SAPPHIRENSE2 November 2023

Sapphire Foods India Limited has informed the Exchange about Investor Presentation

Sapphire Foods India Limited

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Sapphire Foods

Date

November 02, 2023

National Stock Exchange of India Limited To,

BSE Limited

Exchange Plaza, Block G, C/1, Bandra Kurla Complex, Bandra (E), Mumbai – 400051

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001

Symbol: SAPPHIRE

Scrip Code: 543397

Dear Sir/Madam, Subject: Press (Investor) Release and Earnings Presentation

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Press (Investor) Release and Earnings Presentation for the quarter and half year ended September 30, 2023.

The said documents are also being made available on https://www.sapphirefoods.in/investors-relation/financials.

the Company's website

Request you to kindly take the same on record.

Thanking you, For Sapphire Foods India Limited

Sachin Dudam Company Secretary and Compliance Officer

Encl.:

As above

Sapphire Foods India Limited CIN: L55204MH2009PLC197005

+91 022 67522300 info@sapphirefoods.in www.sapphirefoods.in 702, Prism Tower, A-Wing, Mindspace, Link

Road, Goregaon (W), Mumbai- 400062

0 SapphireFoods

Investor Release

Sapphire Foods Q2 FY24 Consol Revenue (₹6,414 Mn) grew by 14% and EBITDA (₹1,166 Mn) grew by 13% led by strong KFC performance

r------------------------,r------------------------,r------------------------,r------------------------,r------------------------1 16.1%

36 Stores

fMn 6,414

18.2%

3.3%

New Stores

Rest.· EBITDA%

Revenue

EBITDA%

PBT%

k-ra .,, i:i ~ ~ 814 T 14% T 10% T 13%

Total Stores ------------------------- •------------------------- •------------------------- •------------------------- •-------------------------

! -2YJJo

[·•·I

YoY"/4

YoY%

➢ Our Q2 FY24 Consol Restaurant Sales (₹ 6,414 Mn) grew by 14% and EBITDA (₹ 1,166 Mn) grew by 13% despite the continuing demand headwinds further exacerbated by an additional month of vegetarian days. While Raw Material inflation has remained stable QoQ, Gross Margin has seen significant improvement YoY.

➢ In Q2 FY24 we added 36 restaurants (23 KFC, 9 Pizza Hut in India and 4 Pizza

Hut in Sri Lanka) taking our total restaurant count to 814.

➢ Consol Restaurant EBITDA grew YoY in absolute terms by 10%, and margin was

16.1% ( 70 bps).

➢ Consol EBITDA (₹ 1,166 Mn, 18.2%) grew YoY by 13% ( 20 bps) | Consol Adj.

EBITDA (₹ 678 Mn, 10.6%) grew YoY by 9% ( 50 bps).

➢ Consol PBT (₹ 214 Mn, 3.3%) declined YoY by 21% ( 150bps). Consol PAT was

₹152 Mn (2.4%).

➢ In Q2 KFC delivered very strong Restaurant EBITDA of 19.2% ( 130 bps YoY). Overall Restaurant Sales grew YoY by 19% (flat SSSG), despite Q2 generally being a soft quarter for KFC given the higher incidence of vegetarian days (with an additional month of Shravan this year). The improved profitability was on account of gross margin recovery of 230 bps YoY and tighter controls over cost. Despite the tough demand conditions, our H1 Revenue growth of 20% and Restaurant EBITDA of 20.0% (highest ever margin for the 1st half) gives us the confidence to continue our pace of expansion on the brand.

* Restaurant EBITDA% is before Ind-AS 116 adjustments

0 Sapphirefoods

intensity

➢ Pizza Hut Overall Restaurant Sales declined by 6% and SSSG declined by 20% (Q2 FY23 SSSG grew by 23%) as a result of the tough macro conditions and in the Pizza category. Operating specifically high competitive deleverage arising out of negative SSSG impacted Restaurant EBITDA, which came at 7.6% ( 750 bps YoY). Despite the recent period being challenging, Pizza Hut continues to remain an important pillar of Sapphire Foods’ multi brand restaurant operator strategy. In the immediate term we will be cautious with our restaurant expansion plans while continuing to work on improving brand salience and product innovation. This along with our omni-channel execution focus gives us the confidence that the brand will emerge stronger in the medium term.

