Financial Results
Third Quarter 2017
6 November 2017
BreadTalk Group Limited
Bakery Food Atrium Restaurant 4orth
2
BREADTALK GROUP LIMITEDDivisions - Brands
Note: Din Tai Fung and Song Fa are franchised brands
BAKERY
4ORTH
RESTAURANTFOOD ATRIUM
OTHERS
3Q 2017 FINANCIAL HIGHLIGHTSIncome Statement Highlights
3
S$ Million 3Q 2017 3Q 2016 Y/Y 9M 2017 9M 2016 Y/Y
Revenue 154.3 157.3 -2.0% 449.5 461.7 -2.6%
Bakery 77.2 78.6 -1.7% 223.1 229.2 -2.7%
Food Atrium 38.8 40.6 -4.5% 112.4 120.8 -6.9%
Restaurant 35.3 35.0 0.9% 104.8 102.2 2.5%
4orth 1.8 2.0 -9.8% 5.7 5.9 -4.1%
Others 1.1 1.2 -2.5% 3.4 3.5 -1.6%
EBITDA 20.1 21.1 -4.6% 64.9 59.4 9.1%
Bakery 7.4 9.6 -22.3% 18.7 21.6 -13.3%
Food Atrium 5.9 3.8 52.7% 17.7 7.8 127.0%
Restaurant 8.3 7.6 9.3% 22.3 20.8 7.0%
4orth 0.3 0.1 202.5% 0.3 0.1 71.6%
Others (1.7) (0.0) N.M 6.0 9.1 -34.6%
EBITDA Margin 13.0% 13.4% -0.4 ppt 14.4% 12.9% +1.5 ppt
Bakery 9.6% 12.2% -2.5 ppt 8.4% 9.4% -1.0 ppt
Food Atrium 15.1% 9.5% +5.7 ppt 15.7% 6.4% +9.3 ppt
Restaurant 23.5% 21.7% +1.8 ppt 21.2% 20.4% +0.8 ppt
4orth 13.9% 4.1% +9.8 ppt 4.5% 2.5% +2.0 ppt
Others -152.2% -1.2% -151.0 ppt 174.3% -6.5% +180.8 ppt
Net Profit 4.0 3.3 22.2% 16.8 7.0 139.5%
Net Margin 2.6% 2.1% +0.5 ppt 3.7% 1.5% +2.2 ppt
Core F&B Net Profit 6.2 4.8 30.0% 12.1 2.4 395.9%
Core F&B Net Margin 4.0% 3.0% +1.0 ppt 2.7% 0.5% +2.2 ppt
EPS (cents) 1.41 1.16 21.6% 5.96 2.49 139.4%
DPS (cents) 1.00 0.00 N.M 4.00 1.85 116.2%
4
GROUP KEY FINANCIAL HIGHLIGHTS
9M 2017 REVENUE: S$449.5M 9M 2017 REVENUE BY GEOGRAPHY 9M 2017 EBITDA: S$64.9M
EBITDA MIX BY BUSINESSREVENUE MIX BY GEOGRAPHYREVENUE MIX BY BUSINESS
55%
28%
11%
6%
Singapore$254.5m 57%
China$123.6m 27%
Hong Kong$40.6m 9%
Others$30.8m 7%
9M 2017
9M 201650%
27%
22%
1%
Bakery$223.1m 50%
Food Atrium$112.4m 25%
Restaurant$104.8m 24%
4orth$5.7m 1%
9M 2016
9M 2017
36%
13%
35%
0%Bakery$18.7m 29%
Food Atrium$17.7m 27%
Restaurant$22.3m 34%
4orth$0.3m 0%
9M 2017
9M 2016
STRONG PRESENCE ACROSS ASIAStrong foothold across 17 territories in Asia and Middle East
5
OUTLET DISTRIBUTION BY GEOGRAPHY OUTLET DISTRIBUTION BY BUSINESS SEGMENT
Singapore164
China390
Thailand48
Others340
FY 2016
Net Increase/
(Decrease) 9M 2017
Bakery 862 (3) 859
Direct Operating 260 (5) 255
Franchise 602 2 604
Food Atrium 57 (3) 54
Restaurant 24 0 24
Din Tai Fung 24 0 24
4orth 6 (1) 5
Ramen Play 6 (6) 0
Sō 0 5 5
3Q 2017 FINANCIAL HIGHLIGHTSBalance Sheet Highlights
6
CASH & CASH EQUIVALENT VS NET DEBT
CURRENT ASSET VS CURRENT LIABILITIES
94 83
4 4 9 22
207
229
FY 2014 FY 2015 FY 2016 1Q 2017 2Q 2017 3Q 2017
Net current liabilities (S$ Million) Current assets (S$ Million)
Current liabilities (S$ Million)
125
34
0
20
40
60
80
100
120
140
FY 2014 FY 2015 FY 2016 1Q 2017 2Q 2017 3Q 2017
Cash and cash equivalents (S$ Million) Net debt (S$ Million)
S$ Million 3Q 2017 3Q 2016 FY 2016
Total assets 516 528 534
Cash and cash equivalents 125 112 121
Accounts receivables 54 56 57
Inventories 10 10 10
Investment securities 0 0 17
Other current assets 18 6 6
Current assets 207 183 212
Property, plant and equipment 163 186 181
Investment securities 73 90 73
Non-current assets 309 344 322
Total liabilities 357 382 382
Accounts payables 83 82 86
Current liabilities 229 206 216
Non-current liabilities 127 176 166
Borrowings and debt securities 159 192 181
Short term 45 30 31
Long term 114 162 150
Net debt 34 79 61
3Q 2017 FINANCIAL HIGHLIGHTSCash Flow Highlights
7
S$ Million 3Q 2017 3Q 2016 9M 2017 9M 2016
Operating cash flow before working capital changes 20 26 58 64
Net cash flow from operating activities 17 34 49 62
Less:
Capital ex penditure (7) (13) (23) (31)
Inv estment in associate & joint v enture (1) (1) (4) (3)
Net cash flow used in investing activities (15) (14) (4) (18)
Free cash flow 10 21 26 32
Net decrease in bank borrow ings (2) (10) (22) (10)
Net cash flow used in financing activities (6) (19) (40) (25)
Net cash flow (3) - 6 19
