Q2’2019 KEY HIGHLIGHTS - listed companyau.listedcompany.com/misc/presentation/20190826-au-am-2q2019-01.pdfQ2’2019 KEY HIGHLIGHTS 117% Net Profit Growth YoY Branch Expansion on

Q2’2019 KEY HIGHLIGHTS

117% Net Profit

Growth YoYBranch Expansion on

Track• Domestic expansion:

i. 6 branches in 1H/2019

ii. 2-4 branches in 2H/2019

• International expansion: Hong

Kong branch opening soon

(Q4/2019)

Consistent Innovation of New Products

• 10 new products including OEM

products in 1H/2019

• 5 new products to be launched in

2H/2019

• New product line – expanding to

longer shelf-life products (Pancake

Mix)

• Revenue increased by THB 106

million or 51% YoY

• Gross profit increased by THB 63

million or 46% YoY

• Net profit increased by THB 34

million or 117% YoY

01

02

03

Industry Outlook

Company Overview and Direction

Company Performance

Identifies factors affecting the Thai Food and Dessert Industry

Outlines After You company background and its strategic direction

Displays After You financial performance from the latest quarter

Industry Outlook Company Overview and DirectionCompany Performance 4

Thailand Consumer Foodservice Industry (Million Baht)

Source: Euromonitor Consumer Foodservice in Thailand 2019

692,369

886,916

1,085,206

2013 2018 2023F

4.12% CAGR

5.08% CAGR

Driving Factors of Foodservice Industry

Accessibility Channels• Delivery & Takeaway• The Platform-to-Consumer

(Foodpanda, Line-Man, Grab, Get)

Tourism• Increasing tourists’ food expenditure• Increasing expenditure per head• Increasing international arrivals• Seasonality in tourism

Consumer Behaviors• Growing private consumption• Driving consumer behaviors• Trending consumer behaviors

Consumer Foodservice Industry • 4.12% CAGR increase in foodservice industry by 2023• This growing industry is supported by the increase in tourism,

accessibility channels and changing consumer behaviors.

Consumer foodservice consists of desserts & cafés, bars, limited-service restaurant, full-service restaurant, self service and street stalls & kiosks.

Thailand Foodservice Industry is Expected to Grow at 4.12% Driven by Tourism, Accessibility Channels and Consumer Behaviors

Industry Outlook Company Overview and DirectionCompany Performance

17%29%

32%11%

10%

10%

4%

5%

5%

4%

4%

5%

5%

5%

4%

7%

4%

3%

52%

44%

40%

26.5

37.4

51.9

2013 2018 2023F

China (+8.97%)

Malaysia (+8.21%)

Laos (+9.99%)India (+10.34%)South Korea (+4.01%)Russia (+3.27%)

Others (+4.79%)

6.80% CAGR

7.10% CAGR

26%

7% 5%5%4%

47%53%

53%

376,132

505,602

2017 2023F 2023F

Others

USAUKMalaysia

China

1,085,206

5

Food Expenditure by Tourists (Million Baht)

Tourists’ Food Expenditure per head (Baht/Visit)

6.80% CAGR increase in international arrivals by 2023. • The recovery and rising of Chinese tourists are expected

taking the larger proportion, following by Malaysian visitors.

• The comeback of Chinese tourists play a major role in boosting the tourists’ expenditure

International Arrivals by 2023

Expected 5.05% CAGR growth in food expenditure by Tourists• Tourists’ food expenditure are forecasted to increase based on

the expected increase in number of tourists and expenditure per head

Foodservice Industry: Incoming tourists play an important role

Source: Euromonitor Tourism Flows in Thailand 2018, Ministry of Tourism and Sports 2017

Tourists’ Expenditure

(+6.13%)

Domestic Expenditure

(+2.53%)

CAGR ‘18-’23 CAGR ‘18-’23

6.45.1

5.9

7.57.87.07.3

7.89.0

7.68.37.8

9.28.1

8.89.4

10.6

8.99.19.7

2014 2015 2016 2017 2018

Seasonality in tourism (Million People)

• The peak season is between November and March (Q4-Q1)

(Million People)

5.05% CAGR

8,789 9,027

10,259 9,866 9,911 10,038

10,308 10,585

10,870

2013 2014 2015 2016 2017 2018 2019F 2020F 2021F

Forecast


Food Expenditure by Tourists (Million Baht)

