Slide 1: Interim Results
INTERIM RESULTS RESULTS FOR THE INTERIM YEAR ENDED RESULTS FOR THE PERIOD ENDED FOR THE SIX30 JUN 2017 MONTH PERIOD ENDED 31 DECEMBER 2017 31 DECEMBER 2018
Slide 2: Trading Environment
TRADING ENVIRONMENT Challenging economic conditions in South Africa and Australia Continued increasing demands on disposable income Load shedding impacted trading Weakened consumer sentiment Restaurant sales Gainsupin market share – resilience of certain brands 129% Continuous strategic
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Slide 4: Financial Results for the Six Month Period Ended 31 December 2019
FINANCIAL RESULTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2019
Slide 5: The Period at a Glance
THE PERIOD AT A GLANCE GPI transaction concluded Revenue 8.4% (excluding marketing funds 10.3%) Profit before tax 19.5% (excluding marketing funds 22.1%) Diluted HEPS 35.6% Comparable profit before tax 8.2% Comparable diluted HEPS 14.6% Margin 30.5% (2019: 28.0%) (excluding marketing f
Slide 6: Adoption of New Standards
ADOPTION OF NEW STANDARDS IFRS 16 – leases, properties and vehicles Applied using the modified retrospective approach i.e. NO restatement of comparatives Recognition of lease liabilities on the statement of financial position of R46.0m with corresponding ROU asset Net decrease in profit on c
Slide 7: Restaurant Turnovers – South Africa
RESTAURANT TURNOVERS – SOUTH AFRICA R’000 Brand HY 2020 HY 2019 % change (# of outlets) (# of outlets) Spur Steak Ranches 2 484 675 (303) 2 378 138 (296) 4.5 Pizza and Pasta 416 614 (94) 410 388 (93) 1.5 John Dory’s Fish Grill Sushi 252 566 (53) 236 888 (53) 6.6 The Hussar Grill 112 129 (22) 102 652
Slide 8: SA Trading Brands
SA TRADING BRANDS % of % change in segment % change in operating % margin % margin Brand revenue revenue profit CY PY Spur 69.4 3.8 3.9 84.0 84.0 Pizza and Pasta 10.8 0.5 (6.9) 59.3 64.1 John Dory’s 6.1 3.3 6.6 49.5 48.0 The Hussar Grill 2.8* 9.5* 15.2 63.0* 59.9* RocoMamas 10.1* 4.0* 2.9 73.4* 74.1
Slide 9: South Africa Retail
SOUTH AFRICA RETAIL* R’000 HY 2020 HY 2019 % change Revenue 34 302 34 354 (0.2) Operating profit 1 783 4 171 (57.3) Operating margin 5.2% 12.1% (6.9) Impacted by: • THG Camps bay refurbishment: closed for 1 month; R0.169m costs • IFRS 16: includes a charge R0.826m • Comprises four The Hussar Grill r
Slide 10: Manufacturing & Distribution
MANUFACTURING & DISTRIBUTION R’000 HY 2020 HY 2019 % change (margin) (margin) Revenue – Manufacturing 49 702 48 364 2.8 Revenue – Retail 34 433 31 276 10.1 Revenue – Distribution 33 960 22 377 51.8 Revenue – Total 118 095 102 017 15.8 Operating profit – Manufacturing* 9 568 (19.3) 11 068 (22.9) (13.
