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MANAGEMENT DISCUSSION AND ANALYSIS (FY 2022-23)

ECONOMY OVERVIEW

Global Economy

The global economy is performing better than anticipated and demonstrating signs of resilience in Calendar Year (CY) 2023 after a turbulent year. The geopolitical tensions caused by the prolonged Russia-Ukraine war, supply chain disruptions, multi-decadal high inflation, and tighter monetary conditions derailed the economic recovery in CY 2022. Inflationary pressures are eroding real incomes, triggering a global cost-of-living crisis and substantially weakened investment growth. Further, the banking crisis in March 2023 and a debt-ceiling crisis in the United States have raised concerns over macroeconomic stability and an impending global recession. However, key factors such as the rebounding of Chinas economy, the gradual unwinding of supply chains, and the recent decline in energy and food prices indicate the improvement in economic activity and sentiment in 2023.

The real Gross Domestic Product (GDP) grew in the United States, the European Union, and major emerging market and developing economies. The United States (‘US) economy is showing improvement with its real GDP growth at 2.1% in CY 2022 on the back of increasing private investment and consumer spending. The European economy recorded 2.7% growth in CY 2022 and the Emerging Market and Developing Economies (‘EMDEs) grew at an annual rate of 4.0% in CY 2022. Source: IMF Report, World Economic Outlook, April 2023

Indian Economy

Despite external exogenous shocks, India continues to be among the fastest-growing economies in the world. It is poised for growth to become US$ 5 trillion economy by Financial Year (FY) 2025-26. The accelerated pace of economic reforms and strong domestic consumption have led to higher and sustainable growth of the Indian economy and strengthened its position in the world. Indias real GDP growth is pegged at 7.2% in FY 2022-23 as against 9.1% in FY 2021-22. Indias per capita income at current prices is estimated to have increased 99% from X 86,647 in FY 2014-15 to X 1.72 lakh in FY 2022- 23. Due to the rising consumer incomes and purchasing power, there is a surge in household consumption, boosting the demand for goods and services across industries. Indias consumer market is a US$ 1 trillion investment opportunity and is one of the biggest drivers of the countrys GDP growth.

Further, international trade contributed significantly to the economic growth in FY 2022-23. The merchandise exports have registered the highest-ever annual exports of US$ 447.46 billion with 6.03% growth during FY 2022-23 surpassing the previous years record exports of US$ 422 billion. Moreover, the Revised Estimate of the fiscal deficit is 6.4% of GDP in FY 2022-23 as against a deficit of 6.7% in the previous year. The Union Budget 2023-24 estimates a fiscal deficit of 5.9% in FY 2023-24. Higher inflation remains a challenge and the Reserve Bank of India ( RBI ) increased the repo rate by 250 basis points in FY 2022-23 to curb inflation. As a result, Indias Consumer Price Index ( CPI ) inflation rate eased to 4.70% in April 2023 from 7.79% in April 2022.

Source: Economic Times; Ministry of Statistics & Programme Implementation; Ministry of Commerce & industry; Ministry of Finance; Groww.in; Ministry of Statistics & Programme Implementation

Indonesian Economy

Indonesias forward-thinking, and well-coordinated policies enabled it to finish the extraordinarily challenging global environment of CY 2022 with solid growth, declining inflation, and a stable and profitable financial system. The countrys real GDP grew at 5.3% in CY 2022, supported primarily by robust exports. Due to the windfall revenues generated by export growth, the budget deficit of Indonesia was below the statutory ceiling of 3% of GDP. The slowdown in exports in CY 2023 is inevitable due to global headwinds. However, the countrys economic growth will continue to gain pace with increasing private consumption and investments. Consumer spending will further benefit from easing inflation.

Indonesias economy has been steadily expanding and maintained a consistent annual real GDP growth, with an average of around 5% per year. All macro indicators, such as increasing urbanisation, diminishing dependence, increasing per capita income, and young demographics are all catalysing the growth of the economy. The Indonesian government is prepared to alleviate the possible adverse impacts of economic uncertainty by prioritising investment opportunities while still making progress toward a green transition.

Source: IMF Report - World Economic Outlook April 2023; Asian Development Bank; Technopak; PWC

Outlook

Global

Despite the economic uncertainties and underlying inflationary pressures, the outlook for the global economy is less gloomy. With the central banks efforts to curb inflation by tightening monetary policies, global headline inflation is projected to decline from 8.7% in CY 2022 to 7.0% in CY2023 and 4.9% in CY 2024. The International Monetary Fund (IMF) has projected global growth to decline from 3.4% in CY 2022 to 2.8% in CY 2023 and rise to 3.0% in CY 2024. The European economy is projected to grow at 0.8% in CY 2023 before rising to 1.4% in CY 2024. The growth of advanced economies is projected to decline sharply from 2.7% in CY 2022 to 1.3% in CY 2023 before rising to 1.4% in CY 2024. The emerging market and developing economies are projected to grow to 4.0% in CY 2023 and 4.2% in CY 2024. China and India will be the major contributors to global economic growth and will account for 50% of the globahgrowth in CY 2023.

Source: IMF Report - World Economic Outlook April 2023

India

The Indian economy remains relatively well positioned to navigate global headwinds in FY 2023-24 with unprecedented levels of optimism and multiple growth levers at play. The IMF projects the Indian economy to advance steadily at 5.9% in FY 2023-24 before rising to 6.3% in FY 2024-25. The optimistic growth stems from positive factors such as robust domestic consumption, increased production activity, higher capital expenditure of Rs. 10 lakh crore announced in the Union Budget 2023-24, rapid infrastructure development, improvement in capacity utilisation, and revival in credit growth. Moreover, the growth-enhancing policies such as production-linked incentives CPU) scheme, ‘Atmanirbhar Bharat and PM Gati Shakti will increase productivity and have a multiplier effect on the Indian economy.

Source: IMF Report - World Economic Outlook April 2023; Ministry of Finance

Indonesia

According to the IMF, the Indonesian economy has weathered the complex global economic environment well. Indonesias economy is expected to grow at 5% in CY 2023 and 5.1% in CY 2024. The economy is primarily driven by a decrease in commodity prices and the recovery of domestic demand. Inflation peaked at 6% in CY 2022 and is expected to decrease to 3.2% by CY 2023. Indonesias solid macroeconomic management ensures that debt levels are attainable, and policy flexibility is sufficient to respond to potential shocks.

