SVR 2021 Annual Meeting

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Savor Limited
2021 Annual Meeting
18 November 2021

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– Welcome to Savor’s 2021 AGM
– Thank you for joining us virtually today
– Shareholders can view the presentations, ask questions
and vote on the resolutions on your devices
– If you encounter any issues refer to the virtual meeting
online portal guide or you can phone the helpline
0800 200 220
Welcome & Procedure

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Questions can be submitted at any time during the
meeting and will be answered after the presentation.
Voting:
You can cast your vote at any time during the meeting when voting opens by:
i. Selecting your voting directions from the options shown
ii. Your vote has been cast when the green tick appears, and you can
iii. Change your vote by selecting ‘change your vote’
Questions and Voting
1. SELECT ‘ASK A QUESTION’
AND ENTER YOUR DETAILS
1. SELECT ‘GET A VOTING CARD’
AND ENTER YOUR DETAILS
2. ENTER YOUR QUESTION
IN THE BOX
2. SELECT YOUR VOTING
OPTIONS
3. PRESS ‘SUBMIT QUESTION’
TO COMPLETE
3. PRESS ‘SUBMIT’
TO COMPLETE

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Formal Business and Agenda
Savor Board representatives are:
–Lucien Law and Paul Robinson (Executive Directors)
–Ryan Davis and Louise Alexander (Independent Directors)
Agenda:
–How the business is tracking and COVID-19 impact
–Key Priorities for success
–Half Year results
–Time-line for the year to date
–Formal Business (i) election of Independent Directors & (ii) appointment of auditors

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Chairman’s Address
Paul Robinson

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Chairman’s Address
–Thank you for your patience and sorry we could not hold this meeting in person. It is our expectation
that all venues will be open and trading from December 1 so we look forward to seeing you all soon.
–The Group performed well and the Hipgroup acquisition exceeded our expectations providing a
significant profitability and cash flow, we as a Board are very happy to say:
–In the first four months from the acquisition the Group built cash in excess of $2m.
–Prior to Covid cash from operations was on average $500,000 per month,
peaking in May at $800,000.
–EBITDA for the half year was over $2m with 6 weeks of covid impact,
as such would have been materially higher but for the lock down.
–This underscores the support of our venues and the strength of our brands
when we are trading normally again.
–Following this extraordinary winter run rate it was the Boards expectation to deliver
an EBITDA for the full year of circa $7m.
–While this will not be achievable now it provides us with great confidence that
the Group will bounce back and deliver strong financial results in the future.

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–Savor pivoted to an E-Commerce platform which delivered top line revenue of over
$130,000 per week.
–With stringent capital and cost discipline Savor’s cash burn was on average was
$88,000 per week (excluding bank charges) over the lock down to date, with
Savor’s cash reserves and balance sheet strength the Group was well placed to
navigate this prolonged lockdown and any long tail effects we may encounter.
–More than 65% of this cash burn is directly attributable landlord costs as a result of
our largest landlord only providing a 25% discount when the Group was operating
below 10% of normal trading levels.
–The opportunity cost of this lockdown has been significant with an expected $3m
of lost EBITDA.
–Savor expects to be profitable under the red traffic light setting and crucially will be
getting our 408 employees back to work.
–Given the lack of clarity we are unable to provide earning guidance currently.
COVID-19

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Priority 1
Successful execution of
business as usual:
–Get open, get our staff
engaged and get trading.
Priority 2
Strong Capital Management
and Cost Mitigation:
–With the dual headwinds
of wage inflation and
input costs rising the
executive team is focused
on the optimisation of the
core business.
Priority 3
Growth:
–Savor is actively
pursuing both organic
and inorganic growth.
–The current business
environment is providing
significant opportunities to
capitalise on this ambition.
Strategic Priorities

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Chief Executive
Officer’s Address
Lucien Law

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SEPT ‘21SEPT ‘21SEPT ‘20SEPT ‘20% INCREASE% INCREASE
REPORTED REVENUEREPORTED REVENUE1 7.1 M4.9M250%
REPORTED EBITDAREPORTED EBITDA2.1M1.0M110%
REPORTED OPERATING CASH FLOWSREPORTED OPERATING CASH FLOWS1 .1 M(0.1)M1200%
FY21 Half Year Overview

