corporate presentation - telepizzacorporate presentation q3 2016 2 disclaimer this presentation (the...

Corporate Presentation

Q3 2016

2

Disclaimer

This presentation (the "Presentation") has been prepared and is issued by, and is the sole responsibility of Telepizza Group, S.A. (“Telepizza" or "the Company"). For the purposes hereof, the Presentation shall mean and

include the slides that follow, any prospective oral presentations of such slides by the Company, as well as any question-and-answer session that may follow that oral presentation and any materials distributed at, or in

connection with, any of the above.

The information contained in the Presentation has not been independently verified and some of the information is in summary form. No representation or warranty, express or implied, is made by the Company or its affiliates,

nor by their directors, officers, employees, representatives or agents as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions expressed herein. None of

Telepizza, nor their respective directors, officers, employees, representatives or agents shall have any liability whatsoever (in negligence or otherwise) for any direct or consequential loss, damages, costs or prejudices

whatsoever arising from the use of the Presentation or its contents or otherwise arising in connection with the Presentation, save with respect to any liability for fraud, and expressly disclaim any and all liability whether direct

or indirect, express or implied, contractual, tortious, statutory or otherwise, in connection with the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or

misstatements contained in the Presentation.

Telepizza cautions that this Presentation contains forward looking statements with respect to the business, financial condition, results of operations, strategy, plans and objectives of the Company. The words "believe",

"expect", "anticipate", "intends", "estimate", "forecast", "project", "will", "may", "should" and similar expressions identify forward-looking statements. Other forward-looking statements can be identified from the context in which

they are made. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a certain number of risks, uncertainties and other important factors,

including those published in our past and future filings and reports, including those with the Spanish Securities and Exchange Commission (“CNMV”) and available to the public both in Telepizza’s website

(www.telepizza.com) and in the CNMV’s website (www.cnmv.es), as well as other risk factors currently unknown or not foreseeable, which may be beyond Telepizza’s control, could adversely affect our business and financial

performance and cause actual developments and results to differ materially from those implied in the forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as

actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.

The information contained in the Presentation, including but not limited to forward-looking statements, is provided as of the date hereof and is not intended to give any assurances as to future results. No person is under any

obligation to update, complete, revise or keep current the information contained in the Presentation, whether as a result of new information, future events or results or otherwise. The information contained in the Presentation

may be subject to change without notice and must not be relied upon for any purpose.

This Presentation contains financial information derived from Telepizza’s audited consolidated financial statements for the twelve-month periods ended December 31, 2015 and 2014. In addition, the Presentation contains

Telepizza’s unaudited quarterly financial information for 2014, 2015 and 2016 prepared according to internal Telepizza’s criteria as well as other performance measures as of April 2016. Financial information by business

segments is prepared according to internal Telepizza’s criteria as a result of which each segment reflects the true nature of its business. These criteria do not follow any particular regulation and can include internal estimates

and subjective valuations which could be subject to substantial change should a different methodology be applied.

In addition, the Presentation contains certain annual and quarterly alternative performance measures which have not been prepared in accordance with International Financial Reporting Standards, as adopted by the

European Union, nor in accordance with any accounting standards, such as “chain sales”, “like-for-like chain sales growth”, “underlying EBITDA” and “digital sales”. These measures have not been audited or reviewed by our

auditors nor by independent experts, should not be considered in isolation, do not represent our revenues, margins, results of operations or cash flows for the periods indicated and should not be regarded as alternatives to

revenues, cash flows or net income as indicators of operational performance or liquidity.

Market and competitive position data in the Presentation have generally been obtained from industry publications and surveys or studies conducted by third-party sources. There are limitations with respect to the availability,

accuracy, completeness and comparability of such data. Telepizza has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in the Presentation regarding

the market and competitive position data are based on the internal analyses of Telepizza, which involve certain assumptions and estimates. These internal analyses have not been verified by any independent source and

there can be no assurance that the assumptions or estimates are accurate. Accordingly, no undue reliance should be placed on any of the industry, market or Telepizza’s competitive position data contained in the

Presentation.

You may wish to seek independent and professional advice and conduct your own independent investigation and analysis of the information contained in this Presentation and of the business, operations, financial condition,

prospects, status and affairs of Telepizza. The Company is not nor can it be held responsible for the use, valuations, opinions, expectations or decisions which might be adopted by third parties following the publication of this

Presentation.

No one should purchase or subscribe for any securities in the Company on the basis of this Presentation. This Presentation does not constitute or form part of, and should not be construed as, (i) an offer, solicitation or

invitation to subscribe for, sell or issue, underwrite or otherwise acquire any securities, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter

into any contract or commitment whatsoever with respect to any securities; or (ii) any form of financial opinion, recommendation or investment advice with respect to any securities.

The distribution of this Presentation in certain jurisdictions may be restricted by law. Recipients of this Presentation should inform themselves about and observe such restrictions. Telepizza disclaims any liability for the

distribution of this Presentation by any of its recipients.