Source: IMF Report - World Economic Outlook April 2023

Industry Overview

Global Food Services Market

The global food services market size reached US$ 2,880.1 billion in 2022 and is projected to reach US$ 3,787.4 billion by 2028, exhibiting a compound annual growth rate ( CAGR ) of 4.6% during 2022-2028. The food services industry is a diverse and dynamic landscape that is influenced by a variety of factors. The industry has evolved due to the rise in the trend

of away-from-home food consumption and the rising interest in multiple cuisines. Growing demand for customisation and innovation in food menu options according to the taste, dietary and budget preferences of consumers are among the key factors driving the global food services market.

The rise in dual-income households and increased disposable income have led to increased expenditure on dining out. Millennials and working professionals are the key target consumers for the market owing to their increasing preference for hassle-free food that is readily available and reduced practice of preparing home-cooked meals. Moreover, the development of e-commerce/online platforms and on-the- go food service coupled with innovations in packaging, the introduction of low-fat beverages, gluten-free products, etc. are contributing to the growth of the market. The trend for veganism is also visible in the fast-food sector as consumers are demanding vegan alternatives for burgers, sandwiches, etc. Following consumer preferences for healthier and cleaner food, restaurants are now catering to this particular market by expanding their menu range to more organic and vegan- friendly options amongst other amazing innovations.

Source: Research and Markets

Indian Food Services Market

The food services industry in India has witnessed a paradigm shift in the recent decade due to economic development, young and working population, rapid urbanisation, changing lifestyles, and consumption pattern. The Indian food services market is projected to expand from US$41.1 billion in 2022 to US$ 79.65 billion by 2028, growing at an impressive CAGR of 11.19%. The organised chain market under the organised food services market is expected to grow by 20% till 2025, whereas the unorganised segment is expected to grow by 5%. The market growth can be attributed to factors including the rising trend of dining out and online food delivery, the emergence of a branded food service ecosystem, growing fast food chains, and exposure to non-native cuisines, among others. The top international food service companies are strongly engaged in innovating their services and strategising their food menus as per Indian tastes and preferences.

The Indian food services market is expected to remain highly competitive in 2023, with numerous players operating across various segments. Increased competition may lead to price wars, innovation in business models, and efforts to differentiate offerings. Indian food service companies are likely to invest 4%-6% of their net revenue in marketing, of which 45% is on online and digital media marketing.

Source: TechSci Research Report; Food Service & Restaurant Business Report 22-23

Food Services Market Size

											(in Rs. Bn.)
	FY 2010	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023E	FY 2025P
Market Size	1,844	2,865	3,090	3,376	3,706	4,096	4,236	2,008	3,630	4,400	6,211
YOY-Growth			7%	8%	9%	10%	3%	-111%	45%	18%
5-Year CAGR	-	9%	-	-	-	-	8%	-	-	-	8%

Indian Food Services Market Share

Market Share	FY 2010	FY 2015	FY 2020	FY 2021	FY 2022	FY 2023	FY2025P
Unorganised Market	74.4%	68.1 %	59.5%	59.6%	55.5%	51.6%	46.3%
Organised Standalone Market	19.3%	23.0%	28.4%	27.0%	29.8%	32.4%	35.1%
Chain Market	3.6%	6.1%	9.4%	11.4%	11.8%	13.2%	16.0%
Restaurant in Hotels	2.7%	2.8%	2.7%	2.0%	2.9%	2.8%	2.6%

Source: Technopak Analysis, Market share percentages are rounded-off P: Projected

Opportunities and Challenges in the Indian food services market

Opportunities

• Rapid urbanisation

The surge in urbanisation in India is driving demand for food services, with an increasing number of people living in urban areas seeking convenient dining options due to changing lifestyles and busy schedules. Further, urbanisation has exposed consumers to numerous cuisines. The growing inclination of millenmals towards fast food consumption further supports the growth of the market.

* Increasing disposable income

Rising disposable income levels in India are leading to increased spending on eating out and exploring new culinary experiences. This presents opportunities for food service providers to cater to evolving consumer preferences and offer diverse and innovative food options.

• Technological advancements

Advancements in technology, such as online food delivery platforms and digital payment systems, are transforming the food services market in India. The increasing adoption of smartphones and internet penetration have made it easier for consumers to order food online, providing opportunities for food delivery and aggregator platforms to expand their reach.

• Culture of experimentation in the food segment and global cuisine trends

The middle-class population is exposed to global trends in terms of newer formats and cuisines through travelling and seamless interaction facilitated by the internet and smartphones. They are willing to spend money on dining experiences similar to those found around the world. Indian consumers are increasingly seeking out regional and global cuisine options, presenting opportunities for food service providers to diversify their offerings and cater to varied tastes and preferences.

Challenges

• Higher inflation

Higher inflation presented challenges for the Indian food services market in FY 2022-23 as the soaring costs of fuel, freight, energy and ingredients impacted the industry. It also drives up menu costs and decreases consumer spending.

• Intense competition

The Indian food services market is highly competitive, with a large number of players ranging from local eateries to international restaurant chains. Competition can be fierce, making it challenging for new entrants to establish their presence and gain market share.

• Quality and safety concerns

Food safety and hygiene are critical concerns for consumers, and ensuring consistent quality across multiple locations can be a challenge for food service providers. Maintaining high food safety standards, adhering to regulations, and managing supply chains to ensure quality can be a challenge in a diverse and complex market like India.

• Changing consumer preferences

Indian consumers are known for their diverse tastes and preferences, and keeping up with changing consumer preferences can be challenging for food service providers. Staying relevant and meeting the evolving demands of consumers, such as changing dietary preferences, can require constant innovation and adaptation.

• Infrastructure and logistics

The Indian food services market faces challenges related to infrastructure and logistics, including issues with transportation, cold chain management, and storage facilities. Efficient supply chain management, timely deliveries, and maintaining food quality during transit can be challenging, especially in Tier II and III cities.

• Rise of Cloud kitchens

Cloud kitchens, also known as virtual or ghost kitchens, are commercial kitchens that cater exclusively to online food delivery orders. These kitchens do not have a dine- in facility and focus solely on preparing food for delivery. In 2023, cloud kitchens are expected to gain more prominence in the Indian food services market due to their cost-effective and efficient model, especially in urban areas where real estate costs are high.

