2019 key highlights - listed...

2019 KEY HIGHLIGHTS

61% Net Profit

Growth YoYContinuous expansion of outlets and pop-up

• After You Dessert and Café

Branch expansion:

• 6 branches in 2019

• Pop-up stores expansion:

• 59 pop-up stores in 2019

Consistent Innovation of New Products

• 20 new products including OEM

products in 2019

• New product line – Delivery

(grab and go) and other confectionery

• Revenue increased by THB 323

million or 37% YoY

• Gross profit increased by THB 191

million or 33% YoY, and GPM

decreased by 2.1% YoY from

YE2018

• Net profit increased by THB 90

million or 61% YoY, and NPM

increased by 3.0% YoY from

YE2018

03 2020 Company DirectionOutlines After You company strategic direction in 2020

02 Industry OutlookIdentifies factors affecting the Thai Food and Dessert Industry

01Company PerformanceDisplays After You financial performance from the latest quarter

Company Performance 2020 Company DirectionIndustry Outlook

Financial Highlights

4

• Gross Profit was increased by

THB 191 million or 33% YoY from

2018

33% Gross Profit

Growth YoY

37% Revenue

Growth YoY

• Revenue increased by THB 325

million or 37% YoY from 2018

• SSSG was 8.9% in 2019 which

improved by 13.9% YoY from 2018

• 6 branches were opened

• Net profit increased by THB 90

million or 61% YoY from 2018

• Net Profit Margin increased by

3.0% YoY from 2018

61% Net Profit

Growth YoY


Dessert Café Dominates as the Largest Portion of After You Revenues

5

YE After You Revenue

(Unit: Million Baht)

92%

94%92%

7%

2%

4%2%

4%

5%0.4%

251

283

Q4/18 Q3/19 Q4/19

312

96%

93%

3%

4%

2%

3%0.1%

871

1,194

2018 2019

+13%YoY

+37%YoY

Non-CaféCatering / Pop-Up

Pop-up Store

Online Sales

Dine-In (72%)

Take-Away/Delivery(28%)

OEM

Catering

Hong Kong Branch

Franchise Fee

Dessert Café+34% growth

+112% growth


In 2019, Take-Away/ Delivery portion significantly gained shares of Revenue from Dessert Café.

Dessert Café Sales in 2019 increased from 6 new branches as well as improvement in SSSG

6

Dessert Café Sales (Million Baht)

• Revenue from Dessert Café in Q4/2019 was THB 259 million which increased by THB 29 million or 13% from Q4/2018 due to 6 more branches compared to Q4/2018; however, SSSG dropped following the weak consumption sentiment effecting whole foodservice and retail industry in Thailand.

• Revenue from Dessert Café in 2019 increased by THB 279 million or 34% from 2018 as more branches are opened, together with the significant improvement in SSSG.

Q4/2019 vs Q4/2018YoY

2019 vs 201812M

-5.0%

8.9%

2018 2019

4.2%

11.7%16.4%

13.3%

-3.4%

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Same-Store-Sales-Growth (%)

Same-Store-Sales-Growth and Number of Stores

230

259

Q4/18 Q4/19

+13%YoY

832

1,111

2018 2019

+34%YoY

Dessert Café Sales Breakdown

Take-Away/Delivery

(+436%)

Dine-In(+3%)

32 36 38 38 38 32 38Number of Stores

93% 72%

7%

28%832

1,111

2018 2019


162 181

582

773

Q4/18 Q4/19 2018 2019

Gross Profit Increased In Line with the Increase in Revenue while GPM Decreased because of Higher Take-Home and OEM Sales

7

Gross Profit Margin

Gross Profit

Gross profit in Q4/2019 was THB 181 million which increased by THB 19 million or 12% from Q4/2018 in line with higher sales in Q4/2019 compared to Q4/2018.

Gross Profit and Gross Profit Margin (Million Baht,%)

Gross profit = Total Operating Revenue – Cost of SalesCost of sales mainly consists of cost of raw materials, packages, supplies, salary of production unit’s staff, depreciations, kitchen utensils and space usage expense of production unit. Major part of cost of sales is raw materials.

Gross profit margin in Q4/2019 was 64.0% which decreased by 0.5% from Q4/2018, due to an increase in sales of take-home products, which usually have lower gross profit margin.

