Business Overview and 2017 year end performance

13 March 2018 - SET digital roadshow

MC GROUP Public Company Limited

1

DISCLAIMER

The information contained in our presentation is intended solely for your personal

reference only. In addition, such information contains projections and forward-looking

statements that reflect our current views with respect to future events and financial

performance.

These views are based on assumptions subject to various risks and uncertainties. No

assurance is given that future events will occur, that projections will be achieved, or

that the our assumptions are correct. Actual results may differ materially from those

projected.

AGENDA

2

COMPANY OVERVIEW1

RECENT DEVELOPMENT2

42018

GUIDANCE

FINANCIALRESULT3

3

COMPANY

OVERVIEW

1

4

Vision

To be ...

a leading multi-brand apparel & lifestyle products retailer

in Asia.

Vision and core value

Launched online website

JV with

Phetkasem

Holding to

revolutionize

top wear

5

2008

Opened the first

Free Standing Shop

1st Mc Shop

2012

Expanded to Myanmar

& Laos

2005

Launched“Mc ” brand

2013

Extended

Brand Portfolio

Casual menswear

Women's’

Jeans & Street wear

Extended Brand Portfolio

Acquired 51% in

1975

Expanded to Lifestyle Business

Kid’s Jeanswear

Fashionable Ladies wear

Value-for-Money Casual wear

Premium Jeanswear

Started as manufacturingand selling through

traditional trade

Onto managing brands and distribution channels

Emerged as a leader in denim market in Thailand

2014

2015

Expanded to Vietnam

Expanded to Cambodia

Alliance with PTT

Opened mc mc

shop in PTT gas

station

Listed on the SET

Extended Brand Portfolio

2016

Extended Brand Portfolio

Active

wear“UP”

Skin care“M&C”

Set up new subsidiary

2017

Invested 55% in

to distribute home

spa products

Expanded toIran

Key milestones

Revampede-commerce

platform

CRM &

membership

program

2018

Moving forward to become a leading apparel

and lifestyle products retailer

6

WoWme

Limited

(“WOWME”)

Look Balance

Co.,Ltd

Winnerman

Co., Ltd.

(“WNM”)

MC INTER

LIMITED

(“MCI”)

P.K. Garment

(Import-Export) Co., Ltd.

(“PKG”)

99.97% 99.98%

99.97% 99.97%

99.99%

• Manufactures

50% of total

production

• With BOI

privilege

Mc Jeans

Manufacturing

Co., Ltd.(“MJM”)

99.97%

• Manufactures

20% of total

production

• Without BOI

privilege

• Offers quality

Thai and foreign

brands products

and services

through online

platform

• Manages sales

force and

warehouse

workforce for MC

• Incorporated for

the future business

and investmentabroad

Time Deco

Corporation

Co., Ltd.

51%

• Importer,

retailer and

exclusive

distributor of

famous int’l

watch brands

New Businesses Operations Production

Mc Jeanious

Co., Ltd.

99.99%

Top T 2015

Co., Ltd.

51%

• Supplier of top

wear with latest

fabric

technology

under the brand

“McT”

MC GROUP PLC (“MC”)

Registered Capital 400 MB

Paid-up Capital 400 MB

Aromatique

Active

Co., Ltd.

55%

• Sales of skincare

and aromatic

products

• Not yet commercially

operated

MC group structure

7

3

Ms. Sunee Seripanu

• Chief Executive Officer

• Managing Director

2

4Mr. Virach Seripanu

• Chief Production Officer

5 Ms. Vorarat Laohathanakul

• Chief Human Resource Officer

1 Mrs. Kaisri Nuengsigkapian

• Chairman of the Board

• Executive Chairman

7

Mr. Bundit Praditsuktavorn

• Chief Financial Officer

Mr. Nopadol Tangdenchai

• Chief Information Officer

Ms. Piangkwan Seesutipo

• Chief Commercial Officer

6

Management team

8

866

819

694

511

446

Points of Sales

Y2017Geographical Analysis of Outlets

300 Shops

1. Free Standing Shops

575 PoS

2. Modern Trade

6 Units

3. Mobile Unit

13 PoS

4. International Markets

Located mainly in

commercial centers or

in the plaza sections of department stores as

well as hypermarket and

PTT gas station

New sales channel that

helps expand the reach

to customers as well as build brand recognition

Points of sales or sales

counters in department

stores (both chain and local non-chain) as well

as hypermarket

(Songkla, Pattani)

(Lampang)

Currently, expanded

through distributors with presence in CLMV and

Iran. 894PoS

Y2017Geographical Analysis of Sales

Y2017

Remark: Others = E-commerce, International, Mobile, Outside promotion, Factory sales, Red-cross fair, Uniform

