FINANCIAL RESULTS for the year ended 28 February 2018 AGENDA
01 02 03 Highlights Growing capability Financial results 2018
04 05 06 GBK, UK : Insights Imperatives for Questions the future
2 HIGHLIGHTS 23% Strong revenue growth
4 Operating profit before Operating profit after non-operational items non-operational items 5% 37%
5 SA Business Strong results
6 Group under-performed Largely due to GBK UK and Coega Concentrate
7 Tightened up execution against vision
and strategy s
8 Continued strategic intent of growing scale and capacity s across operations
9 GROWING BRAND CAPABILITY – SA & AME 2018 BRAND CAPABILITY SYSTEM-WIDE RESTAURANT SALES GROWTH (RANDS)
10,0% 8,1% 8,3%
DOMESTIC AME SA & AME TOTAL
11 2018 BRAND CAPABILITY LIKE-ON-LIKE RESTAURANT SALES GROWTH (RANDS)
3,4% 3,0%
-0,8%
DOMESTIC AME SA & AME TOTAL
12 2018 BRAND CAPABILITY GBK, UK SALES GROWTH (STERLING)
4,9%
-6,8% SYSTEM WIDE LIKE-FOR-LIKE
13 2018 BRAND CAPABILITY TRADING FOOTPRINT South Africa 2 346 AME 328 United Kingdom 172 Other 7
2 853
Total Restaurants
14 2018 BRAND CAPABILITY LEADING BRANDS - NEW RESTAURANTS OPENED (SA & AME)
49 146
30 Total 24 14 16 8 5
Steers Wimpy Debonairs Pizza FishAways Mugg & Bean Fego Milky Lane
15 2018 BRAND CAPABILITY TOTAL RESTAURANTS OPENED
146 182
Total 5.7bn Revenue increase of 33% across the 23 divisions 10 3 2 782 Restaurants
16 TO BE UPDATED WITH INFORMATION FROM DARREN 2018 BRAND CAPABILITY TOTAL RESTAURANT NUMBERS 625 650 581 2 853
Total
253 237 164 99 106 80 38 6 14
Steers Wimpy Debonairs FishAways Mugg & Mr Biggs GBK Milky Lane Fego Giramundo Wakaberry Signature Pizza Bean Brands 17 2018 BUILT BRAND CAPABILITY Focus on Leading brands with more allocation of resources Signature Brand openings positive Various consumer awards across Leading and Signature brand portfolios Relentless innovation, improvement and responsiveness to evolving trading landscape Reducing distractions in AME
18 GOALS GROWING BRAND CAPABILITY
Review Signature Rapidly grow Leading brands to Open Debonairs Pizza Get more brand portfolio capability in deliver BIG BOLD in Saudi Arabia entrenched in digital arenas initiatives under license key AME markets
Prioritise Drive margin Pipeline of branded offers Further entrench home Expand tashas Leading brands improvement on developed in-house delivery offering across footprint in UAE with resources to Signature brands ready to launch all brands drive growth
19 GROWING HOSPITALITY CAPABILITY – SA 2018 BUILT HOSPITALITY CAPABILITY
Frozen For You launched
Low growth economy had major impact on this sector
21 GOALS GROWING HOSPITALITY CAPABILITY
Grow presence Expand home meal in ‘premium’ replacement space through corporate market “Bricks” and “Clicks”
22 GROWING LOGISTICS CAPABILITY – SA & EXPORTS 2018 BUILT LOGISTICS CAPABILITY
Work stoppage was a financial setback but a trigger to drive greater efficiency
Owner drivers delivered 50% of total volumes – new milestone
Longmeadow costs reflected for a full year Good progress on building export capability
24 2018 LOGISTICS CAPABILITY REVENUE GROWTH 14,0% 12,8% 11,3% 10.7% 9,4% 9,6% 7,4%
25 GOALS GROWING LOGISTICS CAPABILITY
Embark on Project Decade
• Refer to supplementary slides for additional info
26 GROWING MANUFACTURING CAPABILITY - SA 2018BUILT MANUFACTURING CAPABILITY Cater Chain emerged as a solid business with the right partners WCP Bakery closed August ‘17 LBF business turned around Cheese slice capability commissioned on time Sweetener capability commissioned Coega Concentrate is a longer term play than anticipated – key challenge remains to source long-term suppliers to capitalise on substantial capacity. Loss of R19.6m this year 28 2018 MANUFACTURING CAPABILITY REVENUE GROWTH – OWN PLANTS
