Th International Limited · NASDAQ:THCH
Th International — Q2 2024 Earnings Presentation
17 slides from Th International's earnings presentation, Aug 29, 2024
Slide 1: Tims China Q2 2024 Earnings Presentation
Tims China Nasdaq: THCH Q2 2024 Earnings Presentation August 29, 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: Aggregate Financing of up to $65 million
Achieved First-ever Adjusted Corporate EBITDA Profitability and Secured Aggregate Financing of up to $65 million Q2 YOY 2022 2023 2024 (24 vs. 23) (1) 309bp Food and packaging 35.8% 34.0% 30.9% (1) Rental and property management fee 34.9% 20.8% 19.3% 148bp (1) Payroll and employee benefits 39.1% 21.
Slide 5: Resilient Top Line & Loyalty Membership Highlights
Resilient Top Line & Loyalty Membership Highlights YoY % Q2’22 Q2’23 Q2’24 (24 vs 23) (1) Total stores 440 700 907 29.6% (2) Net new stores 16 52 1 (98.1)% Registered Loyalty club members (mm) 7.5 14.7 21.4 45.4% (3) Digital orders % 80.2% 80.6% 86.5% 5.9ppts Total revenues (RMBmm) 179.2 411.7 366.8
Slide 6: Focus on Profitable & Capital-Efficient Growth Delivery
Focus on Profitable & Capital-Efficient Growth Delivery Total stores(1) Market entry Store formats 2Q’23 2Q’24 902 906 907 14% 9% 23% 759 700 9% 71 42 82% 63% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 2Q‘23 2Q’24 Company-owned Stores Franchised Stores Tims Express (Franchised) 1 Net New Store Openings in 2024Q2
Slide 7: Our Trademark Strategic Vision: Product Innovation Pleasing Local Tastes
Our Trademark Strategic Vision: Product Innovation Pleasing Local Tastes Floral Latte Beef & Egg Farmer's Roll Natural Milk Latte Real Juice Fruits Americano
Slide 8: Our Differentiated Value Proposition: "Coffee Plus"
Our Differentiated Value Proposition: “Coffee Plus” Percentage of orders with food Signature combos and bagel sandwiches 43.7% 43.8% 47.1% 44.2% 50.0% 54.5% 54.7% 52.7% 51.9% +1.9ppts 18.2% 18.3% 13.2% 17.2% 15.6% 15.2% 13.8% 12.6% 14.3% 36.8% 36.3% 36.4% 35.5% 36.2% 30.0% 31.9% 31.6% 29.4% Q2’22 Q3
Slide 9: Bagel Products Empower "Coffee Plus" Strategy Through All Seasons
Bagel Products Empower “Coffee Plus” Strategy Through All Seasons Bagels are Half Off on Wednesday Bagel SKUs 23 26 15 17 14 14 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Number of bagels sold 7.0 6.4 5.5 6.0 4.8 Q2’23 Q3’23 Q4’23 Q1'24 Q2'24 Number of bagels sold (mm)
Slide 10: Building Family-Friendly Community, Attracting Gen Z and Gen Alpha
Building Family-Friendly Community, Attracting Gen Z and Gen Alpha Collaborated with Suzhou Museum Tims x Minglan IP Children’s Day Campaign
Slide 11: 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 158% 333 302 283 174 129 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Penetrated into Luoyang in Henan Province, with 2 stores opened in Q2, 2024 Revenues from Sub-Franchise Business (mm)
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 3600+ 2-3 years Individual franchise stores Individual Franchise stores already located across 12 provinces: Opened # 21 Shanghai、Beijing、Zhejiang、Jiangsu、Anhui、 Signed # 5
Slide 13: 02. Financial Highlights
02. Financial Highlights
Slide 14: Resilient Top-line Driven by Digital Sales and Franchise Store Growth
Resilient Top-line Driven by Digital Sales and Franchise Store Growth Total Revenues (mm) Net New Store Openings(1) (10.9)% 433.9 143 411.7 377.9 131 336.5 332.1 366.8 305.7 301.5 179.2 52 59 46 16 31 4 1 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23
Slide 15: Steady Growth of Loyalty Club Members and Digital Orders
Steady Growth of Loyalty Club Members and Digital Orders Number of Orders (mm) Registered Loyalty Club Members (mm) 45.4% 15.4 13.3 13.5 12.3 13.3 9.8 10.9 9.2 4.7 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 21.4 20.0 18.5 Digital Orders% (1) 16.9 14.7 11.3 12.4 8.9 7.5 85.4% 86.5% 82.6% 8
Slide 16: 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 Franchising Store Development ____________________ (1) Calculated as adjusted corporate EBITDA as a percentage of total r
Slide 17: 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