2014 Interim Results28 November 2013

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• Overall revenue flat

• KFC SSSG: 1.3%

• Sizzler Aust SSSG: (9.4)%

• EBITDA flat due to timing differences in advertising spend – expect FY advertising spend to net out

• Sizzler Mackay non-cash impairment of $1.9m

• Underlying NPAT growth of 0.8%

• Underlying EPS growth of 0.8%

• Fully franked dividend up 12.5% to 4.5cps… reflecting 55.8% of underlying NPAT

HY14 financial overview

1 Sizzler Mackay Impairment $1.9m2 HY14 adjusted for Sizzler Mackay impairment

$m

HY13 HY14 Significant items1

HY14 Underlying2

ChangeversusHY14

Underlying

Revenue 197.9 198.0 - 198.0 0.0%

- KFC SSSG % 3.6 1.3 - 1.3

- Sizzler SSSG % (0.1) (9.4) - (9.4)

EBITDA 21.5 21.4 - 21.4 0.3%

EBIT 13.6 11.2 1.9 13.1 4.0%

NPAT 7.4 6.2 1.3 7.5 0.8%

EPS (cents) 8.0 6.6 1.4 8.1 0.8%

DPS (cents) 4.0 4.5 12.5%

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• KFC continuing to show positive growth with an overall 3.1% sales improvement

• New KFC restaurants on track – 6 to 7 restaurants to be opened by full year

• Efficiency gains across labour flowing into margins

• Return on refurbishments improving

HY14 operational overview

• Sizzler Australia continuing to be a challenge –focused effort on improving margins through labour productivity measures

• Sizzler Asia continuing to grow with recent China restaurant openings performing above expectations

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• Competitive Foods – strategically attractive acquisition - 40 restaurants in WA and 4 in NT

• Acquisition price of $55.6m fully debt funded

• Meaningful new store rollout, organic growth and synergy / margin improvement opportunities – this business will self-fund growth

• ~15% EPS accretion to CKF on normalised basis in FY15 (pre-synergies / margin improvements)

• Expecting 200 bps margin improvement over 3 yrs

Exciting growth opportunities

• Opportunity to invest in fast growing fast casual dining sector

• $1.85m investment for 50% equity stake in early stage company

• Existing management to retain stake and remain in business

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KFC continues to grow

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KFC continues to grow

• Revenue up 3.1% to $152.8m

• SSSG of 1.3% (FY13: 3.6%)

• new stores and remodeling performing well

• food court sales improving

• solid marketing and brand building activity

• EBITDA up 4.4% to $21.7m

• timing differences in advertising spend – expect FY advertising spend to net out

• improved margin driven principally by labourproductivity and efficiency measures

• New KFC restaurant rollouts on track

• 3 new restaurants opened in HY14

• 3 to 4 new restaurants to open in H2

• returns on remodel capex improving

$m HY13 HY14 Change

Restaurants

– average 120.7 121.7 1.0

– period end 121.0 124.0 3.0

Revenue 148.2 152.8 3.1%

% SSSG 3.6 1.3

EBITDA 20.7 21.7 4.4%

% margin 14.0 14.2 20bps

EBIT 15.7 16.1 2.5%

% margin 10.6 10.5 10bps

134

139

144

149

154

HY11 HY12 HY13 HY14

Sale

s ($

m)

Financial year

Sales

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Strong product innovation behind sales growth

Boneless chickenStrong uptake in recent boneless chicken promotion

Zinger in a pieVery successful promotion of the Zinger pie – mixing 2 ideas loved by Australians, KFC Zinger flavour and pies

WOW dinners9 for $9.95 continuing to drive growth on Tuesdays

Breakfast Breakfast trial including coffee – introduced in several stores in May/June and continuing to build

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• Green & Gold Cricket campaign elevating the boldness of the brand

• ‘Say it with Chicken’ campaign resonating with young adults

• Family dinner time reinforcing brand aspirations

• KFC Facebook fans: +700,000 and growing

Continuing to strengthen the Brand’s positioningKFC brand build activity

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• Service flow format has been refined and efficiency gains have increased as we have moved through the learning curve

• Productivity gains from indirect labour initiatives flowing to bottom line

• New maintenance system enabling more efficient and effective maintenance management leading to lower costs and high equipment reliability

