Slide 1: Spur Corporation Financial Results F2021
Spur Corporation Financial Results F2021 23 September 2021 LEADING THE WAY FOR THE GREATER GOOD F2021 F2021
Slide 2: We salute you, Pierre. Rest in peace.
We salute you, Pierre. Rest in peace. LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 3: Agenda
AGENDA Financial & Trading Progressing 1 Overview 2 Segmental 3 the strategy 4 Q&A Review LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 4: Agenda
AGENDA Financial & Trading Progressing 1 Overview 2 Segmental 3 the strategy 4 Q&A Review LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 5: The Year at a Glance
THE YEAR AT A GLANCE Comparable Comparable Cash balances Revenue Profit before tax Headline earnings profit before tax headline earnings increased -10.5% 16.0% 28.3% -18.6% -20.1% +R96m* -10.6%** -16.0%** -23.6%** * Unrestricted cash balances increased from R165m in June 2020 to R261m in June 2021 *
Slide 6: Covid-19 Impact: Restaurant Turnover Performance
COVID-19 IMPACT: LOCKDOWN RESTAURANT TURNOVER PERFORMANCE LEVEL 2 13 SEPTEMBER 2020 2021 Feb March April May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Level 5: Midnight Level 4: 1 to 31 Level 3: 1 June to 17 Level 2: 18 August to Level 1: 21 September to 28 Level 3 adjusted: 29
Slide 7: Civil Unrest Impact: -R16.4m
CIVIL UNREST IMPACT: Adjusted July 2021 Sat 17th Lockdown Level 4 Fri 9th Sat 10th Sun 11th Mon 12th Tues 13th Wed 14th Thurs 15th Fri 16th Sun 18th Deliveries & President SANDF Deployed Clean-up Mooiriver President Take-aways only Address: in 2 batches commences SOME 28 June 2021 – Torching of 7 Ad
Slide 8: Covid. Convenience. Connected
F21 Covid. Convenience. Connected LEADING THE WAY FOR THE GREATER GOOD F2021 F2021
Slide 9: F2021: Take-away Contribution Total Sales
F2021: TAKE-AWAY CONTRIBUTION TOTAL SALES Takeaway sales now at R1b: 50% 44% 45% 40% 35% 32% 30% 25% 20% 20% 15% 10% 4% 5% 0% CLICK & COLLECT MR D UBER OTHER 48% 37% 11% LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 10: F2021: Virtual Kitchen Brands (VK's)
F2021: VIRTUAL KITCHEN BRANDS (VK’S) PIZZA PUG BENTO BURGER REEL SUSHI TOP 3* 27% 19% 13% 302 participating restaurants across all brands: June 2021 *Percentage contribution to total VK sales LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 11: Restaurant Count: Countries
RESTAURANT COUNT: COUNTRIES International 85 Saudi Arabia 5 India 1 85 Oman 1 Nigeria 7 Ghana 1 Kenya 8 Tanzania 1 Zambia 19 539 Mauritius 17 Botswana 3 Zimbabwe 2 Namibia 11 Australia 3 Eswatini 5 New Zealand 1 South Africa 539 RESTAURANTS 624 LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 12: Restaurant Count: Brand
RESTAURANT COUNT: BRAND 1% South 15% Brand International Total Africa 4% Spur* 296 34 330 8% Panarottis & Casa Bella** 89 29 118 53% John Dory’s 49 3 52 The Hussar Grill 20 2 22 19% RocoMamas*** 78 17 95 Spur * Panarottis & Casa Bella ** John Dory's The Hussar Grill *** Nikos 7 - 7 RocoMamas Nikos T
Slide 13: Number of Restaurants
NUMBER OF RESTAURANTS Restaurant Restaurant NEW Count Count CLOSED REVAMPS RELOCATIONS RESTAURANTS 1 July 2020 30 June 2021 Spur 290 291 6 5 15 3 Spur Grill & Go 8 5 - 3 - - Panarottis 84 84 6 6 2 2 Casa Bella 7 5 - 2 - 1 John Dory's 52 49 2 5 3 - The Hussar Grill 22 20 - 2 - - RocoMamas 69 73 6 2 3
