Devyani International Ltd. · NSE:DEVYANI
Devyani International — Q2 FY2022 Earnings Presentation
43 slides from Devyani International's earnings presentation, Nov 1, 2021
Slide 1: Regulation 30 filing cover letter
Devyani International Limited Corporate Office : Plot No-18, Sector-35, Gurugram - 122004, Haryana (India) • Tel. : +91-124-4566300, 4786000 E-mail: devyani@dil-rjcorp.com • Website : www.dil-rjcorp.com CIN N o .: L15135DL1991PLC046758 November 01, 2021 To, National Stock Exchange of India Ltd. BSE
Slide 2: Quarterly Results Presentation Q2 FY-2022
Quarterly Results Presentation Q2 FY-2022
Slide 3: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities (“Securities”) of Devyani International Limited (the “Company”) in India, the Uni
Slide 4: Chairman's Comment
Chairman’s Comment Commenting on the performance for Q2 & H1 2022 Mr. Ravi Jaipuria, Chairman, Devyani International Limited said, “We are pleased to report our first financial results post our successful listing in August 2021. Our IPO witnessed a strong reception from the investor community and ha
Slide 5: Table of Contents
Table of Contents 1 Q2 FY2022 - at a glance 2 DIL Consolidated Performance 3 Core Brands – KFC, Pizza Hut & Costa 4 Sustainability & Social Initiatives 5 Company Background
Slide 6: H1 Overview & Key Developments
H1 Overview & Key Developments Successful completion of Initial Public offering & Listing in August 2021 PAT positive for the quarter. 111 net new stores in H1 FY-2022; Total count at 803. Strong business recovery post Covid 2nd wave. Robust recovery in KFC in Aug-Sep’21. Encouraging PH
Slide 7: Q2 FY22 Financial Highlights (Y-o-Y)
Q2 FY22 Financial Highlights (Y-o-Y) Revenue from operations - 124% growth to Rs. 5,161 million All round encouraging performance on Core Brands. India - KFC revenues up 141%, Pizza Hut up 111%. Healthy growth in International business. Revenue growth - 90% to Rs. 500 million. Robust SSSG; K
Slide 8: New Store Additions – Great Momentum
New Store Additions – Great Momentum NET NEW UNITS (NNU) Stores as at Stores as at 31 Mar 21 30 Sept 21 Brand Q1 FY22 Q2 FY22 LTM KFC 20 25 95 264 309 PH 20 34 93 297 351 Costa - 1 (10) 44 45 Others 1 3 (9) 50 54 Total India 41 63 169 655 759 Nigeria 1 2 4 24 27 Nepal 1 3 5 13 17 G. Total 43 68 178
Slide 9: Store Expansion – Cluster Focus
Store Expansion – Cluster Focus Core Brands Stores; India – Regional split As on March 31, 2021 Core Brands Stores March 31, 2021 Sept. 30, 2021 NCR 135 141 188, 31% 254, Bengaluru 80 91 42% Kolkata 42 48 47, 8% North 116, Hyderabad 32 43 19% Other Metro cities 15 17 East Total Metros 304 340 West A
Slide 10: Business Performance – DIL Consolidated
Business Performance – DIL Consolidated Revenue from Operations - Quarterly Revenue from Operations - Annual 625 644 692 735 803 Stores 566 610 692 803 15,164 5,161 13,106 46% 1,491 4,331 500 1,104 11,348 3,791 385 3,528 1,154 8,688 351 410 910 2,299 13,673 263 4,661 12,002 3,946 10,195 3,440 3,117
Slide 11: Financial Performance – DIL Consolidated
Financial Performance – DIL Consolidated Brand Contribution - Quarterly Brand Contribution - Annual 10.4%* 16.9% 20.7% 13.0% 20.6% % 13.7% 11.2% 13.9%* 17.6% 1,067 1,789 1,696 897 132% 101 143 1,573 1,525 225 91 164 172 639 59 459 965 1,646 805 71 1,471 1,409 239 1,354 580 9 388 230 India Q2 FY21 Q3
Slide 12: Profitability – DIL Consolidated
Profitability – DIL Consolidated EBITDA - Quarterly EBITDA - Annual PAT* 16.5%* 23.3% 27.3% 17.4% 23.9% 21.3% 16.8% 20.0%* 21.3% -4.5% -5.2% -7.2% -9.5% 8.7% 1,184 1,233 2,790 2,555 466 240 36 119 100% 128 2,269 320 883 430 272 1,849 90 616 218 -227 91 1,106 -551 -479 -107 380 1,065 2,550 2,235 -739
