BreadTalk Group Limited Financial Results Third Quarter 2016 Bakery Food Atrium Restaurant
3Q 2016 FINANCIAL HIGHLIGHTS Income Statement Highlights S$ Million 3Q 2016 3Q 2015 Y/Y 9M 2016 9M 2015 Y/Y Revenue 157.3 161.7-2.7% 461.7 469.1-1.6% Bakery 78.6 78.6-0.1% 229.2 232.4-1.4% Food Atrium 40.6 45.8-11.4% 120.8 130.2-7.3% Restaurant 38.2 37.3 2.4% 111.7 106.4 4.9% EBITDA 21.1 19.4 8.7% 59.4 55.6 6.8% Bakery 10.6 4.4 142.0% 24.5 16.0 52.8% Food Atrium 3.1 5.0-37.9% 5.4 14.9-63.6% Restaurant 8.0 8.2-2.5% 21.9 20.3 8.0% Others (0.7) 1.8-137.5% 7.6 4.3 74.3% EBITDA margin 13.4% 12.0% +1.4 ppt 12.9% 11.9% +1.2 ppt Bakery 13.5% 5.6% +7.9 ppt 10.7% 6.9% +3.8 ppt Food Atrium 7.7% 10.9% -0.4 ppt 4.5% 11.5% -7.0 ppt Restaurant 21.0% 22.0% -1.0 ppt 19.6% 19.1% +0.5 ppt Net profit 3.3 1.6 107.7% 7.0 6.5 8.5% EPS (cents) 1.16 0.56 108.5% 2.49 2.29 8.9% 2
GROUP KEY FINANCIAL HIGHLIGHTS REVENUE MIX BY BUSINESS REVENUE MIX BY GEOGRAPHY EBITDA MIX BY BUSINESS Restaurant $111.7m 24% 23% 9M 2016 Hong Kong $52.1m 11% 12% Others $27.6m 6% 5% 9M 2016 Others $7.6m 13% 8% 9M 2016 29% Bakery $24.5m 41% 28% Food Atrium $120.8m 26% 9M 2015 49% Bakery $229.2m 50% China $130.9m 28% 31% 9M 2015 52% $251.0m 55% Restaurant $21.9m 37% 36% 9M 2015 27% Food Atrium $5.4m 9% 9M 2016 REVENUE: S$461.7M 9M 2016 REVENUE BY GEOGRAPHY 9M 2016 EBITDA: S$59.4M 3
3Q 2016 FINANCIAL HIGHLIGHTS Balance Sheet Highlights S$ Million 3Q 2016 FY 2015 Total assets 528 545 Cash and cash equivalents 112 95 Accounts receivables 61 74 Inventories 10 10 Current assets 183 179 Property, plant and equipment 186 206 Investment securities 90 90 Non-current assets 344 366 Total liabilities 382 399 Accounts payables 82 94 Current liabilities 206 262 Non-current liabilities 176 136 Borrowings and debt securities 192 202 Short term 30 82 Long term 162 120 Net debt 80 107 120 110 100 90 80 70 CASH & CASH EQUIVALENT VS NET DEBT FY14 FY15 1Q16 2Q16 3Q16 Cash and cash equivalents (S$ Million) Net debt (S$ Million) 4
3Q 2016 FINANCIAL HIGHLIGHTS Cash Flow Highlights S$ Million 3Q 2016 3Q 2015 FY 2015 Operating cash flow before working capital changes 26 20 83 Net cash flow from operating activities 34 23 66 Less: Capital expenditure (13) (8) (37) Investment in associate & joint venture (1) - (3) Net cash flow used in investing activities (14) (7) (58) Free cash flow 20 15 26 Net (decrease) increase in bank borrowings (10) (18) 4 Net cash flow used in financing activities (19) (21) (10) Net cash flow 1 (6) (1) 5
3Q 2016 FINANCIAL HIGHLIGHTS Financial Ratios 9M 2016 9M 2015 FY 2015 Trade Receivables Turnover (days) - Franchisee 83 78 93 Trade Receivables Turnover (days) - Non franchisee 2 2 2 Total Receivables Turnover (days) 7 7 8 Inventory Turnover (days) 31 25 24 Trade Payables Turnover (days) 29 28 27 Cash Conversion Cycle (days) 8 3 4 Net Debt/Shareholder's Equity 0.63x 1.11x 0.83x Net Debt/EBITDA 1.31x 2.11x 1.38x EBITDA/Interest expense 13.23x 13.92x 14.56x 6
