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PRESS RELEASE

ROSINTER RESTAURANTS HOLDING PJSC SHOWS 50% EBITDA GROWTH AND A POSITIVE

NET INCOME AS OF THE 1ST HALF OF 2021

Moscow, 27 August 2021: Rosinter Restaurants Holding PJSC (Rosinter, Rosinter Restaurants, the Company),

one of the largest operators in the casual dining segment in Russia (Moscow Exchange MICEX-RTS: stock ticker ROST) announces its operating and financial performance for the 1st half of 2021 in accordance with the International Financial Reporting Standards. These statements have been confirmed by the Company's auditor and prepared in accordance with IFRS 16 "Leases".

KEY FINANCIAL AND OPERATING RESULTS

  • In the 1st half of 2021, Rosinter Restaurants Holding PJSC increased its revenue[1] to RUB 2,917 million, or by 67% against the 1st half of 2020.
  • The consolidated gross operating (systemic) revenue[4] was RUB 4,719 million, which is by RUB 1,933 million (or 69%) more than in the similar period of the previous year.
  • EBITDA before impairment and write-offs in the 1st half of 2021 went up by 50% to RUB 1,404 million (adjusted to IFRS 16). Adjusted EBITDA (before application of IFRS 16) before impairment and write-offs was RUB
    1. million (or 10% of the Company's revenue) in the 1st half of 2021 as compared to the negative RUB
    1. million in the 1st half of 2020.
  • In the 1st half of 2021, the Company's net profit amounted to RUB 10 million against the loss of RUB 1,031 million during the similar period in 2020. Without the effect of IFRS 16, the net loss was RUB 35 million against RUB 487 million in the 1st half of 2020.
  • Amid a significant food price inflation (according to various sources of data, it was at around 40% in the last

year), Rosinter managed to decrease the share of expenses for food and beverages in the revenue by

1.3

  • %. Among other measures this helped the Company to reach the goals of strategy implementation for keeping prices in restaurants down in order to maintain the guest traffic and loyalty rates amid the current drop in purchasing power.

  • The 1st half of 2021 showed a 2.8% decrease in the share of lease expenses in the revenue as compared to the similar period in the previous year (before application of IFRS 16) as a result of used measures for optimization of this type of expenses.

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The Chairman of the Board of Rosinter Restaurants Holding PJSC Rostislav Ordovsky-Tanaevsky comments:

These results in the most difficult times of the restaurant industry confirm the right decisions taken by ROSINTER Team and by President Margarita Kosteeva, giving us a hope for a good future.

Margarita Kosteyeva, President of Rosinter Restaurants Holding PJSC, says:

Thanks to the gradual recovery of the public catering market after the impact of COVID-19, the implementation of an anti-crisis management strategy and a radical upgrade of the restaurant concepts, Rosinter has demonstrated improved performance in the key business areas. In the first half of 2021, Rosinter's revenues grew by 67% to RUB 2,917 million against the figure for 2020. The systemic revenue grew by 69% to come to RUB 4,719 million.

In our opinion, a key success driver is the significant increase in EBITDA that grew by 2.6 times against the similar period in the pre-pandemic year of 2019 and almost by 50% against the similar period of 2020 and came to RUB 1,4 billion*. EBITDA grew amid a decrease in the revenue by almost 29% against the figure for 2019 (from RUB 3,763 in the 1st half of 2019 to RUB 2,917 million for the similar period of 2021). This proves that the current strategy is effective, steady and flexible in the continuing difficult situation and negative macroeconomic factors.

At the end of the 1st half of 2021, the net profit of Rosinter Restaurants amounted to RUB 10 million against the loss of RUB 1,031 million compared with the similar period of 2020.

In 2020-2021, the Company has worked hard to optimize costs and adapt the restaurants to the new conditions during the recovery after the crisis. COVID19 has had its economic effect on the consumer behaviour and the landscape of the restaurant business. Amid the overall reduction in traffic, restaurants in the centre of big cities and locations with business activity see very strong downtrends in transactions. Also, restaurants in transportation hubs have been seriously affected due to reductions in the flows of tourists from abroad and passenger air travel restrictions (some restaurants located in the international airport terminals remain closed because there is no passenger traffic).

Much effort has been focused on developing the HR potential of Rosinter. We have significantly strengthened the creative unit to take a quantum leap in upgrading the restaurant concepts and techniques for their promotion. Thanks to team rotations by way of the internal promotion of team members who can boast ample experience and are highly loyal towards the Company, we will be able to make the required transformational changes and consistently implement the development strategy.

