Savor 2023 Annual Meeting materials

Annual
Shareholders
Meeting
20 September 2023
LIMITED

Welcome
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Savor Limited Annual Shareholders Meeting

Agenda
–Welcome
–Ch
airman’s Address
–CEO’s Address
–F
ormal business
–Questions
–Clo
se
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Savor Limited Annual Shareholders Meeting

Chairman’s Address
Paul Robinson
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Savor Limited Annual Shareholders Meeting

Year of consolidation - sustained cost control
Key objectives:
Achieved by:
Controlling the wage cost
Driving efficiencies through cost of goods sold
Minimising variable costs
1.
Optimising Business
Performance
2.
Driving Operating
Cash Flow
3.
Continued Debt
Reduction
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Savor Limited Annual Shareholders Meeting
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Savor Limited Annual Shareholders Meeting

Wage Cost Management
Government friction costs have increased minimum wages and visa costs base salaries
Staff shortages through COVID-19 have led to carrying high staff costs going into 2023
An overall 2% reduction in labour costs, as a result from;

• Centrally managed rosters and twice weekly meetings with all venues resulted in tighter rosters, and;
• A 10% reduction in head count, total staff down to 535 from 592
YTD
labour costs in the are running at 44% of revenue, down from circa 47% in the prior year and only

2% higher than our long run target of 42%
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Savor Limited Annual Shareholders Meeting

Cost of Goods Sold Mitigation
Against a backdrop of a circa 9% increase on input costs the Group managed to hold our year to date cost of
good
s sold (COGS) to 31% of sales
At 31% of sales COGS are only 1% higher than our long run target of 30% annually
This has been achieved by:
• Inelastic demand from loyal customers regardless of menu price increases

• Economies of scale through purchasing power and menu alignment

• A 44% increase in venue buying efficiencies through our centrally managed depot

•

Bi
dding out and consolidating suppliers as well as creating own brand products
• Near
constant input pricing review and substitution of items
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Savor Limited Annual Shareholders Meeting

Revenue growth
46% improvement on the prior year
Continued growth in revenue demonstrates the strength
of
the Group’s brands and varied offerings, accompanied
b
y the excellence and dedication of our staff
Despite
macro-economic headwinds, revenue is only 5%
behind current forecast
We
have seen revenue coming off 10.2% in August and
in
the first couple of weeks of September perhaps as the
cost of living starts to bite consumers.
REVENUE
FY22 YTDFY23 YTD
-
5.00
15.00
10.00
25.00
20.00
Figures shown are for the period ended 31 July.
$m
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Savor Limited Annual Shareholders Meeting

Cash from operations
Net operating cash was $1.6m for the year to date
Compared to last years result from the same period
this was an improvement of 365%
These funds have been used to continue to drive
down the Group's term debt
Management are mindful that circa $4.5m of term
debt is maturing at the end of this financial year.
Figures shown are for the period ended 31 July.
-
0.50
-0.50
-1.00
1.50
1.00
2.50
2.00
FY23 YTDFY22 YTD
$m
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Savor Limited Annual Shareholders Meeting

Operating Earnings (EBITDA)
YTD EBITDA was $2.1m
This represents a 198% increase on the prior year
EBITDA is 8% behind budgeted forecast as a
result of:
(i) Revenue
being down by 5% to budget
(ii) Wages
behind budget by 2%, and
(iii) Cost of Goods sold running 1% over budget.
Figures shown are for the period ended 31 July.
-
0.50
-0.50
-1.00
1.50
1.00
2.50
2.00
FY23 YTDFY22 YTD
$m
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Savor Limited Annual Shareholders Meeting

CEO's Address
Lucien Law
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Savor Limited Annual Shareholders Meeting

Areas of focus
1.
Venue highlights
2.
Actively driving revenue
3.
Cost control & efficiencies
4.
Future
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Savor Limited Annual Shareholders Meeting

1. Venue highlights
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Savor Limited Annual Shareholders Meeting

14

15

16

2. Actively driving revenue
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Savor Limited Annual Shareholders Meeting

Driving Revenue
NZFW
Kahuria
Out
Catering
EventsMarketing
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Savor Limited Annual Shareholders Meeting

Driving Revenue
NZFW
Kahuria
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Savor Limited Annual Shareholders Meeting

