Restaurant Brands International Inc. · NYSE:QSR
Restaurant Brands International — Q3 2015 Earnings Presentation
31 slides from Restaurant Brands International's earnings presentation, Oct 27, 2015
Slide 1: Earnings Conference Call Third Quarter 2015
Restaurant Brands International Earnings Conference Call Third Quarter 2015 October 27, 2015 ry ie \ i Restaurant Brands International P = Tim Hotlous (a 1
Slide 2: Safe Harbor Statement
Restaurant Brands Safe Harbor Statement nnd This presentation contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forwarc-looking stateme
Slide 3: Agenda
AGENDA HIGHLIGHTS TIM HORTONS® BURGER KING® FINANCIAL RESULTS SUMMARY Q&A
Slide 4: Company at a Glance
Restaurant Brands Company at a Glance International Restaurant Brands International * 110+ years of combined brand heritage * More than 19,000 restaurants in approximately 100 countries and US territories * Over 450,000 team members worldwide * Approximately 100% owned and operated by committed fran
Slide 5: RBI Q3 2015 Highlights
Restaurant RBI Q3 2015 Highlights hirer « Global comparable sales increased at TH and BK by 5.8% and 6.2%, respectively « Net Restaurant Growth (NRG) of 210 represented YoY restaurant base growth of 5.2% on a trailing twelve month basis ¢ System-wide sales growth increased at TH and BK by 8.2% and 1
Slide 6: Tim Hortons
Os \ im Hortons® ~
Slide 7: TH Q3 2015 Highlights
Restaurant TH Q3 2015 Highlights iro * Global comparable sales growth of 5.38% driven by continued strength in coffee and successful new product launches * NRG of 69 units, representing YoY restaurant base growth of 5.6% on a trailing twelve month basis * System-wide sales increased 8.2% Comparable
Slide 8: Business Strategy - TH
Business St rategy —= TH international oe oe 3,879 restaurants in 895 restaurants in 18 ¢ 71 restaurants in 5 13 provinces and states countries territories * Operating in the US ¢ Entered first * Home market, since 1984 international market in launched in 1964 2011 Lead, Defend, Expansion and Growth
Slide 9: Menu Innovation and Extend Brand Reach
Menu Innovation Extend Brand Reach • • • • •
Slide 10: Build Scalable and Profitable Business
Build Scalable and Expand in New and Focus on Growing Profitable Business Existing Markets Unit Economics
Slide 11: Canada's Most Iconic Brand
• Canada: 3,879 Units (80%) • US: 895 Units (19%) • Middle East: 71 Units (1%) Accelerate Create Jobs Bring One of Expansion and Throughout The Canada’s Most Iconic Realize Global NRG Entire System Brands to The World Potential
Slide 12: Market Commentary
Market Commentary • • Canada • • US • • Int’l •
Slide 13: Burger King
Slide 14: BK Q3 2015 Highlights
Restaurant BK Q3 2015 Highlights iro * Global comparable sales growth of 6.2%, with strength across all markets * NRG of 141 units, representing YoY restaurant base growth of 5.1% on a trailing twelve month basis ¢ System-wide sales increased 11.2% Comparable Sales Net Restaurant System-wide Sales G
Slide 15: Business Strategy - BK US&C
Restaurant Business Strategy - BK US&C Hair SS ee Balanced Effective marketing Continued pursuit * Constant drive to approached communications to of restaurant improve across Premium engage with all of remodels after operational and Value to drive positive profitable sales our guests achieving 40% m
Slide 16: Net restaurant growth in international markets
Turkey Russia 275+ net 300+ net restaurants restaurants since 2011 since 2011 China 325+ net restaurants since 2011 Brazil 350+ net restaurants since 2011
Slide 17: Market Commentary
Market Commentary • US&C • • EMEA • • APAC • • LAC •
Slide 18: Financial Results
Restaurant Brands International
Slide 19: RBI Q3 2015 Financial Results
