Slide 1: Famous Brands: you're in good company
brands you're in good company famous << O.—- CELEBRATING 20 YEARS ON THE JSE
Slide 2: Summarised results for the year ended 28 February 2015
SUMMARISED RESULTS for the year ended 28 February 2015
Slide 3: Agenda
AGENDA MILESTONES PERFORMANCE INDUSTRY TRENDS BUILDING HIGHLIGHTS AND DRIVERS CAPABILITY FINANCIAL RESULTS GROUP STRATEGY PROSPECTS
Slide 4: Milestones
MILESTONES ~<s@..- CELEBRATING 20 YEARS ON THE JSE
Slide 5: Achieved 2015 vision: Africa's first choice branded food services franchisor
Achieved 2015 vision “To become Africa’s first choice branded food services franchisor”
Slide 6: Our continued success is based on a winning culture
Our continued success is based on a winning culture, underpinned by: Solid strategy Operational discipline Talented people
Slide 7: Performance highlights
PERFORMANCE HIGHLIGHTS
Slide 8: Strong results
STRONG RESULTS Notwithstanding weak economic climate, stressed mainstream consumer and highly competitive environment
Slide 9: 14th consecutive year of record turnover and profits
14th consecutive year of record turnover and profits
Slide 10: Turnover exceeds R3 billion, profit exceeds R450 million
First time ever Turnover exceeds R3 billion Profit exceeds R450 million
Slide 11: Best ever operating margin of 20.5%
Best ever Operating margin of 20.5%
Slide 12: Headline earnings per share increased 15%
Headline earnings per share increased 15%
Slide 13: Total dividends to shareholders up 18%
Total dividends to shareholders 355 cents per share up 18%
Slide 14: Acquisition of 75% of Cater Chain Food Services
Acquisition of 75% controlling share in Cater Chain Food Services
Slide 15: Record new store openings
Record new store openings 258 Franchise network now in excess of 2 500 restaurants
Slide 16: Successful pilot of the Total / Thrupps model
Successful pilot of the Total / Thrupps model
Slide 17: Automated pie plant commissioned in Lagos, Nigeria
Commissioned automated pie plant in Lagos, Nigeria
Slide 18: Industry trends and drivers
INDUSTRY TRENDS AND DRIVERS A 0
Slide 19: Industry trends and drivers
INDUSTRY TRENDS AND DRIVERS More customers, visiting less and Smaller repertoire of Quick Service restaurants gained spending more preferred brands visited at expense of Casual Dining Consumer focus on Intensified competitor activity: premiumisation, customisation, every-day discounting and convenie
Slide 20: Building capability
BUILDING CAPABILITY
Slide 21: Building brand capability
BUILDING BRAND CAPABILITY <O2- CELEBRATING 20 YEARS ON THE JSE , a . SAVEBONAIRS PIZZA Q\ vce (STEERS os CA nenowanns Qofishaways coffee coulure tashas Muce MBEAN CELEBRATING 20 YEARS ON THE JSE —— _ : ) Hailkay = Ciromundo ee iY Me abo eg . & Oy Turn inTender TR \Eryit
Slide 22: System-wide sales growth
SYSTEM–WIDE SALES GROWTH 18.0% 9.7% 10.4% Domestic International Total
Slide 23: Like-on-like sales growth
LIKE-ON-LIKE SALES GROWTH 5.2% 4.0% 4.1% Domestic International Total
Slide 24: New restaurants opened
NEW RESTAURANTS OPENED 68 258 51 55 40 28 To t a l 16 Steers Wimpy Debonairs Pizza FishAways Mugg & Bean Emerging Brands EMERGING BRANDS
Slide 25: Franchise network
FRANCHISE NETWORK 588 616 508 2 545 To t a l 215 180 153 101 129 55 Steers Wimpy Debonairs Pizza FishAways Mugg & Bean Mr Biggs Milky Lane & Fego Café and Emerging Brands Wakaberry Europa EMERGING BRANDS
Slide 26: Trading footprint
TRADING FOOTPRINT UK 84 Egypt 6 South Africa 2 100 Sudan 6 UAE 5 Rest of Africa 359 United Kingdom 84 Nigeria 162 India 2 Ivory Coast 5 India 2 Kenya 11 DRC 2 Malawi 6 Zambia 37 Zimbabwe 8 Mauritius 20 Total restaurants Mozambique 3 Angola 1 2 545 Namibia 51 Swaziland 7 South Africa 2 100 Botswana 2
Slide 27: Building logistics capability
BUILDING LOGISTICS CAPABILITY Nelspruit Crown Mines Midrand Bloemfontein Pinetown Western Cape Cape Town Port Elizabeth
Slide 28: Revenue growth - logistics