S$ Million 3Q 2017 3Q 2016 9M 2017 9M 2016
Operating cash flow before working capital changes 20 26 58 64
Net cash flow from operating activities 17 34 49 62
Less:
Capital ex penditure (7) (13) (23) (31)
Inv estment in associate & joint v enture (1) (1) (3) (3)
Net cash flow used in investing activities (15) (14) (4) (18)
Free cash flow 10 21 26 32
Net decrease in bank borrow ings (2) (10) (22) (10)
Net cash flow used in financing activities (6) (19) (40) (25)
Net cash flow (3) - 6 19
8
3Q 2017 FINANCIAL HIGHLIGHTSFinancial Ratios
9M 2017 9M 2016 FY 2016
Trade Receiv ables Turnov er (day s) - Franchisee 92 89 84
Trade Receiv ables Turnov er (day s) - Non franchisee 2 2 2
Total Receivables Turnover (days) 8 7 7
Inventory Turnover (days) 24 28 26
Trade Payables Turnover (days) 29 28 29
Cash Conversion Cycle (days) 3 9 4
Net Debt/Shareholder's Equity 0.26x 0.62x 0.46x
Net Debt/EBITDA 0.71x 1.74x 0.69x
EBITDA/Interest ex pense 17.84x 13.23x 14.76x
Rest of the world: Malaysia, Thailand, Philippines, Indonesia, Vietnam, Myanmarr, Cambodia,Taiwan, Kuwait, Sri Lanka, Bahrain, Oman, Saudi Arabia & Qatar
BAKERY DIVISION
9
REVENUE 9M 2017 REVENUE BY GEOGRAPHY
EBITDA VS EBITDA MARGIN
Singapore 44%
China 41%
Hong Kong 11%
Rest of the world4%
50
100
150
200
250
300
350
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
Revenue (S$ Million)
-2.7%
11.0%
9.3%8.6% 8.8%
7.8%7.3%
9.9%9.4%
8.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
5
10
15
20
25
30
35
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
EBITDA (S$ Million) EBITDA Margin (%)
BAKERY DIVISION
10
SEA: Malaysia, Thailand, Philippines, Indonesia, Vietnam, Myanmar & CambodiaInternational: Taiwan. Kuwait, Sri Lanka, Bahrain, Oman, Saudi Arabia & Qatar
NUMBER OF BAKERY OUTLETS 9M 2017 OUTLET DISTRIBUTION BY GEOGRAPHY
129
862 859
0
200
400
600
800
1000
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M17
Number of outlets
China 363
Hong Kong 23
Singapore 123
SEA*314
International36
FOOD ATRIUM DIVISION
11
REVENUE 9M 2017 REVENUE BY GEOGRAPHY
EBITDA VS EBITDA MARGIN
SEA: Malaysia & Thailand
0
50
100
150
200
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
Revenue (S$ Million)
-6.9%
Singapore 44%
China31%
Hong Kong 14%
SEA*5%
Taiwan6%
16.8%16.1%
13.3%
15.1% 14.7%
10.3%
7.7%6.4%
15.7%
0.0%
5.0%
10.0%
15.0%
20.0%
0
5
10
15
20
25
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
EBITDA (S$ Million) EBITDA Margin (%)
FOOD ATRIUM DIVISION
12
NUMBER OF FOOD ATRIUM OUTLETS 9M 2017 OUTLET DISTRIBUTION BY GEOGRAPHY
SEA: Malaysia & Thailand
China27
Singapore 15
Hong Kong 4
Taiwan 3
SEA*5
19
57
54
0
20
40
60
80
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M17
Number of outlets
RESTAURANT DIVISION
13
REVENUE 9M 2017 REVENUE BY GEOGRAPHY
EBITDA VS EBITDA MARGIN
Singapore 93%
Thailand7%
0
25
50
75
100
125
150
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
Revenue (S$ Million)
+2.5%
9.5%11.3%
14.6% 15.4%16.5%
25.3%
21.4%20.4%
21.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
5
10
15
20
25
30
35
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
EBITDA (S$ Million) EBITDA Margin (%)
RESTAURANT DIVISION
14
NUMBER OF RESTAURANT OUTLETS 9M 2017 OUTLET DISTRIBUTION BY GEOGRAPHY
Singapore 21
Thailand3
5
24 24
0
10
20
30
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M17
Number of outlets
0
2
4
6
8
10
12
14
16
18
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
4ORTH DIVISION
15
REVENUE
EBITDA VS EBITDA MARGIN
-14.0%
-6.8%-5.3%
-6.8%
-13.4%
-4.3%
-0.9%
2.5%
4.5%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M16 9M17
EBITDA (S$ Million) EBITDA Margin (%)
NUMBER OF 4ORTH OUTLETS
-4.1%
8
6
5
0
2
4
6
8
10
12
14
FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M17
CONTACT US
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Mr. Chan Ying JianGroup Chief Financial Officer
Mr. Benjamin TayInvestor Relations
Tel - (65) 6285 6116Email - [email protected]