Restaurant Brands Full Year Results Announcement

17 April 2018
NZX/ASX


RESTAURANT BRANDS DELIVERS RECORD PROFIT

$NZm
2018 2017

Change ($) Change (%)
Total Group Sales 740.8 497.2 +243.6 +49.0
Group NPAT (reported) 35.5 26.0 +9.5 +36.6
Group NPAT (excl. non-trading) 40.4 30.6 +9.8 +32.0

Full Year Dividend (cps) 28.0 23.0 +5.0 +21.7

*52 weeks ended 26 February 2018

Highlights

• Reported Net Profit after Tax at a new high of $35.5 million, up +36.6%.

• Net Profit after Tax (excluding non-trading items) also reached a record high of $40.4 million, up
+32.0%.

• Successful completion of the 82 store Pacific Island Restaurants Inc. (PIR) acquisition in Hawaii in
March 2017 and a further 18 KFC stores acquired in Australia during the period.

• Total Group Sales of $740.8 million, up 49.0%, with the bulk of this $243.6 million increase
attributable to the PIR acquisition in Hawaii and the full year impact of the Australian operations
which were acquired during FY17.

• Combined brand EBITDA
1
of $121.9 million, up 41.5% or $35.8 million with $24.1 million of the
increase resulting from the PIR acquisition, with the Australian KFC business accounting for a further
$7.1 million and the New Zealand businesses driving the remaining $4.6 million.

• Directors have declared a record final dividend of NZ18.0 cents per ordinary share, up +33.3%.


Overview

The past year has seen successful execution of Restaurant Brands’ major growth strategies as the company
continued to expand its global reach through the acquisition of additional KFC stores in Australia and the
settlement of the Hawaiian acquisition. That initiative not only added a new geography, but also a new brand
with 37 Taco Bell stores (together with 45 Pizza Huts) being brought into the Restaurant Brands’ network.
The continued expansion into the Australian market with the acquisition of an additional 18 KFC stores in
New South Wales, brought total store numbers there to 61.

Integration of the recently acquired Australian stores and the Hawaiian business into the wider Restaurant
Brands Group has been relatively seamless with local management aligned with and actively pursuing the
company’s growth strategies in each of their individual markets.

The company’s recent acquisitions are delivering additional diversification with nearly half of FY18 Group
sales now generated offshore. Pleasingly, this expansion growth has been accomplished whilst also
continuing to achieve significant sales and earnings growth in the New Zealand market and from existing
stores in Australia.
1

1
EBITDA is earnings before interest, tax, depreciation and amortisation. It is a non-GAAP financial measure and is not
prepared in accordance with NZ IFRS

RESTAURANT BRANDS NEW ZEALAND LIMITED

Group Operating Results

Directors are pleased to report that Restaurant Brands has produced a net profit after tax (NPAT) for the
period ended 26 February 2018 (FY18) of $35.5 million, up 36.6% on the reported NPAT of $26.0 million for
the prior year.

After allowing for the impact of non-trading items, the underlying NPAT was $40.4 million, up $9.8 million or
+32.0% on prior year.

Chairman Ted van Arkel said “This level of profitability is a new record for the company and more importantly
the growth is not only coming out of new acquisitions as existing operations are also delivering solid results.”

Total brand sales for the Group were a record $740.8 million, up $243.6 million or +49.0% on FY17 with the
benefit of $167.5 million in additional sales generated from PIR in Hawaii from 7 March 2017. KFC
operations in Australia delivered a strong performance with sales up $54.7 million, from both organic growth
and the acquisition of 18 stores during the year. The New Zealand business also delivered record sales of
$421.4 million, up 5.4%. Other revenue (primarily sales to independent franchisees) totalled $25.5 million,
bringing total operating revenue to $766.3 million, up $248.7 million on prior year.

Ted van Arkel added “The board and I are delighted with the progress of Restaurant Brands towards its
stated target of $1 billion in annual revenues. Sales have almost doubled over the past two years and there
is every indication of continued momentum of sales growth.”

Combined brand EBITDA of $121.9 million was up $35.8 million or +41.5% on prior year, with a $24.1 million
contribution from the newly acquired Hawaiian operations.

Restaurant Brands’ store numbers now total 314, comprising 171 in New Zealand, 82 in Hawaii and 61
stores in Australia.

New Zealand Operations

New Zealand operating revenue was $446.8 million, up $26.4 million or +6.3% on FY17.

Total store sales were $421.4 million, an increase of $21.4 million or +5.4% on last year, delivering EBITDA
of $75.8 million, a $4.6 million or +6.5% increase on FY17. This was largely as a result of the continued
strong performance of the KFC business.

New Zealand operations produced earnings before interest and tax (EBIT) (before non-trading items) of
$44.7 million, up 18.6% on the prior year.

