APP- TO- DOOR DINING FOR THE ON- DEMAND GENERATION.
TSX-V: JK; FRA: 68Z; OTC: JKHCF CORPORATE PRESENTATION – SEPTEMBER 2021
1 Disclaimer, confidentiality and forward-looking statements
The Presentation contained in this document has been prepared by Just Kitchen Holdings Corp. using its best efforts to realistically and factually present the information contained. However, subjective opinion, dependence upon factors outside Just Kitchen Holdings Corp’s control and outside information sources unavoidably dictate that Just Kitchen Holdings Corp. cannot warrant the information contained to be exhaustive, complete or sufficient. In addition, many factors can affect the Presentation which could significantly alter the results intended by Just Kitchen Holdings Corp., rendering the Presentation unattainable or substantially altered. Therefore, interested users should conduct their own assessment and consult with their own professional advisors prior to making any investment decisions.
This Presentation does not constitute a prospectus or public offering for financing, and no guarantees are made or implied with regard to Just Kitchen Holdings Corp. proposed ventures.
Confidentiality: The Presentation is being disclosed to the user for the user’s discussion, review, and/or evaluation only. The user agrees to hold the Presentation, and all related information and discussions, in strict confidence, except that user may disclose the Presentation to a limited number of advisors and employees of the user to the extent necessary for user to adequately evaluate the Presentation. User warrants that any such persons shall be advised of the confidential nature of the Presentation before gaining access to the same and that no such advisor or employee shall use or disclose the Presentation except as permitted by this Agreement.
Projections: The presentation’s financial and other projections have been prepared using assumptions and hypotheses created by Just Kitchen Holdings Inc. management based on information provided to them and through due diligence. The assumptions used in the preparation of the projection reflect management’s intended course of action for the projection period based upon management’s judgement as to the most probable setoff economic conditions if the assumptions they consider most likely are realized. The assumptions may not necessarily be the most probable and are based upon information existing as at the date of this presentation.
The assumptions are those that management believes are significant to the projection. Some assumptions may not materialize, and unanticipated events and circumstances may occur subsequent to the date of this projection; therefore, the actual results achieved during the projection period may vary materially from the projections.
This projection is based on our assumptions and there is a major risk that actual results will vary, perhaps materially, from the results projected.
2 Ghost kitchens – an emerging industry estimated to be worth $1trillion by 20301
Problem: Brick and mortar restaurants are costly to open and operate:
§ 3-6% profit margins on average2 DELIVERY-ONLY § Failure rate of 70% within 3-5 years of opening3 (pre-pandemic) CUSTOMERS
Solution - Ghost kitchens:
§ Commercial kitchens operating “delivery-only restaurants” GHOST KITCHEN § No customer-facing storefront (dining room, pick-up counter) TAIPEI CITY § Meals are ordered / delivered through apps or online
§ Advertise menus to customers through social media channels / apps
§ Eliminates / reduces overhead costs such as front of house staff, rent, real estate, electricity, etc.
1. Euromonitor, 2020 2. Toast Lab, 2019. 3. Hong Kong Business, Delivering the Virtual Restaurant of Tomorrow, October 2019. 3 Market overview – online meal delivery
The “new normal” of dining – even before the pandemic, consumer preferences were shifting toward online food delivery.
ONLINE VS. OFFLINE SHARE OF GLOBAL ONLINE FOOD 2019 ONLINE FOOD DELIVERY FOOD DELIVERY MARKETS (%)1 DELIVERY MARKET (2020 – INDUSTRY IN ASIA3 2023)2 USD USD $53 42 53 47 BILLION 64 58 $154 73 83 = nearly 50% 92 92 89 BILLION of global USD demand. 58 47 53 36 42 $111 27 17 BILLION 8 8 11 60% of Americans order food 2 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2023 times per week4, which accounts for: Offline (call-in delivery, walk-in orders) 11.5% CAGR Online (via web or app) 20.7 Billion Meals / yr.
1. McKinsey & Company, The changing market for food delivery, 2016 2. Research and Markets, 2019 3. Hong Kong Business, Delivering the Virtual Restaurant of Tomorrow, Oct 2019 4. Upserve, 2020 4 Company highlights – the opportunity
§ Seasoned management team: extensive F&B and e-commerce expertise, history of multiple high-profile take-outs: Milk & Eggs to GrubHub (NYSE: GRUB), Guitar Hero to Activision Blizzard (NASDAQ: ATVI).
§ Strategic advisors: formerly oversaw expansion of operations in APAC region at CloudKitchens and Uber (NYSE: UBER); and technological development at Yahoo! (NASDAQ: YHOO), AT&T Interactive/Yellow Pages (NYSE:T), Overture, Chegg (NYSE: CHGG), Beachbody/Openfit, Oversee, and P. v o l v e .
§ “Ghost Kitchens 2.0”: technology, content, kitchen infrastructure and Standard Operating Procedures.
