q2’2019 key highlights - listed...
TRANSCRIPT
Q2’2019 KEY HIGHLIGHTS
117% Net Profit
Growth YoYBranch Expansion on
Track• Domestic expansion:
i. 6 branches in 1H/2019
ii. 2-4 branches in 2H/2019
• International expansion: Hong
Kong branch opening soon
(Q4/2019)
Consistent Innovation of New Products
• 10 new products including OEM
products in 1H/2019
• 5 new products to be launched in
2H/2019
• New product line – expanding to
longer shelf-life products (Pancake
Mix)
• Revenue increased by THB 106
million or 51% YoY
• Gross profit increased by THB 63
million or 46% YoY
• Net profit increased by THB 34
million or 117% YoY
01
02
03
Industry Outlook
Company Overview and Direction
Company Performance
Identifies factors affecting the Thai Food and Dessert Industry
Outlines After You company background and its strategic direction
Displays After You financial performance from the latest quarter
Industry Outlook Company Overview and DirectionCompany Performance 4
Thailand Consumer Foodservice Industry (Million Baht)
Source: Euromonitor Consumer Foodservice in Thailand 2019
692,369
886,916
1,085,206
2013 2018 2023F
4.12% CAGR
5.08% CAGR
Driving Factors of Foodservice Industry
Accessibility Channels• Delivery & Takeaway• The Platform-to-Consumer
(Foodpanda, Line-Man, Grab, Get)
Tourism• Increasing tourists’ food expenditure• Increasing expenditure per head• Increasing international arrivals• Seasonality in tourism
Consumer Behaviors• Growing private consumption• Driving consumer behaviors• Trending consumer behaviors
Consumer Foodservice Industry • 4.12% CAGR increase in foodservice industry by 2023• This growing industry is supported by the increase in tourism,
accessibility channels and changing consumer behaviors.
Consumer foodservice consists of desserts & cafés, bars, limited-service restaurant, full-service restaurant, self service and street stalls & kiosks.
Thailand Foodservice Industry is Expected to Grow at 4.12% Driven by Tourism, Accessibility Channels and Consumer Behaviors
Industry Outlook Company Overview and DirectionCompany Performance
17%29%
32%11%
10%
10%
4%
5%
5%
4%
4%
5%
5%
5%
4%
7%
4%
3%
52%
44%
40%
26.5
37.4
51.9
2013 2018 2023F
China (+8.97%)
Malaysia (+8.21%)
Laos (+9.99%)India (+10.34%)South Korea (+4.01%)Russia (+3.27%)
Others (+4.79%)
6.80% CAGR
7.10% CAGR
26%
7% 5%5%4%
47%53%
53%
376,132
505,602
2017 2023F 2023F
Others
USAUKMalaysia
China
1,085,206
5
Food Expenditure by Tourists (Million Baht)
Tourists’ Food Expenditure per head (Baht/Visit)
6.80% CAGR increase in international arrivals by 2023. • The recovery and rising of Chinese tourists are expected
taking the larger proportion, following by Malaysian visitors.