STRONG PRESENCE ACROSS ASIA Strong foothold across 17 territories in Asia and Middle East OUTLET DISTRIBUTION BY GEOGRAPHY OUTLET DISTRIBUTION BY BUSINESS SEGMENT 166 Thailand 6 FY 2015 Net Increase/ (Decrease) 9M 2016 Bakery 862 (15) 847 Direct Operating 266 (8) 258 Franchise 596 (7) 589 China 421 Food Atrium 65 (8) 57 Others 343 Restaurant 30 2 32 Din Tai Fung 22 2 24 Ramen Play 6 0 6 San Pou Tei 2 0 2 7
BAKERY DIVISION REVENUE 9M 2016 REVENUE BY GEOGRAPHY 300 250 200-1.4% International 2% 150 100 Hong Kong 10% SEA* 1% 50 FY10 FY11 FY12 FY13 FY14 FY15 9M15 9M16 Revenue (S$ Million) EBITDA 43% 27 22 17 11.0% 9.3% 8.6% 8.8% 10.7% 12.0% 11.0% 10.0% 9.0% China 44% 12 7 2 7.8% 7.3% 6.9% FY10 FY11 FY12 FY13 FY14 FY15 9M15 9M16 EBITDA (S$ Million) Margin (%) 8.0% 7.0% 6.0% 5.0% *Including SEA are Malaysia, Thailand, Philippines, Indonesia, Vietnam and Cambodia # Including International are Kuwait, Sri Lanka, Bahrain, Oman, Saudi Arabia and Qatar 8
BAKERY DIVISION NUMBER OF BAKERY OUTLETS 9M 2016 OUTLET DISTRIBUTION BY GEOGRAPHY 1000 862 847 International 31 800 600 SEA* 278 China 392 400 200 129 122 Hong Kong 24 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 9M16 Number of outlets *Including SEA are Malaysia, Thailand, Philippines, Indonesia, Vietnam and Cambodia # Including International are Kuwait, Sri Lanka, Bahrain, Oman, Saudi Arabia and Qatar 9
FOOD ATRIUM DIVISION REVENUE 9M 2016 REVENUE BY GEOGRAPHY 200 150 100-7.3% SEA* 5% Taiwan 5% 50 0 FY10 FY11 FY12 FY13 FY14 FY15 9M15 9M16 Hong Kong 21% 40% Revenue (S$ Million) EBITDA 25 20 15 16.8% 16.1% 13.3% 15.1% 14.7% 10.3% 11.5% 20.0% 15.0% 10.0% China 29% 10 5 4.5% 5.0% 0 FY10 FY11 FY12 FY13 FY14 FY15 9M15 9M16 0.0% *Including SEA are Malaysia & Thailand 10 EBITDA (S$ Million) Margin (%)
FOOD ATRIUM DIVISION NUMBER OF FOOD ATRIUM OUTLETS 9M 2016 OUTLET DISTRIBUTION BY GEOGRAPHY 80 60 65 57 Taiwan 3 SEA* 5 Hong Kong 5 40 China 29 20 19 15 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 9M16 Number of outlets *Including SEA are Malaysia & Thailand 11
RESTAURANT DIVISION REVENUE 9M 2016 REVENUE BY GEOGRAPHY 150 125 +4.9% 100 75 Thailand 7% 50 25 0 FY10 FY11 FY12 FY13 FY14 FY15 9M16 9M16 Revenue (S$ Million) EBITDA 37 29.0% 32 27 23.7% 24.0% 93% 22 17 12 13.5% 14.2% 16.1% 19.1% 19.6% 19.0% 14.0% 7 10.1% 10.6% 2 FY10 FY11 FY12 FY13 FY14 FY15 9M16 9M16 9.0% 12 EBITDA (S$ Million) Margin (%)
RESTAURANT DIVISION NUMBER OF RESTAURANT OUTLETS 9M 2016 OUTLET DISTRIBUTION BY GEOGRAPHY 50 40 Thailand 3 30 30 32 20 10 5 29 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 9M16 Number of outlets 13
CONTACT US Mr. Chan Ying Jian Group Chief Financial Officer Ms. Agnes Kang Investor Relations Tel - (65) 6285 6116 Email - ir@breadtalk.com 14