Slide 14: Restaurants: South Africa
RESTAURANTS: SOUTH AFRICA F2021 F2020 (# of outlets (# of outlets Brand R’000 R’000 % change (R) June 2021) June 2020) Spur* 3 646 385 296 3 552 221 298 2.7 Panarottis & Casa Bella** 567 894 89 602 338 91 (5.7) John Dory’s 325 420 49 358 081 52 (9.1) The Hussar Grill 154 121 20 168 035 22 (8.3) Roco
Slide 15: Restaurants: International
RESTAURANTS: INTERNATIONAL F2021 F2020 (# of % % (# of outlets Location F2021 F2020 outlets change change* June 2021) June 2020) (R) (R) Australasia 104 016 4 114 795 8 (9.4) (17.2) Rest of Africa 365 352 57 367 869 53 (0.7) 8.2 Cyprus & India 1 721 1 7 464 2 (77.7) (77.7) Mauritius 140 714 17 158 0
Slide 16: Group Total Turnover: Brand
GROUP TOTAL TURNOVER: BRAND Restaurant Turnover Like On Like Franchised restaurants 12 months to 12 months to 12 months to June % change against comparable prior period June 2021 June 2020 2021 Spur 2.7 (22.5) (12.7) Panarottis & Casa Bella (5.7) (24.7) (15.7) John Dory’s (9.1) (24.5) (19.1) The Hus
Slide 17: Agenda
AGENDA Financial & Trading Progressing 1 Overview 2 Segmental 3 the strategy 4 Q&A Review LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 18: Income Statement
INCOME STATEMENT Audited Audited Rm F2021 F2020 % change Revenue 681 761 (10.5) Cost of sales (165) (198) (16.5) Gross Profit 516 563 (8.4) Other expenses - net (371) (449) (17.4) Operating profit before net finance income 145 114 26.7 Net finance income 3 14 - Profit before income tax 148 128 16.0
Slide 19: Segmental SA Overview
SEGMENTAL SA OVERVIEW % of group revenue – % change in revenue % change in net profit % margin % margin F2021 F2021 vs F2020 F2021 vs F2020 F2021 F2020 Franchise 33.8 (6.7) (7.2) 68.0 68.3 Spur 23.3 (7.0) (10.7) 75.5 78.7 Panarottis & Casa Bella 3.4 (15.3) (23.8) 43.8 48.7 John Dory’s 1.8 (19.3) (64
Slide 20: Segmental SA: Franchise Spur
SEGMENTAL SA: FRANCHISE Spur R’m R’m % change (7.0)* % change (10.7)* Store and Revenue Profit before tax 120 2500 2 485 Net Margin % Revenue Store Turnover Profit before tax 2000 100 104 84% 1 932 1 714 1500 80 75% 1000 1 068 67 60 64.6% 53 500 40 76.1% 124 70 89 30 0 47 20 H1 2020 H2 2020 H1 2021
Slide 21: Spur: Looted Restaurants and Rebuilds
H1 F2021 vs H1 F2020 H2 F2021 vs H2 F2020 F2021 vs F2020 MENU PRICE 4.6% November 2020 INCREASE 3.3% June 2021 (31.0) 81.0 2.7 9 LOOTED DOMINANT RESTAURANTS MARKETING 5 REBUILDS ACTIVITY COMPLETED SPUR LOYAL DRIVE THRU FAMILY LAUNCHED MEMBERS JUNE 2021 CONTINUE TO SURPASSES CELEBRATE AT EXPECTATIONS
Slide 22: Segmental SA: Franchise Panarottis, Casa Bella
SEGMENTAL SA: FRANCHISE Panarottis, Casa Bella R’m R’m % change (15.3)* % change (23.8)* Store and Revenue Profit before tax 450 417 Store Turnover Revenue Net Margin % 400 14 Profit before tax 350 12 304 11 59.3% 300 250 264 10 200 8 49.1% 186 150 6 22.1% 37.2% 6 100 4 4 50 19 8 10 13 2 0 2 H1 2020
Slide 23: Panarottis: Impacted by lockdown regulations
H1 F2021 vs H1 F2020 H2 F2021 vs H2 F2020 F2021 vs F2020 MENU PRICE Panarottis 5.3% December 2020 INCREASE Casa Bella 3.7% December 2020 (36.6) 63.5 (5.7) Impacted by Pizza Pug lockdown PANAROTTIS leading the way regulations and Takeaways now 27% of total VK KZN unrest 37% of sales group turnover To
