Restaurant Brands Full Year Results Announcement

16 April 2019
NZX/ASX


RESTAURANT BRANDS CONTINUES PROFIT GROWTH

$NZm
2019 2018

Change ($) Change (%)
Total Group sales 794.0 740.8 +53.2 +7.2
Group NPAT (reported) 35.7 35.5 +0.2 +0.8
Group NPAT (excl. non-trading) 42.2 40.8 +1.4 +3.3

*52 weeks ended 25 February 2019

Key Points

• Total sales of $794.0 million, up 7.2%, with the bulk of this $53.2 million increase attributable to the
full year impact of Australian stores acquired during FY18.

• Reported net profit after tax of $35.7 million, up 0.8%.

• Net profit after tax (excluding non-trading items) reaches a new high of $42.2 million, up 3.3%.

• Rights acquired for the Taco Bell brand in New Zealand and Australia (New South Wales and ACT)
with the first stores expected to open during the 2019 calendar year.

• Combined brand EBITDA
1
up 5.4% to a new high of $129.2 million, primarily driven by the full year
impact of the Australian stores acquired during FY18.

• Starbucks Coffee business disposed of in October 2018, as part of a brand portfolio rationalisation.

• Successful 75% takeover of the company by Finaccess Capital, S.A. de C.V at a price of $9.45 a
share.


Overview

Restaurant Brands has seen a period of consolidation, integrating the operations acquired in Hawaii and
Australia and rationalising its New Zealand operations. There has been considerable investment in store
refurbishment programs in all three divisions with over $33 million in capital expenditure, providing a solid
base for future sales growth within existing markets.

Total Group sales were up 7.2%, primarily as a result of the full year’s trading of 13 KFC stores acquired in
Australia in the second half of last year. The company’s three key businesses all performed strongly with
Taco Bell Hawaii producing same store sales of +5.1%, KFC New Zealand +4.3% and KFC Australia +4.7%.

The strong performance of Taco Bell in Hawaii was especially pleasing, particularly given the successful
negotiation of development rights for this brand in Australia and New Zealand during the year.

The continued growth in overseas markets has resulted in almost half of the Group’s revenue produced
outside of New Zealand.

The past twelve months also saw the company progress through a takeover bid from Finaccess Capital, S.A.
de C.V, which saw Finaccess Capital take a 75% share in the company on 1 April 2019. Restaurant Brands
welcomes this significant investment and looks forward to strong support from our new cornerstone
shareholder.

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

Restaurant Brands produced a net profit after tax (NPAT) for the period ended 25 February 2019 (FY19) of
$35.7 million, up 0.8% on the reported NPAT of $35.5 million for the prior year.

After allowing for the impact of non-trading items, the underlying NPAT was $42.2 million, up $1.4 million or
+3.3% on prior year.

Total brand sales for the Group were a record $794.0 million, up $53.2 million or +7.2% on FY18 with the full
year benefit of $40.9 million from the acquisition of 18 stores in Australia during FY18. Hawaii’s sales were
also up $15.2 million with a strong performance from the Taco Bell brand. The New Zealand business saw
record sales from the KFC business, although Carl’s Jr. and Pizza Hut showed negative growth. Other
revenue (primarily sales to independent franchisees) totalled $30.9 million, bringing total operating revenue
to $824.9 million, up $58.6 million on prior year.

Combined brand EBITDA of $129.2 million was up $6.6 million or +5.4% on prior year, with a $7.0 million
incremental contribution from the Australian operations.

Restaurant Brands’ store numbers now total 283, comprising 142 in New Zealand, 80 in Hawaii and 61
stores in Australia.

New Zealand Operations

New Zealand operating revenue was $450.3 million, up $3.6 million on FY18 despite the $9.8 million
reduction in sales with the sale of the Starbucks Coffee business. Excluding Starbucks Coffee sales the
underlying New Zealand operations revenue was $13.3 million or 3.2% higher than FY18.

Total store sales were $419.8 million, a decrease of $1.7 million or -0.4% on last year.

New Zealand EBITDA was $76.4 million, a $0.1 million reduction on FY18. The continued strong
performance of the KFC business was partly off-set by lost earnings following the sale of the Starbucks
Coffee business part way through the year.

New Zealand operations produced earnings before interest and tax (EBIT) before non-trading items of $45.3
million, which is consistent with the prior year.