NZFW
Kahuria
Driving Revenue
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Savor Limited Annual Shareholders Meeting

NZFW
Kahuria
Driving Revenue
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Savor Limited Annual Shareholders Meeting

NZFW
Kahuria
Driving Revenue
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Out
Catering
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Out
Catering
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Out
Catering
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Events
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Events
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Events
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Events
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Marketing
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Marketing
MODERATE YOUR
MODERATION
This is why we’re happy to bring that Italian
attitude to life to the waterfront of Auckland.
You ate at your desk all week, now it’s time
to eat like you mean it. Pace yourself. Take
your time. The plates are limitless. Eat like
you’re being fed by Nonna. Some antipasto,
some pasta, a main, some dessert.
Taste everything and wash it down with
something that takes a bartender a minute
or two to make.
IT’S NOT JUST HOW YOU
EAT, IT’S WHAT YOU EAT
Quality produce, locally sourced, prepared
with love presented in on the ‘counter’
buffet style. A seafood station with freshly
shucked oysters, tuna tartare and fresh
juicy prawns, shellfish and South Island
salmon. A stunning selection of lovingly
sourced meats including porchetta and
flame grilled rib eye steak. Plates of locally
sourced roast vegetables and roast potatoes
(which are worth making the trip for alone).
115 Customs Street West,
Viaduct Harbour, Auckland
09 801 6505
info@bivacco.co.nz
“Grab a plate.
Fill your glass.
Graze away your
Sunday. Perfect.”
THE LONGER YOUR LUNCH.

THE LONGER YOUR LIFE.
Everyone knows that Italians live longer
and happier lives than the rest of us. The
only question is how? It’s not hours spent
doing cardio. It’s not intermittent fasting.
And it’s not macro-dosing an ice bath.
Out Italian brethren know the secret to a
long happy life is time spent at the lunch
table with friends and family. The Italians
have a phrase they use which we love.
Il tempo è tesoro. It means time is treasure.
It means sit a while. It means loosen your
belt and pile your plate.
LIFE IS SHORT SO THE
COCKTAIL LIST IS LONG
Let’s not forget the Bivacco Bloody Mary
station, cocktail specials, Espresso
Martinis, loads of Italian wines, big Rosé
and plenty of Champagne. Time to take
relaxing seriously.
“Anyone who’s spent time in London or New
York has eaten like this. Big elevated buffets
of good simple food with big bold flavours.”
Executive Chef Chris Rendell.
Rendell has been waiting to launch a
concept like this. “It’s one of my favourite
ways to eat. When Lucien Law launched
Bivacco we knew exactly what we wanted
the weekends to be like. I love the buzz
of a full dining room with friends, family,
birthdays, hens do’s, kids and grandparents.
All happy and full. Nothing better.”
BETTER BOOK YOUR SPOT
The feast starts at 11am with a line up
of Auckland’s best DJ’s entertaining
you while you dine. We strongly suggest
making a reservation now. $75 pp.
Full plate. Full heart.
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Savor Limited Annual Shareholders Meeting

Driving Revenue
Marketing
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Savor Limited Annual Shareholders Meeting

3. Cost control and efficiencies
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Savor Limited Annual Shareholders Meeting

Cost control and efficiencies
DepotProtein
Wines
& Spirits
Wages
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Savor Limited Annual Shareholders Meeting

Depot
Purpose build facility with production for
b
utchery, juice, gelato as well as cold and
a
mbient storage for fresh produce
We have further consolidated our
p
urchasing with a 45% increase compared
t
o prior year to further capitalise on
e
conomies of scales.
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Savor Limited Annual Shareholders Meeting

Protein
We completed a tender process for our red
m
eat worth circa $1 million per annum
We have now consolidated our purchasing
with one supplier who is providing circa
70% of red meat purchases
Targeted savings of 15 – 20% on our
a
nnual purchases compared to last year
We will follow this tender process for other
c
ategories over the next few months to
f
urther achieve savings without sacrificing
q
uality
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Savor Limited Annual Shareholders Meeting

Wines & Spirits
These categories represent 70% of our
a
nnual beverage sales
We have again tendered for both and are
c
urrently underway with the goal of being
c
ompleted in October to take advantage of
su
mmer trading
Our own label “Idle Hands” launched in
January
2
023
Idle Hands achieves 75% margin, 5-10%
a
bove our normal target in the same
category

