Devyani International Ltd. · NSE:DEVYANI
Devyani International — Investor Presentation (July 2021)
43 slides from Devyani International's investor presentation, July 2021
Slide 1: Management Presentation
Management Presentation July 2021
Slide 2: 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 3: Agenda
Agenda I Introduction to DIL II Key Strengths and Strategies III Core Brands IV ESG & CSR Initiatives V Appendix
Slide 4: Devyani International – Brief Snapshot
Devyani International – Brief Snapshot Devyani International’s promoters are Mr. Ravi Kant Jaipuria, Mr. Varun Jaipuria and RJ Corp Limited Mr. Ravi Kant Jaipuria has over three decades of experience in conceptualizing, executing, developing and expanding food, beverages and dairy business in So
Slide 5: Journey so far
Journey so far Yum India Opened first Acquired Pizza Hut issued a letter of KFC outlet in delivery outlets from intent for Nigeria and first Yum India in Western opening KFC KFC & Pizza Hut and Southern India outlets in outlets in Nepal Kolkata Dunearn acquired c.16% Acquired 9 KFC stake in the Comp
Slide 6: Distinguished Board and Experienced Senior Management Team
Distinguished Board and Experienced Senior Management Team Board of Directors Senior Management Team Ravi Jaipuria Ravi Gupta Virag Joshi Non-executive Independent Director Whole-time Director Director, President & CEO Varun Jaipuria Rashmi Dhariwal Non-executive Independent Director Director Manish
Slide 7: 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 8: 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 264 297 35(3) # of stores(1) (50 net new stores (39
Slide 9: Offering Variety… from Fried Chicken, Pizzas & Burgers to Coffee & Dosa
Offering Variety… from Fried Chicken, Pizzas & Burgers to Coffee & Dosa 9
Slide 10: Presence across Key Consumption Markets with a Cluster-based Approach
Presence across Key Consumption Markets with a Cluster- based Approach Largest franchisee of Yum Brands in India on a non-exclusive basis(1) Core Brands (India) - Cluster based spread # Stores (as of 31-Mar-2021) Number of stores across India(2) NCR(3) 148 Bengaluru 80 Other cities 46% Kolkata 45 Hy
Slide 11: Cross Brand Synergies leading to Operational leverage
Cross Brand Synergies leading to Operational leverage Economies of scale Centralized warehousing; Common vehicle for delivery of raw materials # across brands Real Estate / Logistics Anchor tenant Multiple brands in 04 01 specific locations helps in negotiation of competitive lease rentals 03 02 Ove
Slide 12: Multiple Brands at One Location
Multiple Brands at One Location 12
Slide 13: Strong Emergence Post Covid-19
Strong Emergence Post Covid-19 1 Divestment of early stage TWG tea business & rationalization of non-performing airport/stores 2 Rentals reorientation (terms renegotiation like revenue sharing instead of fix rental etc.) 3 Menu re-engineering Store format rationalization (smaller formats leading to
Slide 14: 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 15: Focus on Digital Adoption
Focus on Digital Adoption Revenue generated from delivery sales in Core Brands Among the largest QSR (India) companies in India listed % of revenue on the Zomato platform in from operations the CY19 and CY20 in Core Brands (India) 70% 51% Among the single largest QSR companies in India that is liste
