“ “ “Debonairs Pizza Pioneered

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“ “ “Debonairs Pizza Pioneered Who We Are Our Journey Our Business amous Brands dates back to humble beginnings oday, the Group’s vertically integrated business Fin 1970, when the Halamandaris and the Tmodel consists of 30 brands represented by over Halamandres families conceived of and opened the 2,700 franchised restaurants across South Africa, the first Steers restaurant in Johannesburg, selling the rest of Africa, the United Kingdom and the Middle flame-grilled hamburgers South Africans have come East, underpinned by substantial Logistics and to love. Manufacturing operations. The Steers brand grew rapidly over the next two This business model positions us as an enterprise decades, leading to the decision to list the company that has offered our stakeholders – from corporate on the Johannesburg Stock Exchange. On listing and individual investors to our franchise partners – day in 1994, our business comprised of just one consistent year-on-year growth for the past decade brand, Steers, and a limited supply chain. More than and a half. two decades later our group has expanded, almost beyond recognition, into Africa’s largest branded food service franchisor, positioned in the top 100 Our People companies on the local bourse. cross the group we employ over 3,000 people This multi-faceted growth is testament to our high Adirectly and over 75,000 indirectly through performance culture and the founding families’ our franchise network. The experience, skill and values of hard work and honest endeavour, instilled commitment of each one of them, from our Board over the decades. of Directors to the individuals behind the scenes in all of our restaurants, has made our group the great success it is today. 1 DNA amous Brands is a fully integrated food service Our Strategic Intent Fbusiness and the most successful branded food service franchisor in Africa. Achieving this ambition Our business is focused on building capability and demanded vision, guiding principles, strategic capacity to position ourselves to deliver unique intent and an audacious growth agenda – these consumer experiences in the branded franchised will continue to inspire our future endeavours too. and food services space. Our Vision Our Growth Agenda To be the leading innovative branded franchised and • We are intent on building capability, capacity and food services business in South Africa and selected scale across manufacturing, branded franchised international markets by 2020. and food services spaces. • We are obsessed with being close to our trading Our Core Beliefs partners and consumers across premium and • Champions • Innovation mainstream markets. • Quality • Speed • We are passionate about unique consumer • Agility • Integrity experiences through innovation, flawless execution and continuous improvement. • Humility • We are a team of results orientated people characterised by a unique culture of high performance. • We are focused on organic and acquisitive growth in South Africa and selected international markets. 2 Financial Overview % growth 2017 2016 2015 2014 2013 2012 Revenue 21.6 5 720 363 4 308 318 3 283 342 2 825 979 2 516 287 2 155 615 (R000) Operating profit before non-operational items 17.8 938 048 792 108 672 024 565 517 465 842 412 656 (R000) Total assets 5 886 453 2 408 283 1 852 260 1 692 839 1 510 467 1 221 169 (R000) Net debt: 165.0 (0.4) (8.9) (2.1) 8.1 9.7 Equity (%) Headline earnings per share before non-operational items 613 540.6 467.2 406.2 339.1 278.3 & additional interest costs (cents) (%) Dividends per share 405 355 300 250 200 (cents) - Market capitalisation (Rm) 29.5 15 429 11 538 11 178 9 627 8 169 4 237 3 Brand Capabilities We have deliberately employed a strategy whereby Our brand portfolio comprises Africa and selected we have built a portfolio of brands, all of which South Africa international markets are designed to be best in their class, offering a • Wimpy • Lupa Osteria • Steers • Gourmet Burger Business compelling business proposition to our franchise Kitchen partners as well as a high quality solution to a wide • Milky Lane • Salsa Mexican Grill • Wimpy • Mr Bigg’s Model range of consumers. • Steers • Giramundo • Debonairs Pizza Our Design and Development division provides a • Debonairs Pizza • Vovo Telo • Pubs: K • Fishaways full turn-key service to all of our brands and their • Fishaways • tashas – KEG R respective franchise partners. • Mugg & Bean • Mugg & Bean • Turn ‘n Tender – O’Hagan’s he platform for continued growth • Milky Lane O Our central Marketing division is charged with Tis firmly in place, comprising an • Europa • The Bread Basket accomplished executive management ensuring that our brands are properly positioned, are • Wakaberry W relevant and remain contemporary. All of our brands • Fego Caffé • Wakaberry team, optimally structured business • Europa are supported via a wide range of through-the-line model and a pipeline of opportunities T • Net Café • Thrupps to continue to meet stakeholder