W
e expect and are on track to sell 12,000
litr
es of Idle Hands this year, we will grow
thi
s brand into other varietals next year
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Savor Limited Annual Shareholders Meeting

Wages
We have tightened our staff levels at a
v
enue level and removed $350k of fixed
l
abour cost heading into the winter months
Daily management of labour between
v
enues and head office to get ahead of
a
nything that may effect customer demand
suc
h as weather events
We have achieved a 2% saving to date
over
a $28 million annual labour cost
R
eal rewards for the business will
be
achieved if these savings can be
m
aintained over the Summer trading
period
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Savor Limited Annual Shareholders Meeting

4. Future
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Savor Limited Annual Shareholders Meeting

Formalities
The Group needs to address the following:
Resolution 1.
Election of Bhupen Master
Resolution 2.
Auditor Remuneration
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Savor Limited Annual Shareholders Meeting

Resolution 1
Bhupen Master was appointed to the Board in August 2023
and therefore offers himself for re-election by shareholders
a
t the 2023 Annual Meeting. Bhupen is currently Chair of
th
e Audit & Risk Committee.
Bhupen Master has spent his extensive career working with some
o
f the top financial institutions worldwide. Bhupen was most
recently an Executive Director of Goldman Sachs with extensive
e
xperience in global markets covering institutional investors and
w
as instrumental in leading numerous capital raisings during his
time. Prior to this, Bhupen spent over 20 years working in New
Z
ealand, Australia and the United Kingdom for Credit Suisse,
M
errill Lynch and Deustche Bank. Bhupen’s extensive experience
in
the capital markets and strategic transactions strengthens the
B
oard’s diverse skills and experience, and are essential to assist
in
guiding the Group as it continues on its growth trajectory.
That Mr Bhupen Master
be elected as a Director
of the Company.
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Savor Limited Annual Shareholders Meeting

Resolution 2
To authorise the Directors to
fix the auditors’ remuneration.
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Savor Limited Annual Shareholders Meeting

Questions
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Savor Limited Annual Shareholders Meeting

LIMITED
Thank you for attending our
Annual Shareholders Meeting
20 September 2023

Important Notice and Disclaimer
Disclaimer
This presentation has been prepared by Savor Limited (NZ company number 3979219, NZX ticker SVR (the “Company”).
Information
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presentation contains summary information about the Company and its activities which is current as at the date of this presentation.
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a
prospective investor may require in evaluating a possible investment in the Company or that would be required in a product disclosure
statement under the FMCA. The historical information in this presentation is, or is based upon, information that has been released to NZX
Limited (“NZX”). This presentation should be read in conjunction with the Company’s annual report, market releases and other periodic and
c
ontinuous disclosure announcements, which are available at www.nzx.com.
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presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire the Company’s
s
ecurities, and has been prepared without taking into account the objectives, financial situation or needs of prospective investors. Before
making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own
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Past performance
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past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is
not) an indication of future performance. No representations or warranties are made as to the accuracy or completeness of such information.
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presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operate, such
a
s indications of, and guidance on, future earnings and financial position and performance. Forward-looking information is inherently uncertain

and subject to contingencies outside of the Company’s control, and no assurance can be given that actual outcomes or performance will not
m
aterially differ from the forward-looking statements.

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Savor Limited Annual Shareholders Meeting

Important Notice and Disclaimer
Non-GAAP financial information
Certain financial information included in this presentation is non-GAAP financial information. This non-GAAP financial information is
not audited, and caution should be exercised as other companies may calculate these measures differently. The non-GAAP financial
information includes pro forma financial information to which certain adjustments have been made.
Savor Limited’s financial information has been prepared in accordance with Generally Accepted Accounting Practice. It complies with the
New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as
appropriate
for profit oriented entities. Savor’s financial statements also comply with International Financial Reporting Standards (IFRS).
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o
fficers, partners, employees, agents and advisers disclaim all liability and responsibility (whether in tort (including negligence) or
o
therwise) for any direct or indirect loss or damage which may be suffered by any person through use of or reliance on anything
contained in, or omitted from, this presentation.
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Savor Limited Annual Shareholders Meeting

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Savor 2023 Annual Shareholders Mee�ng Addresses

Chairmans Address
If you have been following this year’s repor�ng season it will be no surprise this has been a
difficult trading environment for consumer facing businesses. The hospitality industry may
be viewed as something of a bell-weather for consumer discre�onary spending and we have
certainly seen our share of closures and consolida�ons within the industry. However strong
brands, with great customer service and well-run businesses con�nue to be rewarded.

