Macquarie Australia Investor Conference Presentation

RUSSEL CREEDY
GROUP CHIEF EXECUTIVE OFFICER
RESTAURANT BRANDS NEW ZEALAND LIMITED (RBD)
GRANT ELLIS
GROUP CHIEF FINANCIAL OFFICER
INVESTOR PRESENTATION
MAY 2018
1

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OUTLINE
Restaurant Brands 101
FY18 Results
New Zealand Operations
Australia Operations
Hawaii Operations
Growth Opportunities
Outlook
Questions
Summary

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RESTAURANT BRANDS
A CORPORATE FRANCHISEE, OPERATING ACROSS THE PACIFIC
SAIPAN & GUAM
AUSTRALIA
NEW ZEALAND
HAWAII

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SHARPLY FOCUSED GROWTH
STRATEGY THAT HAS TRANSFORMED
THE COMPANY INTO A MULTI-BRAND
INTERNATIONAL BUSINESS
Demonstrated execution capability with a track
record of store transformation and operational
excellence that can be replicated in new
acquisitions and across additional brands
Strong capital allocation capabilities that have
consistently grown returns for shareholders
RBD INVESTMENT THESIS
AN ATTRACTIVE INVESTMENT ON A NUMBER OF LEVELS
PROVEN CAPABILITY IN
MANAGING AND GROWING A HIGH
PERFORMING STABLE OF ICONIC,
BRANDED FOOD CHAINS
Consistent track record of continued
growth in revenues and earnings
World-class corporate franchisee with
recognised skills in marketing, facility
and supply chain management
INVESTMENT IN
STRONG CASH
GENERATING
BUSINESSES
Strong balance sheet
and cash flows
Consistent and growing
dividend yields

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GROUP FINANCIAL OVERVIEW
TRACK RECORD OF DELIVERING CONTINUED GROWTH EVIDENCED BY FY18 NUMBERS
TOTAL SALES (NZ$M)
329.3
359.5
387.6
497.2
740.8
FY14FY15FY16FY17FY18
TOTAL EBITDA (NZ$M)
53.5
61.5
66.9
86.2
121.9
FY14FY15FY16FY17FY18
TOTAL NPAT (excluding non-trading items)(NZ$M)
18.9
22.5
24.2
30.6
40.4
FY14FY15FY16FY17FY18
DIVIDEND PER SHARE (NZ cents)
16.5
19.0
21.0
23.0
28.0
FY14FY15FY16FY17FY18

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387.6
400.0
421.4
97.2
151.8
167.5
FY16FY17FY18
SALES CONTRIBUTION (NZ$M)
GROUP FINANCIAL OVERVIEW
AUSTRALIA (QSR) AND HAWAII (PIR) ADDED STRONGLY TO FY18 STORE SALES AND
MARGIN GROWTH, UNDERPINNED BY A STRONG NZ KFC PERFORMANCE
NEW ZEALAND
HAWAII
AUSTRALIA
EBITDA CONTRIBUTION (NZ$M)
66.9
71.2
75.8
15.0
22.0
24.1
FY16FY17FY18
387.6
497.2
740.8
66.9
86.2
121.9

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GROUP CASH FLOW (NZ$M)
GROUP FINANCIAL OVERVIEW
FY18 OPERATING CASH FLOWS UP 42% IN LINE WITH PROFITABILITY
INVESTING CASH FLOWS REFLECT LARGER ASSET BASE
OPERATING
NET INFLOWS
INVESTING
NET OUTFLOWS*
*Excluding acquisitions and divestments
44.3
47.9
67.8
20.8
20.3
31.1
FY16FY17FY18

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CAPITAL MANAGEMENT
FY18 SAW BANK DEBT UP ON AUSTRALIA AND HAWAII ACQUISITIONS BUT WELL WITHIN
FACILITY LIMITS AND WITHOUT ANY PRESSURE ON THE BALANCE SHEET
Net Debt: EBITDA1.7:1
Gearing (D:D+E)44%
BANK DEBT(NZ$M)
8.1
22.6
12.7
46.5
166.8
FY14FY15FY16FY17FY18
125
74
55
ACTUAL*FACILITY
WESTPAC (NZ$60M & A$60M)
FIRST HAWAIIAN (US$51M)
BTMU (A$50m)
FACILITY:
BANK DEBT (NZ$M)
253
166.8

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NEW ZEALAND
OPERATIONS

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STRONG REVENUES
THE NEW ZEALAND BUSINESS CONTINUED SOLID GROWTH
WITH FY18 SALES IN EXCESS OF $420M, LED BY KFC
SALES (NZ$M)
282.5
296.5
44.9
40.5
26.8
26.7
33.4
36.3
387.6
400.0
421.4
319.6
41.1
25.8
34.9
KFC
STARBUCKS
PIZZA HUT
CARL'S JR.
FY16FY17FY18

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EARNINGS MOMENTUM
KFC DRIVES NEW ZEALAND EARNINGS GROWTH
EBITDA (NZ$M)
57.2
61.4
66.0
4.9
4.1
3.1
4.4
4.8
4.8
0.4
1.0
66.9
71.2
75.8
KFC EBITDA
% SALES
20.2%20.7%20.6%
2.0
KFC
STARBUCKS
PIZZA HUT
CARL'S JR.
FY16FY17FY18

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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

