JUBILANT FOODWORKS LIMITED Corporate Presentation February 2017 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 Format 2016 CAGR 2021 Rs 204.0 bn ---- Rs 509.5 bn Chained Market (7%) 20.1% (10%) Rs 810.8 bn ---- Rs 1,532.3 bn Standalone Market (26%) 13.6% (31%) Rs 2,076.4 bn ---- Rs 2,939.5 bn Unorganized Market (67%) 7.2% (59%) Rs 3,091.1 bn ---- Rs 4,981.3 bn Total (100%) 10.0% (100%) Chained Market projected to grow at 20% CAGR Source: India Food Services Report 2016- National Restaurant Association of India 5 Format 2013 CAGR 2016 CAGR 2021 Rs 15.2 bn ---- Rs 18.1 bn ---- Rs 29.1 bn Cafe (12%) 6% (9%) 10% (6%) Rs 55.0 bn ---- Rs 91.3 bn ---- Rs 246.7 bn Quick Service Restaurant (43%) 18% (45%) 22% (48%) Rs 39.5 bn ---- Rs 67.2 bn ---- Rs 172.5 bn Casual Dining Restaurant (31%) 19% (33%) 21% (34%) Rs 5 bn ---- Rs 5.3 bn ---- Rs 6.2 Cr Fine Dining Restaurant (4%) 2% (3%) 3% (1%) Rs 5.4 bn ---- Rs 10.7 bn ---- Rs 28.8 bn Pubs & Bars (4%) 25% (5%) 22% (6%) Rs 7.8 bn ---- Rs 11.6 bn ---- Rs 26.4 bn Frozen Dessert (6%) 14% (6%) 18% (5%) Rs 127.9 bn ---- Rs 204.0 bn ---- Rs 509.5 bn Total (100%) 17% (100%) 20% (100%) QSR segment is projected to grow at 22% would stand as 48% of total chained market Source: India Food Services Report 2016- National Restaurant Association of India 6 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 7 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 8 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 10 o Founded in 1960 o Founded in 1950 Presence Across o More than 13,200 franchised and Company- o More than 12,000 restaurants in more than 44 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 1,111 restaurants across 260 Indian cities* o 68 Restaurants across 19 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 2024 with right of renewal for another 10 years refusal for Sri Lanka, Nepal & Bangladesh * As of 06 February 2017 Accumulated learning's to drive ramp-up in Domino’s Pizza & Dunkin’ Donuts 11 Driven by Consumer Focus Operational Robust and Innovative Excellence Integrated Marketing Supply Chain Continuous Systems Human Innovation Resource Robust Project Management Corporate Investments Management driving growth Governance in Competency Mechanism Technology Delivering consistency in product and services to delight our customers 12 ROBUST INFRASTRUCTURE OPERATIONAL EXCELLENCE Delivering consistency in product and services to delight our customers Food Safety and Quality Assurance • Training on standards of Food safety and Quality • Regular QA Assessment • Third party assessment through NABL Accredited agency • Regular compliance checks of food processes as per FSSAI guidelines • Continual surveillance assessment of restaurants under ISO 22000 certification • Stringent selection & monitoring process of new and existing @ Restaurant suppliers based on key • Training of staff and managers on Level performance indicators for comprehensive standards of Food Quality and Food Safety safety and Quality requirements • Stringent sampling of all raw • Food ingredient suppliers are materials & COA approach FSMS certified Food Safety acceptance • Moving all vendors towards and Quality • Comprehensive analysis of Food FSMS certification Assurance products as per FSSAI guidelines • NABL Accredited Third Party • Regular food quality and safety QA Assessments Initiation for Core assessments based on FSSAI ingredient supplying Food @ Supply Chain @ Commissary Schedule 4 requirements Vendors level Level • Implemented FSMS (ISO 22000 ) • Alliances with all vendors to certification in 5 Commissaries continuously enhance Quality and Food safety norms and comply regulations 14 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 February 06, 2017 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 15 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 16 Institutionalised Composition of Board with Whistle Blower Professional Acumen Mechanism Nurturing Enterprise Robust Audit and Risk Management Corporate Review Mechanism Governance Mechanism Code of Conduct/ Established Internal No Gift Policy Control Mechanism Truly inculcated mechanism of corporate governance 17 Customer level Commissary / Supply chain level Customer Relationship Management ( CRM ) Oracle Transport management – Optimizes route/ load GPS enabled deliver vehicles – to track vehicle efficiencies for supplies from commissary to stores movement COGNOS – system aids in procurement planning OLO/mobile app /Voice ordering – for ease of SAP – for accounting and Supply Chain systems/ ERP ordering GPS on commissary truck – Enables tracking trucks and monitoring factors like temperature compliance Barcoding – for efficient stock management Automation – Implementation of sensor doors, use of technology for temperature compliance, picking trolley ARIBA – tool for vendor management Restaurant level Organizational Level OLO/mobile app /Voice ordering – for ease of Energy management system – tool to optimize ordering energy usage LMS – Learning management System – non trainer SAP – Accounting and Supply Chain related - ERP based learning at restaurants Biometric device – tracking of employee attendance, GRC – Governance Risk and Compliance tool helps improving productivity, Energy management system – tool to optimize I Manage – Mobility, Ease of Compliance, energy usage Socialization, automation of transactions, say confirmation Hyperion – tool for financial planning Integration of technology across levels to drive efficiencies & enhance growth opportunities 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 Pizza Mania Extremes Big Joy Burgers Range of coffees Product Innovation Burger Pizza DunkyDoos • Open Kitchen Design 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 6.8 million • “One to one” marketing Facebook fans utilizes information from point-of-sales • 137k followers on software system to Twitter provide relevant customized • More than 12.7 mn communication/ offers views for video of to consumers Domino’s Pizza India on YouTube Domino’s Pizza –Overview 22 Striking an emotional chord with consumers through its campaigns included ‘Hungry