Sphera Franchise Group Sa · BVB:SFG
Sphera Franchise Group Sa — Q1 2018 Earnings Presentation
24 slides from Sphera Franchise Group Sa's earnings presentation, May 2018
Slide 1: Sphera Franchise Group Interim results: Jan-Mar 2018
Sphera Franchise Group Interim results: Jan-Mar 2018 1
Slide 2: Disclaimer
Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by Sphera Franchise Group SA ("Sphera"), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy shares in Sphera. Neither
Slide 3: Sphera – Q1-2018 key events
Sphera – Q1-2018 key events ▪ Strong sales & operational performance ▪ All-store sales up 22.5% with same-store sales growth of 9.7% ▪ continued strong growth from KFC, increasing contributions from KFC Italy and Taco Bell ▪ Total store openings: 3 (3x KFC, all being part of 2017 development plan) ▪
Slide 4: Sales performance by brands
(Np) Sales performance by brands
Slide 5: Brand performance: KFC Romania
Brand performance: KFC Romania Sales growth analysis 30% ▪ All-store sales growth of 19.6% Y/Y supported 26.4% mainly by same-store performance (11.6pp 25% contribution); 20.6% 18.8% 19.6% ▪ The 8 net openings contributed 7.8pp to the Y/Y 20% 17.7% 18.0% All-store growth, with all but one in cities
Slide 6: Brand performance: Pizza Hut
Brand performance: Pizza Hut Sales growth analysis 30% 28.0% ▪ All-store sales growth of 9.8% Y/Y, with a relatively uniform performance across quarters, of which 25% 8.2pp was the contribution of the net 6 stores opened starting Jan-2016; 20% 16.8% 16.6% 15.5% 14.9% 14.1% All-store 15% performance
Slide 7: Development
(Np) Development
Slide 8: Development: Restaurant openings in Q1-2018
Development Restaurant openings in Q1-2018 Total stores BoY Openings Plan Total stores EoP New store locations 72 3* 13 75 ▪ Romania: Bucharest (1x DT), Botosani (1x DT) ▪ Italy: 1x FC 22 0 2 22 17 0 5 17 2 0 3 2 113 3 23 116 * All three restaurants opened in Q1-2018 were part of 2017 development pl
Slide 9: KFC Bucharest Sun Plaza (DT)
KFC Bucharest Sun Plaza (DT) 9
Slide 10: KFC Botosani (DT)
KFC Botosani (DT) 10
Slide 11: KFC Italy - Villesse
KFC Italy - Villesse 11
Slide 12: Brand news
(Np) Brandnews
Slide 13: Brand news: Q1-2018 highlights (KFC)
Brand news Q1-2018 highlights ▪ KFC focused on communicating value for Q1, successfully re-launching Smart Menu (full meal for 12.9 RON) and Ceva (Something) (value bundle for 5 RON) and maintaining strong same-store sales growth; ▪ Continuous activities to build KFC as a digital brand by making the
Slide 14: Brand news: Q1-2018 highlights (Pizza Hut, Taco Bell)
Brand news Q1-2018 highlights ▪ Pizza Hut started the year by communicating abundant value through its Pizza Festival all-you-can- eat signature campaign; ▪ The new menu designed by a well-know chef was introduced in selected stores with the aim of covering all stores by end of Q2; ▪ Pizza Hut Deliv
Slide 15: Marketing Q1-2018 campaigns
Marketing Q1-2018 campaigns 15
Slide 16: Financials
Financials
Slide 17: Pro forma financials
Pro forma financials Note: Q1-2018 pro forma results are identical to consolidated results Q1-2017 pro forma results include ARS performance for the full period Q1-2017 consolidated results do not include ARS performance
Slide 18: Financial performance: Statement of comprehensive income
Financial performance: Q1-2018 (Consolidated) vs Q1-2017 (Pro-forma) Statement of comprehensive income ▪ Pro forma sales up 22.5% Y/Y on strong performance from KFC Romania/Moldova and Pizza Hut and increasing contributions from t he new businesses (KFC Italy and Taco Bell); ▪ Restaurant operating p
Slide 19: Breakdown of results by Group companies
Financial performance: Q1-2018 (Consolidated) vs Q1-2017 (Pro-forma) Breakdown of results by Group companies Data in RON'000 USFN (RO) ARS USFN (MD) USFN (IT) CFF SFG Cons.Adj SFG Cons. Restaurant sales 131,007 29,962 2,188 4,123 2,544 5,949 (5,541) 170,232 Restaurant expenses 108,839 27,014 1,914 3
Slide 20: Restaurant operating expenses and margin
Financial performance: Q1-2018 (Consolidated) vs Q1-2017 (Pro-forma) Restaurant operating expenses and margin Y/Y% % of Sales Data in RON'000 Mar-18 Mar-17 2018/2017 Mar-18 Mar-17 Contribution to change in restaurant opex ratio Restaurant expenses 144,119 112,988 27.6% 84.7% 81.3% Food and material
Slide 21: G&A expenses
Financial performance: Q1-2018 (Consolidated) vs Q1-2017 (Pro-forma) G&A expenses Change Percentage of sales Contribution to growth in G&A expense Data in RON thousand Mar-18 Mar-17 2018/2017 Mar-18 Mar-17 General and administration 12,350 10,586 16.7% 7.3% 7.6% expenses (net), of which: Payroll and
Slide 22: Consolidated financials
(Wp) Consolidated financials
Slide 23: Sphera – Consolidated financial performance
Sphera – Consolidated financial performance Statement of comprehensive income ▪ Consolidated sales up 52.4% Y/Y on strong performance from KFC Romania (+19.6% Y/Y), while the consolidation of ARS (Pizza Hut restaurants), starting with June 2017, contributed 26.8pp in the consolidated sales growth ra
Slide 24: Sphera – Consolidated financial performance: Statement of financial position
Sphera – Consolidated financial performance Statement of financial position Data in RON'000 31-Mar-18 31-Dec-17 Data in RON'000 31-Mar-18 31-Dec-17 Assets Equity and liabilities Non-current assets 180,192 176,123 Total equity 117,114 104,544 Property, plant and equipment 108,305 105,220 Equity attri
Sphera Franchise Group — Q1 2018 Earnings Presentation on 6ix