Slide 1: Unaudited Group Results
UNAUDITED GROUP RESULTS For the six months ended 31 December 2020 WEBINAR LIVE FROM CENTURY CITY TUESDAY 2 MARCH 2021 11H00 H1 F2021
Slide 2: Agenda
AGENDA 1 2 3 4 Financial & Trading The Way Segmental Q&A Overview Forward Review H1 F2021
Slide 3: Agenda
AGENDA 1 2 3 4 Financial & Trading The Way Segmental Q&A Overview Forward Review H1 F2021
Slide 4: Consumer Insights
Consumer Insights
Slide 5: The Period at a Glance
THE PERIOD AT A GLANCE Comparable profit Comparable Cash balances Revenue Profit before tax Headline earnings before tax headline earnings increased from June -40.2% -73.3% -76.4% -67.0% -70.1% +R12.7m* -36.6%** -77.2%** -82.4%* • Unrestricted cash balances increased from R165m in June 2020 to R178m
Slide 6: Restaurant Count: Countries
RESTAURANT COUNT: COUNTRIES International 87 87 Saudi Arabia 5 India 1 Oman 1 Nigeria 7 Ghana 1 Kenya 8 Tanzania 1 546 Zambia 19 Mauritius 17 Botswana 3 Zimbabwe 1 Namibia 11 Lesotho 1 Australia 5 Eswatini 5 South Africa 546 New Zealand 1 RESTAURANTS 633 H1 F2021
Slide 7: Restaurant Count by Brand
RESTAURANT COUNT BY BRAND Brand South Africa International Total 1% Spur * 297 34 331 15% Panarottis & Casa Bella** 92 31 123 3% John Dory’s 52 3 55 9% The Hussar Grill 20 2 22 52% RocoMamas*** 78 17 95 19% Nikos 7 - 7 Total 546 87 633 Spur * Panarottis & Casa Bella** * Spur Grill & Go: 6 John Dory’
Slide 8: COVID-19 Impact: Restaurant Turnover Performance
COVID-19 IMPACT: RESTAURANT TURNOVER PERFORMANCE 2020 Feb March April May June July Aug Sept Oct Nov 1 March Dec 2021 Jan Feb LOCKDOWN Level 5: Level 4: 1 to 31 Level 3: 1 June to 17 August - Take Away Level 2: 18 August to LEVEL 1 Level 3 adjusted: 29 Level 1: 21 September 2020 to 28 December – As
Slide 9: Group Total Turnover & Brand Performance Cycles
GROUP TOTAL TURNOVER & BRAND PERFORMANCE CYCLES Restaurant Turnover Like On Like Franchised restaurants 8 months to 12 months to 6 months to 6 months to % change against comparable prior period February 2020 June 2020 December 2020 December 2020 Spur* 6.1 (22.5) (31.0) (31.1) Panarottis & Casa Bella
Slide 10: Restaurants: South Africa
RESTAURANTS: SOUTH AFRICA R’000 H1 F2021 H1 F2020 Brand (# of outlets (# of outlets % change Dec 2020) Dec 2019) Spur* -R1.1B 1 714 488 (297) 2 484 675 (303) (31.0) TURNOVER Panarotti’s & Casa Bella** = 264 170 (92) 416 614 (94) (36.6) -R52m John Dory’s 151 337 (52) 252 566 (53) (40.1) INCOME The Hu
Slide 11: Restaurants: International
RESTAURANTS: INTERNATIONAL H1 F2021 (R’000) H1 F2020 (R’000) % % Location (# of outlets (# of outlets change change* Dec 2020) Dec 2019) § Australia trading conditions Australasia 62 521 (6) 78 096 (8) (19.9) (23.6) difficult pre-COVID-19, exacerbated by harsh Rest of Africa 175 678 (57) 231 746 (52
Slide 12: Number of Restaurants
NUMBER OF RESTAURANTS Restaurant Restaurant Count NEW Count CLOSED REVAMPS RELOCATIONS 31 December RESTAURANTS 30 June 2020 2020 Spur 290 291 4 3 7 3 Panarottis 84 87 6 3 1 2 John Dory's 52 52 2 2 3 0 The Hussar Grill 22 20 0 2 0 0 RocoMamas 69 73 5 1 0 0 Casa Bella 7 5 0 2 0 1 Nikos 9 7 0 2 0 0 Spu
Slide 13: Decline of Dinner: COVID Impact
