Devyani International Ltd. · NSE:DEVYANI
Devyani International — Merger or Acquisition (December 2023)
25 slides from Devyani International's merger presentation, Dec 18, 2023
Slide 1: Devyani International Limited – Regulation 30 Investor Presentation
Devyani International Limited ________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Corporate Office : Plot No-18, Sector-35, Gur
Slide 2: KFC RD – Thailand
KFC RD – Thailand FSDT Ekamai, Greater Bangkok
Slide 3: Table of Content
Table of Content 1 Transaction Overview 2 Transaction Structure / Rationale 3 Consideration and Funding 4 Country Dynamics / KFC Positioning 5 RD Overview / Financials 2
Slide 4: Transaction Overview
Transaction Overview CMDT Hadyai Village, South
Slide 5: Entry in Thailand
Transaction overview Entry in Thailand Acquisition of existing KFC franchise partner i.e. Restaurant Development Co. Ltd. (RD) operating 274 KFC stores across the Country, as on 30th Sep 2023. 4
Slide 6: Transaction Structure / Rationale
Transaction Structure / Rationale FSDT Sathon, Greater Bangkok
Slide 7: Transaction Rationale - Overview
Transaction Rationale - Overview ➢ Thailand is a strong Asian – upper middle-income economy ➢ Impressive urbanization and social advancement ➢ Stable currency and strong GDP reliance on all economic pillars ➢ Strong Asian/ international tourism destination ➢ Poultry is the largest contributor in Tha
Slide 8: Transaction Structure
Transaction Structure Thai Local partner White Snow Company 51 % Nirwan (Thailand) Limited Limited (Thai) (Thai) Devyani International Limited (India) 51% Blackbriar Co., Ltd. (Thai) Devyani International DMCC (Dubai) Financial partner Yellow Palm Co., Ltd. (Thai) Temasek Holdings 49% (CAMAS) Restau
Slide 9: Consideration and Funding
Consideration and Funding Drive thru Pattani, South
Slide 10: Consideration and Funding
Consideration and Funding Particulars THB Bn USD Mn# INR Crores# Net consideration 4.58 128.9 1,066.1 Funding Equity Devyani International Limited 1.47 41.3 341.4 Temasek Holdings (CAMAS) 1.41 39.7 328.0 Local Thai Partner 0.05 2.93 1.4 82.4 11.9 681.3 Local bank debt 1.65 46.5 384.8 4.58 128.9 1,06
Slide 11: Country Dynamics / KFC Positioning
Country Dynamics / KFC Positioning PTT Yala, South
Slide 12: Thailand Position in South East Asia Region and Globally
Thailand Position in South East Asia Region and Globally Thai economy well positioned among SEA countries Thailand’s rankings on the global stage Country Population 2022 GDP1 2022 (US$bn) ** GDP1 2022/ GDP1 2025F Capita (US$bn) ** Travel 8th 1st 4th (million) * (US$) * for tourism for tourism among
Slide 13: Country Dynamics - Thailand
Country Dynamics - Thailand Attractive Market Dynamics ✓ ~70Mn population with PPP per capita income of US$ 21,150 ✓ Median age - 40 years – strong family orientation ✓ Strong urbanization @ 50% expected to be 60% in 10 years – incremental income levels & consumption ✓ 45% of Thailand’s population l
Slide 14: KFC Positioning - Thailand
KFC Positioning - Thailand KFC – Largest and most attractive QSR / LSR brand in Thailand ✓ Market leader in QSR / LSR brands in Thailand ✓ 4 times larger vs. next global competitor in QSR / LSR brand (1,009 stores vs. 245 stores in FY22) ✓ High customer satisfaction scores ✓ Proven ability to grow K
Slide 15: KFC Positioning vs competition
KFC Positioning vs competition # of stores opened 1,100 2016 – 2022 1,000 1,009 +443 stores 900 800 700 600 500 400 300 +7 stores 245 200 202 +4 stores +50 stores 116 100 +74 stores 99 98 +89 stores 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 KFC McDonald's Chester's Burger King Bonchon
Slide 16: Product Portfolio
Product Portfolio Diversified Product portfolio (chicken, Burger, Snacks and Rice) Original / Hot and WING ZAAB Zinger burger Chick ‘N Roll Egg Tart Green Curry Rice Spicy Value Meals (individual / The Box) Bucket for One Zinger Burger Combo Zaab Rice Bowl Combo The Box Group Meals as Value proposit
Slide 17: RD Overview
RD Overview Esso Udon, Norhteast
Slide 18: RD KFC - Highlights
RD KFC - Highlights Strong revenue +147 net new stores 274 Stores Sep’23 Added between 2016 and growth Sep’23 5.2bn THB in FY 2023 ~14% - 15% Brand Partnership with all High customer Contribution# in major food delivery satisfaction score FY2023 aggregator # Pre-INDAS EBITDA 17
Slide 19: RD Store Snapshot
RD Store Snapshot Total: 274 Northeast Proven development engine 471 NNUs 15 20 25 14 274 260 Greater Bangkok 235 215 1131 Footprint growth 20 # of stores West (ending) FY20 FY21 FY22 Sep 23 YTD 94 South 18 Store data as of Sep 2023. 1. Stores in Northeast region include 2 stores in the East region
Slide 20: Leadership team
Leadership team ▪ Andrew joined RD in 2016 ▪ Apichart joined RD in 2016 ▪ Former Chief Financial Officer of KFC Thailand (Yum!) ▪ Prior to joining RD, he worked in operations and ▪ 20 years in the QSR industry leadership roles at KFC (Yum!) for 16 years and at ▪ Chartered Accountant in Australia Pop
Slide 21: RD Core values
RD Core values Who is Core values Think Different and drive ✓ Encourage innovative thinking and welcome creativity from team members change ✓ Dedication and focus Really exceed expectations ✓ Treat every restaurant as if it is the only one ✓ Rapid growth and ambition to make KFC stronger Every Baht
Slide 22: RD Financials
RD Financials FSDT ATT U Ladphrao
Slide 23: Financial Performance
Financial Performance Revenue from Operations – Quarterly (In THB Mn) Revenue from Operations – Annual (In TBH Mn) 249 260 265 271 274 Stores 202 220 236 265 274 1,429 1,408 5,176 1,339 1,333 1,265 4,447 3,859 4,078 2,837 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 FY 2020 FY 2021 FY 2022 FY 2023 YTD FY
Slide 24: Financial Performance (In THB Mn)
Financial Performance (In THB Mn) Gross Margin - Quarterly Gross Margin - Annual 63.9% 63.7% 63.3% 62.8% 63.1% GM % 62.9% 63.1% 64.4% 63.7% 63.0% 898 889 3,297 809 852 844 2,796 2,628 2,437 1,787 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 FY 2020 FY 2021 FY 2022 FY 2023 YTD FY24 Brand Contribution - Qu
Slide 25: Thank You!
Thank You! FSDT Ekamai, Greater Bangkok
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