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QUARTERLY UPDATE 1Q2019
2
Disclaimer
This presentation contains certain forward looking statements. Such forward looking statements (the words "believe“, "anticipate“, "estimate“, "target“, or "hope",
or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations) are not guarantees of future performances or events and involve risks
and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors and circumstances.
The views, analyses and opinions expressed herein contain some information derived from publicly available sources and third party information providers.
Mudman Public Company Limited and its affiliates (“Mudman”) undertakes no representation or warranty is made as to the accuracy, completeness, or reliability
of such information and no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or
otherwise.
Mudman makes no representation whatsoever about the opinion or statements of any analyst or other third party. Mudman does not monitor or control the content
of third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement.
Nothing in this presentation should be construed as either an offer to sell, a solicitation of an offer to buy or sell shares or any type of securities in any jurisdiction.
This presentation is not intended to be any type of investment advice and must not be relied upon as such. You must always seek the relevant professional advice
before otherwise making any such financial, legal or commercial decisions.
1) What’s New in 1Q/19 to Date
2) Group Performance
Appendix:
Company Profile
TABLE OF CONTENTS
What’s New in 1Q/19 to Date
5
Owned Brands
DOMESTIC (19 stores*):
• New store : Nang Linchee / Icon Siam
• Upcoming store : Negotiating on potential sites in Bangkok and Major provinces
INTERNATIONAL (19 stores**):
• New store : Hong Kong – Element ….. Franchised store
Hong Kong - Tseung Kwan O (Popcorn) ….. Franchised store
• Upcoming store : Negotiating with potential partners in major countries / cities
Key Highlights
Promotions / Events:
Special Menu (Northern & Southern Menus) 15 Feb 2019 – 15 May 2019
What’s New in 1Q/19 to Date
Note: : * New store includes not only new outlet, but also new location of closed store (relocation store)
** 18 franchised stores & 1 owned-flagship store
Customized Highball Drink Workshop
6
Owned Brands
• Total store: 11 stores (Fashion Lifestyle) & 1 store (Cafe Concept)
• New Business Concept: To leverage creativity & twist of Greyhound brands to create unique concepts
& products
Key Highlights
Promotions / Events:
• Professional cafeteria business & IPD food service
• Current operation at Ramkamheng Hospital since June 2015
What’s New in 1Q/19 to Date (cont’d)
Wall Street Collage Collection Smileyhound Collection Greyhound Original Flagship Store
Central Lardprao 2 Fl.
7
What’s New in 1Q/19 to Date (cont’d)
Owned Brands Key Highlights
• Total store: 1 stores
• A gastronomical restaurant in Paris (2-Michellin stars) with more than 200 years
• New Business Concept: MM and chef Guy Martin are studying on potential locations and developing
new concepts
8
Master Franchises Key Highlights
• Total store: 297 stores (1Q/19)*
• New store**: Pantip Chiang Mai (Nov-18)
Suan Nongnooch Pattaya (Dec-18)
Lotus Borabue Maha Sarakham (Dec-18)
Metro Mall Chatuchak (Jan-19)
• Upcoming store: Negotiating on potential sites in Bangkok and Major provinces
Promotions / Events:
Special Promotions
(Available @ Every Stores)
Note: * Exclude catering service
** New store includes not only new outlet, but also new location of closed store (relocation store)
What’s New in 1Q/19 to Date (cont’d)
