COLLINS FOODS LIMITED Annual Queensland Conference

9 October 2013

COLLINS FOODS LIMITED 0 Today’s agenda

SECTION 1 – Collins Foods Limited

SECTION 2 – KFC returns to growth

SECTION 3 – Sizzler in transition

SECTION 4 - Financial information

COLLINS FOODS LIMITED 1 COLLINS FOODS LIMITED Kevin Perkins, Managing Director & CEO

COLLINS FOODS LIMITED 2 Our history and background

COLLINS FOODS LIMITED 3 KFC returns to growth

COLLINS FOODS LIMITED 4 QSR Industry at a glance

Key statistics snapshot • Revenue $12.6bn made up of approximately 13,000 businesses

Market share – major players Competitive Foods Australia Pty Ltd (Industry brand names - Hungry Jack’s) Yum! Restaurants Australia Pty Limited (Industry brand names - KFC and Pizza Hut)

McDonald’s Australia Holdings Limited (Industry brand names – McDonald’s)

8.1% 10.0% 10.8% 18.2% 52.9%

Other Doctor’s Associates Inc. (includes Quick Service Restaurants, Domino’s (Industry brand names - Subway) Pizza Enterprises Limited, Eagle Boys Dial-a- Pizza Pty Limited and Boost Juice)

COLLINS FOODS LIMITED 5 KFC top-line returns to growth

$million FY13 FY12* Change • Revenue up 5.8% to $318.2m Restaurants: – SSSG of 4.2% (FY12: down 1.8%) – average 120.9 119.5 1.4  – period end 122.0 121.0 1.0  – free-standing and service centre locations Revenue 318.2 300.8 5.8%  driving growth % SSSG 4.2% (1.8)% – new restaurants performing well EBITDA 44.7 47.0 4.9%  – food courts continue to be challenging % margin 14.0% 15.6% 160bps  • EBITDA down 4.9%* to $44.7m EBIT 33.3 35.7 6.7%  – lower gross margin from input pressures and % margin 10.5% 11.9% 140bps  promotional discounting – one-off labour savings in prior year KFC Sales 320 – energy cost increase in line with expectations, 315 primarily from carbon tax

310 – labour productivity and energy reduction

305 initiatives partly offsetting cost pressures

300 Sales Sales (Millions) * FY12 numbers are pro forma measures, which differ from statutory presentation to reflect the full 295 year impact of the operating and capital structure of the Group that was established upon the IPO and capital reconstruction together with the elimination of IPO costs and related adjustments which 290 are not expected to recur in the future. FY2011 FY2012 FY2013 Financial Year *FY2012 & FY2011 - Proforma Results COLLINS FOODS LIMITED 6 KFC promotions driving sales…

• WOW dinners – 9 for $9.95 value offer, keeps showing increase in demand versus prior year • Successful Spring Campaign with a new variant that mixes 2 ideas loved by Australians, KFC Zinger flavour and pies • Breakfast trial including coffee, introduced in several stores in May/June, keeps strengthening its product demand • ‘Goodification’ continuing with emphasis on preparation in-store, ingredients and providence • Continued focus on increasing customer transactions in all store types through the Value Layer

…through targeted ‘value’ deals and new innovative menu items

COLLINS FOODS LIMITED 7 KFC Capex focused on growth

KFC Capex and Depreciation

25.0 7.00

6.00 20.0

5.00

15.0

4.00 $ millions $ 3.00

10.0 New Store Openings NewStore

2.00

5.0 1.00

0.0 0.00 FY 12 FY 13 FY14 Budget

Depreciaton Maint / Systems Refurbishment / Rebuild / Relocate New Units New Unit Builds

COLLINS FOODS LIMITED 8 New KFC restaurants

North Lakes Wurtulla Chinchilla

Opened 12 August 2013 Opened 11 September 2013 Opened 12 September 2013 Capital spend $1,264k Capital spend $1,169.5k Capital spend $1,222k Projected WSA $51.6k Projected WSA $46.8k Projected WSA $45.5k Actual WSA $56k Actual WSA $58.5k Actual WSA $70.5k (2 week average only) (2 week average only)

WSA – weekly store average COLLINS FOODS LIMITED 9 Major reimage and rebuild

Maryborough (REIMAGE) Kallangur (REIMAGE) Gympie (REBUILD)

