Opportunity Day 30 March 2017 - Draft - After You Public Company ...
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Draft Opportunity Day 30 March 2017
Draft Background and Business
Company History and Background
20 Branches
15 Branches
2016
11 Branches
• Started operation
2015
of new factory at
Samutsakorn
8 Branches
• Opened Crystal province
2014
Ratchapruk,
maharaj, Mega • Launched new
7 Branches Bangna, The Mall brand, Maygori
• Opened The Mall
2013 Bangkae and at The Common
Bangkapi and
SQ1 branches Future Park and SQ1
4 Branches Rangsit branches
2012 • Re-opened • Opened Terminal
Central World • Launched Open
• Closed Crumb 21 and Seacon
branch new brand,
2 Branches Square branches
• Opened Central Crumb at Central
2011 Embassy • Registered new
Ladprao, • Group • Converted to
Restructuring subsidiary,
Int-Intersec and Aurum and PCL
2 Branches • Increased
• Opened Paragon Silom Complex Aurum Co., Ltd
2010 branches registered capital
and Crystal Park to THB 50 mm • Increased
branches • Increased registered capital
1 Branch • Opened Central • Group registered capital to THB 80 mm
2009 World branch Restructuring to THB 54 mm for IPO
• Central World • Started Catering • Started new
• Opened La Villa Service
2007 branch was headquarter
Phaholyothin
closed due to the construction
branch
country crisis process
• The 1st After You
welcomed its • IPO on 23
customers at J December 2016
Avenue Thonglor
with registered
capital
THB 5 mm
Source: Company data as of 31 December 2016
Page 2
Company Business
Group Structure Revenue Contribution
After You Plc.
98.3% &
• Dessert café
1.4%
Catering & OEM
100%
0.3%
Others
Aurum and Aurum Co., Ltd
• Sourcing raw material
Note: Revenue portion of 2016
Dessert Café Overview
Established # Price Range
Name Location Style Products
year Branches (Bt./menu)
Bangkok Metropolitan Variety of products including cakes, cookies,
After You 2007 18 Dessert café 125 – 255
Region toasts, breakfast, and beverages
Maygori 2016 2 Bangkok Shaved ice dessert café Variety of shaved ice desserts 185 - 235
Total 20
Source: Company data as of 31 December 2016
Page 3
Board of Directors and Management Structure
Company’s Structure
Board of Directors Position
1. Mr. Premon Pinskul Chairman, ID & AC
Board of Audit
Directors Committee 2. Mr. Wiwat Kanokwatanawan Vice Chairman
3. Mr. Phiched Bhimayothin ID & Chairman of AC
Company
Secretary 4. Dr. Thamnoon Ananthothai ID & AC
Managing Internal 5. Mr. Maetup T.Suwan Director
Director Audit* 6. Ms. Gulapat Kanokwatanawan Director
7. Mr. Mill Kanokwatanawan Director
Deputy
Managing
Director Management Position
1. Mr. Maetup T.Suwan Managing Director
Assistant 2. Ms. Gulapat Kanokwatanawan Deputy Managing Director
Managing
Director 3. Mr. Mill Kanokwatanawan Assistant Managing Director
4. Mr. Songpon Tasnasathienkij Director of Operations
5. Ms. Uraiwan Samanwong Director of Manufacturing
6. Ms. Pornsirin Thongtan Director of Human Resource
Human Finance &
Operations Manufacturing Resource Accounting 7. Ms. Chamaiporn Tungkittisuwan Director of Finance & Accounting
* Outsourcing
Page 4
Draft Key Investment Highlights
Key Investment Highlights
1
Pioneer of Dessert
Café and Leader in
Product Innovations
5 2
Experienced and
Quality Products and
Visionary
Excellent Services
Management Team
4 3
Strategic Locations High Growth
under Multiple Potential with Strong
Formats Brand Awareness
Page 6
Pioneer of Dessert Café and Leader in Product Innovations
1
Traditional Coffee Shop Traditional Bakery Shop Traditional Dessert
Pioneer of Dessert Café
After You is dedicated to building great customer experience, offering products made from the finest
ingredients, keeping the highest standard of quality and service, and creating a unique cozy and
warmth atmosphere for everyone to enjoy
Page 7
Pioneer of Dessert Café and Leader in Product Innovations (Cont’d)
1
After You continuously offers new menus and recipes to enhance customers’ experience and satisfaction
Examples of New Product Launches in the Last 3 Years
Examples of New Product Launches in the Last 3 Years
Page 8
Pioneer of Dessert Café and Leader in Product Innovations
1
Customer’s Recognition
After You products receive overwhelming demand from customers and many award achievement from 2013 - 2016
Awards and Achievement
Customer-Focused Product and Service,