21.0% 11.3% 15.1% 14.7% 13.4% 13.9%
2.7% 3.5% -4.8%
29 2018 MANUFACTURING CAPABILITY REVENUE GROWTH – JV PLANTS
28.5% 37.4% 36.0% 30.9%
-0.3% -2.1%
30 GOALS GROWING MANUFACTURING CAPABILITY
Drive new Take on previously Focus on Secure sustainable New routes to Leverage Juice “Food Connect” outsourced grated efficiencies tomato supply market for LBF Plant Joint Partnership cheese volumes at “Manufacturing or exit Venture FB Cheese Company Way”
31 GROWING BUSINESS CAPABILITY 2018 BUILT BUSINESS CAPABILITY
Secured a partner for our design business unit “Design HQ”
New Group-wide ERP system was implemented on time and within budget
Investment in building depth at senior management and executive level
Concluded two year wage agreement
33 FINANCIAL RESULTS 2018 SALIENT FEATURES
F 2018 F 2017 % Change Revenue (Rm) 7 023 5 720 23
Operating profit before non-operational items (Rm) 890 938 (5)
Operating profit after non-operational items (Rm) 518 817 (37)
Cash generated from operations (Rm) 1 123 795 41
EPS (cents) 22 414 (95)
HEPS (cents) 393 428 (8)
Net debt : equity (%) 126 165 39
Return on equity (%) 25 28 (3)
35 REVENUE
Rm 23% 7 023 Compound annual growth 5 720 4 308 3 283 2 516 2 826
2013 2014 2015 2016 2017 2018
36 INCOME STATEMENT
Rm F 2018 F 2017 % Change Revenue 7 023 5 720 23 Gross profit 3 769 2 772 36 Selling and administrative expenses (2 879) (1 834) (57) Operating profit before non-operational items 890 938 (5) Non-operational items (refer note 1) (373) (121) Net finance costs (251) (131) Share of profit from associates 4 4 Profit before tax 270 690 (61) Tax (207) (235) Profit for the year 63 455 (86)
37 INCOME STATEMENT | NON-OPERATIONAL ITEMS
Note 1 F 2018 F 2017 Impairment 372 592 20 000 Derivative loss on call option utilised to hedge purchase price - 33 253 Foreign exchange loss on initial recognition of investment - 23 295 Professional fees - 50 420 Gain on bargain purchase - (6 213) 372 592 120 755
38 OPERATING PROFIT BEFORE NON-OPERATIONAL ITEMS
Rm Operating Profit (Rm) Margin %
20.0 20.5 18.5 18.4 938 890 16.4 792 672 12.7 566 466
2013 2014 2015 2016 2017 2018
39 SEGMENTAL ANALYSIS | REVENUE
Rm F 2018 F 2017 % Change Brands (Franchising and Development) 851 781 9 Supply Chain 4 328 3 983 9 Manufacturing 2 851 2 300 24 Logistics 3 780 3 416 11 Eliminations (2 303) (1 733) 33 Corporate 11 3 South Africa 5 190 4 767 9 International 1 833 953 92 UK 1 581 704 125 Rest of Africa and Middle East (AME) 252 249 1 Revenue 7 023 5 720 23
40 SEGMENTAL ANALYSIS | OPERATING PROFIT
Rm % of Total F 2018 F 2017 % Change Brands (Franchising and Development) 48 431 427 1 Supply Chain 58 509 455 12 Manufacturing 46 405 330 23 Logistics 12 104 125 (17) Corporate (6) (50) (49) South Africa 100 890 833 7 International - - 105 (100) UK (5) (45) 55 (182) AME 5 45 50 (10) Operating Profit before non-operational items 100 890 938 (5)
41 SEGMENTAL ANALYSIS | OPERATING MARGIN
% F 2018 F 2017 Brands (Franchising and Development) 50.7 54.7 Supply Chain 11.8 11.4 Manufacturing 14.2 14.3 Logistics 2.7 3.6 South Africa 17.2 17.5 International - 11.0 UK (2.8) 7.9 AME 17.6 19.9 Group 12.7 16.4
42 PRODUCTIVITY AND MARGIN RATIOS
Operating profit margin % Expense to turnover % Gross profit magin % 60 53,7 48,5 50 43,4 44,2 41,8 42,7 41,0 40 32,0 30 23,0 23,0 24,0 24,0