Slide 13: Performance Trend – DIL India
Performance Trend – DIL India Revenue from Operations Gross Profit Brand Contribution 68.4% 69.0% 72.0% 71.5% 71.3% 11.3% 16.8% 20.4% 12.5% 20.7% 4,661 50% 3,324 3,946 965 2,840 3,440 805 3,117 2,373 2,227 580 2,036 1,393 388 230 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY2
Slide 14: Core Brands – KFC
Core Brands – KFC
Slide 15: Net New Stores added in the Qtr - 25
Net New Stores added in the Qtr - 25 GANGTOK DHARAMSHALA CHAMPAPET, HYD BENGALURU VISHAKHAPATNAM KOTA
Slide 16: Business Performance – KFC
Business Performance – KFC Revenue from Operations - Quarterly Revenue from Operations - Annual 214 240 264 284 309 Stores 134 172 264 309 6,443 3,014 6,091 2,540 5,043 4,641 2,211 2,029 1,251 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 141% y/y growth Avg. Daily Sales pe
Slide 17: Financial Performance – KFC
Financial Performance – KFC Gross Profit - Quarterly Gross Profit - Annual 65.9% 67.1% 69.7% 69.4% 69.1% GM % 66.0% 64.8% 67.7% 69.2% 4,360 2,083 3,950 1,769 3,491 1,484 3,064 1,408 824 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 153% y/y growth Brand Contribution - Quart
Slide 18: Channel Sales Mix - KFC
Channel Sales Mix - KFC KFC Sales Mix - Quarterly KFC Sales Mix - Annual 11% 16% On-Premise 33% 32% 37% 44% 44% Off-Premise 52% 65% 89% On-premise recovering 84% 67% 68% as Covid-related 63% 56% 56% restrictions ease 48% 35% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 On-
Slide 19: Brand Building Activities
Brand Building Activities 18
Slide 20: Core Brands – Pizza Hut
Hut izza —P Core Brands @ —_ 19
Slide 21: Net New Stores added in the Qtr - 34
Net New Stores added in the Qtr - 34 PURNIA ROURKELA KHARAR NOIDA HYDERABAD KOLKATA20
Slide 22: Business Performance – PH
Business Performance – PH Revenue from Operations - Quarterly Revenue from Operations - Annual 258 273 297 317 351 Stores 268 269 297 351 1,333 4,233 4,174 1,036 951 965 2,879 2,297 630 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 111% y/y growth Avg. Daily Sales per Store
Slide 23: Financial Performance – PH
Financial Performance – PH Gross Profit - Quarterly Gross Profit - Annual 71.6% 74.0% 76.2% 75.9% 75.5% GM % 74.0% 74.9% 74.2% 75.7% 3,131 3,126 1,007 789 704 732 2,135 1,739 451 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 123% y/y growth Brand Contribution - Quarterly Br
Slide 24: Channel Sales Mix - PH
Channel Sales Mix - PH PH Sales Mix - Quarterly PH Sales Mix - Annual 31% 37% On-Premise 54% 52% 61% 57% 62% 70% 80% Off-Premise 69% 63% 46% 48% On-premise recovering 39% 43% 38% as Covid-related 30% 20% restrictions ease Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 On-Pre
Slide 25: New Initiatives
L New Initiatives d ait WALK IN| 1800 202 2022 | PIZZAHUT.CO.IN | DOWNLOAD APP ¢ | > ‘ ase Ne pda eer eh re ter porr Sare
Slide 26: Core Brands – Costa Coffee
@ Core Brands — Costa Coffee 25
Slide 27: Business Performance – Costa
Business Performance – Costa Revenue from Operations - Quarterly Revenue from Operations - Annual 55 45 44 44 45 Stores 67 63 44 45 94 902 85 820 76 40 37 214 131 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 139% y/y growth Avg. Daily Sales per Store (ADS) - Quarterly ADS
Slide 28: Financial Performance – Costa
Financial Performance – Costa Gross Profit - Quarterly Gross Profit - Annual 76.2% 76.9% 79.5% 79.6% 79.8% GM % 76.9% 77.3% 78.5% 79.8% 75 68 694 634 58 30 29 168 104 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 FY 2019 FY 2020 FY 2021 H1 FY22 150% y/y growth Brand Contribution - Quarterly Brand Contribu
