Burger Fuel Group Limited FY20 Annual Report Provided

BURGER FUEL
GROUP LIMITED
ANNUAL REPORT 2020

3
Annual Report of the Directors
Total System Sales
Revenue and Trading History
Independent Auditor’s Report
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Shareholder Information
Corporate Governance
Directory
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TABLE OF CONTENTS
ANUL REPORTTR2E2RP2R0RO3PAOARU3 4U

BFG ANNUAL REPORT 2020
45
Burger Fuel Group Ltd Full Year Results for the
12 months ended 31st March 2020
On the 1st July 2019 Burger Fuel Worldwide Limited
changed its name to Burger Fuel Group Limited
to better reflect the business focus and our recent
transformation into a multi-brand business. At the same
time, we also migrated to the NZX main board from the
NZAX.
The Group relied on the NZX class waiver from listing
rules 3.6.1, dated 19 March 2020, which provides listed
companies with an additional two months to prepare
and release annual reports in acknowledgement of the
challenges caused by COVID-19.
Overview - FY20
The Directors of Burger Fuel Group Limited (BFG)
present the audited results for the 12 months to
31 March 2020.
Net Profit after tax for the period was $505,478
representing a 59.1% decrease on the previous year
The Group has no debt, and cash reserves of $5.6M.
BurgerFuel Group (unaudited) Total System Sales (all
three brands) reduced (2.18%) to $101.3M on the same
period last year. Group Operating Revenue increased
by 4.0% to $21.9M. Whilst revenue is up on FY19, this
is mainly due to the opening of our company owned
Shake Out store at the Smales Farm complex in
Takapuna, Auckland in November 2018, as well as the
additional interest income booked for the non-occupied
leases as per the new IFRS 16 lease accounting
standard $1.4M.
Revenue is largely comprised of sales from our
company owned restaurants, manufacturing, and long-
term recurring royalties.
In FY20 we had a reduction in MENA royalty and
advertising income and an internal business structure
change lowered revenue from our proprietary product
manufacturing operation but will ensure that this
business unit becomes more financially efficient going
forward.
The Group also incurred additional costs around the
KPMG process, legal costs, writing off certain obsolete
assets and stock write offs due to the closure of
restaurants over the COVID-19 lockdown period. The
Group has also undertaken significant investment in the
ongoing development of the new brands.
As at 31 March 2020 there were 78 BurgerFuel, Shake
Out® and Winner Winner® stores operating in NZ and
worldwide.
BFG results for the period
1 April 2019 to 31 March 2020
31 March
2020
31 March
2019
$000$000
Operating Revenue* 20,45921,028
Interest Income
IFRS 16 non-occupied leases1,410-
Total Income21,86921,028
Operating Expenses**(18,663)(19,172)
Depreciation Expense
IFRS 16 occupied leases(630)-
Interest Expense
IFRS 16 non-occupied leases(1,410)-
Interest Expense
IFRS 16 occupied leases(443)-
Total Expenses(21,146)(19,172)
Net Profit (Loss) Before Tax7231,856
Net Profit (Loss) After Tax***5051,236
* Revenue includes: Operating revenue and interest income.
** Expenses include: Operating expenses, depreciation, amortisation and
interest expense.
*** The New Zealand entities had taxable income and were unable to utilise
the foreign tax losses. The overseas entities had minimal tax.
THE YEAR TO DATE
AND GROUP OUTLOOK
New Zealand
Systemwide sales across New Zealand (62 restaurants,
all 3 brands) increased by 1.3% on the previous year
this was mainly due to the opening of 5 new stores.
The COVID-19 Alert Level 4 lockdown resulted in
FY20 having 6 less days of trade which impacted the
Group’s NZ sales by approx. (1.7%). Since our mid-year
announcement, trading conditions in Christchurch have
remained difficult, however Auckland was showing
some improvement prior to the COVID-19 Alert Level
4 lockdown. The distribution of our sales has been
inconsistent and is now favouring the suburbs over the
city centres as office buildings remain underutilised. It
remains to be seen as to whether the cities will return
to pre-COVID-19 levels of pedestrian traffic.
CHAIRMAN AND CHIEF EXECUTIVES’ REVIEWCHAIRMAN AND CHIEF EXECUTIVES’ REVIEW
Comparable BurgerFuel (same store) sales in NZ
decreased by (2.1%) which is partly due to 6 lost
days of trade caused by the lockdown. At this stage
BurgerFuel NZ will continue with our policy of not
undertaking third-party, home delivery as over time
we believe this will negatively affect both the brand
and individual store profitability. This decision is likely
to have impacted our FY20 growth numbers, however
we remain committed to this policy at this stage.
The COVID-19 crisis delayed the opening of our new
BurgerFuel store in Point Chevalier (Auckland). It has
since opened and is trading well. There are still some
opportunities for new BurgerFuel stores to open in the
remaining main centres of New Zealand however, there
is much uncertainty in the current environment and
we are not able to determine at this stage what new
development will be possible.
Shake Out total store sales increased by 243% in
FY20. No stores have yet had a full financial year of
comparable trade. The main events for Shake Out have
been the opening of stores in Browns Bay (Auckland)
and Palmerston North. The impending COVID-19
crisis delayed the opening of our new Hamilton East
store. It has since opened and is trading well in its
first few weeks. The Browns Bay Shake Out did not
meet expectations and did not reopen after the
COVID-19 Alert Level 4 lockdown. Shake Out has also
deployed a portable pop up type operation that uses
two shipping containers. It was extremely successful
at music festivals and concerts but as those types of
events may become less popular, it will be popping up
in various locations to sell directly to the public. It is
currently operating from the Trusts Arena in Henderson
(Auckland).
Winner Winner total sales increased by 56.4% due
to two new stores, Courtenay Place (Wellington)
and Pukekohe, opening in January 2020. Both new
stores were trading well, however the momentum of
these two new stores has been greatly impacted by
the necessity to close during the COVID-19 Level 4
lockdown. It remains to be seen how each of those
stores will recover over the coming months, but we are
optimistic about the Winner Winner brand.
In February and March, the two new brands
represented 7.6% of total NZ sales for the group.
Unfortunately, expansion plans have now stalled
because of the COVID-19 crisis and any future
development will depend on the future economic
conditions, which at this point remain uncertain.
The Middle East
The Middle East continues to be a difficult market
for BurgerFuel with each country experiencing major
challenges. We announced the closure of the Iraq store
as we now see no future in this country.
In the UAE we have experienced less competitive
pressure, as many restaurants are closing, but
increasing pressure from the overall economic
conditions in the UAE. The UAE as a country is
experiencing a downturn that is directly affecting
the hospitality and food service industries. Together
with the COVID-19 crisis, there is finally some
acknowledgment that rents were unsustainable, and
they are now starting to reduce. Unfortunately, the
Dubai World Expo has been delayed by a year, so we
are not expecting any recovery in the UAE trading
conditions during FY21. Because of tough economic
conditions, and then the impact of COVID-19, our
Licensee in UAE has closed several stores with only 2
BurgerFuel stores now operating in Dubai and 2 in Abu
Dhabi. At this stage we are uncertain of BurgerFuel’s
ongoing future in the UAE.
The Kingdom of Saudi Arabia is showing mild
improvements, in part because of their populace not
leaving the country for entertainment options. We
expect that the ever-increasing freedoms within the
country will continue to be good for the domestic
hospitality & food service industry, potentially at the
expense of regional entertainment hubs such as Dubai
or Bahrain. Our Licensee opened a new store in the city
of Jubail and has another store under construction in
the city of Dammam.
Overall, and as always, we continue to caution the
market as to the future of the Middle Eastern region for
BurgerFuel. These countries remain very uncertain and
we anticipate further declines in our revenue from the
Middle East region.
United States
In the United States we have one licenced store in
Broad Ripple, Indianapolis. That store has experienced
a decline in sales in the past 12 months and due to the
COVID-19 crisis it was forced to close on 22nd March,
a few days before the New Zealand lockdown and it
has not yet reopened. There are significant challenges
in the USA, both with the ongoing community
transmission of the COVID-19 epidemic and more
recently with the arrival of major civil unrest. We are
unsure about the future of BurgerFuel in the USA at
this point but will update the market when we receive
further information.
FOR THE YEAR ENDED 31 MARCH 2020FOR THE YEAR ENDED 31 MARCH 2020
/ ANNUAL REPORT OF THE DIRECTORS

BFG ANNUAL REPORT 2020
6
CHAIRMAN AND CHIEF EXECUTIVES’ REVIEW
Outlook
BurgerFuel Group has completed its transformation to a
multi-brand business and was preparing for the additional
growth opportunities that the new brands had presented.
The COVID-19 crisis has forced us to moderate those plans
and prepare for a challenging environment in FY21 and
potentially beyond that. We do not anticipate any significant
store development in the next 12 months. We remain
focused on safeguarding the business and reducing costs in
order to endure these uncertain times and be able to take
opportunities that may present themselves in the months to
come.
BurgerFuel Group in conjunction with its advisors KPMG are
still reviewing its options regarding a possible sale, merger,
joint venture, international partnership, domestic partnership
or alternative process. The Board will keep the market
updated with any material developments should they occur
throughout the ongoing strategic review process.
We would like to thank all shareholders, staff, franchisees,
suppliers and of course our valued customers for their
continued support.

Best regards,
FOR THE YEAR ENDED 31 MARCH 2020
Josef Roberts
Group CEO
Peter Brook
Chairman
Anuual Anuual RR epoaorta
/ ANNUAL REPORT OF THE DIRECTORS

9
BFG ANNUAL REPORT 2020
8
Total System Sales represent total till sales figures
across the counter for all franchise and company
owned stores. These figures are based on store sales
reported by franchisees to Burger Fuel Limited for
the corresponding financial years, and have not been
independently reviewed or audited by Baker Tilly
Staples Rodway. All figures are taken from till sales and
are up to and including the last day of the calendar
month. These figures are exclusive of GST.
These figures include all three brands BurgerFuel,
Shakeout, and Winner Winner.
Financial years are from 1st April to 31st March. Total system sales represent total till sales figures across the counter
for all franchise and company owned stores.
Total (Unaudited) System Sales
BURGERFUEL GROUP LIMITED FY20 TOTAL
SYSTEM SALES
2012
NZ$33.0M
2013
NZ$38.1M
2014
NZ$49.3M
2015
NZ$66.2M
2016
NZ$82.8M
2011
NZ$29.9M
2010
NZ$25.9M
20092017
NZ$96.5M
2018
NZ$100.3M
2019
NZ$105.6M
2020
NZ$103.6M
NZ$101.3M
$101,340,524
BURGERFUEL GROUP LIMITED FY20
REVENUE AND TRADING HISTORY
REVENUE
LOSS
PROFIT AFTER TAX
NZ$21.0M
2019
NZ$1,236,341
NZ$21.9M
2020
NZ$505,478
2009
NZ$7.5M
(NZ$710,282)
2010
NZ$8.7M
(NZ$552,983)
2011
NZ$8.3M
NZ$33,513
2012
NZ$9.6M
NZ$708,360
NZ$12.0M
NZ$1,098,294
2013
NZ$14.4M
NZ$400,656
2014
NZ$18.7M
NZ$532,170
2015
NZ$20.3M
(NZ$1,143,655)
2016
NZ$22.3M
NZ$888,948
2017
NZ$24.8M
(NZ$463,062)
2018
BFG ANNUAL REPORT 2020
/ FY20 REVENUE AND TRADING HISTORY/ FY20 TOTAL SYSTEM SALES

1110
BFG ANNUAL REPORT 2020
THE BFG BOARD
Mark is the CFO & Company
Secretary of BurgerFuel and
has been with the company
since 2008.
Mark is a chartered accountant
& a member of Chartered
Accountants Australia and New
Zealand.
Prior to joining BurgerFuel,
Mark worked for Deutsche
Bank & The Economist in
London.
MARK PIET
CHIEF FINANCIAL OFFICER
PETER BROOK
CHAIRMAN
MEMBER - BFW AUDIT
COMMITTEE
Peter has 20 years experience
in the investment banking
industry, retiring in 2000 to
pursue his own business and
consultancy activities. Peter
is presently Chairman of Trust
Investment Management Ltd
and Generate Investment
Management Ltd.
Other Directorships: A Trustee
of the Melanesian Mission
Trust Board, and a number
of directorships of private
companies.
ALAN DUNN
INDEPENDENT DIRECTOR
CHAIRMAN - BFW AUDIT
COMMITTEE
Former CEO and Chairman of
McDonald’s NZ from 1993 to
2003. In 2004 Alan became
Chicago based VP Operations,
then Regional VP Nordics and
Managing Director Sweden until
retirement from McDonalds in
2007.
JOSEF ROBERTS
GROUP CEO
Josef is the Group CEO and
is responsible for the overall
direction and management of
the business.
Former CEO and founder of
Red Bull Australasia.
TYRONE FOLEY
CHIEF OPERATING OFFICER
Tyrone is the group COO
and is responsible for the
management of all departments
at Head Office
and daily operations in all
markets around the world.
Tyrone’s previous management
roles have been with
McDonald’s and BP.

INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF BURGER FUEL GROUP LIMITED
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Burger Fuel Group Limited and its subsidiaries (‘the
Group’) on pages 19 to 69, which comprise the consolidated statement of financial position as at 31 March
2020, and the consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2020, and its consolidated financial performance
and its consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (‘NZ IFRS’) and International Financial Reporting Standards
(‘IFRS’).
Our report is made solely to the Shareholders of the Group. Our audit work has been undertaken so that
we might state to the Shareholders of the Group those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Shareholders of the Group as a body, for our audit work, for our report
or for the opinions we have formed.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with Professional and Ethical Standard 1 (Revised) International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand
Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code
of Ethics for Professional Accountants (‘IESBA Code’), and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor, our firm carries out other assignments for Burger Fuel Group Limited
and its subsidiaries in the area of taxation compliance services. The provision of these other services has not
impaired our independence.
Emphasis of Matter – Increased level of inherent uncertainty in the significant accounting estimates and
judgements applied by Management in the preparation of these financial statements, arising from the
ongoing global pandemic of coronavirus disease 2019
We draw attention to notes 2 and 29 of the financial statements, which describe the impact of the ongoing
global pandemic of the novel coronavirus disease 2019 (‘COVID-19’), and Management’s assessment of and
responses to, this pandemic on the Group. Since March 2020 the COVID-19 pandemic has lowered overall
economic activity and confidence, resulting in significant volatility and instability in financial markets and
economic uncertainty. Consequently, there has been an increase in the level of inherent uncertainty in the
critical accounting estimates and judgements applied by Management in the preparation of these financial
T
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+64 9 309 0463

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+64 9 309 4544

E
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auckland@bakertillysr.nz

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www.bakertillysr.nz
Level 9, 45 Queen Street,

Auckland 1010

PO Box 3899, Auckland 1140

New Zealand
statements, described in notes 2, 14 and 29 of the financial statements. As at the date of the signing of these
financial statements, all reasonably known and available information with respect to the COVID-19 pandemic
has been taken into consideration in the critical accounting estimates and judgements applied by Management,
and all reasonably determinable adjustments have been made in preparing these financial statements.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements of the current year. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit matter
Impairment assessment of Goodwill
As disclosed in Note 14 of the Group’s consolidated
financial statements, the Group has goodwill of
$1.6M, allocated across two cash-generating units
(‘CGUs’). Goodwill was significant to our audit
due to the size of the assets and the subjectivity,
complexity and uncertainty inherent in the
measurement of the recoverable amount of these
CGUs. The measurement of a CGU’s recoverable
amount includes the assessment and calculation of
its ‘valuein-use’.
Management has completed the annual impairment
test for each of the two CGUs as at 31 March 2020.
This annual impairment test involves complex
and subjective estimation and judgement by
Management on the future performance of the
CGU’s, discount rates applied to the future cash
flow forecasts and future market and economic
conditions.
Our audit procedures related to the key audit
matter, among others, included:
•
Evaluating management’s determination of the
Group’s CGUs based on our understanding of the
nature of the Group’s business and the economic
environment. We also analysed the internal
reporting of the Group to assess how the CGU’s
are monitored and reported;
•
Challenging management’s assumptions and
estimates used to determine the recoverable
value of its indefinite life intangible assets,
including those relating to forecasted revenue,
cost, capital expenditure and discount rates, by
adjusting for future events and corroborating the
key market related assumptions to external data
(including the consideration of the impact of the
COVID-19 pandemic).

