JUBILANT FOODWORKS LIMITED Corporate Presentation June - 2016 2
1 Overview of the Indian Food Service Industry
2 Overview of Jubilant FoodWorks Limited (JFL)
3 Domino’s Pizza – Journey & Positioning
4 Dunkin’ Donuts –Journey & Positioning
5 JFL Financial Highlights
6 Outlook
7 Annexures (Experienced Team, CSR Initiatives & Awards) Overview of Indian Food Service Industry 4
INR – 20,067 crs INR – 6,79,463 crs
Chained Independent USD 3 Bn USD 106 Bn in 2015 in 2015
Fine Dining Dhabas
Pubs & Lounges Roadside Eateries
Standalone Cafes sweet shops
QSR Street Stalls
Ice cream Hawkers Parlours
INR/USD – 64.14 Chained Units: 10 or more units Independent Units: Other and international chains than chained 5
INR – 699,529 crs 12% CAGR INR – 12,19,393 crs 2015 – USD 109 Bn 2020 – USD 190 Bn
11% CAGR Independent
19% CAGR
Chained
Chained FSI expected to grow rapidly INR/USD – 64.14
(Source: Euromonitor Consumer Food Service Report 2016) 6
figures in INR crs 2012 2013 2014 2015 Gr% CAGR Brand Name Sale % Mix Sale % Mix Sale % Mix Sale % Mix 15/14 3 Yr Domino's Pizza 1,296 10.2% 1,628 11.2% 1,938 11.6% 3,209 16.0% 65.6% 35.3% McDonald's 1,383 10.9% 1,426 9.8% 1,457 8.7% 1,490 7.4% 2.2% 2.5% KFC 896 7.0% 1,251 8.6% 1,375 8.2% 1,352 6.7% -1.7% 14.7% Café Coffee Day (incl Xpress) 942 7.4% 1,075 7.4% 1,186 7.1% 1,125 5.6% -5.1% 6.1% Pizza Hut 405 3.2% 421 2.9% 455 2.7% 883 4.4% 94.1% 29.7% Subway 277 2.2% 353 2.4% 436 2.6% 561 2.8% 28.7% 26.6% Barbeque Nation 191 1.5% 276 1.9% 361 2.2% 442 2.2% 22.3% 32.2% Starbucks 9 0.1% 46 0.3% 70 0.4% 251 1.3% 260.4% 206.2% Baskin-Robbins 154 1.2% 172 1.2% 172 1.0% 167 0.8% -3.0% 2.8% Swirl's 119 0.9% 124 0.8% 124 0.7% 142 0.7% 14.0% 6.1% Papa John's 97 0.8% 87 0.6% 87 0.5% 138 0.7% 58.2% 12.5% Little Italy 90 0.7% 100 0.7% 109 0.7% 130 0.6% 19.2% 12.9% Dunkin' Donuts 3 0.0% 8 0.1% 17 0.1% 35 0.2% 108.5% 136.9% Other 6,879 54.0% 7,614 52.2% 8,903 53.3% 10,141 50.5% 13.9% 13.8% Total 12,740 100.0% 14,580 100.0% 16,691 100.0% 20,067 100.0% 20.2% 16.3%
18.0% 16.0% 16.0% Domino’s Pizza has been 14.0% 11.6% 12.0% 11.2% consistently increasing its market 10.2% 10.0% share in Chained FSI 8.0%
6.0% 2012 2013 2014 2015 (All figures are as per Euromonitor Consumer Food Service Report 2016) 7
Pro-growth Demographics (increased youth population, Higher disposable / discretionary nuclear family & more working income women)
Growth driven by Greater urbanization digitization
Changing consumer preferences – Growth in chained widening exposure to retail new cultures and cuisines
India an attractive proposition Business potential in transit for global players – more locations choices for consumers
Large consumption growth relative to emerging and developed markets 8
Consistent quality of Rising Focused & Execution & Focus on Prudent roll- product with Value for aspiration of integrated delivery of hygiene and out finger on money using branded approach strategy sanitation customer’s products pulse
Evolving according to the needs of the consumer, leading to growth 9
On the pedigree of the global brand Capitalising
The palette with local flavors Customising
New products on a regular basis Introducing
A unique model through home delivery & dine-ins Developing
Operational excellence- consistency of product and service Delivering
On enticing customers with evolving mktg strategies Focusing
Systematic approach to deliver sustainable growth Overview of Jubilant FoodWorks 11
o Founded in 1960 o Founded in 1950
Presence Across o More than 12,100 franchised and Company- o More than 11,500 Restaurants in more than 40 Countries owned Restaurants in more than 80 international countries markets
Beginning of Restaurants in India o 1st Restaurant operated in India in Mar’96 o 1st Restaurant operated in India in Apr’12
Presence in India o 1,039 Restaurants across 240 Indian cities* o 74 Restaurants across 24 Indian cities* o India is currently the biggest market for Domino’s Pizza outside the United States
