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August 18, 2026 Q2 2026 Earnings Presentation Tims China Nasdaq: THCH Q2 UPDATED
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Disclaimer and Risk Factors 1 This presentation ("Presentation") is provided by TH International Limited (“THIL") for informational purposes only and does not constitute, or form a part of, an offer to sell, or the solicitation of an offer to sell or an offer to buy, any securities. The information herein does not purport to be all-inclusive. Neither THIL nor any of its affiliates, agents, advisors, directors, officers, employees and shareholders shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this Presentation by you or any of your representatives or for omissions from the information in this Presentation. No legally binding obligations will be created, implied, or inferred from this Presentation or the information contained herein. THIL reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertake no obligation to provide you with access to the amended information or to notify you thereof. The Presentation has not been endorsed by Restaurant Brands International Inc. or any its subsidiaries, affiliates, officers, directors, agents, employees and advisors (collectively, “Identified Persons”). The grant of the Tim Horton franchise rights to THIL by Tim Hortons Restaurant International GmbH (“THRI”), an affiliate of Restaurant Brands International Inc., pursuant to the Master Franchise and Development Agreement and THIL Franchise Agreements, as amended, should not be construed as an express or implied approval or endorsement by any Identified Persons of any statement regarding performance of THIL (financial or otherwise) in this Presentation. The enforcement or waiver of any obligation of THIL under the Master Franchise and Development Agreement or THIL Franchise Agreements, as amended, is generally a matter of THRI’s sole discretion. You should not rely on any representation, assumption or belief that THRI will waive any obligations of THIL under those agreements. Trademarks and Trade Names This Presentation contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this Presentation is not intended to, and does not imply, a relationship with THIL, or an endorsement or sponsorship by or of THIL. Solely for convenience, the trademarks, service marks and trade names referred to in this Presentation may appear without the ® , TM or SM symbols, but such references are not intended to indicate, in any way, that THIL will not assert, to the fullest extent under applicable law, their rights or the right of the applicable licensor to these trademarks, service marks and trade names. Forward-Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this document include descriptions of THIL’s future commercial operations, such as the continued expansion of its store network. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, such as THIL’s inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which THIL operates. You should carefully consider the foregoing factors and the other risks, uncertainties and factors set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in THIL's annual report on Form 20-F and other documents filed or to be filed by THIL with the U.S. Securities and Exchange Commission from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements. THIL cannot assure you that these forward-looking statements will prove to be accurate and assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures The Company uses non-GAAP financial measures, namely company owned and operated store contribution, company owned and operated store contribution margin, adjusted general and administrative expenses, adjusted corporate EBITDA, adjusted corporate EBITDA margin, adjusted net loss, adjusted net loss margin, and adjusted basic and diluted net loss per ordinary share in evaluating its operating results and for financial and operational decision-making purposes. The Company defines (i) company owned and operated store contribution as fully burdened gross profit of company owned and operated stores excluding depreciation and amortization; (ii) company owned and operated store contribution margin as company owned and operated store contribution as a percentage of revenues from company owned and operated stores; (iii) adjusted general and administrative expenses as general and administrative expenses excluding share- based compensation expenses, professional fees related to financing programs, and impairment losses of rental deposits; (iv) adjusted corporate EBITDA as operating loss excluding certain non-cash expenses consisting of depreciation and amortization, share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, professional fees related to financing programs, and impairment losses of rental deposits; (v) adjusted corporate EBITDA margin as adjusted corporate EBITDA as a percentage of total revenues; (vi) adjusted net loss as net loss excluding share-based compensation expenses, impairment losses of long-lived assets, loss on disposal of property and equipment, professional fees related to financing