DD Card
(Member Card)
9
Master Franchises Key Highlights
• Total store: 78 stores (1Q/19)*
• New store : Metro Mall Chatuchak (Jan-19)
Bumrungrad Hospital – New Building (Mar-19)
• Upcoming store: Negotiating on potential sites in Bangkok and Major provinces
Promotions / Events:
Note: * Exclude catering service
** New store includes not only new outlet, but also new location of closed store (relocation store)
BON to GO
Salad Box
(Available @ Metro Mall MRT Chatujak)
Special Menu : Summer Blast
(Available @ every stores)
What’s New in 1Q/19 to Date (cont’d)
10
Master Franchises Key Highlights
• Total store: 32 stores (1Q/19)*/**
• Upcoming store: Negotiating on potential sites in Bangkok and Major provinces
Promotions / Events:
Note: * Exclude catering service
** Non-performing stores had been closed
New Flavor of the month
(Only 69 Baht)
Special Promotion
(Available @ every stores)
Special Menu
Little Mermaid Sundae & Little Mermaid Blast
(Available @ every stores)
What’s New in 1Q/19 to Date (cont’d)
Group Performance
Mudman Group
12
(8)
(0)
13
(17)
(9)
(20)
(15)
(10)
(5)
-
5
10
15
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
61 61
77
54 56
0
10
20
30
40
50
60
70
80
90
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
806 814
795
816
759
730
740
750
760
770
780
790
800
810
820
830
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
95%
5%
Key Takeaways
EBITDA
Net Profit
Mudman Group - Key Financial Performance
Revenues
THB mm
• 1Q/19 Revenues reported THB 759 mm or YoY
growth of -5.8%, mainly due economic slowdown,
lower consumer spending, and intense industry
competition
• EBITDA (Normal Operation) in 1Q/19 reported
THB 56 mm (7.4% margin) which is slightly lower
than 1Q/18 (7.6% margin)
• Net margin in 1Q/19 recorded (1.2%)
• Net margin (Normal Operation) in 4Q/18 recorded
THB (1.0) mm or NPM of (0.2%)
• Going forward, MM is aiming not only to boost
revenues (i.e. menu restructuring), but also
create competitive advantage on costs &
expenses (i.e. lowering SG&A)
Food & Beverage
Fashion Lifestyle
Revenues
Breakdown
(1Q/2019)
Stores * 432 441 446 449 441
EBITDA margin 7.6% 7.5% 9.6% 6.6% 7.4%
%SG&A/Revenues 59.6% 58.4% 58.8% 60.6%** 60.7%
- 5.8% YoY
- 7.0% QoQ
Net margin (1.0%) (0.0%) 1.6% (2.1%) (1.2%)
Note: * Excluded international stores
** Excluded extra expenses of THB 16 mm in 4Q/18
13
2.2 2.2 2.0
2.3 2.4
-0.2
0.8
1.8
2.8
3.8
4.8
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
1,399 1,465 1,575 1,513 1,465
2,837 2,791 2,804 2,788 2,777
0.5 0.5 0.6 0.5 0.5
-7.0
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
-
1.0
-500
500
1,500
2,500
3,500
4,500
5,500
6,500
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Liabilities Equities D/E
(2.4%)
3.5%
(1.6%)
(9.1%) (9.8%)
9.3%
16.4%
7.7%5.3%
(4.6%)
-12%
-8%
-4%
0%
4%
8%
12%
16%
20%
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
SSSG - F&B TSSG - F&B
SSSG & TSSG
Mudman Group - Key Financial Performance (cont’d)
• 1Q/19 SSSG* of F&B decreased by 9.8% YoY, attributable from lower
consumer spending and intense competitions
• 1Q/18 TSSG of F&B reported (4.6%) YoY, primarily from high
competitions
• Debt-to-Equity was 0.5x as of Mar-19
• Net debt / LTM EBITDA in 1Q/19 reported 2.4x with range of 2.0x –
2.3x in 2018
Note: * SSSG is calculated based on operating stores in the same comparing period (i.e. exclude stores operating only two months in comparing quarter) ** Last-twelve-month EBITDA
Net Debt / LTM EBITDA**
Financial Position
4,236 4,256 4,379 4,301 4,242
14
1Q/18 2Q/18 3Q/18 4Q/18 1Q/19
Net sales 768.5 782.9 757.5 770.9 726.5
COGS (321.8) (330.5) (305.3) (312.5) (296.1)
