Sphera Franchise Group Sa · BVB:SFG
Sphera Franchise Group Sa — Q3 2020 Earnings Presentation
29 slides from Sphera Franchise Group Sa's earnings presentation, Oct 18, 2020
Slide 1: Sphera Franchise Group Analyst Call | Q3 2020 Results
Sphera Franchise Group Analyst Call | Q3 2020 Results 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: Welcome to SFG's Q3 2020 Analyst Call – Presenters
Welcome to SFG’s Q3 2020 Analyst Call – Presenters Calin Ionescu Valentin Budes Monica Eftimie Zuzanna Kurek CEO CFO CMO IR 3
Slide 4: Welcome to SFG's Q3 2020 Analyst Call - Agenda
Welcome to SFG’s Q3 2020 Analyst Call - Agenda 1 Q3 2020 Highlights 2 COVID-19 Adaptation in Q3 2020 3 Brand Performances 4 Key Q3 & 9M 2020 Financials 5 Forecasted 2020 Revenue & Expense Budget 6 Q&A session For further details We invite you to read the Full Director’s report which includes analysi
Slide 5: Q3 2020 Highlights
(Np) 03 2020 Highlights
Slide 6: Sphera Franchise Group – 3Q 2020 Highlights
Sphera Franchise Group – 3Q 2020 Highlights Encouraging results in Q3 2020 • Q3 showed signs of gradual recovery from the onset of the COVID-19 pandemic as the consolidated sales grew with RON 91.6 million (+86.2%) compared to Q2 2020. • In September 2020, following the reopening of the Romanian eco
Slide 7: Sphera Franchise Group 9M-2020 Performance
Sphera Franchise Group 9M-2020 Performance RESTAURANT SALES EXPENSES (Restaurant + G&A) NORMALIZED EBITDA RON m RON m, excluding IFRS 16 RON m, excluding IFRS 16 648.8 -22.5% 694.3 -27.6% 67.2 502.9 -57.6% -20.1% 248.7 -20.5% 502.4 Q3 226.0 Q3 Q3 180.5 30.5 197.9 216.8 -45.8% 230.8 -54.0% Q2 -11.8%
Slide 8: Sphera Franchise Group 9M & Q3 Sales performance per country
Sphera Franchise Group 9M & Q3 20 Sales performance per country 9M 9M 69.0m 617.1m 3Q -17.5% -28.7% 216.2m -21.7% 65.9m 439.8m 3Q 169.3m 29.8m 11.9% 26.2m 9M 8.2m 3Q -30.3% 2.8m 5.7 m -15.4% 2.4m Values in RON. 2019 values on top of the map, 2020 on the bottom. 8
Slide 9: COVID-19 Adaptation in Q3 2020
COVID-19 Adaptation in Q3 2020
Slide 10: Q3 2020 Significant events: COVID-19 adaptation
Q3 2020 Significant events: COVID-19 adaptation MAXIMIZING REVENUES • Expansion of delivery services: in September KFC Romania launched a dedicated online ordering platform. • Continued enhanced cooperation with local food aggregators: o Romania: FoodPanda, Glovo, Tazz (EuCeManac), TakeAway; o Italy
Slide 11: Business Calibration: COVID-19 adaptation
Business Calibration: COVID-19 adaptation STAFF & STATE AID RELATED TO STAFF COSTS • As of 30.06.2020, estimated 22% of the restaurant employees in Romania were still in technical unemployment, which covered the expenses of 75% of the average national salary. As of 1.09, all the restaurant employees
Slide 12: Business Calibration: COVID-19 adaptation
Business Calibration: COVID-19 adaptation Financial • All the financing facilities accessed in H1 2020 to ensure working capital were still applicable throughout Q3 2020. • Group secured a new short-term working capital line of RON 9.6 million, which has not been activated to date, • Group continued
Slide 13: Brand Performance
(Np) Brand Performance
Slide 14: Active Stores: Evolution in Q3
Active Stores: Evolution in Q3 Restaurant count as of 30.09.2020 85 2 17 23 21 10 158 Operational restaurants - June ‘20 80 1 16 20 21 10 148 - September ’20 84 2 17 23 21 10 157 - October ‘20 85 2 17 23 21 10 158 • In Q3 2020, Group inaugurated 4 KFC stores – 3 in Romania and 1 in Italy. • So far i
Slide 15: Brand performance: KFC Romania
Brand performance: KFC Romania All-Store Performance KFC Romania • All-store sales dipped 9.9% Y/Y in Q1 2020, followed by 19.5% 18.9% 15.9% a steep decline of 51.6% Y/Y in Q2 2020, and partial 13.5% 12.6% recovery in Q3 2020 when it reached -17.1% Y/Y. Q1’20 Q2’20 Q3’20 9M’20 • Worst performance in