Slide 11: SA Marketing Funds
SA MARKETING FUNDS R’000 HY 2020 HY 2019 % change Revenue – Spur Advertising 99 481 95 422 4.3 Revenue – Other Funds 33 177 32 249 2.9 Revenue – Total 132 658 127 671 3.9 Underspend – Spur Advertising 3 125 112 Underspend – Other Funds 109 4 545 Underspend – Total 3 234 4 657 (30.6) Cumulative overs
Slide 12: Other South Africa
OTHER SOUTH AFRICA* R’000 HY 2020 HY 2019 % change Revenue 41 563 27 389 51.8 Operating profit/(loss) 1 353 (3 338) 140.5 Retrenchment costs - 1 410 Comparable operating profit/(loss) 1 353 (1 928) 170.2 * Comprises décor, training, restaurant sundries, export, call centre
Slide 13: Corporate Services South Africa
CORPORATE SERVICES SOUTH AFRICA R’000 HY 2020 HY 2019 % change Revenue 33 165 (80.0) Marketing fund admin fee income 11 910 11 605 2.6 GPI finance income 2 935 4 648 (36.9) Net interest income 9 206 11 596 (20.6) Shared overheads (52 922) (64 292) 17.7 Operating loss (28 871) (36 443) 20.8
Slide 14: Corporate Services South Africa
CORPORATE SERVICES SOUTH AFRICA R’000 HY 2020 HY 2019 % change Shared overheads (52 922) (64 292) 17.7 Impairment of GPI funding (10 812) 4 304 Impact of IFRS 16 358 - Spur Foundation 83 (301) Nikos contingent consideration FV 114 (50) adjustment Other IFRS9 ECL (movement) 37 626 Foreign exchange (1
Slide 15: Corporate Services South Africa
CORPORATE SERVICES SOUTH AFRICA R’m HY 2020 HY 2019 IT 13.4 12.2 HR 3.2 3.5 Executives 12.5 14.5 Procurement 2.9 2.7 Finance and legal (employment costs) 8.0 8.2 Development 2.0 1.2 LTI 2.9 1.5 Spur Corporation (listing related costs) 4.0 2.7 Audit and accounting 1.6 2.4 Depreciation 2.9 2.9 Other (
Slide 16: Restaurant Turnovers – International
RESTAURANT TURNOVERS – INTERNATIONAL Location HY 2020 (R’000) HY 2019 (R’000) % change % change* (# of outlets) (# of outlets) Australasia 78 096 (8) 97 971 (11) (20.3) (18.7) Africa 231 746 (52) 217 060 (47) 6.8 8.2 Cyprus 3 568 (1) - - - India 1 620 (1) 98 (1) - - Mauritius 97 664 (18) 86 165 (13)
Slide 17: Australasia
AUSTRALASIA R’000 HY 2020 HY 2019 % change Restaurant turnover 78 096 97 971 (20.3) Number of restaurants 8 11 Revenue 1 199 2 578 (53.5) Net loss (2 325) (4 099) IFRS 9 movements 90 2 913 RocoMamas Australia impairment 436 - Redundancy pay 305 - Foreign exchange loss 15 - Adjusted operating loss (1
Slide 18: Other International
OTHER INTERNATIONAL* R’000 HY 2020 HY 2019 % change Total Revenue 16 292 14 901 9.3 Operating profit 8 636 6 772 27.5 Operating margin 53.0% 45.4% 7.6 Made up of: Africa & Mauritius Revenue 14 139 13 084 8.1 Operating profit 7 497 6 265 19.7 Operating margin 53.0% 47.9% 5.1 * Includes Africa, Maurit
Slide 19: Other International
OTHER INTERNATIONAL R’000 HY 2020 HY 2019 % change India, The Middle East and Cyprus Revenue 2 153 1 817 18.5 Operating profit 1 139 507 124.7 Operating margin 52.9% 27.9% 25.0
Slide 20: International Corporate Services
INTERNATIONAL CORPORATE SERVICES R’000 HY 2020 HY 2019 % change Operating loss (3 061) (4 654) 34.2 Zambian settlement - 1 641 Other IFRS 9 ECL (movement) 2 (45) Foreign exchange loss (130) 432 Adjusted operating loss (3 189) (2 626) (21.4) * Applying a constant exchange rate - corporate costs incre
Slide 21: Comparable Profit
COMPARABLE PROFIT R’000 HY 2020 HY 2019 % change Profit before tax 161 776 135 416 19.5 Exclude: Marketing Funds (3 041) (5 461) 158 735 129 955 22.1 Financial instruments impairments (10 247) 7 798 Refurbishment of Sauce Factory and THG 1 939 - Camps Bay Impact of IFRS16 1 675 - Retrenchment costs
Slide 22: Comparable Headline Earnings