Slide 29: Summary Financials
Summary Financials
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Million) Q2 FY22 Q2 FY21 YoY (%) H1 FY22 H1 FY21 YoY (%) Revenue from Operations 5,161 2,299 124% 8,688 3,226 169% Other Income 52 260 98 731 Total Income 5,213 2,560 8,787 3,958 Raw Material Cost 1,497 741 2,513 1,019 Gross Profit 3,664 1,559 6,
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Million) 30-Sep-21 31-Mar-21 Particulars (Rs. Million) 30-Sep-21 31-Mar-21 Equity Share Capital 1,203 1,154 (a) Property, plant and equipment 5,044 4,307 Other equity 4,106 (16) (b) Capital work-in-progress 172 143 Non-controlling interests (49) (419) (c)
Slide 32: Sustainability & Social Initiatives
Sustainability & Social Initiatives
Slide 33: Social & Sustainability Initiatives
Social & Sustainability Initiatives Launched another all-women KFC outlet in Gangtok. Total 3 stores pan-India. 32
Slide 34: Company Background
Company Background
Slide 35: Devyani International – Brief Snapshot
Devyani International – Brief Snapshot Multi-dimensional comprehensive QSR player Among the largest operators of chain QSRs in India, on a non-exclusive basis Portfolio of highly recognized global brands catering to a range of customer preferences Presence across key consumption markets with
Slide 36: Key Strengths and Strategies
Key Strengths and Strategies Portfolio of well recognized global brands 1 across spectrum and key consumption markets Strategically expand store network of Core Brands Business Multi-dimensional comprehensive QSR 2 Continue to improve unit-level player performance Cross brand synergies leading to Op
Slide 37: Well Recognized Brands Across Spectrum and Key Consumption Markets
Well Recognized Brands Across Spectrum and Key Consumption Markets Core Brands (3 International Chain QSR Brands) Others (Own / 3rd Party) International India India (Nepal & Nigeria) & Other Nepal & Nepal Brands Nigeria Type QSR QSR Coffee QSR QSR # of stores 309 351 45 42 54 (as at Sep. 30, 2021) %
Slide 38: Distinguished Board and Experienced Senior Management Team
Distinguished Board and Experienced Senior Management Team Board of Directors Senior Management Team Ravi Jaipuria Virag Joshi Non-executive Ravi Gupta Whole-time Independent Director Director Director, President & CEO Varun Jaipuria Non-executive Rashmi Dhariwal Independent Director Manish Dawar Di
Slide 39: Cross Brand Synergies leading to Operational leverage
Cross Brand Synergies leading to Operational leverage Economies of scale # Multiple brands in Real Estate / Logistics Centralized warehousing; specific locations Anchor tenant Common vehicle for helps in negotiation of delivery of raw materials competitive lease 04 01 across brands rentals 03 02 Ove
Slide 40: Focus to Improve Unit Level Profitability
Focus to Improve Unit Level Profitability Revenue Expansion Cost Efficiency Store expansion – both Optimisation of supply chain organically and inorganically with focus on and benefits of Delivery – Investment in cost, quality and quantity for technology; Delivery-focused sourcing stores; Enga
Slide 41: Focus on Safety and Hygiene
Focus on Safety and Hygiene 41
Slide 42: About Us
About Us Devyani International Limited (DIL) is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (QSR) in India, on a non-exclusive basis, and operate 803 stores across more than 175 cities in India, Nigeria and Nepal, as of Septemb
Slide 43: Thank You!
DEVYANI INTERNATIONAL LIMITED Thank You!
Devyani International — Q2 FY2022 Earnings Presentation on 6ix