Gross profit 446.7 452.4 452.2 458.4 430.4
GPM 58.1% 57.8% 59.7% 59.5% 59.2%
Selling exp (389.0) (387.6) (417.2) (410.8) (382.0)
Administrative exp (91.0) (87.4) (50.0) (84.0) (79.0)
Other inc / (exp) 37.3 30.7 37.4 45.4 33.0
Extra items - - - (16.0) -
EBIT 4.1 8.0 22.5 (6.9) 2.3
Interest exp (7.5) (7.2) (9.4) (9.4) (9.3)
EBT (3.4) 0.8 13.1 (16.3) (7.0)
Tax (4.4) (0.8) 0.0 (1.0) (2.0)
Net profit (7.8) (0.0) 13.1 (17.4) (9.0)
NPM (1.0%) (0.0%) 1.6% (2.1%) (1.2%)
PPA 11.9 12.0 12.0 12.0 12.2
Net profit - excl PPA 4.1 11.9 25.1 (5.4) 3.2
NPM - excl PPA 0.5% 1.5% 3.2% (0.7%) 0.4%
EBITDA 61.3 60.8 76.5 53.9 55.8
EBITDA margin 7.6% 7.5% 9.6% 6.6% 7.4%
Mudman Group - Key Financial Performance (cont’d)
• Purchase Price allocation (PPA) is an
amortization of identifiable intangible assets
(foreseeable useful life) at fair value after the
acquisition
• For example, trademark, franchise agreement,
contractual agreement and order backlog
• There are three brands associating with PPA:
- Dunkin’ Donuts
- Au Bon Pain
- Greyhound Cafe
• PPA is an accounting impact only on
“Consolidated” financial statement
• Without PPA impact, net profit would turn
to positive with NPM of 1% - 3%
Key Takeaways
PPA Implication to Our Brands
Note: (1) The different classification of cost structure is assumed for comparison perspective (2) Disregard tax implication in calculating net profit - excl PPA
15
Impact of Purchase Price Allocation (PPA) on Income Statement
• PPA will have an accounting impact on future cost and profit recognition on Mudman’s performance on the consolidated financial
statements
• Mudman will have the amortization on PPA of ~THB 44 - 45 mm per year
• However, it will not affect ability to pay dividend as those expenses does not affect separated financial statement
THB mm 2018 2019 2020 2021 2022
Total 45 44 44 44 44
25 25 25 25 25
7 7 7 7 7
13 12 12 12 12
2025
2027
2030
Note : GHF has impaired most of goodwill and intangible assets in 3Q2016; thus, there will be minimal possibility of PPA amortization for GHF in the future
Company Profile - Appendix
17
Overview
To be great, enduring company, with appealing food & lifestyle brands,
proving a healthy and quality work environment
Successful International Food & Lifestyle Brands
Trend Setters Developing & Caring for Our People
18
Key Milestones
2007 - 2011 2006 2015 2014 2013 2012
Sub Sri Thai PCL acquired
100% stakes in Mudman
Acquisition of
Thailand operation
of Baskin Robbins
Khon Kaen Sugar Industry
PCL subscript capital
increase (9.3% stake)
Capital increase
to THB 843 mm
Capital increase
to THB 525 mm Company registration
Sub Sri Thai PCL (SST)
A documentary/goods storage service provider with attractive cash flow
streams enabling SST to continuously raise fund via property funds/REIT
to fuel growth with market capitalization of ~THB 2,000 mm
Khon Kaen Sugar Industry PCL (KSL)
One of the largest Thailand’s sugar producers with vision to diversify into
many business ventures with market capitalization of ~THB 13,000 mm
Capital increase
to THB 300 mm
Create catering services
at Ramkamheng hospital
(cafeteria and IPD)
Open in Mar 2015
Acquisition of
Greyhound Original
& Cafe
2016
Public
Conversion
2017
Capital increase
to THB 1,055 mm
Acquisition of
Le Grand Vefour
2018
Bond issuance of
THB 497 mm
Master franchisee of
Dunkin Donuts (1981)
Au Bon Pain (1996)
19
799 857987 1,036
1,150
1,421
1,627
1,855
2,235
2,8892,992 2,970
3,233
170 188 207 224 240 258 301 349 370 389 441 433 447
98 92
104 109
135
192
224 232
216
253 255
238 253
-50
-
50
100
150
200
250
300
