AmRest Holdings SE. Q Presentation for Investors November 22nd, 2017

Transcription

1 AmRest Holdings SE Q Presentation for Investors November 22nd, 2017

2 Teleconference details AmRest Q results are included in the Q Financial Report which is available to download from Investor Relations section at: The recording of this Teleconference will be available at our website within 24 hours AmRest participants: Henry McGovern Founder of AmRest, Supervisory Board Member Aleksandra Tajak Global Controller Mark Chandler Management Board Member, Chief Financial Officer Michał Serwatka IR and M&A Director Wojciech Mroczyński Management Board Member, Chief Strategy Officer Dorota Surowiec IR Manager 2

3 Executive summary Q The strongest quarter in AmRest history Record-high EBITDA of PLN 200m Margin improvement in all major markets Solid top line growth of 17% driven by positive LFL across the board, new stores development and M&As Continued M&A activity in Europe Number of transactions closed, incl. PH Germany, pizzaportal.pl and KFC in Russia Our brands in new markets: 1st La Tagliatella in Portugal 1st KFC in Austria 1st Blue Frog in Spain and Poland 1st Pizza Hut in Czech Republic Solid growth of scale (144 restaurants opened YTD) 3

4 Our restaurants Total: China: 47 4

5 New restaurants openings* 52 stores opened in Q3 2017: 26 CE, 9 Russia, 15 WE (7 TAG, 3 KFC, 2 SBx Germany, 2 Pizza Hut, 1 Blue Frog), 2 Blue Frog in China, 144 stores opened in 2017 YTD (till November 21st, 2017): 77 CE, 19 Russia, 37 WE (24 TAG, 5 KFC, 2 SBx Germany, 3 Pizza Hut, 1 Blue Frog), 11 Blue Frog in China, Solid pipeline assumes opening of about 210 restaurants in Significant acquisitions: 15 KFC restaurants on the German market at the beginning of March, 123 Pizza Hut Delivery restaurants (including 116 franchised units) in France in May 2017, 69 Pizza Hut restaurants (including 67 franchised restaurants) in Germany at the end of July KFC restaurants in Russia at the beginning of October 42 KFC restaurants in France (so far 29 locations were taken over) 5 * Including franchisee operated stores

6 Continued growth in the number of restaurants % [1] Total: Countries of operation: Poland, Czech Republic, Hungary, Russia, Romania, Bulgaria, Serbia, Croatia, Slovakia, Austria, Spain, Portugal, France, Germany, China Data doesn t include Applebee s restaurants sold in 2012 to Apple American Group II, LLC [1] Including franchisee operated stores

7 Financial highlights Q Sales at PLN 1 356m (+17% vs LY) CE PLN 686m (+17%) Russia PLN 141m (+12%) Western Europe PLN 447m (+19%) China PLN 68m (+15%) EBITDA at PLN 200m (+25% vs LY) EBITDA margin at 14.8% (+0.9pp vs LY) EBIT at PLN 119m (+31% vs LY) EBIT margin at 8.8% (+0.9pp vs LY) Net profit * at PLN 85m (+37% vs LY) Net debt/ebitda ratio at 1.99x * Attributable to AmRest shareholders 7

8 Q financials by segments +17.1% 686 SALES [mpln] % % % 68 Q Q Q Q Q Q Q Q CE Russia Western Europe China Adjusted EBITDA margin 16.2% 17.4% 13.0% 16.0% 14.4% 16.1% 11.8% 9.1% 8

9 Q YTD financials by segments % SALES [mpln] +42.5% % % 200 Q Q Q Q Q Q Q Q CE Russia Western Europe China Adjusted EBITDA margin 15.1% 15.6% 12.5% 12.6% 15.9% 11.8% 7.5% 11.8% 9

10 Q financials key figures Thousand PLN Q Q Q Q Q Q TTM [1] Sales Sales growth [2] 20.7% 34.4% 32.3% 33.7% 27.2% 17.1% 26.9% Adjusted EBITDA [3] Adjusted EBITDA (%) 14.3% 14.4% 13.9% 10.6% 13.0% 15.5% 13.3% EBIT EBIT (%) 5.6% 7.9% 5.5% 3.5% 5.0% 8.8% 5.8% Profit for the period [4] Profit for the period (%) 3.7% 5.4% 4.3% 1.8% 2.7% 6.3% 3.8% Net debt Net debt/ebitda [1] Trailing 12 months [2] The growth vs corresponding period in the previous year [3] EBITDA adjusted by costs of new openings (start-up), costs of mergers and acquisitions (all material costs relating to professional services, connected with finalized merger or acquisition and directly related to the transaction), corrections in indirect taxes and the effect of SOP exercise method modification (difference in accounting cost of employee benefits accounted under cash settled versus equity settled option plan). [4] Attributable to AmRest shareholders and adjusted for the Put Option valuation 10