• Focused effort showing positive indications in food courts

• Innovation shaping the future

• digital menu boards: 10 restaurants

• dual drive thru: Helensvale

• on-line ordering with emphasis on mobile ordering

Operational efficiencies driving improved margins

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KFC capex focused on growth

0

1

2

3

4

5

6

7

0.0

5.0

10.0

15.0

20.0

25.0

FY 12 FY 13 FY14 Budget

KFC Capex and Depreciation

Depreciaton Maint / Systems Refurbishment / Rebuild / Relocate New Units New Unit Builds

New

sto

re o

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ngs

$ m

illio

ns

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New KFC restaurants

WSA – weekly store average through to Period 8 Week 1 FY2014

North Lakes Opened 12 August 2013Capital spend $1.3mProjected WSA $51.6kActual WSA $55k

Opened 11 September 2013Capital spend $1.2mProjected WSA $46.8kActual WSA $48k

WurtullaOpened 12 September 2013Capital spend $1.2mProjected WSA $45.5kActual WSA $58k

Chinchilla

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Major reimage and rebuild

WSA – weekly store average through to Period 8 Week 1 FY2014

Maryborough (reimage)Completed 21 June 2013Capital spend $0.5mProjected WSA $55.6kActual WSA $56.8k

Re-opened 19 June 2013Capital spend $0.4mProjected WSA $69.9kActual WSA $70.4k

Kallangur (reimage)Re-opened 24 July 2013Capital spend $1.5mProjected WSA $73.4kActual WSA $90.2k

Gympie (rebuild)

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In transitionSizzler

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• Revenue down 9.1% to $45.2m with Australian SSSG down 9.4%

• casual dining sector impacted more than QSR in current economic climate

• early signs of positive impact from recent initiatives

• EBITDA down 5.3% to $4.1m

• EBITDA margin improved 40bps

• labour productivity and efficiency improvements

• cost of sales improvements

• EBIT impacted by $1.9m non-cash impairment for Sizzler Mackay

Sizzler performance reflects ongoing transition

-15.0%-13.0%-11.0%

-9.0%-7.0%-5.0%

SSSG First Half FY2014

$mHY13 HY14 Significant

itemsHY14

Underlying Change

Restaurants:

- average 27.0 27.0 - - -

- period end 27.0 27.0 - - -

Revenue 49.7 45.2 - - 9.1%

% SSSG (0.1) (9.4) - - -

EBITDA 4.3 4.1 - - 5.3%

% margin 8.6 9.0 - - 40bps

EBIT 2.4 0.2 1.9 2.1 12.8%

% margin 4.8 0.4 - 4.6 20bps

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• New lunch menu launched in July has had a positive impact in reversing decline at lunch

• Revised dinner menu with food quality improvements to be launched beginning of December

• Marketing/communication strategy has been significantly reframed to distinctly target consumer segments with relevant messaging

• New theming campaign linking across all points of communication

Designed to turn business aroundComprehensive initiatives

• Service and hospitality initiatives to drive a better dining experience

• Individual value offerings being used to drive overall value equation

• Smaller footprint new store development being pushed back

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Financial information

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Strong balance sheet

• Cash up $3m to $26.6m – strong cash flow generation

• Property, plant and equipment up $1.4m to $60.5m –new restaurants and rebuilds partially offset by depreciation and impairment

• Successfully refinanced debt on improved terms in July 2013

• Undrawn debt facilities of $40m

• Net debt of $78m @ 13 Oct 13

• Remain comfortably within debt covenants@ 13 Oct 13

• net leverage ratio of 1.66x(maximum 2.75x)

• lease adjusted cover ratio of 2.43x(minimum 1.75x)

$m28 Apr 13 13 Oct 13

Cash and equivalents 23.6 26.6

Total current assets 31.8 34.5

Property, plant andequipment 59.1 60.5

Total non-current assets 309.0 312.7

Total assets 340.8 347.1

Debt* 104.7 104.5

Total current liabilities 48.5 52.2

Total non-current liabilities 106.8 106.7

Total liabilities 155.3 158.9

NET ASSETS 185.5 188.2

* net of capitalised costs $0.5m (FY13 $0.3m)

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Strong, growing cashflows

• Operating cashflow up 5% to $19.0m

• Net investing cash outflows of $10.6m - restaurant rollout and refurbishment program on plan

• Cash outflow from financing down to $5.4m

• HY14 includes payment of FY13 final dividend

• HY13 includes payment of maiden dividend and final impacts of IPO

• Strong cashflows enabling a HY14 fully franked dividend of 4.5cps, up 12.5% on HY13