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Timeline of key milestones
FEBRUARY
Divestment of
Moa Brewing
APRIL
Hipgroup
Acquisition
JUNE
Distribution
Acquisition
AUGUST
Organic growth
with Bar Non Solo
and OJI Britomart
OCTOBER
COVID-19
Lockdown
MARCH
Capital Raise
M AY
Board Refresh
JULY
OJI Sushi
Acquisition
SEPTEMBER
Launch of
Savor Goods
via savor.co.nz

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February
– Sold loss making Brewery for $1.9m
cash after 10 years of meaningful loss.
– Divesting the Brewery allowed the
Group to dramatically reduce overhead,
working capital and allowed us to
de-risk and focus on growth.

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April
– Expanded the Group’s capabilities including bakery
& NZ’s most successful all day dining restaurant.
– Vastly exceeded expectations.
Acquisition of Hipgroup Venues
AMANOAMANO BAKERYTHE STOREORTOLANA

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June
– Acquisition of distribution centre in Kumeu.
– Savor now has much more vertical integration with the
ability to buy direct, buy local and quality control.
– This site also has its own butchery, gelato making
and dry goods storage.
– We’re seeing considerable savings in our direct
purchasing of fruit and vegetables.
– The integration of operations has slowed due to the
Covid lockdown but we expect to see the synergies
come through in the first quarter of 2022.

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July
– Purchase of OJI Sushi.
– OJI is an affordable casual Grab & Go sushi offering that
leverages off our Japanese credentials.
– The addition of OJI into Savor allows for a potential low
cost national roll out with lower labour and build costs
to that of our restaurants.
– We have expanded OJI into a new location of Britomart
and expanded its range to include a premium Ebisu offering.
– The roll out of OJI will also include schools and we are in
advanced discussions with several and also concessions
within convenience chains.

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August
– We continued our organic growth with the
establishment of Bar Non Solo.
– An expansion of the iconic NSP establishment in Parnell
and has brought a high energy and sophisticated bar into
Auckland’s premier dinning district of Britomart.
– I believe we have successfully captured the essence of NSP
and condensed it into a bar form with a great cocktail list
and a selection of small plates and NSP’s classic pizzas.
– Unfortunately the forced lockdown a week after opening lead
to the cancellation of 100’s of bookings but the demand
gives us confidence of a quick bounce back in December.

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September
– We launched a new website and e-commerce platform.
– The website brings together all the restaurants and into
one booking platform and the e-commerce function.
– We were extremely happy with the results especially
given the conditions we had to operate in.
– Since launch of the site during Level 4 and the
subsequent 11 weeks to date.
–Peaked at $160k a week for sales
–Averaged $130k per week in sales
–Total Sales of $1.1m with over
9,000 customers served

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OSTROAZABU MISSION BAYNON SOLO PIZZABAR NON SOLO
TOMMY’SAZABU PONSONBYAMANOEBISUTHE STORE BRITOMART
ORTOLANA
LOBSTER & TAPMARKET GALLEYBANG BANG KITCHENTHE WRECKOJI SUSHI

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Formalities
– Election of Ryan Davis
– Election of Louise Alexander
– Appointment of EY as Savor’s auditor

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Voting:
You can cast your vote at any time during the meeting when voting opens by:
i. Selecting your voting directions from the options shown
ii. Your vote has been cast when the green tick appears, and you can
iii. Change your vote by selecting ‘change your vote’
Voting
1. SELECT ‘GET A VOTING CARD’
AND ENTER YOUR DETAILS
2. SELECT YOUR VOTING
OPTIONS
3. PRESS ‘SUBMIT’
TO COMPLETE

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Resolution 1
That Mr Ryan Davis be elected as
a Director of the Company.