Key Audit Matter
How our audit addressed the key audit matter
Procedures included:
•
Evaluating the logic of the value-in-use
calculations supporting Management’s annual
impairment test and testing the mathematical
accuracy of these calculations;
•
Evaluating Management’s process regarding the
preparation and review of forecasts;
•
Comparing forecasts to Board approved
forecasts;
•
Evaluating the historical accuracy of the
Group’s forecasting to actual historical
performance;
•
Evaluating the inputs to the calculation of the
discount rates applied;
•
Engaging our own internal valuation experts
to evaluate the inputs to the calculation of the
discount rates applied;
•
Evaluating Management’s sensitivity analysis
for reasonably possible changes in key
assumptions; and
•
Performing our own sensitivity analyses
for reasonably possible changes in key
assumptions, the two main assumptions
being: the discount rate and forecast growth
assumptions.
• Evaluating the disclosures related to goodwill
which are included in the Group’s consolidated
financial statements.
Key Audit Matter
How our audit addressed the key audit matter
Adoption of NZ IFRS 16 Leases

As disclosed in Note 4 of the Group’s
consolidated financial statements, the Group has
adopted NZ IFRS 16 Leases from 1 April 2019,
using the modified retrospective approach. This
resulted in the recognition of a lease receivable
of $22.8M, a rightof-use asset of $7.8M and a
lease liability of $30.8M as at 31 March 2020.
The adoption of NZ IFRS 16 was significant
to our audit due to the size of the assets and
liabilities recognised, complexity of applying
the new standard and the assumptions required
by Management for the calculations of the
lease balances and interest and depreciation
expenses.
Management has engaged an accounting expert
to assist in the evaluation of the impact of NZ
IFRS 16 adoption.
Management has completed calculations of the
lease balances for all occupied leases and non-
occupied (subleased) leases as at 1 April 2019,
upon adoption, and as at 31 March 2020.
These calculations require estimates regarding
the lease term and the discount rate. As well,
Management has exercised their judgement
in determining the recoverability of the lease
receivable for the sublease arrangements.
Our audit procedures related to the key audit
matter, among others, included:
•
Assessing Management’s process relating to
the identification, recording, recognition and
measurement of leases within the scope of NZ
IFRS 16;
•
Assessing Management’s judgements made in
applying allowable practical expedients against
the requirements of NZ IFRS 16;
•
Assessing Management’s estimates of the
expected terms of leases (including the
consideration of the impact of the COVID-19
pandemic);
•
Engaging our own internal accounting technical
experts to evaluate the treatment of non-
occupied (subleased) properties;
•
Evaluating the key assumptions used by
Management, including the incremental
borrowing rates applied to the lease portfolio;
•
For a sample of leases:
•
Agreeing key inputs in the lease calculation to
the underlying lease agreement;
•
Recalculating the lease liability, right-of-
use asset and lease receivable based on the
key inputs noted above and compared our
recalculations to the balances recognised by
the Group;
•
Recalculating depreciation expense, interest
expense and interest receivable based on the
key inputs noted above and compared our
recalculations to the balances recognised by
the Group; and
•
Checking the appropriateness of the
classification of the lease liability between
current and non-current based on the
remaining term of the lease.
•
Assessing Management’s estimates of any
impairment of right-of-use assets (including the
consideration of the impact of the COVID-19
pandemic);
•
Assessing the recoverability of the lease
receivable based on Management’s assessment of
impairment using the expected credit loss model
(including the consideration of the impact of the
COVID-19 pandemic); and
•
Evaluating the presentation and disclosures
related to leases which are included in the
Group’s consolidated financial statements.

Responsibilities of the Directors for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of the consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISAs (NZ), we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
•
Conclude on the appropriateness of the use of the going concern basis of accounting by the Directors and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent fairly the underlying
transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current year and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is N S de Frere.
BAKER TILLY STAPLES RODWAY AUCKLAND
Auckland, New Zealand
31 July 2020

19
ANUL REPORTTR2EP03 R4N A 0P89 8
20202019
Note$$
Revenue520,345,73620,899,915
Operating Expenses6(17,973,431)(18,408,971)
Profit before Interest, Taxation, Depreciation
and Amortisation2,372,3052,490,944
Depreciation on Property, Plant and Equipment11(545,765)(577,343)
Depreciation on Right of Use Assets20(630,329)-
Amortisation14(143,084)(174,648)
(1,319,178)(751,991)
Profit / (Loss) before Interest and Taxation 1,053,1271,738,953
Interest Income113,223127,751
Interest Income leases non-occupied201,410,421-
Interest Expense(345)(10,925)
Interest Expense leases occupied20(442,632)-
Interest Expense leases non-occupied20(1,410,421)-
(329,754)116,826
Profit / (Loss) before Taxation723,3731,855,779
Income Tax Expense7(217,895)(619,438)
Net Profit / (Loss) attributable to shareholders505,478 1,236,341
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
Movement in Foreign Currency Translation Reserve21(117,216)(52,968)
Total comprehensive income 388,262 1,183,373
Basic Earnings per Share (cents)260.942.18
Diluted Earnings per Share (cents)260.942.18
The attached notes form part of these financial statements
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
BFG ANNUAL REPORT 2020
/ CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

21
BFG ANNUAL REPORT 2020
20
FOR THE YEAR ENDED 31 MARCH 2020
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
20202019
Shareholders’ equityNote$$
Contributed equity1813,594,82513,864,066
Retained earnings19(1,980,020)(2,541,498)
Foreign currency translation reserve21(441,299)(324,083)
11,173,506 10,998,485
Current assets
Cash and cash equivalents175,570,1675,503,473
Trade and other receivables93,189,3343,021,234
Income tax receivable184,326-
Lease Receivable: non-occupied201,518,310-
Inventories10565,217621,618
Loans13174,325170,900
11,201,6799,317,225
Non-current assets
Property, plant and equipment112,462,0172,538,702
Right of use asset - leases207,828,007-
Lease receivable non-occupied2021,238,840-
Deferred tax asset7689,104715,959
Loans13134,140-
Intangible assets142,421,4452,544,788
34,773,5535,799,449
Total Assets45,975,23215,116,674
Current liabilities
Trade and other payables151,470,9491,498,449
Contract Liability15412,620263,215
Lease Liability20423,538-
Lease Liability: non-occupied201,518,310-
Income tax payable-152,013
Provisions16436,456414,631
4,261,8732,328,308
The attached notes form part of these financial statements
FOR THE YEAR ENDED 31 MARCH 2020
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
20202019
Non-current liabilities
Contract Liability151,625,9981,751,831
Lease Liability207,635,815-
Lease Liability non-occupied2021,238,840-
Provisions1639,20038,050
30,539,8531,789,881
Total liabilities34,801,7264,118,189
Net assets11,173,50610,998,485
Net tangible assets per share ($ per share)300.150.14
For and on behalf of the board who approved these financial statements for issue on 31st July 2020.
DirectorDirector
The attached notes form part of these financial statements
/ CONSOLIDATED STATEMENT OF FINANCIAL POSITION

23
BFG ANNUAL REPORT 2020
22
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
2020
Contributed
Equity
Foreign
Currency
Translation
Reserve
Retained
EarningsTotal Equity
Note$$$$
Balance as at 31 March 201913,864,066(324,083)(2,541,498) 10,998,485
Impact of Changes in Accounting
Policies4-- 56,00056,000
Balance as at 1 April 201913,864,066(324,083)(2,485,498)11,054,485
Buy Back and cancellation of Ordinary
Shares(269,241)--(269,241)
Movement in foreign currency
translation reserve recognised in other
comprehensive income-(117,216)-(117,216)
Net Profit for the year ended
31 March 2020--505,478505,478
Total comprehensive income-(117,216)505,478388,262
Balance as at 31 March 202013,594,825(441,299)(1,980,020)11,173,506
2019
Contributed
Equity
Foreign
Currency
Translation
Reserve
Retained
EarningsTotal Equity
Note$$$$
Balance as at 31 March 201815,811,011(271,115)(2,336,651) 13,203,245
Impact of Changes in Accounting
Policies--(1,441,188)(1,441,188)
Balance as at 1 April 201815,811,011(271,115)(3,777,839)11,762,057
Buy Back and cancellation of Ordinary
Shares(1,946,945)--(1,946,945)
Movement in foreign currency
translation reserve recognised in other
comprehensive income-(52,968)-(52,968)
Net Profit for the year ended 31 March
2019--1,236,341 1,236,341
Total comprehensive income-(52,968)1,236,341 1,183,373
Balance as at 31 March 201913,864,066(324,083)(2,541,498) 10,998,485
The attached notes form part of these financial statementsThe attached notes form part of these financial statements
20202019
Cash flows from operating activities Note$$
Cash was provided from:
Receipts from customers20,260,64820,849,474
Interest received113,223127,751
Goods and services tax received / (paid)(5,547)13,867
20,368,32420,991,092
Cash was applied to:
Payments to suppliers & employees(18,066,261)(17,908,340)
Interest paid(345)(10,925)
Interest on leases(442,632)-
Taxes paid(527,380)(883,146)
(19,036,618)(18,802,411)
Net cash flows provided from operating activities271,331,7062,188,681
Cash flows from investing activities
Cash was provided from:
Repayments from suppliers & staff12,4368,711
Sale of property, plant and equipment 50,05476,794
62,49085,505
Cash was applied to:
Acquisition of intangible assets14(21,507)(194,247)
Advances to franchisee and staff(150,000)(46,611)
Acquisition of property, plant & equipment11(512,459)(870,799)
Share buyback & cancellation18(269,241)(1,946,945)
(953,207)(3,058,602)
Net cash flows applied to investing activities(890,717)(2,973,097)
FOR THE YEAR ENDED 31 MARCH 2020
CONSOLIDATED STATEMENT OF
CASH FLOWS
BFG ANNUAL REPORT 2020
/ CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from financing activities
Cash was applied to:
Lease Liability(398,984)-
Net cash flows applied to financing activities(398,984)-
Net movement in cash and cash equivalents42,005(784,416)
Exchange gains / (loss) on cash and cash equivalents24,689(12,989)
Opening cash and cash equivalents5,503,4736,300,878
Closing cash and cash equivalents175,570,1675,503,473
/ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