In general in the early part of the year Savor benefited from the post-covid trend of a switch
in demand away from goods to the consump�on of services. Despite this trend unwinding as
the year has progressed, stringent cost control, decisive ac�on from management and a
resilient loyal customer base has gone a long way to producing a pleasing first half result.

Year of Consolida�on
Last year we signaled this was to be a year of consolida�on and our focus would be on
op�mising business performance, driving opera�ng cashflow and con�nued debt reduc�on.
This has been a successful strategy that has focused on three key areas, controlling the wage
line, driving efficiencies through cost of goods sold and keeping a lid on variable costs. I am
pleased to report management has done a great job in this regard.


Wage Cost Management
COVID led staff shortages resul�ng in a higher staff carrying cost as well as Government
imposed fric�on costs has meant that this has been the primary area of focus for
management.

Centrally managed rosters and twice weekly mee�ngs, daily in some cases, with all venue
management has resulted in �ghter rosters which together with a 10% reduc�on in head
count from 592 staff to 535 in total have delivered an overall 2% reduc�on in labour costs as
a percentage of revenue compared to the same period last year.

Pleasingly the labour costs for the year to date have been managed to 44% of revenue
against an annual target of 42% and down from 47% in the prior year. Management believes
this 2% overrun should naturally come into line over the busy summer trading months.

Nevertheless, labour cost management is complex process as headcount reduc�ons trigger
the costs of redundancy payments and we have seen marked increases in sick leave of late
threatening to blunt this gain. Furthermore, labour costs have a fixed component to them in
that you need to maintain minimum rosters regardless of turnover to uphold standards of
service and as such this cost line is highly dependent on hi�ng revenue targets.

We believe as the weather improves the group will achieve our internal targets which will be
an outstanding result and one that differen�ates Savor from the broader industry. Tight
management of headcount and rosters will therefore remain our area of focus.

Cost of Goods Sold
Turning to Cost of Goods sold, you only have to pick up the paper or visit your local
supermarket to appreciate how extremely demanding controlling this key expense has and
con�nues to be. Not only has rapid COGS infla�on been challenging to forecast and manage,
but the excess vola�lity per item from one day to the next has made this job even more
difficult.

H o w e v e r, it is with a great deal of pride that I can report despite a backdrop of a 9% increase
to the input costs the groups cost of goods sold for the year-to-date was 31% of sales. Lucien
will cover this in greater detail but to put this in perspec�ve this is only one percentage point
higher than our long-term average target of 30%. This has largely been achieved as a result
of the rela�vely inelas�c demand Savors experience offers customers, increases in the
economies of scale via menu alignment, bulk buying through our Depot, bidding out and
consolida�ng suppliers, crea�ng own brand products and an outstanding response from our
kitchen teams and head chefs who constantly review input pricing and subs�tuted items
across all venues on an ongoing basis.

Revenue Growth
Savor’s Year to Date Revenue was in excess of $21m reflec�ng a 46% increase on the prior
year. Against the backdrop of the difficult macro-economic condi�ons faced by our
customers, Savor’s first half revenue of $21m, is only 5% down on budget forecas�ng which
is an encouraging start to the year especially given the weather Auckland has experienced.
That said we have no�ced revenue so�ening in August and the start of September perhaps
as the cost of living starts to bite our consumers reinforcing revenue capture as a key
priority.

Cash From Opera�ons
Net Cash was up $1.6 million in the year-to-date July which compares favorably to a loss of
($0.5 million) in the same period last year. As I men�oned earlier, Bivacco’s lease has been
extended for a 10 year term which broadly aliens with the Group’s average lease hold asset
term of 10.2 years ensuring a stable runway for group earnings into the longer term with
minimal rate reset risk.