➢ Sri Lanka is showing green shoots of macro economic recovery – single digit inflation, forex stability, ease of availability of input raw materials. Our Overall Restaurant Sales grew by 8% in LKR ( 29% in ₹ terms) while SSSG was 1%. Restaurant EBITDA margins were at 15.3% ( 30 bps YoY), the highest in the last 5 quarters. Launch of the innovative ‘Melts’, an individual ‘inverted pizza’ snacking option has shown encouraging initial results. We remain confident of the growth opportunity in Sri Lanka, given the pre-eminence of the Pizza Hut brand in the QSR category.

About Sapphire Foods:

Sapphire Foods started operations in September 2015, by the acquisition of about 270 KFC and Pizza Hut Stores in India and Sri Lanka, by a group of leading Private Equity firms and is managed by a team of professionals.

Sapphire Foods is a leading YUM franchisee operator in the Indian subcontinent with presence in India, Sri Lanka and Maldives. We are the largest international QSR chain in Sri Lanka in terms of revenue and number of restaurants operated as of March 31, 2021. (Source: Technopak Report). As of Sep 30, 2023, we own and operate 383 KFC and 313 Pizza Hut restaurants in India, 109 Pizza Hut and 9 Taco Bell restaurants in Sri Lanka and 2 KFC and Pizza Hut each in Maldives.

We aspire to be India’s best restaurant operator by serving customers great food with great experience at great value. We operate our restaurants in high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new trade areas in existing and new cities as part of our brand and food category expansion.

Contact Details

Company

Investor Relations: Orient Capital

Name: Mr. Rahul Kapoor

Name: Mr. Bhavya Shah

Email: rahul.kapoor@sapphirefoods.in

Email: bhavya.shah@linkintime.co.in

CIN: L55204MH2009PLC197005

www.sapphirefoods.in

Tel : +91 8082748577

www.orientcap.com

Safe Harbor Statement

Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company’s operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest, and other costs. The Company does not undertake any obligation to update forward- looking statements to reflect events or circumstances after the date thereof.

Sapphire Foods India Limited SAPPHIRE FOODS INDIA LIMITED 3Q FY22 Earnings Presentation Q2 AND 6M FY24 BUSINESS PERFORMANCE February 2022 NOV 2023

SAFE HARBOR

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sapphire Foods India Limited (the “Company”), have been prepared

solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be

relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering

document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or

warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this

Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or

any omission from, this Presentation is expressly excluded

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and

collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,

uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the

economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy,

the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in Restaurant Sales, income or cash flows, the

Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could

differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information

contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the

Company is not responsible for such third party statements and projections.

TABLE OF CONTENTS

THE SAPPHIRE STORY

Q2 AND 6M FY24 FINANCIAL HIGHLIGHTS

BUSINESS PERFORMANCE

▪ ▪ ▪

KFC INDIA PIZZA HUT INDIA SRI LANKA

Page 04

Page 05-17

Page 18-26 Page 27-36 Page 37-45

THE SAPPHIRE STORY

Two global brands (KFC & Pizza Hut) with Scale & PAT profitability among Top 3 QSR operators

Capability and capital to rapidly drive organic and inorganic growth plans

Value based work culture, high on governance enabled by professional management, board and promoters

Execution Mindset Great Customer experience along with Superior Back-end operational excellence

Optimal capital allocation drives new restaurant expansion model - focus on smaller sized omni-channel restaurants

Q2 AND 6M FY24

CONSOLIDATED FINANCIAL HIGHLIGHTS

KEY HIGHLIGHTS Q2 FY24

➢ In Q2 FY24 we added 36 restaurants (23 KFC, 9 Pizza Hut in India and 4 Pizza Hut in Sri Lanka) taking our total restaurant count to 814.

➢ Consol Restaurant EBITDA grew YoY in absolute terms by 10%, and margin was 16.1% ( 70 bps).

➢ Consol EBITDA (₹ 1,166 Mn, 18.2%) grew YoY by 13% ( 20 bps) | Consol Adj. EBITDA (₹ 678 Mn, 10.6%) grew YoY by 9% ( 50 bps).