9th Best Marketers by FM 100.5 Popular restaurant Operational Best Practice, and Users’ choice award
Best Marketers 2013 2014 Wongnai Restaurant Awards Entrepreneurship Bakery & Cakes category
Bai Po Business Award 2015 Best of Wongnai 2015 & 2016
Page 9Quality Products and Excellent Services
2
Integrated End-to-End Operating Process with Strict Quality Control Standard
Factory/
Suppliers Branches Customers
Warehouse
• Using a strict • Achieving effective • Focusing on high quality of • Creating & strengthening
procurement procedure inventory management products & good services customer satisfaction as well as
(sourcing, quality, • Carefully control every stage • Offering wide ranges of building up a loyal
quantity, tastiness, of production products as well as regularly membership base
freshness, safety, pricing) introducing new products
Page 10High Growth Potential with Strong Brand Awareness
3
After You is strategically positioned to ride the next wave of growth opportunities
Continued Growth in Our “After You” and Sub Brands Launching New Brands or New Platforms
Continued Growth in Our “After You” and Sub Brands Launching New Brands or New Platforms
• Continuous growth through over 7% (2016) of Same Store Sale Growth • Leveraging our brands, our strong recognition and market
with new product introductions, price adjustment, seating arrangement position allows us to expand
and management of table turn times both domestically and
• Continuous growth through outlet expansion in potential strategic regionally by launching
locations in major cities of Thailand to reach 30 branches in 2018 new brands or new
• Potential growth through outlet expansion in ASEAN fast platforms
growing countries and/or other potential countries
Expanding OEM and Catering Growth of Food Industry
• With the new factory capacity, the Company has plenty of room to • In 2010 – 2015, CAGR of
grow in the OEM business under clients’ brand, co-brands or the food industry is 2.8%
Company’s brands as well as expanding catering business while the Company
• This can lead After You diversifying its revenue base and/or had outstanding
platform with more balanced revenue contribution from dessert café, CAGR at 85.2%
OEM, and catering • Food industry
trend is
continuing
growth at 6.0%
CAGR
from
2015 to 2019E
(Unit : THB
Source : Euromonitor 2010 2011 2012 2013 2014 2015E 2019E bn)
Page 11Strategic Locations under Multiple Formats
4
After You offers multiple store formats at high traffic in all strategic locations in Bangkok Metropolitan
Region to reach every target group of different genders, occupations, and lifestyles
Current Locations & Future Plan Outlet expansion Criteria
• After You’s current After You carefully study & analyze concerning traffic, location, target
branches (20 branches) customers, payback period and return on investment to expand both
covering all strategic domestically and regionally in multiple formats
locations of Bangkok
Metropolitan Region
Become anchor tenant
• After You plans to
Strategic High population density
expand branches to
and
potential strategic High traffic area &
landmark
locations in major cities visibility
location
of Thailand to reach 30 Growth potential area
branches in 2018
Have a good facilities Well –
Offering a wide range managed
of goods in different and well
Future Plan product categories equipped
Current Locations Manage by experienced shopping
management team mall
Sizable Sizable in terms of area
shop and lay out
Initial investment
~ THB 4.5 – 7.5 mm. Good rate
Meet minimum of return
required rate on
of
return investment
Payback period
Source: Company data as of 31 December 2016 ~ 1 – 2 years
Page 12Experienced and Visionary Management Team
5
Mr. Premon Pinskul Mr. Wiwat Kanokwatanawan Mr. Phiched Bhimayothin Dr. Thamnoon Ananthoth
Chairman, Independent Director Vice Chairman Independent Director and Independent Director and
and Audit Committee Chairman of Audit Committee Audit Committee
• Experienced in being Independent • Experienced in being Director and • Highly experienced in the field of food • Experienced in being Independent
director and Audit Committee member Management of listed companies industry especially factory management director and Audit Committee member
as well as management of leading • Director and CEO of Pakfood PCL as well as management of leading
• Consultant of Pakfood PCL
listed companies companies
