Americana Restaurants International Plc · ADX:AMR
Americana Restaurants International — FY2022 Earnings Presentation
28 slides from Americana Restaurants International's earnings presentation, Feb 27, 2023
Slide 1: Earnings Presentation: Financial Results FY22
EARNINGS PRESENTATION FINANCIAL RESULTS FY22 GREAT PEOPLE, GREAT FOOD, GREAT COMPANY FEBRUARY 2023 0
Slide 2: Disclaimer
Disclaimer Cautionary statement regarding forward looking information This presentation includes statements that are, or may be deemed to be, "forward looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "e
Slide 3: Agenda & Presenters
AMARPAL Business Updates SANDHU CHIEF EXECUTIVE OFFICER Detailed Financial Review HARSH BANSAL CHIEF FINANCIAL OFFICER & CHIEF GROWTH OFFICER The Way Forward AGENDA & Appendix PRESENTERS 2
Slide 4: Business Updates
= ww BUSINESS UPDATES
Slide 5: 2022A Performance dashboard
2022A Performance dashboard Key performance updates Restaurant Portfolio Revenues $2,379m Revenues LfL Adj. EBITDA $536m 2,183 stores +15.9% growth +13.6% LfL growth +15.4% growth +220 gross new restaurants +$327m incremental gain 22.5% margin added in FY22 (vs. 2021) (0.1%) margin dilution +173 net
Slide 6: 2022 Key milestones
2022 Key milestones Signed a franchise agreement Signed an exclusive master franchise Successful launch of Krispy Kreme with Yum! Brands to develop and agreement with Peet’s Coffee, part in Jordan and continued scale-up operate Pizza Hut restaurants of JDE Peet’s, the world’s leading in Egypt pure-p
Slide 7: Innovative new restaurant rollouts (1/2)
Innovative new restaurant rollouts (1/2) Riyadh, KSA Dubai Mall, UAE Dubai Hills Mall, UAE Dubai Mall, UAE 29-Oct-22 225 sqm 26-Sep-22 426 sqm 23-Dec-22 129 sqm 28-Nov-22 66 sqm Source: Company information 6
Slide 8: Innovative new restaurant rollouts (2/2)
Innovative new restaurant rollouts (2/2) Dubai Mall, UAE Dubai Hills Mall, UAE Tabuk, KSA 05-Jan-23 112 sqm 14-Feb-23 153 sqm 21-Jan-23 160 sqm Source: Company information 7
Slide 9: Detailed Financial Review
[s) = DETAILED _ > FINANCIAL REVIEW
Slide 10: Step-up in portfolio growth since 2019
Step-up in portfolio growth since 2019 Restaurant gross and net openings (2019A to 2022A) Restaurant closures 2022A 250-300 net NSOs % of total stores1 67 (33) 110 173 2022A p.a. 2022A 220 Power brands 24 1.2% 164 116 Growth / Niche Brands 18 7.6% 61 Other 5 83.3% 2019A 2020A 2021A 2022A Medium term
Slide 11: Strong LfL revenues and new restaurants driving revenue growth
Strong LfL revenues and contribution from new restaurants driving total revenue growth offset by FX impact due to Egypt and Lebanon 2021A-2022A Revenues bridge Commentary $m 15.9% Strong LfL growth momentum largely driven by transaction growth Limited impact of 2022 NSOs on revenue given openings in
Slide 12: Double-digit revenues growth underpinned by power brands and channel mix
Double-digit revenues growth underpinned by continued power brand performance, healthy LfL growth and optimized channel mix Revenues mix Channel mix $m % 2021A 2022A 2,052 +15.9% 2,379 4% 6% 21 (1%) 10% 19% 10% 21% 145 (6%) 24 (1%) 132 (6%) 25% 24% 42% 39% Dine-in Takeaway Home Delivery(HD) Drive-th
Slide 13: Power brands continued to register double digit growth
Power brands continued to register double digit y-o-y growth Revenues by power brands 2022A growth LfL growth $m +17.7% +15.2% +11.8% +22.4% Total +15.9% +17.6% +12.3% +3.9% (5.7%) +13.6% 403 264 1,455 2,379 90 74 1,236 2,052 350 237 2021A 2022A 2021A 2022A 2021A 2022A 2021A 2022A 2021A 2022A Source
Slide 14: Resilient EBITDA with expanding margins at net profit level
Resilient EBITDA with expanding margins at net profit level 4 Wall EBITDA Total Adj. EBITDA Net Profit $m $m $m 692 536 595 +16.3% 464 +15.4% 259 204 +27.1% 29.0% 29.1% 22.6% 22.5% 9.9% 10.9% 2021A 2022A 2021A 2022A 2021A 2022A Margin (% of revenues) YoY Growth Source: Company information, FY 2022 a