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Resolution 1 — Election of Ryan Davis
–Ryan Davis was elected to the Board in April 2021 and therefore offers himself for election
by shareholders at the 2021 Annual Meeting. Ryan is currently the Chair of the Audit & Risk
Committee and a member of the People & Culture and Remuneration Committees.
–Ryan is the founder and Managing Director of GreenMount Advisory based in Sydney,
Melbourne and Auckland, established in September 2018.
–Prior to this, Ryan was a Senior Partner and Asia-Pacific Private Equity Tax Leader for EY,
after joining EY in 2011. Ryan has been the lead Partner on some of Australia and New
Zealand’s largest private equity transactions with over 20 years’ experience advising
global and domestic clients on mergers, acquisitions, and divestments. Ryan’s extensive
experience in strategic transactions and strong financial background will prove vital as the
Group continues to execute its growth strategy. Ryan is a Chartered Accountant.
–The Board considers Ryan to be an independent director and unanimously recommends
that shareholders vote in favour of his election.

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Resolution 2
That Ms Louise Alexander be elected as
a Director of the Company.

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Resolution 2 — Election of Louise Alexander
–Louise Alexander was elected to the Board in April 2021 and therefore offers herself for
election by shareholders at the 2021 Annual Meeting.
–Louise is currently the Chair of the People & Culture Committee and a member of the Audit
& Risk and Remuneration Committees.
–Louise is a senior HR practitioner and people leader and is currently the HR Director
for Bell Gully, a role which she has held since 2015. Louise has developed and led Bell
Gully’s HR strategy over that time, focusing on communication, diversity and culture, and
supporting and developing people through the talent management programme. Louise
has a passion for the not for profit sector, with both management and governance roles in
various organisations throughout her career. Louise brings a critical skillset to Savor, where
the success of the Group is driven by its teams in the venues. Savor continues to look
for innovative ways to develop and reward our teams, and Louise’s appointment will bring
strength to continuing that process.
–The Board considers Louise to be an independent director and unanimously recommends
that shareholders vote in favour of her election.

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Resolution 3
To record the appointment of EY as auditors of
the Company and authorise the Directors to fix
the auditors’ remuneration.

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Questions

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Questions can be submitted by following the instructions below.
If you encounter any issues refer to the virtual meeting online
portal guide or you can phone the helpline 0800 200 220.
Questions
1. SELECT ‘ASK A QUESTION’
AND ENTER YOUR DETAILS
2. ENTER YOUR QUESTION
IN THE BOX
3. PRESS ‘SUBMIT QUESTION’
TO COMPLETE

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Savor Limited
2021 Annual Meeting18 November 2021

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Savor Limited
Annual Shareholders Meeting
18 November 2021

Chairman’s Address – Paul Robinson

As you will be aware we delayed this meeting in the hope we could hold this AGM in person. Unfortunately
as we are now in our thirteenth week of lockdown we do not think it is prudent to wait any longer.

As such I would like to thank you our shareholders for your support and patience in this challenging year.

It is our expectation that our venues will be open to fully vaccinated customers come December 1 and with
bookings already filling up we looking forward to seeing you all again very soon.

Turning to recent business performance:

It is with great pleasure that I can say the Group saw a significant increase in profitability in the half year
with the business performing extremely well and the contribution from the Hipgroup acquisition
surpassing our expectations.
Prior to Covid cash from operations was averaging $500,000 per month, peaking in May at $800,000. I am
sure you will agree these are great results in what is the off-season for hospitality.
The half year results (released today) saw the Group build cash in excess of $1m, this time frame included
6 weeks of covid impact. In the first four months of the year the cash build was even higher, in excess of
$2m. However the abrupt Auckland lock down meant we were caught paying suppliers and other fixed
charges without any corresponding revenue to off-set these costs.
This cash build speaks volumes to the strength of Group earnings and our profit potential when trading
normally.
EBITDA for this half year was over $2m (again with 6 weeks of covid impact), which would have been
materially higher but for the lock down.
This powerful winter trading gives management great confidence of the support for our venues and the
strength of our brands.
To put it another way, based on Savor’s winter trading figures it was the Board’s expectation to deliver an
EBITDA for the full year of in excess of $7m.
While this will not be achievable now, the half year provides us with great confidence that the Group will
bounce back and deliver strong financial results when allowed to trade again.

Turning to Covid-19:

To start I would like to say our thoughts and wishes goes out to our fellow hospitality operators at this
difficult time.