25
BFG ANNUAL REPORT 2020
24
1) Reporting entities and statutory base
Burger Fuel Group Limited (“BFG”) is a Company
registered under the Companies Act 1993 and is listed with
the New Zealand Stock Exchange (NZSX). The Company is
a Financial Markets Conduct (FMC) reporting entity for the
purposes of the Financial Markets Conduct Act 2013 and
its financial statements comply with that Act.
The financial statements presented are those of Burger
Fuel Group Limited (the ‘Group’). A list of its wholly owned
subsidiaries is listed in note 12 of the financial statements.
The Group operates as a franchisor of gourmet burger
and chicken restaurants and is a for-profit oriented entity,
incorporated and domiciled in New Zealand.
2) Basis of preparation
Statement of Compliance
The financial statements have been prepared in
accordance with New Zealand Generally Accepted
Accounting Practice (“NZ GAAP”) and the requirements
of the Companies Act 1993, the Financial Reporting Act
2013 and the Financial Markets Conduct Act 2013. They
comply with the New Zealand equivalents to International
Financial Reporting Standards (“NZ IFRS”), and other
applicable Financial Reporting Standards as appropriate
for, for-profit oriented entities. For the purposes of
complying with NZ GAAP, the Group is a Tier 1 for-profit
entity as defined in the XRB’s Accounting Standards
Framework. These financial statements also comply with
International Financial Reporting Standards (“IFRS”).
These financial statements are presented in New Zealand
dollars ($), which is the Company’s functional currency
and they have been rounded to the nearest dollar.
Where necessary, comparative information has been
reclassified and repositioned for consistency with current
year disclosures.
The financial statements were approved by the Board
of Directors on the date set out on page 21 of the Annual
Report.
Basis of Measurement
These financial statements have been prepared under the
historical cost convention and on a going concern basis.
Use of Estimates and Judgements
The preparation of financial statements in conformity with
NZ IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during
the year. Actual results could differ from those estimates.
The principal areas of judgments in preparing these
financial statements are set out below:
IFRS16 – Expected Lease Term
The Group has estimated the lease terms for the occupied
and non-occupied leases will run to their final expiry,
taking into account all optional exercise periods. This is
based on the fact that the Group and franchisee spends
a significant amount on the store fitout, thus it is in their
best interest to extend the lease term for as long as
possible while the asset is generating revenue.
Impairment of Receivables and Lease Receivables
The Group maintains an allowance for estimated losses
expected to arise from customers being unable to make
required payments. This allowance takes into account
known commercial factors impacting specific customer
accounts, as well as the overall profile of the Group’s
debtors’ portfolio. In assessing the allowance, factors such
as past collection history, the age of receivable balances,
the level of activity in customer accounts, as well as
general, macro-economic trends, are taken into account.
The impairment of receivables is detailed in note 9 of the
financial statements.
Accounting for Income Tax
Preparation of the annual financial statements requires
management to make estimates as to, amongst other
things, the amount of tax that will ultimately be payable,
the availability of losses to be carried forward and the
amount of foreign tax credits it will receive in each of the
jurisdictions it operates in.
Deferred tax assets are recognised for deductible
temporary differences and unused tax losses (where
applicable) only to the extent that it is probable that
future taxable amounts will be available to utilise those
temporary differences and losses. Actual results may
differ from these estimates as a result of reassessment by
management or taxation authorities.
Refer to note 7 for additional information on accounting
for income tax.
Impairment of Goodwill
The Group reviews goodwill for indicators of impairment
at least on an annual basis. This requires an estimation of
the fair value of the cash-generating units to which the
Goodwill is allocated. Estimating the fair value amount
requires management to make an estimate of the
expected future cash flows from the cash-generating unit
in the forecasted period and also to determine a suitable
discount rate in order to calculate the present value of
those cash flows. The Group’s longer-term forecasts
are subject to a higher level of uncertainty as it mostly
depends on consumer spending, market conditions and
level of competition. For additional information on the
impairment test, reference is made to note 14.1 - Intangible
Assets.
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2) Basis of preparation (continued)
COVID-19
In the last week of our financial year, conditions became
markedly more challenging, complex and uncertain
for the whole of New Zealand, including BFG, with the
country entering an unprecedented lockdown and State of
Emergency over the COVID-19 global pandemic.
COVID-19 Alert Level 4 came into force at 11:59pm
Wednesday 25 March 2020; New Zealand moved to Alert
Level 3 at 11:59pm on Monday 27 April 2020 and Alert
Level 2 at 11.59pm Wednesday 13 May 2020.
The NZ BurgerFuel, Winner Winner & Shake Out stores
were completely closed during Alert Level 4, thus the
Group generated no royalty, advertising or sales income
during this period. The NZ stores reopened in Alert
Level 3 with limited services, providing click and collect,
kerbside pickup and delivery services in some stores. Alert
Level 2 allowed dine in service but had social distancing
restrictions and at Alert Level 1 the stores are operating as
normal.
While we know there will be significant impacts on the
broader New Zealand and global economy, and on our
business, there is currently a high level of uncertainty on
the scale of those impacts. In the face of this uncertainty,
investors and stakeholders should know that the Group is
focused on tight, disciplined governance and management
to ensure BFG comes through this crisis as strongly as
it possibly can. Management has determined that the
Group has sufficient available cash and cash equivalents
to maintain the application of the going concern basis
of accounting for the 12 months from the date of signing
these financial statements.
The implications of COVID-19 placed even greater
importance on cost management. Significant cost
reductions have been identified and BFG is committed to
delivering them in FY21.
Whilst we are expecting total system sales to be down
in FY21 it is too early to predict at what level. To date
most of the stores are trading better than first thought
with only the CBD stores taking longer to recover from
the lockdown period. Management puts this down to the
delays with office workers returning to the CBD’s.
Whilst the Group and franchised stores lost revenue during
the lockdown the Government wage subsidy and various
rent reductions assisted with cashflow thus there was no
impact on the Group’s receivables at year end.
The reduced revenue in FY20 and in FY21 due to COVID-19
did impact the impairment of goodwill calculation for
the Henderson and Takapuna stores. The revised sales
estimates did not result in a goodwill impairment.
There was no impact on the tax calculations due to
COVID-19.
3) Specific accounting policies
The following is a summary of specific accounting policies
adopted by the Group in the preparation of the financial
statements that materially affect the measurement
of financial performance, cash flows and the financial
position.
a) Basis of Consolidation
Subsidiaries
Subsidiaries are all entities over which the Group has
control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to
affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
Inter-company transactions, balances and gains or
losses on transactions between Group companies are
eliminated. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency
with the policies adopted by the Group.
b) Revenue Recognition
Revenue arises mainly from the sale of food and
beverage products from our fast-casual stores that the
Group owns directly and from franchise and royalty
arrangements that it has in place with franchise holders
both in New Zealand and offshore.
To determine whether to recognise revenue, the Group
follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance
obligations
5. Recognising revenue when or as its performance
obligation(s) are satisfied.
Revenue is recognised either at a point in time or over
time, when (or as) the Group satisfies performance
obligations by transferring the promised goods or
services to its customers.
The transaction price for a contract excludes any
amounts collected on behalf of third parties.
The Group recognises contract liabilities for
consideration received in respect of unsatisfied
performance obligations and reports these amounts as
other liabilities in the statement of financial position.
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27
BFG ANNUAL REPORT 2020
26
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3) Specific accounting policies (continued)
Government grants are not recognised until there is
reasonable assurance that the Group will comply with
the conditions attaching to them and that the grants
will be received. Government grants are recognised in
profit or loss on a systematic basis over the periods
in which the Group recognises as expenses the
related costs for which the grants are intended to
compensate. Government grants that are receivable as
compensation for expenses or losses already incurred
or for the purpose of giving immediate financial
support to the Group with no future related costs are
recognised in profit or loss in the period in which they
become receivable.
Sale of goods
The Group is in the business of providing fast-casual
food solutions to its customers and franchisees.
Revenue from contracts with customers is recognised
when control of the goods is transferred to the
customer or franchisee at an amount that reflects
the consideration to which the Group expects to be
entitled in exchange for those goods or services.
The Group has concluded that it is the principal in its
revenue arrangements, because it controls the goods
or services before transferring them to the customer.
Management has determined the performance
obligation to deliver the food & proprietary products is
completed when control of goods passes to customer.
Revenue is recognised at this time.
Franchise fees
The Group recognises revenue derived from its
franchise operations in New Zealand, USA and the
Middle East on a straight-line basis over a period of
time that the franchise agreement is in place, which is
generally 10 years. This is the period of time over which
the performance obligation, the use of the intellectual
property, is satisfied. Payment is received upfront upon
signing the franchise contract.
The transaction price includes a variable price
consideration for the possible transfer of franchise
rights. This is unknown until and if the transaction is
completed. Given the high uncertainty of this transfer,
the transaction price for franchise contract is not
adjusted for these transferred franchise rights until the
Group is notified of the sale.
Royalties from Franchises and Master Licencing
Arrangements (MLAs)
The Group recognises revenue derived from its
Franchises and MLAs over time, based on sales that
are reported back to the Group on a monthly basis for
sales that occurred in that month. Payment is received
on a monthly basis.
The performance obligation, to provide access to
the brand intellectual property, is satisfied over time.
Royalty revenue is recognised as the underlying sales
take place, in accordance with sales-based royalties.
Training fees
The Group recognises revenue from training over time
as each 12-week training course is provided to the new
operators of franchises. Payment is received upfront
when the new operator signs a franchise agreement.
Advertising revenue
The Group recognises advertising revenue derived from
its Franchises and MLAs over time, based on sales that
are reported back to the Group on a monthly basis for
sales that occurred in that month. Payment is received
on a monthly basis.
The performance obligation, to provide access to the
brand intellectual property and advertising services, is
satisfied over time. Advertising revenue is recognised
as the underlying sales take place, in accordance with
sales-based royalties.
Property management fees
The Group recognises revenue from property
management services on a straight-line basis over 12
months. This reflects the period of time over which the
Group provides property management services to each
franchise.
Other revenue
Other revenue includes incentives, bonuses and
rebates received by the Group from its suppliers in
relation to volume of goods and services that have
been purchased by franchise holders. Rebate revenue
is recognised when the sale of the underlying asset
is completed. Other revenues are recognised when
reliable estimates of the amounts due to the Group are
deemed to be highly probable.
Significant financing components
Using the practical expedient in NZ IFRS 15, the Group
does not adjust the promised amount of consideration
for the effects of a significant financing component if
it expects, at contract inception, the period between
the transfer of the promised good or service to the
customer and when the customer pays for that good or
service will be one year or less.
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
3) Specific accounting policies (continued)
c) Accounts Receivable
Trade receivables and contract assets
The Group makes use of a simplified approach in
accounting for trade receivables as well as contract
assets and records the loss allowance as lifetime
expected credit losses. These are the expected
shortfalls in contractual cash flows, considering the
potential for default at any point during the life of the
financial instrument. In calculating, the Group uses its
historical experience, external indicators and forward-
looking information to calculate the expected credit
losses.
The Group assesses the impairment of all its trade
receivables on a specific as well as a collective basis in
order to determine the allowance for credit losses. The
Group recognizes lifetime expected credit losses for
the amount expected to result from default events over
the expected life of the financial asset.
Management has assessed the information available
and concluded that no provision for expected credit
losses was identified.
d) Inventories
Inventories are stated at the lower of cost and net
realisable value after due consideration for excess
and obsolete items. Cost is based on the first in, first
out principle and includes expenditure incurred in
acquiring the inventories and bringing them to their
existing condition and location. Net realisable value
is the estimated selling price in the ordinary course of
business, less estimated selling expenses.
e) Financial Instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised
when the Group becomes a party to the contractual
provisions of the financial instrument.
Financial assets are derecognised when the contractual
rights to the cash flows from the financial assets expire,
or when the financial asset and substantially all the
risks and rewards are transferred. A financial liability
is derecognised when it is extinguished, discharged,
cancelled or expires.
Classification and initial measurement
of financial assets
Except for those trade receivables that do not contain
a significant financing component and are measured
at the transaction price in accordance with NZ IFRS 15,
all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
Financial assets, other than those designated and
effective as hedging instruments, are classified into the
following categories:
• amortised cost
• fair value through profit or loss (FVTPL)
• fair value through other comprehensive income
(FVOCI).
The classification is determined by both:
• the entity’s business model for managing the
financial asset
• the contractual cash flow characteristics of the
financial asset.
All revenue and expenses relating to financial assets
that are recognised in profit or loss are presented
within finance costs, finance income or other financial
items, except for impairment of trade receivables
which is presented within impairment gains (losses) of
financial assets in profit or loss.
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if
the assets meet the following conditions (and are not
designated as FVTPL):
• they are held within a business model whose
objective is to hold the financial assets and collect
its contractual cash flows
• the contractual terms of the financial assets give rise
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at
amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting
is immaterial. The Group’s cash and cash equivalents,
trade and other receivables are classified at amortised
cost as the Group intends to hold them and collect
contractual cash flows.
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

29
BFG ANNUAL REPORT 2020
28
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3) Specific accounting policies (continued)
Financial assets at fair value through profit or loss
(FVTPL)
Financial assets that are held within a different
business model than ‘hold to collect’ or ‘hold to collect
and sell’, and financial assets whose contractual
cash flows are not solely payments of principal and
interest are accounted for at FVTPL. This category
also contains any equity investment not designated
at FVOCI on initial recognition, but the Group did not
have any equity investments during the reporting
period ended 31 March 2020.
Assets in this category are measured at fair value
with gains or losses recognised in profit or loss. The
fair values of financial assets in this category are
determined by reference to active market transactions
or using a valuation technique where no active market
exists.
The Group had no financial assets measured at FVTPL.
Financial assets at fair value through other
comprehensive income (FVOCI)
On initial recognition, the Group may make an
irrevocable election (on an instrument by instrument
basis) to designate investments in equity instruments
as at FVTOCI. Designation at FVTOCI is not permitted
if the equity investment is held for trading or if it is
contingent consideration recognised by an acquirer in
a business combination.
A financial asset is held for trading if:
• it has been acquired principally for the purpose of
selling it in the near term; or
• on initial recognition it is part of a portfolio of
identified financial instruments that the Group
manages together and has evidence of a recent
actual pattern of short term profit taking; or
• it is a derivative (except for a derivative that is a
financial guarantee contract or a designated and
effective hedging instrument).
Investments in equity instruments at FVTOCI are
initially measured at fair value plus transaction costs.
Subsequently, they are measured at fair value with
gains and losses arising from changes in fair value
recognised in other comprehensive income and
accumulated in the investment’s revaluation reserve.
The cumulative gain or loss is not be reclassified to
profit or loss on disposal of the equity investments,
instead, it is transferred to retained earnings.
Dividends on these investments in equity instruments
are recognised in profit or loss in accordance with
IFRS 9, unless the dividends clearly represent a
recovery of part of the cost of the investment.
The Group has no financial assets measured at FVTOCI.
Impairment of financial assets
The Group recognises a loss allowance for expected
credit losses (ECL) on investments in financial assets
that are measured at amortised cost and contract
assets. The amount of expected credit losses is
updated at each reporting date to reflect changes in
credit risk since initial recognition of the respective
financial instrument.
The Group recognises lifetime ECL for trade
receivables and contract assets. The expected credit
losses on these financial assets are estimated using a
provision matrix based on the Group’s historical credit
loss experience, adjusted for factors that are specific
to the debtors, general economic conditions and an
assessment of both the current as well as the forecast
direction of conditions at the reporting date, including
time value of money where appropriate.
For all other financial instruments, the Group
recognises lifetime ECL when there has been
a significant increase in credit risk since initial
recognition. However, if the credit risk on the financial
instrument has not increased significantly since initial
recognition, the Group measures the loss allowance
for that financial instrument at an amount equal to 12
month ECL.
Lifetime ECL represents the expected credit losses
that will result from all possible default events over the
expected life of a financial instrument. In contrast, 12
month ECL represents the portion of lifetime ECL that
is expected to result from default events on a financial
instrument that are possible within 12 months after the
reporting date.
(i) Significant increase in credit risk
In assessing whether the credit risk on a financial
instrument has increased significantly since
initial recognition, the Group compares the risk
of a default occurring on the financial instrument
at the reporting date with the risk of a default
occurring on the financial instrument at the date of
initial recognition. In making this assessment, the
Group considers both quantitative and qualitative
information that is reasonable and supportable,
including historical experience and forward looking
information that is available without undue cost or
effort.
The nature of the Group’s trade receivables means
there is little or no updated credit risk information
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
3) Specific accounting policies (continued)
that is routinely obtained and monitored on an
individual instrument until a customer breaches the
contractual terms.
Irrespective of the outcome of the above assessment,
the Group presumes that the credit risk on a
financial asset has increased significantly since
initial recognition when contractual payments are
more than 30 days past due, unless the Group
has reasonable and supportable information that
demonstrates otherwise.
The Group regularly monitors the effectiveness of
the criteria used to identify whether there has been
a significant increase in credit risk and revises them
as appropriate to ensure that the criteria are capable
of identifying significant increase in credit risk before
the amount becomes past due.
(ii) Definition of default
The Group considers that default has occurred when
a financial asset is more than 90 days past due
unless the Group has reasonable and supportable
information to demonstrate that a more appropriate
default criterion is required.
(iii) Credit impaired financial assets
A financial asset is credit impaired when one or
more events that have a detrimental impact on the
estimated future cash flows of that financial asset
have occurred. Evidence that a financial asset is
credit impaired includes observable data about the
following events:
a. significant financial difficulty of the borrower;
b. a breach of contract, such as a default or past
due event (see (ii) above); and
c. it is becoming probable that the borrower
will enter bankruptcy or other financial
reorganisation.
(iv) Write off policy
The Group writes off a financial asset when there is
information indicating that the borrower is in severe
financial difficulty and there is no realistic prospect
of recovery, e.g. when the borrower has been placed
under liquidation or has entered into bankruptcy
proceedings. Financial assets written off may still be
subject to enforcement activities under the Group’s
recovery procedures, taking into account legal
advice where appropriate. Any recoveries made are
recognised in profit or loss.
(v) Measurement and recognition of expected credit
losses
The measurement of expected credit losses is a
function of the probability of default, loss given
default (i.e. the magnitude of the loss if there is a
default) and the exposure at default. The assessment
of the probability of default and loss given default is
based on historical data adjusted by forward looking
information as described above.
As for the exposure at default, for financial assets,
this is represented by the assets’ gross carrying
amount at the reporting date.
For financial assets, the expected credit loss is
estimated as the difference between all contractual
cash flows that are due to the Group in accordance
with the contract and all the cash flows that the
Group expects to receive, discounted at the original
effective interest rate.
If the Group has measured the loss allowance for a
financial instrument at an amount equal to lifetime
ECL in the previous reporting period, but determines
at the current reporting date that the conditions for
lifetime ECL are no longer met, the Group measures
the loss allowance at an amount equal to 12 month
ECL at the current reporting date, except for assets
for which simplified approach was used.
The Group recognises an impairment gain or loss
in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount
through a loss allowance account.
Loans Receivable and Lease Receivable
at amortised cost
The Group records loans receivable for loans to
suppliers and employees as well as a lease receivable for
leases where the Group is a lessor. The Group records
these at amortised cost using the effective interest
method and assesses these receivables for impairment
under the expected credit loss model, using 12 months
expected losses. This is appropriate as management
have assessed each counterparty as having a low risk of
default and a strong capacity to meet their contractual
cash flow obligations in the near term.
Financial Liabilities
These amounts represent unsecured liabilities for
goods and services provided to the Group prior to
the end of the financial year which are unpaid. Other
financial liabilities are recognised initially at fair value
and subsequently measured at amortised cost using the
effective interest method. The Group’s other financial
liabilities are trade and other payables, and these are
usually paid within 30 days.
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