By receiving or accessing to this Presentation you accept and agree to be bound by the foregoing terms, conditions and restrictions.

3

Telepizza at a glance

1,342 stores globally

(66% franchised /

34% owned)

Leading pizza delivery

player in its core markets

Digital accounts for 37% of delivery sales in Spain in

September

€506m LTM Group

chain sales

€63m LTM Underlying

EBITDA

Key facts1 Chain sales growth2

The largest non-US pizza delivery company worldwide

19% LTM Underlying

EBITDA margin

Market leader in core markets (2015) Geographic breakdown (2015)

53% 51%

16%

52%

33%

1 1 2 1 1Market

position

Europe Latin America

Spain Portugal Poland Chile Colombia

Store network Chain sales Underlying EBITDA

66%

15%

16%3%

Spain Rest of Europe Latin America Master franchises and Others

49%

17%

22%

12%

66%

15%

16%3%

65%13%

15%7%

Notes:

1. Data as of Q3 2016

2. Constant currency growth, excluding Master Franchises

4.7%4.3%

9.5%

7.9%7.4%

5.5% 5.3%

4.0%

3.2%

7.4%

6.5%

5.6%

3.2% 3.2%

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16

Chain sales growth LFL sales

4

68236

561 580 640 632 628 624 630 621 630 644 665

14

51

315 369433 460 563 602 631 609 638 667 677

282

287

876949

1,073 1,0921,191 1,226 1,261 1,230 1,268 1,311 1,342

1988 1992 1996 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016

Evolution of Telepizza

Telepizza has a long history of growth in the Spanish and international markets

# Spanish stores # International stores

Countries

enteredSpain

(1988)

Chile

(1992)

Poland

(1992)

Portugal

(1992)

Colombia

(2010)

Rapid growth in Spain and increased presence

in core international markets

Focus on operational efficiency in Spain

and entry in selected markets

Spain recovery fuels

new phase of

international growth

Guatemala

(2004)

El Salvador

(2004)

UAE

(2009)

Angola

(2014)

Russia

(2014)

Panama

(2013)

Bolivia

(2013)

Peru

(2011)Ecuador

(2012)

65%

Franchised stores

54% 54% 55% 59% 63%58%0% 29% 48% 58% 59%57%Franchised

Stores (%) 66%

UK

(2016)

Malta

(2016)

Saudi

Arabia

(2015)

Iran

(2016)

5

Telepizza stores as of Q3 2016Global footprint with leadership positions in key markets

Market entry: 1992

Market position1: #1

Telepizza stores (Q3 16): 142

Chile

Market entry: 2010



Colombia

Market entry: 2011



Peru

Market entry: 2012



Ecuador

Market entry: 1988



Spain

Market entry: 1992



Poland

Market entry: 1992



Portugal

Master franchises

Guatemala Bolivia

El Salvador Russia

Angola Saudi Arabia

United Kingdom Malta

Iran


Master franchiseTelepizza own

and franchised

stores

Telepizza operated

production facilities

Master franchise

production

facilities

3rd party

warehouses

Note:

1. Market shares calculated as % of Chained Pizza foodservice and based on 2015 Euromonitor total number of stores (if there is a difference between Telepizza’s actual # of stores and Euromonitor’s figures for 2015, Company 2015 figures prevail when

calculating market share), except for Spain which is based on market value and according to 2015 NPD data, Ecuador which is company information and Peru, which is calculated based on 2015 Euromonitor number of stores and market share calculated as

% of Global Chained Pizza foodservice. In Colombia this includes stores operated under the Jeno's Pizza brand

6

Investment highlights

Differentiated, vertically integrated and scalable business model4

Proven digital platform supporting multi-channel strategy5

Well-seasoned management team6

Major global pizza brand3

Exposure to positive Spanish macroeconomic fundamentals2

Favorable secular trends in pizza delivery market1

Compelling financial profile with multiple growth levers7

7

2.6%

4.5%

5.1%

Real GDP Pizza foodserv ice Pizza delivery

CAGR (2015–20E)

Favorable trends in pizza delivery

Favorable secular trends in pizza delivery marketThe pizza delivery market is a highly attractive €43bn segment with fast growth

Source: Real GDP: Economist Intelligence Unit (EIU). Market data: Euromonitor

Notes:

1. Pizza delivery: Pizza 100% home delivery/takeaway; Chained pizza delivery: Chained pizza 100% home delivery/takeaway

2. CAGR calculations based on y-o-y Euro denominated market values as per Euromonitor methodology

1

Universal appeal and easily adaptable to local preferences

Increasing emphasis on convenience

Rise in all-day dining and personalization

Premiumization and availability of new taste experiences

Growing trend of "stay-at-home" culture

Well-positioned to benefit from digitalization

Resilient throughout economic cycles

Strong unit economics and high cash conversion

Fragmented global market with significant white space

Co

nsu

mer

tren

ds

Bu

sin

ess m

od

el

Global

market

size (2015)€25.9bn

Chained

pizza delivery1

€43.3bn

Pizza

delivery1

GDP

2

Chained pizza delivery outgrows GDP and

independent pizza players

8

(0.9)% (0.1)%0.7%

1.4% 1.9% 2.4%2.8% 3.2% 3.4% 3.2%

(1.0)%0.5%

0.6%1.2%

2.6% 2.9% 4.3% 4.6% 4.4% 4.6%

(5.8)%

(1.1)%

0.0%1.0%

1.2% 2.5%

8.8%

11.4%

16.1%16.9%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Spain real GDP Spain QSR Spain delivery market

