Wowprime Corporation

(2727.tw)

Presentation

Steven Liu

Executive Director - Finance

1

Agenda

Company background …………………………………………...2

Brand introduction and market overview …………………..….12

Business philosophy and performance ………………………..24

Competitive advantages and corporate responsibility ……… .34

2

Company Background

Mission

Our strong management team provide a

top quality dining experience and take

corporate social responsibility seriously.

Vision

To be the best global restaurant chain

5

Taiwan

Year founded: 1993

Capital：NT$679.50m

1.Company background

220 stores in Taiwan

(Nov 30, 2012)

Type：Direct

49 stores in China

(Nov 30, 2012)

Type: Direct

Company

profile

China

Year founded: 2003

Capital ：US$22.4m

2 stores in Thailand

(3Q11 opened)

Type: Franchise

2. Target for 2013

Taiwan

China (Mid and high-end)

China (Mid-end)

Numbers Of Brand

12 4 1

2011

1. Won 6 prizes in Hong Kong international Culinary Classic Competition. (3 silver, and 3 bronze)

2. Won 9 prizes in 13th Penang Chefs Challenge . (1 gold, 5 silver, 3 bronze, and 1 honorable

mention)

3. Voted as the 3rd- ranked in Happy Company survey.

4. Wang Steak was championship of “Golden Service Award” in western chain catering, followed by

Tasty (runner-up), and Chamonix (3rd place). Giguo was the championship in Chinese style chain

catering—Giguo <<CommonWealth Magazine>

5. Wang Steak was awarded best customer service award, followed by Yuanshao Roast (runner-up),

Pintian (3rd), Giguo (4th), and Tokiya (5th).

3. Achievements

1.Wang Steak was voted as the platinum winner in Reader’s Digest trusted brands 2009.

2.Wowprime was voted as the 21st-ranked best company to work for by readers of the Cheers

Magazine.

2009

2010 1. Chamonix was rated as high quality restaurants in 2010 Nothern Taiwan’s top restaurants

survey.

2010

1. Wowprime was voted as the 1st-ranked best company to work for by readers of the Cheers

Magazine.

2. Pintian was awarded best customer service award, followed by Wang Steak (runner-up), and

Chamonix (3rd).

3. Voted as the 2nd-ranked in Happy Company survey

4. Giguo was the 5th-ranked of “Golden Service Award” in chain catering <<CommonWealth

Magazine>

5. Won 18 prizes in Thailand IFHS’12 Culinary Competition. (7 gold, 8 silver, and 3 bronze)

6. Won 10 prizes in 14th FHC China Culinary Art Competition. (4 gold, 5 silver, and 1 bronze)

3. Achievements(cont’d)

9

En

gin

ee

ring

Dep

t.

Hu

ma

n

Reso

urc

e

Mgm

t. De

pt.

Info

rma

tion

Dep

t.

Pu

rcha

sin

g

Dep

t.

Fin

an

ce

Dep

t.

Auditors

Tra

inin

g

Dep

t.

Bra

nd

ing

Dep

t.

Corp

ora

te

rela

tion

Dep

t.