31
BFG ANNUAL REPORT 2020
30
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3) Specific accounting policies (continued)
f) Share Capital
Ordinary Shares
Incremental costs directly attributable to the issue of
ordinary shares and share options are recognised as a
deduction from equity.
g) Finance Income and Expense
For all financial instruments measured at amortised
cost, interest income and expense is recorded at the
effective interest rate.
h) Property, Plant and Equipment
Recognition and Measurement
Items of property, plant and equipment are measured
at cost less accumulated depreciation and impairment
losses.
Cost includes expenditures that are directly attributable
to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and
direct labour, any other costs directly attributable
to bringing the asset to a working condition for
its intended use, and the costs of dismantling and
removing the items and restoring the site on which they
are located. Purchased software that is integral to the
functionality of the related equipment is capitalised as
part of that equipment.
When parts of an item of property, plant and equipment
have different useful lives, they are accounted for as
separate items (major components) of property, plant
and equipment.
Subsequent Costs
The cost of replacing part of an item of property, plant
and equipment is recognised in the carrying amount
of the item if it is probable that the future economic
benefits embodied within the part will flow to the
Group and its cost can be measured reliably. The costs
of the day-to-day servicing of property, plant and
equipment are recognised in profit and loss as incurred.
Property, plant and equipment are stated at cost less
accumulated depreciation. The following depreciation
rates have been used:
Motor Vehicles 24% - 40% diminishing value
Leasehold Improvements 10% - 40% diminishing value
Information Technology 20% - 75% diminishing value
Furniture & Fittings 10% - 67% diminishing value
Kitchen Equipment 8% - 67% diminishing value
Office Equipment 8% - 67% diminishing value
Where an asset is disposed of, the gain or loss
recognised in the Statement of Comprehensive Income
is calculated as the difference between the sale price
and the carrying amount of the asset.
i) Leased Assets
Operating Leases (2019)
Operating lease payments in FY19 are recognised as an
expense in the periods the amounts are payable in the
Statement of Comprehensive Income on a straight-line
basis.
IFRS 16 (2020)
As a lessee
For the year ended 31 March 2020, leases are presented
under NZ IFRS 16. At the commencement date of a
lease (other than leases of 12 months or less and leases
of low value assets), the Group recognises a right of use
asset, representing its right to use the underlying asset
and a lease liability, representing its obligation to make
lease payments to the lessor.
Initial measurement
• Initial measurement of the right of use (‘ROU’)
assets (occupied leases) includes the initial
present value of the lease liability, the initial direct
costs, prepayments made to lessor, less any lease
incentives received from the lessor and restoration,
removal and dismantling costs. These amounts
are discounted using the interest rate implicit
in the lease, or, if the interest rate implicit in the
lease cannot be readily determined, the Group’s
incremental borrowing rate;
• Initial measurement of the lease liability (occupied)
reflects the present value of lease payments over
the term of the lease, including reasonably certain
renewals. The lease payments are discounted using
the interest rate implicit in the lease, or, if the
interest rate implicit in the lease cannot be readily
determined, Group’s incremental borrowing rate
Subsequent measurement:
• ROU asset: Carried at cost less depreciation,
calculated based on NZ IAS 16 ‘Property, plant
and equipment’, based on the lease term, and
impairment using NZ IAS 36 ‘Impairment of Assets’
• Lease liability: Accrete the liability based on the
effective interest method, using a discount rate
determined at lease commencement (as long as a
reassessment and a change in the discount rate have
not occurred) and reduce the liability by payments
made.
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
3) Specific accounting policies (continued)
As a lessor
When the Group is an intermediate lessor, it accounts
for its interests in the head lease and the sub-lease
separately. It assesses the lease classification of a
sub-lease with reference to the right-of-use asset
arising from the head lease, not with reference to the
underlying asset. If a lease transfers substantially all
of the risks and rewards incidental to the right-of-use
asset, it is treated as a finance lease
The Initial measurement of the present value of
the lease liability is offset with a lease receivable,
representing its right to receive lease payments from a
sublessee
Initial measurement
• Initial measurement of the lease receivable (non-
occupied leases) includes the initial present
value of the lease payments that are not paid at
the commencement date, discounted using the
interest rate implicit in the lease, or, if the interest
rate implicit in the sublease cannot be readily
determined, the discount rate used for the head
lease (adjusted for any initial direct costs associated
with the sublease); and
• Initial measurement of the lease liability (non-
occupied) reflects the present value of lease
payments over the term of the lease, including
reasonably certain renewals. The lease payments
are discounted using the interest rate implicit in
the lease, or, if the interest rate implicit in the lease
cannot be readily determined, Group’s incremental
borrowing rate
Subsequent measurement:
• Lease receivable: Accrete the receivable based on
the effective interest method, using a discount rate
determined at lease commencement (as long as
a reassessment and a change in the discount rate
have not occurred) and reduce the receivable by
payments made; and
• Lease liability: Accrete the liability based on the
effective interest method, using a discount rate
determined at lease commencement (as long as a
reassessment and a change in the discount rate have
not occurred) and reduce the liability by payments
made.
Variable lease payments, such as percentage rent
based on turnover, not included in the measurement
of lease liabilities are recognised as an expense when
incurred.
Leases of 12-months or less and leases
of low value assets
Lease payments made in relation to leases of
12-months or less and leases of low value assets (for
which a right of use asset and a lease liability has not
been recognised) are recognised as an expense on a
straight-line basis over the term of the lease.
j) Intangible Assets
The Group’s intangible assets have finite useful lives
with the exception of Goodwill and are stated at cost
less accumulated amortisation. The intangible assets
are amortised in the Statement of Comprehensive
Income on a straight line basis over the period during
which benefits are expected to be derived, which is
up to 10 years. Where there has been an impairment
in the value, the balance has been written off in the
Statement of Comprehensive Income.
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied
in the intangible asset to which it relates. All other
expenditure is recognised in the Statement of
Comprehensive Income when incurred.
As part of a business combination, an acquirer may
acquire a right that it had previously granted to
the acquiree to use one or more of the acquirer’s
recognised or unrecognised assets. An example of
such rights include a right to use the acquirer’s trade
name under a franchise agreement. A reacquired right
is an identifiable intangible asset that the acquirer
recognises separately from goodwill. Reacquired rights
are initially valued at the present value of the expected
future cash flows, and subsequently amortised on
a straight-line basis over its useful life, being the
remaining contractual period without considering
contractual extension possibilities, but not exceeding
10 years.
k) Employee Benefits
Short-term Benefits
Short-term employee benefit obligations are measured
on an undiscounted basis and are expensed as the
related service is provided.
A provision is recognised for the amount expected to
be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive
obligation to pay this amount as a result of past service
provided by the employee and the obligation can be
estimated reliably.
The Group pays contributions to the Kiwisaver
superannuation plans. The Group has no further
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

33
BFG ANNUAL REPORT 2020
32
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3) Specific accounting policies (continued)
payment obligations once the contributions have
been paid. The contributions are recognised as an
employee benefit expense when they are due. Prepaid
contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future
payments is available.
l) Taxation
Income tax expense comprises current and deferred
tax. Current and deferred tax are recognised as an
expense or income in the profit or loss, except when
they relate to items that are recognised outside profit
or loss (whether in other comprehensive income
or directly in equity), in which case the tax is also
recognised outside profit or loss.
Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any
adjustment to tax payable in respect of previous years.
Deferred tax is provided using the liability method,
providing for temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation
purposes. Temporary differences are not provided for
the initial recognition of assets or liabilities that affect
neither accounting nor taxable profit.
The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the
carrying amounts of assets and liabilities, using tax
rates enacted or substantively enacted at the balance
date. A deferred tax asset is recognised only to the
extent that it is probable that future taxable profits will
be available against which the asset can be utilised.
Deferred tax assets are reduced to the extent that it is
no longer probable that the related tax benefit will be
realised.
m) Goods and Services Tax (GST) &
Value Added Tax (VAT)
The Statement of Comprehensive Income and Cash
Flows has been prepared so that all components
are stated exclusive of GST and VAT. All items in the
Statement of Financial Position are stated net of
GST and VAT, with the exception of receivables and
payables, which include GST and VAT invoiced. The
operations of the Group comprise both exempt and
non-exempt supplies for GST and VAT purposes.
n) Foreign Currency
Foreign Currency Transactions
Transactions in foreign currencies are translated
into the functional currencies of the entities
within the Group at exchange rates at the date of
the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting
date are retranslated to the functional currency at the
exchange rate at that date. The foreign currency gain
or loss on monetary items is the difference between
amortised cost in the functional currency at the
beginning of the period, adjusted for effective interest
and payments during the period, and the amortised
cost in foreign currency translated at the exchange rate
at the end of the period. Foreign currency differences
arising on retranslation are recognised in the profit or
loss.
Foreign Operations
The assets and liabilities of foreign operations are
translated to New Zealand dollars at exchange rates
at the reporting date. The revenue and expenses of
foreign operations are translated to New Zealand
dollars at the average exchange rates for the period
where this rate approximates the rate at the date of the
transaction.
Foreign currency differences are recognised in the
Foreign Currency Translation Reserve (FCTR). When
a foreign operation is disposed of, in part or in full,
the relevant amount in the FCTR is transferred to the
Statement of Comprehensive Income.
o) Statement of Cash Flows
Cash and cash equivalents comprise cash at bank
and call deposits. Investing activities comprise the
purchase and sale of fixed assets, acquisition of a
subsidiary and intangible assets along with any funding
made available or repaid from franchisees. Financing
activities comprise any changes in equity and debt and
the payment of dividends (if any). Operating activities
include all transactions and other events that are not
investing or financing activities.
p) Earnings and Net Tangible Assets Per Share
The Group presents basic and diluted Earnings Per
Share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to
ordinary shareholders of the Group by the weighted
average number of shares outstanding during the year.
Diluted EPS is calculated by adjusting the profit or loss
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
3) Specific accounting policies (continued)
attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares, which
includes share options granted to employees.
The Group also presents Net Tangible Assets Per Share
for its ordinary shares and it is calculated by dividing
the net tangible assets of the Group by the number of
shares outstanding at the end of the year.
q) Segment Reporting
Operating segments have been identified based on the
information provided to the chief operating decision
maker; being the Board of Directors.
The Group operates in four operating segments – these
consist of the following geographical locations, New
Zealand, Australia, United States of America and the
Middle East.
There have been no changes from prior years in the
measurement methods used to determine reported
segment profit or loss.
r) Goodwill
Goodwill represents the future economic benefits
arising from a business combination that are not
individually identified and separately recognised.
Goodwill is carried at cost less accumulated
impairment losses. Refer to Note 14.1 for a description
of impairment testing procedures.
s) Impairment Testing of Goodwill, Other Intangible
Assets and Non-financial Assets
For impairment assessment purposes, assets are
grouped at the lowest levels for which there are largely
independent cash inflows (cash-generating units).
As a result, some assets are tested individually for
impairment and some are tested at cash-generating
unit level. Goodwill is allocated to those cash-
generating units that are expected to benefit from
synergies of the related business combination and
represent the lowest level within the Group at which
management monitors goodwill.
Cash-generating units to which goodwill has been
allocated (determined by the Group’s management as
equivalent to its operating segments) are tested for
impairment at least annually. All other individual assets
or cash-generating units are tested for impairment
whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by
which the asset’s or cash-generating unit’s carrying
amount exceeds its recoverable amount, which is the
higher of fair value less costs to sell and value-in-use.
To determine the value-in-use, management estimates
expected future cash flows from each cash-generating
unit and determines a suitable interest rate in order to
calculate the present value of those cash flows.
The data used for impairment testing procedures are
directly linked to the Group’s latest approved budget,
adjusted as necessary to exclude the effects of future
reorganisations and asset enhancements. Discount
factors are determined individually for each cash-
generating unit and reflect management’s assessment
of respective risk profiles, such as market and asset-
specific risks factors.
The carrying amounts of the Group’s non-financial
assets, other than inventories and deferred tax assets
are reviewed at each reporting date to determine
whether there is any indication of impairment. If any
such indication exists then the asset’s recoverable
amount is estimated.
An impairment loss is recognised if the carrying
amount of an asset exceeds its recoverable amount.
Impairment losses are recognised in the Statement of
Comprehensive Income.
Impairment losses for cash-generating units reduce
first the carrying amount of any Goodwill allocated to
that cash-generating unit. Any remaining impairment
loss is charged pro rata to the other assets in the
cash-generating unit. With the exception of Goodwill,
all assets are subsequently reassessed for indications
that an impairment loss previously recognised may no
longer exist. An impairment charge is reversed if the
cash-generating unit’s recoverable amount exceeds its
carrying amount.
4) New standards adopted
NZ IFRS 16 – Leases
NZ IFRS 16 sets out the principles for the recognition,
measurement, presentation and disclosure of leases.
NZ IFRS 16 replaces NZ IAS 17 Leases. It provides
improved transparency and comparability of the
Group’s lease assets and lease liabilities for investors
and other users of general purpose financial statements
and applies to all Tier 1 and Tier 2 for-profit reporting
entities, and is effective for annual periods beginning
on or after 1 January 2019.
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

35
BFG ANNUAL REPORT 2020
34
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
4) New standards adopted (continued)
The Standard eliminates the classification of leases as
either operating leases or finance leases. Instead, there
is a single lessee model which requires a lessee to
recognise on its statement of financial position assets
and liabilities for all leases with a term of more than 12
months, unless the underlying asset is of low value.
NZ IFRS 16 significantly impacts the Group’s Statement
of Financial Position as they hold the head leases on
most of the New Zealand franchised stores and all of
the company owned stores. In addition to the head
office, company owned stores & warehouse leases, the
Group at 31 March 2020 holds the head leases on 53
franchised Burger Fuel stores in New Zealand.
The Group has elected to apply the following practical
expedients to the measurement of right-of-use
assets and lease liabilities in relation to those leases
previously classified as operating leases under the
predecessor standard:
• Applied a single discount rate to a portfolio of
leases with reasonably similar characteristics.
• Relied on previous assessments of whether
leases are onerous applying NZ IAS 37 Provisions,
Contingent Liabilities and Contingent Assets
immediately before the date of initial application as
an alternative to performing an impairment review.
• Applied the exemption to not recognise right-of-use
assets and liabilities of leases with remaining lease
term of 12 months or less.
• Applied the exemption to not recognise right-of-
use assets and liabilities of leases for which the
underlying assets are of low value.
• Excluded initial direct costs from measuring the
right-of-use asset at the date of initial application.
• Used hindsight, such as in determining the lease
term for contracts that contain options to extend or
terminate a lease.
The Group has elected to apply the modified
retrospective approach to the adoption of NZ IFRS 16.
Under this approach the right-of-use assets (and lease
receivable) are measured as an amount equal to the
lease liability, adjusted by the amount of any prepaid
or accrued lease payments. Accordingly, comparative
financial information presented in these financial
statements has not been restated and continues to be
reported under NZ IAS 17.
Upon adoption, the Group has written off the lease
incentive liability to the opening retained earnings.
This resulted in an adjustment of $56,000 to opening
retained earnings.
The BFG occupied leases
The Group recognised $7.1M right of use asset and
an offsetting lease liability as at 1 April 2019 for the
current occupied leases. This led to the recognition
of a deferred tax asset of $2.0M and a corresponding
deferred tax liability of $2.0M. The weighted average
incremental borrowing rate applied in the calculation
of the initial carrying amount of the lease liability was
6.3%. These current occupied leases are amortised
to the Statement of Comprehensive Income over the
expected lease term of the underlying right of use
assets as depreciation expense.
The BFG non- occupied leases
Previously, the Group classified all its subleases as
operating leases under NZ IAS 17. On transition to NZ
IFRS 16, these leases were reassessed and classified
as finance leases, since the subleases were for the
whole of the remaining terms of the head leases. These
subleases have been accounted for as new finance
leases entered into at the date of initial application.
At transition, the right-of-use assets recognised from
the head leases were disposed by entering into finance
leases. Since the interest rate implicit in the subleases
cannot be readily determined, the discount rates
used for the head leases were used for measuring the
finance lease receivables associated with the subleases.
Since the sublease contracts are further like-for-like
when compared to the head lease (e.g. same duration
and payments), no gain or loss was recognised
on the disposal of the right-of-use assets and the
initial recognition of the finance lease receivables.
Subsequently, the interest income from the subleases
is further equal to the interest expense incurred on the
related head leases.
The Group recognised $23.3M lease receivable
and offsetting lease liability as at 1 April 2019 for
the non-occupied leases that have been sub-let to
the franchisees on the same terms. This led to the
recognition of a deferred tax asset of $6.5M and a
corresponding deferred tax liability of $6.5M. As the
deferred tax asset and deferred tax liability arise in the
same tax jurisdiction, the entity has offset the asset
and liability and therefore no deferred tax recognised
on the non-occupied leases. The weighted average
incremental borrowing rate applied in the calculation
of the initial carrying amount of the lease liability was
6.3%. These non-occupied leases are recognised in
the Statement of Comprehensive Income as interest
income & interest expense over the term of the lease.
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
5) Revenue
20202019
$$
Sale of Goods8,413,4918,687,830
Franchising Fees375,854361,480
Training Fees110,00030,000
Royalties5,684,2255,938,200
Advertising Fees3,725,1683,854,686
Property Management Fees53,00055,000
Gain on Sale of Fixed Assets 11,2507,576
Foreign Exchange Gains / (Losses) 142,89240,791
Other Income1,829,8561,924,352
20,345,73620,899,915
4) New standards adopted (continued)
This expense was $1.4M in FY20 but is negated with a lease interest income in the financial statements to recognise
the fact that the leased premises have been fully sub-let to the franchisees.
The right of use asset, lease receivable & lease liability amount is calculated to the lease expiry together with periods
covered by an option to extend, if the Group is reasonably certain to exercise that option. The Group’s operating
lease commitments are set out in Note 20.
The adoption of NZ IFRS 16 resulted in a reduction of rent expense in the Statement of Comprehensive Income of
$841K (2019: $760K if reporting under IFRS 16).
For more detailed information on the Group’s lease commitments please see Note 20.
Reconciliation
OccupiedNon-occupiedTotal
31 March 2019 lease commitments
(including limited liability clauses)2,534,6925,268,4427,803,134
Adjustment to full lease term
(excluding limited liability clauses)7,601,75428,910,66936,512,423
Impact of discounting to present value at
1 April 2019(3,040,888)(10,877,540)(13,918,428)
Carrying amount of lease liability at 1 April 20197,095,55823,301,57130,397,129
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