Completed 21 June 2013 Re-opened 19 June 2013 Re-opened 24 July 2013 Capital spend $470k Capital spend $437k Capital spend $1,485k Projected WSA $55.7k Projected WSA $69.9k Projected WSA $73.4k Actual WSA $58.3k Actual WSA $72.5k Actual WSA $98.3k

WSA – weekly store average COLLINS FOODS LIMITED 10 Sizzler in transition

COLLINS FOODS LIMITED 11 Sizzler performance reflects transition being undertaken

$million FY13 FY12* Change • Overall revenue flat at $105.6m with Australian Restaurants: SSSG down 2.4% – average** 27.0 26.4 0.6  − casual dining sector impacted more than QSR – period end** 27.0 27.0 – in current economic climate Revenue 105.6 105.8 0.2%  − price sensitivity and ‘relevance’ continue to % SSSG** (2.4%) (4.0%) hamper sales EBITDA 10.1 10.7 5.6%  − restaurants outside of Brisbane performing % margin 9.6% 10.2% 60bps  better EBIT 6.0 7.0 14.3%  • EBITDA down $0.6m to $10.1m % margin 5.7% 6.6% 90bps  − margin tightened 60bps Sizzler Sales  limited price increases unable to fully 106 offset input cost pressures

105  promotional discounting squeezing

margins 104  labour productivity and energy reduction 103 initiatives offsetting labour and utilities Sales Sales (Millions) cost pressures 102 * FY12 numbers are pro forma measures, which differ from statutory presentation to reflect the full year impact of the operating and capital structure of the Group that was established upon the IPO and capital 101 reconstruction together with the elimination of IPO costs and related adjustments which are not expected to recur in the future. FY2011 FY2012 FY2013 ** Australia only Financial Year COLLINS FOODS LIMITED 12 Repositioning Sizzler for growth

• Repositioning the Sizzler menu to offer ‘More Choice/Better Value’ − detailed menu development − lunch menu implemented and dinner menu currently being tested • Introducing more relevant and frequent food news through a stronger marketing calendar • Using more effective promotional tactics to drive transactions during softer periods of trade specifically early week • Leveraging and building on the ‘Now You’re Talking’ campaign and ‘The Legendary Salad Bar’ • Introducing a series of initiatives to improve in-store customer experience – from enhanced hospitality through to more physical aspects such as plateware, tableware and uniforms • Continuing to review all areas of the business to identify ways to reduce costs

COLLINS FOODS LIMITED 13 Sizzler strategic review at core of transformation

• Review of Sizzler format, layout and design for a cost efficient and ‘investable’ model − design and layout of a smaller footprint

− ideal seating capacity and flow − salad bar format layout and design − improved store economics

• Introduce a more contemporary store design that reflects next generation of Sizzler • Reframe brand positioning to be more relevant to changing consumer landscape • Integrate brand communication to effectively express brand proposition • First new restaurant likely in FY15

COLLINS FOODS LIMITED 14 Financial information

COLLINS FOODS LIMITED 15 Consolidated income statement

For the reporting period ended 28 April 2013

2013 $2012 $000 $000 Revenue 423,885 405,970 Cost of sales (201,711) (192,587) Gross profit 222,174 213,383 Selling, marketing and royalty expenses (89,514) (83,814) Occupancy expenses (33,327) (31,378) Other expenses and income (69,556) (65,436) Profit from continuing operations before finance income, finance costs and income tax (EBIT) 29,777 32,755 Finance income and costs (6,182) (25,663) Share of net profit of associate accounted for using the equity method 92 87 Profit from continuing operations before income tax 23,687 7,179 Income tax (expense)/benefit (7,319) 4,250 Profit from continuing operations 16,368 11,429 Net profit attributable to members of Collins Foods Limited 16,368 11,429

COLLINS FOODS LIMITED 16 Strong balance sheet

Balance sheet 28 April 2013 29 April 2012 • Cash up $4.4m to $23.6m $m $m – strong cash flow generation Cash and equivalents 23.6 19.2 • Property, plant and equipment up $1.6m Total current assets 31.8 25.3 to $59.1m Property, plant and 59.1 57.5 equipment – new restaurants and rebuilds partially offset by depreciation Total non-current assets 309.0 308.9

