Savor acquires Hipgroup venues, announces rights issue

NEW ZEALAND’S PREMIER HOSPITALITY GROUP
March 2021

P — 2
SAVOR LIMITEDMarch 2021
Building the Foundation
2011
Savor Group launched its first
two venues – A bar and eatery in
a former parking garage next to
a modern Japanese restaurant
in Auckland’s Britomart precinct
2012
Flagship brasserie Ostro and
Seafarers Club launches.
New Zealand’s first private
members concept spread over
seven floors of a redeveloped
waterfront building
2018
Savor Group grows
to eight hospitality
businesses in Auckland,
each with its own unique
concept, culture and
offering
2018
With revenue of $20m, EBIT of
$2.2m, Savor Group reversed
into Moa Group for $18m
2020
Following a successful
integration of Savor
Group and Moa Group,
the hospitality business is
performing well with $23m
revenue contributing 65% of
Group revenue and 100% of
Group profitability in FY20
2021
Savor Limited acquires
Hipgroup Limited
venues for total
consideration of $11m
2021
Moa Group divests of
Moa Brewing to focus on
hospitality business and
rebrands to Savor Limited

P — 3
SAVOR LIMITEDMarch 2021
Creating New Zealand’s Premier Hospitality Group
— Acquisition of high profile and successful Hipgroup venues; Amano,
Ortolana and The Store for $11 million which includes $1m in shares
and a deferred payment of $2.85m, which we expect to be funded
by Amano’s earnings from the first year of trading
— Unique opportunity to bring together two of New Zealand’s leading
hospitality groups to enhance profile and positioning, and increase
scale and customer offering in the market
— Integration to increase ability to attract and retain high quality
staff, create supplier synergies and deepen relationships with
landlords
— Exciting, strong brands with market demand and management
expertise to leverage and expand into other regions in New Zealand
— Immediately accretive, with expected annualized operating
earnings (or EBITDA) of approx. $3 million
— Savor has a strong and consistent reputation for
originality, unique experience, quality products and
high standard of service across the portfolio
— Focus of capital allocation and management attention
will be purely on hospitality following divestment of
Moa Brewing
— Business performed exceptionally well during Covid-19
and are now able to protect prior levels of profitability
off 50% lower revenue due to agility and reshaping
cost base
— Hospitality business now contributes 65% of the
Group’s revenue and over 100% of profitability in FY20
— Strong momentum in the business, market demand
and unique management capability underpins
significant opportunities for growth
Rebranding to SavorAcquisition of Amano

P — 4
SAVOR LIMITEDMarch 2021
Acquisition of
Amano Group

P — 5
SAVOR LIMITEDMarch 2021
Overview
Amano Group is a unique
offering within the New Zealand
hospitality industry.
With a revenue of $22m per year
and profitability of $3m, brands
include Amano, Amano Bakery,
Amano Gelato, Ortolana and

The Store.
Located in Auckland’s premier
hospitality precinct, Britomart,
the acquisition of Amano Group
increases Savor’s footprint across
both the precinct and within the
hospitality industry.
Synergies with Savor
The acquisition of Amano Group
provides numerous operational
synergies including staffing,
suppliers, and allowing for a
deeper partnership with one of
the Group’s existing landlords.
Efficiencies in all aspects of
operations with Savor will
include management, staff and
suppliers.
Our Vision for
the Future of
Savor Group

P — 6
SAVOR LIMITEDMarch 2021
Snapshot of
Amano Group
"This special bakery and trattoria
housed in a double warehouse by the
wharf in downtown Britomart is a
stand-out in all of New Zealand"
— Broadsheet Review 2021
Amano
•
Amano Bakery
•
Amano Gelato
Ortolana
•
The Store

P — 7
SAVOR LIMITEDMarch 2021
— Secures consistent, reliable returns throughout fluctuating
winter trading period
— Expands Savor offerings to all-day service
— Non-contracted beverage venues provides a significant
opportunity to expand beverage sales and drive margin
— Becoming New Zealand’s biggest and leading hospitality Group
provides opportunities for product cost savings
— Able to attract and maintain key staff and become the hospitality
employer of choice
Revenue – FY19 to FY20
25,000
20,000
15,000
20192020
Amano Group Financial Highlights
EBITDA – FY19 to FY20
4,350
4,300
4,250
4,200
4,150
4,100
4,050
4,000
3,950
20192020
000’s000’s