A point to note is approximately $4.5m of Savors term debt is maturing at the end of this
financial year. The Board is exploring op�ons as to the op�mal capital structure to maintain,
which includes par�al repayment out of cash flow, refinancing or re�rement of the debt. The
op�mal solu�on will hinge on our trading results and bank rates available. We will keep you
abreast of these decisions as the year develops. But we can say we have very strong
rela�onships and support from our bankers going forward.

EBITDA
Savor ’s EBITDA for the year to date was $2.1 million which is a 198% increase on the prior
year. This is a great result and largely a func�on of efforts to control the cost line. That said,
Savor’s half year EBITDA margin has been impacted rela�ve to our budgeted forecast by
approximately 8% as a result of revenue being under budget (by 5%) , the cost of goods
running (1%) higher than forecasts and the full effect of the labour cost reduc�ons yet to be
felt.

This has been a strong result given the difficult trading environment and management’s
con�nued focus on execu�on and cost controls has posi�oned Savor well for the all-
important summer trading period. Summer trading yields between 65 and 75% of the
Group’s profitability, meaning it is really all to play for at this stage.

I want to men�on the Board is very much aware of Savor’s flagging share price. In the
context of so� investor sen�ment in consumer discre�onary spending stocks and with
broader retail shares also suffering, we believe Savor is very much undervalued.

We believe this moment in the market will pass and the value of our company will be
reflected in our share price as we con�nue to grow. I will let Lucien share with you our
forward-looking plans and just want to say at this �me we thank you for your investment
and con�nued support.

I will now hand you over to our CEO Lucien Law.

Good morning my name is Lucien Law and I’m the CEO of Savor Group. There are four key
areas that I’d like take you through today.

Firstly I would like to discuss some of the venue highlights before moving on to two key
areas I’ve been working on with our team – driving revenue and then cost control and
efficiencies. Before lastly briefly discussing our future plans.

Venue Highlights
Amano
Amano continues to provide a strong base for the Group’s operations both in trading results
and proving itself a great incubator of staff, with several staff being promoted to
management positions in other Savor Group venues.

Trading wise Amano is still probably New Zealand’s largest restaurant in terms of sales of
over $15 million and with a best in class profit story achieving EBITDA extraction of
approximately 22%.

Bivacco
In its first 10 months of trading Bivacco has confirmed our belief that it will be one of our
most successful venues and a great bookend for the Group with Amano. Like Britomart, the
Viaduct is one of New Zealand leading dining and entertainment precincts and we have
learnt a lot in the 10 short months we have been trading there.

Summer trading was busier and exceeded our expectations bolstered by tourists and cruise
boats, the Viaduct in my opinion captures more of this business than any other precinct in
New Zealand.

Bivacco naturally and as expected came off its huge summer highs, but we were adversely
affected by the flooding and extreme rainfall with a fair amount of our outdoor seating
unable to be used for a large portion of the year to date.

However with winter behind usthe arrival of Spring and plenty of dry weather forecast we
have every reason to be excited and confident heading into summer. We have some strong
marketing initiatives locked in to make the most of summer and pleasingly corporate
bookings have already started to kick in this month.

NSP
Non Solo Pizza rounds out the Group’s large format venues and has had an outstanding
year, with a strong loyal following of local customers it will achieve annual sales over $5
million and an EBITDA extraction of approximately 25% - it could possibly be its best year in
26 years of operation. NSP’s success can be credited to a dedicated team of staff. Pleasingly
all leadership roles at NSP have been filled internally, demonstrating the depth of our teams
and our commitment to providing a clear career path for our staff.

As Paul mentioned, it is pleasing that revenue has grown in the first half of the year. With us
now moving into summer it’s all to play for a strong end to the year and solid full year
performance. Myself and my team are very clear on what we have to do to deliver that, to
drive revenue and control costs. These are the things that are within our control.

DRIVING REVENUE

In a challenging economic climate it has been important to actively drive revenue.

We have focused on three key areas:
1. Outcatering
2. Events
3. Marketing

NZ Fashion Week
A�er a compe��ve tender pitch process, Savor were appointed as the official food partner
for NZ Fashion Week. This is the first �me we have taken on an event of this size, which
generated over $120k in revenue across the 5 days. We were able to fully staff the event in-
house, u�lising 10% of our workforce. Our range of diverse offerings across mul�ple venues

were on display, providing high quality products to over 20,000 people from retail Oji Sushi
to sit down Bivacco events. This was a significant achievement given it was all executed off-
site at the Viaduct Event Centre

Out-catering
We’ve successfully completed a number of out-catering events this year, allowing us to
extend the experience outside of our venues, reaching both new and exis�ng customers.
Now that our venues are fully staffed, we see out-catering as a largely untapped market and
has poten�al for great growth heading into summer.