KFC New Zealand

$NZm.
2019 2018 Change ($) Change (%)
Network sales 356.9 339.4 +17.5 +5.2
Network store numbers 100 100

RBD sales 336.5 319.6 +16.9 +5.3
RBD store numbers 94 94

RBD EBITDA 70.4 66.5 +3.9 +5.9
EBITDA as a % of sales 20.9 20.8


KFC New Zealand continues to be a key driver of overall performance and this brand has had another
excellent year. Sales were up 5.3% to a new high of $336.5 million, with same store sales up 4.3%.

KFC record sales result included the highest single week of sales across the country (beating the previous
record by 13%), as well as record sales for a single store in a week. This success is a result of the
continuing impact of increased marketing spend and a strong promotional calendar built up over the last
three years.

Despite some input cost pressures, margins remained strong, with an EBITDA margin of 20.9% of sales
being delivered in the period. In dollar terms, EBITDA totalled $70.4 million, up 5.9% on last year’s result.

KFC continued to invest in store assets with 16 major renovations completed during the year. In addition
digital self-ordering kiosks were introduced in several stores and this has seen a high uptake by customers.

The brand has a solid base for growth in the next financial year with work underway for three new stores to
open in April this year.

Pizza Hut New Zealand

$NZm.
2019 2018 Change ($) Change (%)
Network sales 101.0 100.7 +0.3 +0.2
Network store numbers 98 97

RBD sales 35.4 41.1 -5.7 -14.0
RBD store numbers 30 36

RBD EBITDA 2.0 3.2 -1.2 -37.5
EBITDA as a % of Sales 5.7 7.8


Transformation of the Pizza Hut network in New Zealand to a master franchise model continues on plan with
the sale of nine stores to franchisees during FY19. This included the sale of three new turnkey stores.

This continued unit growth saw network sales climb to $101.0 million for FY19, up $0.3 million or +0.2% on
prior year.

Company owned store numbers decreased by six to 30, whilst the number of independent franchisee stores
has increased to 68, bringing the total Pizza Hut network to 98 stores. During the period three stores were
temporarily closed and two new stores were opened at Kaitaia and Meadowbank (Auckland).

In company owned stores, sales were down $5.7 million to $35.4 million, which is a reflection of the reduced
store numbers and same store sales decreasing 6.1%.

Restaurant Brands’ Pizza Hut store EBITDA was $2.0 million (5.7% of sales), down $1.2 million on last year,
reflecting lower company-owned store numbers and continued margin pressures, particularly in relation to
increased labour rates and ingredient costs.

Carl’s Jr. New Zealand

$NZm.
2019 2018 Change ($) Change (%)
Sales 31.9 34.9 -3.0 -8.8
Store numbers 18 19

EBITDA 0.9 2.0 -1.1 - 52.9
EBITDA as a % of sales 2.9 5.6


Store numbers in Carl’s Jr. fell by one to 18 with the closure of the Upper Harbour store in Auckland as a
result of a Public Works Act compulsory acquisition. Store sales were down 8.8% (-3.3% on a same store
basis), although the introduction of a delivery service in February 2019 has had an immediate and positive
impact.

EBITDA was $0.9 million (2.9% of sales), a decrease of $1.1m on the prior year with lower sales, increasing
labour rates and ingredient costs. The brand continues to operate in a very competitive marketplace.

Starbucks Coffee New Zealand

$NZm.
2019 2018 Change ($) Change (%)
Sales 16.0 25.8 -9.8 -37.9
Store numbers - 22

EBITDA 3.1 4.8 -1.7 -35.7
EBITDA as a % of sales 19.4 18.7


A strategic decision was made not renew the Starbucks Coffee franchise agreement to concentrate on the
other core brands within the NZ operations and the business was sold in October 2018.


Australian Operations

In $NZ terms, the Australian business (operating the KFC brand) contributed total sales of $NZ191.5 million,
store EBITDA of $NZ29.1 million and EBIT of $NZ14.0 million. These results are all significantly up on the
prior year, as a result of stronger trading and the full year trading impact of the 18 new stores acquired
during the FY18 year.

