Luckin Coffee, Inc. · OTC:LKNCY
Luckin Coffee — Q1 2022 Earnings Presentation
20 slides from Luckin Coffee's earnings presentation, May 24, 2022
Slide 1: Luckin Coffee First Quarter 2022 Earnings Presentation
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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: Experienced and tested management team with proven execution skills
Experienced and tested management team with proven execution skills Ls o/) <> Jinyi GUO Reinout SCHAKEL Shan JIANG Chairman & CEO CFO & CSO SVP } <i” Fei YANG Wenbao CAO Weiming ZHOU Gang WU Chief Growth Officer Director & SVP SVP SVP -* luckin coffee | i .
Slide 4: Q1 2022 key results: revenue and same-store sales growth
(RMB billions) 95% 556 1% + 90% 2.40 72% 76% + 276% 44% 42% 1.27 148 21Q1 22Q1 21Q1 21Q2 21Q3 21Q4 22Q1 21Q1 22Q1 21Q1 21Q2 21Q3 21Q4 22Q1 Notes: (1) Total net revenues include revenues from product sales and revenues from partnership stores. (2) Same-store sales growth for self-operated stores. Def
Slide 5: Our mission, vision and values
Our mission: Our values: To create lucky moments and inspire Craftsmanship Ownership Our vision: To build a world-class coffee brand and become part of everyone’s daily life Integrity Innovation Cooperation 5
Slide 6: People, Products and Places pillars
Technology will continue to be the driving force in building a new consumption and new retail business model supported by three pillars of “People, Products and Places” Products luckin coffee) i .
Slide 7: Professionalism, Youth, Fashion, Wellness
Professionalism Wellness Youth Fashion 7
Slide 8: Premium coffee beans, own roasting, data-driven R&D
Source premium coffee beans Established our own Utilize data and digitalized from renowned plantations coffee roasting facility systems in product R&D process 8
Slide 9: 6,500+ stores across China
6,500+ Stores Heilongjiang Jilin Self-operated stores: 4,675 stores in ~50+ cities Beijing Liaoning Inner Mongolia Hebei Tianjin Shanxi Gansu Shandong Shaanxi Ji an Henan gs Chongqing Hubei Anhui u Shanghai Partnership stores: Sichuan Zhejiang 500+ stores Yunnan Guizhou Hunan Jiangxi Fujian 1,905 st
Slide 10: Attraction, Retention, Efficiency
Attraction Retention Standardization Efficiency Visualization 10
Slide 11: Store network, cost structure and product development
Store Cost Brand Product Emergency Network Structure Reputation Development Plan ~48% of our Small-scale pick- self-operated stores up stores with are in office buildings low fixed costs Well-balanced ~12% of our self- mix of full-time operated stores and part-time 22Q1 launched Grid-based supply ar
Slide 12: Restructuring timeline and emergence from bankruptcy proceedings
July 2020 Appointment of “Light-Touch” Joint Provisional Liquidators in the Cayman Islands December 2020 Reached settlement with SEC March 2021 Entered into Restructuring Support Agreement ("RSA") with majority of convertible bondholders April 2021 Signed investment agreement with existing sharehold
Slide 13: Independent investigation and swift remediation actions
March 2020 July 2020 Independent Special Committee formed Swift action to implement recommendations by the to conduct independent investigation Special Committee to remove those responsible 13
Slide 14: Corporate governance and internal controls improvements
Engaged professional firms to advise us on corporate governance and internal controls Restructured management Strengthened payment, team, streamlined reporting accounting, IT, financial lines, and recruited new disclosure and other talents for key finance, legal, important controls and compliance po
Slide 15: Key operating and financial metrics
Total stores at end of quarter (1) 5,012 4,951 6,580 Net new stores # 223 148 556 # Average monthly transacting 6,609 8,728 15,975 customers (‘000) (2) Revenue (RMB million) 565 1,269 2,405 Revenue growth (%) 18.1% 124.5% 89.5% Operating profit (RMB million) (874) (364) 16 Revenue - self-operated st
Slide 16: Store strategy: self-operated and partnership
Strategy: Self-operated Total stores at end of 4,511 3,939 4,675 the quarter ü Focus on higher tier cities Net new openings +4 +10 +278 ü Increase penetration in existing cities ü Strict new store opening criteria Total cities at end of 55 56 56 the quarter Strategy: Partnership Total stores at end
Slide 17: Partnership model is highly complementary to self-operated model
me 1 a a =) a Partnership model is highly complementary to our self-operated store model and has several attractive features
Slide 18: Store level profit and operating expenses
Store-level profit margin (1) (%) % total net revenue (2) % total net revenue (2) % total net revenue (2) 20.3% 42.9% 31.6% 7.2% 6.2% 21.5% 4.5% 1.6% 5.5% 13.4% 0.9% -73.1% Q1’20 Q1’21 Q1’22 Q1’20 Q1’21 Q1’22 Q1’20 Q1’21 Q1’22 Q1’20 Q1’21 Q1’22 Store level profit Sales & marketing General & administ
Slide 19: Cash, debt and cash flow
(RMB million) Cash and cash equivalents (1) 7,871 4,878 5,021 Interest-bearing debt 3,740 3,014 802 Cashflow from operating activities (1,034) (233) 108 Capital expenditure (233) (32) (70) Free cashflow (1,267) (265) 38 Notes (1) Includes restricted cash and liquid investments. Investments do not in
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