Safe Harbour Statement on Forward-Looking Information
Any forward-looking statements in this presentation are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from current estimates, expectations and projections suggested in any forward-looking statements due to factors such as the competitive nature of the quick service restaurant industry, the ability of Priszm and Priszm LP to execute a growth and development strategy, the reliance of Priszm and Priszm on key personnel, the terms and conditions of Priszm LP’s franchise arrangements, and the risks set out in Priszm’s filings with the Canadian securities regulatory authorities including the risks associated with the structure of income trusts. Priszm and Priszm LP assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Establishing the Foundation for Our Future
Chief Executive Officer Jeff O’Neill
VP Human Resources Craig Richardson Chief Financial Officer Steve Boyack President KFC/Taco Bell Steve Langford VP
Legal, Development
& Refranchising Corey Goodman
VP Strategy & Insight Deborah Papernick
VP Ontario & Western Canada Jim Robertson
VP Quebec & Atlantic Jean Trudel
Senior Director Marketing Greg Smith
7
Restaurant Sales
Revenue from Restaurant Sales
($ millions)
80.1
77.6
Q1 '07
Q1 '08
9
Cost of Restaurant Sales
Cost of Restaurant Sales
($ millions)
47.8
46.8
Q1 '07
Q1 '08
10
Income from Restaurant Sales
Income from Restaurant Sales
($ millions)
6.0 4.6
Q1 '07
Q1 '08
11
General & Administrative Expenses
General & Administrative Expenses
($ millions)
5.1 4.4
Q1 '07
Q1 '08
12
EBITDA & Distributable Cash
EBITDA
($ millions)
Distributable Cash
($ millions)
3.0 2.2
1.0 0.1 Q1 '07 Q1 '08 Q1 '07 Q1 '08
13
Seasonality of Cash Provided by Operations
Cash Provided by Operations Four-Year Average Four37% 27%
26%
10%
Q1
Q2
Q3
Q4
90% of cash provided by operations is generated in the last three quarters of the fiscal year
14
Liquidity
(in $ millions)
March 23 2008 4.7
Dec 30 2007 24.5
March 25 2007 7.8
Cash and short-term investments
Outstanding debt Long-term loan Convertible debentures 75.7 30.0 75.6 30.0 75.6 -
15
Jeff O’Neill President and Chief Executive Officer
Our Vision
To provide great tasting on-the-go food choices and friendly service to our customers through multiple brands and concepts.
To be the preferred choice for Canadians looking to satisfy their food cravings at any occasion.
17
Strategy, Execution & Accountability
► REALIGNED ► REORGANIZED ► RESTRUCTURING ► REFOCUSING ► REBUILDING
18
Two-tiered Growth Platform
Accelerate Organic Growth of Core Business
Pursue Strategic Acquisitions
19
20
Key Drivers of Our Core Business
Organic Growth
Cost Efficiencies
Selected Multi-brand Multi-brand Expansion
21
Transforming KFC Canada’s Menu
22
Grilled Chicken Represents Profitable Opportunity
Canadian Chicken-on-the bone Market Chicken- on(Servings Annually)
100M
Fried Chicken
+
165M
Non-Fried Chicken
= $$$
Profit
23
Source: Crest Data 2007
Innovative New Products Drive Growth
24
Teens/Young Adults Fuel Fastest Growing Daypart
Snack Growth by Daypart
49%
36%
Morning
Afternoon
Evening
2002
2007
Source: Crest Data 2007
25
Continuing to Aggressively Pursue Cost Savings
Cost Savings and Efficiencies
($ millions)
$4-$6
$3
F2007
F2008E
26
Selected Expansion of High-Return Multi-Brands
27
28
The Transformational Shift Beyond Our Core Brands
Other Food Full Service
(Family)
Fast Casual Quick Service
Priszm
29
Well-Defined Acquisition Criteria
Accretive
Strategically Aligned
Highly Scalable
Synergistic
30
Two-tiered Growth Platform
Accelerate Organic Growth of Core Business
Pursue Strategic Acquisitions
31
Our Commitment
Customers
To provide our customers with great tasting food and satisfy their food cravings on any occasion
Employees
To ensure Priszm is a career destination for employees and a great place to work
Investors
To deliver consistent, reliable earnings and stable cash flow growth for our investors
Community
To give back to the communities across Canada in which we live and work
32
Giving Back to the Community
Funds Raised
($ millions)
0.8
0.3 0.1
2005
2006
2007
33