At Savor we had the ability to pivot to a strongly supported e-Commerce platform which delivered top line
revenue of over $130,000 per week and over a $1m in headline sales.

While this income has gone a long way to defray many of the variable costs, we have experienced a mixed
response when it came to landlord assistance. Landlord assistance in 2021 has been significantly less than
that received in the 2020 lockdown.

Nevertheless, with stringent capital and cost discipline, the Group’s cash burn was only $88,000 per week
(excluding bank charges).

Much of the cash burn is a direct result of the resurgence payment being limited to 50 employees per legal
entity, which effectively penalised larger employers and capped our support at less than one quarter of
the true costs of this lockdown.

That said Savor’s cash reserves and balance sheet strength allowed the business to navigate this prolonged
lockdown and has positioned us well to withstand any long tail effects that we may experience.

The true cost of this extended lockdown, as with any seasonal business, is the opportunity cost. In terms
of EBITDA this has been significant, we estimate approximately $4 million being forgone to date.

Unfortunately due to the on-going lack of clarity we are unable to provide forward earning guidance
currently.


Turning to our strategic priorities:

Savor’s Group Strategy can be summed up in 3 key priorities:

- The first is to get open and trading again.

Very simply this is doing what we do well, every day, to the best of our ability. Be that the customer
experience, delivering a quality product or motivating and retaining key staff.

With our strong brands and highly professional staff getting back to business will be our number
one priority.

- The second is strong capital and cost management.

Our focus is on the optimisation of the core business.

This entails:
(i) Dealing with inflationary pressures such as wages or input costs.

(ii) Working our assets hard to ensure every square foot of our leasehold premises are driving
maximum revenue.

Earlier this year Savor purchased a centralised depot which enables us to mitigate rising input costs
by bulk ordering, consolidation of suppliers and butchering our own protein.

In optimising our rental costs we have carved out underutilised rental spaces and sublet to third
parties to offset approximately $300,000 p.a. of landlord related charges.

With wage inflation the Group has been reviewing its rostering policy and will be monitoring
opening hours to ensure wage costs are tightly controlled.

You will remember in February Savor sold off the loss making brewery. This shaved off
approximately $1m in Group costs, freed up $1.5m in working capital and most critically ended
the ongoing annual $3m of losses.

Finally Savor successfully closed out the dispute with the brewery contract manufacturer, 100% in
Savor favour and settled the contract dispute with the new owners, settled 85% in Savor’s favour.
We can now say with confidence this chapter is well and truly behind us.


- The Third Strategic Priority is Growth.

Savor is a growth company. We are actively pursuing both organic and inorganic growth
opportunities.

Savor has New Zealand’s strongest portfolio of premium hospitality brands and we intend to
leverage off these to expand our footprint in domestically in key markets as opportunities present.

The biggest single risk factor facing our industry currently is government policy, this particularly
felt in Auckland. The lack of nuance and prolonged uncertainty of this lockdown has motived the
Board to look further afield for opportunity and risk mitigation.

We expect to be in a position to share more on this with you on in the very near future.

END

CEO’s Address – Lucien Law

It’s a pleasure to present to you at my first Annual Meeting as CEO of Savor Group.

2021 has been a busy year and we had generated some fantastic momentum and had put ourselves into
a great position to take advantage of summer trading until the August lockdown.

I think it would be useful to run through the top line half year results and a brief timeline of the year to
date highlighting some of the key milestones met.

Half Year Results 2021:

- These numbers have 6 weeks of impact of the Covid restrictions and with that would have been
materially higher. That said we have confident with our brand portfolio and cash generation from
our businesses we just need to be allowed to open the doors and start trading again.

- The key metrics for the half year are:
o EBITDA: $2.1m vs $1m for same period last year, an increase of 110%
o Cash from operations: we built $1.1m vs negative $100k for the same period last year – a
1200% improvement

I’ll now take you through a timeline of some of the milestones that have been achieved during the year
to date.

In February – We sold the loss making brewery for $1.9m cash which was a good result after 10 years of
consistent and meaningful losses.

Divesting this liability stream not only allowed the Group to dramatically reduce overheads, working
capital and de-risk the business it positioned us well to peruse our growth strategy with a single minded
focus.