➢ Consol PBT (₹ 214 Mn, 3.3%) declined YoY by 21% ( 150bps). Consol PAT was ₹152 Mn (2.4%).

➢ Pizza Hut Overall Restaurant Sales declined by 6% and SSSG declined by 20% (Q2 FY23 SSSG grew by 23%) as a result of the tough macro conditions and specifically high competitive intensity in the Pizza category. Operating deleverage arising out of negative SSSG impacted Restaurant EBITDA, which came at 7.6% ( 750 bps YoY). Despite the recent period being challenging, Pizza Hut continues to remain an important pillar of Sapphire Foods’ multi brand restaurant operator strategy. In the immediate term we will be cautious with our restaurant expansion plans while continuing to work on improving brand salience and product innovation. This along with our omni-channel execution focus gives us the confidence that the brand will emerge stronger in the medium term.

SUMMARY CONSOLIDATED FINANCIALS Q2 & 6M FY24

• • • • • • • • •

I . I

■

I . I

■

·1

■

I .,.

■ --

Note: YoY Q2 PAT is not comparable because there was no tax expense for SFIL in Q2 FY23. In Q2 FY24 there is deferred tax expense without any cash outflow. # FY23 annual PAT includes Deferred Tax Credit (DTC) of ₹1253 mn towards carried forward losses and deductible temporary differences in SFIL. FY23 annual Adj. PAT before DTC is ₹1402 mn (6.2%). Adj. PAT for Q2 FY24 is ₹215 mn (3.4%). Adj. EBITDA and Adj. PAT is before Ind-AS 116 adjustments

ParticularsQ2 FY24Q2 FY236M FY246M FY23FY23Restaurant Sales ₹ mn 6,4145,60414%12,93911,04017%22,571Adj. EBITDA ₹ mn6786249%1,4501,3468%2,647%10.6%11.1%-50 bps11.2%12.2%-100 bps11.7%EBITDA ₹ mn1,1661,03213%2,3912,14611%4,343%18.2%18.4%-20 bps18.5%19.4%-90 bps19.2%PBT ₹ mn214269-21%550626-12%1,084%3.3%4.8%-150 bps4.3%5.7%-140 bps4.8%PAT ₹ mn #152269-43%401650-38%2,332%2.4%4.8%-240 bps3.1%5.9%-280 bps10.3%Restaurant Additions36427179164Change YoYChange YoYSAPPHIRE FOODS CURRENT PRESENCE

RESTAURANT COUNT

■

KFC India

■

Pizza Hut India

■

Sri Lanka + Maldives

RESTAURANT DISTRIBUTION ACROSS INDIAN SUBCONTINENT

301

249

108

Sep'22

658

341

286

116

Mar'23

743

381

311

122

Sep'23

814

RESTAURANT ADDITION

■

KFC India

■

Pizza Hut India

■

Sri Lanka + Maldives

14 8

Q2 FY23

Q3 FY23

12 0 Q4 FY23

16 2 Q1 FY24

9 4 Q2 FY24

KFC – 9 KFC – 6 PH – 7 PH – 7

KFC – 19 PH – 30

KFC – 14 PH – 10

KFC – 8 PH – 4

Pizza Hut, KFC Pizza Hut, Taco Bell

Pizza Hut only

KFC only

---

KFC – 88 PH – 82

KFC – 91 PH – 49

Maldives

KFC 2 PH 2

PH – 68 TB – 2

Sri Lanka

PH – 109 TB – 9

Sri Lanka + Maldives includes 4 restaurants in Maldives as on 30.9.23

FINANCIAL HIGHLIGHTS Q2 & 6M FY24

CONSOLIDATED RESTAURANT SALES (₹ MN)

22,571

▲14%

11,040

▲17%

12,939

5,604

6,414

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

INDIA RESTAURANT SALES (₹ MN)

19,744

4,902

▲12%

5,495

9,657

▲15%

11,143

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

FINANCIAL HIGHLIGHTS Q2 & 6M FY24

CONSOLIDATED GROSS MARGIN (%)

68.9%

▲220 bps

67.6%

67.4%

68.8%

▲140 bps

66.7%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

INDIA GROSS MARGIN (%)

