A Journey of Continual Growth We made strides in growing our hospitality business while refining F&B operational efficiency, thus taking us a step further in our journey of continual growth. Contents Corporate Corporate Hospitality Profile Milestones Business F&B Casual Dining Chairman and Business Brands CEO’s Statement Group Structure & Financial Board Financial Highlight Review of Directors Key Corporate Financial Management Information Contents This annual report has been prepared by Katrina Group Ltd. (the “Company” and together with its subsidiaries, the “Group”) and its contents have been reviewed by the Company’s Sponsor, Hong Leong Finance Limited. It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the “SGX-ST”) and the SGX-ST assumes no responsibility for the contents of this annual report, including the correctness of any of the statements or opinions made or reports contained in this annual report. The contact person for the Sponsor is Mr Tang Yeng Yuen, Vice President, Head of Corporate Finance, Hong Leong Finance Limited, at 16 Raffles Quay, #01-05 Hong Leong Building, Singapore 048581, telephone (+65) 6415 9886. CORPORATE PROFILE With an established history since 1995, Katrina Group Ltd. (“Katrina” or the “Group”) is a Food & Beverage (F&B) group that specialises in multi-cuisine concepts and restaurant operations. The Group owns and operates 42 restaurants in Singapore and 2 restaurants in Indonesia under 9 different F&B brands, namely, Bali Thai, Honguo, So Pho, Streats, Bayang, Hutong, Muchos, RENNthai, and Tomo Izakaya. These brands serve authentic cuisines of 8 different ethnicities, namely Hong Kong, Indonesian, Japanese, Mexican, northern Chinese, Thai, Vietnamese and Yunnan. Katrina prides itself on the identification of consumer trends and creating concepts that meet the demand of a wide spectrum of patrons from different market segments. Of the Group’s ten brands, 4 are casual dining brands and 5 are mid-ranged dining brands, all strategically located in convenient and high foot traffic locations. In addition, 3 of the Katrina Group’s brands – Bali Thai, So Pho and Streats – are Halal-certified. Katrina’s hospitality business has scaled up since its acquisition in December 2018. The Group currently leases and manages 241 private residences, 2 apartment buildings comprising 68 apartment units as well as 4 co-living hotels comprising about 242 rooms across Singapore and 18 serviced apartments in Hong Kong. CORPORATE MILESTONES Started Rebranding operating Ventured into Launched Opened first overseas Introduced new exercise “Katrina Nasi upmarket first chain of restaurant in Raffles Indonesian brand and Listed on Cessation of Padang” dining fare Chinese restaurants City, Beijing first Vietnamese brand SGX-Catalist Indobox brand 1995 1998 2001 2006 2007 2008 2009 2010 2013 2015 2016 2018 2019 Launched first Launched 2 new Introduced additional Developed first Launched Acquisition of a new restaurant in brands upmarket brand non-Asian brand online food hospitality business West Mall ordering and delivery services for Bali Thai, So Pho and Streats Acquired Japanese brand KATRINA GROUP LTD. ANNUAL REPORT 2019 1 HOSPITALITY BUSINESS The Group offers fully furnished serviced residences under the brand of ST Residences and affordable luxurious co- living hotel under ST Signature. Collectively, it seeks to be a trusted hospitality management company, that provides both corporate expatriates and leisure travelers a comfortable, enjoyable stay with top-notch customer service in prime locations locally and globally. ST RESIDENCES ST SIGNATURE 2 KATRINA GROUP LTD. ANNUAL REPORT 2019 F&B BUSINESS Mid-Ranged Dining Brands Indonesian cuisine Singapore outlet: • Clarke Quay Our Bayang restaurant Thai Cuisine serves authentic Balinese favourites within a Singapore outlet: warm-Balinese décor that • Clarke Quay features inlays inspired by traditional Balinese shadow puppets. RENNthai serves traditional Thai cuisine. The restaurant’s intimate indoor seating is furnished with exotic embellishments, while the alfresco area offers a refreshing waterfront view. Northern Chinese Mexican cuisine Cuisine Singapore outlet: Singapore outlet: • Clarke Quay • Clarke Quay Hutong offers traditional Northern Chinese cuisine with Muchos Mexican Bar a contemporary twist to cater to Chinese expatriates and Restaurant serves and tourists in Singapore. Its décor is designed to exude classic Mexican dishes. the charm of old China with antique dark-wooded screens and tables, billowing Chinese silk drapes and red lanterns, to create a sentimental vibe of reminiscence of the beauty of ancient Beijing. Japanese cuisine Singapore outlets: • Clarke Quay • Esplanade Tomo Izakaya restaurant captures the essence of