Th International Limited · NASDAQ:THCH
Th International — Tims China — Q3 2024 Earnings Presentation
21 slides from Th International's earnings presentation, Nov 12, 2024
Slide 1: Tims China Q3 2024 Earnings Presentation
Tims China Nasdaq: THCH Q3 2024 Earnings Presentation November 12, 2024
Slide 2: Disclaimer and Risk Factors
Disclaimer and Risk Factors This presentation ("Presentation") is provided by TH International Limited (“THIL") for informational purposes only and does not constitute, or form a part of, an offer to sell, or the solicitation of an offer to sell or an offer to buy, any securities. The information he
Slide 3: 01. Business Update
01. Business Update
Slide 4: Profitability
Achieved Consecutive Second Quarterly Adjusted Corporate EBITDA Profitability Q3 YOY 2022 2023 2024 (24 vs. 23) (1) 610bp Food and packaging 33.3% 35.1% 29.0% (1) Rental and property management fee 15.6% 19.3% 19.3% — (1) Payroll and employee benefits 22.8% 19.9% 16.9% 300bp (1) 110bp Other operatin
Slide 5: Resilient Store Network & Loyalty Membership Highlights
Resilient Store Network & Loyalty Membership Highlights YoY % Q3’22 Q3’23 Q3’24 (24 vs 23) (1) Total stores 486 763 946 24.0% (2) Net new stores 46 63 39 (38.1)% Registered Loyalty club members (mm) 8.9 16.9 22.8 35.3% (3) Digital orders % 79.8% 82.6% 86.6% 4.0ppts Total revenues (RMBmm) 305.7 433.9
Slide 6: Our Differentiated Value Proposition: Coffee Plus Warm Food
Our Differentiated Value Proposition: “Coffee Plus Warm Food” Freshly Prepared Food Healthy and High Affordable Pricing Quality Products Healthy and High Quality Product
Slide 7: Freshly Prepared Food
Freshly Prepared Food We have completed the “made-to-order” renovation of 539 new and existing stores by the end of October With this investment, our guests can watch our staff craft fresh meals from start to finish
Slide 8: Healthy and High-quality Products
Healthy and High-quality Products Promise “Five Zeros” in Our Drink Label Calorie on Our Menu Offerings Zero non-dairy creamer, Zero coffee whitener, Zero hydrogenated vegetable oil, Zero trans fats, Zero instant tea powder…
Slide 9: Healthy and High-quality Products
Healthy and High-quality Products Customized Combos With Less Than 400 Calories
Slide 10: Affordable Pricing
Affordable Pricing Value Breakfast Combos Value Lunch Combos Chibaobao Card (吃饱饱卡） Starting from RMB14.9 Starting from RMB21.9
Slide 11: Focus on Profitable & Capital-Efficient Growth
Focus on Profitable & Capital-Efficient Growth Total stores(1) Market entry Store formats Q3’23 Q3’24 11% 17% 946 902 906 907 23% 12% 759 77 56 77% 60% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3‘23 Q3’24 Company-owned Stores Franchised Stores Tims Express (Franchised) 39 Net New Store Openings in Q3’2024 (10)
Slide 12: The Individual Franchise Has Demonstrated Strong Growth And Remarkable Momentum
The Individual Franchise Has Demonstrated Strong Growth And Remarkable Momentum Applications Made-to-order Store Payback Period 5,000+ 2-3 years Individual franchise stores Individual Franchise stores already located across 13 provinces: Opened # 43 Shanghai、Beijing、Zhejiang、Jiangsu、Anhui、 Signed #
Slide 13: Further Expansion of Our Franchise Network on Track
Further Expansion of Our Franchise Network on Track Total Sub-Franchise Stores Penetrated Into New Cities With Our Franchisees 195% 382 333 302 283 174 First store in Haerbin, the capital First store in Shijiazhuang, the 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 of Heilongjiang Province capital of Hebei Provinc
Slide 14: Steady Growth of Loyalty Club Members and Digital Orders
Steady Growth of Loyalty Club Members and Digital Orders Registered Loyalty Club Members (mm) Number of Orders (mm) 35.3% 22.8 15.4 20.0 21.4 13.3 13.5 12.3 13.3 13.5 16.9 18.5 10.9 14.7 9.8 9.2 11.3 12.4 8.9 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q
Slide 15: Product Innovation Pleasing Local Tastes
Product Innovation Pleasing Local Tastes Five Red & Five Black Bagel Supermodel Low-Fat Bagel Fruity Coffee Series Melon and Coconut Cold Brew
Slide 16: Building Family-Friendly Community, Attracting Gen Z and Gen Alpha
Building Family-Friendly Community, Attracting Gen Z and Gen Alpha Tims x Crayon Shin-chan Tims x Lijun Chen Tims x Menglan Tims x GAP
Slide 17: 02. Financial Highlights
02. Financial Highlights
Slide 18: Top-line Under Pressure Temporarily and Franchise Store Growth
Top-line Under Pressure Temporarily and Franchise Store Growth Total Revenues (mm) Net New Store Openings(1) (17.1)% 433.9 143 411.7 377.9 131 336.5 332.1 366.8 359.6 305.7 301.5 52 59 46 39 31 4 1 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24
Slide 19: Profitability
Achieved Consecutive Second Quarterly Adjusted Corporate EBITDA Profitability Q3 YOY 2022 2023 2024 (24 vs. 23) (1) 610bp Food and packaging 33.3% 35.1% 29.0% (1) Rental and property management fee 15.6% 19.3% 19.3% — (1) Payroll and employee benefits 22.8% 19.9% 16.9% 300bp (1) 110bp Other operatin
Slide 20: Near-Term Financial Priorities
Near-Term Financial Priorities Improve Adjusted Corporate EBITDA Margins(1) Optimize Cost Structure Deliver Sustainable Revenue Growth Expand Store-Level Profitability Accelerate Growth Franchise Store Network ____________________ (1) Calculated as adjusted corporate EBITDA as a percentage of total
Slide 21: Thank you!
About TH International Limited TH International Limited (Nasdaq: THCH) (“Tims China”) is the parent company of the exclusive master franchisees of Tim Hortons coffee shops in mainland China, Hong Kong. Tims China was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a sub