68.2%

69.9%

▲170 bps

68.8%

69.8%

▲100 bps

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

FINANCIAL HIGHLIGHTS Q2 & 6M FY24

16.8%

940

Q2 FY23

17.1%

836

CONSOLIDATED RESTAURANT EBITDA (₹ MN / %)#

16.1%

▼70 bps

1,037

▲10%

21. 0%

19. 0%

17. 0%

15. 0%

13. 0%

11. 0%

9.0 %

7.0 %

17.4% 3,929

20. 0%

18. 0%

16. 0%

14. 0%

12. 0%

10. 0%

8.0 %

6.0 %

4.0 %

2.0 %

17.6%

1,944

Q2 FY24

5.0 %

; r - ' ' ' ' ' INDIA RESTAURANT EBITDA (₹ MN / %)#

FY23

0.0 %

6MFY23

6M FY24

16.4%

▼70 bps

902

▲8%

21. 0%

19. 0%

17. 0%

15. 0%

13. 0%

11. 0%

9.0 %

7.0 %

5.0 %

18.0%

1,736

17.8%

3,510

20. 0%

18. 0%

16. 0%

14. 0%

12. 0%

10. 0%

8.0 %

6.0 %

4.0 %

2.0 %

0.0 %

17.2%

▼80 bps

1,917

▲10%

21. 0%

16.7%

▼90 bps

19. 0%

2,164

▲11%

17. 0%

15. 0%

13. 0%

11. 0%

9.0 %

7.0 %

5.0 %

21. 0%

19. 0%

17. 0%

15. 0%

13. 0%

11. 0%

9.0 %

7.0 %

5.0 %

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

# Restaurant EBITDA is before Ind-AS 116 adjustments

FINANCIAL HIGHLIGHTS Q2 & 6M FY24

ADJ. EBITDA (₹ MN / %)#

11.1%

624

10.6%

▼50 bps

678

▲9%

18. 0%

16. 0%

14. 0%

12. 0%

10. 0%

8.0 %

6.0 %

4.0 %

2.0 %

0.0 %

Q2 FY23

Q2 FY24

EBITDA (₹ MN / %)

18.4%

1,032

18.2%

▼20 bps

1,166

Q2 FY23

Q2 FY24

▲13%

# Adj. EBITDA is before Ind-AS 116 adjustments

20. 0%

19. 0%

18. 0%

17. 0%

16. 0%

15. 0%

14. 0%

13. 0%

12. 0%

11. 0%

10. 0%

11.7%

2,647

FY23

19.2%

4,343

15. 0%

10. 0%

5.0 %

0.0 %

-5.0%

-10.0%

19. 5%

19. 0%

18. 5%

18. 0%

17. 5%

17. 0%

16. 5%

12.2%

1,346

11.2%

▼100 bps

1,450

▲8%

6M FY23

6M FY24

19.4%

2,146

18.5%

▼90 bps

2,391

▲11%

20. 0%

19. 0%

18. 0%

17. 0%

16. 0%

15. 0%

14. 0%

13. 0%

12. 0%

11. 0%

10. 0%

FY23

6M FY23

6M FY24

18. 0%

16. 0%

14. 0%

12. 0%

10. 0%

8.0 %

6.0 %

4.0 %

2.0 %

0.0 %

FINANCIAL HIGHLIGHTS Q2 & 6M FY24

Adj. PROFIT BEFORE TAX (₹ MN / %)#

6.3%

353

4.7%

▼ 160 bps

299

▼15%

6.2%

1,407

7.1%

780

5.5%

▼ 160 bps

718

▼8%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

Adj. PROFIT AFTER TAX (₹ MN / %)#

6.3%

352

4.7%

317

3.4%

▼ 290 bps

215

▼39%

11.8%

2,654

7.3%

804

4.6%

620

4.1%

▼ 320 bps

526

▼35%

Q2 FY23

AOP Q2 FY24

Q2 FY24

FY23

6M FY23

AOP 6M FY24

6M FY24

Note: YoY Q2 PAT is not comparable because there was no tax expense for SFIL in Q2 FY23. In Q2 FY24 there is deferred tax expense without any cash outflow. * FY23 annual PAT includes Deferred Tax Credit (DTC) of ₹1253 mn towards carried forward losses and deductible temporary differences in SFIL. FY23 annual Adj. PAT before DTC is ₹1402 mn (6.2%). # Adj. EBITDA and Adj. PAT is before Ind-AS 116 adjustments

