AmRest Holdings SE · GPW:EAT
AmRest — Q3 2014 Earnings Presentation
24 slides from AmRest's earnings presentation, Nov 7, 2014
Slide 1: AmRest Holdings SE Q3 2014 Presentation for Investors
AmRest Holdings SE Q3 2014 Presentation for Investors November 7th, 2014
Slide 2: Teleconference details
Teleconference details • AmRest Q3 2014 results are included in the Q3 2014 Annual Financial Report which is available to download from Investor Relations section at: http://www.amrest.eu • The recording of this Teleconference will be available at our website within 24 hours AmRest participants: Hen
Slide 3: Executive summary Q3 2014
Executive summary Q3 2014 • Third consecutive quarter of strong performance • Solid top line growth across all divisions • Core business driven significant improvement in profitability Total EBITDA above PLN 100m in Q3 • Record margins in CEE (EBITDA at 14,4%) • Stable situation in Russia and mainta
Slide 4: Our restaurants
Our restaurants Total: 781 USA: 5 China: 22 4
Slide 5: New restaurants openings
New restaurants openings • 21 stores opened in Q3 2014: 6 CEE, 9 Russia, 2 TAG & 1 KFC in Spain and 3 blue frog in China • 63 stores opened YTD (till November 7th, 2014): 24 CEE, 18 Russia, 12 TAG (10 Spain, 1 US & 1 France), 2 KFC in Spain, 6 blue frog, 1 Kabb • 26 openings since the last call (Aug
Slide 6: Continued growth in the number of restaurants
Continued growth in the number of restaurants 20 14 36 BF & Kabb & 35 65 11 61 37 21% 53 70 70 BK 35 39 68 171 71 169 SBux 145 122 21 27 PH 12 24 13 8 70 77 4 79 [1] 77 419 TAG 383 64 348 310 223 239 202 KFC 166 127 2006 2007 2008 2009 2010 2011 2012 2013 07.11.2014 Total: 191 247 301 334 360 577 66
Slide 7: Financial highlights Q3 2014
Financial highlights Q3 2014 • Sales at PLN 765.3m (+9.9% vs LY) • CEE + 8.0% (+10.5% in local currencies) • Russia +10.3% (+24% in local currency) • Spain +8.3% (+10.1% in local currency) • New Markets +37.5 % (+40.7% in local currencies) • Adjusted EBITDA at PLN 108.1m (+23.3% vs LY) • Record adju
Slide 8: Q3 2014 Financials by segments
Q3 2014 Financials by segments 8.0% 448 185 SALES (PLN '000) 415 081 8.3% 10.3% 147 390 159 631 37.5% 98 379 108 539 48 940 35 582 CEE Russia Spain New markets Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Adjusted EBITDA 13.2% 14.9% 12.3% 12.5% 22.8% 21.9% - - margin 8
Slide 9: Q3 2014 YTD Financials by segments
Q3 2014 YTD Financials by segments 7.4% 1 256 974 SALES (PLN '000) 1 169 892 7.8% 7.9% 418 710 451 540 285 034 307 669 41.0% 136 876 97 063 CEE Russia Spain New markets 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 Adjusted EBITDA 11.2% 14.0% 12.2% 12.5% 20.5% 20.8% - - margin 9
Slide 10: Financials – Key Figures
Q3 2014 Financials – Key Figures Thousand PLN Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 TTM [1] Sales 665 151 696 432 730 197 674 118 713 646 765 295 2 883 256 Sales growth [2] 17.1% 15.5% 14.0% 10.7% 7.3% 9.9% 10.4% Adjusted EBITDA [3] 61 970 87 611 93 039 77 360 86 840 108 059 365 298 Adjust
Slide 11: Outlook
Outlook • Optimistic expectations regarding Q4 2014 • Positive LFL trends and margin improvement continue in most of the markets • Current pace of development maintained in Russia • Increased investments in new restaurants in Spain • Estimation of 2014 EBITDA loss in New Markets kept at PLN 40-45m.
