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TSX-V: JKCORPORATE PRESENTATION – APRIL 2021
A P P - T O - D O O R D I N I N G F O R T H E O N - D E M A N D G E N E R AT I O N .
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Disclaimer, confidentiality and forward-looking statements
The Presentation contained in this document has been prepared by Just Kitchen Holdings Corp. using its best efforts to realistically and factually present the information contained. However, subjective opinion, dependence upon factors outside Just Kitchen Holdings Corp’s control and outside information sources unavoidably dictate that Just Kitchen Holdings Corp. cannot warrant the information contained to be exhaustive, complete or sufficient. In addition, many factors can affect the Presentation which could significantly alter the results intended by Just Kitchen Holdings Corp., rendering the Presentation unattainable or substantially altered. Therefore, interested users should conduct their own assessment and consult with their own professional advisors prior to making any investment decisions.
This Presentation does not constitute a prospectus or public offering for financing, and no guarantees are made or implied with regard to Just Kitchen Holdings Corp.proposed ventures.
Confidentiality: The Presentation is being disclosed to the user for the user’s discussion, review, and/or evaluation only. The user agrees to hold the Presentation, and all related information and discussions, in strict confidence, except that user may disclose the Presentation to a limited number of advisors and employees of the user to the extent necessary for user to adequately evaluate the Presentation. User warrants that any such persons shall be advised of the confidential nature of the Presentation before gaining access to the same and that no such advisor or employee shall use or disclose the Presentation except as permitted by this Agreement.
Projections: The presentation’s financial and other projections have been prepared using assumptions and hypotheses created by Just Kitchen Holdings Inc.management based on information provided to them and through due diligence. The assumptions used in the preparation of the projection reflect management’s intended course of action for the projection period based upon management’s judgement as to the most probable setoff economic conditions if the assumptions they consider most likely are realized. The assumptions may not necessarily be the most probable and are based upon information existing as at the date of this presentation.
The assumptions are those that management believes are significant to the projection. Some assumptions may not materialize, and unanticipated events and circumstances may occur subsequent to the date of this projection; therefore, the actual results achieved during the projection period may vary materially from theprojections.
This projection is based on our assumptions and there is a major risk that actual results will vary, perhaps materially, from the results projected.
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DELIVERY-ONLYCUSTOMERS
TAIPEI CITY
Problem: Brick and mortar restaurants are costly to open and operate:
§ 3-6% profit margins on average2
§ Failure rate of 70% within 3-5 years of opening3 (pre-pandemic)
GHOSTKITCHEN
1. Euromonitor, 2020 2. Toast Lab, 2019. 3. Hong Kong Business, Delivering the Virtual Restaurant of Tomorrow, October 2019.
Ghost kitchens – an emerging industry estimated to be worth $1trillion by 20301
Solution - Ghost kitchens:
§ Commercial kitchens operating “delivery-only restaurants”
§ No customer-facing storefront (dining room, pick-up counter)
§ Meals are ordered / delivered through apps or online
§ Advertise menus to customers through social media channels / apps
§ Eliminates / reduces overhead costs such as front of house staff, rent, real estate, electricity, etc.
4
8 8 11 17 27 36 42 47 53 58
92 92 89 83 73 64 58 53 47 42
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Offline (call-in delivery, walk-in orders)
Online (via web or app)
Market overview – online meal delivery
ONLINE VS. OFFLINE SHARE OF FOOD DELIVERY MARKETS (%)1
1. McKinsey & Company, The changing market for food delivery, 2016 2. Research and Markets, 2019 3. Hong Kong Business, Delivering the Virtual Restaurant of Tomorrow, Oct 2019 4. Upserve, 2020
GLOBAL ONLINE FOOD DELIVERY MARKET (2020 –2023)2
USD$111
USD$154
2020 2023
BILLION
The “new normal” of dining – even before the pandemic, consumer preferences were shifting toward online food delivery.
2019 ONLINE FOOD DELIVERY INDUSTRY IN ASIA3
= nearly 50% of global demand.
USD $53 BILLION
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BILLION
11.5% CAGR 20.7 Billion Meals / yr.
60% of Americans order food 2 times per week4, which accounts for:
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Company highlights – the opportunity
§ Seasoned management team: extensive F&B and e-commerce expertise, history of multiple high-profile take-outs (Milk & Eggs to GrubHub, Guitar Hero to Activision Blizzard).
§ “Ghost Kitchens 2.0”: Technology, Content, Kitchen Infrastructure and Standard Operating Procedures.
§ Exponential revenue growth: 30+ spokes by end of 2021.
§ Poised for rapid global expansion: planning to expand to Hong Kong, the Philippines, the United States, and Singapore in 2021.
§ Capturing a larger market share: offering 15 exclusive in-house brands, 5 franchise brands, various price points, grocery delivery.
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Leadership team
Jason Chen, Co-Founder, CEO, President, and Director: 25+ years top-level F&B management, Founder of Bayshore Pacific Hospitality Ltd with combined revenue of over $100 million.
Kent Wu, COO & Director: 20+ years e-commerce and logistics experience; founder of e-commerce grocery platform Milk and Eggs (acquired by GrubHub); three past successful exits.
John Yu, CMO: 15+ years digital marketing; founder of multiple consumer brands across numerous industries.
Mark Lin, CTO: 10+ years in business development and operations management for info tech and payment processing companies in North America and APAC.
Yang Liu, CSO: 15+ years in corporate development for publicly-traded companies in the Food & Beverage Industry.
Adam Kniec, CFO: Former CFO of 10+ companies in industries including software development, casinos, gaming.
Kai Huang, Co-Founder: Creator of Guitar Hero & Co-Founder & CEO of RedOctane (acquired by Activision Blizzard); Co-Founder & CEO of Blue Goji; Co-Founder & CEO of Adux Software.