COMPARABLE HEADLINE EARNINGS R’000 HY 2019 HY 2019 % change Headline earnings 113 518 88 015 29.0 Exclude: Marketing Funds (2 478) (4 134) 111 040 83 881 32.4 Financial instruments impairments (10 283) 7 585 Refurbishment costs 1 676 - Impact of IFRS16 687 - Retrenchment costs 305 1 410 Nikos contin
Slide 23: Financial Position (extract)
FINANCIAL POSITION (extract) R’000 HY 2020 HY 2019 ASSETS Plant, property and equipment 107 558 98 263 Right-of-use assets 44 849 - Lease receivable 3 810 - Loans receivable 7 891 117 903 Trade and other receivables 132 928 124 579 Tax receivable 29 543 32 587 Restricted cash 6 482 9 866 Cash & cash
Slide 24: Financial Position (extract)
FINANCIAL POSITION (extract) R’000 HY 2020 HY 2019 LIABILITIES Contingent consideration liability 1 860 - Contract liabilities 34 070 33 314 Lease liabilities 53 682 -
Slide 25: Cash Flow
CASH FLOW R’000 HY 2020 HY 2019 Cash flow from operations 162 161 135 886 Net interest received 6 935 10 743 169 096 146 629 Distributions paid (72 236) (61 294) Taxation paid (41 098) (37 937) Working capital changes (28 889) (38 111) Net investment in fixed and intangible assets (12 819) (2 595) P
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Slide 27: Operational Overview for the Six Month Period Ended 31 December 2019
OPERATIONAL OVERVIEW FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2019
Slide 28: Restaurant Count
RESTAURANT COUNT (31 December 2019) Brand South Africa International Total Spur Steak Ranches 303 37 340 Panarottis Pizza Pasta 87 28 115 Casa Bella 7 - 7 Restaurant John Dory’ssales Fish Grill Sushi 53 3 56 up Grill The Hussar 22 2 24 129% RocoMamas 77 13 90 Nikos 10 - 10 Total 559 83 642
Slide 29: Spur Steak Ranches
SPUR STEAK RANCHES 295 Spur Steak Ranches in South Africa 8 Spur Grill & Go restaurants in South Africa 4.5% increase in restaurant turnover (existing 2.5%) Menu price increases 5.3% April 2018 3.0% December 2018 3.2% November 2019
Slide 30: Spur Steak Ranches
SPUR STEAK RANCHES New menus taking into account the changing taste profile of customers – vegan friendly offering New crockery and restaurant design – more contemporary look Continuous investment in growing market presence and brand awareness with successful high profile marketing campaigns
Slide 31: Pizza and Pasta
PIZZA and PASTA 87 Panarottis restaurants in South Africa 7 Casa Bella restaurants in South Africa 1.5% increase in restaurant turnover (existing decline of 1.6%) 1 size pizza - efficiencies Moved away from significant discounting – impact on turnover Menu price increases/(decreases): Da
Slide 32: Pizza and Pasta
PIZZA and PASTA Increased marketing presence Continued focus on installation of rotating wood-fired pizza ovens to enhance product authenticity and franchisee profitability – successful (29 installed) Call and collect launched Focus on product quality and customer value Loyalty programme e
Slide 33: Fish Grill Sushi
FISH GRILL SUSHI 53 restaurants in South Africa 6.6% increase in restaurant turnover (existing 4.4%) Impacted by the re-opening of two large outlets – reopened in December 2018 Menu price increases/decreases 3.2% November 2018 -2.1% August 2019 Launch of new brand advert Key focus re
Slide 34: The Hussar Grill
THE HUSSAR GRILL 22 restaurants in South Africa 9.2% increase in restaurant turnover (existing 7.5%) Menu price increase 3.5% September 2019 Maintained market share New businesses in new areas Menu innovation Refurbishment of existing restaurants
Slide 35: RocoMamas
