K I N T O N R A M E N C O M P A N Y P R E S E N T A T I O N F E B R U A R Y

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1 K I N T O N R A M E N C O M P A N Y P R E S E N T A T I O N F E B R U A R Y

2 EXECUTIVE SUMMARY Kinton Ramen is a Successful, Fast Growing and Differentiated Restaurant Concept Kinton Ramen ( Kinton or the Company ) is a hyper-growth, ramen restaurant concept based out of Toronto The Company was the first authentic Japanese ramen bar to open in Toronto in May 2012 Focusing solely on ramen in the kitchen, Kinton is uncompromising in serving the best quality noodles and broth Since its inception, Kinton Ramen has grown aggressively, currently operating 13 (1) restaurants in 3 cities across 2 different countries - and growing! Growth has been accelerating with 7 openings in the last 12 months Kinton Ramen is part of Kinton Kinka Corporation ( KKC or the Parent ), an international multi-unit operator and the largest Japanese restaurant group in Canada KKC owns and operates a portfolio of 20 restaurants across two main brands in Toronto, Montreal, Tokyo and Seoul KKC s other main restaurant concept is Kinka Izakaya, a Japanese pub most famous for its bustling atmosphere The restaurant group has experienced rapid expansion, successfully opening 10 (1) locations in the past 18 months All the locations are wholly-owned and KKC has been profitable since inception 2017 Revenue of C$25M (up 33% y-o-y) Kinka Izakaya is complementary to Kinton Ramen and reinforces the restaurant group s strong Japanese authenticity KKC s impressive growth has been funded entirely with equity and cash flow reinvestment (no bank debt) The Parent has completed a C$7.2M gross equity infusion in September 2017 to fund its future expansion With a successful underlying restaurant portfolio, highly attractive unit economics and recently recapitalized balance sheet KKC is well positioned to expand in the United States (1) Including restaurants for which we have signed lease agreements and are in the process of being opened.

3 RESTAURANT OVERVIEW Kinton Ramen is a unique, authentic Japanese ramen noodle house and soup experience The restaurant serves variations of the ramen noodle bowl with their signature home-made broths and noodles Kinton Ramen is committed to providing a healthy dining experience; using high quality ingredients and healthy fats Restaurants typically seat in a 1,000-2,000 sq. ft. space All locations are wholly-owned Plan to open 27 locations in the next months LOCATION SUMMARY Cote-des-Neiges, Montreal 1188 Union Street, Montreal 35 William Kitchen Road, Scarborough Sinsa-dong, Seoul 4032 Confederation Parkway, Mississauga 90 Eglinton Avenue East, Toronto 505 Highway 7 East, Markham 1211 Rue Bishop, Montreal 396 Church Street, Toronto 5165 Yonge Street, Toronto 402 Queen Street West, Toronto 668 Bloor Street West, Toronto 51 Baldwin Street, Toronto THE LINEUPS PERPETUALLY BLOCKING THE SIDEWALK IN FRONT OF THIS GUU OFFSHOT ATTEST TO THE QUALITY OF THIS UNCHARACTERISTICALLY COMPLEX PORK-BASED BROTH. PERFECTLY CHEWY HOUSE-MADE NOODLES AND UNORTHODOX TOPPINGS LIKE BLOWTORCHED PORK BELLY, GRATED SWISS CHEESE AND RAW GARLIC ONLY UP THE ANTE. - NOW TORONTO 3 1 Toronto Montreal Seoul 9

4 CANADA (13 Kinton, 17 Total) KKC has strong location concentration in Toronto The Company has started expanding to neighboring cities to leverage brand recognition and economies of scale without cannibalization Montreal is the second largest city with 4 units KOREA (1 Kinton, 2 Total) Two units in the exclusive neighborhood of Gangnam (Seoul) 4,000 sq ft space features both a Kinton and a Kinka JAPAN (1 Total) KINKA japan was established in September 2016 It is located in the heart of Tokyo s hottest culinary destination, Shibuya

5 K I N T O N H I G H L I G H T S TAILWINDS FROM SUSTAINED RAMEN ADOPTION HIGHLY ATTRACTIVE AND CONSISTENT UNIT ECONOMICS MANAGEMENT TEAM EXPERIENCED IN MANAGING AND GROWING AN INTERNATIONAL MULTI-UNIT PORTFOLIO BUSINESS MODEL ALREADY PROVEN IN CANADA, A COUNTRY WITH SIMILAR DEMOGRAPHIC AND CULTURAL CHARACTERISTICS AS THE US CONSISTENT FINANCIAL PERFORMANCE & CASH FLOW CONVERSION STRONG BALANCE SHEET BRAND EQUITY VALUE ALL LOCATIONS ARE WHOLLY-OWNED SOPHISTICATED AND SUPPORTIVE INVESTOR GROUP