Slide 16: Brand performance: KFC Italy & Republic of Moldova
Brand performance: KFC Italy & Republic of Moldova All-Store Performance 11.4% Q2’20 Q3’20 9M’20 All-Store Performance KFC Italy Q1’20 • KFC Italy grew All-Store performance in Q1 2020 -11.7% -17.6% thanks to the opening of new locations between Q2 and Q4 2019. Same-store performance dropped -17.6%
Slide 17: Brand performance: Pizza Hut & Taco Bell
Brand performance: Pizza Hut & Taco Bell All-Store Performance Pizza Hut • All-store performance same with same-store performance 7.3% 7.3% 7.4% 7.5% 6.7% • All-store sales declined in Q1 2020 with -15.8%, Q1’20 Q2’20 Q3’20 9M’20 followed by steep plunge of -68.8% caused by the 2019 Q1’19 Q2’19 Q3’1
Slide 18: Key Q3 & 9M 2020 Financials
(Sp) Key 3 8.912020 Financials
Slide 19: 9M 2020 Result
9M 2020 Result Statement of Comprehensive Income at 9M (excluding IFRS 16 impact) • Restaurant sales down 27.6% in 9M 2020 compared to 9M 2019; expenses down by 22.8%. • Restaurant operating profit of RON 34.8 million in 9M 2020, 60.5% lower compared to 9M 2019. • 17.4% decrease in General & Adminis
Slide 20: Q3 2020 Result
Q3 2020 Result Statement of Comprehensive Income for Q3 (excluding IFRS 16 impact) • Q3 showed signs of gradual recovery from the onset of the COVID-19 pandemic as the consolidated sales grew with RON 91.6 million (+86.2%) compared to Q2 2020. • Restaurant sales down 20.5% in Q3 2020 compared to Q3
Slide 21: 9M 2020 – Restaurant Expenses
9M 2020 – Restaurant Expenses Restaurant Expenses lower by 27.6% in 9M 2020 vs 9M 2019 (excluding IFRS 16) • Restaurant expenses in 9M 2020 decreased by 22.8% due to: lower cost of food & material by RON 70.9 million (-30.1% compared to 9M 2019 – mainly volume related), payroll expenses by RON 52.4
Slide 22: 3Q 2020 – Restaurant Expenses
3Q 2020 – Restaurant Expenses Restaurant Expenses lower by 20.5% in Q3 2020 vs Q3 2019 (excluding IFRS 16) • In Q3 2020, the Group continued to implement significant cost-saving measures both at the restaurant level as well as at the level of G&A expenses. • Throughout Q3 2020, the Group benefitted
Slide 23: 9M 2020 – individual performance by companies from the group
9M 2020 – individual performance by companies from the group KFC Romania and Moldova ended Q3 2020 with a net profit (excluding IFRS 16 impact) • USFN Romania (KFC Romania), USFN Moldova (KFC Moldova) and CFF (Taco Bell) ended 9M 2020 with a positive normalized EBITDA. • USFN Romania and USFN Moldov
Slide 24: 9M 2020 – G&A Expenses
9M 2020 – G&A Expenses G&A Expenses lower by 17.4% (excluding IFRS 16) in 9M 2020 vs. 9M 2019 • In 9M 2020, G&A expenses of the Group decreased by 17.4% compared to 9M 2020. • Significant cost-saving measures taken in Q3 2020 alone as the Group lowered G&A costs by 32.6% compared to Q3 2019. • Bigge
Slide 25: Impact of IFRS 16 on 9M 2020 Results
Impact of IFRS 16 on 9M 2020 Results As a result of IFRS 16 adoption, normalized EBITDA increased to RON 29.3m in H1 2020 § Starting 1 January 2019, Sphera applies IFRS 16 that sets out the principles for the recognition, measurement, presentation and disclosure of leases. § At the commencement date
Slide 26: Forecasted 2020 Revenue & Expense Budget
(Np Forecasted 2020 RBE budget
Slide 27: Forecasted 2020 Performance
Forecasted 2020 Performance As a result of IFRS 16 adoption, normalized EBITDA increased to RON 29.3m in H1 2020 • On 22.10.2020 the Group informed the market about the update to the forecasted budget for 2020. The new reflects the positive evolution of the Company since the lifting of the state of
Slide 28: Q&A session
(cen
Slide 29: Thank you for your attention!
Thank you for your attention!
Sphera Franchise Group — Q3 2020 Earnings Presentation on 6ix