37
BFG ANNUAL REPORT 2020
36
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
6) Expenses
20202019
$$
Operating expenses include:
Cost of Sales3,271,3303,690,870
Rental and Operating Lease Costs-760,285
Loss on Disposal of Property, Plant and Equipment7,32773,477
Directors’ Fees (refer Note 25)120,000120,000
Wages and Salaries4,771,3954,931,872
Contributions to a defined contribution plan153,545159,275
Key management personnel costs: (refer Note 25)
- Salary and other short-term benefits2,216,8162,436,216
Auditors’ remuneration – Audit Services – Baker Tilly Staples
Rodway:
- Audit of Financial Statements
104,95088,721
- Tax and other compliance services21,47535,766
Other Operating Expenses 3,056,8263,031,875
Provision for Doubtful Debts (refer Note 9)-(31,709)
Write-off of loan – Shake Out Browns Bay, Auckland133,333-
Write-off of obsolete kitchen Equipment & stock (refer Note 10)89,862-
Advertising Expenditure4,026,5723,112,323
17,973,43118,408,971
The above key management personnel costs include remuneration of the Group Chief Executive and the members of
the executive team.
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
7) Income tax
20202019
$$
Taxation expense is represented by:
Current Tax191,040652,366
Deferred Tax26,855(32,928)
217,895619,438
Profit / (Loss) before income tax expense723,3731,855,779
Timing differences & non-deductible expenses:
50% entertainment48,10250,896
Non-deductible expenditure224,779189,955
Depreciation & Amortisation20,10333,832
IFRS 15 Adjustment(41,429)24,854
IFRS 16 Adjustment231,346-
Accruals(122,902)34,763
Prepayments3,701(18,854)
Make good provision1,1501,200
Holiday pay not paid out within 63 days(30,735)114,660
Provision for Doubtful Debts(218,291)(31,709)
Other 85,152-
200,976399,597
Taxable Profit / (Loss)924,3492,255,376
Profit / (Loss) made by Australian and US Entities-(103,354)
Non-taxable Middle East Income(6,053)(14,984)
Tax Losses utilised(402,740)-
Net Taxable Profit515,5562,137,038
Taxation at the company’s effective tax rate144,356598,371
Deferred tax movement P&L26,855(32,928)
Under Provision of Prior Period46,68453,995
Total income tax expense per statement of comprehensive income217,895619,438
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

39
BFG ANNUAL REPORT 2020
38
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
7) Income tax (continued)
20202019
Reconciliation of deferred tax asset:$$
Deferred tax on temporary differences
Opening balance 715,959188,180
Over provision of prior period12,105(51,244)
Opening IFRS 15 adjustment-560,707
Brand Asset-(26,133)
Provision for employee benefits(8,354)32,105
Provisions for make good322336
Allowance for impaired assets(61,121)(8,879)
Depreciation4,7679,473
Accruals(28,787)9,734
Deferred revenue(11,600)6,959
Impact of IFRS1664,777-
Prepayments1,036(5,279)
689,104715,959
Opening Balance715,959188,180
Charged to profit or loss(38,960)18,316
Opening adjustment to retained earnings for IFRS 15-560,707
Over provision of prior period12,105(51,244)
Closing Balance689,104715,959
The Group has $3,630,030 of unrecognised losses to be carried forward (2019: $3,627,539). The potential benefit
of these losses is $938,891 (2019: $952,832) which has not been recognised in the financial statements. The losses
carried forward relate to the Australian and US operations.
The Group has recognised a deferred tax asset of $689,104 (2019: $715,959) with respect to other temporary
differences. This has been recognised as it is probable that future taxable profit will be available to allow the asset to
be utilised.
The weighted average tax rate of the Group is effectively 28% based on earnings in NZ, USA and Australia (2019: 28%
based on operating in New Zealand, USA and Australia). There are no other tax jurisdictions, other than New Zealand,
USA and Australia, in which the Group earns taxable income
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
20202019
$$
Opening balance1,463,244641,321
Add
Provisional tax paid413,315798,995
Terminal tax paid--
Resident withholding tax17,41922,928
430,734821,923
Deduct
Income tax refund received--
--
Closing balance1,893,9781,463,244
9) Trade and other receivables
20202019
$$
Trade receivables2,158,9802,235,509
Allowance for impaired assets-(218,291)
2,158,9802,017,218
Trade receivables – USA licence261,000261,000
Trade receivables – USA store sale609,000609,000
Prepayments112,472104,997
Sundry receivables47,88229,019
3,189,3343,021,234
Receivables denominated in currencies other than the presentation currency are Australian Dollars, US Dollars and UAE
Dirhams and they comprise 57.9% of the trade receivables (2019: 48.1%). The total receivables impaired for the 2020
financial year are Nil (2019: $218,291).
To apply the requirements of NZ IFRS 9, the Group has also assessed the expected credit loss of the remaining trade and
other receivables by assessing historic credit losses, current market conditions, and other factors affecting future cash
flows. Management has determined that no further impairment is required under the expected credit loss model as the
calculated loss rates are nil.
The Burger Fuel USA licence agreement was sold to the founding director Christopher Mason for NZD$261,000. This
transaction occurred on the 5th March 2018. At the same time Christopher Mason also purchased the equity of the
Group’s US subsidiary company BF Indiana Two LLC for NZD$609,000. As at 31 March 2020 the $261,000 licence
fee, $609,000 sale proceeds and a $329,391 management fee were still outstanding and are past due (2019: $261,000
licence fee, $609,000 sale proceeds and a $237,307 management fee outstanding). These amounts were payable within
24 months of the transaction date and are secured over Chris Mason’s BFG shares. Interest of 3.75% is payable on the
outstanding balance.
8) Imputation credits
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

41
BFG ANNUAL REPORT 2020
40
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Impairment provision movement:
20202019
$$
Opening Balance(218,291)(250,000)
Provision Utilised218,291-
Provision Reversed-99,902
Additional Provisions-(68,193)
Closing Balance-(218,291)
10) Inventories
20202019
$$
Ingredients123,791170,846
Finished Goods441,426450,772
Total Inventory565,217621,618
Finished goods includes signage, kitchen equipment & proprietary products (BurgerFuel sauces & dry goods). During
the year ended 31 March 2020, $49,537 of obsolete kitchen equipment, signs and licences were written off. $16,500
of sauces were written off and $23,825 of sauces held by our distributor were provisioned for due to the COVID-19
lockdown (level 4) ($40,325 in total) (2019: Nil).
9) Trade and other receivables (continued)
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
11) Property, plant & equipment
2020
Motor
vehicles
Office
equipment
Furniture &
fittingsIT
$$$$
Cost
Balance 1 April 2019959,156109,1001,318,4491,449,437
Opening balance adjustment/disposal *(217,887)(30,039)(283,017)(433,347)
Additions--31,861109,783
Disposals(35,143)(1,331)(6,076)(20,539)
Cost at 31 March 2020706,12677,7301,061,2171,105,334
Depreciation and impairment losses
Balance 1 April 2019805,39581,123850,0651,159,303
Opening balance adjustment/disposal *(223,268)(30,059)(265,643)(443,607)
Disposals(32,965)(1,230)(3,269)(16,553)
Depreciation for the year47,5844,665105,176173,881
Foreign exchange impact(868)--(118)
Balance 31 March 2020595,87854,499686,329872,906
Net Book Value
Balance 1 April 2019153,76127,977468,384290,134
Opening balance adjustment/disposal *5,38120(17,374)10,260
Depreciation for the year(47,584)(4,665)(105,176)(173,881)
Additions--31,861109,783
Disposals(2,178)(101)(2,807)(3,986)
Foreign exchange impact868--118
Net Book Value at 31 March 2020110,24823,231374,888232,428
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

43
BFG ANNUAL REPORT 2020
42
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2020
Kitchen
equipment
Leasehold
improvementsTotal
$$$
Cost
Balance 1 April 2019862,0261,949,9876,648,155
Opening balance adjustment/disposal *(85,643)(10,650)(1,060,583)
Additions294,46676,349512,459
Disposals(46,671)-(109,760)
Cost at 31 March 20201,024,1782,015,6865,990,271
Depreciation and impairment losses
Balance 1 April 2019408,166805,4014,109,453
Opening balance adjustment/disposal *(80,397)(17,609)(1,060,583)
Disposals(11,378)-(65,395)
Depreciation for the year92,955121,504545,765
Foreign exchange impact--(986)
Balance 31 March 2020409,346909,2963,528,254
-
Net Book Value453,860
Balance 1 April 2019453,8601,144,5862,538,702
Opening balance adjustment/disposa *(5,246)6,959-
Depreciation for the year(92,955)(121,504)(545,765)
Additions294,46676,349512,459
Disposals(35,293)-(44,365)
Foreign exchange impact--986
Net Book Value at 31 March 2020614,8321,106,3902,462,017
11) Property, plant & equipment (continued)
* Elimination of fully written down assets no longer being used by the Group
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2019
Motor
vehicles
Office
equipment
Furniture &
fittingsIT
$$$$
Cost
Balance 1 April 2018952,001108,8511,229,6361,245,953
Additions28,660735123,060226,478
Disposals(21,505)(486)(34,247)(22,994)
Cost at 31 March 2019959,156109,1001,318,4491,449,437
Depreciation and impairment losses
Balance 1 April 2018745,40374,714726,355963,255
Depreciation for the year60,6836,409123,710196,170
Foreign exchange impact(691)--(122)
Balance 31 March 2019805,39581,123850,0651,159,303
Net Book Value
Balance 1 April 2018206,59834,137503,281282,698
Depreciation for the year(60,683)(6,409)(123,710)(196,170)
Additions28,660735123,060226,478
Disposals(21,505)(486)(34,247)(22,994)
Foreign exchange impact691--122
Net Book Value at 31 March 2019153,76127,977468,384290,134
11) Property, plant & equipment (continued)
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

45
BFG ANNUAL REPORT 2020
44
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
11) Property, plant & equipment (continued)
2019
Kitchen
equipment
Leasehold
improvementsTotal
$$$
Cost
Balance 1 April 2018711,0131,672,5975,920,051
Additions214,476277,390870,799
Disposals(63,463)-(142,695)
Cost at 31 March 2019862,0261,949,9876,648,155
Depreciation and impairment losses
Balance 1 April 2018329,313693,8833,532,923
Depreciation for the year78,853111,518577,343
Foreign exchange impact--(813)
Balance 31 March 2019408,166805,4014,109,453
-
Net Book Value453,860
Balance 1 April 2018381,700978,7142,387,128
Depreciation for the year(78,853)(111,518)(577,343)
Additions214,476277,390870,799
Disposals(63,463)-(142,695)
Foreign exchange impact--813
Net Book Value at 31 March 2019453,8601,144,5862,538,702
The gain on sale recorded in the Statement of Comprehensive Income was $11,250 (2019: $7,576), relating to the sale of
two motor vehicles and kitchen equipment.
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Subsidiary CompaniesCountry of IncorporationInterest Held 2020Interest Held 2019
BF Lease Company LimitedNew Zealand100%100%
BF Lease Company No 1 LimitedNew Zealand100%100%
BF Lease Company No 2 LimitedNew Zealand100%100%
BF Lease Company No 3 LimitedNew Zealand100%100%
BF Lease Company No 4 LimitedNew Zealand100%100%
BF Lease Company No 5 LimitedNew Zealand100%100%
BF Lease Company No 6 LimitedNew Zealand100%100%
BF Lease Company No 7 LimitedNew Zealand100%100%
BF Lease Company No 8 LimitedNew Zealand100%100%
BF Lease Company No 9 LimitedNew Zealand100%100%
BF Lease Company No 10 LimitedNew Zealand100%100%
BF Lease Company No 11 LimitedNew Zealand100%100%
BF Lease Company No 12 LimitedNew Zealand100%100%
BF Lease Company No 13 LimitedNew Zealand100%100%
BF Lease Company No 14 LimitedNew Zealand100%100%
BF Lease Company No 15 LimitedNew Zealand100%100%
BF Lease Company No 16 LimitedNew Zealand100%100%
BF Lease Company No 17 LimitedNew Zealand100%100%
BF Lease Company No 18 LimitedNew Zealand100%100%
BF Lease Company No 19 LimitedNew Zealand100%100%
BF Lease Company No 20 LimitedNew Zealand100%100%
BF Lease Company No 21 LimitedNew Zealand100%100%
BF Lease Company No 22 LimitedNew Zealand100%100%
BF Lease Company No 23 LimitedNew Zealand100%100%
BF Lease Company No 24 LimitedNew Zealand100%100%
BF Lease Company No 25 LimitedNew Zealand100%100%
BF Lease Company No 26 LimitedNew Zealand100%100%
BF Lease Company No 27 LimitedNew Zealand100%100%
BF Lease Company No 28 LimitedNew Zealand100%100%
BF Lease Company No 29 LimitedNew Zealand100%100%
BF Lease Company No 30 LimitedNew Zealand100%100%
BF Lease Company No 31 LimitedNew Zealand100%100%
BF Lease Company No 32 LimitedNew Zealand100%100%
BF Lease Company No 33 LimitedNew Zealand100%100%
12) Investment in subsidiaries
The Parent Company’s investment in the subsidiaries comprises shares at cost.
All subsidiaries have a 31 March balance date.
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