Total assets 340.8 334.3 • Undrawn debt facilities of $40m

Debt* 104.7 104.5 • Remain comfortably within debt covenants Total current liabilities 48.5 48.9 – Total non-current liabilities 106.8 106.1 net leverage ratio of 1.72x (maximum 2.75x) Total liabilities 155.3 155.0 – lease adjusted cover ratio of 2.42x NET ASSETS 185.5 179.3 (minimum 1.75x) * net of capitalised costs $0.3m (FY12 $0.5m) • Successfully refinanced debt on improved terms in July 2013

COLLINS FOODS LIMITED 17 Strong, growing cashflows

$million FY13 FY12 • Operating cashflow up 15.7% to $41.2m

Net operating cash flows before – interest down $9.8m 50.1 51.2 interest and tax  rate and debt down on prior year Net interest paid (6.0) (15.8) – tax paid up $3.1m (tax losses utilised from Income tax paid (2.9) 0.2 prior period) • Net investing cash outflows down $0.4m to Net operating cash flows 41.2 35.6 $18.0m Capex* (17.9) (18.8) – restaurant rollout and refurbishment Other (0.1) 0.4 program continues Net cash flow from investing (18.0) (18.4) • Cash outflow from financing down to $18.9m

Net cash flow from financing (18.9) (41.7) – FY13 includes payment of maiden dividend (FY12) and interim FY13 dividend Net cash flow 4.3 (24.5) – prior period reflects impact of IPO • Strong cashflows enabled FY13 final fully franked dividend of 5.5 cps (FY12: 6.5 cps) and * Capex reflects actual Capex spent, excludes accruals at total FY13 fully franked dividends of 9.5 cps period end (FY12: 6.5 cps)

COLLINS FOODS LIMITED 18 FY13 financial results – in line with expectations

• Revenue up 4.3%(i) to $423.9m • EBITDA down 7.6%(i) to $47.2m • NPAT of $16.4m in line with expectations vs FY12 statutory NPAT of $11.4m and FY12 pro forma(i) NPAT of $18.4m • EPS of 17.6 cents up 22.2% vs FY12 statutory EPS of 14.4 cents and down 11.1% vs FY12 pro forma(i) EPS of 19.8 cents • Operating cashflow up 15.7% to $41.2m • Strong balance sheet with net debt down $4.2m to $81.1m • Remain comfortably within covenants with $40m of undrawn debt facilities • Final fully franked dividend of 5.5 cps bringing total FY13 dividend to 9.5 cps fully franked… 54% payout ratio (FY12: 6.5 cps fully franked)

… with underlying business performance returning to growth (i) Pro forma measures, which are unaudited, differ from statutory presentation to reflect the full year impact of the operating and capital structure of the Group that was established upon the IPO and capital reconstruction together with the elimination of IPO costs and related adjustments which are not expected to recur in the future.

COLLINS FOODS LIMITED 19 Year to date and FY14 Outlook

• Gympie rebuild resulted in a sales record • FY14 EBITDA and NPAT growth still for the first seven days expected • Three new KFC stores opened in July and • Improving return on assets September 2013 • Capex spend of $15.0m - $17.5m … on • On target to open one more new KFC five-seven new KFC restaurants and store before December 2013 with three 12 KFC refurbishments; and more to open late in the fourth quarter approximately $8.0m on KFC and Sizzler maintenance and support centre • KFC same store sales performance flat (primarily IT related) capex • KFC Food Court stores performance • Strong cashflows underpin capex spend showing improvement due to operational and reduced net debt initiatives undertaken • Expect to maintain dividend policy • Sizzler same store sales performance softer than expected • Expect to release half year results on 28 November 2013

COLLINS FOODS LIMITED 20 Questions

COLLINS FOODS LIMITED 21 Disclaimer

This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Circumstances may change and the forward looking statements may become outdated as a result so you are cautioned not to place undue reliance on any forward looking statement. All financial amounts contained in this presentation are expressed in Australian currency and rounded to the nearest $0.1 million unless otherwise stated. Any discrepancies between totals, sums of components and differences in tables and percentage variances calculated contained in this presentation are due to rounding.

COLLINS FOODS LIMITED 22