Savor announces annual results

Results Announcement
(for Equity Security issuer)





Results for announcement to the market
Name of issuer Savor Limited
Reporting Period 12 months to 31 March 2021
Previous Reporting Period 12 months to 31 March 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
16,134 -33%
Total Revenue 24,234 -37%
Net profit/(loss) from continuing
operations
(3,090) N/A
Total net profit/(loss) (6,586) -63%
Interim/Final Dividend
Amount per Quoted Equity Security Not Applicable
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$(0.03) $(0.08)
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
N/A
Authority for this announcement
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 28/05/2021

Audited financial statements accompany this announcement.

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A member firm of Ernst & Young Global Limited


Independent auditor’s report to the Shareholders of Savor Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Savor Limited (“the Company”) and its subsidiaries (together
“the Group”) on pages 6 to 18, which comprise the consolidated balance sheet of the Group as at 31
March 2021, and the consolidated statement of comprehensive income, consolidated statement of
movements in equity and consolidated statement of cash flows for the year then ended of the Group, and
the notes to the consolidated financial statements including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 6 to 18 present fairly, in all material
respects, the consolidated financial position of the Group as at 31 March 2021 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand equivalents
to International Financial Reporting Standards and International Financial Reporting Standards.
This report is made solely to the Company's shareholders, as a body. Our audit has been undertaken so
that we might state to the Company's shareholders 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 Company and the Company's shareholders, as a body, for
our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
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 we have no relationship with, or interest in, the Company or any of
its subsidiaries. Partners and employees of our firm may deal with the Group on normal terms within the
ordinary course of trading activities of the business of the Group. We have no other relationship with, or
interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, 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, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of the audit report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial statements. The results of our audit procedures, including the procedures

A member firm of Ernst & Young Global Limited
performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated financial statements.
Goodwill impairment assessment
Why significant How our audit addressed the key audit matter
The Group holds goodwill of $17.1 million at 31 March
2021.
Given the nature of the Group’s operations, each of
its restaurants is determined to be a separate cash
generating unit (“CGU”). Goodwill is allocated to each
of these CGUs. To consider whether this goodwill is
impaired, the recoverable amount of each CGU is
determined each reporting period by reference to
valuations prepared using value-in-use basis using
discounted cash flow models (DCF models).
DCF models contain significant judgement and
estimation in respect of future cash flow forecasts,
discount rate and terminal growth rate assumptions.
Changes in certain assumptions can lead to significant
changes in the assessment of the recoverable amount
and so the assessment of whether goodwill is
impaired or not.
As a result of its assessment, the Group has recorded
an impairment of goodwill of $2m in the current year.
Disclosures regarding the Group’s key assumptions
adopted and the sensitivity to reasonably possible
changes in key assumptions which could result in
impairment for certain CGUs are included in Note 2.1
of the financial statements.

In obtaining sufficient appropriate audit evidence, we:
► understood the Group’s goodwill impairment
assessment process;
► assessed the Group’s determination of CGUs
based on our understanding of the nature of the
Group’s venues;
► obtained the Group’s DCF models and agreed
forecasts to a Board approved FY22 budget;
► assessed key inputs to the DCF models including
future cash flow forecasts, discount rates,
terminal growth rates as well as the Group’s
consideration of any impacts of COVID19 on
these estimates;
► involved our valuation specialists to assess the
Group’s discount rates. Our valuation specialists
were also involved in assessing the DCF models
for valuation methodology, including the
treatment of assumptions for capital expenditure,
working capital, and terminal value (including
consideration of any IFRS16 adjustments
required);
► performed sensitivity analysis in relation to the
discount rate and forecast cash flows for CGUs
which appeared to have a higher risk of
impairment to consider the potential impact of
changes in assumptions;
► considered the appropriateness and quantum of
impairment charge recognised in the financial
statements by reference to the range of possible
outcomes indicated by our sensitivity analysis;
and
► considered the adequacy of the associated
disclosures in the financial statements, including
the disclosure related to the CGUs where the
impairment assessment is sensitive to reasonably
possible changes in assumptions.
Information other than the financial statements and auditor’s report
The Directors are responsible for the other information. The other information comprises the Directors’
Report (but does not include the financial statements and our auditor’s report thereon), which we
obtained prior to the date of this auditor’s report, and the Annual Report, which is expected to be made
available to us after that date.

A member firm of Ernst & Young Global Limited
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained during the audit, or otherwise appears
to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard. When we read the Annual Report,
if we conclude that there is a material misstatement therein, we are required to communicate the matter
to those charged with governance and, if uncorrected, to take appropriate action to bring the matter to
the attention of users for whom our auditor’s report was prepared.
Directors’ responsibilities for the financial statements
The Directors are responsible, on behalf of the entity, for the preparation and fair presentation of the
consolidated financial statements in accordance with New Zealand equivalents to International Financial
Reporting Standards and International Financial Reporting Standards, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing on behalf
of the entity 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 cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the 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 International Standards on Auditing (New Zealand) 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.
A further description of the auditor’s responsibilities for the audit of the financial statements is located
at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1/. This description forms part of our auditor’s
report.
The engagement partner on the audit resulting in this independent auditor’s report is Simon O' Connor.




