Chairman’s Address

Annual Shareholders Meeting 2020

Chairman’s Address

The last financial year has been a big one for Restaurant Brands and I’m pleased to say that as the new
majority shareholder, Finaccess has been impressed with the achievements of the company over the past
twelve months.

In discussing the 2019 results, I would note that Restaurant Brands changed its balance date from
February to 31 December during the year. Hence the trading results for the December 2019 period are for
only 44 weeks vs 52 weeks for the prior period. We also saw the first full period impact of the adoption of
the new lease accounting standard NZ IFRS 16 on the financial outcomes. I will therefore restate some
results in this address for a more meaningful comparison.

Particular highlights for the 10 months to December 2019 include:

• Total reported sales for the 10 month period of $705.5 million which, whilst down against the
previous 12 month period, were up over 5% for the equivalent 12 months. Sales were positive on
a same store basis across all three operating divisions.
• Combined brand EBITDA
1
(pre NZ IFRS 16) for the 10 months of $116.0 million, down 10.3% on
the previous 12 month period; however on an equivalent 12 month basis, EBITDA was up over
6% at $137.1 million.

• The Taco Bell brand being successfully launched in New Zealand and New South Wales,
Australia with the first three stores opening in the last quarter of the December 2019 year.
• The company entering into a conditional agreement to acquire 70 KFC and Taco Bell stores in
California.
• Reported net profit after tax of $30.1 million; this was for the 10 month period and was adversely
impacted by the shorter reporting period and the adoption of NZ IFRS 16. The equivalent
normalised profit was $45.7 million, up 8.3% on prior year.

The strong financial performance arose primarily from the aggressive capital investment programme and
continued positive trading momentum across the key brands.

Restaurant Brands’ store numbers now total 286, comprising 148 in New Zealand, 73 in Hawaii and 65
stores in Australia.

2019 was another busy period of consolidation and strengthening the company’s position across each of
our markets as we continued to invest for future growth, while successfully maintaining our track record of
delivering strong trading results.

All three operational divisions have performed well, driven by strong contributions from each of our key
brands, Taco Bell in Hawaii and KFC in Australia and New Zealand.

Russel will provide a little more “colour” around our individual divisional performance.

The continued strong trading outcomes is evidence of our ability to successfully acquire, integrate and
further build this business, providing proof that our growth strategy is well founded. We have successfully
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

transitioned into a global enterprise and we see plenty of opportunities on the horizon to continue to
pursue our growth ambitions.

Unfortunately, the COVID-19 pandemic has severely affected our operations in the past months. We were
able to take rapid and appropriate actions, always prioritizing employee and customer health and the well-
being of the community, in strict compliance with the measures established by government authorities in
the countries where the Company is present.

It will be important to monitor closely the depth of the economic impact that the health crisis will generate
in the countries where we operate.

However, we are certain that this is a short-term issue since the Company‘s fundamentals continue to be
solid. Once the pandemic is under control, operations will gradually be re-established in all markets to
move forward with plans in place.

Our growth strategies have been articulated before, but for the sake of completeness, I shall restate our
key areas of potential network development, which is over and above our continued organic same-store
sales growth through constant improvement in in-store operations and brand marketing.

Firstly is the intention to open 60 Taco Bell stores in New Zealand and Australia over the next five years,
while also increasing the number of new KFC store builds on both sides of the Tasman.

Both our Australian and New Zealand operations have some runway left for new KFC builds, particularly
in the smaller CBD format (like the Fort Street store in Auckland). Taco Bell as a new and exciting brand
in this part of the world has seen substantial sales through the newly opened stores.

KFC acquisition opportunities in Australia remain a focus. Whilst these are opportunistic in nature and
require independent KFC franchisees being willing to sell, we believe that these opportunities will
continue to arise and provide further critical mass to our 63 store network in New South Wales.

Before the COVID-19 outbreak, the Hawaiian store network transformation and rationalisation strategy
had begun to gain momentum, despite continuing delays in the local council approval process. The
construction of new Pizza Hut delivery stores and the closure of some of the larger inefficient red roofs
has helped produce solid growth in the Pizza Hut business. The transformation (major renovation) of the
larger Taco Bell stores continues to produce sales results well ahead of expectations with four stores
already transformed and another two scheduled for completion this year.