KFC Australia

$Am.
2019 2018 Change ($) Change (%)
Sales 178.3 139.5 +38.8 +27.8
Store numbers 61 61

Store EBITDA 27.0 20.2 +6.8 +33.7
EBITDA as a % of sales 15.2 14.5


In $A terms, total sales for the KFC business in Australia were $A178.3 million, up A$38.8 million (or
+27.8%) on last year. This was largely a function of the full year impact of the additional 18 stores acquired
partway through FY18. Same store sales increased by 4.7%.

Store EBITDA was $A27.0 million (15.2% of sales) up $A6.8 million or +33.7% on last year with sales
leverage and more efficient store operations.

The network totalled 61 stores as at balance date. One store was opened in the third quarter of the year,
offset by one store closure in the final quarter of the year. The business has continued to invest in a major
store upgrade programme with 10 store upgrades completed in the financial year.

The Australian business successfully launched and expanded its home delivery service to all 26 Sydney
Metro stores during the year.

Hawaii Operations

In $NZ terms, the Hawaiian operations contributed $NZ182.7 million in revenues, $NZ23.7 million in brand
EBITDA and an EBIT of $NZ8.0 million for FY19.

Total sales in Hawaii were $US124.7 million with store level EBITDA of $US16.2 million. Taco Bell had
another strong year, performing ahead of expectations on strong sales generated by distinctive product
offerings and pricing flexibility. Pizza Hut continued to underperform, facing increased margin pressures due
to the national Pizza Hut value promotions, higher levels of competition and limited pricing power in the face
of input cost increases.

Taco Bell Hawaii

$USm.
2019 2018 Change ($) Change (%)
Sales 72.3 68.3 +4.0 +5.9
Store numbers 36 37

Store EBITDA 14.3 13.9 +0.4 +2.9
EBITDA as a % of sales 19.8 20.3


Taco Bell continued to perform very well with total sales of $US72.3 million and store-level EBITDA of
$US14.3 million (19.8% of sales) for the year. A strong promotional pipeline has helped drive a solid sales
performance with same store sales up 5.1%.

Restaurant Brands has embarked on a store rebuild and refurbishment strategy following the same
successful model as undertaken by the KFC business in New Zealand. The first store transformed continues
to deliver same store sales growth of +60% against pre-transformation volumes. However, local government
construction permit approvals have delayed the roll out of transformations to further stores. The process is
now gaining momentum and 2-3 major store refurbishments are expected to be completed over the next 12
months.




Pizza Hut Hawaii

$USm.
2019 2018 Change ($) Change (%)
Sales 52.4 51.5 +0.9 +1.8
Store numbers 44 45

Store EBITDA 1.9 3.3 -1.4 -44.1
EBITDA as a % of sales 3.6 6.5


Total Pizza Hut sales were $US52.4 million with store-level EBITDA of $US1.9 million (3.6% of sales). Same
store sales were down 2.1%. There continues to be margin pressure from participating in US-wide value-led
marketing promotions together with higher commodity and direct labour expenses.

As with Taco Bell, an asset refurbishment program is under way for the Pizza Hut brand, which sees a move
away from the larger Restaurant Based Delivery units into smaller, more cost-effective Delivery and Carry-
out (Delco) units. One new Delco unit was opened at Pearl City in Honolulu during FY19 and is trading
ahead of expectations.

Corporate & Other

General and administration (G&A) costs were $35.8 million, up $3.9 million from last year. This is a result of
the Group corporate team operating for a full year and the continued expansion of the Group’s activities.
G&A as a % of total revenue was 4.3% which is in line with the prior year.

Depreciation charges of $30.3 million for FY19 were $1.6 million higher than the prior year, of which the
Australian business accounted for $1.1 million arising from the stores acquired during FY18.

Financing costs of $6.8 million were up $1.2 million on prior year reflecting the higher borrowings required to
fund Australian acquisitions during FY18. Interest rates in both Hawaii and Australia also increased.

Tax expense was $13.7 million, down $3.0 million on the prior year due to the reduction in the corporate tax
rate in Hawaii. The effective tax rate of 27.7% 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 27.8%.

Non-trading Items

Non-trading expenditure for the year was $9.0 million, $3.6 million higher than prior year. The FY19 charges
included $3.5 million leave remediation costs resulting from identified payroll inconsistences in New Zealand
relating to the entitlements under the Holidays Act dating back to 2012, an impairment charge of $3.5 million
relating to Carl’s Jr. asset carrying value in New Zealand and an adjustment in the accounting treatment for
workers compensation expenses in Hawaii of $1.6 million. These costs were partially offset by a gain on the
sale of the Starbucks Coffee business and a gain on sale of assets in relation to the sale of New Zealand
Pizza Hut stores to independent franchisees.

