Japan Foods Holding Ltd. · SGX:5OI
Japan Foods — FY2011 Earnings Presentation
30 slides from Japan Foods's earnings presentation, May 26, 2011
Slide 1: FY2011 Financial Results Presentation
JAPAN FOODS HOLDING LTD. FY2011 Financial Results Presentation 26 May 2011 This presentation have been reviewed by the Company's sponsor, CIMB Bank Bertad. Singapore Branch (‘Sponsor’) for compliance with the Singapore Exchange Securities Trading Limited (‘SGX-ST) Listing Manual Section B: Rules of
Slide 2: Important Notice
Important Notice DISCLAIMER This presentation is prepared for informational purposes only, without regard to the objectives, financial situation nor needs of any specific person. This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any
Slide 3: Corporate Profile
JAPAN FOODS HOLDING LTD. Corporate Profile
Slide 4: Company Snapshot
Company Snapshot = One of the leading Japanese restaurant chains in Singapore, managing various established brands of authentic Japanese fare » Founded in 1997 by our Executive Chairman and CEO, Mr. Takahashi Kenichi OUR BRANDS 10 Franchise Brands From Japan someTU * RGF Botejyu Hokkyokusei @F Ajino
Slide 5: Our Business
Our Business Self-Operated Restaurants Sub-Franchise and Franchise = Operates restaurants under the » Sub-franchises the “Ajisen Ramen” brand following brands: to other South East Asian countries: Restaurants in Singapore No. of Outlets* Ajisen Ramen Restaurant No. of Outlets* Ajisen Ramen 19 Indone
Slide 6: Latest Franchise Brand — Yonehachi
Latest Franchise Brand — Yonehachi Set up in Tokyo in 1977, Yonehachi is a traditional restaurant which has since > “> expanded into a chain with more than 150 outlets all over Japan. Serving traditional Okawa rice, Yonehachi uses top-quality rice from northern Japan like Iwate, Fukushima and Akita.
Slide 7: FY2011 Financial Highlights
—“, - = - y _ Iw SS PROP CEPARA TO “ = + & EME _—— a E - ; SO ~ * —— 7 << = Sr b a JAPAN FOODS HOLDING LTD. FY2011 Financial Highlights
Slide 8: Overview of FY2011
Overview of FY2011 Higher revenue Wider network More brands Higher expenses One-time impairment charge JAPAN FOODS HOLDING LTD.
Slide 9: Updates on Self-operated Restaurants
Updates on Self-operated Restaurants Restaurants No. of Outlets No. of Outlets As at 31 March 2010 As at 31 March 2011 Ajisen Ramen 17 19 * Opened “Ajisen Gourmet Town” at Nex Shopping Mall in December 2010 * Opened Clementi Mall cutlet in February 2011. Aji Tei 2 - +» Closed Plaza Singapura outlet
Slide 10: Updates on Sub-franchisees and Franchisee
Updates on Sub-franchisees and Franchisee Restaurants Ajisen Ramen* -Opened Miri (Sarawak) outlet in March 2017 Aji Tei* TOTAL * operated by sub-franchisees # operated by franchisee JAPAN FOODS HOLDING LTD. No. of Outlets No. of Outlets As at 31 March 2010 As at 31 March 2011 4 in Indonesia 4 in Ind
Slide 11: Financial Highlights
Financial Highlights Period Ended 31 March S$'million Revenue Gross Profit Gross Profit Margin (%) EBIT EBITDA Net Profit After Tax (NPAT) NPAT Margin (%) Earnings Per Share — Fully Diluted (S’pore cents) JAPAN FOODS HOLDING LTD. FY2010 43.7 34.1 77.9% 5.8 8.7 46 10.4% 5.18 FY2011 50.4 39.1 77.5% 3.