DECLINE OF DINNER: COVID IMPACT SPECIALITY DINING RESTAURANTS ONLY DINNER DINNER – 47% LUNCH LUNCH – 33% BFAST DAY PART F20 DAY PART F21 TOTAL GROUP DINNER* – 39%* *% decline of dinner turnover , all group brands for the period: July-December 2020 vs 2019 H1 F2021
Slide 14: Decline of Group Liquor
DECLINE OF GROUP LIQUOR : TOTAL GROUP - 39% F20 F21 * % decline of liquor turnover for the period: July-December 2020 vs 2019 (GROUP ALL BRANDS) H1 F2021
Slide 15: Group Take Away Turnover: +108%
GROUP TAKE AWAY TURNOVER : +108% GROUP TAKEAWAY TURNOVER 800 000 000 700 000 000 108% 600 000 000 GROUP ALL BRANDS 500 000 000 27% TAKE AWAY 400 000 000 300 000 000 200 000 000 53% 100 000 000 TAKE AWAY 0 2019 2020 H1 F2021
Slide 16: Take Away Growth: 3rd Party
TAKE AWAY GROWTH: 3RD PARTY + 41% + 72% H1 F2021
Slide 17: Virtual Kitchen Brands (VK)
VIRTUAL KITCHEN BRANDS (VK): PROOF OF CONCEPT TILL MAY 2021 Burgers, Pizza Raw & Fish Ribs Chicken Mexican and Prepared & Wings Pasta Meals 423 PARTICIPATING VIRTUAL KITCHENS (RESTAURANTS) H1 F2021
Slide 18: VK Brands Gaining Traction
VK BRANDS GAINING TRACTION 7 Brands Proof of Concept Extended H1 F2021
Slide 19: Bento
BENTO 25% RE-ORDER RATE* * UBER H1 F2021
Slide 20: Agenda
AGENDA 1 2 3 4 Financial & Trading The Way Segmental Q&A Overview Forward Review H1 F2021
Slide 21: Income Statement
INCOME STATEMENT Unaudited Unaudited Audited Rm H1 F2021 H1 F2020 % change F2020 Revenue 314 525 (40.2) 761 Cost of sales (88) (123) (28.5) (198) Gross Profit 226 402 (43.7) 563 Other expenses - net (184) (250) (26.4) (449) Operating profit before net finance income 42 152 (72.4) 114 Net finance inc
Slide 22: Segmental SA Overview
SEGMENTAL SA OVERVIEW % of group revenue % change in revenue % change in net profit % margin H1 % margin – H1 F2021 H1 F2021 vs H1 F2020 H1 F2021 vs H1 F2020 F2021 H1 F2020 Franchise 32.6 (42.3) (49.9) 67.4 77.6 Spur 22.3 (43.6) (48.9) 76.1 84.0 Panarottis & Casa Bella 3.3 (46.7) (66.5) 37.2 59.3 Jo
Slide 23: Segmental SA: Franchise Spur
SEGMENTAL SA: FRANCHISE Spur R’m R’m % change (43.6)* % change (48.9)* Store and Revenue Profit before tax 2 500 2 485 140 120 84.0% Store Turnover sales Revenue Net profit margin % 124 100 104 2 000 120 Profit before taxation 1 714 1 500 100 80 76.1% 1 067 60 1 000 80 64.6% 53 70 40 500 60 30 47 20
Slide 24: Segmental SA: Franchise Spur
SEGMENTAL SA: FRANCHISE Spur Menu price increase NEW RESTAURANTS: 4 § 3.2% Nov’ 19 § 4.6% Nov’ 20 CLOSED: 3 Comments: § Spur continues to attract families for dining experiences and celebrations. § Customers loyalty evident on weekends waiting in social distancing lines for a table (50 pax capacity
Slide 25: Coyote Creek: Castle Gate Big Bear White River Crossing
Coyote Creek: Castle Gate Big Bear White River Crossing
Slide 26: Segmental SA: Franchise Panarottis, Casa Bella
SEGMENTAL SA: FRANCHISE Panarottis, Casa Bella R’m R’m % change (46.7)* % change (66.5)* Store Turnover and Revenue Profit before tax 500 80 14 Store sales Revenue 59.3% Net profit margin % 450 70 12 417 11 Profit before taxation 400 60 10 350 50 300 40 8 250 264 30 6 37.2% 200 19 20 186 4 22.1% 4 1
Slide 27: Segmental SA: Franchise Panarotti's & Casa Bella
SEGMENTAL SA: FRANCHISE Panarotti’s & Casa Bella Menu price Menu price increase increase § (0,4%) Nov’19 § (0,7%) Dec’19 § 5.3% Dec’ 20 § 3.7% Dec’ 20 Comments: Comments: § Panarottis Express (2% total) § 2 Restaurants closed (Woodlands & § Panarottis (98% total) 90 The Pearls), 1 relocation (Sanctu