Q4/2019 vs Q4/2018YoY

2019 vs 201812M

In 2019, gross profit was THB 773 million which increased by THB 191 million or 33% from 2018. The increase reflected the accumulated impacts of the increase in gross profit each of the all four quarters compared to the same period of last year. The increase was mainly attributed to 6 additional branches in 2019 together with the continuous launch of take-home products, new menus and seasonal menus.

Gross profit margin (GPM) in 2019 was 64.7% which decreased by 2.1% from 2018. The decrease was mainly attributed to the higher portion of take-home sales which yields lower GPM.

64.5%64.0%

66.8%64.7%

+33%

+12%


Selling Expenses to Revenue Improved from Higher SSSG while Expenses At Branch are Well-Managed

8

Selling expenses in Q4/2019 was THB 84 million which increased by THB 14 million or 20% from Q4/2018 in line with the new branch opening in Q4/2019.

In 2019, selling expenses was THB 329 million, increased by THB 58 million or 21% from 2018, due to the increase in selling expenses regarding new additional 6 branches opened in 2019.

Selling Expenses & Selling Expenses to Revenue (Million Baht,%)

Selling expenses to total revenue in Q4/2019 was 29.3% which increased by 1.7% from Q4/2018. The increase was due to the slow down of revenue growth of dessert café sales while additional expenses were added to operating 6 more branches YoY.

Selling expense to total revenue in 2019 was 27.3% which improved by 3.5% from 2018. The decrease was mainly from significant increase in sales from dessert café in every quarters, while store-related expenses did not increase significantly.

Q4/2019 vs Q4/2018YoY

2019 vs 201812M

Percentage to Total Revenue

Selling Expenses

Selling expenses mainly consist of salaries of dessert café’s staff, space and equipment rental expenses, utility expenses, and other selling expenses such as marketing and promotional expenses, and depreciation of asset in each branch.

7084

271

329

Q4/18 Q4/19 2018 2019

27.6%29.3%

+20%

+21%

30.8%27.3%

Company Performance 2020 Company DirectionIndustry Outlook 9

Administrative expenses in Q4/2019 was THB 39 million, increased slightly by THB 5 million or 15% from Q4/2018 mainly due to the increase in salary expenses in the back office.

In 2019, administrative expenses was THB 162 million which increased by THB 22 million or 16% from 2018. The increase reflected the accumulated impacts of the higher administrative expenses each of the four quarters compared to the same period last year, due to the higher back office salary expenses as a result of business expansion.

Administrative Expenses & Admin Expenses to Revenue (Million Baht,%)

Admin expenses to total revenue in Q4/2019 was 13.6% which slightly increased by 0.2% from Q4/2018 due to the slow down of revenue growth in comparison to admin expense growth.

Admin expenses to total revenue in 2019 was 13.4% which improved by 2.5% from 2018 due to better control on the back-office expenses.

Q4/2019 vs Q4/2018YoY

2019 vs 201812M

Percentage to Total Revenue

Administrative Expenses

Administrative expenses mainly consist of salaries of back office staff, utility expenses, and depreciation of property, plant, and equipment in the back office.

Admin Expenses to Revenue Improved from Higher Revenue Growth

3439

140

162

Q4/18 Q4/19 2018 2019

13.4% 13.6%

+15%

15.9%13.4%

+16%


Net Profit Margin Increased from Higher Dessert Cafe Sales and Better Expense Management

10

Net profit in Q4/2019 was THB 50 million which increased slightly by THB 1 million or 2% from Q4/2018 due to the increase in operating revenue, which results from the increase in sales from dessert café and catering and pop-up stores.

Net Profit and Net Profit Margin (Million Baht,%)

Net profit margin in Q4/2019 was 17.4% which decreased by 1.9% from Q4/2018 due to the slow growth in revenue from dessert café in Q4/2019 while there were additional selling expenses according to new 6 branches.

Net profit margin in 2019 was 19.7% which increased by 3.0% from 2018 as the operating revenue increased, while the SG&A expenses did not increase significantly as the Company had better expense control.

Q4/2019 vs Q4/2018YoY

2019 vs 201812M

Net Profit Margin

Net Profit In 2019, net profit was THB 237 million which increased by THB 90 million or 61% from 2018, due to operational efficiency and economies of scale of operating 38 branches.

