Company Presentation Opportunity Day 3Q2013 December, 2013
Company Presentation Opportunity Day 3Q2013 December, 2013
Disclaimer Copyright 2013 MK Restaurant Group Public Company Limited. All rights reserved. Any unauthorized use or disclosure is prohibited. The information contained in our presentation is intended for general information purpose only. The information herein was obtained from various sources and is subject to change without notice. We do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities. In addition, this presentation includes statements of future expectations, projections or other forward-looking statements, which reflect our current views with respect to future events and are not a guarantee of future performance. A number of important factors, risks and uncertainties could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed in this presentation and should understand that statements regarding future prospects may not be realized. Accordingly, we caution you not to rely unduly on these forward-looking statements. Past performance is not necessarily a guide to future performance. 2
Agenda Company Overview 3Q13 Key Financial Highlights Business Update 3
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% 50% 12% MK Interfoods Co., Ltd. MKI MK Services Training Center Co., Ltd. MKST Plenus & MK Pte. Ltd. Plenus & MK (Joint Venture) Plenus MK Co., Ltd. Plenus MK (Joint Venture) Japanese restaurant: Yayoi Registered Capital: 150 MB Training services for MK group Registered Capital: 35 MB Restaurants in Singapore Registered Capital: SGD12.5 Million (~ 320 MB) MK Restaurants in Japan Registered Capital: JPY250 Million (~80 MB) 4
Our Restaurants Diversified Presence in Several Restaurant Segments Leading Position in Hotpot and Japanese Restaurant Segments Hot Pot Restaurant Japanese Restaurant Thai Restaurant Other Restaurant International Restaurant Japan Japan Vietnam an Singapore an Indonesia an 5
Restaurant Outlets in Thailand Type of Business Restaurants Brand No. of Outlets Average Spending (THB) Suki Restaurant MK 357 265 MK Gold 6 456 Japanese Restaurant Yayoi 104 220 Miyazaki 2 290 Hakata 1 225 Thai Restaurant Na Siam 1 235 Le Siam 2 456 Coffee Shop & Bakery Le Petit 1 277 6
Dominant Position in Chained Restaurant Industry Leader in chained restaurant industry with nationwide branches coverage 354 363 290 314 182 191 141 157 149 157 172 172 53% 47% Branches Extensive Coverage Nationwide North MK & MK Gold 19 Yayoi 3 West MK & MK Gold 16 Yayoi 3 North East MK & MK Gold 46 Yayoi 10 2010 2011 2012 3Q2013 Bangkok & Metropolitan area Provincial area 51 18 64 22 33 42 30 38 61 66 2010 2011 2012 Q3' 2013 Bangkok & Metropolitan area 91 104 Provincial area 37% 63% Vietnam an MK 4 Central MK & MK Gold 29 Yayoi 9 Japan Japan MK 34 South MK & MK Gold 41 Yayoi 4 East MK & MK Gold 40 Yayoi 9 BKK & Greater BKK MK & MK Gold 172 Yayoi 66 Singapore an MK 1 / Yayoi 4 Indonesia an MK 1 7
Reputable Management Teams with Almost 30 Years of Experiences & Focusing in Restaurant Business Million 14,000 12,000 10,000 8,000 200 MK restaurant branches Expand to Japanese restaurant under Yayoi Expand business to Vietnam - franchise 300 MK restaurant branches Expand business to Singapore Expand business to Indonesia - franchise 18% 16% 14% 12% 10% 6,000 8% 6% 4,000 2,000 Expand business to Japan - franchise 100 MK restaurant branches 4% 2% - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0% Revenues %Net Profit Margin 8
Agenda Company Overview 3Q13 Key Financial Highlights Business Update 9