As at the end of the 1st half of 2021, Rosinter retained over 90% of the restaurant portfolio as compared with the pre-Covid-19 period (226 restaurants, of which 134 are corporate ones and 92 are franchise restaurants). We believe that until the economic situation goes backs to normal and the traffic is restored we should focus on the selective promotion of corporate restaurants in commercially viable locations in the cities within our footprint and on the development of business through franchising.

Geographic diversification of the business (corporate and franchised restaurants all over Russia, spreading of the business in cities and at transport hubs), as well as a well-balanced portfolio of versatile restaurant brands, made it possible to create a stable business structure. At the same time, recovery of the passenger traffic in major Russian international airports accommodating a considerable part of Rosinter business outlets, as well as opening of restaurants, built but not put into service due to the pandemic, in Sheremetyevo, Domodedovo and a number of franchised facilities create a good potential for the further improvement of the financial performance and consolidation of the Rosinter 's position in the casual dining segment.

*all financial indicators in the citation are given being adjusted to IFRS 16 "Leases".

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FINANCIAL AND OPERATING RESULTS FOR THE 1ST HALF OF 2021

The table below contains comparative results under IFRS 16 "Leases" and IAS 17 "Leases".

(RUB) millions

6M 2021

6M 2020

% Change

6M 2021

6M 2020

% Change

IFRS 16

IFRS 16

Y-o-Y

IAS 17

IAS 17

Y-o-Y

Net revenue

2,917

100%

1,748

100.0 %

66.9 %

2,917

100%

1,748

100.0 %

66.9 %

Incl. Revenue from restaurants

2,818

96.6 %

1,677

96.0 %

68.0 %

2,818

96.6 %

1,677

96.0 %

68.0 %

Incl. Revenue from franchising

72

2.5 %

44

2.5 %

64.8 %

72

2.5 %

44

2.5 %

64.8 %

Cost of sales

2,713

93.0 %

2,057

117.7 %

31.9 %

2,488

85.3 %

1,737

99.4 %

43.3 %

Incl. Food and beverages

572

19.6 %

320

18.3 %

78.5 %

572

19.6 %

320

18.3 %

78.5 %

Incl. Payroll and related taxes

563

19.3 %

451

25.8 %

24.9 %

563

19.3 %

451

25.8 %

24.9 %

Incl. Rent

269

9.2 %

66

3.8 %

308.7 %

808

27.7 %

533

30.5 %

51.6 %

Gross profit/(loss)

203

7.0 %

(309)

(17.7)%

(165.8)%

428

14.7 %

11

0.6 %

3879.7 %

SG&A Expenses

480

16.5 %

328

18.8 %

46.4 %

468

16.0 %

313

17.9 %

49.4 %

Start-up expenses for restaurants

37

1.3 %

25

1.4 %

49.4 %

37

1.3 %

25

1.4 %

49.4 %

Other gains

759

26.0 %

613

35.1 %

23.7 %

176

6.0 %

31

1.8 %

465.5 %

Other losses

8

0.3 %

4

0.2 %

102.6 %

8

0.3 %

12

0.7 %

(31.4)%

Incl. Loss/(profit) on disposal of non-current assets

3

0.1 %

(2)

(0.1)%

(225.2)%

3

0.1 %

8

0.5 %

(61.7)%

Profit/(Loss) from operating activities before impairment

437

15.0 %

(53)

(3.0)%

(929.6)%

90

3.1 %

(308)

(17.6)%

(129.3)%

Loss from impairment of operating assets

21

0.7 %

93

5.3 %

(77.6)%

21

0.7 %

93

5.3 %

(77.6)%

Profit/(Loss) from operating activities after impairment

416

14.3 %

(146)

(8.3)%

(385.4)%

69

2.4 %

(401)

(23.0)%

(117.3)%

Financial expenses, net

600

20.6 %

652

37.3 %

(7.9)%

241

8.3 %

260

14.9 %

(7.0)%

Foreign exchange gain/(loss), net

60

2.1 %

(416)

(23.8)%

(114.5)%

5

0.2 %

(8)

(0.4)%

(158.0)%

Loss before income tax

(124)

(4.2)%

(1,214)

(69.4)%

(89.8)%

(167)

(5.7)%

(669)

(38.3)%

(75.0)%

Income tax benefit

133

4.6 %

182

10.4 %

(26.8)%

132

4.5 %

182

10.4 %

(27.4)%

Net profit/(loss)

10

0.3 %

(1,031)

(59.0)%

(100.9)%

(35)

(1.2)%

(487)

(27.8)%

(92.8)%

EBITDA before impairment and write-offs

1,404

48.1 %

938

53.7 %

49.7 %

278

9.5 %

(110)

(6.3)%

(351.9)%

The comments to the table are based on financial results adjusted to IFRS 16 "Leases".