KFC New Zealand

$NZm
2018 2017 Change ($) Change (%)
Network Sales 339.4 314.9 +24.5 +7.8
Network Store Numbers 100 98

RBD Sales 319.6 296.5 +23.1 +7.8
RBD Store Numbers 94 92

RBD EBITDA 66.0 61.4 +4.6 +7.4
EBITDA as a % of Sales 20.6 20.7


KFC New Zealand continues to be a key driver of overall performance and this brand has had another
excellent year. Sales were up 7.8% to $319.6 million, with same store sales up 6.2%. Successful product
promotions and the introduction of a delivery service in selected stores contributed to this strong sales
performance.

Despite some input cost pressures, margins remained strong, with an EBITDA margin of 20.6% of sales
being delivered in the period. In dollar terms, EBITDA totalled $66.0 million, up 7.4% on last year’s result.

KFC in New Zealand reached a new milestone of 100 total network stores with company-owned store
numbers increasing by two to a total of 94.

The brand opened a new format store in Fort Street, Auckland in September. This new concept store design
was customised for a central city environment with no drive-through facility. It has significantly outperformed
expectations and is likely to be the prototype for a number of similar central city stores in both New Zealand
and Australia. The other store opening during the year was at Christchurch Airport and this is also
performing above expectations.

Pizza Hut New Zealand

$NZm
2018 2017 Change ($) Change (%)
Network Sales 100.7 91.6 +9.1 +10.0
Network Store Numbers 97 93

RBD Sales 41.1 40.5 +0.6 +1.5
RBD Store Numbers 36 35

RBD EBITDA 3.1 4.1 -1.0 -24.6
EBITDA as a % of Sales 7.4 10.0


Transformation of the Pizza Hut network in New Zealand to a master franchise model continues on plan.
The commencement of an aggressive new store build programme during the year has progressed the
expansion of the independent franchisee network.

This continued growth saw total brand sales sales climb to $100.7 million for FY18, up $9.1 million or
+10.0% on prior year.

During the period three new company stores were opened in Tamatea, Glenfield and Te Ngae and one new
franchisee store opened in Howick. The company sold two existing stores to independent franchisees. The
number of company owned stores therefore increased by one to 36 while the number of independent
franchisee stores has increased to 61, bringing the total Pizza Hut network to 97 stores.

In company owned stores, sales were up $0.6 million to $41.1 million, with same store sales up 8.1%.

Restaurant Brands’ Pizza Hut store earnings were $3.1 million (7.4% of sales), down $1.0 million or 24.6%
on last year, reflecting some margin pressures, particularly in relation to increased labour rates and
ingredient costs.

Starbucks Coffee New Zealand

$NZm
2018 2017 Change ($) Change (%)
Sales 25.8 26.7 -0.9 -3.3
Store Numbers 22 24

EBITDA 4.8 4.8 +0.0 +1.1
EBITDA as a % of Sales 18.6 17.8

Note: all Starbucks Coffee stores are RBD owned

The company’s smallest brand, Starbucks Coffee, produced another consistent result.

Total sales were down marginally on FY17 to $25.8 million, reflecting the reduced store network of 22 stores,
following the closure of the Newmarket and Botany stores in Auckland as a result of leases not being
renewed because of landlord re-developments. Same store sales were positive at +6.3%.

Margins improved slightly with continuing sales leverage and store efficiencies. The brand achieved an
EBITDA of $4.8 million (18.6% of sales), up slightly on FY17 despite the reduced number of stores.

Carl’s Jr. New Zealand

$NZm.
2018 2017 Change ($) Change (%)
Sales 34.9 36.3 -1.4 -3.9
Store Numbers 19 19

EBITDA ($m) 2.0 1.0 +1.0 +105.7
EBITDA as a % of Sales 5.7 2.7

Note: All Carl’s Jr. stores are RBD owned

Progress continues to be made in building Carl’s Jr. into a profitable, sustainable brand in New Zealand; the
focus for FY18 being on generating more profitable sales, rather than driving volume through discounting
and promotional activity.

As a result of these efforts, EBITDA was $2.0 million (5.7% of sales), an increase of $1.0 million or just over
double that in the prior year.

Store numbers remained stable at 19 stores and sales were down 3.9% (-2.6% on a same store basis), as a
result of rolling over FY17 sales promotion activity as well as the opening two new stores in Christchurch in
that year.

Australian Operations

In $NZ terms, the Australian business (operating the KFC brand) contributed total sales of $NZ151.8 million,
store EBITDA of $NZ22.0 million and EBIT of $NZ9.8 million. These results are all significantly up on the
prior year, because of the acquisition of this business having taken place in April 2016, part way through
FY17 as well as additional store acquisitions during FY18.

