Restaurant Brands International Inc. · NYSE:QSR
Restaurant Brands International — Q1 2016 Earnings Presentation
30 slides from Restaurant Brands International's earnings presentation, Apr 28, 2016
Slide 1: Earnings Conference Call First Quarter 2016
Restaurant Brands International Earnings Conference Call First Quarter 2016 April 28, 2016 Restaurant Brands International zs Tim Notlous (3
Slide 2: Safe Harbor Statement
Restaurant Brands Safe Harbor Statement hero This presentation contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forwarctlooking statem
Slide 3: Agenda
AGENDA HIGHLIGHTS TIM HORTONS® BURGER KING® FINANCIAL RESULTS SUMMARY Q&A APPENDIX
Slide 4: Two iconic brands
Restaurant Two iconic brands Restaurant ¢ $23+ billion annual system-wide sales Brands. International * 19,000+ restaurants worldwide * ~100 countries and US territories * ~100% franchised Note 3 - System-wide sales are primarily driven by our franchise restaurants as ~ 100% of our current system-wi
Slide 5: Q1 2016 Highlights
Restaurant Q1 2016 Highlights hero * Global comparable sales growth of 5.6% and 4.6% at TH and BK, respectively + Restaurant count growth of 4.1% YoY with Q1 NRG of 30 « System-wide sales growth of 7.9% and 10.0% at TH and Bk, respectively « Adjusted EBITDA increased 22.9% YoY on an organic basis to
Slide 6: Tim Hortons
Yo im Hortons® —_ ALWAYS FRESH ©
Slide 7: TH Q1 2016 Highlights
Restaurant TH Q1 2016 Highlights Hrd Comparable Sales Growth 5.3% 9.6% 1Q15 1Q16 Note: Global comparable sales growth of 5.6% driven by continued strength in beverages and impactful new product launches Restaurant count growth of 3.2% YoY with Q1 NRG of 25 units System-wide sales growth of 7.9% Adju
Slide 8: Canada Highlights
Canada Highlights . | on 5 * Comparable sales growth of 5.6% driven by continued strength in beverages and grilled wraps and impactful product launches including the Pulled Pork Sandwich and the Croissant Breakfast Sandwich « NRG of 17 across standard and non- standard formats Restaurant Brands Inte
Slide 9: U.S. Highlights
Restaurant Brands U International 8.9% Highlights Comparable Sales : . Growth 5.8% 1Q15 1Q16 Net Restaurant Growth * Comparable sales growth of 5.8% driven by strength in coffee and growth in breakfast and lunch dayparts * Successful product launches including the Croissant Breakfast Sandwich * Sign
Slide 10: International Highlights
International Comparable sales growth of 6.8% driven by sales in beverages, baked goods and grilled wraps as well as new product launches Continued focus on international expansion through master franchise joint ventures Restaurant Brands International Comparable Sales Growth 6.8% 0.6% 1Q15 1Q16 Net
Slide 11: Burger King
Slide 12: BK Q1 2016 Highlights
Restaurant BK Q1 2016 Highlights Hrd * Global comparable sales increase of 4.6% driven by strength across all regions * Restaurant count growth of 4.8% YoY with Q1 NRG of 5 units * System-wide sales growth of 10.0% * Adjusted EBITDA increase of 9.7% YoY on an organic basis to $180 million Comparable
Slide 13: U.S. & Canada Highlights
Restaurant Brands U S & Cc International Highlights Comparable Sales Growth 6.9% 44% 1Q15 1Q16 Net Restaurant Growth * Comparable sales growth of 4.4% driven by new product introductions * Impactful product launches including Grilled Dogs
Slide 14: EMEA Highlights
Restaurant Brands. International Comparable Sales Growth 3.6% 0.7% 1Q15 1Q16 Net Restaurant Growth * Comparable sales growth of 3.6% driven by strength in Russia, Spain and the UK « NRG of 21 driven by growth in Russia, Spain and France 1Q15 1Q16
Slide 15: APAC Highlights
Restaurant Brands International Comparable Sales Growth 4.7% 1Q15 1Q16 Net Restaurant Growth Comparable sales growth of 4.7% driven by outperformance in China, Korea and Japan NRG of 24 driven by growth in China and India 1Q15 1Q16