20 18,5 20,0 20,5 18,4 10 16,4 12,7 0 2013 2014 2015 2016 2017 2018
43 STATEMENT OF FINANCIAL POSITION
F 2018 F 2017 % Change ASSETS Property, plant and equipment 1 340 1 398 (4) Intangible assets 2 548 2 819 (10) Investments in associates 81 83 (2) Inventories 436 455 (4) Trade and other receivables 670 649 3 Cash and cash equivalents 717 429 67 Other assets 114 53 115 TOTAL ASSETS 5 906 5 886 - EQUITY AND LIABILITIES Equity 1 632 1 485 10 Borrowings 2 781 2 856 (3) Derivative financial instruments 192 219 (12) Lease liabilities 97 87 11 Trade and other payables 771 791 (3) Other liabilities 433 448 (3) TOTAL EQUITY AND LIABILITIES 5 906 5 886 -
44 RATIOS | NET DEBT / EQUITY
180 165 160 140 126 120 100 80 60 40 8,1 20 -2,1 -0,4 0 -8,9 -20 2013 2014 2015 2016 2017 2018
45 CASH FLOW
(274) 1 123 (207) (201) (108) (17) (4) 717 405
Opening Cash Cash from Tax Interest Capex & Other Financing Dividend Forex Closing cash Operations Investing Activities Activities
46 GBK, UK : INSIGHTS GBK UK THE CRITICAL QUESTIONS
How has GBK performed relative to the UK market and its key competitors?
What are the key drivers, both controllable and non-controllable, that are causing this under performance in revenue and growth?
What are the focus areas for the future?
48 GBK PERFORMANCE ON A LFL BASIS
GBK MONTHLY LFL GROWTH (3 month rolling average)
GBK GBK Outperforming market GBK 20% underperforming underperforming market market 15%
10%
5%
0% 17 -
-5% Dec
-10%
-15% Jul11 Jul12 Jul13 Jul14 Jul15 Jan11 Jan12 Jan13 Jan14 Jan15 Jul-16 Jul-17 Sep11 Sep12 Sep13 Sep14 Sep15 Nov11 Nov12 Nov13 Nov14 Nov15 Jan-16 Jan-17 Mar11 Mar12 Mar13 Mar14 Mar15 May11 May12 May13 May14 May15 Sep-16 Sep-17 Nov-16 Nov-17 Mar-16 Mar-17 May-16 May-17
Source: Management data 49 KEY FINDINGS
SUMMARY Consumer Confidence 1 3 Customer Advocacy • Post Brexit consumer confidence has • Customer advocacy is key to driving repeat declined with consumers more purchase and recommendations price sensitive GBK has • GBK’s standards within the product delivery • High end burgers considered as needs to be stepped up expensive items faced a number of adverse forces since the beginning Competitor Incursion 2 of 2017 4 Online Delivery shift in Market Dynamics • The number of burger restaurants has • Key purchase criteria is delivery time. GBK is doubled between 2014 to 2017 disadvantaged as it cooks burgers to order which • Where there has been incursion into a leads to a c.10 min longer delivery time catchment area, GBK has suffered with • First-mover advantage eroded. Deliveroo an average 7% decline in revenue is also now saturated with other restaurants on its platform
50 1. CONSUMER CONFIDENCE
Consumer Confidence 10 8 Word association on brands is now 6 Brexit Vote showing premium burgers as expensive 4 23rd June 2016 2 0 -2 -4 GBK Byron Five Guys -6 -8 -10 -12 2014 2015 2016 2017 Total UK Population
Source: Gfk 51 1. CONSUMER CONFIDENCE (CONT)
Main reasons for customers reducing visits to burger restaurants % of respondents
II am eating outout lessless generallygenerally to save money 23% I am consciously eating less meat for lifestyle, health or ethical reasons 16% I am trying to lose weight 12% Burger restaurants are more expensive than they used to be 11% I am actively choosing another style of restaurant 10% There are fewer/ no burger restaurants near me 8% Burger meals are fattening 8% The current atmosphere in burger restaurants puts me off 6% I am bored of burgers 6% Other 1%
