4Q2019 Presentation Results

February 2020

MK Restaurant Group PCL (“M”)

Company

Presentation

1

Agenda

Company Overview

4Q2019 Key Financial Highlights

Business Update

2

Business Structure

MK Restaurant Group Public Company Limited (M)

Plenus & MK Pte. Ltd.

Plenus MK Co.,Ltd.

100%

MK Service Training Center

Co., Ltd.

100%

50% 12%

Yayoi Japanese

Restaurants

Registered Capital:

400 MB

Provide training services

Registered Capital:

35 MB

Food manufacturer &

distributor

Registered Capital:

280 MB

Restaurants in

Singapore

Registered Capital:

SGD12.5 Million

MK Suki Restaurants

in Japan

Registered Capital:

JPY 250 million

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

Provide logistics &

warehouse services

Registered Capital:

1,750 MB

International Food Supply Co., Ltd.

100%

M-Senko Logistics Co., Ltd.

49.75%

Mark One Innovation Center

Co., Ltd.

100%

Research & development

Registered Capital:

60 MB

Catapult Co., Ltd.

100%

MK InterfoodCo., Ltd.

Restaurant business

Registered Capital:

2,070 MB

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand No. of Outlets

Suki RestaurantMK 451

MK Gold 6

MK Live 6

Japanese RestaurantYayoi 198

Miyazaki 23

Hakata 6

Thai RestaurantNa Siam 1

Le Siam 3

OthersLe Petit 3

Bizzy Box 8

Harvest 1

Remark: Data as of Dec 2019

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

89 99 97 106 116

5159 68

7882

2015 2016 2017 2018 2019

Bangkok & Metropolitan area Provincial area

197 199 200 202 213

222 225 235 246 250

2015 2016 2017 2018 2019

Bangkok & Metropolitan area Provincial area

Extensive Coverage Nationwide

North

MK / Gold / Live 24

Yayoi 6

West

MK / Gold / Live 19

Yayoi 7

North East

MK / Gold / Live 63

Yayoi 18

South

MK / Gold / Live 51

Yayoi 14

East

MK / Gold / Live 49

Yayoi 21

BKK & Greater BKK

MK / Gold / Live 213

Yayoi 116

Central

MK / Gold / Live 44

Yayoi 16

Branches

Japan

MK 36

Japan

an

MK 9

Vietnam

an

Yayoi 10

Singapore

54%

46%

419 424 448

41%

59%

158

184

140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

463

198

5

3%

0% 0%

-1%

2% 2%

-4%

0%1% 0%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

Same-Store Sales Growth

In Y2019, same-store sales growth for MK and Yayoi were 0% and -5% respectively compared to the previous year.

3%

1%

-4%

0%

0%

-3%

-9%

-7%

0%

-5%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

6

Agenda

Company Overview

4Q2019 Key Financial Highlights

Business Update

7

Total Revenues and Net Profit

%YoY Growth 2014 2015 2016 2017 2018 2019

Total Revenues 6% 0% 4% 6% 5% 4%

Net Profit 0% -9% 13% 15% 6% 1%

Million Baht

14,957 14,923 15,498 16,458 17,234 17,871

2,042 1,856 2,100 2,425 2,574 2,604

2014 2015 2016 2017 2018 2019

Total Revenues Net Profit

8

Gross Profit

Revenue ContributionRevenues from Sales and Services

Revenues Growth

In Y2019, revenues from sales & services grew 4% from the previous year due primarily to the branch expansion

THB Million

THB Million

4,049 4,249 4,177 4,295 4,352 4,470 4,102 4,485

16,770 17,409

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

+4% YoY

+4% YoY

2,773 2,911 2,859 2,933 2,979 3,085 2,804 3,059

11,475 11,926

68.5% 68.5% 68.4% 68.3% 68.4% 69.0% 68.3% 68.2% 68.4% 68.5%

0%

10%

20%

30%

40%

50%

60%

70%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

4% YoY

+4% YoY

MK, 78%

Yayoi, 19%

Others, 3%

9

SG&A

In Y2019, SG&A increased 4% YoY compared to the prior year primarily due to the increase of rent, operating

expenses and personnel expenses .