P — 8
SAVOR LIMITEDMarch 2021
Strong Positioning

P — 9
SAVOR LIMITEDMarch 2021
Group Structure
Bang Bang Kitchen
Lobster & Tap
Market Galley
The Wreck
Ostro
City Terrace
Matisse
Tommy’s
Lobster & Wagyu
PONSONBY
MISSION BAY
Ortolana
The Store

P — 10
SAVOR LIMITEDMarch 2021
BANG BANG KITCHEN
LOBSTER & TAP
MARKET GALLEY
THE WRECK
SEAFARERS
OSTRO
LOBSTER & WAGYU
EBISU
FUKUKO
AMANO
THE STORE
ORTOLANA
AZABU MISSION BAY
NON SOLO PIZZA
AZABU PONSONBY
AUCKLAND FISH MARKET
BANG BANG KITCHEN
LOBSTER & TAP
MARKET GALLEY
THE WRECK

P — 11
SAVOR LIMITEDMarch 2021
by Numbers
13 sites
216 employees
44% with 2+ years service
23,733 Instagram followers
52,000 Database
$23.8m Revenue to Mar ’20
Savor
4 sites
150 employees
50% with 2+ years service
25,831 Instagram followers
45,000 Database
$22.6m Revenue to Mar ’20
Amano Group
17 sites
366 employees
48% with 2+ years service
49,56 4 Instagram followers
97,000 Database

$46.4m Revenue to Mar ’20
Combined Group
Savor Group figures include only six months of trading for Non Solo Pizza and exclude Azabu at Mission Bay, which opened in the current year

P — 12
SAVOR LIMITEDMarch 2021
Super Trends Supporting the Industry
Eating Out
Supporting Local and
Domestic Business
Millennials and Gen Z
3.3%
Growth in hospitality sales
despite Covid pandemic
service hours in Dec 20
20%
More spent on eating out
and restaurant meals than
other age groups
55%
Comfortable dining out
at restaurants and cafés
despite heightened Covid
alert levels
118%
Increase in domestic tourism
expected in January 2021
+$7 BN
More spent by domestic visitors
than overseas visitors in 2020
44%
Of consumer eating out
at restaurants or cafés 1–3
times per week
SOURCES: Restaurant Association of New Zealand Hospitality Report 2020. Food Service – Hotel Restaurant Institutional (New Zealand 2020)

P — 13
SAVOR LIMITEDMarch 2021
Our Key Strengths
1.
—
Creators of
Concepts
2.
—
Agility and
Resilience
3.
—
Expansion
Potential

P — 14
SAVOR LIMITEDMarch 2021
— Delivering value and unique experiences
by creating and implementing concepts
from design and branding to leasing and
operations
— Track record of success, with 90% of current
venues Savor Group's own concepts
— Faster ROI and improved venue longevity
with own concepts strategy compared to
acquisition strategy
1.
—
Creators of
Concepts

P — 15
SAVOR LIMITEDMarch 2021
2.
—
Agility and
Resilience
Response to Covid-19 Created
Sustainable Agility & Resilience
in the Business
Savor reacted quickly to
protect the people and
profitability of the business
— Reshaped financial fundamentals, revised menus and product offerings alongside optimizing
operating hours and staffing levels to reset the cost base
— This work and cost rationalisation saw Savor move to a 70% variable cost base and retain
prior levels of profitability while revenue reduced by 50%
— Pleasingly, the Group retained all key staff, achieving retention rates of 90% across all staff
— The successful launch of Savor Goods as a successful takeaway offering provides a platform
for future growth in this space
— With the lessons learnt throughout 2020, Savor has the ability to implement the same
changes within 48 hours, should further restrictions be introduced
— Continued momentum of the strong performance during pandemic, a flight to quality and
improved transaction value, resulted in EBITDA of $1.3m for 1H21 and a projected cashflow
circa $3m for full year
— Post capital raise Savor will have $5m of growth capital and $2m of additional available
working capital

