Slide 1: Annual results 2007
Annual results 2007
Slide 2: Performance & operations
Performance & operations Pierre van Tonder
Slide 3: Highlights of the year
Highlights of the year » Strong growth in restaurant turnover of 19.6% » Opened 30 new restaurants (Spur: 22, Panarottis: 4, John Dory’s: 4) » Restaurant base now 333 » Entrenched position in family sit-down restaurant market » Solid financial performance, boosted by tax credit
Slide 4: Spur Steak Ranches
Spur Steak Ranches » Turnover growth – 16.6% - all restaurants – 13.0% - same restaurants » High food inflation » Customer impact minimised by menu engineering, promotions & procurement focus
Slide 5: Spur Steak Ranches continued
Spur Steak Ranches continued » Number of restaurants grown by 22 – 16 in SA & 6 International » Relocated 6 restaurants – All showing turnover growth in excess of 20% » 21 restaurants revamped – 203 since revamp programme started in 1999 – Add an average of 10 - 15% to existing business » Total rest
Slide 6: Spur Steak Ranches continued
Spur Steak Ranches continued » Broadening base in SA – Umlazi Mega City, Umlazi (in 2006) – Jabulani Mall, Soweto – Carlton Centre, Johannesburg – Trade Route Mall, Lenasia – Maponya Mall, Soweto – Future sites include: – Mamelodi – Guguletu – Kwa-Mashu » Secret Tribe Kids Club grown by 11.9% – 819
Slide 7: Spur Steak Ranches continued
Spur Steak Ranches continued » 12 new restaurants planned for 2008 » Further 20 restaurants to be revamped » 4 relocations planned for 2008 » Continued growth in existing business, value for money proposition is critical
Slide 8: Panarottis Pizza Pasta
Panarottis Pizza Pasta » Turnover growth – 17.2% - all restaurants – 15.0% - same restaurants (impacted by store closures) – Menu price increase of 8% – New marketing campaign in cinemas – Focused growth plan
Slide 9: Panarottis Pizza Pasta continued
Panarottis Pizza Pasta continued » Number of restaurants grown by 4 – 2 in SA & 2 International » Upgraded 13 restaurants » Total restaurants now 60 » New menu introduced in March 2007 » Expect to open 4 new restaurants in 2008 » Continue aggressive marketing campaign
Slide 10: John Dory's Fish & Grill
John Dory’s Fish & Grill » Number of restaurants grown by 4 » Total restaurants now 20 » Décor & design upgraded » Introduction of sushi as a main menu item » 4 new restaurants planned for 2008 » Focusing on high density trading areas for growth
Slide 11: International
International » 8 new restaurants – Gaborone, Windhoek, Swakopmund (Spur) & Harare (Panarottis) – increasing the African footprint – Erina Fair (Spur) & Blacktown (Panarottis) (Australia) – O2 Dome & Lakeside (London) (Spur) » Total restaurants now 34 – 27 Spur • 15 Africa (incl. Mauritius) • 12 Int
Slide 12: International continued
International continued » United Kingdom & Ireland – Opened 2 company-owned restaurants – Franchise restaurant opened after year end – In negotiations with UK master franchisee » Australia – Operations restructured – 2 - 3 new restaurants scheduled » Africa – Spur brand gaining impetus – 3 new resta
Slide 13: Operations
Operations » Success of Taste FM in-house radio station » Benefits of locked-down POS roll-out » Supply chain initiatives – Critical path for franchisee profitability – Consistency & quality in restaurants for customer – Partnerships with suppliers – IP initiatives i.e. labour – new laws » Continued
Slide 14: Financial performance
Financial performance Ronel van Dijk
Slide 15: Key financial indicators
Key financial indicators 2007 2006 % change Headline earnings (R’000) 80 685 57 971 39.2 Headline EPS (cents) 91.53 65.76 39.2 Diluted headline EPS (cents) 88.17 65.10 35.4 Distribution per share (cents) 55.00 47.00 17.0 Distribution cover (times) 1.7 1.4
Slide 16: Turnover
Turnover R’000 2007 2006 % change Wholesale & distribution 76 192 73 852 3.2 Franchise – Spur 99 911 86 548 15.4 Franchise – Panarottis 9 526 8 655 10.0 Franchise – John Dory’s 4 687 3 922 19.5 Franchise – International 9 392 6 681 40.6 Retail outlets 13 846 - 100.0 Corporate services & other 1 857
Slide 17: Turnover – geographic split
Turnover – geographic split R’000 % of total 2007 % of total 2006 % change South Africa 89.2 192 172 96.3 176 012 9.2 Wholesale 35.4 76 192 40.4 73 852 Franchise 53.1 114 292 54.4 99 302 Other 0.7 1 689 1.5 2 858 Africa & Mauritius 1.9 4 172 1.6 2 844 46.7 UK & Australia 8.9 19 067 2.1 3 836 >100 To
Slide 18: Operating income
Operating income R’000 % of ops 2007 2006 % change Wholesale & distribution 24.0 30 987 26 303 17.8 Franchise – Spur 65.2 84 295 72 326 16.5 Franchise – Panarottis 5.2 6 777 5 749 17.9 Franchise – John Dory’s 1.1 1 443 (255) Franchise – International 4.5 5 876 3 129 87.8 Operating margin 42.2% 42.4%
Slide 19: Comparable profit after tax
Comparable profit after tax R’000 2007 2006 % change Profit after tax 81 752 57 667 41.8 Taxes relating to foreign subs (16 554) - Release of international loan provision - (1 779) Foreign exchange (gain)/loss (94) 1 119 Profit on sale of intangible asset (1 194) - Loss on sale of associate 1 129 -
Slide 20: Balance sheet – assets
Balance sheet – assets R’000 2007 2006 Property, plant & equipment 82 982 37 612 Intangibles 272 596 271 865 Investments & loans 25 072 26 049 Deferred tax 24 648 11 323 Inventory 4 943 2 232 Trade & other receivables 47 100 41 942 Cash 45 134 45 689 Taxation 2 285 2 844 Total assets 504 760 439 556
Slide 21: Balance sheet – equity & liabilities
Balance sheet – equity & liabilities R’000 2007 2006 Capital & reserves 403 636 362 640 Deferred tax 43 288 37 939 Trade & other payables 32 280 18 220 Loans payable 14 411 9 023 Taxation 9 927 6 561 Bank overdraft 916 4 801 Shareholders for distribution 302 372 Total equity & liabilities 504 760 43
Slide 22: Cash utilisation
Cash utilisation R’000 2007 Cash from operations 96 924 Net interest received 3 754 100 678 Distributions paid (45 030) Taxation paid (15 812) Working capital changes 10 003 Investment in buildings (11 577) Investment in associates & subsidiaries (103) Information technology (1 828) Other asset purc
Slide 23: Outlook for 2008
Outlook for 2008 Pierre van Tonder
Slide 24: Outlook for 2008
Outlook for 2008 » Rising interest rates & introduction of NCA to impact consumer spending, value is critical » Food inflation continues to be a challenge » Continued restaurant growth in SA » Selective international restaurant openings » BEE evaluation completed – Strategy being developed – IDC fac