• The comeback of Chinese tourists play a major role in boosting the tourists’ expenditure
International Arrivals by 2023
Expected 5.05% CAGR growth in food expenditure by Tourists• Tourists’ food expenditure are forecasted to increase based on
the expected increase in number of tourists and expenditure per head
Foodservice Industry: Incoming tourists play an important role
Source: Euromonitor Tourism Flows in Thailand 2018, Ministry of Tourism and Sports 2017
Tourists’ Expenditure
(+6.13%)
Domestic Expenditure
(+2.53%)
CAGR ‘18-’23 CAGR ‘18-’23
6.45.1
5.9
7.57.87.07.3
7.89.0
7.68.37.8
9.28.1
8.89.4
10.6
8.99.19.7
2014 2015 2016 2017 2018
Seasonality in tourism (Million People)
• The peak season is between November and March (Q4-Q1)
(Million People)
5.05% CAGR
8,789 9,027
10,259 9,866 9,911 10,038
10,308 10,585
10,870
2013 2014 2015 2016 2017 2018 2019F 2020F 2021F
Forecast
Industry Outlook Company Overview and DirectionCompany Performance 6
Food Expenditure by Tourists (Million Baht)
Foodservice Industry: Asian Tourists are important factors in driving food expenditure
Source: Ministry of Tourism and Sports
11%15% 16%
25%26%
26%
9%
10% 11%
5%
6%
7%
5%
5% 5%
5%
5%
5%
6%
6% 6%
6%
5%
5%
5%
5% 4%
4%
4%
4%
4%
4% 4%
4%
4%
4%
5%
5% 4%
4%
4%
4%
6%
5% 5%
4%
4%
4%
5%
4% 4%
4%
4%
3%
3%
3% 3%
3%
3%
3%
41%
38% 38%
36%
35%
36%
183,894
230,066 228,053
283,230
329,145
376,132
2012 2013 2014 2015 2016 2017
Others (+12.3%)
China (+38.3%)
Russia (+8.6%)
India (+13.4%)
Germany (+6.7%)
Australia (+4.8%)
Korea (+14.3%)
Japan (+10.2%)
USA (+11.5%)
UK (+8.4%)
Malaysia (+13.1%)
15.40% CAGR increase in food expenditure by tourist• Chinese tourists’ expenditure experienced a tremendous
growth of 38.3% CAGR during 2012 – 2017.• Chinese tourists’ expenditure played an important role
in accelerating the country foodservice industry, with over a quarter of the total expenditure by tourists.
• Asian tourists having a very strong growth are from China, Korea, India and Malaysia and Japan.
Industry Outlook Company Overview and DirectionCompany Performance
80.679.976.8
73.577.7
68.8
Consumer Confidence Index
7
Foodservice Industry: Private consumption expansion influences consumer behaviors
Private Consumption and Consumer Confidence Index
Increasing spending
Driving Consumer Behaviors
Private ConsumptionIndex
✓ Consumers are regaining their confidence about the future economy.
✓ The rebound of the index came from the greater confidence in job opportunity and future income.
Source: The University of the Thai Chamber of Commerce, Bank of Thailand, Euromonitor Consumer Foodservice in Thailand 2019
All-day snacking from street stalls
Increasing use of food delivery
Eating out with friends or family
Faster pace of everyday life
✓ This increasing trend is in line with the expansion of consumer income.
✓ The increasing consumption is an evidence to consumer increasing spending, and influencing changes in consumer behaviors.
FOODINDUSTRY
Consumer Confidence Index Private Consumption
129
123 121
118 113
110
201920182017201620152014
Industry Outlook Company Overview and DirectionCompany Performance 8
• Delivery and Takeaway gradually increased at 7.17% CAGR mainly from the support of Platform-to-Consumer
• Eat-In grew by 3.60% CAGR and still retained its majority position
Foodservice Industry: Delivery and takeaway as another main driver
Foodservice Industry by Eat-In vs Delivery and
Drive-through(Million Baht)
• Rising trend of Platform-to-Consumer
• Offer food discounts• Low delivery prices• Greater convenience value• Faster pace of everyday life• Changing lifestyles order for
delivery• Accessibility to more food options
Delivery & Takeaway
Source: Euromonitor Consumer Foodservice in Thailand 2019, Statista Online Food Delivery in Thailand
Restaurants will increase both their reach and sales from Platform-to-Consumer
7.17% CAGR increase in delivery and takeaway is taking a larger portion
Increase in revenue will contribute to the expansion of food industry
64% 64% 64% 63% 61% 60%
35%35%
35%36%
37%38%1%
1%1%
1%1%
2%
692,369
735,290 768,964
807,604 841,042
886,916
2013 2014 2015 2016 2017 2018
Eat-In(+3.60%)
Delivery & Takeaway(+7.17%)
Drive-Through(+22.17%)
Mobile Platform Restaurants Delivery Man Consumers
Platform-to-Consumer
Industry Outlook Company Overview and DirectionCompany Performance
25%
42%44%48%
38%
35%
27%
21%
21%
35,243
56,748
73,265
2013 2018 2023F
Dessert and cafés: New trends and behaviors drive to outperform the food industry
People want to have it for socializing and sharing with friends and family.
Many dessert cafés are opening earlier and offering sweet breakfast menu.
