Slide 1: Welcome - Annual Results 2010
WELCOME ANNUAL RESULTS 2010 £
Slide 2: Performance & Operations
PERFORMANCE & OPERATIONS Pierre van Tonder
Slide 3: Review of the year
Review of the year » Worldwide recovery from economic recession slow – Success of value proposition in increasing traffic – Focus on sustaining franchisee profitability » FIFA 2010 World Cup – 24.8% turnover increase year-on-year » 9.1% growth in restaurant turnover for the year – Strength of brands
Slide 4: Spur Steak Ranches
Spur Steak Ranches » 9.5% turnover growth » Food price inflation lower than previous fiscal » Menu price increase of 7.3%, driven by overhead cost increases » Opened nine restaurants in SA » Relocated six and revamped 18 restaurants » 245 restaurants in SA
Slide 5: Spur Steak Ranches continued
Spur Steak Ranches continued » Launch of smaller model for outlying areas » 14 new restaurants planned for FY2011 » Further 21 restaurants to be revamped and seven relocations planned for FY2011
Slide 6: Spur Steak Ranches continued
Spur Steak Ranches continued » Launch of direct marketing initiatives in FY2011 – Spur Family loyalty card – Spur Group gift card » Ongoing value added campaigns to drive turnover » Managed over 140 Spur events » New Spur and Panarottis websites » Operations and marketing collaboration – Monday Burg
Slide 7: Panarottis Pizza Pasta
Panarottis Pizza Pasta » 7.8% turnover growth » Menu price increase of 7.9% » Refurbished seven restaurants » 50 restaurants in SA » Value added campaigns a success » Focus on providing “authentic Italian” offering » Piloting Panarottis Express » Four new restaurants to open in FY2011
Slide 8: John Dory's Fish & Grill
John Dory’s Fish & Grill » 23.4% turnover growth » Menu price increase limited to 4.2% » Five new restaurants » Two restaurants revamped and one relocated » Total restaurants now 26 » Menu streamlined » Focus on consistency of offering » Three new restaurants to open in FY2011
Slide 9: Procurement
Procurement » Increased franchisee participation » Improved efficiencies and profitability » Consistency in supply chain » Health and safety – Supplier audits – Transparency – Confidence in supplier function » Vector Logistics – Service level agreement – Logistics policies
Slide 10: Manufacturing
Manufacturing » Improved efficiencies » Improvement in costings – Recipe reformulation – Raw material costs » Third party supply chain – Wholesale » Retail sauces – Extended range – Increased volumes » Consolidation of manufacturing facilities investigated
Slide 11: Information technology
Information technology » Significant investment over past 2 years » Business intelligence – Enhanced operational reporting – Implementing data warehouse – Information to assist operational and marketing strategy
Slide 12: International
International » Four new Spur restaurants – Aberdeen (UK), Maseru (Lesotho), Mandurah (Australia) and Dubai (UAE) – Total restaurants now 38 » Africa – Healthy trading results – First Spur Express opened Botswana in April 2010 – Investigating opportunities in Angola, Botswana, Kenya, Mozambique, Nam
Slide 13: International continued
International continued » Australia – Improved performance in tough trading environment – Sold retail outlet in Campbelltown and closed Erina Fair – Revamp of Silver Spur in Penrith – Partnership changes post year-end – Increased interest and opportunity in Perth » United Kingdom and Ireland – Fair
Slide 14: Restaurant base
Restaurant base South Inter- Franchise brand Africa national Total Spur Steak Ranches 245 32 277 Panarottis Pizza Pasta 50 6 56 John Dory’s Fish & Grill 26 - 26 Total 321 38 359
Slide 15: Financial Performance
FINANCIAL PERFORMANCE Ronel van Dijk
Slide 16: Revenue
Revenue R’000 2010 2009 % change Manufacturing & Distribution 94 008 82 097 14.5 Franchise – Spur 124 411 113 229 9.9 Franchise – Panarottis 10 751 10 137 6.1 Franchise – John Dory’s 8 847 6 788 30.3 United Kingdom 56 080 55 840 0.4 Australia 30 013 34 048 (11.9) Africa, Mauritius & Middle East 6 36
Slide 17: Operating profit
Operating profit R’000 2010 2009 % change Manufacturing & Distribution 44 714 36 141 23.7 Franchise – Spur 107 339 97 525 10.1 Franchise – Panarottis 6 560 6 592 (0.5) Franchise – John Dory’s 4 567 3 058 49.3 United Kingdom (12 396) (1 540) Australia (1 807) (12 122) Africa, Mauritius & Middle East
Slide 18: Comparable operating profit
Comparable operating profit R’000 2010 2009 % change Operating profit 118 549 97 661 21.4 IFRS 2 charge 1 682 2 118 Foreign exchange (gain)/loss (1 555) 1 285 International restaurants start up losses 597 - Impairment of restaurants 7 994 10 044 Bad debts write off (UK) 1 075 - Comparable operating
Slide 19: Financial position – assets
Financial position – assets R’000 2010 2009 Property, plant & equipment 75 184 84 429 Intangible assets & goodwill 279 609 279 970 Investments & loans 14 533 14 651 Deferred tax 11 128 16 618 Leasing rights 2 155 2 731 Inventory 6 389 6 066 Taxation receivable 3 600 3 567 Trade & other receivables 5
Slide 20: Financial position – equity & liabilities
Financial position – equity & liabilities R’000 2010 2009 Equity 403 295 434 320 Long-term loans 7 181 11 413 Operating lease liability 3 328 1 352 Deferred tax 54 060 47 472 Bank overdraft 3 596 2 853 Taxation 4 832 6 351 Trade & other payables 53 969 42 080 Shareholders for distribution 464 398 To
Slide 21: Cash utilisation
Cash utilisation R’000 2010 2009 Cash from operations 134 474 118 205 Net interest received 4 948 5 803 139 422 124 008 Distributions paid (80 708) (47 722) Taxation paid (49 528) (34 292) Working capital changes 3 394 (6 321) Investment in leasehold improvements (8 791) (9 721) Purchase of treasury
Slide 22: Outlook for 2011
OUTLOOK FOR 2011 Pierre van Tonder
Slide 23: Outlook for 2011
Outlook for 2011 » Economic recovery expected to continue at slow pace » Continued pressure on franchisee profitability from increased electricity, rates and taxes and general property costs » Value proposition remains strategically focused » Continued restaurant growth in SA – 14 Spur Steak Ranches
Slide 24: Outlook for 2011 continued
Outlook for 2011 continued » Consumer Protection Act – October 2010 – Regulations » King III » Sustainability and Green Economics » Procurement focus » College of Excellence and skills development
Slide 25: Questions?
QUESTIONS? Thank you S