Slide 1: Annual results 2009
WELCOME Annual results 2009 £
Slide 2: Performance & operations
Performance & operations Pierre van Tonder
Slide 3: The year under review
The year under review » Difficult trading environment – High rentals – Increased costs of electricity, rates and taxes – Reduced disposable income – High food price inflation » 7.3% growth in restaurant turnover – Strength of brands and value of customer loyalty » Opened 11 new restaurants and refur
Slide 4: Spur Steak Ranches
Spur Steak Ranches » 8.6% turnover growth » Food price inflation 10.2% » Menu price increase limited to 4% in October 2008 and 7% in May 2009 » Opened 10 restaurants in SA » Relocated 7 and revamped 9 restaurants » 240 restaurants in SA
Slide 5: Spur Steak Ranches continued
Spur Steak Ranches continued » Signature store concept for high profile sites – V&A Waterfront, Bryanston, Bloemfontein Waterfront – Cape Town International Airport – November 2009 » Continuing to broaden base in SA – Hillbrow, Atteridgeville » 8 new restaurants planned for FY2010 » Further 17 resta
Slide 6: Spur Steak Ranches continued
Spur Steak Ranches continued » Promotions – Value-added campaigns – Theme evenings » Secret Tribe – Totem Card launched – Totem Magazine launched
Slide 7: Panarottis Pizza Pasta
Panarottis Pizza Pasta » 4.4% turnover growth » Menu price increase limited to 2.5% in December 2008 and 3.9% in May 2009 » Upgraded 5 restaurants and relocated 1 » Total restaurants 50 in SA » Reintroduced marketing campaign into cinemas
Slide 8: John Dory's Fish & Grill
John Dory’s Fish & Grill » 18.2% turnover growth » Menu price increase limited to 7.5% in November 2008 » 3 restaurants revamped » Total restaurants now 22 » John’s Club loyalty programme to be launched
Slide 9: Operations
Operations » Procurement – Benefits of long-term partnership with suppliers – Ongoing improvement in procurement and distribution efficiencies » Manufacturing division – Reduction in cost of raw materials – Increase in sales of sauces in supermarkets » Information technology – Significant investment
Slide 10: International
International » 2 new Spur restaurants – Derby (United Kingdom) & Nairobi (Kenya) – Total restaurants now 35 » Africa – Region continues to trade well – Investigating opportunities in Angola, Ghana, Kenya, Mozambique, Nigeria, Swaziland, Tanzania & Zambia » Middle East – 1st restaurant to open in No
Slide 11: International continued
International continued » Australia – Restaurant industry hit hard by economic environment – Solid performances by Panarottis Blacktown, Panarottis Mingara and Silver Spur, Penrith – Relocated Panarottis Penrith to new premises – improved performance – Disappointing performance from two retail outle
Slide 12: International continued
International continued » United Kingdom & Ireland – Restaurants trading reasonably well – New retail outlet opened in Derby in current year – revenue a challenge – New retail outlet to open in Aberdeen in October 2009 – Engaged consultant to develop Retail Footprint Model for Spur – Investigating o
Slide 13: Restaurant base
Restaurant base South Inter- Franchise brand Total Africa national Spur Steak Ranches 240 29 269 Panarottis Pizza Pasta 50 6 56 John Dory’s Fish & Grill 22 - 22 Total 312 35 347
Slide 14: Financial performance
Financial performance Ronel van Dijk
Slide 15: Turnover
Turnover R’000 2009 2008 % change Wholesale & distribution 91 578 80 603 13.6 Franchise – Spur 115 836 107 982 7.3 Franchise – Panarottis 10 137 10 116 0.2 Franchise – John Dory’s 6 788 5 799 17.1 Franchise – International 12 883 12 250 5.2 Retail outlets 83 846 75 197 11.5 Corporate services & othe
Slide 16: Turnover – geographic split
Turnover – geographic split R’000 % of total 2009 % of total 2008 % change South Africa 70.4 230 044 70.4 208 391 10.4 Wholesale 28.0 91 578 27.2 80 603 13.6 Franchise 40.6 132 761 41.9 123 896 7.2 Other 1.8 5 705 1.3 3 892 46.6 Africa 2.1 6 842 2.1 6 075 12.6 Australia 10.4 34 048 10.7 31 726 7.3 U
Slide 17: Operating income
Operating income % of R’000 franchise 2009 2008 % change Wholesale & distribution 23.3 33 962 26 349 28.9 Franchise – Spur 67.0 97 525 91 539 6.5 Franchise – Panarottis 4.5 6 592 7 363 (10.5) Franchise – John Dory’s 2.0 2 920 2 440 19.7 Franchise – International 3.2 4 686 2 902 61.5 Total franchise
Slide 18: Comparable profit after tax
Comparable profit after tax R’000 2009 2008 % change Profit after tax 63 841 59 602 7.1 STC (previously capital distributions) 4 181 - Foreign exchange loss 957 1 236 International restaurants start up losses 2 082 - Impairment of Australian restaurants 10 044 - Jack Salmon’s – impairment & op loss
Slide 19: Balance sheet – assets
Balance sheet – assets R’000 2009 2008 Property, plant & equipment 84 429 98 890 Intangibles 279 970 281 867 Investments & loans 14 651 24 520 Deferred tax 16 618 18 966 Other non-current assets 2 731 3 697 Inventory 6 066 6 624 Trade & other receivables 54 320 52 381 Taxation 3 567 3 324 Cash 83 88
Slide 20: Balance sheet – equity & liabilities
Balance sheet – equity & liabilities R’000 2009 2008 Capital & reserves 434 320 437 102 Long-term loan 11 413 15 579 Operating lease liability 1 352 1 321 Deferred tax 47 472 40 736 Trade & other payables 30 639 35 927 Loans payable 11 441 15 126 Shareholders for distribution 398 352 Taxation 6 351
Slide 21: Cash utilisation
Cash utilisation R’000 2009 2008 Cash from operations 118 205 112 927 Net interest received 5 803 4 852 124 008 117 779 Distributions paid (47 722) (50 199) Taxation paid (34 292) (24 763) Working capital changes (6 321) (8 474) Investment in leasehold improvements (9 721) (8 512) Investment in asso
Slide 22: Outlook for 2010
Outlook for 2010 Pierre van Tonder
Slide 23: Outlook for 2010
Outlook for 2010 » Environment expected to remain difficult » Pressure on franchisee profitability from increased electricity costs & wage demands » Value proposition remains critical » Benefit of 2010 FIFA World Cup » Continued restaurant growth in SA – 8 Spur Steak Ranches – 3 Panarottis Pizza Pas
Slide 24: Questions?
Questions? Thank you