Sapphire Foods India Ltd. · NSE:SAPPHIRE
Sapphire Foods India — Investor Presentation (December 2021)
31 slides from Sapphire Foods India's investor presentation, December 2021
Slide 1: Sapphire Foods Investor Presentation
Sapphire Foods Investor Presentation December 2021
Slide 2: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sapphire Foods India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Table of Contents
TABLE OF CONTENTS A Sapphire Foods at a Glance B Financial Overview C Key Investment Highlights D Future Strategies
Slide 4: Sapphire Foods at a Glance
SAPPHIRE FOODS AT A GLANCE Sapphire Foods at a Glance YUM’s Franchisee Operator in 482 Total Restaurants India, Sri Lanka and Maldives Across India, Sri Lanka and Maldives (3) Sri Lanka’s Largest International QSR chain (1) 220 KFC Restaurants (3) 260 Pizza Hut Restaurants (3) 2 Taco Bell Restaurant
Slide 5: Journey of Sapphire Foods: Platform of 482 Outlets
JOURNEY OF SAPPHIRE FOODS Sapphire Foods at BUILT A PLATFORM OF 482 OUTLETS (1) a Glance SAPPHIRE FOODS: GEOGRAPHICAL PRESENCE (2) INDIA INDIA SRI LANKA Restaurant 219 188 71 Count (1) 32 7 Number of 57 33 43 KFC – 6 cities (2) PH – 7 34 11 KFC – 13 KFC – 6 PH – 17 PH – 4 KFC – 3 PH – 0 ~ KFC and Pi
Slide 6: Key Takeaway for Investors
Sapphire KEY TAKEAWAY FOR INVESTORS Foods at a Glance Two global brands Focus on customer (KFC & Pizza Hut) with scale experience and and EBITDA profitability operational excellence Value based work culture enabled by professional and experienced management New store expansion model Capability and c
Slide 7: Financial Overview
Financial Overview
Slide 8: Operational & Financial Overview
OPERATIONAL & FINANCIAL OVERVIEW Financial Overview NUMBER OF RESTAURANTS Gross 67 62 36 14 32 60 (1) Restaurant Additions 542 482 437 450 427 376 31-Mar-19 31-Mar-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21E Restaurant 10 11 26 1 0 Closures REVENUE (2) (INR mm) 23.5% decline 13,296 11,818 172.8% inc
Slide 9: Recovery in Business Post COVID-19
RECOVERY IN BUSINESS POST COVID-19 Financial Overview SYSTEM SALES RECOVERY – AS A % OF CORRESPONDING PERIOD (%) 273% 180% 155% 126% 141% 92% 1QFY22 2QFY22 Oct'21 + Nov'21 vs. corresponding quarter / period of FY20 vs. corresponding quarter / period of FY21 AVERAGE DAILY SALES RECOVERY VS. FY20 (PRE
Slide 10: Profitability Overview
PROFITABILITY OVERVIEW Financial Overview GROSS MARGIN (1) 120bps 160bps (~INR mm) 69.9% 70.4% 69.2% 68.3% 67.5% 7,981 9,084 768 7,103 2,131 FY19 FY20 FY21 Q1FY21 Q1FY22 Gross Margin % EBITDA (2) (INR mm) 450bps 1,530bps 18.9% 16.3% 13.1% 14.3% 1,554 1,900 1,925 1.0% 11 493 FY19 FY20 FY21 Q1FY21 Q1F
Slide 11: Core Composition of Our Business
CORE COMPOSITION OF OUR BUSINESS Financial Overview TOTAL RESTAURANT COUNT TOTAL RESTAURANT REVENUE (AS OF SEPT 30, 2021) (FY21) 482 INR 10,167 mm 2 88 0% 1% 73 1,965 16% 19% 219 46% 5,897 2,217 58% 188 22% 37% KFC India Pizza Hut India Sri Lanka Business Other Business Source: Company data 11
Slide 12: Core Composition of Our Business: KFC India
