BreadTalk Group Limited Financial Results Fourth Quarter and Full-Year 2016 Bakery Food Atrium Restaurant
FY 2016 FINANCIAL HIGHLIGHTS Income Statement Highlights S$ Million 4Q 2016 4Q 2015 Y/Y FY 2016 FY 2015 Y/Y Revenue 153.3 155.1-1.1% 615.0 624.1-1.5% Bakery 76.6 75.5 1.5% 305.9 307.9-0.7% Food Atrium 38.1 42.9-11.1% 158.9 173.1-8.2% Restaurant 38.6 36.7 5.0% 150.2 143.2 4.9% EBITDA 24.2 22.0 10.2% 83.6 77.6 7.8% Bakery 5.8 6.3-8.2% 30.3 22.4 35.5% Food Atrium 6.8 2.9 130.6% 12.2 17.9-31.8% Restaurant 8.6 13.8-37.6% 30.5 33.9-9.9% Others 3.0 (1.1) 366.9% 10.6 3.4 207.1% EBITDA Margin 15.8% 14.2% +1.6 ppt 13.6% 12.4% +1.2 ppt Bakery 7.6% 8.4% -0.8 ppt 9.9% 7.3% +2.6 ppt Food Atrium 17.7% 6.8% +10.9 ppt 7.7% 10.3% -2.6 ppt Restaurant 22.3% 37.6% -15.3 ppt 20.3% 23.7% -3.4 ppt Net Profit 4.4 1.1 286.6% 11.4 7.6 50.4% Net Margin 2.9% 0.7% +2.2 ppt 1.9% 1.2% +0.7 ppt Core F&B Net Profit 4.6 (1.8) 361.8% 6.9 5.1 35.6% Core F&B Net Margin 3.0% -1.1% +4.1 ppt 1.1% 0.8% +0.3 ppt EPS (cents) 1.57 0.41 287.7% 4.06 2.69 51.0% DPS (cents) 2.00 1.00 100.0% 3.85 1.50 156.7% 2
GROUP KEY FINANCIAL HIGHLIGHTS REVENUE MIX BY BUSINESS REVENUE MIX BY GEOGRAPHY EBITDA MIX BY BUSINESS Restaurant $150.2m 24% 23% FY 2016 Hong Kong $66.4m 11% 12% Others $37.6m 6% 4% FY 2016 Others $10.6m 13% 4% 29% FY 2016 Bakery $30.3m 36% 28% Food Atrium $158.9m 26% FY 2015 49% Bakery $305.9m 50% China $174.5m 28% 31% FY 2015 53% $336.5m 55% Restaurant $30.5m 36% 44% FY 2015 23% Food Atrium $12.2m 15% FY 2016 REVENUE: S$615.0M FY 2016 REVENUE BY GEOGRAPHY FY 2016 EBITDA: S$83.6M 3
FY 2016 FINANCIAL HIGHLIGHTS Balance Sheet Highlights S$ Million FY 2016 FY 2015 Total assets 534 545 Cash and cash equivalents 121 95 Accounts receivables 82 74 Inventories 10 10 Current assets 213 179 Property, plant and equipment 181 206 Investment securities 73 90 Non-current assets 321 366 Total liabilities 382 399 Accounts payables 87 94 Current liabilities 218 262 Non-current liabilities 164 136 Borrowings and debt securities 182 202 Short term 32 82 Long term 150 120 Net debt 61 107 130 120 110 100 90 80 70 60 50 300 250 200 150 100 50 0 CASH & CASH EQUIVALENT VS NET DEBT 121 61 FY14 FY15 1Q16 2Q16 3Q16 4Q16 Cash and cash equivalents (S$ Million) Net debt (S$ Million) CURRENT ASSET VS CURRENT LIABILITIES 83 5 FY15 1Q16 2Q16 3Q16 4Q16 Net current liabilities (S$ Million) Current assets (S$ Million) Current liabilities (S$ Million) 4
FY 2016 FINANCIAL HIGHLIGHTS Cash Flow Highlights S$ Million 4Q 2016 4Q 2015 FY 2016 FY 2015 Operating cash flow before working capital changes 24 26 88 83 Net cash flow from operating activities 27 25 89 66 Less: Capital expenditure (7) (9) (37) (37) Investment in associate & joint venture - (1) (3) (3) Net cash flow used in investing activities (7) (9) (25) (58) Free cash flow 20 15 49 26 Net (decrease)/increase in bank borrowings (11) (8) (21) 4 Net cash flow from (used in) financing activities (14) (13) (38) (10) Net cash flow 6 3 26 (1) 5