Slide 28: Segmental SA: Franchise John Dory's
SEGMENTAL SA: FRANCHISE John Dory's R’m R’m Store Turnover and Revenue % change (49.8)* % change (88.5)* Profit before tax 300 60 7 Store Turnover sales Revenue 49.5% Net profit margin % 6 250 253 50 Profit before taxation 5,4 5 200 40 4 150 151 30 3 100 106 20 2 11.4% 50 11 10 1 (7.9%) 0,6 4 5 0 0
Slide 29: Segmental SA: Franchise John Dory's
SEGMENTAL SA: FRANCHISE John Dory’s Menu price increase § (2,1%) Aug’19 NEW RESTAURANTS: 2 § 3.8% Dec’ 20 CLOSED: 2 Comments: 52 Restaurants SA 3 International Restaurant turnover declined by 40% Sushi experience is becoming a focus. Sushi now 24% of total H1 F2021
Slide 30: Segmental SA: Franchise The Hussar Grill
SEGMENTAL SA: FRANCHISE The Hussar Grill R’m R’m Store Turnover and Revenue % change (41.5)* % change (66.7)* Profit before tax 120 6 4 112 Store sales Turnover Revenue 83.0% Net profit margin % 100 5 Profit before taxation 3 3,1 80 4 4 70 60 3 56 2 40 2 2 2 47.2% 54.2% 20 1 1 1,0 0,9 0 0 H1 F20 H2
Slide 31: Segmental SA: Franchise The Hussar Grill
SEGMENTAL SA: FRANCHISE The Hussar Grill Menu price increase § 3.5% Sep’19 § 3.5% Nov’ 20 Comments: § 20 Restaurants in South Africa (4 company owned) § 2 International: Zambia & Saudi Arabia § Decline of 67% (direct impact on restricted trading hours, and alcohol ban) § Casino locations x 3 Norther
Slide 32: THG Stellenbosch Tapas Bar Extension
THG Stellenbosch TAPAS BAR Extension Opening H1March F2021 2021
Slide 33: Segmental SA: Franchise RocoMamas
SEGMENTAL SA: FRANCHISE RocoMamas R’m R’m % change (23.8)* % change (25.8)* Store Turnover and Revenue Profit before tax 400 80 16 Store Turnover StoreTurnover sales Revenue 74.5% Net profit margin % 350 361 70 14 300 305 60 13 Profit before taxation 12 250 50 200 40 10 10 72.6% 196 150 30 8 52.8% 1
Slide 34: Segmental SA: Franchise RocoMamas
SEGMENTAL SA: FRANCHISE RocoMamas Menu price increase § 3.2% July’19 § 3.3% Dec’ 20 Comments: • Consumer & Franchisee investment interest continues to endorse the strong brand equity of RocoMamas. • New Restaurants: SA: 5 and International: 3 • Closed: 1 in SA • 89 RocoMamas (16 International) • 6 R
Slide 35: Free to Roam
FREE TO ROAM NO ANTIBIOTICS ALL NATURAL PASTURE REARED GRASS FED = NO ANTIBIOTICS Se NO GROWTH HORMONES MADE WITH STONE GROUND FLOUR LOW GLUTEN SOURCED FROM SMALL-SCALE FARMERS NO ANTIBIOTICS
Slide 36: RocoMamas Drive Thru Queenswood Pretoria
RocoMamas Drive Thru Queenswood Pretoria Opening August 2021
Slide 37: Segmental SA: Franchise Nikos
SEGMENTAL SA: FRANCHISE Nikos R’m R’m % change (48.7)* % change 73.9* Store Turnover and Revenue Profit before tax 40 7 8 36 Store Storesales Turnover Revenue Net profit margin % 35 6 6 30 Profit before taxation 5 4 25 12.7% 42.9% 23 4 2 20 17 3 0 0,2 0,3 15 2 2 -2 10 - 1 1 1 -4 5 -6 - 5,7 - 0 H1 F2
Slide 38: Segmental SA: Franchise Nikos
SEGMENTAL SA: FRANCHISE Nikos Menu price increase § 6.9% (Nov ’20) Comments: § Nikos Restaurants, as with other speciality restaurants directly impacted on Covid restrictions specifically dinner trade, alcohol ban and restricted capacity. § Nikos closed 2 restaurants: § One at The Grove in Pretoria
