Sphera Franchise Group Sa · BVB:SFG
Sphera Franchise Group Sa — Q1 2022 Earnings Presentation
36 slides from Sphera Franchise Group Sa's earnings presentation, June 2022
Slide 1: Sphera Franchise Group Investor Presentation
Sphera Franchise Group Investor Presentation June 2022
Slide 2: Disclaimer
Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by Sphera Franchise Group SA ("Sphera"), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy shares in Sphera. Neither
Slide 3: Contents
Contents 1 About Sphera Franchise Group 2 2022 & Beyond Development Plan 3 Q1 2022 Highlights 4 2022 Updates 5 Annex 1: Key Q1 2022 Financials 6 Annex 2: Key 2021 Financials 3
Slide 4: About Sphera Franchise Group
About Sphera Franchise Group 4
Slide 5: Sphera Franchise Group at a glance
Sphera Franchise Group at a glance • Sphera is one of the leading food operators in Romania, operating through subsidiaries in Moldova and in Italy. • Sphera Franchise Group was incorporated in May 2017 to consolidate all brands operated by the Group: KFC, Pizza Hut Dine-In and Pizza Hut Delivery ah
Slide 6: Sphera Franchise Group at a glance
Sphera Franchise Group at a glance 1st Full-Service 2nd QSR Restaurant 25 years track- Operator in Operator in record Romania Romania SFG shares 3 iconic brands: included in BVB 174 restaurants KFC, Pizza Hut, BET & FTSE in 3 countries Taco Bell Russell Micro- cap 6
Slide 7: Sphera Franchise Group at a glance
Sphera Franchise Group at a glance Locations split per brand Geographical footprint 2 20 23 172 3 24 19 14 69 9 11 Bucharest Food Court In Line Drive-through KFC restaurants 7 PH and PH Delivery restaurants Taco Bell restaurants Notes:Restaurants of of 31.05.2022, 1 Paul Store & 1 PHD sub-franchise
Slide 8: Sphera Franchise Group corporate structure
Sphera Franchise Group corporate structure 99.9% 99.9% 99.9% 100% 80% American Restaurant California Fresh US Food Network US Food Network US Food Network S.A. System S.A. Flavors S.R.L. S.R.L. - Italy S.R.L. - Moldova • holds the franchise • holds the franchise • holds the franchise rights • holds
Slide 9: Leading foodservice group in Romania
Leading foodservice group in Romania QSR QSR #2 player on the chained QSR segment (21.4% market share) #1 player on the QSR chicken segment ü 88% aided brand awareness among Romanian customers (Dec’21) ü Stronger than McDonald’s in Brand Power, Usage Funnel and Main Product Attributes ü First Taco B
Slide 10: Key investment highlights
Key investment highlights 1 2 Proven network roll- Leading food service group out capabilities with operating a portfolio of long track record of iconic, internationally successful growth, recognized brands even in pandemic 8 3 Scalable platform with Dividend stock (DivY fully fledged process 2021:
Slide 11: Track record of growth & network development
Track record of growth & network development KFC Pizza Hut Dine-In Pizza Hut Delivery Taco Bell VUCA Phase 172 Transformation Phase 168 Development Phases 14 154 156 13 10 11 20 138 19 Acceleration Phase 5 18 22 113 22 22 22 2 21 23 98 17 Initial Phase 23 86 12 74 75 76 9 22 21 64 10 9 9 18 60 54 8
Slide 12: Historical performance, slowed by the pandemic
Historical performance, slowed by the pandemic Turnover Normalized EBITDA 14% CAGR 2016-2021 96 73.5 69.3 72.4 73.5 44.1 2016 2017 2018 2019 2020 2021 1000 955 Net profit 771 711 619 514 64.2 51.6 32.6 24.3 27.4 -2.4 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 12
Slide 13: 2022 & Beyond Development Plan
2022 & Beyond Development Plan 13
Slide 14: 2022 Budget
2022 Budget • Cash position of RON 90 million EOY 2022: the Group estimates that the cash position available at the end of 2022 will be around RON 90 million, the bank debt will be around RON 260 million with a net bank debt of RON 170 million. • Restaurant sales: sales are estimated to increase wit
Slide 15: Restaurant Development Plan
Restaurant Development Plan 2022 2023 2024 2025 2026 Total Food Court 2 1 1 1 1 6 KFC Romania* Drive-Thru 4 5 5 5 5 24 In-line 3 - - - - 3 Pizza Hut FCD 2 3 - - - 5 Romania Express 2 1 - - - 3 Taco Bell Food Court 2 3 3 3 3 15 Romania In-line 2 2 2 2 2 10 KFC Italy Drive-Thru - 1 1 1 1 4 In-line - -
Slide 16: Efficient restaurant roll-out