§ Exponential revenue growth: 30+ spokes by end of 2021.
§ Poised for rapid global expansion: Hong Kong (June 2021), planned expansion into the Philippines, United States, and Singapore in 2021, and Canada, Japan, Malaysia, South Korea and Vietnam in 2022.
§ Capturing a larger market share: offering 18 exclusive in-house brands, 9 franchise brands, various price points, grocery delivery.
5 Leadership team – executive officers
Jason Chen, Co-Founder, CEO, President, and Director: 25+ Adam Kniec, CFO: Former CFO of 10+ companies in years top-level F&B management, Founder of Bayshore Pacific industries including software development, casinos, Hospitality Ltd with combined revenue of over $100 million. gaming.
Kent Wu, COO & Director: 20+ years e-commerce and logistics Mark Lin, CTO: 10+ years in business development experience; founder of e-commerce grocery platform Milk and and operations management for info tech and Eggs (acquired by GrubHub); three past successful exits. payment processing companies in North America and APAC. John Yu, CMO: 15+ years digital marketing; founder of multiple consumer brands across numerous industries. Michael Liu, Executive Vice President of Operations: Formerly Head of Commercial for Deliveroo in Taiwan, former COO of Supreme Café Group and Yang Liu, CSO: 15+ years in corporate development for Director of Operations for Waves Coffee publicly-traded companies in the Food & Beverage Industry. International.
6 Leadership team – independent directors and strategic advisors
Independent Directors: Strategic Advisors:
Kai Huang, Co-Founder: Creator of Guitar Hero & Warren Tseng: Early-stage business operator and Co-Founder & CEO of RedOctane (acquired by angel investor with extensive experience establishing Activision Blizzard); Co-Founder & CEO of Blue Goji; and growing companies across Asia. Formerly GM Co-Founder & CEO of Adux Software. (Singapore) at Uber Technologies, and Regional GM (APAC) for CloudKitchens. Freddie Liu: Partner at Purestone Capital Group; CSO of TPK Holdings – currently one of the world’s Gene Chuang: 24+ years’ experience as a tech largest makers of touch screens for mobile phones and executive, helped grow several mobile application tablets; former head of Real Estate unit at Citibank. companies including Overture, Yahoo!, AT&T Interactive/Yellow Pages, Chegg, Beachbody/Openfit Darryl Cardey: Chartered Professional Accountant and Oversee, and P. v o l v e . previously with KPMG; director and financial advisor to public and private companies in the resource and technology sectors.
Darren Devine: Co-Principal of CDM Capital Partners; advisor to numerous multinational M&A transactions and IPOs.
7 “Ghost Kitchens 2.0” – uniquely positioned across the value chain
JustKitchen’s “Ghost Kitchens 2.0” vs. peers: § Built-out network of kitchen infrastructure § Technology-enabled § Operational expertise and established SOPs (Standard Operating Procedures) § Content-rich portfolio of brands
Infrastructure Proprietary Expertise / Virtual Franchise Provider Software SOPs Brands
8 JustKitchen – optimized ghost kitchens in a unique hub-and-spoke model
§ Hubs = full-scale commercial kitchens that semi- prepare food items
§ Spokes = smaller “finishing” kitchens that complete Spoke meals for delivery § Orders automatically routed to spoke kitchen nearest to customer Spoke
Advantages: Hub § TAIPEI Extends reach / customer base – typical ghost CITY kitchens limited by “delivery radius” of 4 - 5 km § Higher margins & efficiencies § Efficient output – food is ready for delivery in 5 mins Spoke and delivered in 20-30 mins § Standardized kitchens and preparation methods = Spoke consistent food quality & safety
9 JustKitchen – proprietary tech stack for optimizing ghost kitchens
B2C Ordering Operations Knowledge Store / Brand App Software Transfer / Training Integration
§ Loyalty / rewards § Kitchen OSTM spoke § VTS (virtual training § Store level program software system) management
§ Exclusive brands § Day-to-day operations § Remote training / § Brand & menu control
§ Gamification § Live reporting & administration § Performance analytics analytics § Remote brand § Asset tracking deployment
10 Data stack – leveraging data to create value
Customer data informs menu creation § Improves supply chain management, aids marketing and development of new brands § Predictive analytics through data aggregation from multiple sources § Leveraging data for agile business strategy development
Menu Creation Hub Spokes Delivery CustomerDeligDelig htht
25% customer feedback & data from ~90K orders per month to create menus & project demand
11 Brands that are tailored – offering customers more $$$variety
$$$ § Price points: $ $$$ Partner Brands § Cuisine types: Western Asian § Round-the-clock meal offerings Proprietary Brands § Demographically designed & targeted menus § Pet Agility of brands = digital real estate Cuisine § Branded grocery items Asian Western § Feed the whole family = kids’ menus Cuisine Cuisine and fresh pet food available § Nutritionist-endorsed, healthy hot and cold meals
$
12 Taiwan first – now going global
PROOF OF SCALABILITY EXPANSION OUTSIDE IN TAIWAN OF TAIWAN
§ Standardized system and § First JustKitchen operations location in Hong Kong (June 2021) § Mature delivery market § USD $16 billion dining § Expects to open up to market, 17 consecutive 8 locations in Hong years annual growth Kong § Mostly lockdown-free § In advanced JustKitchen’s expansion plans for 2021 include: during COVID discussions and § High Density (24 million planning for Hong Kong North America people on a 36,193 km2 Philippines, Singapore, island) and North America Philippines Singapore
13 Sample – economics and growth trajectory
Economics (per mature spoke*) Planned global spoke kitchen openings – 2021*
Country Taiwan Capital cost per Spoke $150,000
Average daily orders per Spoke** 250
Average dollar amount per order $15.00 Annual gross revenue per Spoke (365 days) $1,368,750 Operating profit margin 15-20%
* Spokes expected to reach 250 orders per day within 4-6 months. ** Capacity per spoke expected to range between 300-400 orders per day.