Slide 39: H1 F2021
H1 F2021
Slide 40: Segmental SA: Franchise Retail Stores
SEGMENTAL SA: FRANCHISE Retail Stores R’m R’m % change (42.7)* % change (204.7)* Revenue Profit before tax 40 6 Revenue 35 34 4 5.2% Net profit margin % 30 2 1,8 Profit before taxation 25 0 (9.5%) 20 19 20 15 -2 -1,9 10 (28.6%) -4 5 -6 -5,5 - H1 F20 H2 F20 H1 F21 -8 No of stores H1 F21 H1F20 H1 F21
Slide 41: Segmental International: Overview
SEGMENTAL INTERNATIONAL: OVERVIEW REVENUE NET PROFIT / (LOSS) % R’000 % R’000 % of group H1 H1 H1 H1 margin margin revenue change change – H1 F21 F2021 F2020 F2021 F2020 H1 F21 H1 F20 Australasia 0.3 944 1 199 (21.3) (569) (2 325) 75.5 (60.3) (193.9) Rest of Africa & M.East 3.9 12 234 16 292 (24.9)
Slide 42: Segmental: Manufacturing & Distribution
SEGMENTAL: MANUFACTURING & DISTRIBUTION Revenue H1 H2 H1 Net profit H1 H2 H1 % change % change R’000 F2021 F2020 F2020 before tax F2021 F2020 F2020 Manufacturing 5 280 (1 546) 9 568 Manufacturing 35 899 18 716 49 702 (27.8) - R’000 (44.8) 14.7 (8.3) 19.3 -% Retail 40 388 35 013 34 433 17.3 Retail 2
Slide 43: Segmental SA: Manufacturing & Distribution Retail Range
SEGMENTAL: SA: MANUFACTURING & DISTRIBTUION Retail Range PRODUCT RANGE: § 22 PRODUCTS § 25 SKU’S 17,3% SALAD % VOLUME BY MAJOR RETAILER DRESSINGS 30% 27% BASTINGS & 25% 23% 21% 21% MARINADES 20% MEAT 15% SAUCES 10% 7% POUR ON 5% SAUCES 0% SHOPRITE SPAR PICK N PAY MAKRO OTHER SPICES CHECKERS H1 F2021
Slide 44: Segmental SA: Other & Shared Services
SEGMENTAL SA: OTHER & SHARED SERVICES OTHER * SHARED SERVICES % H1 H1 R’000 H1 F2021 H1 F2020 R’000 % change change F2021 F2020 Revenue 1 172 33 Revenue 12 786 41 563 (69.2) Marketing fund admin fee income 5 532 11 910 (53.6) GPI finance income - 2 935 - Operating (3 015) 1 353 (322.8) (loss)/profit
Slide 45: Segmental SA: Shared Services
SEGMENTAL SA: SHARED SERVICES Comparable overheads R’000 H1 F2021 H1 F2020 % change Shared overheads (70 132) (52 432) (33.8) Impairment of GPI funding - (10 812) Employee benefits obligation- net present value 8 502 - Spur Foundation 168 83 Nikos contingent consideration FV adjustment 280 114 Other
Slide 46: Marketing Fund: South Africa
MARKETING FUND: SOUTH AFRICA R’000 H1 F2021 H1 F2020 % change § Marketing fees reduced across all brands Revenue 65 936 132 658 (50.3) § Significant reduction in marketing spend to aid group-wide cash flow concerns Underspend 7 677 3 234 137.4 § Cumulative deficit and working capital funded by group
Slide 47: Group Comparable Profit Analysis
GROUP COMPARABLE PROFIT ANALYSIS R’000 H1 F2021 H1 F2020 % change Profit before tax 43 142 161 776 (73.3) Exclude: Marketing Funds (7 010) (3 041) 36 132 158 735 (77.2) IFRS9 Expected credit loss reversals (1 442) (10 247) Refurbishment costs - 1 939 Employee benefit obligations – net present value
Slide 48: Balance Sheet
BALANCE SHEET Unaudited Unaudited Audited R'm H1 F2021 H1 F2020 F2020 Non-current assets Property, plant and equipment 98 108 102 Right of use assets 41 45 42 Intangible assets and goodwill 366 369 365 Other non-current assets 9 13 9 514 535 518 Current Assets Inventories 14 14 16 Taxation 26 30 28
Slide 49: Cash Flow