Delivery outperforms QSR market and other channels when overall macro environment improves

2

Source: Real GDP: EIU (except for Q1 and Q2 16 data which is from INE). QSR and Delivery market: NPD

Notes:

1. Based on INE data for Spanish PIB

2. UK delivery specialists market figures from NPD

Exposure to positive Spanish macroeconomic fundamentals

(LTM y-o-y growth)

Increase in delivery growth in line with macro recovery

(LTM y-o-y growth)

Clear outperformance of real GDP growth

… has been validated in other marketsImpact of macro recovery in Spain …

Delivery growing faster

than in store + take

away segments

1.2%

2.2%

2.9% 2.4%

2.8%

1.1%

3.2%

3.6%

4.5%

1.8%

6.9%7.6%

2012 2013 2014 2015

UK real GDP UK QSR UK delivery market2

1

Significant gap between

delivery segment and

total QSR market

9

644

105 121 138

91

53%

1

Telepizza market share1 Market position1#2 player market share1 #1 player market share1

# stores

(2015)

Market leading position in our core markets

Source: Euromonitor (2016), NPD (December 2015). Brand scoring: Toluna 2015

Note:

1. Market shares calculated as % of Chained Pizza foodservice and based on 2015 Euromonitor total number of stores (if there is a difference between Telepizza’s actual # of stores as of 2015 and Euromonitor’s figures for 2014, Telepizza's 2015 figures

prevail when calculating market share), except for Spain which is based on market value and according to 2015 NPD data

15%

51%

1

45%

3 Major global pizza brand…

Europe Latin America

16%

2

23%

52%

1

14%

33%

1

21%Main

competitor

10

…backed by an unmatched product portfolioUnique consumer understanding and ongoing product innovation allows Telepizza to differentiate itself with a best in class locally adapted menu offering

3

Pizza offering adapted to local taste

4 types of dough

6 sauces

4+ types of cheese

20+ ingredients

80% of pizzas offered globally

Homogenous dough production

BBQ

(top-seller)

VegetarianHawaiian Ham & Cheese Pepperoni

Increase

average ticket

price

Avoid

veto vote

Complete

product offering

Differentiate

Telepizza

Drive loyalty and

frequency

Diversity to

drive group

consumption

Burgers Pasta Sandwiches

Salads Spiro Dog SidesKebab

Core pizza portfolio Complementary products

Consistent global pizza offering Non-pizza / sides

Drinks Desserts Dedicated local adaptations Ongoing product innovation

Note:

1. Average ticket price increase in the delivery channel on a weekly basis

Innovation to

amaze

consumers

Key benefits

11

Differentiated business model through vertical integration…4

Vertically integrated model differentiating Telepizza from our competitors and ensuring higher profitability and product quality

Adapt to local market demands

Increase penetration of catchment areas

Capture more moments of consumption

Expand into attractive new formats

(malls/mini-stores)

Increase reach of brand

Ind

us

tria

lL

og

isti

cs

Sto

re n

etw

ork

7 logistics

warehouses

Balanced network with 1,342 locations globally (Q3 16)

Dough CheeseOther

ingredientsDirect

productsEquipment

3rd party suppliers

7 dough production

facilities in Europe &

Latam

Strategic

partnership with

Ornua

Scale benefits

Global sourcing policy

Product consistency

Long-term supply agreements

Frequent and efficient store deliveries

Minimized store inventory

By

format

456 own stores

(34% of total stores)

886 franchised stores

(66% of total stores)

By

owner-

ship

154Shopping malls

173 Mini-

stores

813Traditional

stores

128 In-store

concessions

74Other

Takeaway

• Group (27%)

• Spain (30%)

By

channel1

Delivery

• Group (56%)

• Spain (59%)

Eat-In

• Group (17%)

• Spain (11%)

Mainly Latin America

2 innovation labs

(Spain and Chile)

Note:

1. Telepizza brand stores only, H1 2016

12

…and a balanced approach to store ownership4

Tactical use of own store and franchisees allows us to control distribution and fully penetrate our markets

Local market knowledge and proof of concept

Ability to trial products

Deeper consumer knowledge

Enhanced flexibility and control

Attractive payback (<3 years)

456

Own

stores

Asset-light business model

Limited reliance on individual franchisees

Long-term contracts

75% former employees (in Spain)