897

Comprehensive network

894

Greater

Bangkok

33%

Upcountry 59%

Others

8%Greater

Bangkok

29%

Upcountry 69%

Others

2%

9

R E C E N T

D E V E L O P M E N T

2

10

Dominant position in Thailand for more than 40 years

Well-accepted quality, value and innovation

Own brands

Strong relationship withSupplier, Distributor, Partner

894 POSnationwide & e-marketplace

www.mcshop.com

Active customer engagement year-round

Our pillars are the GREAT foundation of apparel and

lifestyle business success with sustainable growth

11

Y2018 Priorities

keep moving forward toward long term results

▪ Leverage large customer base using 1st ever

CRM & membership program under “MC

Club”

▪ Segment products to suit customer

preference and for efficient supply chain

management

▪ Extend lifestyle product range

▪ Deliver exceptional omnichannel retail

experience

▪ Nurture International market for medium to

long term growth

12

Customer relationship management

with on-track progress

▪ Create new shopping experience for

customers

▪ Valuable insight

▪ Customer engagement

▪ Point redemption for repeat purchase

MCCLUB

Membershipprogram

From Feb 2018, customers can apply for

MC club membership at all Mc shops.

The program will be deployed at all POS

by Q2 this year…

Total members

of 40,000+(as of end of February)

Target 500,000 members (as of end of Y2018)

13

Customer segmentation by lifestyle and aspiration

1. BIKER

2. OFFICER

3. FAMILY

4. STUDENT /TEEN

14

Product segmentation – apparel and lifestyle business

7 categories to focus

Limited Signature

One priceSeasonal Innovative

Skincare

Luggage

Backpack

Cap

Accessory

15

Product segmentation – watch business

1. Luxury Fashion

2. Lifestyle Fashion

Customer

segmentation

Points of sale

solution

Online <> offline

for marketing

communication

16

Collaboration with business partners

Yamaha joins forces with

Mc to drive various

customer engagement

campaign…

Find Mc x Warrix items for Thai football

fans at Mc shops and mcshop.com

1

2

17

Skincare “Aromatique Active”

Expanding retail channel and extending product line

Own distribution channel

Beauty department

Spa & Beauty Exhibition

Pop-up store

Brand website

Aromatique ActiveHome

March- Robinson Saraburi and Robinson Bangkok (Rangsit)

25 SKUs in Sep 2017

to be >60 SKUs by this year

In 2H17, products have been distributed through 285 MC free standing shops and mcshop.com

(to be launched…)

18

Y2017 outlet numbers adjusted to align with strategy

End of 2016

# Points of sales

897

End of 2017

# Points of sales

894

+ 9 Domestic

- 12 Overseas

Remark: Closed 12 small points of sale overseas for focused marketing spending

BrandFree-

Standing

Modern

TradeMobile unit International Total

261 477 6 25 769

21 0 21

21 86 107

Total 303 563 6 25 897

BrandFree-

Standing

Modern

TradeMobile unit International Total

267 488 6 13 774

18 0 18

15 87 102

Total 300 575 6 13 894

Strengthen omnichannel (offline <> online)…

Y2017 online channels

# Points

of sales

6

Strengthen omnichannel (offline <> online)…

▪ New 30 POS or 3,000 sqm.

▪ Enlarge / renovate 24 POS

▪ Separate walls for key

product categories

Y2018 Offline – nationwide coverage

19

Strengthen omnichannel (offline <> online)

▪ Acquire new customers

▪ Drive higher traffic to offline

stores

▪ Direct marketing

communication

Online – Mcshop.com

20

• mcshopthailand• mcjeans• mcladyjeans• timedecowatch

• mcshop_official• mcjeans_official• timedecowatchclub

• @mcshop.com• @mc_jeans

• www.mcshop.com• www.mcjeans.com

Digital marketing through social media

with consistent presence

21

Customer Engagement

Emotional Engagement through Viral Marketing

more than 2 million views in total

Nurture international market for medium to long term

growth…

22

Myanmar

Online shopping is picking

up…

Offline

Retail and Wholesale

Iran

Nurture international market for medium to long term

growth

23

3rd and 4th in Tehran to

be opened in March in

addition to 1st and 2nd in

Kish Island

Bam land shopping mall TehranAren shopping center Tehran

24

2 0 1 7 F I N A N C I A L

R E S U L T

3

Results headlines…

25

(THB millions) FY16 FY17 % YoY

Total Revenue 4,479 4,314 -4%

Gross Profit 2,430 2,227 -8%

EBITDA 1,098 848 -23%

Net Profit 843 609 -28%

Net Profit Margin 18.8% 14.1%

EPS (THB) 1.05 0.76

Sales contracted from channel management and high

base in 2016

26

(THB millions)

(4.8%) YoY

2,973

3,470

3,895

4,4424,228

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY13 FY14 FY15 FY16 FY17

2017 Sales revenueQuarterly sales revenue

(15.9%)YoY

(9.%)YoY

3.%YoY7.%YoY

Sales revenue by channel

20162017

57%39%

4%

Free

standing

60%

Modern

trade

32%

Others

8%

14.0%YoY

12.3%YoY

16.7%YoY

16.3%YoY

Others = E-Commerce, International, Mobile, Outside promotion, Factory sales

Distribution channels performance

27

Modern trade (1)

’000 THB

Free standing shop

THB

Remark: (1) Figures are calculated based on modern trade sales revenue, before GP. Excluded sales from international markets andother source (i.e., exhibition etc.)