Events
This year we’ve seen a significant increase in the number of event enquiries we’ve had,
following the return from COVID. The easing of our staffing pressures means that we’re able
to reopen the last two levels of the Seafarers Building, with the Roo�op and Tommy’s open
for events in �me for summer. The events business has historically been worth up to $3m in
revenue for the Group, we’re targe�ng $500k over the next three months heading into
Christmas and a target for the year of $1.5m, to the build back to the $3m level for FY25.

Marke�ng
Post COVID we’ve seen significant demand from customers who want to come out and
celebrate key events, whether large or small. Throughout the year we’ve grown our Always
On offerings of Aperi�vo Hour, Bivacco Feast, and daily specials to provide value for
customers and drive consump�on through the typically quieter months . We’ve also had
overwhelming responses to �cketed Savor events like the Bivacco In Fashion series, House of
Suntory whisky bar and the Moet & Chandon dinner. These all provide a point of difference,
underpinned by Savor quality standards, crea�ng value and an experience for our
customers.
As you can see from the work on screen we have ac�vely worked our database of circa 120k
and worked with our partners to drive revenue with events and happenings outside of
Business as usual.

Cost Control and Efficiencies
In May of this year our executive team identified 4 key areas to work on to try to optimise
the business as much as possible as we anticipated some economic headwinds.

Depot
Having our own Depot is something unique to Savor in NZ hospitality, it allows us to bulk
purchase and store our goods at better rates and also helps to maintain quality control.

We actively pushed more purchasing from the venues through the Depot and increased the
categories of products we were procuring. The Depot now delivers to the venues Dairy,
Fresh produce, protein, packaging, consumables etc. Through this work the Depot volume is
up 45% on last year which will add to our buying power.

Protein
We conducted a tender this year on our red meat purchases. Following the tender we have
reduced our suppliers and captured the benefits of scale without compromising the
offering. We’re on track for a saving of 15-20% on our red meat compared to last year we
are working through a similar process on other protein categories, but red meat is our
largest.

Wines and Sprits
We are currently in the process of rationalizing our wine lists across all our venues and
working with a number of wine suppliers to improve our offering and also achieve some
economies of scales. This project will be completed this month and rolled out into venues in
October to take advantage of the increased summer trading.

At the start of this year I worked directly with a few wine companies to create and own label
of wine “Idle Hands”, this has been a great success for us.

Idle Hands sits at the cheaper end of our glass pour and we have achieved a 75% margin
which is 5-10% increase from what we normally target in the category.

We currently expect to sell 12,000 litres of Idle Hands this year and given the success we will
look to grow this brand into other varietals next year.

Wages
In May we redesigned our staffing requirements and slimmed down $350k heading into
winter. The biggest cost to our business is wages at venue level and we have adjusted our
model of rostering. The management team now “actively manage” these with the venue
managers in most cases daily. This allows us to react quicker to things that might impact the
venue revenue - such as weather and events that we might be experiencing in Auckland on
any given day. This has achieved a Group wide reduction of 2% saving on a $28 million
annual labour cost . To be clear our job is to maintain these ratios over the busy summer
trading period then we will see real rewards for these efforts!


The Future
I‘ve talked in the past about the potential for both Amano and Oji Sushi to expand into other
sites and markets . We believe in our brands, and we think Amano, Azabu and Oji deserve to
be expanded both in Auckland and beyond.

While we continue to receive offers from potential landlords, we’ve been cautious to ensure
we drive the best possible deals for these brands. They all add significant value to the
buildings they go into, both as a brand and the physical improvements and investment we
make to get to that standard. So, it’s important for us to find landlords who appreciate that
and also structure a deal which takes that into account.

We have looked seriously at opportunities in Queenstown and Waiheke but found the extra
costs of staffing associated with housing is not something we wanted to take on this year. So
in summary, we’re actively looking for sites for some of our best performing brands in
Auckland and beyond, but we’re committed to getting the best deal possible that we believe
they warrant.

Thank you.