Slide 1: Annual results 2006
Annual results 2006 September 2006
Slide 2: Presentation overview
Presentation overview • Highlights of the year • Brand performance & operations • Financial performance • Outlook for 2007 • Questions
Slide 3: Brand performance & operations
Brand performance & operations Pierre van Tonder
Slide 4: Highlights of the year
Highlights of the year • Opened 34 new restaurants (Spur: 15, Panarottis: 9, John Dory’s: 10) • Restaurant base passes 300 mark to reach a total of 321 • Restaurant turnover exceeds R2 billion for first time • Entrenched position in family sit-down restaurant market • Solid financial performance
Slide 5: Spur Steak Ranches
Spur Steak Ranches • Turnover growth – 17.7% - all restaurants – 10.7% - same restaurants – measuring tool to judge increase in market share – Menu price increase of only 3.2%
Slide 6: Spur Steak Ranches continued
Spur Steak Ranches continued • Number of restaurants grown by 15 – 13 in SA & 2 International • Relocated 8 restaurants – All showing turnover growth in excess of 25% • 15 restaurants revamped – 182 since revamp programme started in 1999 – Add an average of 12% - 13% to existing business • Total res
Slide 7: Spur Steak Ranches continued
Spur Steak Ranches continued • Expanding range of retail sauces – extension of the brand • Continuous innovation in kids’ entertainment • Secret Tribe Kids Club grown by 11% – Over 715 000 active members • New menus introduced on 1 September 2006 • New product development • Customer care centre expa
Slide 8: Spur Steak Ranches continued
Spur Steak Ranches continued • 16 new restaurants planned for 2007 • Further 24 restaurants to be revamped • 7 relocations planned for 2007
Slide 9: Panarottis Pizza Pasta
Panarottis Pizza Pasta • Turnover growth – 21.3% - all restaurants – 14% - same restaurants – Menu price increase of only 3.9%
Slide 10: Panarottis Pizza Pasta continued
Panarottis Pizza Pasta continued • Number of restaurants grown by 9 – 8 in SA & 1 International • Relocated 1 restaurant • Total restaurants now 65 • Located in high profile centres only • Brand development / new décor / new menu • Expect to open 5 new restaurants in 2007
Slide 11: John Dory's Fish & Grill
John Dory’s Fish & Grill • Number of restaurants grown by 10 – 4 in Western Cape; 4 in Gauteng • Expanding national footprint • Total restaurants now 17 • New menu • Communication between franchisor & franchisee • 5 new restaurants planned for 2007
Slide 12: International
International • Number of restaurants grown by 3 – Campbelltown, Australia (Spur) – China (Spur) – Campbelltown, Australia (Panarottis) • Total restaurants now 32 – 24 Spur • 14 Africa (incl. Mauritius) • 10 International – 8 Panarottis • 4 Africa (incl. Mauritius) • 4 International
Slide 13: International continued
International continued • United Kingdom – Investment proposal to accelerate growth • Australia – Expand restaurant base to reach critical mass in New South Wales – Proposals for joint venture/investment – 3 new restaurants scheduled • China - Trading proving challenging • Africa – 3 new restaurants
Slide 14: Operations
Operations • Launched in-house radio station – Taste FM – Daily broadcast to over 10 000 staff – Quality music experience for customers – Training, product awareness & general information • Investment in manufacturing facilities beneficial – Improvement of existing products – Quality – General food
Slide 15: Distribution
Distribution • Completed outsourcing to Vector Logistics in August 2005 • Consistency of quality of all products in restaurants & cold chain maintenance • Increase basket size of goods from Vector • Enhanced profitability for Group & franchisee alike • Enhanced efficiency through reduced stock level