• Directors of numerous companies in • Former Factory Manager of Pakfood
• Independent director and Chairman of frozen food and related industries • Independent director and Audit
AC of JAS Assets PCL PCL
Committee of Thai Union Group,
• CFO of Impact Electron Siam and Merchant Partner, Better World Green,
former CFO of GMM Grammy PCL IFS Capital
Mr. Maetup T.Suwan Ms. Gulapat Kanokwatanawan Mr. Mill Kanokwatanawan
Directors , Managing Director Directors, Deputy Managing Director Director, Assistant Managing Director
and Founder and Founder
• Founded After You and led After You • Founded After You and led After You • Experienced in the field of finance
from a small dessert café to a well- from a small dessert café to a well- and banking
known company known company
• Pioneered innovative dessert menu such
as Shibuya Honey Toast, Kagikori
Page 13Draft Key Financial Performance
Revenue Breakdown
Sales Same Store Sale Growth (SSSG)
606.4 26.7%
(THB mm)
414.4
(%)
311.1
188.8 9.2%
7.7%
2013 2014 2015 2016 2013 * 2014 2015 2016
No. of branches 8 10 15 20
Note: * There was no 2012 information for SSSG calculation
Average Sales per Branch
During 2013-2016, 98% - 99% of total revenue came from sales in After You
37.5 and Maygori dessert café. The sales grow continuously from new branch
34.8 opening and same store sale growth (SSSG)
32.2
The Company had 2.5 times its branches from 8 branches in 2013 to 20
(THB mm per branch)
25.0 branches in 2016, while sales increased at CAGR of 47.5% from 2013 - 2016
The Company had outstanding SSSG with new product introduction, price
adjustment, seating arrangement and management of table turn times
Average Sales per branch increase continuously from THB 25.0 mm per
branch in 2013 to THB 32.2 mm, THB 34.8mm, and THB 37.5 mm per branch
in 2014, 2015, and 2016 respectively
2013 2014 2015 2016
Page 15Financial Performance
Gross Profit & Gross Margin Net Profit & Net Profit Margin
16.2%
14.7%
63.5% 62.3% 64.1% 13.9%
98.8
(THB mm)
388.6
(THB mm)
48.4%
258.1
57.5
197.5 45.8
3.0%
91.3
5.6
2013 2014 2015 2016 2013 2014 2015 2016
Gross Margin % Gross Margin Net Profit % Net Profit
Return on Asset & Return on Equity
Gross Margin increased from 48.4% in 2013 to 63.5%, 62.3% and 64.1% in 2014
2015 and 2016, respectively because of the efficiency on cost control especially
75.2% cost management of raw materials used in production which is the main cost
of sales
51.5% Similarly to gross margin, net margin rose up from 3.0% in 2013 to 14.7% in
40.9% 2014, 13.9% in 2015 and 16.2% in 2016
Return on assets decreased sharply in 2016 due to increase in cash received
(%)
22.7%
21.3% from IPO in December 2016, leading to increase in total assets
20.4%
Similarly to return on assets, return on equity dramatically decreased in 2016
4.7% 14.7% due to increase in share premium from IPO in December 2016, leading to
increase in equity
2013 2014 2015 2016
Return on Assets (ROA) Return on Equity (ROE)
Page 16Financial Position
Balance Sheet Interest Bearing Debt/ Equity (IBD/E)
981.9
808.8
10.0
(THB mm)
(x)
363.8
246.8
202.5 201.2 173.1
95.0 106.2 117.0 1.3
18.7 0.5
15.4 0.1
2013 2014 2015 2016 2013 2014 2015 2016
Total Assets Total Liabilities Total Shareholders' Equity
Interest Coverage Ratio
Total assets increased significantly in 2016 mainly due to increase in cash
received from IPO in December 2016. Total assets of 2015 increased from 2013-
2014 because of the new assets booking from the new factory such as building
34.8 and equipment
Mainly decrease in total liabilities in 2016 was due to repayment of personal
loan. Total liabilities in 2015 increased from 2013 and 2014 in line with increase
in total assets because of loan for construction of the new factory and purchase
(x)
18.8 of equipment
16.7
Shareholders’ equity in 2016 dramatically increased due to increase in share
premium from IPO in December 2016
IBD/E decreased significantly because of the increase in paid up capital and
share premium
‐
During 2014 - 2016, the Company has the negative cash cycle which was (18),
2013 * 2014 2015 2016 (22) and (21) days because the Company gets cash from selling but receives the
0-30 days of credit term from suppliers
Note: * Having group restructuring in 2012 – 2013; therefore, interest coverage ratio cannot be calculated
Page 17Draft Q&A
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