Restaurant Brands International Inc. · NYSE:QSR
Restaurant Brands International — Q2 2015 Earnings Presentation
33 slides from Restaurant Brands International's earnings presentation, Jul 27, 2015
Slide 1: Earnings Conference Call Second Quarter 2015
Restaurant Brands International Earnings Conference Call Second Quarter 2015 July 27, 2015 Restaurant Brands International P ~~ Tim Hortons (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 * 110+ years of combined brand heritage * More than 19,000 restaurants in approximately 100 countries and US territories ¢ 450,000 team members worldwide * Approximately 100% owned and operated by committed franchise
Slide 5: RBI Q2 2015 Highlights
Restaurant RBI Q2 2015 Highlights hirer « Global comparable sales increased at TH and BK by 5.5% and 6.7%, respectively « Net Restaurant Growth (NRG) of 1938—52 at TH and 141 at BK— represented YoY restaurant base growth of 5.2% on a trailing twelve month basis ¢ System-wide sales growth increased a
Slide 6: Tim Hortons
Os \ im Hortons® ~
Slide 7: TH Q2 2015 Highlights
Restaurant TH Q2 2015 Highlights iro * Global comparable sales growth of 5.5% driven by continued strength in coffee and successful new product launches ¢« NRG of 52 units, representing restaurant base growth of 5.1% on a trailing twelve month basis « System-wide sales increased 8.4% in constant cur
Slide 8: Business Strategy - TH International
Business Strategy —= TH Internationa oe oo 3,819 restaurants in 892 restaurants in 18 * 65 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, Expansion and Growth
Slide 9: Menu Innovation / Extend Brand Reach
Menu Innovation Extend Brand Reach • • • • •
Slide 10: Build Scalable and Profitable Business
Build Scalable and Expand in Core and Focus on Growing Profitable Business Priority Markets Unit Economics
Slide 11: Canada's Most Iconic Brand
• Canada: 3,819 Units (80%) • US: 892 Units (19%) • Middle East: 65 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 Q2 2015 Highlights
Restaurant BK Q2 2015 Highlights iro * Global comparable sales growth of 6.7%, with notable strength in US&C and LAC * NRG of 141 units, representing restaurant base growth of 5.2% on a trailing twelve month basis « System-wide sales increased 11.6% in constant currency Comparable Sales Net Restaura
Slide 15: Business Strategy - BK International
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
Restaurant Menu and Marketing He INTRODUCING §) HEARTY MOZZARELLA pc SUL BACON CHEESEBURGER 5 ¢ a = Premium + Value = A balanced approach to driving positive profitable sales a = — c}) x - © = The King in action
Slide 17: Image Reimaging
Restaurant Brands | mag e International * Achieved 40% modem image target in US&C last year — Up from 11% US&C moder image in 2011 — Reimaged stores achieve an average sales uplift of 10%-14% « Will continue to pursue aggressive reimaging of store base moving forward
Slide 18: International
International BK presence in approximately 100 countries and US territories Restaurant Brands International 18
Slide 19: Market Commentary
Market Commentary • US&C • • EMEA • • APAC • • LAC •
Slide 20: Financial Results
Restaurant Brands International
Slide 21: RBI Q2 2015 Financial Results
RBI Q2 2015 Financial Results fo ¢ Adjusted EBITDA increased 19.1% organically on a year-over-year basis with continued strength at both brands * Reported Adjusted Net Income of $143 million and Adjusted Diluted EPS of $0.30 Growth over Prior Year Q2 2014 PF Revenue $1,041 $1,059 9% Adjusted EBITDA
