2Q2020 Presentation Results

August 2020

MK Restaurant Group PCL (“M”)

Company

Presentation

1

Agenda

Company Overview

2Q2020 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

Laem Charoen Seafood Co., Ltd.

Seafood Restaurants

Registered Capital:

185 MB

65%

3

Restaurant Outlets in Thailand

Type of Business Restaurants Brand No. of Outlets

Suki RestaurantMK 451

MK Gold 6

MK Live 6

Japanese RestaurantYayoi 199

Miyazaki 23

Hakata 6

Thai RestaurantNa Siam 1

Le Siam 3

OthersLe Petit 3

Bizzy Box 8

Harvest 1

Remark: Data as of Jun 2020

4

Leader in chained restaurant industry with nationwide branches coverage

Dominant Position in Chained Restaurant Industry

99 97 106 116 116

59 6878

82 83

2016 2017 2018 2019 1H20

Bangkok & Metropolitan area Provincial area

199 200 202 213 213

225 235 246 250 250

2016 2017 2018 2019 1H20

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 14

East

MK / Gold / Live 50

Yayoi 22

BKK & Greater BKK

MK / Gold / Live 213

Yayoi 116

Central

MK / Gold / Live 44

Yayoi 16

Branches

Japan

MK 33

Japan

an

MK 9

Vietnam

an

Yayoi 9

Singapore

54%

46%

424448

42%

58%

158

184

an

MK 2 / Miyazaki 1

Lao PDR

435

165

463

198

463

199

5

Timeline for COVID-19 Lockdown

22 Mar’20

Announcement of the

Bangkok Metropolitan

Administration

Only delivery and

takeaways are allowed

3 May’20 Relax lockdown phase IOnly delivery and

takeaways are allowed

17 May’20 Relax lockdown phase IIAllow dine-in with

strict measures

1 Jun’20 Relax lockdown phase IIIAllow dine-in with

social distancing

15 Jun’20 Relax lockdown phase IVAllow dine-in with

social distancing

6

2% 2%

-19%

-56%

2%

-38%

1Q19 2Q19 1Q20 2Q20 1H19 1H20

Same-Store Sales Growth

In 2Q2020, same-store sales growth for MK and Yayoi dropped significantly compared to the previous year mainly

due to the prohibition of dine-in in order to protect the spreading of Corona virus disease.

0%

-3%

-21%

-51%

-1%

-37%

1Q19 2Q19 1Q20 2Q20 1H19 1H20

7

Agenda

Company Overview

2Q2020 Key Financial Highlights

Business Update

8

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

8,969

6,073

1,856 2,100 2,425 2,574 2,604 1,398

93

2015 2016 2017 2018 2019 1H19 1H20

Total Revenues Net Profit

Total Revenues and Net Profit

%YoY Growth 2015 2016 2017 2018 2019 1H2020

Total Revenues 0% 4% 6% 5% 4% -32%

Net Profit -9% 13% 15% 6% 1% -93%

Million Baht

9

Gross Profit

Revenue ContributionRevenues from Sales and Services

Revenues Growth

In 2Q2020, revenues from sales & services dropped 52% from the previous year due primarily to the outbreak of

COVID-19.

THB Million

THB Million

-32% YoY

-52% YoY

MK, 73%

Yayoi, 19%

LCS, 6%

Others, 2%

4,352 4,470 3,795

2,163

8,822

5,958

1Q19 2Q19 1Q20 2Q20 1H19 1H20

2,979 3,085 2,525 1,333

6,063

3,859

68.4% 69.0%66.5%

61.7%

68.7%

64.8%

56%

58%

60%

62%

64%

66%

68%

70%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1Q19 2Q19 1Q20 2Q20 1H19 1H20

-36% YoY

-57% YoY

10

SG&A

In 2Q2020, %SG&A to total revenues increased from 51% to 75% compared to the prior year primarily due to the

decrease of Revenues from Sales and Services while some expenses such as rent, labor cost and depreciation did

not drop as much as Revenues from Sales and Services.

SG&A Expenses

1H2020 SG&A Expenses Breakdown

2,218 2,344 2,188 1,657

4,561 3,845

50% 51%56%

75%

51%

63%

0%

10%

20%

30%

40%

50%

60%

70%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1Q19 2Q19 1Q20 2Q20 1H19 1H20

THB Million

-29% YoY

-16% YoYPersonel,

49%

Depreciation, 22%

Rental, 7%

Utilities, 6%

Others, 16%

11

Net Profit

THB Million

EBITDA

In 2Q2020, Both EBITDA & Net Profit dropped 76% and 136% YoY respectively compared to the previous year.

THB Million

EBITDA & Net Profit

-42% YoY

-93% YoY

1,062 1,047 974

256

2,109

1,229

24.0% 23.0% 25.1%

11.6%

23.5%20.2%

0%

5%

10%

15%

20%

25%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

1Q19 2Q19 1Q20 2Q20 1H19 1H20

-76% YoY

710 689 340

(247)

1,398

93

16.1% 15.1%

8.8%

-11.3%

15.6%

1.5%

-12%

-7%

-2%

3%

8%

13%

(300)

200

700

1,200

1,700

1Q19 2Q19 1Q20 2Q20 1H19 1H20

-136% YoY

12

Current RatioD/E Ratio

Financial Ratio

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

ROA (%) ROE (%)

3,315 6,266

14,306 13,199

0.23

0.47

-

0.10

0.20

0.30

0.40

0.50

-

5,000

10,000

15,000

20,000

31-Dec-19 30-Jun-20

Total Liabilities Shareholders's Equity D/E

3.5

2.8

31-Dec-19 30-Jun-20

14.8%

7.1%

31-Dec-19 30-Jun-20

18.3%

9.4%

31-Dec-19 30-Jun-20

13

Agenda

Company Overview

2Q2020 Key Financial Highlights

Business Update

14

Revise Y2020 plan to slow down the new outlet expansion due to the uncertainty from the COVID-19 outbreak.

Outlet Expansion Plan

No. of New

outlets opened

in 1H2020

Revised Plan

No. of New

outlets in 2020

2

1

3

MK Yayoi Others

3

1

4

MK Yayoi Others

15