KFC Australia

$Am
2018 2017 Change ($) Change (%)
Sales 139.5 92.5 +47.1 +50.9
Store Numbers 61 42

EBITDA 20.2 14.2 +6.0 +42.1
EBITDA as a % of Sales 14.5 15.4


In $A terms, total sales for the KFC business in Australia were $A139.5 million, up A$47.1 million (or
+50.9%) on last year. This was a function of both the full impact of the acquisition of QSR Pty Limited which
only became effective partway through FY17 and increased store numbers following the acquisition of the
business assets of five stores at the start of this financial year and a further 13 stores in the second half of
FY18. Same store sales increased +4.9%.

Store EBITDA of $A20.2 million (14.5% of sales) was up $A6.0 million or +42.1% on last year.

As part of the Australian market expansion strategy, over the FY18 year Restaurant Brands acquired the
business assets of 18 KFC stores in New South Wales at a total price of $A46.5 million. Five stores were
acquired in March 2017 and the remainder were acquired between October 2017 and January 2018. With
the successful completion of these transactions, together with the opening of one new store early in the third
quarter, the company-owned KFC store network in Australia totalled 61 stores at balance date.

Hawaii Operations

RBD acquired PIR in Hawaii effective 7 March 2017 and the reported trading results are from that date. The
Hawaiian business (which also includes operations in Guam) operates 82 stores under the Taco Bell and
Pizza Hut brands.

In $NZ terms, the newly-acquired Hawaiian operations contributed $NZ167.5 million in revenues, $NZ24.1
million in brand EBITDA and an EBIT of $NZ9.7 million since acquisition.

Total sales in Hawaii in the period since acquisition were $US119.8 million with store level EBITDA of
$US17.2 million. Taco Bell performed ahead of expectations at the time of purchase with Pizza Hut running
slightly below expectations.

Taco Bell Hawaii

$USm.
2018 2017 Change ($) Change (%)
Sales 68.3 - +68.3 n/a
Store Numbers 37 -

EBITDA 13.9 - +13.9 n/a
EBITDA as a % of Sales 20.3 -
- -

Taco Bell is a new brand for the company and is performing very well with total sales to date of $US68.3
million and store-level EBITDA of $US13.9 million (20.3% of sales). A strong promotional pipeline has helped
drive a solid sales performance.

Restaurant Brands has embarked on a store rebuild and refurbishment strategy for these stores following the
same successful programme as undertaken for the KFC business in New Zealand. The one store that has
been transformed to date has delivered same store sales growth of +60%, with a further three stores
scheduled for major refurbishment over the next 18 months.

Pizza Hut Hawaii

$USm
2018 2017 Change ($) Change (%)
Sales 51.5 - +51.5 n/a
Store Numbers 45 -

Store EBITDA 3.3 - +3.3 n/a
EBITDA as a % of Sales 6.5 -


The Pizza Hut business in Hawaii has integrated well into the Group’s operations.

Total sales were $US51.5 million with store-level EBITDA of $US3.3 million (6.5% of sales). There has been
some margin pressure from participating in US-wide value-led marketing promotions together with some
higher commodity costs and rising direct labour expense.

As with Taco Bell, an asset refurbishment program is planned for the Pizza Hut brand. This will see a move
away from the larger style restaurants into smaller, more cost-effective delivery and carry out (delco) units.
One new delco unit was opened at Pearl City in Honolulu just after balance date and this is trading ahead of
expectations.

Corporate & Other

General and administration (G&A) costs were $34.1 million, up $13.7 million from last year. The increase in
the G&A cost base was due to the Hawaiian acquisition ($7.5 million), the full impact of Australian operations
(purchased part way through FY17 ($1.2 million)), and the new corporate structure established during the
period to meet the demands arising from the changes in size and geography of the Group’s operations.
G&A as a % of total revenue was 4.4%, up from 3.9% in the FY17 year.

Depreciation charges of $28.7 million for FY18 were $6.5 million higher than the prior year, of which the
Hawaiian business accounted for $5.9 million.

Financing costs of $5.6 million were up $3.3 million on prior year reflecting the higher borrowings required to
fund the Hawaiian and Australian acquisitions.

Tax expense was $16.7 million, up $5.6 million on the prior year due to higher reported profit levels. The
effective tax rate of 32.0% reflects the increased proportion of profits that were generated off-shore, and the
(one off) impact of non-trading items, with the average tax rate on earnings (excluding non-trading items) at
29.1%.

Non-trading Items

Non-trading expenditure for the year was $4.8 million, a similar level to the prior year. The FY18 figure
included transaction costs on the PIR acquisition and acquisitions in Australia, listing fees and legal costs
relating to the listing of the company on the Australian Securities Exchange (ASX) and an impairment
(primarily to goodwill) to Carl’s Jr. carrying value in New Zealand. These costs were partially offset by a
realised FX gain arising from the forward contracts used in the PIR Hawaiian acquisition and a gain on sale
of assets in relation to the sale of New Zealand Pizza Hut businesses to independent franchisees and the
sale and leaseback of a KFC store.