0% 5% 10% 15% 20% 25%
Source: Survey 52 2. COMPETITOR INCURSION
Premium Burger Restaurants, 2014-17 Number of sites CAGR 2014-17 401 450 Total 23.5% 400 351 Others 32.2% 104 350 272 83 Meat Liquor 37.5% 13 300 18 Handmade (6.5%) 10 24 Honest 38.7% 213 64 28 250 18 9 69 Byron 12.9% 200 45 25 5 10 70 22 150 9 55 81 Five Guys 59.4% 48 62 100 20 40 92 50 64 69 80 GBK 12.9% 0 2014 2015 2016 2017
Source: MCA, Company websites and accounts 53 2. COMPETITOR INCURSION (CONT)
IMPACT ON GBK LFL Impact of Competitor Incursion (3 mth impact from opening) vs. Full Year LFL Performance %
10% 8,9% 8% 5,9% 6% LFL growth for the 3 months 4% 2,0% post competitor opening 1,0% 2% GBK annual LFL growth 0% -2% -4% -6% -5,6% -8% -6,6%
FY16 FY17 FY18
Source: Management information; analysis 54 2. COMPETITOR INCURSION (CONT)
IMPACT OF BYRON CLOSURES POST CVA
GBK RESTAURANT BYRON CLOSE DATE LFL GROWTH SINCE CLOSURE +6.9% A 11/02 +11.9%
B 18/02 +12.1%
C 25/02 +5.8%
D 08/04 -13.0%
E 16/04 +14.8%
55 3. CUSTOMER ADVOCACY
MARKETING INFLUENCERS Did any of the following influence you in choosing Gourmet Burger Kitchen on this occasion? % 28% 30%
20% 13% 10%
10% 6% 4% 4% 3%
0% Friends Menu/Poster in Voucher Reviews Social Media Location on Website Recommendation Window Google Maps
Source: BrandVue 56 3. CUSTOMER ADVOCACY (CONT)
Favourite burger restaurant, 2 years ago vs. current GBK VS. COMPETITORS % of respondents
Other 20,6% 18,2% Handmade Footprint share Honest 4,4% 4,5% 2,3% 5,5% Ed’s Easy Diner (401 universe): 7,6% 5,5% 8,6% 10,7% Byron 69/401 17.2% 13,3% 24,0% Five Guys 81/401 20.2% 43,1% 31,5% GBK 92/401 22.9%
Favourite burger restaurant 2 years ago Favourite burger restaurant
Source: Survey 57 4. ONLINE DELIVERY
Chain Restaurant Delivery Market Size, 2014-17 £Million / % Share of chain restaurant market
600 7,4% 0,08 6,4% 0,07 500 CAGR 2014-17 5,4% 0,06 25.3% 400 4,5% 0,05 300 0,04 515 0,03 200 419 Chain restaurant 336 262 0,02 delivery 100 0,01 Delivery share of chain restaurant market 0 0 2014 2015 2016 2017
Source: MCA, Company websites and accounts 58 4. ONLINE DELIVERY (CONT)
Leading criteria when choosing a takeaway option through Deliveroo Multiple choice, % of regular users
60% 55%
38% 34% GBK suffers on this 30% 26% #1 criteria as our burgers take 10 min 17% 15% 11% longer to prepare 7% 6% due to higher quality standards Delivery time Delivery type Cuisine cost Delivery Restaurant choice Good value for money experience Previous Easeofordering comments Customer Reputation range Delivery deal Promotional
Source: Survey 59 4. ONLINE DELIVERY (CONT)
COMPETITIVE LANDSCAPE Just Eat accounts for three in ten takeaway deliveries
It is ahead of local/independent restaurant delivery by 5pp
Domino’s Pizza is the second most popular branded delivery operator, accounting for one in Local / Other five of deliveries Independent 20% 10% 31% 26%
6% 4% 4%
BASED ON MOST RECENT DELIVERY (VOLUME)
Source: MCA foodservice delivery report 60 4. ONLINE DELIVERY (CONT)
DELIVERY COMPANY UK SHARE Domino’s Pizza leads delivery business in London, whilst it is Just Eat in the regions
Based on most recent delivery, 21% of London consumers recall their food was ordered from Domino’s Pizza, closely in line with the incidence in the region. 17% of Londoners’ deliveries were from Just Eat, 16pp lower than in the regions. Deliveroo is the third most popular delivery operator brand in the capital, accounting for one in eight of deliveries, 8pp higher than is the case further afield.