Foodservice Industry: Asian Tourists are important factors in driving food expenditure

Source: Ministry of Tourism and Sports

11%15% 16%

25%26%

26%

9%

10% 11%

5%

6%

7%

5%

5% 5%

5%

5%

5%

6%

6% 6%

6%

5%

5%

5%

5% 4%

4%

4%

4%

4%

4% 4%

4%

4%

4%

5%

5% 4%

4%

4%

4%

6%

5% 5%

4%

4%

4%

5%

4% 4%

4%

4%

3%

3%

3% 3%

3%

3%

3%

41%

38% 38%

36%

35%

36%

183,894

230,066 228,053

283,230

329,145

376,132

2012 2013 2014 2015 2016 2017

Others (+12.3%)

China (+38.3%)

Russia (+8.6%)

India (+13.4%)

Germany (+6.7%)

Australia (+4.8%)

Korea (+14.3%)

Japan (+10.2%)

USA (+11.5%)

UK (+8.4%)

Malaysia (+13.1%)

15.40% CAGR increase in food expenditure by tourist• Chinese tourists’ expenditure experienced a tremendous

growth of 38.3% CAGR during 2012 – 2017.• Chinese tourists’ expenditure played an important role

in accelerating the country foodservice industry, with over a quarter of the total expenditure by tourists.

• Asian tourists having a very strong growth are from China, Korea, India and Malaysia and Japan.


80.679.976.8

73.577.7

68.8

Consumer Confidence Index

7

Foodservice Industry: Private consumption expansion influences consumer behaviors

Private Consumption and Consumer Confidence Index

Increasing spending

Driving Consumer Behaviors

Private ConsumptionIndex

✓ Consumers are regaining their confidence about the future economy.

✓ The rebound of the index came from the greater confidence in job opportunity and future income.

Source: The University of the Thai Chamber of Commerce, Bank of Thailand, Euromonitor Consumer Foodservice in Thailand 2019

All-day snacking from street stalls

Increasing use of food delivery

Eating out with friends or family

Faster pace of everyday life

✓ This increasing trend is in line with the expansion of consumer income.

✓ The increasing consumption is an evidence to consumer increasing spending, and influencing changes in consumer behaviors.

FOODINDUSTRY

Consumer Confidence Index Private Consumption

129

123 121

118 113

110

201920182017201620152014


• Delivery and Takeaway gradually increased at 7.17% CAGR mainly from the support of Platform-to-Consumer

• Eat-In grew by 3.60% CAGR and still retained its majority position

Foodservice Industry: Delivery and takeaway as another main driver

Foodservice Industry by Eat-In vs Delivery and

Drive-through(Million Baht)

• Rising trend of Platform-to-Consumer

• Offer food discounts• Low delivery prices• Greater convenience value• Faster pace of everyday life• Changing lifestyles order for

delivery• Accessibility to more food options

Delivery & Takeaway

Source: Euromonitor Consumer Foodservice in Thailand 2019, Statista Online Food Delivery in Thailand

Restaurants will increase both their reach and sales from Platform-to-Consumer

7.17% CAGR increase in delivery and takeaway is taking a larger portion

Increase in revenue will contribute to the expansion of food industry

64% 64% 64% 63% 61% 60%

35%35%

35%36%

37%38%1%

1%1%

1%1%

2%

692,369

735,290 768,964

807,604 841,042

886,916

2013 2014 2015 2016 2017 2018

Eat-In(+3.60%)

Delivery & Takeaway(+7.17%)

Drive-Through(+22.17%)

Mobile Platform Restaurants Delivery Man Consumers

Platform-to-Consumer


25%

42%44%48%

38%

35%

27%

21%

21%

35,243

56,748

73,265

2013 2018 2023F

Dessert and cafés: New trends and behaviors drive to outperform the food industry

People want to have it for socializing and sharing with friends and family.

Many dessert cafés are opening earlier and offering sweet breakfast menu.

Desserts and Cafés (Million Baht)

Cafés(+5.16%)

Desserts(+4.00%)

Specialist Coffee(+6.35%)

5.24% CAGR

8.87% CAGR

Source: Euromonitor Consumer Foodservice in Thailand 2019, Bangkok Post

Bubble milk tea Dessert is a lifestyle Desserts for breakfast

Trending Consumer Behaviors

The market value is estimated to be 2.5 billion baht.