Freddie Liu: Partner at Purestone Capital Group; CSO of TPK Holdings – currently one of the world’s largest makers of touch screens for mobile phones and tablets; former head of Real Estate unit at Citibank.
Darryl Cardey: Chartered Professional Accountant previously with KPMG; director and financial advisor to public and private companies in the resource and technology sectors.
Darren Devine: Co-Principal of CDM Capital Partners; advisor to numerous multinational M&A transactions and IPOs.
E X E C U T I V E O F F I C E R S I N D E P E N D E N T D I R E C T O R S
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“Ghost Kitchens 2.0” – uniquely positioned across the value chain
JustKitchen’s “Ghost Kitchens 2.0” vs. peers:
§ Built-out network of kitchen infrastructure
§ Technology-enabled
§ Operational expertise and established SOPs (Standard Operating Procedures)
§ Content-rich portfolio of brands
Infrastructure Provider
Expertise / SOPs
Virtual Franchise Brands
Proprietary Software
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§ Hubs = full-scale commercial kitchens that semi-prepare food items
§ Spokes = smaller “finishing” kitchens that complete meals for delivery
§ Orders automatically routed to spoke kitchen nearest to customer
Advantages:Hub
Spoke
Spoke
Spoke
Spoke
JustKitchen – optimized ghost kitchens in a unique hub-and-spoke model
§ Extends reach / customer base – typical ghost kitchens limited by “delivery radius” of 4- 5 km
§ Higher margins & efficiencies
§ Efficient output – food is ready for delivery in 5 mins and delivered in 20-30 mins
§ Standardized kitchens and preparation methods = consistent food quality & safety
TAIPEI CITY
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JustKitchen – proprietary tech stack for optimizing ghost kitchens
Operations Software
Knowledge Transfer / Training
§ Kitchen OSTM spoke
software
§ Day-to-day operations
§ Live reporting &
analytics
§ VTS (virtual training
system)
§ Remote training /
administration
§ Remote brand
deployment
Store / Brand Integration
§ Store level
management
§ Brand & menu control
§ Performance analytics
§ Asset tracking
B2C Ordering App
§ Loyalty / rewards
program
§ Exclusive brands
§ Gamification
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Customer data informs menu creation
§ Improves supply chain management, aids marketing and development of new brands
§ Predictive analytics through data aggregation from multiple sources
§ Leveraging data for agile business strategy development
Delight
25% customer feedback & data to create menus & project demand
Data stack – leveraging data to create value
Delight
CustomerSpokesHubMenu
Creation Delivery
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§ Price points: $ $$$
§ Cuisine types: Western Asian
§ Round-the-clock meal offerings
§ Demographically designed & targeted menus
§ Agility of brands = digital real estate
§ Branded grocery items
$
$$$
AsianCuisine
Western Cuisine
Brands that are tailored – offering customers more variety
Partner Brands
In-House Brands
$$$
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PROOF OF SCALABLE BUSINESS MODEL
HIGH MARKET EXPOSURE
§ Cost efficient to start a business
§ Mature market to test and scale up globally
§ Mostly lockdown-free during COVID
§ High Density (24 million people on a 36,193 km2
island)
§ USD $16 Billiondining market, growing 17 years consecutively
§ Established food & beverage industry
JustKitchen’s expansion plans for 2021 include:
Hong Kong
Singapore
North America
Philippines
Taiwan - first step to global expansion
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Country Taiwan
Capital cost per Spoke $150,000
Average daily orders per Spoke* 250
Average dollar amount per order $15.00
Annual gross revenue per Spoke (365 days) $1,368,750
Operating profit per Spoke $273,150
Operating profit margin 20%
One-Year ROIC 82%
*Spoke capacity in Taiwan expected to range from 300 to 400 orders per day.
Sample – economics and growth trajectory
Economics (per mature spoke) Planned global spoke kitchen openings - 2021
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Timeline – target milestones
By IPOYTD2020
2021
Obtain seed capital, incl. from Sparklabs
Complete initial Boardappointments
Operate with one Hub and four Spokes
Secure key employees and strategic advisors
Launch JustMarket grocery delivery as a new business line
Grow to 11 in-house food brands/menus
Partner with new third-parties/restaurants
Grow to 8 Spokes
Continue core data technology build-out
Grow to 13 Spokes
Grow to 14 in-house food brands/menus
Grow to two Hubs in Taiwan
Launch proprietary meal ordering app
Launch customer loyalty/rewards program
22 Spokes in Taiwan (35 Spokes in Taiwan by 2022)
Expand to Hong Kong, Singapore
Expand to USA, Philippines
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Cap Table: JustKitchen
Basic Shares Outstanding 59,162,288
Options & RSUs 6,715,000
Performance Warrants 10,000,000
Management Team, Board, Employees 50%
Estimated Working Capital (IPO) $6,000,000
Cap table and comparables
Comparable Valuations (April 6, 2021) Market Cap TEV/Rev Rev Growth
(C$ millions) 2021 2022 21-22
DoorDash (DASH-US) $53,776 10.3 8.2 26%
Ocado Group PLC (OCDO-LON) $26,859 5.5 4.7 16%
Just Eat Takeaway.com (TKWY-AMS) $17,777 3.2 2.6 22%
Grubhub Inc. (GRUB-US) $7,426 2.8 2.4 17%
Goodfood Market Corp. (FOOD-CA) $635 1.7 1.4 20%
HelloFresh S.E. (HFG-FRA) $16,628 2.4 2.1 15%
Blended Peer Average 3.7 3.1 19%
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JustKitchen – making global headlines
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Thank you.
JASON CHENPresident & CEO
INVESTOR RELATIONS
investors.justkitchen.com
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