CASH FLOW Unaudited Unaudited Audited R'm H1 F2021 H1 F2020 F2020 Operating profit 59 157 144 Working capital changes (29) (24) 34 Cash generated from operations 30 133 178 Trade and other payables 9 7 (4) Trade and other receivables (40) (28) 44 Inventories 2 (3) (6) Total changes (29) (24) 34 H1 F
Slide 50: Cash Flow
CASH FLOW Unaudited Unaudited Audited R'm H1 F2021 H1 F2020 F2020 Operating profit 59 157 144 Working capital changes (29) (24) 34 Cash generated from operations 30 133 178 Net finance income 1 48 51 Taxation paid (14) (41) (53) Dividend paid (72) (75) Cash flow from operating activities 17 68 101 C
Slide 51: Agenda
AGENDA 1 2 3 4 Financial & Trading The Way Segmental Q&A Overview Forward Review H1 F2021
Slide 52: CX EX IX
CX CUSTOMER EXPERIENCE EX BRANDS LEADING FX EMPLOYEE THE FRANCHISEE EXPERIENCE EXPERIENCE EXPERIENCE IX INVESTOR EXPERIENCE TOWARDS A PURPOSE & KEY DIFFERENTIATOR H1 F2021
Slide 53: Future Customers
FUTURE CUSTOMERS H1 F2021
Slide 54: Agenda
AGENDA 1 2 3 4 Financial & Trading The Way Segmental Q&A Overview Forward Review H1 F2021
Slide 55: Contact Details
CONTACT DETAILS VAL NICHAS Chief Executive Officer Tel: 021 555 5100 valentinen@spurcorp.com CRISTINA TEIXEIRA Chief Financial Officer Tel: 021 555 5100 cristinat@spurcorp.com TIER 1 INVESTOR RELATIONS Tel: 021 702 3102 www.spurcorporation.com H1 F2021
Slide 56: Forward Looking Statement
FORWARD LOOKING STATEMENT • This presentation which sets out the interim results for Spur Corporation Limited for the six months ended 31 December 2020 contains ‘forward looking statements’, which have not been reviewed or reported on by the Group’s auditors, with respect to the Group’s financial co
Slide 57: Appendices
APPENDICES 1. International Count & Covid Restrictions 2. South African Shared Services cost analysis 3. Comparable headline earnings - analysis 4. International Shared Services H1 F2021
Slide 58: 1. International: Count & Covid Restrictions
1. INTERNATIONAL: COUNT & COVID RESTRICTIONS June 2020 84 33 31 3 2 14 1 Opened 7 1 2 - - 4 - Closed (4) (1) (2) - - (1) - DECEMBER 2020 TOTAL SPUR PANAROTTIS JOHN DORY’S THE HUSSAR GRILL ROCOMAMAS GRILL & GO COVID TRADING RESTRICTIONS FEB 2020 Zambia 19 4 12 1 1 1 - 50% Capacity - trade till 8pm Ma
Slide 59: 2. South Africa Shared Services – Cost Analysis
2. SOUTH AFRICA SHARED SERVICES – Cost analysis R’m H1 F2021 H1 F2020 Information Technology 12.2 13.4 Human Resources 3.7 3.2 Executives 11.4 12.5 Procurement 3.0 2.9 Finance and legal (employment costs) 8.0 8.5 Development 2.0 2.4 Long term incentives 0.1 2.9 Spur Corporation (non-exec fees & list
Slide 60: 3. Comparable Headline Earnings - Analysis
3. COMPARABLE HEADLINE EARNINGS - analysis R’000 H1 F2021 H1 F2020 % change Headline earnings 26 835 113 518 (76.4) Exclude: Marketing Funds (7 333) (2 478) 19 502 111 040 (82.4) IFRS9 Expected credit loss reversals (1 193) (10 283) Refurbishment costs - 1 676 Employee benefit obligations 6 121 - Ad
Slide 61: 4. International Shared Services
4. INTERNATIONAL SHARED SERVICES R’000 HY 2021 HY 2020 % change Operating loss (2 917) (3 061) 4.7 § Costs are being tightly managed; benefitted from Other IFRS 9 ECL (movement) (78) 2 Dutch government COVID relief of R0.7m Foreign exchange loss 178 (130) Adjusted operating loss (2 817) (3 189) 11.7