Desserts and Cafés✓ Overall Desserts and Cafés outperformed the food service industry

CAGR and projected to continue with 5.24% CAGR.

CAGR ‘18-’23

Average Desserts and Cafés Spending per head (Baht)

2,454 2,610

2,791 2,990

3,169 3,387

2018 2019F 2020F 2021F 2022F 2023F

Average Spending per head• Thai consumer are

expected to spend more on desserts and cafés due to the rising trends and changing in behaviors.

9

Desserts and Cafés consists of revenues from dessert restaurants, specialist coffee shops and cafés.


After You is one of the Top 10 key players in desserts and café industry

Desserts and Cafés Market Contribution (Revenue 2018)

Source: Euromonitor Consumer Foodservice in Thailand 2019

Other restaurants include: Krispy Kreme, Häagen-Dazs, Cold Stone Creamery, Gateaux House, True Coffee, Intanin, McCafé, Coffee World, Punthai Coffee, Coffee Bean & Tea Leaf, Chester’s Coffee, Gloria Jean’s Coffees, Banrie Coffee

• Revenue of Café Amazon and Starbucks represent the majority part of the desserts and cafés market.

• The remaining portion in the Top 10 is separated among dessert brands

• After You is the youngest brand ranked in the Top 10.

10

30.5%

21.8%

11.4%

5.7%

5.3%

Other

11.2%

4.3%

3.1%

2.5%2.4%

1.7%


Bangkok CRD rentalCPI of Raw Materials Average Wages

Short-Term Challenges Ahead: Supply Side (1)

Vacancy Rate

Retail Rental Rate

Bangkok CRD rental• Retail market slightly expanded due to the

increase in both private and public investment• Vacancy rate is expected to increase resulting

in a higher rental supply as many significant projects are still under construction

• Retail rental rate is expected to maintain at this level

(Baht)

Source: CEIC Data, Nexus Marketbeat Retail Snapshot in Thailand 2018, Bank of Thailand

10,172

10,731

10,415

10,821

11,087

12,000

2014 2015 2016 2017 2018 2019F

3,500

3,700

3,800

3,900 3,908

2014 2015 2016 2017 2018

2.70%3.10% 3.10%

3.75% 3.95%

300 300 300 305325

400

Average Monthly Salary

Minimum Daily Wage

Average Wages• Thai labors are expecting the rise in daily

minimum wage to 400 Baht from the new government

• Average monthly salary in private food industry has increased over years and is forecasted to reach 12,000 Baht per month after the new minimum wage policy

CPI of Raw Materials• Price of vegetables and fruits is the most

fluctuated and the price is expected to increase further

• Price of Flour has gradually increased and is forecasted to continue

• Price of eggs and dairy products is expected to slightly decrease

(Baht/SQM/month)

CPI – Vegetables & Fruits

CPI– Eggs & Dairy Products

CPI - Flour

11

100101.8

99.6 99.2 99.5

2015 2016 2017 2018 2019F

100 99.697.7

100.2

103.1

2015 2016 2017 2018 2019F

100

106.2103.5

100.5

105.4

2015 2016 2017 2018 2019F


116.9119.2

124.3

130.2

2016 2017 2018 2019

75.5

74.5

80.0 80.7

TTM Number of TouristsExpected of Consumer Confidence Index Thai Baht Exchange Rate

TTM Chinese and Malaysian Tourists• Trailing-Twelve-Month (TTM) numbers of

Chinese tourists has a positive CAGR over the long run, while in the short-run, the number is expected to decline because of the boat accident.

• Malaysian tourists, after seasonality adjusted, are expected to level off later.

• In Q2/2018, Malaysian visitors was increased both YoY and QoQ, while Chinese tourists was declined both YoY and QoQ.

(Baht)

Source: Bank of Thailand, Ministry of Tourism and Sports, University of the Thai Chamber of Commerce

Thai Baht Exchange Rate• Thai Baht has been appreciating over the past

three years resulting in weakened USD and CNY.

• A strong Thai Baht could discourage incoming tourists coming to Thailand in the foreseeable future.

Monthly CCI and PCI Index• CCI and PCI Index showed decreasing

trends in the near future as consumers have less confidence over the overall economy, job opportunity and future income.