Slide 16: Focus on Safety and Hygiene
Focus on Safety and Hygiene 16
Slide 17: Movement in Gross Margin and Brand Contribution Margin
Movement in Gross Margin and Brand Contribution Margin (India Business) (India Business) (India Business) FY21 Q3’21 Q4’21 FY21 Q3’21 Q4’21 FY21 Q3’21 Q4’21 FY21 Revenue from operations (INR mn) 6,443 2,211 2,540 2,879 951 1,036 214 76 85 11,348 Revenue from operations (%) 100% 100% 100% 100% 100% 1
Slide 18: Disciplined Financial Approach
Disciplined Financial Approach Total number of stores(1) Revenue from Operations(1) INR mn 15,164 692 610 13,106 * 566 11,348 FY19 FY20 FY21 FY19 FY20 FY21 Brand Contribution Margin(2,3) Gross Margin(1,2) (Pre Ind AS 116 Adjustments) Gross Brand 70.0% 69.3% 69.1% Contribution 13.7% 11.2% 13.9% Margi
Slide 19: Disciplined Financial Approach (Cont’d)
Disciplined Financial Approach (Cont’d) Company Adjusted EBITDA Company EBITDA(1) (Pre Ind AS 116 Adjustments) (1) % of 21.3% 16.8% 20.0% % of 7.3% 3.8% 7.4% revenue revenue INR mn 2,790 INR mn 961 2,555 2,269 * 842 * 576 FY19 FY20 FY21 FY19 FY20 FY21 Cash Flow from operations and Investing(1) Negat
Slide 20: Key Business Agreements – Terms
Key Business Agreements – Terms Larger format with full dine-in Larger format with full dine-in Full retail stores at high-street capacities and small-store capacities and small-store formats to Formats formats to cater to delivery/ take- cater to delivery/ take-away orders locations and malls, and
Slide 21: Core Brands – KFC
Ce \ Ons i f Ny PAV Ha Wf " N00 | My XH
Slide 22: KFC India Presence – First Store in 2005
KFC India Presence – First Store in 2005 264 stores across 97 cities in 21 states and 2 UT(1) # of 57 76 97 88 97 cities 264 264 240 24 26 92 172 38 134 35 240 214 172 134 99 FY19 FY20 FY21 Q3'21 Q4'21 Store at the beginning Net new units Stores at the close 22 1. Exception of captive markets (i.e.
Slide 23: Unique Offering of Fried Chicken
Unique Offering of Fried Chicken 23
Slide 24: Innovation & Value Proposition
Innovation & Value Proposition 24
Slide 25: KFC India – Financial Snapshot
KFC India – Financial Snapshot Revenue from Operations Gross Margin(1) Brand Contribution Margin(2) (Without Proforma Adjustments) (Pre Ind AS 116 and without Proforma Adjustments) 66% 65% 68% 67% 70% 18% 16% 18% 19% 23% (INR mn) (INR mn) (INR mn) 9,138 7,870 3,047 6,730 287 3,229 4,360 3,950 3,064
Slide 26: KFC India – Operational Snapshot
KFC India – Operational Snapshot Average Daily Sales per Store(1) Same Store Sales Growth (SSSG)(2) # of 134 172 264 240 264 20% stores (in ‘000) 117 118 5% 114 112 3% 100 FY19 FY20 FY21 Q3'21 Q4'21 -13% -34% FY19 FY20 FY21 Q3'21 Q4'21 1. Average daily sales is calculated by dividing store sales by
Slide 27: Core Brands – Pizza Hut
Core Brands – Pizza Hut 27
Slide 28: Pizza Hut India Presence – First Store in 1997
Pizza Hut India Presence – First Store in 1997 Exclusive right to open and operate delivery-focused Pizza Hut 297 stores across 100 cities in 20 states and 3 UT(1) stores in all of India (excluding Tamil Nadu) # of 83 82 100 89 100 cities 297 297 28 24 273 268 269 1 15 24 268 269 273 258 244 FY19 FY
Slide 29: Innovation and Value
Innovation and Value @ FLAT OFF DOUBLE THE 2 WOW! Like forPasta ‘ wtRODUCING eZ Comment for Rolls = TSPICED TOMATO
Slide 30: Pizza Hut India – Financial Snapshot
