MK Restaurant Group PCL (M) 4Q2018 Presentation Results February - PowerPoint PPT Presentation

Company Presentation MK Restaurant Group PCL (“M”) 4Q2018 Presentation Results February 2019

Agenda Company Overview 4Q2018 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% MK Service MK Interfood International Food M-Senko Logistics Training Center Co.,Ltd. Supply Co.,Ltd. Co.,Ltd. Co.,Ltd.  Yayoi Japanese  Provide training services  Food manufacturer &  Provide logistics & Restaurants  Registered Capital: distributor warehouse services  Registered Capital: 35 MB  Registered Capital:  Registered Capital: 400 MB 280 MB 1,300 MB 50% 12% 100% Mark One Plenus & MK Pte. Innovation Center Plenus MK Co.,Ltd. Ltd. Co.,Ltd.  MK Suki Restaurants  Restaurants in  Research & development Singapore in Japan  Registered Capital:  Registered Capital:  Registered Capital: 60 MB 2 JPY 250 million SGD12.5 Million

Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Suki Restaurant MK 438 6 MK Gold MK Live 4 Japanese Restaurant 184 Yayoi Miyazaki 26 Hakata 4 Thai Restaurant 1 Na Siam 3 Le Siam Others 3 Le Petit 4 Bizzy Box 1 Harvest 3 Remark: Data as of Dec 2018

Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage Extensive Coverage Nationwide 448 435 424 407 419 Branches North 246 55% 235 225 MK / Gold / Live 24 222 218 Yayoi 6 North East MK / Gold / Live 61 West Yayoi 18 MK / Gold / Live 19 Yayoi 7 202 197 199 200 45% 189 East MK / Gold / Live 49 Central Yayoi 20 MK / Gold / Live 43 Yayoi 14 2014 2015 2016 2017 2018 BKK & Greater BKK MK / Gold / Live 202 Bangkok & Metropolitan area Provincial area Yayoi 106 184 165 158 140 129 78 68 59 South 42% MK / Gold / Live 50 51 Yayoi 13 50 Vietnam Japan Singapore 106 an Japan an 58% 99 97 89 79 MK 35 Yayoi 8 MK 7 Malaysia Lao PDR 2014 2015 2016 2017 2018 an Bangkok & Metropolitan area Provincial area 4 Yayoi 1 MK 2 / Miyazaki 1

Same-Store Sales Growth In Y2018, same-store sales growth for MK and Yayoi were 1% and flat respectively compared to the previous year. 5% 3% 3% 2% 2% 1% 0% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 -1% -3% 8% 7% 4% 3% 1% 1% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 -1% 0% -4% 5

Agenda Company Overview 4Q2018 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 14,139 2,574 2,042 2,100 2,425 2,039 1,856 2013 2014 2015 2016 2017 2018 %YoY Growth 2013 2014 2015 2016 2017 2018 Total Revenues 8% 6% 0% 4% 6% 5% Net Profit 0% 0% -9% 13% 15% 6% 7

Revenues Growth In 4Q2018, revenues from sales & services grew up 4% compared to the prior year due primarily to the new branch expansion. Revenues from Sales and Services Revenue Contribution Others, 2% THB Million +4% YoY 16,770 16,073 Yayoi, 20% +4% YoY 3,805 4,106 4,033 4,129 4,049 4,249 4,177 4,295 MK, 78% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Gross Profit THB Million +5% YoY 68.2% 67.9% 67.6% 68.5% 68.5% 68.4% 68.4% 68.3% 67.6% 67.8% 14,000 11,475 60% 10,899 12,000 50% 10,000 40% 8,000 +5% YoY 30% 6,000 2,911 2,798 2,859 2,933 2,738 2,791 2,773 2,572 4,000 20% 10% 2,000 - 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 8

SG&A Expenses In 4Q2018, SG&A increased 3% YoY compared to the prior year primarily due to the increase of personnel expenses related to the provision for the long-term employee benefit SG&A 2018 SG&A Expenses Breakdown THB Million +6% YoY 49% 49% 53% 52% 50% 51% 51% 50% 51% 50% Others, 50% 10,000 15% 8,299 8,806 Depreciation, 40% 8,000 7% Utilities, 30% Personel, 6,000 7% 52% +3% YoY 20% 4,000 1,960 2,074 2,039 2,226 2,114 2,233 2,168 2,290 Rental, 19% 10% 2,000 - 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 9

EBITDA & Net Profit In 4Q2018, EBITDA & Net Profit grew 6% and 11% YoY respectively compared to the previous year EBITDA THB Million +3% YoY 24.8% 24.4% 23.4% 23.1% 23.6% 23.7% 22.9% 21.3% 23.3% 6,000 20.8% 25% 5,000 3,952 20% 3,840 4,000 15% 3,000 6% YoY 10% 2,000 1,044 1,008 982 1,014 1,021 910 878 935 5% 1,000 - 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Net Profit THB Million +6% YoY 16.0% 15.8% 15.7% 15.2% 15.1% 4,000 14.2% 14.9% 14.7% 13.8% 16% 12.9% 14% 2,574 3,000 2,425 12% 10% 2,000 8% 11% YoY 6% 675 651 659 676 632 606 553 546 1,000 4% 2% - 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 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 25,000 0.18 5.0 0.20 20,000 4.2 14,176 13,829 0.15 15,000 0.10 10,000 2,998 2,454 0.05 5,000 - - 31-Dec-17 31-Dec-18 Total Liabilities Shareholders's Equity D/E 31-Dec-17 31-Dec-18 ROA (%) ROE (%) 17.8% 18.4% 15.4% 15.2% 31-Dec-17 31-Dec-18 31-Dec-17 31-Dec-18 11

Agenda Company Overview 4Q2018 Key Financial Highlights Business Update 12

Notable Events in 2018  March 30, 2018 Set up the new joint venture company “ M-Senko Logistics ” to operate logistics, warehouse rental, trading and forwarding businesses.  April 12, 2018 Launched the new concept under brand “ MK Harvest ” at “ The Emquartier ”.  Set up the new subsidiary “ Mark One May 21, 2018 Innovation Center ” in order to do research and development of technology and innovation in food and beverage.  Awarded “ No. 1 Brand Thailand 2017- May 21, 2018 2018 ” in Chain Restaurant category from “ Marketeer Magazine”.  June 1, 2018 Launched the new grab & go concept under brand “ Bizzy Box ”. Awarded “ The Most Powerful Brand  Oct 3, 2018 of Thailand 2018 ” in Chain Restaurant category from Chulalongkorn University.  Awarded “ Thailand Corporate Nov 29, 2018 Excellence Awards 2018 ” in category 13 of “ Innovation Excellence ”.

Outlet Expansion Plan Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 20 20 No. of New outlets opened in 2018 7 MK Yayoi Others 20 20 Plan No. of New 10 outlets in 2019 14 MK Yayoi Others

Marketing Campaign in 4Q2018 – MK 15

Marketing Campaign in 4Q2018 – MK 16

Marketing Campaign in 4Q2018 – Yayoi 17

Marketing Campaign in 4Q2018 – Yayoi 18

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