(Million Visitors)

12

0

2

4

6

8

10

12

2015 2016 2017 2018 2019

4.0

4.5

5.0

5.5

6.0

6.5

7.0

27.0

28.0

29.0

30.0

31.0

32.0

33.0

34.0

35.0

36.0

37.0

Aug2016

2017

2018

2019

Consumer Confidence Index

Private ConsumptionIndex

Malaysian Tourists

Chinese Tourists

(1 USD / THB) (1 CNY / THB)

20182017 2019

2.763.12

2.53

Q2/2018 Q1/2019 Q2/2019

0.96 0.92 1.01

Q2/2018 Q1/2019 Q2/2019

-8% YoY

+5% YoY

Malaysian TouristsChinese Tourists

(Million Visitors)

16.7% CAGR

5.3% CAGR

Short-Term Challenges Ahead: Demand Side (2)

01

02

03 Company Overview and DirectionOutlines After You company background and its strategic direction

Industry Outlook

Company Performance

Identifies factors affecting the Thai Food and Dessert Industry

Displays After You financial performance from the latest quarter

Company Performance Company Overview and DirectionIndustry Outlook

Financial Highlights

14

• Gross Profit was increased by

THB 63 million or 46% YoY, and

increased by THB 116 million or

42% from 1H/2018

46% Gross Profit

Growth YoY

51% Revenue

Growth YoY

• Revenue increased by THB 106

million or 51% YoY, and increased

by THB 194 million or 48% from

1H/2018

• SSSG was 16.4% which improved

by 23.8% YoY

• 8 branches were opened

• Net profit increased by THB 34

million or 117% YoY, and

increased by THB 63 million or

105% from 1H/2018

• Net Profit Margin increased by

6.1% YoY and 5.7% from 1H/2018

117% Net Profit

Growth YoY

Company Performance Company Overview and DirectionIndustry Outlook 15

98%

93%94%

6%

4%

2%

2%

2%

206

287

312

Q2/18 Q1/19 Q2/19

Non-Café

Dessert Café Dominates as the Largest Portion of After You Revenues

Q2/2019 After You Revenue

Dessert Café

Catering / Pop-Up

(Unit: Million Baht)

Pop-up Store

Online Sales

Dine-In (71%)

Take-Away(29%)

OEM

Catering+51%YoY


Non-Café

Dessert Café

Catering/Pop-Up

98%

94%

98%

93%4%

5%

2%

2%

2%

2%

206

312

405

599

Q2/18 Q2/19 1H/18 1H/19

+48%

+51%

Revenue Increased YoY and 1H/19 driving by the Increase in Dessert Cafe Sales

16

SSSG

Total Revenue by Business Category (Million Baht)

201 207232

266 292

-7.4% -11.1%

4.2%11.7%

16.4%

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

Dessert Café Sales (MB)

Same-Store-Sales-Growth (%)

• Revenue from Dessert Café in Q2/2019 was THB 292 million increased by THB 91 million or 45% from Q2/2018 due to 8 more branches compared to Q2/2018, together with better Same Store Sale Growth mainly from take-home products, new menus and seasonal menus.

• Revenue from Non-café in Q2/2019 was THB 14 million increased by THB 13 million or 1,300% from Q2/2018 due to the higher volume of major OEM customers’ orders.

• Revenue from Catering and Pop-Up in Q2/2019 was THB 6 million increased slightly by THB 2 million or 50% from Q2/2018 due to additional catering teams which results in generating more revenue from pop-up stores.

• For the first half (1H) of 2019, total operating revenue was THB 599 million increased by THB 194 million or 48% from 1H/2018, as the total operating revenue from both Q1 and Q2/2019 rose from the same period last year. The increase was mainly due to:• Revenue from Dessert Café in 1H/2019 increased by THB

161 million or 41% from 1H/2018 as more branches are opened, together with significant improvement in SSSG.

• Revenue from Non-Café in 1H/2019 increased by THB 29 million or 2,900% from 1H/2018 from the higher OEM order volumes, which started from late 2018.

Q2/2019 vs Q2/2018YoY

1H/2019 vs 1H/20181H

Dessert Café Sales and Same-Store-Sales-Growth


67.0%64.4%

67.4%64.9%

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

17

Gross Profit Margin

Gross Profit

Gross profit in Q2/2019 was THB 201 million increased by THB 63 million or 46% from Q2/2018 in line with higher sales in Q2/2019 compared to Q2/2018.