Sourcing from Telepizza

886

Franchised

stores

…supported by Telepizza

Operations fully dedicated

Local & regional pricing / promotional policy

Brand and marketing initiatives

"One Stop" sourcing

Store opening and refurbishment support

Global IT platform with integrated CRM

Successful franchisee model in more

established market…

Developing presence in new markets

Master

Fran.OrganicM&A countriesStores development already consolidated

74%

61%

76%

35% 32%

14%3%

100%

66%

26%

39%

24%

65% 68%

86%97%

34%

Sp

ain

Po

rtu

ga

l

Po

lan

d

Ch

ile

Co

lom

bia

Ec

ua

do

r

Pe

ru

Oth

er

To

tal

Gro

up

Franchised stores Own stores

665 109 119 142 92 22 1,34239 152

# of stores

Store ownership by country (Q3 16)

13

Note:

1. Calculated as e-shoppers over total population in each country (excluding people aged 0-14)

78% 76%66% 65%

37%

The Spanish market has similar levels of internet and

smartphone penetration as the UK or the US…

Internet users (per 100 people)

The Spanish market has all the right attributes to benefit from increasing digital penetration

Source: Internet users: EIU (as of March-2016). Penetration of smartphones: Informa (March-2016), E-commerce sales growth: eMarketer (2015), Delivery food service market data: NPD (2015), e-commerce penetration: Ecommerce Foundation (2015)

5

Penetration of smartphones (smartphones as a % of

population)

Tangible digital upside potential to be captured…

70

8988

99

7992

60

110

2012 2013 2014 2015 2016 2017 2018 2019 2020

Spain United Kingdom US

43.4%

96.9%55.7%

106.3%

47.0%

103.3%

30%

80%

2012 2013 2014 2015 2016 2017 2018 2019 2020

Spain United Kingdom US

2015-19E

e-commerce

growth

44% 42% 33% 57% 47%

E-commerce penetration1 (as % of total population, 2015)

Digital benefits

Digital customers order more frequently than phone

customers, resulting in higher average expenditure per

digital customer

Improved order accuracy and reduced time on the phone

for Telepizza employees, allowing them to focus on

improving service

Enhanced brand image, increased brand awareness and

higher penetration of innovation

High engagement rate with customers through active

social media presence

70.0 €

80.0 €

90.0 €

100.0 €

110.0 €

120.0 €

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Increased spend vs telephone channel in Spain

Spain spend per digital vs

phone customer since 2014

+35%

14

…with rapid growth of digital sales taking place in SpainThe digital platform is on track to becoming our prime source of consumer orders

Source: Company information

5

Digital increasing and shifting towards mobile platforms1Continued growth of the delivery channel in Spain

Notes:

1. Data for Spain based on number of orders

2. Includes App and web responsive

Digital fostering delivery sales growth (H1 2016) …

… and resulting in increased digital penetration

5.1% 9.5%

22.2%

49.0%

Total Spaingrowth

Delivery growth Digital deliverygrowth

App growth

Spain

sales (€m)

2

24.4%27.8%

31.1%

34.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

30

35

40

H1 13 H1 14 H1 15 H1 16

Mobile PC % Delivery Sales

58%

52%

42%

48%

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Web PC Mobile2

31%

37% in

September

55%

45%

15

Organizational chart

Maintained

dominant market

share during

Spanish economic

downturn

Implementing

successful

expansion model of

own stores,

franchise

agreements and

selective

acquisitions

Innovation

culture

Strong digital

development

Hub structure

organization

Navigated

positively through

a severe

consumption crisis

in Spain

Refinancing and

new capital

structure

Pablo Juantegui

(7)

CEO

(x) Years with Telepizza

Stable and robust management team with combined expertise of more than 100 years within the industry

Key achievements in the last 5 years

Management team with long-standing experience6

Head of HR

Mar Romero

Joined 1-Mar-16

CFO

Igor Albiol

(16)

Chief Supply Chain

Officer

Manuel Loring

(9)

COO Latam

Ignacio González Barrajón (22)

COO International Expansion

Giorgio Minardi

(1)

CIO

Emilio Tovar

(6)

COO Europe & CMO

Fernando Frauca

(11)

16

39.7 38.1

13.719.6

53.4

57.7

FY2014 FY2015

Spain International

45.5

51.1

9M 2015 9M 2016

Total Group

Profitable growth in Spain and internationally

236.1 246.1

104.8109.9

23.422.5

9M 2015 9M 2016

300.9 318.5

130.2141.3

19.8

32.0

FY2014 FY2015

Underlying EBITDA (€m)

6.6%

Chain sales (€m)

4.6%

LfL growth (%)Constant currency

growth1 (%)

6.1%

6.8%

451.0

491.8

364.2378.5

7.2%

2.7%

Spain Core International1

Note:

1. Excluding Master Franchises

7 Compelling financial profile

Master Franchises

8.1%

12.4%

17

Telepizza is well-positioned to take advantage of further LfL growth as well as expansion potential in both existing and new geographies