Contract Details o Exclusive right to open Domino’s Pizza o Exclusive right to operate and develop Dunkin’ restaurants in India, Sri Lanka, Bangladesh and Donuts restaurants in India. The agreement is for Nepal a period of 15 yrs, till February 2026 with the o Current franchising agreement till December option of renewal for 10 yrs, with first right of * As of 28 May, 2016 2024 with right of renewal for another 10 years refusal for Sri Lanka, Nepal & Bangladesh
Accumulated learning's to drive ramp-up in Domino’s Pizza & Dunkin’ Donuts 12
Driven by Consumer Focus Operational Robust and Innovative Excellence Integrated Marketing Supply Chain Continuous Systems Innovation Human Resource Robust Project Management Corporate Management driving growth Governance Competency Mechanism
Delivering consistency in product and services to delight our customers 13
ROBUST INFRASTRUCTURE
OPERATIONAL EXCELLENCE
Delivering consistency in product and services to delight our customers @ Commissary Level
• Training staff and managers on comprehensive standards of @ Vendor level Food safety and Quality @ Restaurant Level • Stringent sampling of all raw • Stringent selection process for materials & COA approach • Training on standards of suppliers based on key acceptance Food safety and Quality performance indicators for • Comprehensive analysis of Food • Regular QA Assessment Quality and Food Safety products as per FSSAI • Third party assessment requirements guidelines through NABL Accredited • Food ingredient suppliers are • Regular food quality safety QA agency FSMS certified assessments in accordance with • Regular compliance checks Moving all vendors towards • FSSAI requirements as of food processes as per FSMS certification • Implemented FSMS (ISO 22000 ) FSSAI guidelines • NABL Accredited Third Party certification in 5 Commissaries • Continual surveillance Assessments Initiation for assessment of restaurants Core ingredient supplying under ISO 22000 certification Food Vendors • Alliances with all vendors to continuously enhance Quality and Food safety norms
Food Safety and Quality Assurance 14 15
Vendors and Central Location Partners
COLD CHAIN TRUCKS at 1-40 C COLD CHAIN TRUCKS at 1-40 C Restaurants
Raw Materials Restaurants
* As of 28 May, 2016
Under Construction
An integrated supply chain for Domino’s Pizza and Dunkin’ Donuts adapted to Indian conditions; well-equipped to deal with geographic and demand expansion 16
Guest Delight Manager (Restaurant Manager) is Assist Pre defined treated as CEO Employees in growth path for of the encouraging every Team Restaurant excellence Member educational growth
Reward & Learning & Recognition with Professional Variable Incentives Development and bring motivation Training
Whistle Blower institutionised at Fun at work every restaurant/office
Team members act as brand ambassador imbibing JFL’s values, ethics and culture 17
Institutionalised Composition of Board Whistle Blower with Mechanism Professional Acumen
Robust Audit and Nurturing Enterprise Review Mechanism Corporate Risk Management Governance Mechanism
Code of Established Internal Conduct/ Control Mechanism No Gift Policy
Truly inculcated mechanism of corporate governance 18
3 5
Negotiate With landlords Average restaurant opening/ construction Handover of restaurant to time is between 35-45 2 contractor for interiors days from the date of possession of premises 4 for a new restaurant Construction/ Purchase and location installation of machinery
6
Operational and Financial Diligence Legal due diligence and agreement sign off with landlords
1 7 Training of team members Local advertisement (distribution of Identify new Restaurant opening flyers, regional restaurant media coverage) location 8
ROI/Payback period analysis undertaken prior to opening a restaurant 19
Double Cheese Crunch Pizza Custard Bliss Big Joy Burgers Range of coffees
Product Innovation
Zingy Parcel Breakup Party Éclair!