138

201

273

389

Q2/18 Q2/19 1H/18 1H/19

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.

+42%

+46%

Gross profit margin in Q2/2019 was 64.4% decreased by 2.6% from Q2/2018, due to an increase in sales of take-home and OEM products, which usually have lower gross profit margin.

Q2/2019 vs Q2/2018YoY

1H/2019 vs 1H/20181H

Gross profit was increased by THB 116 million or 42% from 1H/2018. The increase was mainly attributable to 4 branches opened in Q1 and 2 branches in Q2 with continuous launch of take-home products, new menus and seasonal menus during 2019.

Gross profit margin in 1H/2019 was 64.9% decreased by 2.5% from 1H/2018. The decrease was mainly attributable to the higher portion of OEM and take-home sales which yields lower GPM.


68

85

134

160

Q2/18 Q2/19 1H/18 1H/19

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

18

Selling expenses in Q2/2019 was THB 85 million increased by THB 17 million or 25% from Q2/2018 in line with the new branch opening in Q2/2019.

Selling expenses was THB 160 million, increased by THB 26 million or 19% from 1H/2018, due to the increase in selling expenses regarding new 4 branches opened in Q1/2019 and 2 new branches opened in Q2/2019

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

+19%

+25%

Selling expenses to total revenue in Q2/2019 was 27.0% improved by 5.5% from Q2/2018. The increase was due to higher SSSG from take-home product sales, while limited additional selling expenses are needed. Moreover, manpower expenses per branch reduced from operational improvement.

Selling expenses to total revenue in H1/2019 was 26.5% improved by 6.2% from 1H/2018. The decrease was mainly from significant increase in sales from dessert café both in Q1 and Q2/2019, while the selling expenses per store did not increase significantly as a result of manpower expense control at each branch and process efficiency.

Q2/2019 vs Q2/2018YoY

1H/2019 vs 1H/20181H

32.7%26.5%

32.5% 27.0% 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.


39 41

72

82

Q2/18 Q2/19 1H/18 1H/19

19

Administrative expenses in Q2/2019 was THB 41 million, increased slightly by THB 2 million or 5% from Q2/2018 mainly due to an increase in salary expenses in the back office.

Administrative expenses was THB 82 million increased by THB 10 million or 14% from 1H/2018 due to the higher back office salary expenses from business expansion.

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

+5%Admin expenses to total revenue in Q2/2019 was 13.0% improved by 5.7% from Q2/2018 due to higher revenue growth while administrative expenses increased insignificantly from better expense control in the back office.

Admin expenses to total revenue in 1H/2019 was 13.6% improved by 4% from 1H/2018 due to better control of the back-office expenses while sales increased significantly in 1H/2019.

Q2/2019 vs Q2/2018YoY

1H/2019 vs 1H/20181H

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.

18.7%13.0%

17.6%13.6%

+14%

Admin Expenses to Revenue Improved from Higher Revenue Growth while Admin Expenses Slightly Increased


14.6%20.3%

29

6360

123

Q2/18 Q2/19 1H/18 1H/19

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

20

Net profit in Q2/2019 was THB 63 million increased by THB 34 million or 117% from Q2/2018 due to the increase in operating revenue resulting from the increase in sales from dessert café, non-café, and catering and pop-up stores.

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

+117%

Net profit margin in Q2/2019 was 20.0% increased by 6.1% from Q2/2018 due to the increase in revenue from dessert café, better expense management and production efficiency in Q2/2019

Net profit margin in 1H/2019 was 20.3% increased by 5.7% from 1H/2018 as the operating revenue increased, while the SG&A expenses did not increase significantly as the company had better expense control.

Q2/2019 vs Q2/2018YoY

1H/2019 vs 1H/20181H

Net Profit Margin

Net Profit

+105%

13.9%20.0%

Net profit was THB 123 million increased by THB 63 million or 105% from 1H/2018, due to better operation and economies of scale of operating 38 branches

Company Performance Company Overview and DirectionIndustry Outlook 21

Balance Sheet as at 30 June 2019

Total Assets Total Liabilities and Equities

62 61

403 313

57

57

505 596

70 53

1,097 1,080

18 1930 Jun 1931 Dec 18

Land, Property and Equipment

Other current assets

Short-term Investment

Other non-current assets

Cash and Cash equivalent 6%

37%

5%

6%

46%

6%

29%

5%

5%

55%

• Short-term investment decreased by THB 90 million or 22% as a result of dividend payment in Q2/2019.