Desserts and Cafés (Million Baht)
Cafés(+5.16%)
Desserts(+4.00%)
Specialist Coffee(+6.35%)
5.24% CAGR
8.87% CAGR
Source: Euromonitor Consumer Foodservice in Thailand 2019, Bangkok Post
Bubble milk tea Dessert is a lifestyle Desserts for breakfast
Trending Consumer Behaviors
The market value is estimated to be 2.5 billion baht.
Desserts and Cafés✓ Overall Desserts and Cafés outperformed the food service industry
CAGR and projected to continue with 5.24% CAGR.
CAGR ‘18-’23
Average Desserts and Cafés Spending per head (Baht)
2,454 2,610
2,791 2,990
3,169 3,387
2018 2019F 2020F 2021F 2022F 2023F
Average Spending per head• Thai consumer are
expected to spend more on desserts and cafés due to the rising trends and changing in behaviors.
9
Desserts and Cafés consists of revenues from dessert restaurants, specialist coffee shops and cafés.
Industry Outlook Company Overview and DirectionCompany Performance
After You is one of the Top 10 key players in desserts and café industry
Desserts and Cafés Market Contribution (Revenue 2018)
Source: Euromonitor Consumer Foodservice in Thailand 2019
Other restaurants include: Krispy Kreme, Häagen-Dazs, Cold Stone Creamery, Gateaux House, True Coffee, Intanin, McCafé, Coffee World, Punthai Coffee, Coffee Bean & Tea Leaf, Chester’s Coffee, Gloria Jean’s Coffees, Banrie Coffee
• Revenue of Café Amazon and Starbucks represent the majority part of the desserts and cafés market.
• The remaining portion in the Top 10 is separated among dessert brands
• After You is the youngest brand ranked in the Top 10.
10
30.5%
21.8%
11.4%
5.7%
5.3%
Other
11.2%
4.3%
3.1%
2.5%2.4%
1.7%
Industry Outlook Company Overview and DirectionCompany Performance
Bangkok CRD rentalCPI of Raw Materials Average Wages
Short-Term Challenges Ahead: Supply Side (1)
Vacancy Rate
Retail Rental Rate
Bangkok CRD rental• Retail market slightly expanded due to the
increase in both private and public investment• Vacancy rate is expected to increase resulting
in a higher rental supply as many significant projects are still under construction
• Retail rental rate is expected to maintain at this level
(Baht)
Source: CEIC Data, Nexus Marketbeat Retail Snapshot in Thailand 2018, Bank of Thailand
10,172
10,731
10,415
10,821
11,087
12,000
2014 2015 2016 2017 2018 2019F
3,500
3,700
3,800
3,900 3,908
2014 2015 2016 2017 2018
2.70%3.10% 3.10%
3.75% 3.95%
300 300 300 305325
400
Average Monthly Salary
Minimum Daily Wage
Average Wages• Thai labors are expecting the rise in daily
minimum wage to 400 Baht from the new government
• Average monthly salary in private food industry has increased over years and is forecasted to reach 12,000 Baht per month after the new minimum wage policy
CPI of Raw Materials• Price of vegetables and fruits is the most
fluctuated and the price is expected to increase further
• Price of Flour has gradually increased and is forecasted to continue
• Price of eggs and dairy products is expected to slightly decrease
(Baht/SQM/month)
CPI – Vegetables & Fruits
CPI– Eggs & Dairy Products
CPI - Flour
11
100101.8
99.6 99.2 99.5
2015 2016 2017 2018 2019F
100 99.697.7
100.2
103.1
2015 2016 2017 2018 2019F
100
106.2103.5
100.5
105.4
2015 2016 2017 2018 2019F
Industry Outlook Company Overview and DirectionCompany Performance
116.9119.2
124.3
130.2
2016 2017 2018 2019
75.5
74.5
80.0 80.7
TTM Number of TouristsExpected of Consumer Confidence Index Thai Baht Exchange Rate
TTM Chinese and Malaysian Tourists• Trailing-Twelve-Month (TTM) numbers of
Chinese tourists has a positive CAGR over the long run, while in the short-run, the number is expected to decline because of the boat accident.
• Malaysian tourists, after seasonality adjusted, are expected to level off later.
• In Q2/2018, Malaysian visitors was increased both YoY and QoQ, while Chinese tourists was declined both YoY and QoQ.
