Luckin Coffee, Inc. · OTC:LKNCY
Luckin Coffee — Q2 2022 Earnings Presentation
18 slides from Luckin Coffee's earnings presentation, Aug 8, 2022
Slide 1: LKNCY 2022Q2 Earnings Presentation
LKNCY 2022Q2 Earnings Presentation August 8, 2022
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”), including non-GAAP operating income/loss, non-GAAP net income/loss, non-GAAP basic and diluted net income/loss per ADS. The presentat
Slide 3: Business Update and Financial Highlights
1 BUSINESS UPDATE 2 FINANCIAL HIGHLIGHTS
Slide 4: Business Update
J BUSINESS UPDATE luckin coffee | is
Slide 5: Solidified management team under an enhanced organizational structure
Solidified management team under an enhanced organizational structure c c c Jinyi GUO Reinout SCHAKEL Wenbao CAO Shan JIANG Chairman & Chief Strategy Officer Director & SVP SVP Chief Executive Officer c c c c Fei YANG Weiming ZHOU Gang WU Jing AN Chief Growth Officer SVP SVP Chief Financial Officer
Slide 6: Continued strong performance despite COVID headwinds
Continued strong performance despite COVID headwinds Total net revenue Average monthly SSSG(2) transacting customer(1) (self-operated stores) RMB3,299 million 20.7 million 41.2% +72.4% YoY increase +68.6% YoY increase Store-level operating GAAP Operating Store footprint(5) profit(3) income (self-ope
Slide 7: Go Big! Do Good! All Together!
Established sustainable development committee dedicated to sustainable growth Go Big ! Do Good ! All Together ! 7
Slide 8: Breakthroughs in technology to further enhance business operations
Breakthroughs in technology to further enhance business operations Hybrid MultiCloud Block Chain • IT infrastructure milestone • Data reliability • Officially launched in June • Pioneer in Block Chain X Fin • Capacity improvement 吧 • Data verification ～ support 5-10 mn orders/day • Finance & IC enha
Slide 9: Strong performance during pandemic-related headwinds due to our unique business model
Strong performance during pandemic-related headwinds due to our unique business model Popular among younger generation Integrated supply chain & hit products Store-mix & business model 9
Slide 10: Strengthened our brand awareness supported by successful new product launches
Strengthened our brand awareness supported by successful new product launches New transacting customers in Q2 10+ million • Professionalism • Youth Official account followers • Fashion • Wellness 30+ million 10
Slide 11: Product strategy: continue to focus on professionalism and good flavors
Product strategy: continue to focus on professionalism and good flavors Successful products LK roasting facilities 11
Slide 12: Extensive nationwide footprint provides us with significant competitive advantages
Extensive nationwide footprint provides us with significant competitive advantages 7,195 Stores Heilongjiang Jilin Self-operated stores: Neimenggu Beijing Liaoning 4,968 stores in 59 cities Tianjin Hebei Ningxia Shanxi Qinghai Gansu Shandong Shaanxi Henan Jia ng su Partnership stores: 2,227 stores i
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS luckin coffee | is
Slide 14: Another quarter of strong results: Over 70% growth in net revenues
Another quarter of strong results: Over 70% growth in net revenues and continued improvement in profitability profile, despite pandemic-related headwinds Q2 ’20 Q2 ’21 Q2 ’22 Total stores at end of quarter (1) 5,091 5,259 7,195 Net new stores # 79 308 615 # Average monthly transacting 8,945 12,285 2
Slide 15: Accelerated store growth: opened 615 net new stores
Accelerated store growth: opened 615 net new stores and entered 14 new lower- tier cites during the second quarter 615 7,195 Q2 ‘22 Unit Growth Total # of stores as of 30 June 2022 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’21 Q2 ’22 Total stores at end of the quarter 4,018 4,206 4,397 4,675 4,968 Self-operated Net n
Slide 16: Continued improvement in our profitability profile
Continued improvement in our profitability profile Reached operating profit margin of 7.3% in Q2, a material improvement YoY Store-level profit margin (1) % total net revenue (2) % total net revenue (2) % total net revenue (2) 30.6% 8.0% 26.2% 18.2% 23.1% 4.7% 15.0% 3.9% 3.3% (18.6)% 10.4% 0.6% Q2’2
Slide 17: Balance sheet, liquidity and cash generation
Balance sheet, liquidity and cash generation Cash and cash equivalents(1) Cash flow from operating activities RMB RMB Adjusted for RMB (553) USD175 million 619 4,474 million million settlement payment(2) million +70.7% YoY As reported increase Interest-bearing debt Free cashflow RMB RMB Adjusted for
Slide 18: luckin coffee | is
luckin coffee | is