Restaurant Brands International Inc. · NYSE:QSR
Restaurant Brands International — Q1 2015 Earnings Presentation
32 slides from Restaurant Brands International's earnings presentation, Apr 27, 2015
Slide 1: Earnings Conference Call First Quarter 2015
Restaurant Brands International Earnings Conference Call First Quarter 2015 April 27, 2015 Restaurant Brands International zs = Tim Hottous (3 1
Slide 2: Safe Harbor Statement
Restaurant Brands Safe Harbor Statement nnd This presentation contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future per
Slide 3: Agenda
AGENDA HIGHLIGHTS TIM HORTONS® BURGER KING® FINANCIAL RESULTS SUMMARY Q&A
Slide 4: Company at a Glance
Restaurant Brands Company at a Glance International Restaurant Brands International * 100+ years of combined brand heritage * More than 19,000 restaurants in approximately 100 countries and US territories « ~450,000 team members worldwide * 100% owned and operated by committed franchise partners * M
Slide 5: RBI Q1 2015 Highlights
Restaurant RBI Q1 2015 Highlights hirer « Global comparable sales increased at TH and BK by 5.8% and 4.6%, respectively ¢ Net Restaurant Growth of 68—53 at TH and 15 at BK— represented YoY restaurant base growth of 5.0% on a trailing twelve month basis * System-wide sales increased at TH and BK by 8
Slide 6: Tim Hortons
Os \ im Hortons® ~
Slide 7: TH Q1 2015 Highlights
Restaurant TH Q1 2015 Highlights iro * Global comparable sales of 5.3% driven by continued strength in coffee and successful new product launches ¢ NRG of 53 units, representing restaurant base growth of 4.4% on a trailing twelve month basis * System-wide sales increased 8.1% to $1.5 billion for the
Slide 8: Business Strategy - TH
Restaurant Business Strategy - TH irae ee oo 3,778 restaurants in 892 restaurants in 18 ¢ 59 restaurants in 5 13 provinces and states countries territories * Operating in the US ¢ Entered first * Home market, since 1984 international market in launched in 1964 2011 Lead, Defend, Grow Expansion and G
Slide 9: Menu Innovation and Extend Brand Reach
Menu Innovation Extend Brand Reach • • • • •
Slide 10: Build Scalable and Profitable Business; Expand in Core and Priority Markets
Build Scalable and Expand in Core and Focus on Growing Profitable Business Priority Markets Unit Economics
Slide 11: Canada's Most Iconic Brand
• Canada: 3,773 Units (80%) • US: 892 Units (19%) • Middle East: 59 Units (1%) Accelerate Create Jobs Bring One of Expansion and Throughout The Canada’s Most Iconic Realize Global NRG Entire System Brands to The World Potential
Slide 12: Market Commentary
Market Commentary • Canada • • US • • Int’l
Slide 13: Burger King
Slide 14: BK Q1 2015 Highlights
Restaurant BK Q1 2015 Highlights iro * Global comparable sales of 4.6%, with particular strength in US&C ¢ NRG of 15 units, representing restaurant base growth of 5.2% ona trailing twelve month basis * System-wide sales increased 9.6% to $4.0 billion for the first quarter Comparable Sales Net Restau
Slide 15: Business Strategy - BK
Restaurant Brands Business Strategy C_ BK International US & Canada: International: Increase average unit sales with Four Accelerate NRG and Pillars continued SSS growth 15
Slide 16: Menu and Marketing
Menu and Marketing omc if Premium Premium + Value = A balanced approach to driving positive profitable sales Restaurant Brands International 16
Slide 17: Image: Modern Restaurant Reimaging
Restaurant Brands | mag e International * Achieved 40% US&C modern image target last year — Target reached one year ahead of plan and up from 11% US&C modern image in 2011 — Reimaged stores achieve an average sales uplift of 10%-14% « Will continue to pursue aggressive reimaging of store base moving