(Baht)
Source: Bank of Thailand, Ministry of Tourism and Sports, University of the Thai Chamber of Commerce
Thai Baht Exchange Rate• Thai Baht has been appreciating over the past
three years resulting in weakened USD and CNY.
• A strong Thai Baht could discourage incoming tourists coming to Thailand in the foreseeable future.
Monthly CCI and PCI Index• CCI and PCI Index showed decreasing
trends in the near future as consumers have less confidence over the overall economy, job opportunity and future income.
(Million Visitors)
12
0
2
4
6
8
10
12
2015 2016 2017 2018 2019
4.0
4.5
5.0
5.5
6.0
6.5
7.0
27.0
28.0
29.0
30.0
31.0
32.0
33.0
34.0
35.0
36.0
37.0
Aug2016
2017
2018
2019
Consumer Confidence Index
Private ConsumptionIndex
Malaysian Tourists
Chinese Tourists
(1 USD / THB) (1 CNY / THB)
20182017 2019
2.763.12
2.53
Q2/2018 Q1/2019 Q2/2019
0.96 0.92 1.01
Q2/2018 Q1/2019 Q2/2019
-8% YoY
+5% YoY
Malaysian TouristsChinese Tourists
(Million Visitors)
16.7% CAGR
5.3% CAGR
Short-Term Challenges Ahead: Demand Side (2)
01
02
03 Company Overview and DirectionOutlines After You company background and its strategic direction
Industry Outlook
Company Performance
Identifies factors affecting the Thai Food and Dessert Industry
Displays After You financial performance from the latest quarter
Company Performance Company Overview and DirectionIndustry Outlook
Financial Highlights
14
• Gross Profit was increased by
THB 63 million or 46% YoY, and
increased by THB 116 million or
42% from 1H/2018
46% Gross Profit
Growth YoY
51% Revenue
Growth YoY
• Revenue increased by THB 106
million or 51% YoY, and increased
by THB 194 million or 48% from
1H/2018
• SSSG was 16.4% which improved
by 23.8% YoY
• 8 branches were opened
• Net profit increased by THB 34
million or 117% YoY, and
increased by THB 63 million or
105% from 1H/2018
• Net Profit Margin increased by
6.1% YoY and 5.7% from 1H/2018
117% Net Profit
Growth YoY
Company Performance Company Overview and DirectionIndustry Outlook 15
98%
93%94%
6%
4%
2%
2%
2%
206
287
312
Q2/18 Q1/19 Q2/19
Non-Café
Dessert Café Dominates as the Largest Portion of After You Revenues
Q2/2019 After You Revenue
Dessert Café
Catering / Pop-Up
(Unit: Million Baht)
Pop-up Store
Online Sales
Dine-In (71%)
Take-Away(29%)
OEM
Catering+51%YoY
Company Performance Company Overview and DirectionIndustry Outlook
Non-Café
Dessert Café
Catering/Pop-Up
98%
94%
98%
93%4%
5%
2%
2%
2%
2%
206
312
405
599
Q2/18 Q2/19 1H/18 1H/19
+48%
+51%
Revenue Increased YoY and 1H/19 driving by the Increase in Dessert Cafe Sales
16
SSSG
Total Revenue by Business Category (Million Baht)
201 207232
266 292
-7.4% -11.1%
4.2%11.7%
16.4%
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
Dessert Café Sales (MB)
Same-Store-Sales-Growth (%)
• Revenue from Dessert Café in Q2/2019 was THB 292 million increased by THB 91 million or 45% from Q2/2018 due to 8 more branches compared to Q2/2018, together with better Same Store Sale Growth mainly from take-home products, new menus and seasonal menus.
• Revenue from Non-café in Q2/2019 was THB 14 million increased by THB 13 million or 1,300% from Q2/2018 due to the higher volume of major OEM customers’ orders.
• Revenue from Catering and Pop-Up in Q2/2019 was THB 6 million increased slightly by THB 2 million or 50% from Q2/2018 due to additional catering teams which results in generating more revenue from pop-up stores.
• For the first half (1H) of 2019, total operating revenue was THB 599 million increased by THB 194 million or 48% from 1H/2018, as the total operating revenue from both Q1 and Q2/2019 rose from the same period last year. The increase was mainly due to:• Revenue from Dessert Café in 1H/2019 increased by THB
161 million or 41% from 1H/2018 as more branches are opened, together with significant improvement in SSSG.
