Collins Foods : Presentation re HY22 Results

onlyuse

personalAuthorised for release by the Board

ACN 151 420781

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($m)	POST AASB 16	POST AASB 16			PRE AASB 16
only	492.3	534.2	8.5%		534.2
use
83.8	94.9	13.1%		70.9
47.1	54.2	15.1%		49.0
21.9	28.9	31.6%		31.9
	170.7	197.6	$26.9		197.6
	1.35	1.41	0.06 	1.41
	78.2	72.3	$(5.9)		47.4
	18.8	24.7	31.6%		27.3
	10.5	12.0	14.3%		12.0
# Refer to Appendix slide 27for a reconciliation between statutory and underlying results, in pre and post AASB 16
* Net Leverage Ratio is shown on a pre AASB 16 basis consistent with measurement criteria in syndicated facility agreement
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• Revenue up 8.5% to $534.2m with growth across all segments, including strong recovery in KFC Europe
• Statutory NPAT continuing of $26.4m (HY21: $20.9m)
• Underlying EBITDA continuing (post AASB 16) up 13.1% to $94.9m due to margin improvement in Europe and leasing standard impact
• • equivalent pre AASB 16 underlying EBITDA up 8.7%
• Underlying NPAT continuing (post AASB 16) up 31.6% to $28.9m
• • equivalent pre AASB16 result up 11.0% on prior half year
• Underlying EPS continuing (post AASB16) up 31.6% to 24.7 cps
• • equivalent pre AASB 16 result up 10.7% to 27.3 cps
• Net debt of $197.6m, up $20.2m since prior year end, mainly due to acquisitions
• Fully franked interim dividend of 12.0 cents per ordinary share declared (HY21: 10.5 cps)

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Same store sales (SSS) growth modest but positive in first half, despite cycling record growth in the prior comparable period

KFC brand strength reflected in QSR market share gains predicated on bold advertising and consistent affordability

Investments in digital & delivery support longer-term growth prospects and runway for consistent new unit development

• Strong KFC Europe rebound, supported by market expansion in the Netherlands and easing of COVID-19 restrictions
• KFC Netherlands Corporate Franchise Agreement (CFA) to unlock European development and opportunity to scale
• Collins KFC Netherlands franchisee share to increase to 55% with acquisition of 9 additional restaurants

• Growing brand awareness and trial of Taco Bell Australia within fastest growing QSR segment
• New marketing strategy to enhance media effectiveness and strengthen brand
• Accelerating development pipeline enables reaching scale in 3 to 4 years

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only	POST AASB 16	POST AASB 16					PRE AASB 16
($m)
use	242	254	12		254
415.5	433.7	4.4%		433.7
12.4 %	0.1%					0.1%
91.1	94.3	3.6%		77.2
21.9%	21.7%	(0.2)% 	17.8%
personalr	65.4	65.9	0.8%		62.6
15.7%	15.2%	(0.5)%		14.4%
# Refer to Appendix slide 28for a reconciliation between statutory and underlying results, in pre and post AASB 16

• Revenue up 4.4% to $433.7m
• SSS growth of 0.1%, cycling +12.4% prior year (2-year CAGR of +6.1%)
• 12 new restaurants opened since HY21
• Underlying EBITDA margin (post AASB 16) of 21.7%, slightly under HY21 margin
  ‒ equivalent underlying EBITDA margin (pre AASB 16) of 17.8%, (HY21: 18.6%), reflects operating cost inflation above SSS growth for the period; yet remains up on HY20 margin
• Underlying EBITDA (post AASB 16) up 3.6% to $94.3m