• Regulatory environment

The food services industry in India is subject to various regulations and compliance requirements, including licensing, food safety, labour laws, and taxation. Companies are required to registerand maintain multiple licenses and also adhere to hygiene standards laid by the Food Safety and Standards Authority of India ( FSSAI ). Navigating the regulatory landscape and ensuring compliance can be complex and time-consuming for food service providers.

Indonesias Food Services Market

The food services market in Indonesia is estimated at US$ 32 billion in CY 2022 and is expected to reach US$ 41.9 billion by CY 2025, growing at a CAGR of 11% during CY 2020 to CY 2025. The chain market is predicted to increase at a CAGR of 16% from US$ 3.1 billion in CY 2021 to US$ 5.7 billion in CY 2025. The food services market in Indonesia is fragmented, with the major market share held by prominent local and global players. The food services market is highly diverse, comprising high-end hotels and restaurants that serve local and international cuisines. International companies and restaurants are gaining a competitive advantage by exploring new markets and introducing new product innovations to cater to Indonesian consumers demands.

The food service landscape in Indonesia is dominated by Sumatra, Java and Bali. The market is primarily driven by the increasing frequency of dining out and the growing influence of Western dietary patterns due to the presence of international companies, particularly in Tier I cities.

Additionally, the growing population of millenmals (69.9 million), growing disposable income, the availability of organised food service restaurants offering quality food and services and the increase in exposure to different varieties and cuisines of food have influenced the food services market growth in Indonesia.

Source: Technopak

Indonesia Food Services Market Size

									(in US$ Bn.)
	CY 2015	CY 2016	CY 2017	CY 2018	CY 2019	CY 2020	CY 2021	CY 2022	CY 2025P
Chain Market	2.6	2.7	2.9	3.2	3.7	2.6	3.1	3.7	5.7
Independent Market	29.0	30.8	32.9	35.1	37.0	22.5	26.0	28.3	36.2
Total	31.6	33.5	35.8	38.3	60.7	25.1	29.1	32.0	61.9

Source: Secondary Research, Technopak Analysis

Opportunities and Challenges in the Indonesian Food Services

Market

Opportunities

• Growing Urbanisation

With the increasing urbanisation, there has been a surge of consumers seeking services with the most convenience. Further, urban areas, especially in major cities like Jakarta, Surabaya and Bandung have a higher concentration of restaurants and food outlets, providing opportunities for the growth of the food services market.

• Large tourism sector in Indonesia

The tourism sector is an integral part of Indonesias economy. Although most international hotel chains are in Jakarta, Bali, Bandung, Surabaya, Yogyakarta, and Medan, more are expanding into secondary cities due to infrastructure development and the promotion of new tourist destinations. The growth of the tourism sector and the food service industry are interdependent. Due to the growing tourism sector, Indonesia is an attractive market for international food service companies.

• Growing demand for online food delivery services With the increasing urbanisation, there has been a surge of consumers seeking services with the most convenience. E-commerce and online platforms have become increasingly popular owing to higher penetration and acceptability among consumers and increasing small-chained outlets. Consumers are increasingly ordering local Indonesian cuisine from online food delivery applications such as Go-Jeks Go-Food, prompting a shift toward Indonesian food and boosting the overall Indonesian food services market.

• Many restaurant owners and family-owned businesses are increasingly looking forward to operating through online platforms to increase sales.

Challenges

• Regulations and compliance

The Indonesian food services market is subject to various regulations and compliance requirements, including food safety standards, licensing, and labour laws. Keeping up with these regulations and ensuring compliance can be complex and time-consuming for businesses, and non- compliance can result in penalties and fines.

• Supply chain and logistics constraints

Indonesia being an archipelago, supply chain and logistics can be challenging, especially for businesses operating in multiple locations. Ensuring a consistent supply of quality ingredients and managing logistics efficiently can be a challenge for food service businesses, particularly those with multiple outlets or operating in remote areas.

Food Delivery Market - Indonesia

Online food delivery has become increasingly popular in Indonesia, especially in major cities like Jakarta, Bandung, Surabaya and Bali. The food delivery market in Indonesia was valued at US$ 8.1 billion in CY 2022, recording 15% y-o-y growth from US$ 7.1 billion in CY 2021.

The market is expected to grow at a CAGR of 14% to reach US$ 11 billion by CY 2025. Factors such as an increase in smartphone and internet penetration, nuclearisation, disposable income, change in consumer preference, etc. are acting as a catalyst to boost the demand for online delivery services in the country.

Source: Technopak

Online Food Delivery Market (US$ Bn.) CY

2015	2020	2021	2022	2025P
1.0	5.7	7.1	8.1	11.0
YoY	42%	24.0%	15.0%

Quick Service Restaurant (QSR)

World

The global quick service restaurant (QSR) market size was estimated at US$ 283.8 billion in 2022 and is expected to reacfnllS$ 410.1 billion by 2030, growing at a CAGR of 5.8% from 2022 to 2030. The major factors driving the market growth include changing lifestyles of the millennials, the increasing number of quick-service restaurants globally and the growing demand for fast food among the population in developed and developing nations. Rapid urbanisation in developing nations combined with the increasing disposable income of the population are some of the critical factors driving market growth. The demand for the industry is driven by rising demand for convenient and easy-pick-up options and third- party delivery. The global QSR market is primarily influenced by a rising trend of dining out, amid time-pressed schedules and the growing influence of cross-cultural dietary patterns.

The QSR industry is gaining huge traction among the young population as it provides takeout, home delivery, and other quick assistance to improve the user experience. International brands and larger organisations have also benefited from the perception that chain restaurants provide a standardised quality or service across their locations. Further, QSRs are creating creative and exotic recipes that use natural, organic, and plant-based ingredients rather than artificial and processed equivalents and they are getting a lot of traction with health-conscious customers. Many QSR chains have established strong brand recognition and customer loyalty through marketing campaigns and consistent quality of food and service. Other factors, such as restaurant modernisation and digitisation, as well as the use of touchscreen kiosks, kitchen-display screens, and digital sales terminals are expected to propel the market forward.

Source: GlobeNewswire

India

The QSR market in India was valued at approximately Rs. 411 billion in FY 2022 and is expected to reach Rs. 852 billion by FY 2025, growing at a CAGR of -20% from FY 2020 to FY 2025. The QSR segment of Indias food service business has gained popularity as it provides quick and easy meal options to consumers who have a paucity of time. Further, the QSR market growth is fostered by factors such as increased preference for eating out, the market penetration of QSR food outlets in Tier II and Tier III cities, the widespread adoption of franchise business models by popular restaurant chains, and the rising penetration of e-commerce channels.