FINANCIAL HIGHLIGHTS Q2 & 6M FY24

4.8%

269

PROFIT BEFORE TAX (₹ MN / %)

3.3%

▼ 150 bps

214

▼21%

4.8%

1,084

5.7%

626

4.3%

550

▼ 140 bps

▼12%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

PROFIT AFTER TAX (₹ MN / %)

4.8%

269

2.4%

▼ 240 bps

152

▼43%

10.3%

2,332

5.9%

650

3.1%

▼ 280 bps

401

▼38%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

FINANCIAL HIGHLIGHTS REVENUE & ADJ. EBITDA TREND

YoY Change %

-24%

69%

32%

REVENUE (₹ MN) & ADJ. EBITDA (%)

9.4% *

17,154

5.0%

13,284

3.8%

10,160

11.7%

11.1%

12.4%

11.8%

10.6%

10.1%

22,571

5,604

5,939

5,592

6,526

6,414

FY 20

FY 21

FY 22

FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

Q2 FY24

* Adj. EBITDA% after Normalizing additional incentives in FY22

6M FY23

YoY%

FY23

YoY %

6M FY24

Q2 FY24 Q2 FY23

CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs mn) Restaurant Sales Other operating income COGS Gross Profit Gross Margin% Employee Expenses Other Expenses EBITDA EBITDA Margin % Depreciation Finance Cost Other Income PBT PBT Margin% Tax Expense PAT PAT Margin %

6,413.87 12.53 2,009.86 4,416.54 68.9% 874.56 2,375.72 1,166.26 18.2% 767.67 244.65 60.07 214.01 3.3% 61.87 152.14 2.4%

5,604.12 23.54 1,890.22 3,737.44 66.7% 746.96 1,958.77 1,031.71 18.4% 628.17 205.66 71.54 269.42 4.8% 0.73 268.69 4.8%

14% 12,939.43 11,039.65 50.68 30.81 3,646.38 4,070.80 7,443.95 18% 8,899.44 67.4% 68.8% 1,430.61 1,724.58 3,867.32 4,784.30 2,146.02 13% 2,390.56 19.4% 18.5% 1,237.58 1,494.95 402.85 470.64 120.11 125.26 625.70 550.23 5.7% 4.3% -24.42 149.38 650.12 400.85 5.9% 3.1%

-43%

-21%

17% 22,570.64 85.10 7,406.76 20% 15,248.98 67.6% 2,929.03 7,976.73 11% 4,343.22 19.2% 2,641.74 868.86 251.62 -12% 1,084.24 4.8% -1,247.67 -38% 2,331.91 10.3%

Figures are regrouped/reclassified for the purpose of presentation

CONSOLIDATED BALANCE SHEET

Particulars (In Rs mn) Total Assets Fixed assets other than Goodwill Goodwill Right of use assets Inventories Trade receivables Cash and bank balances, Investment in MF's Other current and non - current asset Total Liabilities Lease Liabilities Borrowings Trade payables Other Non-current and Current liabilities Total Net Worth

Total Equity Equity share capital Other equity Non controlling interests

As on 30.9.23

As on 31.3.23

27,557.16 10,350.90 1,621.59 8,968.04 805.48 285.38 2,520.53 3,005.24 14,431.81 10,368.07 329.45 2,514.06 1,220.23 13,125.35

13,125.35 636.80 12,475.12 13.43

25,940.54 8,917.55 1,621.59 7,914.73 993.04 179.49 2,863.57 3,450.57 13,401.40 9,185.11 442.69 2,169.91 1,603.69 12,539.14

12,539.14 635.43 11,924.04 -20.33

Figures are regrouped/reclassified for the purpose of presentation

KFC India Business Performance

KFC BRAND PRIORITIES

Enhance Fried Chicken Category Relevance - “Let’s KFC” communication

campaign

Craveable Taste ‒ Innovation: Double Down

Burger

Value - Range of Snackers at ₹99/-

Frictionless Customer Experience - Digital Kiosks - KFC App - Partnering with aggregators