Efficient restaurant roll-out Restaurant-selection criteria New restaurant opening process Market Analysis Generators Identify Best Locations (leisure – e.g. shopping centres, cinemas or retail – Traffic Traffic & Market Research e.g. DIY, hypermarkets, furniture stores etc) Project Management Archi
Slide 17: Q1 2022 Highlights
Q1 2022 Highlights NY SPHERA rc © .{3.,
Slide 18: SFG Performance in Q1 2022
SFG Performance in Q1 2022 • QoQ sales increase: Sphera Franchise Group continued to grow sales, registering a Data in RON’000 Q1-22 Q1-21 Y/Y % 31.8% increase in the sales compared to Q1 2021, reaching RON 278.6 million. 278,579 211,428 31.8% Restaurant sales • Significant uptake in food & material
Slide 19: SFG Q1 2022 Performance
SFG Q1 2022 Performance % 1.8 278.6 +3 .1% 285.7 7 +3 211.4 13.1 -7 208.3 1. 3% 3.8 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Restaurant Sales Expenses (Restaurant + G&A) Normalized EBITDA in RON m in RON m, excl. IFRS16 in RON m, excl. IFRS16 19
Slide 20: SFG Q1 2022 Performance breakdown
SFG Q1 2022 Performance breakdown Contribution to Q1 2022 turnover Market evolution • Romania registered the second best quarter since beginning of the pandemic, and overall, in the history in terms of restaurant sales, as the revenues increased 27.9% YOY and 4.5% QOQ. 5.1% • Sales in Italy register
Slide 21: 2022 Updates
2022 Updates 21
Slide 22: Restrictions & facilities granted by the state
Restrictions & facilities granted by the state Restrictions in Romania & Italy • Lifting of the restrictions in Romania close to end of Q1’22: As of March 9th, 2022, Romania has lifted all the COVID-19 restrictions which have been in place since October 25th, 2021, which required the possession of t
Slide 23: Restaurant development, Staff, Leases
Restaurant development, Staff, Leases Number of stores • 174 restaurants operated: SFG operated 174 restaurants as of 31.03.2022, out of which 94 KFC restaurants in Romania, 2 in Moldova and 20 in Italy, as well as 14 Taco Bell restaurants, 42 Pizza Hut restaurants (of which 22 Pizza Hut and 20 Pizz
Slide 24: Capital Markets, Sustainability & Dividends
Capital Markets, Sustainability & Dividends FTSE Russell • Inclusion in the FTSE Global Microcap: On February 18th, 2022, FTSE Russell announced that SFG shares will be included, as of March 21st, 2022, in the FTSE Russell indices for Emerging Markets, FTSE Global Micro Cap index. FTSE Global Micro
Slide 25: Marketing
Marketing KFC: Drive frequency and maximize relevance • With the aim of boosting sales and reinforcing the best tasting chicken attribute, KFC concentrated its communication on value for Q1, successfully re-launching Smart Menu (a full meal for 16 RON) with a promo layer on top offering prizes for p
Slide 26: Marketing
Marketing Taco Bell: Drive trial and build brand • Taco Bell communicated two value campaigns in Q1 by offering tacos supreme and small format crunchwraps and burritos at an affordable price, with the objective of making core famously craveable and offering accessibility to our products. • The brand
Slide 27: Annex 1: Key Q1 2022 Financials
Annex 1: Key Q1 2022 Financials 27
Slide 28: Summary of Q1 2022 Consolidated FS
Summary of Q1 2022 Consolidated FS (excluding IFRS 16 impact) 28
Slide 29: Summary of Q1 2022 Consolidated FS
Summary of Q1 2022 Consolidated FS (with and without IFRS 16 impact) 29
Slide 30: Breakdown of Q1 2022 results by entity
Breakdown of Q1 2022 results by entity (excluding IFRS 16 impact) 30
Slide 31: Annex 2: Key 2021 Financials
Annex 2: Key 2021 Financials 31
Slide 32: Summary of 2021 Consolidated FS
Summary of 2021 Consolidated FS (excluding IFRS 16 impact) 32
Slide 33: Summary of 2021 Consolidated FS
Summary of 2021 Consolidated FS (with and without IFRS 16 impact) 33
Slide 34: Breakdown of 2021 results by entity
Breakdown of 2021 results by entity (excluding IFRS 16 impact) 34
Slide 35: Notes
Notes 35
Slide 36: Thank you!
SFG 2022 Financial Calendar 30.08.2022 – H1 2022 Results 30.08.2022 – H1 2022 Results Call 14.11.2022 – Q3 2022 Results 14.11.2022 – Q3 2022 Results Call Thank you! For any follow-up questions related to Sphera Franchise Group’s activity on the Bucharest Stock Exchange, please contact Zuzanna Kurek,
Sphera Franchise Group — Q1 2022 Earnings Presentation on 6ix