The QSR category accounted for 47% of the chain food services market in FY 2020 and is expected to grow to 54% by FY 2025. In a post-COVID-19 world, characterised by increased demand for quality, hygiene, affordability, and accessibility, this segment has become substantially more relevant. There is a rising emphasis on delivering good value for money, as well as a brand trust that ensures food safety, making them a more popular choice.

The QSR market in India is segmented into dine-in, takeaway, and home delivery. As of FY 2022-23, the dine-in segment had a share of 50%. The takeaway and home delivery segments are expected to see a higher growth rate in the coming years. International food chains that specialise in localised India-centric menus with strong price-value propositions have fuelled the growth of QSRs in India. The fastest increasing product category within the QSR market was burgers and sandwiches.

The QSR segment had the greatest average monthly spend per household as well as one of the highest yearly growth rates among all segments compared to casual dining restaurant (CDR) and cafes. The QSR industry will also benefit from a younger demographic. The Indian population continues to expand and it reached 1.41 billion as of March 2022, which is about one-sixth of the worlds population. The country has the highest number of millennials in the world. Further, its enormous agricultural base allows it to offer food at one of the lowest comparable costs among major countries.

The availability of organised retail space aids the industry in encouraging the growth of local and international brands across different formats. As of FY 2022-23, the overall share of the key international brands in terms of the number of outlets in the chain QSR market was -44%, contributing -53% to the total revenue of the QSR chain market.

Source: Secondary Research; Technopak; GlobeNewswire

Indias Total QSRs Market Size

										(in Rs. Bn.)
	FY 2010	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2025P
Market Size	56	159	184	210	253	307	348	240	411	851
YOY Growth	-	-	14%	12%	17%	18%	12%	-45%	42%	-
5-Year CAGR	-	23%	-	-	-	-	20%	-	-	20%

Indonesia

In Indonesia, the QSR industry is very competitive, with a slew of multinational and domestic firms vying for market share. New competitors enter the market every year in this category. There are over 110,000 QSR outlets in Indonesia and nearly 14 % -15 % of overall QSR outlets are chains. In recent years, the number of restaurant chains in Indonesia and across the globe has expanded dramatically. Chained food service market in Indonesia was valued US$ 3.7 billion and the independent food service segmentwas valued US$ 28.3 billion in 2022. There are several reasons for this popularity, such as convenience, affordability, and the variety of food options offered by these chains.

Various fresh-to-market restaurant concepts are continuing to invest in new ventures. Domestic players are rapidly entering the QSR space as a result of the growing presence of international chains in the QSR segment. The top seven international QSR brands account for around 40% of total sales in the chain QSR categories.

Indonesias domestic consumption-driven economy, growing population, particularly middle-class and high rate of urbanisation have led to changing dietary patterns such as increasing demand for wheat-based products, red meat and fast food. More Indonesians prefer to eat prepared food and beverages, especially with the boom of online delivery services in the country. Moreover, the cloud kitchen trend is popular in big cities. Indonesia is considered an important QSR market by global consumer goods companies. Fast-food chains grew exponentially in Indonesia in recent years. The giant players have been moulding their offerings to engage the consumers and suit the tastes of the local population and creating new and innovative takes on traditional menus and recipes. Further.-all fast-food chains are Halal-certified in Indonesia.

Source: Technopak; Government of Canada Report - Foodservice profile in Indonesia

COMPANY OVERVIEW Corporate Snapshot

Incorporated in 2013, Restaurant Brands Asia Limited (formerly known as Burger King India Limited) (hereinafter referred to as ‘RBAL or the Company) is one of the fastest- growing international QSR chains in India.

RBAL is the national master franchisee of the "BURGER KING?" brand, with exclusive rights to develop, establish, operate, and franchise Burger King? branded restaurants in India. The master franchisee arrangement provides the Company with the ability to use Burger Kings globally recognised brand name to grow its business in India; while leveraging the technical, marketing and operational expertise associated with the global BURGER KING? brand.

RBAL through its subsidiaries viz. PT Sari Burger Indonesia CBK Indonesia) and PT Sari Chicken Indonesia (Popeyes Indonesia) in Indonesia runs the national master franchisee of the brand BURGER KING? and brand Popeyes?. It has exclusive rights through its subsidiaries to develop, establish, operate and franchise BURGER KING? and Popeyes? brand in Indonesia.

The globally recognised BURGER KING? brand, also known as the HOME OF THE WHOPPER?", was founded in 1954 in the United States and is owned by Burger King Corporation, a subsidiary of Restaurant Brands International Inc., which holds a portfolio of fast-food brands that are recognised around the world that includes the BURGER KING?, POPEYES?, TIM HORTONS? and FIREHOUSE SUBS? brands. The BURGER KING? brand is the second largest fast-food burger brand globally as measured by the total number of restaurants, with a global network of 29,956 restaurants in more than 100 countries as on March 31, 2023.

The Company aims to promote and maintain operational quality, a people-centric culture and effective technology systems that enable the Company to optimise the performance of its restaurants and enhance the customer experience.

Business Performance

The Company achieved healthy growth in FY 2022-23 while maintaining a strong focus on profitability, expansion of the restaurant network and accelerating the pace of its growth.-Its operational quality, customer-centric culture and advanced technology systems enable it to optimise the performance of its restaurants, enhance the customer experience and contribute to its growth. RBAL is moving forward with a clear vision to strengthen its position as a pan-India QSR chain. Further, it continues to efficiently manage its supply chain and ensure cost optimisation due to the proximity of its restaurants and distribution centres. The Company has built a strong network of 391 restaurants and 275 BK Cafe? as of March 31, 2023.

In addition, 15 restaurants are under construction and 38 restaurants are in the pipeline.

Despite the inflationary pressures, the Companys India business achieved an impressive revenue growth of 52.6% in FY 2022-23 led by same-store sales growth ( SSSG) of 23.1%, strong restaurant openings and improved efficiencies. The Companys revenue from operations in India grew to Rs. 14,396.51 million in FY 2022-23 from Rs. 9,437.09 million in FY 2021-22. The gross profit margin grew by 66.4% in FY 2022- 23 as against 65.8% in the previous year. It delivered robust restaurant EBITDA (Post Ind AS 116) of 17.3%, Rs. 2,483 million in FY 2022-23 against 16.2%, Rs. 1,528 million in FY 2021-22. The Company EBITDA (Post Ind AS 116) was 11.5%, Rs. 1,654 million in FY 2022-23 against 9.6%, Rs. 902 million in FY 2021-22.