Slide 16: Financial performance
Financial performance Ronel van Dijk
Slide 17: Key financial indicators
Key financial indicators 2006 2005 % change Headline earnings (R’000) 57 971 50 223 15.4 Headline EPS (cents) 65.76 55.32 18.9 Diluted headline EPS (cents) 65.10 55.32 17.7 Distribution per share (cents) 47 40 17.5 Distribution cover (times) 1.4 1.4 -
Slide 18: Impact of change to IFRS
Impact of change to IFRS Accum (loss)/ R’000 Reserves profit & min int Balance at 1 July 2004 – as previously stated - (44 688) IFRS adjustments - 196 614 Trademark - 263 391 Property, plant & equipment - 825 Deferred taxation - (67 602) Restated balance at 30 June 2004 - 151 926 Attributable earnin
Slide 19: Turnover
Turnover R’000 2006 2005 % change Wholesale & distribution* 73 852 110 165 (33.0) Franchise – Spur 86 548 73 494 17.8 Franchise – Panarottis 8 655 6 836 26.6 Franchise – John Dory’s 3 922 1 628 140.9 Franchise – International 6 681 5 326 25.4 Franchise – other 177 488 (63.7) Corporate services 2 857
Slide 20: Turnover – geographic split
Turnover – geographic split R’000 % of total 2006 % of total 2005 % change South Africa 96.3 176 012 97.3 195 306 (9.9) Wholesale 40.4 73 852 54.9 110 165 Franchise 54.4 99 302 41.1 82 446 Other 1.5 2 858 1.3 2 695 Africa & Mauritius 1.6 2 844 1.3 2 550 11.5 UK & Australia 2.1 3 836 1.4 2 776 38.2 T
Slide 21: Operating profit – operating income
Operating profit – operating income R’000 % of total 2006 2005 % change Wholesale & distribution 26% 27 432 23 034 19.1 Franchise – Spur 69% 72 326 61 470 17.7 Franchise – Panarottis 5% 5 749 4 533 26.8 Franchise – John Dory’s - (232) 296 (178.4) Operating margin 42.4% 32.9% 28.9
Slide 22: Normalised/comparable operating profit
Normalised/comparable operating profit R’000 2006 2005 % change Operating profit 77 441 66 100 17.2 Release of tax provision - (1 267) Release of international loan (1 779) - provision Foreign exchange loss/(gain) 1 119 (980) IFRS 2 charge 2 118 1 059 Comparable operating profit 78 899 64 912 21.5
Slide 23: Balance sheet – assets
Balance sheet – assets R’000 2006 2005 Property, plant & equipment 37 612 27 100 Intangibles 271 865 271 865 Investments & loans 26 049 18 618 Deferred tax 11 323 13 053 Inventory 2 232 5 024 Trade & other receivables 41 942 28 080 Cash 45 689 41 637 Taxation 2 844 2 587 Total assets 439 556 407 964
Slide 24: Balance sheet – equity & liabilities
Balance sheet – equity & liabilities R’000 2006 2005 Capital & reserves 362 640 336 591 Deferred tax 37 939 32 570 Trade & other payables 18 220 19 565 Loans payable 9 023 5 036 Taxation 6 561 12 055 Bank overdraft 4 801 1 934 Shareholders for distribution 372 213 Total equity & liabilities 439 556
Slide 25: Cash utilisation
Cash utilisation R’000 2006 Cash from operations 82 175 Interest received 4 007 86 182 Distributions paid (36 867) Taxation paid (22 795) Working capital changes (4 285) Investment in buildings (14 537) Investment in associates (2 783) Information technology (1 626) Other asset purchases (1 920) Net
Slide 26: Outlook for 2007
Outlook for 2007 Pierre van Tonder
Slide 27: Outlook for 2007
Outlook for 2007 • Rising interest rates to impact consumer spending • Continued restaurant growth in SA • Selective international restaurant openings • Black empowerment remains a priority • Sustained revenue & earnings growth for 2007 through maintenance of improved margins • IP & franchisee suppo
Slide 28: Questions? Thank you
Questions? Thank you