16
1 Investor Presentation June 2015

Investor Presentation [Company Update]

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Page 1: Investor Presentation [Company Update]

1

Inv

est

or

Pre

sen

tati

on

Jun

e 2

01

5

Page 2: Investor Presentation [Company Update]

Sta

tem

en

ts

ma

de

in

th

is

Pre

se

nta

tio

n

de

sc

rib

ing

th

e Company’s

o

bje

cti

ve

s,

pro

jec

tio

ns

, e

sti

ma

te,

ex

pe

cta

tio

ns

ma

y b

e “Forward

-lo

ok

ing

statements” w

ith

in t

he

mean

ing

of

ap

plicab

le s

ecu

riti

es

la

ws

& r

eg

ula

tio

ns

. A

ctu

al

resu

lts

co

uld

dif

fer

fro

m

tho

se e

xp

res

se

d o

r im

pli

ed

. Im

po

rta

nt

fac

tors

th

at

co

uld

m

ak

ea

d

iffe

ren

ce

to

th

e

Company’s

o

pe

rati

on

s

inc

lud

e

ec

on

om

ic

co

nd

itio

ns

a

ffe

cti

ng

d

em

an

d

su

pp

ly

an

d

pri

ce

co

nd

itio

ns

in

th

e d

om

es

tic

& o

ve

rse

as

ma

rke

ts i

n w

hic

h t

he

co

mp

an

y o

pe

rate

s,

ch

an

ge

s i

n t

he

go

ve

rnm

en

t re

gu

lati

on

s,

tax l

aw

s &

oth

er

sta

tute

s &

oth

er

inc

ide

nta

l

fac

tors

.

Dis

cla

ime

r

2

Page 3: Investor Presentation [Company Update]

Str

ate

gic

Overv

iew

En

han

ce D

inin

g E

xp

eri

en

ce

o

3.8

mill

ion (

appro

xim

ate

ly)

guests

serv

ed d

uring F

Y2015

Levera

ge B

ran

d E

qu

ity

o

Pan A

sia

Kitchen –

Refr

eshin

g

Fla

gship

Bra

nd

o B

uild

ing o

n P

ow

er

Bra

nds

Su

sta

ina

ble

Gro

wth

& S

ca

lab

ilit

y

Footp

rints

in N

ew

Geogra

phie

s

o F

ora

y into

Mid

dle

East M

ark

et th

rough

Join

t V

entu

re

o E

arl

y M

ove

r A

dva

nta

ge

o O

pp

ort

un

istically

set u

p R

esta

ura

nts

t

hro

ug

h F

OC

O /

CO

CO

mo

de

l

Re

sta

ura

nt

Ne

two

rk E

xp

an

sio

n

o S

usta

inable

Expansio

n P

lan

o E

xpansio

n to focus o

n M

ain

land

Chin

a A

sia

Kitchen

o S

trate

gic

openin

g o

f

of oth

er

bra

nds

Sig

ree G

lobal G

rill

&

Hoppip

ola

Skil

led

an

d

Mo

tiv

ate

d W

ork

forc

e

3

Page 4: Investor Presentation [Company Update]