The Companys Indonesia business achieved IDR 1,153,090 million revenue from operations in FY 2022-23 against IDR 1,052,738 million in FY 2021-22. Higher inflation and softening of consumer demand had put the Companys EBITDA (Post Ind AS 116) under stress as it recorded a loss of IDR 100,288 million in FY 2022-23 against IDR 12,254 million income in FY 2021-22. This loss also includes the expenses for the launch of 10 "Popeyes" restaurants in Indonesia. In Indonesia, the Company has 186 restaurants (176 Burger King? and 10 Popeyes?) as of March 31, 2023.

Key Developments

1. Opened net 76 new restaurants: The Company expanded its footprints and entered new cities across India by opening a net of 76 new BURGER KING? restaurants in FY 2022-23. It is the highest number of restaurant launch by the Company. The addition of higher number of new restaurants would increase consumer accessibility and help the Company to establish a leadership position in the market.

2. Indonesia Popeyes? Popeyes Indonesia, wholly-owned subsidiary of BK Indonesia, subsidiary of the Company, launched the world-famous fried chicken brand from Louisiana, US "Popeyes?" in Indonesia. It opened 10 Popeyes? restaurants across 4 cities in Indonesia and target to open a total of 30 restaurants by March 31, 2024. The launch event achieved the global record for the strongest opening day for a new country entry with 1,000+ transactions. The grand launch event recorded 42 million reach. The Average Daily Sales CADS) for FY 2022-23 stood at IDR 51.1 million.

3. Whopper?: The Company is focussed on its core strength of the Whopper?. It launched limited time "Boss Whopper" to increase consumption frequency. It is the biggest Whopper? with 9 layers between the buns. It is launched during the festive and new year quarter to engage more consumers and cater to their preference for indulgence. Burger King? Whopper? won Nielsens BASES Menu Innovation Award 2022, India.

U. BK Cafe?: The Company focusses on BK Cafe? expansion by opening 240 Cafes in FY 2022-23. It has made strong investments in marketing and had +7K incremental ADS in BK Cafe? Restaurants. The Company launched Masala Chai to complete the hot beverages portfolio and seasonal specials such as Cinnamon flavoured Cappuccino and Hot Chocolate. BK Cafe? continues to expand rapidly and as of March 31,2023, the Company has a strong footprint of 275 BK Cafes?.

5. The Chicken King campaign for the Southern part of

India: The Company emphasises on superior food quality and taste to meet evolving consumer preferences. It launched the "Chicken King" campaign, a new below- the-line (BTL) marketing campaign with all its chicken specials in one assortment in Bengaluru, Hyderabad and Chennai. To cater to the consumers in the South who prefer spicy flavours, the Company introduced a variety of flavours and formats in non-veg such as chicken, burgers and wings at Burger King?. This campaign received an-enthusiastic response. The Company intends to continue to promote it and grow the awareness and trial of these products and build this layer as an incremental business in the South.

6. Building Brand Love with Gen Z and Millennials:

The Company is committed to building a strong brand and enhancing its relevance to cater to Gen Z and millennials. It put extra effort to get into the festive spirit to engage young consumers in a celebratory mood. It celebrated Diwali with BK Housie, which is a unique social media- led housie with guests sharing their Diwali pics with BK. The event celebrated different facets of Diwali like Rangoli, Diya, Mithai, Cards, Friends, Diwali clothing etc. It witnessed over 3 million Impressions, 5,000+ Engagements. Further, the Company celebrated Halloweens Day with User Generated Content in which guests who shared their "Ghosting" stories were rewarded with Whopper. This event had 7.6% Engagement Rate vs Industry Benchmark of 2%. The Company also continues Topical social media campaigns to increase Brand engagement among Gen Z and millennials.

Strategic Initiatives

Operational excellence with 360? technology: The Company considers technology as its prime strategic goal. It uses "360? technology" for interacting with customers and operations and management of all its restaurants including its workforce. The Company has worked on incorporating technology for smooth customer experiences in every step including real-time updating of restaurant menus and integrating the customer platforms with the delivery aggregators, payment gateways and wallets. BK mobile app recorded - 6.2 million installations in FY 2022-23. BK mobile app revenue is continuously growing in double digits for the past 7 quarters and reported 327% year over year (YoY) revenue growth.

The BK mobile app features: (ij the Omni-Channel experience in ordering for dine-in, takeaway and delivery, (iij the BK Crown loyalty program, (iiij rider tracking, and (iv) exclusive offers through digital coupons to encourage more user engagement. This app also features electronic paperless billing and facilitates contactless ordering and payment for both takeout and dine-in.

Digital transformation: The Company also utilises an integrated planning and invoicing system with the third- party distributor for purposes of planning, invoicing and automated inventory replenishment. Further, it uses biometric attendance tools to manage its employees at the restaurants. The management team has access to key metrics to measure and monitor operational performance, sales and profitability, and leverage best practices across the organisation to drive efficiencies. The Company has systems in place that tracks the entire journey of an employee from onboarding to retiring.

Sustainable growth: The Company is focussed to maximise revenue potential through all channels, and expansion of restaurants using a cluster approach. It continues spreading corporate-level fixed costs, in the brand building and launch expenses and the corporate-level administrative expenses, across a larger restaurant network for optimum cost utilisation and expansion of margins to improve the long-term efficiency of the business. It also intends to leverage the vertically managed and scalable shared supply chain infrastructure with the third-party distributor, which will drive the Companys gross margins. It aims to drive down the distribution costs, which are embedded in the cost of material consumed since this will enable the Company to supply multiple restaurants at lower per-unit costs due to their proximity to each other and the distribution centres of the third-party distributor. These advantages will drive strategic cost efficiencies and expand the gross margins as the business grows.

Strong brand presence: The Company continues to aim on building a strong loyal customer base by spreading brand awareness and meeting customer expectations. Its integrated marketing approach targets a broad consumer base with frequent and inclusive messaging and engages consumers at multiple touchpoints, including through sustained investment in social media and mass media channels, such as TV commercials, big-ticket and high-impact media properties. The Company continues to target the large millennial population of India through its marketing campaigns. It also continues to promote the BK Crown loyalty program to engage with customers and drive customer loyalty. It also intends to continue striving to provide customers with a best-in-class restaurant experience with the customer proposition, by offering menu innovation, abundant value meals options at attractive price points, emphasis on superior food safety, hygiene standards, and freshness of ingredients to meet evolving consumer preferences and the best restaurant service. The Company believes this is key to attracting and retaining its customer base and growing same-store sales in its restaurants.