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total Revenues (THB mm) No. of Stores EBITDA (THB mm)
Solid Operational Platform & Strong Growth Capabilities
Acquisition of
Thailand operation
of Baskin Robbins
ORGANIC INORGANIC
Global Brand Acquisition
Selective International
Franchising
Operational Excellence
Consolidation of Systems
and Infrastructures
Intensive International
Expansion
Create catering services
at Ramkamheng hospital
(cafeteria and IPD)
Note: (1) Excluded international stores & some types of local stores (catering / booth / convention stores)
(2) Included Greyhound in 2014 onward
Acquisition of
Greyhound
Original & Cafe
Acquisition of
Le Grand Vefour
Master franchisee of
Dunkin Donuts (1981)
Au Bon Pain (1996)
20
Nadim Xavier Salhani
CEO
• A proven track record of successful turnaround
• Over 15 years experience in Food & Beverage retail business
with leading international brands including Starbucks, Auntie
Anne’s Pretzel, Au Bon Pain and Dunkin Donuts
• Joined Mudman Group in 2003
Hansa Sermsri
CFO
• Over 20 years in accounting and finance
• Joined Mudman Group in 2006
• Previously with Excel Distribution, Motorola, Taylor Nelson
Sofres
Wimonrat Asawachavisit
VP - Supply Chain
• Over 19 years solid experience in supply chain management
• Joined Mudman Group in 1996
• Previously with Asia Food & Machinery
Lapaporn Tiasakul
Managing Director
• Au Bon Pain
• Over 18 years in F&B retail business
• Joined Mudman Group in 2003
• Previously with Starbucks, Auntie Anne’s Pretzel, The
Brooker Group and IMRS
Nobklao Trakoolpan
Managing Director
• Dunkin’ Donuts
• Experiences in the management of hospitality industry for
over 18 years
• Strong experiences in Food & Beverage, both kitchen and
dining area
• Experience for operating F&B, Culinary, Room Division,
Engineering and Security
• Previously with Holiday Inn Express Bangkok Siam
64.3%
7.5%
28.3%Others
Mudman at a Glance
Shareholding Structure
Management Team Business Overview
Note: As of Mar 2019
1 2 4 5 3
1
2
4
5
3
Food & Beverage
Ow
ned
bra
nd
M
aste
r F
ran
ch
isee
Premier Asian Player
Lifestyle
21
Mudman at a Glance (cont’d)
Golden Donut (Thailand) Co.,Ltd.
ABP Café (Thailand)
Co.,Ltd. Greyhound Co.,Ltd.
Golden Scoop
Co.,Ltd.
100% 100% 100% 100% 100%
Greyhound Café
Co.,Ltd.
GHC Café (UK) Co.,Ltd.
100%
100%
SLVH SAS*
Mudman International Co.,Ltd.
100%
Note : * Societe Langonnaise des Vins et Hotelleries SAS (SLVH)
22
Mudman at a Glance (cont’d)
Brands Key Concepts Outlets
(1Q/19)
Ow
ned
Bra
nd
s
Fashion café in a stylish casual dining experience with food concept ….
“Basic with a Creative Twist”
Thailand (19)
Hong Kong (10)
China (4)
Malaysia (2)
Singapore (1)
Indonesia (1)
London (1)
A gastronomical restaurant in Paris ….. Jewel of the 18th century "art
décoratif" Le Grand Véfour has been the finest gourmet rendez-vous of the
Parisian political, artistic and literary society for more than 200 years
1
Catering services business with current operation at Ramkamheng hospital
(cafeteria and IPD) 1
Liftstyle brand with “Stylish + Sophisticate + Creative + Contemporary”
concepts …. Simple, but Never Boring
Lifestyle Fashion (11)
Coffee Café (1)
Ma
ste
r F
ran
chis
ee
Premium imported ice-cream from the USA 32
“Healthy café bakery” in premier locations of leading department stores,
hospital and office/residential buildings 78
“Enjoy Your Moment” with a leading American coffee & donut from numerous
stores nationwide 297
Mudman Public Company Limited
33/4 The 9th Towers Grand Rama 9, 18th Fl., Tower A, Rama 9 Road, Huaykwang, Huaykwang, Bangkok 10310, Thailand
Tel: +662 079 9765
Fax: +662 079 9755
Website: www.mudman.co.th
Email: [email protected]