Restaurant RBI Q3 2015 Financial Results Hara ¢ Adjusted EBITDA increased 23% organically on a year-over-year basis ¢ Reported Adjusted Net Income of $163 million and Adjusted Diluted EPS of $0.34 Growth over Prior Year Q3 2015 Q3 2014 PF Revenue $1,020 $1,118 7% Adjusted EBITDA 441 $414 23% Adjuste
Slide 20: RBI Q3 YTD Ending Cash Balance
Restaurant RBI Q3 YTD Ending Cash Balance itor YTD Ending Cash Bridge (US$ in millions) $831 ($381) | $931 ($239) a $976 ($104) (863) Beginning FCF Debt Dividends Debt FX & Other Ending Cash Balance Refinancing Amortization Cash Balance Note: - Beginning Cash Balance includes $84.5mm that was previo
Slide 21: RBI Capital Structure
RBI Capital Structure Note: (US$ in millions) 2014 Term Loan Facility Ba3/B+ 2015 Senior Notes Ba3/B+ 2014 Senior Notes B3/B TH Legacy Bonds B Capital Leases & Other Total Debt Cash Balance Net Debt Nel Debt / PF LTM Adj. EBITDA Memo: PF LTM Adj. EBITDA 2014 Term Loan Facility balance excludes origi
Slide 22: Capital Allocation
Restaurant Brands Capital Allocation International * On October 27, 2015, RBI Board of Directors declared a dividend of $0.13 per common share and partnership exchangeable unit of RBI LP for the fourth quarter of 2015 * The dividend will be payable on January 5, 2016 to shareholders and unitholders
Slide 23: Q3 2015 Summary
Restaurant Q3 2015 Summary Aer * Continued momentum in the third quarter, delivering favorable results at TH and BK ¢ Strong foundation set for the first year as RBI * Year-over-year profitability growth driven by continued strength in comparable sales across both brands * Consistent commitment to o
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Slide 25: Appendix
Appendix Fam, ALWAYS FRESH. Td 25
Slide 26: Use of Non-GAAP Financial Measures
Restaurant Brands Use of Non-GAAP Financial Measures |_': Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP, and discuss the reasons that we believe this i
Slide 27: RBI EBITDA and Adj. EBITDA to Net Income
RBI EBITDA and Adj. EBITDA to Net Income Restaurant Brands International (in US$ millions) Three Months Ended September 30, 2015 2014 2014 PF Segment Income: TH $ 2440 $§ - $ 219.9 BK 196.7 194.4 1¢4.4 Adjusted EBITDA 440.7 194.4 414.3 Share-based compensation and non-cash incentive compensation exp
Slide 28: RBI EBITDA and Adj. EBITDA to Net Income
Restaurant RBI EBITDA and Adj. EBITDA to Net Income |.) (in US$ millions) Segment Income: TH BK Adjusted EBITDA Share-based compensation and non-cash incentive compensation expense © Acquisition accounting impact on cost of sales TH transaction and restructuring costs © Impact of equity method inves
Slide 29: RBI Net Income to Adj. Net Income and Adjusted Diluted EPS
RBI Net Income to Adj. Net Income and Restaurant Adjusted Diluted EPS international (in US$ millions, except per share data) Three Months Ended September 30, 2015 2014 2014 PF Net income (loss) $ 182.9 §$ (23.5) $ 167.7 Income tax expense (benefit) 44.7 (26.9) €9.1 Income (loss) before income taxes
Slide 30: TH & BK Organic Growth
Restaurant _ Brands TH & BK Organic Growth naa FX Actual Q3 '15 vs. Q3 '14 Impact Organic Growth (in USF millions) Q3 15 Q38 14 $ % $ £ % Calculation A B ej B-G=D D/A Revenue TH $ 7387.7 € 834.1 {a} $ (96.4) (11.6% $$ (1488) $ 52.4 6.3% BK $787.0 § 2789 $ 3.1 11% $ (209) §$ 24.0 8.6% RBI $ 1,019.7 $
Slide 31: Footnotes to Reconciliation Tables
Restaurant Brands Footnotes to Reconciliation Tables [.) Note: - Definitions in the current report on Form &-K filed with the Securities and Exchange Commission on October 27, 2015. 31 Represents (gain) loss on early extinguishment of debt, $3.2 million and $8.1 million of non-cash interest expense
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