Profitable expansion: The Company intends to expand its restaurant network and increase customer traffic by utilising its cluster approach and penetration strategy. It follows a disciplined approach for the new restaurant rollout process including the identification of locations and fast and efficient construction of restaurants. The Company launches its brand from flagship locations in high-traffic and high-visibility locations across key metropolitan markets and develops new restaurants within that cluster. This approach helps to efficiently manage the supply chain and ensure cost efficiencies owing to the proximal location of restaurants and distribution centres.

Empowering workforce through training: The food industry domain is labour-centric. Labour shortages and a high rate of attrition have been challenging for the food industry. To address the demand and supply gap and smooth operations, the Company regularly conducts strong in-house training programmes. These programmes focus on building efficiencies, customer satisfaction, developing interpersonal skills and cross-functional training. They also instil passion, enthusiasm and brand loyalty in employees. These programmes also have the benefit of tackling attrition as the attrition rate is low in staff who have participated in training programmes and have acquired new skill sets.

KEYSTRENGTHS

Strengths	RBAL	BK Indonesia	Popeyes Indonesia
Master franchisee arrangement	The master franchisee arrangement facilitates RBAL to use Burger Kings globally recognised brand name to grow business in India while leveraging the technical, marketing and operational expertise associated with the global brand and tailoring Burger King" menu, promotions and pricing as per the Indian tastes and preferences while meeting the quality standards.	The master franchisee arrangement provides BK Indonesia with the ability to use Burger Kings brand name to grow its business in Indonesia while leveraging the technical, marketing and operational expertise associated with the global brand.	The master franchisee arrangement facilitates Popeyes Indonesia to use Popeyes globally recognised brand name to grow business in Indonesia while leveraging the technical, marketing and operational expertise associated with the global brand and tailoring Popeyes? menu, promotions and pricing as per the Indonesian tastes and preferences while meeting the quality standards. Popeyes Indonesia is a wholly owned subsidiary of BK Indonesia.
		This arrangement provides the flexibility to develop a tailor-made Burger King? menu. promotions and pricing according to the Indonesian tastes and preferences while meeting the quality standards.
Value proposition and extensive menu	The Company aims to offer customers a variety of innovative and quality food offerings, tailored to Indian tastes and preferences with superior price- value proposition.	1. Follow the Consumer: Taste, Value and Consideration	1. Iconic Brand
		• Burgers	To win in a highly saturated chicken
	The key driver of this strategy has been the Companys promotions that focus on value and variety with different taste profiles and prod uct formats. Value has always been core to Burger King menu and pricing, targeted at value seeking millennials.	BK Indonesia is focussed to rebuild burger equity via Whopper, strengthening everyday value, innovative flavours and premium products.	QSR market, the menu is designed to offer variety in chicken, delivered via differentiated formats and flavours.
		• Bone in Chicken (BIC)	No other QSR player in the market currently offers all sorts of chicken varieties under one roof, making Popeyes in Indonesia a dream chicken destination for guests.
	The incredible menu follows a robust price laddering approach, whereby at every Rs. 20 deltas, there is a new burger offering with value addition. A similar price ladder is available for vegetarian and non-vegetarian items.	BK Indonesia is scaling up its Bone in Chicken business. As everyday comfort food, BIC offers taste and variety at a great value.
		• Desserts & Beverages	2. New Restaurant Openings: Rapid Pace and Strong Sales
	The Company has a wide variety of 25 different vegetarian and non-vegetarian burgers and wraps covering both value and premium offerings. Menu items are customised to cater to the local Indian palate.	There is a rising demand for desserts in the QSR space of Indonesia. To leverage this opportunity, BK Indonesia has now built a substantially enhanced dessert portfolio with innovative, tasty and affordable new launches in collaboration with a co-branded product development	• Blockbuster new restaurant openings Popeyes Indonesia had a strong opening day performance with over 1,000 first days transactions.
			• Explosive Growth
	The Company has also forayed into offering a wide range of vegetarian meal options to attract additional customers to its restaurants. It has also separated the cooking and preparation of vegetarian, egg and non-vegetarian products in the kitchens to build trust with the customers.		The Company targets to build 300 restaurant over a period of 10 years.
		• Delivery BK Indonesia intends to capitalise on the rapid growth of food delivery services in Indonesia. It is focussed on the delivery business for sustainable, self-funded growth by consistently offering value to consumers.	The new restaurant are poised to achieve explosive growth at a rapid pace.
			The Company aims for continuous improvement and growth with a focus on Free Standing Drive Through (FSDT) format, which allows for higher traffic capacity, reduced rental costs and superior unit economics.
		• Increase Awareness BK Indonesia invests in advertisement and media to reach the target customers and lead them from consideration to the trial stage.	3. Stellar Guest Experience: Digital- first and Table service
		2. Guest experience:	Tlie Company strives to provide a memorable experience to its guests. Tlie process of online table reservations is digitalised to improve tlie customer dining experience. It also improves tlie speed and efficiency of service at tlie restaurant.
		• Back to Basics
		Standardises product build, invest on training and equipment for efficient operations and aims to improve procurement efficiencies.
Superior quality products	The menu is developed through extensive taste testing to appeal to the palate of Indian customers.	Tlie menu is developed through extensive taste testing to appeal to the palate of Indonesian customers.	The menu is developed through extensive taste testing to appeal to the palate of Indonesian customers.
	Whopper? The Company leverages its flame grilling expertise for which it imports specially-designed patented broiler equipment. Each of the restaurants is equipped with flame grilling capability.	Whopper? and Limited time Offer	1. Buttermilk system which is used to make Chicken Sandwich, Chicken popcorn, Chicken strips and Onion Rings;
	The Company also maintains the quality of ingredients and ensures that all the food offerings are free from synthetic colours and artificial flavours.	BK Indonesias menu is prepared to appeal to tlie Indonesian palate. It also ensures to offer its customers clean food prepared with safe and natural ingredients with no artificial flavours, preservatives and colours. It does not use ingredients such as Monosodium Glutamate (MSG) and high-fructose corn syrup, while still serving the same Burger King flame-grilled flavour.	2. Cajun seasoning coated crispy fries;
			3. For the first time ever Popeyes Indonesia launched Louisiana grilled chicken; and
			4. Louisiana fried chicken, New Orleans spicy fried chicken.
	Kings Collection Differentiated menu with a strong premium layer with Kings Collection having new products with new builds.
	Variety of value range products
	Stunner Menu with products priced at Rs. 50 and Rs. 70
	The Company also introduced an unbeatable 3 in 1 meals comprising of Burger, Fries and Pepsi starting at an affordable price point of Rs. 99.
Experienced management	The Companys management team includes senior employees with experience in the food and beverage industry, retail and major fast- moving consumer goods brands. The majority of the management team members have been associated with the Company since the commencement of its operations in India.	BK Indonesias and Popeyes Indonesias management team includes members with significant experience in the QSR and relevant businesses such as e-commerce.
		The great team and winning culture will help it to build a profitable company.
Supply chain	The Company has established a strong distribution network and fresh product supply chain to align with the cluster growth strategy.
Restaurant roll-out strategy	The Company is empowered by an efficient restaurant roll-out and development process, standardised processes consistent with Burger Kings? global standards, peoplecentric approach for better guest experiences and vertically managed and scalable supply chain.