Slide 16: LAC Highlights
Comparable sales growth of 10.1% driven by momentum in Brazil and Argentina NRG of (14) with closures partially offset by openings in Brazil Restaurant Brands International Comparable Sales 4.9% 1Q15 Growth 10.1% 1Q16 Net Restaurant Growth 1Q15
Slide 17: Financial Results
Financial Results 16
Slide 18: Q1 2016 Financial Results
Restaurant Q1 2016 Financial Results hereto | Adj EBITDA * Adjusted EBITDA increased 22.9% YoY on an organic basis to $408 million =a * Adjusted Net Income increased 92.4% YoY to $142 million oy * Adjusted Diluted EPS increased 95.6% YoY to $0.30 Adjusted Adjusted Net Adjusted EBITDA Income Diluted
Slide 19: Cash Generation and Allocation
Restaurant Brands Cash Generation and Allocation hoa Q1 2016 Ending Cash Bridge (US$ in millions) $190 $23 $826 $758 P| m7 _ 823 ($128) ($17) Beginning FOF Dividends Debt Amortization FX & Other Ending Cash Balance Cash Balance Note: - Debt Amortization inclu FX & Other primarily incluc ‘payment of
Slide 20: Capital Structure
(US$ in millions) Capital Structure Restaurant Brands. International can 3 a8 120. 46 Maturity Base Rate ae Term Loan Facility Ba3/B+ $5,085 2021 Libor = 1.00% 3.75% 2015 Senior Notes Ba3/B+ 1,250 2022 4.63% 4.63% 2014 Senior Notes B3/B- 2,250 2022 6.00% 6.00% Capital Leases & Other 367 Various Tota
Slide 21: Dividends
Restaurant Dividends iemational * On April 27, 2016, RBI Board of Directors declared a dividend of $0.15 per common share and partnership exchangeable unit of RBI LP for the second quarter of 2016 ¢ The dividend will be payable on July 6, 2016 to shareholders and unitholders of record at the close o
Slide 22: Summary
Summary 21
Slide 23: Q1 2016 Summary
Restaurant Q1 2016 Summary Ar * Continued same-store sales growth driven by successful execution of marketing plans across both brands * Strong development pipeline in place for long-term restaurant growth * Significant growth in profitability due to top-line momentum and cost discipline ¢ Raised di
Slide 24: 23
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Slide 25: Appendix
Appendix 24
Slide 26: Use of Non-GAAP Financial Measures
Restaurant Brands Use of Non-GAAP Financial Measures |") Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”
Slide 27: RBI EBITDA and Adj. EBITDA to Net Income
Restaurant .- RBI EBITDA and Adj. EBITDA to Net Income |.) (in US$ millions) ‘Three Months Ended March 31, 2016 2015 Segment Income: TH $ 227.8 $ 184.4 BK 180.0 170.7 Adjusted EBITDA 407.8 365.1 Share-based compensation and non-cash incentive compensation expense”! 79 13.9 Acquisition accounting imp
Slide 28: RBI Net Income to Adj. Net Income and Adjusted Diluted EPS
RBI Net Income to Adj. Net Income and Pesta Adjusted Diluted EPS International (in US$ millions, except per share data) Three Months Ended March 31, 2016 2015? Net income $ 168.3 $ 50.6 Income tax expense 47.2 50.7 Income before income taxes 215.5 101.3 Adjustments: Franchise agreement amortization
Slide 29: TH & BK Organic Growth
TH & BK Organic Growth (in US$ millions) Calculation Revenue TH BK RBI Adiusted EBITDA TH BK RBI Restaurant Brands International Impact of Fx Actual Q1'16 vs. Q1'15 Movements Organic Growth Q1'16 Q1'15 $ % $ $ % A B Cc B-C=D D/A $ oo/8 $ 6B3./ § (25.9) (38% S$ (610 §$ 30.8 5.2% 3 260.7 $ 249.6 $ 14
Slide 30: Footnotes to Reconciliation Tables
Restaurant Brands Footnotes to Reconciliation Tables |.» 1) Represents $3.2 million of non-cash interest expense for the three months ended March 31, 2016, related to losses reclassified from accumulated other comprehensive income (loss) into interest expense in connection with interest rate swaps s
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