49 50

147

237

Q4/18 Q4/19 2018 2019

19.3%17.4%

+2%

+61%

16.7%19.7%


Balance Sheet as at 31 Dec 2019

11

Total Assets Total Liabilities and Equities

Total Liabilities As of 31 Dec 2019, the total liabilities of the Company were

THB 162 million, increased by THB 22 million or 16% from 31 December 2018.

The increase was mainly due to the THB 13 million increase in other non-

current liability as a result of unearned revenue from initial franchise fee

received in advance, and the increase in the provision for long-term

employee benefits and the provision for decommissioning.

Total Equity As of 31 Dec 2019, the total equity of the Company was THB

1,038 million, increased by THB 81 million or 8% from 31 December 2018.

The increase was due to the increase in retained earning.

(Million Baht) (Million Baht)

62 84

403 406

57 59

505 598

70

531,097

1,200

31 Dec 18 31 Dec 19

6%

37%

5%

6%

46%Land, Property and

Equipment

Other current assets

Short-term Investment

Other non-current assets

7%

34%

5%

4%

50%

+9%

Cash and Cash equivalent

• Land, property, plant and equipment increased by THB 93 million

or 18% because of the plant expansion and the opening of new

branches.

Total Assets

As of 31 Dec 2019, the total assets of the Company were THB 1,200

million, increased by THB 103 million or 9% from 31 December

2018. Significant changes are highlighted as follows:

116 12524 37

957 1,038

1,097

1,200

31 Dec 18 31 Dec 19

11%

2%

87% Equity

Non-current Liabilities

Current Liabilities10%3%

87%

+9%


Key Financial Ratios

12

0.15 0.14

0.170.15 0.16

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

D/E (Times)ROA* (%)

ROE* (%)EPS (Baht per share)

0.060.07

0.08 0.08

0.06

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

*Note: The net profit used to calculate ROA and ROE is actual 4-quarter net profit. The assets and equities are the weighted average assets and equities between the beginning and ending of the period.

13.8%15.9%

20.6% 21.1% 20.6%

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

15.6%17.7%

23.4% 24.2% 23.8%

Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

02Industry OutlookIdentifies factors affecting the Thai Food and Dessert Industry




Overall Thailand Economy in 2020 is expected to slow down led by COVID outbreak as well as weak consumer sentiment

Source: Bank of Thailand, NESDC, Ministry of Tourism and Sports, CEIC Data, University of Thai Chamber of Commerce

Expected of Consumer Confidence Index

116.9119.2

124.3

130.2

2016 2017 2018 2019

75.5

74.5

80.080.7

Consumer Confidence Index

Private ConsumptionIndex

CCI and PCI IndexCCI index has fallen for the tenth consecutive month due to the lacking in confidence to uncertainties over overall economy, job opportunity and future income.

External Factors driving GDP

COVID-19 Outbreak across

the World effecting tourism sector in Thailand

Worst drought in 40 years leading to

slow down in Agricultural sector

Delay in National Budget Bill

will be an issue for government plan

0.80%

7.20%

2.70%

1.00%

3.10%3.40%

4.00% 4.10%

2.40%

1.5-2.5%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F

Thailand GDP Growth

Average GDP Growth = 3.19 %

(Point)

Dec 2019131.8

Dec 201968.3

PM2.5 slows down outdoor activities

and customer spending


International passenger arrivals at five major airports

5

COVID-19 Outbreak has slowed down tourism sector impacting both international arrivals and tourism revenue.

Predicted impact from COVID-19 Outbreak

Number of unvisited tourists(Million People)

1.472.16

3.23

5.21

1.982.83

4.37

7.07

3 months 4 months 6 months 9 months

Best Case Worst Case

Loss in Tourism Revenue(Billion Baht, % to GDP)

Impact of COVID-19 Outbreak in both Number of Tourists and Revenue• 4 Hypotheses based to duration of the outbreak show either best or worst scenario of those duration leading to the number of unvisited tourists and loss in

Thailand tourism revenue

67 (0.39%)99 (0.58%)

148 (0.86%)

240 (1.40%)

91 (0.53%)

130 (0.76%)

201 (1.17%)

325 (1.89%)

Source: Ministry of Tourism and Sports, SCB EIC

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1-J

an

3-J

an

5-J

an

7-J

an

9-J

an

11-

Jan

13-

Jan

15-

Jan

17-

Jan

19-

Jan

21-

Jan

23-

Jan

25-

Jan

27-

Jan

29-

Jan

31-

Jan

2-F

eb

4-F

eb

6-F

eb

8-F

eb

10-

Feb

12-

Feb

105,164

56,561

13 Feb 2019

13 Feb 2020

Jan 27: China started suspending outbound group tours

(Number of international passengers)