Total System Sales (TSS) &Same-store sales growth (SSSG)

28

SSSG

Remark: Hypermarkets are not included in the calculation in SSSG.

Total System Growth Same Store Sales Growth

16% 17%12% 14%

(5%)

FY13 FY14 FY15 FY16 FY17

TSS

(2%)

(8%)

4%

11%

(7%)

FY13 FY14 FY15 FY16 FY17

Lower GPM from campaigns

29

(THB millions)

-35.0%65.0%0

Gross Profit Gross Profit Margin Gross Profit Margin (excl TDC)

500 513 475698 592 549 484

805624

468 473662

56.1% 56.5%58.9%

54.1%51.8%

54.5% 55.0%57.1%

51.1% 50.9% 52.4%55.8%

57.0% 57.8%60.9%

55.1%53.1%

55.8% 55.8%58.0%

51.8% 51.3%53.1%

57.2%

-5.0%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

0

500

1,000

1,500

2,000

2,500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Y15 Y16 Y17

1,6851,888

2,1862,430

2,227

56.7%54.4%

56.1% 54.7%52.7%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY13 FY14 FY15 FY16 FY17

Lower net profit YoY…

30

-35.0%65.0%0

Net Profit Net Profit Margin Net Profit Margin (excl TDC)

(THB millions)

MC recorded net profit margin of 14.1%, declining YoY mainly from lower gross profit

margin and higher selling expenses.

195 174113

250 202 191

132

317232

90 94194

21.4%

19.0%

13.8%

19.1%17.6%

18.8%

14.9%

22.2%

18.8%

9.7%10.4%

15.6%

23.7%

21.1%

15.6%

20.7%19.5%

20.5%

16.8%

23.8%

20.4%

10.5% 11.1%

16.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

200

400

600

800

1,000

1,200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Y15 Y16 Y17

Remained strong with net cash position…

31

Consolidated balance sheet Net debt to equity ratio

(THB millions) 2016 2017

Cash & Short term investments 1,277 971

Accounts Receivable 787 552

Inventory 1,989 2,216

Other Assets 1,144 1,342

Total Assets 5,196 5,082

Accounts Payable 425 381

Interest-bearing Liabilities 147 95

Other Liabilities 338 438

Total Liabilities 910 913

Shareholders' Equity 4,286 4,168

Share capital information and consistent dividend

payment…

32

DPS : THB 0.30

XD : 11 Apr 2018

Record date : 12 Apr 2018

Payment : 3 May 2018

Announced dividend payment for the

performance during 1 Jul to 31 Dec 2017

as follows:

Remark: Dividend policy is not less than 50% of net profit

0.73 0.80 0.750.90

0.75

80%90%

82% 85%

98%

0%

20%

40%

60%

80%

100%

120%

2013 2014 2015 2016 2017

DPS (THB) Payout ratio

Stock Information

Shareholder Structure

Bloomberg/ Reuters : MC TB/ MC.BK

Share price (Mar 6, 2018) : THB 12.70

52 week range : THB 23.80/ THB 12.40

No. of paid up shares : 800 m

Par value : THB 0.50

Market capitalization : THB 10,160 m

Avg. daily turnover (12 mths) : THB 48.3 m

Free float : 43.4%

Foreign ownership/ Limit : 19.9% /49.0%

Major shareholder : Ms. Sunee Seripau (45.5%)

33

2 0 1 8

G U I D A N C E

4

2018 Guidance…

97%

3%

Y2012

Sales revenue contribution by product type

65%23%

9%

3%

Y2017

34

60%

22%

8%

10%

Y2020F

2018 Guidance

35

Total revenue growth

Gross profit margin

SG&A to total revenue

CAPEX

Effective tax rate

Dividend payout

: 10 %

: 54-55 %

: 35-37 %

: THB 100 mn

: 9-11 %

: Not less than 50 %

Thank you

36

Investor Relations

MC GROUP Public Company Limited

ir@mcgroupnet.com

Tel: +662 117-9999 Ext 1210

Line ID: @mc_jeanswww.mcshop.comwww.mcgroupnet.com