2Q/FY2023

Opportunity Day
2 Mar 2023
Agenda

01 Company Background

02 2Q/FY2023 Financial Update

03 Business Update

2
Agenda

01 Company Background

02 2Q/FY2023 Financial update

03 Business Update

3
MC Group Public Company Limited
or “MC” was listed on the Stock
Exchange of Thailand (SET) in July 2013.
The Group manages retailing business
of apparels and lifestyle products
under brands owned by the group of
companies and partners.

Mc Jeans brand is among the most

successful house brand of the group
and has been operated for more than
47 years since 1975. Mc Jeans is well
acknowledged of a reliable quality
craftsmanship of product, offering a
wide selection of product categories
including ready-to-wear denim
products and other day-to-day lifestyle
necessities. 4
OUR VISION & MISSION

To Ensure Best Customer

1 Satisfaction

To Be a Happy Workplace
To become a leading Thai fashion 2 and Employees are Proud
and lifestyle retailer of Organization
and create sustainable values
for stakeholders

To Gain Trust from Investors

3 and Shareholders for
Sustainable Returns
5
 The Company formulated its business plan
• To become number one Thai-Labeled fashion and lifestyle retailer.
• To achieve sustainable revenue growth and maximize profitability.

The following strategies will be implemented thoroughly to achieve its objectives and targets.

1 2
Product Strategy Sales Channel Strategy
• Extend and strengthen product • Expand sales channels nationwide to cover
offerings, innovations and brands to growing customer base
meet demands of customers of all • Continuously expand E-commerce channel
groups, ages and lifestyles. • Continuously integrate O2O platform

3 •
International Market

Expand into foreign markets to

cover countries under ASEAN
4 •
New S-Curve

Seek M&A or joint ventures

opportunities with partners.
5 Operational
Effectiveness
• Emphasize on efficiency
Economic Community (AEC) as • Look for new business improvement in
well as other countries with opportunity to diversify management
good potentials. portfolio
6
MEDIUM TERM BUSINESS PLAN
VISION
Become a leading Thai fashion and lifestyle retailer
and create sustainable values for stakeholders

1 2 3 4
Product Modification and Channel Development Customer Experience Inorganic Growth
New Product Introduction and Expansion and Awareness

• Reclassify Existing • E-com Acceleration • CRM Leverage • Expanded Brand and

Product Mix • Roadside Store • Revisit Brand STP and Product Portfolio
• Strategic Product Expansion Architecture (Build or Buy)
Category Extension • Non-Retailing-Store • Brand Investment for New
• Brand Collaboration Channel Prospects • Strategic Investment
• Portfolio Diversification • International Expansion (If Any)
(Non-Apparel)

Business Fundamental
Frontliner Development / Cost Restructuring / Channel Productivity / Margin Control

Organization Evolution
Organization Re-structuring / Capability Development & Talent Management / Strategic Culture

Process and Technology to Support Extended Business Value Chain

Digital Process & Workflow / Automation / Data Analytic

7
 STRONG DIVIDEND YIELD

Dividend
Yield (%)

Source: Stock Exchange of Thailand (SET)

Source : Stock Exchange of Thailand (SET) 8
FULLY INTEGRATED SUPPLY CHAIN

In-house Strong Warehouse In-house Nationwide Active

Design Relationship Management & Outsource Point of Sale Customer
Center With System Logistic Engagement
Supplier/Vendor Network

-Complete Value Chain-

Allow Business Flexibility

Maintain High Margin

The group strongly focusses on brand management, sales and marketing management,
product design, product sourcing, and warehouses and distribution channel management.
9
Agenda

01 Company Background

02 2Q/FY2023 Financial update

03 Business Update

10
Financial Highlight – Q2FY23 & H1FY23
Economic activities return to normal

Sales Revenue NPAT

THB Million THB Million
1,876
400 80%
362
1,433 350 70%

300 60%
1,117 254 246
995 250 231 50%

200 40%
CASH & Short-Term
Investment
150 30%
19.2% 23.0%
100 20%
2,111 MB
17.6% 22.0%
50 10%

0 0%

H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23

With our strong financial
position with zero debt,
MC has the resilience to
weather future crisis
Offline traffic are recovery

YoY; Offline +38%, Online -16%

Offline Sales Online Sales % Sales

THB Million THB Million

1,800 1,723 183

1,500 153
1,250
1,200
87% 92%
900

600

300

13% 8%
0 0

H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23

online offline
 Gross Profit improve with SG&A control
Benefit from discount/ promotion strategy and effective cost control

1H Gross Profit increase +33% SG&A to Sales decrease to 41%

Gross Profit SG&A

THB Million THB Million
800 769
1,300
1,219 83%
58%
700
1,100
613
78%
917 600 53%
900
500
728 419
73%
700 648 370
48%
400

42.8%
500 300 43%
68%
65.0% 65.2%
300
200 41.0% 37.6%
38%
65.1%
64.0% 63% 100
37.2%
100
0 33%

(100) H1FY22 H1FY23 Q2FY22 Q2FY23 58% H1FY22 H1FY23 Q2FY22 Q2FY23

13
 EBIT and NPAT turn positive growth

EBIT Margin increase to 24.4% Net Margin increase to 19.2%

EBIT NPAT
500 THB Million 400 THB Million 70%
461 90% 362
450
350
80% 60%
400
70% 300
350 50%
319 311 254 246
300
289 60% 250 231
40%
50%
250 200