Pizza Hut India – Financial Snapshot Brand Contribution Margin(2) Revenue from Operations Gross Margin(1) (Pre Ind AS 116 Adjustments) 74% 75% 74% 74% 76% 15% 11% 13% 16% 15% (INR mn) (INR mn) (INR mn) 4,233 4,174 3,131 3,126 2,879 655 2,135 439 372 951 1,036 704 789 154 157 FY19 FY20 FY21 Q3'21 Q4'
Slide 31: Pizza Hut India – Operational Snapshot
Pizza Hut India – Operational Snapshot Average Daily Sales per Store(1) Same Store Sales Growth (SSSG)(2) # of 268 269 297 273 297 stores (in ‘000) 45 44 13% 42 40 35 5% FY19 FY20 FY21 Q3'21 Q4'21 -4% -11% -30% FY19 FY20 FY21 Q3'21 Q4'21 1. Average daily sales is calculated by dividing store sales b
Slide 32: Core Brands – Costa Coffee
Costa Coffee Core Brands – Costa Coffee 32
Slide 33: Costa Coffee India Presence
Costa Coffee India Presence 44 stores across 17 cities in 8 states and 1 UT(1) # of 16 18 17 17 17 cities 67 63 44 45 44 69 67 63 55 45 -2 -4 -1 -10 -19 FY19 FY20 FY21 Q3'21 Q4'21 Store at the beginning Net new units Stores at the close 33 1. Stores refers to the number of stores as on March 31, 202
Slide 34: Costa Coffee India – Financial Snapshot
Costa Coffee India – Financial Snapshot Brand Contribution Margin(2) Revenue from Operations Gross Margin(1) (Pre Ind AS 116 Adjustments) 77% 77% 79% 77% 79% 20% 21% 16% 36% 30% (INR mn) (INR mn) (INR mn) 902 820 694 634 182 174 214 168 76 85 68 33 27 26 59 FY19 FY20 FY21 Q3'21 Q4'21 FY19 FY20 FY21
Slide 35: International Business
International Business Revenue from Operations Gross Margin(1) Brand Contribution Margin(2) # of 65% 65% 65% 8% 13% 10% 33 35 37 stores (INR mn) (INR mn) (INR mn) 1,491 360 1,154 225 1,104 969 221 340 746 164 723 143 1,132 932 764 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Nigeria Nepal X% Gross M
Slide 36: ESG & CSR initiatives
DEVYANI INTERNATIONAL LIMITED ESG & CSR initiatives
Slide 37: ESG & CSR initiatives
ESG & CSR initiatives dil :
Slide 38: Appendix - QSR Industry
DEVYANI INTERNATIONAL LIMITED Appendix - QSR Industry
Slide 39: Food Services Industry is Expected to Grow Rapidly in Coming years
Food Services Industry is Expected to Grow Rapidly in Coming years 17.2 1,52,340 4,554 The foodservice industry is expected to 3,660 3,417 register robust growth 7.6 8.4 1,09,125 96,908 in coming years… with CAGR of 2015 2020 2025 2015 2020 2025 2015 2020 2025 15.5% by 2025 Transaction Value (INR tn
Slide 40: Chain Quick Service Restaurants are expected to grow faster than Independent and Unorganized Restaurants
Chain Quick Service Restaurants are expected to grow faster than Independent and Unorganized Restaurants 5.1 83,781 The QSR industry is expected to register robust growth in 60,018 coming years… 2.9 49,789 2.2 with CAGR of 2015 2020 2025 2015 2020 2025 12.4% by 2025 Transaction Value (INR tn) Transa
Slide 41: Appendix - Summary Financials
Appendix - Summary Financials
Slide 42: Structure
Structure Capital Structure(2) Promoter & Promoter Group 75.79%(1) 14.05% 4.57% Yum Dunearn Others India 5.59%(1) Devyani International Ltd 1. Mr. Varun Jaipuria, one of the Individual promoters of the Company, has sold 1.53% of the shares outstanding to Sabe Investments Consultants LLP on 19 May 20
Slide 43: Devyani International Limited
DEVYANI INTERNATIONAL LIMITED
Devyani International — Investor Presentation (July 2021) on 6ix