P — 16
SAVOR LIMITEDMarch 2021
— The Group continues to invest in new
concepts, both refreshing existing
spaces and adding new ones
— The expansion of the Azabu brand to
Auckland’s Eastern Bays was made
possible following the acquisition of
Mission Bay Pavilion, including the
iconic heritage Stonehouse
— The relaunch of NSP included a
refreshed menu, new décor and new
fixtures, resulting in a strong increase
in year on year trading
— The Group will further expand its
footprint through the acquisition
of Amano, Amano Bakery, Amano
Gelato, Ortolana and The Store
“Amazing food, excellent service
a little hidden gem in Parnell.
Highly recommend this place.
We had the carpaccio, the best I
have ever had, a pizza and pasta.
All excellent.”
— NSP Customer Review December 2020
“The brains behind some of
Auckland’s best eateries such as
Ostro and Ebisu, Savor Group, have
done it again, creating original food
experiences at unique locations —
and boy, is this location unique.”
— Azabu Mission Bay Urban List Review
3.
—
Expansion
Potential
Non Solo
Purchased and redeveloped in August
2020, Non Solo was previously owned
and operated privately for 20 years.

A successful modernisation has
included the essence of the brand being
retained as well as steady growth
Azabu Mission Bay
Following on from huge success in
Ponsonby, Azabu Mission Bay was
successfully launched in the summer
of 2020 and has been greatly received
by locals in the Eastern Bays and
demonstrates the strength of the brand

March 2021
Extending Brands to
Accelerate Growth

P — 18
SAVOR LIMITEDMarch 2021
Leveraging Strength for Growth
RESTAURANTS
& BARS
FAST CASUAL
MULTI SITES
(GRAB & GO)
— Create multi-site offerings by leveraging off our masthead brands to maximising margins
— Fast casual and Grab and Go are smaller sites with high margin product with lower overheads
— Central kitchens of masthead brands reduces cost of goods sold and wages by not requiring highly skilled labour in multi-sites

P — 19
SAVOR LIMITEDMarch 2021
APERITIVO
HOUR
Join us for our
Legendary Aperitivo Hour
Wednesday — Saturday
5pm — 7pm
Complimentary bites
in the Osteria + bar

P — 20
SAVOR LIMITEDMarch 2021
Artisan gelato, made fresh onsite
66—68 Tyler Street, Britomart
Artisan gelato
66—72 Tyler Street, Britomart.
66 — 68 TYLER ST. BRITOMART AKL.
ARTISAN BREADMAKERS.
66 — 68 TYLER ST. BRITOMART AKL.
ARTISAN BREADMAKERS.

P — 21
SAVOR LIMITEDMarch 2021
Financials

P — 22
SAVOR LIMITEDMarch 2021
FY20 Pro-Forma Normalized Combined Group
$000 FY20 Savor Group FY20 Group / Corporate FY20 Amano Group Adjustments for acquisition & capital raise FY20 pro-forma total
Revenue 23,790 22,628 46,418
Reported EBITDA* 2,954 — 1,628 3,907 5,233
Total assets 35,191 972 3,970 23,785 63,918
Total liabilities 13,999 13,584 1,807 19,635 49,025
Net assets 21,192 — 12,612 2,163 4,850 14,893
* Savor Group figures include only six months of trading for Non Solo Pizza and exclude Azabu at Mission Bay, which opened in the current year.

P — 23
SAVOR LIMITEDMarch 2021
In Summary
— Resetting to become a stronger,
pure-play hospitality business
rebranded to Savor Limited
– Reinvesting capital from Moa
Brewing divestment to drive
growth potential and future
earnings
– Strategic acquisition of

Amano Group expands
offering and footprint
— Rapid response plan in
place for lockdowns and
major market disruption;
2021 result demonstrates
ability to retain profitability
despite revenue impacts
— Low debt to earnings
ratio and strong support
from shareholders to
accelerate investment
in growth
— Clear pathway to
growth through organic
expansion across
New Zealand and
development of new
sites in FY22