Slide 12: Revenue
Revenue S$'m 60 CAGR : 27.9%
Slide 13: Revenue Mix by Brands
Revenue Mix by Brands S$m 35 5 30 28.8 25. 25 20 | 15 10 | ps 45 4.5 5 26 1A 3.0 273° 2 2 erence e a s Sy s Fo as a & oe s eS ce OS se =F ? of oe s >) ? . ¥ & ee” & eo o ¢ S yw Ss * & os (C) wFY2010 mFY2011 JAPAN FOODS HOLDING LTD. 13
Slide 14: Revenue Breakdown
Revenue Breakdown FY2010 FY2011 Others, 2.2% Others, 8.8% 6.1 Franchise, 0.5% Botejyu, 3.3% Sub Franchise, 0.5% Botejyu, 1.8% Aoba, 5.4% ‘ Fruit Paradise, 2.8% Aoba, 8.9% Manpukil, BIS Fruit Paradise, 6.4% Manpuku, 5.8% Japanese Gourmet Town, 6. Japanese Gourmet Town, 7.7% Hokkyokusei, 0.1% Aji Tei,
Slide 15: Gross Profit and Margin
Gross Profit and Margin S$ mill CAGR : 27.5% 40 - 10 + FY2006 FY2007 JAPAN FOODS HOLDING LTD. 73.9% FY2008 Fy2009 a y——2 - , ~ -_ < =a gE * 2 as ins. me, ag ~~, FY2011 + 100%
Slide 16: Net Profit
Net Profit S$ mill 5) =e CAGR : 44.3% 4 3 : ' F ; . “ FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 JAPAN FOODS HOLDING LTD. “16:
Slide 17: Dividend
Dividend S'pore cents 0.8 0.6 0.4 0.2 FY2010 FY2011 1 Includes the interim tax-exempt (one-tier) dividend of 0.3 cents per ordinary share in the capital of the Company 2 Includes the interim tax-exempt (one-tier) dividend of 0.4 cents per ordinary share in the capital of the Company —Ww f/f ™ el “Ve
Slide 18: Balance Sheet
Balance Sheet As at 31 March 2010 As at 31 March 2011 Change (%) Current Assets 11.4 11.4 - Non-Current Assets 12.2 14.0 A 149 Total Assets 23.6 25.4 A 7.3 LIABILITIES Current Liabilities 8.1 6.8 Vv 16.1 Non-Current Liabilities 2.1 1.1 Vv 48.6 Total Liabilities 10.2 7.9 Vv 22.7 EQUITY Share Capital
Slide 19: Cash Flow
Cash Flow S$ 'm Net cash provided by operating activities Net cash used in investing activities Net cash provided by / used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year JA
Slide 20: Key Financial Ratios
Key Financial Ratios Cash and bank balances (S$’mill) Total assets (S$'mill) Total equity (S$’mill) Net cash ratio (%) Net asset value per share (S’pore cents) Net cash per share (S'pore cents) JAPAN FOODS HOLDING LTD. FY2010 8.4 23.6 13.4 39.1 15.23 5.96 FY2011 7.6 25.4 17.5 34.9 18.17 6.34 Change
Slide 21: Outlook and Strategy
JAPAN FOODS HOLDING LTD. Outlook and Strategy
Slide 22: Outlook & Strategy
Outlook & Strategy Intense Competition Consumers faced with numerous F&B choices Rising Costs Rising labour and rental costs JAPAN FOODS HOLDING LTD. Brand Diversification Network Expansion & Consolidation Cost Control Overseas Expansion 22
Slide 23: Strategy — Brand Diversification
Strategy — Brand Diversification Acquire new franchises from Japan Develop new innovative concepts JAPAN FOODS HOLDING LTD. Grow the “multi-brand” concept Captures wider consumer segments Caters to changing consumer tastes Allows us to mix and match, and quickly respond to market demand 23
Slide 24: Strategy — Network Expansion & Consolidation
Strategy — Network Expansion & Consolidation ™ Develop “Ajisen Ramen” into a household fast cas ual restaurant chain in Singapore oN “A - Open new outlets selectively Y a a Close down or convert non-performing.olitlefs y™ 4 / Explore opportunistic acquisitions JAPAN FOODS HOLDING LTD. . oa
Slide 25: Strategy — Cost Control
Strategy — Cost Control JAPANFOODSHOLDINGLTID. ~~ “<<
Slide 26: Strategy — Overseas Expansion
Strategy — Overseas Expansion Expand geographically via franchising or strategic joint ventures (“JVs”) Form JVs with F&B groups in Malaysia, Indonesia, and Vietnam Leverage on strategic partnership with Ajisen (China) Holdings Limited to expand into Hong Kong and China JAPAN FOODS HOLDING LTD. 26
Slide 27: Strategy — Overseas Expansion
Strategy — Overseas Expansion Non-binding MOU with Ajisen (China) Holdings Limited and Shigemitsu Industry Co., Ltd. Ajisen (China) Holdings Limited Shigemitsu Industry Co., Ltd. sListed on the Main Board of the Stock Exchange of Hong Kong Limited *Owner and franchisor of the “Ajisen Ramen” brand «O
Slide 28: Investment Highlights
JAPAN FOODS HOLDING LTD. Investment Highlights
Slide 29: Investment Highlights
Investment Highlights ? AJISEN Established market presence and brand B/ BER recognition, with scalable business model Continuously innovating and introducing new, quality and authentic Japanese cuisines Growing F&B industry in Singapore and regionally ~ —lY Potential to expand in the region JAPAN FO
Slide 30: Thank You
JAPAN FOODS HOLDING LTD. Thank You