12% Other 20% 17% Local / 21% Independent 10% 33% 28% Local / Other Independent 9% 6% 3% 17% 16% 7% 3% London Regions
Source: MCA foodservice delivery report 61 4. ONLINE DELIVERY (CONT)
CASE STUDY : MULTI VENDOR ROLLOUT
DELIVERY TURNOVER CONTRIBUTION GROWTH RESTAURANT (SEP17 – JAN 18) A +44%
B +48%
C +47%
62 GOALS KEY IMPERATIVES GOING FORWARD
Re-establish the gold Commence targeted refurb Launch multi- vendor Commence standard across the and high street brand delivery platform measured new store entire value chain and facelift programme (from 1 to 3) opening programme customer journey, (2 sites planned i.e. product & for 2018) experience
Strengthen Re-establish the GBK Simplify menu design, Targeted closure leadership brand assets entry and exit pricing, programme for distressed core team and leverage simplify supply chain sites (6 restaurants in 2018)
63 THE GOOD NEWS Favourite burger restaurant January 2018 % of respondents
18,2% 4,5% 5,5% 5,5% 10,7%
24,0%
31,5%
Favourite burger restaurant
Source: Brand Vue eating out survey 64 IMPERATIVES FOR THE FUTURE IMPERATIVES FOR THE FUTURE
Manage cash within the new balanceBetter sheet allocation constraints of corporate costs and admin fees to business units
Experienced management team in place to execute future strategies Prospects remain positive
Board skills and expertise reinforced over the past year Tighter growth agenda
66 FUTURE RE-ALLOCATION OF CORPORATE AND OTHER COSTS THE IMPACT ON BUSINESS UNIT MARGINS
F19 results will reflect tighter allocation of This is a deliberate, Manufacturing division considered strategy likely to absorb more pertinent costs to – not a means to costs than other specific operating ‘move margin around’ segments business units
These are segmental allocations only and will not impact on overall margin
67 OUTLOOK
Local and global Focus on long Appropriate trading conditions term growth acquisitions will remain be pursued in challenging brands and upstream manufacturing segments
68 OUR OUR STRATEGIC VISION INTENT Our business is focused on growing To be the leading innovative capability and capacity to position branded franchised and food ourselves to deliver unique services business in South Africa consumer experiences in the and selected international markets branded franchised and by 2020. food service space.
69 QUESTIONS Thank you SUPPLEMENTARY INFORMATION OUR GROWTH AGENDA
We are intent on We are obsessed We are passionate We are a team We are focused on growing capability, with being close about unique of results organic and capacity and to our trading consumer orientated people acquisitive growth scale across partners and experiences characterised in South Africa manufacturing, consumers across through innovation, by a unique and selected branded franchised premium and flawless execution culture of high international and food mainstream and continuous performance markets services spaces markets improvement
72 PROJECT DECADE
Project Decade refers to a managed focus on addressing capacity constraints
Logistics business requires a planned investment programme over the next decade
Need to address immediate capacity constraints and seek out efficiencies over the medium term
Margin will improve over time but will be ‘lumpy’ over the reinvestment period
We will apprise the market as appropriate
73 INDICATIVE IMPLEMENTATION TIMING
New WMS WCP CM DC KZN Implementation Relocation Expansion Relocation
FS ECP Expansion Relocation or MPU Gauteng Expansion Expansion Consolidation
03/2018 - 02/2019 03/2019 - 02/2020 03/2020 - 02/2021 03/2021 - 02/2022 03/2022 - 02/2023 03/2023 - 02/2024 03/2024 - 02/2025 03/2025 - 02/2026
FY FY FY FY FY FY FY FY 2019 2020 2021 2022 2023 2024 2025 2026
