JUBILANT FOODWORKS LIMITED Corporate Presentation February 2017 2 - PowerPoint PPT Presentation

JUBILANT FOODWORKS LIMITED Corporate Presentation February 2017

2 1 Overview of the Indian Food Service Industry 2 Overview of Jubilant FoodWorks Limited (JFL) 3 Domino’s Pizza – Journey & Positioning 4 Dunkin’ Donuts – Journey & Positioning 5 JFL Financial Highlights 6 Outlook 7 Annexures (Experienced Team, CSR Initiatives & Awards)

Overview of Indian Food Service Industry

4 Format 2016 2021 CAGR Rs 204.0 bn ----  Rs 509.5 bn Chained Market (7%) 20.1% (10%) Rs 810.8 bn ----  Rs 1,532.3 bn Standalone Market (26%) 13.6% (31%) Rs 2,076.4 bn ----  Rs 2,939.5 bn Unorganized Market (67%) 7.2% (59%) Rs 3,091.1 bn ----  Rs 4,981.3 bn Total (100%) 10.0% (100%) Chained Market projected to grow at 20% CAGR Source: India Food Services Report 2016- National Restaurant Association of India

5 Format 2013 2016 2021 CAGR CAGR Rs 15.2 bn ----  Rs 18.1 bn ----  Rs 29.1 bn Cafe (12%) 6% (9%) 10% (6%) Rs 55.0 bn ----  Rs 91.3 bn ----  Rs 246.7 bn Quick Service Restaurant (43%) 18% (45%) 22% (48%) Rs 39.5 bn ----  Rs 67.2 bn ----  Rs 172.5 bn Casual Dining Restaurant (31%) 19% (33%) 21% (34%) Rs 5 bn ----  Rs 5.3 bn ----  Rs 6.2 Cr Fine Dining Restaurant (4%) 2% (3%) 3% (1%) Rs 5.4 bn ----  Rs 10.7 bn ----  Rs 28.8 bn Pubs & Bars (4%) 25% (5%) 22% (6%) Rs 7.8 bn ----  Rs 11.6 bn ----  Rs 26.4 bn Frozen Dessert (6%) 14% (6%) 18% (5%) Rs 127.9 bn ----  Rs 204.0 bn ----  Rs 509.5 bn Total (100%) 17% (100%) 20% (100%) QSR segment is projected to grow at 22% would stand as 48% of total chained market Source: India Food Services Report 2016- National Restaurant Association of India

6 Pro-growth Demographics (increased youth population, Higher disposable / discretionary nuclear family & more working income women) Growth driven by Greater urbanization digitization Changing consumer preferences – Growth in chained widening exposure to retail new cultures and cuisines India an attractive proposition Business potential in transit for global players – more locations choices for consumers Large consumption growth relative to emerging and developed markets

7 Consistent quality of Rising Focused & Execution & Focus on Prudent roll- product with Value for aspiration of integrated delivery of hygiene and out finger on money using branded approach strategy sanitation customer’s products pulse Evolving according to the needs of the consumer, leading to growth

8 On the pedigree of the global brand Capitalising The palette with local flavors Customising New products on a regular basis Introducing A unique model through home delivery & dine-ins Developing Operational excellence- consistency of product and service Delivering On enticing customers with evolving mktg strategies Focusing Systematic approach to deliver sustainable growth

Overview of Jubilant FoodWorks

10 o Founded in 1960 o Founded in 1950 Presence Across o More than 13,200 franchised and Company- o More than 12,000 restaurants in more than 44 Countries owned Restaurants in more than 80 international countries markets Beginning of o 1 st restaurant operated in India in Mar’ 96 o 1st restaurant operated in India in Apr’ 12 Restaurants in India Presence in India o 1,111 restaurants across 260 Indian cities* o 68 Restaurants across 19 Indian cities* o India is currently the biggest market for Domino’s Pizza outside the United States Contract Details o Exclusive right to open Domino’s Pizza o Exclusive right to operate and develop Dunkin’ restaurants in India, Sri Lanka, Bangladesh and Donuts restaurants in India. The agreement is for Nepal a period of 15 yrs, till February 2026 with the o Current franchising agreement till December option of renewal for 10 yrs, with first right of 2024 with right of renewal for another 10 years refusal for Sri Lanka, Nepal & Bangladesh * As of 06 February 2017 Accumulated learning's to drive ramp- up in Domino’s Pizza & Dunkin’ Donuts

