Westlife Foodworld Limited · NSE:WESTLIFE
Westlife Foodworld — Investor Presentation (September 2023)
43 slides from Westlife Foodworld's investor presentation, Sep 7, 2023
Slide 1: Westlife Foodworld Corporate Presentation September 2023
Westlife Foodworld Hardcastle Restaurants Pvt. Ltd. Corporate Presentation September 2023
Slide 2: Meet Westlife Foodworld
Meet Westlife Foodworld ▪ McDonalds Master Franchise of India (W&S) ▪ # 1 Burger player ▪ 357 Restaurants ▪ 56 cities ▪ Largest MNC fast-food ▪ Market leader in western India QSR sector ▪ +520mn addressable chain globally population in 11 States/UTs Modern & Relevant Stores ▪ Unique business model ▪
Slide 3: Vision & Mission
Vision & Mission “ To be a modern, relevant & progressive food and food tech company delivering long-term ” prosperity and wellbeing for our customers, our people, our communities and our shareholders Success Enablers Execution Strategic Building Blocks Talent Proficiency Proficiency Proficiency Val
Slide 4: Journey & Key Milestones
Journey & Key Milestones Launched On The Corporate Joint Venture with Development 50th store Go & Contactless rebranding to McDonalds Corp License Sep'07 Delivery Westlife 1995 May'10 Foodworld Apr'20 First store in Forayed into South McDonald’s App 100th store Vision 2027 Mumbai India Launch Oct'10
Slide 5: Geographical Presence
Geographical Presence Other Franchise 11 States & UTs ~240 Large towns +520 mn population ~55% of GDP Hardcastle Restaurants Pvt. Ltd. (HRPL) Note: Map not to scale. Estimated statistics. 5
Slide 6: Industry Trends & Market Opportunity
Industry Trends & Market Opportunity 6
Slide 7: Emerging trends and tailwinds
Emerging trends and tailwinds Favorable India likely to surpass China to become most populous Nuclearization country in the world around 2025 demographics of families Only ~ 35% of the Indian population lives in cities vs Shift towards Increasing 60% for China and 80-85% for USA consumption vs frequ
Slide 8: Indian Foodservice Market Construct and Opportunity
Indian Foodservice Market Construct and Opportunity Informal Eating Out is INR ~3.9 tn market Unroganised, 69% Organised, 31% 3% IEO 10% QSR, 10% Burger, 23% 3% Western Unorganised 9% Fast Food (WFF), 49% Chicken, 66% of the market 5% 26% Organised 12% FSR + Cafes, Desserts, 90% 17% 7% QSR Indian 13
Slide 9: Business & Strategy
Business & Strategy 9
Slide 10: We cater to various market segments through our unique business model
We cater to various market segments through our unique business model Multi-Category Multi-Daypart Burgers Sides Coffee Breakfast Snacks Meals Wraps Shakes, Desserts Smoothies & Coolers Chicken Multi-Channel Multi Brand Extensions On the Go Dine in Takeaway Drive thru Delivery Highest Average Unit V
Slide 11: Best in Class integrated 'Farm to Fork' Supply Chain
Best in Class integrated ‘Farm to Fork’ Supply Chain ▪ Lettuce growers ▪ Potato growers ▪ Multiple distribution ▪ Poultry centers across regions ▪ Coating systems ▪ 20+ years of partnership 357 restaurants across 56 cities * *As of Mar’23 95%+ local sourcing Return logistics for plastic crates and o
Slide 12: Emerged stronger from COVID through focused initiatives
Emerged stronger from COVID through focused initiatives Reimagined the Brand Strengthened Pivoted to Win in Enhanced Brand Trust Omnichannel Meals Profitability ▪ Ensured health, safety and retention of employees ▪ Ensured business continuity ▪ Focused on menu ▪ Prioritized cash conversion ▪ Introdu
Slide 13: Vision 2027
Meals Strategy 01 Achieve market leadership in core day parts through brand relevance led by menu innovation and marketing Omnichannel Strategy Vision 02 Integrate various channels and touchpoints to a One McDonald’s platform in order to provide consumers a seamless experience 2027 03 Faster than ev
Slide 14: Three strategic focus areas over the medium term
Three strategic focus areas over the medium term Modern, relevant & progressive food & food tech company Meals Omni-channel Network expansion Achieve market leadership in core day parts Integrate various channels and touchpoints Penetrate unserved geographies and through brand relevance led by menu
Slide 15: Building Meals leadership through Menu relevance & Marketing