Slide 24: Segmental SA: Franchise John Dory's
SEGMENTAL SA: FRANCHISE John Dory’s R’m R’m % change (19.3)* % change (64.2)* Store and Revenue Profit before tax 300 Net Margin % Store Turnover Revenue 6 250 253 5,4 Profit before tax 5 49.5% 200 174 4 150 151 3 100 106 2 17.3% 11.4% 50 1 (7.9) 1.2 11 0.6 - 4 5 7 - H1 2020 H2 2020 H1 2021 H2 2021
Slide 25: John Dory's: Impacted by lockdown restrictions
H1 F2021 vs H1 F2020 H2 F2021 vs H2 F2020 F2021 vs F2020 MENU PRICE 3.7% December 2020 INCREASE (40.1) 65.0 (9.1) Directly impacted on lockdown restrictions 40% of John Dory’s turnover is generated in KZN – impacted by civil unrest Sushi remains a key focus Revitalized marketing activity gaining tra
Slide 26: International Coastal Cleanup Day: 18 September
INTERNATIONAL COASTAL CLEANUP DAY: 18 SEPTEMBER BLOUBERGSTRAND WESTERN CAPE
Slide 27: Segmental SA: Franchise The Hussar Grill
SEGMENTAL SA: FRANCHISE The Hussar Grill R’m R’m % change (5.7)* % change (27.8)* Store and Revenue Profit before tax 120 Net margin % Store Turnover Revenue 3.5 112 Profit before tax 100 3.0 3.1 83.0% 80 84 2.5 64.3% 70 60 2.0 56 1.9 40 1.5 54.2% 20 1.0 0.9 1.0 47.2% - 4 2 2 3 0.5 H1 2020 H2 2020 H
Slide 28: The Hussar Grill: Impacted by Covid lockdown regulations
H1 F2021 vs H1 F2020 H2 F2021 vs H2 F2020 F2021 vs F2020 MENU PRICE 3.3% December 2020 INCREASE (37.6) 50.5 (8.3) Impacted by Covid lockdown regulations particularly no seated Stellenbosch Tapas Bar dining/alcohol opened in April 21 restrictions Waterfall Private Dining NEW restaurant opened Room ap
Slide 29: Segmental SA: Franchise RocoMamas
SEGMENTAL SA: FRANCHISE RocoMamas R’m R’m % change 12.9* % change 20.6* Store and Revenue Profit before tax 400 Net margin % Store Turnover Revenue 14 350 361 13 Profit before tax 300 305 324 12 74.5% 11 71.9% 250 10 10 200 196 8 52.8% 72.6% 150 6 100 50 4 4 - 18 8 14 16 2 H1 2020 H2 2020 H1 2021 H2
Slide 30: RocoMamas: Sterling performance despite lockdown regulations
H1 F2021 vs H1 F2020 H2 F2021 vs H2 F2020 F2021 vs F2020 MENU PRICE 3.3% December 2020 INCREASE (15.3) 65.3 13.1 Sterling performance Impact on turnover despite lockdown in KZN and high regulations traffic sites Click & Collect and NEW STORE Drive Thru GROWTH IN F22 INNOVATIONS IN THE LOCAL: 10 PIPE
Slide 31: Segmental SA: Franchise Nikos
SEGMENTAL SA: FRANCHISE Nikos R’m R’m % change (29.7)* % change 147.8* Store and Revenue Profit before tax 40 Store Turnover Revenue Net margin % 35 36 0.5 Profit before tax 30 0.5 0.4 42.9% 25 0.4 42.8% 23 23 0.4 0.3 20 0.3 12.7% 15 17 C 0.3 10 V 0.2 0.2 11.2% 5 0.2 - 2 1 1 1 0.1 0.1 H1 2020 H2 202
Slide 32: Nikos: Casual Dining at its best for sharing occasions
H1 F2021 vs H1 F2020 H2 F2021 vs H2 F2020 F2021 vs F2020 MENU PRICE 6.9% November 2020 INCREASE (34.5) 31.6 (12.8) Casual Dining at its best for sharing occasions Turnover decline with alcohol restrictions, seated dining limitations Chargrill Chicken VK brand -quality product gaining interest from C
Slide 33: Segmental SA: Company owned stores