* Calendar quarters.
14 Timeline – target milestones
2021- 2020 By IPO 2022
þ Obtain seed capital, incl. þ Launch JustMarket grocery þ Continue core data þ Launch proprietary meal ordering app from Sparklabs delivery as a new business technology build-out þ Expand to Hong Kong line Complete initial Board þ Grow to 13 Spokes þ Launch customer loyalty/rewards appointments Grow to 11 in-house food þ Grow to 14 in-house program brands/menus þ Operate with one Hub and food brands/menus þ 22 Spokes in Taiwan (35 Spokes in four Spokes Partner with new third- þ Grow to two Hubs in Taiwan by 2022) parties/restaurants þ Secure key employees and Taiwan þ Grow to 6-8 locations in Hong Kong strategic advisors þ Grow to 8 Spokes Expand to Singapore, USA, Philippines in 2021
Expand to Canada, Japan, Malaysia, South Korea and Vietnam in 2022
15 Cap table and comparables
Cap Table: JustKitchen Comparable Valuations (April 6, 2021) Market Cap TEV/Rev Rev Growth (C$ millions) 2021 2022 21-22
Basic Shares Outstanding 75,085,387 DoorDash (DASH-US) $53,776 10.3 8.2 26% Ocado Group PLC (OCDO-LON) $26,859 5.5 4.7 16% Options & RSUs 7,007,500 Just Eat Takeaway.com (TKWY-AMS) $17,777 3.2 2.6 22% Warrants 10,777,780 Grubhub Inc. (GRUB-US) $7,426 2.8 2.4 17%
Management Team, Board, Employees 35% Goodfood Market Corp. (FOOD-CA) $635 1.7 1.4 20% HelloFresh S.E. (HFG-FRA) $16,628 2.4 2.1 15% Equity Research Coverage Analyst Blended Peer Average 3.7 3.1 19%
Doug Cooper
16 Financial metrics – Q3 2021
(in Canadian dollars; any errors due to rounding) 3 months ended 3 months ended 3 months ended Nov 27, 2019 - June 30, 2021 Mar 31, 2021 Dec 31, 2020 Sept 30, 20202 Sales to retail customers $3,171,851 $1,975,110 $1,667,663 $1,520,155 Sales to businesses $175,046 $249,171 $243,537 $313,767 Total revenues $3,346,897 $2,224,281 $1,911,170 $1,833,922
Adjusted EBITDA1 $(2,056,192) $(1,746,675) $(1,375,255) $(1,902,454)
Number of retail deliveries 214,744 128,400 117,800 101,000 1.) Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company's operating performance and therefore highlight trends in Company's core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company. 2.) Represents the period from acquisition of control on November 27, 2019.
17 JustKitchen – making global headlines
18 Thank you.
INVESTOR RELATIONS SEE OUR KITCHENS JASON CHEN [email protected] Watch Video: President & CEO investors.justkitchen.com [email protected]
19 Appendix
20 Types of ghost kitchens – and how JustKitchen differs
Ghost Kitchen Model Flexibility Efficiency
Restaurant without seat / pivot to delivery Type 1 - - - - Basic set-up – no delivery optimized concept
Dual/ multi-brand restaurant kitchen Type 2 = + Few owned brands in one kitchen. All brands to one company
Central production kitchen Type 3 +/ - +++ For commissary purposes only to supply satellite ghost kitchen (type 4/5)
Multi operator shared kitchen / KAAS Type 4 + ++ Shared general areas, however individual operator brands
Multi-brand single operator Type 5 ++ +++ Multiple brands in one shared kitchen, operated by one company
JustKitchen Multiple proprietary brands and partner brands ++++ ++++ Blend of central production kitchen and multi-brand single operator
21 Proprietary Food Brands / Menus
22 Proprietary Brands: Body Fit