• Land, property, plant and equipment increased by THB 91 million

or 18% because of the plant expansion and the increase in new

branches.

116 128

24 27

957 925

1,097

18 19

Equity

Non-current Liabilities

Current Liabilities

30 Jun 1931 Dec 18

11%

2%

87%

12%

2%

86%

1,080

Total Assets

The total assets of the company decreased by THB 17 million or 2%

from 31 December 2018. Changes are highlighted as follows:

Total Liabilities

The total liabilities of the company increased by THB 15 million or

11% from 31 December 2018. The increase was due to the THB 10

million increase in tax payable as a result of the higher net profit.

Total Equity

The total equity of the company was decreased by THB 32 million or

3% from 31 December 2018. The decrease was due to the dividend

payment for the year ended 2018, which was paid in Q2/2019 with the amount of THB 155 million.

-2% -2%

(Million Baht) (Million Baht)


Key Financial Ratios

22

0.10 0.09

0.15 0.140.17

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

D/E (Times)ROA* (%)

ROE* (%)EPS (Baht per share)

0.040.05

0.060.07 0.08

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

14.2%13.4% 13.8%

15.9%

20.6%

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

15.7%14.7%

15.6%

17.7%

23.4%

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

*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.

01

02

03 Company Overview and DirectionOutlines After You company background and its strategic direction

Company PerformanceDisplays After You financial performance from the latest quarter

Industry OutlookIdentifies factors affecting the Thai Food and Dessert Industry


After You Business at a Glance

24

M & M 2007Company Limited

(Not yet in operation)

100% 100%

After You Hong Kong Limited

(Not yet in operation)

100%

Aurum and AurumCompany Limited

(Distributor and supplier of bakery products and equipment)

After You Public Company Limited(Sale of Desserts)

‘After You Dessert Café began with a passion to share love, recreating something delightful, just like mom’s kitchen’

Company structure

2H’2019

THE 1ST AFTER YOU @ J-AVENUE THONGLOR

Increased registered capital to THB 50 mm

• Launched ‘After You Durian’• Received GMP and HACCP

Introduced take-away products

• Introduced first home-cooked product (Pancake Mix)

• Opened 6 new branches in 1H/2019

Established ‘After You 2007’ • Established After You Company Limited

• Started Catering Services

• Started collaboration with corporate customer and airlines

• Partner with delivery operator

FIRST OVERSEAS BRANCH IN HONG

KONG

2007 2011 2014 2017 Q2’2019

Company History and Background

• LISTED IN ‘MAI’ MARKET• New factory at Samutsakorn• Launched Maygori• Increased registered capital to

THB 80 mm for IPO

2010 2012 2016 2018


After You Strengths

25

Strengths

Leading Product Innovation and R&D01 Pioneer of Dessert Café with Quality Product and Service

✓ After You opened the first branch at J Avenue Thonglor in 2007

✓ The company offers products made from the finest ingredients and retains the highest standard of quality and service creating a unique cozy and warm atmosphere

✓ After You has a strong R&D team that continuously offers new menus and recipes to enhance customers’ experience and satisfaction

Pioneer of Dessert Café with Quality Product and Service

Leader in Product Innovations

Leading Product Innovation and R&D01 Pioneer of Dessert Café with Quality Product and Service

✓ Continuous growth through domestic and international branch expansion with remodeling of existing store to increase takeaway and capability improvement

✓ Strong brand awareness among dessert café in Thailand

✓ After You offers multiple store formats in all high traffic, strategic locations in Bangkok and other main provinces

✓ The aim is to reach every target group of different genders, occupations, and lifestyles

High Growth Potential with Strong Brand Awareness

Strategic Locations Under Multiple Formats


After You Strategic Direction

26

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)

