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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
Company Performance 2020 Company DirectionIndustry Outlook
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
Company Performance 2020 Company DirectionIndustry Outlook
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
Company Performance 2020 Company DirectionIndustry Outlook
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%
Company Performance 2020 Company DirectionIndustry Outlook
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%
Company Performance 2020 Company DirectionIndustry Outlook
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%
Company Performance 2020 Company DirectionIndustry Outlook
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%
Company Performance 2020 Company DirectionIndustry Outlook
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
03 2020 Company DirectionOutlines After You company strategic direction in 2020
01Company PerformanceDisplays After You financial performance from the latest quarter
Company Performance 2020 Company DirectionIndustry Outlook 14
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
Company Performance 2020 Company DirectionIndustry Outlook
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
03 2020 Company DirectionOutlines After You company strategic direction in 2020
01Company PerformanceDisplays After You financial performance from the latest quarter
02 Industry OutlookIdentifies factors affecting the Thai Food and Dessert Industry
Company Performance 2020 Company DirectionIndustry Outlook
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
Company Performance 2020 Company DirectionIndustry Outlook
Dynamic Branch Expansion
✓ 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
Company Performance 2020 Company DirectionIndustry Outlook
1. Branch Expansion: Selectively expand through pop-up store
19
Dynamic Branch Expansion
✓ Domestic Expansion:▪ Selectively expand
through pop-up store
✓ Branch as a distribution hub
✓ International Expansion:▪ Through Partnership
✓ 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
Company Performance 2020 Company DirectionIndustry Outlook
1. Branch Expansion: Hong Kong branch is expected to start operation in Q3/2019 waiting for the situation to relieve
20
Dynamic Branch Expansion
✓ Domestic Expansion:▪ Selectively expand
through pop-up store
✓ Branch as a distribution hub
✓ International Expansion:▪ Through Partnership
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
Company Performance 2020 Company DirectionIndustry Outlook 21
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
Company Performance 2020 Company DirectionIndustry Outlook
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)
Company Performance 2020 Company DirectionIndustry Outlook
3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities
23
Sales Channel Enhancement
✓ Actively seeking collaboration opportunities
▪ 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
Company Performance 2020 Company DirectionIndustry Outlook
3. Sales Channel: Strong Partnership for Product Collaboration, Distribution Channel and Co-marketing Activities
24
Sales Channel Enhancement
✓ Actively seeking collaboration opportunities
▪ 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
Company Performance 2020 Company DirectionIndustry Outlook
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
Company Performance 2020 Company DirectionIndustry Outlook
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