CORE COMPOSITION OF OUR BUSINESS: KFC INDIA Financial Overview AS OF MAR 31, 2020 AS OF MAR 31, 2021 AS OF JUN 30, 2021 / FOR FY20 /FOR FY21 /FOR Q1FY22 Total Restaurant Count 187 203 208 Average Daily Sales per Restaurant (INR‘000s) 130 106 105 23.9% 245.5% vis a vis FY20 vis a vis Q1FY21 Restauran
Slide 13: Core Composition of Our Business: Pizza Hut India
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA Financial Overview AS OF MAR 31, 2020 AS OF MAR 31, 2021 AS OF JUN 30, 2021 / FOR FY20 /FOR FY21 /FOR Q1FY22 Total Restaurant Count 174 162 171 Average Daily Sales per Restaurant (INR‘000s) 58 48 49 33.7% 203.2% vis a vis FY20 vis a vis Q1FY21 Restau
Slide 14: Core Composition of Our Business: Pizza Hut India
CORE COMPOSITION OF OUR BUSINESS: PIZZA HUT INDIA Financial Overview Retain product quality and dining experience Transformed Value Positioning on Omni-channel smaller Business par with other QSR size stores Model brands Cost optimization Source: Company data 14
Slide 15: Core Composition of Our Business: Sri Lanka Operations
CORE COMPOSITION OF OUR BUSINESS: Financial Overview SRI LANKA OPERATIONS AS OF MAR 31, 2020 AS OF MAR 31, 2021 AS OF JUN 30, 2021 / FOR FY20 /FOR FY21 /FOR Q1FY22 Total Restaurant Count 64 70 69 Average Daily Sales per Restaurant (INR‘000s) 87 90 92 3.6% 51.7% Restaurant Related vis a vis FY20 vis
Slide 16: Business Update and Outlook
BUSINESS UPDATE AND OUTLOOK Financial Overview Sapphire opened its 500th store in November 2021, a significant milestone in our growth journey. We expect to continue on this growth trajectory and expect to double our store count in next 3-4 years Dine-in at the restaurants are continuing to witness
Slide 17: Key Highlights
Key Highlights
Slide 18: Key Investment Highlights
Key KEY INVESTMENT HIGHLIGHTS Investment Highlights 1 Large addressable food service market driven by macro fundamentals and industry tailwinds 2 Leading QSR brands with differentiated product and value offerings 3 Strong relationship with YUM 4 Continuous focus on delivering great customer experien
Slide 19: Large Addressable Food Service Market
Key LARGE ADDRESSABLE FOOD SERVICE MARKET DRIVEN BY Investment Highlights MACRO FUNDAMENTALS AND INDUSTRY TAILWINDS ORGANIZED FOOD SERVICES QSR PROJECTED TO MARKET IS EXPECTED TO GROW GROW FASTER AT A CAGR OF 15% FROM (CONTRIBUTION FROM 47% IN FY20-25 AND PROJECTED TO FY20 TO 54% IN FY25 OF REACH IN
Slide 20: Leading QSR Brands with Differentiated Product and Value Offerings
Key LEADING QSR BRANDS WITH DIFFERENTIATED PRODUCT Investment Highlights AND VALUE OFFERINGS Second largest Largest QSR chain pizza chain in serving chicken India and in India and largest pizza chain the world (1) in Asia (2) No. of 1,360 488 481 440 265 Restaurants (3) Source: Technopak industry re
Slide 21: Key Pillars of Our Customer Proposition
Key LEADING QSR BRANDS WITH DIFFERENTIATED PRODUCT Investment Highlights AND VALUE OFFERINGS KEY PILLARS OF OUR CUSTOMER PROPOSITION Differentiated Freshly Made Menu Straddling Consistent with Value Offerings Omni-channel Product Offerings Products All Parts of the Global Platform day Standards Sour
Slide 22: Strong Relationship with YUM