• Revenue from Non-Café in 1H/2019 increased by THB 29 million or 2,900% from 1H/2018 from the higher OEM order volumes, which started from late 2018.
Q2/2019 vs Q2/2018YoY
1H/2019 vs 1H/20181H
Dessert Café Sales and Same-Store-Sales-Growth
Company Performance Company Overview and DirectionIndustry Outlook
67.0%64.4%
67.4%64.9%
Gross Profit Increased In Line with the Increase in Revenue while GPM Decreased because of Higher Take-Home and OEM Sales
17
Gross Profit Margin
Gross Profit
Gross profit in Q2/2019 was THB 201 million increased by THB 63 million or 46% from Q2/2018 in line with higher sales in Q2/2019 compared to Q2/2018.
138
201
273
389
Q2/18 Q2/19 1H/18 1H/19
Gross Profit and Gross Profit Margin (Million Baht,%)
Gross profit = Total Operating Revenue – Cost of SalesCost of sales mainly consists of cost of raw materials, packages, supplies, salary of production unit’s staff, depreciations, kitchen utensils and space usage expense of production unit. Major part of cost of sales is raw materials.
+42%
+46%
Gross profit margin in Q2/2019 was 64.4% decreased by 2.6% from Q2/2018, due to an increase in sales of take-home and OEM products, which usually have lower gross profit margin.
Q2/2019 vs Q2/2018YoY
1H/2019 vs 1H/20181H
Gross profit was increased by THB 116 million or 42% from 1H/2018. The increase was mainly attributable to 4 branches opened in Q1 and 2 branches in Q2 with continuous launch of take-home products, new menus and seasonal menus during 2019.
Gross profit margin in 1H/2019 was 64.9% decreased by 2.5% from 1H/2018. The decrease was mainly attributable to the higher portion of OEM and take-home sales which yields lower GPM.
Company Performance Company Overview and DirectionIndustry Outlook
68
85
134
160
Q2/18 Q2/19 1H/18 1H/19
Selling Expenses to Revenue Improved from Higher SSSG while Expenses At Branch are Well-Managed
18
Selling expenses in Q2/2019 was THB 85 million increased by THB 17 million or 25% from Q2/2018 in line with the new branch opening in Q2/2019.
Selling expenses was THB 160 million, increased by THB 26 million or 19% from 1H/2018, due to the increase in selling expenses regarding new 4 branches opened in Q1/2019 and 2 new branches opened in Q2/2019
Selling Expenses & Selling Expenses to Revenue (Million Baht,%)
+19%
+25%
Selling expenses to total revenue in Q2/2019 was 27.0% improved by 5.5% from Q2/2018. The increase was due to higher SSSG from take-home product sales, while limited additional selling expenses are needed. Moreover, manpower expenses per branch reduced from operational improvement.
Selling expenses to total revenue in H1/2019 was 26.5% improved by 6.2% from 1H/2018. The decrease was mainly from significant increase in sales from dessert café both in Q1 and Q2/2019, while the selling expenses per store did not increase significantly as a result of manpower expense control at each branch and process efficiency.
Q2/2019 vs Q2/2018YoY
1H/2019 vs 1H/20181H
32.7%26.5%
32.5% 27.0% Percentage to Total Revenue
Selling Expenses
Selling expenses mainly consist of salaries of dessert café’s staff, space and equipment rental expenses, utility expenses, and other selling expenses such as marketing and promotional expenses, and depreciation of asset in each branch.
Company Performance Company Overview and DirectionIndustry Outlook
39 41
72
82
Q2/18 Q2/19 1H/18 1H/19
19
Administrative expenses in Q2/2019 was THB 41 million, increased slightly by THB 2 million or 5% from Q2/2018 mainly due to an increase in salary expenses in the back office.
Administrative expenses was THB 82 million increased by THB 10 million or 14% from 1H/2018 due to the higher back office salary expenses from business expansion.
Administrative Expenses & Admin Expenses to Revenue (Million Baht,%)
+5%Admin expenses to total revenue in Q2/2019 was 13.0% improved by 5.7% from Q2/2018 due to higher revenue growth while administrative expenses increased insignificantly from better expense control in the back office.
