Message from Chairman

To: The Shareholders of Mudman Public Company Limited

On behalf of the Board of Directors of the Company, it is a great honor and privilege for me to have the opportunity to extend a very warm welcome to all of you to the 2019 Annual General Meeting of your Company for the second year since the Company has been listed on the Stock Exchange of Thailand in 2017.

The message will include the key points of the performance of the Company for the year 2018, dividend recommendation for 2018 performance, and the business outlook and strategies of the Company in the future.

1. The Performance of the Company for the year 2018

In 2018, overall Thai economy expanded by 4.1%, due primarily to private consumption that expanded favorably in-line with the more broad-based expansion of overall economic activities and income conditions, continuing growth of exports and tourism sector, and total investment. However, the Company continues to face tough challenges from the persistent weak purchasing power of consumer of consumers and economic slowdown, Therefore, the Company continued not only to focus on productivity improvement and cost saving, but also to constantly strengthened and developed the Company’s competitive advantages by offering new innovative products to best match the needs of consumers, executing effective advertising and promotional campaigns to reach the target consumers, using technology as a tool to enhance the consumers’ experiences on our services, and operating business with integrity, accountability, and transparency to ensure that we are delivering quality products and services to all customers. With above implementations, the 2018 financial performance was broadly satisfactory with total revenues of THB 3,233 mm (2017 total revenues of THB 2,962 mm) or growth of 9.2%. The net profit improved from THB (50) mm in 2017 to THB (12) mm in 2018.

2. Dividend Recommendation for the 2018 Performance

With 2018 performance and confidence in the future prospect of the Company, the Board of Director of the Company resolved to recommend to pay an annual dividend of THB 0.055 per share, subject to the shareholder approval at 2019 Annual General Meeting. The dividend will be paid on May 21, 2019 to the eligible shareholders who hold a right to receive the dividend.

3. The Business Outlook and Strategies of the Company in the Future

In 2019, despite the Office of the National Economic Development Board (NEDB) forecast that the Thai economy will continue to grow at 3.5% - 4.5% which supported by a favorable growth momentum of private consumption, an improvement of private investment, an acceleration of public investment, a recovery of tourism sector, a clearer redirection of global trade, production, and investment which will help ease the impacts from global slowdown, the Company remains cautious about the future outlook in 2019.The Company has key strategies to create sustainable growth as followed

Continuing Innovation & Creativity: The experienced team has been developing and innovating products and services to meet the rapid changes of consumers’ behavior and needs. For example, strengthen “Value for Money” concepts, product innovation (i.e. festive menus, trendy menu such as durian donuts, ice-cram cake in various formats, and special menu for Mother’s Day).

Store Expansion in Strategic Locations: Since store expansion is a key factor to create sustainable growth, the Company has determined to continuously develop and expand stores of both owned- and franchised-brand in strategic locations to create sustainable growth and meet consumers’ needs. In addition, the Company has the experienced team who understands the market situation and competition. Moreover, the Company has been strengthening good relationships with the existing landlords and at the same time developing new relationship with potential landlords.

International Growth: The Company has determined and realized the opportunities in presenting unique Thai cuisine to the global market. Therefore, the Company has been aggressively expanded “Greyhound Café” to not only Asian market in which there are exceptional success, but also the first flagship store in Europe (London, England) in 4Q/17 to build the brand awareness of Greyhound Café in Europe. In addition, the Company has been granted the territory expansion of Au Bon Pain into CLMV countries (Cambodia, Laos, Myanmar, and Vietnam). The Company is on the study and partner selection process.

Competitive Advantages of Costs and Expenses: The Company is aiming not only to establish sustainable revenue growth, but also to create competitive advantage of costs and expenses. The Company has been developing centralized unit in order to support each brand (owned and franchised brands) in the areas of accounting and finance, information technology, supply chain management, human resource, and etc. With the centralized support unit, each brand is able to concentrate on consumer and to efficiently control costs and expenses i.e. big order for all brands.

Inorganic Growth: The Company not only focuses on the organic growth of the existing business, but also eyes on the optimal new business opportunities to create inorganic growth. In 4Q/17, MM acquired the ordinary shares of SLVH which operates food and beverage business under the trademark of Le Grand Vefour, a historic restaurant (since 1784) with more than 230 years of operation. SLVH has only one restaurant located in the area of The Palais Royal’s Gardens in Paris, France with two Michelin stars.

On the behalf of the Board of Directors of the Company, I would like to thank our customers, shareholders, and stakeholders who have reposed great trust and repeated support in our products and services. In addition, I take this opportunity to thank all our employees for their tremendous efforts and dedication in delivering results in intensely competitive environment and tough economic situation.

Yours Sincerely,

(Mr. Sompoch Intranukul)
Chairman of Board of Director