Cash Flow & Balance Sheet

The composition of the Group’s balance sheet is largely consistent with the prior year except for a drop in net
debt of $25.9 million which reflects the Group’s strong trading results and the decision not to pay an interim
dividend. Bank debt at the end of the year was down to $145.9 million compared to $166.8 million at the
previous year end. As at balance date, the Group had bank debt facilities totalling $251.7 million in place.

The Group remains relatively unleveraged with a Net Debt: EBITDA ratio as at the end of the FY19 year of
1.3X.

Operating cash flows were up $3.8 million to $71.3 million, reflecting the Group’s increased profitability.

Net investing cash outflows were $26.8 million (versus $173.3 million last year) with the prior year reflecting
the cash impact of the Hawaii and Australian acquisitions totalling $147.5 million (net of bank loans assumed
as part of the transactions). Included within investing cash inflows for the period were $10.2 million received
from the sale of nine Pizza Hut stores and the Starbucks Coffee business.

Dividend

As its growth strategy begins to accelerate, Restaurant Brands is facing substantial demands on its capital
resources. In particular the planned new store build programme (including the intention of opening 60 Taco Bell
stores in New Zealand and Australia over the next five years, together with accelerated levels of KFC store builds in
both those markets) will see levels of capital expenditure at record levels. Overlaying this are significant potential
acquisition opportunities in both the US and Australian markets.

While some of this store development and acquisition growth can be funded from increased borrowings, Directors
believe that it is in the best interests of the Group to retain cash in order to provide funding flexibility. Directors have
therefore resolved to not pay a final dividend for the FY19 year.

Finaccess Capital, S.A. de C.V

On 1 April 2019 the partial takeover offer from Finaccess Capital was successfully completed with Finaccess
taking a 75% shareholding in the Group through acquiring shares from existing shareholders at a price of
$9.45 a share. Finaccess Capital has a successful track record of investing in QSR businesses including a
major shareholding in AmRest Holdings S.E, a large European QSR operation. They have signalled that they
are supportive of the Group’s continuation of its existing growth strategies.

Directors

Following completion of the takeover, Vicky Taylor, David Beguely and Stephen Copulos resigned from the board
and José Parés and Emilio Fullaondo were appointed as new directors. Ted van Arkel and Hamish Stevens will
remain on the board until the next Annual Shareholders’ Meeting of the company.

The board and company acknowledge the contributions made by the three retiring directors and welcome José
(representing Finaccess) and Emilio (independent director) to the board.

NZ IFRS16

The Group has adopted the new lease accounting standard (NZIFRS 16) with effect from the new financial year.
The effect of this standard on the company’s balance sheet will create a lease liability, reflecting future lease
payments and a “right of use” asset for its lease contracts. The Group leases all its premises, therefore the initial
balance sheet impact will be substantial, increasing assets by an estimated $383 million, liabilities by $432 million
and reducing equity by $49 million.

Furthermore the standard will impact on the Group’s income statement by removing operating lease expenses and
replacing them with an interest expense pertaining to the future lease payment obligations and a depreciation
charge against the “right of use” asset in the balance sheet. The net effect of these changes will have a minimal
overall impact on the income statement over time, but because of timing differences will have an estimated adverse
impact in the first year of adoption of $5.9 million before tax.

Outlook

With stable operations in all three of its markets and the takeover activity of the past 12 months now
complete, Restaurant Brands will be looking to expand further through acquisition, store refurbishments and
new store roll outs.

Although the introduction of the Taco Bell brand to New Zealand and Australia (New South Wales and ACT)
is not expected to have a material effect on the Group’s result in FY20 it is another important step forward in
the Group’s overall expansion strategy for the region.

With a consistent performance from the existing store network, the benefit of new store builds and a stable
economic environment, Directors expect the Group will deliver a NPAT (excluding non-trading items) result
for the new financial year of 10% above current year’s results (after adjusting for the disposal of the
Starbucks Coffee business in FY19 or any major new acquisitions during the year). Further details will be
provided at the Annual Shareholders’ Meeting.



Annual Shareholders’ Meeting

The Annual Shareholders’ Meeting of the company will be held in Auckland, New Zealand on Wednesday 10
July 2019.