Revenues Growth In 3 rd quarter, revenues grew 8% while gross profit grew 6%, mainly from branch expansion Revenues Revenue Contribution THB Million +10% YoY 12,000 10,629 10,000 9,676 8,000 6,000 +8% YoY 4,000 3,416 2,988 3,638 3,381 3,575 3,307 2,000 0 Q1 Q2 Q3 9M 2012 2013 Others 1% Yayoi 14% MK 85% THB Million Gross Profit +9% YoY 6,441 7,021 Gross Profit Margin 67% 67% 67% 67% 68% 67% 67% 67% +6% YoY 1,977 2,273 2,244 2,394 2,221 2,354 Q1 Q2 Q3 9M 2012 2013 Q1 Q2 Q3 9M 2012 2013 10
EBITDA & Net Profit In 3 rd quarter, EBITDA & Net Profit grew 3% and 5% YoY respeictively THB Million 2,500 2,000 1,500 1,000 500 0 EBITDA +3% YoY 841 751 817 749 782 810-5% YoY 2,440 Q1 Q2 Q3 9M 2012 2013 2,310 Net Profit THB Million 2,000-6% YoY 1,595 1,500 1,496 1,000 +5% YoY 554 486 538 481 500 503 529 0 Q1 Q2 Q3 9M 2012 2013 EBITDA Margin Net Profit Margin 28% 22% 24% 21% 24% 23% 25% 22% 19% 14% 16% 13% 15% 15% 16% 14% Q1 Q2 Q3 9M 2012 2013 Q1 Q2 Q3 9M 2012 2013 11
No. of Customers & SSSG Negative Same-Store Sales Growth primarily due to the economic slowdown 38.1 39.0 No. of Customers 12.0 12.8 13.5 13.6 12.6 12.6 Q1 Q2 Q3 9M 14% 2012 2013 Same-Store Sales Growth 6% 6% -2% 2% -4% -4% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 33% 26% Same-Store Sales Growth 9% -4% -4% 5% 7% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 12
Private Consumption Index (PCI) vs. MK s SSSG 20% 15% 10% 5% 0% Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 -5% PCI SSSG Source: PCI data from BOT Website 13
Financial Position as at September 2013 Liquidity is at a comfortable level as well as strong capital base to support growth Total Assets Liabilities & Shareholders Equity THB Million THB Million 16,000 14,000 13,982 16,000 14,000 13,982 12,000 12,000 10,000 8,000 6,000 4,000 2,000 0 5,086 3,753 1,333 31-Dec-12 9,763 4,219 30-Sep-13 10,000 8,000 6,000 4,000 2,000 0 5,086 1,471 3,615 31-Dec-12 11,955 2,026 30-Sep-13 Current Assets Non Current Assets Total Liabilities Shareholders's Equity D/E Ratio Current Ratio 2.46 2.30 0.17 0.39 31-Dec-12 30-Sep-13 31-Dec-12 30-Sep-13 14
Agenda Company Overview 3Q13 Key Financial Highlights Business Update 15
Outlet Expansion Continued expansion strategy with shopping complexes, modern trade stores and community malls covering nationwide 55 No. of New Outlets 2013 10 21 30 1Q13 2Q13 3Q13 4Q13 MK Yayoi Others Accum. 35 No. of New Outlets 2014 20 9 MK Yayoi Others 16
Marketing Campaign ส ขล น รวยล าน 17
Status Update - New Central Kitchen Plan to start operation in February 2014 18
Medium Term Outlook Continuous Growth Plan 2013 Plan 65 branches expansion (MK: 45 and Yayoi: 25) New factory (CK5) @ 27,000 sq. m. with budget of THB 1,000 mm New office @ 5,500 sq. m. with budget of THB 320 mm 2017 Target International expansion MK: 10 branches Yayoi: 15 branches 2013 2013 YTD Progress MK: 16 branches Yayoi: 13 branches New factory (CK5) is estimated to be completed by February 2014 Completion of new head office construction Expansion Plan Domestic: 2017 Focus on MK and Yayoi brand, particularly in suburban area Feasibility study and market testing for the expansion of Hakata and Miyazaki Potential to acquire sizeable brand that is scalable by leveraging on M s infrastructure (i.e., central kitchen and logistic network) M has cash from IPO proceed that could be use to fund the new brand acquisition International: Continue to test the possibility to expand internationally through JV or franchise with partner who understands local market Potential to acquire established international chained restaurant 19
Q & A 20