Th International Limited · NASDAQ:THCH
Th International — Q4 2023 Earnings Presentation
20 slides from Th International's earnings presentation, Apr 18, 2024
Slide 1: Tims China Q4 2023 Earnings Presentation
Tims China Nasdaq: THCH Q4 2023 Earnings Presentation April 18th, 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: Strong Top Line, Store Development and Loyalty Membership Growth (Q4)
Strong Top Line, Store Development and Loyalty Membership Growth YoY % Q4’21 Q4’22 Q4’23 (23 vs 22) Total stores 390 617 912 47.8% (1) Net new stores 110 131 149 13.7% Registered Loyalty club members (mm) 6.0 11.3 18.7 65.5% (2) Digital orders % 75.1% 81.2% 83.6% 2.4ppts Total revenues (RMBmm) 224.0
Slide 5: Strong Top Line, Store Development and Loyalty Membership Growth (FY)
Strong Top Line, Store Development and Loyalty Membership Growth YoY % FY’21 FY’22 FY’23 (23 vs 22) Total stores 390 617 912 47.8% (1) Net new stores 253 227 295 30.0% Registered Loyalty club members (mm) 6.0 11.3 18.7 65.5% (2) Digital orders % 73.0% 80.1% 82.1% 2.0ppts Total revenues (RMBmm) 643.4
Slide 6: Strategic Store Expansion and Accelerated Franchising
Strategic Store Expansion and Accelerated Franchising Total stores Market entry Store formats 4Q’22 4Q’23 912 10% 763 21% 7% 700 617 648 4% 68 89% 39 69% 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 4Q‘22 4Q’23 Company-owned Stores Franchised Stores Tims Express (Franchised) 295 Net New Store Openings in FY23 82 N
Slide 7: Tims Express: Adding Bestore as a New Partner
Tims Express: Adding Bestore as a New Partner “Tims Express” in Beijing “Tims Express” in Chengdu “Tims Express” in Hangzhou with Easy Joy with Century 21 Courtyard by Marriott with Ling Ka “Tims Express” in Shanghai “Tims Express” in Subway “Tims Express” in Wuhan with Haier Sanyiniao Station with
Slide 8: Continuous Product Innovation that Satisfies Local Tastes
Continuous Product Innovation that Satisfies Local Tastes Jasmine Tea Latte Orange Flavored Cinnamon Strawberry Flavored Latte Cloud-Style Pie Latte
Slide 9: A Unique and Differentiated Value Proposition: Coffee Plus
A Unique and Differentiated Value Proposition: “Coffee Plus” Percentage of orders with food Signature combos and bagel sandwiches 38.5% 41.0% 43.7% 43.8% 47.1% 44.2% 50.0% 54.5% 54.7% +7.6ppts 18.2% 18.3% 13.2% 15.2% 13.8% 12.6% 14.3% 9.9% 13.9% 36.8% 36.3% 36.4% 30.0% 31.9% 31.6% 28.6% 27.1% 29.4%
Slide 10: Bagel Products Continue to Add More Sales to Stores
Bagel Products Continue to Add More Sales to Stores Bagel SKUs Wednesday Membership Day Campaign 15 17 12 14 14 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Number of bagels sold 7.0 6.4 4.8 3.3 3.5 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Number of bagels sold (mm)
Slide 11: Accelerating the Expansion of Our Sub-Franchised Network
Accelerating the Expansion of Our Sub-Franchised Network Total Sub-Franchise Stores Penetrated Into New Cities With Our Franchisees 283 304% 174 129 97 70 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 First store in Pinghu, a tier-3 city First store in Taiyuan, a tier-2 city located in Zhejiang Province located in
Slide 12: Building Community and Gaining Attention from the Younger Group
Building Community and Gaining Attention from the Younger Group Co-branding with Tims x Didi Collaboration with Cheng Lei Co-branding with Ele.me SpongeBob
Slide 13: Popeyes – Demonstrated Strong Momentum
Popeyes® – Demonstrated Strong Momentum Opening plan Opened 10 Popeyes Stores Favored by Costumers • Launched 10 Popeyes stores within a span of 135 days • Open 500 more stores in the next five years • Reach 1,700 Stores over the next decade Operating highlight ✓ Achieved positive adj. store EBITDA
Slide 14: 02. Financial Highlights
02. Financial Highlights
Slide 15: Record Top-line Driven by Net New Stores and Same-store Sales Growth
Record Top-line Driven by Net New Stores and Same-store Sales Growth Total Revenues (mm) Net New Store Openings 29.8% 436.4 149 411.7 391.2 131 305.7 301.5 336.5 224.7 63 179.2 46 52 34 16 31 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 System Sales
Slide 16: Growing Number of Loyalty Club Members and Digital Orders
Growing Number of Loyalty Club Members and Digital Orders Number of Orders (mm) (1) Registered Loyalty Club Members (mm) 66.3% 15.4 12.2 13.5 9.3 10.9 8.8 6.0 4.4 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 18.7 16.9 14.7 Digital Orders% (2) 12.4 11.3 8.9 6.9 7.5 82.6% 83.6% 80.2% 79.8% 81.2% 79
Slide 17: Continuous Efforts to Improve Cost Structure: Q4 Adj. Store EBITDA
Continuous Efforts to Improve Cost Structure: Achieved Positive Adj. Store EBITDA Despite Marco Headwinds and Intense Price Competition Q4 YOY 2021 2022 2023 (23 vs. 22) (1) 260bp Food and packaging 33.5% 32.8% 35.4% (1) 690bp Rental and property management fee 26.3% 27.9% 21.0% (1) 130bp Payroll an
Slide 18: Continuous Efforts to Improve Cost Structure: FY23 Adj. Store EBITDA Margin
Continuous Efforts to Improve Cost Structure: FY23 Adj. Store EBITDA Margin Improved by 9.2% FY YOY 2021 2022 2023 (23 vs. 22) (1) 160bp Food and packaging 33.7% 33.5% 35.1% (1) 420bp Rental and property management fee 27.8% 25.2% 21.0% (1) 660bp Payroll and employee benefits 32.3% 28.7% 22.1% (1) (
Slide 19: 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 20: 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 and Macau and Popeyes restaurants in mainland China and Macau. Tims China was founded by Cartesian