• Open Kitchen Theme Innovation • Flexible Seating • Heritage Wall
Technology Innovation
Innovating to keep the excitement alive 20
National Marketing Local Store Marketing (LSM)
. Television . Door Hangers
. Print Media & Radio . Flyers (including regional language) . Customer lifecycle management programme . Emotional positioning of ‘Yeh hai Rishton ka Time’ . Innovative BTL activation (restaurant targeted) . Innovative new product development and launches
Digital Marketing Customer Relationship Management
• More than 6.6 million . “One to one” marketing Facebook fans utilizes information from point-of-sales software • 116k followers on system to provide Twitter relevant customized communication/ offers to • More than 12.3 mn consumers views for video of Domino’s Pizza India on YouTube Domino’s Pizza –Overview 22
Striking an emotional chord with consumers through its campaigns included ‘Hungry Kya?’, ‘Khushiyon ki Home Delivery’ and the latest Reaching out to one ‘Yeh Hai Rishton Ka more people by Time’ launching unique mobile applications
Providing value by tapping the middle Mastering classes through the on-time home the affordable delivery model, ‘Fun Meal’ and the without penalizing ‘Pizza Mania’ the delivery boy Popularizing range for late/free the pizza delivery concept by customizing it to the Indian palette 23
Revenue 9 Yr CAGR (FY08-FY16) 36%
400 2016: Crossed 1000 1200 2012: Launch of new store milestone Aug 2008: Launch of positioning “Yeh Hai new positioning Rishton Ka Time” "Khushiyon Ki Home 1026 350 2003: Launched Delivery" Nov 13: 1998: Launched "30 Min or Free" 1000 "Hungry Kya?" Fresh Pan campaign 2012: Taco campaign Pizza Indiana & 876 300 Aug 2008: Launch 2009: CLC, July 13: Lebanese Roll of Rs.35 Pizza Pasta & Choco BOGO Wed Mania Lava Launched Launched 800 726 250
2005: Ajay Kaul Management 576 200 appointed as CEO 600 Changes Largest 465 market outside of No. Restaurants 150 Pizza 378 U.S. Theatre 400 306 100 100th 241 Restaurant Feb 2010: s 182 IPO 200 50 100 80 93
2 8.4 10.9 0.2 7.6 31.3 42.0 62.8 100.5 150.7 208.2 255.0 306.9 356.5 0 0 FY96 FY01 FY04 FY05 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Revenue (USD mn) Restaurants
Initial Phase Consolidation Planned Growth Aggressive Growth Largest market for Domino’s Pizza outside of U.S.A 24
Open Kitchen- Benefits
. Its Theatric-Consumer can see the making of Pizza’s . Confidence in Hygiene and Sanitations.
Pizza Flexible Seating Theater . High stools for Youngsters . Soft sitting for Seniors . Long Table for Families
Heritage Wall
. Indicating more than 60 years Old Brand 25
Pizza Mania Extremes 26
Fresh Pan Pizza in Regular size
Double Cheese Crunch Pizza
Zingy Parcel Taco Mexicana
Custard Bliss
Subwich Junior JoyBox 27
Chef’s Inspiration Exotic Italian Pizza -Co-created by Chef Vikas Khanna and Domino’s chefs
Florence Chicken Exotica
Roman Veg Supreme 28
National Delivery Number
Restaurant Takeaway
3600 Indian mode of Mobile Railways customer App outreach
Online Delivery ordering 29
Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16
Average OLO contribution to delivery sales 29% 33% 36% 36% 41%
Mobile Ordering sales contribution to overall OLO 23% 28% 30% 38% 38%
Downloads of mobile ordering app 2.6 mn 3.1 mn 3.5 mn 3.7 mn 3.9 mn
Accessible through all platforms Dunkin’ Donuts – Overview 31
ALL DAY PART MENU 32
“Get your Mojo Back” positioning, focused on the urban youth consumer and aimed to get Dunkin’ Donuts better placed in the sweet spot between the QSR and the Café markets New, evolved products with higher degree of complexity and gourmet qualities All day part menu offering of food (burger, wraps, sandwiches, etc), apart from donuts & beverages (coffee)
33
Donuts Square shaped donuts
Too Much Burgers
Food
Big Joy Burgers
Salty Jamoonade Virgin Mojito Coolatta Beverages
Salty Classic Lemonade Coolatta 34
Online Ordering in Delhi -NCR
OLO / Alliance with Grofers Tie- up with online delivery platform Grofers to deliver Dunkin’ Donuts’ fresh donuts to consumers' doorsteps. Tie-up with Zomato for online order taking Financial Highlights-Jubilant FoodWorks 36
All figures in Rs mn
Total Income EBITDA (LHS) EBITDA% (RHS)
30,000 3,000 20% 18.6% 2,852 17.7% 17.3% 2,628 18% 2,551 25,000 24,102 2,500 15.7% 16% 2,444 14.7% 20,745 14% 20,000 2,000 1,904 12.7% 17,328 12% 11.8% 15,000 14,153 1,500 10%
1,201 8% 10,233 10,000 1,000 6% 6,803 666 4% 4,243 5,000 34% CAGR 500 27% CAGR
2%
0 0 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Note: 1. Financial discussion throughout this release is based on standalone reporting 2. The financials of Dunkin’ Donuts have been included in the results & related financial discussion 37