Admin expenses to total revenue in 1H/2019 was 13.6% improved by 4% from 1H/2018 due to better control of the back-office expenses while sales increased significantly in 1H/2019.
Q2/2019 vs Q2/2018YoY
1H/2019 vs 1H/20181H
Percentage to Total Revenue
Administrative Expenses
Administrative expenses mainly consist of salaries of back office staff, utility expenses, and depreciation of property, plant, and equipment in the back office.
18.7%13.0%
17.6%13.6%
+14%
Admin Expenses to Revenue Improved from Higher Revenue Growth while Admin Expenses Slightly Increased
Company Performance Company Overview and DirectionIndustry Outlook
14.6%20.3%
29
6360
123
Q2/18 Q2/19 1H/18 1H/19
Net Profit Margin Increased from Higher Dessert Cafe and Better Expense Management
20
Net profit in Q2/2019 was THB 63 million increased by THB 34 million or 117% from Q2/2018 due to the increase in operating revenue resulting from the increase in sales from dessert café, non-café, and catering and pop-up stores.
Net Profit and Net Profit Margin (Million Baht,%)
+117%
Net profit margin in Q2/2019 was 20.0% increased by 6.1% from Q2/2018 due to the increase in revenue from dessert café, better expense management and production efficiency in Q2/2019
Net profit margin in 1H/2019 was 20.3% increased by 5.7% from 1H/2018 as the operating revenue increased, while the SG&A expenses did not increase significantly as the company had better expense control.
Q2/2019 vs Q2/2018YoY
1H/2019 vs 1H/20181H
Net Profit Margin
Net Profit
+105%
13.9%20.0%
Net profit was THB 123 million increased by THB 63 million or 105% from 1H/2018, due to better operation and economies of scale of operating 38 branches
Company Performance Company Overview and DirectionIndustry Outlook 21
Balance Sheet as at 30 June 2019
Total Assets Total Liabilities and Equities
62 61
403 313
57
57
505 596
70 53
1,097 1,080
18 1930 Jun 1931 Dec 18
Land, Property and Equipment
Other current assets
Short-term Investment
Other non-current assets
Cash and Cash equivalent 6%
37%
5%
6%
46%
6%
29%
5%
5%
55%
• Short-term investment decreased by THB 90 million or 22% as a result of dividend payment in Q2/2019.
• Land, property, plant and equipment increased by THB 91 million
or 18% because of the plant expansion and the increase in new
branches.
116 128
24 27
957 925
1,097
18 19
Equity
Non-current Liabilities
Current Liabilities
30 Jun 1931 Dec 18
11%
2%
87%
12%
2%
86%
1,080
Total Assets
The total assets of the company decreased by THB 17 million or 2%
from 31 December 2018. Changes are highlighted as follows:
Total Liabilities
The total liabilities of the company increased by THB 15 million or
11% from 31 December 2018. The increase was due to the THB 10
million increase in tax payable as a result of the higher net profit.
Total Equity
The total equity of the company was decreased by THB 32 million or
3% from 31 December 2018. The decrease was due to the dividend
payment for the year ended 2018, which was paid in Q2/2019 with the amount of THB 155 million.
-2% -2%
(Million Baht) (Million Baht)
Company Performance Company Overview and DirectionIndustry Outlook
Key Financial Ratios
22
0.10 0.09
0.15 0.140.17
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
D/E (Times)ROA* (%)
ROE* (%)EPS (Baht per share)
0.040.05
0.060.07 0.08
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
14.2%13.4% 13.8%
15.9%
20.6%
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
15.7%14.7%
15.6%
17.7%
23.4%
Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
*Note: The net profit used to calculate ROA and ROE is actual 4-quarter net profit. The assets and equities are the weighted average assets and equities between the beginning and ending of the period.
