QUARTERLY UPDATE 1Q2018 Disclaimer This presentation contains - - PowerPoint PPT Presentation

QUARTERLY UPDATE

1Q2018

2

Disclaimer

This presentation contains certain forward looking statements. Such forward looking statements (the words "believe“, "anticipate“, "estimate“, "target“, or "hope",

• r 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

• f such information and no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or
• therwise.

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

• f 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/18 to Date 2) Group Performance Appendix:

• Company Profile

TABLE OF CONTENTS

What’s New in 1Q/18 to Date

5

Owned Brands

DOMESTIC (17 stores*):

• Upcoming store : Negotiating on potential sites in Bangkok and Major provinces
• Kin Hey by Greyhound Café : new street food concept with a twist

INTERNATIONAL (18 stores**):

• New store : Hong Kong - Whampoa Garden (Dec-17) ….. Franchised store

London - Fitzrovia (1st Flagship Store opened in Dec-17) ….. Owned store

• Upcoming store : Negotiating with potential partners in major countries / cities

Key Highlights

Promotions / Events:

Kin + Hey 15% discount every Monday

What’s New in 1Q/18 to Date

Note: : * New store includes not only new outlet, but also new location of closed store (relocation store) ** 17 franchised stores & 1 owned-flagship store Special Menu "E-SARN BAAN HOUND"

6

Owned Brands

• Total store: 11 stores (1Q/18)
• 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/18 to Date (cont’d)

Life is easy Collection Smileyhound Collection C.U.B. House ** Greyhound Original x A.P. Honda Note: * New store includes not only new outlet, but also new location of closed store (relocation store) ** Credit picture from 9CARTHAI.com

7

What’s New in 1Q/18 to Date (cont’d)

Owned Brands Key Highlights

• Total store: 1 stores (1Q/18)
• 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: 288 stores (1Q/18)*
• Upcoming store: Ying Charoen Market (2Q/18)

Sripong Park Mall (Utaradit) (2Q/18) Metro Mall Sukhumvit (2Q/18) Promotions / Events:

Mango Donuts (Available @ Every Stores) Note: * Exclude catering service ** New store includes not only new outlet, but also new location of closed store (relocation store) DD Card (Available @ Every Stores)

What’s New in 1Q/18 to Date (cont’d)

9

Master Franchises Key Highlights

• Total store: 75 stores (1Q/18)*
• New store**: Summer Hill (March -18)
• Upcoming store: The Mall Bangkapi (2Q/18)

Central Plaza - Rama 3 (2Q/18) Promotions / Events:

Note: * Exclude catering service ** New store includes not only new outlet, but also new location of closed store (relocation store) Au Bon Pain X Baskin Robbins (Available only @ Au bon pain some stores) Buy 1 Get 1 @ 12.00 – 4.00 p.m. Until 30th April 2018

What’s New in 1Q/18 to Date (cont’d)

10

Master Franchises Key Highlights

• Total store: 34 stores (1Q/18)*
• Upcoming store: Central World Plaza (2Q/18)

Central Phuket Floresta (3Q/18) Negotiating on potential sites in Bangkok and Major provinces Promotions / Events:

Note: * Exclude catering service

What’s New in 1Q/18 to Date (cont’d)

Special menu: Charcoal Coconut (Available @ every stores) Flavor of the Month @ 69 Baht (Available @ every stores with different flavor every months) Milkshake discount 15 % (Available @ every stores every Thursday) Buy 1 get 1 free_student only (Available @ every stores) New York Shortcake Sunday (Available @ every stores)

Group Performance Mudman Group

12

63 49 64 62 61

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 738 720 735 777 808

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18

+ 9.6% YoY + 3.9% QoQ

95% 5%

Key Takeaways

EBITDA Net Profit

Mudman Group - Key Financial Performance

Note: * Excluded international stores

Revenues THB mm

• 1Q/18 Revenues reported THB 808 mm or YoY

growth of +9.6%, mainly due to revenues from new restaurants in London (Greyhound Café) and Paris (Le Grand Vefour)

• EBITDA in 1Q/18 reported THB 61 mm (7.6%

margin) which is lower than 1Q/17 (8.6% margin), primarily due to extra expenses (i.e. media/advertising expenses to promote new restaurants) and increasing labor costs

• Net margin in 1Q/18 recorded (1.0%), resulting

from the extra expenses, non-cash items (Purchase Price Allocation), and intense industry competition

• 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 (3-mth)

Stores * 433 438 427 433 436 Net margin (2.1%) (2.8%) (0.4%) (1.5%) (1.0%) EBITDA margin 8.6% 6.8% 8.7% 7.9% 7.6% %SG&A/Revenues 61.0% 63.0% 59.7% 60.1% 61.1%