We are also actively working on rebuilding the KFC brand in Hawaii. We have Yum! support to begin
building our own new store network. Hawaii is, we believe, a significant opportunity for the KFC brand.

Finally we achieved a major growth step into continental US with the announcement at the end of last
year that we had entered into a conditional agreement to acquire 59 KFC and 11 joint KFC/Taco Bell
stores in California, USA for $US73 million. This business generates an annual turnover of $US95 million
and has a 12 month trailing store EBITDA of in excess of $US12 million.

Whilst the approval process has been delayed with the recent COVID-19 crisis, we are expecting
completion early in the second half of this year.

That 70 store base with a solid above-store support structure will provide a strong platform for future new
store-builds and acquisitions in what is a relatively under-penetrated market.

This intensive growth programme has begun to increase our capital expenditure requirements as we look
to quickly achieve further scale in the Taco Bell brand and continue to build our KFC store network.

In response to these increased demands on capital, the Company this year restructured its banking
facilities, securing (after a competitive tender process) a global facility of $370 million for a tenor of up to
four years with four major international banks.

In order to protect the liquidity of the Company, the Board of Directors decided not to declare a dividend
for FY19, given the current uncertainty of the potential economic impact of the COVID-19 outbreak on the
markets where we operate.

I would like to take this opportunity to acknowledge the contribution made by my fellow directors over the
past 12 months and specially during the COVID-19 crisis. All directors have been available for weekly
calls to monitor the evolution of the business during these tough times in order to make adequate and
timely decisions.

As a brand new board your directors have worked together well and quickly picked up the nuances of
governing a company such as Restaurant Brands operating as a multi-branded, multi-geography
franchisee. I have greatly valued their support and guidance.

I would also like to thank Russel Creedy and his management team for their continued outstanding efforts
in adding further value for all shareholders. Russel and his team have not only delivered a strong result
for the last financial year, but have more recently steered the company through what has been one of the
most disruptive crises of recent times.

I wish to recognize the entire staff for their hard work and commitment. A special mention is deserved by
those who have been working so hard to serve our delivery and drive through customers during the
health crisis.

And finally, I would like to thank our loyal shareholders for your continued support and interest in the
company.

---

José Parés
Chairman’s
Address

Note:
•FY 19 = 12 months to 25 February 2019
•FY 19D = 10 months to 31 December 2019
•FY 19D (R) = Restated FY 19D (pro rata) for equivalent 12 month period
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
Highlights FY 19 Year
stores in
California
Launch of
Taco Bell in
Australia and
New Zealand
Agreement
to acquire
FY 18FY 19FY 19DFY 19D (R)FY 19D (R) vs. FY 19
Group Sales $740.8m$794.0m$705.5m$833.8m5.0%
Brand EBITDA
1
$122.6m$129.2m$116.0m$137.1m6.0%

*Estimated(unaudited)NPATovertheeightweeksto February2020,prorata’dfromthe44weeksto December2019
+8.3%
Profit reconciliation FY 19 to FY 19D
$NZm
Feb 2019Dec 2019
Reported NPAT35.7
30.1
Impact of NZIFRS 16-4.5
Other I ncome & Expenses6.54.0
Change of Balance Date*-7.1
Comparable Trading NPAT
42.245.7

KFC Tauranga CrossingKFC Bombay
6 new KFC stores in NZ this year

In Hawaii, Taco Bell transformations are delivering excellent sales growth
Taco Bell MoanaluaTaco Bell NanakuliTaco Bell Pearl City
BEFORE
AFTER

RBD has entered into an agreement to acquire 70 stores in Southern California
KFC& TacoBell
MainlandUSA
$US
$73m
Purchase price
$95m$12m
Annual salesStore EBITDA
11
KT Stores
591,500
KFC StoresStaff
Conditional on Yum! approval and lease assignments

BanksWestpac, Rabobank, JP Morgan,Bank of China
Tenor3 – 4 years
SecurityNegative Pledge Structure
TypeBilateralFacilities under a Common Terms Deed
CurrenciesNZD, AUD,USD
FacilitiesTe r mand Revolving
New banking facilities in place reflecting RBD’s more global outlook
60 60
117 117
76
193
PreviousNew
253
370
USA
Australia
New Zealand
$NZm