2019 Statistic

2020 Statistic

Feb 1-Feb 13 : -45% YoY



02 Industry OutlookIdentifies factors affecting the Thai Food and Dessert Industry


After You Strategic Direction

17

Leading Product Innovation and R&D

Sales Channel Enhancement

Dynamic Branch Expansion

✓ Domestic Expansion:▪ Selectively expand through

pop-up store▪ Remodeling existing stores

✓ Branch as a distribution hub✓ International Expansion:

▪ Through Partnership

✓ Strong and consistently innovative R&D team

✓ More take-home products✓ Expansion into new product line

(Pancake Mix) ✓ New business development concept

✓ Actively seeking collaboration opportunities

✓ Digital transformation by mobile application

Efficiency and Capability Improvement• Increasing staff capabilities✓ Expanding production facilities and benefit through economies of scale



✓ Domestic Expansion:▪ Selectively expand

through pop-up store▪ Remodeling existing

stores

✓ Branch as a distribution hub

✓ International Expansion:▪ Through Partnership

1. Branch Expansion: Opened 6 Branches Domestically in 2020

18

2020 Outlet Concepts✓ Smaller-sized branch ✓ Same kitchen size, smaller seating area✓ Increasing area for take-away

Zen @ Central World

Samyan Mitrtown

The Mall Ngamwongwan

MRT -Chatuchak

BITEC

Icon Siam (16 Jan)

Sukhumvit 11 (30 Apr)

The Third Place (5 Feb)

Central Patong(15 Feb)

The Market (20 Feb)

Central Hatyai(15 Jun)

6 Branches Opened in 2019

Major Outlet Expansion

2019 2020


1. Branch Expansion: Selectively expand through pop-up store

19



through pop-up store



✓ Continue to expand by using 2 models of pop-up stores to increase awareness and accessibility of the brand

5 6

12 13

5

10

19

25

Q1/19 Q2/19 Q3/19 Q4/19

Number of Pop-Up Stores

Revenue from Pop-up(Million Baht)

Strategic Advantages✓ Test new market & explore demand in

untapped areas✓ Obtaining potential branches at low

investment costs

Central Plaza Surat Thani

✓ Dining areas are available✓ Limited menu selection✓ Length of Stay: 3 months – 1 year

2019 2020

✓ Dining areas are not available✓ To-Go products are mainly sold✓ Setting up areas are in a high

traffic location✓ Length of Stay: 1-4 weeks

MRT - Phetchaburi

Shopping Mall in Tier 2 and Tier 3 cities

Office Building

BTS – MRT stations

Targeted Locations

Pop-up Store Expansion

Model 1: Semi-permanent store

Model 2: Small Kiosk


1. Branch Expansion: Hong Kong branch is expected to start operation in Q3/2019 waiting for the situation to relieve

20



through pop-up store



Hong Kong Branch Progress Update

Q3/2020Q4/2019

Store Construction Completed

Expected Date to Start Operation

Waiting for the situation to relieve

International Expansion Through Partnership

2020 onwards2019

Hong Kong

✓ Coordinating with partner to explore opportunity to set up other franchise outlet in Hong Kong

✓ Opening of the first franchisee branch in Hong Kong

Asia Pacific

✓ Actively seeking the right franchisee to help After You expand to other countriesImplication to After You

• After You has minimal impact from the delay in opening date as the store in Hong Kong is a franchisee branch.

• The revenue loss is estimated to be minimal as initial franchise fee was already recognized in late Q3/2019 and the portion of commission revenue is estimated to be small compared to total revenue.

1. Initial Franchise Fee2. Royalty Fee from Sale3. Revenue from sales of key ingredient

Revenue Stream• Franchisee Store (DODO model)

Store Model


Timeline Situation

Apr’19

Jun’19

Aug’19

Past protest location around the city

Situational Analysis

Hong Kong Visitor Arrivals and Retail Sales• After the starting of political unrest in June, both the number of visitor

arrivals and the volume of retail sales have dropped significantly, leading to unstable industry-wide growth in 2020

Hong Kong Visitor Arrivals in 2019 (Thousand People)