SEGMENTAL SA: Company owned stores R’m R’m % change (22.9)* % change 411.8* Revenue Profit before tax 40 Net margin % Revenue Profit before tax 35 34 14.0 # 13.6 30 62.6% 25 9.0 20 22 19 20 5.2% 15 4.0 (9.5%) 10 1.8 (28.6%) 5 -1.0 - -1.9 H1 2020 H2 2020 H1 2021 H2 2021 No of stores 5 5 5 5 -6.0 -5.5
Slide 34: Segmental International
SEGMENTAL INTERNATIONAL R’m R’m % change (11.5)* % change 199.2* Store and Revenue Profit before tax 500 Net margin % 6 Store Turnover Revenue Profit Before Tax 450 440 14.6% 4 400 3.0 3.5 350 364 2 1.5 300 304 - 23.5% 250 248 10.9% -2 200 (69.2%) -4 150 100 -6 50 -8 -8.1 - 21 12 15 14 - 10 H1 12020
Slide 35: International
INTERNATIONAL Stringent lockdown measures in all international markets KENYA Smaller formats gaining traction RocoGo Panarottis Express Dominance in Africa is ESWATINI paving the way for a sustainable expansion GHANA LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 36: Segmental: Manufacturing and Distribution
SEGMENTAL Manufacturing and Distribution R’m R’m % change 4.7* % change 6.2* Revenue Profit before tax Net margin % 140.0 50.0 Profit before tax Revenue 45.0 120.0 118 44.0 40.0 100.0 37.2% 97 97 35.0 33.2 30.0 80.0 29.0 25.0 34.3% 60.0 67 29.8% 20.0 40.0 15.0 14.6 10.0 20.0 21.6% 5.0 - - H1 2020 H2
Slide 37: Segmental SA: Other & Shared Services
SEGMENTAL SA: OTHER & SHARED SERVICES OTHER * SHARED SERVICES % R’000 F2021 F2020 % change R’000 F2021 F2020 change Revenue 907 1 175 (22.8) Revenue 20 037 57 203 (65.0) Marketing fund admin fee income 13 943 16 245 (14.2) GPI finance income - 2 935 - Operating loss (7 074) (2 122) (233.4) Net inter
Slide 38: Segmental SA: Shared Services
SEGMENTAL SA: SHARED SERVICES Comparable overheads R’000 F2021 F2020 % change Shared overheads (126 146) (102 330) (23.3) Impairment of GPI funding - (10 812) Employee benefits obligation- net present value 8 502 - Spur Foundation 416 135 Nikos contingent consideration FV adjustment (1 081) (3 977)
Slide 39: Marketing Fund: South Africa
MARKETING FUND: SOUTH AFRICA R’000 F2021 F2020 % change ▪ Marketing fees reduced to assist franchisees during recurring Revenue 165 487 184 288 (10.2) lockdown periods ▪ Significant reduction in marketing spend to aid group-wide cash flow Under/(over) spend 24 300 (19 115) 227.1 concerns Cumulative
Slide 40: Group Comparable Profit Analysis
GROUP COMPARABLE PROFIT ANALYSIS R’000 F2021 F2020 % change Profit before tax 148 239 127 774 16.0 Exclude: Marketing Funds (23 934) 20 209 124 305 147 983 (16.0) IFRS9 Expected credit loss/reversals (2 991) 2 361 Refurbishment costs - 1 939 Employee benefit obligations – net present value 8 804 - A
Slide 41: Balance Sheet
BALANCE SHEET Audited Audited R'm F2021 F2020 Non-current assets Property, plant and equipment 94 102 Right of use assets 36 42 Intangible assets and goodwill 365 365 Other non-current assets 5 9 500 518 Current Assets Inventories 12 16 Taxation 25 28 Trade and other receivables 99 64 Cash 273 174 4
Slide 42: Cash Flow
CASH FLOW Audited Audited R'm F2021 F2020 Operating profit 171 148 Working capital changes (29) 30 Cash generated from operations 142 178 Trade and other payables 5 (6) Trade and other receivables (39) 44 Inventories 5 (8) Total changes (29) 30 LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 43: Cash Flow
