Gourmet — Interim / Quarterly Report 2014

Aug 11, 2014

Gourmet Master Co. Ltd.

Ticker : 2723 TT

2014.08.12

Company Overview

• Brand Name :

• Founder/Chairman：Wu, Cheng-Hsueh

• Paid-in Capital：NT$1.411 billion (as of 2014.06.30)

• Focusing on chain stores of fresh bread, cakes and

beverages

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Company History

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US
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No. of store：12 China
No. of stores：440
Taiwan
No. of store 335
Hong Kong
No. of store 6
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Australia
As of June 30, 2014 No. of stores：5
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2004

• －

• 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

－ 2012/07 Opened the 1st store in Hong Kong － 2013/09 US central kitchen in operation

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Group structure

Gourmet Master (Cayman)

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100% 100% 100% 51% 50%
Taiwan China USA Australia Hong Kong
Self-own：40 Self-own：440 Self-own：10 JV：5 JV：6
Franchise：293 Cent kitchen：11 Cent kitchen :1 Cent kitchen：1 JV with Café de
Better Simple : 2 Coral (341.HK)
(small size)
65%
Cent kitchen：3
JV：2
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As of June 30, 2014

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Achievements in the past 18 months

China SSSG turns positive

2[nd] Generation store roll-out

New growth engine from the US New franchise model rollout

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Store remodeling in China / Taiwan

After

Before

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Up & Coming café brand in the US

Chino Hill store, California July 2013

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Financial Results

Sales Breakdown by Region

NT$mm

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16,000 5yr CAGR 25% 6%
14,000 5%
22%
12,000 4%
25%
10,000
Others
5% 32%
11%
8,000
Taiwan
5%
18%
40%
6,000 China
72%
70%
2% 52%
4,000
64%
71%
55%
2,000 84%
99% 43%
14%
0
2007 2008 2009 2010 2011 2012 2013 6M2014
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Income Statement

NT$mn 2010 2011 2012 YoY 2013 YoY	2014H1 YoY
Sales 8,347 11,456 13,551 37.3% 15,114 17.7%	8,342 16.2%
Gross Profit 4,411 6,133 7,485 39.1% 8,395 21.4%	4,744 17.5%
Operating ~~Expense~~ 3,320 4,729 6,180 42.5% 7,454 29.9%	4,373 24.4%
Operating ~~Income~~ 1,091 1,404 1,306 28.7% 941 -7.3%	371 -29.0%
NI before tax 1,156 1,526 1,427 32.0% 924 -6.8%	376 -27.8%
NI after tax 837 1,138 1,009 36.0% 604 -11.6%	199 -40.8%
GP Margin % 52.80% 53.50% 55.24% 55.54%	56.87%
Operating ~~Margin %~~ 13.10% 12.30% 9.65% 6.23%	4.45%
Net Margin % 10.00% 9.90% 7.46% 4.00%	2.38%

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Balance Sheet

NT$mn 2012.12.31 %	2013.12.31 % 2014.06.30 %
Cash and Bank Deposit 3,284 38%	2,789 32% 2,528 29%
Inventory 389 5%	455 5% 481 5%
Current Assets 4,612 54%	3,995 45% 3,724 42%
Fixed Assets 3,951 46%	4,833 55% 5,056 58%
Total Assets 8,563 100%	8,828 100% 8,780 100%
Current Liabilities 2,258 26%	2,438 28% 2,538 29%
L/T Liabilities 0 0%	116 1% 88 1%
Total Liabilities 2,329 27%	2,554 29% 2,626 30%
Equity 6,234 73%	6,274 71% 6,154 70%

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Business plan for 2014 - 2016

China-

Launch new format stores and test new operating model

Taiwan-

Store format upgrades and New franchise system to enhance brand image

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

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