Th International Limited · NASDAQ:THCH
Th International — Q1 2023 Earnings Presentation
17 slides from Th International's earnings presentation, May 31, 2023
Slide 1: Tims China Q1 2023 Earnings Presentation
Tims China Nasdaq: THCH Q1 2023 Earnings Presentation May 30th, 2023
Slide 2: Disclaimer and Risk Factors
Disclaimer and Risk Factors Thi s presentation ("Presentation") is provided by TH International Limited (“THIL") for informational purposes only a nd does not constitute, or form a part of, an offer to sell, or the solicitation of a n offer to sell or an offer to buy, a ny securities.The i nformatio
Slide 3: 01. Business Update
01. Business Update Yongchen Lu, CEO & Director
Slide 4: Strong Top Line, Store Development and Loyalty Membership Growth
Strong Top Line, Store Development and Loyalty Membership Growth Q1’22 Q1’23 YoY % Total stores 424 648 52.8% Net new stores (1) 34 31 - Registered Loyalty club members (mm) 6.9 12.4 79.3% Digital orders % (2) 75.4% 79.1% 3.7ppts. Total revenues (RMBmm) 224.7 336.5 49.8% Revenues from company-owned
Slide 5: Strategic Expansion of Stores and Accelerated Franchising
Strategic Expansion of Stores and Accelerated Franchising Total stores Cities covered Store formats 1Q’22 1Q’23 648 617 7% 486 8% 440 5% 424 40 95% 85% 24 Company-owned Stores Franchised Stores 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 1Q‘22 1Q’23 Tims Express (Franchised) 31 Net New Store Openings in Q1’23 4 C
Slide 6: Tims Express: Innovative Format Accelerating Growth with Strong Partners
Tims Express: Innovative Format Accelerating Growth with Strong Partners “Tims Express” in Beijing “Tims Express” in Chengdu “Tims Express” in Hangzhou with Easy Joy with Century 21 Courtyard hotel with Ling Ka In August 2022, Tims China announced the opening of three Tims Express coffee shops with
Slide 7: Continuous Innovation with Localized Products
Continuous Innovation with Localized Products Oreo, Banana and Matcha Almond Milk Latte with Pork Our most popular Plant-Based Avocado with Coconut Cold Waffle Floss Croissant Latte Brew
Slide 8: A Unique Value Proposition: "Coffee Plus"
A Unique Value Proposition: “Coffee Plus” Percentage of orders with food Bagel selection Tims signature combos 37.3% 37.2% 38.5% 41.0% 43.7% 43.9% 47.1% 44.2% 15.2% 14.3% 13.8% 12.6% 9.1% 9.9% 13.9% 9.4% 29.4% 30.0% 31.9% 31.6% 28.2% 27.8% 28.6% 27.1% Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23
Slide 9: Growing E-commerce and Opening New Retail Channels
Growing E-commerce and Opening New Retail Channels Revenues from e-commerce sales Co-branded coffee products At-home coffee products 12.9 35.8% 9.5 Q1'22 Q1'23 (RMB mm) Tims & Oatly ready-to-drink (RTD) Liquid coffee and freeze-dried coffee coffee partnership
Slide 10: Addition of Popeyes Chicken Brand
Addition of Popeyes® Chicken Brand About Popeyes • Iconic brand with 50-year history • Distinctive menu with flavorful authentic food • One of the world’s leading chicken QSR brands • Over 4,100 locations globally Transaction • Exclusive rights to develop in mainland China and Macau • Transaction br
Slide 11: 02. Financial Highlights
02. Financial Highlights Albert Li, CFO
Slide 12: Top-line Driven by Net New Stores and Same-store Sales Growth
Top-line Driven by Net New Stores and Same-store Sales Growth Total Revenues (mm) Net New Store Openings 131 336.5 110 305.7 301.5 224.0 224.7 182.1 179.2 58 63 135.8 46 34 31 16 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Same-store Sales Growth f
Slide 13: Growing Loyalty Club Members and Digital Orders
Growing Loyalty Club Members and Digital Orders Number of Orders (mm) (1) Registered Loyalty Club Members (mm) 10.9 9.3 8.8 CAGR: 78.3% 6.5 6.0 5.5 4.1 4.4 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 12.4 11.3 Digital Orders% (2) 8.9 6.9 7.5 6.0 4.8 3.9 80.2% 79.8% 81.2% 79.1% 75.1% 75.4% Q2’21
Slide 14: Continuous Efforts to Improve Cost Structure
Continuous Efforts to Improve Cost Structure: Q1‘23 Adj. Store EBITDA Margin Improved by 13.8 ppts. Q1 2021 2022 2023 YOY Food and packaging(1) 32.7% 33.0% 35.9% Rental and property management fee(1) 27.3% 27.7% 23.0% 470bp Payroll and employee benefits(1) 35.8% 34.0% 23.5% 1050bp Adjusted store EBI
Slide 15: 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 Achieve Greater Economies of Scale ____________________ (1) Calculated as adjusted corporate EBITDA as a percentage of total revenue
Slide 16: 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
Slide 17: Q&A
Q&A