CHALLENGES IN INDIA AND INDONESIA BUSINESS

• Food safety and stringent regulatory landscape After the pandemic, people have become more conscious about hygiene and are preferring hygiemcally prepared food items. Food safety and guality have become crucial. The Indian food service players including chain QSR players are reguired to follow stringent food safety and all the applicable regulations regarding hygiene, sanitation, food manufacturing practices, handling of food, pest control on the premises, etc. to ensure the health and safety of the consumers. QSR players in Indonesia also must fulfil the hygiene and sanitary requirements.

• Volatility in fuel and commodity prices

The soaring costs of fuel, freight, energy and ingredients, such as palm oil, meat, cheese etc. and packing materials may increase input costs and significantly impact operating performance and restaurant margins.

• Shortage of skilled labour and high attrition

The food service industry is labour intensive business that can be adversely impacted due to a shortage of skilled labour, high attrition rate and increased cost of retention. These factors can lead to a lack of stability and a decrease in the quality of food and services provided to consumers.

• High prices for quality real estate

High expenditure on rentals is a major challenge for the players in the food service industry. Soaring prices of real estate, especially in malls and high street spaces are impacting the profitability of the companies in the food services market and deterring the growth of their outlets.

• Highly competitive market

The Indian and Indonesian food services market is highly competitive and dominated by the unorganised sector. Customer loyalty is low for small and mid-sized restaurants due to a lack of best practices in maintaining hygiene and food safety standards and the growing trend among consumers to explore established international and domestic chains for gaining new experiences.

Players in the chain QSR market have a competitive advantage with their robust food safety and hygiene standards, strong operating procedures, consistent taste and flavour and global best practices. These factors enable them to attract loyal consumers consumer and have higher customer retention rates.

FINANCIAL REVIEW

				(Rs. in Million)
Particulars	Standalone		Consolidated
	FY 2022-23	FY 2021-22	FY 2022-23	FY 2021-22
Revenue from Operations	14,396.51	9,437.09	20,542.79	14,902.73
Other Income	325.32	205.29	359.59	224.38
Total Income	16, 721.83	9,662.38	20,902.38	15,127.11
Less: Cost of materials consumed	4,841.05	3,231.36	7,356.94	5,498.06
Less: Employee benefit expenses	2,280.12	1,539.77	3,668.78	2,668.05
Less: Finance cost	895.65	679.53	1,051.79	953.58
Less: Depreciation and amortisation expenses	1,801.97	1,356.95	2,840.42	2,335.84
Less: Other expenses	5,621.07	3,764.23	8,402.47	5,771.27
Loss before Exceptional items and Tax Expense	(718.03)	(929.66)	(2,618.02)	(2,099.69)
Add: Exceptional items	-	-	-	251.85
Loss before Tax Expense	(718.03)	(929.66)	(2,618.02)	(2,351.56)
Less: Tax Expense (Current & Deferred)	-	-	-	-
Loss for the year (1)	(718.03)	(929.66)	(2,618.02)	(2,351.56)
Total other comprehensive income/ (loss) for the year, net of tax (2)	(3.57)	(6.77)	33.05	(47.40)
Total comprehensive loss for the year, net of tax (1+2)	1721.60)	(936.23)	(2,386.97)	(2,398.96)
Equity holders of the parent	NA	NA	(2,183.75)	(2,010.75)
Non-controlling interests	NA	NA	(201.22)	(388.19)
Opening balance of retained earnings	(6,080.87)	(5,151.41)	(9,694.24)	(6,874.02)
Closing balance of retained earnings	(6,798.90)	(6,080.87)	(12,037.80)	(9,696.26)

Significant Changes in the Key Financial Ratios

		(Rs. in Million)
Particulars	FY 2022-23	FY 2021-22
DebtorsTurnover* (in days)	2.62	2.95
Inventory Turnover* (in days)	4.15	4.56
Current Ratio	0.79	2.27
Gross Debt Equity Ratio (excluding lease liability)	NIL	NIL
Operating Profit Margin	11.49%	9.56%
Net Profit Margin	(4.99%)	(9.85%)
Return on Net Worth	(3.79%)	(4.77%)

(*Based on days sales)

RISK MANAGEMENT

The Companys key risks and their corresponding mitigation measures are depicted below:

