapore Lao PDR an Japan an an 60% 99 97 89 79 70 MK 33 Yayoi 7 MK 1 / Miyazaki 1 MK 5 2013 2014 2015 2016 3Q2017 Bangkok & Metropolitan area Provincial area 4

Same-Store Sales Growth In 3Q2017, same-store sales growth for MK & Yayoi improved compared to the previous year. 3% 3% 2% 2% -1% 0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 -3% -4% -5% -8% -12% 8% 8% 5% 3% 3% 3% 1% -1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 -1% -3% -8% 5

Agenda Company Overview 3Q2017 Key Financial Highlights Business Update 6

Total Revenues and Net Profit Million Baht Total Revenues Net Profit 15,498 16,000 14,957 14,923 14,139 13,141 14,000 12,228 11,637 12,000 10,000 8,000 6,000 4,000 2,100 2,031 2,039 2,042 1,856 1,879 1,561 2,000 - 2012 2013 2014 2015 2016 9M16 9M17 %YoY Growth 2012 2013 2014 2015 2016 9M17 Total Revenues 21% 8% 6% 0% 4% 5% Net Profit 25% 0% 0% -9% 13% 20% 7

Revenues Growth In 3Q2017, revenues from sales & services grew up 9% compared to the prior year due primarily to the new branch expansion as well as the same-store sale growth. Revenues from Sales and Services Revenue Contribution Others, 2% THB Million +5% YoY 11,361 11,944 Yayoi, 19% +9% YoY 4,106 4,046 4,033 3,717 3,805 3,598 MK, 79% 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17 Gross Profit THB Million 67.3% 67.2% 67.6% 68.2% 67.9% 67.0% 67.9% 66.5% 12,000 60% +7% YoY 10,000 8,109 50% 7,613 8,000 40% +11% YoY 6,000 30% 2,798 2,720 2,738 4,000 2,572 2,470 2,423 20% 2,000 10% - 0% 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17 8

SG&A Expenses In 3Q2017, SG&A slightly increased 5% YoY compared to the prior year primarily due to the increase of expenses from new branch expansion. SG&A 9M2017 SG&A Expenses Breakdown THB Million Others, 53% 51% 50% 51% 14% 50% 50% 49% 49% 10,000 50% 9,000 Depreciation +2% YoY 8,000 , 8% 40% 7,000 5,954 6,073 Utilities, 6,000 Personel, 30% 7% 5,000 52% +5% YoY 4,000 20% 3,000 1,963 2,049 1,942 1,960 2,074 2,039 2,000 10% Rental, 19% 1,000 - 0% 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17 9

EBITDA & Net Profit In 3Q2017, EBITDA & Net Profit grew 19% and 28% YoY respectively compared to the previous year EBITDA THB Million 24.8% 24.4% 24.2% 23.6% 23.4% 6,000 22.1% 22.2% 25% 20.6% 5,000 +15 YoY 20% 4,000 2,961 15% 2,580 +19% YoY 3,000 10% 2,000 1,044 1,008 976 910 844 760 5% 1,000 - 0% 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17 Net Profit THB Million 15.8% 16.0% 4,000 15.4% 14.8% 14.2% 16% 13.4% 13.4% 3,500 11.9% 14% 3,000 +20% YoY 12% 2,500 1,879 10% 1,561 2,000 +28% YoY 8% 1,500 6% 675 651 613 553 1,000 510 4% 438 500 2% - 0% 1Q16 2Q16 3Q16 1Q17 2Q17 3Q17 9M16 9M17 10

Financial Ratio Liquidity is at a comfortable level as well as strong capital base to support growth Current Ratio D/E Ratio 0.17 0.18 0.15 20,000 5.6 0.16 5.4 0.14 13,377 13,276 15,000 0.12 0.10 10,000 0.08 0.06 5,000 0.04 2,265 2,054 0.02 - - 31-Dec-16 30-Sep-17 31-Dec-16 30-Sep-17 Total Liabilities Shareholders's Equity D/E ROA (%) ROE (%) 18.5% 16.1% 15.9% 13.7% 31-Dec-16 30-Sep-17 31-Dec-16 30-Sep-17 11

Agenda Company Overview 3Q2017 Key Financial Highlights Business Update 12

Outlet Expansion Plan Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 17 14 Plan No. of New outlets in 2017 1 MK Yayoi Others 11 7 No. of New outlets opened in 9M2017 0 MK Yayoi Others 13

Marketing Campaign – MK 14

Marketing Campaign – Yayoi 15

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