* Capex reflects actual Capex spent, excludes accruals at period end

$m HY13 HY14

Net operating cash flows before interest and tax 22.4 24.2

Net interest paid (3.1) (2.8)

Income tax paid (1.3) (2.5)

Net operating cash flows 18.1 19.0

Capex* (9.6) (10.4)

Other (0.0) (0.1)

Net cash flow from investing (9.7) (10.6)

Net cash flow from financing (15.2) (5.4)

NET CASH FLOW (6.8) 3.0

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Exciting growth opportunities

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A very attractive acquisition of a business we know wellCompetitive Foods (KFC franchisee)

Grows our KFC network

Meaningful new store rollout opportunities in WA / NT

Synergies / margin improvements

Earnings accretive

Strong managementteam

• Acquiring an existing franchise• Expands our store base by 44 stores (35%) – 40 in WA and 4 in NT

• WA/NT represent fast growing geographical regions for KFC • Access to a large market which has been historically under penetrated

• Streamline back office operations• EBITDA margin improvement opportunity• Cross transfer of operational learnings• Leverage KFC Qld regional store management capability

• ~15% EPS accretion to CKF on normalised basis in FY15 (pre-synergies / margin improvements)

• New store growth and synergies / margin improvements will support on-going EPS growth

• Strong management team in place and with long history• Clean and quick integration• Continuity of business

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• Established by Jack Cowin in 1969

• Currently 44 restaurants – 40 in WA and 4 in NT

• FY13 [July to June] sales of $107m

• FY14 [July to June] forecast revenue of $110m

• FY14 [July to June] forecast EBITDA of between $10.0m and $10.3m

• KFC landscape in WA (in addition toCompetitive Foods)

• 1 other franchisee with 3 restaurants

• Yum! operates 6 company owned restaurants

Business overviewCompetitive Foods

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Acquisition overviewCompetitive Foods

Completion

Price

CKF financial impact

• Expected February 2014

• Purchase price of $55.6m• Yum! franchising fees• Transaction fees and stamp duty

• Minimal impact on CKF earnings in FY14• FY15 [May to April] forecast EBITDA (pre-synergies and margin improvement) of

between $10.7m and $11m• ~15% EPS accretion to CKF earnings on normalised basis in FY15 (pre-synergies

and margin improvement)• Expecting a 200 bps EBITDA margin improvement over 3 yrs• ~$25m in capex to upgrade stores over 4 yrs• Capex for 10 new stores over 4 yrs - funded by WA operational cash flow • 100% debt funded• Proforma net debt of ~$137m post-acquisition

• still comfortably within debt covenants • strong cash flows to fund debt pay-down

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Investment in an innovative conceptSnag Stand

Opportunity to invest in fast casual sector

Small investment instart-up company

Innovative concept

Existing strongmanagement

• Fast growing sector in restaurant industry both in Australia and the US

• Others in fast casual category include Grill’d Burgers and Guzman & Gomez

• $1.85m investment for 50% equity stake• 4 company stores/1 franchisee store• Will operate independently

• Gourmet sausage grill• Artisan sausages and breads• Expandable model

• Existing General Manager – Phillip Blanco – will continue running and developing the business

• Cross transfer of operational learnings• Back office support from CKF

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• KFC performance expected to continue

• Continue to transition the Sizzler business

• Group capital spend to remain inline with forecast

• CKF confident it will deliver consensus FY14 earnings estimate of $17.3m normalised NPAT (6.5% YOY), and deliver the expected earnings growth (pre-impairments and acquisitions)

• Maintain current dividend pay-out ratio of at least 50% of NPAT for CKF for FY14

• Complete acquisition of Competitive Foods (expected Feb 2014)

• reinvest Competitive Foods earnings back into growth in WA/NT, and review reinvestment strategy in2 years

• maintain dividend policy of at least 50% NPAT on base business

• Integrate Snag Stand back-office and drive growth in concept

Priorities and outlook for remainder of FY14

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Questions

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Disclaimer

This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF’s control.

No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based.

Circumstances may change and the forward looking statements may become outdated as a result so you are cautioned not to place undue reliance on any forward looking statement.

All financial amounts contained in this presentation are expressed in Australian currency and rounded to the nearest$0.1 million unless otherwise stated.

Any discrepancies between totals, sums of components and differences in tables and percentage variances calculated contained in this presentation are due to rounding.

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