---

10 March 2021
NZX Limited
Level 1, NZX Centre
11 Cable Street
Wellington
NOTICE PURSUANT TO CLAUSE 20(1)(a) OF SCHEDULE 8 TO THE FINANCIAL MARKETS
CONDUCT REGULATIONS 2014: SAVOR RENOUNCEABLE RIGHTS ISSUE
Savor Limited (Savor) has today announced that it will undertake a pro-rata 1 for 4.3077
renounceable rights issue of fully paid ordinary shares of the same class as already quoted
on the NZX Main Board of NZX Limited at an issue price of 17.67 cents per share(the
Offer). The offer will be made pursuant to NZX Main Board listing rules 4.3.1(a) and 4.4.
Pursuant to clause 20(1)(a) of Schedule 8 to the Financial Markets Conduct Regulations
2014 (FMC Regulations), and the Financial Markets Conduct Act 2013 (FMCA), Savor states
that:
• Savor is making the Offer in reliance upon the exclusion in clause 19 of Schedule 1 to
the FMCA and is giving this notice under clause 20(1)(a) of Schedule 8 to the FMC
Regulations.
• As at the date of this notice, Savor is in compliance with the continuous disclosure
obligations that apply to it in relation to ordinary shares in Savor, and there is no
information that is “excluded information” as defined in clause 20(5) of Schedule 8 to
the FMC Regulations.
• As at the date of the notice, Savor is in compliance with its financial reporting
obligations.
The Offer is not expected to have any material effect or consequence on the control of
Savor.
Yours faithfully

Tim Peat
Chief Financial Officer
Savor Limited

---

Corporate Action Notice
(Other than for a Distribution)
100452393/8408460.1 Page 1 of 1
Section 1: issuer information (mandatory)
Name of issuer Savor Limited
Class of Financial Product Ordinary Shares
NZX ticker code SVR
ISIN (If unknown, check on NZX
website)
NZMOAE0001S1
Name of Registry Link Market Services Limited
Type of corporate action
(Please mark with an X in the relevant
box/es)
Share purchase
plan
Renounceable
Rights issue
X
Capital
reconstruction
Non
Renounceable
Rights issue

Call Bonus issue
Record date 18 March 2021
Ex-Date (one business day before the
Record Date)
17 March 2021
Currency NZD
Section 2: Rights issue
Number of Rights to be issued 33,955,853 (subject to rounding)
Number of Financial Products to be
issued under the Rights issue
33,955,853 (subject to rounding)
ISIN of Rights Security (if applicable) N/A
Minimum entitlement N/A
Entitlement ratio (for example 1 for 2) New 1 Existing 4.3077
Treatment of fractions Rounded to nearest whole number
Subscription price 17.67 cents per existing share
Letters of entitlement mailed 19 March 2021
Offer close 5pm on 31 March 2021
Quotation Date (if applicable) Market open on: N/A (Rights not Quoted)
Allotment Date Market open on: 8 April 2021
Section 7: Authority for this announcement (mandatory)
Name of person authorised to make this
announcement
Tim Peat
Contact person for this announcement Tim Peat
Contact phone number
+64 21 049 7442
Contact email address
tim@savor.co.nz
Date of release through MAP 10 March 2021

---

NZX Release
10 March 2021

Savor Limited expands hospitality business through acquisition of
prestigious Hipgroup venues: Amano, Ortolana and The Store