Pilla

rs o

f G

row

th –

FY

2016

üB

ran

d L

ead

ers

hip

o

Ma

inla

nd

Ch

ina

bra

nd

re

fre

sh

- t

hro

ug

h “

Ma

inla

nd

Ch

ina

Asia

Kitch

en

oO

ffe

rs S

ou

th E

ast

Asia

Cu

isin

e w

ith

60

% C

hin

ese

an

d 4

0%

Pa

n A

sia

n F

lavo

urs

üS

usta

inab

le E

xp

an

sio

n P

lan

o

To

tal 1

15

Re

sta

ura

nts

acro

ss a

ll fo

rma

ts in

clu

din

g C

on

fectio

na

rie

s (

31

st

Marc

h

2015) –

ne

w a

dd

itio

ns to

drive

lo

ng

te

rm g

row

th a

s a

nd

wh

en

dis

cre

tio

na

ry

spends p

ick u

p

oP

lan

s to

op

en

10

-12

re

sta

ura

nts

in

FY

20

16

ü

Fo

ray i

nto

New

er

Geo

gra

ph

ies

o

Fo

raye

d in

to M

idd

le E

ast

Ma

rke

t th

rou

gh

JV

with

AL

MO

HA

NN

AD

I G

rou

p

oO

pe

ne

d r

esta

ura

nts

in

Ta

nza

nia

oO

pport

unis

tically

expand t

hro

ugh C

OC

O /

FO

CO

in o

ther

regio

ns

üC

on

tin

ued

Fo

cu

s o

n G

row

th

oM

ain

tain

Fo

otf

alls

an

d A

ve

rag

e C

ove

r tu

rn-a

rou

nd

oM

ultip

le in

itia

tive

s a

nd

on

go

ing

Re

sta

ura

nt

exp

an

sio

n/S

we

atin

g o

f a

sse

ts

oC

on

so

lida

tio

n a

nd

Tra

nsitio

n o

f e

xis

tin

g In

dia

n b

ran

ds u

nd

er

the

um

bre

lla o

f

po

we

r b

ran

d S

igre

e G

lob

al G

rill

oA

gg

ressiv

ely

la

un

ch

Ca

su

al D

inin

g fo

rma

ts -

Café

Me

zzu

na

an

d H

op

pip

ola

4

Page 5: Investor Presentation [Company Update]

Ou

r N

ew

Resta

ura

nts

5

ML

C A

sia

Kitch

en

-Sp

rin

g H

ote

l –

Chennai

Ho

pp

ipo

la–

Ma

thu

rud

as M

ill C

om

po

un

d-

Mu

mb

ai

Ma

inla

nd

Ch

ina–

Da

r e

s S

ala

am

Ta

nza

nia

S

igre

e G

lob

al G

rill–

Am

an

ora

-

Pu

ne

Page 6: Investor Presentation [Company Update]

6

Resta

ura

nt

Accre

tio

ns

ü3

Re

sta

ura

nts

op

en

ed

in

Q4

FY

15

at

Be

ng

ala

ru &

Ta

nza

nia

ü

To

tal 1

15

Re

sta

ura

nts

in

clu

din

g C

on

fectio

na

rie

s a

s o

n 3

1st M

arc

h 2

01

5 o

ut

of

wh

ich

97

are

Re

sta

ura

nts

acro

ss b

ran

ds a

nd

18

are

Co

nfe

ctio

na

ry s

tore

s

Resta

ura

nts

Op

en

ed

To

tal

Nu

mb

er

of

Re

sta

ura

nts

inc

lud

ing

Co

nfe

cti

on

ari

es

Th

e C

om

pa

ny

fo

llo

ws

a r

ou

nd

th

e c

loc

k p

rod

uc

tiv

ity

an

d n

et

rev

en

ue

op

tim

iza

tio

n r

ev

iew

po

lic

y a

nd

clo

se

s r

es

tau

ran

ts t

ha

t d

o n

ot

me

as

ure

up

to

th

e s

et

pa

ram

ete

rs On

31

.03.1

4O

n 3

1.0

3.1

5

10

6

11

5

Q1

FY

15

Q2

FY

15

Q3

FY

15

Q4

FY

15

2

4

5

3

Page 7: Investor Presentation [Company Update]

7

74

C

om

pa

ny

Ow

ned

a

nd

O

pe

rate

d

Res

tau

ran

ts,

23

Fra

nc

his

ee

***

an

d

18

C

on

fec

tio

na

ry

ou

tle

ts

sp

rea

d

ac

ross

23

cit

ies

in

In

dia

, 1

cit

y i

n B

an

gla

des

h a

nd

1

cit

y i

n T

an

za

nia

* T

his

in

clu

de

s fr

an

chis

ee

re

sta

ura

nts

loca

ted

in

Dh

ak

a, B

an

gla

de

sh a

nd

Da

r e

s Sa

lam

,

Ta

nza

nia

, **

Da

ta a

s o

n 3

1st

Ma

rch

, 2

01

5

**

* F

ran

chis

ee

Re

sta

ura

nt:

Fra

nch

ise

e O

wn

ed

, C

om

pa

ny o

pe

rate

d r

est

au

ran

ts

Re

gio

n W

ise

Pre

se

nc

e –

Q4 F

Y15

B

ran

d

To

tal **

C

itie

s

Ma

inla

nd

Ch

ina

an

d M

ain

lan

d

Ch

ina

Asia

Kitch

en

5

3

23

citie

s in

In

dia

an

d o

ne

in

Dh

aka

,

Ba

ng

lad

esh

an

d o

ne

in

Da

r e

s

Sa

lam

, T

an

za

nia

Oh

! C

alc

utt

a

9

Mu

mb

ai, K

olk

ata

, D

elh

i, B

en

ga

luru

,

Gu

rga

on

an

d H

yd

era

ba

d

Sig

ree

an

d S

igre

e G

lob

al G

rill

16

Pu

ne

, C

he

nn

ai, K

olk

ata

, M

um

ba

i,

Hyd

era

ba

d, B

en

ga

luru

, In

do

re a

nd

on

e in

Dh

aka

, B

an

gla

de

sh

an

d o

ne

in D

ar

es S

ala

m, T

an

za

nia

Ha

ka

2

K

olk

ata

Ma

ch

aa

n

3

Ko

lka

ta, G

uw

ah

ati a

nd

Ho

wra

h

Fla

me

& G

rill

3

Hyd

era

ba

d a

nd

Ko

lka

ta

Ca

fé M

ezzu

na

2

K

olk

ata

an

d P

un

e

Ho

pp

ipo

la

5

Be

ng

alu

ru, P

un

e a

nd

Mu

mb

ai

Kix

, S

ha

ck a

nd

Kib

be

h

3

Ko

lka

ta a

nd

Hyd

era

ba

d

Zo

od

les –

Asia

n S

tre

et W

ok

1

Mu

mb

ai

Su

b-t

ota

l 9

7

Sw

ee

t B

en

ga

l C

on

fectio

na

ry

18

M

um

ba

i

To

tal

115*

Page 8: Investor Presentation [Company Update]

Key In

itia

tives in

Q4 F

Y15

üM

ark

etin

g In

itia

tive

s

oP

rom

otio

n

of

Sic

hu

an

, H

unan

F

estival

an

d

Chin

ese

New

Year

at

Main

land

Chin

a

oL

au

nch

of

An

glo

ln

dia

Fe

stiva

l a

t O

h!

Ca

lcu

tta

oL

au

nch

of

Ara

bia

n F

oo

d F

estiva

l a

nd

Le

ba

ne

se

Fe

stiva

l a

t S

igre

e G

lob

al G

rill

oV

ale

ntin

es D

ay O

ffe

rs a

t H

op

pip

ola

oT

ie-u

p w

ith

HS

BC

Ba

nk

üD

rive

Lo

ya

lty, D

elig

ht C

usto

me

rs

oIn

cre

ase

cu

sto

me

r b

ase

u

nd

er

Lo

ya

lty

pro

gra

mm

e -

Sp

ecia

lity P

refe

rre

d C

ard

s

üO

pe

ratio

na

l In

itia

tive

s

oC

on

tin

ue

d

focu

s

on

C

ost

Co

ntr

ol

an

d

Op

tim

iza

tio

n m

ea

su

res

•O

ptim

iza

tio

n o

f K

itch

en

Are

a

•Im

port

Su

bstitu

tio

n

8

Page 9: Investor Presentation [Company Update]

Div

ers

e M

en

u O

fferi

ng

s

9

Page 10: Investor Presentation [Company Update]

FIN

AN

CIA

L A

NA

LY

SIS

Q4 F

Y15 R

esu

lts 1

0

Page 11: Investor Presentation [Company Update]

11

F

inan

cia

l O

verv

iew

Sr.

No

P

art

icu

lars

Fo

r th

e Q

ua

rte

r e

nd

ed

on

Fin

an

cia

l Ye

ar

31

.03

.20

15

3

1.1

2.2

01

4

31

.03

.20

14

2

01

5

20

14

1

Inco

me

fro

m o

pe

rati

on

s

(a

) N

et

Sa

les

72

1.1

7

91

.1

63

2.9

2

,90

3.9

2

45

8.5

(b

) O

the

r o

pe

rati

ng

inco

me

1

5.0

1

3.3

4

2.1

8

9.9

1

80

.0

To

tal

Inco

me

fro

m o

pe

rati

on

s 7

36

.1

80

4.4

6

75

.0

2,9

93

.8

2,6

38

.5

E

xp

en

ses

(a

) C

ost

of

ma

teri

als

co

nsu

me

d

22

4.4

2

51

.9

20

0.8

9

40

.8

75

9.1

(b

) E

mp

loye

es

be

ne

fits

exp

en

se

17

7.5

1

95

.8

15

3.0

7

19

.6

61

2.5

(c

) D

ep

reci

ati

on

an

d a

mo

rtis

ati

on

exp

en

se

71

.1

64

.8

54

.8

25

2.2

1

90

.2

(d

) O

the

r e

xpe

nse

s 1

60

.0

15

4.7

1

48

.3

60

6.3

5

36

.3

(e

) Le

ase

Re

nt

98

.5

11

7.1

1

05

.9

43

5.9

3

91

.1

2

Tota

l E

xp

en

ses

73

1.5

7

84

.3

66

2.8

2

,95

4.8

2

,48

9.2

3

Pro

fit

fro

m o

pe

rati

on

s b

efo

re o

the

r in

com

e a

nd

fin

an

ce c

ost

s (1

-2)

