Gourmet — Interim / Quarterly Report 2014

Jan 20, 2014

Gourmet Master Co. Ltd.

Ticker : 2723 TT

2013.11.07

Company Overview

� Brand Name :

• Founder/Chairman：Wu, Cheng-Hsueh

� Paid-in Capital：NT$1.411 billion (as of 2013.09.30)

• Focusing on chain stores of fresh bread, cakes and

beverages

Company History

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US
No. of store：4 China
No. of stores：400
Taiwan
No. of store 342
Hong Kong
No. of store 4
Australia
As of September 30, 2013 No. of stores：5
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－ 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, LA in US

－ 2010/11 Listed on TWSE

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

Group structure

Gourmet Master (Cayman)

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100% 100% 100% 51% 50%
Taiwan China USA Australia Hong Kong
Self-own：35 Self-own：400 Self-own：2 JV：5 JV：4
Franchise：305 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
As of September 30, 2013
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Investment Highlights

- Well-established brand image

• Fully integrated value chain

- Product innovation capability

• Turnaround in China / Taiwan

• New growth engine in the US

Financial Results

Sales Breakdown by Region

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NT$mm
14000
5%
12000 4% 6%
25%
10000
22%
32%
5%
8000 Others
5% Taiwan
40%
6000
China
70%
52%
4000 2% 72%
64%
55%
2000 84%
99% 43%
14%
0
2007 2008 2009 2010 2011 2012 9M13
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Sales Breakdown by Product

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14000
NT$mm
12000
29%
10000
29%
28%
8000
Beverages
34%
29%
Cakes
33%
6000 36%
Bread
32%
32%
4000
34%
45%
37%
45% 39%
2000 36%
39%
34%
34%
49%
21%
0 6%
2007 2008 2009 2010 2011 2012 9M13
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Number of Stores V.S. Sales -China

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Sales(NT$mm)
400 10,000
9,371
Store #
+17% YoY
360
8,102
320 8,000
7,312
280
240 6,000
200 4,690
160 4,000
120 2,704
80 2,000
40
509
1
0 0
2007 2008 2009 2010 2011 2012 3Q13 2007 2008 2009 2010 2011 2012 9M13
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Number of Stores V.S. Sales -Taiwan

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Sales(NT$mm)
320 3,619
3,409
3,500 3,251 3,291
280
2,952
3,000 2,786
240
Number of Stores
2,414
2,500
200 Self-owned
Franchise 2,000
160
120 1,500
80 1,000
40 500
0 0
2006 2007 2008 2009 2010 2011 2012 3Q13 2007 2008 2009 2010 2011 2012 9M13
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Number of Stores v.s. Sales -Others (USA and Australia)

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10
+25% YoY
Sales(NT$mm) 699
9
700 666
8 Number of stores
600
7 526
500
6
5 400 365
329
4
300
3
200
2
100 65
1
23
0 0
2007 2008 2009 2010 2011 2012 3Q13 2007 2008 2009 2010 2011 2012 9M13
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• Monthly sales in US is US$500 – 700K/store, 5-7 times of average monthly sales per store in Shanghai

• The major client base has extended from Asian to Non-Asian 11

Income Statement

NT$ mm

2009 2010 2011 YoY 2012 YoY	9M13 YoY
Sales 6,283 8,347 11,456 37.3% 13,479 17.7%	11,182 11.7%
Gross Profit 3,173 4,411 6,133 39.1% 7,446 21.4%	6,244 12.6%
Operating Expense 2130 3,320 4,729 42.5% 6,145 29.9%	5,493 22.1%
Operating Income 1043 1,091 1,404 28.7% 1,301 -7.3%	751 -28.0%
NI before tax 1054 1,156 1,526 32.0% 1,422 -6.8%	767 -34.2%
NI after tax 758 837 1138 36.0% 1,006 -11.6%	500 -40.6%
GP Margin % 50.50% 52.80% 53.50% 55.24%	55.84%
Operating Margin % 16.60% 13.10% 12.30% 9.65%	6.72%
Net Margin % 12.10% 10.00% 9.90% 7.46%	4.47%

Balance Sheet

	NT$ mm
2011.12.31 %	2012.12.31 % 2013.09.30 %
Cash and Bank Deposit 4,144 52%	3,284 38% 2,773 32%
Inventory 371 5%	389 5% 466 5%
Current Assets 5,444 68%	4,612 54% 3,958 45%
Fixed Assets 2,552 32%	3,951 46% 4,783 55%
Total Assets 7,996 100%	8,563 100% 8,741 100%
Current Liabilities 2,016 25%	2,258 26% 2,580 30%
L/T Liabilities 1 0%	0 0% 68 1%
Total Liabilities 2,085 26%	2,329 27% 2,648 30%
Equity 5,911 74%	6,234 73% 6,093 70%

Outlook

China-

To gradually launch new format stores and test new operating model

Taiwan-

To roll out store format upgrades from 4Q 2013 to enhance brand image

Other RegionsTo accelerate store openings in the US following the operation of new central kitchen in Sep. 2013

Q&A