Consolidated revenue for 6 months of 2021 amounted to RUB 2,917 million by growing by 66.9% against 6 months of 2020. The restaurants' revenue grew by 68% against the 1st half of 2020.

Cost of sales decreased by 24.7% against the cost of sales for the 1st half of 2020, mainly, due to a 6.5% reduction in the payroll expenses. Rent expenses grew by 5.4% against the 1st half of 2020. The cost of food and beverages increased by 1.3% against the 1st half of 2020 amid a rise in prices. All figures are calculated as a percentage of the revenue.

Gross profit margin grew to 7% in the 1st half of 2021 against a negative value of 17.7% in the 1st half of 2020 due to increased sales growth (the figures are calculated as a percentage of the revenue).

Selling, general and administrative expenses for 6 months of 2021 made for 16.5% of the revenue, which is 2.3% less than in the 1st half of 2020.

Start-upoperating expenses for restaurants grew by RUB 12 million, or 49.4% against the comparable period, due to renewed investment projects.

Other gains fell by 9.1% (calculated as a percentage of the revenue) and grew by 146 million against the 1st half of 2021. The growth is on account of the write-off of payables under a concessionary loan from Promsvyazbank

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PJSC granted under the government initiatives for support of business and recognition of the rental discounts granted by landlords during the pandemic.

Loss from impairment of operating assets accounted for RUB 21 million, against RUB 93 million in the 1st half of 2020.

Financial expenses for 6 months of 2021 fell by 16.7% to come to RUB 600 million, which is RUB 62 million less than for 6 months of 2020. The fall is on account of discounts granted under lease agreements.

Net profit in the 1st half of 2021 made for RUB 10 million, against the loss of RUB 1,031 million in the comparable period of the previous year.

EBITDA[4] before impairment and write-offs was RUB 1,404 million in the 1st half of 2021 and RUB 938 million in the 1st half of 2020, respectively.

____________________________________________________________________________________________________________

  1. Revenue in accordance with IFRS is the consolidated revenue of the Rosinter Group calculated in accordance with international financial reporting standards (net of VAT) and includes sales of restaurants and corporate cafes, as well as revenue from sub-lease of premises , revenue from franchising operations and other components.
  2. EBITDA is calculated by adding back depreciation and amortization to profit from operating activities after impairment. EBITDA measures are not standard measures under IFRS and should not be considered as an alternative to the net profit, operating profit, operating cash flows or any other standard measures in accordance with IFRS. Our approach to calculating EBITDA may differ from the approach of other companies.
  3. Adjusted figures - financial indicators adjusted to the effect from the adoption of the new IFRS 16 for operating lease.
  4. Unaudited operating revenue (inclusive of VAT) includes only gross sales of restaurants and corporate cafes and does not include revenue from sub-lease of premises, revenue from franchising operations and other components.

Information in this press release is based on "forward-looking statements", which include all statements other than statements of historical fact. Such forward-looking statements can often be identified by words such as "plans", "believes", "anticipates", "expects", "intends", "estimates", "will", "may", "continue", "should" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's and/or its Management's control that could cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and the Company and/or its Management does not intend and has no duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. The information and opinions contained in this press release are only valid as at the date hereof and may be subsequently revised without notice of any kind and form.

*

*

*

Investors and analysts enquiries:

Press inquiries:

Alexey Shorokhov

Tatyana Zotova

CFO

PR Director

IR@rosinter.ru

tzotova@rosinter.ru

Tel: +7 495 788 44 88 ext. 1560

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Note to Editors:

As at 30 June 2021, Rosinter Restaurants Holding PJSC is a major casual dining restaurant operator in Russia and the CIS, which runs 226 retail outlets in 27 cities of Russia, the CIS and Central Europe, including the Baltic States. The chain has 134 corporate restaurants and 92 franchised restaurants and cafes. The company develops its own brands IL Patio, Planet Sushi, Shikari, American Bar and Grill, Mama Russia, and also operates under franchise agreements a chain of American restaurants TGI FRIDAYSTM and a chain of British coffee shops Costa Coffee. In March 2012, Razvitie ROST LLC (a subsidiary of Rosinter Restaurants Holding) acquired the right to develop McDonald's fast-food chain on a franchise basis at railway stations and in airports of Moscow and St. Petersburg.

Rosinter Restaurants Holding is listed on the Moscow Exchange MICEX-RTS (www.moex.com) under the stock ticker ROST.

Company Website: www.rosinter.ru.

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OAO Rosinter Restorants Holding published this content on 27 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2021 12:41:05 UTC.