Hong Kong Retail Sales in 2019

16,07618,466 18,234

16,637

11,892

9,149

Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

27.2

5.2-4.8

-43.7 -51.5

YoY Change

Number of Visitor Arrivals

YoY Change

Jan Apr Jul Oct Dec

Source: BBC, Hong Kong Economy, Reuters

• Hong Kong Airport• Victoria Park• Kowloon• Central• Yuen Long District

Sep’19

Currently

6.9

-5.0

-13.1

-26.4-21.0

-30.0

-20.0

-10.0

0.0

10.0

• Start protest across Hong Kong City

• Hong Kong airport cancels flights for 2 days due to the protest

• Formal withdrawal of the extradition bill

• Introduce amendments to the extradition laws

• Protest lessens from the affect of COVID-19 Outbreak

1. Branch Expansion: Situational Updates for Political Unrest in Hong Kong


2. Strong Product Innovation: Launched 20 Products in 2019 and planned to introduce more than 8-10 products in 2020

22

Leading Product Innovation and

R&D

✓ Strong and consistent innovative R&D team

✓ More take-home products

✓ Expansion into new product line (Pancake Mix)

Strong Innovation of Product Launch

20202019

Targeted to launch

10+ products(New and

Revised Version of Seasonal Products)

Consistent Launch of In-store Product

✓ New menu by adapting Thai-style original ingredients

More take-home products

✓ Increase Sales from faster turnover✓ Use existing branch as a distribution hub

Expansion into New Product Line

✓ Longer shelf life✓ Supported by more distribution channel (Modern Trade)


3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities

23



▪ OEM partnership with airlines and corporates

▪ Distribution Channel partnership with delivery players (Grab, Lineman)

▪ Co-Marketing Partners

✓ Higher area coverage of potential customers

✓ Continuous revenue stream✓ Increase brand visibility

✓ Ensured revenue stream✓ Increase brand visibility

Airlines and Corporates OEM Partners

Delivery Services Partners

Co-Marketing Partners


3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities

24



▪ OEM partnership with airlines and corporates

▪ Distribution Channel partnership with delivery players (Grab, Lineman)

▪ Co-Marketing Partners

Introduction of After You Application - 2020

✓ Allow customers to know intensity of traffic at each After You branch and therefore could select the most convenient location

Traffic Visibility 1

✓ Allow customers to clearly see all the items available on application and place the order before completing the payment at cashier

Advanced Ordering System2

Expected benefit

Redistribute customer traffic across branches

Increased turnover from faster ordering and payment system

Larger ticket size per head

✓ Keep track of customer purchasing behavior and offer personalized customer promotion

✓ Point collection & more attractive rewards system

Enhanced Loyalty Program3

✓ Integrated online sales channel with partnered delivery platform

Online Sale Channel4

✓ Mobile Payment Convenience✓ Automatic Loyalty Rewards

E-Wallet5


Efficiency and Capability

Improvement

✓ Expanding production facilities and benefit through economies of scale

✓ Increasing Staff Capabilities

25

4. Efficiency and Capability: Continuous Investments to Improve Capacity, Capability and Productivity

Efficiency and Capability Improvement

20202019

Investment in Facilities for Growth

Investment for Staff Capability Improvement

Cold StorageNew PlantMachineries and Equipment

✓ Improve efficiency✓ Increase production

capacity✓ Increase economies of

scale

1 2 3

✓ Accomodate increasing demands

✓ Facilitate export and international operation

✓ Reduce cold storage rental better supply management

✓ Preparation for exports for international operation

✓ Increase productivity

Investment in Capital Expenditure

Plant Expansion

Back Office and Logistic Improvement

New Branches and Project Development

~ 104 millions baht

~ 70.5 millions baht

~ 6.3 millions baht

✓ In total, 180.8 millions baht investing in Capital Expenditure


Summary of Action Plan in 2020

26

Strategies Initiatives in 2020

• Launching 10+ products (New + Revised version of seasonal

products)

• New business development concept

• New OEM partner with exclusive products

• Increasing orders from exisitng OEM partners

• Introducing After You mobile application

• Continuous development of store design and manpower at branches

• Utilization of new phase facility

• Enchanced logistic capabilities

1 Dynamic Branch Expansion

3 Sales Channel Enhancement

4Efficiency and

Capability Improvement

2 Leading Product Innovation and

R&D

• 6 domestic branches

• Pop up stores in selected locations

• 1st Hong Kong outlet expected around Q3/2020

2019 key highlights - listed...

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