47
BFG ANNUAL REPORT 2020
46
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Subsidiary CompaniesCountry of IncorporationInterest Held 2020Interest Held 2019
BF Lease Company No 34 LimitedNew Zealand100%100%
BF Lease Company No 35 LimitedNew Zealand100%100%
BF Lease Company No 36 LimitedNew Zealand100%100%
BF Lease Company No 37 LimitedNew Zealand100%100%
BF Lease Company No 38 LimitedNew Zealand100%100%
BF Lease Company No 39 LimitedNew Zealand100%100%
BF Lease Company No 40 LimitedNew Zealand100%100%
BF Lease Company No 41 LimitedNew Zealand100%100%
BF Lease Company No 42 LimitedNew Zealand100%100%
BF Lease Company No 43 LimitedNew Zealand100%100%
BF Lease Company No 44 LimitedNew Zealand100%100%
BF Lease Company No 45 LimitedNew Zealand100%100%
BF Lease Company No 46 LimitedNew Zealand100%100%
BF Lease Company No 47 LimitedNew Zealand100%100%
BF Lease Company No 48 LimitedNew Zealand100%100%
Burger Fuel Group Lease Limited
(formally BF Lease Company No 49 Limited)New Zealand100%100%
Burger Fuel Worldwide Limited
(formally BF Lease Company No 50 Limited)New Zealand100%100%
Burger Fuel (Dubai) NZ LimitedNew Zealand100%100%
Burger Fuel (ME) DMCCDubai100%100%
Burger Fuel International LimitedNew Zealand100%100%
Burger Fuel (Australia) Pty LimitedNew Zealand100%100%
Burger Fuel (Australia) No2 Pty LimitedNew Zealand100%100%
Burger Fuel International Management
LimitedNew Zealand100%100%
Burger Fuel LimitedNew Zealand100%100%
BurgerFuel Henderson LimitedNew Zealand100%100%
Burger Fuel Takapuna LimitedNew Zealand100%100%
Winner Winner LimitedNew Zealand100%100%
Shake Out LimitedNew Zealand100%100%
Concept Brands LimitedNew Zealand100%100%
Shake Out Newmarket LimitedNew Zealand100%-
Shake Out Container LimitedNew Zealand100%-
Burger Fuel Pty Limited Australia100%100%
Burger Fuel Australia Pty LimitedAustralia100%100%
Burger Fuel (USA) Inc.United States of America100%100%
Burger Fuel (USA) Management Inc.United States of America100%100%
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
The principal activities of the subsidiaries are:
Burger Fuel Limited – Franchise systems – gourmet burger restaurants.
Burger Fuel International Limited – Holds patents, trademarks and licences and holds the international Master
Franchise Agreements.
Burger Fuel International Management Limited – Owns the BurgerFuel Australia operation and holds the international
Master Franchise Agreements.
Burger Fuel (Australia) Pty Limited – Non trading.
Burger Fuel (Australia) No2 Pty Limited – Non trading.
Burger Fuel Australia Pty Limited – Non trading.
Burger Fuel Pty Limited – Administration.
Burger Fuel (ME) DMCC – Dubai based trading company.
Burger Fuel (Dubai) NZ Limited – Holding company of the subsidiary in Dubai.
BurgerFuel Henderson Limited – New Zealand based company trading as restaurant.
Burger Fuel Takapuna Limited – New Zealand based company trading as restaurant.
Burger Fuel (USA) Inc. – Non trading.
Burger Fuel (USA) Management Inc. – USA Management Company.
Winner Winner Limited – Non trading.
Shake Out Limited – New Zealand based company trading as restaurant.
Concept Brands Limited - Franchise systems – Shake Out and Winner Winner brands.
Shake Out Newmarket Limited – Non trading.
Shake Out Container Limited – New Zealand based company trading as mobile restaurant.
All other companies are head lease holders for store premises in New Zealand.
12) Investment in subsidiaries (Continued)
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

49
BFG ANNUAL REPORT 2020
48
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
20202019
$$
Loans to Third Parties
Advance to Supplier157,606157,606
Advance to Franchisee150,000-
Advances to staff85913,294
308,465170,900
Total Loans308,465170,900
Current174,325170,900
Non-current134,140-
308,465170,900

Advances to suppliers and staff
The advance to a supplier is to assist ilabb Limited with the stock holding of the BurgerFuel uniforms. The loan is
interest bearing at 3% (2019: 3%), secured over the uniform inventory and is repayable on demand.
The advance to a franchisee is to assist with developing the new Shake Out brand. The loan is interest bearing at 5.7%.
One advance to staff has been made during the year that is unsecured, non-interest bearing and payable in regular
instalments.
These advances have been assessed by management and there is no impairment or expected credit losses.
13) Loans
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2020Key
Money
Brand
AssetsGoodwill
Reacquired
Rights
Domain
NamePatent
Trade
MarksTotal
$$$$$$$$
Cost
Balance 1 April 201990,000221,3331,639,279250,76075,71336,5861,008,3153,321,986
Disposals/adjustment*(67,500)---(75,713)(19,223)(260,428)(422,864)
Acquisitions-----53320,97421,507
Balance at 31 March 202022,500221,3331,639,279250,760-17,896768,8612,920,629
Amortisation
Balance 1 April 201989,61216,556-55,72474,75026,983513,573777,198
Disposals/adjustment*(67,500)---(74,750)(20,777)(258,071)(421,098)
Current year
amortisation38819,141-27,862-2,96192,732143,084
Balance 31 March 202022,50035,697-83,586-9,167348,234499,184

Net Book Value
Balance 1 April 2019388204,7771,639,279195,0369639,603494,7422,544,788
Disposals/adjustment*----(963)1,554(2,357)(1,766)
Additions-----53320,97421,507
Amortisation(388)(19,141)-(27,862)-(2,961)(92,732)(143,084)
Net Book Value at 31
March 2020-185,6361,639,279167,174-8,729420,6272,421,445
14) Intangible assets
* Elimination of fully written down intangible assets no longer being used by the Group
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

51
BFG ANNUAL REPORT 2020
50
2019Key
Money
Brand
AssetsGoodwill
Reacquired
Rights
Domain
NamePatent
Trade
MarksTotal
$$$$$$$$
Cost
Balance 1 April 201890,000100,0001,639,279250,76062,30536,127949,2683,127,739
Acquisitions-121,333--13,40845959,047194,247
Balance at 31 March 201990,000221,3331,639,279250,76075,71336,5861,008,3153,321,986
Amortisation
Balance 1 April 201884,9572,917-27,86254,55724,166408,091602,550
Current year amortisation4,65513,639-27,86220,1932,817105,482174,648
Balance 31 March 201989,61216,556-55,72474,75026,983513,573777,198

Net Book Value
Balance 1 April 20185,04397,0831,639,279222,8987,74811,961541,1772,525,189
Additions-121,333--13,40845959,047194,247
Amortisation(4,655)(13,639)-(27,862)(20,193)(2,817)(105,482)(174,648)
Net Book Value at 31
March 2019388204,7771,639,279195,0369639,603494,7422,544,788
The reacquired rights will be amortised over the life of the franchise agreement at the time of purchase being 9.5
years.
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
14.1) Impairment testing
Impairment
The goodwill of the Takapuna and Henderson stores have been tested for impairment. Based on the impairment
testing results, no impairment loss on Goodwill is recorded in the 2020 financial year (2019: Nil). In assessing
impairment, management estimates the recoverable amount of each asset or cash-generating unit based on
expected future cash flows and uses an interest rate to discount to present values. Estimation uncertainty relates to
assumptions about future operating results and the determination of a suitable discount rate.
For the purpose of annual impairment testing, goodwill is allocated to the following cash-generating units, which are
the units expected to benefit from the synergies of the business combinations in which the Goodwill arises.
14) Intangible assets (continued)
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
20202019
$$
New Zealand Retail – Henderson Store701,427701,427
New Zealand Retail – Takapuna Store937,852937,852
Goodwill allocation at 31 March1,639,2791,639,279
Growth RatesDiscount Rates
2020201920202019
New Zealand Retail – Henderson Store2.0%2.0%11%11%
New Zealand Retail – Takapuna Store2.0%2.0%11%11%
14.2) Growth rates
The growth rates reflect the long-term average growth rates for the product line and industry of the segments (all
publicly available). The Group is expecting the growth rates to be down (7% - 10%) in FY21 for the Henderson and
Takapuna store but expect FY22 to be back at pre COVID-19 levels, thus up (7% - 10%).
14.3) Discount rates
The discount rates reflect appropriate adjustments relating to market risk and specific risk factors of each unit.
14.4) Cash flow assumptions
Management’s key assumptions include uncertain profit margins due to the COVID-19 pandemic. The Group had
reduced royalty and sales income in March 2020 and early FY21 due to store closures in Alert level 4 (refer note 29).
The Group’s management believes that while they expect FY21 sales to be down on FY20, reduced overheads and
government assistance through the wage subsidy will partially offset this lost revenue. Cash flow projections reflect
this uncertainty and will be updated as the economic outlook becomes more certain.
The forecasts assume that New Zealand will remain at Alert Level 1 or lower and no further restrictions are placed on
the business operations during the forecast period.
The Group have used different discount and growth rates to determine the value-in-use of the cash-generating
units and have concluded that there has been no indication of impairment loss in Goodwill value. Management will
monitor closely the same store sales during FY21, as the economic impacts of COVID-19 develop, and will update the
impairment calculations accordingly.
The recoverable amounts of the cash-generating units were determined based on value-in-use calculations, covering
a detailed forecast period, followed by an extrapolation of expected cash flows for the units’ remaining useful lives
using the growth rates determined by management.
Management assessed the impact of reduced economic activity and lower revenues due to the COVID-19 pandemic
on the valuation of the Group’s financial and non-financial assets (i.e. impairment assessment of cash generating
units). As a result of the ongoing COVID-19 pandemic, the Group’s impairment assessments as at reporting date took
into account the temporary cessation of operations, expected decline in demand and profitability.
The Group has prepared revised cash flow forecasts for the purposes of the Group’s annual impairment testing of
goodwill and brand. This assessment has confirmed the carrying value of goodwill and brand assets as at 31 March
2020
The present value of the expected cash flows of each segment is determined by applying a suitable discount rate.
14) Intangible assets (continued)
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

53
BFG ANNUAL REPORT 2020
52
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
20202019
$$
Trade payables639,1031,190,185
COVID-19 Wage subsidy received488,887-
Payroll liabilities34,6476,304
GST payable191,586197,134
Accrued expenses116,726104,826
1,470,9491,489,449
Payables denominated in currencies other than the presentation currency comprise 0.03% of the trade payables
(2019: 0.5%).
Current Contract Liability 412,620263,215
Non-Current Contract Liability 1,625,9981,751,831
2,038,6182,015,046
Contract LiabilityFranchise Fees MLA Total
Opening adjustment for adoption of IFRS 151,138,736863,1592,001,895
Current year revenue recognised – IFRS 15 Adjustment(183,484)(60,663)(244,147)
Franchise fees booked to Balance Sheet in FY19269,000-269,000
Revenue recognised – Franchise fees(11,702)-(11,702)
Balance 31 March 20191,212,550802,4962,015,046
Franchise fees booked to Balance Sheet in FY20235,000-235,000
Revenue recognised – Franchise fees(216,808)(59,620)(276,428)
Historic royalties invoiced65,000-65,000
Balance 31 March 20201,295,742742,8762,038,618
The contract liability represents the remaining balance of franchise and MLA fees spread over the life of the
agreement which is typically 10 & 20 years in length, respectively.
15) Trade and other payables and contract liabilities
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
20202019
$$
Store Closure Provision
Opening balance38,05036,850
Provisions made during the year1,1501,200
Provisions used during the year--
39,20038,050
Holiday Pay Provision
Opening balance414,631298,405
Provisions made during the year440,586464,375
Provisions used during the year(418,761)(348,149)
436,456414,631
Total Provisions475,656452,681
Current436,456414,631
Non-current 39,20038,050
Total Provisions475,656452,681
Store Closure Provision
This is the make good provision that is set aside to cover the costs of returning premises that are occupied by
BurgerFuel back to their original condition, after taking into account the normal wear and tear of these premises
Holiday Pay Provision
This is the allocation of the 8% annual leave entitlement that each full-time and part-time employee is entitled to as
part of their employment, which is accrued throughout the year.
17) Cash and cash equivalents
20202019
$$
Cash at bank3,373,4003,344,795
Cash on deposit2,196,7672,158,678
5,570,1675,503,473
At balance date there is $20,000 (2019: $20,000) in restricted cash for bonds issued to the NZX.
Refer note 23 for further information.
16) Provisions
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

55
BFG ANNUAL REPORT 2020
54
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
Number of SharesShare Capital
2020201920202019
$$
Opening ordinary shares on issue 54,383,14259,633,55013,864,06615,811,011
Share buyback and cancellation(712,947)(5,250,408)(269,241)(1,946,945)
Authorised & issued ordinary shares on issue at 31 March53,670,19554,383,14213,594,82513,864,066
Burger Fuel Group Limited was listed on the New Zealand Alternative Stock Exchange (NZAX) on the 27 July 2007.
The Group migrated to the main board (NZX) on the 1st July 2019. The Company has 53,670,195 (2019: 54,383,142)
authorised and fully paid ordinary shares on issue. All shares have equal voting rights and share equally in dividends
and any surplus on winding up. The shares have no par value.
Previously recognised IPO capital costs were offset against Contributed Equity in 2020.
No Dividends were paid in the 2020 financial year (2019: NIL).
712,947 BFG Shares were purchased (and cancelled) from Franchise Brands LLC during the FY20 financial year.
This was settled on 28 April 2019. 5,250,408 shares were issued or cancelled during the 2019 financial year in four
separate tranches.
19) Retained Earnings
Due to the introduction of IFRS16 on the 1st January 2019, the Group had to reclass a fitout contribution to
opening retained earnings. This was previously to be realised over the life of the lease and had $56,000 remaining
as at 1 April 2019.
20202019
$$
Retained Earnings / (Accumulated Losses)
Closing Balance 31 March(2,541,498)(2,336,651)
Effect of changes in accounting policies resulting from the
adoption of IFRS16 56,000-
Effect of changes in accounting policies resulting from the
adoption of IFRS 15 & IFRS 9-(1,441,188)
Opening Balance 1 April(2,485,498)(3,777,839)
Net surplus / (Deficit) for the year505,4781,236,341
Closing Balance(1,980,020)(2,541,498)
18) Contributed equity
FOR THE YEAR ENDED 31 MARCH 2020
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
NZ IFRS 16 significantly impacts the Group’s Statement of Financial Position as they hold the head leases on most
of the New Zealand franchised stores and all of the company owned stores. In addition to the head office company
owned stores & warehouse leases (Occupied leases), the Group at 31 March 2020 holds the head leases on 53
franchised Burger Fuel stores in New Zealand (Non-occupied leases). These have been sublet to the franchisees on
the same terms and conditions as the head leases. These are considered finance leases and the net investment in the
lease is recorded as a receivable. Expected credit losses have been reviewed and no impairments noted.
The following table shows the impact on the financial statement line items as a result of the adoption of IFRS 16:
Non-OccupiedOccupiedTotal
Right of Use Assets
Opening balance---
Adoption of NZ IFRS 16-7,095,5587,095,558
Remeasurements of ROU assets-1,362,7781,362,778
Depreciation-(630,329)(630,329)
Right of use Asset as at 31 March 2020-7,828,0077,828,007
Lease Receivable
Opening balance---
Adoption of NZ IFRS 1623,301,571-23,301,571
Remeasurements of existing lease receivables899,276-899,276
Interest income1,410,421-1,410,421
Rent payments(2,854,118)-(2,854,118)
Lease Receivable as at 31 March 202022,757,150-22,757,150
Current1,518,310-1,518,310
Non-current21,238,840-21,238,840
Lease Receivable as at 31 March 202022,757,150-22,757,150
20) Right of use assets, lease receivable and lease liabilities
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