strategic marketing initiatives. • Fego Caffé E • House of Coffees • PAUL expectations. Below-the-line marketing services are provided by N • Coffee Couture • Mythos Sauce Advertising, an associate company. • 14 on Chartwell • By Word of Mouth E • catch • Pubs: S I – KEG H – The Brewers Guild C – O’Hagan’s N A R Retail Capabilities Our Brand, Logistics and F The core thrust of this division is the extension of the The brands through which we compete in the retail and Manufacturing capabilities Group’s trademarks into the FMCG retail and wholesale food services space include: are supported by a range of markets. A secondary market comprises supplying Corporate Services which selected food services and catering customers where • Steers • TruFruit include: Finance, Human Resources, Information spare manufacturing capacity exists to do so. • Wimpy • San Diamanté Technology, Legal, • Mugg & Bean • Aqua Monte Procurement, Logistics Services and Operations • Milky Lane • Baltimore Services. 4 Logistics Capabilities Africa and selected The Logistics division represents the Group’s route- international markets to-market, delivering to the franchise network a Midrand comprehensive basket of products required to cater Longmeadow for brand-specific menus. The Logistics function Crown Mines affords a key strategic and competitive advantage to Mpumalanga the Group in terms of its overall franchise system. Free State KwaZulu-Natal The division is supported by nine Centres of Excellence situated across the country. These Centres of Excellence enable us to get closer to our franchise S partners by aligning our Franchising and Logistics businesses. The Centres also provide training to our U Eastern Cape employees and franchise partners. P Western Cape P L Y Manufacturing Capabilities C H Our Manufacturing division represents a key part of Wholly owned Joint venture A the group’s backward integration model and is tasked Product Location Product Location with manufacturing a range of licensed products for I both our franchise network and selected food service N Meat & chicken Gauteng & Western Cape Coffee Gauteng and retail customers. Bakery Gauteng & Western Cape Cheese Eastern Cape (Coega) Sauces & spices Gauteng Speciality breads Gauteng Ice cream Gauteng & KwaZulu-Natal Choice meat cuts Gauteng Red meat, chicken, ribs, Gauteng (City Deep) Fruit juice KwaZulu-Natal Pork & frozen storage Frozen fries Lamberts Bay Serviettes Gauteng Tomato paste Eastern Cape 5 Brands ur portfolio of market-leading brands Ooffers a powerful business proposition to our franchise partners and a high quality solution across a diverse range of dining occasions to consumers across income groups. 6 7 Ireland 6 Greece 1 608 Egypt 5 589 UK 166 Global Saudi Arabia 1 607 Footprint UAE 8 Oman 1 240 Sudan 6 219 Nigeria 125 Ethiopia 1 113 Ghana 1 Kenya 7 76 Zambia 42 Malawi 11 Zimbabwe 9 25 Angola 7 Mozambique 3 Namibia 50 97 Mauritius 21 South Africa 2 270 Swaziland 6 Restaurants 36 South Africa 2,270 Botswana 35 Rest of Africa 339 16 UK 166 Other 7 Signature Total 2,782 Brands 155 Specific data as at end Feb 17 8 Famous Brands Integrated Annual Report 2016 In a world hungry for real, “Steers is taking orders because everyone knows: flame-grilled just tastes better. teers is South Africa’s iconic hamburger “ Sbrand, loved across generations for its legendary 100% pure beef flame-grilled burgers, hand-cut chips, fresh ingredients and real flavour. Steers holds the title of ‘First Fast- Food Burger Concept’ in South Africa and also boasts an unmatched number of awards for best burger, for 18 consecutive years, and best chips, for 14 consecutive years. Since its launch nearly 60 years ago, Steers has experienced formidable growth across South Africa and, more recently, internationally. Steers is represented by a large number of local restaurants and a growing international footprint in Nigeria, Mauritius and Zambia. 9 Wimpy is South Africa’s “best-loved and largest sit-down restaurant franchise. “ n 1967, Wimpy first opened its doors in South IAfrica. Today, it’s a leader in the casual dining restaurant sector and one of the largest and most successful restaurant franchises in the country. The brand is renowned not only for its Famous Wimpy Coffee, all-day breakfasts and Wimpy burgers but also for treating South Africans to a wide selection of grills, salads, shakes and desserts. Having steadily grown in recognition and footprint since opening, Wimpy is a much- loved South African household name. In addition to high streets and malls, Wimpy is also represented on the forecourts of Engen petroleum service stations along the country’s major transit routes, where stopping off at a Wimpy to refuel is considered a national tradition. 10 Debonairs Pizza pioneered “the home delivery concept in South Africa. “ orn in 1991 of the vision of two young Bentrepreneurs from Pietermaritzburg, Debonairs Pizza sold a modest eight pizzas on its opening night. Today the brand sells 3 million pizzas a month.
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