Macquarie Investor Day Presentation

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1 RESTAURANT BRANDS NEW ZEALAND LIMITED Macquarie Investor Day Presentation Sydney 4 May 2017 Russel Creedy Group CEO

2 Presentation Outline RBD Who Are We FY17 Trading Results Hawaiian Acquisition Growth Opportunities

3 Restaurant Brands (RBD) is a corporate franchisee based in New Zealand with operations in Hawaii and Australia

4 Restaurant Brands has seen a solid sales and profit performance primarily from its New Zealand business over the past 5 years FY2013 FY2014 FY2015 FY2016 FY2017 Sales $NZm FY2013 FY2014 FY2015 FY2016 FY2017 Trading NPAT $NZm

5 Restaurant Brands is truly an international multi-brand operator $NZm NZ Australia NZ NZ NZ Hawaii Hawaii Total Sales Brand EBITDA People 2,300 2, ,070 7,570 Stores FY18 (analyst consensus)

6 Trading results for the 12 months ended 27 February 2017 (FY17) Commentary (FY17 vs FY16) Group Revenues +28.1% NPAT (excluding non-trading) +26.3% Reported NPAT (including non-trading) +7.8% Brand EBITDA +$19.3m driven by KFC Australia Fully imputed 13.5 cps final dividend brings full year to +9.5% Hawaiian expansion with acquisition of Pacific Island Restaurants (post balance date) $372.6m $404.1m $517.5m $22.5m $24.2m $30.6m $23.8m $24.1m $26.0m $61.5m $66.9m $86.2m 19.0cps 21.0cps 23.0cps - 82 stores

7 Restaurant Brands enjoys very strong operating cash flows Cash Flow $m Operating cash flow Investing cash flow (33.0) (15.3) (79.0) Free cash flow (31.1) Investing cash outflow (QSR) - - (63.9) Investing cash outflow (other) (41.4) (20.8) (20.3) Investing cash inflow (33.0) (15.3) (79.0)

8 The New Zealand business grew strongly in FY17 with sales of $400m, led by KFC KFC Sales Pizza Hut Sales 7.7% % % % 2.6% % Total Sales $m Same Store Sales % Total Sales $m Same Store Sales % Starbucks Sales Carl's Jr. Sales 6.9% 5.1% % % -5% -3.8% Total Sales $m Same Store Sales % Total Sales $m Same Store Sales %

9 KFC also drove New Zealand earnings growth in FY % KFC EBITDA 19.2% 20.2% 20.7% 16.0% 12.0% Pizza Hut EBITDA 13.2% 10.9% 10.0% 16.0% 12.0% EBITDA $m EBITDA % of Sales 8.0% 4.0% 0.0% EBITDA $m EBITDA % of Sales 20.0% Starbucks EBITDA Carl's Jr. EBITDA % 16.3% 16.4% 17.8% % % 1.3% 12.0% EBITDA $m EBITDA % of Sales EBITDA $m EBITDA % of Sales

10 Dividend up 9.5% to 23.0 cents commensurate with profitability (fully imputed at 28%) Earnings per share (excluding non-trading) cps Total dividend cps Payout ratio of NPAT (excluding non-trading) % 83% 85% 81%

11 The QSR acquisition settled on 27 April The 42 KFC stores have delivered ahead of plan QSR Sales above Target EBITDA up on target $NZm $NZm FY17 (10 months actual) FY17 (annualised) Year 1 Target FY17 (10 months actual) FY17 (annualised) Year 1 Target

12 Material growth opportunities are already being exploited in Australia Expand restaurant network A number of locations have been identified which represent ideal and profitable opportunities to increase the restaurant portfolio footprint in existing trade area Acquire other franchises/portfolios Potential scope to expand the QSR KFC portfolio footprint in NSW and other states, either through building restaurants in new locations or the acquisition of other franchise portfolios in the KFC network Two new stores under construction Five independent store acquired (settled after balance date) Potential acquisition of Yum restaurants Yum owns approximately 150 KFC restaurants in Australia and has just put 100 of them on the market RBD is actively evaluating the possible purchase of some of these stores