For further information please contact:

Russel Creedy Grant Ellis
Group CEO Group CFO/Company Secretary
Phone: 525 8710 Phone: 525 8710


ENDS

About Restaurant Brands:

Restaurant Brands New Zealand Limited operates the KFC, Pizza Hut, and Carl’s Jr. brands in New
Zealand, the KFC brand in Australia and the Taco Bell and Pizza Hut brands in Hawaii and Guam. These
brands - four of the world's most famous - are distinguished for their product, look, style and 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 25 February 2019
25 February 2019vs Prior26 February 2018
52 weeks%52 weeks
$NZ000's
Sales
KFC336,534 5.3319,598
Pizza Hut35,350 (14.0)41,111
Starbucks Coffee16,022 (37.9)25,818
Carl's Jr.31,864 (8.8)34,921
Total New Zealand sales419,770 (0.4)421,448
KFC 191,547 26.1151,844
Total Australia sales191,547 26.1151,844
Taco Bell106,004 11.095,487
Pizza Hut76,725 6.671,997
Total Hawaii sales182,729 9.1167,484
Total sales794,046 7.2740,776
Other revenue30,869 21.025,513
Total operating revenue824,915 7.7766,289
Cost of goods sold(675,697)7.6(628,169)
Gross margin149,218 8.0138,120
Distribution expenses (3,629)25.4(2,895)
Marketing expenses(44,542)11.1(40,095)
General and administration expenses(35,818)12.1(31,948)
EBIT before non-trading items65,229 3.263,182
Non-trading items(8,997)65.7(5,429)
EBIT56,232 (2.6)57,753
Financing expenses(6,797)21.3(5,604)
Net profit before taxation49,435 (5.2)52,149
Taxation expense (13,694)(17.9)(16,683)
Net profit after taxation (NPAT)35,741 0.835,466
NPAT excluding non-trading items42,181 3.340,847
% sales% sales
Concept EBITDA before G&A
KFC70,384 20.95.966,472 20.8
Pizza Hut2,017 5.7(37.5)3,226 7.8
Starbucks Coffee3,110 19.4(35.7)4,836 18.7
Carl's Jr.923
2.9(52.9)1,962 5.6
Total New Zealand76,434 18.2(0.1)76,496 18.2
KFC 29,064 15.232.022,026 14.5
Total Australia29,064 15.232.022,026 14.5
Taco Bell20,968 19.88.019,420 20.3
Pizza Hut2,781 3.6(40.6)4,681 6.5
Total Hawaii23,749 13.0(1.5)24,101 14.4
Total concept EBITDA before G&A129,247 16.35.4122,623 16.6
Ratios
Net tangible assets per security (net
tangible assets divided by number of
shares) in cents
(19.6)(36.1)
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 25 February 2019
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*20192018
EBITDA before G&A1129,247 122,623
Depreciation(30,163)(28,683)
Loss on sale of property, plant and equipment (included in depreciation)(146)23
Amortisation (included in cost of sales)(3,112)(3,233)
General and administration costs - area managers, general managers and support centre(30,597)(27,548)
EBIT before non-trading265,229 63,182
Non-trading items **3(8,997)(5,429)
EBIT after non-trading items456,232 57,753
Financing costs(6,797)(5,604)
Net profit before taxation 49,435 52,149
Income tax expense(13,694)(16,683)
Net profit after taxation35,741 35,466
Add back non-trading items8,997 5,429
Income tax on non-trading items(2,557)(48)
Net profit after taxation excluding non-trading items542,181 40,847
* 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 25 February 2019
Previous Reporting Period 52 week period ended 26 February 2018

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$824,915 7.7%
Profit from ordinary
activities after tax
attributable to security
holder.
NZ$35,741 0.8%
Net profit attributable to
security holders.
NZ$39,242 17.8%

Interim/Final Dividend Amount per share Imputed amount per share
Final NA NA

Record Date NA
Dividend Payment Date NA

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.