Operational Excellence - 7 Minutes express pickup

Improve Accessibility - Double the restaurant count

in 3-4 years

KFC BRAND PRIORITIES Fried Chicken Category Relevance: Building Occasions | Craveable taste

CRICKET OCCASION

BUCKETS

DOUBLE DOWN

KFC BRAND PRIORITIES Frictionless customer experience | Digital

Total App downloads – 29.6 MN+ Monthly Active Users – 1.5 Mn

Digital KIOSKs implemented at 115 Restaurants

KFC BRAND PRIORITIES Improving Accessibility – Doubling Restaurant Count in 3-4 years (base Dec’21 count)

KFC - GARHSHANKAR, PUNJAB

KFC - NIKOL, AHMEDABAD

KFC - THE MILLENIUM MALL, WAKAD PUNE

KFC - SHOOLAGIRI HIGHWAY, HOSUR

KFC INDIA Q2 & 6M FY24 - CHANNEL SALES CONTRIBUTION

■

Delivery

■

Takeaway

■

Dine IN

■

Delivery

■

Takeaway

■

Dine IN

36%

20%

44%

38%

19%

43%

36%

19%

35%

20%

45%

37%

19%

44%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

KFC INDIA Q2 & 6M FY24

SSSG%

15%

134

AVERAGE DAILY SALES (₹ ‘000)

125

15%

135

41%

139

131

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

RESTAURANT SALES (₹ MN)

Rest. Addition

3,491

Q2 FY23

301

Rest. Count

▲19%

4,165

Q2 FY24

381

14,529

FY23

341

7,028

6M FY23

301

▲20%

8,451

6M FY24

381

Average daily sales is for all restaurants including new additions during the period

KFC INDIA Q2 & 6M FY24

GROSS MARGIN %

65.6%

67.9%

▲230 bps

66.6%

66.4%

68.0%

▲160 bps

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

RESTAURANT EBITDA (%)#

17.9%

19.2%

▲130 bps

19.4%

19.1%

20.0%

▲90 bps

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

# Restaurant EBITDA figures are Pre-IND AS 116.

KFC INDIA RESTAURANT SALES & EBITDA TREND

YoY Change %

-24%

75%

40%

20.2%

20.8%

19.1%

19.2%

Rest. SALES (₹MN) & Rest. EBITDA %

18.7%

19.4%

17.9%

13.2%

14.0%

7,735

5,897

14,529

10,349

3,491

3,810

3,691

4,286

4,165

■

FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

Q2 FY24

0 00000

125

138

134

127

136

135

FY 20

FY 21

FY 22

ADS (₹ 000)#

130

106

130

* Restaurant EBITDA% after Normalizing additional incentives in FY22 #Average daily sales is for all restaurants including new additions during the period

Pizza Hut India – Business Performance

PIZZA HUT INDIA SPECIFIC PLANS NEXT 6-12 MONTHS

1--------------------------------------------------------------------------------------------------------·

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

Build Brand Salience

▪ Product Innovation

: Large Pizza (launched initially in 2 states) : Detailed innovation pipeline (6-12 months)

▪ Enhanced marketing spends

(over & above mandated agreement)

1!1!1-"!'llll!!'l'!'lll

---llllillilli■

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

Grow Dine-In Sales

Operations ▪ Speed of service & quality of customer experience:

investment in Dragon Tail tech (intelligent kitchen production planning tool) to enable serving of hot & fresh pizzas

Customer ▪ Reinforcement of Pizza Hut’s Dine-In experience

through curated deals via analytics and CRM

▪ Build Lunch Dine-In occasion: launch of attractive combos

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

L-------------------------------------------------------------------------------------------------------J

-------------------------------------------------------------------------------------------------------J

Our focus is to continually improve operational execution and customer experience

Strengthen Home Service

▪ Building late night occasions:

65% of our stores now deliver 2 a.m. and beyond

▪ Delivering ‘Hot & Fresh’ pizzas: Dragon Tail integration with Aggregator platforms to improve customer experience and ratings

--------------------------------------------------------------------------------------------------------· -· I Real Estate Strategy (existing/new restaurants)