BFG ANNUAL REPORT 2020
56
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Non-OccupiedOccupiedTotal
Lease Liability
Opening balance---
Adoption of NZ IFRS 16(23,301,571)(7,095,558)(30,397,129)
Remeasurements of existing lease liabilities(899,276)(1,362,778)(2,262,054)
Interest(1,410,421)(442,632)(1,853,053)
Rent payments2,854,118841,6153,695,733
Lease Liability as at 31 March 2020(22,757,150)(8,059,353)(30,816,503)
Maturity analysis – undiscounted
Less than one year2,869,658875,6783,745,336
Between one and five years11,239,8923,498,34814,738,240
More than five years18,576,7337,194,22725,770,960
31 March 202032,686,28311,568,25344,254,536
Maturity analysis – discounted
Less than one year1,518,310423,5381,941,848
Between one and five years6,829,9821,959,9028,789,884
More than five years14,408,8585,675,91320,084,771
31 March 202022,757,1508,059,35330,816,503
Current1,518,310423,5381,941,848
Non-current21,238,8407,635,81528,874,655
Lease Liability as at 31 March 202022,757,1508,059,35330,816,503
20) Right of use assets, lease receivable and lease liabilities (continued)
57
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
20) Right of use assets, lease receivable and lease liabilities (continued)
The cash impact of the occupied leases (rent) in 2020 is $841,615 (2019: $760,285). This increase is due to the new
Shake Out Smales Farm lease (November 2018) and other rent increases on existing sites.
The total impact to the Statement of Consolidated Statement of Comprehensive Income with the introduction of
IFSR16 is $231,346.
The group has 4 stores that have variable lease payments based on sales turnover that are not included in the
measurement for lease liability above. This was $7,257 in 2020 (2019: $18,550)
Lease Commitments
The lease liability under IFRS 16 takes the lease term to its expiry as it is Management’s intention to use the asset’s
to date of final expiry. The actual legal commitment as per the legal obligations of the lease is $9,130,493 (2019:
$7,803,133). This reduction in lease obligation is due to renewal terms in the lease agreement and limited liability
clauses.
The Group holds the head lease over 57 of 62 sites in NZ. The lease on the franchised sites are then licensed to its
franchisees under the same terms and conditions. At balance date, the current annual rent expense of leases under
this arrangement including occupied leases, was $3,695,734 (2019: $3,654,182).
Non-OccupiedOccupiedTotal
Interest, Depreciation and Cash Payments
Interest Income Leases non occupied1,410,421-1,410,421
Interest Expense Leases non occupied1,410,421-1,410,421
Interest Expense Leases Occupied-442,632442,632
Depreciation Expense -630,329630,329
Actual cash impact of leases (rent)-(841,615)(841,615)
Decrease to net profit from IFRS 16 adoption-231,346231,346
OccupiedNon-OccupiedTotal
Limited Liability No Discount FY19
Less than one year719,8532,602,3723,322,225
Between one and five years1,537,9032,377,6043,915,507
More than five years276,936288,466565,402
31 March 20192,534,6925,268,4427,803,134
Limited Liability No Discount FY20
Less than one year831,6952,690,3813,522,076
Between one and five years2,917,2952,256,3395,173,634
More than five years263,124171,659434,783
31 March 20204,012,1145,118,3799,130,493
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

59
BFG ANNUAL REPORT 2020
58
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
20202019
$$
Foreign Currency Translation Reserve
Opening Balance(324,083)(271,115)
Movements(117,216)(52,968)
Closing Balance(441,299)(324,083)
Nature and Purpose of Reserves:
Foreign Currency Translation Reserve
Translation differences arising on the translation of the results of subsidiaries with functional currencies other than
New Zealand dollars are recognised directly in the Foreign Currency Translation Reserve. The cumulative amounts are
released to profit or loss upon disposal of these subsidiaries.
20202019
$$
Financial Assets
Cash5,570,1675,503,473
Loans308,465170,900
Trade Receivables3,028,9802,887,218
Sundry Receivables47,88229,019
8,955,4948,590,610
Lease Receivable – Non-occupied leases22,757,150-
Total Financial Assets31,712,6448,590,610
Other Financial Liabilities
Trade Payables982,0621,498,449
Lease Liability - Occupied8,059,353-
Lease Liability – Non -occupied22,757,150-
Total Financial Liabilities31,798,5651,498,449
22) Financial instruments and risk management
Categories of Financial Instruments
Financial risk management objectives
Management provides services to the business, co-ordinates access to domestic and international financial markets,
monitors and manages the financial risks relating to the operations of the Group through internal risk reports which
analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk), credit
risk, liquidity risk and cash flow interest rate risk.
The Management reports quarterly to the Group’s audit committee, who monitors risk and policies implemented to
mitigate risk exposures.
21) Foreign currency translation reserve
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. Market risk exposures are analysed by sensitivity analysis. There has not been significant change to
BurgerFuel’s exposure to market risks or the manner in which it manages and measures the risk.
Foreign currency risk management
The Group’s foreign exchange risk is limited to its US Dollar, Australian Dollar & UAE Dirham bank accounts and the
trading of its Australian, US & United Arab Emirates subsidiaries. It maintains amounts in these foreign bank accounts
and transfers funds when foreign exchange rates are favourable.
Foreign currency sensitivity analysis
The following table details the Group’s sensitivity to a 10% increase and decrease in the NZ$ against the Australian,
UAE & USA currency. 10% is the sensitivity rate used when reporting foreign currency risk internally to key
management personnel and represents management’s assessment of the reasonably possible change in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at year end for a 10% change in foreign currency rates.
The sensitivity analysis includes external loans as well as loans to foreign operations within the Group. A positive
number below indicates an increase in profit.
GROUP
10% Strengthening10% Weakening
2020201920202019
$000$000$000$000
Profit / (Loss) before tax13290(145)(99)
Equity9565(95)(71)
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates at the balance date. For
floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the balance date was
outstanding for the whole year. A 100-basis point increase or decrease is used when reporting interest rate risk
internally to key management personnel and represents management’s assessment of the reasonably possible change
in interest rates.
The Group has a USD overdraft facility and has exposure to floating interest rates on this facility. This USD overdraft
facility has an effect on the interest paid on the Group’s cash and cash equivalent accounts.
If the interest rates on cash and cash equivalents had been 100 basis points higher and all other variables were held
constant, the Group’s operating result for the year ended 31 March 2020 would have been $55,702 higher (2019:
$55,035 higher).
22) Financial instruments and risk management (continued)
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

61
BFG ANNUAL REPORT 2020
60
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Interest rate risk
The Group has cash flow interest rate risk from financial instruments that attract interest. Interest rate risk is the risk
that the value of the Group’s assets and liabilities will fluctuate due to changes in market interest rates. The Group is
exposed to interest rate risk primarily through its cash balances and advances.
The Group manages its interest rate risk by maintaining minimal variable rate cash balances. Excess cash resources
are placed into fixed rate term deposits where appropriate.
22) Financial instruments and risk management (continued)
Interest rate risk profile
2020Weighted
average
effective
interest rate
%
Greater
than 1 year
Less than 1
year
Non -
interest
bearingTotal
$$$$
Financial Assets
Cash and cash equivalent0.61%-5,570,167-5,570,167
Advance to Supplier3.00%157,606--157,606
Advance to Franchisee5.70%134,14015,860-150,000
Advances to Staff---859859
Trade and other receivables3.75%-1,195,3931,881,4693,076,862
Lease Receivable -non occupied6.30%21,238,8401,518,310-22,757,150
21,530,5868,299,7301,882,32831,712,644
Financial Liabilities870,000
Trade payables---982,062982,062
Lease Liability – Occupied5.90%7,635,815423,538-8,059,353
Lease Liability – Non -occupied6.30%21,238,8401,518,310-22,757,150
28,874,6551,941,848982,06231,798,565
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
22) Financial instruments and risk management (continued)
Credit risk
Credit risk is the risk that the counter party to a transaction with the Group will fail to discharge its obligations,
causing the Group to incur a financial loss. The Group has adopted a policy of only dealing with creditworthy
counterparties, as a means of mitigating the risk of financial loss from defaults. The credit ratings of its counterparties
are continuously monitored by management and the aggregate value of transactions concluded is spread amongst
approved counterparties.
Financial instruments that potentially subject the Group to concentrations of credit risk consist principally of cash,
trade debtors, loans and advances.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses,
represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral
obtained. The maximum credit risk exposures are:
20202019
$$
Cash and bank balances5,570,1675,503,473
Loans, advances and receivables3,385,3273,087,137
Maximum exposures are net of any recognised provisions, and at balance date no loans or advances are considered to
be impaired (2019: $Nil). No trade receivables are impaired in FY20 with no further amounts past due (2019: $218,291
past due).
As at 31 March 2020 the $261,000 USA licence fee, $609,000 US store sale proceeds and a $329,391 USA
management fee were still outstanding. These amounts were payable by the 5th March 2020 and are secured over
Chris Mason’s BFG shares. No other amounts were past due.
Cash
The Group’s major concentration of credit risk relates to cash deposits with ASB Limited in New Zealand and CBA
Bank Limited in Australia.
2019Weighted
average
effective
interest rate
%
Greater
than 1 year
Less than 1
year
Non -
interest
bearingTotal
$$$$
Financial Assets
Cash and cash equivalent1.46%-5,503,473-5,503,473
Advance to Supplier3.00%-157,606-157,606
Advances to Staff5.00%-3,5409,75413,294
Trade and other receivables3.75%-1,107,3081,808,9292,916,237
-6,771,9271,818,6838,590,610
Financial Liabilities870,000
Trade payables---1,498,4491,498,449
--1,498,4491,498,449
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

63
BFG ANNUAL REPORT 2020
62
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Receivables
The Group has a credit policy, which is used to manage its exposure to credit risk. As part of this policy, limits on
exposures have been set, lending is subject to defined criteria and loans are monitored on a regular basis. The trade
receivable are payable on the 10th of the following month and loans are subject to a loan agreement which stipulates
monthly repayments or payable on demand. No security is held.
Capital management
The Group’s capital includes share capital, reserves and retained earnings as shown in the Statements of Financial
Position. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders, and to maintain an optimal capital structure to reduce the cost
of capital. In order to maintain or adjust the required capital structure the Group may issue new shares, sell assets to
reduce debt and/or adjust amounts paid to investors.
The Group is not subject to any externally imposed capital requirements.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in raising funds at short notice to meet commitments
associated with financial instruments. The Group maintains sufficient funds to meet the commitments based on
historical and forecasted cash flow requirements. The exposure is being reviewed on an ongoing basis from daily
procedures to monthly reporting.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate
liquidity risk management framework for the management of short, medium and long-term funding and liquidity
management requirements. Liquidity risk is managed by maintaining adequate reserves and banking facilities, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities. All payables are due within 6 months of balance date (2019: 6 months).
The Group expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.
Capital Commitments
At 31 March 2020, the Group has no contractual
commitments (2019: Nil).
Indemnity / Guarantees
BurgerFuel has deposits in place to cover certain
commitments the banks have provided:
24) Contingencies
The Group has no contingencies at balance date (2019: Nil).
20202019
Total future
minimum payments
Total future
minimum payments
$$
NZX Bond20,00020,000
20,00020,000
23) Commitments
22) Financial instruments and risk management (continued)
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Transactions with Related Parties
During the year the following related party transactions took place:
GroupRelationship
Nature
of transaction
2020
$
2019
$
Neo Corporate
Trustees Limited
(formerly Redmond
Enterprises Limited)
Common
Directorship
Consultancy Expenses
Paid667,012635,250
Trumpeter Consulting
Limited
Common
DirectorshipDirectors Fees 50,00050,000
Peter BrookDirectorDirectors Fees70,00070,000
Neo Corporate
Trustees Limited
(formerly 66 Surrey
Limited)DirectorHead Office Rental493,938465,101
Trumpeter Consulting
Limited
Common
Directorship
Consultancy Expenses
Paid17,30416,000
The Burger Fuel Group Limited Chief Executive Officer is the sole director of Neo Corporate Trustees Limited. The
head office rental is the premises at 66 Surrey Crescent, Grey Lynn, Auckland and the Neo Corporate Trustees Limited
consultancy fee relates to the remuneration of the CEO. The Group had a current trade payable of $14,119 with NEO
Corporate Trustees Limited as at 31 March 2020. The above remuneration excludes reimbursements of costs incurred
on behalf of the Group.
20202019
$$
Salaries and other short-term employee benefits2,216,8162,436,216
KiwiSaver Employer Contribution46,49442,080
Directors’ Fees120,000120,000
2,383,3102,598,296
Key Management Compensation
Key management personnel compensation costs include remuneration of the Group Chief Executive, Directors
and the members of the executive team. The compensation paid or payable to key management for employee services
is shown above.
25) Related party transactions
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

65
BFG ANNUAL REPORT 2020
64
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
27) Reconciliation of net surplus / (deficit) after taxation to net cash flows provided
from operating activities
26) Earnings per share
The basic earnings per share are calculated by dividing the profit attributed to owners of the Group by the weighted
average number of ordinary shares in issue during the year.
20202019
$$
Surplus / (Deficit) attributable to the owners of the Group505,478 1,236,341
Weighted average number of ordinary shares on issue53,724,73756,697,165
Basic earnings / (loss) per share (cents)0.942.18
Diluted earnings / (loss) per share (cents)0.942.18
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding
to assume conversion of all dilutive potential ordinary shares. There is no difference between the basic and diluted
number of shares on issue.
20202019
$$
Net surplus / (deficit) after tax505,478 1,236,341
Add: Non-cash items
Amortisation143,084174,648
Depreciation545,765577,343
Depreciation on ROU asset630,329-
Deferred tax asset26,85532,928
Deferred tax asset – IFRS 15 adjustment to retained earnings-(560,707)
Loss on disposal of property, plant and equipment7,32773,477
Unrealised exchange loss / (gain)(142,892)(40,791)
IFRS 16 Adjustment to retained earnings56,000-
IFRS 15 Adjustment to retained earnings-(1,441,188)
Provision for Doubtful Debts-31,709
1,266,468(1,152,581)
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
20202019
Add: Items classified as investing or financing activities
Gain on sale of assets(11,250)(7,576)
Add: Working capital movements
(Increase) / decrease in trade and other receivables50,19141,282
(Increase) / decrease in inventories56,401457,230
(Decrease) / increase in taxation payable (336,339)(296,637)
Increase / (decrease) in accounts payable and accruals,
provisions and contract liability(199,243)1,910,622
(428,990)2,112,497
Net cash flows provided from operating activities1,331,7062,188,681
27) Reconciliation of net surplus / (deficit) after taxation to net cash flows provided
from operating activities (continued)
28) Segment reporting
Operating Segments
The Group operates in four operating segments; these operating segments have been divided into the following
geographical regions, New Zealand, Australia, USA and the Middle East. All the segment’s operations are made up of
franchising fees, royalties and sales to franchisees. The segments are in the business of Franchise Systems - Gourmet
Burger Restaurants. New Zealand’s segment result is also due to the amortisation of intangible assets.
The amounts provided to the Board with respect to total liabilities are measured in a manner consistent with that of
the financial statements. These liabilities are allocated based on the operations of the segment.
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

67
BFG ANNUAL REPORT 2020
66
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2020
New ZealandAustraliaMiddle EastUSAConsolidated
$$$$$
Revenue
Sales8,324,238-89,253 - 8,413,491
Royalties4,876,942-791,78515,498 5,684,225
Franchising fees316,234-46,54313,077375,854
Training fees110,000---110,000
Property management fees53,000-- - 53,000
Advertising fees3,581,227-143,941 - 3,725,168
Foreign exchange gain(74,525)(17,095)(11,485) 245,997 142,892
Sundry income1,694,2151,93765,243 79,711 1,841,106
Interest received67,0761,009834 44,304 113,223
Interest Leases1,410,421---1,410,421
Total Revenue20,358,828(14,149)1,126,114398,58721,869,380
Interest Expense21440-91345
Interest Expense Leases
Occupied442,632---442,632
Interest Expense Leases non
occupied1,410,421---1,410,421
Depreciation542,143-3,622-545,765
Depreciation Leases630,329---630,329
Amortisation143,084---143,084
Segment Result before
Income Tax(313,999)147,473588,948 300,951 723,373
Income Tax Expense219,190--(1,295) 217,895
Segment Assets44,383,022542,38197,178952,651 45,975,232
Segment Liabilities34,698,95010,61192,165-34,801,726
Acquisition of Property, Plant & Equipment & Intangible Assets.
Other533,996---533,996
28) Segment reporting (continued)
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
28) Segment reporting (continued)
2019
New ZealandAustraliaMiddle EastUSAConsolidated
$$$$$
Revenue
Sales8,592,548-95,282 - 8,687,830
Royalties4,872,084-1,064,7771,3395,938,200
Franchising fees300,186-48,21713,077 361,480
Training fees30,000---30,000
Property management fees55,000-- - 55,000
Advertising fees3,640,806-213,880 - 3,854,686
Foreign exchange gain(52,884)(24,053)29 117,699 40,791
Sundry income1,341,46080,169- 510,299 1,931,928
Interest received86,1851,067- 40,499 127,751
Total Revenue18,865,38557,1831,422,185682,91321,027,666
Interest Expense10,087838--10,925
Depreciation572,522-4,821-577,343
Amortisation174,648---174,648
Segment Result before
Income Tax1,042,40551,669663,00298,703 1,855,779
Income Tax Expense617,956--1,482 619,438
Segment Assets13,749,506372,1111120,059874,998 15,116,674
Segment Liabilities4,017,543-62,37038,2764,118,189
Acquisition of Property, Plant & Equipment & Intangible Assets.
Other1,063,470---1,063,470
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