40% 30%
200
28.7% 150
19.2% 23.0%
150
24.4% 30%
20%
100
27.8% 22.0%
100
22.0%
20% 17.6%
10%
50
50 10%

0 0% 0 0%

H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23

14
 Strong Financial Position | Bt2.1bn cash & Zero IBD

THB Million FY22 2Q23 Inventory and Cash Cycle

Cash
Cash & Short-term Investments 1,995 2,111 14.3
Rich
Accounts Receivable 203 307 13.0
12.3
Inventory 1,200 1,253 13.1
11.8
TFRS16 856 917 11.2

Other Assets 807 968 1,250 1,200 1,253

Total Assets 5,062 5,557 FY21 FY22 2Q23
Inventory Inventory Month Cash Cycle

Accounts Payable 168 339 ROA / ROE

Zero
Interest Bearing Debt 0 0
Debt 16%
TFRS16 860 928 13%
12%
Other Liabilities 359 480 14%
Total Liabilities 1,387 1,747 12% 12%

Shareholder’s Equity 3,675 3,810 FY21 FY22 2Q23

ROA ROE

15
Agenda

01 Company Background

02 2Q/FY2023 Financial Update

03 Business Update

16
MC OUTLET

No of stores.
Existing stores (As of Dec) 86
Opening new stores (Oct – Dec) 12

TOTAL FY2023 16

Key factors

Good performance of 7-11 Value of passing trade The best location inside PTT station

17
MC OUTLET
New Launch Location as of Dec’22
Northeast
Prasertsin Korat (Aug’22)
Sikhio Korat (Sep’22)
Phu Ruea Loei (Sep’22)
Dan Khun Thot Korat (Oct’22)
Tha Bo Nong Khai (Oct’22)
Phu Khiao Chaiyaphum (Oct’22)
Selaphum Roi Et (Oct’22)
Wanon Niwat Sakon Nakhon (Nov’22)

Central
Bang Pa In Ayutthaya(Jul’22)
Lak Mueang Suphan Buri (Oct’22)
Bang Bua Thong Nonthaburi (Nov’22)
Taling Chan Bangkok (Nov’22)
Lam Luk Ka Pathum Thani (Dec’22)
Pinehurst Pathum Thani (Dec’22)
Rojana Ayutthaya (Dec’22)

South
Hat Yai Songkhla (Dec’22)

18
DENIM AS A CORE CATEGORY

Value-for-Money
Premium Collection Fashion Collection Innovative Collection
Collection

Price Rage 2,890 – 4,400 THB Price Rage 695 – 2,295 THB Price Rage 1,995 – 2,595 THB Price Rage 895 – 2,395 THB

With a legacy of 45 years of quality craftmanship, We continue to search and

fulfil customer needs from time to time by offering the best denim product
Denim choice to our customer 19
EXPANDED CATEGORY IN NON-DENIM & OTHER LIFTSTYLE PRODUCTS

Fashion Base Lifestyle Base Functional Base Day-to-day Necessity

Price Rage 695 – 1,995 THB Price Rage 795 –1,495 THB Price Rage 795 –1,795 THB Price Rage 995 –1,495 THB

We serve other lifestyle essential items in non-denim categories from customer-

centric approach to proffer customers at their best quality and price
Non-denim 20
Mc GRAFFITI Play
Launch 11 - 01 - 2023
2023 BRAND DIRECTION

Mc คือแบรนด์ที่เชื่อในคุณค่าของความเป็ นตัวของตัวเอง
เชื่อในความหลากหลายและเชื่อในอิสระการใช้ชีวิตของทุกคน
Mc จึงส่งเสริมและสนับสนุนให้ทุกชีวิตได้แสดงตัวตนของตัวเอง
ออกมาอย่างกล้าหาญ และใช้ชีวิตในแบบของตัวเองอย่างมีความสุข

25
2023 COMMUNICATION DIRECTION

MY MC MY WAY
ออกไปใช้ชวี ติ ...ให้เต็มแม็ค

พา MY MC MY WAY เข้าไปเป็ นส่วนหนึ่งในวิถชี วี ติ ของคนให้ลกึ และกว้างขึน้

เพือ่ ต่อยอดและสร้างรากฐานให้ Mc เป็ น LIFESTYLE BRAND ของคนไทย
และส่งเสริมให้ยอดขายเติบโตอย่างเป็ นรูปธรรม

26
2023 BRAND DIRECTION
MY MC MY WAY
ยึดมันและต่
่ อยอด BRAND CONCEPT “MY MC MY WAY”

PEOPLE
เข้าใจในวิถชี วี ติ ของ “คน” ลึกซึง้

MARKETING
ทาการตลาดเพือ่ วิถชี วี ติ ของพวกเขา

PRODUCT & SERVICE

ผ่านสินค้าและบริการทีค่ ดิ ขึน้ มาเพือ่ พวกเขาโดยเฉพาะ
27
STRONG CUSTOMER BASE

MC CLUB
Reported total members of

1,100,000+
(as of end of Dec 2022)*

Grow exponentially from

the first launch on Jan 2018

*adjusted 2-years non-active members

28
Q&A
THANK
YOU