✓ Actively seeking collaboration opportunities

▪ OEM partnership with airlines and corporates

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

▪ Co-marketing partners

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 1H/2019

27

1 2 4 7 811

15

20

27

32

38NorthChiangmai – 1

North EastKorat – 1Udornthani – 1

SouthPhuket – 1Hadyai – 1

EastPattaya – 1

CentralBangkok – 26Nontaburi – 3Samutprakarn – 2Patumthani – 1

✓ Increasing sales✓ Increasing distribution hub✓ Larger area coverage

6 Branches Opened in 1H/2019, 2-4 Branches in 2H/2019

Icon Siam – 16 Jan 101 The Third Place – 5 Feb

The Market – 20 Feb

Central Patong – 15 Feb

Central Hadyai – 15 JunSukhumvit 11 – 30 Apr

Domestic Expansion


1. Branch Expansion: Seek new opportunities through pop-up store and expanding existing store sales through remodeling

28


✓ Increasing takeaway sales✓ Increasing turnover rate✓ Convert existing store into a distribution

hub

✓ Test new market & explore demand✓ Obtaining potential branches at low costs✓ 7-10 days sales at up-country malls & events

Silom Complex – first store remodelingMRT – Pop up store

Central Plaza Surat Thani ✓ Domestic Expansion:▪ Selectively expand


stores



Pilot locations through Pop-Up Stores (1-2 per month)

Remodeling After You Existing Stores


1. Branch Expansion: Hong Kong branch expansion through partnership is on track

29

✓ New market opportunity✓ Expanding customer base

✓ Relatively Low regulations for FDI✓ High numbers of tourists from China ✓ High spending per head as a result of high

income

Why Hong Kong?

Hong Kong Branch Partnership Criteria


✓ Domestic Expansion:▪ Selectively expand


stores



Hong Kong Branch Progress Update

Q4/2019Q3/2019Q2/2019

Complete Contract

Store Construction

Operate

Store Design

Staff training at Bangkok Office+

Preparation for Store Opening+

✓ Have restaurant business in China facilitating growth to China

International Expansion Through Partnership


✓ Enhance SSSG✓ Retain Existing Customers

2. Strong Product Innovation: Launched Approximately 8 Products in 1H/2019

30

Leading Product Innovation and

R&D

✓ Strong and consistent innovative R&D team

✓ More take-home products

✓ Expansion into new product line (Pancake Mix)

✓ Increase Sales✓ Use existing branch as a distribution hub

✓ Longer shelf life✓ Supported by more distribution channel

(Modern Trade)

Innovative R&D Team Launches 8-10 Products Per Year

Continuously Increasing Take-Away Products

Expansion into New Product Line

Jan 21

Feb 11

Mar 7

May 5

Jun 1

??

??

Feb 5

Feb 26

Apr 11

May 14

Jun 19

??


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

31

Sales Channel Enhancement

✓ Actively seeking collaboration opportunities

▪ OEM partnership with airlines and corporates

▪ Distribution Channel partnership with delivery players (Grab, GET, 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


New PlantMachineries and Equipment Cold Storage

✓ Improve efficiency✓ Increase production

capacity✓ Increase economies of scale

1 2 3

Efficiency and Capability

Improvement

✓ Expanding production facilities and benefit through economies of scale

✓ Increasing Staff Capabilities

✓ Reduce cold storage rental Better supply management

✓ Preparation for exports for international operation

✓ Accomodate increasing demands

✓ Facilitate export and international operation

✓ Increase productivity

32

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

Investment in Facilities for Growth

Investment for Staff Capability Improvement


Summary of Action Plan in 2H/2019

33

Strategies Initiatives in 2H/2019

• 2-4 branches

• Remodeling branch

• Pop up stores in selected locations

• 1st Hong Kong outlet before Christmas

• New flavors of dine-in and take-home products

• Return of seasonal menus

• Dessert for festival (Mooncake)

• New OEM partner with exclusive products

• Promotion with platform provider (Grab, GET,Lineman,)

• Increasing orders from exisitng OEM partners

• Continuous development of store design and manpower at branches

• Utilization of new phase facility

• Ecomomy of scale for procurement functions

1 Dynamic Branch Expansion

3 Sales Channel Enhancement

4Efficiency and

Capability Improvement

2 Leading Product Innovation and

R&D

Documents

Q2’2019 KEY HIGHLIGHTS - listed companyau.listedcompany.com/misc/presentation/20190826-au-am-2q2019-01.pdfQ2’2019 KEY HIGHLIGHTS 117% Net Profit Growth YoY Branch Expansion on