All figures in Rs mn
PAT (LHS) PAT % (RHS) Networth
1,600 12% 9,000
10.6% 10.4% 8,000 7,681 1,400 9.6% 10% 1,258 1,233 7,000 6,711 1,200 1,146 1,351 7.8% 1,056 8% 6,000 5,635 7.3% 1,000 5,000 5.9% 4,362 800 6% 720 4.8% 4,000
600 2,996 4% 3,000
400 1,917 330 2,000 23% CAGR 2% 1,174 37% CAGR 200 1,000
0 0% 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Note: 1. Financial discussion throughout this release is based on standalone reporting 2. The financials of Dunkin’ Donuts have been included in the results & related financial discussion 38
No. of Employees No. of Restaurants 27,122 27,719 24,969 1,097* 1,113** 19,734 930 752 14,626 586 11,514 465 378 8,196 306
FY10 FY11 FY12 FY13 FY14 FY15 FY16
Same Store Sales Growth (SSG) Debt-Equity ratio 37% 3.4 30% 22% 16%
2% 3.2% 0.05% 0.1 0 0 0 0 0 0
FY10 FY11 FY12 FY13 FY14 FY15 FY16
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
• *Total No of stores includes 1,026 Domino's Pizza stores + 71 Dunkin’ Donuts Restaurants (as of 31 March 2016 • **Total No of stores includes 1,039 Domino's Pizza stores + 74 Dunkin’ Donuts Restaurants (as of 28 May, 2016) Outlook 40
Focused on long term goals Portfolio Expansion Strategy to Leverage skills, Drive consistently Develop & assets and innovation Evaluate resources across build on supply leverage international functions and chain & brand equity By taking renowned brands pursue cost manufacturing advantage of around QSR/ efficiencies to deep consumer Casual Dining. enhance growth capabilities Sustained efforts to knowledge , Explore starting profitably conduct brand create and design own brand or building initiatives new menu acquiring/ Enhance Reach Necessary investments and drive consumer offerings to investing in some towards fortification of awareness through generate superior promising business foundation to multipronged levels of domestic brand enable JFL to take marketing strategy customer Restaurant expansion advantage of demand Focus on satisfaction continues to a core priority potential successful roll out in order to expand reach Greater Noida of innovative Aligned to this, for FY17, commissary (currently products target of around 130 - 140 underway) to create new Domino’s Pizza and world class facilities to around 20 new Dunkin’ cater to future growth Donuts. Focus on digitization and reaching a wider audience through online ordering Annexures: Experienced Team , CSR initiatives Awards
42
Mr. Shyam S. Bhartia (Chairman & Director) Mr. Hari S. Bhartia (Co-Chairman & Director)
o Has experience in the pharmaceuticals and specialty o Has experience in pharma, life sciences & healthcare, chemicals, food, oil and gas, aerospace and IT sectors oil & gas (exploration & production), agri & o Bachelor’s degree in commerce St. Xaviers College, performance polymers, food & retail and consulting Calcutta University; Fellow member of the ICWAI services in aerospace and oilfield services o Bachelor’s degree in chemical engineering from IIT, Delhi
Mr. Ajay Kaul (CEO and Wholetime Director) Mr. Vishal Marwaha (Independent Director)
o Has experience in India and abroad in industries such o He has expertise in private equity and investment as financial services, airlines, express distribution, banking. logistics and food retail o Bachelor’s degree in commerce from the University of o Bachelor’s Degree in Technology from IIT Delhi and Delhi and is a qualified chartered accountant MBA from XLRI, Jamshedpur 43
Ms. Ramni Nirula (Independent Director)
o Has experience in the banking and finance industry including Project Financing, Strategy, Planning & Resources and Corporate Banking o Bachelor’s degree in economics and MBA from University of Delhi
Mr. Phiroz Vandrevala (Independent Director) o He has been part of numerous expert committees constituted by the Reserve Bank of India to guide the Central Bank in its policy-making efforts, as well as IT advisory bodies in India and on the Board of several prominent educational institutions o He is a graduate from Kolkata and a qualified Chartered Accountant
Mr. Arun Seth (Independent Director) o He has commercial and technical expertise in the IT and telecommunications industry in India. o Holds a bachelor’s degree in engineering from IIT, Kanpur and MBA from IIM, Calcutta 44