In April – We acquired the Hipgroup restaurants, Amano, Ortolana and the Store expanding the Group’s
capabilities to include a world class bakery and New Zealand’s most successful all day dining
establishment.

I must say while we were confident of the potential of these assets they have vastly exceeded our
expectations.

In May – We refreshed the board and brought on accounting and finance expertise in Ryan Davis and
skilled Human Resource talent in Louise Alexander, we will be asking you to ratify the appointment of
these directors later in the meeting.

June – With a clear eye on the inflationary pressures and the rising costs of imports Savor acquired a
Distribution Centre off Hipgroup, situated in Kumeu.

This acquisition now provides Savor with much more vertical integration with the ability to buy direct,
buy local and quality control.

We now have our own butchery, which ensures consistency and cost reductions by purchasing whole
beasts and breaking them down.

Also the space and expertise to order and store bulk dry goods with the associated cost savings.

We’re seeing considerable savings in our direct purchasing of fruit and vegetables. The full integration of
the depot into all our venues has slowed due to covid lockdown but we expect to see the synergies and
pricing come through in the first quarter of 2022.

In July – Savor purchased Oji Sushi an affordable premium sushi range to leverage off our Japanese
credentials, Oji will expand the groups offering to grab and go capabilities.

Sushi is one of New Zealand’s quickest growing fast food category and we believe the Oji model and
brand allows Savor a potential low cost national roll out with lower labour and build costs to that of our
restaurants.

We have expanded Oji into a new location of Britomart and expanded its range to include a premium
Ebisu offering.

The roll out of Oji will also include schools and we are in advanced discussions with several of and also
concessions within convince store chains.

In August – We continued our organic growth with the establishment of Bar Non Solo.

An expansion of the iconic NSP establishment in Parnell has brought a much needed high energy and
sophisticated bar into Auckland’s premier dinning district of Britomart.

I believe we have successfully captured the essence of NSP and condensed it into a bar form with a great
cocktail list, a selection of small plates and NSP’s classic pizza.

Unfortunately the forced lockdown a week after opening lead to the cancellation of hundreds of
bookings but the demand gives us confidence of a quick bounce back in December.

In September – We launched a new website and e-Commerce platform.

We had been working on this with the view to launching pre Christmas but with the lockdown the team
worked hard to bring this forward.

The website brings together all the restaurants and into one booking platform which is backed up by our
new central reservations team at head office.

The e-Commerce site has a takeaways section which we operate during covid but also Savor Goods
which we will continue to trade and grow during normal trading conditions.

Some of the highlights since launching the website during level 4:
- Peaked at $160k a week for sales
- Averaged $130k per week in sales over the 11 weeks of restrictions
- Total Sales of $1.1m with over 9000 customers served in 11 weeks.

I’m very happy with the results especially given the conditions we have had to operate in.

Concluding Remarks (slide 18)

In concluding I would like to take the opportunity to publicly thank all of our staff in particular the Savor
Management team both Head Office and at an operational level.

The website and e-Commerce platform finished in lockdown during a very challenging environment to
operate within was a great achievement but then delivering the numbers we did gave me an immense
sense of pride.

I believe the turnover we were able to achieve and quality we delivered to our customers was by far the
best within our competitive set.

The success of this gives me reason for great optimism for the fast rebounding of our brands, it
demonstrated the customer demand for our offering through the 11 weeks of lockdown so far and also
the resilience and professionalism of our team to deliver this product and takeaways isn’t an easy pivot
for any restaurant.

To keep the numbers up we had to innovation our product weekly, from new dishes to Halloween DIY
home baking kits! A massive effort from the team to push hard every day of lock down we could operate
at some level.

I am genuinely excited about reopening and our immediate future.

I believe we have industry leading restaurant brands in Amano, NSP, Bar Non Solo, Azabu, Ostro and
Ebisu and as we have demonstrated we can extend these brands and we are actively looking for
opportunities to grow these brands both within Auckland and outside. I see plenty of opportunity
continue to build on the turnaround we had achieved in the 6 months prior to the lock down.

Finally I would like to thank our external shareholders it was heartening to receive your emails and texts
of support throughout the lockdown it was greatly appreciated – Thank you.

END