Board

Wan

g S

tea

k

President

Ta

sty

Ste

ak

To

kiy

a

Yu

an

sh

ao

Roa

st

Gig

uo

Cha

mo

nix

Ikki

Pin

tian

Headquarter

12 Sa

bu

Audit

Committee

Shareholder

Meeting

DPP

Su

food

Vice President

General Manager

Fam

on

n c

offe

e

4. Organization structure

Remuneration

committee

10

5. Current board members and supervisors

Founding shareholders

Brand founders

10+yr working

experiences

Excellent managers

Well-known expertise

Directors&

Supervisor

s

11

6. Management team

Division managers Headquarter

managers

Senior executive managers from

well established companies

Master or above degree

Solid experiences in day to day

hands on operation

Multi-brand operation experience

Innovation

+10 years industry experiences

Has led stores with outstanding

operating results

Senior line manager from well

established companies

+10 years industry experiences

12

Brands Introduction and Market Overview

13

Brands Introduction

14

Single brand

Poly-

Brand

Transnational Brand

•ASEAN China

Large Brand

1.Strategic brand development

15

Brand

Time

opened 1993 2001 2002 2004 2004 2005

Cuisine

type

Western

style

cuisine

Western

style

cuisine

Japanese

Cuisine

Flavor meat,

Teppanyaki

Hokkaido

kelp pot

New style

Japanese

Cuisine

Store

number 14 37 31 19 27 11

Brand

Total stores Time

opened

2005 2007 2009 2010 2011

Cuisine

type

French

Teppanyaki

Japanese

chops、curry

Sabu pot,

Stone pot

Vegetarian

food

Coffee &

Desserts

Store

number 13 21 29 12 6 220

Nov 30,2012 2. Store numbers in Taiwan

16

Tasty steak 1

Tasty steak 1

Tokiya 1

Pintian 1

12 Sabu 1

Total 4

Tasty steak 1

Giguo 1

Total 2

Wang Steak 8

Tasty 19

Tokiya 17

Yuanshao 12

Giguo 13

Ikki 5

Chamonxi 8

Pintian 6

12 Sabu 9

Sufood 8

Famonn 6

Total 111

Wang Steak 3

Tasty 7

Tokiya 7

Yuanshao 3

Giguo 7

Ikki 3

Chamonxi 2

Pintian 8

12 Sabu 10

Sufood 2

Total 52

Wang Steak 3

Tasty steak 8

Tokiya 6

yuanshao 4

Giguo 6

Ikki 3

Chaminxi 3

Pintian 6

12 Sabu 9

Sufood 2

Total 50

3. Store map in Taiwan Taipei /

Taoyuan /

Hsinchu

Miaoli /

Taichung /

Changhwa /

Yunlin / Nantou

Yilan

Hualian /

Taidong

Jiayi / Tainan /

Kaoshiung

Pingdong

17

4. Brands positioning in Taiwan

Mid to high-end

Customers

High-end

Customers

Mid-end

Customers

North:

Wang Steak 7 stores

Tasty Steak 5 stores

East:

Wang Steak 13 stores

Tasty Steak 10 stores

South:

Wang Steak 10 stores

Tasty Steak 2 stores

5. China stores map

West:

Wang Steak 2 stores

Tasty Steak - stores

19

Market Overview

20

Chart 1: Restaurant sales in Taiwan

Source: Directorate General of Budget, Accounting, and Statistics

Sales(NT$ mn)

YoY growth

321,781

344,752

372,139

4.58 4.37

1.82

0.04

7.14

7.94

-15

-10

-5

0

5

10

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2001年 2002年 2003年 2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年

營業額

年增率(%)

21

Chart 2: Outside-dining as a % of total F&B expenditures

Source: Directorate General of Budget, Accounting, and Statistics

17.6

24.6

29.6 29.7532 32.8 32.9 33.3

34.8 35.8 36.8

0

5

10

15

20

25

30

35

40

1991 1996 2002 2003 2004 2005 2006 2007 2008 2009 2010

22

Industry Analysis

23

Unit：NT$ mn

Year

Sales/ Stores

2009 2010 2011 2012.3Q YoY

Growth

Sales

Wowprime 4,238 5,753 7,698 7,250 33.81%

Restaurant

industry 271,718 291,645 316,720 248,277 8.60%

Market

share 1.56% 1.97% 2.43% 2.92%

Source：Wowprime audited financial reports, Taiwan Chain Store Almanac, MOEA

Market share

24

Business Philosophy and Performance

25

Business philosophy (S.T.I.S.)

SINCERITY

TEAMWORK

INNOVATION

SATISFACTION

1.Business philosophy

26

2. Key values

◎ Employee is the most critical assets for business expansion. The more

talents a corporate has, the larger the business can expand.

