AmRest Holdings SE · GPW:EAT
AmRest — H1 2014 Earnings Presentation
25 slides from AmRest's earnings presentation, Aug 14, 2014
Slide 1: AmRest Holdings SE H1 2014 Presentation for Investors
AmRest Holdings SE H1 2014 Presentation for Investors August 14th, 2014
Slide 2: Teleconference Details
Teleconference Details • AmRest H1 2014 results are included in the H1 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 Q2 2014
Executive summary Q2 2014 • Another quarter of strong performance with a solid top line growth across all divisions (total sales +7.3%) • Significant improvement in profitability driven by core business (total EBITDA +50%) • Decrease in leverage to 2.67 • Breakthrough results in CEE (Burger King and
Slide 4: Our restaurants
Our restaurants Total: 759 USA: 6 China: 19 4
Slide 5: New restaurants openings
New restaurants openings • 12 stores opened in Q2 2014: 4 CEE, 2 Russia, 4 TAG (3 Spain & 1 France) and 2 blue frog • 38 stores opened YTD (till August 14th, 2014): 16 CEE, 8 Russia, 9 TAG (7 Spain, 1 US & 1 France), 4 blue frog, 1 Kabb • 19 openings since the last call: 5 CEE, 7 Russia, 5 TAG (4 Sp
Slide 6: Continued growth in the number of restaurants
Continued growth in the number of restaurants 17 14 36 35 64 11 37 61 BF & Kabb & 70 53 70 21% 35 68 BK 39 172 71 169 145 SBux 122 27 21 24 12 13 PH 8 70 77 4 79 77 [1] 383 400 TAG 348 64 310 223 239 202 166 KFC 127 2006 2007 2008 2009 2010 2011 2012 2013 14.08.2014 Total: 191 247 301 334 360 577 66
Slide 7: Financial highlights Q2 2014
Financial highlights Q2 2014 • Sales at PLN 713.6m (+7.3% vs LY) • CEE + 5.6% • Russia +6.2% (+24.3% in local currency) • Spain +7.0% • New Markets +30.3% • Adjusted EBITDA at PLN 86.8 (12.2%, +40.1% vs LY) • Net profit [1] at PLN 4.5m (0.6%) • Net debt at PLN 898m, leverage decreased to 2.67x [1] A
Slide 8: Q2 2014 Financials by segments
Q2 2014 Financials by segments 5.6% 417 064 394 977 SALES (PLN '000) 7.0% 6.2% 136 512 146 088 98 289 104 389 30.3% 35 373 46 105 CEE Russia Spain New markets Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Adjusted EBITDA 10.4% 13.6% 12.8% 14.4% 19.8% 20.6% - - margin 8
Slide 9: H1 2014 Financials by segments
H1 2014 Financials by segments 7.2% 808 789 SALES (PLN '000) 754 811 7.6% 6.7% 271 320 291 909 186 655 199 130 43.0% 87 936 61 481 CEE Russia Spain New markets H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 Adjusted EBITDA 10.1% 13.5% 12.2% 12.6% 19.3% 20.2% - - margin 9
Slide 10: Q2 2014 Financials – Key Figures
Q2 2014 Financials – Key Figures Thousand PLN Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 TTM [1] Sales 609 116 665 151 696 432 730 197 674 118 713 646 2 814 395 Sales growth [2] 11,8% 17,1% 15,5% 14,0% 10,7% 7,3% 11,8% Adjusted EBITDA [3] 58 808 61 970 87 611 93 039 77 360 86 840 344 850 Adjust
Slide 11: Outlook
Outlook • Second half of the year expected to be even stronger than H1 • Positive trends in LFL continue in most of the markets, with the exception of Poland where a temporary softness during the summer was observed • Further improvement in margins to come in H2 2014 • Russian division will maintain
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: AmRest strategy
AmRest strategy Scope Leverage our WJM culture, international capability, and superior brand portfolio to grow scalable, highly profitable restaurants globally. Our unique value proposition Through our WJM culture we will deliver delicious taste and exceptional service at affordable prices. 14