(16) (20) (3) (12) (8)

• Q1/17

Q2/17 Q3/17 Q4/17 Q1/18

13 4.7 0.9 0.9 2.1 2.2

• 0.2

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 1,962 1,028 1,000 1,466 1,399 1,799 2,845 2,855 2,845 2,837 1.1 0.4 0.4 0.5 0.5

• 7.0
• 6.0
• 5.0
• 4.0
• 3.0
• 2.0
• 1.0
• 1.0

2.0

• 500

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Liabilities Equities D/E (2.6%) (10.3%) (9.0%) 1.5% (2.4%) 1.6% (5.3%) (4.3%) 3.9% 0.9%

• 12%
• 8%
• 4%

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 SSSG - F&B TSSG - F&B

SSSG & TSSG Financial Position Net Debt / LTM EBITDA**

Mudman Group - Key Financial Performance (cont’d)

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

• 1Q/18 SSSG* of F&B decreased by 2.4% YoY, attributable to lower

consumer spending and intense industry competition

• TSSG of F&B reported +0.9% YoY, primarily from discipline of new
• pening stores
• Debt-to-Equity was 0.5x as of Mar-18, much lower from 1.10x as of

Mar-16 (pre-IPO), mainly due to the debt repayment from IPO in Apr-

• 17. The slightly-increased assets was mainly from additional loan for

the acquisition (restaurant in Paris) in 4Q/17

• Net debt / LTM EBITDA in 1Q/18 reported 2.2x much lower from 4.7x

at Mar-17 (pre-IPO) with slightly increase from 4Q/17 (2.1x), primarily due to the acquisition in 4Q/17, financed with debt of THB 338 mm

3,762 3,872 3,855 4,311 4,236

14

1Q/17 2Q/17 3Q/17 4Q/17 1Q/18 Net sales 705.9 680.6 701.5 743.5 770.8 COGS (285.4) (280.1) (291.3) (295.5) (309.9) Gross profit 420.6 400.5 410.2 447.9 460.9 GPM 59.6% 58.8% 58.5% 60.2% 59.8% Selling exp (366.9) (367.5) (355.9) (373.0) (374.1) Administrative exp (82.8) (86.1) (82.9) (94.1) (120.1) Other inc / (exp) 31.7 39.0 33.6 33.9 37.3 Extra items

• (19.0)
• EBIT

2.5 (14.0) 4.9 (4.2) 4.1 Interest exp (16.2) (6.5) (4.6) (6.4) (7.5) EBT (13.7) (20.6) 0.3 (10.6) (3.4) Tax (1.9) 0.4 (3.2) (1.2) (4.4) Net profit (15.6) (20.1) (2.9) (11.8) (7.8) NPM (2.1%) (2.8%) (0.4%) (1.5%) (1.0%) PPA 16.7 16.8 16.8 16.8 11.9 Net profit - excl PPA 1.1 (3.4) 14.0 5.1 4.1 NPM - excl PPA 0.1% (0.5%) 1.9% 0.7% 0.5% EBITDA 63.2 49.3 63.7 61.6 61.3 EBITDA margin 8.6% 6.8% 8.7% 7.9% 7.6%

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% - 2%

Key Takeaways PPA Implication to Our Brands

Note: Disregard tax implication in calculating net profit - excl PPA

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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

• f 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 3,600 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 19,000 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 Master franchisee of Dunkin Donuts (1981) Au Bon Pain (1996)

2016

Public Conversion

2017

Capital increase to THB 1,055 mm

Acquisition of Le Grand Vefour

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799 857 987 1,036 1,150 1,421 1,627 1,855 2,235 2,889 2,992 2,970

170 188 207 224 240 258 301 349 370 389 414 415

98 92 104 109 135 192 224 232 216 253 255 238

• 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

Total Revenues (THB mm)

• No. of Stores

EBITDA (THB mm)

Solid Operational Platform & Strong Growth Capabilities

Acquisition of Thailand operation

• f 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 Master franchisee of Dunkin Donuts (1981) Au Bon Pain (1996) Acquisition of Le Grand Vefour

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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
• ver 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 2018

1 2 4 5 3 1 2 4 5 3

Food & Beverage

Owned brand Master Franchisee

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)

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Mudman at a Glance (cont’d)

Brands Key Concepts Outlets (1Q/18)

Owned Brands Fashion café in a stylish casual dining experience with food concept …. “Basic with a Creative Twist” Thailand (17) Hong Kong (8) China (5) 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 11 Master Franchisee Premium imported ice-cream from the USA 34 “Healthy café bakery” in premier locations of leading department stores, hospital and office/residential buildings 75 “Enjoy Your Moment” with a leading American coffee & donut from numerous stores nationwide 288

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: IR@mudman.co.th