Cash Flow & Balance Sheet

The composition of the Group’s balance sheet has been impacted by two significant transactions over the
year; the completion of the acquisition of PIR in Hawaii on 7 March 2017, together with the significant
additional Australian KFC store acquisitions. These transactions, for a total purchase price of $NZ149.9
million and $NZ51.2 million respectively (before settlement adjustments), were funded pri marily through cash
raised from the issue of shares by a renounceable entitlement offer and private placement carried out in
FY17, together with additional debt facilities.

Bank debt at the end of the year was consequently up to $166.8 million compared to $46.5 million at the
previous year end. As at balance date, the Group had bank debt facilities totalling $253 million in place.

Operating cash flows were up $19.9 million to $67.8 million reflecting the Group’s increased profitability.

Net investing cash outflows at $173.3 million (versus $79.0 million last year) primarily reflected the impact of
the Hawaii and Australian acquisitions with a cash impact of $147.5 million (net of bank loans assumed as
part of the transaction). Investing cash inflows for the period were due to $3.8 million received from the sale
of two Pizza Hut stores and the sale and leaseback of a KFC store.

Dividend

Directors have declared a fully imputed final dividend of NZ18.0 cents per ordinary share (prior year NZ13.5 cents),
payable on 22 June 2018 to all shareholders on the register on 1 June 2018. A supplementary dividend of
NZ3.17645 cents per share will be paid to all overseas shareholders at the same time.

“Directors continue to have considerable confidence in the company’s ability to grow both profit and cash flow and
want to reward shareholders for what has been a very good year for Restaurant Brands,” says Chairman Ted van
Arkel.

The dividend reinvestment plan will apply to this dividend. For those participating in the plan, shares will be issued
in lieu of dividend at a discount of 1.5% to the pre-closing 7 day NZX volume-weighted-average price (VWAP).

Listing on the Australian Securities Exchange

In September 2017 Restaurant Brands dual-listed on the Australian Securities Exchange (ASX) under the ticker
code RBD. This listing has allowed the Company to better engage with its Australian investors and also provides
opportunities to access additional pools of capital that may be required as part of future acquisition strategies.

Outlook

The full effects of two major acquisitions is evident in this year’s financial results with sales almost doubling
over the last two years and NPAT (excluding non-trading items) increasing from $24.2 million to $40.4 million
over the same period. The new management team structure established has created a strong leadership
platform from which Restaurant Brands is well positioned to pursue further international growth opportunities.

From a sound, established position in both the Australian and US (Hawaii) markets the company now has
significant scope to expand further in both these geographies through acquisition, store refurbishments and
organic growth. At the same time, organic growth opportunities within the New Zealand business will be
pursued.

The company is not anticipating any significant change in the economic and competitive environment or
unusual costs in the new financial year. With a consistent performance from the existing store network and
the full year effect of the additional stores acquired in Australia in the second half of the 2018 financial year,

directors expect the company will deliver a NPAT (excluding non-trading items) result for the new financial
year of at least 10% above current year’s results. Further details will be provided at the Annual Shareholders’
Meeting.

Annual Shareholders’ Meeting

The Annual Shareholders’ Meeting of the company will be held in Wellington, New Zealand on Thursday 21
June 2018.For further information please contact:

Russel Creedy Grant Ellis
Group CEO Group CFO/Company Secretary
Phone: 525 8010 Phone: 525 8700


ENDS



About Restaurant Brands:

Restaurant Brands New Zealand Limited operates the KFC, Pizza Hut, Carl’s Jr. and Starbucks Coffee
brands in New Zealand, the KFC brand in Australia and the Taco Bell and Pizza Hut brands in Hawaii and
Guam. These brands - five of the world's most famous - are distinguished for their product, ambience,
service and for the total experience they deliver to their customers in New Zealand and around the world.

