3Q2019 Presentation Results

November 2019

MK Restaurant Group PCL (“M”)

Company

Presentation

1

Agenda

Company Overview

3Q2019 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:

1,300 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:

1 MB

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand No. of Outlets

Suki RestaurantMK 444

MK Gold 7

MK Live 5

Japanese RestaurantYayoi 192

Miyazaki 22

Hakata 5

Thai RestaurantNa Siam 1

Le Siam 3

OthersLe Petit 3

Bizzy Box 6

Harvest 1

Remark: Data as of Sep 2019

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

89 99 97 106 112

5159 68

78 80

2015 2016 2017 2018 3Q19

Bangkok & Metropolitan area Provincial area

197 199 200 202 207

222 225 235 246 249

2015 2016 2017 2018 3Q19

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 62

Yayoi 18

South

MK / Gold / Live 51

Yayoi 13

East

MK / Gold / Live 49

Yayoi 20

BKK & Greater BKK

MK / Gold / Live 207

Yayoi 112

Central

MK / Gold / Live 44

Yayoi 16

Branches

Japan

MK 35

Japan

an

MK 9

Vietnam

an

Yayoi 8

Singapore

55%

45%

419 424 448

42%

58%

158

184

140

an

MK 2 / Miyazaki 1

Lao PDR

435

165

456

192

5

3%

0% 0%

2% 2%

-4%

1%

0%

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

Same-Store Sales Growth

In 3Q2019, same-store sales growth for MK and Yayoi were -4% and -9% respectively compared to the previous year.

3%

1%

-4%

0%

-3%

-9%

2%

-4%

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

6

Agenda

Company Overview

3Q2019 Key Financial Highlights

Business Update

7

Total Revenues and Net Profit

%YoY Growth 2014 2015 2016 2017 2018 9M19

Total Revenues 6% 0% 4% 6% 5% 3%

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

Million Baht

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

12,848 13,278

2,042 1,856 2,100 2,425 2,574 1,967 1,948

2014 2015 2016 2017 2018 9M18 9M19

Total Revenues Net Profit

8

Gross Profit

Revenue ContributionRevenues from Sales and Services

Revenues Growth

In 3Q2019, revenues from sales & services dropped 2% from the previous year due primarily to the economic

slowdown

THB Million

THB Million

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

12,475 12,924

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

-2% YoY

+4% YoY

MK, 79%

Yayoi, 19%

Others, 2%

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

8,542 8,867

68.5% 68.5% 68.4% 68.4% 69.0% 68.3% 68.5% 68.6%

0%

10%

20%

30%

40%

50%

60%

70%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

-2% YoY

+4% YoY

9

SG&A

In 3Q2019, SG&A increased 5% YoY compared to the prior year primarily due to the increase of labor cost and

rent.

SG&A Expenses

9M2019 SG&A Expenses Breakdown

THB Million

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

6,516 6,831

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

0%

10%

20%

30%

40%

50%

(1,000)

1,000

3,000

5,000

7,000

9,000

11,000

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

+5% YoY

+5% YoY

Personel, 53%

Rental, 20%

Utilities, 7%

Depreciation, 7%

Others, 14%

10

Net Profit

THB Million

EBITDA

In 3Q2019, EBITDA & Net Profit dropped 16% and 19% YoY respectively compared to the previous year

THB Million

EBITDA & Net Profit

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

3,017 2,970

23.6% 23.1% 23.7% 23.8% 22.8%20.3%

23.5% 22.4%

0%

5%

10%

15%

20%

25%

-

1,000

2,000

3,000

4,000

5,000

6,000

1Q18 2Q18 3Q18 1Q19 2Q19 3Q19 9M18 9M19

-16% YoY

-2% YoY

632 659 676 710 689 549

1,967 1,948

15.2% 15.1% 15.7% 15.9% 15.0%13.0%

15.3% 14.7%

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 1Q19 2Q19 3Q19 9M18 9M19

-19% YoY

-1% 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 (%)

15.4% 15.9%

31-Dec-18 30-Sep-19

18.4% 18.7%

31-Dec-18 30-Sep-19

4.2 5.1

31-Dec-18 30-Sep-19

2,998 2,454

14,176 13,728

0.21 0.18

-

0.05

0.10

0.15

0.20

-

5,000

10,000

15,000

20,000

31-Dec-18 30-Sep-19

Total Liabilities Shareholders's Equity D/E

12

Agenda

Company Overview

3Q2019 Key Financial Highlights

Business Update

13

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

nationwide

Outlet Expansion Plan

No. of New

outlets opened

in 9M2019

Plan

No. of New

outlets in 2019

1110

4

MK Yayoi Others

1715

6

MK Yayoi Others

14

Marketing Campaign in 3Q2019 – MK

15

Marketing Campaign in 3Q2019 – MK

16

Marketing Campaign in 3Q2019 – Yayoi

17

Marketing Campaign in 3Q2019 – Yayoi

18