Risks	Impact	Mitigation
Operational risk	The inability to provide good quality customer service and food may impact the growth of the Company.	The Company regularly monitors and provides training to employees for food handling and customer service and to ensure adherence to food quality standards and norms issued by regulatory authorities.
		Periodic food safety and quality assessments at restaurants and vendors help ensure operational consistency.
Supply chain disruption risk	1. High dependence on single vendor for large volumes	1. Development of new vendors to increase supply capacity.
		Inventory coverage at suppliers end through long-term projections.
	2. Sub optimal inventory level 3. Increased procurement costs increase the Companys input cost and impact the operations and margin.	2. Safety stock to be maintained as per past performance of the supplier and review of high/normal/slow moving inventory.
		3. Development of new vendors and long-term contracts at fixed price. Short/Long positions basis commodity trends to hedge against inflation, especially for direct commodities like milk, cheese, coffee and oil.
		Procurement from high cost vendor only in case of capacity constraints from low cost vendors.
		Periodically add capacity from new suppliers to de-risk.
Inflation risk	High inflation and subdued demand may impact the operations and the profitability of the Company.	RBALs strong relationships with suppliers and vendors help to attract competitive quotations for raw materials (ingredients) and ensure an insulated and de-risked bottom line. Further, the Company has multiple vendors to ensure cost efficiency.
Consumer attrition	Failure to keep up with changing consumer tastes and preferences can prove a deterrent to the Companys growth.	RBAL offers a diversified menu designed to suit the local palate of customers along with tailor-made services. Further, the Company conducts periodic customer surveys to understand market trends and customer preferences.
Compliance risk	Non-compliance with the statutory norms and regulations related to food safety, health, environment, etc. may impact the Companys operations, damage its reputation and result in penalties and criminal prosecution.	The Company remains vigilant and ensures adherence to food quality standards and norms issued by regulatory authorities.
		Its effective internal controls ensure regulatory compliance and detect and prevent unlawful and fraudulent activities.
Information technology risks	Technology failures, breakdown of the IT systems, and viruses, phishing attacks, cyber security threats, hacking of websites, ransomware, etc. may severely impact business operations.	All the restaurants are equipped with a centrally controlled digital menu board, documented data security policy, SOC report for POS (front end and back end), and necessary security certifications for all key applications. Further, RBALs IT team continuously tracks and monitors IT systems to prevent and remediate security breaches to ensure Data Security. As a preventive measure, the Company doesnt store customersfinancial information like CW number, card expiry date, etc.
		Proper Anti-virus systems are installed to protect the systems from threats like hacking, phishing, etc. The Company ensures a remote backup of all files. Further, an internal file transfer system for transferring large files is installed to prevent the leakage of any confidential documents.
Shortage of skilled workforce and high attrition	Shortage of skilled staff and high attrition can impact the operations, food and services of the Company which can damage its reputation and customer base.	The Company conducts in-house training to enhance the morale and career of its employees. It also motivates and retains employees with recognition and performance-based rewards.
ESG	The continuously evolving laws and regulations related to environment protection, food safety, human rights, working and safety conditions, antibribery and corruption practices, etc. require an understanding of their implications and adaptation in business operations, resulting in increased cost and compliance risk.	The Company trains its employees to cultivate a culture of compliance and ethics. It ensures adherence to relevant laws and regulations and reduces environmental impact. It also has a robust policy to deal with anti-bribery, corruption and unlawful practices.
Business Continuity	Business Continuity is important part in risk management as it refers to how the Organisation manage to be resilient and carry on with its operation in case of all the unforeseen disruptions.	Various measures have been initiated by the Company in Information Technology to mitigate risk of business continuity.

HUMAN RESOURCES

The Companys focus is on making efficient and effective use of its human talent to achieve its organisational goals. The human resource team carries out various activities to ensure smooth operations and create an overall positive work environment for all its employees. Periodic employee pulse surveys are conducted in order to understand employee satisfaction levels and gather feedback from its employees, in order to identify areas for improvement and take necessary actions. The Company regards human resource as its most valuable asset.

The Company undertakes training and development programmes at regular intervals to encourage a performance driven culture among its employees. The Company has been recruiting and selecting qualified individuals for diverse roles at its restaurants and Restaurant Support Centres (Corporate). Various recognition programmes and incentive schemes were introduced to recognise and reward excellent performances and motivate employees contribution towards the organisation. By partnering with a mental health organisation - Trijog, the Company has launched a dedicated mental health hotline, providing access to qualified psychologists, confidential support and other resources to its employees. Going forward, the Companys ambition is to have a highly engaged workforce, with less attrition and more focus on the employees satisfaction, growth and development. As on March 31, 2023, the Companys total employee strength stood at 8,712.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an efficient and well-defined internal control system for safeguarding its financial information and assets from unauthorised use or disposition, addressing the evolving risks in the business, reliability of financial information, timely and accurate reporting of operational and financial transactions, and stringent adherence to all the applicable regulatory laws and legislations. The Companys overall governance system including all policies and procedures is properly documented under expert supervision.

The Companys internal control team is responsible for continuous monitoring of its controls. It has also appointed an external team to oversee the adequacy and efficacy of the system. The Audit Committee of the Company conducts periodic reviews of audit reports submitted by the internal audit team. Key observations and audit findings are discussed and communicated to the management who undertakes corrective actions for the improvement of the business process and internal control system.

COMMUNITY INITIATIVES

The Company takes its social responsibilities seriously to build goodwill and strengthen the communities in which it operates. It continues to focus on social and community service by aiming for key areas such as Food, People and Environment. While the Company is not currently mandated to comply with the provisions of corporate social responsibility in terms of the

Companies Act, it supports the Room to Read, which is a nonprofit organisation for improving literacy and gender equality in education in India and the developing world.

OUTLOOK

The Company is optimistic about its growth prospects in the medium to long term on the back of economic development and growth of the organised QSR segment in India and Indonesia. Despite the intense competition in the organised sector, the Company as an organisation is confident to stay ahead of the competition with the strength of its expertise, brand and quality and healthier products. It continues to strengthen its position by investing in brands, sales infrastructure, technology and talent which are vital for the growth of the Company. It is focussed on improving margins, along with its commitment to maintaining a strong presence in both India and Indonesia.

The Company intends to get to 450 restaurants by the end of FY 2024 and 700 restaurants by December 2026. The Company targets to achieve approx. 10% SSSG growth in India from where it stands by the end of FY 2024 and it is believed that with the initiatives taken, the Company should be able

to get approx. 8% SSSG growth thereafter year-on-year. The Company targets to achieve approx. 67% of gross profits for the year FY 2023-24 and then improve it by further approx. 2% over FY 2025-27. The Companys target for Indonesia is to get to cash breakeven in FY 2023-24. The Company will continue to invest in Popeyes? in Indonesia and targets to open 300 Popeyes? restaurants in the initial phase of 10 years. In Indonesia between both the brands Burger King? and Popeyes?, the target is to get to 325 restaurants by FY 2027. These are the broad guidelines that the Company is working towards as a team.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain some statements describing the Companys objectives, projections, estimates, and expectations which may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those either expressed or implied in the Statement depending on the circumstances. Therefore, the investors are requested to make their own independent assessments and judgements by considering all relevant factors before making any investment decision.