74 LOGISTICS
LOCAL REVENUE VS EXPORTS
Export Revenue SA Logistics Revenue 3.1% 96.9%
Source: Management disclosure 75 BOARD OF DIRECTORS Bheki Sibiya Independent Santie Botha John Lee Halamandres Christopher Boulle Non-executive Director Independent Chairman Non-executive Director Non-executive Director Thembisa Skweyiya Emma Mashilwane Independent Kelebogile Ntlha Independent Norman Adami Non-executive Director Darren Hele Group Financial Director Non-executive Director Independent Chief Executive Officer Non-executive Director Nicolaos Halamandaris Non-executive Director
76 SHAREHOLDER ANALYSIS
PIC/GEPF 10.2% Panagiotis Halamandaris Other 7.7% 36.9% Coronation Fund Managers 14.4%
Theofanis Halamandaris 7.0% Arisaig Partners 4.3% Periklis Halamandaris 4.0% LGM Investments 8.4% John Lee Halamandres Morgan Stanley Investment Management 2.8% 4.3%
As at February 2018; Source: Sponsor 77 DOMESTIC CONSUMER TRENDS
Consumers continue The accelerated growth Consumer awareness Despite a growing The novelty of The traditional to seek out value of technology in the of the broader competitive set, international brands has distinction between offers as disposable retail space is shifting environmental impact consumers are eating subsided, but has Quick Service income remains consumer expectations of their food and dining out less often. They are reframed consumer Restaurants and Casual under pressure of convenience, choices continues to increasingly discerning expectations of Dining Restaurants is specifically regarding grow and drive about their choice of innovation, exciting becoming less clear as online and mobile decisions outlet, seeking out deals and new offerings category blurring ordering platforms, relevant and authentic continues. Home door-to-door delivery customer experiences delivery and third party and electronic payments online ordering platforms are further contributing to the new definition of ‘eating out’
Source: Famous Brands Central Marketing 78 DOMESTIC CONSUMER ENVIRONMENT
YOY FOOD AND BEVERAGE INCOME CHANGE AT CONSTANT PRICING VERSUS CURRENT PRICES
Constant 2015 Pricing Current Pricing
9,9 Full Year 8,9 8,9 0.4 8,3 8,7 7,7 7,1 6,1 5,6 3,9 3,9 3,2 3,5 3,2 Full Year 1,9 2,4 2,4 6.3 1,7 1,8 1,4 0,4
-0,3 -2 -2,3 -2,3 -2,8
Jul-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18
Source: Food and Beverage Report, StatsSA, February 2018 79 DOMESTIC CONSUMER ENVIRONMENT
YOY FOOD AND BEVERAGE INCOME CHANGE BY OUTLET TYPE
Restaurants and Coffee Shops Takeaway and Fast Food Full Year 8,2 7,2 0.7 5,9 5,9 6,0 4,6 4,7 3,5 3,5 3,5 2,1 Full Year 1,0 0,8 0,7 1.3
-0,3 -0,5 -0,9 -1,5 -1,1 -1,6 -2,1 -2,8 -2,5 -3,0 -4,8 -6,4
Jul-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18
Source: Food and Beverage Report, StatsSA, February 2018 80 DIVIDEND RESUMPTION
Historically the Group has had low debt levels Gross Debt / Ebitda R2.4bn term loans were raised Target in F2017
De-gearing of balance sheet 2X commenced during F2018 Short to medium term gross debt / Ebitda is 2X
81 RATIOS | NAV PER SHARE
(R) 18 16,3 15,5 14,9 16 14,2 14 12,4 12 10,2 10 8 6 4 2 0 2013 2014 2015 2016 2017 2018
82 RATIOS | RONA AND ROE
% RONA % ROE %
55 50,0 49,0 50 46,1 43,6 45 40 35,9 36,0 35,1 36,4 35 29,1 30 25 28,1 19,7 20 25,1 15 2013 2014 2015 2016 2017 2018
83 OPERATING MARGINS BY DIVISION
% Manufacturing Logistics Brands Group AME UK
70 60,1 60,4 59,4 57,1 60 54,7 50,7 50 46,1 40,0 40 34,8 28,2 30 23,3 19,9 18,5 20,0 20,5 16,4 20 18,4 17,6 14,0 20,1 13,6 14,2 10 13,7 14,3 12,7 6,5 12,5 13,7 7,9 0 2,7 3,5 4,0 4,0 3,4 3,6 -2,8 -10
2013 2014 2015 2016 2017 2018
84 GBK GROUP EBITDA INSIGHTS
GBK £
Operating loss including impairment and property related provision (7 800)
Depreciation & amortisation 6 525