---

Reaching
newheights
Restaurant Brands NZ Limited
2019 Full Year Results Presentation
Russel Creedy - Group CEO
Grant Ellis – Group CFO
Ted van Arkel - Chairman
16 April 2019

Presentation Outline
•Key Points
•Finaccess Capital
•Results Overview
•New Zealand Operations
•Australia Operations
•Hawaii Operations
•Growth Opportunities & Dividend
•Outlook
•Questions

Commentary (FY19 vs FY18)
•Group Sales +7.2%
•Reported NPAT (including non-trading) +0.8%
•N PAT (excluding non-trading) +3.3%
•Brand EBITDA
•Disposal of Starbucks Coffee business
•75% takeover by Finaccess Capital S.A. de C.V at
$9.45/share
FY 17FY 18FY 19
$479.2m$740.8m$794.0m
$26.0m$35.5m$35.7m
$30.6m$40.8m$42.2m
$86.2m$122.6m$129.2m
Key Points

Finaccess Capital S.A de C.V.
•Friendly takeover bid by Finaccess Capital S.A de C.V completed on 1 April 2019
•75% of shares acquired (91.3% acceptance) at $9.45 a share (24% premium on pre-
announcement price)
•Finaccess is a Mexican based family investment company (not private equity) taking
long term positions. Funded from sale of Corona Beer business
•Has a significant investment (67%) in Amrest Holdings S.E., a large (> €1.5 billion
turnover) QSR operator in Europe
•Very supportive of current RBD growth strategies and looking to accelerate these
•Proposed board following 10 July 2019 Annual Shareholders' Meeting:
José Parés GutiérrezFinaccessChairman
Carlos Fernández GonzalezFinaccess
Luis Miguel Álvarez PérezFinaccess
Emilio Fullaondo BotellaIndependentChair of Audit Committee
NZ resident (1)Independent
NZ resident (2)Independent

RESULTS OVERVIEW

Overseas operations contributed 47% of sales and 41% of earnings for
the year with Australia driving FY19 growth
400.0
421.4
419.8
97.2
151.8
191.5
167.5
182.7
497.2
740.8
794.0
FY 1 7FY 1 8FY 1 9
Sales
$NZm
New ZealandAustraliaHawaii
71.2
76.5
76.4
15.0
22.0
29.1
24.1
23.7
86.2
122.6
129.2
FY 1 7FY 1 8FY 1 9
Brand EBITDA
$NZm
New ZealandAustraliaHawaii

G&A costs at 4.3% of revenues with corporate costs and initial Taco Bell
staffing
16.7
15.9
16.3
3.6
4.9
6.4
7.5
8.5
20.3
3.7
4.6
FY 1 7FY 1 8FY 1 9
G&A
$NZm
New ZealandAustraliaHawaiiCo rpo rat e
31.9
35.8
% of Revenue3.9%4.2%4.3%

Non-trading items up on prior year with Carl’s Jr. impairment and leave
remediation costs
$NZmFY 18
FY 19
Gain on sale Pizza Hut stores
(0.5)(1.8)
Gain on sale of Starbucks-(1.2)
Realised gain on FX contracts(0.9)-
Gain on store sale and leaseback(0.4)-
Store closure costs0.3 -
ASX listing costs0.6 -
Acquisition costs1.6 0.4
Relocation & refurbishment-1.0
Hawaii workers compensation-1.6
Franchise rights amortisation1.9 2.0
Leave remediation0.7 3.5
I mpairment of assets & goodwill2.1 3.5
5.4 9.0

Operating cash flows up in line with profitability
Investing cash flows (excluding acquisitions and divestments) continue to
increase
$NZm
FY 17FY 18
FY 19
Operating Cashflow47.9
67.8 71.3
Investing Cashflow (adjusted)(15.1)*(25.8)
**(26.7)
Free Cashflow32.8
42.0 44.6
*Adjus ted for $63.9m of QSR purchas e
**Adjusted for $147.5m of PIR + additional Australian stores

Net debt: EBITDA0.6:11.6:11.3:1
Gearing (D:D+E)18%44%37%
Borrowings were down with no interim dividend, and well within facility
levels of $252 million
Bank Debt $NZm
46.5
166.8
145.9
FY 17FY 18FY 19
*Adjusted for $65 million of cash held for PIR purchase
FY 17*FY 18FY 19

New Zealand Operations

NZ total sales flat to prior year with KFC increase offset by impact of
Starbucks disposal and Pizza Hut store disposals
296.5
319.6
336.5
40.5
41.1
35.4
36.3
34.9
31.9
26.7
25.8
16.0
FY 1 7FY 1 8FY 1 9
Sales
$NZm
KFCPizza HutCarl's Jr.S tarb uck s
400.0
421.4
419.8