Chartered Accountants
Auckland
28 May 2021

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NZX Release
Savor announces Annual Results
28 May 2021
Savor Limited (NZX: SVR) (“Savor” or “the Group”), is pleased to announce its results for the financial
year ended 31 March 2021.
All figures presented are from the continuing operations of the Group unless otherwise stated.
Highlights:
• Savor reported operating earnings from continuing operations of $1.8m compared to $1.5m
in the prior year.
• Group revenue decreased to $16m from $24m in the prior year, as a result of the significant
business interruption and temporary venue closures due to COVID-19 lockdowns.
• Group operating cash flows for the year were $1.6m. (when adjusted for the delayed
settlement of payables from the prior year, reported operating cash flows were $1.0m).
• Including significant non-cash items such as depreciation of $2.2m, impairment charges of
$2m, and interest costs of $0.8m, the Group reported a net loss after tax of $3.1m.
• As a result of divesting Moa Brewing Company Limited, the Group reported a net loss after
tax from discontinued operations of $3.5m.
• The cash position of $7m on hand allows the Group flexibility to extend existing brands and
acquire additional assets.

Core Business
The Group continued the momentum achieved in the first half of the year, with sustained growth in
operating earnings through the summer period. The addition of Azabu at Mission Bay has been a great
success. Earnings from the Core Business were $3.6m up from $2.9m in the prior year, all the while
with revenue down by over 30%. This positions the Group for a strong financial performance in FY22.
The Group settled the acquisition of Amano, Ortolana, and The Store from Hipgroup Limited in early
April 2021, with the first six weeks of trading completed. Trading results have exceeded initial
expectations, and purchasing power synergies are already making a positive impact on input costs
across the Group. Work has begun on integrating the new additions into the wider Group, with benefits
from overhead efficiencies realized in April and May trading. The year culminated with strong trading
in March 2021 with an increase in patronage driven by the America’s Cup. Management is pleased
with the results and sustained efforts of our staff in what has been a difficult period.
Divestment of Moa Brewing Company
The Group realised a net loss after tax of $3.5m from Discontinued Operations, reinforcing the decision
to divest Moa Brewing Company during the year. While trading was impacted by a number of one-off
events during the year, most significantly the withdrawal of product in July 2020, the business
continued to experience negative returns. The divestment has allowed the Group to free up $1.5m of
working capital on a normalised basis, a significant reduction in overhead costs (in excess of $1m), and
the cash proceeds from the sale were applied to the Hipgroup acquisition in April 2021. There are two
current outstanding claims related to Moa Brewing Company Limited. The first relates to the product

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quality issues experienced during the year through its contract brewing partner, and the second relates
to the outstanding payment of the completion adjustment resulting from the sale of Moa Brewing
Company. The Group continues to pursue all avenues to reach resolution on both claims. The Board
has acted conservatively to ensure any ongoing liabilities associated with Moa Brewing Company that
can be attributed to the Group have been provided for in the financial statements.
Appointment of Board Chair
The Board have elected Paul Robinson to assume the role as Executive Chairman following the
retirement of Geoff Ross at the end of May 2021.
New Business
With cash on hand of $7m and strong support from our cornerstone investors and banking partners,
the Group is both looking to extend its existing brands and opportunistically acquire quality assets. The
Group is in discussions with several parties regarding the addition of further profitable assets. The
Group expects to be able to provide more detail in the coming months as these discussions materialize.
Savor Chairman Geoff Ross said: “2021 was a period of significant change for the Group, with the
divestment of Moa Brewing Company and managing the business through the significant events
related to COVID-19. The continued strength and resilience of our team has been remarkable and the
Board are incredibly pleased to have achieved these milestones. The sector has come through COVID-
19 stronger and our venues are performing well.”
CEO Lucien Law said: “It was pleasing to finish the financial year by announcing the acquisition of the
new venues from Hipgroup. While the financial results were impacted by COVID-19, we have a solid
foundation for future growth with a refocused business, which has been demonstrated by trading
results early in the new financial year. The divestment of Moa Brewing significantly lowers the Group’s
risk profile and removes the ongoing financial losses. The Group management team is firmly focused
on driving the Group’s growth, moving into sustained profitability and delivering strong returns for
shareholders.”
ENDS -
Investor Enquiries
Lucien Law
CEO, Savor
Mobile: 021 436 329


About Savor
Savor, established in 2011, is one of New Zealand’s largest hospitality businesses with 10 iconic
venues in Auckland, including Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo Pizza, each
with its own unique concept, culture and offering. In April 2021, Savor acquired the iconic Auckland
venues Amano, Ortolana, and The Store, bringing further strength and depth to the Group. Savor has
a reputation for originality, the quality of its products and the high standard of service that is
consistent across the company portfolio.