Ravi S. Gupta (President & CFO) Mr. Tarun Bhasin (President & Chief Business Officer, Dunkin’ Donuts India) o Spearheading finance & accounts, legal, secretarial and Investor relations o Responsible for Operations & business development, o Ravi Gupta has over 25 years of experience in training & customer service, quality and Six Sigma, Corporate Finance, strategy and accounting and marketing, new product development and HR Information Technology, of which 14 years have been o Has over 23 years overall experience out of which 20 with JFL years have been with the Company o He holds bachelor’s degree in commerce from Shri o He holds a bachelor’s degree in Arts from University Ram College of Commerce, Delhi University, Diploma of Delhi and diplomas in public relations and hotel in Business (Finance) and is also a fellow member of management from Bhartiya Vidya Bhavan, New Delhi ICAI and Associate member of ICMA and ICSI. and National Council for Hotel Management and Catering Technology, New Delhi, respectively
Dev Amritesh (President & Chief Business Officer, Domino’s Pizza Mr. Avinash Kant Kumar (Executive Vice President, Supply Chain) India) o Responsible for supply chain, commissary o Responsible for operations and business management and procurement development, marketing, project and maintenance, o Has over 22 years overall experience in Supply Chain, training and customer service, quality & Six Sigma for Logistics, Procurement & Sales. He has experience in India setting up two start-up companies. He has joined JFL o Has over 17 years overall experience out of which over in 2014 10 years have been with the Company o He has done B.Tech. (Hons.) from IIT Kharagpur & o He holds a BE degree from Bangalore University and PGDIE from NITIE,Mumbai. also holds a PGDBM (Marketing and Operations) diploma from IMT, Ghaziabad. 45
Biplob Banerjee (Executive Vice President, HR, Admin & CSR) Arvind Vats (Sr Vice President, Management Assurance, FP&A and IR)
o Currently responsible for HR, Admin & CSR o Responsible for management assurance, corporate governance, FP&A, Investor relations and corporate o Has over 22 years of overall experience and has affairs joined JFL in May’15 o Has over 22 years overall experience out of which 11 o He holds a Masters in Business Administration degree years have been with the Company from XLRI, Jamshedpur and is a graduate (Mechanical Engineering) o He is a CA, ICWA and MBA (Finance)
Ramandeep Singh Virdi (Sr. Vice President –IT) Subroto Gupta (Sr.Vice President - Business Excellence & Innovation) o Currently responsible for IT o Currently responsible for Business Excellence & o A global IT leader professional with 21 years + of Innovation experience in airline, travel, R&D & BPO. He has been o 19 years of global leadership experience across roles in involved in building , developing & establishing an sales, marketing, operations & enterprise innovation exhaustive & integrated IT framework for all his group programs in various companies. He has joined JFL in 2016 companies. He has joined JFL in 2016 o He holds a master’s in Business Administration (Finance) o He holds a Master’s degree in Business administration degree form Indian institute of social welfare & business from University of Surrey (UK) management, he has managed leadership roles focusing on enterprise wide though leadership, research and innovation programs Annexures:- Awards 47
Domino’s Pizza India won Domino’s won Star Retailer of the year Award at JFL won CSR Initiative of the year Award in • Excellence in customer service at World Franchisee India Award FY16 at Annual Indian Retail Awards organized Franchisee Congress by Franchisee India • Best Customer Service Restaurant Award by Franchisee India • Customer Service Excellence Award at Annual India Retail Awards
Coca Cola Golden Spoon Award under following JFL won Golden Peacock award in FY16 for Dunkin’ won categories: • National Quality Award for concentrated • Delhi NCR Hot 50 Brands Award in FY16 • IMAGES Most Admired Food Service Chain Of efforts in building a culture of continuous presented by One India The Year – QSR Foreign Origin improvement • Best marketing and promotions Award at • IMAGES Most Admired Food Service Retailer • National Training Award Images Retail Award by India Retail Forum Of The Year – Retail Expansion • Risk Management 48
Swachh Bharat Abhiyan Proactive efforts towards the mission of a Clean India. Road Safety Working concertedly across cities to spread awareness on road safety. Inclusive Development of People with Disabilities (PwD) Empowering PwDs to integrate them seamlessly in the work environment. Education Remedial education program for rag-picking children. Empowering Youth Enhancing skills of socially disadvantaged youth to facilitate their gainful employment. Awareness Campaigns Promoting health by organising blood donation drives, anti-drug campaigns etc. Nutrition Supporting the Akshaypatra Foundation.
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