Multiple levers for future growth

Multiple potential growth levers

Expansion strategyOrganic unit expansionLfL chain sales and revenue growth

Existing markets New markets

Product innovation

Increase digital penetration

Store refurbishment and optimization

Incremental opportunity in Spain

Significant expansion potential in core

international markets

Increasing share of franchised stores

1 2

Development of own store network

Selective and complementary

acquisitions

New master franchise agreements

7

Financial information

19

c.7%2

Royalties+

Marketing

SG&A EBITDACOGSRevenues

Understanding our financials

Own Stores

Sales

Supply

Sales

Royalty &

Marketing

fees

Own Stores

Sales

Franchised

Stores

Sales

LfL Own

Stores

New Own

Stores

LfL

Franchised

Stores

New

Franchised

Stores

Other

Revenues3

c.60% Fixed

c.40% Variable

(% Margin)

Chain sales flow through EBITDA benefiting from significant operating leverage

Net revenues impacted by own vs. franchised mix

100%

c.35%1

Margin

Chain Sales

Revenues to EBITDA bridge

%Margin

Notes:

1. Based on 2015 margin over franchised stores sales excluding Master franchises

2. Based on 2015 margin over franchised stores sales

3. Includes opening or renewal franchise fees, transfer fee and other ancillary services to franchisees and others

20

Chain sales growth10 consecutive quarters growing in Spain, while posting double digit growth in International

1.1%

3.4%

4.7%

3.3%

9.1%

6.5% 6.4%

3.7%

2.6%

-0.2%

2.3%

4.1%

1.7%

7.2%

5.6%5.2%

2.1%

Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16


3.0%

4.2%

4.8%

6.6%

10.4%

11.3%

10.0%

9.5%

11.4%

2.8%

3.7% 3.7%

6.7%

7.9%

8.7%

6.7%

5.8%

Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16


Core International1 sales growthSpain sales growth

Note:

1. Constant currency growth, excluding Master Franchises

9.0%

0.6%

21

630 644 649 665

638667 676 677

1,2681,311 1,325 1,342

Dec-14 Dec-15 Jun-16 Sep-16

Spain International

Profitable unit expansion with increasing weight of franchisesActive management of store network, with openings of franchised mall units and mini-stores in Spain, continued International expansion and closures of unprofitable locations

Store network development Continued increase of franchised proportion

By n

um

be

r o

f s

tore

sB

y c

ha

in s

ale

s

34%

66%

36%

64%

FY 2015 9M 2016

FY 2015 9M 2016

38%

62%

41%

59%

Continued increase of franchises, representing 66% of stores and 62% of chain sales in 9M 2016

39%

61%

Owned Franchised

39%

61%

Owned Franchised

+14

stores+43

stores

+29

stores

+14

stores

+9

stores


+5

stores

+17

stores

+4

stores

+13

stores

Notes:

1. Includes stores in Morocco

1

22

242 249

9M 2015 9M 2016

Total Group

149 144

192 212

2323

9M 2015 9M 2016

202 200

229260

20

32

FY2014 FY2015

202 200

97 109

28 20

FY2014 FY2015

Revenue growth impacted by higher proportion of franchised stores

Chain sales flow through revenues

Chain sales & revenues Group (€m)

(3.4)%

3.9%

2.7%

10.5%

Chain sales Revenues

364379

242 249

(1.1)%

9.1%

0.7%

13.5%

12.8%

(1.1)%

Chain sales Revenues

451

492

327 329

23

c.40% of total operating costs (c.60% of opex excluding COGS) are fixed, providing operating leverage as the Business grows

Operating costs


43 38

4646

43 46

H1 15 H1 16

Operating costs (€m)

(2.3)%

90 91

94 91

89 89

FY2014 FY20152

(1.0)%

273 271

133 130

1

COGS positively impacted in H1

2016 by reduction in milk prices

since H2 2015, and increases in

average ticket in 2016YTD

Limited reduction in personnel

expenses, despite higher number

of franchised stores, as delivery

grows and service levels continue

to improve

Other costs increased in line with

unit sales in H1, driven by

incremental investments in brand

and higher presence in media

Notes:

1. Operating costs excluding €32.2m of IPO related costs

2. Operating costs excluding €14.1m of non-recurring refinancing costs

24

45.5

51.1

9M 2015 9M 2016

39.7 38.1

13.7 19.6

53.4

57.7

FY2014 FY2015

Chain sales growth translating into double digit EBITDA growth

Double digit underlying EBITDA growth on the back of strong LfL and operating leverage

Underlying EBITDA growth evolution (€m)

9M 2016 vs. 9M 2015FY 2015 vs. FY 2014

Chain sales growth

Key underlying EBITDA growth drivers in H1 2016

Gross margin expansion (average ticket increase

and COGS reduction)

Operating leverage (c.40% of cost base fixed)

Economies of scale internationally

Underlying EBITDA margin (%)

8.1% 12.4%

16.4%

17.6%

18.9%

2014 2015 LTM Q3 16

+120bps

+130bps

Spain International Total Group

25

Summary income statement

Notes:

1. Includes impairment losses, losses on sale of PP&E, and extraordinary refinancing costs in 2014

2. Net operating loses

Tax assets as of 30 June

€169m of interest carried forward

(deductible up to 30% of annual EBITDA)€52m NOLs2

€m (unless otherwise stated) 9M 2016 9M 2015 % change FY2015 FY2014 % change LTM Q3 2016

Total revenues 248.7 242.2 2.7% 328.9 326.5 0.7% 335.3

Underlying EBITDA 51.1 45.5 12.4% 57.7 53.4 8.1% 63.4

Underlying EBITDA margin (%) 20.6% 18.8% 1.8% 17.6% 16.4% 7.3% 18.9%

Depreciation and amortisation (excl. PPA amortisation) (8.7) (7.9) 10.0% (10.8) (11.5) (5.9%) (11.6)

Underlying EBIT 42.4 37.5 13.0% 46.9 41.9 11.9% 51.8

IPO costs (32.0) - - - - - (32.0)

PPA amortisation (4.4) (4.4) n.m. (5.8) (5.9) n.m. (5.8)

Net financial income / (expense) (19.1) (27.0) (29.1%) (35.4) (68.4) (48.2%) (27.6)

Other1 (0.2) (2.0) n.m. (4.0) 105.7 n.m. (1.9)

Profit before tax on continued operations (13.4) 4.2 n.m. 1.7 73.3 n.m. (15.5)

Income tax 1.0 (6.4) n.m. (2.8) 17.5 n.m. 4.6

Results for the period (12.4) (2.2) n.m. (1.1) 90.7 n.m. (10.9)

26

4.3 5.12.6

2.4

3.5

2.1

0.4

4.6

1.1

0.6

1.8

1.7

11.4

15.2

2.6

19.1

30.2

FY 2014 FY 2015 H1 16

2016 investment plan

Digital and IT

Refurbishments and

Relocations

Maintenance, Efficiency,

Buybacks and Other

Store openings

Investing in upgrading the digital

platform

Improving the App with better

usability and new features

15-20% of capex in FY 2016

Accelerating store network

renewal plan

Selective relocations to adapt to

changes in urban landscape


Rate of openings increasing in H2

Bulk of owned store openings in

fast-growing LatAm countries


Maintenance capex in line with 2015

Efficiency plans

Limited store buybacks planned for

2016

Capex evolution (€m)

Target FY 2016

€20-25m

Note:

1. Including c.€0.5m of maintenance IT per year


Maintenance

Digital & IT1

Refurbishments and

Relocations

Store Openings

Efficiency, Buybacks &

Others

10.0

27

36.0

26.0(10.0)

Cash conversion and Leverage

Cash conversion2

Notes:

1. Operating cash flow measured as Underlying EBITDA - Capex

2. Cash conversion measured as operating cash flow divided by underlying EBITDA

3. Measured as Net Debt (underlying cash) / Underlying LTM EBITDA

4. Adjusted by pending payments from IPO, reported cash position c.€63m, Net debt measured as gross debt – Underlying cash position

198.4

47.962.3

150.5

Gross debt Underlying cash position Underlying net debt H1 16 LTM underlying EBITDA

Leverage ratio3 as of 30 June: 2.4x

Cash conversion (Underlying EBITDA – Capex) (€m)

Leverage

2.4x

4

72%48%64%

1

4

53.4

34.4(19.1)

57.7

27.5(30.2)

FY 2014 FY 2015 H1 2016

Additional information

29

Strong economic recovery

Unemployment reduction

Growth in e-commerce penetration

More single households

Increasing women in workforce

Positive economic & demographic trends

Booming middle class

Vibrant young population profile

Strong urban growth

Historical outperformance versus

GDP both in Spain and Internationally

Universal appeal and easily adaptable to local preferences

Growing trend of "stay-at-home" culture

Increasing emphasis on convenience

Rise in all-day dining and personalization

Premiumization and availability of new taste experiences

Source: Euromonitor

Key Trends

Pizza

foodservice

Pizza

delivery

Chained

pizza

delivery

3.5%1 4.5% 5.1%Global

Western

Europe

15-20E

CAGR

Eastern

Europe

Middle East

& Africa

Latin

America

2.3% 3.2% 5.0%

4.3% 8.5% 14.8%

6.3% 13.4% 6.8%

6.3%2 8.3% 9.3%

Pizza delivery has highly favorable industry dynamics

Notes:

1. Excluding Latin America

2. 2014-2019E CAGR

30

September 2016 2015 2014 2013

Number of StoresOwn

stores

Franchised

stores

Total

stores

Own

stores

Franchised

stores

Total

stores

Own

stores

Franchised

stores

Total

stores

Own

stores

Franchised

stores

Total

stores

Spain 170 495 665 183 461 644 191 439 630 235 386 621

International 286 391 677 278 389 667 273 365 638 266 343 609

Rest of Europe 71 157 228 73 153 226 74 149 223 79 146 225

Portugal 42 67 109 44 61 105 44 64 108 45 65 110

Poland 29 90 119 29 92 121 30 85 115 34 81 115

Latin America 215 82 297 205 79 284 199 75 274 187 66 253

Chile 93 49 142 89 49 138 85 52 137 67 58 125

Colombia 63 29 92 64 27 91 82 20 102 94 7 101

Peru 38 1 39 35 1 36 22 1 23 20 1 21

Ecuador 19 3 22 17 2 19 10 2 12 6 0 6

Panama1 2 0 2 0 0 0 0 0 0 0 0 0

Master Franchises & Others 0 152 152 0 157 157 0 141 141 0 131 131

Guatemala 0 84 84 0 83 83 0 83 83 0 81 81

El Salvador 0 44 44 0 47 47 0 49 49 0 46 46

Russia 0 13 13 0 14 14 0 2 2 0 0 0

Angola 0 5 5 0 5 5 0 1 1 0 0 0

Bolivia 0 4 4 0 4 4 0 2 2 0 1 1

Saudi Arabia 0 2 2 0 0 0 0 0 0 0 0 0

Panama1 0 0 0 0 3 3 0 3 3 0 2 2

United Arab Emirates 0 0 0 0 1 1 0 1 1 0 1 1

Total Group 456 886 1342 461 850 1311 464 804 1268 501 729 1230

Note:

1. Panama, previously operated as MF, operated directly by Telepizza since Q3 2016

Store Count

31

Chain sales—Quarterly Evolution


Total2014 2015 2016 2014 2015 2016

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY 9M

Group chain sales (%) -4.20% 1.50% 2.70% 5.50% 8.60% 8.40% 10.70% 8.60% 5.20% 2.20% 4.40% 1.30% 9.10% 3.90%

Core Geographies1 chain sales (%) -4.50% 0.70% 1.40% 3.90% 5.60% 5.50% 8.60% 6.80% 5.20% 3.00% 5.20% 0.30% 6.60% 4.50%

Core Geographies1 constant currency sales growth (%) -1.90% 3.10% 2.80% 4.80% 4.70% 4.30% 9.50% 7.90% 7.40% 5.50% 5.30% 2.10% 6.60% 6.10%

Core Geographies1 LFL sales growth (%) -3.10% 2.20% 0.70% 2.70% 4.00% 3.20% 7.40% 6.50% 5.60% 3.20% 3.20% 0.60% 5.30% 4.00%

International2014 2015 2016 2014 2015 2016


International chain sales (%) -1.50% 2.60% 5.80% 9.80% 17.20% 18.70% 13.80% 12.70% 2.90% -0.40% 7.50% 4.20% 15.50% 3.30%

Core International1 chain sales (%) -2.40% 0.10% 2.00% 5.00% 8.00% 10.70% 7.70% 7.50% 2.30% 1.30% 11.10% 1.20% 8.50% 4.90%

Core International1 constant currency sales growth (%) 3.60% 4.40% 3.00% 4.20% 4.80% 6.60% 10.40% 11.30% 10.00% 9.50% 11.40% 3.80% 8.30% 10.30%

Core International1 LFL sales growth (%) 2.90% 3.40% 2.80% 3.70% 3.70% 6.70% 7.90% 8.70% 6.70% 5.80% 9.00% 3.20% 6.80% 7.20%

Spain2014 2015 2016 2014 2015 2016


Spain chain sales (%) -5.40% 1.00% 1.10% 3.40% 4.70% 3.30% 9.10% 6.50% 6.40% 3.70% 2.60% -0.10% 5.80% 4.30%

LFL sales growth (%) -5.20% 1.70% -0.20% 2.30% 4.10% 1.70% 7.20% 5.60% 5.20% 2.10% 0.60% -0.50% 4.60% 2.70%

32

Key financial metrics – 9M 2016 and FY 2015 YoY evolution


€m (unless otherwise stated) 9M 2016 9M 2015 % change FY2015 FY2014 % change

Group chain sales 378.5 364.2 3.9% 491.8 451.0 9.1%

Core Geographies1 chain sales 356.0 340.8 4.5% 459.8 431.2 6.6%

Core Geographies1 constant currency sales growth (%) 6.1% 6.6%

Core Geographies1 LFL sales growth (%) 4.0% 5.3%

Spain chain sales 246.1 236.1 4.3% 318.5 300.9 5.8%

LfL sales growth (%) 2.7% 4.6%

International chain sales 132.4 128.1 3.3% 173.3 150.1 15.5%

Core International1 chain sales 109.9 104.8 4.9% 141.3 130.2 8.5%

Core International1 constant currency sales growth (%) 10.3% 8.3%

Core International1 LFL sales growth (%) 7.2% 6.8%

Group Underlying EBITDA2 51.1 45.5 12.4% 57.7 53.4 8.1%

Notes:

1. Excluding Master Franchises

2. 9M 2016 adjusted for €32m of IPO related costs

33

Chain sales breakdown – 9M 2016 and FY 2015 YoY evolution


€m (unless otherwise stated) 9M 2016 9M 2015 % change FY2015 FY2014 % change LTM Q3 2016