NZ EBITDA flat to prior year with consistently strong performance by KFC
61.4
66.5
70.4
4.1
3.2
2.0
1.0
2.0
0.9
4.8
4.8
3.1
FY 1 7FY 1 8FY 1 9
Brand EBITDA
$NZm
KFCPizza HutCarl's Jr.S tarb uck s
71.2
76.576.4

KFC continues growth momentum with sales up 5.3% on steady same store
growth and EBITDA margins solidly in 20-21% range
296.5
319.6
336.5
3.6%
6.2%
4.3%
FY 17
FY 18FY 19
KFC Sales
Total Sales $mSame Store Sales %
61.4
66.5
70.4
20.7%
20.8%
20.9%
FY 17FY 18FY 19
KFC EBITDA
EB ITDA $mEBITDA % of Sales
•Another year of record sales with successful promotions plus increased and effective marketing spend
•EBITDA margin remains >20% assisted by sales leverage, but cost pressures continue, especially in labour

Pizza Hut network sales growth flat in a strongly competitive
environment
•RBD stores lower sales from strong competition, store disposals and cannibalization from store builds for
independents
•Labour cost increases and some deleverage impacted margins
4.1
3.2
2.0
10.0%
7.8%
5.7%
FY 17FY 18FY 19
RBD Pizza Hut EBITDA
EBITDA $m
EBI TDA % of S ale s
40.5
41.1
35.4
51.1
59.6
65.6
F Y 17
F Y 18F Y 19
Pizza Hut Total Network Sales
Sales ($m) RBD Owned StoresSales ($m) IF Owned Stores
101.0
+0.2%
100.7
+10.0%
91.6
+6.4%

Sales of Pizza Hut stores to independent franchisees continues together
with increase in store builds
•Pizza Hut now primarily a franchise business supported by RBD infrastructure
35
36
30
58
61
68
F Y 17F Y 18
F Y 19
R BDInd epend en ts
97
93
98

Carl’s Jr. stumbled on profit build programme, but strong recovery
underway
•Some poor pricing and promotional decisions mid-year together with continued competitive pressure
meant a profit dip in FY19
•One profitable store closed – Public Works Act
•Strong recovery in sales and margins in last quarter with delivery initiative
36.3
34.9
31.9
-3.8%
-2.6%
-3.3%
FY1 7
FY1 8FY1 9
Carl's Jr. Sales
Total Sales $mSame Store Sales %
1.0
2.0
0.9
2.7%
5.6%
2.9%
FY 17FY 18FY 19
Carl's Jr. EBITDA
EBITDA $m
EBI TDA % of S ale s

KFC Tauranga Crossing
KFC Bombay
New store build momentum is building (especially KFC)

StrategyScoreOutcome
•Resolve Starbucks position

SoldOctober 2018
•Formalise master franchise for Pizza Hut

MFA in place in June 2018
•EnhanceCarl’s Jr. profitability with a view to further
development
XProfit miss FY19. Recovery
beginningFY20
•BuildPizza Hut network in NZ through independent
franchisee ownership (120+ stores)

Newstore builds underway
•Maintain KFC margins and sales growth over long
term

SSS 4.3%. EBITDAmargin 20+%
•New KFC store builds(2+ p.a.) with wider store
design options

Nil FY19. 3 opening April 2019
•Introducea further brand to NZ

Taco Bell development
agreement signed and initial staff
recruited
NZ FY19 Strategic Outcomes

Australia Operations

Australia KFC business performed strongly, successfully integrating
FY18 acquisitions
92.5
139.5
178.3
4.9%
4.7%
FY1 7FY1 8
FY1 9
KFC Australia Sales
T otal S ales $AmSame Store Sales %
14.2
20.2
27.0
15.4%
14.5%
15.2%
FY1 7FY1 8
FY1 9
KFC Australia EBITDA
EBITDA $AmEBI TDA % of S ale s
•Total sales up 27.8% on FY18 acquisitions (full year trading) and solid SSS growth
•EBITDA up 33.7% with FY18 acquisitions, enhanced margins on improved sales mix and store controls

Australia FY19 Strategic Outcomes
StrategyScoreOutcomes
•Consolidate recent acquisitions and above store
structure

New management team in
place
•Continue to acquire smaller independent KFC
franchisees(primarily NSW)
-Discussions continue
•New store buildsin growth corridors and CBD
locations

