Devyani International Ltd. · NSE:DEVYANI

Devyani International — Q3 FY2022 Earnings Presentation

39 slides from Devyani International's earnings presentation, Feb 4, 2022

  1. Slide 1: Regulation 30 Intimation to Stock Exchanges

    corp Devyani International Limited To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Block G, C /l, Bandra Kurla Phiroze Jeejeebhoy Towers, Complex, Bandra (E), Mumbai - 400 051 Dalai Street, Mumbai - 400 001 Email: cmlist@nse.co.in Email: corp.relations@bseindia.com Symbol: DEVY

  2. Slide 2: Quarterly Results Presentation Q3 FY-2022

    Quarterly Results Presentation Q3 FY-2022

  3. Slide 3: Disclaimer

    Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities (“Securities”) of Devyani International Limited (the “Company”) in India, the Uni

  4. Slide 4: Chairman’s Comment

    Chairman’s Comment Commenting on the performance for Q3 & 9M’ 2022 Mr. Ravi Jaipuria, Chairman, Devyani International Limited said, “We are pleased to report our financial results for the Q3 & 9M FY 2022, where we have continued to build on the momentum in our business by way of store additions, rev

  5. Slide 5: Table of Contents

    Table of Contents 1 Q3 and 9M FY2022 at a glance 2 DIL Consolidated Performance 3 DIL India Performance 4 Core Brands – KFC, Pizza Hut & Costa Coffee 5 Social Initiatives

  6. Slide 6: Q3 FY22 Financial Highlights

    Q3 FY22 Financial Highlights Sequential improvement across performance metrics  Net New Units at 81 – highest ever. Led by Pizza Hut & KFC openings.  Revenue from operation grew 21% QoQ.  Improving profitability: QoQ Brand Contribution up 28% & Pre-IndAS EBITDA grew 30%. Revenue from operations g

  7. Slide 7: 9M FY 22 Overview & Key Developments

    9M FY 22 Overview & Key Developments  192 net new stores in 9M FY 2022; Total count at 884.  Improving PAT profitability.  Business performance surpassed pre-pandemic levels during Q3.  Strong performance during Dec’21.  Pizza Hut continues to demonstrate strong operational turnaround.  Expans

  8. Slide 8: New Store Openings

    New Store Openings NET NEW UNITS (NNU) Stores as at Stores as at 31 Mar 21 31 Dec 21 Brand Q1 FY22 Q2 FY22 Q3 FY22 9M FY 22 KFC 20 25 30 75 264 339 PH 20 34 40 94 297 391 Costa - 1 5 6 44 50 Others 1 3 4 8 50 58 Total India 41 63 79 183 655 838 Nigeria 1 2 1 4 24 28 Nepal 1 3 1 5 13 18 Total DIL 43

  9. Slide 9: Store Expansion – Cluster Focus

    Store Expansion – Cluster Focus Core Brands Stores; India – Regional split As on Sept. 30, 2021 Core Brands Stores March 31, Sept. 30, 2021 Dec. 31, 2021 2021 NCR 135 141 148 238, 279, 34% 39% Bengaluru 80 91 100 Kolkata 42 48 52 North Hyderabad 32 43 53 55, 133, 8% 19% Other Metro cities 27 33 33 E

  10. Slide 10: Business Performance – DIL Consolidated

    Business Performance – DIL Consolidated Revenue from Operations - Quarterly Revenue from Operations - Annual 644 692 735 803 884 Stores 566 610 692 884 15,164 14,933 6,244 21% 13,106 5,161 11,348 4,331 3,791 3,528 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 65% y/y growt

  11. Slide 11: Financial Performance – DIL Consolidated

    Financial Performance – DIL Consolidated Gross Margin* - Quarterly Gross Margin* - Annual 68.7% 71.4% 71.2% 71.0% 71.4% GM % 70.0% 69.3% 69.1% 71.2% 22% 4,457 10,508 10,632 3,664 9,169 3,091 7,841 2,603 2,511 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 71% y/y growth Bra