6 HIGHLIGHTS WELL POSITIONED TO CAPITALIZE ON ATTRACTIVE INDUSTRY DYNAMICS ATTRACTIVE MARKET Ramen Bowls are one of the hottest restaurants trends in the fast and casual restaurant space According to a Technomic report, the incidence of ramen mentions on menus and emerging chain restaurants increased roughly 20 percent from March 2013 to March 2014 However, the ramen market is very fragmented The majority of the competitors are small mom & pop operations There are no established chains, franchises or branded restaurants Despite the cuisine s increasing popularity, there was only one ramen chain featured in the Future 50: Emerging Brands list published by the Restaurant Business Magazine Leadership vacuum in the ramen restaurant space presents a large opportunity to own the market KKC RESTAURANTS SERVED 1,500,000+ PEOPLE LAST YEAR A WILL SERVE AN AVERAGE OF 120,000 PEOPLE PER YEAR A KINKA IZAKAYA WILL SERVE AN AVERGE OF 85,000 PEOPLE PER YEAR OUR ADVANTAGE Proven restaurant concept Biggest challenge for setting up a restaurant chain starts with getting the concept right Kinton Ramen s cuisine and environment cater to an incredibly wide-ranging demographic: from students and business clientele to family and elders Brand Diversification The Parent s two main concepts are similar in certain respects to create a consistent brand identity; however, they each have distinctive characteristics that help diversify clientele and also prevent cannibalization Sister brand Kinka Izakaya caters to a slightly younger clientele Ingredients and Selection At KKC s restaurants, everything is made from scratch and menu selection is much greater than that of smaller shops Greater choice in broth (incl. chicken and fish) caters to a larger audience as the traditional pork broth often does not meet religious and other dietary restrictions Economies of Scale With a unit base of 20 restaurants in concentrated locations, KKC enjoys greater pricing power and overall efficiency compared to smaller competitors

7 HIGHLIGHTS TAILWINDS FROM SUSTAINED RAMEN ADOPTION From Milan to Madison, ramen has spawned slurp-worthy iteration after iteration of its standard components: noodles and broth. Further proof the soup s stock has risen? Tsuta, a nine-seat ramen spot in Tokyo, is considered one of the most exclusive restaurants in all of Japan, and in December became the first ramen shop to be awarded a Michelin star. Trend experts say we can expect to see the further globalization of the classic come FOOD TRENDS 2015: WHAT WILL TOP THEM IN Sun Noodle supplies ramen noodles to hundreds of restaurants across the country, with sales growing at a clip of 15 to 20 percent a year. INSIDE SUN NOODLE, THE SECRET WEAPON OF AMERICA S BEST RAMEN SHOPS In the past, when American customers think about Asian food, it has been primarily Japanese sushi or Americanized Chinese food. In 2015, look for Korean and Vietnamese food and upscale ramen to take over mainstream menus. THE 10 BIGGEST RESTAURANT TRENDS FOR 2015 Americans, especially younger ones, are deeply enamored with Asian food. Sales at Asian fast food restaurants have grown by 135 percent since 1999, well outpacing the growth seen in any other segment. ASIAN FOOD: THE FASTEST GROWING FOOD IN THE WORLD SEARCHES FOR RAMEN (10 YEAR TRND) 2017 WHAT S HOT ON THE MENU

8 HIGHLIGHTS BRAND EQUITY VALUE Despite being a relatively young company, KKC and Kinton Ramen in particular has been able to generate strong brand recognition and social media following The Company has received many positive features in the press and has been recognized for its authentic menu offering and modern ambience While intangible, strong brand awareness is key component to a successful restaurant chain and underscores the recurrence and predictability of its cash flows 12 Of The Best Restaurants In Toronto For Every Taste & Budget You Gotta Eat Here! 5 Top Spots for Ramen Best Ramen Restaurant three years in a row (Kinton Ramen) Best Japanese Restaurant two years in a row (Kinka) 10 Best List Step Inside Kinton Ramen, a New Japanese Game Changer for Montreal

9 RESTAURANT OVERVIEW KINKA IZAKAYA The menu is exhaustive with 50 items on the regular menu +10 daily chef specials Menu items are much healthier than traditional pub cuisine Restaurants typically seat in a 2,000-3,000 sq. ft. space Patio is preferred, but not necessary An Izakaya is a Japanese-style pub. They are typically casual places for after-work drinking Unique selection of Japanese specialty drinks including Sapporo Draft Beer, Kinka Sake & Japanese Cocktails Unlike other Japanese styles of eating, food items are usually shared by everyone at the table as in Spanish tapas LOCATION All locations SUMMARY are wholly-owned Sinsa-dong, Seoul 4775 Yonge Street, Toronto 1624 Rue Sainte-Catherine Ouest, Montreal 559 Bloor Street West, Toronto 398 Church Street, Toronto Kinka Izakaya is an open-kitchen style where the kitchen is the stage. Clients are welcomed by the kitchen staff upon arrival and departure (clapping and a cheer). The open kitchen doubles as a trust factor for the client to see how their dishes are being prepared and the cleanliness of the kitchen THE PRESENTATION HERE IS POLISHED, DOWN TO THE DAILY SPECIALS LIKE NOVA SCOTIA LOBSTER ON TOP OF A BOX WITH DRIED HERBS. KINKA DOES IT REALLY WELL, AND THE HIGH QUALITY AND HIGH ENERGY WILL CERTAINLY KEEP YOU AWAKE! - THE MONTREAL GAZETTE 1 1 Toronto Montreal Seoul 3

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14 865 Dundas Street West Toronto Ontario M6J 1V6 KINKA PROJECT REFERENCE 3

15 865 Dundas Street West Toronto Ontario M6J 1V6 KINKA PROJECT REFERENCE 4

16 865 Dundas Street West Toronto Ontario M6J 1V6 KINKA PROJECT REFERENCE 5