Wowprime Corporation (2727.tw) Presentation Steven Liu Executive Director - Finance
Introduction 2
Opening date (first store) Capital (NTD, thousands) Brand Number Store Number Employee Number Taiwan China Mid-to-highend 1.Overview China Mid-end Thailand (Franchise) Singapore (JV & Franchise) 1993.11 2003.7 2013.1 2011.9 2014.5 767,819 715,088 (USD22,440,000) 290,743 (USD9,900,000) - July 31,2014 43,152 (SGD1,800,000) 13 4 1 1 1 298 84 14 1 1 11,879 5,245 470 - - 3
2.Investment Structure 4
3. Taiwan Business 5
(1) Store Number by Brand July 31,2014 Brand Opening date Cuisine Type Price (NTD) Store Number 1993 2001 2002 2004 2004 Western Style Cuisine Western Style Cuisine Japanese Cuisine BBQ Hokkaido Kelp Pot 1,485 570 570 691/384 594/395 16 44 35 24 33 Brand Opening date 2005 2005 2007 2009 2010 Cuisine Type New Style Japanese Cuisine French Teppanyaki Japanese Pork Chops & Curry Shabu Shabu & Stone Pot Vegetarian Food Price (NTD) Store Number 768 1,133 350/284 218 438 16 16 30 45 18 6
(1) Store Number by Brand July 31,2014 Brand Opening date 2011 2013 2014 Cuisine Type Coffee & Desserts New Teppanyaki Italian Food Price (NTD) -- 290 380 Total Store Number 13 6 2 298 7
Wang Steak 9 Tasty 22 Tokiya 19 (2) Store Map in Taiwan July 31,2014 Total:298 YakiYan 14 Giguo 14 Ikki 7 Chamonix 10 Taipei / Taoyuan / Hsinchu Yilan Tasty 1 YakiYan 1 Giguo 1 Pintian 10 12 Hotpot 19 Sufood 11 Famonn 12 hot 7 4 Total 151 Wang Steak 3 Tasty 8 Tokiya 9 YakiYan 3 Giguo 8 Ikki 4 Chamonix 2 Pintian 10 12 Hotpot 13 Sufood 4 Famonn 3 Ita 2 Total 69 Jiayi / Tainan / Kaoshiung Miaoli / Taichung / Changhwa / Yunlin / Nantou Pingdong Hualian / Taidong Tasty 1 Tokiya 1 Giguo 1 Pintian 1 12 Hotpot 1 Total 5 Pintian 1 Total 4 Wang Steak 4 Tasty 10 Tokiya 6 YakiYan 5 Giguo 8 Ikki 5 Chamonix 4 Pintian 7 12 Hotpot 12 Sufood 3 Total 64 Tasty 2 Giguo 1 Pintian 1 YakiYan 1 Total 5 8
(3)Brand Positioning by Price High-end Customers Mid to high-end Customers Mid-end Customers 9
4. China Business 10
(1) Store Number by Brand July 31,2014 Brand Opening date 2003.7 2005.4 2013.2 2013.2 2013.1 Total Cuisine type Western Style Cuisine Western Style Cuisine French Teppanyaki Japanese Kaiseki Cuisine Shabu Shabu & Stone Pot Price (NTD) 1,786 (RMB 372) 720 (RMB 150) 1,891 (RMB 394) 1,786 (RMB 372) 235 (RMB 49) Store number 50 29 2 3 14 98 11
(2) China Store Map West North Stores Beijing 12 Shenyang 3 Jinan 2 Hefei 1 Tianjin 1 Qingdao 1 Dalian 1 Stores Chongqing 3 Chengdu 2 Wuhan 2 Changsha 1 Xian 1 Total 9 Total 21 East July 31,2014 Stores Shanghai 35 Nanjing 4 Suzhou 4 Hangzhou 4 Ningbo 3 Quanzhou 1 Wenzhou 1 Changzhou 1 Wuxi 3 Total 56 South Stores Shenzhen 4 Canton 4 Huizhou 1 Fuzhou 1 Xiamen 1 Dongguan 1 Total 12 12
Industry Analysis 13
Taiwan Market Share Unit:NTD$ Million Year 2011 2012 (A) 2013 (B) 2014 Q2 YoY Growth (B-A)/A Sales/ Stores Wowprime 7,698 9,682 11,078 5,988 14.42% Sales Catering industry Market share 316,720 328,476 338,352 177,161 3.01% 2.43% 2.95% 3.27% 3.38% - Source:Wowprime audited financial reports, Wowprime s Official Website, MOEA 14
Performance 15
Chart 1: Wowprime Store Numbers 16
Chart 2: Wowprime Sales NTD, Millions 16,000 Taiwan 14,000 Chain 14,881 12,000 Total 12,306 11,079 10,000 9,716 9,682 8,000 7,117 7,698 6,000 4,411 4,733 5,350 5,753 4,000 2,000 3,486 2,885 3,487 3,767 4,238 2018 2,624 3,802 0 601 924 966 1112 1364 2006(assume) 2007(assume) 2008 2009 2010 2011 2012 2013 Note:2012,2013 numbers are under IFRSs. 17
Chart 3: Wowprime Net Profits Attributable to Parent Company NTD, Thousands 1,200,000 Net Profit 634,007 772,987 994,477 1,052,223 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 994,477 1,052,223 772,987 634,007 2010 2011 2012 2013 Note:2012,2013 numbers are under IFRSs. Net Profit 18
Chart 4: Wowprime EPS 年度 NTD 2010 2011 2012 2013 EPS 11.08 12.71 13.92 13.64 20.00 18.00 16.00 14.00 12.00 12.71 13.92 13.64 10.00 11.08 8.00 6.00 4.00 2.00-2010 2011 2012 2013 EPS Note:2012,2013 numbers are under IFRSs. 19
Future Development Strategy 20
Wowprime Future Global Development Strategy Business Scope Business Model Taiwan Direct-Own China Overseas Direct-Own Priority in Franchise; Secondary in Joint Venture 21
Wowprime Future Development in Taiwan Market 22
Taiwan Market Environment Slowdown in economic growth Saturation inf & B market Small market size : numbers of store are limited. 23
Wowprime Future Development Strategy in Taiwan Slow down the expansion of existing brands Maintain stable operating margin Continue establishing new brands 24
Wowprime Future Development in China Market 25
China High-end F & B Market Environment Economy continues to grow and purchasing power increases Rise of consumption level of second and third-tier cities Limited competitors Huge market potential, numbers of store are unlimited Increases in cost: especially labor and rent; test on ability of cost-shifting 26
Wowprime Future Development Strategy of China High-end F & B Market Expand rapidly Multi-brand strategy is needless The biggest steak brand in the world Shift cost & stabilize operating margin 27
China Mid-end F&B Market Environment Massive market potential for unlimited stores Many competitors Need to localize the flavor Cost increases challenge profit maintenance 28
Wowprime Future Development Strategy of China Mid-end F&B Market Step one: localization Step two: create profit model Step three: copy and expand 29
Wowprime Long-Term Target Finest F&B chain in the world Year Achievement 2020 1,000 stores 2030 10,000 stores 30
Thank You 31