Gourmet — Interim / Quarterly Report 2014

Jun 25, 2014

Gourmet Master Co. Ltd.

Ticker : 2723 TT

2014.05.15

Company Overview

• Brand Name :

• Founder/Chairman：Wu, Cheng-Hsueh

• Paid-in Capital：NT$1.411 billion (as of 2014.03.31)

• Focusing on chain stores of fresh bread, cakes and

beverages

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Company History

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US
No. of store：9 China
No. of stores：417
Taiwan
No. of store 335
Hong Kong
No. of store 5
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Australia
As of March 31, 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：36 Self-own：417 Self-own：7 JV：5 JV：5
Franchise：297 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 March 31, 2014

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Achievements in the past 12 months

China SSSG turns positive

2[nd] Generation store roll-out

New growth engine from the US New franchise model rollout

5

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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5yr CAGR 25%
16,000 6%
14,000 5%
22%
12,000 4%
25%
10,000
Others
5% 32%
8,000
Taiwan
5%
40%
6,000 China
72%
10%
70%
2% 52%
4,000
64%
18%
55%
2,000 84%
99% 43% 72%
14%
0
2007 2008 2009 2010 2011 2012 2013 1Q2014
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Income Statement

NT$mn 2010 2011 2012 YoY 2013 YoY	2014Q1 YoY Q0Q
Sales 8,347 11,456 13,551 37.3% 15,114 17.7%	4,219 17.7% 7.3%
Gross Profit 4,411 6,133 7,485 39.1% 8,395 21.4%	2,412 19.9% 12.1%
Operating ~~Expense~~ 3,320 4,729 6,180 42.5% 7,454 29.9%	2,128 23.9% 8.5%
Operating ~~Income~~ 1,091 1,404 1,306 28.7% 941 -7.3%	283 -3.3% 49.2%
NI before tax 1,156 1,526 1,427 32.0% 924 -6.8%	299 -0.6% 90.2%
NI after tax 837 1,138 1,009 36.0% 604 -11.6%	186 -1.9% 77.4%
GP Margin % 52.80% 53.50% 55.24% 55.54%	57.17%
Operating ~~Margin %~~ 13.10% 12.30% 9.65% 6.23%	6.72%
Net Margin % 10.00% 9.90% 7.46% 4.00%	4.40%

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Balance Sheet

NT$mn 2012.12.31 %	2013.12.31 % 2014.03.31 %
Cash and Bank Deposit 3,284 38%	2,789 32% 2,764 31%
Inventory 389 5%	455 5% 471 5%
Current Assets 4,612 54%	3,995 45% 3,954 45%
Fixed Assets 3,951 46%	4,833 55% 4,907 55%
Total Assets 8,563 100%	8,828 100% 8,861 100%
Current Liabilities 2,258 26%	2,438 28% 2,362 27%
L/T Liabilities 0 0%	116 1% 84 1%
Total Liabilities 2,329 27%	2,554 29% 2,446 28%
Equity 6,234 73%	6,274 71% 6,415 72%

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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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