programs, impairment losses of rental deposits, and changes in fair value of convertible notes; (vii) adjusted net loss margin as adjusted net loss as a percentage of total revenues; and (viii) adjusted basic and diluted net loss per ordinary share as adjusted net loss attributable to the Company’s ordinary shareholders divided by weighted-average number of basic and diluted ordinary share. The Company believes company owned and operated store contribution, company owned and operated store contribution margin, adjusted general and administrative expenses, adjusted corporate EBITDA, adjusted corporate EBITDA margin, adjusted net loss, adjusted net loss margin, and adjusted basic and diluted net loss per ordinary share enhance investors' overall understanding of its financial performance and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. As these non-GAAP financial measures have limitations as analytical tools and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures.” The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure. Q2 UPDATED
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01. Business Update Q2 UPDATED
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Resilient Store Network & Loyalty Membership Highlights: 2026Q2 ____________________ (1) The number of gross new stores opened during the period minus the number of stores permanently closed during the period. (2) Revenues from digital orders, including both delivery and mobile ordering for self pick -up, as a percentage of THIL’s revenues f rom company owned and operated stores (3) System Sales include sales generated from company -owned stores and franchise stores (4) The percentage change in the sales of company owned and operated stores that have been operating for 12 months or longer duri ng a certain period compared to the same period from the prior year. The same -store sales growth for any period of more than a mont h equals to the arithmetic average of the same-store sales growth of each month covered in the period. If a store was closed for seven days or more during any give n month, its sales during that month and the same month in the comparison period are excluded for purposes of measuring same -store sales growth Q2’24 Q2’25 Q2’26 YoY % (26 vs 25) Total stores 907 1,015 1,028 1.3% Net new stores (1) 1 (9) 2 (122.0)% Registered Loyalty club members (mm) 21.4 26.2 37.1 41.7% Digital orders % (2) 86.5% 90.4% 91.8% 1.4ppts Total revenues (RMB mm) 366.8 349.0 273.4 (21.7)% System Sales (RMB mm) (3) 403.8 409.5 347.8 (15.1)% Revenues from company-owned stores (RMB mm) 322.3 281.9 220.9 (21.6)% Same-store Sales Growth for company-owned stores (%) (4) (13.8)% (3.6)% (17.3)% (13.7)ppts Q2 UPDATED
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Summer Fruit Coffee Innovations Drive Repeat Purchases and Attract New Customers Melon Coffee Collection Queen Nina Grape Series Bayberry Series Q2 UPDATED
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Great Tasting and Innovative Products Meet Local Customer Demand Q2 UPDATED New York-Style Slow-Cooked Beef Shoulder Bagel Sandwich Salt Croissant Black Truffle Bacon Angus Beef Bagel Sandwich Lunch Box
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Q2 UPDATED GWP Activation Drives Combo Penetration and Social Media Buzz Avocado Plush Keychain & Canvas Tote BagIce Power CupGrape Plush Keychain
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Brand Collaboration with Adidas and Topsports to Elevate Brand Identity Among Young, Active Consumers Q2 UPDATED
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Sustainability & Social Responsibility “Go Far” Program Q2 UPDATED • On Children's Day this June, Tims China partnered with the Adream Foundation to launch "Super Cup Fuels Dreams" — a campaign turning every cup into a force for good. For each large beverage sold, Tims donated RMB 1 to the "Go Far" program, which provides underprivileged children with experiential learning opportunities beyond the classroom.
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Focus on Profitable & Capital-Efficient Store Network Expansion Total Stores Q2 25 68% 32% 76% 24% MTO store Non-MTO store 90 93 Q2 25 Q2 26 Q2 26 Store Formats 2 Net New Store Openings in Q2 26 3 Net Company-owned Store Openings (1) Net Franchised Store Openings Market Entry 571 574 566 544 129 333 449 484700 907 1,015 1,028 Q2 23 Q2 24 Q2 25 Q2 26 Company owned and operated Franchised Total Q2 UPDATED
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\ The Individual Franchise Stores Have Demonstrated Strong Growth Individual franchise stores(1) ____________________ (1) Since December 2023 till June 30, 2026 Individual Franchise stores already located across 14 provinces: Shanghai、Beijing、Zhejiang、Jiangsu、Anhui、 Sichuan、Henan、Shandong、Shanxi、 Guangdong、Liaoning、Heilongjiang、Tianjin…… 11,000+ Applications(1) Made-to-order Store Payback Period 2-3 years Signed # ~430 Q2 UPDATED
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Revenues from Sub-Franchise Business (RMB mm) Total Sub-Franchise Stores 129 333 449 484 Q2 23 Q2 24 Q2 25 Q2 26 275% 16.3 36.1 62.2 49.2 Q2 23 Q2 24 Q2 25 Q2 26 202% New Sub-Franchisee Store in Beijing Strategic Expansion of Our Franchise Network on Track Maintain Close Cooperation with Sub- Franchisee Partners Q2 UPDATED