Meals Building Meals leadership through Menu relevance & Marketing Market leaders in snacking Market leaders in West Targeting leadership in South Commit to the Core Burgers Chicken Coffee Only WFF player in the segment Maximize our Marketing Family Marketing Brand Trust Graphs for representation pu
Slide 16: Robust menu strategy going forward to drive business growth
Meals Robust menu strategy going forward to drive business growth 16
Slide 17: Burgers: built burger leadership through offerings for all occasions
Meals Burgers | We have built burger leadership through burger Burgers offerings for all occasions Classic burgers Indulgent burgers Burger meals Core, iconic burgers that are A new range of premium, indulgent, Bundles and add-ons to help choose bestsellers on the menu and have and more filling burg
Slide 18: Chicken: comprehensive chicken portfolio
Meals Chicken | A comprehensive chicken portfolio would enable Chicken us to enhance product relevance in the South Three Tiers of Chicken Burgers and Wraps Boneless Bone-in McSpicy Chicken Premium Top Tier McCheese Chicken Chicken McSpicy Fried Maharaja Mac Chicken McNuggets Chicken Big Spicy Chick
Slide 19: Coffee: wide-ranging McCafé menu
Meals Coffee | Our wide-ranging McCafé menu offers a Coffee plethora of options for all taste choices COFFEE INDULGENCE TEA Hot coffee Frappes & Shakes Hot tea • Cappuccino • Mocha Frappe • English Breakfast Tea • Latte • Chocolate Frappe • Strawberry Green Tea • Americano • American Mud Pie • Moroc
Slide 20: Maximizing our Marketing through brand affinity and menu campaigns
Meals Maximizing our Marketing through brand affinity and menu intervention campaigns Meals Make Families EatQual McCheese Festival Makes Families Happy Readers Gourmet Burgers Memory Bites McSpicy Fried Chicken Chicken Big Mac 20
Slide 21: Robust Omni Channel model with unified experience
Omnichannel Robust Omni Channel model with unified experience UNIFIED EXPERIENCE ~57% Digital-led Sales +24 mn Cumulative Apps Downloads Dine In Take Away Drive Thru On The Go Delivery Front Self Ordering McDonalds McDelivery ~66% Omni (Own App + Counter Kiosk Channel App 3PO) YoY growth in Monthly
Slide 22: Aggressive and prudent Network Expansion
Network Expansion Aggressive and prudent Network Expansion Presence in 357 restaurants across 56 cities (as of March 2023) Drive-thrus McCafés EOTF* 68 Drive-thrus 311 McCafés 220 EOTF stores (+1 in Q4 FY23; ~19% of restaurants) (+23 in Q4 FY23; ~87% of restaurants) (+17 in Q4 FY23; ~72% of restaura
Slide 23: Consistent improvement in profitability with healthy cash generation
Consistent improvement in profitability with healthy cash generation Op. EBITDA margin, % 1 Product Mix 17.3% 13.1% 8.9% 9.4% 7.5% 5.9% 6.3% 5.3% 2 Cost Savings FY20 FY21 FY22 FY23 FY17 FY16 FY18 FY19 3 Operating Leverage Mid-term Priorities ▪ Managing inflation McDonald’s Corp 4 ▪ Cluster-based dis
Slide 24: The global McDonald's framework will guide our business and drive growth
The Strategic goal: Becoming a modern, relevant & progressive food and food tech company global McDonald’s framework will guide our business and • Brand Trust • Delivery • Affordability • Digital • Family • Drive-thru • Data and tech drive growth Foundation: • Run Great Restaurants • Operating effic
Slide 25: Environment & Social
Environment & Social 25
Slide 26: Our Responsibility: Protecting the environment
Our Responsibility: Protecting the environment Energy and Water management Waste management ▪ ~20% reduction in Emissions intensity (Scope ▪ +99% of discarded cooking oil recycled to 1 & Scope 2) in FY23 biodiesel ▪ ~87% of restaurants have Energy ▪ 100% Elimination of customer facing single Managem
Slide 27: Our Responsibility: Sustainable & Responsible Sourcing
Our Responsibility: Sustainable & Responsible Sourcing Sustainable Sourcing Responsible Sourcing ▪ +95% of Inputs locally sourced ▪ 100% FSSAI Regulatory Compliance ▪ +95% of Fresh produce sustainably sourced ▪ 95% products* from vendors covered under Supplier Workplace Accountability Audit ▪ 100% T
Slide 28: Our Responsibility: Safe, inclusive & empowering workplace