ROCOMAMAS 71 RocoMamas restaurants in South Africa 6 RocoGo restaurants in South Africa 6.4% increase in restaurant turnover Menu price increase 2.8% November 2018 3.2% July 2019 Consolidation of the brand Increasingly competitive and fast-growing gourmet burger market Lessons lear
Slide 36: Nikos Coalgrill Greek
NIKOS COALGRILL GREEK 10 restaurants in South Africa 3 new restaurants opened since acquisition 19.7% increase in restaurant turnover Detailed customized marketing plan for each business Only AAA sites Cautious measured roll out
Slide 37: Brand Development in South Africa
BRAND DEVELOPMENT IN SOUTH AFRICA Brand Opened to 31 To open to # of outlets December 2019 30 June 2020 30 June 2020 Spur Steak Ranches 4 4 307 Pizza Pasta 5 4 98 John Dory’s Fish Grill Sushi 2 2 55 The Hussar Grill 2 - 22 RocoMamas 6 1 78 Nikos 1 - 10 Total 20 11 570
Slide 38: Restaurant Footprint – International
RESTAURANT FOOTPRINT – INTERNATIONAL Location Spur Panarottis John Dory’s Hussar RocoMamas Total Australia 4 3 1 8 Botswana 2 1 3 Cyprus 1 1 Ethiopia 1 1 India 1 1 Kenya 5 1 1 7 Lesotho 1 1 Mauritius 3 12 3 18 Middle East 1 2 3 Namibia 9 1 2 1 13 New Zealand 1 1 Nigeria 4 1 5 Eswatini 3 3 Tanzania 1
Slide 39: International
INTERNATIONAL Africa Opened 3 new restaurants in the period, closed 1 in Malawi Volatile trading conditions but our restaurants have traded reasonably well Partnering with franchisees able to expand to critical mass Smaller footprint more viable with encouraging results Mauritius 6 new
Slide 40: International
INTERNATIONAL Middle East 3 restaurants – 2 RocoMamas, 1 The Hussar Grill Brands well accepted 3 new restaurants to open in Saudi Arabia Australasia 8 restaurants Concessions to aid franchisees Cost model under review by management to contain expenses RocoMamas Australia – closed C
Slide 41: Brand Development - International
BRAND DEVELOPMENT - INTERNATIONAL Country Opened to To open to 31 Dec 2019 30 June 2020 Australia 1 - Ghana - 1 Kenya - 2 Mauritius 6 - Middle East - 3 Nigeria - 2 Eswatini - 2 Zambia 3 6 Zimbabwe - 1 Total 10 17 Total international footprint at 30 June 2020 100
Slide 42: Manufacturing & Distribution
MANUFACTURING & DISTRIBUTION Sauce Factory 4% price increase in December 2018 Revenue from sauce sales grew by 2.8% Net margin decline due to refurbishment costs To expand range of sauces Outsourced distribution Delivered 2.6 million cases/22 735 tonnes to our restaurants in the six mo
Slide 43: The Spur Foundation
THE SPUR FOUNDATION Invested in 20 woman Fed 817 children a Teacher training owned businesses through nutritional meal every delivering a school training and resources school day readiness programme to 800+ children R1.5m distributed to charitable organisations 1 July 2018 – 30 June 2019
Slide 44: Prospects
PROSPECTS
Slide 45: Prospects
PROSPECTS Maintain focus on product quality, innovation, value and making our products relevant Drive customer loyalty across all brands Grow market share Targeted, customized marketing New opportunities/Acquisitive International expansion – focus on Africa and the Middle East
Slide 46: Disclaimer
DISCLAIMER • Spur Corporation has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation including all information that may be defined as 'forward-looking statements' within the meaning of United States secur
Slide 47: Thank You Questions?
THANK YOU QUESTIONS?
Slide 48: Contact Details
CONTACT DETAILS CEO – Pierre van Tonder pvt@spur.co.za CFO – Phillip Matthee phillipm@spur.co.za Tier 1 Investor Relations 021 702 3102
Slide 49: Our Brand Family
OUR BRAND FAMILY ROCOMAIMAS NIKQ> e're not normal COALGRILL GREEK SPUR: A 8