Consolidated Income Statement
For the 52 week period ended 26 February 2018
26 February 2018vs Prior27 February 2017
52 weeks%52 weeks
$NZ000's
Sales
KFC319,598 7.8296,465
Pizza Hut41,111 1.540,492
Starbucks Coffee25,818 (3.3)26,694
Carl's Jr.34,921 (3.9)36,347
Total New Zealand sales421,448 5.4399,998
KFC 151,844 56.297,181
Total Australia sales151,844 56.297,181
Taco Bell95,487 n/a-
Pizza Hut71,997 n/a-
Total Hawaii sales167,484 n/a-
Total sales740,776 49.0497,179
Other revenue25,513 25.220,370
Total operating revenue766,289 48.1517,549
Cost of goods sold(626,701)48.6(421,872)
Gross margin139,588 45.995,677
Distribution expenses (2,895)4.7(2,764)
Marketing expenses(40,095)42.7(28,107)
General and administration expenses(34,090)67.4(20,364)
EBIT before non-trading items62,508 40.744,442
Non-trading items(4,755)(6.1)(5,063)
EBIT57,753 46.739,379
Interest expense(5,604)144.6(2,291)
Net profit before taxation52,149 40.637,088
Taxation expense (16,683)49.9(11,133)
Total profit after taxation (NPAT)35,466 36.625,955
Total NPAT excluding non-trading40,361 32.030,567
% sales% sales
Concept EBITDA before G&A
KFC65,954 20.67.461,419 20.7
Pizza Hut3,060 7.4(24.6)4,058 10.0
Starbucks Coffee4,815 18.61.1
4,760 17.8
Carl's Jr.1,993 5.7105.7969 2.7
Total New Zealand75,822 18.06.571,206 17.8
KFC 22,026 14.547.214,964 15.4
Total Australia22,026 14.547.214,964 15.4
Taco Bell19,420 20.3n/a-
Pizza Hut4,681 6.5n/a-
Total Hawaii24,101 14.4n/a-
Total concept EBITDA before G&A121,949 16.541.586,170 17.3
Ratios
Net tangible assets per security (net
tangible assets divided by number of
shares) in cents
(36.1)87.7
Cost of goods sold are direct costs of operating stores: food, paper, freight, labour and store overheads.
Distribution expenses are costs of distributing product from store.
Marketing expenses are call centre, advertising and local store marketing expenses.
General and administration expenses (G&A) are non-store related overheads.

Non-GAAP Financial Measures
For the 52 week period ended 26 February 2018
The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice (“GAAP”) and comply
with International Financial Reporting Standards (“IFRS”). These financial statements include non-GAAP financial measures that
are not prepared in accordance with IFRS. The non-GAAP financial measures used in this presentation are as follows:
1. EBITDA before G&A. The Group calculates Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”)
before G&A (general and administration expenses) by taking net profit before taxation and adding back (or deducting) financing
expenses, non-trading items, depreciation, amortisation and G&A. The Group also refers to this measure as Concept EBITDA
before G&A.
The term
Concept
refers to the Group’s seven operating divisions comprising the New Zealand divisions (KFC, Pizza Hut,
Starbucks Coffee and Carl’s Jr.), KFC Australia and the two Hawaii divisions (Taco Bell and Pizza Hut). The term G&A
represents non-store related overheads.
2.
EBIT before non-trading.
Earnings before interest and taxation (“EBIT”) before non-trading is calculated by taking net profit
before taxation and adding back (or deducting) financing expenses and non-trading items.
3. Non-trading items. Non-trading items represent amounts the Group considers unrelated to the day to day operational
performance of the Group. Excluding non-trading items enables the Group to measure underlying trends of the business and
monitor performance on a consistent basis.
4.
EBIT after non-trading items.
The Group calculates EBIT after non-trading items by taking net profit before taxation and
adding back financing expenses.
5. Total NPAT excluding non-trading. Total Net Profit After Taxation (“NPAT”) excluding non-trading items is calculated by
taking profit after taxation attributable to shareholders and adding back (or deducting) non-trading items whilst also allowing
for any tax impact of those items.
6.
Capital expenditure including intangibles
. Capital expenditure including intangibles represents additions to property, plant
and equipment and intangible assets.
The Group believes that these non-GAAP measures provide useful information to readers to assist in the understanding of the
financial performance and position of the Group but that they should not be viewed in isolation, nor considered as a substitute for
measures reported in accordance with IFRS. Non-GAAP measures as reported by the Group may not be comparable to similarly
titled amounts reported by other companies.
The following is a reconciliation between these non-GAAP measures and net profit after taxation:
$NZ000'sNote*2018
2017
EBITDA before G&A1121,949 86,170
Depreciation(28,683)(22,152)
Loss on sale of property, plant and equipment (included in depreciation)23 (32)
Amortisation (included in cost of sales)(3,233)(2,342)
General and administration costs - area managers, general managers and support centre(27,548)(17,202)
EBIT before non-trading262,508 44,442
Non-trading items **3(4,755)(5,063)
EBIT after non-trading items457,753 39,379
Financing costs(5,604)(2,291)
Net profit before taxation 52,149 37,088
Income tax expense(16,683)(11,133)
Net profit after taxation35,466 25,955
Add back non-trading items4,755 5,063
Income tax on non-trading items140
(451)
Net profit after taxation excluding non-trading items540,361 30,567
* Refers to the list of non-GAAP measures as listed above.
** Refer to Note 2 of the financial statements for an analysis of non-trading items

---

Restaurant Brands New Zealand Limited
Results for announcement to the market

Reporting Period 52 week period ended 26 February 2018
Previous Reporting Period 52 week period ended 27 February 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$766,289 48.1%
Profit from ordinary
activities after tax
attributable to security
holder.
NZ$35,466 36.6%
Net profit attributable to
security holders.
NZ$35,466 36.6%

Interim/Final Dividend Amount per share Imputed amount per share
Final NZ 18 cents NZ 7.0 cents

Record Date 1 June 2018
Dividend Payment Date 22 June 2018

Comments: Refer to attached report


This report is based on accounts which have been audited. The report is provided
with the accounts which accompany this announcement.