Slide 22: RBI Q2 YTD Ending Cash Balance
Restaurant RBI Q2 YTD Ending Cash Balance itor YTD Ending Cash Bridge ($ in millions) $405 $931 ($381) Lee ($125) a — $689 ($86) ($55) Beginning FCF Debt Dividends Debt Other Ending Cash Balance Refinancing Amortization Cash Balance Note: - Beginning Cash Balance includes $84.5mm that was previously
Slide 23: RBI Capital Structure
Restaurant FR Bi Capital St ru cture itor ($ in millions) Maturity > Rate All-in Rate 2014 Term Loan Facility Ba3/B+ $5,124 2021 Libor > 1.00% 3.75% 2015 Senior Notes Ba3/B+ 1,250 2022 4.63% 4.68% 2014 Sonior Notes B3/B- 2,260 2022 6.00% 6.00% TH Legacy Bonds B 44 Various Capital Leases & Other 239
Slide 24: Capital Allocation
Restaurant Brands Capital Allocation International * On July 27", 2015, RBI Board of Directors declared a dividend of $0.12 per common share and partnership exchangeable unit of RBI LP for the third quarter of 2015 ¢ The dividend will be payable on October 2, 2015 to shareholders and unitholders of
Slide 25: Q2 2015 Summary
Restaurant Q2 2015 Summary Aer ¢ Built on first quarter momentum to deliver strong second quarter results at both brands * Favorable comparable sales growth in key markets drove year-over-year profitability ¢ Announced dividend of $0.12 per share and per unit for the third quarter of 2015 * Continue
Slide 26: Questions
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Slide 27: Appendix
Appendix Fam, ALWAYS FRESH. Td 27
Slide 28: Use of Non-GAAP Financial Measures
Restaurant Use of Non-GAAP Financial Measures |. Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP, and discuss the reasons that we believe this informatio
Slide 29: RBI EBITDA and Adj. EBITDA to Net Income (Three Months)
Restaurant . Brands RBI EBITDA and Adj. EBITDA to Net Income |: (in US$ millions) Three Months Ended June 30, 2015 2014 2014 PF Segment Income: TH $ 234.3 § - $ 215.2 BK 192.9 182.8 182.8 Adjusted EBITDA N27 ,2 182.8 38.0 Share-based compensation and non-cash incentive compensation expense 7 B 4.2 6
Slide 30: RBI EBITDA and Adj. EBITDA to Net Income (Six Months)
Restaurant . Brands RBI EBITDA and Adj. EBITDA to Net Income |: (in US$ millions) Six Months Ended June 30, 2015 2014 2014 PF Segment Income: TH $ 418.2 §$ - $ 87.7 BK 863.6 842.5 842.5 Adjusted EBITDA 731.8 342.5 720.2 Share-based compensation and non-cash incentive compensation expense 99.0 77 19.
Slide 31: RBI Net Income to Adj. Net Income and Adjusted Diluted EPS
RBI Net Income to Adj. Net Income and Peaseurant Brands Adjusted Diluted EPS International (in US$ millions, except per share data) Three Months Ended June 30, 2015 2014 2014 PF Net income (loss) $ 908 §$ 75.1 $ 141.2 Income tax expense 43.8 25.8 57.5 Income (loss) before income taxes 134.6 100.9 19
Slide 32: TH & BK Organic Growth
Restaurant TH & BK Organic Growth rd FX Actual Q2 '15 vs. Q2 '14 Impact Organic Growth (in USE millions) Q2'15 Q2'14 $ % $ $ % Calculation: A B ie; B-C=D D/A Revenue TH $ 763.2 $$ 797.5 fa} $ (84.3) (43% $ (71) $ 628 7.9% BK $278.2 $ 261.2 $ 17.0 65% $ (18.9) $ 35.9 18.7% RBI $ 1,041.4 $ 1,058.7 {a}
Slide 33: Footnotes to Reconciliation Tables
Restaurant Footnotes to Reconciliation Tables |.’ 1) Note: Represents (gain) loss on early extinguishment of debt, $4.9 million of non-cash interest expense for the three and six months ended June 30, 2015 related to losses reclassified from accumulated other comprehensive income (loss) into interes
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