Impairment 4 218
EBITDA (including pre-opening costs) 2 943
Pre-opening costs 930
EBITDA (excluding pre-opening costs) 3 873
Source: Management disclosure 85 CAPEX BY BUSINESS UNIT
(RANDS) MILLIONS
BUSINESS UNIT ACTUAL 2018 Manufacturing including Retail 30 998 Logistics 9 968 Franchising 25 006 Consolidated Corporate 29 252 SA Business 95 224 AME 10 058 UK Business 125 137 TOTAL GROUP 230 419
86 DOMESTIC FRANCHISING MARGIN INSIGHTS
58,2% 50,7%
15,1%
TOTAL
Source: Management disclosure 87 DOMESTIC RESTAURANT SALES
SPLIT BETWEEN SIGNATURE AND LEADING BRANDS
Signature brands SA 12.2%
Leading brands SA 87.8%
Source: Management disclosure 88 REVENUE BREAKDOWN
SA AND AME Signature brands Leading brands AME
Royalties Company Store Sales Project Management Once off Fees
1.0% 2.0% 2.1% 1.6% 0.4% 0.8% 23.5%
96.4% 37.8% 59.3% 75.2 %
Source: Management disclosure 89 BREAKDOWN OF DOMESTIC FRANCHISEE RATIO TO STORES
9 to 28; 13,5%
8 Stores; 4,1% 1 Store; 31,7% 7 Stores; 3,0% 6 Stores; 3,9%
5 Stores; 7,0%
4 Stores; 6,1%
2 Stores; 19,8% 3 Stores; 11,1%
Source: Management disclosure 90 SYSTEM WIDE SALES IN AME BY COUNTRY
SYSTEM WIDE TURNOVER GROWTH % LOCAL CURRENCY
113,9%
46,6%
24,0% 14,6% 14,4% 13,0% 11,5% 7,6% 2,3% 3,3% 2,8% 4,0%
-7,6% -18,9%
UAE Angola Kenya Nigeria Sudan Ethiopia Malawi Namibia Zambia Botswana Mauritius Swaziland Zimbabwe Mozambique
91 MONTHLY EXCHANGE RATE USED
UK EUR USD Nigeria Zambia Botswana Dubai ZAR/GBP ZAR/EURO ZAR/USD ZAR/NGN ZAR/ZMW ZAR/BWP ZAR/AED Exchange rates TYD Ave TYD Ave TYD Ave MTD Ave MTD Ave TYD Ave TYD Ave Year end 29.02.2016 20.37490 14.85840 13.48730 12.48020 0.7173 1.2707 Year end 28.02.2017 18.91877 15.71456 14.259468 23.57590 0.7402 1.306701 3.8813818 31-Mar-2017 15.91182 13.78887 12.899627 24.09087 0.7438 1.233556 3.511332 30-Apr-2017 16.4255 14.0762 13.1592 23.18407 0.7030 1.24716 3.581972 31-May-2017 16.6577 14.2659 13.1881 23.65394 0.6981 1.251529 3.589843 30-Jun-2017 16.6129 14.3131 13.1118 24.42518 0.7164 1.249925 3.569043 31-Jul-2017 16.7015 14.4747 13.1119 24.51284 0.6802 1.253221 3.569073 31-Aug-2017 16.7771 14.6701 13.1325 26.92790 0.6798 1.257969 3.574660 30-Sep-2017 16.8769 14.8080 13.1331 27.08473 0.7137 1.260878 3.574826 31-Oct-2017 17.0262 14.9686 13.2037 26.04809 0.7131 1.266297 0.370594 30-Nov-2017 17.1997 15.1395 13.3004 25.24517 0.7109 1.272914 0.373647 31-Dec-2017 17.2381 15.1781 13.2813 27.22097 0.7657 1.272319 0.373836 31-Jan-2018 17.1998 15.1490 13.1816 29.27402 0.786565 1.268419 3.5876147 28-Feb-2018 17.1465 15.1057 13.0761 30.26381 0.829459 1.264423 3.5590007
Note: Average is "Financial year to date" average 92 CONTACT INFORMATION Darren Hele Chief Executive Officer +27 11 651 5812 Lebo Ntlha Group Financial Director +27 11 847 6491 Ian Isdale Company Secretary +27 11 847 6394 Instinctif Partners Investor Relations +27 11 447 3030 email [email protected]
93 DISCLAIMER
This presentation contains forward looking statements about the company’s operations and financial position, which reflect the Company’s bona fide expectations at the date of this presentation. They are based on best estimates and expectations. Actual performance may differ materially from the current estimates and expectations and thus may prove to be inaccurate. Caution should be exercised in placing any undue reliance on this information as unanticipated events will occur and actual future performance may differ materially from current expectations. Famous Brands assumes no obligation to update or revise any forward looking statements other than may be required by legislation and/or regulation and assumes no responsibility whatsoever for any loss or damage as a result of any reliance placed on the forward looking statements.
94