▪ Cautious expansion of new restaurants ▪ 3-5% portfolio corrections:

closure of long non-performing restaurants

▪ 12-15% restaurants refurbishments: enhanced customer

experience

▪ Restaurant Capex Optimisation: Process reengineering on

back-end

L-------------------------------------------------------------------------------------------------------

As consumer demand improves, the execution as above will hold us in good stead

PIZZA HUT BRAND PRIORITIES Build Brand Salience: New commercials on TV/Digital

https://youtu.be/U1LOQ1wXhj4

PIZZA HUT BRAND PRIORITIES Product Innovation

O P/Wlllut: ..... ....._.· BITES, ................ • SAVINGS! INTRODUCING

LAAAAAAAARGE PIZZAS!

(Serves 4 Guests)

Large Pizzas launched in Gujarat & Kerala

PIZZA HUT BRAND PRIORITIES Digital | Operational Excellence

14:37 m -

Welcome back priya! Se l ect D e l ivery or Takea vvay to see l oca l dea l s

•·

De liv e ry Let u s knovv your l ocation

Takeaway F ind your nearest hut

Hot deals

Vievv deals

lflt,

H o m e

~ M e nu

@ A cco un t

I 'f.LJ

~ SUI

=----- - - - -

TABLE NO.

Total App Downloads – 7.9 Mn+ Monthly Active Users – 0.8 Mn

Self Ordering QR Code ~16% of Dine In Mix

PIZZA HUT BRAND PRIORITIES Improve Accessibility: Doubling Restaurant Count in 3-4 years (base Dec’21 count)

PH - THE MILLENIUM MALL, WAKAD PUNE

PH – STAR PLAZA, BORIVALI MUMBAI

PH – MARUTI NAGAR, BANGALORE

PH-ATRIA MALL, WORLI MUMBAI

PIZZA HUT INDIA Q2 & 6M FY24 - CHANNEL SALES CONTRIBUTION

■

Delivery

■

Takeaway

■

Dine IN

■

Delivery

■

Takeaway

■

Dine IN

50%

15%

35%

49%

16%

35%

50%

15%

35%

49%

16%

35%

16%

35%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

PIZZA HUT INDIA Q2 & 6M FY24

SSSG%

23%

AVERAGE DAILY SALES (₹ ‘000)

-20%

12%

34%

-15%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

RESTAURANT SALES (₹ MN)

Rest. Addition

1,410

Rest. Count

Q2 FY23

249

▼6%

1,330

Q2 FY24

311

5,214

FY23

286

2,629

▲2%

2,692

6M FY23

249

6M FY24

311

Average daily sales is for all restaurants including new additions during the period

PIZZA HUT INDIA Q2 & 6M FY24

GROSS MARGIN (%)

74.7%

76.1%

▲140 bps

74.7%

75.0%

75.6%

▲60 bps

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

RESTAURANT EBITDA# (%)

15.1%

13.3%

14.9%

7.6%

▼750 bps

8.3%

▼660 bps

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

# Restaurant EBITDA figures are Pre-IND AS 116.

PIZZA HUT INDIA RESTAURANT SALES & EBITDA TREND

YoY Change %

-34%

67%

41%

15.1%

14.1%

Rest. SALES (₹MN) & Rest. EBITDA %

13.3%

11.4%

8.6%

9.0%

7.2%

3,344

FY 20

ADS

(₹ 000)# 0

5.0%

2,218

FY 21

3,710

FY 22

5,214

1,410

1,364

1,221

7.6%

1,362

1,330

FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

Q2 FY24

0 00000

* Restaurant EBITDA% after Normalizing additional incentives in FY22 #Average daily sales is for all restaurants including new additions during the period

Sri Lanka Business Performance

T~CC> BELL

SRI LANKA BUSINESS PRODUCT INNOVATION

SRI LANKA BUSINESS BRANDING AND MARKETING

EX[LUSl!JE ONLINE OFFERS

• •

CYBER

SAVINGS:·,

VALID FROM JST TO JJST AUGUST 2023 ,~

exclusively with your Peop le's Bonk Mostercord® debit cord when you poy your b ill a t Pizzo Hut.

• Moxdiscountomount Ytot LKR 2500/-.