◎ Corporate culture is the foundation for the continuity of business

operation. The more solid the corporate culture is, the longer the

business can sustain.

Employees ＆Corporate culture

27

2. Key values (Cont’d)

Corporate culture

1. Treat employees as one family

2. Wowprime Constitution

3. Special terms

- Adhere to high ethical standards

- Conservative financial policy

- Advocates thrifty and healthy life

- Self-discipline of managers

- Encourage participation in public

welfare

Talents training

1. 206 credits

2. Managers training and talents pool

3. Executive managers training &

talents pool

4. Harvard case

5. Mentor of Wowprime – Wowprime

has held 448 guest speaker lectures

by November 30, 2012

6. Social activity credit

7. Seed plan: Wowprime lectures for

students still at school

28

2. Key values (Cont’d)

Decision making ＆Profit control

◎ Winning strategy: Position precisely in defined market

segmentation, Pioneer in differentiation, Penetrate in focused market

◎ Operating strategy: “1-5-1 principle”. Increase sales amount to 5

times of capital and make earnings equivalent to 1 time of capital

within the first year of operation

29

2. Key values (Cont’d)

Differentiation

Penetration

Position

1. Excellent service

2. Product differentiation

3. R& D on new dishes

4. Participate in int’l cooking contests

5. Multiple brands strategy

1. Transparent financial info disclosure

2. Focus on core business

3. Held contests among brands

4. Solid employee training

5. Participate in int’l cooking contests

1. Large market size

2. Sustainable and popular products

3. Potential for further market growth

30

3. Performance

Chart 3: Wowprime numbers of store

170

220

45 49

215

269

128

937267

56

18 21 24 27 39

167

12096

8874

0

50

100

150

200

250

300

2006 (擬制)

2007 (擬制)

2008

2009

2010

2011

2012.11

台灣店數

大陸店數

集團店數

Taiwan store #

China store #

Total store #

31

3. Performance (Cont’d)

Chart 4: Wowprime sales amount

7,6987,250

2,018 1,940

9,190

5,753

4,2383,767

2,8853,487

1,3641,112966924601

9,716

7,117

5,3504,733

4,4113,486

0

2,000

4,000

6,000

8,000

10,000

12,000

2006

(擬制)

2007

(擬制)

2008 2009 2010 2011 2012.3Q

台灣營業額

大陸營業額

集團營業額

Taiwan sales

China sales

Total sales

32

3. Performance (Cont’d)

262,299 266,021

634,007

772,987 826,855

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2008 2009 2010 2011 2012.3Q

仟元

獲利

Chart 5: Wowprime net profits (Taiwan)

NT$ thousand

Net profit

33

3. Performance (Cont’d)

4. 58 4. 65

11. 08

12. 71 12. 42

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2008 2009 2010 2011 2012.3Q

元

EPS

Chart 6: Wowprime EPS (Taiwan)

1-3Q2011

NT$

34

Competitive Advantages and Corporate

Responsibility

35

High-quality

service

Best food

materials

Brand

diversificati

on &

continuous

R&D

Best food

safety

managemen

t

Scale

economy

benefits

Competitive

Advantages

Competitive advantages

36

Corporate responsibility

No bribery, no

tax dodge

Maintain

neutral for

politics

No social

events for

business

related affairs

Related party

transaction

restricted

Corporate

Governance

37

Corporate responsibility (Cont’d)

Safeguard

fund for

colleagues

Emergency

fund for

colleagues

Scholarship

for

colleagues’

children

Corporate promises

38

Corporate responsibility (Cont’d)

Every brand

participates in

social welfare

Wowprime

dishes-holding

competition

Wowprime

Daishui

Foundation

Donation of

income from

public business

affairs

Social welfare participation

Set up

scholarship

Experience

sharing

among

peers

39

Corporate responsibility (Cont’d)

Environmental

Protection

No use of

disposable

chopsticks

Improve logistic

efficiency

No use of

endangered

species as

materials

No superstition

40

Thank You