  12. Slide 12: Financial Performance – DIL Consolidated

    Financial Performance – DIL Consolidated EBITDA (Pre-IndAS) - Quarterly EBITDA (Pre-IndAS) - Annual 12.1% 15.4% 5.6% 15.3% 16.4% % 7.3% 3.8% 7.4% 13.5% 30% 1,026 2,015 791 668 459 961 842 576 198 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 124% y/y growth EBITDA (Post In

  13. Slide 13: Financial Performance – DIL Consolidated

    Financial Performance – DIL Consolidated Profit Before Tax - Quarterly Profit Before Tax - Annual 12.5% 5.4% -9.5% 9.1% 10.7% % -7.1% -7.9% -5.6% 5.4% 807 42% 669 474 472 234 (641) (928) (334) (1,196) Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 41% y/y growth Diluted EPS

  14. Slide 14: Performance Trend – DIL India

    Performance Trend – DIL India Revenue from Operations Gross Profit # Stores 608 655 696 759 838 % 69.0% 72.0% 71.5% 71.3% 71.8% 5,685 23% 4,083 22% 4,661 3,324 3,968 2,840 3,440 3,117 2,373 2,227 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 65% y/y growth 72% y/y g

  15. Slide 15: Core Brands – KFC

    Core Brands – KFC

  16. Slide 16: Q3 Net New Stores - 30

    Q3 Net New Stores - 30 BETTIAH GUWAHATI NELLORE TANUKU GANGTOK KACHIGUDA, HYD VIP ROAD, GUWAHATI LUCKNOW VATAKARA VISHAKHAPATNAM KOLKATA 15

  17. Slide 17: Business Performance – KFC

    Business Performance – KFC Revenue from Operations - Quarterly Revenue from Operations - Annual 240 264 284 309 339 Stores 134 172 264 339 20% 3,621 8,664 3,014 2,540 6,443 2,211 6,091 2,029 4,641 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 64% y/y growth ADS - Quarterly

  18. Slide 18: Financial Performance – KFC

    Financial Performance – KFC Gross Profit - Quarterly Gross Profit - Annual 67.1% 69.7% 69.4% 69.1% 69.3% GM % 66.0% 64.8% 67.7% 69.2% 5,999 20% 2,508 2,083 1,769 4,360 3,950 1,484 1,408 3,064 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 69% y/y growth Brand Contribution -

  19. Slide 19: Channel wise Sales Mix - KFC

    Channel wise Sales Mix - KFC KFC Sales Mix - Quarterly KFC Sales Mix - Annual 11% 16% 33% 32% 36% 37% 44% 46% 65% Off-Premise On-Premise 89% 84% 67% 68% 64% 63% 56% 54% 35% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 On-Premise = Dine-in, Eat-in or Takeaway Off-Premise =

  20. Slide 20: Brand Building Activities

    Brand Building Activities 19

  21. Slide 21: Core Brands – Pizza Hut

    Hut izza —P Core Brands @ —_ 20

  22. Slide 22: Q3 Net New Stores - 40

    Q3 Net New Stores - 40 DWARKA, DELHI JAIPUR BANGALORE IMPHAL PUNE INDORE DADAR, MUMBAI JAMMU Sec 26, CHANDIGARH HYDERABAD AMBALA 21 JAMMU

  23. Slide 23: Business Performance – PH

    Business Performance – PH Revenue from Operations - Quarterly Revenue from Operations - Annual 273 297 317 351 391 Stores 268 269 297 391 4,233 4,174 17% 1,556 3,853 1,333 1,036 2,879 951 965 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 64% y/y growth ADS - Quarterly ADS

  24. Slide 24: Financial Performance – PH

    Financial Performance – PH Gross Profit - Quarterly Gross Profit - Annual 74.0% 76.2% 75.9% 75.5% 75.6% GM % 74.0% 74.9% 74.2% 75.6% 17% 1,176 3,131 3,126 1,007 2,915 789 704 732 2,135 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 67% y/y growth Brand Contribution - Quarte

  25. Slide 25: Channel wise Sales Mix - Evolving

    Channel wise Sales Mix - Evolving PH Sales Mix - Quarterly PH Sales Mix - Annual 31% 37% 54% 52% 58% 57% 62% Off-Premise 65% 80% On-Premise 69% 63% 46% 48% 42% 43% 38% 35% 20% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 On-Premise = Dine-in, Eat-in or Takeaway Off-Premis