REVENUE GROWTH - LOGISTICS 24% 15% 14% 15% 15% 13% 12% To t a l Gauteng KZN Western Cape Eastern Cape Free State Mpumalanga Gauteng KwaZulu-Natal Western Cape Eastern Cape Free State Mpumalanga
Slide 29: Logistics highlights
LOGISTICS HIGHLIGHTS Centralised demand Commissioning of Centralised route planning planning function Crown Mines programme rolled out to implemented and Distribution Centre all regions institutionalised
Slide 30: Building manufacturing capability
BUILDING MANUFACTURING CAPABILITY
Slide 31: Revenue growth - manufacturing
REVENUE GROWTH - MANUFACTURING 119% 104% 106% 25% To t a l 31% 16% 16% 16% 6% 1% Meat Bakery Plant Sauce & Spice Ice Cream Fruit Juice Coffee Coega Cheese Great Bakery Choice Meats Processing Plant Company Company Company Company Company Company Plant
Slide 32: Manufacturing highlights
MANUFACTURING HIGHLIGHTS Take-on of KZN region’s Take-on of Wimpy’s previously outsourced choice meat products bakery products Take-on of Wimpy’s Expansion of speciality bakery Mugg & Bean’s retail range products inclusive of capsules
Slide 33: Financial results
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Slide 34: Salient features
SALIENT FEATURES F 2015 % CHANGE Revenue (Rm) 3 283 16 Operating profit (Rm) 672 19 Cash generated before changes in working capital (Rm) 717 19 Earnings per share (cents) 468 15 Headline earnings per share (cents) 467 15 Total dividends per share (cents) 355 18 Net debt : equity (%) (7) (2) (py) Di
Slide 35: Income statement
INCOME STATEMENT Rm F 2015 F 2014 % CHANGE Revenue 3 283 2 826 16 Cost of sales (1 832) (1 599) 15 Gross profit 1 451 1 227 18 Selling and administrative expenses (779) (661) 18 Operating profit 672 566 19 Share of profit of associates 8 5 48 Net interest paid - (3) (92) Profit before taxation 679 5
Slide 36: Revenue
REVENUE Rm 3500 3000 2500 2000 3,283 2,826 1500 2,516 2,156 1,878 1,685 1000 500 0 2010 2011 2012 2013 2014 2015
Slide 37: Operating profit
OPERATING PROFIT Rm % 800 21 20.5 700 20.0 600 20 500 19.1 19.1 400 18.5 19 672 18.3 566 300 466 413 358 200 18 308 100 0 17 2010 2011 2012 2013 2014 2015
Slide 38: Statement of financial position
STATEMENT OF FINANCIAL POSITION Rm F 2015 F 2014 Move Assets Property, plant and equipment 209 196 13 Intangible assets 923 880 43 Investments in associates 58 53 5 Working capital 147 128 19 1 337 1 257 133 Funding Equity 1 417 1 235 182 Net borrowings (126) (26) (100) Deferred liabilities and curr
Slide 39: Cash flow
CASH FLOW Rm 900 Interest 800 700 (202) 600 713 Tax 500 Cash from operations (327) 400 300 200 Dividends (96) Capex (53) 100 Funding 91 raised 126 - Opening Opening cash Cash from Interest Tax Dividends Capex (net) Closing Funding raised Closing cash Cash operations (net) Cash
Slide 40: Equity ratios
EQUITY RATIOS NAV per Debt/ share (R) Equity % 16 27.5 30 14.2 14 12.4 25 12 20 10.2 14.3 10 8.7 15 8 7.4 10 6.2 9.7 6 8.1 5 4 0 2 -2.1 -7.2 -5 0 -10 2010 2011 2012 2013 2014 2015 NAV per share R Debt/Equity %
Slide 41: Ratios
RATIOS % times RONA % ROE % NAV times Dividend cover times 55 2.7 2.4 2.5 2.3 2.4 2.3 50 2.2 2.3 2.1 50.0 46.1 2.1 45 1.8 44.5 43.6 1.9 42.5 1.7 40 38.2 1.4 1.5 1.6 1.4 1.4 1.3 1.3 35 36.0 1.1 36.1 35.7 35.9 35.1 34.5 0.9 30 0.7 2010 2011 2012 2013 2014 2015
Slide 42: Segmental analysis revenue
SEGMENTAL ANALYSIS REVENUE Rm F 2015 F 2014 % CHANGE Franchising and development 615 538 14 Supply Chain 2 507 2 145 17 Manufacturing 1 258 1 011 24 Logistics 2 223 1 938 15 Corporate 2 1 100 South Africa 3 124 2 684 16 International 159 142 12 Rest of Africa 57 50 14 UK 102 92 11 3 283 2 826 16
Slide 43: Segmental analysis operating profit
SEGMENTAL ANALYSIS OPERATING PROFIT Rm % OF TOTAL F 2015 F 2014 % CHANGE Franchising and development 55 365 325 12 Supply Chain 39 262 204 28 Manufacturing 26 173 127 36 Logistics 13 89 77 16 Corporate - 1 1 - South Africa 94 628 530 18 International 6 44 36 22 Rest of Africa 3 23 23 - UK 3 21 13 62
