Japan Foods Holding Ltd. · SGX:5OI
Japan Foods — Q1 FY2017 Earnings Presentation
26 slides from Japan Foods's earnings presentation, Aug 4, 2016
Slide 1: Financial Results Presentation
Financial Results Presentation August 2016 This presentation has been reviewed by the Company’s sponsor, CIMB Bank Berhad, Singapore Branch (“Sponsor”) for compliance with the Singapore Exchange Securities Trading Limited (“SGX-ST”) Listing Manual Section B: Rules of Catalist. The Sponsor has not in
Slide 2: Important Notice
Important Notice DISCLAIMER This presentation is prepared for information 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 of
Slide 3: Overview of 1Q2017
JAPAN FOODS HOLDING LTD. Overview of 1Q2017
Slide 4: Performance at a Glance
Performance at a Glance Revenue Gross Profit 1Q2017: S$16.8 million S$14.2 million 1Q2016: S$15.8 million S$13.2 million Net Profit EBITDA 1Q2017: S$2.9 million S$1.3 million 1Q2016: S$1.1 million S$2.6 million 4
Slide 5: Our Growing Brand Portfolio
Our Growing Brand Portfolio 10 Franchise Brands from Japan Ajisen Ramen Hanamidori Boteyju Boteyju San Keika Ramen Kazokutei Menya Musashi Menzo Butao Osaka Ohsho Yonehachi 5 Self-Developed Brands 1 Franchise Brand from Malaysia New ManLee Bak Kut Teh 5
Slide 6: Our Network
Our Network As at 30 June 2016 The Group, together with its sub- franchisees, operates a total of 56 restaurants and food court outlet under various brands in Singapore, Malaysia and Vietnam. It also has interests in 13 restaurants in Hong China Kong and China through associated companies. Hong Kong
Slide 7: Updates on our Singapore Network
Updates on our Singapore Network Self-Operated Updates No. as at No. as at Restaurants 30 Jun 16 30 Jun 15 Ajisen Ramen • Converted Clementi Mall restaurant to New ManLee Bak Kut Teh restaurant in December 2015 15 17 • Closed Tiong Bahru Plaza restaurant in December 2015 • Converted Osaka Ohsho rest
Slide 8: Updates on our Overseas Network
Updates on our Overseas Network Restaurants Updates No. of Outlets No. of Outlets As at 30 June 2016 As at 30 June 2015 Ajisen Ramen1 Closed 2 restaurants in Johor Bahru, Malaysia 4 in Malaysia 6 in Malaysia Closed 1 restaurant in Ho Chi Minh City, Vietnam 2 in Vietnam 3 in Vietnam Menya Musashi
Slide 9: Financial Highlights 1Q2017
Financial Highlights 1Q2017 (Three months ended 30 June 2016)
Slide 10: Financial Highlights – 1Q2017/2016
Financial Highlights – 1Q2017/2016 S$’ m (Three months ended 30 June 2016) 1Q2017 1Q2016 Change (%) Revenue 16.8 15.8 6.4 Gross Profit 14.2 13.2 7.5 Gross Profit Margin (%) 84.5 83.6 0.9 pts EBIT 1.6 1.3 23.1 EBIT margin (%) 9.4 8.0 1.4 pts EBITDA 2.9 2.6 11.5 EBITDA margin (%) 17.3 16.4
Slide 11: Revenue (S$' m)
Revenue (S$’ m) CAGR : 4.5% YOY : 6.4% 62.8 62.7 62.8 61.3 56.1 50.4 15.8 16.8 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1Q2016 1Q2017 11
Slide 12: Revenue Mix by Brands (S$' m)
Revenue Mix by Brands (S$’ m) 1Q2017 1Q2016 7.2 6.3 3.4 3.1 2.6 2.0 2.1 0.9 0.9 0.9 0.9 0.9 0.7 0.7 0.03 0.02 Ajisen Ramen* Menya Musashi Kazokutei Fruit Paradise Japanese Gourmet Osaka Ohsho Others Sub Franchise Town * Includes Keika Ramen 12
Slide 13: Revenue Breakdown
Revenue Breakdown 1Q2017 1Q2016 Sub-Franchise, Sub-Franchise, Fruit Paradise, Fruit Paradise, 0.2% 0.2% Japanese 5.5% 5.4% Japanese Gourmet Town, Gourmet Town, 4.0% 4.4% Others, 6.0% * Others, 15.6% Ajisen Ramen, * 37.1% Osaka Ohsho, 13.6% Ajisen Ramen, 45.5% Osaka Ohsho, 12.0% Menya Musashi, 19.3%