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APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10.details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumberDate
Nature of event
BonusIf ticked,Rights Issue
Tick as appropriateIssuestate whether:Taxable/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
√
whether:
InterimYear
√
SpecialDRP Applies
√
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISI
N
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISI
N
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick i
f
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FWP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pm
Application Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice Date
Allotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:
Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:
Security Code:
Cease Quoting Old Security 5pm:
1 June 201822 June 2018
22 June 2018
$$0.012500$0.070000
NZD$0.031765
$19.781 Million
Date Payable
22 June, 2018
N/A
Enter N/A if not
applicable
In dollars and cents
Retained Earnings
$0.180000
Ordinary SharesNZRBDE0001S1
EMAIL: announce@nzx.com
Notice of event affecting securities
1
Restaurant Brands New Zealand Limited
G R EllisDirector's Resolution
09 525 872309 525 87111142018

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new growth.
New
horizons,
Restaurant Brands NZ Limited
2018 Full Year Results Presentation
Russel Creedy - Group CEO
Grant Ellis – Group CFO
Hamish Stevens - Director
17 April 2018
Restaurant Brands New Zealand Limited
1

•Highlights
•Results Overview
•New Zealand Operations
•Australia Operations
•Hawaii Operations
•Growth Opportunities
•Outlook
•Questions
•Summary
Presentation Outline
2

Highlights
Commentary (FY18 vs FY17)
•Group Sales +49.0%
•Reported NPAT (including non-trading) +36.6%
•N PAT (excluding non-trading) +32.0%
•Brand EBITDA +41.5% driven by PIR Hawaii
•Fully imputed 18.0cps final dividend bring full year
to 28.0 cps (+21.7%)
•Hawaiian expansion with settlement of PIR
acquisition
•Purchase of 18 KFC stores in Australia
FY16FY17FY18
$387.6m$497.2m$740.8m
$24.1m $26.0m$35.5m
$24.2m$30.6m$40.4m
$66.9m$86.2m$121.9m
21.0cps23.0cps28.0cps
3

RESULTS OVERVIEW
4

Australia (QSR) and Hawaii (PIR) added strongly to store sales and margin growth
New Zealand
,
387.6
New Zealand,
400.0
New Zealand
,
421.4
Australia
,
97.2
Australia,
151.8
Hawaii, 167.5
FY 16FY 17FY 18
Sales Contribution ($NZm)
387.6
497.2
740.8
New Zealand,
66.9
New Zealand,
71.2
New Zealand,
75.8
Australia, 15.0
Australia
, 22.0
Hawaii, 24.1
FY 16FY 17FY 18
EBITDA Contribution ($NZm)
66.9
86.2
121.9
5

G&A costs were up to 4.4% of revenues with new acquisitions but will revert to
targeted longer term norm of 4.0%
16.4
16.8
18.0
3.6
4.9
7.5
3.7
4.1%
3.9%
4.4%
FY16FY17FY18
G&A $m NZG&A $m AustraliaG&A $m HawaiiG&A $m CorporateG&A % of Revenue
20.4
34.1
G&A costs $NZm
6

Non-trading item costs similar to prior year
Non-trading itemsFY17FY18B/(W)
$m $m Δ$m
Net gain on sale of Pizza Hut stores(0.7)(0.5)(0.2)
Gain on sale and leaseback(0.4)(0.4)-
Acquisition costs3.91.62.3
Store closure costs1.7 0.3 1.4
ASX listing costs-0.6 (0.6)
Franchise rights amortisation0.6 1.9 (1.3)
Impairment of goodwill-1.2 (1.2)
Impairment of assets-0.9 (0.9)
FX Gain on acquisitions-(0.8)0.8
5.1 4.8 0.3
7

Operating cash flows up 42% in line with profitability
Investing cash flows (excluding acquisitions and divestments) in line with larger asset base
44.3
47.9
67.8
20.8
20.3
31.1
F Y16F Y17
F Y18
Cash
Fl ows
$NZm
Group Cash Flow
Operating Net Inflows
Other Investing Net Outflows
8