Slide 44: Segmental analysis operating margin
SEGMENTAL ANALYSIS OPERATING MARGIN % F 2015 F 2014 Franchising and development 59.4 60.4 Supply Chain 10.4 9.5 Manufacturing 13.7 12.5 Logistics 4.0 4.0 South Africa 20.1 19.7 International 27.3 25.3 Rest of Africa 40.0 46.1 UK 20.1 14.0 Group 20.5 20.0
Slide 45: Productivity and margin ratios
PRODUCTIVITY AND MARGIN RATIOS % 50 42.5 43.3 42.8 43.4 44.2 45 41.8 40 35 30 24.2 24.2 23.7 23.3 23.4 23.7 25 20 15 19.1 19.1 20.0 20.5 18.3 18.5 10 5 0 2010 2011 2012 2013 2014 2015 Operating profit margin % Expense to turnover % Gross profit margin %
Slide 46: Operating margins by division
OPERATING MARGINS BY DIVISION % Manufacturing Logistics Domestic Franchising Group 70 60 62.5 60.9 60.4 60.2 60.1 59.4 50 40 30 18.3 19.1 19.1 18.5 20.0 20.5 20 11.8 12.5 13.7 10 15.3 15.3 13.6 4.0 4.0 3.0 3.0 3.5 3.5 0 2010 2011 2012 2013 2014 2015
Slide 47: Group strategy
GROUP STRATEGY __ - O.—-
Slide 48: Strategy: leading branded leisure and consumer product business by 2020
STRATEGY To become one of the leading branded leisure and consumer product businesses in Africa and selected international markets by 2020
Slide 49: Strategic intent
STRATEGIC INTENT Our business is focused on building capability and scale across Brands, Logistics and Manufacturing to position ourselves to compete aggressively in the leisure and consumer product space
Slide 50: Building group capability: key strategic thrusts
BUILDING GROUP CAPABILITY 5 YEAR KEY STRATEGIC THRUSTS Shape the brand portfolio and ensure our key brands resonate across all consumer touch Execute on all aspects of BBBEE points Fortify the foundation which exists within Ensure strong focus on leadership and Manufacturing and Logistics succession
Slide 51: Building brand capability
BUILDING BRAND CAPABILITY Conclude Steers brand Open 240 new restaurants repositioning and take to market Explore table service evening dining acquisition opportunities Proceed with roll-out of and leverage existing casual dining Launch new “craft beer Total / Thrupps model brand occasions beyond lu
Slide 52: Building brand capability
BUILDING BRAND CAPABILITY Conclude acquisition of controlling stake in Retail Commence with the revamp of Mr Biggs Group Master License business in Botswana Launch five new retail variants across Steers, Enter Ghana Wimpy and Mugg & Bean brands
Slide 53: Building logistics capability
BUILDING LOGISTICS CAPABILITY Extend business life of Midrand warehouse Leverage Crown Mines Distribution Centre facility Implement new online replenishment platform Commence with transition to “24/7/365” for franchisees business model
Slide 54: Building manufacturing capability
BUILDING MANUFACTURING CAPABILITY Extend Coega Cheese plant to facilitate Commission serviette manufacturing plant manufacture of cream cheese at Midrand Prepare for take-on of currently outsourced pork Conclude improvements to existing FB Ice Cream and halaal products via recently acquired Company
Slide 55: Prospects
PROSPECTS
Slide 56: Prospects
PROSPECTS 2015/16 will remain tough The forecast for the for consumers – particularly economy in the year the Group’s mainstream ahead is conservative middle income market Growth is expected to be The competitive climate muted, but the Group’s will remain fierce and strong investment intensify – inc
Slide 57: You're in good company
YOU’RE IN GOOD COMPANY We foresee revenue and Our outlook is optimistic margin growth opportunities ahead We will continue to leverage our skills and Famous Brands’ strategy has scale to align with our delivered in the short-term ambitious long-term and is built for the long-term growth plans
Slide 58: Questions
fam ds company <@.- CELEBRATING 20 YEARS ON THE JSE
Slide 59: Famous Brands: you're in good company
brands you're in good company famous << O.—- CELEBRATING 20 YEARS ON THE JSE