MK Restaurant Group PCL...
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4Q2016 Presentation Results March 2017 MK Restaurant Group PCL (“M”) Company Presentation
Transcript of MK Restaurant Group PCL...
4Q2016 Presentation Results
March 2017
MK Restaurant Group PCL (“M”)
Company
Presentation
1
Agenda
Company Overview
4Q2016 Key Financial Highlights
Business Update
2
Business Structure
Japanese restaurant:
Yayoi
Registered Capital: 400
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)
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)
50%100%100%
Suki restaurant : MK Suki, MK Gold
Thai restaurant : Na Siam, Le Siam
Japanese restaurant : Hakata, Miyazaki
Coffee shop & Bakery : Le Petit
Franchise
MK Restaurant Group Plc.
“M”
Food manufacturer &
Distributor
Registered Capital: 100
MB
International Food
Supply Co.,Ltd.
“IFS”
100%
3
Restaurant Outlets in Thailand
Type of Business Restaurants Brand No. of Outlets Average Spending (THB)
Suki Restaurant MK 418 300
MK Gold 6 530
Japanese Restaurant Yayoi 158 240
Miyazaki 26 300
Hakata 3 200
Thai Restaurant Na Siam 1 270
Le Siam 4 700
Coffee Shop & Bakery
Le Petit 3 160
Remark: Data as of Dec 2016
4
Leader in chained restaurant industry with nationwide branches coverage
Dominant Position in Chained Restaurant Industry
61 70 79 89 99
3043
5051
59
2012 2013 2014 2015 2016
Bangkok & Metropolitan area Provincial area
172 176 189 197 199
182 205218 222 225
2012 2013 2014 2015 2016
Bangkok & Metropolitan area Provincial area
Extensive Coverage Nationwide
North
MK & MK Gold 22
Yayoi 5
West
MK & MK Gold 19
Yayoi 6
North East
MK & MK Gold 53
Yayoi 13
South
MK & MK Gold 48
Yayoi 10
East
MK & MK Gold 44
Yayoi 13
BKK & Greater BKK
MK & MK Gold 199
Yayoi 99
Central
MK & MK Gold 39
Yayoi 12
Branches
Japan
MK 32
Japan
an
MK 5
Vietnam
an
MK 2 / Yayoi 7
Singapore
53%
47%
354
419 424381
37%
63%
91
158
113
407
129140
an
MK 1 / Miyazaki 1
Lao PDR
5
-9%
-6%
-1%
1%
0%
-4%
-12%
-8%
-5%
3%2%
-1%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Same-Store Sales Growth
In 2016, same-store sales growth for MK & Yayoi were -1% and +4% respectively, slightly improved compared to
the previous year.
-5%
-8%-10%
7%
3% 3%
-3%
-8%
-1%
5%
8%
3%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
6
Agenda
Company Overview
4Q2016 Key Financial Highlights
Business Update
7
Total Revenues and Net Profit
%YoY Growth 2011 2012 2013 2014 2015 2016
Total Revenues 19% 21% 8% 6% 0% 4%
Net Profit 32% 25% 0% 0% -9% 13%
10,824
13,141 14,139
14,957 14,923 15,498
1,625 2,031 2,039 2,042 1,856 2,100
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2011 2012 2013 2014 2015 2016
Total Revenues Net Profit
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Gross Profit
Revenue ContributionRevenues from Sales and Services
Revenues Growth
In 2016, revenues from sales & services grew up 4% compared to the prior year due primarily to the new branch
expansion.
THB Million
THB Million
MK, 80%
Yayoi, 18%
Others, 2%
3,585 3,749 3,481 3,665 3,590 4,038 3,710 3,777
14,478 15,115
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2015 2016
+3% YoY
+4% YoY
2,367 2,471 2,261 2,435 2,415 2,713 2,463 2,572
9,534 10,163
66% 66% 65% 66% 67% 67% 66% 68% 66% 67%
0%
10%
20%
30%
40%
50%
60%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2015 2016
+6% YoY
+7% YoY
9
SG&A
In 2016, SG&A increased 4% compared to the prior year primarily due to the expenses from branch expansion.
SG&A Expenses
2016 SG&A Expenses Breakdown
THB Million
Personel, 52%
Rental, 19%
Utilities, 7%
Others, 22%
1,880 1,942 1,908
1,929 1,963 2,049 1,942 1,988
7,660 7,942
51% 50%53% 51% 53%
50% 51% 51% 51% 51%
0%
10%
20%
30%
40%
50%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2015 2016
+3% YoY
+4% YoY
10
Net Profit
THB Million
EBITDA
In 2016, EBITDA & Net Profit grew 10% and 13% YoY respectively compared to the previous year
THB Million
EBITDA & Net Profit
800 847 664 829 760 976 844 888
3,139 3,468
22% 22%19%
22% 21%24% 22% 23% 21% 22%
0%
5%
10%
15%
20%
25%
-
1,000
2,000
3,000
4,000
5,000
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2015 2016
+7% YoY
+10% YoY
480 516 365 495 438
613 510 538
1,856 2,100
13.0% 13.4%
10.2%
13.1%11.9%
14.8%13.4% 13.9%
12.4%13.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
500
1,000
1,500
2,000
2,500
3,000
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2015 2016
+9% YoY
+13% YoY
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Current RatioD/E Ratio
Financial Ratio
Liquidity is at a comfortable level as well as strong capital base to support growth
ROA (%) ROE (%)
2,124 2,265
12,998 13,377
0.16 0.17
-
0.05
0.10
0.15
-
5,000
10,000
15,000
20,000
31-Dec-15 31-Dec-16
Total Liabilities Shareholders's Equity D/E
5.2 5.4
31-Dec-15 31-Dec-16
12.4%13.7%
31-Dec-15 31-Dec-16
14.5%15.9%
31-Dec-15 31-Dec-16
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Agenda
Company Overview
4Q2016 Key Financial Highlights
Business Update
13
Notable Events
February 29, 2016 Signed Memorandum of
Outstanding (MOU) with Office
of the Vocational Education
Commission including 24
colleges participated in the
project
May 17, 2016 Awarded “No.1 Brand Thailand
2015-2016” in Restaurant
category from “Marketeer
Magazine”
June 17, 2016 Signed Memorandum of
Outstanding (MOU) with National
Food Institute, Ministry of
Industry for project “MK Healthy,
No MSG Safety Food”
July 1, 2016
July 27, 2016
Open 5th MK Branch in Ho Chi
Minh City, Vietnam
Awarded “Premium Product of
Thailand-The Pride of Thais”
from Ministry of Industry
October 7, 2016 Registered the increase of paid-
up share capital from Baht
910,249,500 to Baht
914,849,400 from the exercise of
ESOP warrants (M-WA)
14
Continued expansion strategy with shopping complexes, modern trade stores and community malls covering
nationwide
Outlet Expansion Plan
No. of New
outlets opened
in 2016
Plan
No. of New
outlets in 2017
12
19
5
MK Yayoi Others
15
20
5
MK Yayoi Others
15
Marketing Campaign – MK
16
Marketing Campaign – MK Special Occasions
17
Marketing Campaign – Yayoi
18