FY 2016 FINANCIAL HIGHLIGHTS Financial Ratios FY 2016 FY 2015 Trade Receivables Turnover (days) - Franchisee 78 93 Trade Receivables Turnover (days) - Non franchisee 2 2 Total Receivables Turnover (days) 7 8 Inventory Turnover (days) 26 24 Trade Payables Turnover (days) 30 27 Cash Conversion Cycle (days) 3 5 Net Debt/Shareholder's Equity 0.47x 0.83x Net Debt/EBITDA 0.73x 1.38x EBITDA/Interest expense 14.10x 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 167 Thailand 6 China 423 FY 2015 Net Increase/ (Decrease) FY 2016 Bakery 862 0 862 Direct Operating 266 (6) 260 Franchise 596 6 602 Food Atrium 65 (8) 57 Others 355 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 FY 2016 REVENUE BY GEOGRAPHY 400 350-0.7% 300 250 200 150 100 Hong Kong 10% International 1% SEA* 2% 50 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Revenue (S$ Million) EBITDA 43% 32 27 22 17 12 11.0% 9.3% 8.6% 8.8% 7.8% 7.3% 9.9% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% China 44% 7 2 FY10 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA (S$ Million) Margin (%) 6.0% 5.0% SEA: Malaysia, Thailand, Philippines, Indonesia, Vietnam & Cambodia International: Kuwait, Sri Lanka, Bahrain, Oman, Saudi Arabia & Qatar 8
BAKERY DIVISION NUMBER OF BAKERY OUTLETS FY 2016 OUTLET DISTRIBUTION BY GEOGRAPHY 1000 862 862 International 33 800 600 SEA* 288 China 394 400 200 129 123 Hong Kong 24 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Number of outlets SEA: Malaysia, Thailand, Philippines, Indonesia, Vietnam & Cambodia International: Kuwait, Sri Lanka, Bahrain, Oman, Saudi Arabia & Qatar 9
FOOD ATRIUM DIVISION REVENUE FY 2016 REVENUE BY GEOGRAPHY 200-8.2% 150 100 SEA* 5% Taiwan 5% 50 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Revenue (S$ Million) Hong Kong 20% 41% EBITDA 25 20 16.8% 16.1% 13.3% 15.1% 14.7% 20.0% 15.0% 15 10 10.3% 7.7% 10.0% China 29% 5 5.0% 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA (S$ Million) Margin (%) 0.0% SEA: Malaysia & Thailand 10
FOOD ATRIUM DIVISION NUMBER OF FOOD ATRIUM OUTLETS FY 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 FY16 Number of outlets SEA: Malaysia & Thailand 11
RESTAURANT DIVISION REVENUE FY 2016 REVENUE BY GEOGRAPHY 175 150 +4.9% 125 100 75 Thailand 7% 50 25 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Revenue (S$ Million) EBITDA 37 32 27 22 17 12 7 10.1% 10.6% 13.5% 14.2% 16.1% 23.7% 20.3% 29.0% 24.0% 19.0% 14.0% 93% 2 FY10 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA (S$ Million) Margin (%) 9.0% 12
RESTAURANT DIVISION NUMBER OF RESTAURANT OUTLETS FY 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 FY16 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