CASH FLOW Audited Audited R'm F2021 F2020 Operating profit 171 148 Working capital changes (29) 30 Cash generated from operations 142 178 Net finance income 3 52 Taxation paid (41) (53) Dividend paid (2) (75) Cash flow from operating activities 102 102 Cash flow from investing activities 1 56 Cash f
Slide 44: Agenda
AGENDA Financial & Trading Progressing 1 Overview 2 Segmental 3 the strategy 4 Q&A Review LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 45: CX EX FX
CX CUSTOMER EXPERIENCE EX BRANDS FX EMPLOYEE LEADING THE FRANCHISEE EXPERIENCE EXPERIENCE EXPERIENCE IX INVESTOR EXPERIENCE LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 46: Rustenburg
RUSTENBURG
Slide 47: Karenpark Pretoria
KARENPARK PRETORIA
Slide 48: Carletonville
CARLETONVILLE
Slide 49: Jabulani Mall Soweto
JABULANI MALL SOWETO
Slide 50: Dainfern
DAINFERN | ROCQW MAS
Slide 51: Vaal Mall
VAAL MALL,
Slide 52: Montecasino
MONTECASINO COALGRILL GREEK
Slide 53: Blueberry Square Honeydew
BLUEBERRY SQUARE HONEYDEW
Slide 54: Today: Midway Crossing, KZN
TODAY: MIDWAY CROSSING, KZN CONGRATULATIONS TO A FIRST TIME FRANCHISEE SAM CLARMAN A PREVIOUS RESTAURANT OPERATOR NOW 100% FRANCHISE OWNER
Slide 55: Agenda
AGENDA Financial & Trading Progressing 1 Overview 2 Segmental 3 the strategy 4 Q&A Review LEADING THE WAY FOR THE GREATER GOOD F2021
Slide 56: Appendix
Appendix 9/23/2021 56 LEADING THE WAY FOR THE GREATER GOOD F2021 F2021
Slide 57: 1. International: Restaurant Count
1. INTERNATIONAL: RESTAURANT COUNT Spur Panarottis John Dory’s The Hussar Grill RocoMamas Total Botswana 2 - - - 1 3 Eswatini 3 1 - - 1 5 Ghana - - - - 1 1 Kenya 5 1 - - 2 8 Africa Namibia 8 - 2 - 1 11 Nigeria 5 2 - - - 7 Tanzania 1 - - - - 1 Zambia 3 13 1 1 1 19 Zimbabwe 1 - - - 1 2 Australia 2 - -
Slide 58: 2. Segmental International: Overview
2. SEGMENTAL INTERNATIONAL: OVERVIEW REVENUE NET PROFIT / (LOSS) % R’000 % R’000 % of group margin margin revenu F2021 F2020 change F2021 F2020 change F21 F20 e – F21 Australasia 0.3 1 709 1 817 (5.9) (1 543) (9 822) 84.3 (90.3) (540.6) Rest of Africa & M.East 3.4 23 387 26 270 (11.0) 12 376 12 509
Slide 59: 3. South Africa Shared Services – Cost analysis
3. SOUTH AFRICA SHARED SERVICES – Cost analysis R’m F2021 F2020 Information Technology 25.5 27.3 Human Resources 7.0 6.4 Executives 24.4 22.9 Procurement 5.6 6.0 Finance and legal (employment costs) 17.2 14.9 Development 4.4 4.0 Long term incentives 1.3 2.2 Spur Corporation (non-exec fees & listing
Slide 60: 4. Comparable Headline Earnings - analysis
4. COMPARABLE HEADLINE EARNINGS - analysis R’000 F2021 F2020 % change Headline earnings 92 988 72 463 28.3 Exclude: Marketing Funds (23 591) 18 365 69 397 90 828 (23.6) IFRS9 Expected credit loss reversals (1 111) (192) Refurbishment costs - 1 753 Employee benefit obligations 6 339 - Additional NED
Slide 61: 5. International Shared Services
5. INTERNATIONAL SHARED SERVICES R’000 2021 2020 % change Operating loss (5 455) (6 644) 17.9 Other IFRS 9 ECL (movement) (370) 734 Foreign exchange loss 732 126 Adjusted operating loss* (5 093) (5 784) 11.9 * Applying a constant exchange rate - corporate costs decreased by 13.5% LEADING THE WAY FOR