Gourmet — Annual Report 2015

Mar 11, 2016

Gourmet Master Co. Ltd.

Ticker : 2723 TT

2015.11.20

Company Overview

==> picture [39 x 38] intentionally omitted <==

• Brand Name :

• Founder/Chairman ： Wu, Cheng-Hsueh

==> picture [126 x 97] intentionally omitted <==

• Paid-in Capital ： NT$1.411 billion (as of 2015.09.30)

• Focusing on chain stores of fresh bread, cakes and

beverages

==> picture [143 x 142] intentionally omitted <==

==> picture [147 x 103] intentionally omitted <==

2

Company History

==> picture [24 x 10] intentionally omitted <==

----- Start of picture text -----

US
----- End of picture text -----

==> picture [378 x 295] intentionally omitted <==

----- Start of picture text -----

No. of store：16 China
No. of stores：485
Taiwan
No. of store 330
Hong Kong
No. of store 8
----- End of picture text -----

－ 2004 Opened the 1st store in Taiwan － 2005/02 Established company in Taiwan

－ 2005/12 Established the central kitchen and R&D center in central Taiwan

－ 2006/09 Established Golden 85

Investments, Inc. (US company)

2006

• － Opened the 1st store in Sydney

－ 2007/12 Opened the 1st store in Shanghai

－ 2008/09 Opened the 1st store in Irvine, CA in US

－ 2010/11 Listed on TWSE

==> picture [157 x 79] intentionally omitted <==

----- Start of picture text -----

Australia
No. of stores：3
----- End of picture text -----

－ 2012/07 Opened the 1st store in Hong Kong

－ 2013/09 US central kitchen in operation

As of Sep 30, 2015

3

Group structure

Gourmet Master (Cayman)

==> picture [660 x 236] intentionally omitted <==

----- Start of picture text -----

100% 100% 100% 51% 100%
Taiwan China USA Australia Hong Kong
Self-own：35 Self-own：474 Self-own：14 JV：3 Self-own：8
Franchise：295 Franchise：11 Cent kitchen :1 Cent kitchen：1 Cent kitchen：1
Cent kitchen：3 Cent kitchen：11
(small size) (small size)
65%
JV：2
----- End of picture text -----

As of Sep 30, 2015

4

Progress & Initiatives……

==> picture [105 x 86] intentionally omitted <==

• China SSSG trending up

• New format stores roll-out

• New growth engine from the US

==> picture [61 x 61] intentionally omitted <==

==> picture [105 x 86] intentionally omitted <==

• Streamlining store/production/logistic

5

Store remodeling in China / Taiwan

After

==> picture [427 x 320] intentionally omitted <==

Before

==> picture [270 x 204] intentionally omitted <==

6

Up & Coming café brand in the US

==> picture [672 x 322] intentionally omitted <==

Chino Hill store, California July 2013

7

Financial Results

8

Sales Breakdown by Region

NT$mm

==> picture [599 x 313] intentionally omitted <==

----- Start of picture text -----

5yr CAGR 20%+ 11%
18,000
16,000 6%
13%
14,000 5% 17%
22%
4%
12,000 16%
25%
Others
10,000
5% 32%
Taiwan
8,000
5%
6,000 40% 72% China
72% 71%
2% 70%
4,000 52% 64%
55%
2,000 84%
99% 43%
0 14%
2007 2009 2011 2013 9M2015
----- End of picture text -----

9

Income Statement

NT$mn 2011 2012 2013 YoY 2014 YoY	2015 9M YoY
Sales 11,456 13,551 15,114 11.5% 17,921 18.6%	15,005 14.7%
Gross Profit 6,133 7,485 8,395 12.2% 10,085 20.1%	8,559 16.9%
Operating Expense 4,729 6,180 7,454 20.6% 9,237 23.9%	7,366 8.4%
Operating Income 1,404 1,306 941 -27.9% 848 -9.9%	1,193 125.5%
NI before tax 1,526 1,427 924 -35.3% 913 -1.2%	1,105 88.3%
NI after tax 1,138 1,009 604 -40.1% 544 -10.0%	807 144.2%
GP Margin % 53.50% 55.24% 55.54% 56.27%	57.04%
Operating Margin % 12.30% 9.65% 6.23% 4.73%	7.95%
Net Margin % 9.90% 7.46% 4.00% 3.03%	5.38%

10

Business plan for 2015 - 2016

==> picture [255 x 157] intentionally omitted <==

==> picture [268 x 151] intentionally omitted <==

==> picture [169 x 163] intentionally omitted <==

Taiwan-

China-

Store format upgrades and enhance brand image

Launch new format stores and improve operation efficiency

==> picture [222 x 142] intentionally omitted <==

==> picture [226 x 133] intentionally omitted <==

Other RegionsNew store openings in the US following the operation of Brea central kitchen

11

==> picture [273 x 262] intentionally omitted <==

==> picture [416 x 93] intentionally omitted <==

12