BFG ANNUAL REPORT 2020
68
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
COVID-19 Pandemic
The Group earns revenue from their franchisees, company owned stores and their sauce manufacturing operation.
The COVID-19 pandemic and responses inhibited general activity and confidence levels within the community, the
economy and the operations of the Group’s business. When the country went into Alert level 4 lockdown on the 26th
March 2020 all stores in NZ closed, as did the US. The MENA region closed some stores and ran limited services in
others. The NZ stores reopened in Level 3 on the 28th April 2020 with limited services, providing click and collect,
kerbside pickup and delivery services in some stores. The US store remains closed.
While the impact of COVID-19 remains uncertain as at the date of signing these financial statements, the Group
continues to monitor developments and will initiate plans to mitigate adverse impacts and maximise opportunities.
In response to the COVID-19 pandemic, management has:
• Implemented appropriate health and safety responses to ensure the continuity of its business operations under
each of the Alert Levels, whilst complying with the applicable public health and social measures for that level.
• Implemented measures to reduce operating costs and capital expenditures (where applicable deferring
nonessential capital projects).
• Applied for the COVID-19 ‘Wage Subsidy Scheme’ developed by the New Zealand Government, which is
available to certain New Zealand businesses that are adversely affected by the COVID-19 pandemic. The Group
received a total of $744,516 across 8 subsidiary companies, with $488,887 of this amount received in the FY20
financial year, thus impacting our cash position as at 31 March 2020. The remainder of the $744,516 was received
in FY21. This wage subsidy will be taken to the Statement of Comprehensive Income as other income, and
allocated over 12 weeks from the 1 April 2020, thus increasing the Group’s FY21 revenue by $744,516.
• Approached landlords for rent relief during the lockdown periods. The group received rent relief on all occupied
sites ($52,133) and the franchise system also received short-term rent relief packages which was passed on to
the franchisees. This rent relief occurred in FY21 from 1 April 2020.
These financial statements have been prepared based upon conditions existing at the end of the reporting period,
31 March 2020, and considering those events occurring subsequent to that date, up to the date of the signing of
these financial statements (31 July 2020), that provide evidence of conditions that existed at the end of the reporting
period As the outbreak of COVID-19 pandemic occurred before 31 March 2020, its impacts are considered an event
that is indicative of conditions that arose prior to reporting period. Accordingly, as at the date of the signing of
these financial statements, all reasonably known and available information with respect to the COVID-19 pandemic,
has been taken into consideration and all reasonably determinable adjustments have been made in preparing these
financial statements.
29) Subsequent events
69
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
30) Net tangible asset per share
The net tangible asset per share is calculated by dividing the net tangible assets of the Group by the total number of
ordinary shares in issue during the year.
20202019
$$
Assets15,390,07515,116,674
Current lease receivable non-occupied – IFRS161,518,310-
Right of use assets – IFRS167,828,007-
Non-current lease receivable non-occupied – IFRS1621,238,840-
Total Assets45,975,23215,116,674
Liabilities(3,985,223)(4,118,189)
Lease Liabilities(8,059,353)-
Lease Liabilities – non-occupied(22,757,150)-
Total Liabilities(34,801,726)(4,118,189)
Net Assets11,173,50610,998,485
Less Intangible Assets(3,110,549)(3,260,747)
Net Tangible Assets8,062,9577,737,738
Total ordinary shares on issue53,670,19554,383,142
Net Tangible Assets per share
($ per Share)0.150.14
/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

71
BFG ANNUAL REPORT 2020
70
Statement of Directors and Officers Interests
Directors and Officers held the following equity securities in the Company:
Beneficially held
at 31/03/20
Non-beneficially
held at 31/03/20
Beneficially held
at 31/03/19
Non-beneficially
held at 31/03/19
Peter Brook336,596-336,596-
Josef Roberts33,376,335-33,376,335-
Alan Dunn324,656-324,656-
Tyrone Foley (Officer)14,874-14,874-
Mark Piet (Officer)21,667-21,667-
There were no share transactions with the Directors and Officers during the year.
Remuneration of Directors
2020
12 Months
2019
12 Months
$$
Peter Brook70,00070,000
Josef Roberts667,012635,250
Alan Dunn50,00050,000
Remuneration of Employees (Excluding Executive Directors)2020
12 Months
Number of Employees
2019
12 Months
Number of Employees
$100,000-$110,00055
$110,000-$120,000-3
$120,000-$130,0003-
$130,000-$140,000-1
$140,000-$150,00013
$150,000-$160,0001-
$170,000-$180,000-1
$200,000-$210,00011
$220,000-$230,000--
$230,000-$240,000-1
$240,000-$250,000-1
$250,000-$260,00011
$290,000-$300,0001-
SHAREHOLDER INFORMATION
FOR THE YEAR ENDED 31 MARCH 2020
Substantial Security Holders
The following information is given pursuant to section 293 of the Financial Markets Conduct Act 2013. As at 31 March
2020, details of the Substantial Security Holders in the company and their relevant interests in the company’s shares
are as follows:

Substantial Security HolderNumber of Voting Securities%
Mason Roberts Holdings Limited39,962,64474.46%
E&P Foundation Trustee Limited2,747,1385.12%
The total number of voting securities of the Company on issue at 31 March 2020 was 53,670,195 fully paid ordinary shares.
SHAREHOLDER INFORMATION
FOR THE YEAR ENDED 31 MARCH 2020
Twenty Largest Security Holders as at 31 March 2020

ShareholderNumber of Shares%
MASON ROBERTS HOLDINGS LIMITED39,962,64474.5%
E & P FOUNDATION TRUSTEE LIMITED2,747,1385.1%
NATIONAL NOMINEES LIMITED1,869,3933.5%
CUSTODIAL SERVICES LIMITED692,3701.3%
JBWERE (NZ) NOMINEES LIMITED369,2960.7%
PETER CLYNTON BROOK336,5960.6%
CARTALLEN TRUSTEE LIMITED326,5130.6%
TRUMPETER TRUSTEES (2007) LIMITED324,6560.6%
ASB NOMINEES LIMITED200,0000.4%
BRIAN KELLY LIMITED175,0000.3%
NEW ZEALAND DEPOSITORY NOMINEE LIMITED165,6770.3%
LAPHROAIG TRUSTEE COMPANY (NZ) LIMITED163,9690.3%
STERLING NOMINEES LIMITED150,2920.3%
BRAD WILLIAM MCFARLANE79,9810.2%
ROBERT WALLACE MONTGOMERY DOWLER
+ ROSEMARY ELIZABETH DOWLER75,0000.1%
MATTHEW JAMES PRINGLE75,0000.1%
EVCO CONSULTANCY LIMITED70,0000.1%
FORSYTH BARR CUSTODIANS LIMITED66,2500.1%
INVESTMENT CUSTODIAL SERVICES LIMITED65,5000.1%
JONATHAN LAURIE BUCKLEY57,9150.1%
47,973,19089.3%
/ SHAREHOLDER INFORMATION

73
BFG ANNUAL REPORT 2020
72
SHAREHOLDER INFORMATION
FOR THE YEAR ENDED 31 MARCH 2020
Domicile of Security Holdings
LocationHoldersUnitsUnits %
New Zealand 2,328 53,334,837 99.4%
Australia84 155,760 0.3%
United Kingdom 17 64,290 0.1%
United Arab Emirates 4 49,017 0.1%
U.S.A. 14 43,333 0.1%
Canada4 5,058 0.0%
Singapore1 3,500 0.0%
Austria1 2,000 0.0%
China12,0000.0%
France12,0000.0%
Ireland1 1,600 0.0%
Germany1 1,500 0.0%
Hong Kong1 1,000 0.0%
Norway1 1,000 0.0%
Reunion11,0000.0%
Taiwan11,0000.0%
South Africa11,0000.0%
Switzerland13000.0%
2,463 53,670,195 100.0%
Spread of Security Holders

Shareholding SizeNumber of HoldersTotal Shares Held%
1 - 49920059,1650.1%
500 - 999164108,0030.2%
1,000 - 1,9991,3391,475,6402.8%
2,000 - 4,9994921,240,0892.3%
5,000 - 9,999132769,0661.4%
10,000 - 49,9991191,987,6213.7%
50,000 - 99,9998547,0671.0%
100,000 - 499,99992,211,9994.1%
500,000 - 999,9991692,3701.3%
1,000,000 Over344,579,17583.1%
2,46753,670,195100.0%
The Board of Directors is responsible for the corporate
governance of the Group. “Corporate Governance”
involves the direction and control of the business
by the Directors and the accountability of Directors
to shareholders and other stakeholders for the
performance of the Group and compliance with
applicable laws and standards.
Role of the Board
The Board is elected by the Shareholders of the
Company. A Director must not hold office (without
re-election) past the third annual meeting following the
Directors appointment or 3 years, whichever is longer.
The Directors to retire are those who wish to retire, or
those who have been longest in office since last being
elected.
The Board of Directors is responsible for the overall
direction of Burger Fuel Group Limited’s business and
affairs on behalf of all shareholders. The Board’s key role
is to ensure that corporate management is continuously
and effectively striving for above-average performance,
taking account of risk.
The Board:
• Establishes the objectives of Burger Fuel Group
Limited;
• Approves major strategies for achieving these
objectives;
• Oversees risk management and compliance;
• Sets in place the policy framework within which
BurgerFuel operates; and
• Monitors management performance against this
background.
The Board has delegated the day-to-day leadership and
management of the Group to the Group Chief Executive
Officer and the Chief Operating Officer.
The Board monitors financial results and compares them
to annual plans and forecasts / budgets on a regular
basis, and on a quarterly basis reviews the Group’s
performance against its strategic planning objectives.
Board size and Composition
The size and composition of the Board is determined
by the Company’s constitution. As at 31 March 2020,
there were three Directors, a Chief Operating Officer,
and a Chief Financial Officer / Company Secretary. The
Chairman of the Board and the Chairman of the Audit
Committee are non-executive and independent of the role
of the Chief Executive Officer, Chief Financial Officer and
Chief Operating Officer.
Directors and Officers diversity
NZX listed issuers are required to report quantitative data
on the gender breakdown of Directors and Officers at the
financial year end. The policy behind the rule is to provide
information to allow investors to maintain an informed
view of diversity as a factor relevant to an Issuer’s
expected performance.
20202019
MaleFemaleMaleFemale
Directors3-3-
Executive /
Leadership Team72102
Audit Committee
(i) Risk Management
The Audit Committee is required to establish a
framework of internal control mechanisms to ensure
proper management of the Group’s affairs and that key
business and financial risks are identified and controls
and procedures are in place to effectively manage
those risks. The Audit Committee is accountable to the
Board for the recommendation of the external auditors,
directing and monitoring the audit function and
reviewing the adequacy and quality of the annual audit
process.
(ii) Additional Assurance
The Committee provides the Board with additional
assurance regarding the accuracy of financial
information for inclusion in the Group’s annual report,
including the financial statements. The Committee is
also responsible for ensuring that Burger Fuel Group
Limited has an effective internal control framework.
These controls include the safeguarding of assets,
maintaining proper accounting records, complying with
legislation, including resource management and health
and safety issues, ensuring the reliability of financial
information and assessing and overviewing business risk.
The Committee also deals with governmental and New
Zealand Stock Exchange requirements.
(iii) Share Trading Policy
The Company has adopted a formal Securities Trading
Policy (“Policy”) to address insider trading requirements.
The Policy is modelled on the Listed Companies
Association Securities Trading Policy and Guidelines and
is administered by the Audit Committee and restricts
share trading in a number of ways.
(iv) Insurance and Indemnification
Burger Fuel Group Limited provides indemnity insurance
cover to directors, officers and employees of the Group
except where there is conduct involving a wilful breach
of duty, improper use of inside information or criminality.
CORPORATE GOVERNANCE
FOR THE YEAR ENDED 31 MARCH 2020
BFG ANNUAL REPORT 2020
/ CORPORATE GOVERNANCE/ SHAREHOLDER INFORMATION

75
BFG ANNUAL REPORT 2020
74
Constitution
A full copy of the Company’s constitution is available on
the Company’s website (www.burgerfuel.com).
Board Remuneration
Directors are entitled to Directors’ fees, reasonable
travelling, accommodation and other expenses incurred
in the course of performing duties or exercising powers
as Directors.
Peter Brook, the Chairman, receives an annual fee of
$70,000 and Alan Dunn the independent, non-executive
Director receives an annual fee of $50,000. The
Company Secretary attends to all company secretarial
and corporate governance matters.
Conflict of Interest
The Board has guidelines dealing with the disclosure of
interests by Directors and the participation and voting at
Board meetings where any such interests are discussed.
The Group maintains an interests register in which
particulars of certain transactions and matters involving
Directors must be recorded.
Directors & Officers Board & Audit Committee Attendance Record
DirectorsBoard MeetingsAudit Committee Meetings
Peter Brook (Chair)53
Josef Roberts53
Alan Dunn53
Officers
Tyrone Foley (Chief Operating Officer)53
Mark Piet (Chief Financial Officer / Company Secretary)53
CORPORATE GOVERNANCE
FOR THE YEAR ENDED 31 MARCH 2020
Registered Office
Grant Thornton New Zealand Limited
152 Fanshawe Street
Auckland 1011
Company Number
1947191
Date of Incorporation
14 June 2007
Directors
Peter Brook - Chairman (Independent)
Alan Dunn (Independent)
Josef Roberts (Executive)
Board Executives
Tyrone Foley (Chief Operating Officer)
Mark Piet (Chief Financial Officer / Company
Secretary)
Business Headquarters
66 Surrey Crescent
Grey Lynn
Auckland 1021
Auditor
Baker Tilly Staples Rodway
Level 9, Tower Centre
45 Queen Street
Auckland 1010
Accountant
Grant Thornton New Zealand Limited
Level 4
152 Fanshawe Street
Auckland 1011
Bridgepoint Group Accounting Pty Ltd
Suite 301, 8 West Street,
North Sydney
NSW 2060
Australia
Citrin Cooperman
529 Fifth Avenue
New York, NY 10017
USA
KPMG
18 Viaduct Harbour Avenue,
Auckland 1140
Bankers
ASB Bank Limited
CBA Bank Limited (Australia)
Emirates NBD (UAE)
Bank of America Merrill Lynch (USA)
Solicitors
Dentons Kensington Swan, 18 Viaduct Harbour Avenue,
Auckland 1011.
Buddle Findlay, PwC Tower, 188 Quay Street, PO Box
1433, Auckland 1140.
Wiggin and Dana LLP, Two Liberty Place, 50 S. 16th
Street, Suite 2925, PA, 19102, USA.
Corporate Counsel Limited Solicitors, P.O Box 37-322,
Parnell, Auckland 1151.
Davidson and Co Legal Consultants, Shangri La Offices,
Sheikh Zayed Road, Dubai, UAE.
Cedar White Bradley Consulting, Burj Al Salam, 47th
Floor, 2 Sheikh Zayed Road, Dubai, UAE.
COMPANY DIRECTORY
FOR THE YEAR ENDED 31 MARCH 2020
BFG ANNUAL REPORT 2020
/ COMPANY DIRECTORY/ CORPORATE GOVERNANCE

WWW.BURGERFUELGROUP.COM