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14.7 21.4 26.2 37.1 Q2 23 Q2 24 Q2 25 Q2 26 Steady Growth of Loyalty Club Members and Digital Orders ____________________ (1) Revenues from digital orders, including both delivery and mobile ordering for self pick-up, as a percentage of THIL’s revenues from company owned and operated stores Registered Loyalty Club Members (mm) Number of Orders (mm) Digital Orders% (1) 41.7% 13.3 13.3 14.0 12.0 Q2 23 Q2 24 Q2 25 Q2 26 80.6% 86.5% 90.4% 91.8% Q2 23 Q2 24 Q2 25 Q2 26 21.0 23.6 25.8 36.1 Q2 23 Q2 24 Q2 25 Q2 26 Average Club Members Per Store (thousands) 39.9% Q2 UPDATED
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544 484 1,028 By Ownership Development: Store Portfolio Breakdown System-wide stores breakdown 780 248 1,028 By prep format 332 281 116 61 238 1,028 By Trade area 631 227 170 1,028 By City tiers 386 217 197 159 69 1,028 By Opening year SFZ CO Non- MTO MTO Tier 3&4 Tier 2 Tier 1 Other Transport- Hubs Community Office Commercial 2026 2025 2024 2023 Before 2022 Q2 UPDATED
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02. Financial Highlights
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Top-line & Store Network Highlights ____________________ (1) Popeyes stores are not included in the count (2) System Sales include sales generated from company -owned stores and franchise stores 571 574 566 544 129 333 449 484700 907 1,015 1,028 Q2 23 Q2 24 Q2 25 Q2 26 Company owned and operated Franchised System-wide Stores(1) System Sales(2) (RMB mm) System-wide Stores(1) Total Revenues (RMB mm) 411.7 366.8 349.0 273.4 Q2 23 Q2 24 Q2 25 Q2 26 0 82 692 780700 825 323 248 700 907 1,015 1,028 Q2 23 Q2 24 Q2 25 Q2 26MTO store Non-MTO store 397.6 403.8 409.5 347.8 Q2 23 Q2 24 Q2 25 Q2 26 (21.7)% (15.1)% Q2 UPDATED
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Q2 2024 2025 2026 YOY (26 vs. 25) Food and packaging(1) 30.9% 30.1% 28.3% Rental and property management fee(1) 19.3% 20.2% 21.7% Payroll and employee benefits(1) 18.9% 17.8% 19.9% Other operating expenses(1) 7.6% 7.2% 7.9% Company owned and operated store contribution margin(1) (2) 10.1% 9.6% 5.7% Marketing expenses(3) 3.5% 4.0% 4.9% Adjusted general and administrative expenses(3) (4) 8.3% 9.9% 14.5% Adjusted corporate EBITDA margin (3) (5) 0.9% 0.6% (7.6%) ____________________ (1) As percentage of revenues from company owned and operated store (2) Company owned and operated store contribution margin stands for company owned and operated store contribution as a percentage of our revenues from company owned and operated stores. Company owned and operated store contribution is calculated as fully - burdened gross profit of company owned and operated stores excluding depreciation and amortization, previously disclosed as a djusted store EBITDA margin (3) As percentage of total revenues (4) Adjusted general and administrative expenses. Calculated as general and administrative expenses excluding share -based compensation expenses, professional fees related to financing programs, and impairment losses of rental deposits (5) Adjusted corporate EBITDA. Calculated as operating loss excluding certain non -cash expenses consisting of depreciation and amort ization, share-based compensation expenses, impairment losses of long -lived assets, loss on disposal of property and equipment, professional fees related to financing programs, and impairment losses of rental deposits 180bp Key Store and Corporate Financial Metrics: 2026Q2 210bp 460bp 820bp 70bp 150bp 390bp 90bp Q2 UPDATED
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Near-Term Priorities Deliver Sustainable Revenue Growth Expand Store-Level Profitability Optimize Cost Structure Accelerate Franchising Store Development Achieve Corporate EBITDA Breakeven Q2 UPDATED
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Investor Relations Contact IR@timschina.com Public and Media Relations Contact Patty Yu Patty.Yu@timschina.com About TH International Limited TH International Limited (Nasdaq: THCH) (“Tims China”) is the parent company of the exclusive master franchisees of Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company’s philosophy is rooted in world- class execution and data-driven decision making and centered on true local relevance, continuous innovation, genuine community, and absolute convenience. For more information, please visit https://ir.timschina.com/. IMPORTANT NOTICE REGARDING THE TIM HORTONS® BRAND The TIM HORTONS® brand and related trademarks is used by Tims China pursuant to a franchise agreement with Tim Hortons Restaurants International GmbH and its affiliates (collectively, the “Identified Persons”). The Identified Persons are entities entirely separate and distinct from Tims China and its subsidiaries (the “Group”). No Identified Person exercises any control over the business, operations, finances or management of the Group, and no Identified Person is responsible for any obligations or liabilities of the Group. Q2 UPDATED