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AUSTRALIA
OPERATIONS

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QLD
Queensland
c.130
restaurants
NSW
New South Wales
c.200 restaurants
ACT
c.15 restaurants
TAS
Tasmania
c.15 restaurants
VIC
Victoria
c.150 restaurants
SA
South Australia
c.50 restaurants
WA
Western Australia
c.40 restaurants
NT
Northern Territory
c.5 restaurants
KFC AUSTRALIA OPPORTUNITIES
THE KFC BUSINESS IN NSW CONTINUES TO EXPAND WITH NEWLY
ACQUIRED STORES AND ORGANIC SALES GROWTH
RBD61
Yum!50
Other Franchisees90
There are over 600 KFC
restaurants across Australia,
mostly held by franchisees

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EBITDA (NZ$M)SALES (NZ$M)
FY17FY18
FY18 SOLID SALES AND EARNINGS GROWTH
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
15.0
22.0
SSS +4.9%

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EXPANSION OF THE BEACHHEAD
STORE GROWTH BY ACQUISITION SAW STORE NUMBERS UP 45% BY YEAR END
42 STORES
8 STORES
10 STORES
1 STORE
61 STORES
ORIGINAL ACQUISITION
APRIL 2016
PURCHASES
FROM SMALLER
FRANCHISEES
AQUIRED
FROM
YUM!
NEW STORE
BUILDS
STORES AS AT
FEB 2018

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STRATEGIC AGENDA – AUSTRALIA
Consolidate recent acquisitions and above-store structure
Continue to acquire smaller independent KFC franchisees (primarily NSW)
New store builds in growth corridors and CBD locations
Acquire large parcels of KFC stores as and when opportunities arise
Introduce a further brand to Australia

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HAWAII
OPERATIONS

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SALES (US$M)
SALES - FY18 DELIVERED ON BUSINESS CASE
66.8
68.3
55.6
51.5
YR 1 BUSINESS CASEFY18 ACTUAL
122.4119.8
TACO BELL
PIZZA HUT

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EBITDA – OVERALL ON TARGET
TACO BELL MARGINS STRENGTHENED WHILE PIZZA HUT WAS IMPACTED BY US
NATIONAL VALUE CAMPAIGNS AND LABOUR COST PRESSURES
EBITDA (US$M)
TACO BELL
PIZZA HUT
12.9
13.9
6.1
3.3
YR 1 BUSINESS CASEFY18 ACTUAL
19.0
17.2

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Kailua Taco Bell
SSS +60%
THE STORE TRANSFORMATION
PROCESS IS UNDERWAY
FY18FY19
1-
NEW STORES
21
12
MINOR REFURBISHMENTS
-5
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MAJOR REFURBISHMENTS
23
--
RELOCATES
--
-1
TRANSFORMATIONS
-3

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STRATEGIC AGENDA – HAWAII
Return Pizza Hut to positive SSS growth and margins above current levels
Drive new store builds and 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)

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GROWTH
OPPORTUNITIES

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New ZealandAustraliaHawaiiUS
Store buildsStore build (corridors)
Small franchisee
acquisitions
Large acquisition
Potential acquisition
New store builds
Potential acquisition
(beachhead)
Store builds (network)N/ARelocations
New store builds
PotentialentryPotentialentryNew store builds
Transformations
Potential acquisition
(beachhead)
POTENTIAL FOR EXPANSION IN ALL MARKETS
THERE ARE CONSIDERABLE NETWORK GROWTH POSSIBILITIES IN EXISTING
MARKETS; HOWEVER THE US MAINLAND PRESENTS A STEP-CHANGE OPPORTUNITY

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US EXPANSION – THE OPPORTUNITY
Market potential – California 6th largest economy in the world
Proven first tier global brands (KFC and Taco Bell)
Relative under-penetration in the target market
Tested beachhead model (critical mass, proven management)
Established QSR market (still growing strongly)
Proven brand operating experience in multiple markets
Strong franchisor relationship

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OUTLOOK FY19
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.

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QUESTIONS?
QUESTIONS
DISCLAIMER
The information in this presentation:
•Is provided by Restaurant Brands New Zealand Limited (“RBD”) for general information purposes and does not constitute investment advice or an offer of or invitation to purchase RBD securities.
•Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are
beyond RBD’s control, and which may cause actual results to differ materially from those contained in this presentation.
•Includes statements relating to past performance which should not be regarded as reliable indicators of future performance.
•Is current at the date of this presentation, unless otherwise stated. Except as required by law or the NZX Main Board and ASXlisting rules, RBD is not under any obligation to update this presentation, whether
as a result of new information, future events or otherwise.
•Should be read in conjunction with RBD’s audited consolidated financial statements for the year to 26 February 2018 and NZX and ASX market releases.
•Includes non-GAAP financial measures including "EBITDA”. These measures do not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information
presented by other entities. However, they should not be used in substitution for, or isolation of, RBD’s audited consolidated financial statements. We monitor EBITDA as a key performance indicator and we
believe it assists investors in assessing the performance of the core operations of our business.
•Has been prepared with due care and attention. However, RBD and its directors and employees accept no liability for any errors or omissions.
•Contains information from third parties RBD believes reliable. However, no representations or warranties are made as to the accuracy or completeness of such information.

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SUMMARY
RBD – a corporate franchisee, New Zealand-based but successfully diversified into Australia and Hawaii
FY18 – a record year with sales of $740.8 million (+49%) and NPAT (excluding non-trading)
of $40.4 million (+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 42%)
NZ business continues to provide a strong base to sales and earnings
Final FY18 dividend of 18 cps (+33%) for a full year of 28 cps
Potential growth opportunities in the US

RUSSEL CREEDY
GROUP CHIEF EXECUTIVE OFFICER
RESTAURANT BRANDS NEW ZEALAND LIMITED (RBD)
GRANT ELLIS
GROUP CHIEF FINANCIAL OFFICER
INVESTOR PRESENTATION
MAY 2018
29