Our Responsibility: Safe, inclusive & empowering workplace Inclusive and Empowering Safe and Respectful ▪ 10 years in Top 100 ranked Great Place To Work® ▪ 95% score in Crew Opinion Survey* (95% (Certified) participation) ▪ Policy driven Inclusive and Equal Opportunity ▪ 92.5% score in Manager Opini
Slide 29: Our Responsibility: Nutritious food and Community impact
Our Responsibility: Nutritious food and Community impact Food Nutrition Community Connection ▪ McAloo Tikki is a balanced meal* ▪ 35,000+ lives touched through Ronald McDonald’s House Charities (RMHC) ▪ 25% more dietary fibres in McVeggie ▪ Launched innovative packaging for Specially-abled ▪ 20% red
Slide 30: Our Responsibility: Serving Communities
Our Responsibility: Serving Communities Tree Plantation EatQual Initiative Food Drive Blood Donation Garbage Collection 30
Slide 31: Governance & Financial highlights
Governance & Financial highlights 31
Slide 32: Our Responsibility: Strong Governance
Our Responsibility: Strong Governance 1 2 3 4 5 STATUTORY & ENTERPRISE RISK BOARD STAKEHOLDER COMPREHENSIVE REGULATORY MANAGEMENT INDEPENDENCE VALUE CREATION DISCLOSURES COMPLIANCE ▪ Robust internal ▪ 5 of 8 Board ▪ Long Term ▪ Strong Compliance ▪ Quarterly earnings controls members are Relationship
Slide 33: An effective board driving growth and governance
An effective board driving growth and governance Amit Jatia Smita Jatia Akshay Jatia Amisha Jain Chairperson (Non- Vice Chairperson (Non- Director (Non- Director (Independent, Independent, Executive) Independent, Non-Executive) Independent, Executive) Non-Executive) Tarun Kataria P. R. Barpande Mani
Slide 34: A team that defines our culture
A team that defines our culture Most tenured leadership across the industry, yet young & dynamic. Professionals with unparalleled ground level experience. Robust performance management processes. Bolstered capabilities in key future growth areas like Consumer Tech, Analytics, L&D etc. AKSHAY JATIA S
Slide 35: Financial Highlights
Financial Highlights Revenue (INR mn) SSSG % EBITDA (INR mn) EBITDA margin Cash PAT (INR mn) Cash PAT margin 57.0% 36.1% 17.3% 17.0% 13.1% 11.2% 4.0% 22,782 8.7% -24.4% 8.9% 9.4% 3,931 7.7% 8.2% 2,543 6.3% 15,478 15,765 14,020 2,071 1,351 0.2% 1,291 9,860 1,084 1,243 1,453 619 24 FY19 FY20 FY21 FY22
Slide 36: FY23: A record year | A new baseline to build upon
FY23: A record year | A new baseline to build upon Menu, Meals Omnichannel Right Network Cost mgmt. & Stakeholder & Branding & Digital & Economics Profitability management Sales Digital Sales New Stores Gross margin Top 100 Great ₹ 22.7 bn 57% added 69.9% Places to Work 44% YoY 35 10 years 1 2 Avg.
Slide 37: Shareholding Pattern & Group Structure
Shareholding Pattern & Group Structure Mutual Funds, 19.9% Hardcastle Westlife Foodworld Restaurants Pvt. Ltd. Ltd. 100% (Wholly Owned (Holding Co.) Subsidiary) Insurance Co's., Promoter, 56.2% 3.7% Foreign Portfolio Investors, 9.6% McDonald’s Master Franchise of Alternate India (West & South) Inves
Slide 38: Shareholder Value Creation
Shareholder Value Creation Market Capitalization ₹ 106 bn | $ 1.3 bn Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 BSE500 SENSEX Westlife Foodworld Ltd Note: Assuming USD INR = 82 . Chart as on March 31, 2023 38
Slide 39: Awards & Recognitions
Awards & Recognitions ‘weare proud toshare that we have boenfeaturedamong rai a 4 —— oe 2. % “4 Weil e westlife Foodworld cK S' ‘our campaign, Jy That's Lovin} It” 39
Slide 40: Investment Thesis
Investment Thesis Vision 2027 Farm to Fork ▪ Rs 40-45 bn Sales Unique Business Model Supply chain ▪ High Single digit SSSG ▪ 18-20% Op.EBITDA margin Strong Global ▪ 580-630 Restaurants Brand ▪ +25% Return on Equity Real Estate Digital ▪ Fortify Market Leadership Capabilities Strength 40
Slide 41: Safe harbour disclosure
Safe harbour disclosure This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. Forward-looking statements can be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,
Slide 42: McDonald's Together
Building a Bigger | Better | Bolder McDonald’s Together 42
Slide 43: Thank you
Thank you IR Contact For additional information: Chintan Jajal | Investor Relations investor.relations@mcdonaldsindia.com | 022 4913 5000 Westlife Foodworld Limited
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