Slide 15: Stable Adj. EBITDA margin despite commodity headwinds
Stable Adj. EBITDA margin despite commodity headwinds through on-going cost discipline and ZBB culture 2021A to 2022A Adj. EBITDA margin bridge % of revenues (10bps) $464m $536m 1.1% 0.6% 0.3% 0.1% 22.6% 22.5% (1.6)% (0.4)% (0.3)% 2021A Staff Cost Rental Costs Other HD Mix Cost Royalty G&A 2022A Adj
Slide 16: Attractive and stable portfolio paybacks
Attractive and stable portfolio paybacks, Pizza Hut payback increase is driven by aggressive roll out in KSA in H2 2022 Key metrics by restaurants New restaurant openings1 by brands Brand New Annualised Avg. capex / Payback restaurant revenues2 new restaurant (years) openings1 ($m) ($k) 21% 19% 21 2
Slide 17: Negative NWC and gross capex
Continued negative NWC with strategically increased inventory levels to prevent stock-outs and counteract supply chain disruptions Net Working Capital Gross Capex $m $m (7.9%) (10.6%) 4.9% 6.4% (188) (218) 104 164 220 95 107 174 (421) (465) 152 101 2021A 2022A 2021A 2022A Payables Receivables Invent
Slide 18: The Way Forward
THE WAY FORWARD 17
Slide 19: 2023 Outlook and key focus areas
2023 Outlook and key focus areas Key priorities and focus areas for 2023 Expand restaurant Egypt – Focus on Improvement in GP Continue developing Continue to scale up portfolio with approx. operations, people margin by H2 23, digital capabilities & new brands – Pizza 250-300 net new transformation,
Slide 20: Management outlook: medium-term objectives
Management outlook Medium-term objectives Restaurant Revenues Profitability Shareholder Development Value Creation ~250-300 Aiming to 2x revenues 250-300bps Target annual dividend Target solid mid-single digit improvement in Adj. EBITDA distribution post 2023E with net new restaurants / year LfL gro
Slide 21: Concluding Remarks and Q&A
CONCLUDING REMARKS AND Q&A 20
Slide 22: Appendix
APPENDIX 21
Slide 23: Portfolio evolution
Portfolio evolution No. of restaurants – by country and brands Openings & closures No. of restaurants – by brand/ category 68 Kazakhstan 99 Iraq 17 54 Lebanon 18 Qatar 99 46 Jordan 62 34 Morocco 24 Kuwait 223 Bahrain 75 18 18 UAE 518 11 8 Egypt 448 4 5 Oman 1 58 KSA 542 KFC Pizza Hut Hardee's Krispy
Slide 24: Free cash flows
Free cash flows Movement in Cash & Cash Equivalents Adj. Free Cash Flow (FCF) $m $m 49.3% Conversion 75.4% (1) 107 179 229 2 37 4 469 454 536 464 (60) (162) (100) (147) (287) (16) (9) (308) (31) (160) (172) 2021A 2022A 2021A 2022A 2021A 2022A Net Cash From Financing Activities Change in Non-current
Slide 25: EBITDA & Adj. EBITDA reconciliation
EBITDA & Adj. EBITDA reconciliation Post IFRS-16 basis $k 2021A 2022A Net profit for the year 206,408 262,955 Income tax, zakat, and contribution to Kuwait Foundation for the Advancement of 15,732 8,743 Sciences (“KFAS”) Finance cost (net) excluding finance costs on lease liabilities 197 (571) Depre
Slide 26: Evolution of Americana Digital Platform
Evolution of Americana Digital Platform 2023 NEW NEW 2022 20 Apps 9 PWA’s Aggregator Service NEW 20 Apps 4 PWA’s 2021 Talabat Loyalty 08 Apps 07 PWA’s Integration Program 17 Apps 08 Apps UAE Hunger Station Dynamic 05 Apps 02 PWA’s Integration Pricing 07 Apps 05 Apps KSA 04 Apps ARC Integration 05 Ap
Slide 27: Key definitions
Key definitions • Adjusted EBITDA: • LfL: Adjusted EBITDA post IFRS-16 is defined as Net profit for the year plus Like for like revenues growth denotes the percentage increase/decrease finance cost (net), plus income tax and zakat and contribution to Kuwait in the revenues for those AMR restaurants
Slide 28: Thank you
THANK YOU Investor.Relations@americanarestaurants.com 27
Americana Restaurants International — FY2022 Earnings Presentation on 6ix