MK Restaurant Group PCL ( M ) 2Q2019 Presentation Results August - PowerPoint PPT Presentation

Company Presentation MK Restaurant Group PCL ( “ M ” ) 2Q2019 Presentation Results August 2019

Agenda Company Overview 2Q2019 Key Financial Highlights Business Update 1

Business Structure MK Restaurant Group Public Company Limited (M) 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 100% 100% 100% 49.75% 100% MK Service Mark One MK Interfood International Food M-Senko Logistics Training Center Innovation Center Co., Ltd. Supply Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.  Provide logistics &  Yayoi Japanese  Food manufacturer &  Research & development  Provide training services distributor warehouse services  Registered Capital: Restaurants  Registered Capital:  Registered Capital:  Registered Capital:  Registered Capital: 60 MB 35 MB 400 MB 280 MB 1,300 MB 100% 50% 12% Plenus & MK Pte. Catapult Co., Ltd. Plenus MK Co.,Ltd. Ltd.  Restaurant business  Restaurants in  MK Suki Restaurants  Registered Capital: Singapore in Japan 1 MB  Registered Capital:  Registered Capital: SGD12.5 Million 2 JPY 250 million

Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Suki Restaurant MK 440 7 MK Gold MK Live 5 Japanese Restaurant 188 Yayoi Miyazaki 23 Hakata 5 Thai Restaurant 1 Na Siam 3 Le Siam Others 3 Le Petit 6 Bizzy Box 1 Harvest 3 Remark: Data as of Jun 2019

Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage 452 Extensive Coverage Nationwide 448 435 424 419 Branches North 248 246 55% 235 225 MK / Gold / Live 24 222 Yayoi 6 North East MK / Gold / Live 61 West Yayoi 18 MK / Gold / Live 19 Yayoi 7 202 204 197 199 200 45% East MK / Gold / Live 49 Central Yayoi 20 MK / Gold / Live 44 Yayoi 16 2015 2016 2017 2018 2Q19 BKK & Greater BKK MK / Gold / Live 204 Bangkok & Metropolitan area Provincial area Yayoi 108 188 184 165 158 140 80 78 South 68 43% 59 MK / Gold / Live 51 Yayoi 13 51 Vietnam Japan Singapore an Japan an 57% 106 108 99 97 89 MK 35 Yayoi 8 MK 9 Malaysia Lao PDR 2015 2016 2017 2018 2Q19 an Bangkok & Metropolitan area Provincial area 4 Yayoi 1 MK 2 / Miyazaki 1

Same-Store Sales Growth In 2Q2019, same-store sales growth for MK and Yayoi were 2% and -3% respectively compared to the previous year. 3% 2% 2% 2% 1% 0% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 3% 2% 1% 0% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 -1% -3% 5

Agenda Company Overview 2Q2019 Key Financial Highlights Business Update 6

Total Revenues and Net Profit Million Baht Total Revenues Net Profit 17,234 16,458 15,498 14,957 14,923 9,042 8,543 2,425 2,574 2,100 2,042 1,856 1,291 1,398 2014 2015 2016 2017 2018 1H18 1H19 %YoY Growth 2014 2015 2016 2017 2018 1H19 Total Revenues 6% 0% 4% 6% 5% 6% Net Profit 0% -9% 13% 15% 6% 8% 7

Revenues Growth In 2Q2019, revenues from sales & services grew up 5% compared to the prior year due primarily to the new branch expansion Revenues from Sales and Services Revenue Contribution THB Million +6% YoY Others, 2% 8,822 8,298 Yayoi, 19% +5% YoY 4,470 4,249 4,352 4,049 MK, 79% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 Gross Profit THB Million 68.5% 68.7% 68.5% 68.5% 69.0% 68.4% 14,000 70% 12,000 60% +7% YoY 10,000 50% +7% YoY 6,063 8,000 40% 5,684 6,000 30% 3,085 2,911 2,979 2,773 4,000 20% 2,000 10% - 0% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 8

SG&A Expenses In 2Q2019, SG&A increased 5% YoY compared to the prior year primarily due to the increase of labor cost and rent. SG&A 1H2019 SG&A Expenses Breakdown THB Million 51% 51% 50% 51% 51% 50% 8,000 50% Others, 7,000 13% +5% YoY 40% Depreciation, 6,000 4,561 7% 4,348 5,000 +5% YoY 30% Utilities, 4,000 7% Personel, 2,344 20% 2,233 2,218 3,000 2,114 53% 2,000 Rental, 10% 1,000 20% - 0% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 9

EBITDA & Net Profit In 2Q2019, EBITDA & Net Profit grew 3% and 4% YoY respectively compared to the previous year EBITDA THB Million 23.8% 23.6% 23.4% 23.3% 23.1% 22.8% 5,000 25% 4,000 20% 6% YoY 3,000 3% YoY 15% 2,109 1,996 2,000 10% 1,062 1,047 982 1,014 1,000 5% - 0% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 Net Profit THB Million 15.9% 15.5% 15.1% 15.2% 15.1% 3,000 15.0% 16% 2,500 14% +8% YoY 12% 2,000 1,398 10% +4% YoY 1,291 1,500 8% 710 689 659 6% 632 1,000 4% 500 2% - 0% 1Q18 2Q18 1Q19 2Q19 1H18 1H19 10

Financial Ratio Liquidity is at a comfortable level as well as strong capital base to support growth Current Ratio D/E Ratio 0.21 5.0 0.18 20,000 0.20 4.2 14,176 14,377 15,000 0.15 10,000 0.10 2,998 2,605 5,000 0.05 - - 31-Dec-18 30-Jun-19 Total Liabilities Shareholders's Equity D/E 31-Dec-18 30-Jun-19 ROA (%) ROE (%) 18.9% 18.4% 16.1% 15.4% 31-Dec-18 30-Jun-19 31-Dec-18 30-Jun-19 11

Agenda Company Overview 2Q2019 Key Financial Highlights Business Update 12

Notable Events in 1H2019  Awarded “ Thailand Top Company Awards 2019 ” in “ Food & Beverage ” category March 19, 2019 from Business+ Magazine & University of The Thai Chamber of Commerce. Opened 8 th MK Branch in Hanoi, Vietnam.  April 26, 2019 Opened 9 th MK Branch in Ho Chi Minh City, Vietnam.  June 28, 2019  The Company was included in “ THAIPAT Institute’s 2019 ESG100 ”, recognized June 7, 2019 as outstanding performance in environment, social and governance aspects for 4 consecutive years. 13

Outlet Expansion Plan Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 17 15 Plan No. of New outlets in 2019 6 MK Yayoi Others 6 5 No. of New 4 outlets opened in 1H2019 MK Yayoi Others 14

Marketing Campaign in 2Q2019 – MK 15

Marketing Campaign in 2Q2019 – MK 16

Marketing Campaign in 2Q2019 – Yayoi 17

Marketing Campaign in 2Q2019 – Yayoi 18

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