11 Consumer Focus Driven by Robust and Innovative Operational Integrated Marketing Excellence Continuous Supply Chain Innovation Human Systems Robust Project Resource Management Corporate Management Investments Governance Competency driving growth in Mechanism Technology Delivering consistency in product and services to delight our customers

12 ROBUST INFRASTRUCTURE OPERATIONAL EXCELLENCE Delivering consistency in product and services to delight our customers

Food Safety and Quality Assurance Training on standards of Food safety and Quality • Regular QA Assessment • • Third party assessment through NABL Accredited agency Regular compliance checks of food processes as per FSSAI guidelines • Continual surveillance assessment of restaurants under ISO 22000 • certification Stringent selection & monitoring • process of new and existing @ Restaurant suppliers based on key Training of staff and managers on • Level performance indicators for comprehensive standards of Food Quality and Food Safety safety and Quality requirements Stringent sampling of all raw • Food ingredient suppliers are • materials & COA approach FSMS certified Food Safety acceptance Moving all vendors towards • and Quality Comprehensive analysis of Food • FSMS certification Assurance products as per FSSAI guidelines NABL Accredited Third Party • Regular food quality and safety QA • Assessments Initiation for Core assessments based on FSSAI ingredient supplying Food Schedule 4 requirements @ Supply Chain @ Commissary Vendors level Level Implemented FSMS (ISO 22000 ) • Alliances with all vendors to • certification in 5 Commissaries continuously enhance Quality and Food safety norms and comply regulations

14 Vendors and Central Location Partners COLD CHAIN TRUCKS at 1-4 0 C COLD CHAIN TRUCKS at 1-4 0 C Restaurants Raw Materials Restaurants * As of February 06, 2017 Under Construction An integrated supply chain for Domino’s Pizza and Dunkin’ Donuts adapted to Indian conditions; well-equipped to deal with geographic and demand expansion

15 Guest Delight Manager (Restaurant Assist Manager) is Pre defined Employees in treated as CEO growth path for encouraging of the every Team excellence Restaurant Member educational growth Reward & Learning & Recognition with Professional Variable Incentives Development and bring motivation Training Whistle Blower institutionised at Fun at work every restaurant/office Team members act as brand ambassador imbibing JFL’s values, ethics and culture

16 Institutionalised Composition of Board with Whistle Blower Professional Acumen Mechanism Robust Audit and Nurturing Enterprise Corporate Review Mechanism Risk Management Governance Mechanism Code of Established Internal Conduct/ Control Mechanism No Gift Policy Truly inculcated mechanism of corporate governance

17 Customer level Commissary / Supply chain level Customer Relationship Management ( CRM ) Oracle Transport management – Optimizes route/ load GPS enabled deliver vehicles – to track vehicle efficiencies for supplies from commissary to stores movement COGNOS – system aids in procurement planning OLO/mobile app /Voice ordering – for ease of SAP – for accounting and Supply Chain systems/ ERP ordering GPS on commissary truck – Enables tracking trucks and monitoring factors like temperature compliance Barcoding – for efficient stock management Automation – Implementation of sensor doors, use of technology for temperature compliance, picking trolley ARIBA – tool for vendor management Organizational Level Restaurant level Energy management system – tool to optimize OLO/mobile app /Voice ordering – for ease of energy usage ordering SAP – Accounting and Supply Chain related - ERP LMS – Learning management System – non trainer Biometric device – tracking of employee attendance, based learning at restaurants helps improving productivity, GRC – Governance Risk and Compliance tool I Manage – Mobility, Ease of Compliance, Energy management system – tool to optimize Socialization, automation of transactions, say energy usage confirmation Hyperion – tool for financial planning Integration of technology across levels to drive efficiencies & enhance growth opportunities

18 3 5 Negotiate Average restaurant With landlords opening/ construction time is between 35-45 Handover of restaurant to days from the date of contractor for interiors 2 possession of premises for a new restaurant 4 Construction/ Purchase and location installation of machinery 6 Operational and Financial Diligence Legal due diligence and agreement sign off with landlords 1 7 Training of team members Local advertisement (distribution of Identify new Restaurant opening flyers, regional restaurant media coverage) 8 location ROI/Payback period analysis undertaken prior to opening a restaurant

19 Pizza Mania Extremes Big Joy Burgers Range of coffees Product Innovation Burger Pizza DunkyDoos Open Kitchen • Design Innovation Flexible • Seating Heritage Wall • Technology Innovation Innovating to keep the excitement alive