Slide 12: IR contact
IR contact Michał Serwatka [email protected] tel. +48 71 3861 246 mobile: +48 519 191 246 Dorota Surowiec [email protected] tel. +48 71 3861 235 mobile: +48 519 191 235 12
Slide 13: Backup slides
Backup slides
Slide 14: Our unique proposition
AmRest strategy Leverage our WJM culture, international capability and superior brand portfolio to grow scalable, highly profitable restaurants globally BRAND Superior brand portfolio PEOPLE WJM culture Scalable and highly profitable restaurants (20% ROIC) SCALE International capability Our unique p
Slide 15: Brand portfolio
Brand portfolio #1 in Chicken 18,500 restaurants in over 115 countries #1 and the fastest growing QSR brand in the Emerging Markets #1 CDR in the World Over 14,500 restaurants in 90 countries #1 Coffee in the World 20 000 stores in over 60 countries #2 in #1 QSR category in the World Over 13,500 res
Slide 16: 3 years guidance
3 years guidance Sales growth •Double-digit organic growth •Potential M&A activity EBITDA • Strong EBITDA growth driven by sales and margin improvement 20%+ ROIC on expansion Capex • Improved ROIC on existing investments through margin improvement, prudent capital allocation (80/20) and lower build
Slide 17: EAT factsheet
EAT factsheet Ticker EAT (AmRest) Listing WSE Free float WP Holdings Free float 25.35% 25.35% VII B.V. 31.71% Unicredit, DI Investors, Wood&Co, Trigon, Raiffeisen AVIVA OFE Analyst Centrobank AG, KBC 9.95% Coverage Securities, IPOPEMA, ERSTE, DM PKO BP, DM Banku BPS ING OFE PZU PTE 14.14% 18.86% Num
Slide 18: Q3 2014 – Segment reporting
Q3 2014 – Segment reporting Q3 2014 Q3 2013 PLN '000 Share Margin Share Margin Sales 765 295 696 432 Poland 312 701 40.9% 285 160 40.9% Czec h Republic 91 174 11.9% 90 823 13.0% Other CEE 44 310 5.8% 39 098 5.6% Total CEE 448 185 58.6% 415 081 59.6% Russia 108 539 14.2% 98 379 14.1% Spain 159 631 20
Slide 19: Q3 2014 YTD – Segment reporting
Q3 2014 YTD – Segment reporting 9M 2014 9M 2013 PLN '000 Share Margin Share Margin Sales 2 153 059 1 970 699 Poland 875 024 40.6% 805 605 40.9% Czec h Republic 258 930 12.0% 255 377 13.0% Other CEE 123 020 5.7% 108 910 5.5% Total CEE 1 256 974 58.4% 1 169 892 59.4% Russia 307 669 14.3% 285 034 14.5%
Slide 20: Q3 2014 – Consolidated P&L
Q3 2014 – Consolidated P&L [ PLN '000] Q3 2014 % of sales Q3 2013 % of sales Restaurant sales 719 403 650 513 Franchise and other sales 45 892 45 919 Total sales 765 295 696 432 Company operated restaurant expenses: Food and material -231 043 -30.2% -212 664 -30.5% Payroll and employee benefits -155
Slide 21: Q3 2014 YTD – Consolidated P&L
Q3 2014 YTD – Consolidated P&L [ PLN '000] Q3 2014 YTD % of sales Q3 2013 YTD % of sales Restaurant sales 2 019 775 1 838 131 Franchise and other sales 133 284 132 568 Total sales 2 153 059 1 970 699 Company operated restaurant expenses: Food and material -650 774 -30.2% -599 949 -30.4% Payroll and
Slide 22: Q3 2014 – Net profit and adjusted EBITDA reconciliation
Q3 2014 – Net profit and adjusted EBITDA reconciliation [ PLN '000] Q3 2014 % of sales Q3 2013 % of sales Q3 vs Q3 % of change Restaurant sales 719 403 94.0% 650 513 93.4% 68 890 10.6% Franchise and other sales 45 892 6.0% 45 919 6.6% -27 -0.1% Total sales 765 295 696 432 68 863 9.9% Net Profit for
Slide 23: Q3 2014 YTD – Net profit and adjusted EBITDA reconciliation
Q3 2014 YTD – Net profit and adjusted EBITDA reconciliation Q3.2014 Q3.2013 Q3 vs Q3 [ PLN '000] YTD % of sales YTD % of sales YTD % of change Restaurant sales 2 019 775 93.8% 1 838 131 93.3% 181 644 9.9% Franchise and other sales 133 284 6.2% 132 568 6.7% 716 0.5% Total sales 2 153 059 1 970 699 18
Slide 24: AmRest portfolio
AmRest portfolio Countries Brands 2006-12-31 2007-12-31 2008-12-31 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-12-31 2014-06-30 2014-09-30 2014-11-07 Poland 131 139 158 188 206 256 279 299 308 312 314 KFC 79 85 94 110 121 150 163 179 184 188 190 BK 4 9 17 19 27 28 27 28 28 28 SBX 3 9 21 32 35 3