13 Restaurant Brands Hawaii Progress to date Agreement to purchase 100% of shares in Pacific Island Restaurants Inc. (PIR) for $US105 million signed 26 October 2016 PIR is the sole Taco Bell and Pizza Hut franchisee in Hawaii, Guam and Saipan Successful capital raising in November 2016 through Accelerated Renounceable Entitlement Offer (AREO) raised $NZ94 million from mainly existing shareholders Transaction was finally settled on 7 March 2017 Acquired business is expected to deliver $NZ180 million in sales and store EBITDA of $27 million; on target to deliver this to date

Transaction highlights PIR is a well-established, profitable business with potential for improved profitability from a targeted re-investment programme, and provides a beachhead for other potential

14 Transaction highlights PIR is a well-established, profitable business with potential for improved profitability from a targeted re-investment programme, and provides a beachhead for other potential opportunities 1. Established in 1971, PIR is the sole Taco Bell and Pizza Hut franchisee in Hawaii, Guam and Saipan, has been consistently profitable in recent years and has a stable, experienced management team (average tenure of 25 years) Store network Hawaii Guam Saipan 2. Taco Bell and Pizza Hut are both iconic Yum! brands and have leading positions in their respective markets with attractive and stable margins 3. There is an opportunity to execute an investment programme (which has been substantially agreed with Yum!) to progressively refresh PIR s stores, which Restaurant Brands believes will improve PIR s profitability, reflecting RBNZ s experience over the last ten years in New Zealand PIR provides the next stage of RBNZ s growth platform and an entry point into the Hawaii market and platform for other potential bolt-on acquisitions Leading market share in branded QSR pizza and Mexican food in Hawaii 1 5. Hawaii has a stable legal and economic framework, with sound forecast GDP growth of approximately 4% p.a. from 2015 forecast through to Taco Del Mar 9% Little Caesars 12% Boston's 7% Harpo's 1% 6. PIR s primary exposure is to the domestic Hawaiian market, and provides an opportunity to service a portion of the 8.9 million visitor arrivals to Hawaii each year Taco Bell 91% Papa John's 16% Pizza Hut 43% Domino's 21% 1. Market share data as at March 2016 based on Oahu, Hawaii customer visits per Ward Research Inc, extrapolated to account for PIR presence in neighbouring islands; 2. State Hawaii, Department of Business, Economic Development and Tourism, Outlook for the Economy Q

15 PIR historical performance Consistent same store sales growth and improving EBITDA margins have driven increases in profitability PIR sales Sales (US$m) CY13 CY14 CY15 Pizza Hut Taco Bell PIR consolidated same-store sales growth Same-store sales growth (%) 7% 6% 5% 4% 3% 2% 1% -% 1.1% 3.6% 6.3% CY13 CY14 CY15 PIR store level EBITDA PIR consolidated pro forma EBITDA Store level EBITDA (US$m) CY13 CY14 CY15 Pizza Hut Taco Bell EBITDA (US$m) CY13 CY14 CY15

Taco Bell Taco Bell is a strongly performing QSR with a loyal customer base

Contributed 70% of PIR s CY15 store level EBITDA Leading Mexican QSR in the

Box, Wendy s, Zippy s and Taco Del Mar Taco Bell store formats cover

menu which includes breakfast and late night options Staged upgrade of

Del Mar 9% Taco Bell 91% EBITDA growth driven by a combination of sales

product offering supported by continued innovation Nacho Cheese Doritos Locos

16 Taco Bell Taco Bell is a strongly performing QSR with a loyal customer base and strong margins Key facts 37 stores, 30 in Hawaii and seven in Guam Contributed 70% of PIR s CY15 store level EBITDA Leading Mexican QSR in the local market; key competitors include: McDonald s, Burger King, Jack in the Box, Wendy s, Zippy s and Taco Del Mar Taco Bell store formats cover drive-thru, dine-in and takeaway Higher margins driven in part by an all day menu which includes breakfast and late night options Staged upgrade of mission style buildings by 2025 Hawaiian market leader in Mexican QSR 1 Taco Del Mar 9% Taco Bell 91% EBITDA growth driven by a combination of sales growth and margin improvement (US$m and % sales) Crunchwrap Supreme Unique product offering supported by continued innovation Nacho Cheese Doritos Locos taco Breakfast Crunchwrap Quesalupa Store level EBITDA (US$m) CY12 CY13 CY14 CY15 1. Market share data as at March 2016 based on Oahu, Hawaii customer visits per Ward Research Inc, extrapolated to account for PIR presence in neighbouring islands.