Key Investment Highlights STRONG RELATIONSHIP WITH YUM YUM BRANDS IS ONE OF THE GLOBAL FOOD BRAND OPERATORS WITH MORE THAN 50,000 RESTAURANTS WORLDWIDE (1) Economies of scale Access to YUM’s global because of ‘One System’ expertise commercial negotiations 22 Source: Technopak industry report, compan
Slide 23: Strong Relationship with YUM: Franchise Terms
Key Investment Highlights STRONG RELATIONSHIP WITH YUM Under franchisee arrangement YUM has provided us rights to operate stores as one of the franchisee operator in FRANCHISEE Indian subcontinent in the specified Territories ARRANGEMENT With respect to each store is 10 years (Original term) + 10 ye
Slide 24: Omni Channel Platform and Enhanced Digital Ecosystem
Key OMNI CHANNEL PLATFORM AND ENHANCED DIGITAL Investment Highlights ECOSYSTEM OMNI CHANNEL ALLOWS OPTIMAL USE OF ASSETS DINE IN - CONTEMPORARY CUSTOMER EXPERIENCE DELIVERY - HYBRID MODEL OF OWN AND THIRD-PARTY AGGREGATORS 21% 24% 42% Income from Delivery Channel (1) 3,364 (INR mm) 2,611 2,016 TAKE
Slide 25: Operational Excellence Led by In-House Supply Chain
Key OPERATIONAL EXCELLENCE LED BY IN-HOUSE SUPPLY CHAIN, Investment Highlights FINANCIAL PROCESSES AND TECHNOLOGY INFRASTRUCTURE FOOD TECHNOLOGICAL FINANCIAL CONTROLS SUPPLY CHAIN INITIATIVES SAFETY PROCESS INFRASTRUCTURE AND GOVERNANCE Global standards of Direct relationships Restaurant-level SAP R
Slide 26: Scalable New Restaurant Economic Model for Expansion
Key SCALABLE NEW RESTAURANT ECONOMIC MODEL FOR Investment Highlights EXPANSION India India As of 31-Mar-19 FY20-21 Recent As of 31-Mar-19 FY20-21 Recent Avg Size of Restaurant 2,736 1,645 (1) 1,400-1,500 (2) 2,427 1,480 (1) 1,200-1,300 (2) (in Sq. ft.) Reduction in Avg Restaurant size by ~40% (3) Re
Slide 27: Experienced Leadership Supported by Marquee Investors
Key EXPERIENCED LEADERSHIP SUPPORTED BY MARQUEE Investment Highlights INVESTORS TOP MANAGEMENT BOARD OF DIRECTORS Sanjay Purohit Sunil Rewachand Sanjay Purohit ◼ Levi Strauss & Co India Whole time Director and Chandiramani Whole Time Director Group CEO Chairman and Independent ◼ Cadbury India Limite
Slide 28: Future Strategies
Future Strategies
Slide 29: We Are Well Positioned to Capture Future Opportunities
WE ARE WELL POSITIONED TO CAPTURE FUTURE Future Strategies OPPORTUNITIES Explore acquisition of Accelerate conversion Pursue high quality and from unorganized food Organic scalable QSR and food services to KFC and Growth Inorganic brands in existing and PH brands Growth new geographies.. Capability
Slide 30: Key Takeaway for Investors
KEY TAKEAWAY FOR INVESTORS Two global brands Focus on customer (KFC & Pizza Hut) with scale experience and and EBITDA profitability operational excellence Value based work culture enabled by professional and experienced management New store expansion model Capability and capital to with focus on sma
Slide 31: Thank You
THANK YOU For Further Information, please contact: Company: Investor Relations Partner: Sapphire Foods India Limited Orient Capital (a division of Link Group) CIN: U55204MH2009PLC197005 Mr. Ashish Chovatia Mr. Rahul Kapoor Email ID: ashish.chovatia@linkintime.co.in Email ID: rahul.kapoor@sapphirefoo
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