Bondi – strong sales
•BuildKFC margins above current norms

Back to 15% +
•Acquire large parcels of KFC stores as and when
opportunities permit
-A watching brief
•Introducea further brand to Australia

Taco Bell development
agreement signed and initial
staff recruited

Hawaii Operations

Despite continued delays in the store refurbishment programme and some
headwinds for Pizza Hut, both brands delivered sales growth; however Pizza
Hut margins slipped
68.3
72.3
51.5
52.4
119.8
124.7
FY 1 8FY 1 9
Sales
$USm
Taco BellPizza Hut
13.9
14.3
3.3
1.9
17.2
16.2
FY 1 8FY 1 9
Brand EBITDA
$USm
Taco BellPizza Hut

Taco Bell continues to deliver strong results, even before a network upgrade
68.3
72.3
FY 18FY 19
Taco Bell Sales
Total Sales $USm
SSS +5.1%
13.9
14.3
20.3%
19.8%
FY 18FY 19
Taco Bell EBITDA
EB ITDA $US mEBITDA % of Sales
•Taco Bell SSS up 5.1% on innovative promotions
•Taco Bell % margin softened slightly on cost increases but run rate still ~20% of sales

•Pizza Hut SSS down 2.1% with stronger competition, systems issues and lack of innovation
•Pizza Hut struggling to recover cost increases in a competitive market and national value campaigns
•Opportunity to extensively review business model with franchise renewals FY20
3.3
1.9
6.5%
3.6%
FY 18FY 19
Pizza Hut EBITDA
EB ITDA $US mEBITDA % of Sales
51.5
52.4
FY 18FY 19
Pizza Hut Sales
Total Sales $USm
SSS -2.1%
Pizza Hut continued to be impacted by US national value campaigns and
labour cost pressures

Hawaii FY19 Strategic Outcomes
StrategyScoreOutcomes
•Return Pizza Hut to positive SSS growth and margins
above currentlevels
XSlowprogress, but some
positive weeks in early FY20
•Drive new store builds and transformations of Taco
Bell brand

Two scrape and rebuilds
underway
•Accelerate move out of large Pizza Hut red roof
stores into smaller delcos
XNetwork plan in place.
Planning consents delaying
execution
•Build new delcos

One delco in Pearl City
•KFC business in Hawaii (by acquisition or new store
builds)
-No furtherprogress to date

GROWTH OPPORTUNITIES & DIVIDEND

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
•Market secured•NSW / ACT market
secured
•New store builds
•Transformations
•Potential acquisition
(beachhead)
Growth opportunities in existing markets are beginning to crystallise and
are being actively pursued in FY20
2 new stores
2 new stores
2-3
transformations
2 new stores
1-2 new
delcos
4-5 new
stores
Actively
looking (West
Coast, US)
2 new stores

•Historically, dividends paid in proportion to profits (80-85%) pay out ratio
•Strong cash flows allowed both dividend and some capex growth
•However significant growth initiatives planned over next 5 years
GeographyBrandNo. over 5 yearsNature of Investment
•NZ/AustraliaKFC30New stores
•NZ/AustraliaTaco Bell60New stores
•NZ/Australia
KFC50-60Major refurbishments
•Hawaii
Taco Bell10-12New and scrape and rebuilds
•Australia
KFC10-40Smalleracquisitions
•United States
KFC/Taco Bell2-3Major mainland acquisitions
Dividend / Growth initiatives
•Finaccess preference is to equity fund as a last resort
•Intend to retain cash for funding flexibility

OUTLOOK
With stable operations in all three markets and the takeover activity of the past 12 months now
complete, the Company is poised for further expansion through acquisition, store refurbishments and
new store roll outs.
New KFC store builds will drive sales and profit enhancement in New Zealand and Australia. The Taco
Bell scrape and rebuilds in Hawaii will further assist that result.
The introduction of the Taco Bell brand to New Zealand and Australia will have an immaterial adverse
effect on the FY20 result (largely establishment costs).
The underlying business across all brands is expected to deliver a consistent (or slightly better) result
on FY19.
After adjusting for Starbucks disposal and excluding any significant new acquisitions, Net
Profit after Tax (excluding non-trading items) for the FY20 year of 10% above current year’s
performance

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 ASX listing 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 consolidated financial statements for the half year to 10 September 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 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.