11 Outlook Favorable trends in the foodservice industry across Europe Expected solid performance of Core business in Q and beyond 200+ new restaurants to be opened by end of 2017 Accellerated organic growth going forward. Ambition of 300+ new openings in 2018 Short-term pressure on margins coming from M&As and accellerated organic growth Single-digit EBITDA growth expected in Q due to acquisition, integration and startup costs Less M&A activity in 2018 & focus on intergation of acquired businesses Uncertainty regarding Sunday trading ban, taxation or changes to social security system 11

12 3 years guidance Sales growth Double-digit organic growth Potential M&A activity EBITDA Strong EBITDA growth driven by sales and margin improvement EBITDA above Capex 20%+ ROIC on expansion Capex Improved ROIC on existing investments through growing margins, Prudent capital allocation (80/20) and lower build cost CAPEX Average Capex per restaurant below PLN 3m >200 restaurants p.a. Leverage Declining annually 12

13 IR contact Michał Serwatka tel mobile: Dorota Surowiec tel mobile:

14 Backup

15 AmRest strategy Leverage our WJM culture, international capability and superior brand portfolio to grow scalable, highly profitable restaurants globally PEOPLE WJM culture Scalable and highly profitable restaurants (20% ROIC) BRAND Superior brand portfolio SCALE International capability Our unique proposition Through our WJM culture we will deliver delicious taste and exceptional service at affordable prices 15

16 Superior BRAND portfolio AmRest unique approach Franchised brands 630 restaurants 11 countries Within AmRest since 1994 Global # 1 in Chicken Category Fresh chicken and genuine food Craveable taste Innovative design and order system Delivery platform and mobile restaurants 52 restaurants 3 countries Within AmRest since 2007 Global # 2 in Burger Category Better burger 100% beef, flame grilled! Have it your way philosophy 290 coffee shops 7 countries Authentic, humorous and bold approach Strong focus on quality Within AmRest since 2008 Global # 1 in Coffee Personalized customer service Fresh food offer, locally developed Starbucks Reserve Substantial white space in CE 314 restaurants 6 countries Within AmRest since 1993 Global # 1 in Pizza Category Handmade pizza and much more! Casual dining experience Unmatched hospitality World class food innovations Family and friends meeting place 16

17 Superior BRAND portfolio AmRest unique approach Proprietary brands # 1 in Italian category in Spain Authentic Italian cuisine 232 restaurants 4 countries Within AmRest since 2011 Best quality ingredients sourced in Italy Almost 30 years expertise Fine dining experience at casual dining price Unique business model based on central kitchen operations 45 restaurants 3 countries Within AmRest since restaurants China Within AmRest since 2013 High-end Casual Dining concept American cuisine with Asian touch Fresh, craveable food served in a relaxed atmosphere Distinctive restaurant concept poised for expansion High-end Casual Dining concept Superior quality bistro food with extensive wine and coctail menu A place to meet extremely popular among professionals at managerial level 17

18 EAT factsheet Ticker EAT (AmRest) Listing WSE Free float 25.01% Free float 25,01% Analyst Coverage Number of employees Unicredit, mbank, Wood&Co, Trigon, Raiffeisen Centrobank AG, Noble Securities, IPOPEMA, ERSTE, DM PKO BP, DM Banku BPS, BM Bank BGŻ Gosha Holdings 11,61% Nationale- Nederlanden OFE 9,59% FCapital Dutch B.V.[2] Number of shares 21.2m Number of restaurants [1] [1] Including 338 restaurants operared by La Tagliatella and Pizza Hut franchisees 18

19 Q segment reporting 19 PLN '000 Q Share Margin Q Share Margin Sales Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany % % Other Western Europe % % Western Europe % % China % % Unallocated % % EBITDA % % Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany % Other Western Europe Western Europe % % China % % Unallocated Adjusted EBITDA* % % Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany % Other Western Europe Western Europe % % China % % Unallocated EBIT % % Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany % Other Western Europe Western Europe % % China % % Unallocated [*] EBITDA adjusted by costs of new openings (startup), costs of mergers and acquisitions (all material costs relating to professional services, connected with finalized merger or acquisition and directly related to the transaction), corrections in indirect taxes and the effect of SOP exercise method modification (difference in accounting cost of employee benefits accounted under cash settled versus equity settled option plan)

20 Q3 YTD 2017 segment reporting 20 PLN '000 Q3 YTD 2017 Share Margin Q3 YTD 2016 Share Margin Sales Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany % % Other Western Europe % % Western Europe % % China % % Unallocated % % EBITDA % % Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany Other Western Europe Western Europe % % China % % Unallocated Adjusted EBITDA* % % Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany % Other Western Europe Western Europe % % China % % Unallocated EBIT % % Poland % % Czech Republic % % Hungary % % Other CE % % Total CE % % Russia % % Spain % % Germany Other Western Europe Western Europe % % China % Unallocated [*] EBITDA adjusted by costs of new openings (startup), costs of mergers and acquisitions (all material costs relating to professional services, connected with finalized merger or acquisition and directly related to the transaction), corrections in indirect taxes and the effect of SOP exercise method modification (difference in accounting cost of employee benefits accounted under cash settled versus equity settled option plan)