Borrowings were up following acquisitions but well within facility levels ($253 million)
RatiosFY16
FY17FY18
Net Debt: EBITDA0.20.6
1.7
Gearing (D:D+E) 13%19%
44%
12.7
46.5
166.8
FY 16
FY 17FY 18
Bank Debt $NZm
9

Full year dividend up 21.7% to 28.0 cents per share commensurate with profitability (fully
imputed at 28%)
FY16FY17FY18
Earnings per share (excluding non-trading)cps24.728.432.8
Total dividendcps21.023.028.0
Payout ratio of NPAT (excluding non-trading)%85%81%85%
10

New Zealand Operations
11

New Zealand total sales of $421.4m (+5.4%) led by KFC
282.5
296.5
319.6
6.3%
3.6%
6.2%
FY 16FY 17FY 18
KFC Sales
T otal S ales $m
Same Store Sales %
26.8
26.7
25.8
6.9%
4.5%
6.3%
FY 16FY 17FY 18
Starbucks Sales
T otal S ales $mSame Store Sales %
33.4
36.3
34.9
-5.1%
-3.8%
-2.6%
FY 16FY 17FY 18
Carl's Jr. Sales
T otal S ales $mSame Store Sales %
44.9
40.5
41.1
2.6%
3.6%
8.1%
FY 16FY 17FY 18
Pizza Hut Sales
T otal S ales $mSame Store Sales %
12

New Zealand earnings up similarly (+6.5%)
57.2
61.4
66.0
20.2%
20.7%
20.6%
FY 16FY 17
FY 18
KFC EBITDA
EBITDA $mEBI TDA % of S ale s
4.9
4.1
3.1
10.9%
10.0%
7.4%
FY 16
FY 17
FY 18
Pizza Hut EBITDA
EBITDA $mEBI TDA % of S ale s
4.4
4.8
4.8
16.4%
17.8%
18.6%
FY 16FY 17FY 18
Starbucks EBITDA
EBITDA $m
EBI TDA % of S ale s
0.4
1.0
2.0
1.3%
2.7%
5.7%
FY 16FY 17FY 18
Carl's Jr. EBITDA
EBITDA $mEBI TDA % of S ale s
13

KFC performance remains pivotal to NZ operations
KFC, 296.5
KFC, 319.6
Pizza Hut, 40.5
Pizza Hut, 41.1
Starbucks, 26.7
Starbucks, 25.8
Carl's Jr., 36.3
Carl's Jr., 34.9
FY 17FY 18
NZ Sales $m
400.0
421.4
KFC, 61.4
KFC, 66.0
Other, 9.9
Other, 9.9
FY 17FY 18
NZ EBITDA $m
71.2
75.8

KFC new store builds maintain momentum with 100
th
store opened in FY18
KFC Fort St
FY17FY18FY19
RBD92Fort St*94
Wellington Central *96
Christchurch AirportBombay
Independent Franchisees666
98100102
* Urban des ign (CBD)
15

KFC sales up 7.8% on steady same store growth. Margins remain stable at upper end of
range
•Another year of record sales with successful promotions and increased and effective marketing spend
•EBITDA margin remains above 19-20% range assisted by sales leverage, and stable input costs, but labour and
marketing expenditure
282.5
296.5
319.6
6.3%
3.6%
6.2%
FY 16FY 17FY 18
KFC Sales
T otal S ales $mSame Store Sales %
57.2
61.4
66.0
20.2%
20.7%
20.6%
FY 16FY 17FY 18
KFC EBITDA
EBITDA $m
EBI TDA % of S ale s

Pizza Hut system sales growth remains strong with total sales at $100m (+10%). RBD stores SSS
+8.1% but margins tight with some pressure from ingredient and labour cost increases
4.9
4.1
3.1
10.9%
10.0%
7.4%
FY16FY17FY18
Pizza Hut EBITDA
EBITDA $mEBITDA % of Sales
44.9
40.5
41.1
41.2
51.1
59.6
F Y16F Y17F Y18
Pizza Hut Total System Sales ($m)
Sales ($m) RBD Owned StoresSales ($m) IF Owned Stores
100.7
+10.0%
91.6
+6.4%
86.1
+7.2%
17

Sales of Pizza Hut stores to independent franchisees continues. Increased focus on new
store builds. RBD on track to a concentrated core holding (c. 20 stores) with continued
store growth in Pizza Hut network
39
35
36
50 58
61
F Y16F Y17F Y18
R BDInd epend en ts
97
93
89
18

Starbucks Coffee – “cash cow”
4.4
4.8
4.8
16.4%
17.8%
18.6%
FY16FY17FY18
Starbucks EBITDA
EBITDA $mEBITDA % of Sales
26.8
26.7
25.8
6.9%
4.5%
6.3%
FY 16FY 17
FY 18
Starbucks Sales
T otal S ales $mSame Store Sales %
19