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: Spain / La Tagliatella snapshot
Spain / La Tagliatella snapshot +3 # of units +11 # of units +16 +20 +15 SPAIN 94 97 89 85 73 65 30 32 32 31 30 26 47 53 56 27 35 20 2009 2010 2011 2012 2013 14.08.2014 2009 2010 2011 2012 2013 14.08.2014 Equity Franchise # of units INTERNATIONAL • Selective and balanced international 4 expansion un
Slide 17: Guidance next 3 years
Guidance next 3 years Sales growth •Organic growth 10% CAGR •Potential M&A activity Profitability •15% EBITDA margin •20%+ ROIC on expansion Capex CAPEX • Average capex per store below PLN 3m • 80+ restaurants p.a., 80/20 investment strategy Leverage •Bank covenants limit at 3.5x EBITDA •Internal ta
Slide 18: EAT factsheet
EAT factsheet Ticker EAT (AmRest) Listing WSE Free float WP Holdings Free float 25.29% 25.29% VII B.V. 31.71% Unicredit, DI Investors, Wood&Co, Trigon, AVIVA OFE Analyst Raiffeisen Centrobank AG, 9.95% Coverage KBC Securities, IPOPEMA, ERSTE, DM PKO BP, DM ING OFE Banku BPS PZU PTE 14.20% 18.86% Num
Slide 19: Q2 2014 – Segment reporting
Q2 2014 – Segment reporting Q2 2014 Q2 2013 PLN '000 Share Margin Share Margin Sales 713 646 665 151 Poland 289 281 40.5% 272 502 41.0% Czech Republic 86 282 12.1% 85 616 12.9% Other CEE 41 501 5.8% 36 859 5.5% Total CEE 417 064 58.4% 394 977 59.4% Russia 104 389 14.6% 98 289 14.8% Spain 146 088 20.
Slide 20: H1 2014 – Segment reporting
H1 2014 – Segment reporting H1 2014 H1 2013 PLN '000 Share Margin Share Margin Sales 1 387 764 1 274 267 Poland 562 323 40.5% 520 445 40.8% Czech Republic 167 756 12.1% 164 554 12.9% Other CEE 78 710 5.7% 69 812 5.5% Total CEE 808 789 58.3% 754 811 59.2% Russia 199 130 14.3% 186 655 14.6% Spain 291
Slide 21: Q2 2014 – Consolidated P&L
Q2 2014 – Consolidated P&L [ PLN '000] Q2 2014 % of sales Q2 2013 % of sales Restaurant sales 670 727 619 680 Franchise and other sales 42 919 45 471 Total sales 713 646 665 151 Company operated restaurant expenses: Food and material (213 887) -30,0% (201 898) -30,4% Payroll and employee benefits (1
Slide 22: H1 2014 – Consolidated P&L
H1 2014 – Consolidated P&L [ PLN '000] H1 2014 % of sales H1 2013 % of sales Restaurant sales 1 300 372 1 187 618 Franchise and other sales 87 392 86 649 Total sales 1 387 764 1 274 267 Company operated restaurant expenses: Food and material (419 731) -30,2% (387 285) -30,4% Payroll and employee ben
Slide 23: Q2 2014 – Net profit and adjusted EBITDA reconciliation
Q2 2014 – Net profit and adjusted EBITDA reconciliation [ PLN '000] Q2 2014 % of sales Q2 2013 % of sales Q2 vs Q2 % of change Restaurant sales 670 727 94,0% 619 680 93,2% 51 047 8,2% Franchise and other sales 42 919 6,0% 45 471 6,8% -2 552 -5,6% Total sales 713 646 665 151 48 495 7,3% Net Profit fo
Slide 24: H1 2014 – Net profit and adjusted EBITDA reconciliation
H1 2014 – Net profit and adjusted EBITDA reconciliation [ PLN '000] H1 2014 % of sales H1 2013 % of sales H1 vs H1 % of change Restaurant sales 1 300 372 93,7% 1 187 618 93,2% 112 754 9,5% Franchise and other sales 87 392 6,3% 86 649 6,8% 743 0,9% Total sales 1 387 764 1 274 267 113 497 8,9% Net Pro
Slide 25: 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 2014-08-14 Poland 131 139 158 188 206 256 279 299 311 KFC 79 85 94 110 121 150 163 179 187 BK 4 9 17 19 27 28 27 28 SBX 3 9 21 32 35 38 PH 52 50 55 58 57 58 56 58 58 Czech 43 44