01
02
03 Company Overview and DirectionOutlines After You company background and its strategic direction
Company PerformanceDisplays After You financial performance from the latest quarter
Industry OutlookIdentifies factors affecting the Thai Food and Dessert Industry
Industry Outlook Company Overview and DirectionCompany Performance
After You Business at a Glance
24
M & M 2007Company Limited
(Not yet in operation)
100% 100%
After You Hong Kong Limited
(Not yet in operation)
100%
Aurum and AurumCompany Limited
(Distributor and supplier of bakery products and equipment)
After You Public Company Limited(Sale of Desserts)
‘After You Dessert Café began with a passion to share love, recreating something delightful, just like mom’s kitchen’
Company structure
2H’2019
THE 1ST AFTER YOU @ J-AVENUE THONGLOR
Increased registered capital to THB 50 mm
• Launched ‘After You Durian’• Received GMP and HACCP
Introduced take-away products
• Introduced first home-cooked product (Pancake Mix)
• Opened 6 new branches in 1H/2019
Established ‘After You 2007’ • Established After You Company Limited
• Started Catering Services
• Started collaboration with corporate customer and airlines
• Partner with delivery operator
FIRST OVERSEAS BRANCH IN HONG
KONG
2007 2011 2014 2017 Q2’2019
Company History and Background
• LISTED IN ‘MAI’ MARKET• New factory at Samutsakorn• Launched Maygori• Increased registered capital to
THB 80 mm for IPO
2010 2012 2016 2018
Industry Outlook Company Overview and DirectionCompany Performance
After You Strengths
25
Strengths
Leading Product Innovation and R&D01 Pioneer of Dessert Café with Quality Product and Service
✓ After You opened the first branch at J Avenue Thonglor in 2007
✓ The company offers products made from the finest ingredients and retains the highest standard of quality and service creating a unique cozy and warm atmosphere
✓ After You has a strong R&D team that continuously offers new menus and recipes to enhance customers’ experience and satisfaction
Pioneer of Dessert Café with Quality Product and Service
Leader in Product Innovations
Leading Product Innovation and R&D01 Pioneer of Dessert Café with Quality Product and Service
✓ Continuous growth through domestic and international branch expansion with remodeling of existing store to increase takeaway and capability improvement
✓ Strong brand awareness among dessert café in Thailand
✓ After You offers multiple store formats in all high traffic, strategic locations in Bangkok and other main provinces
✓ The aim is to reach every target group of different genders, occupations, and lifestyles
High Growth Potential with Strong Brand Awareness
Strategic Locations Under Multiple Formats
Industry Outlook Company Overview and DirectionCompany Performance
After You Strategic Direction
26
Leading Product Innovation and R&D
Sales Channel Enhancement
Dynamic Branch Expansion
✓ Domestic Expansion:▪ Selectively expand through
pop-up store▪ Remodeling existing stores
✓ Branch as a distribution hub✓ International Expansion:
▪ Through Partnership
✓ Strong and consistently innovative R&D team
✓ More take-home products✓ Expansion into new product line
(Pancake Mix)
✓ Actively seeking collaboration opportunities
▪ OEM partnership with airlines and corporates
▪ Distribution Channel partnership with delivery players (Grab, GET, Lineman)
▪ Co-marketing partners
Efficiency and Capability Improvement• Increasing staff capabilities✓ Expanding production facilities and benefit through economies of scale
Industry Outlook Company Overview and DirectionCompany Performance
Dynamic Branch Expansion
✓ Domestic Expansion:▪ Selectively expand
through pop-up store▪ Remodeling existing
stores
✓ Branch as a distribution hub
✓ International Expansion:▪ Through Partnership
1. Branch Expansion: Opened 6 Branches Domestically in 1H/2019
27
1 2 4 7 811
15
20
27
32
38NorthChiangmai – 1
North EastKorat – 1Udornthani – 1
SouthPhuket – 1Hadyai – 1
EastPattaya – 1
CentralBangkok – 26Nontaburi – 3Samutprakarn – 2Patumthani – 1
✓ Increasing sales✓ Increasing distribution hub✓ Larger area coverage
6 Branches Opened in 1H/2019, 2-4 Branches in 2H/2019
Icon Siam – 16 Jan 101 The Third Place – 5 Feb
The Market – 20 Feb
Central Patong – 15 Feb
Central Hadyai – 15 JunSukhumvit 11 – 30 Apr
Domestic Expansion
Industry Outlook Company Overview and DirectionCompany Performance
1. Branch Expansion: Seek new opportunities through pop-up store and expanding existing store sales through remodeling
28
Dynamic Branch Expansion
✓ Increasing takeaway sales✓ Increasing turnover rate✓ Convert existing store into a distribution
hub
✓ Test new market & explore demand✓ Obtaining potential branches at low costs✓ 7-10 days sales at up-country malls & events
Silom Complex – first store remodelingMRT – Pop up store
Central Plaza Surat Thani ✓ Domestic Expansion:▪ Selectively expand
through pop-up store▪ Remodeling existing
stores
✓ Branch as a distribution hub
✓ International Expansion:▪ Through Partnership
Pilot locations through Pop-Up Stores (1-2 per month)
Remodeling After You Existing Stores
Industry Outlook Company Overview and DirectionCompany Performance
1. Branch Expansion: Hong Kong branch expansion through partnership is on track
29
✓ New market opportunity✓ Expanding customer base
✓ Relatively Low regulations for FDI✓ High numbers of tourists from China ✓ High spending per head as a result of high
income
Why Hong Kong?