Slide 14: Performance of Flagship Brands: Ajisen Ramen
Performance of Flagship Brands AJISEN RAMEN 20 outlets 19 outlets** 19 outlets* contributed contributed contributed S$7.1m S$7.2m S$6.3m 0.1 0.4 1.5 1.3 1.0 0.1 5.5 5.5 5.2 1Q2015 1Q2016 1Q2017 *include 2 Keika outlets Existing Outlets Closed Outlets New Outlets ** include 1 Keika outlet 14
Slide 15: Performance of Flagship Brands: Menya Musashi
Performance of Flagship Brands MENYA MUSASHI 8 outlets 9 outlets 8 outlets contributed contributed contributed S$2.8m S$3.1m S$3.4m 6.0 2.2 1.2 1.5 0.5 0.5 1.1 1.1 1.2 1Q2015 1Q2016 1Q2017 Existing Outlets Closed Outlets New Outlets 15
Slide 16: Performance of Flagship Brands: Osaka Ohsho
Performance of Flagship Brands OSAKA OHSHO 5 outlets 7 outlets 6 outlets contributed contributed contributed S$1.9m S$2.1m S$2.0m 0.3 5.0 0.5 0.4 0.7 0.2 1.3 1.3 1.3 1Q2015 1Q2016 1Q2017 Existing Outlets Closed Outlets New Outlets 16
Slide 17: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin S$’ m 60 CAGR : 6.2% YOY : 7.5% 100% 83.4% 84.2% 84.5% 80.1% 81.6% 83.6% 77.5% 78.3% 40 50% 51.2 52.3 52.9 49.1 43.9 20 39.1 13.2 14.2 0 0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1Q2016 1Q2017 17
Slide 18: Net Profit
Net Profit S$’ m CAGR : 8.7% YOY : 24.1% 8 7.3 6.4 6 4.7 4 3.7 3.8 2.5 2 1.3 1.1 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1Q2016 1Q2017 18
Slide 19: Cash Flow
Cash Flow 3 months ended 3 months ended S$ ’m Change (%) 30 June 2016 30 June 2015 Net cash provided by operating activities 3.8 2.7 40.7 Net cash used in investing activities (1.4) (1.2) 16.7 Net cash used in financing activities (0.3) - NM Net increase in cash and cash equivalents 2.2 1.5 46
Slide 20: Key Financial Ratios
Key Financial Ratios As at 30 June As at 31 March Change (%) 2016 2016 Cash and cash equivalents (S$’m) 19.3 16.9 14.2 Total assets (S$’m) 41.2 38.9 5.9 Total equity (S$’m) 32.2 30.9 4.2 Net cash ratio (%) 59.9 54.7 5.2 pts Net asset value per share (S’pore cents) (1) 18.49 17.74 4.2 Net c
Slide 21: Investment Highlights
JAPAN FOODS HOLDING LTD. Investment Highlights
Slide 22: Four-Pronged Strategy
Four-Pronged Strategy Development of Overseas Cost & Quality Network New Concepts Expansion Control Expansion & Consolidation Launch new Via strategic Via central kitchen, franchised and self- investments such as bulk purchase and Grow network developed brands acquisitions, joint economies of scale
Slide 23: Investment Highlights
Investment Highlights Established market presence and brand recognition Continuously innovating and introducing new quality cuisine Scalable business model in Singapore. Intends to seek opportunities to expand its presence in the ASEAN region Target annual dividend payout ratio of not less than 40%
Slide 24: Dividend History
Dividend History Dividend Per Share Dividend Payout (Singapore cents) Ratio (%) 3.00 92.2% 100% 2.50 0.50 73.5% 80% 0.60 2.00 1.00 60% 1.00 1.50 53.2% 1.27 1.25 31.0% 45.0% 40% 1.00 30.0% 0.70 20% 0.50 0.40 1.10 0.90 0.73 0.75 0.40 0.35 0.00 0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Interim Final
Slide 25: Exploring Regional Opportunities
Exploring Regional Opportunities The Group will continue its efforts to seek opportunities to expand its presence in the ASEAN region by way of joint ventures, acquisitions and/or sub-franchising of its brands. 25
Slide 26: Thank You
JAPAN FOODS HOLDING LTD. Thank You
Japan Foods Holding — Q1 FY2017 Earnings Presentation on 6ix