SG&A Expenses

Y2019 SG&A Expenses Breakdown

THB Million

+3% YoY

+4% YoY

2,114 2,233 2,168 2,290 2,218 2,344 2,269 2,352

8,806 9,183

51% 51% 50% 52% 50% 51% 54% 51% 51% 51%

0%

10%

20%

30%

40%

50%

-

2,000

4,000

6,000

8,000

10,000

12,000

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

Personel, 52%

Rental, 20%

Utilities, 7%

Depreciation, 7%

Others, 14%

10

Net Profit

THB Million

EBITDA

In Y2019, Both EBITDA & Net Profit grew 1% YoY compared to the previous year

THB Million

EBITDA & Net Profit

982 1,014 1,021 935 1,062 1,047 861 1,013

3,952 3,982

23.6% 23.1% 23.7%21.3%

23.8% 22.8% 20.3% 22.0% 22.9% 22.3%

0%

5%

10%

15%

20%

25%

-

1,000

2,000

3,000

4,000

5,000

6,000

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

+8% YoY

+1% YoY

632 659 676 606 710 689 549 656

2,574 2,604

15.2% 15.1% 15.7%13.8%

15.9% 15.0%13.0% 14.3% 14.9% 14.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

+1% YoY

+8% YoY

11

Current RatioD/E Ratio

Financial Ratio

Liquidity is at a comfortable level as well as strong capital base to support growth

ROA (%) ROE (%)

2,998 3,315

14,176 14,306

0.21 0.23

-

0.05

0.10

0.15

0.20

-

5,000

10,000

15,000

20,000

31-Dec-18 31-Dec-19

Total Liabilities Shareholders's Equity D/E

4.2 3.5

31-Dec-18 31-Dec-19

15.4% 14.8%

31-Dec-18 31-Dec-19

18.4% 18.3%

31-Dec-18 31-Dec-19

12

Agenda

Company Overview

4Q2019 Key Financial Highlights

Business Update

13

Notable Events in 2019

Mar 19, 2019 Awarded “Thailand Top Company Awards 2019” in

“Food & Beverage” category from Business+ Magazine

& University of The Thai Chamber of Commerce.

Apr 26, 2019 Opened 8th MK Branch in Hanoi, Vietnam.

Jun 7, 2019 The Company was included in “THAIPAT Institute’s

2019 ESG100”, recognized as outstanding performance

in environment, social and governance aspects for 4

consecutive years.

Jun 11, 2019 Set up the new subsidiary “Catapult” to invest in food

business with registered capital Baht 2,070 million

Jun 28, 2019 Opened 9th MK Branch in Ho Chi Minh City, Vietnam.

Oct 23, 2019 Awarded “Asian Service Award 2019” from The

Standards and Quality Association of Thailand (SQAT)

for excellence in quality management.

Nov 28, 2019 Awarded “Thailand Corporate Excellence Awards

2019” in the category of “Marketing Excellence” and

“Corporate Improvement Excellence” organized by

Thailand Management Association (TMA) and Sasin

Graduate Institute of Business Administration of

Chulalongkorn University.

Nov 29, 2019 Invested in shares of “Laem Charoen Seafood” with

65% of shares by Catapult.

14

Continued expansion strategy with shopping complexes, modern trade stores and community malls covering

nationwide

Outlet Expansion Plan

No. of New

outlets opened

in Y2019

Plan

No. of New

outlets in 2020

16

9

5

MK Yayoi Others

1715

8

MK Yayoi Others

15

Marketing Campaign in 4Q2019 – MK

16

Marketing Campaign in 4Q2019 – MK

17

Marketing Campaign in 4Q2019 – Yayoi

18

Marketing Campaign in 4Q2019 – Yayoi

19