Savor Limited (NZX: SVR) (“Savor”, “the Group”), today announces that it has agreed to acquire the
Hipgroup venues; Amano, Ortolana and The Store, as part of its focus on growing its hospitality
business.
Highlights
• Acquisition of Amano, Ortolana, and The Store at Britomart businesses from subsidiaries of
Hipgroup for a cash payment of $7.15 million on completion, $1 million of ordinary shares in
Savor Limited to be issued on completion, and a deferred cash payment of $2.85 million to
be paid 12 months from completion
• Acquired venues immediately accretive to Group earnings with expected circa $3 million of
operating earnings (or EBITDA) of annual trading
• Transaction is to be funded through additional debt financing, plus new equity capital of $6
million already fully underwritten, to support growth and strengthen balance sheet
• Post transaction, the Group is expected to have approximately $7 million cash on hand to
support growth and a total debt to equity to ratio of approximately 2 times operating
earnings
Hipgroup is a market leader within the New Zealand hospitality industry, comprising well-known,
award-winning brands in Amano, Ortolana and The Store. The venues are located in Auckland’s
premier hospitality precinct, Britomart, strategically expanding Savor’s footprint in the flagship area
and cementing Savor Group’s position as a leader in the hospitality industry.
The acquisition will be immediately accretive to Group earnings, with incremental annualized
operating earnings (or EBITDA) of circa $3 million. Alongside this, Savor Group expects scale benefits
from leveraging its current overhead structure and to achieve both revenue and operational synergies.
The acquisition of these venues, combined with the divestment of Moa Brewing, provides the Group
with a solid financial base for future growth. Moa Brewing accounted for approximately $1.5 million
of working capital funds and over $1.6 million of overhead costs annually. The divestment has
significantly simplified the operations of the Group, removed the loss making division and with it,
several material business risks. The Group is now in a strong position to secure greater access to
financing and capital opportunities to fund its future growth plans as required.
The agility and resilience Savor Group displayed in response to Covid-19 restrictions over the past 12
months has resulted in a solid blueprint for lockdown response, that can be rolled out across the
business, including to the new Amano venues, should further restrictions be mandated. The business
was able to quickly reshape financial fundamentals, revise menus and product offerings alongside
optimizing operating hours and staffing levels to reset the cost base.

Lucien Law, Chief Executive Officer of Savor Limited, said: “These venues are a unique offering within
the New Zealand hospitality industry, and we are thrilled to be adding to our existing brands through
this acquisition. The venues are extremely popular and provide consumers with an outstanding dining
experience with sustainably sourced produce and an award-winning bakery that will enhance the
breadth of our offering, such as having all-day service, and widen our footprint in the region. Amano
has been remarkably resilient on a like-for-like basis through COVID, compared to competitors, and is
well positioned to bounce back when normal trading resumes.
Geoff Ross, Chairman of Savor Limited, said: “Looking ahead, Savor’s growth strategy is two-
fold and will focus on opportunities to build on existing brands, throughout New Zealand, as
well as acquiring new sites. The Group is poised to leverage the right opportunities with the
support of its expert management team and strengthened balance sheet. “
Jackie Grant, Managing Director of Hipgroup Limited, commented: “The development and success of
our venues and our people has been a significant achievement for Hipgroup, one of which we are
immensely proud. Ortolana and The Store were anchor tenants in 2013 when the Britomart precinct
was first developed and we’ve always believed in the precinct, which led to Amano opening in 2016.
All three venues encompass our ethos of value, quality, and care. While the decision to sell was not
taken lightly, I am delighted that these venues will go forward under the careful ownership of Savor. I
have no doubt that Savor will continue the growth and creativity, but most importantly, look after our
amazing and dedicated teams, leaders, and customers.”
The purchase price comprises a cash payment of $7.15 million on completion, $1 million of ordinary
shares in Savor Limited to be issued on completion (subject to an 18 month restriction on trading), and
a deferred cash payment of $2.85 million to be paid 12 months from completion date. The agreement
is conditional on finalisation of debt funding arrangements.
The transaction is expected to settle on 8 April 2021 and is to be funded through a combination of new
debt financing of $7 million and additional equity capital by way of a fully underwritten rights issue
intended to raise $6 million at 17.67 cents per share. The equity underwriters comprise existing
substantial shareholders and new professional financial investors. Further details of the intended
rights issue will be advised shortly.
Post transaction, Savor is expected to have approximately $7 million cash in a growth fund, which
will strengthen its Balance Sheet and position it for expansion.

- ENDS –

Investor Enquiries
Lucien Law
Chief Executive Officer, Savor Limited
Mobile: 021 436 329

Geoff Ross
Chairman, Savor Limited
Mobile: 021 424 219

Media Enquiries
Renée Bertuch
Cannings Strategic Communications
Mobile: +61 409 550 389


About Savor
Savor Group, established in 2011, is one of New Zealand’s largest hospitality businesses with 13
iconic venues in Auckland, including Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo Pizza,
each with its own unique concept, culture and offering. Savor has a reputation for originality, the
quality of its products and the high standard of service that is consistent across the company
portfolio.