• Applicobi. for bills, obo,,,ti LKR 3500/·,

• Offer vohd throughout th• Wt!ek from

4'" Augvst to 3"' s.i>tember.

• Offer applicable to each cordholder once o week.

• Not opplkoble on online ordef'S.

.!.

.!. .!. BUY I CLASSIC

.!.

• 1 LARGE PAN PIZZA +

•

I CLASSIC MEDIUM

•

• •

• 1

PAN PIZZA FOR • I Rs. 4500/- •

•

.!..!..!..!.!.!. BUY I CLASSIC

• I • 1 MEDIUM PAN PIZZA + • • 1 I CLASSIC PERSONAL • • I

• 1

PAN PIZZA FOR • I Rs. 2400/- •

•

Valid till 151h September 2023

G) UI~-~~ =-=

SPEND RS. 600 AND GET

1 BAKED RICE & 1 COKE

1 CLASSIC PERSONAL PAN PIZZA & 1 COKE

VALID ONLY FOR DINE-IN

BUY ANY LARGE PAN PIZZA AND GET A CLASSIC LARGE PAN PIZZA FREE!

WITH DFCC CREDIT CARDS!

O ffer va lid on 17" September 20 23

V□FCC BI\NK --

SRI LANKA BUSINESS NEW STORES ADDITION

MATTAKULIYA

KILINOCHCHI

SRI LANKA BUSINESS Q2 & 6M FY24 - CHANNEL SALES CONTRIBUTION

■

Delivery

■

Takeaway

■

Dine IN

■

Delivery

■

Takeaway

■

Dine IN

34%

39%

27%

36%

34%

30%

38%

40%

35%

27%

35%

25%

37%

34%

29%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

SRI LANKA BUSINESS Q2 & 6M FY24

AVERAGE DAILY SALES (LKR ‘000)

SSSG%

37%

335

318

SSSG%

22%

322

44%

334

311

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

AVERAGE DAILY SALES (INR ‘000)

Q2 FY23

106

Rest. Count

Q2 FY24

118

FY23

114

Rest. Count

6M FY23

6M FY24

106

118

Average daily sales is for all restaurants including new additions during the period Note: LKR to INR conversion rate of 0.2556for Q2 FY24 and 0.225 for Q2 FY23 and 0.2589 for 6M FY24 and 0.219 for 6M FY23

SRI LANKA BUSINESS Q2 & 6M FY24

Rest. Addition

Rest. Count

3,121

Q2 FY23

106

669

RESTAURANT SALES (LKR MN)

Rest. Addition

12,166

▲8%

3,379

6,014

Q2 FY24

118

▲29%

864

Rest. Count

FY23

114

6M FY23

106

RESTAURANT SALES (INR MN)

2,716

1,319

▲8%

6,524

6M FY24

118

▲28%

1,689

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

SRI LANKA BUSINESS Q2 & 6M FY24

GROSS MARGIN %

62.2%

▲680 bps

61.4%

▲430 bps

55.4%

58.1%

57.1%

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

RESTAURANT EBITDA (%)#

15.0%

15.3%

▲30 bps

14.8%

15.2%

14.2%

▼100 bps

Q2 FY23

Q2 FY24

FY23

6M FY23

6M FY24

Absolute Rest. EBITDA increased by 9 % in LKR terms (increased by 31% in INR terms)

Absolute Rest. EBITDA increased by 1 % in LKR terms (increased by 19% in INR terms)

# Restaurant EBITDA figures are Pre-IND AS 116.

SRI LANKA BUSINESS RESTAURANT SALES & EBITDA TREND

Rest. SALES (LKR MN) & Rest. EBITDA %

YoY Change %

60%

48%

15.3%

22.0%

19.6%

16.2%

15.0%

14.6%

14.2%

14.8%

12,166

3,121

3,282

2,867

3,379

13.0%

3,145

5,144

5,145

8,229

FY 20

ADS (LKR ‘000)#

218

FY 21

236

FY 22

FY23

298

322

* Restaurant EBITDA% after Normalizing additional incentives in FY22 #Average daily sales is for all restaurants including new additions during the period

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

Q2 FY24

0 0000

303

318

335

281

336

THANK YOU

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