Slide 1: Annual results 2008
WELCOME Annual results 2008 i
Slide 2: Welcome
Welcome fo
Slide 3: Performance & operations
Performance & operations Pierre van Tonder
Slide 4: The year under review
The year under review » Challenging trading environment – Food price inflation – Electricity crisis – Pressure on consumer spending » 11.7% growth in restaurant turnover » Opened 17 new restaurants » Restaurant base now 343 » UK operations restructured » Solid underlying financial performance – Impa
Slide 5: Spur Steak Ranches
Spur Steak Ranches » Turnover growth – 8.6% - all restaurants – 6.3% - same restaurants » Food price inflation 17.6% » Menu price increase limited to 2.6% in October 2007 & 9.1% in April 2008 » Opened 11 restaurants in SA » Relocated 6 & revamped 9 restaurants » 236 restaurants in SA
Slide 6: Spur Steak Ranches continued
Spur Steak Ranches continued » Continuing to broaden base in SA – Soweto – Braamfontein – Future sites include: – Hillbrow – Gugulethu – Atteridgeville » 14 new restaurants planned for 2009 » Further 13 restaurants to be revamped » 4 relocations planned for 2009
Slide 7: Spur Steak Ranches continued
Spur Steak Ranches continued » New menu concept launched October 2007 » Spur TV installed in February 2008 » Taste FM » “Coolest place to eat” in Sunday Times survey » Star Leisure Options awards: – Best dinner on a budget – Best kids indoor party venue – Best children’s restaurant menu – Best franc
Slide 8: Panarottis Pizza Pasta
Panarottis Pizza Pasta » Turnover growth – 1.1% - all restaurants – 0.1% - same restaurants – Menu price increase limited to 8.4% in October 2007 & 4.7% in April 2008 » Upgraded 13 restaurants & relocated 2 » Total restaurants 51 in SA » Top ten of the “Coolest eat out places” in the Generation Next
Slide 9: John Dory's Fish & Grill
John Dory’s Fish & Grill » Turnover growth of 23.4% » 7 restaurants revamped » Total restaurants now 21 » Design update to brand image
Slide 10: Marketing
Marketing » Secret Tribe Kids Club grown by 11.6% – 915 221 active members » Loyalty card launched September 2008 » New agencies in both Spur & Panarottis » John Dory’s affiliation with Jeep & fishing » Continued investment in CSI
Slide 11: Operations
Operations » Procurement – Continued investment in procurement to: • limit food inflation impact on franchisees • ensure sustained quality supply » Manufacturing division – Impacted by higher cost of raw materials – Increase in sales of sauces in supermarkets » IT – Locked down – Improved business i
Slide 12: International
International » 3 new Spur restaurants – Kampala (Uganda) – Newry & Belfast (Northern Ireland) » Total restaurants now 35 » Africa – Region continues to trade well – New restaurant planned in Lusaka (Zambia) – Investigating opportunities in Ghana, Kenya, Nigeria & Tanzania » Middle East – Location s
Slide 13: International continued
International continued » United Kingdom & Ireland – Transaction concluded with effect from 1 April 2008 • Spur Corporation UK acquired 100% of Mohawk Spur in Wandsworth, including lease & franchise rights • All future franchise rights for the UK & Ireland now vest with Spur Corporation UK – Enables
Slide 14: International continued
International continued » Australia – Operations restructured; acquired minority interests in two Spur restaurants – Unsuccessful pilot of fish & grill concept in January 2008 • Concept not accepted by the market • Restaurant closed in August 2008 • Negative impact on results of R9.2 million
Slide 15: Financial performance
Financial performance Ronel van Dijk
Slide 16: Key changes in group structure
Key changes in group structure Company-owned restaurants 2008 2007 Panarottis Blacktown (Aus) Full year 9 months Seven Eagles Spur (Aus) Full year 4 months Mustang Spur (Aus) 5 months - Fish & Grill pilot (Aus) 6 months - Cheyenne Spur (UK) Full year 1 week Silver Lake Spur (UK) Full year 1 week Moh
Slide 17: Turnover
Turnover R’000 2008 2007 % change Wholesale & distribution 80 603 76 192 5.8 Franchise – Spur 107 982 99 911 8.1 Franchise – Panarottis 10 078 9 526 5.8 Franchise – John Dory’s 5 799 4 687 23.7 Franchise – International 12 250 9 410 30.8 Retail outlets 75 197 13 828 >100 Corporate services & other 3
Slide 18: Turnover – geographic split
Turnover – geographic split R’000 % of total 2008 % of total 2007 % change South Africa 70.4 208 391 89.2 192 172 8.4 Wholesale 27.2 80 603 35.4 76 192 5.8 Franchise 41.9 123 896 53.0 114 291 8.4 Other 1.3 3 892 0.8 1 689 >100 Africa & Mauritius 2.1 6 075 1.9 4 172 45.6 Australia 10.7 31 726 7.7 16
Slide 19: Operating income
Operating income % of R’000 franchise 2008 2007 % change Wholesale & distribution 20.2 26 349 31 444 (16.2) Franchise – Spur 70.1 91 539 84 295 8.6 Franchise – Panarottis 5.6 7 326 6 777 8.1 Franchise – John Dory’s 1.9 2 440 1 443 69.1 Franchise – International 2.2 2 902 5 876 (50.6) Total franchise
Slide 20: Operating income – franchise international
Operating income – franchise international R’000 2008 2007 % change Franchise – International 2 902 5 876 (50.6) Profit on sale of intangible - (1 397) Abnormal legal costs 2 003 1 868 Foreign exchange loss/(gain) 1 627 (455) Comparable operating income 6 532 5 892 10.9
Slide 21: Comparable profit after tax
Comparable profit after tax R’000 2008 2007 % change Profit after tax 59 602 81 752 (27.1) Taxes relating to foreign subsidiaries 1 476 (16 554) Fish & grill concept – impairment & op 9 213 - loss Investment in procurement 2 600 - Foreign exchange loss/(gain) 1 236 (94) International restaurants sta
Slide 22: Balance sheet – assets
Balance sheet – assets R’000 2008 2007 Property, plant & equipment 98 890 82 982 Intangibles 281 867 272 596 Investments & loans 24 520 25 072 Deferred tax 18 966 15 612 Other non-current assets 3 697 - Inventory 6 624 4 943 Trade & other receivables 52 381 47 100 Taxation 3 324 2 285 Cash 66 865 45
Slide 23: Balance sheet – equity & liabilities
Balance sheet – equity & liabilities R’000 2008 2007 Capital & reserves 437 102 403 636 Long-term loan 15 579 - Operating lease liability 1 321 - Deferred tax 40 736 34 252 Trade & other payables 35 927 32 280 Loans payable 15 126 14 411 Shareholders for distribution 352 302 Taxation 8 729 9 927 Ban
Slide 24: Cash utilisation
Cash utilisation R’000 2008 Cash from operations 110 013 Net interest received 4 852 114 865 Distributions paid (50 199) Taxation paid (24 763) Working capital changes (8 865) Investment in buildings & leasehold improvements (8 512) Investment in associates & subsidiaries (15 205) Information techno
Slide 25: Outlook for 2009
Outlook for 2009 Pierre van Tonder
Slide 26: Outlook for 2009
Outlook for 2009 » High interest rates & inflationary pressures to continue to impact consumer spending » Value proposition is critical » Food prices continue to be a challenge, but inflation should have peaked » Continued restaurant growth in SA » Selective international restaurant openings » Incre
Slide 27: Questions?
Questions? Thank you L