the traditional izakaya with its chic, minimalist Zen-like décor while injecting youthful fun in its overall vibe. In Japanese, ‘tomo’ means ‘friend’ and izakaya means ‘to stay in a sake shop’. Hence, the focus of Tomo Izakaya is for friends and families to have a relaxing meal of fine Japanese food and drinks while entertained by jazz music. KATRINA GROUP LTD. ANNUAL REPORT 2019 3 CASUAL DINING BRANDS Indonesian & Thai cuisine Bali Thai is the first Singapore outlets: restaurant brand that we • Causeway Point conceived. The concept • IMM Building was designed to house • NEX perennial favourites of both Indonesian and Thai • Ngee Ann City cuisines under one roof. • Suntec City Bali Thai restaurants are • Waterway Point furnished in a casual, modern feel to offer a cosy ambience to our patrons. Hong Kong cuisine Singapore outlets: Our Streats cafes serve • Bedok Mall contemporary Hong Kong • Bukit Panjang Plaza cuisine. The layouts of our • City Square Mall Streats cafes resemble • E!Hub @ Downtown East that of a “Cha Chan Teng”, which is casual and • IMM Building uncomplicated, creating • Resort World Sentosa an air of vibrancy for • Suntec City customers of all ages. • Tampines 1 • West Mall 4 KATRINA GROUP LTD. ANNUAL REPORT 2019 Honguo means red pot in Yunnan Chinese Chinese and the restaurant cuisine serves specialties from Yunnan. All our Honguo restaurants are decorated Singapore outlets: with paintings and posters • Bugis Junction of interesting features in • NEX Yunnan to complement the • ION Orchard authentic Yunnan cuisine, together forming the full Yunnan experience. Singapore outlets: • Causeway Point • JEM • Paragon • VivoCity • The Clementi Mall • Jewel • Parkway Parade • Waterway • Great World City • Marina One • Suntec City Point Vietnamese • IMM • Northpoint City • The Star Vista • White Sands cuisine • ION Orchard • Novena Square • Tampines Mall So Pho offers China outlets operated by joint venture: authentic Vietnamese • TeeMall, Guangzhou street food in a casual • New Raffles City, Shanghai and contemporary • Huanmao IAPM Mall, Shanghai setting at reasonable prices. Our So Pho cafes are decorated in simplicity, expressed Indonesia outlets: with furnishings in neutral colours. • Plaza Senayan • Central Park Mall (2020) KATRINA GROUP LTD. ANNUAL REPORT 2019 5 CHAIRMAN AND CEO’S STATEMENT “Understandably, the newer F&B outlets and our hospitality segment will take time to improve our profitability, especially in light of a weaker domestic and global economy. Nonetheless, Katrina perceives these investments to be the foundations to deliver sustainable long-term returns.” MR ALAN GOH KENG CHIAN Founder, Executive Chairman and CEO 6 KATRINA GROUP LTD. ANNUAL REPORT 2019 CHAIRMAN AND CEO’S STATEMENT DEAR SHAREHOLDERS, Our latest acquisition, Tomo Izakaya, improved its operating performance after renovations and changes to the menu. The brand currently 2019 was a challenging year. Progress was has one outlet at Clarke Quay and another in achieved against a backdrop of slowing Esplanade Mall. economic growth, rising operating costs, and labour shortages. Beyond Singapore, we opened our second So Pho outlet in Central Park Mall, West Jakarta For the financial year ended 31 December 2019 in February 2020. This follows the launch of (“FY2019”), the Group generated substantial our maiden outlet in Plaza Senayan, Central revenue from our hospitality segment which Jakarta in 2019. made up 18.3% of Group’s revenue, as compared to 0.7% contribution in the financial Complementing our brick-and-mortar offerings year ended 31 December 2018 (“FY2018”). is our online food delivery service which was Meanwhile, the F&B segment contributed 81.7% expanded to the full range of 9 brands from to Group’s revenue on the back of existing and the 3 brands available in FY2018. newly-opened and acquired F&B outlets. OUR HOSPITALITY BUSINESS Both segments contributed to a 30.2% increase in Group’s revenue to S$84.4 million. However, Katrina’s hospitality business has scaled up we recorded a net loss of S$6.3 million due in 2019. We have expanded our hospitality to a combination of higher operating costs in segment to offer three categories of services. line with the increased activity and start-up The first is ST Residences which offers fully costs, and the adoption of SFRS(I) 16 Leases furnished corporate service apartments resulted in higher interest expense on leases, tailored for business travellers that require and depreciation of right-of-use assets as accommodation for 3 months or longer. Three compared to actual rental expenses paid. new blocks were launched at Outram Road, Novena and Orange Grove Road which boosted The newer F&B outlets and our hospitality our total number of service apartments to 376