Slide 18: Q1 2015 Progress on JVs
Restaurant Q1 2015 Progress on JVs fia 18
Slide 19: Market Commentary
Market Commentary • US&C • • EMEA • • APAC • • LAC •
Slide 20: Financial Results
Restaurant Brands International
Slide 21: RBI Q1 2015 Financial Results
Restaurant RBI Q1 2015 Financial Results fiat ¢ Adjusted EBITDA grew organically by 18% driven by continued strength across both brands * Reported Adjusted Net Income of $84 million and Adjusted Diluted EPS of $0.18 Growth over Prior Year Q1 2014 PF Revenue $932 $932 11% Adjusted EBITDA $355 $332 18
Slide 22: RBI Q1 2015 Ending Cash Balance
Restaurant RBI Q1 2015 Ending Cash Balance |-_': Q1 2015 Ending Cash Bridge ($ in millions) $215 Lt $1,022 $981 a ($64) =, ($60) Beginning FOF Debt Amortization Other Ending Cash Balance Cash Balance Note: - Beginning Cash Balance includes $84.5mm that was previously classified as restricted cash an
Slide 23: RBI Capital Structure
Restaurant FR Bi Capital St ru cture itor Balan Maturity All-in Rate 2014 Credit Facility BI/B+ $6,690 2021 Libor = 1.00% 4.50% 2014 Senior Notes Caa1/B- 2,250 2022 6.00% 6.00% TH Legacy Bonds 43 Various Capital Leases & Other 243 Various Total Debt $9,226 Cash Balance (1,022) Net Debt $8,204 Net De
Slide 24: Dividend Declaration and Historical Dividends
Restaurant Brands. International * On April 27, 2015, RBI Board of Directors declared a dividend of $0.10 per common share and partnership exchangeable unit of RBI LP for the second quarter of 2015 ¢ The dividend will be payable on July 3, 2015 to shareholders and unitholders of record at the close
Slide 25: Q1 2015 Summary
Restaurant Q1 2015 Summary Aer ¢ Strong performance across both brands for the first quarter ¢ Built on comparable sales momentum driving year-on-year profit growth * Raised dividend to shareholders to $0.10 per share for the second quarter of 2015 *« Continued to be committed to our communities and
Slide 26: Q&A
Q&A
Slide 27: Appendix
APPENDIX
Slide 28: Use of Non-GAAP Financial Measures
Restaurant Use of Non-GAAP Financial Measures |. Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP, and discuss the reasons that we believe this informatio
Slide 29: RBI EBITDA and Adj. EBITDA to Net Income
Restaurant RBI EBITDA and Adj. EBITDA to Net Income |.) (in US$ millions) Three Months Ended March 31, 2015 2014 2014 PF Segment Income: TH $ 183.9 $ - $ 172.5 BK 170.7 159.7 159.7 Adjusted EBITDA 354.6 159.7 332.2 Share-based compensation and non-cash incentive compensation expense 13.9 3.5 5.8 Amo
Slide 30: RBI Net Income to Adj. Net Income and Adjusted Diluted EPS
RBI Net Income to Adj. Net Income and Restaurant Brands - - International Adjusted Diluted EPS = (in US$ millions, except per share data) Three Months Ended March 31, 2015 2014 2014 PF Adjusted net income Net income (loss) $ 50.9 $ 604 $ 91.5 Income tax expense 47.3 20.9 41.2 Income (loss) before in
Slide 31: TH & BK Organic Growth
Restaurant pI Brands 20 1 4 T H & B K Organ I Cc G rowt h International FX Actual Q1 '15 vs. Q1'14 Impact Organic Growth (in USE millions) Q1'15 Qi'14 $ % $ $ % Calculation: A B C B-C=D D/A Revenue TH $ 6824 $$ 6907 {a} $ (8.3) (1.29% $$ (84.0) 75.7 11.0% BK $2496 $ 240.9 $ 8.7 386% $ (14.5) 23.2 9.
Slide 32: Footnotes to Reconciliation Tables
Restaurant Brands Footnotes to Reconciliation Tables |.’ 1) Represents share-based compensation expense associated with employee stock options for the periods indicated; also includes the portion of annual non-cash incentive compensation that eligible employees elected to receive or are expected to
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