Carl’s Jr. saw a focus on margin improvement this year, more than
doubling earnings. Still an ongoing project
0.4
1.0
2.0
1.3%
2.7%
5.7%
FY16FY17FY18
Carl's Jr. EBITDA
$NZM
EBITDA $mEBITDA % of Sales
33.4
36.3
34.9
-5.1%
-3.8%
-2.6%
FY 16
FY 17FY 18
Carl's Jr. Sales
T otal S ales $mSame Store Sales %
20

Strategic Agenda – New Zealand
•Resolve Starbucks position
•Formalise master franchise for Pizza Hut
•Enhance Carl’s Jr. profitability with a view to further
development
•Build Pizza Hut network in NZ through independent franchisee
ownership (120+ stores)
•Maintain KFC margins and sales growth over long term
•New KFC store builds (2+ pa) with wider store design options
•Introduce a further brand to NZ
21

Australian Operations
22

The KFC business saw solid sales and earnings growth
SSS +4.9%
•Total sales up 56% with organic growth, full year trading (vs FY17) and acquisitions
•EBITDA up 47% with some softening of margin but 15% of sales sustainable
97.2
151.8
FY17FY18
Sales
NZ$m
Sales
15.0
22.0
FY17FY18
EBITDA
NZ$m
EBITDA
23

Store growth by acquisition saw store numbers up 45% by year end
42
61
8
10
1
O ri ginal
Acquis ition 2017
Purchases From
Smaller Franchis es
Acquired From
Y um!
New Store BuildsStores as at Feb
2018
Store
Numbers
24

Strategic Agenda - Australia
•Consolidaterecent acquisitions and above store structure
•Continue to acquire smaller independent KFC franchisees (primarily
NSW)
•New store builds in growth corridors and CBD locations
•Build KFC margins above current norms
•Acquire large parcels of KFC stores as and when opportunities permit
•Introduce another brand to Australia
25

Hawaii Operations
26

Total sales for FY18 delivered on business case with a stronger performance
by Taco Bell
Taco Be ll
, 66.8
Taco Be ll, 68.3
Pizza Hut, 55.6
Pizza Hut, 51.5
Yr 1 Business CaseFY 18 A c tual
Sales $USm
122.4
119.8
27

Taco Bell margins strengthened while Pizza Hut was impacted by US national
value campaigns and labour cost pressures
Taco Be ll, 12.9
Taco Be ll, 13.9
Pizza Hut, 6.1
Pizza Hut, 3.3
Yr 1 Business CaseFY 18 A c tual
EBITDA $USm
19.0
17.2
28

The network transformation process is underway
Kailua Taco Bell
YTD SSS +60%
FY2018FY2019
Pizza Hut-New Stores12
-Minor refurbis hments1-
-Major refurbis ments
-
2
Taco Bell-New s tores-1
-Minor refurbis hments23
-Major refurbis hments34
-Transformations12
29

Strategic Agenda -Hawaii
•Return Pizza Hut to positive SSS growth and margins above current levels
•Drive new store buildsand transformations of Taco Bell brand
•Accelerate move out of large Pizza Hut red roof stores into smaller delcos
•Build new delcos
•KFC business in Hawaii (by acquisition or new store builds)
30

GROWTH OPPORTUNITIES
There are considerable network growth possibilities in existing markets; however the US mainland
presents a step-change opportunity
New ZealandAustraliaHawaiiUS
•Store builds•Store builds
•Small franchisee
acquisitions
•Large acquisition
•Potential acquisition
•New store builds
•Potential acquisition
(beach head)
•Store builds
(network)
-•Relocations
•New store builds
•Potentialentry•Potentialentry•New store builds
•Transformations
•Potential acquisition
(beachhead)
31

OUTLOOK
Current strategies across all geographic markets are delivering positive results.
The Taco Bell and Pizza Hut brands in Hawaii have delivered a solid contribution in the
first period of ownership. The opportunity there, is network enhancement through
new store builds and transformations
Australian store acquisitions continue to add to growth in that market
KFC New Zealand continues to strongly underpin continuation of profit growth in that
market
Absent any major changes to economic or market conditions, the Group will deliver a
Net Profit after Tax (excluding non-trading items) for the FY19 year of at least 10%
above current year’s performance
32

QUESTIONS
33

SUMMARY
•FY18 – a record year with sales of $741 million (+49%) and NPAT (excluding non-trading) of
$40.4m (+32%)
•Hawaiian acquisition in nearly a full year’s trading performed close to expectations
•Major expansion of Australia KFC beachhead with 18 stores acquired (increase of 43%)
•NZ business continues to provide a strong base
•Final dividend of 18 cps (+33%) for a full year of 28 cps
•Potential growth opportunities in the US
34