Hong Kong Branch Partnership Criteria
Dynamic Branch Expansion
✓ Domestic Expansion:▪ Selectively expand
through pop-up store▪ Remodeling existing
stores
✓ Branch as a distribution hub
✓ International Expansion:▪ Through Partnership
Hong Kong Branch Progress Update
Q4/2019Q3/2019Q2/2019
Complete Contract
Store Construction
Operate
Store Design
Staff training at Bangkok Office+
Preparation for Store Opening+
✓ Have restaurant business in China facilitating growth to China
International Expansion Through Partnership
Industry Outlook Company Overview and DirectionCompany Performance
✓ Enhance SSSG✓ Retain Existing Customers
2. Strong Product Innovation: Launched Approximately 8 Products in 1H/2019
30
Leading Product Innovation and
R&D
✓ Strong and consistent innovative R&D team
✓ More take-home products
✓ Expansion into new product line (Pancake Mix)
✓ Increase Sales✓ Use existing branch as a distribution hub
✓ Longer shelf life✓ Supported by more distribution channel
(Modern Trade)
Innovative R&D Team Launches 8-10 Products Per Year
Continuously Increasing Take-Away Products
Expansion into New Product Line
Jan 21
Feb 11
Mar 7
May 5
Jun 1
??
??
Feb 5
Feb 26
Apr 11
May 14
Jun 19
??
Industry Outlook Company Overview and DirectionCompany Performance
3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities
31
Sales Channel Enhancement
✓ Actively seeking collaboration opportunities
▪ OEM partnership with airlines and corporates
▪ Distribution Channel partnership with delivery players (Grab, GET, Lineman)
▪ Co-Marketing Partners
✓ Higher area coverage of potential customers
✓ Continuous revenue stream✓ Increase brand visibility
✓ Ensured revenue stream✓ Increase brand visibility
Airlines and Corporates OEM Partners
Delivery Services Partners
Co-Marketing Partners
Industry Outlook Company Overview and DirectionCompany Performance
New PlantMachineries and Equipment Cold Storage
✓ Improve efficiency✓ Increase production
capacity✓ Increase economies of scale
1 2 3
Efficiency and Capability
Improvement
✓ Expanding production facilities and benefit through economies of scale
✓ Increasing Staff Capabilities
✓ Reduce cold storage rental Better supply management
✓ Preparation for exports for international operation
✓ Accomodate increasing demands
✓ Facilitate export and international operation
✓ Increase productivity
32
4. Efficiency and Capability: Continuous Investments to Improve Capacity, Capability and Productivity
Investment in Facilities for Growth
Investment for Staff Capability Improvement
Industry Outlook Company Overview and DirectionCompany Performance
Summary of Action Plan in 2H/2019
33
Strategies Initiatives in 2H/2019
• 2-4 branches
• Remodeling branch
• Pop up stores in selected locations
• 1st Hong Kong outlet before Christmas
• New flavors of dine-in and take-home products
• Return of seasonal menus
• Dessert for festival (Mooncake)
• New OEM partner with exclusive products
• Promotion with platform provider (Grab, GET,Lineman,)
• Increasing orders from exisitng OEM partners
• Continuous development of store design and manpower at branches
• Utilization of new phase facility
• Ecomomy of scale for procurement functions
1 Dynamic Branch Expansion
3 Sales Channel Enhancement
4Efficiency and
Capability Improvement
2 Leading Product Innovation and
R&D