  26. Slide 26: Promotions/ New Products

    L Promotions/ New Products d Sara at @ ie y my FNPUDN © uy ING JERSEY i) || eo | BAKING NEWS! h @ Pizza Hut is now dil khol ke delivering! = o ‘ad i] - \ later Share aN A WE DONT JUST DELIVER. WE DELIVEROMLGO ac \ a, we: : : \\ ON : ¥ 4 2. ad =< : = i - <. Watch on @ YouTube i HUT WILL BE DIL HOLE D

  27. Slide 27: Core Brands – Costa Coffee

    @ Core Brands — Costa Coffee 26

  28. Slide 28: Q3 Net New Stores - 5

    Q3 Net New Stores - 5 GURGAON JAIPUR LUCKNOW DELHI AIRPORT

  29. Slide 29: Business Performance – Costa

    Business Performance – Costa Revenue from Operations - Quarterly Revenue from Operations - Annual 45 44 44 45 50 Stores 67 63 44 50 52% 143 902 820 94 85 76 274 37 214 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 88% y/y growth ADS - Quarterly ADS - Annual -55.9% -24.9% 3

  30. Slide 30: Financial Performance – Costa

    Financial Performance – Costa Gross Profit - Quarterly Gross Profit - Annual 76.9% 79.5% 79.6% 79.8% 79.8% GM % 76.9% 77.3% 78.5% 79.8% 52% 114 694 634 75 68 58 29 218 168 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 FY 2019 FY 2020 FY 2021 9M FY 22 97% y/y growth Brand Contribution - Quarterly Brand Con

  31. Slide 31: Promotions/ New Products

    Promotions/ New Products @ di "Mee = COSTA Drink i in the Season 1 al COFFEE pe * Pairings (ROG Bengalury » —We are _ Tiramisu aK “hd Latte | AaPBorstaltuittre caitee \ NOW OPEN, fi aq with hot and cold coffee. Enjoy Great Coffee & Cor First Floor, Bhartiya Mall The perfect companion for all your tr

  32. Slide 32: DIL International

    DIL International Nigeria Nepal 28 Stores 18 Stores Q3 FY21 Q2 FY22 Q3 FY22 Exit Stores 36 44 46 Revenue from Operations 346 469 570 ADS (INR ‘000) 108 125 148 31

  33. Slide 33: Summary Financials

    Summary Financials

  34. Slide 34: Consolidated Profit & Loss Statement

    Consolidated Profit & Loss Statement Particulars (Rs. Million) Q3 FY22 Q3 FY21 9M FY22 9M FY21 Revenue from Operations 6,244 3,791 14,933 7,017 Other Income 39 53 137 785 Total Income 6,283 3,844 15,070 7,802 Raw Material Cost 1,787 1,188 4,300 2,207 Gross Profit 4,457 2,603 10,632 4,811 Gross Margi

  35. Slide 35: Social Initiatives

    Social Initiatives

  36. Slide 36: Social Initiatives

    Social Initiatives Equal Opportunities for ALL Focus on Gender Diversity Differently Equally Abled KFC x IDCA partnership Total 13 operated by differently All-women Costa store @Gurgaon KFC initiative on World Braille Day 1st all-women PH store @Gangtok Total 19 all-women stores across portfolio equ

  37. Slide 37: Q3 & 9M FY22 Conference Call Details

    Devyani International’s Q3 & 9M FY22 Conference Call on Friday, February 04, 2022 at 4:00 PM IST Devyani International Limited (DIL), a multi-dimensional comprehensive QSR player in India, will host a conference call for investors and analysts on Friday, February 04, 2022 at 4:00 PM IST to discuss i

  38. Slide 38: About Us

    About Us Devyani International Limited (DIL) is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (QSR) in India, on a non-exclusive basis, and operate 884 stores across more than 200 cities in India, Nigeria and Nepal, as of Decembe

  39. Slide 39: Thank You!

    DEVYANI INTERNATIONAL LIMITED Thank You!

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