4.6

2

0.1

1

2.2

3

9.0

1

49

.3

4

Oth

er

Inco

me

1

8.1

1

9.6

2

6.3

7

7.0

9

8.4

5

Pro

fit

fro

m o

rdin

ary

act

ivit

ies

be

fore

fin

an

ce c

ost

s

(3+

4)

22

.7

39

.7

38

.5

11

6.0

2

47

.7

6

Fin

an

ce c

ost

s 0

.2

0.1

0

.2

0.8

0

.7

7

Pro

fit

fro

m o

rdin

ary

act

ivit

ies

be

fore

ta

x

(5-6

) 2

2.5

3

9.6

3

8.3

1

15

.2

24

7.0

8

Tax

exp

en

se

3.1

7

.4

4.0

2

0.7

5

8.0

9

Ne

t P

rofi

t a

fte

r ta

x (

7-8

) 1

9.4

3

2.2

3

4.3

9

4.5

1

89

.0

`

In M

illi

on

Page 12: Investor Presentation [Company Update]

To

tal In

co

me f

rom

Op

era

tio

ns

12

Incr

ea

se i

n T

ota

l In

com

e f

rom

Op

era

tio

ns

du

e t

o :

Tota

l R

est

au

ran

t N

etw

ork

at

11

5

incl

ud

ing

Co

nfe

ctio

na

rie

s a

s o

n 3

1st

Ma

rch

, 2

01

5

üR

eve

nu

es

fro

m v

ari

ou

s e

xpa

nsi

on

init

iati

ve

s

üB

ran

d R

efr

esh

fo

r F

lag

ship

Bra

nd

lau

nch

of

Ma

inla

nd

Ch

ina

Asi

a K

itch

en

67

5.0

73

6.1

600

650

700

750

Q4 F

Y1

4Q

4 F

Y1

5

` in Million

9.1

% y

-o-y

Page 13: Investor Presentation [Company Update]

EB

IDT

A &

EB

IDT

A M

arg

ins (

%)

13

Re

du

ctio

n i

n E

BID

TA M

arg

ins

pri

ma

rily

du

e t

o :

üP

ost

po

ne

me

nt

of

Ra

w M

ate

ria

ls c

ost

de

clin

e

ü U

pfr

on

t lo

ad

ing

of

ne

w R

est

au

ran

t

Lau

nch

Co

sts

üR

ed

uct

ion

in

dis

cre

tio

na

ry s

pe

nd

s 9

3.3

93

.8

13

.8%

12

.7%

12%

13%

14%

93

94

Q4 F

Y1

4Q

4 F

Y1

5

` in Million

While

, E

BID

TA

incre

ased f

rom

Rs.

93.3

mill

ion in Q

4 F

Y14 t

o R

s.

93.8

mill

ion in Q

4 F

Y15,

the E

BID

TA

Marg

in h

as d

eclin

ed f

rom

13.8

%

in Q

4 F

Y1

4 t

o 1

2.7

% in Q

4 F

Y15

Page 14: Investor Presentation [Company Update]

PA

T a

nd

PA

T M

arg

ins (

%)

14

Pro

fit

Aft

er

Tax

de

clin

ed

pri

ma

rily

du

e t

o :

üD

efe

rre

d i

mp

act

of

re

du

cin

g i

np

ut

cost

s

üD

efe

rra

l o

f M

en

u P

rice

in

cre

ase

üSta

tuto

ry i

ncr

ea

se i

n D

ep

reci

ati

on

Co

sts

on

acc

ou

nt

of

cha

ng

es

in C

om

pa

nie

s A

ct,

20

13

34

.3

19

.4

5.1

%

2.6

%

0%

1%

2%

3%

4%

5%

6%

0

10

20

30

40

Q4 F

Y1

4Q

4 F

Y1

5

` in Million

48

.4%

y-o

-y

Page 15: Investor Presentation [Company Update]

Th

e R

oad

Ah

ead

15

Re

ve

nu

es

üP

lan

nin

g t

o o

pe

n 1

0-1

2

rest

au

ran

ts i

n F

Y1

6

üFo

cus

on

su

sta

ina

ble

gro

wth

by s

we

ati

ng

of

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Page 16: Investor Presentation [Company Update]

16

IR C

on

tact

Fo

r A

dd

itio

na

l In

form

ati

on

:

Mr.

Ra

jesh

Ku

ma

r M

oh

ta

Exe

cuti

ve

Dir

ect

or –

Fin

an

ce a

nd

CF

O

Co

nta

ct N

o :

02

2-3

34

16

70

0

Em

ail

ID

: r

km

@sp

eci

ali

ty.c

o.i

n