Total chain sales 378.5 364.2 3.9% 491.8 451.0 9.1% 506.2

Own store sales 144.3 149.4 (3.4%) 200.2 202.4 (1.1%) 195.2

Franchised and master franchised stores 234.2 214.8 9.0% 291.6 248.6 17.3% 311.0

0.0 0.0


Horizontal (%) 2.2% 2.7%

Exchange rate adjustment (%) (1.8%) 0.9%

Spain chain sales 246.1 236.1 4.3% 318.5 300.9 5.8% 328.6



International chain sales 132.4 128.1 3.3% 173.3 150.1 15.5% 177.6



Exchange rate adjustment (%) (5.3%) 2.9%

34

Balance sheet

€ '000 (unless otherwise stated) June 2016 FY 2015 June 2016 FY 2015

Non current assets 800,806 792,404 Equity 570,737 354,342

Property, plant and equipment 40,597 40,158 Non-current liabilities 286,455 472,988

Goodwill 382,971 382,694 Borrowings 196,983 286,176

Other intangible assets 331,919 333,982 Shareholders loans 0 96,704

Other non-current assets 45,319 35,570 Other non-current liabilities 89,472 90,108

Current assets 117,599 94,086 Current liabilities 61,213 59,075

Subtotal currents assets 117,599 93,956 Trade and other payables 55,918 48,696

Other current liabilities 5,295 10,379

Inventories 12,107 11,392

Receivables and other current assets 42,942 42,618

Cash and cash equivalents 62,550 39,946

Assets classified as discontinued operations 0 130Liabilities classified as discontinued

operations0 85

Total assets 918,405 886,490 Total equity and liabilities 918,405 886,490


35

35

8

FY2015 Post-IPO

251

155

Dec-15 Post-IPO

Post-IPO capital structurePrimary IPO proceeds reducing leverage to c.2.6x LTM EBITDA Average cost of debt of c.3% (on gross debt of €200m)

Financial debt pre and post IPO1 Annualised interest expense (€m)

3

Notes:

1. Calculated as gross financial debt minus cash

2. Based on LTM March-2016 EBITDA of €60.3m

3. On an annualised basis

4.4x 2.6x2

xLeverage (net debt /

underlying EBITDA)

-€27m


36

51.1

19.1

(32.0)

9M 2016 underlying EBITDA P&L IPO impacts 9M 2016 EBITDA

4.7

Refinancing expenses

Impact of IPO charges

IPO costs (€m)

IPO expenses

Management incentive plan

Cash impact fully

financed at IPO

9M 2016 EBITDA bridge IPO refinancing charges

To be expensed linearly

for 5 years post IPO


37

Translational FX impact in contextLatam reported financials in EUR impacted by steep decline in local currencies yoyImpact more pronounced in H1, with current exchange rates in line with H2 2015

640

660

680

700

720

740

760

780

800

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-162250

2500

2750

3000

3250

3500

3750

4000

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16

Avg. 9M15:

713

Avg. 9M16:

758

Avg. 9M15:

2,923

Avg. 9M16:

3,418+6% +17%

Avg. since 2012: 704

Avg. since 2012: 2,768

Source: Bank of Spain

EUR/COPEUR/CLP

Q3 15:

751

Q3 16:

739

Q3 15:

3,267

Q3 16:

3,292

38

Glossary

Chain sales: Chain sales are own store sales plus franchised and master franchised store sales as reported to us by the franchisees and master franchisees

LfL chain sales growth: LfL chain sales growth is chain sales growth after adjustment for the effects of changes in scope and the effects of changes in the euro exchange rate as explained below

– Scope adjustment. If a store has been open for the full month, we consider that an “operating month” for the store in question; if not, that month is not an “operating month” for that store. LfL chain sales growth takes into account only variation in a store’s sales for a given month if that month was an “operating month” for the store in both of the periods being compared. The scope adjustment is thepercentage variation between two periods resulting from dividing (i) the variation between the chain sales excluded in each of such periods (“excluded chain sales”) because they were obtained in operating months that were not operating months in the comparableperiod, by (ii) the prior period’s chain sales as adjusted to deduct the excluded chain sales of such period (the “adjusted chain sales”). In this way, we can see the actual changes in chain sales between operating stores, removing the impact of changes between the periods that are due to store openings and closures; and

– Euro exchange rate adjustment. We calculate LfL chain sales growth on a constant currency basis in order to remove the impact ofchanges between the euro and the currencies in certain countries where the Group operates. To make this adjustment, we apply themonthly average euro exchange rate of the operating month in the most recent period to the comparable operating month of the prior period

EBITDA: EBITDA is operating profit plus asset depreciation and amortization

Underlying EBITDA: Underlying EBITDA is EBITDA excluding the operating costs associated with our refinancing operation in FY2014 and IPO related costs in 2016

Digital delivery chain sales: Digital delivery chain sales are the delivery chain sales made through digital channels (PC, web responsive and Telepizza application), expressed in percentage terms. Digital delivery chain sales (both own and franchised) are recorded automatically in the Company’s SAGA store information system when the online order is placed by the customer

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