Pizza Hut PIR has a strong network of Pizza Hut stores, which operate on similar margins to Pizza Hut New Zealand Key facts 45 stores, 38 in Hawaii, six in Guam and one in Saipan Contributed 30% of

17 Pizza Hut PIR has a strong network of Pizza Hut stores, which operate on similar margins to Pizza Hut New Zealand Key facts 45 stores, 38 in Hawaii, six in Guam and one in Saipan Contributed 30% of PIR s CY15 store level EBITDA Pizza Hut has a higher Hawaiian market share than its next two largest competitors combined 1 Named Hawaii s Best Pizza by the Honolulu Star-Advertiser in 2016 Stable store level EBITDA margin of ~10% Store upgrade plan commenced in 2015, with the majority of stores still to be upgraded Pizza Hut is the Hawaiian market leader in Pizza QSR 1 Boston's 7% Little Caesars 12% Papa John's 16% Domino's 21% Harpo's 1% Pizza Hut 43% 1 of 13 Red Roof stores, the other 32 stores are Delco (Delivery / Pickup) or Food Court stores Strong store network Consistent EBITDA (US$m and % sales) Pizza hut Domino's Papa Johns Little Caesars 6 Boston's 1 Harpo's Harpo s Store level EBITDA (US$m) CY12 CY13 CY14 CY15 1. Market share data as at March 2016 based on Oahu, Hawaii customer visits per Ward Research Inc, extrapolated to account for PIR presence in neighbouring islands; 2. CY14 margins impacted by high commodity prices, particularly cheese

Store refresh strategy Restaurant Brands experience in New Zealand indicates that a targeted store refresh programme could further improve PIR s profitibility Overview New Zealand KFC Transformation

for Taco Bell and is in advanced discussions for Pizza Hut The investment programmes are expected to be funded out of PIR s operating cash flows and PIR debt facility RBNZ s own experience in New

18 Store refresh strategy Restaurant Brands experience in New Zealand indicates that a targeted store refresh programme could further improve PIR s profitibility Overview New Zealand KFC Transformation Programme PIR has recently agreed a ten year investment programme with Yum! for Taco Bell and is in advanced discussions for Pizza Hut The investment programmes are expected to be funded out of PIR s operating cash flows and PIR debt facility RBNZ s own experience in New Zealand has been that store refresh expenditure typically results in increased store sales and profitability and generates an attractive return on capital Before transformation After transformation KFC New Zealand sales growth following store transformation programme In New Zealand, RBNZ has been able to achieve sustainable sales growth and an uplift in profitability across its whole store portfolio from its refresh programme In light of this RBNZ may spend in excess of the investment programme where management identifies attractive opportunities Transformation Spend ($m's) (Right Axis) Sales Revenue ($m's) (Left Axis)

19 Growth Opportunities To build RBD to a $1 billion company in sales and market capitalisation by growing both top and bottom line GROWTH PATH ORGANIC ASSET INVESTMENT Running the business better Strong Operations Compelling Marketing Build profitable network growth through asset build or acquisition TRANSFORMATION & STORE REINVESTMENT (Existing brand and geography) BUILD NEW STORES (Existing brand and geography) ACQUIRE INDIVIDUAL STORES (Existing geography and brand) ACQUIRE LARGE NUMBERS OF STORES (Existing brand and geography) BUILD/ACQUIRE NEW BRAND KFC New Zealand Taco Bell Hawaii Pizza Hut Hawaii INFILL GREENFIELD KFC New Zealand KFC Australia KFC Australia Taco Bell New Zealand KFC Hawaii Taco Bell Australia Pizza Hut New Zealand KFC New Zealand Taco Bell Hawaii KFC Australia

20 Strategic plans have identified expansion potential in Australia and the US, utilising strong expertise with franchise brands New Zealand Australia Hawaii US x x x x x x x x x Present identified growth opportunities no current expansion plans

Restaurant Brands NZ Limited

New horizons, new growth. Restaurant Brands NZ Limited 2018 Full Year Results Presentation Russel Creedy - Group CEO Grant Ellis Group CFO Hamish Stevens - Director Restaurant Brands New Zealand Limited