21 Q consolidated P&L 21 [ PLN '000] Q % of sales Q % of sales Restaurant sales Franchise and other sales Total sales Company operated restaurant expenses: Food and material % % Payroll and employee benefits % % Royalties % % Occupancy and other operating expenses % % Franchise and other expenses % % General and administrative (G&A) expenses % % Impairment losses % % Other income % % Profit/(loss) from operations % % EBITDA % % Financial costs % % Income/(Cost) from put option valuation Financial income % % Income/(loss) from associates 0 0.0% % Income tax expense % % Profit for the period from continuing operations % % Loss on discontinued operations Profit for the period % % Attributable to: Non controlling interest % % Equity holders of the parent % %

22 Q3 YTD 2017 consolidated P&L 22 [ PLN '000] Q % of sales Q % of sales Restaurant sales Franchise and other sales Total sales Company operated restaurant expenses: Food and material % % Payroll and employee benefits % % Royalties % % Occupancy and other operating expenses % % Franchise and other expenses % % General and administrative (G&A) expenses % % Impairment losses % % Other income % % Profit/(loss) from operations % % EBITDA % % Financial costs % % Income/(Cost) from put option valuation Financial income % % Income/(loss) from associates 0 0.0% % Income tax expense % % Profit for the period from continuing operations % % Loss on discontinued operations Profit for the period % % Attributable to: Non controlling interest % % Equity holders of the parent % %

23 Q net profit and adjusted EBITDA reconciliation [ PLN '000] Q % of sales Q % of sales Q3 vs Q3 % of change Restaurant sales % % % Franchise and other sales % % % Total sales % Net Profit for the period % % % Adjusted Net Profit for the period % % % + Finance costs % % % - Finance income % % % - Income/(loss) from associates 0 0.0% % % + Income tax expense % % % - Gain on discontinued operations 0 0.0% 0 0.0% 0 n/a + Depreciation and Amortisation % % % + Impairment losses % % % EBITDA % % % + Start-up expenses* % % % + M&A related expenses** % 0 0.0% 96 n/a + / - Effect of SOP exercise method modification*** 0 0.0% 0 0.0% 0 n/a + / - Indirect taxes adjustments**** 0 0.0% 0 0.0% 0 n/a Adjusted EBITDA % % % 23 * Start-Up expenses all material operating expenses incurred in connection with new stores opening prior the opening. ** M&A expenses all material expenses connected with successful acquisition covering professional services (legal, financial, other) directly connected with transaction. *** Effect of SOP exercise method modification a difference in accounting cost of employee benefits accounted under cash settled versus equity settled option plan **** Indirect taxes - all material adjustments for indirect taxes reported in given period but concerning prior reporting periods resulting from tax fillings adjustments. Indirect taxes are mainly VAT, land tax and other EBITDA level taxes.

24 Q YTD net profit and adjusted EBITDA reconciliation Q3 YTD vs Q3 [ PLN '000] Q YTD Q YTD % of sales % of sales YTD % of change Restaurant sales % % % Franchise and other sales % % % Total sales % Net Profit for the period % % % Adjusted Net Profit for the period % % % + Finance costs % % % - Finance income % % % - Income/(loss) from associates 0 0.0% % % + Income tax expense % % % - Gain on discontinued operations 0 0.0% 0 0.0% 0 n/a + Depreciation and Amortisation % % % + Impairment losses % % % EBITDA % % % + Start-up expenses* % % % + M&A related expenses** % % % + / - Effect of SOP exercise method modification*** % % % + / - Indirect taxes adjustments**** 0 0.0% % % Adjusted EBITDA % % % 24 * Start-Up expenses all material operating expenses incurred in connection with new stores opening prior the opening. ** M&A expenses all material expenses connected with successful acquisition covering professional services (legal, financial, other) directly connected with transaction. *** Effect of SOP exercise method modification a difference in accounting cost of employee benefits accounted under cash settled versus equity settled option plan **** Indirect taxes - all material adjustments for indirect taxes reported in given period but concerning prior reporting periods resulting from tax fillings adjustments. Indirect taxes are mainly VAT, land tax and other EBITDA level taxes.

25 25 AmRest portfolio Countries Brands Poland KFC BK SBX PH BF Czech KFC BK SBX PH Hungary KFC SBX PH Russia KFC PH Bulgaria KFC BK SBx Serbia KFC Croatia KFC Romania SBx Slovakia SBx US TAGE TAGF AB Spain TAGE TAGF KFC BF 1 1 France TAGE TAGF PH E PH F KFC 31 Germany SBx TAGE KFC PH E 3 3 PH F Austria 1 KFC 1 Portugal 1 1 TAGE 1 1 China BF KABB ST TAGE Total Amrest